Document:

ex_439452.htm

 

Exhibit 10.2

 

 

 

 

CERTAIN INFORMATION OF THIS DOCUMENT HAS BEEN REDACTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM IF PUBLICLY DISCLOSED. INFORMATION THAT WAS OMITTED HAS BEEN NOTED IN THIS DOCUMENT WITH A PLACEHOLDER IDENTIFIED BY THE MARK “[***].”

 

 

 

AMENDED AND RESTATED FIXED PRICE TURNKEY AGREEMENT

 

for the

 

ENGINEERING, PROCUREMENT AND CONSTRUCTION OF TRAIN 3

 

of the

 

RIO GRANDE NATURAL GAS LIQUEFACTION FACILITY

 

by and between

 

RIO GRANDE LNG, LLC

 

as Owner 

 

and

 

BECHTEL ENERGY INC.

 

as Contractor

 

 

 

Dated as of the 15th Day of September, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

45289033v1

 

 

 

 

 

 

TABLE OF CONTENTS

 

 

RECITALS         

 

ARTICLE 1         DEFINITIONS         

	 	
			1.1

				
			Definitions 

				1

	 	
			1.2

				
			Interpretation

				18

 

ARTICLE 2         RELATIONSHIP OF OWNER, CONTRACTOR AND

SUBCONTRACTORS        

	 	
			2.1

				
			Status of Contractor

				18

	 	
			2.2

				
			Key Personnel, Organization Chart and Contractor Representative

				18

	 	
			2.3

				
			Subcontractors and Sub-subcontractors

				19

	 	
			2.4

				
			Subcontracts and Sub-subcontracts

				20

	 	
			2.5

				
			Contractor Acknowledgements

				22

	 	
			2.6

				
			Updates for Changes in Applicable Law

				24

 

ARTICLE 3         CONTRACTOR’S RESPONSIBILITIES         

	 	
			3.1

				
			Scope of Work

				24

	 	
			3.2

				
			Specific Obligations

				25

	 	
			3.3

				
			Design and Engineering Work

				26

	 	
			3.4

				
			Spare Parts

				29

	 	
			3.5

				
			Training Program in General

				30

	 	
			3.6

				
			Environmental Regulations and Environmental Compliance

				30

	 	
			3.7

				
			Contractor’s Tools and Construction Equipment

				31

	 	
			3.8

				
			Employment of Personnel

				31

	 	
			3.9

				
			Clean-up

				32

	 	
			3.10

				
			Safety and Security

				33

	 	
			3.11

				
			Emergencies

				34

	 	
			3.12

				
			Approvals, Certificates, Permits and Licenses

				34

	 	
			3.13

				
			Books, Records and Audits

				35

	 	
			3.14

				
			Tax Accounting

				35

	 	
			3.15

				
			Temporary Utilities, Roads, Facilities and Storage

				36

	 	
			3.16

				
			Subordination of Liens

				36

	 	
			3.17

				
			Hazardous Materials

				37

	 	
			3.18

				
			Quality Assurance

				37

	 	
			3.19

				
			Reports and Meetings

				38

	 	
			3.20

				
			Payment

				39

	 	
			3.21

				
			Commercial Activities

				39

	 	
			3.22

				
			Title to Materials Found

				39

	 	
			3.23

				
			Survey Control Points and Layout

				39

	 	
			3.24

				
			Cooperation with Others

				40

	 	
			3.25

				
			Responsibility for Property

				40

	 	
			3.26

				
			Explosives

				40

	 	
			3.27

				
			No Interference with Trains 1 and 2 Liquefaction Facility

				41

	 	
			3.28

				
			Equipment Not Incorporated into the Train 3 Liquefaction Facility

				42

	 	
			3.29

				
			Operation Personnel

				42

 

 

 

 

 

 

	 	
			3.30

				
			Compliance with Real Property Interests

				43

	 	
			3.31

				
			Taxes

				43

	 	
			3.32

				
			Electronic File Sharing Site

				43

 

ARTICLE 4         OWNER’S RESPONSIBILITIES         

	 	
			4.1

				
			Payment

				43

	 	
			4.2

				
			Permits

				43

	 	
			4.3

				
			Access on the Site

				44

	 	
			4.4

				
			Operation Personnel

				44

	 	
			4.5

				
			Legal Description and Survey

				44

	 	
			4.6

				
			Owner-Furnished Items

				44

	 	
			4.7

				
			Owner Representative

				46

	 	
			4.8

				
			Texas Sales and Use Tax Matters

				46

	 	
			4.9

				
			Hazardous Materials

				47

	 	
			4.10

				
			LNG Tanker Release

				47

 

ARTICLE 5         COMMENCEMENT OF WORK, KEY DATES, AND SCHEDULING OBLIGATIONS         

	 	
			5.1

				
			Commencement of Work

				47

	 	
			5.2

				
			Limited Notice to Proceed/Notice to Proceed

				47

	 	
			5.3

				
			Key Dates

				50

	 	
			5.4

				
			CPM Schedule

				50

 

	 	
			5.5

				
			Recovery and Recovery Schedule

				52

	 	
			5.6

				
			Acceleration and Acceleration Schedule

				54

 

ARTICLE 6         CHANGES; FORCE MAJEURE; AND OWNER -CAUSED DELAY         

	 	
			6.1

				
			Owner’s Right to Change Order

				55

	 	
			6.2

				
			Change Orders Requested by Contractor

				57

	 	
			6.3

				
			Changed Criteria Adjustment; Contractor Documentation

				60

	 	
			6.4

				
			Change Orders Act as Accord and Satisfaction

				60

	 	
			6.5

				
			Timing Requirements for Change Notices Issued by Contractor

				60

	 	
			6.6

				
			Adjustment Only Through Change Order

				61

	 	
			6.7

				
			Force Majeure

				62

	 	
			6.8

				
			Delay Caused by Owner or for Which Owner is Responsible

				63

	 	
			6.9

				
			Delay

				64

	 	
			6.10

				
			Contractor Obligation to Mitigate Delay

				64

	 	
			6.11

				
			Separated Contract Price Adjustments in Change Orders

				64

	 	
			6.12

				
			COVID-19 Provisional Sum and COVID-19 Events

				64

	 	
			6.13

				
			Russian and Ukraine Conflict Event

				66

 

ARTICLE 7         CONTRACT PRICE AND PAYMENTS TO CONTRACTOR         

	 	
			7.1

				
			Contract Price

				68

	 	
			7.2

				
			Interim Payments

				69

	 	
			7.3

				
			Final Completion and Final Payment

				71

	 	
			7.4

				
			Payments Not Acceptance of Work

				71

	 	
			7.5

				
			Payments Withheld

				71

	 	
			7.6

				
			Payment of Amounts Withheld or Collected on Letter of Credit

				72

 

 

ii

 

 

 

	 	
			7.7

				
			Interest on Late Payments

				73

	 	
			7.8

				
			Offset

				73

	 	
			7.9

				
			Currency

				73

	 	
			7.10

				
			Conditions Precedent to Payment

				74

	 	
			7.11

				
			[***]

				74

 

ARTICLE 8         TITLE AND RISK OF LOSS         

	 	
			8.1

				
			Title

				74

	 	
			8.2

				
			Risk of Loss

				74

 

ARTICLE 9         INSURANCE AND LETTER OF CREDIT         

	 	
			9.1

				
			Insurance76

				76

	 	
			9.2

				
			Irrevocable Standby Letter of Credit

				76

 

ARTICLE 10 OWNERSHIP OF DOCUMENTATION         

	 	
			10.1

				
			Ownership of Work Product

				79

	 	
			10.2

				
			Contractor’s Intellectual Property and Third Party Intellectual Property

				80

	 	
			10.3

				
			Limitations on Use of Work Product

				81

	 	
			10.4

				
			Owner Provided Documents

				81

	 	
			10.5

				
			License to Use Liquefaction Technology

				82

	 	
			10.6

				
			APCI Third Party Intellectual Property

				82

	 	
			10.7

				
			License to Use Liquefaction Technology

				82

 

ARTICLE 11 COMPLETION AND PERFORMANCE LIQUIDATED DAMAGES         

 

	 	
			11.1

				
			Notice and Requirements for RFFGI, Commissioning Completion, and RFSU

				83

	 	
			11.2

				
			LNG Production Plan

				84

	 	
			11.3

				
			Notice and Requirements for Substantial Completion

				84

	 	
			11.4

				
			Owner Acceptance of RFFGI, Commissioning Completion, RFSU and Substantial Completion

				85

	 	
			11.5

				
			Performance Guarantees and Minimum Acceptance Criteria

				85

	 	
			11.6

				
			Punchlist

				87

	 	
			11.7

				
			Notice and Requirements for Final Completion

				88

	 	
			11.8

				
			Partial Occupancy and Use

				88

	 	
			11.9

				
			Advice and Assistance after Substantial Completion

				88

	 	
			11.10

				
			Long-Term Obligations

				89

 

ARTICLE 12 WARRANTY AND CORRECTION OF WORK         

	 	
			12.1

				
			Warranty

				89

	 	
			12.2

				
			Correction of Work Prior to Substantial Completion

				90

	 	
			12.3

				
			Correction of Work After Substantial Completion

				92

	 	
			12.4

				
			Assignability of Warranties

				94

	 	
			12.5

				
			Waiver of Implied Warranties

				94

 

ARTICLE 13 GUARANTEE OF TIMELY COMPLETION AND DELAY

LIQUIDATED DAMAGES         

	 	
			13.1

				
			Delay Liquidated Damages

				95

 

 

iii

 

 

 

	 	
			13.2

				
			Payment of Liquidated Damages

				95

	 	
			13.3

				
			Early Completion Bonus

				95

 

ARTICLE 14 CONTRACTOR’S REPRESENTATIONS         

	 	
			14.1

				
			Contractor Representations

				96

 

ARTICLE 15 OWNER’S REPRESENTATIONS         

	 	
			15.1

				
			Owner Representations

				97

	 	
			15.2

				
			Financial Solvency

				98

 

ARTICLE 16 DEFAULT, TERMINATION AND SUSPENSION         

	 	
			16.1

				
			Default by Contractor

				98

	 	
			16.2

				
			Termination for Convenience by Owner

				100

	 	
			16.3

				
			Suspension of Work

				101

	 	
			16.4

				
			Suspension by Contractor

				101

	 	
			16.5

				
			Termination by Contractor

				101

 

ARTICLE 17 INDEMNITIES         

	 	
			17.1

				
			Contractor’s General Indemnification

				102

	 	
			17.2

				
			Owner’s Indemnity for Personal Injury and Property Damage

				104

	 	
			17.3

				
			Indemnification of Port Indemnified Parties

				104

	 	
			17.4

				
			Pre-existing Hazardous Material

				105

	 	
			17.5

				
			Patent and Copyright Indemnification

				105

	 	
			17.6

				
			Lien Indemnification

				106

 

	 	
			17.7

				
			Legal Defense

				106

	 	
			17.8

				
			Enforceability

				107

 

ARTICLE 18 DISPUTE RESOLUTION         

	 	
			18.1

				
			Negotiation

				108

	 	
			18.2

				
			Litigation

				108

	 	
			18.3

				
			Continuation of Work During Dispute

				109

 

ARTICLE 19 CONFIDENTIALITY         

	 	
			19.1

				
			Contractor’s Obligations

				109

	 	
			19.2

				
			Owner’s Obligations

				110

	 	
			19.3

				
			Definitions

				111

	 	
			19.4

				
			Exceptions

				111

	 	
			19.5

				
			Equitable Relief

				112

	 	
			19.6

				
			Term

				112

 

ARTICLE 20 LIMITATION OF LIABILITY         

	 	
			20.1

				
			Contractor Aggregate Liability

				112

	 	
			20.2

				
			Limitation on Contractor’s Liability for Liquidated Damages

				112

	 	
			20.3

				
			Liquidated Damages in General

				113

	 	
			20.4

				
			Consequential Damages

				114

	 	
			20.5

				
			Exclusive Remedies

				114

	 	
			20.6

				
			Application of Liability Limitations

				114

 

 

iv

 

 

 

ARTICLE 21 MISCELLANEOUS PROVISIONS         

	 	
			21.1

				
			Entire Agreement

				115
	 	
			21.2

				
			Amendments

				115
	 	
			21.3

				
			Joint Effort

				115
	 	
			21.4

				
			Captions

				115
	 	
			21.5

				
			Notice

				115
	 	
			21.6

				
			Severability

				116
	 	
			21.7

				
			Assignment

				117
	 	
			21.8

				
			No Waiver

				117
	 	
			21.9

				
			Governing Law

				117
	 	
			21.10

				
			Foreign Corrupt Practices Act

				117
	 	
			21.11

				
			Successors and Assigns

				118
	 	
			21.12

				
			Attachments and Schedules

				118
	 	
			21.13

				
			Obligations

				118
	 	
			21.14

				
			Further Assurances

				118
	 	
			21.15

				
			Priority

				118
	 	
			21.16

				
			Restrictions on Public Announcements

				118
	 	
			21.17

				
			Parent Guarantee

				119
	 	
			21.18

				
			Language

				119
	 	
			21.19

				
			Counterparts

				119
	 	
			21.20

				
			Owner’s Lender

				119
	 	
			21.21

				
			Trains 1 and 2 Liquefaction Facility

				119
	 	
			21.22

				
			Potential Lenders, Potential Equity Investors and Equity Participants

				120
	 	
			21.23

				
			Survival

				120

 

 

v

 

 

LIST OF ATTACHMENTS AND SCHEDULES

 

 

	
			ATTACHMENT A

				
			Scope of Work and Basis of Design

			
	
			SCHEDULE A-1

				
			Scope of Work

			
	
			SCHEDULE A-2

				
			Basis of Design

			
	
			SCHEDULE A-3

				
			Agreed Change Orders

			
	
			ATTACHMENT B

				
			Contractor Deliverables

			
	
			ATTACHMENT C

				
			Payment Schedule

			
	
			SCHEDULE C-1

				
			Earned Value Contract Price Breakdown

			
	
			SCHEDULE C-2

				
			Payment Milestones

			
	
			SCHEDULE C-3

				
			Maximum Cumulative Payment Schedule

			
	
			SCHEDULE C-4

				
			Additional Work Options Pricing

			
	
			SCHEDULE C-5

				
			Escalation Table

			
	
			ATTACHMENT D

				
			Form of Change Order

			
	
			SCHEDULE D-1

				
			Change Order Form

			
	
			SCHEDULE D-2

				
			Change Directive Form

			
	
			SCHEDULE D-3

				
			Owner’s Change Request Form

			
	
			SCHEDULE D-4

				
			Contractor’s Change Notice Form

			
	
			SCHEDULE D-5

				
			Pricing for Change Orders and Change Directives

			
	
			ATTACHMENT E

				
			Key Dates and Delay Liquidated Damages

			
	
			SCHEDULE E-1

				
			Key Dates

			
	
			SCHEDULE E-2

				
			Delay Liquidated Damages

			
	
			ATTACHMENT F

				
			Key Personnel and Contractor’s Organization

			
	
			ATTACHMENT G

				
			Approved Subcontractors and Sub-subcontractors

			

 

 

 

vi

 

 

 

	
			ATTACHMENT H

				
			Notice to Proceed Forms

			
	
			SCHEDULE H-1

				
			Form of Limited Notice to Proceed

			
	
			SCHEDULE H-2

				
			Form of Notice to Proceed

			
	
			SCHEDULE H-3

				
			Not used

			
	
			SCHEDULE H-4

				
			Not used

			
	
			ATTACHMENT I

				
			Form of Contractor’s Invoices

			
	
			SCHEDULE I-1

				
			Form of Contractor’s Interim Invoice

			
	
			SCHEDULE I-2

				
			Form of Contractor’s Final Invoice

			
	
			ATTACHMENT J

				
			Health, Safety and Environmental Policies

			
	
			ATTACHMENT K

				
			Form of Lien and Claim Waivers

			
	
			SCHEDULE K-1

				
			Contractor’s Interim Conditional Lien Waiver and Release upon Progress Payment

			
	
			SCHEDULE K-2

				
			Contractor’s Interim Conditional Claim Waiver upon Progress Payment

			
	
			SCHEDULE K-3

				
			Subcontractor’s Interim Conditional Lien Waiver and Release upon Progress Payment

			
	
			SCHEDULE K-4

				
			Subcontractor’s Interim Conditional Claim Waiver upon Progress Payment

			
	
			SCHEDULE K-5

				
			Contractor’s Final Lien Waiver and Release upon Final Payment

			
	
			SCHEDULE K-6

				
			Contractor’s Final Claim Waiver and Release upon Final Payment

			
	
			SCHEDULE K-7

				
			Subcontractor’s Final Lien Waiver and Release upon Final Payment

			
	
			SCHEDULE K-8

				
			Subcontractor’s Final Claim Waiver and Release upon Final Payment

			
	
			ATTACHMENT L

				
			Form of Completion Certificates

			

 

 

 

vii

 

 

 

	
			SCHEDULE L-1

				
			Form of RFFGI Certificate

			
	
			SCHEDULE L-2

				
			Not Used

			
	
			SCHEDULE L-3

				
			Form of RFSU Certificate

			
	
			SCHEDULE L-4

				
			Not used

			
	
			SCHEDULE L-5

				
			Form of Substantial Completion Certificate

			
	
			SCHEDULE L-6

				
			Form of Final Completion Certificate

			
	
			ATTACHMENT M

				
			Pre-Commissioning, Commissioning, Start-up, Training and Turnover Program

			
	
			ATTACHMENT N

				
			Not Used

			
	
			ATTACHMENT O

				
			Insurance Requirements

			
	
			ATTACHMENT P

				
			Contractor Permits

			
	
			ATTACHMENT Q

				
			Owner Permits

			
	
			ATTACHMENT R

				
			Form of Irrevocable, Standby Letter of Credit

			
	
			ATTACHMENT S

				
			Performance Tests

			
	
			ATTACHMENT T

				
			Minimum Acceptance Criteria, Performance Guarantees and Performance Liquidated Damages

			
	
			ATTACHMENT U

				
			Form of Parent Guarantee

			
	
			ATTACHMENT V

				
			Owner-Furnished Items

			
	
			ATTACHMENT W

				
			Capital Spare Parts List

			
	
			ATTACHMENT X

				
			Meeting and Reporting Requirements

			
	
			ATTACHMENT Y

				
			Quality Plan

			
	
			ATTACHMENT Z

				
			Site Plan

			
	
			ATTACHMENT AA

				
			Form of Direct Agreements

			
	
			ATTACHMENT BB

				
			Rely Upon Information

			

 

 

 

viii

 

 

 

	
			ATTACHMENT CC

				
			Not used

			
	
			ATTACHMENT DD

				
			List of Equipment and Texas Direct Pay Exemption Certificate

			
	
			ATTACHMENT EE

				
			Not Used

			
	
			ATTACHMENT FF

				
			Relief for changes in U.S. Tariffs or Duties

			
	
			ATTACHMENT GG

				
			Not used

			
	
			ATTACHMENT HH

				
			List of Post-Substantial Completion Interfering Work

			
	
			ATTACHMENT II

				
			Contractor’s COVID-19 Countermeasures, Means, and Methods and Provisional Sum

			
	
			ATTACHMENT JJ

				
			Provisional Sums

			
	
			ATTACHMENT KK

				
			Commodity Price Rise and Fall

			
	
			ATTACHMENT LL

				
			High Value Orders True Up

			
	
			SCHEDULE LL-1

				
			High Value Orders

			
	
			SCHEDULE LL-2

				
			Form of HVO Proposal Letter

			

 

 

 

 

 

 

ENGINEERING, PROCUREMENT AND CONSTRUCTION AGREEMENT

 

 

THIS AMENDED AND RESTATED ENGINEERING, PROCUREMENT AND CONSTRUCTION AGREEMENT (this “Agreement”), dated the 15th Day of September, 2022 (the “Amended and Restated Execution Date”), is entered into by and between Rio Grande LNG, LLC a limited liability company organized under the laws of Texas (“Owner”), and Bechtel Energy Inc., a corporation organized under the laws of Delaware (hereinafter referred to as “Contractor”), each sometimes referred to individually herein as a “Party” and collectively as the “Parties.”

 

 

RECITALS

 

WHEREAS, contemporaneously with the execution of this Agreement, Owner entered into an agreement with Contractor to perform the engineering, procurement, construction, pre- commissioning, commissioning, start-up and testing of the Trains 1 and 2 and Liquefaction Facility pursuant to the Trains 1 and 2 EPC Agreement located at a site south of the Brownsville-Port Isabel Highway and north of the Brownsville Ship Channel in Cameron County near Brownsville, Texas;

 

WHEREAS, Owner desires to enter into this agreement with Contractor to perform the engineering, procurement, construction, pre-commissioning, commissioning, start-up and testing of an additional liquefaction unit, having a nominal LNG production capacity of up to approximately 5.87 million metric tonnes per annum (“mtpa”) and associated facilities, for the purpose of liquefying natural gas to form LNG (the “Train 3 Liquefaction Facility”) as defined in greater detail herein) located at the Site; and

 

WHEREAS, Contractor, itself or through its vendors, suppliers, and subcontractors, desires to perform the foregoing engineering, procurement, construction, pre-commissioning, commissioning, start-up and testing of the Train 3 Liquefaction Facility on a fixed price turnkey basis (which fixed price is separated for tax purposes);

 

WHEREAS, Owner and Bechtel Oil, Gas and Chemicals, Inc. (now known as Bechtel Energy Inc.) entered into an engineering, procurement and construction agreement for the Train 3 Liquefaction Facility as of the 24th day of May, 2019 (the “Prior EPC Contract”) to accomplish the foregoing;

 

WHEREAS, Owner and Contractor desire to amend and restate the Prior EPC Contract by entering into this Agreement.

 

NOW THEREFORE, in consideration of the mutual covenants herein contained and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereby agree as follows:

 

 

 

ARTICLE 1

DEFINITIONS

 

1.1    Definitions. In addition to other defined terms used throughout this Agreement, when used herein, the following capitalized terms have the meanings specified in this Section 1.1.

 

 

 

 

 

“AAA Rules” has the meaning set forth in Section 18.2.

 

“Abandonment” or “Abandon” means, prior to the acceptance by Owner of the Substantial Completion Certificate, Contractor’s cessation of all or substantially all of the Work (unless Contractor is entitled to stop, suspend or terminate the performance of the Work under the Agreement).

 

“Acceleration Schedule” has the meaning set forth in Section 5.6.

 

“Affiliate” means (i) any Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with a Party, and (ii) any Person that, directly or indirectly, is the beneficial owner of fifty percent (50%) or more of any class of equity securities of, or other ownership interests in, a Party or of which the Party is directly or indirectly the owner of fifty percent (50%) or more of any class of equity securities or other ownership interests. For purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities or otherwise.

 

“Agreement” means this Agreement for the performance of the Work (including all Attachments and Schedules attached hereto), as it may be amended from time to time in accordance with this Agreement.

 

“Aggregate Cap” has the meaning set forth in Section 20.1.

 

“Aggregate Equipment Price” has the meaning set forth in Section 7.1B.1.

 

“Aggregate Labor and Skills Price” has the meaning set forth in Section 7.1B.2.

 

“Amended and Restated Execution Date” has the meaning set forth in the preamble.

 

“APCI” means Air Products and Chemicals, Inc., a Subcontractor providing certain Equipment and engineering services related to the wound coil aluminum heat exchangers LNG liquefaction units pursuant to the equipment purchase agreement between Contractor and Air Products and Chemicals, Inc.

 

“APCI License” has the meaning set forth in Section 10.7A.

 

“Applicable Codes and Standards” means any and all codes, standards or requirements set forth in Attachment A or in any Applicable Law, which codes, standards and requirements shall govern Contractor’s performance of the Work, as provided herein. In the event of an inconsistency or conflict between any of the Applicable Codes and Standards, the highest performance standard as contemplated therein shall govern Contractor’s performance under this Agreement.

 

“Applicable Law” means all laws, statutes, ordinances, certifications, orders, (including presidential orders), decrees, proclamations, injunctions, licenses, Permits, approvals, rules

 

2

 

 

and regulations, including any conditions thereto, of any Governmental Instrumentality having jurisdiction over any Party, all or any portion of the Site or the Train 3 Liquefaction Facility or performance of all or any portion of the Work or the operation of the Train 3 Liquefaction Facility or the Trains 1 and 2 Liquefaction Facility, or other legislative or administrative action of a Governmental Instrumentality having jurisdiction over all or any portion of the Site or the Project or performance of all or any portion of the Work or the operation of the Project, or a final decree, judgment or order of a court which relates to the performance of Work hereunder or the interpretation or application of this Agreement, including (i) any and all Permits, (ii) any Applicable Codes and Standards set forth in Applicable Law, (iii) tariffs, quotas, and duties, and (iv) Applicable Law related to (y) conservation, improvement, protection, pollution, contamination or remediation of the environment or (z) Hazardous Materials or any handling, storage, release or other disposition of Hazardous Materials.

 

“approval” and “consent” means, unless specified otherwise herein, written approval and written consent. Wherever in this Agreement a provision is made for the giving or issuing of any consent by a Party, unless otherwise specified, such consent shall be in writing and the words “consent”, “approve”, “accept” or “certify” (or words to similar effect) are to be construed accordingly.

 

“Authorized Documents” means such documents, drawings, and specifications provided by Owner to Contractor pursuant to the ITB Agreement, which Contractor has modified and resubmitted to Owner as part of the FEED verification process performed by Contractor prior to the Original Effective Date.

 

“BASF” means BASF SE.

 

“BASF License” has the meaning set forth in Section 10.7B.

 

“Basis of Design” means the basis of design of the Train 3 Liquefaction Facility as set forth in Schedule A-2.

 

“BHGE” means Baker Hughes GE.

 

“Books and Records” has the meaning set forth in Section 3.13A.

 

“Business Day” means every Day other than a Saturday, a Sunday or a Day that is an official holiday for employees of the federal government of the United States of America.

 

“CAD” has the meaning set forth in Section 3.3E.

 

“Capital Spare Parts” means those capital spare parts listed in Attachment W for use after Substantial Completion which are to be included in the Work and the Contract Price, as further set forth in Section 3.4B.

 

“Change Directive” is a written order issued by Owner to Contractor after the execution of this Agreement in the form of Schedule D-2 that requires Contractor to commence and execute an addition to, omission from, deletion from, suspension of, or any other

 

3

 

 

modification or adjustment to the requirements of this Agreement, the Work or any Changed Criteria.

 

“Change Order” means a written instrument signed by both Parties after the execution of this Agreement in the form of Schedule D-1, that authorizes an addition to, deletion from, suspension of, or any other modification or adjustment to the requirements of this Agreement, including an addition to, deletion from or suspension of the Work or any modification or adjustment to any Changed Criteria. Owner and Contractor are entitled to a Change Order in accordance with ARTICLE 6.

 

“Changed Criteria” means the Contract Price, the Key Dates, the Basis of Design, the Payment Schedule, any of the Minimum Acceptance Criteria or Performance Guarantees, or any other obligation or potential liability of Contractor under the Agreement.

 

“Change in COVID-19 Applicable Law” means the enactment, adoption, promulgation, imposition or repeal of an Applicable Law or an amendment to an Applicable Law or a change in the interpretation or application of an Applicable Law by a Governmental Instrumentality, that, in either case, is issued (a) in response to the COVID-19 pandemic, or to protect the general public or those performing the Work from the spread of COVID- 19, or to otherwise fight against the spread of COVID-19, and (b) after May 15, 2022 (subject to Section 2.6).

 

“Changes in Law” means any amendment, modification, superseding act, deletion, addition or change in or to Applicable Law (other than tariffs, quotas, and duties, which are addressed separately in Attachment FF), including changes to Tax laws that directly impact the Work (but excluding changes to Tax laws where such Taxes are based upon Contractor’s revenue, income, profits/losses or cost of finance) that occurs and takes effect after May 15, 2022 (subject to Section 2.6). Change in Law shall include any official change in the interpretation or application of Applicable Law (including Applicable Codes and Standards set forth in Applicable Law) that is not due to an act or omission of Contractor or its Subcontractors or Sub-subcontractors, provided that such Governmental Instrumentality making such official change expressly states in writing that it is officially changing the interpretation or applicable of such Applicable Law.

 

“Change in U.S. Tariffs or Duties” has the meaning set forth in Attachment FF.

 

“Collateral Agent” has the meaning set forth in Attachment O.

 

“Commissioning” means, with respect to the applicable system or subsystem of the Equipment, all activities required subsequent to achieving mechanical completion of such system or subsystem and prior to RFSU, including the introduction of inert gas to oxygen free the systems and subsystems, commencement of the drying out process and tightness tests performed with inert gas at operating pressures, as further set forth in Attachment A and the performance and completion of the activities or the Commissioning checklists agreed to by Owner and Contractor.

 

“Competitors of Contractor” has the meaning set forth in Section 19.2.

 

4

 

 

“Confidential Information” has the meaning set forth in Section 19.3. “[***]”.

 

“Consequential Damages” has the meaning set forth in Section 20.4.

 

“Construction Equipment” means the equipment, machinery, temporary structures, scaffolding, materials, tools, supplies and systems, purchased, owned, rented or leased by Contractor or its Subcontractors or Sub-subcontractors for use in accomplishing the Work, but not intended for incorporation into the Train 3 Liquefaction Facility.

 

“Contract Price” has the meaning set forth in Section 7.1.

 

“Contractor” has the meaning set forth in the preamble.

 

“Contractor’s Change Notice” has the meaning set forth in Section 6.2B.

 

“Contractor Indemnified Parties” means (i) Contractor and its Affiliates, and (ii) the respective officers, directors, agents, members, shareholders, invitees, representatives and employees of each Person specified in clause (i) above. A “Contractor Indemnified Party” means any one of the Contractor Indemnified Parties.

 

“Contractor Permits” has the meaning set forth in Section 3.12A.

 

“Contractor Representative” means that Person or Persons designated by Contractor in Section 2.2B, or in a notice to Owner pursuant to the process in Section 2.2A, who shall have complete authority to act on behalf of Contractor on all matters pertaining to this Agreement or the Work, including giving instructions and making changes in the Work, except for any limitations specified in such notice.

 

“Contractor’s Confidential Information” has the meaning set forth in Section 19.2.

 

“Contractor’s Intellectual Property” has the meaning set forth in Section 10.2. “[***]”.

 

“Corrective Work” has the meaning set forth in Section 12.3.

 

“COVID-19” means an infectious respiratory disease caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), as identified by the World Health Organization and further abbreviated by such organization as “COVID-19,” including any related strains and mutations of COVID-19, wherever the same may occur.

 

“COVID-19 Countermeasures” has the meaning set forth in Section 6.12A. “COVID-19 Events” means the occurrence of any of the following:

	 	
			A.

				
			a Change in COVID-19 Applicable Law affecting the Work;

			

 

 

5

 

 

 

	 	
			B.

				
			a change in COVID-19 Guidelines affecting the Work;

			

 

	 	
			C.

				
			a COVID-19 Outbreak affecting the Work;

			

 

D.    a COVID-19 Extension affecting the Work (provided that the relief for a COVID-19 Extension shall be solely handled as Provisional Sum in accordance with Attachment II, except that Contractor shall also be entitled to schedule relief as a COVID-19 Event for the COVID-19 Countermeasures in Rows 13 and 24 of Schedule II-1 in accordance with Section 6.12B); or

 

E.    occurrence of other epidemics, pandemics or plagues affecting the Work.

 

“COVID-19 Extension” has the meaning set forth in Section 6.12A.1.

 

“COVID-19 Guidelines” means the published guidelines, recommendations or suggested practices (including all revisions, amendments or supplements thereto) of any Governmental Instrumentality or relevant health or safety agency or body, including the Centers for Disease Control and Prevention (CDC), World Health Organization (WHO) or the Occupational Safety & Health Administration (OSHA), that is applicable to the performance of the Work that (a) is issued for the purpose of protecting the general public or those performing the Work from the spread of COVID-19, or to otherwise fight against the spread of COVID-19 and (b) is implemented by Contractor or its applicable Subcontractors or Sub-subcontractors for the purpose of reasonably protecting those performing the Work from the spread of COVID-19, provided that with respect to any Work at the Site, Contractor will first consult with Owner before implementation.

 

“COVID-19 Outbreak” means a threatened or an actual increase in the incidence of COVID-19 infection among Owner’s or Contractor’s (or its Subcontractors’ or Sub- subcontractors’) personnel assigned to perform the Work above the incident rate at the Site or in the region where the applicable Work is being performed that existed prior to such increase.

 

“COVID-19 Provisional Sum” means the costs and expenses for the COVID-19 Countermeasures set forth in Attachment II that are implemented by Contractor (or its applicable Subcontractors or Sub-subcontractors) as a result of COVID-19 (including the occurrence of a COVID-19 Event) in accordance with this Agreement. The initial provisional sum amount is set forth in Section 1.0d of Attachment II.

 

“CPM Schedule” has the meaning set forth in Section 5.4A.

 

“Cure Period” has the meaning set forth in Section 16.1C.

 

“Day” means a calendar day.

 

“Default” has the meaning set forth in Section 16.1A.

 

“Defect” or “Defective” has the meaning set forth in Section 12.1A.

 

6

 

 

“Defect Correction Period” means:

 

	 	
			(i)

				
			with respect to the Work (except for Structural Work described in clause (ii)    below), the period commencing upon Substantial Completion and ending eighteen (18) months thereafter, as may be extended in accordance with Sections 12.3C and 12.3D; and

			

(ii)    with respect to Structural Work, the period commencing upon Substantial Completion and ending three (3) years thereafter.

 

“Delay Liquidated Damages” has the meaning set forth in Section 13.1

 

“DFCD” means date of first commercial delivery.

 

“DFCD Date for Train 3” has the meaning set forth in Section 13.3B.

 

“Disclosing Party” has the meaning set forth in Section 19.3.

 

“Dispute” has the meaning set forth in Section 18.1.

 

“Dispute Notice” has the meaning set forth in Section 18.1.

 

“Drawings” means the graphic and pictorial documents (in written or electronic format) showing the design, location and dimensions of the Work, generally including plans, elevations, sections, details, schedules and diagrams, which are prepared as a part of and during the performance of the Work.

 

“Early Completion Bonus for Train 3” has the meaning set forth in Section 13.3A.

 

“Earned Value” has the meaning set forth in Section 7.2A.

 

“Earned Value Contract Price Breakdown” has the meaning set forth in Section 7.2A.

 

“Equipment” means all equipment, materials, supplies and systems required for the completion of and incorporation into the Train 3 Liquefaction Facility. Equipment excludes Construction Equipment. Notwithstanding the foregoing, equipment required to be engineered, procured or constructed under the Trains 1 and 2 EPC Agreement shall not be considered Equipment under this Agreement.

 

“Expanded Facility” means the additional liquefaction units (beyond those included in the Trains 1 and 2 Liquefaction Facility and the Train 3 Liquefaction Facility) and associated facilities at the Site, to achieve a total of up to twenty-seven (27) mtpa.

 

“FCPA” has the meaning set forth in Section 21.10.

 

“FERC” means the Federal Energy Regulatory Commission.

 

“FERC Authorization” means a written authorization issued from time to time by the FERC director of the Office of Energy Projects, authorizing Owner to commence

 

7

 

 

construction of the Train 3 Liquefaction Facility, or take such other actions with respect to the Train 3 Liquefaction Facility as set forth therein.

 

“Final Completion” means that all Work and all other obligations under this Agreement (except for that Work and obligations that survive the termination or expiration of this Agreement, including obligations for Warranties, correction of Defective Work and those covered by Section 11.10), are fully and completely performed in accordance with the terms of this Agreement, including: (i) the achievement of Substantial Completion; (ii) the achievement of all Performance Guarantees or payment of all Performance Liquidated Damages due and owing; (iii) the completion of all Punchlist items; (iv) delivery by Contractor to Owner of a fully executed Final Lien and Claim Waiver in the form of Schedules K-5 and K-6; (v) delivery by Contractor to Owner of all documentation required to be delivered under this Agreement, including Record As-Built Drawings and Specifications, test reports and the final operations and maintenance manuals for the Train 3 Liquefaction Facility; (vi) delivery to Owner, in content and form reasonably satisfactory to Owner, of copies of all required Subcontracts, written assignments of Subcontractor warranties and a list of the names, addresses and telephone numbers of the Subcontractors providing such warranties; (vii) removal from the Site of all of Contractor’s, Subcontractors’ and Sub-subcontractors’ personnel, supplies, waste, materials, rubbish, Hazardous Materials, Construction Equipment, and temporary facilities for which Contractor is responsible under ARTICLE 3, other than as required by Contractor to fulfill its obligations under Section 12.3A; (viii) delivery by Contractor to Owner of fully executed Final Lien and Claim Waivers from all Major Subcontractors in the form in Schedules K-7 and K-8; (ix) if, requested by Owner, fully executed Final Lien and Claim Waivers from Major Sub-subcontractors in a form substantially similar to the form in Schedules K-7 and K-8; and (x) delivery by Contractor to Owner of a Final Completion Certificate in the form of Schedule L-6 and as required under Section 11.7, which Owner has accepted by signing such certificate.

 

“Final Completion Certificate” has the meaning set forth in Section 11.7.

 

“Final Completion Date” has the meaning set forth in Section 5.3B.

 

“Final Lien and Claim Waiver” means the waiver and release provided to Owner by Contractor, Major Subcontractors and Major Sub-subcontractors in accordance with the requirements of Section 7.3, which shall be in the form of Schedule K-5, Schedule K-6, Schedule K-7, and Schedule K-8.

 

“Final NTP Deadline” has the meaning set forth in Section 5.2D.3.

 

“Force Majeure” means catastrophic storms, lightning or floods, tornadoes, hurricanes, typhoons, cyclones, [***], earthquakes, and other acts of God, accidents at sea, wars (other than a Russian and Ukraine Conflict Event), civil disturbances, Regional Strikes or other similar national labor actions, terrorist attacks, revolts, insurrections, sabotage, commercial embargoes, fires, explosions, and actions of a Governmental Instrumentality that were not requested, promoted, or caused by the affected Party, each of which occurs after the Amended and Restated Execution Date; provided that such act or event (1) delays or

 

8

 

 

renders impossible the affected Party’s performance of its obligations under this Agreement, (2) is beyond the reasonable control of the affected Party and not due to its or its Subcontractor’s fault or negligence, and (3) could not have been prevented or avoided by the affected Party through the exercise of reasonable due diligence. For avoidance of doubt, Force Majeure shall not include any of the following: (1) economic hardship, (2) changes in market conditions, (3) late delivery or failure of Construction Equipment or Equipment unless such late delivery or failure of Construction Equipment or Equipment was otherwise caused by Force Majeure, (4) labor availability, strikes, or other similar labor actions, other than Regional Strikes or other similar national labor actions, (5) any impact to the Work as a result of COVID-19, including any COVID-19 Events, or from a Russian and Ukraine Conflict Event, or (6) climatic conditions (including rain, snow, wind, temperature and other weather conditions), tides, and seasons, regardless of the magnitude, severity, duration or frequency of such climatic conditions, tides or seasons, but excluding catastrophic storms or floods, lightning, tornadoes, hurricanes, typhoons, cyclones, [***] and earthquakes.

 

“GAAP” means generally accepted accounting principles in the United States of America.

 

“Good Engineering and Construction Practices” or “GECP” means the generally recognized and accepted reasonable and prudent practices, methods, skill, care, techniques and standards employed by the international LNG liquefaction and storage engineering and construction industries with respect to: (i) the engineering, procurement, construction, pre- commissioning, Commissioning, testing and start-up of natural gas liquefaction and storage facilities of similar size and type as the Train 3 Liquefaction Facility and in accordance with Applicable Codes and Standards and Applicable Law; (ii) personnel and facility safety and environmental protection; (iii) efficient scheduling of the Work; and (iv) the reliability and availability of the Train 3 Liquefaction Facility under the operating conditions reasonably expected at the Site, as specified in Attachment A.

 

“Governmental Instrumentality” means any federal, state or local department, office, instrumentality, agency, authority, board or commission having jurisdiction over a Party or any portion of the Work, the Train 3 Liquefaction Facility or the Site.

 

“Guarantee Conditions” means the conditions upon which the Minimum Acceptance Criteria and Performance Guarantees are based and shall be tested, as further defined in Attachment T.

 

“Guaranteed Dates” mean the Guaranteed Substantial Completion Date and the Final Completion Date.

 

“Guaranteed Substantial Completion Date” has the meaning set forth in Section 5.3A.

 

“Guarantor” means Bechtel Global Energy, Inc.

 

“Hazardous Materials” means any substance that under Applicable Law is considered to be hazardous or toxic or is or may be required to be remediated, including (i) any petroleum or petroleum products, radioactive materials, asbestos in any form that is or could become friable, urea formaldehyde foam insulation, transformers or other equipment that contain

 

9

 

 

dielectric fluid containing polychlorinated biphenyls and processes and certain cooling systems that use chlorofluorocarbons, (ii) any chemicals, materials or substances which are now or hereafter become defined as or included in the definition of “hazardous substances,” “hazardous wastes,” “hazardous materials,” “extremely hazardous wastes,” “restricted hazardous wastes,” “toxic substances,” “toxic pollutants,” or any words of similar import pursuant to Applicable Law, or (iii) any other chemical, material, substance or waste, exposure to which is now or hereafter prohibited, limited or regulated by any Governmental Instrumentality, or which may be the subject of liability for damages, costs or remediation.

 

“High Value Orders” has the meaning set forth in Attachment LL.

 

“Indemnified Party” means any Owner Indemnified Party or Contractor Indemnified Party, as the context requires.

 

“Indemnifying Party” means Owner or Contractor, as the context requires.

 

“Independent Engineer” means the engineer(s) employed by Owner or Lender.

 

“Initial Exchange Rate” means the exchange rate set forth in Section 7.9.

 

“Initial NTP Deadline” has the meaning set forth in Section 5.2D.

 

“Interim Lien and Claim Waiver” means the waiver and release provided to Owner by Contractor, Major Subcontractors and Major Sub-subcontractors in accordance with the requirements of Section 7.2C, which shall be in the form of Schedule K-1, Schedule K-2, Schedule K-3, and Schedule K-4.

 

“Investment Grade” means a rating of at least A- by Standard & Poor’s and at least A3 by Moody’s Investors Service.

 

“Invoice” means Contractor’s request for an interim payment pursuant to Section 7.2 and for final payment pursuant to Section 7.3, which invoice shall be in the form of Schedule I- 1 for interim payments and Schedule I-2 for final payment.

 

“ISO” means the International Organization for Standardization.

 

“ITB Agreement” means the Invitation to Bid (“ITB”) Services Agreement between Owner and Contractor dated August 31, 2018.

 

“Key Dates” means the schedule of dates listed in Schedule E-1 and the Guaranteed Dates in which Contractor is required to achieve certain stages of completion of the Train 3 Liquefaction Facility.

 

“Key Personnel” or “Key Persons” has the meaning set forth in Section 2.2A.

 

“Lender” means any entity or entities providing temporary or permanent debt or equity financing to Owner for the Train 3 Liquefaction Facility, including interest rate hedge

 

10

 

 

providers and any entity or entities involved in the refinancing of such debt or equity financing.

 

“Letter of Credit” has the meaning set forth in Section 9.2.

 

“Limited Notice to Proceed” or “LNTP” means any limited notice to proceed issued in accordance with Schedule H-1 and Section 5.2A, authorizing and requiring Contractor to proceed with the Work identified in such LNTP.

 

“Liquidated Damages” means Performance Liquidated Damages and Delay Liquidated Damages.

 

“LNG” means liquefied natural gas.

 

“LNG Tanker” means any ocean-going vessel used by Owner, a customer of the Train 3 Liquefaction Facility or the Trains 1 and 2 Liquefaction Facility or their designee for the transportation of LNG.

 

“Major Subcontract” means (i) any Subcontract having an aggregate value in excess of [***] U.S. Dollars (U.S. $[***]), (ii) multiple Subcontracts with one Subcontractor that have an aggregate value in excess of [***] U.S. Dollars (U.S. $[***]), or (iii) any Subcontract entered into with a Subcontractor for Work listed in Sections 2 and 3 of Attachment G. The foregoing dollar amount threshold shall be calculated by adding up the relevant amounts across this Agreement and the Trains 1 and 2 EPC Agreement, provided that Contractor is concurrently performing Work under this Agreement and work under the Trains 1 and 2 EPC Agreement.

 

“Major Subcontractor” means any Subcontractor with whom Contractor enters, or intends to enter, into a Major Subcontract and the Subcontractors listed as such in Attachment G.

 

“Major Sub-subcontract” means (i) any Sub-subcontract having an aggregate value in excess of [***] U.S. Dollars (U.S. $[***]), (ii) multiple Sub-subcontracts with one Sub- subcontractor that have an aggregate value in excess of [***] U.S. Dollars (U.S. $[***]), or (iii) any Sub-subcontract entered into with a Sub-subcontractor for Work listed in Sections 2 and 3 of Attachment G. The foregoing dollar amount threshold shall be calculated by adding up the relevant amounts across this Agreement and the Trains 1 and 2 EPC Agreement, provided that Contractor is concurrently performing Work under this Agreement and work under the Trains 1 and 2 EPC Agreement.

 

“Major Sub-subcontractor” means any Sub-subcontractor with whom a Subcontractor or Sub-subcontractor enters, or intends to enter, into a Major Sub-subcontract and the Sub- subcontractors listed as such in Attachment G.

 

“Maximum Cumulative Payment Schedule” has the meaning set forth in Section 7.2E.

 

“Minimum Acceptance Criteria” or “MAC” means the minimum acceptance criteria specified in Attachment T.

 

11

 

 

“Minimum Acceptance Criteria Correction Period” has the meaning set forth in Section 11.5B.

 

“Minimum Acceptance Criteria Correction Plan” has the meaning set forth in Section 11.5B.

 

“Month” means a Gregorian calendar month; “month” means any period of thirty (30) consecutive Days.

 

“Monthly” means an event occurring, or an action taken, once every Month.

 

“Monthly Progress Reports” has the meaning set forth in Section 3.19A.4.

 

“Monthly Updated CPM Schedule” has the meaning set forth in Section 5.4C.

 

“mtpa” has the meaning set forth in the recitals.

 

“Notice to Proceed” or “NTP” means the full notice to proceed issued in accordance with Schedule H-2 and Section 5.2C, authorizing and requiring Contractor to commence the performance of the entire Work.

 

“OECD” has the meaning set forth in Section 21.10.

 

“Original Effective Date” is the effective date of the Prior EPC Contract, which is May 25, 2019.

 

“OSHA” means the United States Department of Labor’s Occupational Safety and Health Administration.

 

“Owner” has the meaning set forth in the preamble hereto.

 

“Owner-Furnished Items” has the meaning set forth in Section 4.6B.

 

“Owner Indemnified Parties” means (i) Owner, Owner’s Lenders, Owner’s limited or general partners, Owner’s members, Owner’s joint venturers and each of their respective Affiliates, and (ii) the respective officers, directors, agents, members, shareholders, invitees, representatives and employees of each Person specified in clause (i) above.

 

“Owner Indemnified Party” means any one of the Owner Indemnified Parties.

 

“Owner Representative” means that Person or Persons designated by Owner in a notice to Contractor who shall have complete authority to act on behalf of Owner on all matters pertaining to the Work, including giving instructions and making changes in the Work, except for any limitations specified in such notice.

 

“Owner’s Change Request” means the form of Owner’s request for a proposed Change Order attached hereto as Schedule D-3.

 

“Owner’s Confidential Information” has the meaning set forth in Section 19.1.

 

12

 

 

“Owner/TL CAs” has the meaning set forth in Section 19.2.

 

“Parent Guarantee” has the meaning set forth in Section 21.17.

 

“Party” or “Parties” has the meaning set forth in the preamble.

 

“Payment Milestone” means a designated portion of the Work as shown in the Payment Schedule.

 

“Payment Schedule” means the schedule set forth in Attachment C, which sets out the payments to be paid based on achievement of Earned Value and Payment Milestones.

 

“Performance Guarantee(s)” means the performance guarantees specified in Attachment T.

 

“Performance Liquidated Damages” means the liquidated damages associated with the failure to achieve one or more of the Performance Guarantees as specified in Attachment T.

 

“Performance Tests” means those tests performed by Contractor to determine whether the Train 3 Liquefaction Facility meets the Performance Guarantees and Minimum Acceptance Criteria, which tests shall be set forth in Attachment S and, to the extent not specified therein, as developed in accordance with Section 11.3.

 

“Permit” means any valid waiver, certificate, approval, consent, license, exemption, variance, franchise, permit, authorization or similar order or authorization from any Governmental Instrumentality required to be obtained or maintained in connection with the Train 3 Liquefaction Facility, the Site or the Work.

 

“Person” means any individual, company, joint venture, corporation, partnership, association, joint stock company, limited liability company, trust, estate, unincorporated organization, Governmental Instrumentality or other entity having legal capacity.

 

“Port Indemnified Parties” means (i) Brownsville Navigation District of Cameron County and its Affiliates, successors and assigns and (ii) the respective directors, officers, shareholders and employees of each entity or person specified in clause (i) above. A “Port Indemnified Party” means any one of the Port Indemnified Parties.

 

“Potential Lender” has the meaning set forth in Section 21.22A.

 

“Pre-Existing Hazardous Materials” means Hazardous Materials on the Site that are not brought on to the Site by or on behalf of Contractor or any of its Subcontractors or Sub- subcontractors.

 

“Pre-Existing Owner Proprietary Work Product” has the meaning set forth in Section 10.4.

 

“Primavera Project Planner” has the meaning set forth in Section 5.4A.

 

13

 

 

“Prior EPC Contract” has the meaning set forth in the recitals.

 

“Progress As-Built Drawings and Specifications” means Drawings and Specifications that show all current “as-built” conditions, as required under Attachment B.

 

“Project” means the engineering, design, procurement, manufacturing, fabrication, assembly, transportation and delivery of Equipment, construction, pre-commissioning, Commissioning, testing and start-up of the Train 3 Liquefaction Facility and all other Work required to be performed under this Agreement.

 

“Provisional Sums” means the provisional sums described in Attachment JJ with each provisional being a “Provisional Sum.”

 

“Punchlist” means those finishing items required to complete the Work, the completion of which shall not interrupt, disrupt or interfere with the safe and reliable operation or use of all or any part of the Train 3 Liquefaction Facility as contemplated by this Agreement, as more fully described in Section 11.6 of this Agreement.

 

“[***]”.

 

“Quality Plan” has the meaning set forth in Section 3.18.

 

“Ready for Feed Gas Introduction” or “RFFGI” means, with respect to Train 3, that all of the following have occurred: (i) Contractor has commissioned the systems and subsystems for RFFGI of Equipment for such Train and completed the activities necessary to support the introduction of hydrocarbons, including the utility and process systems, safeguarding and shutdown systems have been pre-commissioned, commissioned and integrity verified, all as set forth in greater detail in Attachment A and Attachment M; (ii) such Train is ready for acceptance of natural gas feed; (iii) Contractor has provided the required documents for FERC approval; and (iv) Contractor has delivered to Owner a RFFGI Certificate in the form of Schedule L-1 and Owner has accepted such certificate by signing such certificate.

 

“RFFGI Certificate” has the meaning set forth in Section 11.1A.

 

“Ready for Start Up” or “RFSU” means, with respect to Train 3, that all of the following have occurred: (i) Contractor has achieved and maintained Ready for Feed Gas Introduction for Train 3; (ii) all activities necessary to support the introduction of hydrocarbons, including all utility and process utility, safeguarding and shutdown systems have been pre-commissioned, commissioned and integrity verified; (iii) Commissioning is complete, cool down can commence for Train 3, and Train 3 is ready for startup and acceptance of feed gas; (iv) Equipment vendor representatives and other specialist Subcontractors required to support RFSU and early operations are mobilized at the Site;

(v) Contractor has delivered to Owner a RFSU Certificate in the form of Schedule L-3 and Owner has accepted such certificate by signing such certificate; and (vi) performance by Contractor of all other obligations required under this Agreement for RFSU of such Train 3.

 

14

 

 

“Receiving Party” has the meaning set forth in Section 19.3.

 

“Record As-Built Drawings and Specifications” means final, record Drawings and Specifications of the Train 3 Liquefaction Facility showing the “as-built” conditions of the completed Train 3 Liquefaction Facility, as required under Attachment B.

 

“Recovery Schedule” has the meaning set forth in Section 5.5.

 

“Regional Strikes” means strikes or similar labor actions by craft construction labor occurring in the entire Gulf coast region in Texas and Louisiana, including the Site.

 

“Rely Upon Information” means that certain information provided by Owner, which is expressly identified in Attachment BB as being Rely Upon Information.

 

“RFSU Certificate” has the meaning set forth in Section 11.1B.

 

“Russian and Ukraine Conflict Event” means the conflict between Russia and Ukraine existing as of the Amended and Restated Execution Date including the expansion, exacerbation and/or continuation thereof that impacts the Work.

 

“Scope of Work” means the description of Work to be performed by Contractor as set forth in this Agreement, including Attachment A.

 

“Second NTP Deadline” has the meaning set forth in Section 5.2D.1.

 

“Site” means those parcels of land where the Train 3 Liquefaction Facility shall be located, as shown in greater detail in Attachment Z. For the avoidance of doubt, the Site does not include any restricted areas designated in Attachment Z.

 

“Soils Data” has the meaning set forth in Section 2.5B.

 

“Specifications” means those documents consisting of the written requirements for Equipment, standards and workmanship for the Work and performance of related services, which are prepared as a part of and during the performance of the Work.

 

“Structural Work” means any and all engineering, procurement or construction of the Train 3 Liquefaction Facility or components thereof relating to the structural capacity, integrity or suitability of any load bearing elements or underlying civil work for any portion of the Train 3 Liquefaction Facility.

 

“Subcontract” means an agreement by Contractor with a Subcontractor for the performance of any portion of the Work.

 

“Subcontractor” means any Person (other than an Affiliate of Contractor), including an Equipment supplier or vendor, who has a direct contract with Contractor to manufacture or supply Equipment which is a portion of the Work, to lease Construction Equipment to Contractor in connection with the Work, to perform a portion of the Work or to otherwise furnish labor or materials.

 

15

 

 

“Subcontractor Proprietary Information” has the meaning set forth in Section 19.3.

 

“Substantial Completion” means that all of the following have occurred with respect to Train 3: (i) RFFGI has been achieved for Train 3; (ii) RFSU has been achieved; (iii) all Minimum Acceptance Criteria have been achieved; (iv) in the case that all Performance Guarantees have not been achieved, Owner has accepted (such acceptance not to be unreasonably withheld) Contractor’s corrective work plan, and Contractor has turned over the Train pursuant to Section 11.5A; (v) Contractor and Owner have agreed upon a list of Punchlist items as set forth in Section 11.6; (vi) any Delay Liquidated Damages due and owing have been paid to Owner in accordance with Section 13.2; (vii) the entire Work related to Train 3 (including training and the delivery of all documentation, manuals and instruction books necessary for safe and proper operation) has been completed, except for Punchlist items, in accordance with the requirements and Specifications of this Agreement; (viii) Contractor has delivered to Owner all Capital Spare Parts for Train 3 in accordance with Section 3.4B; (ix) Contractor has delivered to Owner the applicable Substantial Completion Certificate in the form of Schedule L-5 and as required under Section 11.3 and Owner has accepted such certificate by signing such certificate; (x) Train 3 is available for commercial operation in accordance with the requirements of this Agreement; (xi) Contractor has obtained all Permits required to be obtained by Contractor under this Agreement; and (xii) Contractor has delivered to Owner a fully executed Interim Lien and Claim Waiver in the form of Schedules K-1 and K-2, fully executed Interim Lien and Claim Waivers from all Major Subcontractors in the form of Schedules K-3 and K-4 and, if requested by Owner, fully executed Interim Lien and Claim Waivers from all Major Sub- subcontractors substantially in the form of Schedules K-3 and K-4, covering all Work up to the date of Substantial Completion.

 

“Substantial Completion Certificate” has the meaning set forth in Section 11.3.

 

“Sub-subcontract” means any agreement by a Subcontractor with a Sub-subcontractor or by a Sub-subcontractor with another Sub-subcontractor for the performance of any portion of the Work.

 

“Sub-subcontractor” means any Person (other than an Affiliate of Contractor), including an Equipment supplier or vendor, who has a direct or indirect contract with a Subcontractor or another Sub-subcontractor to manufacture or supply Equipment which comprises a portion of the Work, to perform a portion of the Work or to otherwise furnish labor, materials or equipment (including Equipment).

 

“Taxes” means any and all taxes, assessments, levies, tariffs, duties, fees, charges and withholdings of any kind or nature whatsoever and howsoever described, including sales and use taxes (excluding any Texas Sales and Use Tax on Equipment), value-added, sales, use, gross receipts, license, payroll, federal, state, local or foreign income, environmental, profits, premium, franchise, property, excise, capital stock, import, stamp, transfer, employment, occupation, generation, privilege, utility, regulatory, energy, consumption, lease, filing, recording and activity taxes, levies, fees, charges, imposts and withholding, together with any and all penalties, interest and additions thereto.

 

16

 

 

“Technology Licensor” means any one of the following technology licensors that are licensing its technology to Owner, either directly with Owner or as a Subcontractor, to be incorporated in the Work: APCI, BASF and [***].

 

“Texas Sales and Use Tax” means Texas state and applicable local sales and use taxes.

 

“Third Party” means any Person other than Owner Indemnified Parties and Contractor Indemnified Parties.

 

“Third Party Intellectual Property” has the meaning set forth in Section 10.2.

 

“Total Reimbursement Amount” has the meaning set forth in Section 7.1A.

 

“Train” means, as applicable, Train 1, Train 2 or Train 3.

 

“Train 1” has the meaning set forth in the Trains 1 and 2 EPC Agreement.

 

“Train 2” has the meaning set forth in the Trains 1 and 2 EPC Agreement.

 

“Train 3” has the same meaning as Train 3 Liquefaction Facility.

 

“Train 3 Liquefaction Facility” has the meaning set forth in the recitals.

 

“Trains 1 & 2 NTP” has the meaning set forth in Section 5.2E.

 

“Trains 1 and 2 EPC Agreement” means the engineering, procurement and construction agreement between Owner and Contractor dated May 24, 2019 for the engineering, procurement, construction, commissioning, start-up and testing of Train 1 and Train 2, to be located at the Site specified in such agreement and as further described in such agreement.

 

“Trains 1 and 2 Liquefaction Facility” means the facilities that are engineered, procured and constructed pursuant to the Trains 1 and 2 EPC Agreement, including Train 1 and Train 2, as further described in the Trains 1 and 2 EPC Agreement.

 

“UK Bribery Act” has the meaning set forth in Section 21.10.

 

“Unforeseen Subsurface Conditions” means any unforeseen (i) substantial voids, seismic faults or caverns, (ii) substantial man-made or natural subsurface obstructions, or

(iii) fossils, antiquities or other things of archeological interest, that (a) are not identified in any Soils Data or any other documents provided to Contractor by Owner and (b) were not discovered by Contractor or any of its Subcontractors or Sub-subcontractors, acting in accordance with GECP, from inspections and investigations performed by Contractor or any of its Subcontractors or Sub-subcontractors prior to January 20, 2020.

 

“U.S. Dollars” or “U.S.$” means the legal tender of the United States of America.

 

“U.S. Tariffs and Duties” means the following U.S. import laws, regulations, tariffs, duties and restrictions: Section 232 of the Trade Expansion Act of 1962 (as amended), Section

 

17

 

 

301 of the Trade Act of 1974 (as amended), and Section 201 of the Trade Act of 1974 (as amended).

 

“Warranty” or “Warranties” has the meaning set forth in Section 12.1A.

 

“Weekly Progress Report” has the meaning set forth in Section 3.19A.3.

 

“Windstorms” has the meaning set forth in Section 8.2A.

 

“Work” means all obligations, duties and responsibilities required of Contractor pursuant to this Agreement, including all Equipment, Construction Equipment, spare parts, procurement, engineering, design, fabrication, erection, installation, manufacture, delivery, transportation, storage, construction, workmanship, labor, pre-commissioning, Commissioning, inspection, training, Performance Tests, other tests, start-up and any other services, work or things furnished or used or required to be furnished or used, by Contractor in the performance of this Agreement, including that set forth in Attachment A and Section 3.1A and any Corrective Work.

 

“Work Product” has the meaning set forth in Section 10.1.

 

1.2    Interpretation. The meanings specified in this ARTICLE 1 are applicable to both the singular and plural. As used in this Agreement, the terms “herein,” “herewith,” “hereunder” and “hereof” are references to this Agreement taken as a whole, and the terms “include,” “includes” and “including” mean “including, without limitation,” or variant thereof. Unless expressly stated otherwise, reference in this Agreement to an Article or Section shall be a reference to an Article or Section contained in this Agreement (and not in any Attachments or Schedules to this Agreement) and reference in this Agreement to an Attachment or Schedule shall be a reference to an Attachment or Schedule attached to this Agreement.

 

 

 

ARTICLE 2 

RELATIONSHIP OF OWNER, CONTRACTOR AND SUBCONTRACTORS

 

2.1    Status of Contractor. The relationship of Contractor to Owner shall be that of an independent contractor. Any provisions of this Agreement which may appear to give Owner or the Owner Representative the right to direct or control Contractor as to details of performing the Work, or to exercise any measure of control over the Work, shall be deemed to mean that Contractor shall follow the desires of Owner or the Owner Representative in the results of the Work only and not in the means by which the Work is to be accomplished, and Contractor shall have the complete right, obligation and authoritative control over the Work as to the manner, means or details as to how to perform the Work. Nothing herein shall be interpreted to create a master-servant or principal-agent relationship between Contractor, or any of its Subcontractors or Sub-subcontractors, and Owner. Nevertheless, Contractor shall strictly comply with all provisions, terms and conditions of this Agreement, and the fact that Contractor is an independent contractor does not relieve it from its responsibility to fully, completely, timely and safely perform the Work in strict compliance with this Agreement.

 

 

	 	
			2.2

				
			Key Personnel, Organization Chart and Contractor Representative.

			

 

 

18

 

 

A.    Key Personnel and Organization Chart. Attachment F sets forth Contractor’s organizational chart to be implemented for the Work and also contains a list of key personnel (“Key Personnel” or “Key Persons”) from Contractor’s organization who will be assigned to the Work. Key Personnel shall, unless otherwise expressly stated in Attachment F, be devoted full-time to the Work for the entire duration of the Project, and Key Personnel shall not be removed or reassigned without Owner’s prior approval (such approval not to be unreasonably withheld). [***]. All requests for the substitution of Key Personnel shall include a detailed explanation and reason for the request and the résumés of professional education and experience for a minimum of two (2) candidates with the requisite qualifications and experience. Should Owner approve of the replacement of a Key Person, not to be unreasonably withheld, Contractor shall allow for an overlap of three

(3) weeks during which both the Key Person to be replaced and the Owner-approved new Key Person shall work together full time. The additional cost of any replacement of such Key Personnel and overlap time shall be entirely at Contractor’s expense. Owner has the right, but not the obligation, to require Contractor to remove or cause to be removed Key Persons who are not, in Owner’s reasonable judgment, using GECP in the performance of the portion of the Work assigned to such Key Persons.

 

B.    Contractor Representative. Contractor designates [***] as the Contractor Representative. Notification of a proposed change in Contractor Representative shall be provided in advance, in writing, to Owner. The Contractor Representative is a Key Person.

 

 

2.3    Subcontractors and Sub-subcontractors. Owner acknowledges and agrees that Contractor intends to have portions of the Work accomplished by Subcontractors pursuant to written Subcontracts between Contractor and such Subcontractors and by Contractor’s Affiliates, and that such Subcontractors may have certain portions of the Work performed by Sub- subcontractors. All Subcontractors and Sub-subcontractors shall be reputable, qualified firms with an established record of successful performance in their respective trades performing identical or substantially similar work. Subject to Section 2.4E, Contractor shall use commercially reasonable efforts to require that all contracts with Subcontractors and Sub-subcontractors be consistent with the terms or provisions of this Agreement. EXCEPT AS STATED IN SECTION 20.4, NO SUBCONTRACTOR OR SUB-SUBCONTRACTOR IS INTENDED TO BE OR SHALL BE DEEMED A THIRD-PARTY BENEFICIARY OF THIS AGREEMENT. Contractor shall be fully responsible to Owner for the acts and omissions of Subcontractors and Sub-subcontractors and of its Affiliates performing any Work and of Persons directly or indirectly engaged by any of them, as Contractor is for the acts or omissions of Persons directly or indirectly engaged by Contractor. The work of any Subcontractor or Sub-subcontractor and Contractor’s Affiliates shall be subject to inspection by Owner, Lender, or Independent Engineer to the same extent as the Work of Contractor. All Subcontractors and Sub-subcontractors and Contractor’s Affiliates and their respective personnel performing Work on the Site are to be instructed by Contractor in the terms and requirements of the safety and environmental protection policies and procedures established under Section 3.10 and shall be expected to comply with such policies and procedures with respect to Work performed on the Site. In the event that any personnel do not adhere to such policies and procedures, such personnel shall be removed by Contractor. In no event shall Contractor be entitled to any adjustment of the Contract Price or Key Dates as a result of compliance with such policies and procedures or any removal of personnel necessitated by non-compliance. Nothing contained herein shall (i) create any contractual relationship between any Subcontractor and Owner, or between any Sub-

 

19

 

 

subcontractor and Owner, or between any of Contractor’s Affiliates performing Work and Owner or (ii) obligate Owner to pay or cause the payment of any amounts to any Subcontractor or Sub- subcontractor or any of Contractor’s Affiliates. For purposes of Texas Sales and Use Tax, all Subcontracts and Sub-subcontracts will be separated contracts pursuant to Tex. Tax Code § 151.056(b) and 34 Tex. Admin. Code Rule § 3.291(a)(13).

 

	 	
			2.4

				
			Subcontracts and Sub-subcontracts.

			

 

A.    Approved List. Section 1 and Section 3 of Attachment G set forth the lists of Subcontractors and Sub-subcontractors that Contractor and Owner have agreed are approved Subcontractors and Sub-subcontractors for the performance of that portion of the Work specified in Section 1 and Section 3 of Attachment G. Section 2 of Attachment G sets forth a list of Subcontractors and Sub-subcontractors that Contractor has agreed to subcontract with for that portion of the Work specified in Section 2 of Attachment G. Approval by Owner of any Subcontractors or Sub-subcontractors does not relieve Contractor of any responsibilities under this Agreement.

 

B.    Additional Proposed Major Subcontractors and Major Sub- subcontractors. In the event that Contractor is considering the selection of a Subcontractor or Sub-subcontractor not listed on Attachment G that would qualify as a Major Subcontractor or Major Sub-subcontractor, Contractor shall (i) notify Owner of its proposed Major Subcontractor or Major Sub-subcontractor as soon as practicable during the selection process and furnish to Owner all information reasonably requested by Owner with respect to Contractor’s selection criteria (including information regarding the Major Subcontractor or Major Sub-subcontractor’s qualifications, safety performance and the agreed scope of work but excluding Major Subcontractor’s or Major Sub-subcontractor’s

 

(i) pricing (other than unit rates), discount or credit information, payment terms, payment schedules and retention and (ii) performance security, liquidated damages and limitations on liability), and (ii) notify Owner no less than ten (10) Business Days prior to the execution of a Major Subcontract with a Major Subcontractor or Major Sub-subcontract with a Major Sub-subcontractor not listed on Attachment G. Owner shall have the discretion, not to be unreasonably exercised, to reject any proposed Major Subcontractor or Major Sub-subcontractor not listed on Attachment G for a Major Subcontract or Major Sub-subcontract for failing to meet the standard set out in Section 2.3. Contractor shall not enter into any Major Subcontract with a proposed Major Subcontractor or Major Sub- subcontract with a Major Sub-subcontractor that is rejected by Owner in accordance with the preceding sentence. Owner shall undertake in good faith to review the information provided by Contractor pursuant to this Section 2.4B expeditiously and shall notify Contractor of its decision to accept or reject a proposed Major Subcontractor or Major Sub- subcontractor as soon as practicable after such decision is made. Failure of Owner to respond within ten (10) Days after Owner’s receipt of Contractor’s notice of a proposed Major Subcontractor or Major Sub-subcontractor shall be deemed to be an acceptance of such Major Subcontractor or Major Sub-subcontractor.

 

C.    Other Additional Proposed Subcontractors and Sub-subcontractors. For any Subcontractor or Sub-subcontractor performing Work on the Site and not otherwise covered by Sections 2.4A or 2.4B, Contractor shall, within fourteen (14) Days after

 

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execution of a Subcontract with such Subcontractor or Sub-subcontractor, notify Owner in writing of the selection of such Subcontractor or Sub-subcontractor and inform Owner generally what portion of the Work such Subcontractor or Sub-subcontractor is performing.

 

D.    Delivery of Major Subcontracts and Major Sub-subcontracts. Contractor shall furnish Owner with a redacted copy of all Major Subcontracts and Major Sub- subcontracts (excluding only provisions regarding pricing, discount or credit information, payment terms, payment schedules, retention, performance security, liquidated damages and limitations on liability, except that such exclusions shall not apply to Major Subcontracts or Major Sub-subcontracts with APCI, BHGE and ABB) within ten (10) Days after execution thereof and, within ten (10) Days after Owner’s request, furnish Owner with a price redacted copy of any other Subcontracts or Sub-subcontracts. Notwithstanding the above, Owner’s receipt and review (or non-review) of any Subcontracts or Sub- subcontracts shall not relieve the Contractor of any obligations under this Agreement nor shall such action constitute a waiver of any right or duty afforded Owner under this Agreement or approval of or acquiescence in a breach hereunder.

 

E.    Terms of Major Subcontracts and Major Sub-subcontracts. In addition to the requirements in Section 2.3 and without in any way relieving Contractor of its full responsibility to Owner for the acts and omissions of Subcontractors and Sub- subcontractors, Contractor shall:

 

 

1.    include in each Major Subcontract and each Major Sub-subcontract provisions allowing each Major Subcontract and Major Sub-subcontract to be assigned to Owner, at Owner’s sole discretion, without the consent of the respective Major Subcontractor or Major Sub-subcontractor; provided that with respect to APCI, [***] and BASF, such assignment shall be subject to APCI, [***] and BASF’s consent (as applicable), but such consent shall not be withheld unless the assignee is a competitor of APCI, [***] or BASF (as applicable) for such licensed technology or the assignment would cause a violation of Applicable Law; and

 

 

2.    use reasonable commercial efforts to include in each Major Subcontract and Major Sub-subcontract a provision requiring each such Major Subcontractor and Major Sub-subcontractor to comply with all requirements and obligations of Contractor to Owner under this Agreement, as such requirements and obligations are applicable to the performance of the Work under their respective Major Subcontract or Major Sub-subcontract, provided however, notwithstanding the foregoing, Contractor shall, at a minimum, include in each Major Subcontract and Major Sub-subcontract, to the extent such requirements and obligations are applicable to the performance of the Work under their respective Major Subcontract or Major Sub-subcontract, the following:

 

(i)    for all Major Subcontractors and Major Sub-subcontractors, provisions substantially similar to: ARTICLE 10, ARTICLE 17, and ARTICLE 19; Sections 2.3, 2.5C, 3.3D, 3.13, 3.16, 3.18, 8.1, 9.1 (and

Attachment O), 12.1C, 12.2A, 16.1E, 16.3, the Interim Lien and Claim

 

21

 

 

Waiver requirements in Section 7.2 and the Final Lien and Claim Waiver requirements in Section 7.3; and

 

(ii)    for all Major Subcontractors and Major Sub-subcontractors performing Work at the Site, provisions substantially similar to: Sections 3.6, 3.7, 3.8, 3.10, 3.17, 3.24, 3.25, 3.27 in addition to the requirements and obligations set forth in Section 2.4E.2(i).

 

	 	
			2.5

				
			Contractor Acknowledgements.

			

 

A.    This Agreement. Prior to the execution of this Agreement, Contractor or Contractor’s Affiliate performed engineering, cost estimating and related services and developed and provided, or verified, the information that forms the Scope of Work and Basis of Design in Attachment A, which was performed or verified pursuant to the ITB Agreement. Subject to Section 4.6A, Contractor hereby agrees and acknowledges that the Scope of Work and Basis of Design are accurate, adequate and sufficiently complete for Contractor to engineer, procure, construct, pre-commission, commission, start-up and test a fully operational natural gas liquefaction facility, and associated facilities for the Contract Price and in accordance with all requirements of this Agreement, including Applicable Codes and Standards, Applicable Law, and the Warranties, Minimum Acceptance Criteria and Performance Guarantees. Accordingly, except for Section 4.6A, Contractor hereby (i) agrees that it shall have no right to claim or seek an increase in the Contract Price or an adjustment to the Key Dates with respect to any incomplete, inaccurate or inadequate information or requirements that may be contained or referenced in Attachment A, and (ii) waives and releases Owner from and against such claims. Owner makes no guaranty or warranty, express or implied, as to the accuracy, adequacy or completeness of any such information that is contained or referenced in Attachment A.

 

 

	 	
			B.

				
			Conditions of the Site.

			

 

 

1.    In addition to Section 2.5A, Contractor further agrees and acknowledges that it has made all investigations and inspections that it deems necessary to perform the Work in accordance with this Agreement, has conducted a review of the legal description of the Site, and understands the climate, terrain, topography, subsurface conditions and other difficulties that it may encounter in performing the Work in accordance with this Agreement. Contractor warrants that it has the experience, resources, qualifications and capabilities to perform the Work in accordance with this Agreement. Except as provided in Section 2.5B.2 or for Force Majeure, Contractor, as between Contractor and Owner, assumes all risks related to, and waives any right to claim an adjustment in the Contract Price or the Key Dates as a result of any conditions at the Site or at any other location where the Work is performed, including river levels, topography and subsurface soil conditions. Contractor agrees and acknowledges that: (a) any information provided by Owner to Contractor prior to January 20, 2020 relating to subsurface soil conditions or topographical conditions at the Site (the “Soils Data”) was provided to Contractor for its convenience only; (b) the Soils Data shall not be considered a warranty or guarantee, express or implied, of subsurface conditions or

 

22

 

 

topographical conditions existing at the Site; (c) the Soils Data does not constitute a part of this Agreement; and (d) Owner assumes no responsibility for the accuracy and sufficiency of the data contained within the Soils Data nor for Contractor’s interpretation of such data, including the projection of soil-bearing values; rock profiles; soil stability; or the presence, level and extent of underground water.

 

2.    Contractor, as between Contractor and Owner, assumes all risks related to, and waives any right to claim an adjustment for, any and all subsurface conditions of whatever nature or condition, except as expressly provided in this Section 2.5B.2:

 

(i)    Unforeseen Subsurface Conditions. If Contractor encounters Unforeseen Subsurface Conditions in the performance of the Work that adversely affects Contractor’s actual costs (which costs shall be adequately documented and supported by Contractor) of performance of the Work or ability to perform any material requirement of this Agreement, Contractor shall be entitled to a Change Order adjusting the Contract Price and/or the Key Dates, as applicable, pursuant to Sections 6.2A.5 and 6.8, provided that Contractor complies with the notice and Change Order request requirements set forth in Sections 6.2 and 6.5, uses reasonable efforts not to disturb such Unforeseen Subsurface Conditions prior to Owner’s investigation and, with respect to claims for costs for delay or schedule relief for delay, satisfies the requirements of Section 6.8. Notwithstanding the foregoing, Contractor is responsible for the proper interpretation of the Soils Data, including in accordance with GECP.

 

C.    Applicable Law and Applicable Codes and Standards. Contractor has investigated to its satisfaction Applicable Law and Applicable Codes and Standards and warrants that it can perform the Work at the Contract Price and within the Key Dates in accordance with Applicable Law and Applicable Codes and Standards. Contractor shall perform the Work in accordance with Applicable Law and Applicable Codes and Standards, whether or not such Applicable Law or Applicable Codes and Standards came into effect before May 15, 2022 (with such date extended pursuant to Section 2.6) or during the performance of the Work; provided, however, Contractor shall be entitled to a Change Order for Changes in Law to the extent allowed under Section 6.2A.7. Except for any Changes in Law for which Contractor is entitled to a Change Order under Section 6.2A.7, Contractor hereby waives any right to make any claim for adjustment of the Contract Price or the Key Dates in relation to any change in Applicable Law or Applicable Codes and Standards. Notwithstanding anything provided in this Agreement, the Parties agree that Contractor’s sole and exclusive remedy for any change in tariffs, quotas, or duties is set forth in Attachment FF.

 

D.    Owner’s Consultants. Owner may designate consultants that are not an employee of Owner to provide certain administrative, management, planning and other services as it deems appropriate to assist with Owner’s rights, remedies and obligations under this Agreement. Such consultants or professionals may, to the extent specified in this Agreement between Owner and such consultants or professionals, act for or on behalf

 

23

 

 

of Owner with respect to Owner’s rights, remedies and obligations under this Agreement, which may include receiving and reviewing certain deliverables and submittals from Contractor, inspecting certain portions of the Work and receiving Contractor’s Confidential Information to the extent necessary to perform such services (having first been bound to an obligation of confidentiality in accordance with this Agreement) to the extent Owner is permitted to do the same under this Agreement, as further specified by Owner to Contractor in writing. Under no circumstances shall such consultants or professionals have any authority to amend this Agreement, sign any Change Order or issue any Change Directive. In no event will Owner retain as a consultant on this Project any Person that is a Competitor of Contractor.

 

2.6    Updates for Changes in Applicable Law. On or prior to November 15, 2022, Contractor shall notify Owner in writing of any Changes in Law or Change in COVID-19 Applicable Law that have occurred since May 15, 2022 that adversely affect the Key Dates or Contractor’s actual costs (which costs shall be adequately documented and supported by Contractor) of performance of the Work or ability to perform any material requirement of this Agreement. In the event Contractor so notifies Owner of such Changes in Law or Change in COVID-19 Applicable Law, Contractor shall be entitled to a Change Order for an adjustment to the Contract Price and Key Dates to the extent permitted in Section 6.2A.5 and 6.8, provided that Contractor complies with the requirements in Section 6.5 no later than November 15, 2022. After such Change Order is executed, the May 15, 2022 date in the definitions of Changes in Law and Change in COVID-19 Applicable Law shall thereafter be November 15, 2022. If Contractor has not provided Owner with such notice on or prior to November 15, 2022, the dates referenced in Changes in Law and Change in COVID-19 Applicable Law shall thereafter be November 15, 2022, and Contractor waives all claims for any Changes in Law or Change in COVID-19 Applicable Law that may have occurred after May 15, 2022 and prior to November 15, 2022.

 

 

 

ARTICLE 3 

CONTRACTOR’S RESPONSIBILITIES

 

	 	
			3.1

				
			Scope of Work.

			

 

 

A.    Generally. Subject to Section 3.1B, the Work shall be performed on a fixed price turnkey basis and shall include all engineering, procurement, construction, pre- commissioning, Commissioning, start-up and testing of the Train 3 Liquefaction Facility, all Equipment, Construction Equipment, spare parts, labor, workmanship, inspection, manufacture, fabrication, installation, design, delivery, transportation, storage, training of Owner’s operation personnel and all other items or tasks that are set forth in Attachment A, or otherwise required to achieve RFFGI, RFSU and Substantial Completion and Final Completion in accordance with the requirements of this Agreement, including achieving the Minimum Acceptance Criteria and Performance Guarantees. Contractor shall be required to integrate and use such Owner’s personnel in Contractor’s pre-commissioning, Commissioning, testing and start-up efforts. Contractor shall perform the Work in accordance with GECP, Applicable Law, Applicable Codes and Standards, and all other terms and provisions of this Agreement, with the explicit understanding that the Train 3 Liquefaction Facility will operate as a natural gas liquefaction facility and export terminal meeting all requirements and specifications of this Agreement, including Applicable Codes

 

24

 

 

and Standards, Applicable Law, Warranties, Minimum Acceptance Criteria and Performance Guarantees. It is understood and agreed that the Work shall include any incidental work that can reasonably be inferred as required and necessary to complete the Train 3 Liquefaction Facility in accordance with GECP, Applicable Law, Applicable Codes and Standards, and all other terms and provisions of this Agreement, excluding only those items which Owner has specifically agreed to provide under the terms of this Agreement. Without limiting the generality of the foregoing, the Work is more specifically described in Attachment A.

 

B.    Exception to Scope of Work. Contractor shall not be responsible for providing those items identified in ARTICLE 4 as Owner’s obligations.

 

3.2    Specific Obligations.Without limiting the generality of Section 3.1 or the requirements of any other provision of this Agreement, Contractor shall:

 

A. procure, supply, transport, handle, properly store, assemble, erect and install all Equipment;

 

B.    provide construction, construction management (including the furnishing of all Construction Equipment, and all Site supervision and craft labor), civil/structural, electrical, instrumentation, field design, inspection and quality control services required to ensure that the Work is performed in accordance herewith;

 

C.    negotiate all guarantees, warranties, delivery schedules and performance requirements with all Subcontractors so that all Subcontracts are consistent with this Agreement, as set forth in Sections 2.3 and 2.4;

 

D.    perform shop and other inspections of the work of Subcontractors and Sub- subcontractors to ensure that such work meets all of the requirements of this Agreement;

 

	 	
			E.

				
			pay Subcontractors in accordance with the respective Subcontracts;

			

 

F.    pay all Taxes incurred by Contractor in connection with the Work in a timely fashion, and as between Owner and Contractor, be responsible for all Taxes incurred by any Subcontractor or Sub-subcontractor;

 

	 	
			G.

				
			ensure that the Work is performed in accordance with the Key Dates;

			

 

H.    until Substantial Completion, conduct and manage all pre-commissioning, start-up operations, Commissioning, Performance Tests and other testing of the Train, while directing operation personnel provided by Owner pursuant to Section 4.4;

 

	 	
			I.

				
			obtain all Permits required per Section 3.12;

			

 

J.    provide prompt assistance, information and documentation required or requested by Owner to enable Owner to obtain or modify the Permits listed in Attachment Q, provided that such assistance, information and documentation shall not include Contractor’s provision of information, testimony, documents or data by

 

25

 

 

Contractor’s employees under oath during litigation (unless specifically authorized by Contractor) and activities outside the field of Contractor’s expertise, or the training or experience of personnel assigned to the performance of the Work under this Agreement (except to the extent provided for by Change Order issued pursuant to Section 6.1 and agreed by Contractor);

 

	 	
			K.

				
			provide training for Owner’s operation personnel per Section 3.5;

			

 

	 	
			L.

				
			ensure all Subcontractors perform their Subcontract obligations;

			

 

	 	
			M.

				
			cooperate with and respond promptly to reasonable inquiries from Owner;

			

 

	 	
			N.

				
			obtain and manage all temporary utilities for the performance of the Work;

			

 

O.    manage on behalf of Owner the engineering, procurement, construction and start-up of all permanent utilities provided outside the Site to the Site as specified in Schedule A-1;

 

P.    be responsible for connecting Train 3 to the Trains 1 and 2 Liquefaction Facility;

 

 

Q.    supply all fills of lubricants, refrigerants and chemicals and transformer oils and all consumables necessary to perform the Work through Substantial Completion, excluding Owner’s supply requirements of natural gas feed for Commissioning, start-up, testing and operations as set forth in this Agreement, and as a condition of Substantial Completion, completely re-filling all fills, refrigerants, chemicals and oils for Train 3; and

 

 

R.    perform all design and engineering Work in accordance with this Agreement, including that specified in Section 3.3.

 

	 	
			3.3

				
			Design and Engineering Work.

			

 

A.    General. Contractor shall, as part of the Work, perform, or cause to be performed, all design and engineering Work in accordance with this Agreement and cause the Work to meet and achieve the requirements of this Agreement, including achieving the Minimum Acceptance Criteria and Performance Guarantees.

 

 

B.    Drawings and Specifications. Upon receipt of an LNTP or the NTP issued in accordance with Section 5.2, Contractor shall commence the preparation of the Drawings and Specifications for all Work relating to such LNTP or NTP. The Drawings and Specifications shall conform and comply with the requirements of this Agreement, including the Scope of Work, Basis of Design, GECP, Applicable Codes and Standards, Applicable Law, and all applicable provisions of this Agreement. Contractor shall develop a design document submittal schedule in the form of a master document register for all Work after issuance of NTP and issue it to Owner no later than thirty (30) Days after Owner’s issuance of NTP.

 

	 	
			C.

				
			Review Process.

			

 

 

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1.    Drawing and Specifications Review. During the development of the Drawings and Specifications, Contractor shall provide Owner with the opportunity to perform regular reviews of the design and engineering in progress on a regular basis. Such reviews may be conducted at Contractor’s offices, at any of its Major Subcontractor’s or Major Sub-subcontractor’s offices with Contractor’s presence, or remotely by electronic internet access (except that electronic access of Major Subcontractor and Major Sub-subcontractor work shall be provided only where reasonably available to Contractor). The reviews may be of progress prints, computer images, draft documents, working calculations, draft specifications or reports, Drawings, Specifications or other design documents determined by Owner.

 

2.    Submission by Contractor. Contractor shall submit copies of the Drawings and Specifications to Owner for formal review, comment, approval or disapproval in accordance with Attachment B and the submittal schedule mutually agreed to by the Parties each Month, as applicable. Each submission of Drawings and Specifications shall include a statement that to the best of Contractor’s knowledge such Drawings and Specifications comply with Section 3.3B. In addition, if Contractor makes any changes to any Drawings or Specifications after they have been submitted to Owner (including after Owner has already reviewed, commented, approved or disapproved such Drawings and Specifications), Contractor shall re-submit such Drawings and Specifications to Owner in accordance with this Section.

 

 

3.    Review Periods. Owner shall have up to ten (10) Business Days after its receipt of Drawings and Specifications submitted in accordance with Section 3.3C.2 to issue to Contractor one (1) set of consolidated written comments, proposed changes and/or approvals or disapprovals of the submission of such Drawings and Specifications.

 

 

4.    No Owner Response. If Owner does not issue any comments, proposed changes or approvals or disapprovals within such time periods set forth in Section 3.3C.3, Contractor may proceed with the development of such Drawings and Specifications and any construction relating thereto, but Owner’s lack of comments, approval or disapproval, if applicable, shall in no event constitute an approval of the matters received by Owner.

 

 

5.    Disapproval by Owner. If Owner disapproves of the Drawings or Specifications, Owner shall provide Contractor with a written statement of the reasons for such disapproval within the time period required for Owner’s response for disapproval of Drawings and Specifications set forth in Section 3.3C.3. Contractor shall provide Owner with revised and corrected Drawings and Specifications as soon as possible thereafter and Owner’s rights with respect to issuing comments, proposed changes or approvals or disapprovals of such revised and corrected Drawings or Specifications are governed by the procedures specified above in this Section 3.3C; provided that Contractor shall not be entitled to any extensions of time to the Key Dates, an adjustment to the Contract Price or any adjustment to any other Changed Criteria; provided further, however, to the extent

 

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Owner’s disapproval of the Drawings or Specifications is due to one or more changes required by Owner to any such Drawings or Specifications that have an impact on the Work, and such disapproval is not the result of such Drawings’ or Specifications’ non-compliance with the requirements of this Agreement, Contractor shall be entitled to a Change Order to the extent such Owner-required change adversely affects the Key Dates or the Contract Price and Contractor complies with and meets the requirements of ARTICLE 6.

 

6.    Approval by Owner. Upon Owner’s approval of the Drawings and Specifications, such Drawings and Specifications shall be the Drawings and Specifications that Contractor shall use to construct the Work; provided that Owner’s review or approval of any Drawings and Specifications (or Owner’s lack of comments, proposed changes or approval) shall not in any way be deemed to limit or in any way alter Contractor’s responsibility to perform and complete the Work in accordance with the requirements of this Agreement, and in the event that there is a discrepancy, difference or ambiguity between the terms of this Agreement and any Drawings and Specifications, the interpretation imposing the greater obligation on Contractor shall control. Due to the limited time for Owner’s review of Drawings and Specifications, Contractor’s or its Subcontractors’ or Sub- subcontractors’ expertise in the Work and Owner’s contractual expectation for Contractor to prepare accurate and complete Drawings and Specifications, Contractor recognizes and agrees that Owner is not required or expected to make detailed reviews of Drawings and Specifications, but instead Owner’s review of Drawings and Specifications may be of only a general, cursory nature. Accordingly, any review or approval given by Owner under this Agreement (or Owner’s non-response) with respect to any Drawings or Specifications shall not in any way be, or deemed to be, an approval of any Work, Drawings or Specifications not meeting the requirements of this Agreement, as Contractor has the sole responsibility for performing the Work in accordance with this Agreement.

 

 

D.    Design Licenses. Contractor shall perform, or cause to be performed, all design and engineering Work in accordance with Applicable Law and Applicable Codes and Standards, and all Drawings, Specifications and design and engineering Work shall be signed and stamped by design professionals licensed to the extent required by Applicable Law.

 

 

E.    CAD Drawings. Unless otherwise expressly provided under this Agreement, all Drawings and Record As-Built Drawings prepared by Contractor or its Subcontractors under this Agreement shall be prepared using computer aided design (“CAD”). All CAD drawing files shall be in fully operable and editable Microstation (Version 8) format, unless otherwise specified in Attachment B. Contractor shall use reasonable efforts to also provide Drawings, including Record As-Built Drawings, in other formats requested by Owner.

 

F.    As-Built Drawings and Specifications. During construction, Contractor shall keep a redlined, marked, up-to-date set of Progress As-Built Drawings and Specifications on the Site as required under Attachment B. Contractor shall make redlined

 

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documents available to Owner for inspection upon request during the course of construction. As a condition precedent to Final Completion, Contractor shall deliver to Owner the Record As-Built Drawings and Specifications in accordance with Attachment B, which shall include delivery of final as-built drawing files in fully operable and editable format in CAD.

 

G.    Other Information. Contractor shall deliver copies of all other documents required to be delivered pursuant to Attachment B within and in accordance with the requirements and timing set forth in Attachment B.

 

	 	
			3.4

				
			Spare Parts.

			

 

A.    Commissioning Spare Parts. Contractor shall provide all pre- commissioning, commissioning, testing and start-up spare parts necessary to achieve Substantial Completion and shall, prior to and as a condition precedent to achieving RFSU, deliver such spare parts to the Site. The cost associated with all Work related to such pre- commissioning, commissioning, testing and start-up spare parts is included in the Contract Price, including all Work related to procuring and storing the commissioning spare parts and the purchase price for such parts.

 

B.    Capital Spare Parts. Prior to and as a condition precedent to Substantial Completion, Contractor shall deliver to the Site all the Capital Spare Parts that pertain to Train 3. Such Capital Spare Parts are listed in Attachment W, and the cost associated with all Work related to such Capital Spare Parts is included in the Contract Price, including the cost of procurement of such spare parts and the actual out-of-pocket purchase price of such spare parts. To the extent that Contractor desires to use any Capital Spare Parts, Contractor must obtain Owner’s prior approval, not to be unreasonably withheld, and replace all such spare parts in new and unused condition as a condition of Substantial Completion unless otherwise approved by Owner. Capital Spare Parts shall be treated, as applicable, as Equipment or as a component of the Aggregate Labor and Skills Price.

 

 

C.    Operating Spare Parts. With respect to operating spare parts for use after Substantial Completion (but only to the extent not taken into consideration by the Capital Spare Parts listed in Attachment W), Contractor shall deliver to Owner for Owner’s approval, not to be unreasonably withheld, a detailed priced list of the manufacturer and Contractor-recommended operating spare parts for each applicable item of Equipment necessary for operating such Equipment for two (2) years. The purchase price of each operating spare part shall be provided to Owner for each item of Equipment for which there is manufacturer or Contractor-recommended operating spare parts no later than thirty (30) Days after the execution of the applicable Subcontract for such Equipment, and such purchase prices will be valid for one hundred and eighty (180) Days after Contractor’s execution thereof. Within such one hundred and eighty (180) Days, Owner may respond to Contractor identifying which operating spare parts, if any, that Owner wishes Contractor to procure under each Subcontract. The cost associated with all Work related to the two

(2) years’ operating spare parts is included in the Contract Price, except for the purchase price of such operating spare parts. In the event Owner requests in writing that Contractor procure any operating spare parts on Owner’s behalf, Contractor shall be entitled to a

 

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Change Order in accordance with Section 6.2A.6 to increase the Contract Price for the actual purchase price and delivery costs of such requested operating spare parts, plus costs of transportation, preservation and a profit of [***] percent ([***]%) on such price and costs. To the extent that Contractor desires to use any Operating Spare Parts, Contractor must obtain Owner’s prior approval, not to be unreasonably withheld, and replace all such spare parts as a condition of Substantial Completion in new and unused condition unless otherwise approved by Owner. Operating spare parts shall be treated, as appropriate, as Equipment or as a component of the Aggregate Labor and Skills Price.

 

3.5    Training Program in General. As part of the Work, a reasonable number of competent personnel, who are capable of being trained by Contractor, designated by Owner in its sole discretion (but not to exceed the number of Persons listed in Attachment V) shall be given training designed and administered by Contractor at its expense, which shall be based on the program requirements contained in Attachment A and shall cover at a minimum the following topics: (i) the testing of each item of Equipment; (ii) the start-up, operation and shut-down of each item of Equipment; (iii) the performance of routine, preventative and emergency maintenance for each item of Equipment; and (iv) spare parts to be maintained for each item of Equipment, and their installation and removal. Such training shall include instruction for Owner’s operations personnel in the operation and routine maintenance of each item of Equipment prior to completion of Commissioning of each item of Equipment. As part of the training, Contractor shall provide Owner’s operating personnel with access to the Train 3 Liquefaction Facility during Commissioning, testing and start-up. Training shall be provided by personnel selected by Contractor who, in Contractor’s and the Equipment Subcontractor’s or Sub-subcontractor’s judgment, are qualified to provide such training, and shall take place at such locations and at such times as agreed upon by the Parties. Contractor shall provide trainees with materials described in Attachment A. Contractor shall also provide to Owner all training materials and aids developed to conduct such training in order to facilitate future training by Owner of personnel hired after Substantial Completion. If Contractor determines, using GECP, that a member of the operations personnel provided by Owner who is under the control of Contractor pursuant to Section 3.29 is not competent, or is not adequately participating in the training, or is not sufficiently capable of performing his or her duties in connection with the Train 3 Liquefaction Facility, and such deficiencies are not the fault of Contractor and cannot be cured by Contractor using GECP, the Contractor may require Owner to remove and replace that member of the operations personnel (provided such personnel have not been designated as Owner’s key personnel).

 

 

3.6    Environmental Regulations and Environmental Compliance. No later than thirty (30) Days after the Original Effective Date, Contractor shall submit for Owner’s approval, not to be unreasonably withheld, Project-specific environmental policies and procedures. No later than thirty (30) Days after issuance of NTP, Contractor shall re-submit for Owner’s approval, not to be unreasonably withheld, Project-specific environmental policies and procedures. Such policies and procedures shall be in compliance with requirements of this Agreement, including Applicable Law and the plan and procedures set forth in Attachment J. Without limitation of Section 3.1, Contractor is responsible for performing the Work in compliance with all provisions of this Agreement regarding the environment and Applicable Law and in compliance with the policies and procedures set forth in Attachment J and the Project-specific policies and procedures approved by Owner. Contractor shall maintain all environmental compliance records required by Applicable Law and shall provide, or cause to be provided, necessary training to its employees,

 

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Subcontractors and Sub-subcontractors to ensure their compliance with the environmental rules and requirements of this Agreement. Contractor shall, at its sole cost and expense, dispose of all non-hazardous wastes and Hazardous Materials generated or brought onto the Site by Contractor, any Subcontractor or Sub-subcontractor during performance of the Work at off-Site disposal facilities permitted to receive such wastes and Hazardous Materials. Contractor shall provide copies of all waste and disposal records and reports to Owner. Contractor shall report to Owner, as soon as reasonably possible after having knowledge thereof and in no event later than one (1) Day after such occurrence, any violation of the foregoing. Contractor shall, at its sole cost and expense, remediate the release of any Hazardous Materials generated or brought onto the Site by Contractor, any Subcontractor or Sub-subcontractor or other event in violation of this Section 3.6. Contractor’s obligations under this Section 3.6 shall survive termination of this Agreement.

 

3.7    Contractor’s Tools and Construction Equipment. Contractor shall furnish all Construction Equipment necessary and appropriate for the timely and safe completion of the Work in compliance with this Agreement. Notwithstanding anything to the contrary contained in this Agreement, Contractor shall be responsible for damage to or destruction or loss of, from any cause whatsoever, all Construction Equipment owned, rented or leased by Contractor or its Subcontractors or Sub-subcontractors for use in accomplishing the Work. Contractor shall require all insurance policies (including policies of Contractor and all Subcontractors and Sub- subcontractors) in any way relating to such Construction Equipment to include clauses stating that each underwriter will waive all rights of recovery, under subrogation or otherwise, against the Owner Indemnified Parties.

 

 

	 	
			3.8

				
			Employment of Personnel.

			

 

 

A.    Contractor shall not engage or retain or permit any Subcontractor or Sub- subcontractor to engage or retain, in connection with its performance under this Agreement, anyone who is unsafe, not skilled, or not qualified to perform the work assigned to such Person. Contractor agrees to promptly remove or reassign (or to require any Subcontractor or Sub-subcontractor to remove or reassign) from its services in connection with the Work any Person who does not meet the foregoing requirements, excluding vendors or suppliers who are not performing Work on the Site, laydown areas or modular fabrication yards. In addition, Contractor agrees that within forty-eight (48) hours after receipt of notice from Owner, it shall remove from the Work any employee or agent of Contractor or of Contractor’s Subcontractors or Sub-subcontractors who, in Owner’s reasonable opinion, is unsafe, incompetent, careless, unqualified to perform the Work assigned to such Person, creates an unsafe or hostile work environment, persists in any conduct which is prejudicial to safety, health, or the protection of the environment, disregards the terms and conditions of this Agreement, or is interrupting, interfering with or impeding the timely and proper completion of the Work. NOTWITHSTANDING THE FOREGOING, OWNER SHALL HAVE NO LIABILITY AND CONTRACTOR AGREES TO RELEASE, INDEMNIFY, DEFEND AND HOLD HARMLESS THE OWNER INDEMNIFIED PARTIES FROM AND AGAINST ANY AND ALL CLAIMS, CAUSES OF ACTION, DAMAGES, COSTS, LOSSES AND EXPENSES (INCLUDING ALL REASONABLE ATTORNEYS’ FEES AND LITIGATION OR ARBITRATION EXPENSES) AND LIABILITIES, OF WHATSOEVER KIND OR NATURE, WHICH MAY DIRECTLY OR INDIRECTLY ARISE OR RESULT FROM CONTRACTOR OR ANY SUBCONTRACTOR OR SUB-SUBCONTRACTOR TERMINATING THE EMPLOYMENT OF OR REMOVING FROM THE

 

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Work any such employee or agent who fails to meet the foregoing requirements following a request by Owner to have such employee or agent removed from

THE WORK. Contractor shall replace any such employee or agent at its sole cost and expense.

 

B.    Contractor is responsible for maintaining labor relations in such manner that there is reasonable harmony among the employees of Contractor and its Subcontractors and Sub-subcontractors performing Work at the Site. Contractor and its Subcontractors and Sub-subcontractors performing Work at the Site shall conduct their labor relations in accordance with the recognized prevailing local area practices. Contractor shall inform Owner promptly of any labor dispute, anticipated labor dispute, request or demand by a labor organization, its representatives or members which may reasonably be expected to affect the Work. Contractor further agrees to inform Owner, before any commitments are made, about the negotiations of any agreements or understandings with local or national labor organizations.

 

C.    Contractor and its Subcontractors and Sub-subcontractors and the personnel of any of them shall not bring onto the Site any: (i) firearm of whatsoever nature, knife with a blade exceeding four (4) inches (100 millimeters) in length or other object which in the sole judgment of Owner is determined to be a potential weapon; (ii) alcoholic beverages or intoxicants of any nature; (iii) substance that creates a hazard and not related to the Work; (iv) animal; (v) illegal drugs of any nature; (vi) drugs (whether prescription or non- prescription) which impair physical or mental faculties; or (vii) prescription drugs without a valid prescription.

 

 

D.    In connection with the enforcement of this Section 3.8D, all employees and agents of Contractor and its Subcontractors and Sub-subcontractors shall successfully complete a drug screening test prior to performing Work at the Site, and periodically thereafter in accordance with the requirements of Attachment J. Contractor and its Subcontractors and Sub-subcontractors shall abide by and enforce the requirements of this Section 3.8D, and shall immediately remove from the Work and the Site to the extent permitted by Applicable Law any employee or agent of Contractor, Subcontractor or Sub- subcontractor who has violated the requirements of this Section 3.8D. The provisions of Section 3.8A with regard to liability of any of the Owner Indemnified Parties and Contractor’s release, indemnification, defense and hold harmless obligations shall apply to the removal of any such Person under this Section 3.8D.

 

 

3.9    Clean-up. Contractor shall keep the Site free from all waste materials or rubbish caused by the activities of Contractor or any of its Subcontractors or Sub-subcontractors. As soon as practicable after the completion of all Punchlist items, Contractor shall remove, at its own cost, all Construction Equipment and other items not constituting part of the Train 3 Liquefaction Facility (other than as required by Contractor to fulfil its obligations under Section 12.3A) and remove all waste material and rubbish brought on to or generated by Contractor from the Site and restore the Site in accordance with this Agreement. In the event of Contractor’s failure to comply with any of the foregoing, Owner may accomplish the same; provided, however, that Contractor shall be liable for and pay to Owner (directly, by offset, or by collection on the Letter of Credit, at

 

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Owner’s sole option) all reasonable costs associated with such removal and/or restoration, including costs associated with permitting, transportation and disposal at an authorized location.

 

3.10    Safety and Security. Contractor recognizes and agrees that safety and physical security are of paramount importance in the performance of the Work and that Contractor is responsible for performing the Work in a safe and physically secure manner. No later than thirty

(30) Days after the Original Effective Date, Contractor shall deliver to Owner a safety program for Owner’s approval, not to be unreasonably withheld. No later than thirty (30) Days after issuance of NTP, Contractor shall re-submit to Owner a safety program for Owner’s approval, not to be unreasonably withheld. Once Owner has approved Contractor’s re-submitted safety program, Contractor shall seek approval from Owner of any material changes to such safety program. Contractor’s safety program shall specify the written policies and procedures for maintaining and supervising all environmental, health and safety precautions and programs in connection with the performance of the Work, including appropriate precautions and Work-specific detailed programs for areas in and around the Site and the handling, collecting, removing, transporting or disposing of Hazardous Materials in order to ensure prudent practice on the Site for the safety of all Persons on the Site. Contractor further agrees to perform the Work in accordance with the safety and health rules and standards of Applicable Law (including OSHA) and such safety program, and Contractor shall assume all costs associated with compliance therewith. Contractor’s safety program shall include the standards set forth in Attachment J. Owner’s review and approval of Contractor’s safety program shall not in any way relieve Contractor of its responsibility regarding safety, and Owner, in reviewing and approving such safety program, assumes no liability for such safety program. Contractor shall appoint one or more (as appropriate) safety representative(s) acceptable to Owner who shall be resident at the Site, have responsibility to immediately correct unsafe conditions or unsafe acts associated with the Work and the Train 3 Liquefaction Facility, act on behalf of Contractor on safety and health matters, and participate in periodic safety meetings with Owner after Work has commenced on the Site. Contractor further agrees to provide or cause to be provided necessary training and safety Construction Equipment to its employees, Subcontractors and Sub-subcontractors to ensure their compliance with the foregoing safety and health rules and standards and enforce the use of such training and Construction Equipment. Contractor shall maintain all accident, injury and any other records required by Applicable Law or Contractor’s safety program and shall furnish Owner a Monthly summary of injuries and labor hours lost due to injuries. Should Owner at any time observe Contractor, or any of its Subcontractors or Sub-subcontractors, performing the Work in an unsafe manner, or in a manner that may, if continued, become unsafe, then Owner shall have the right (but not the obligation) to require Contractor to stop the Work until such time as the manner of performing the Work has been rendered safe to the satisfaction of Owner; provided, however, that at no time shall Contractor be entitled to an adjustment of the Contract Price or Key Dates based on such work stoppage. Contractor shall be responsible for the security, fencing, guarding, temporary facilities, lighting, and supervision each as required and described in Attachment A until all of the requirements of Substantial Completion have been satisfied. Nothing in this Section 3.10 shall affect Contractor’s status as an independent contractor. With respect to (i) the Site’s access requirements, restrictions and procedures, (ii) Owner’s safety and security rules and procedures and (iii) other such safety rules and procedures as required by the Site’s landowner or Applicable Law and Regulations, Contractor acknowledges that it has fully investigated and has taken such requirements, rules and procedures into account in planning the Work to be performed in accordance with the Key Dates. Further, regarding Site access and performance of the Work on the Site, Contractor shall comply

 

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with any Site access, safety, security requirements, restrictions, rules and procedures imposed by

(i) the Site’s landowner and (ii) Owner after Substantial Completion. As such, Contractor shall not be entitled to a Change Order to adjust the Contract Price or Key Dates as a result of Contractor’s (including its Subcontractors and Sub-subcontractors) compliance with such access, safety and security requirements, rules and procedures, except to the extent of any material changes made thereto by the Site’s landowner subsequent to the Amended and Restated Execution Date. Contractor (i) is aware of all Applicable Law and safety requirements established by Governmental Instrumentalities (including social distancing and use of protective equipment) and applicable guidelines issued by the Center for Disease Control relating to COVID-19 that were issued prior to or as of May 15, 2022, and (ii) has taken such requirements and guidelines into account in planning the Work and developing the Contract Price, COVID-19 Provisional Sum, and Guaranteed Dates.

 

3.11    Emergencies. In the event of any emergency endangering life or property in any way relating to the Work, the Train 3 Liquefaction Facility or the Site, whether on the Site or otherwise, Contractor shall take such action as may be reasonable and necessary to prevent, avoid or mitigate injury, damage, or loss and shall, as soon as possible, report any such incidents, including Contractor’s response thereto, to Owner. If Contractor fails to take such action and the emergency requires immediate action, then Owner, with or without notice to Contractor may, but shall be under no obligation to, take reasonable action as required to address such emergency. The taking of any such action by Owner, or Owner’s failure to take any action shall not limit Contractor’s liability. Contractor shall reimburse Owner for the performance of any work or furnishing of any equipment or other items in connection with any emergency in an amount equal to the reasonable costs incurred by Owner in such performance of work or furnishing of equipment or other items.

 

 

	 	
			3.12

				
			Approvals, Certificates, Permits and Licenses.

			

 

A.    Contractor shall obtain the Permits listed in Attachment P as well as (i) those Permits for the Project that are required to be maintained in Contractor’s name and (ii) those Permits necessary to perform the Work (“Contractor Permits”), as well as cause its Subcontractors and Sub-subcontractors to obtain those Permits in (i) and (ii).

 

 

B.    Contractor shall provide information, assistance and documentation to Owner as reasonably requested in connection with the Permits to be obtained by Owner in Attachment Q. Without limiting the generality of the foregoing, Contractor acknowledges that Owner is required to provide regular reports and other information to FERC during the design and construction of the Train 3 Liquefaction Facility, and that the Train 3 Liquefaction Facility will be subject to regular inspections by FERC staff, and continuous monitoring by inspectors providing reports to FERC. Contractor shall provide continuing support services relating to the FERC and regulatory processes, including the preparation of all design and engineering documentation necessary to conform and update Owner’s FERC, TCEQ and other filings to the Scope of Work, either prior to or following the issuance of the final FERC Order for the Project. Contractor shall also perform the engineering with respect to the Owner Permits in accordance with Exhibit A, and shall cooperate with FERC staff and inspectors, and take such actions as necessary to facilitate FERC monitoring and inspection programs.

 

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C.    Contractor shall not be entitled to an adjustment to the Contract Price, Key Dates or Changed Criteria to the extent Owner’s failure to obtain a FERC Authorization or another Owner Permit is due to Contractor’s failure to comply with Section 3.12B or to cooperate with Owner or any relevant Governmental Instrumentality.

 

	 	
			3.13

				
			Books, Records and Audits.

			

 

A.    Contractor shall keep full and detailed books, construction and manufacturing logs, records, daily reports, accounts, schedules, payroll records, receipts, statements, electronic files, correspondence and other pertinent documents as may be necessary for proper management under this Agreement, as required under Applicable Law or this Agreement (“Books and Records”). Contractor shall maintain all such Books and Records in accordance with generally accepted accounting principles applicable in the United States and shall retain all such Books and Records for a minimum period of time equal to the greater of: (i) three (3) years after Final Completion, (ii) such period of time as may be required under Applicable Law, or (iii) the time period required for resolution of all third-party claims arising out of or relating to this Agreement, the Work or the Train 3 Liquefaction Facility.

 

B.    Upon reasonable notice, Owner, Lender, and Independent Engineer shall have the right to audit or to appoint an independent public accounting firm to audit Contractor’s Books and Records; provided, however, with respect to an independent public accounting firm, such Lender, Independent Engineer and independent public accounting firm and their representatives shall first execute a confidentiality agreement with Contractor. Contractor’s Books and Records may be audited as necessary to (i) validate all amounts billed under any Change Orders that are not a fixed price, the reimbursable costs incurred with respect to any Provisional Sums, and (ii) review and confirm safety records, provided that if pursuant to Section 7.1B.6, Contractor claims that the contract prices of any of the Subcontracts with Subcontractors listed in Category A or B of Schedule LL-1 have increased by [***] percent ([***]%) or more, Owner shall be entitled to audit as necessary to validate all amounts or quotes under such Subcontracts. When requested by Owner, Contractor shall provide the auditors with reasonable access to all relevant Books and Records, and Contractor’s personnel shall cooperate with the auditors to effectuate the audit or audits hereunder. The auditors shall have the right to copy such Books and Records at Owner’s expense. Contractor shall bear all reasonable costs and expenses incurred by it in assisting Owner with audits performed pursuant to this Section 3.13. Contractor shall include audit provisions identical to this Section 3.13 in all Subcontracts. The restrictions in this Section 3.13B to the audit rights of Owner, Lender or Independent Engineer shall not control over any rights such parties have under Applicable Law, in discovery in any arbitration or litigation arising out of ARTICLE 18 or in any arbitration or litigation against Guarantor or in any litigation between Owner and any Governmental Instrumentality.

 

	 	
			3.14

				
			Tax Accounting.

			

 

A.    Within a reasonable period of time (not to exceed thirty (30) Days) following Contractor’s receipt of Owner’s written request therefor, Contractor shall

 

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provide Owner with any information regarding quantities, descriptions and sales prices of any Equipment installed on or ordered for the Train 3 Liquefaction Facility and any other information, including Books and Records, subject to the extent of the audit rights in Section 3.13, as Owner may deem reasonably necessary in connection with the preparation of its tax returns or other tax documentation in connection with the Project or the determination of Equipment listed in Attachment DD. No access to the aforementioned information (including Books and Records) shall be granted to Owner’s tax consultant until such tax consultant has signed a confidentiality agreement with Contractor in accordance with the standard practice in the auditing industry for audits of this kind.

 

B.    Contractor acknowledges that Owner is pursuing ad valorem tax abatement through the Texas Comptroller of Public Accounts, and upon request, Contractor shall provide to Owner and Owner’s tax consultant access to documentation required or requested by the Texas Comptroller of Public Accounts or any other Governmental Instrumentality in order for Owner to perfect such abatement related to the sales price of Equipment, including Equipment sales price, price of fabrication and design specifications, installation labor costs and overhead and other indirect costs. Documentation shall consist of asset name or Equipment reference number, a description of the asset, and amount charged by Contractor to Owner. Contractor agrees to offer similar assistance to Owner toward any other federal, state or local program that is enacted and would allow for a reduction, rebate, abatement or exemption of (i) Taxes or (ii) Texas Sales and Use Tax on Equipment listed in Attachment DD.

 

 

	 	
			3.15

				
			Temporary Utilities, Roads, Facilities and Storage.

			

 

 

A.    Prior to Substantial Completion and except for those utilities designated to be provided by Owner pursuant to ARTICLE 4, Contractor shall provide and pay for all utilities (e.g., electricity, water, communication, cable, telephone, waste and sewer), including all connections and substations, necessary for the performance of the Work, including installation, Permit and usage costs.

 

 

B.    Contractor shall construct and maintain temporary access and haul roads as may be necessary for the proper performance of this Agreement. Roads constructed on the Site shall be subject to Owner’s approval, not to be unreasonably withheld. Contractor shall provide Owner with sufficient office space at the time of Contractor’s mobilization at the Site to accommodate Owner’s Representative and support staff. Contractor shall provide Owner with all office space, construction trailers, utilities, storage and warehousing, security, telephones, furnishings, and other temporary facilities required for their oversight of the Work, as set forth in more detail in Attachment A.

 

C.    All Equipment and other items or components thereof comprising part of the Work stored at a location other than on the Site shall be segregated from other goods and shall be clearly marked as “Property of Rio Grande LNG, LLC”.

 

3.16    Subordination of Liens. Contractor hereby subordinates any mechanics’ and materialmen’s liens or other claims or encumbrances that may be brought by Contractor against any or all of the Work, the Site, the Trains 1 and 2 Liquefaction Facility or the Train 3 Liquefaction

 

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Facility to any liens granted in favor of Lender, whether such lien in favor of Lender is created, attached or perfected prior to or after any such liens, claims or encumbrances, and shall require its Subcontractors and Sub-subcontractors to similarly subordinate their lien, claim and encumbrance rights. Contractor agrees to comply with reasonable requests of Owner for supporting documentation required by Lender, including any necessary lien subordination agreements, affidavits or other documents that may be required to demonstrate that Owner’s property and the Site are free from liens, claims and encumbrances arising out of the furnishing of Work under this Agreement. Nothing in this Section 3.16 shall be construed as a limitation on or waiver by Contractor of any of its rights under Applicable Law to file a lien or claim or otherwise encumber the Project as security for any undisputed payments owed to it by Owner hereunder that are past due, provided that such lien or claim is subordinate to any liens granted in favor of Lender.

 

3.17    Hazardous Materials. Contractor shall not, nor shall it permit or allow any Subcontractor or Sub-subcontractor to, bring any Hazardous Materials on the Site and shall bear all responsibility and liability for such materials; provided, however, that Contractor may bring onto the Site such Hazardous Materials as are necessary to perform the Work so long as the same is done in compliance with Applicable Law, Applicable Codes and Standards, and the requirements specified in Attachment J, and Contractor shall remain responsible and liable for all such Hazardous Materials. If Contractor or any Subcontractor or Sub-subcontractor encounters Pre-Existing Hazardous Materials at the Site, Contractor and its Subcontractors and Sub- subcontractors shall immediately stop Work in the affected area and notify Owner. Contractor and its Subcontractors and Sub-subcontractors shall not be required to resume Work in connection with such Pre-Existing Hazardous Materials or in any area affected thereby until Owner has: (i) obtained any required permits or other approvals related thereto; and (ii) delivered to Contractor a written notice (x) specifying that any affected area is or has been rendered suitable for the resumption of Work in compliance with Applicable Law or (y) specifying any special conditions under which such Work may be resumed in compliance with Applicable Law. To the extent that any such suspension adversely affects Contractor’s or its Subcontractors’ or Sub-subcontractors’ cost or time for performance of the Work in accordance with the requirements of this Agreement, Contractor shall be entitled to an appropriate Change Order pursuant to Section 6.2A.8. If under such circumstances Contractor or any of its Subcontractors or Sub-subcontractors fail to stop Work and notify Owner, Contractor shall be responsible and liable to Owner in accordance with Section

17.1B for all damages, costs, losses and expenses to the extent relating to such failure, subject to an aggregate cap of [***] U.S. Dollars (U.S.$ [***]) and Owner hereby releases Contractor, its Subcontractors or Sub-subcontractors from any such liability in excess thereof. For the avoidance of doubt, any such liability of Contractor shall not exceed [***] U.S. Dollars (U.S.$ [***]) in the total cumulative aggregate under the Trains 1 and 2 EPC Agreement and this Agreement.

 

3.18    Quality Assurance. No later than thirty (30) Days after the Original Effective Date, Contractor shall submit to Owner for its review and approval, not to be unreasonably withheld, a facility-specific quality control and quality assurance plan and an inspection plan detailing Contractor’s quality plan (“Quality Plan”) and Subcontractor source inspection plan as required by Attachment Y. No later than thirty (30) Days after the Original Effective Date, Contractor shall submit to Owner for its approval, not to be unreasonably withheld, detailed inspection and test plans and supporting construction procedures as required by Attachment Y. No later than thirty (30) Days after issuance of NTP, Contractor shall re-submit to Owner for its review and approval, not to be unreasonably withheld, an updated Quality Plan (including detailed

 

37

 

 

inspection and test plans and supporting construction procedures as required by Attachment Y). Prior to the commencement of the Work, detailed quality assurance and quality control procedures and plans applicable to that portion of the Work shall be issued to Owner in accordance with Attachment Y. Owner’s review and approval of Contractor’s Quality Plan, Subcontractor source inspection plan, detailed construction inspection and test plans and supporting construction procedures, and detailed quality assurance and quality control procedures and plans shall in no way relieve Contractor of its responsibility for performing the Work in compliance with this Agreement. As part of such plans, Contractor agrees that it shall keep a daily record of inspections performed, and Contractor shall make available at the Site for Owner’s and Lender’s (including Independent Engineer) review a copy of all such inspections.

 

	 	
			3.19

				
			Reports and Meetings.

			

 

	 	
			A.

				
			Reports. Contractor shall provide Owner with one (1) hardcopy and one

			

(1)    electronic copy of the following reports and such other information required in this Agreement:

 

 

1.    minutes for all weekly status and Project-related meetings with Owner within five (5) Business Days following such meeting;

 

2.    safety or environmental incident reports within three (3) Business Days following the occurrence of any such incident (including “near miss” incidents where no individual was injured or property was damaged), except for any safety or environmental incident involving a significant non-scheduled event such as LNG or natural gas releases, fires, explosions, mechanical failures, unusual over-pressurizations or major injuries which shall be provided to Owner within eight (8) hours of the occurrence of such incident; provided, however, notification shall be provided to Owner immediately if any safety or environmental incident threatens public or employee safety, causes significant property damage, or interrupts the Work;

 

3.    weekly (or such longer duration as otherwise agreed by Owner in writing) progress reports (“Weekly Progress Reports”), in a form reasonably acceptable to Owner and containing the information required in Attachment X, which shall be provided one (1) Day prior to the weekly progress meeting and shall cover all activities up to the end of the previous week; and

 

4.    Monthly progress reports, in a form reasonably acceptable to Owner and containing the information required in Attachment X (“Monthly Progress Reports”). Contractor shall provide the Monthly Progress Report no later than ten

(10) Days after the end of each Month, and the Monthly Progress Report shall cover activities up through the end of the previous Month. Contractor shall provide Owner with the number of copies of such reports and shall arrange for the distribution thereof as Owner may reasonably request.

 

5.    At Owner’s request, Contractor shall consolidate any or all reports and other documentation required under this Section 3.19 (or other provisions under

 

38

 

 

this Agreement) for Train 3 with the reports required under similar provisions for Train 1 and Train 2 in the Trains 1 and 2 EPC Agreement.

 

	 	
			B.

				
			Meetings.

			

 

1.    A weekly progress meeting with Owner shall occur every week, on a weekday to be agreed to by the Parties, at the Site, or at an alternate site agreeable to the Parties, to discuss the matters described in Attachment X for the prior week. The meetings shall be attended by Contractor and those Contractor employees and Subcontractors reasonably requested by Owner.

 

2.    A Monthly progress meeting shall be held within one (1) week after the issuance of the Monthly Progress Report at the Site, or at an alternate site agreeable to Owner and Contractor, to discuss the matters described in Attachment X for the prior Month and to review the Monthly Progress Report for that Month with Owner. The Monthly progress meeting shall be attended by the Owner Representative, the Contractor Representative and those Contractor employees, Subcontractors and Sub-Subcontractors reasonably requested by Owner. The meetings may be attended by any authorized representative or agent of Lender or the Independent Engineer.

 

 

3.20    Payment. Contractor shall timely make all payments required to be paid to Owner pursuant to the terms of this Agreement.

 

 

3.21    Commercial Activities. Neither Contractor nor its employees shall establish any commercial activity or issue concessions or permits of any kind to third parties for establishing commercial activities on the Site or any other lands owned or controlled by Owner; provided, however, temporary lunch wagons and vending machines may be permitted upon prior approval by Owner, not to be unreasonably withheld.

 

3.22    Title to Materials Found. As between Owner and Contractor, the title to water, soil, rock, gravel, sand, minerals, timber, and any other materials developed or obtained in the excavation or other operations of Contractor, any Subcontractor or Sub-subcontractor and the right to use said materials or dispose of same is hereby expressly reserved by Owner. Contractor may use in the Work mesquite and top soil and fill for leveling, provided that such materials comply with the requirements of this Agreement. Notwithstanding the above, Contractor shall remain liable for, at its sole cost and expense, the disposal of all materials developed or obtained in the excavation or other operations of Contractor, any Subcontractor or Sub-subcontractor (excluding Pre-Existing Hazardous Materials and Unforeseen Subsurface Conditions, if any).

 

3.23    Survey Control Points and Layout. Contractor shall establish all survey control points and layout the entire Work in accordance with the requirements of this Agreement, which shall be based on the survey control points established by Owner pursuant to Section 4.5. Contractor acknowledges that, prior to commencement of the Work, it has independently confirmed with a surveyor, licensed in the state of Texas, the proper placement of such survey control points. If Contractor or any of its Subcontractors, Sub-subcontractors or any of the representatives or employees of any of them move or destroy or render inaccurate the survey

 

39

 

 

control points provided by Owner, such control points shall be replaced by Contractor at Contractor’s own expense.

 

3.24    Cooperation with Others. Subject to the provisions of this Agreement, including Section 4.3, Contractor acknowledges that Owner, its consultants and professionals described in Section 2.5D and other contractors and other subcontractors or other Persons may be working at the Site during the performance of this Agreement. Owner shall, and shall require that such consultants and professionals described in Section 2.5D and other contractors and other subcontractors or other Persons working at the Site (except with respect to Contractor’s work performed under the Trains 1 and 2 EPC Agreement) during the performance of this Agreement prior to Substantial Completion, at all times while on the Site comply with Contractor’s safety program approved by Owner pursuant to Section 3.10 that is applicable to the Site. To minimize interference with the work of any other parties, Contractor and its Subcontractors and Sub- subcontractors shall not, unless permitted by Owner in writing, perform the Work in the restricted work areas set forth in Attachment Z. No later than thirty (30) Days after the Original Effective Date, Contractor shall provide to Owner, for its review and comment, a Site access plan designating the entrances and exits to the Site that will be used during construction and providing Contractor’s proposed Site access policies, all in accordance with the requirements of this Agreement and Attachment J. No later than thirty (30) Days after issuance of NTP, Contractor shall re-submit to Owner, for its review and comment, a Site access plan designating the entrances and exits to the Site that will be used during construction and providing Contractor’s proposed Site access policies, all in accordance with the requirements of this Agreement and Attachment J. In addition, Contractor shall reasonably cooperate and coordinate its Work with Owner’s other contractors performing services on the Site (and Contractor shall fully cooperate and coordinate its Work with its separate work under the Trains 1 and 2 EPC Agreement) and shall not obstruct or restrict Owner’s access to and on the Site. Owner’s Site access shall in no way relieve Contractor from its obligations to carry out the Work in accordance with this Agreement.

 

3.25    Responsibility for Property. Contractor shall plan and conduct its operations so that neither Contractor nor any of its Subcontractors or Sub-subcontractors shall (i) enter upon private lands (other than the Site) or water bodies in their natural state unless authorized by the owners of such lands; (ii) enter any restricted areas set forth in Schedule A-1; (iii) close or obstruct any utility installation, highway, waterway, harbor, road or other property unless and until applicable Permits have been obtained and, to the extent such items are located on the Site, Owner’s permission has been obtained; (iv) disrupt or otherwise interfere with the operation of any portion of any pipeline, telephone, ship or barge operation, dredging activities, activities of the Port Authority Indemnified Parties, conduit or electric transmission line, railroad, ditch, navigational aid, dock or structure unless otherwise specifically authorized by Owner in writing, the appropriate entity or authority, or otherwise provided in Attachment A; (v) damage any property listed in (iii) or (iv); and (vi) damage or destroy maintained, cultivated or planted areas or vegetation such as trees, plants, shrubs, shore protection, paving, or grass adjacent to the Site. The foregoing includes damage arising from performance of the Work through operation of Construction Equipment or stockpiling of materials. Contractor shall be responsible for all damages, costs, losses and expenses arising out of non-compliance with this Section 3.25 (in accordance with the indemnification and defense obligations set forth in Section 17.1I) and shall, as soon as reasonably possible, restore at its own cost and expense such property to the condition it was in before such damage. If damage occurs to Train 1 or Train 2 prior to substantial

 

40

 

 

completion of such applicable Train 1 or Train 2, liability for such damage shall be governed by the Trains 1 and 2 EPC Agreement. Contractor and its Subcontractors and Sub-subcontractors shall coordinate and conduct the performance of the Work so as to not unreasonably interfere with or disrupt the use and peaceful enjoyment of any adjacent property to the Site.

 

3.26    Explosives. Explosives shall not be transported to the Site without Owner’s prior approval. In the event that Contractor receives such approval, explosives shall be transported to the Site only when required to perform the Work under this Agreement and with at least thirty (30) Days’ prior notice to and approval of Owner. Contractor shall be responsible for properly purchasing, transporting, storing, safeguarding, handling and using explosives required to perform the Work under this Agreement. Contractor shall employ competent and qualified personnel for the use of explosives. Residual surplus explosives shall be promptly removed from the Site and properly disposed of by Contractor. Contractor shall strictly comply with Applicable Law and Applicable Codes and Standards in the handling of explosives pursuant to this Agreement (including the U.S. Patriot Act of 2001 and any and all rules and regulations promulgated by the

U.S. Department of Homeland Security and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives), shall perform all obligations and obtain all Permits with respect to explosives, and shall develop and file and provide copies to Owner of all documentation regarding same.

 

	 	
			3.27

				
			No Interference with Trains 1 and 2 Liquefaction Facility.

			

 

 

A.    Contractor understands that upon substantial completion of Train 1 and Train 2 respectively under the Train 1 and Train 2 EPC Agreement, such Train will be under full commercial operation and it is the Parties’ intent that the performance of the Work and Contractor’s other obligations under this Agreement, including with respect to the Work, will not interfere with the commercial operation of Train 1 and Train 2, except to the extent and for the durations specified in Attachment HH. No later than fourteen (14) Days’ prior to the time that Contractor plans to perform such interfering Work, Contractor shall propose a detailed plan setting out how Contractor intends that such interfering Work will be performed to minimize, to the greatest extent reasonably possible, interference with the operation of Train 1 and Train 2 respectively, while at all times complying with the requirements in Attachment HH. Prior to performing such Work, Owner and Contractor shall mutually agree in writing on a final plan for Contractor to execute such Work. Owner may, in its sole discretion, subsequently prohibit such interfering Work from being performed in accordance with the final plans agreed by the Parties, but in such case, Contractor shall be entitled to a Change Order to the extent permitted under Sections

6.2A.1 and 6.8.

 

 

B.    It is the Parties’ intent that, except for the activities listed in Attachment HH, the performance of the Work and Contractor’s other obligations under this Agreement will not interfere with the operation of Train 1 or Train 2 after such Train has achieved substantial completion under the Trains 1 and 2 EPC Agreement. During the performance of the Work, should an unforeseeable situation arise that requires access to or has the potential of interfering with the operation of Train 1 or Train 2, Contractor shall, except in an emergency endangering property or any Persons, give Owner written notice as soon as possible but no later than thirty (30) Days’ prior to the time that Contractor plans to perform such interfering Work, detailing a plan that proposes in detail how Contractor intends that

 

41

 

 

such Work will be performed to minimize, to the greatest extent reasonably possible, interference with the operation of Train 1 and Train 2, as applicable. Such plan proposed by Contractor shall be the least disruptive to operations of Train 1 and Train 2, unless such plan is disproportionately expensive when compared to the impact on the operations of Train 1 and Train 2. Emergency actions are governed by Section 3.11. Prior to performing such Work, Owner and Contractor shall mutually agree in writing on a final plan for Contractor to execute such interfering Work. Owner may, in its sole discretion, subsequently prohibit such interfering Work from being performed in accordance with the final plans agreed by the Parties, but in such case, Contractor shall be entitled to a Change Order to the extent permitted under Sections 6.2A.1 and 6.8.

 

C.    Contractor acknowledges the risks, hazards and constraints relating to performing Work adjacent to, and within the confines of operating facilities, including Train 1 and Train 2 after it has achieved substantial completion under the Train 1 and Train 2 EPC Agreement. This requires significant planning and attention to safe work practices to ensure the safety and reliability of the operating facilities and the safety of the construction and operational personnel. Such detailed planning activities and safe work plans shall be provided to Owner for its approval, not to be unreasonably withheld, within a reasonable period of time prior to performing any Work affecting the operation of the Train 3 Liquefaction Facility.

 

 

3.28    Equipment Not Incorporated into the Train 3 Liquefaction Facility. If, after Substantial Completion and prior to Final Completion, Contractor has any Equipment that it purchased for the Train 3 Liquefaction Facility but did not incorporate into the Train 3 Liquefaction Facility, Owner has the option of either purchasing such Equipment at fair market value, plus applicable sales tax (unless an applicable exemption or direct payment permit exemption certificate is provided to Contractor), and customs and import duties if the item was intended for re-export, or requiring that Contractor haul off such Equipment at Contractor’s own cost and expense (and if required to haul off such Equipment, Owner shall transfer title to such Equipment to Contractor); provided that, if such Equipment was purchased on a basis other than a lump sum basis (such as on a time and material basis under a Change Order), then if Owner elects to take such Equipment, it may take such Equipment at no cost to Owner, and title to such Equipment shall remain with Owner in accordance with Section 8.1B.

 

 

	 	
			3.29

				
			Operation Personnel.

			

 

 

A.    Until Substantial Completion, Owner’s operating personnel shall be under the control of and supervised by Contractor, and Contractor shall (subject to Owner’s indemnification obligations under Section 17.2) be fully responsible for the acts and omissions of such personnel; provided, however, notwithstanding the foregoing, such operating and maintenance personnel shall remain employees or agents of Owner and shall not be considered employees of Contractor for any reason.

 

B.    To the extent not set forth in Attachment A, Contractor shall, no later than [***] ([***]) Days prior to the Guaranteed Substantial Completion Date, prepare for Owner’s review a proposed plan regarding the utilization of Owner’s operation personnel during Commissioning and for the conduct of Performance Tests and any other tests. Each

 

42

 

 

such plan shall be prepared to avoid any impact on the operation of Train 3 after Substantial Completion and to take into account Owner’s operating and maintenance procedures, the number of operating and maintenance personnel available to Owner for participation in pre-commissioning, Commissioning, start-up and Performance Testing, safety issues for Train 3 and the type of activities to be performed. Such plan shall be mutually agreed- upon by the Parties in writing no later than forty-five (45) Days after Owner’s receipt of Contractor’s proposed plan. Nothing in this Agreement, including this Section 3.29 or Section 3.2H, shall be interpreted to create a master-servant or principal-agent relationship between Contractor and any of Owner’s operation or maintenance personnel.

 

3.30    Compliance with Real Property Interests. Contractor shall, in the performance of the Work, comply, and cause all Subcontractors and Sub-subcontractors to comply, with any easement, lease, right-of-way or other property interests that are clearly delineated in Attachment Z and affect or govern the Site or any other real property used for the purposes of completing the Work.

 

 

3.31    Taxes. Subject to Section 7.1, the Contract Price includes all Taxes imposed on or payable by Contractor, its Subcontractors and Sub-subcontractors in connection with the Work. Contractor shall be responsible for the payment of all Taxes imposed on or payable by Contractor, its Subcontractors and Sub-subcontractors in connection with the Work.

 

3.32    Electronic File Sharing Site. Commencing on the Original Effective Date and until the expiration of the Defect Correction Period, Contractor shall create and maintain an electronic file sharing site that can be accessible by Owner, Owner’s Affiliates, Lenders, Independent Engineer and any other Persons designated by Owner, and their respective employees, officers and directors (using their own or their respective company’s computers or electronic devices). Such electronic file share site shall be subject to approval by Owner, not to be unreasonably withheld. Contractor shall upload, in native format, onto such electronic file sharing site all Work Product, reports, schedules, Drawings, Specifications and project specific policies and procedures (other than Invoices or Change Orders) contemporaneously with, or immediately after, such document, data and information was submitted to Owner. Such electronic file sharing site shall not be a substitute for the submission of documents to Owner as required herein, but instead shall serve as an additional service provided to Owner enabling Owner, Owner, Owner’s Affiliates, Lenders, Independent Engineer and any other Persons designated by Owner to have another source of access to such documents, data and information.

 

 

ARTICLE 4

OWNER’S RESPONSIBILITIES

 

Owner shall comply with the following provisions in a timely manner:

 

 

4.1    Payment. Owner shall timely pay the Contract Price in accordance with the provisions of ARTICLE 7 hereof.

 

 

4.2    Permits. Owner shall be responsible for obtaining and maintaining (i) the Permits listed in Attachment Q, (ii) those Permits for the Project that are required to be maintained in Owner’s name and (iii) those Permits required for the operation of the Train 3 Liquefaction

 

43

 

 

Facility. To the extent Owner has not obtained any Permits prior to the Amended and Restated Execution Date, Owner shall obtain such Permits in accordance with the schedule contained in Attachment Q and Owner shall provide Contractor with copies of such Permits within five (5) Business Days after obtaining them.

 

	 	
			4.3

				
			Access on the Site.

			

 

A.    Owner shall provide Contractor with access on the Site to the extent necessary to perform any LNTP Work and, in any event, upon issuance of NTP. Subject to Sections 3.24 and 3.25, such access shall be sufficient to permit Contractor to progress with construction on a continuous basis without material interruption or interference.

 

B.    Contractor understands that Owner may choose to develop the Expanded Facility under one or more separate agreements (the “Expanded Facility Work”). Such other agreements may or may not involve Contractor and may be performed during the course of the completion of the Work covered under this Agreement. If such Expanded Facility Work does not involve Contractor, and as a result of such concurrent activities, impacts the performance of the Work on the Site, then Contractor shall be entitled to a Change Order to the extent such Expanded Facility Work adversely affects the Key Dates or Contractor’s costs of performance of the Work to the extent permitted in Section 6.2A.1 and 6.8, provided that Contractor complies with the notice and Change Order request requirements set forth in Sections 6.2 and 6.5.

 

 

4.4    Operation Personnel. Owner shall retain sixty (60) competent operating personnel (who are capable of being trained by Contractor) to assist Contractor with the commissioning and start-up of the Train 3 Liquefaction Facility under the supervision of Contractor during commissioning as set forth in Attachment M and to operate the Train 3 Liquefaction Facility prior to Substantial Completion under the supervision of Contractor as set forth in Attachment A and Attachment V (Owner’s “operation personnel”). Until Substantial Completion, such personnel shall be under the control of and supervised by Contractor in accordance with Section 3.29, subject to Owner’s indemnity obligations in Section 17.2.

 

 

4.5    Legal Description and Survey. Owner shall provide to Contractor for Contractor’s information a survey of the Site showing the boundaries of the Site and three (3) survey control points, the proper placement of which Contractor has confirmed as set forth in Section 3.23.

 

 

	 	
			4.6

				
			Owner-Furnished Items.

			

 

A.    Rely Upon Information. Owner shall be responsible for the Rely Upon Information identified in Attachment BB. Should Contractor discover an error, omission or inaccuracies in such information, Contractor shall be entitled to a Change Order to the extent permitted under Sections 6.2A.9 and 6.8.

 

B.    Owner-Furnished Items. Owner shall, at no cost to Contractor, provide the items listed in Attachment V (“Owner-Furnished Items”) within the times and at the locations set forth therein, subject to the conditions specified therein.

 

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C.    Natural Gas Feed to Achieve Substantial Completion. As between Owner and Contractor under this Agreement and subject to Section 4.6D, Owner shall procure and make natural gas feed available for the Commissioning, start-up, cool down and testing of Train 3 (including natural gas utilized in the initial cool-down) subject to the conditions in Attachment V. The natural gas feed to Train 3 will meet the pressure, temperature and quality requirements set forth in Schedule A-2. Such natural gas feed shall be made available by (or on behalf of) Owner at the inlet facilities to be constructed by Contractor as part of the Work. As between Owner and Contractor under this Agreement, Owner shall procure, at its sole cost, natural gas feed in order for Contractor to achieve Substantial Completion. Contractor shall use GECP to minimize the amount of natural gas flaring or venting (and at all times complying with any restrictions required under Applicable Law) that is necessary to achieve Substantial Completion, and the start-up, Commissioning and testing procedures agreed upon by the Parties shall be developed and administered in a manner to minimize natural gas flaring and venting.

 

	 	
			D.

				
			Feed Gas Delivery.

			

 

1.    In connection with Train 3, Contractor shall give its best estimate of when natural gas feed is required to produce the LNG necessary to achieve RFSU of Train 3. Such notice shall include the quantities of feed gas needed, including a range of Days and range of flows for each Day.

 

 

2.    For all other circumstances that Contractor may require natural gas feed up to the achievement of Substantial Completion, Contractor shall provide Owner:

 

 

(i)    written notice at least sixty (60) Days prior to Contractor needing its first deliveries of natural gas feed including a range of Days and a range of flows for each Day which Contractor, using GECP, believes it will need for delivery of natural gas feed; and

 

 

(ii)    a second written notice at least thirty (30) Days prior to Contractor needing its first deliveries of natural gas feed, with an updated forecast of the Days and amounts of natural gas feed deliveries (within the ranges provided by Contractor in its initial notice delivered pursuant to Section 4.6D(i)).

 

 

3. Provided Contractor provides notice in accordance with Section

4.6D.1 and 4.6D.2, Owner will procure such natural gas feed subject to the conditions in Attachment V; provided, however, notwithstanding anything to the contrary in this Agreement, Owner is not obligated to provide any natural gas feed for Train 3 prior to the date set forth in Attachment V.

 

E.    Electrical Power. Owner shall procure and make permanent electric power available for the operation of Train 3 in accordance with Attachment V. Such electric power shall be made available by (or on behalf of) Owner at the Pompano switch yard to be located at the Site.

 

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4.7    Owner Representative. Owner designates [***] as the Owner Representative. Notification of a change in Owner Representative shall be provided in advance, in writing, to Contractor.

 

	 	
			4.8

				
			Texas Sales and Use Tax.

			

 

	 	
			A.

				
			Sales and Use Taxes Exemption Certificates on Equipment.

			

 

1.    For Texas Sales and Use Tax, this Agreement shall be considered to be a separated contract for the construction of new non-residential real property as defined under Applicable Law, including 34 Tex. Admin Code Rule § 3.291(a)(13). Contractor shall ensure that all Subcontracts are separated for Sales and Use Tax purposes.

 

2.    The associated portion of the Contract Price attributable to each piece of Equipment is located in Attachment DD, which has been prepared to satisfy the requirements of Applicable Law of Texas for a separated contract. Contractor shall, with respect to any Change Order entered into between Owner and Contractor that results in an update to Attachment DD, provide such update to Owner for its review as part of the documentation required in ARTICLE 6.

 

 

3.    Prior to issuance of NTP or any LNTP directing Contractor to procure any Equipment, and to the extent not already included in Attachment DD, Owner shall issue a Texas direct pay exemption certificate to Contractor, and Contractor shall not invoice Owner for any Texas Sales and Use Tax on Equipment. Pursuant to direct pay permit status, Owner shall pay applicable Texas Sales and Use Tax on Equipment directly to the State of Texas. Contractor shall provide the documents and information necessary to allow the Owner to properly determine this tax liability. Contractor shall maintain for Owner’s review copies of exemption certificates and other similar documentation necessary to support all Texas Sales and Use Tax exemptions that may be available to Owner, Contractor or any Subcontractor or Sub-subcontractor in connection with the Work.

 

 

4.    Contractor shall reasonably cooperate with Owner to minimize any and all Texas Sales and Use Tax relating to the Project. If Contractor or any Subcontractor or Sub-subcontractor incurs any Texas Sales and Use Tax on any items of Equipment listed in Attachment DD for which Owner provided Contractor with a valid direct pay exemption certificate, Contractor shall be responsible for the payment of such Texas Sales and Use Tax without reimbursement by Owner and Contractor shall indemnify, defend and hold harmless any and all Owner Indemnified Parties from and against any claims by a Governmental Instrumentality for such Texas Sales and Use Tax.

 

B.    Additional Contractor Texas Sales and Use Tax Responsibilities. For Texas Sales and Use Tax purposes, Contractor shall be considered a retailer of all Equipment incorporated into the Work. Contractor shall issue a valid Texas Sales and Use Tax resale exemption certificate for such Equipment to its Subcontractors, and

 

46

 

 

Contractor shall not pay, consistent with such exemption certificate, any sales and use tax on such Equipment to Subcontractors. Notwithstanding the foregoing, Contractor shall remain responsible for the payment of all Taxes on account of the Work, including Texas Sales and Use Tax on any purchase, lease or rental of construction equipment and on any other purchases related to Work other than the Equipment.

 

C.    Taxes on Delivered Property. Owner shall be responsible for all property tax on Equipment that has been delivered to the Site and laydown areas.

 

4.9    Hazardous Materials. If Pre-Existing Hazardous Materials are discovered at the Site, Owner shall, at the sole cost, expense and liability of Owner (except for those costs, damages, losses and expenses for which Contractor is responsible and/or liable under Section 3.17), remediate, remove, transport, and dispose of such Pre-Existing Hazardous Materials.

 

4.10    LNG Tanker Release. Owner shall endeavor to obtain a release of Contractor Indemnified Parties and Owner Indemnified Parties from the owner of any LNG Tanker and related LNG cargo from any and all damages, losses, costs and expenses arising out of or resulting from claims for damage to or destruction of an LNG Tanker and loss of the related LNG cargo or personal injury or death of any employee, officer or director employed by the company operating, owning or leasing such LNG Tanker or owning the related LNG cargo in connection with the delivery of LNG of any LNG Tanker to the Project where such damage, destruction, loss, injury or death occurs prior to Substantial Completion. Owner shall endeavor to obtain a release which shall apply regardless of the cause of such damage, destruction, injury or death, including the sole or joint negligence, breach of contract or other basis of liability of any member of the Contractor Indemnified Parties and any member of the Owner Indemnified Parties.

 

 

 

ARTICLE 5

COMMENCEMENT OF WORK, KEY DATES, AND SCHEDULING OBLIGATIONS

 

5.1    Commencement of Work. Upon Contractor’s receipt from Owner of an LNTP or NTP, Contractor shall immediately commence with the performance of the Work specified in such LNTP or NTP.

 

	 	
			5.2

				
			Limited Notice to Proceed/Notice to Proceed.

			

 

A.    At any time prior to the date of issuance of NTP, Owner may issue one or more LNTPs using the form attached hereto as Schedule H-1, which shall authorize and require Contractor to commence performance of a specified portion of the Work (provided that the Parties must mutually agree to any LNTPs that require procurement of Equipment or construction Work). All Work performed under such LNTP shall be performed in accordance with the terms and conditions of this Agreement. An LNTP shall specify the maximum total cost of such specified Work, and Contractor shall be paid for such specified Work pursuant to the terms and conditions of this Agreement, with the payments under such LNTP credited against the Contract Price.

 

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B.    With respect to any LNTP that is issued by Owner, Owner shall not be liable for any cancellation payments under an LNTP if Owner does not issue NTP, unless Owner issued an LNTP that included the ordering of Equipment and such cancellation charges are specifically agreed upon in such LNTP.

 

C.    Notice to Proceed. Unless otherwise specifically set forth in an LNTP, Contractor shall not commence performance of the Work until Owner issues NTP authorizing the same pursuant to the terms and conditions of this Agreement. Upon Contractor’s receipt from Owner of NTP, Contractor shall immediately commence with the performance of the Work. NTP shall be issued in the form attached hereto as Schedule H-2. Owner shall not issue NTP until the following conditions precedent have been fulfilled or waived by Contractor:

 

1.    Owner has furnished Contractor with documentation demonstrating Owner has sufficient funds to fulfill its payment obligations under this Agreement as payments become due hereunder, or Owner has obtained firm commitments from Lenders that are sufficient (when taken together with Owner’s funds and the amount of equity that has been committed to Owner) to fulfill such payment obligations under this Agreement, including (a) satisfaction, or waiver by Lenders, of all applicable conditions precedent to the occurrence of the closing date of the financing, which shall be prior to or contemporaneous with the issuance of the NTP, and (b) a signed declaration by an officer of Owner certifying that the credit agreement with respect to such financing has been executed by Owner and Lenders, to be delivered prior to or contemporaneously with NTP;

 

 

2.    Owner has provided, or is able to provide, Contractor with access on the Site in accordance with Section 4.3;

 

 

3.    Owner has obtained all Owner Permits which are shown in Attachment Q as required to be obtained prior to the issuance of the NTP;

 

 

4.    Owner has made payment to Contractor of all undisputed amounts due and owing as of the date of NTP that were invoiced in connection with Contractor’s performance of the LNTP Work;

 

 

5.    Owner has issued NTP (as defined therein) under the Trains 1 and 2 EPC Agreement; and

 

6.    If Owner fails to issue NTP on or before the Second NTP Deadline, the Parties have agreed to the adjustments to the Contract Price and Guaranteed Substantial Completion Dates as provided in Section 5.2D.2, and shall execute the applicable Change Order.

 

No later than one (1) Day after NTP, the Parties shall execute the Change Orders set forth in Schedule A-3.

 

48

 

 

D.    Delay in NTP. In the event Owner fails to issue NTP in accordance with Section 5.2C on or before December 15, 2022 (the “Initial NTP Deadline”), then Contractor shall be entitled to a Change Order as set forth in this Section 5.2D.

 

1.    If Owner issues NTP after the Initial NTP Deadline but on or before March 15, 2023 (the “Second NTP Deadline”), then the Parties shall enter into a Change Order adjusting the Contract Price, (including the pricing of any Additional Work Options elected by Owner), as applicable, which may be an increase or decrease in the Contract Price based on changes in market conditions agreed to by the Parties, provided that Contractor shall not be entitled to an adjustment to the Contract Price for any (i) changes in design, quantities or Equipment (unless Owner directs such changes in design, quantities or Equipment through a Change Order) or (ii) errors or omissions of Contractor (other than errors or omissions in Contractor’s assumptions related to a change in market conditions during such timeframe). Schedule C-5 sets forth a projection of a change in the Contract Price based on monthly escalation amounts, which are an estimate only (with such estimated escalation applied on the first Day of the applicable Monthly period and not interpolated within such period with prior or subsequent escalation amounts). Adjustment to the Contract Price under this Section 5.2D.1 shall be Contractor’s sole and exclusive remedy for Owner’s delay in issuing NTP after the Initial NTP Deadline but prior to the Second NTP Deadline. For the avoidance of doubt, Owner’s delay in issuing NTP as described in this Section 5.2D.1 shall not under any circumstances result in a Change Order adjusting the Guaranteed Substantial Completion Dates.

 

 

2.    If Owner desires to issue NTP after the Second NTP Deadline, Contractor shall, at Owner’s request, provide its revised proposal for the Work, including revised Contract Price and/or Guaranteed Substantial Completion Date and/or amendments to the Agreement. If Owner agrees to such proposal, all elements of the agreed changes shall be set forth in a Change Order and/or amendment (as applicable), provided that Contractor shall not be entitled to an adjustment to the Contract Price or to an adjustment to the Guaranteed Substantial Completion Date for any (i) changes in design, quantities or Equipment (unless Owner directs such changes in design, quantities or Equipment through a Change Order) or (ii) errors or omissions of Contractor (other than errors or omissions in Contractor’s assumptions related to a change in market conditions occurring after the end of the Second NTP Deadline). Such adjustment to the Contract Price and Guaranteed Substantial Completion Date and amendment (as applicable) shall be Contractor’s sole and exclusive remedy for Owner’s delay in issuing NTP after the Second NTP Deadline (except as set forth in Section 5.2D.3).

 

3.    If Owner fails to issue NTP on or before July 31, 2024 (the “Final NTP Deadline”), Contractor may terminate this Agreement without liability to Owner, provided that Contractor issues written notice to Owner within seven (7) Days after the Final NTP Deadline stating its intent to terminate this Agreement and Owner has not, within thirty (30) Days after receipt of such notice, issued NTP in accordance with Section 5.2C. Notwithstanding the foregoing, Contractor may

 

49

 

 

not terminate this Agreement if Contractor is performing Work under an LNTP. In the event of such termination under this Section 5.2D.3, Contractor shall have the rights (and Owner shall make the payments) provided for in Section 16.2 in the event of an Owner termination for convenience.

 

E.    Delay in Trains 1 and 2 NTP. The Contract Price is dependent upon Owner issuing the full notice to proceed for Train 1 and Train 2 under the Trains 1 and 2 EPC Agreement (“Trains 1 & 2 NTP”) on the same day that Owner issues NTP. In the event Owner fails to issue the Trains 1 & 2 NTP on the same day that Owner issues NTP, then Contractor shall be entitled to a Change Order increasing the Contract Price and the Guaranteed Substantial Completion Date as set forth in this Section 5.2E. Contractor shall, at Owner’s request, provide its revised proposal for its increase to the Contract Price and/or Guaranteed Substantial Completion Date. If Owner agrees to such proposal, all elements of the agreed changes shall be set forth in a Change Order and amendment (as applicable), provided that Contractor shall not be entitled to an adjustment to the Contract Price or to an adjustment to the Guaranteed Substantial Completion Date for any (i) changes in design, quantities or Equipment (unless Owner directs such changes in design, quantities or Equipment through a Change Order) or (ii) errors or omissions of Contractor (other than errors or omissions in Contractor’s assumptions related to a change in market conditions). Such adjustment to the Contract Price and amendment (as applicable) and Guaranteed Substantial Completion Date shall be Contractor’s sole and exclusive remedy for Owner’s delay in issuing the Trains 1 & 2 NTP after its issuance of NTP.

 

 

F.    Contractor shall not be entitled to any increase in the Contract Price or any adjustment to the Guaranteed Substantial Completion Date as a result of Owner issuing NTP on any date prior to the Initial NTP Deadline, and Contractor shall not be entitled to any adjustment to the Guaranteed Substantial Completion Date as a result of Owner issuing NTP on any date after the Initial NTP Deadline but prior to the Second NTP Deadline.

 

 

5.3    Key Dates. The Key Dates may only be adjusted by Change Order as provided under this Agreement.

 

 

A.    Guaranteed Substantial Completion Date. Contractor shall achieve Substantial Completion no later than the Guaranteed Substantial Completion Date. The “Guaranteed Substantial Completion Date” is [***] ([***]) Days after issuance of NTP. The Guaranteed Substantial Completion Date shall only be adjusted as provided under this Agreement.

 

B.    Final Completion Date. Contractor shall achieve Final Completion no later than [***] ([***]) Days after achieving Substantial Completion (“Final Completion Date”). The Final Completion Date shall only be adjusted by Change Order as provided under this Agreement.

 

	 	
			5.4

				
			CPM Schedule.

			

 

 

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A.    CPM Schedule. No later than sixty (60) Days after the Amended and Restated Execution Date, Contractor shall prepare and submit to Owner for Owner’s

 

review and approval, not to be unreasonably withheld: (i) a detailed level 3 resource/man- hour loaded critical path method schedule for the Work using the latest version of Primavera Project Planner (“Primavera Project Planner”) and meeting all requirements of this Section 5.4A (such schedule, once approved by Owner, is hereinafter referred to as the “CPM Schedule”) and (ii) a detailed resource plan generated by the CPM Schedule and developed in accordance with Attachment B and Attachment X. Such submission to Owner of the CPM Schedule shall be in hard copy and native electronic format. The CPM Schedule shall be consistent with the Key Dates and shall represent Contractor’s best judgment as to how it shall complete the Work in compliance with the Guaranteed Dates. The CPM Schedule shall, at a minimum, be detailed at a level 3 (with each activity containing Work for on discipline or craft having a maximum duration of twenty (20) Days, except in limited circumstances when, due to the nature of the activity, a longer duration is necessary (as agreed by the Parties)) for all activities for the Train 3 Liquefaction Facility (including engineering, procurement, prefabrication or pre-assembly prior to erection, delivery of equipment, construction, required Owner or government agency inspections, procurement of Contractor permits, construction, pre-commissioning, Commissioning, testing and startup) and shall comply with GECP. Without limitation of the foregoing, the CPM Schedule shall: (i) show the duration, early/late start dates, early/late finish dates and available total float value for each activity, show a unique activity number, activity description, actual start/finish dates, remaining duration, physical percent complete and reflect logical relationships between activities, show an uninterrupted critical path from NTP through each of the Key Dates including Substantial Completion and Final Completion; (ii) be tagged by activity codes to allow sorting and filtering by responsible Contractor, Subcontractor, Sub-subcontractor, Owner activities, discipline, craft, major work area, engineering, procurement, construction and commissioning (iii) the Work Breakdown Structure identifier shall be included for each activity, and (iv) be man-hour loaded to reflect the projected manpower to be used per activity (whether provided by Contractor or any Subcontractor or Sub-subcontractor), showing the number of personnel, and a general description of the Work being performed. Contractor shall submit with the CPM Schedule the following: (a) progress “S” curve, showing the baseline plan, actual and forecast progress by Month for total progress of the Work, which shall be based on the CPM Schedule; (b) engineering discipline and overall engineering and construction area and overall manpower histograms showing forecast manpower required by Month, for scheduled completion of the Work; (c) Drawing log showing the Drawing number, title, planned, actual and forecast released for construction dates by discipline and reporting period; and (d) cost reporting as set forth in Attachment X. Contractor shall use the CPM Schedule in planning, organizing, directing, coordinating, performing and executing the Work, and the CPM Schedule shall be the basis for evaluating progress of the Work. The CPM Schedule shall reflect the critical path to Substantial Completion.

 

B.    Owner Review of the CPM Schedule. Owner may review the CPM Schedule for general conformance with this Agreement, and issue written comments and proposed changes of such CPM Schedule. If Owner reasonably determines that the CPM Schedule does not conform to this Agreement Contractor shall promptly revise and resubmit the CPM Schedule to Owner. Once the CPM Schedule and the required submittals have been approved by Owner, this version of the CPM Schedule shall be the baseline CPM Schedule for the Work. Owner’s review or acceptance of the CPM Schedule

 

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shall not relieve Contractor of any obligations for the performance of the Work, change any Key Date, nor shall it be construed to establish the reasonableness of the CPM Schedule.

 

C.    Monthly Updates to CPM Schedule. After acceptance by Owner of the CPM Schedule, Contractor shall manage and update the CPM Schedule no less frequently than once per Month with Primavera Project Planner, using the critical path method, to reflect the actual progress to date (“Monthly Updated CPM Schedule”); provided, however, Contractor may not modify any Key Date without a Change Order executed pursuant to this Agreement, nor shall Contractor change any dates that relate to Owner’s obligations without obtaining Owner’s written consent. The Monthly Updated CPM Schedule shall be in the same detail and form and meet all of the other requirements specified for the CPM Schedule and shall be submitted by Contractor to Owner in native electronic format and hard copy with each Invoice. Contractor shall provide all supporting data reasonably necessary to validate the progress shown in each schedule update including: (a) percent complete curves for the total project, (b) engineering and design, (c) procurement, (d) construction, and (e) start-up and Commissioning. Contractor shall also provide key commodity installation data including: (f) budgeted quantity, (g) current estimated quantity, (h) quantity installed by period, (i) overall quantity installed and forecast to complete to validate claimed overall project completion status. Contractor shall promptly correct any material errors or inconsistencies in the updates to the CPM Schedule identified to Contractor by Owner and resubmit a corrected Monthly Updated CPM Schedule for Owner’s review.

 

D.    Other Reporting. Without limitation to Contractor’s other reporting requirements under this Agreement, Contractor shall provide to Owner the following reports on a weekly or Monthly basis, as required and described in greater detail in Attachment X: (i) Gantt charts organized by work breakdown or activity codes, (ii) engineering deliverable logs showing budgeted quantities, achieved quantities and forecast quantities by date, (iii) major Equipment logs showing bid, purchase order, inspection points and delivery dates, (iv) construction installation logs showing budget quantities, achieved quantities and forecast quantities for key commodities, (v) manpower curves for engineering showing discipline budget quantities, achieved quantities and forecast quantities, (vi) manpower curves for construction showing craft planned manpower, actual manpower, and forecast manpower, (vii) Invoice and payment log showing Invoice numbers, dates, and amounts and payment receipt dates, and (viii) Change Order logs showing tracking numbers, descriptions, amounts, submittal dates and status (pending, approved or rejected).

 

E.    Form of Submittals. All submittals by Contractor to Owner of the CPM Schedule, Recovery Schedule, Acceleration Schedule and any Monthly Updated CPM Schedule shall be in both hard copy and native electronic Primavera Project Planner format. One (1) hard copies of each submittal shall be provided to Owner and one (1) electronic copy shall be provided to Owner in a mutually agreeable form.

 

5.5    Recovery and Recovery Schedule. If, at any time during the prosecution of the Work, should (i) the Monthly Updated CPM Schedule shows (or if Contractor has not provided

 

52

 

 

the Monthly Updated CPM Schedule and Owner reasonably determines) that any activity on the critical path of the Monthly Updated CPM Schedule is delayed such that achievement of a Key Date (including a Guaranteed Date) is forecasted to occur thirty (30) or more Days after the applicable Key Date, or (ii) Contractor fails to achieve a Key Date within thirty (30) Days after the applicable Key Date, then Owner may, in addition to any other remedies that it may have under this Agreement, require that, as soon as reasonably possible, Contractor prepare a schedule to explain and display how it intends to regain compliance with the CPM Schedule to the extent required to achieve Substantial Completion prior to the Guaranteed Substantial Completion Date (“Recovery Schedule”). Contractor shall do the following after written notification by Owner of the requirement for a Recovery Schedule:

 

A.    Within ten (10) Business Days after such notice, Contractor shall prepare the Recovery Schedule and submit it to Owner for its review and approval, not to be unreasonably withheld. Contractor shall prepare the Recovery Schedule even if Contractor disputes Owner’s determination of the need for a Recovery Schedule. The Recovery Schedule shall represent Contractor’s best judgment as to how it shall regain compliance with the CPM Schedule to the extent required to achieve Substantial Completion prior to the Guaranteed Substantial Completion Date. The Recovery Schedule shall (i) be prepared in accordance with GECP, (ii) have a similar level of detail as the CPM Schedule, and (iii) meet the requirements specified for the CPM Schedule.

 

 

B.    Within ten (10) Business Days after Owner’s receipt of such Recovery Schedule, Contractor shall participate in a conference with Owner, and with any other Person, including Subcontractors and Sub-subcontractors, whom the Parties mutually agree to participate, to review and evaluate the Recovery Schedule. Any revisions necessary as a result of this review shall be resubmitted for review by Owner within three

(3) Days following the conference. The revised Recovery Schedule shall then be used by Contractor in planning, organizing, directing, coordinating, performing, and executing the Work (including all activities of Subcontractors and Sub-subcontractors) for the duration specified in Section 5.5A, to regain compliance with the CPM Schedule to the extent required to achieve Substantial Completion prior to the Guaranteed Substantial Completion Date.

 

 

C.    Contractor shall perform the Work in accordance with the Recovery Schedule.

 

 

D.    Five (5) Days prior to the expiration of the Recovery Schedule, Contractor shall meet with Owner at the Site to determine the effectiveness of the Recovery Schedule and to determine whether Contractor has regained compliance with the CPM Schedule and the Key Dates to the extent required for Substantial Completion to occur before the Guaranteed Substantial Completion Date. At the direction of Owner, one of the following shall happen:

 

 

1.    If, in the reasonable opinion of Owner, Contractor is still behind schedule, Contractor shall be required to prepare another Recovery Schedule pursuant to Section 5.5A above, to take effect during the immediate subsequent pay

 

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period or other period selected in writing by Owner. Contractor shall prepare such Recovery Schedule even if Contractor disputes Owner’s opinion.

 

2.    If, in the reasonable opinion of Owner, Contractor has sufficiently regained compliance with the CPM Schedule and the Key Dates, so that Train 3 will achieve Substantial Completion on or before the Guaranteed Substantial Completion Date, Contractor shall not be required to submit a new Recovery Schedule and shall perform in accordance with the CPM Schedule.

 

E.    In preparing and executing the Recovery Schedule, Contractor shall take the steps necessary to regain compliance with the CPM Schedule so that Train 3 will achieve Substantial Completion on or before the Guaranteed Substantial Completion Date, including establishing additional shifts, hiring additional manpower, paying or authorizing overtime, providing additional Construction Equipment, and resequencing activities.

 

F.    The cost of preparing and performance in accordance with the Recovery Schedule shall be for Contractor’s account.

 

G.    Owner’s requirement, review and approval of the Recovery Schedule shall not relieve Contractor of any obligations for the performance of the Work, change any Key Dates, or be construed to establish the reasonableness of the Recovery Schedule.

 

 

H.    If, at any time prior to the Guaranteed Substantial Completion Date, Contractor’s performance of the Work is delayed such that Train 3 is projected to achieve Substantial Completion beyond the Guaranteed Substantial Completion Date (as may be adjusted by Change Order) to such an extent that the Delay Liquidated Damages cap in Section 20.2 would apply, and (i) Contractor fails to provide a Recovery Schedule in accordance with this Section 5.5 or (ii) Contractor provides a Recovery Schedule but Contractor fails to materially comply with such Recovery Schedule, then Contractor shall be in Default and Owner, after written notice to Contractor, and a cure period of fifteen

(15) Days from the date of Owner’s notice, shall have the right, prior to the Guaranteed Substantial Completion Date, to terminate Contractor’s performance of the Work in accordance with Section 16.1A.

 

 

5.6    Acceleration and Acceleration Schedule. Even if the Work is otherwise in compliance with the CPM Schedule and Key Dates, Owner may, at any time, direct Contractor by Change Order or Change Directive to accelerate the Work by, among other things, establishing additional shifts, performing overtime Work, providing additional Construction Equipment or expediting Equipment; provided, however, (i) in no event shall Owner order with a Change Directive acceleration of the Work requiring Contractor to achieve any Substantial Completion or the Final Completion prior to the respective, original Guaranteed Substantial Completion Date or the Final Completion Date or if such acceleration is not technically feasible and (ii) Contractor’s obligation with respect to an acceleration directive from Owner shall be limited to using commercially reasonable efforts to accelerate the CPM Schedule. In the event of this directive, Owner shall pay to Contractor any (i) documented direct and indirect costs (and profit) clearly and solely attributable to such acceleration; and (ii) appropriate incentives, if any, that the Parties agree to in advance and which are set forth in the Change Order or Change Directive, as applicable. Any

 

54

 

 

Change Directive shall be governed by Sections 6.1E and 6.2D. Any adjustment to the Contract Price or any other Changed Criteria that the Parties agree in a Change Order will be changed by such acceleration for Owner’s acceleration of the Work shall be implemented by Change Order. If Owner directs Contractor to accelerate the Work, Contractor shall promptly commence and diligently perform the acceleration of the Work as directed by Owner and shall prepare a schedule to explain and display how it intends to accelerate the Work and how that acceleration will affect a critical path of the CPM Schedule (the “Acceleration Schedule”). With respect to the Acceleration Schedule, Contractor shall do the following:

 

A.    No later than the thirtieth (30th) Day after such directive, Contractor shall prepare the Acceleration Schedule and submit it to Owner for its review. The Acceleration Schedule shall represent Contractor’s best judgment as to how it shall satisfy such acceleration directive. The Acceleration Schedule shall be prepared using GECP and to a similar level of detail as the CPM Schedule.

 

B.    On the thirtieth (30th) Day after issuance of such directive (or such longer time as specified in writing by Owner), Contractor shall participate in a conference with Owner, and with any other Person, including Subcontractors and Sub-subcontractors, whom Owner requests and Contractor agrees (with such agreement not to be unreasonably withheld) to participate, to review and evaluate the Acceleration Schedule. Any revisions to the Acceleration Schedule necessary as a result of this review shall be resubmitted for review by Owner as soon as reasonably practicable. The revised Acceleration Schedule shall then be the schedule which Contractor shall use in planning, organizing, directing, coordinating, performing, and executing that portion of the Work that is affected by such acceleration, with the CPM Schedule governing the performance of all other Work.

 

 

C.    Owner’s review and approval of the Acceleration Schedule shall not constitute an independent evaluation or determination by Owner of the workability, feasibility, or reasonableness of that schedule.

 

 

 

ARTICLE 6 

CHANGES; FORCE MAJEURE; AND OWNER CAUSED DELAY

 

6.1    Owner’s Right to Change Order. Owner may, at any time, instruct Contractor to alter, amend, omit, or suspend the Work or modify the requirements of this Agreement in accordance with this Section 6.1.

 

 

A.    Prior to the execution of any Change Order under this Section 6.1, Owner shall notify Contractor of the nature of the proposed addition to, omission from, deletion from, suspension of, or any other modification or adjustment to the requirements of this Agreement, by issuing an Owner’s Change Request to Contractor in the form of Schedule D-3.

 

B.    Within fourteen (14) Business Days after Contractor’s receipt of such Owner’s Change Request (when reasonably possible but if it is not reasonably possible for Contractor to provide all of the information required under this Section 6.1B within such fourteen (14) Business Day period, Contractor shall provide Owner with as much

 

55

 

 

information as reasonably possible as well as a written explanation of the reason that additional time is required, but in no event later than thirty (30) Business Days following Contractor’s receipt of Owner’s written request for a change). Contractor shall respond to Owner with a written statement in the form of Schedule D-3 detailing:

 

1.    the description of Work to be performed and a program for its execution;

 

2.    a preliminary assessment of the effect (if any) such request, were it to be implemented by Change Order, would have on the Changed Criteria; and

 

	 	
			3.

				
			the original Owner’s Change Request number and revision numbers.

			

 

C.    After submission of Contractor’s written assessment in accordance with Section 6.1B and upon Owner’s written request, Contractor shall provide Owner within fourteen (14) Business Days (or if Contractor requires third party quotes in order to prepare the comprehensive written estimate required under this Section 6.1C or states that a longer time period is reasonably required at the time Contractor provides the preliminary assessment, within thirty (30) Days or such longer period of mutually agreed by the Parties in writing), a comprehensive written estimate setting forth in detail the effect, if any, which such request, if implemented by Change Order, would have on the Changed Criteria. This detailed estimate shall (i) include a fixed price breakdown (unless otherwise agreed by the Parties in writing) for the Work to be performed derived from the unit rates set forth in Schedule D-5 to the extent applicable or, if not stated therein, derived from rates not to exceed then-current market rates, (ii) include all information required by Section 6.5B, and

 

(iii) supplement and supersede the assessment provided under Section 6.1B.

 

 

D.    If the Parties agree on such Changed Criteria for such request, the Parties shall execute a Change Order, which shall be in the form of Schedule D-1 and such Change Order shall become binding on the Parties, as part of this Agreement.

 

 

E.    If the Parties cannot agree on such Changed Criteria for such request within fourteen (14) Days of Owner’s receipt of Contractor’s comprehensive written estimate specified in Section 6.1C, unless mutually extended in writing by the Parties, or if Owner desires that the proposed changed Work set forth in the Owner’s Change Request commence immediately without the requirement of an estimation or a detailed estimate by Contractor as required under Sections 6.1B or 6.1C, Owner may, by issuance of a Change Directive in the form attached hereto as Schedule D-2, require and authorize Contractor to commence and perform the changed Work specified in such Change Directive in accordance with the rates specified in Schedule D-5 (or if not set forth therein, at rates not to exceed then current market rates) with the effect of such unilateral Change Order on the Changed Criteria (or if the Parties agree on the effect of such unilateral Change Order for some but not all of the Changed Criteria, the impact of each of the components of the Changed Criteria on which the Parties disagree) to be determined as soon as possible but without prejudice to Contractor’s right to refer any Dispute for resolution in accordance with ARTICLE 18. Notwithstanding the foregoing, Owner may not issue a Change Directive that would cause an adjustment to the Minimum Acceptance Criteria, the

 

56

 

 

Performance Guarantees or require Contractor to handle, transport or remediate any Pre- Existing Hazardous Materials without Contractor’s agreement in the form of a mutual Change Order. After Owner’s issuance of a Change Directive, the Parties shall continue to negotiate in good faith to reach agreement on the Changed Criteria. If the Parties cannot agree on the effect of such Change Directive within a reasonable period of time but no longer than [***] ([***]) Days after Owner’s receipt of all supporting documentation reasonably required by Owner to evaluate the Changed Criteria, then the Dispute shall be resolved as provided in ARTICLE 18. Pending resolution of the Dispute, Contractor shall perform the Work as specified in such Change Directive, and Owner shall pay Contractor on a Monthly basis for (i) additional design and engineering Work related to the changed Work specified in the Change Directive in accordance with the rates set forth in Schedule D-5; (ii) the actual purchase price of Equipment procured by Contractor, plus associated margin of [***] percent ([***]%) on such purchase price for profit and corporate overhead; and (iii) Work involving minor changes to be performed in the field (such as relocation of Equipment within the Facilities) where unit rates are provided in this Agreement. When Owner and Contractor agree on the effect of such Change Directive on all of the Changed Criteria, such agreement shall be recorded by execution by the Parties of a Change Order in the form attached hereto as Schedule D-1, which shall supersede the Change Directive previously issued and relating to such changed Work. Contractor shall be considered to be in Default under Section 16.1 should it (i) fail to commence (which may include planning or design activities) the performance of the changed Work or other obligations required in such Change Directive within seven (7) Business Days after receipt of such Change Directive (or within such other time as specified in writing by Owner) or (ii) fail to diligently perform the changed Work or other obligations required in such Change Directive; provided, however, in no event shall Owner be entitled to issue any unilateral Change Directive (a) where such unilateral Change Directive would result in an increase in the Contract Price exceeding [***] U.S. Dollars (U.S.$ [***]), or (b) if in conjunction with other outstanding unilateral Change Directives issued by Owner, such unilateral Change Directives would in themselves result in an increase in the Contract Price equal to or exceeding to [***] U.S. Dollars (U.S.$ [***]).

 

 

	 	
			6.2

				
			Change Orders Requested by Contractor.

			

 

 

A.    Contractor shall only have the right to a Change Order in the event of any of the following occurrences:

 

 

1.    Acts or omissions of an Owner Indemnified Party, Owner’s consultants under Section 2.5D or any other Person acting on behalf of or under the control of Owner occurring after the Amended and Restated Execution Date that constitute a failure to perform an express term of this Agreement by Owner and that adversely affect Contractor’s actual cost (which costs shall be adequately documented and supported by Contractor) of performance of the Work or ability to perform any material requirement under this Agreement. If such acts or omissions cause a delay (as that term is defined in Section 6.9), Contractor shall be entitled to relief to the extent allowed under Section 6.8;

 

	 	
			2.

				
			Force Majeure to the extent allowed under Section 6.7A;

			

 

 

57

 

 

 

	 	
			3.

				
			Acceleration of the Work ordered by Owner pursuant to Section 5.6;

			

 

4.    Owner’s request for an increase in coverage under the Letter of Credit pursuant to Section 9.2 to cover any increase in the Contract Price as a result of Change Orders;

 

5.    To the extent expressly permitted under Sections 2.5B.2(i), 2.6, 3.3C.5, 3.10, 3.12C, 3.17, 3.27A, 3.27B, 5.2D.2, 6.12, 7.1B, 7.2D, 8.2C and 12.2A;

 

6.    To the extent expressly permitted under Sections 3.4C, 5.2D.1, 7.9 and 9.1C;

 

7.    Changes in Law that occur after May 15, 2022 (subject to Section 2.6) and that adversely affect Contractor’s actual cost (which costs shall be adequately documented and supported by Contractor) of performance of the Work or ability to perform any requirement under this Agreement. If such Changes in Law causes a delay (as that term is defined Section 6.9), Contractor shall be entitled to relief to the extent allowed under Section 6.8. Notwithstanding anything provided in this Agreement, any change in Applicable Law related to tariffs, quotas, or duties shall be addressed exclusively and Contractor shall be entitled to a Change Order only to the extent permitted in Attachment FF (Relief for Changes in U.S. Tariffs or Duties);

 

 

	 	
			8.

				
			Suspension in Work pursuant to Section 16.3 or 16.4;

			

 

 

9.    Changes to the Rely Upon Information, or errors, omissions or inaccuracies in the Rely Upon Information that adversely affect Contractor’s (i) actual cost (which costs shall be adequately documented and supported by Contractor) of performance of the Work, or (ii) ability to perform any material requirement under this Agreement. If such errors, omissions or inaccuracies in the Rely Upon Information cause a delay (as that term is defined in Section 6.9), Contractor shall be entitled to relief to the extent allowed under Section 6.8;

 

 

10.    To the extent expressly permitted elsewhere in Attachment O and, further, delay beyond the permissible times specified in Section 1A(x)(g)(2) or Section 1A(xii)(g)(2) of Attachment O for the delivery by Owner to Contractor of builder’s risk or marine cargo insurance proceeds received by the Collateral Agent (or if no Collateral Agent, a mutually agreed upon escrow agent) shall relieve Contractor of any obligation under this Agreement to effect repairs or other restoration of the Work affected by the insured occurrence for any costs of repairs or restoration exceeding the sum of the deductible under such insurance and any amounts previously paid to Contractor under such insurance and shall entitle Contractor to a Change Order adjusting the Contract Price and Key Dates, but only to the extent such delay adversely affects (i) Contractor’s cost of performance of the Work, (ii) Contractor’s ability to perform the Work in accordance with the Monthly Updated CPM Schedule, or (iii) Contractor’s ability to perform any material obligation under this Agreement; provided that, notwithstanding the

 

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foregoing, in no event shall this Section 6.2A.10 in any way relieve Contractor from any obligation to perform any work necessary to maintain the builder’s risk and marine cargo insurance in full force and effect;

 

	 	
			11.

				
			To the extent expressly permitted by Attachment FF; and

			

 

12.    A Russian and Ukraine Conflict Event to the extent permitted under Section 6.13.

 

B.    Should Contractor desire a Change Order under this Section 6.2, Contractor shall, pursuant to Section 6.5, notify Owner in writing and issue to Owner, at Contractor’s expense, a notice in the form of Schedule D-4 (“Contractor’s Change Notice”) with a detailed explanation of the proposed change and Contractor’s reasons for proposing the change, all documentation necessary to verify the effects of the change on the Changed Criteria, and all other information required by Section 6.5. Any adjustments to the Contract Price shall be requested on a fixed price basis (unless otherwise agreed by the Parties in writing) and shall be derived from the rates set forth in Schedule D-5 to the extent applicable or, if not stated therein, derived from rates not to exceed then-current market rates.

 

 

C.    Owner shall respond to Contractor’s Change Notice within thirty (30) Days of receipt (unless Owner requests additional information in order to respond), stating (i) whether Owner agrees that Contractor is entitled to a Change Order and (ii) the extent, if any, to which Owner agrees with Contractor’s statement regarding the effect of the proposed Change Order on the Changed Criteria, including any adjustment to the Contract Price. If Owner agrees that a Change Order is necessary and agrees with Contractor’s statement regarding the effect of the proposed Change Order on the Changed Criteria, then Owner shall issue such Change Order, which shall be in the form of Schedule D-1, and such Change Order shall become binding on the Parties as part of this Agreement upon execution thereof by the Parties.

 

D.    If the Parties agree that Contractor is entitled to a Change Order but cannot agree on the effect of the proposed Change Order on the Changed Criteria within fourteen

(14) Days after Owner’s receipt of Contractor’s written notice and proposed Change Order and all other required information, or if Owner desires that the proposed changed Work set forth in the proposed Change Order commence immediately, the rights, obligations and procedures set forth in Section 6.1E are applicable.

 

E.    If the Parties cannot agree upon whether Contractor is entitled to a Change Order within fourteen (14) Days after Owner’s receipt of Contractor’s Change Notice and proposed Change Order, then the dispute shall be resolved as provided in ARTICLE 18. Pending resolution of the dispute, Contractor shall continue to perform the Work required under this Agreement, and Owner shall continue to pay Contractor in accordance with the terms of this Agreement, as modified by any previously agreed Change Orders or Change Directives.

 

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6.3    Changed Criteria Adjustment; Contractor Documentation. Notwithstanding anything to the contrary, Owner shall not be obligated to make any payment to Contractor for Work performed under a Change Directive pursuant to Sections 6.1E and 6.2D (except to the extent specified in Sections 6.1E and 6.2D), and the Contract Price, Key Dates and any other Changed Criteria (other than the change in the Scope of Work) shall not be adjusted unless and until a Change Order (the value of which shall be derived from (i) the rates, prices and markups contained in Schedule D-5 to the extent applicable, or (ii) if not specified in Schedule D-5, rates not to exceed then-current market rates), has been executed. In the event Owner requires supplemental documentation to the information provided in Schedule D-5, Contractor shall provide third party supporting documentation and other supporting information as Owner may require to allow Owner to conduct a detailed analysis of, and value, the proposed Change Order, provided that Contractor shall not be required to provide the composition of any fixed rates or mark-ups except as permitted in Section 3.13B.

 

6.4    Change Orders Act as Accord and Satisfaction. Change Orders agreed pursuant to Section 6.1D or 6.2C by the Parties, and Change Directives entered into pursuant to Section

6.1E or 6.2D in which the Parties have subsequently agreed upon the effect of such Change Directive and executed a superseding Change Order as provided in Section 6.1D or 6.2C, shall, unless otherwise expressly reserved in such Change Order, constitute a full and final settlement and accord and satisfaction of all effects of the change as described in the Change Order upon the Changed Criteria and shall be deemed to compensate Contractor fully for all direct and indirect impacts of such change. Accordingly, unless otherwise expressly reserved in such Change Order, Contractor expressly waives and releases any and all right to make a claim or demand or to take any action or proceeding against Owner for any other consequences arising out of, relating to, or resulting from such change reflected in such Change Order, whether the consequences result directly or indirectly from such change reflected in such Change Order, including any claim or demand for damages due to delay, disruption, hindrance, impact, interference, inefficiencies or extra work arising out of, resulting from, or related to, the change reflected in that Change Order (including any claims or demands that any Change Order or number of Change Orders, individually or in the aggregate, have impacted the unchanged Work). If Contractor expressly reserves its right in a Change Order to maintain a claim arising out of the change in the Change Order, then such reservation shall only be effective for the earlier of Contractor’s achievement of Substantial Completion or one hundred eighty (180) Days after execution of the Change Order, and afterwards Contractor waives and releases any and all right to make a claim or demand relating to such Change Order as specified in this Section 6.4.

 

 

6.5    Timing Requirements for Change Notices Issued by Contractor. Should any circumstance that Contractor has reason to believe may give rise to the right to a Change Order, Contractor shall, with respect to each such circumstance:

 

A.    issue a Contractor’s Change Notice to Owner within fourteen (14) Days following the date that Contractor knew of or sixty (60) Days after the date that Contractor reasonably should have known of the first occurrence or beginning of such circumstance; provided that if such occurrence or circumstance is an emergency, oral notice shall be given immediately, followed by a Contractor’s Change Notice within seventy-two (72) hours after such oral notice is provided.

 

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1.    In such Contractor’s Change Notice, Contractor shall state in detail all known and presumed facts upon which its claim is based, including the character, duration and extent of such circumstance, the date Contractor first knew of such circumstance, any activities impacted by such circumstance, the estimated cost and time consequences of such circumstance (including showing a good faith estimate of the impact of such circumstance, if any, on the critical path of the Monthly Updated CPM Schedule) and any other details or information that are expressly required under this Agreement.

 

2.    Contractor shall only be required to comply with the notice requirements of this Section 6.5A once for continuing circumstances, provided the notice expressly states that the circumstance is continuing and includes Contractor’s best estimate of the impact on any Changed Criteria by such circumstance; and

 

	 	
			B.

				
			submit to Owner a comprehensive written estimate no later than forty five

			

(45) Days (unless mutually extended by the Parties in writing) after the later of (a) the date that the notice in Section 6.5A.1 is given and (b) the completion of each such circumstance, setting forth in detail (i) why Contractor believes that a Change Order should be issued, plus all documentation reasonably requested by or necessary for Owner to determine the factors necessitating the possibility of a Change Order and all other information and details expressly required under this Agreement, including the information required by Schedule D-4, applicable detailed estimates and cost records, time sheet summaries and a graphic demonstration using the CPM Schedule showing Contractor’s entitlement to a time extension to the Key Dates pursuant to the terms of this Agreement, which shall be provided in its native electronic format and (ii) the effect, if any, which such proposed Change Order would have for the Work on any of the Changed Criteria.

 

C.    The Parties acknowledge that the notice requirements contained in this Agreement are an express condition precedent necessary to any right for an adjustment to the Changed Criteria or any other modification to any other obligation of Contractor under this Agreement, provided that Owner demonstrates it was prejudiced by Contractor’s failure to provide such notice in accordance with the terms of this Agreement; however, in any event, if Contractor fails to provide the required notice within sixty (60) Days of when such notice was required to be given under the terms of this Agreement, such failure is deemed a complete bar to Contractor’s claim for which such notice was required. Oral notice, shortness of time, or Owner’s actual knowledge of a particular circumstance shall not waive, satisfy, discharge or otherwise excuse Contractor’s strict compliance with this Section 6.5.

 

6.6    Adjustment Only Through Change Order. No change in the requirements of this Agreement, whether an addition to, deletion from, suspension of or modification to this Agreement, including any Work, shall be the basis for an adjustment to any Changed Criteria or any other obligations of Contractor or right of Owner under this Agreement unless and until such addition, deletion, suspension or modification has been authorized by a Change Order executed and issued in accordance with and in strict compliance with the requirements of this ARTICLE 6, except that the Work may be changed by a Change Directive. Contractor shall not perform any

 

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change in the Work unless and until such change is authorized pursuant to a Change Order or Change Directive in accordance with this ARTICLE 6, and all costs incurred by Contractor prior to authorization by Change Order shall be for Contractor’s account. No course of conduct or dealings between the Parties (including the issuance of an Owner’s Change Request or Contractor’s Change Notice), nor express or implied acceptance of additions, deletions, suspensions or modifications to this Agreement, and no claim that Owner has been unjustly enriched by any such addition, deletion, suspension or modification to this Agreement, whether or not there is in fact any such unjust enrichment, shall be the basis for any claim for an adjustment to the Changed Criteria or any other obligations of Contractor under this Agreement.

 

	 	
			6.7

				
			Force Majeure.

			

 

A.    Contractor Relief. If the commencement, prosecution or completion of the Work is delayed by Force Majeure, then Contractor shall be entitled to an extension to the applicable Key Dates if such delay affects the performance of any Work that is on the critical path of the Monthly Updated CPM Schedule, but only if Contractor complies with the notice and Change Order request requirements in Section 6.5 and the mitigation requirements in Section 6.10. Subject to Section 6.7A1, the Parties agree that Contractor’s sole remedy for such delay shall be an adjustment to such Key Dates pursuant to a Change Order. In addition, if Force Majeure prevents Contractor’s performance with respect to any portion of the Work, Contractor shall be relieved from performance of such portion of the Work for the time period that such Force Majeure are continuing and preventing such performance.

 

 

1.    Contractor shall be entitled to an adjustment to the Contract Price for any delay that meets the requirements of Section 6.7A, if such delay, alone or aggregated with other Force Majeure events, causes delay in the performance of any Work that is on the critical path of the Monthly Updated CPM Schedule in excess of thirty (30) Days in the aggregate. Any such Contract Price adjustment shall be for reasonable costs necessarily incurred by Contractor for delay occurring after the expiration of such thirty (30) Day aggregate period; provided that Owner’s total liability under this Agreement for any such Contract Price adjustment(s) for all such events occurring during the term of this Agreement shall not exceed [***]

U.S. Dollars (U.S.$ [***]) in the aggregate.

 

2.    If the guaranteed Train 1 substantial completion date or guaranteed Train 2 substantial completion date (as defined under the Trains 1 and 2 EPC Agreement) is adjusted by Change Order, and such adjustment is as a result of an event for which Contractor is entitled to relief under section 6.7 of the Trains 1 and 2 EPC Agreement and causes a delay in the critical path of the Monthly Updated Schedule under this Agreement, Contractor shall be entitled to an adjustment to the applicable Key Dates, provided that Contractor meets the other requirements in Section 6.7A. With respect to the recovery of costs for such adjustment, Contractor shall only be entitled to such costs if it meets the requirements of Section 6.7A.1, but such costs recoverable under this Section 6.7A.2 are limited to reasonable costs necessarily incurred by Contractor for such delay incurred after the expiration of such thirty (30) Day aggregate in Section 6.7A.1 (as combined with other Force

 

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Majeure events). Such costs shall count against the [***] U.S. Dollars (U.S.$ [***]) in Section 6.7A.1.

 

B.    Owner Relief. Subject to Section 6.7A, Owner’s obligations under this Agreement shall be suspended to the extent that performance of such obligations is delayed by Force Majeure (but without prejudice to Contractor’s entitlement to a Change Order for the events described in Section 6.2A).

 

C.    Payment Obligations. No obligation of a Party to pay moneys under or pursuant to this Agreement shall be excused by reason of Force Majeure affecting such Party.

 

6.8    Delay Caused by Owner or for Which Owner Is Responsible. If (a) any Owner Indemnified Party or any Person acting on behalf of or under the control of Owner delays the commencement, prosecution or completion of the Work, including Owner’s failure to provide an Owner-Furnished Items, and to the extent such delay is not attributable to Contractor or its Subcontractors or Sub-subcontractors but is caused by Owner’s breach of an express obligation under this Agreement, or (b) the commencement, prosecution or completion of the Work is delayed as a result of (1) Changes in Law for which Contractor is entitled to relief under Section 6.2A.7,

(2) changes to or errors or omissions in Rely Upon Information for which Contractor is entitled to relief under Section 6.2A.9, (3) a suspension of the Work for which Contractor is entitled to relief under Section 6.2A.8, or (4) an event entitling Contractor to a Change Order as set forth in Section

 

6.2A.5 or 6.2A.11 for a Change in Quotas (as defined in Attachment FF) or Section 6.2A.12, then Contractor shall, with respect to any of the above, be entitled to an adjustment in the Contract Price and an extension to the Guaranteed Substantial Completion Date if such delay affects the performance of any Work that is on the critical path of the Monthly Updated CPM Schedule, and Contractor complies with the notice and Change Order request requirements in Section 6.5 and the mitigation requirements of Section 6.10, provided that Contractor shall be entitled to an adjustment to the Contract Price which shall be limited to the reasonable, additional costs incurred by Contractor for such delay, plus associated profit margin of [***] percent ([***]%) on such costs. Any adjustments to the Contract Price or a Key Date shall be recorded in a Change Order. The Parties agree that if they execute a Change Order with respect to any change in the Scope of Work described in this Section 6.8, any delay arising out of such change in the Scope of Work and meeting the requirements of this Section 6.8 shall be included in the Change Order incorporating such change in the Scope of Work.

 

 

A.    If the guaranteed Train 1 substantial completion date or guaranteed Train 2 substantial completion date (as defined under the Trains 1 and 2 EPC Agreement) is adjusted by Change Order, and such adjustment is as a result of an event for which Contractor is entitled to relief under section 6.8 of the Trains 1 and 2 EPC Agreement and causes a delay in the critical path of the Monthly Updated Schedule under this Agreement, Contractor shall be entitled to an adjustment to the applicable Key Dates, provided that Contractor meets the other requirements in this Section 6.8. With respect to the recovery of costs for such adjustment, Contractor shall only be entitled to such costs if it meets the requirements of Section 6.8, but such costs recoverable under this Section 6.8A are limited to the recovery of reasonable, additional costs incurred by Contractor for such delay, plus associated profit margin of [***] percent ([***]%) on such costs.

 

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6.9    Delay. For the purposes of Sections 6.2A.1, 6.2A.5, 6.2A.9, 6.7, 6.8, 6.12 and 6.13, the term “delay” shall include hindrances, disruptions, preventions or obstructions, or any other similar term in the industry and the resulting impact from such hindrances, disruptions or obstructions, including inefficiency, impact, ripple or lost production. For the avoidance of doubt, the Parties recognize and agree that for the purposes of Sections 6.7 and 6.8, a Work activity not on the critical path can become on the critical path, and if a delay causes a Work activity off the critical path to become a critical path activity, Contractor is entitled to an extension to the Key Dates for those days of delay after which the non-critical path activity became a critical path activity, provided that such delay satisfies the other applicable requirements under Sections 6.7 and 6.8.

 

6.10    Contractor Obligation to Mitigate Delay. With respect to Sections 6.7 and 6.8, in no event shall Contractor be entitled to any adjustment to the Key Dates or adjustment to the Contract Price for (i) that portion of delay to the extent Contractor could have taken, but failed to take, reasonable actions to mitigate such delay or (ii) that portion of delay that would nevertheless been experienced had such delay event in Section 6.7 or 6.8 not occurred.

 

6.11    Separated Contract Price Adjustments in Change Orders. Any adjustment by Change Order to the Contract Price which is made on a fixed price separated basis shall be separated pursuant to 34 Tex. Admin. Code Rule § 3.291(a)(13) to specify the applicable adjustments to the Aggregate Equipment Price and Aggregate Labor and Skills Price in accordance with ARTICLE 7.

 

 

	 	
			6.12

				
			COVID-19 Provisional Sum and COVID-19 Events .

			

 

 

A.    COVID-19 Provisional Sum. Set forth in Attachment II are countermeasures, means, methods, responsive and preventative measures with respect to COVID-19 (“COVID-19 Countermeasures”) that Contractor or its Subcontractors or Sub- subcontractors may implement in the performance of the Work in accordance with Section

6.12A.1 and 6.12A.2. The Parties have included in the Contract Price an estimated provisional sum for the implementation of such COVID-19 Countermeasures, as set forth in Attachment II (“COVID-19 Provisional Sum”). Owner shall pay to Contractor, in accordance with this Section 6.12 and Attachment II (at the rates shown and referenced therein), the costs and expenses incurred by Contractor (or its applicable Subcontractors or Sub-subcontractors) as a result of COVID-19 for implementing the COVID-19 Countermeasures set forth therein, even if such costs and expenses exceed the COVID-19 Provisional Sum, provided that Contractor may only invoice Owner for the actual costs and expenses incurred by Contractor as a result of COVID-19 plus a markup of [***] percent ([***]%) and Contractor may not invoice Owner (and Owner shall have no obligation to pay) any other costs, including any amounts for contingency or escalation. The costs associated with implementing such COVID-19 Countermeasures are set forth and further detailed in Attachment II and any additional costs and expenses incurred above and beyond the estimates set forth in Attachment II shall be based on the estimates set forth therein. To the extent that the value of the COVID-19 Countermeasures exceed the amount set forth in Attachment II, Contractor is entitled to a Change Order to increase the amount of the Provisional Sum (and a corresponding increase in the Contract Price). Owner is entitled to a Change Order reducing the Contract Price if the costs and expenses incurred

 

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in implementing the COVID-19 Countermeasures are less than the COVID-19 Provisional Sum.

 

 

1.    Schedule II-1 lists the COVID-19 Countermeasures that Contractor has initially determined will be implemented by Contractor commencing after the Amended and Restated Execution Date. The COVID-19 Provisional Sum for the COVID-19 Countermeasures in Schedule II-1 assumes that these COVID-19 Countermeasures will be implemented at the Amended and Restated Execution Date and continue (except as stated otherwise in Schedule II-1) for twelve (12) months following the Amended and Restated Execution Date, which such duration after the Amended and Restated Execution Date may be extended for a COVID-19 Extension. Contractor may extend the duration of the implementation of the COVID-19 Countermeasures in Schedule II-1 beyond the period specified in Schedule II-1 due to a COVID-19 Extension. A “COVID-19 Extension” means a circumstance following the Amended and Restated Execution Date where the time period for the implementation of any of COVID-19 Countermeasures in Schedule II-1 has expired and: (a) Contractor is required under Applicable Law to continue implementing such COVID-19 Countermeasures beyond the period currently indicated in Schedule II-1 in order to perform the Work in compliance with Applicable Laws, (b) a change in COVID-19 Guidelines recommends the continuance of the COVID-19 Countermeasures in Schedule II-1 for time-periods extending beyond the period then currently indicated in Schedule II-1 and Contractor elects to implement such change in COVID-19 Guidelines; (c) there is COVID-19 Outbreak and Contractor elects to continue such COVID-19 Countermeasures; or (d) Contractor otherwise elects to continue or revise such means, methods and countermeasures in effect as to protect those performing the Work from the spread of COVID-19.

 

2.    Schedule II-2 lists the COVID-19 Countermeasures that Contractor has initially determined will be implemented by Contractor commencing at the Amended and Restated Execution Date and be ongoing without interruption during the performance of the Work for the duration specified in Schedule II-2.

 

3.    Contractor shall receive no adjustments to the Key Dates (including an extension to any Guaranteed Date) for implementing any COVID-19 Countermeasures listed in Attachment II, (except as Contractor may be entitled to same for a COVID-19 Extension affecting the Work for Rows 13 and 24 of Schedule II-1), regardless of which COVID-19 Countermeasures are implemented and for how long. Contractor shall only be entitled to claim an adjustment to the Guaranteed Substantial Completion Dates for COVID-19 Events, which are separately addressed in Section 6.12B.

 

B.    COVID-19 Event Cost and Schedule Impacts. If the occurrence of a COVID-19 Event (including Contractor’s, its Subcontractor’s or Sub-Subcontractor’s responsive and preventative actions thereto, or adopting additional or different countermeasures or other means and methods in performing the Work from the COVID- 19 Countermeasures in response thereto) adversely affect Contractor’s actual cost (which

 

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costs shall be adequately documented and supported by Contractor) of performance of the Work, Contractor shall be entitled to a Change Order adjusting the Contract Price. If such COVID-19 Event (or such actions, countermeasures and/or means and methods) causes a delay (as that term is defined Section 6.9), Contractor shall be entitled to relief to the extent permitted in Section 6.8. Contractor (or Subcontractor or Sub-subcontractors) shall receive no relief as a result of changes in market conditions that arise out of the impact to the Work from COVID-19 or any COVID-19 Event unless Contractor demonstrates that such impact is caused by a COVID-19 Event, but excluding changes in market conditions that arise indirectly from such impact or that result in a general escalation of prices for labor, materials (other than those specified in Attachment KK), equipment and services.

 

C.    COVID-19 – Countermeasures, Means and Methods and Mitigation. Contractor (and its Subcontractors and Sub-subcontractors) may implement COVID-19 Countermeasures, adopt additional or different countermeasures or other means and methods in performing the Work from those COVID-19 Countermeasures set forth in Attachment II, and take responsive and preventative actions (such as the right to suspend the Work, in whole or in part, or evacuate personnel, in each case after consultation with Owner, and including the COVID-19 Countermeasures) in response to a COVID-19 Event that are reasonably necessary to protect those performing the Work from the spread of COVID-19 or other epidemics, pandemics or plagues, or reasonably necessary to otherwise mitigate or prevent the spread of COVID-19 or other epidemics, pandemics or plagues.

 

 

D.    COVID-19 Event Performance Prevention. If a COVID-19 Event (including the effects of such COVID-19 Event) prevents the performance with respect to any portion of the Work, Contractor (and its applicable Subcontractor or Sub- subcontractor) shall be relieved from performance of such portion of the Work for the time period that such COVID-19 Event, or the effects of such COVID-19 Event, are continuing; provided that Contractor’s entitlement to a Change Order for an adjustment to the Contract Price and Guaranteed Substantial Completion Dates shall be determined in accordance with Section 6.8.

 

 

6.13    Russian and Ukraine Conflict Event . If the Russian and Ukraine Conflict Event adversely affects Contractor’s actual cost (which costs shall be adequately documented and supported by Contractor) of performance of the Work or ability to perform any material obligation under this Agreement, then Contractor shall be entitled to a Change Order for an adjustment to the Contract Price and, to the extent permitted in Section 6.8, for an adjustment to Key Dates; provided that Contractor complies with the Change Order request requirements in Section 6.5 and provided further that any impacts as a result of the Russian and Ukraine Conflict Event are limited solely to the following impacts:

 

A.    Impacts covered under this Section 6.13 are comprised solely of the following:

 

 

1.    An increase in the transportation costs or delay in transportation as a result of the Russian and Ukraine Conflict Event that causes a material disruption in the operations of a major shipping port for more than five (5) Days that was planned to be used in connection with the performance of the Work or a material

 

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disruption of a major roadway for more than five (5) Days that was planned to be used in connection with the performance of the Work where there is no other reasonable roadway, the impact of which may result in Contractor having to make different provisions for the sourcing of or transportation of Equipment. Contactor shall consult with Owner to evaluate options, such as alternate sourcing or transportation, and provide details of the impacts of such options on the Contract Price and Key Dates;

 

2.    A material disruption in the operations of a Subcontractor’s manufacturing facility for the production of Equipment as a result of a curtailment of energy to such manufacturing facility for more than five (5) Days caused by the Russian and Ukraine Conflict Event and where Subcontractor does not have other reasonable and commercially practicable alternative means of energy and there is no other manufacturing facilities reasonably and commercial practicably available that such Subcontractor can use. Contactor shall consult with Owner to evaluate options, such as alternate sourcing or transportation, and provide details of the impacts of such options on the Contract Price and Key Dates; and

 

3.    A material disruption to the availability of Equipment required by Contractor or a Subcontractor for more than five (5) Days caused by the Russian and Ukraine Conflict Event and where Contractor or Subcontractor does not have other reasonable and commercially practicable alternative means of obtaining such Equipment.

 

 

B.    Notwithstanding the foregoing, the following impacts are excluded from Section 6.13 and consequentially Contractor is not entitled to any relief under this Agreement for such impacts:

 

 

1.    Any impacts from the Russian and Ukraine Conflict Event existing prior to the Amended and Restated Execution Date, provided the scope of such impacts do not increase after the Amended and Restated Execution Date, and if such impacts increase after the Amended and Restated Execution Date, only the increase in the impacts shall be considered;

 

 

2.    Contractor (or Subcontractor or Sub-subcontractors) shall receive no relief as a result of changes in market conditions that arise out of the impact to the Work from the Russian and Ukraine Conflict Event unless Contractor demonstrates that such impact is caused by the Russian and Ukraine Conflict Event, but excluding changes in market conditions that arise indirectly from such impact or that result in a general escalation of prices for labor, materials (other than those specified in Attachment KK and Attachment LL), equipment and services;

 

3.    Any impacts resulting from a Change in Law, which impacts will be addressed as a Change in Law and not as a Russian and Ukraine Conflict Event;

 

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4.    Any impacts resulting from Contractor or any Subcontractor or Sub- subcontractor from procuring directly or indirectly any portion of Equipment from Russia or Ukraine;

 

5.    Any impacts to the Work (with respect to which Contractor plans to Subcontract) that have occurred prior to Contractor signing a Subcontract with any Subcontractor for such Work;

 

6.    Any impacts that could or could have been mitigated using reasonable and commercially practicable efforts by Contractor or its Subcontractors or Sub-subcontractors as described in Section 6.13A above;

 

7.    Any impacts to the extent any Subcontractor or any Sub- subcontractor has assumed the risks of those impacts in its applicable Subcontract or Sub-subcontract; and

 

Fluctuations in pricing of the agreed upon Equipment as specified in Attachment KK and the changes in High Value Orders as specified in Attachment LL, in which case Attachment KK and Attachment LL will solely govern Contactor’s entitlement to adjustment to Contract Price and Key Dates for such impacts.

 

 

 

ARTICLE 7 

CONTRACT PRICE AND PAYMENTS TO CONTRACTOR

 

7.1    Contract Price. As compensation in full to Contractor for the full and complete performance of the Work and all of Contractor’s other obligations under this Agreement, Owner shall pay and Contractor shall accept Two Billion Nine Hundred Twelve Million Three Hundred Thirty Four Thousand U.S. Dollars ($2,912,334,000) (the “Contract Price”). The Contract Price is subject to adjustment only by Change Order as provided in ARTICLE 6, and includes all Taxes (excluding U.S. Tariffs and Duties, as further described in Section 7.1A) payable by Contractor and its Subcontractors and Sub-subcontractors in connection with the Work and all Provisional Sums. For the avoidance of doubt, the Contract Price does not include Texas Sales and Use Tax on Equipment (which is subject to exemption as provided under Section 4.8A).

 

 

A.    The Contract Price excludes U.S. Tariffs and Duties, and Contractor shall invoice separately to recover its costs for U.S. Tariffs and Duties pursuant to Attachment FF, provided that Contractor may not invoice any more than Twenty Eight Million Two Hundred Fifty Three Thousand Three Hundred Seventy Five U.S. Dollars ($28,253,375) (“Total Reimbursement Amount”) in total for U.S. Tariffs and Duties (unless reduced or increased via Change Order pursuant to Attachment FF (Relief for Changes in U.S. Tariffs or Duties) for a Change in U.S. Tariffs or Duties), and any additional costs related to any tariffs, quotas, and duties are for Contractor’s account.

 

B.    The Contract Price is separated, in accordance with the definition of separated contract as defined in 34 Tex. Admin Code Rule § 3.291(a)(13), as follows:

 

1.    [***] U.S. Dollars ($[***]) for Equipment (“Aggregate Equipment Price”). The Aggregate Equipment Price equates to the portion of the Contract

 

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Price attributable to all Equipment and includes the cost of every piece of Equipment, including markup, overhead, freight and profit, but excludes labor.

 

2.    [***] U.S. Dollars ($[***]) for all Work in this Agreement other than for Equipment (“Aggregate Labor and Skills Price”), which such Work includes all labor, engineering, design, services, installation, consumables, freight on Construction Equipment, overhead and all other items of whatever nature applicable to the Work. Excluding only the Aggregate Equipment Price, the Aggregate Labor and Skills Price shall include all costs, charges and expenses of whatever nature applicable to the Work, including Taxes (except for U.S. Tariffs and Duties) on all Work and Texas Sales and Use Tax on all Work other than on Equipment.

 

3.    Attachment GG provides a list of options (“Additional Work Options”) for additional Work that Owner may elect to have Contractor perform, as further specified in this Section 7.1B3. Owner may, at any time within the time periods specified in Attachment GG for each Additional Work Option, elect (by giving written notice to Contractor) to have Contractor perform any Additional Work Options for the corresponding amounts set forth in Attachment GG. The amount listed for each Additional Work Option is compensation in full for Contractor’s complete performance of each Additional Work Option selected by Owner and includes all costs and expenses of any nature associated with such Additional Work Option. In the event that Owner selects any Additional Work Options, the Parties shall enter into a Change Order that adjusts the Contract Price in an amount equal to total of the Additional Work Options selected by Owner. Other than the adjustment to the Contract Price, Contractor shall receive no other adjustments to any Changed Criteria as a result of Owner’s selection of any Additional Work Options.

 

 

4.    To the extent that the value of a Provisional Sum exceeds the respective Provisional Sum set forth in Attachment JJ, Contractor shall be entitled to a Change Order to increase the Contract Price for such amount. Accordingly, Owner shall be entitled to a Change Order reducing the Contract Price to the extent the value of the Work related to a Provisional Sum is less than the respective Provisional Sum set forth in Attachment JJ.

 

 

5.    The Parties have agreed to adjust the Contract Price based on the fluctuations in the pricing of certain agreed upon commodities as described in Attachment KK. Such adjustments shall follow the procedure set forth in Attachment KK.

 

6.    The Parties shall prior to NTP adjust the Contract Price and Key Dates based on the true up of certain agreed upon High Value Orders described in Attachment LL. Such adjustments shall follow the procedure set forth in Attachment LL.

 

	 	
			7.2

				
			Interim Payments.

			

 

 

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A.    Payments. Interim payments shall be made by Owner to Contractor in accordance with the Payment Schedule set forth in Attachment C (as may be amended by Change Order pursuant to Section 6.1C or 6.2C), which allocates (i) [***] U.S. Dollars ($[***]) of the Contract Price to be paid based on percent completion of the Work (“Earned Value”) using the detailed breakdown of the Work and the procedures set forth in Schedule C-1 (the “Earned Value Contract Price Breakdown”), and (ii) [***] U.S. Dollars ($[***]) of the Contract Price to be paid based on completion of Payment Milestones set forth in Schedule C-2, provided that Contractor is otherwise in material compliance with the terms of this Agreement. The mobilization Payment Milestone in Schedule C-2 shall be paid within [***] ([***]) Days after issuance of NTP. Each payment shall be subject to Owner’s right to withhold payments under this Agreement, including Sections 3.3G, 7.5, 11.5A and 13.1. Payments shall be made in U.S. Dollars to an account designated by Contractor. The Payment Schedule, including the Earned Value Contract Price Breakdown and the Payment Milestones, shall be amended only by Change Order pursuant to this Agreement.

 

B.    Invoices. Within [***] ([***]) Days after the end of each Month (or the next Business Day if the [***]th Day is not a Business Day), Contractor shall submit to Owner an Invoice for (i) all Work completed during the prior Month in accordance with the Earned Value Contract Price Breakdown (ii) all Payment Milestones completed during the prior Month, if any and (iii) reimbursement for U.S. Tariffs and Duties, if any. Contractor shall not be entitled to any payment whatsoever for any portion of the Work relating to a particular Payment Milestone until such Payment Milestone is fully completed. Such Monthly Invoice shall also include amounts properly due and owing for Work performed during the prior Month under Change Directives. All Invoices, other than the Invoice for final payment under this Agreement, shall be in the form of Schedule I-1, and shall include all documentation supporting its request for payment as required under this Agreement. All Invoices issued to Owner hereunder shall separately state charges for Equipment and skill, labor and other costs for the Project.

 

 

C.    Interim Lien and Claim Waivers. Each Invoice received by Owner prior to Final Completion shall be accompanied by (i) a fully executed Interim Lien and Claim Waiver from Contractor in the form of Schedules K-1 and K-2 for all Work performed through the date for which payment is requested, (ii) fully executed Interim Lien and Claim Waivers from each Major Subcontractor in the form set forth in Schedules K-3 and K-4 for all Work performed through the date for which payment is requested and (iii) if requested by Owner, fully executed Interim Lien and Claim Waivers from all Major Sub- subcontractors in the form set forth in Schedules K-3 and K-4 for all Work performed through the date for which payment is requested. Interim Lien and Claim Waivers, however, shall not be required from Major Subcontractors, Major Sub-subcontractors, Subcontractors or Sub-subcontractors until they have performed and invoiced Contractor for their Work, and Major Subcontractors, Major Sub-subcontractors, Subcontractors and Sub-subcontractors shall be required to submit additional Interim Lien and Claim Waivers only if they have performed Work not covered by a previous Interim Lien and Claim Waiver. Submission of all Interim Lien and Claim Waivers are a condition precedent to payment of any Invoice (provided that if Contractor does not submit an Interim Lien and Claim Waiver for a Major Subcontractor or Major Sub-subcontractor in accordance with

 

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this Section 7.2C, Owner may withhold payment for the amount allocated to such Major Subcontractor or Major Sub-subcontractor that has not provided an Interim Lien and Claim Waiver).

 

D.    Review and Approval. Each Invoice shall be reviewed by Owner and, upon Owner’s reasonable request, Contractor shall furnish such supporting documentation and certificates and provide such further information as may be reasonably requested by Owner. Unless disputed by Owner, each Invoice (less any withholdings allowed under this Agreement) shall be due and payable [***] ([***]) Days after it, and all documentation required under this Agreement, is received by Owner. Notwithstanding the above, on issuance of NTP or anytime thereafter, Contractor may submit an Invoice to Owner for the mobilization Payment Milestone, and such Invoice shall be due and payable in accordance with Section 7.2A. If an Invoice is disputed by Owner, then payment shall be made for all undisputed amounts and the Dispute shall be resolved pursuant to ARTICLE 18. Payment on disputed amounts shall be made as soon as such Dispute is resolved.

 

E.    Maximum Cumulative Payment Amounts. The Parties have agreed upon and set forth in Schedule C-3 a schedule of the maximum cumulative amounts that Contractor is allowed to Invoice Owner at any one time during the performance of the Work (the “Maximum Cumulative Payment Schedule”). The Maximum Cumulative Payment Schedule shall only be subject to adjustment pursuant to a Change Order.

 

 

7.3    Final Completion and Final Payment. Upon Final Completion, Contractor shall, in addition to any other requirements in this Agreement for achieving Final Completion, including those requirements set forth in Section 1.1 for the definition of Final Completion, submit a fully executed final Invoice in the form attached hereto as Schedule I-2, along with (i) a statement summarizing and reconciling all previous Invoices, payments and Change Orders, (ii) an affidavit that all payrolls, Taxes, liens, charges, claims, demands, judgments, security interests, bills for Equipment, and any other indebtedness connected with the Work have been paid, (iii) fully executed Final Lien and Claim Waiver from Contractor in the form of Schedules K-5 and K-6, (iv) fully executed Final Lien and Claim Waivers from each Major Subcontractor in the form set forth in Schedules K-7 and K-8, and (v) if requested by Owner, fully executed Final Lien and Claim Waivers from each Major Sub-subcontractor in the form set forth in Schedules K-7 and K-8. No later than [***] ([***]) Days after receipt by Owner of such final Invoice and all requested documentation and achieving Final Completion, Owner shall, subject to its rights to withhold payment under this Agreement, pay Contractor the balance of the Contract Price.

 

 

7.4    Payments Not Acceptance of Work. No payment made hereunder by Owner shall be considered as approval or acceptance of any Work by Owner or a waiver of any claim or right Owner may have hereunder. All payments shall be subject to correction or adjustment in subsequent payments.

 

7.5    Payments Withheld. In addition to disputed amounts set forth in an Invoice, Owner may, in addition to any other rights under this Agreement, withhold payment on an Invoice or a portion thereof, or collect on the Letter of Credit, in an amount and to such extent as may be reasonably necessary to protect Owner from loss due to:

 

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			A.

				
			Defective Work not remedied in accordance with this Agreement;

			

 

B.    liens, stop notices or other encumbrances on all or a portion of the Site, the Work, the Trains 1 and 2 Liquefaction Facility or the Train 3 Liquefaction Facility, which are filed by any Subcontractor, any Sub-subcontractor or any other Person acting through or under any of them, provided that Owner has made payment to Contractor of all undisputed amounts due to Contractor in accordance with the terms of this Agreement and further provided that, with respect to liens and other encumbrances, Contractor has not removed or discharged such lien or encumbrance in accordance with Section 17.6;

 

C.    any material breach by Contractor of any term or provision of this Agreement;

 

D.    the assessment of any fines or penalties against Owner as a result of Contractor’s failure to comply with Applicable Law or Applicable Codes and Standards;

 

E.    a discovery that a Payment Milestone or other Work associated with a prior payment was not in fact achieved;

 

	 	
			F.

				
			amounts paid by Owner to Contractor in a preceding Month incorrectly;

			

 

 

G.    Liquidated Damages that Contractor owes under the terms of this Agreement;

 

 

H.    failure of Contractor to make payments to Subcontractors in accordance with their respective Subcontracts, provided that Owner has made payment to Contractor of all undisputed amounts owed to Contractor in accordance with the terms of this Agreement with respect to the applicable Subcontracts;

 

 

I.    any other costs or liabilities which Owner has incurred or will incur for which Contractor is responsible under this Agreement; or

 

J.    failure of Contractor to comply with its Monthly Progress Report obligations or scheduling obligations as set forth in Section 5.4.

 

 

7.6    Payment of Amounts Withheld or Collected on Letter of Credit. Prior to drawing down or collecting on the Letter of Credit in accordance with this Agreement, Owner shall provide Contractor with the written notice in accordance with Section 9.2A(b). For amounts actually withheld or collected on the Letter of Credit, Owner shall pay Contractor the amount Owner withheld or collected on the Letter of Credit under Section 7.5 if Contractor (i) pays, satisfies or discharges the applicable claim of Owner against Contractor under or by virtue of this Agreement and provides Owner with reasonable evidence of such payment, satisfaction or discharge, (ii) cures the applicable breach described in Section 7.5 or the applicable Default (i.e., the breach described in Section 7.5 or Default on which Owner’s withholding or collection on the Letter of Credit was based), (iii) with respect to item 7.5B, removes the lien or other encumbrance in question in accordance with Applicable Law, or (iv) provides Owner with a Letter of Credit reasonably satisfactory to Owner in the amount of the withheld payment. In the event Owner draws down or collects any amount on the Letter of Credit pursuant to this Section 7.6, and

 

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Contractor acts in accordance with either (i), (ii) or (iii) above so as to require payment from Owner, Contractor shall, within [***] ([***]) Days after Owner’s payment to Contractor, restore the Letter of Credit to the amount the Letter of Credit had immediately prior to Owner’s collection on the Letter of Credit under this Section 7.6, failing which, Owner may withhold all payments otherwise due Contractor until Contractor so restores such Letter of Credit. Owner’s failure to withhold or draw down or collect against the Letter of Credit in the event of any of the circumstances described in this Section 7.6 shall not be deemed to be a waiver of any of Owner’s rights under this Agreement, including Owner’s right to withhold or draw down on the Letter of Credit at any time one of the circumstances in Section 7.5 exists.

 

7.7    Interest on Late Payments. Any undisputed amounts due but not paid when such amounts are due and payable hereunder shall bear interest at the lesser of (i) an annual rate equal to the prime rate published by the Wall Street Journal on the date such amounts were due and payable plus [***] percent ([***]%) or (ii) the maximum rate permitted under Applicable Law.

 

7.8    Offset. Owner may, upon prior notice to Contractor, offset any debt due and payable from Contractor to Owner against any amount due and payable to Contractor hereunder.

 

7.9    Currency. All amounts contained herein are in and shall be paid in U.S. Dollars. Included in the Contract Price are the following amounts in U.S. Dollars based upon the following foreign (non-U.S. Dollar) currencies at the following exchange rates to the U.S. Dollar:

 

 

 

	
			Foreign Currency

				
			Value of Foreign Currency

				
			Initial Exchange Rate

				
			Initial Equivalent U.S. Dollar Value

			
	
			Euro

				
			€ 198,620,000

				
			[***] U.S. $ to Euro

				
			U.S. $[***]

			

 

On a date that is two (2) Business Days after Owner’s issuance of NTP, the Contract Price shall be subject to an upward or downward adjustment by Change Order to account for changes in the exchange rate from the Initial Exchange Rate to the exchange rate at such date, and such adjusted Contract Price shall be stated in U.S. Dollars.

 

The adjustment to the Contract Price for each foreign currency will be determined as follows:

 

(a)    the equivalent U.S. Dollar value on the date that is two (2) Business Days after Owner’s issuance of NTP

 

(determined by multiplying the value of foreign currency listed above by the exchange rate quoted by Bloomberg FX Fixings rate for such foreign currency as of 9:00am NY time on the next banking day following the date that is two (2) Business Days after Owner’s issuance of NTP)

 

minus

 

(b)    the initial equivalent U.S. Dollar value listed in the table above for such foreign currency.

 

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The Contract Price adjustment shall be the sum of the adjustments for each currency and shall be stated in U.S. Dollars. After the date that is two (2) Business Days after Owner’s issuance of NTP, Contractor assumes all risk relating to fluctuation of any foreign currency.

 

7.10    Conditions Precedent to Payment. It shall be a condition precedent to Contractor’s entitlement to receive any payment from Owner under this Agreement that Contractor has provided to Owner, and is maintaining the (i) Parent Guarantee in accordance with Section 21.17, (ii) Letter of Credit in accordance with Section 9.2, and (iii) insurance policies in accordance with Section 9.1.

 

	 	
			7.11

				
			[***].

			

 

 

 

ARTICLE 8 

TITLE AND RISK OF LOSS

 

	 	
			8.1

				
			Title.

			

 

 

A.    Clear Title. Contractor warrants and guarantees that Owner will receive good and legal title to and ownership of the Work and the Train 3 Liquefaction Facility (including each component thereof) shall be free and clear of any and all liens, claims, security interests or other encumbrances when title thereto passes to Owner.

 

B.    Title to Work. Title to all or any portion of the Work (other than Work Product) shall pass to Owner (or its designee) upon the earlier of (i) payment by Owner therefor, (ii) delivery of the Work to the Site, or (iii) incorporation of such Work into the Train 3 Liquefaction Facility, except in the case of Work Product, which is governed by ARTICLE 10. Transfer of title to Work shall be without prejudice to Owner’s right to reject Defective Work, or any other right in this Agreement.

 

	 	
			8.2

				
			Risk of Loss.

			

 

A.    Risk of Loss Prior to Substantial Completion. Contractor shall bear the risk of physical loss and damage to the Train 3 Liquefaction Facility and all Equipment and Work incorporated or to be incorporated into such Train until the earlier of Substantial Completion of such Train or termination of the Agreement, provided that Owner shall at all times bear the risk of physical loss and damage to the extent (i) arising from war (whether declared or undeclared), civil war, act of terrorism, sabotage, blockade, insurrection; or (ii) arising from ionizing radiation, or contamination by radioactivity from nuclear fuel, or from any nuclear waste from the combustion of nuclear fuel properties of any explosive nuclear assembly or nuclear component thereof; (iii) arising from a cyber event or communicable disease that is excluded from coverage pursuant to Contractor’s Builder’s Risk or Marine Cargo policies; (iv) arising from a significant atmospheric disturbance marked by high winds, with or without precipitation, including such events as hurricane, typhoon, monsoon, cyclone, rainstorm, tempest, hailstorm, tornado, or any combination of the foregoing events, including any resulting flood, tidal or wave action (collectively, “Windstorms”) and water damage to the extent that such Windstorms and water damage result in loss or damage in excess of [***] U.S. Dollars (U.S.$ [***]) (or such greater amount obtained in the Builder’s Risk policy) in the cumulative aggregate

 

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with respect to the Work, the Facility and the Train 3 Liquefaction Facility (the full amount of [***] U.S. Dollars (U.S.$ [***]) (or such greater amount obtained in the Builder’s Risk policy) may be satisfied under either the Train 3 EPC Agreement or this Agreement) or (v) such physical loss or damage to the Facility exceeds the sum insured obtained in the Builder’s Risk policy for such physical loss or damage.

 

B.    Transfer of Risk of Loss After Substantial Completion. Upon the earlier termination of the Agreement or after Substantial Completion as described in Attachment A, Owner shall bear the risk of physical loss and damage to Train 3 (including all Equipment and Work incorporated into such Train), and any other portion of the Work or Train 3 Liquefaction Facility transferred to Owner prior to Substantial Completion in accordance with Section 11.8. In accordance with Section 17.1F, Contractor shall be liable to Owner for physical loss and damage to any portion of Train 3 after Train 3 achieves Substantial Completion to the extent such physical loss and damage arises out of or results from or is related to the negligence or fault of any Contractor Indemnified Party or Subcontractors or Sub-subcontractors, subject to a cap in liability of [***] U.S. Dollars (U.S. $[***]) per occurrence, with a cumulative per occurrence of [***] U.S. Dollars (U.S.$ [***]) under the Trains 1 and 2 EPC Agreement and this Agreement. Under no circumstances shall this Section 8.2B be interpreted to relieve Contractor of its obligations with respect to Warranties, Defective Work and Corrective Work.

 

 

C.    With respect to any physical loss or physical damage to Train 3 (including Equipment or Work incorporated into Train 3) caused by (a) Force Majeure (including any of the events listed in Section 8.2A(i) through 8.2A(v)); (b) any member of Owner Indemnified Parties or any other Person for whom Owner is responsible, or (c) any Third Party over whom neither Contractor nor Owner are responsible and such Third Party is beyond the reasonable control of Contractor and such loss or damage was not due to Contractor’s fault or negligence and could not have been prevented or avoided by Contractor through the exercise of due diligence, Contractor shall be entitled to a Change Order adjusting the Key Dates if and to the extent permitted under (y) Section 6.7 if caused by Force Majeure (including any of the events listed in Section 8.2A(i) through 8.2A(v)), and (z) Section 6.8 if caused by any member of Owner Indemnified Parties or any other person for whom Owner is responsible or a Third Party pursuant to Section 8.2C(c) above. In the event that any physical loss or damage to a Train (or any Equipment or Work incorporated or to be incorporated in such Train) arises from one or more of the events set forth in 8.2A(i) through 8.2A(v), and Owner elects to rebuild such physical loss or damage, Contractor shall be entitled to a Change Order to adjust the Contract Price to the extent such event adversely affects Contractor’s costs of performance of the Work, provided that Contractor complies with the requirements in Section 6.5 and the mitigation requirements in Section 6.10.

 

D.    For the avoidance of doubt, this Section 8.2 shall apply to any loss or damage to the Work caused by, arising out of or resulting from, any activities, events or omissions occurring in connection with this Agreement. Similarly, for the avoidance of doubt, the risk of loss and damage to the Trains 1 and 2 Liquefaction Facility shall be determined in accordance with Section 8.2 of the Trains 1 and 2 EPC Agreement, notwithstanding that such loss or damage to the Trains 1 and 2 EPC Agreement was caused

 

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by, arose out of or resulted from activities or events occurring during the performance of this Agreement.

 

 

 

ARTICLE 9 

INSURANCE AND LETTER OF CREDIT

 

	 	
			9.1

				
			Insurance.

			

 

 

A.    Provision of Insurance. The Parties shall provide the insurance as specified in Attachment O on terms and conditions stated therein.

 

 

B.    No Cancellation. All policies providing coverage hereunder shall contain a provision that at least [***] ([***]) Days’ prior notice shall be given to the non-procuring Parties and additional insureds prior to cancellation, non-renewal or material change in the coverage.

 

C.    Additional Insurance. Upon Owner’s request, and at Owner’s sole option, Contractor shall increase its insurance required under this Agreement (as long as such insurance coverage is available in the commercial insurance market); provided however, that the payment of any incremental increase in the cost of such insurance shall be reimbursed by Owner at cost via Change Order.

 

D.    Obligations Not Relieved. Anything in this Agreement to the contrary notwithstanding, the occurrence of any of the following shall in no way relieve Contractor from any of its obligations under this Agreement: (i) failure by Contractor to secure or maintain the insurance coverage required hereunder; (ii) failure by Contractor to comply fully with any of the insurance provisions of this Agreement; (iii) failure by Contractor to secure such endorsements on the policies as may be necessary to carry out the terms and provisions of this Agreement; (iv) the insolvency, bankruptcy or failure of any insurance company providing insurance to Contractor; (v) failure of any insurance company to pay any claim accruing under its policy; or (vi) losses by Contractor or any of its Subcontractors or Sub-subcontractors not covered by insurance policies.

 

 

E.    Failure to Provide Required Insurance. IN THE EVENT THAT LIABILITY FOR ANY LOSS OR DAMAGE IS DENIED BY THE UNDERWRITER OR UNDERWRITERS IN WHOLE OR IN PART DUE TO THE BREACH OF CONTRACTOR’S INSURANCE BY CONTRACTOR, OR IF CONTRACTOR FAILS TO MAINTAIN ANY OF THE CONTRACTOR’S INSURANCE HEREIN REQUIRED, THEN CONTRACTOR SHALL DEFEND, INDEMNIFY AND HOLD THE OWNER INDEMNIFIED PARTIES HARMLESS AGAINST ALL LOSSES WHICH WOULD OTHERWISE HAVE BEEN COVERED BY SAID INSURANCE.

 

F.    Unavailable Insurance. If any insurance (including the limits or deductibles thereof) hereby required to be maintained, other than insurance required by Applicable Law to be maintained, shall not be reasonably available in the commercial insurance market, Owner and Contractor shall not unreasonably withhold their agreement to waive such requirement to the extent that maintenance thereof is not so available; provided, however, that the Party shall first request any such waiver in writing from the other Party, which request shall be accompanied by written reports prepared by two (2)

 

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independent advisors, including insurance brokers, of recognized international standing certifying that such insurance is not reasonably available in the commercial insurance market (and, in any case where the required amount is not so available, explaining in detail the basis for such conclusions), such insurance advisers and the form and substance of such reports to be reasonably acceptable to the other Party; provided further that such waiver is permitted pursuant to any agreements between Owner and its Lenders; and provided further that with respect to the sum insured for the Builder’s Risk policy, the absence of an agreement by the Parties to the waiver shall not be required if the Parties cannot agree on the amount that is reasonably available in the commercial insurance market, in which case the amount reasonably available in the commercial insurance market for the Builder’s Risk policy, as determined prior to NTP shall be equal to the amount that is indicated in writing by Contractor’s broker Willis Towers Watson (‘WTW”), after review and discussion with Owner, as the sum insured under Contractor’s Builder’s Risk policy. If Owner does not agree with the value provided by WTW, then Owner may provide Contractor with a report from an insurance broker of recognized international standing (“Owner’s Broker”) setting forth a higher sum insured that is available in the commercial insurance market under a Builder’s Risk policy that is on substantially similar terms and conditions as Contractor’s proposed Builder’s Risk policy provided, however, Contractor is not subject to any additional risk under such substantially similar terms. If the higher sum insured available through Owner’s Broker is on such substantially similar terms and conditions as the Builder’s Risk policy proposed by Contractor through WTW, then the amount that is reasonably available in the commercial insurance market shall be the sum insured provided by Owner’s Broker; provided the Owner reimburses Contractor, as part of the Insurance Provisional Sum, of the additional costs of such increased limits. With the exception of the Builder’s Risk policy for which any such waiver is final, any such waiver shall be effective only so long as such insurance shall not be available and commercially feasible in the commercial insurance market.

 

	 	
			9.2

				
			Irrevocable Standby Letter of Credit.

			

 

 

A.    As a condition precedent to Contractor’s right to receive any payments under this Agreement (except payments expressly permitted pursuant to an LNTP), Contractor shall deliver to Owner an irrevocable standby letter of credit, naming Owner as beneficiary, in the amount of [***] percent ([***]%) of the Contract Price (as adjusted by Change Order) and in the form of Attachment R, and issued and confirmed by a commercial bank in the United States of America reasonably acceptable to Owner with a long-term rating of at least Investment Grade (“Letter of Credit”). Upon Owner’s written request, Contractor shall increase the dollar value of the Letter of Credit issued to Owner in proportion to any increases to the Contract Price pursuant to a Change Order, or the aggregate of multiple Change Orders, that equal or exceed [***] U.S. Dollars (U.S.

$[***]); provided that if Owner so requests an adjustment to the value of the Letter of Credit, Contractor shall be entitled to a Change Order for the cost of the increase in the Letter of Credit. If at any time the rating of the U.S. commercial bank that issued the Letter of Credit falls below Investment Grade, Contractor shall replace the Letter of Credit within [***] ([***]) Days with a letter of credit or, if permitted by Owner in its sole discretion, an equivalent instrument, issued by a commercial bank in the United States of America reasonably acceptable to Owner meeting such rating requirements. Owner shall have the

 

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right to draw down on or collect against such Letter of Credit upon Owner’s demand in the event of the following: (a) a Default by Contractor or the owing by Contractor to Owner under this Agreement for Liquidated Damages or any other liabilities, damages, costs, losses or expenses arising out of or relating to a breach of any obligation under this Agreement by Contractor, such Default or otherwise and (b) Owner has provided [***] ([***]) Business Days’ written notice to Contractor stating Owner’s intent to draw against the Letter of Credit and the amount to be drawn and specifying the reason for the draw on the Letter of Credit. The amount drawn on the Letter of Credit shall not be greater than the amount that Owner, at the time of the drawing, reasonably estimates is owed it under this Agreement for Liquidated Damages, liabilities, damages, costs, losses or expenses or is necessary to remedy the Default or breach of this Agreement. In addition to the foregoing draw rights, (i) Owner shall also have the right to draw down on or collect against the Letter of Credit for all remaining funds in the Letter of Credit upon Owner’s demand if Contractor has not, prior to [***] ([***]) Days before the then current expiration date, delivered to Owner a replacement letter of credit substantially identical to the Letter of Credit and from a U.S. commercial bank meeting the requirements in this Section 9.2 and extending the expiration date for the shorter of (a) a period of one (1) year, or (b) the expiration of such Defect Correction Period, and (ii) Owner shall also have the right to draw down on or collect against the Letter of Credit for all remaining funds available under such Letter of Credit upon Owner’s demand if the issuing bank is no longer Investment Grade and Contractor has not, within the applicable time period set forth in this Section 9.2, delivered to Owner a replacement letter of credit substantially identical to the Letter of Credit from a U.S. commercial bank meeting the requirements set forth in this Section 9.2. Except for sums due and owing for LNTP Work (if any), Contractor shall not be entitled to any compensation under this Agreement unless and until Contractor provides the Letter of Credit to Owner in accordance with this Section 9.2.

 

1.    Contractor may fulfill the requirements set forth in this Section 9.2 through multiple, co-existent Letters of Credit issued to Owner with no more than a total of two (2) Letters of Credit being provided under this Section 9.2; provided that each Letter of Credit shall meet the requirements of Section 9.2 and the amounts of such Letters of Credit shall, in the aggregate, equal an amount equal to [***] percent ([***]%) of the Contract Price (as may be increased or decreased pursuant to Section 9.2). Owner may in accordance with Section 9.2 draw down or collect on any one of the Letters of Credit, or all of the Letter of Credits, or any combination thereof, in any amounts Owner determines with respect to each Letter of Credit in order to collect all the amounts permitted under Section 9.2, which such allocation and collection on any one or more of the Letters of Credit shall be determined in Owner’s sole discretion. Any reference to “Letter of Credit” in this Agreement shall mean any one, any combination, or all of the Letters of Credit provided under this Agreement pursuant to this Section 9.2A.1, at Owner’s sole discretion.

 

B.    The amount of the Letter of Credit shall decrease to an aggregate amount equal to:

 

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1.    [***] percent ([***]%) of the Contract Price upon the commercial bank’s receipt from Owner of a written notice that (i) Substantial Completion has occurred (including Contractor’s payment of all Delay Liquidated Damages due and owing under this Agreement), and (ii) Contractor has achieved the Performance Guarantees or paid all Performance Liquidated Damages due and owing under this Agreement (including any potential Performance Liquidated Damage exposure based upon the results of the Performance Tests conduction prior to Substantial Completion);

 

2.    provided that the conditions of clauses (i) and (ii) of Section 9.2B.1 have occurred, [***] percent ([***]%) of the Contract Price upon the commercial’s bank receipt from Owner of written notice of the expiration of the period specified in clause (i) of the definition of “Defect Correction Period”; and

 

3.    [***] percent ([***]%) of the Contract Price within [***] ([***]) Days after the issuing commercial bank’s receipt from Owner of a written notice of the expiration of the period specified in clause (ii) of the definition of “Defect Correction Period”, except that the Letter of Credit shall remain in effect in an aggregate amount equal to the reasonable value of any claims that Owner has against Contractor arising out of this Agreement and which remain unresolved at the expiration of the period specified in clause (ii) of the definition of “Defect Correction Period.” Upon the resolution of such claims, the Letter of Credit shall be decreased to an aggregate amount equal to zero percent.

 

 

C.    The Letter of Credit shall remain in full force and effect from the issuance of the Letter of Credit through the expiration of the period specified in clause (ii) of the definition of “Defect Correction Period” (i.e., the [***] ([***]) month period following Substantial Completion) in accordance with Section 9.2B.3. Partial drawings are permitted under the Letter of Credit. No later than [***] ([***]) Days after the satisfaction of the conditions listed in, 9.2B.1, 9.2B.2, or 9.2B.3 above, Owner shall provide the commercial bank that issued the Letter of Credit with the written notice as specified in that particular section. No later than [***] ([***]) Days after expiration of the Defect Correction Period, Owner shall provide the commercial bank that issued Letter of Credit with written notice of the expiration of such period.

 

 

D.    Owner shall copy Contractor on the notices provided to the commercial bank described in Sections 9.2B and 9.2C.

 

 

 

ARTICLE 10 

OWNERSHIP OF DOCUMENTATION

 

10.1    Ownership of Work Product. Owner and Contractor acknowledge that during the course of, and as a result of, the performance of the Work and prior work related to the Train 3 Liquefaction Facility done by Contractor for Owner (including any work done by Contractor or any of its Affiliates under the ITB Agreement or any other agreements between the Parties related to the Project), Contractor or its Affiliates, Subcontractors or Sub-subcontractors will create or have created for the Project and will deliver to Owner certain written materials, plans, Drawings,

 

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Specifications, or other tangible manifestations of Contractor’s performance of the Work (hereinafter individually or collectively referred to as “Work Product”). Subject to Section 10.2, and to the use restrictions in the licenses described in Sections 10.7A-C, Work Product prepared by Contractor, its Affiliates, Subcontractors or Sub-Subcontractors shall be “works made for hire,” and all rights, title and interest to the Work Product, including any and all copyrights in the Work Product, shall be owned by Owner irrespective of any copyright notices or confidentiality legends to the contrary which may have been placed in or on such Work Product by Contractor, its Affiliates, Subcontractors, Sub-Subcontractors or any other Person. Contractor, its Subcontractors and its Sub-Subcontractors waive in whole all moral rights which may be associated with such Work Product. If, for any reason, any part of or all of the Work Product is not considered a work made for hire for Owner or if ownership of all right, title and interest in the Work Product shall not otherwise vest in Owner, then Contractor agrees, subject to Section 10.2, that such ownership and copyrights in the Work Product, whether or not such Work Product is fully or partially complete, shall be automatically assigned from Contractor to Owner without further consideration, and Owner shall thereafter own all right, title and interest in the Work Product, including all copyright interests. IF OWNER USES ANY WORK PRODUCT FOR PURPOSES OTHER THAN THOSE RELATING TO THE TRAIN 3 LIQUEFACTION FACILITY, AND CONTRACTOR IS NOT INVOLVED IN THE ENGINEERING, PROCUREMENT, OR CONSTRUCTION OF SUCH OTHER PROJECT, OWNER SHALL INDEMNIFY, DEFEND, AND HOLD HARMLESS CONTRACTOR INDEMNIFIED PARTIES WITH RESPECT TO ANY CLAIMS, DAMAGES, LOSSES, LIABILITIES, OR OTHER CAUSES OF ACTION ARISING FROM SUCH USE, REGARDLESS OF THE CAUSE SUCH CLAIMS, DAMAGES, LOSSES, LIABILITIES, OR OTHER CAUSES OF ACTION, INCLUDING THE SOLE OR JOINT NEGLIGENCE OF ANY CONTRACTOR INDEMNIFIED PARTIES. LIKEWISE, IF THIS AGREEMENT IS TERMINATED, AND OWNER THEREAFTER MODIFIES THE WORK PRODUCT WITHOUT THE INVOLVEMENT OF CONTRACTOR, AND SUCH MODIFIED WORK PRODUCT IS USED TO ENGINEER OR CONSTRUCT THE TRAIN 3 LIQUEFACTION FACILITY, AND SUCH MODIFICATIONS TO THE WORK PRODUCT INFRINGES UPON THE INTELLECTUAL PROPERTY RIGHTS OF A THIRD PARTY, OWNER SHALL INDEMNIFY, DEFEND AND HOLD HARMLESS CONTRACTOR INDEMNIFIED PARTIES WITH RESPECT TO ANY CLAIMS, DAMAGES, LOSSES, LIABILITIES OR OTHER CAUSES OF ACTION BROUGHT BY SUCH THIRD PARTY ARISING FROM SUCH MODIFICATION.

 

 

10.2    Contractor’s Intellectual Property and Third Party Intellectual Property. As between Owner and Contractor, Contractor and its Affiliates shall retain ownership of (i) all proprietary intellectual property rights owned by Contractor or its Affiliates prior to the Original Effective Date; (ii) any improvements to the intellectual property developed by Contractor or its Affiliates as part of this Agreement, including proprietary software, proprietary program settings or other proprietary engineering tools used, modified or adapted for performance of the Work; and

(iii) all proprietary intellectual property rights developed by Contractor or its Affiliates outside this Agreement, the ITB Agreement or any other agreements between the Parties related to the Project (hereinafter referred to as “Contractor’s Intellectual Property”), regardless of whether such Contractor’s Intellectual Property is included in the Work Product, and nothing in this Agreement shall result in a transfer of ownership of any Contractor’s Intellectual Property or the proprietary intellectual property owned and developed by Subcontractors or Sub-subcontractors (“Third Party Intellectual Property”). With respect to such Contractor’s Intellectual Property and Third Party Intellectual Property relating to the Train 3 Liquefaction Facility (but subject to Section 10.5 and to the use restrictions in the licenses described in Sections 10.7A-C), Contractor grants to Owner (when the Work Product is conveyed or assigned pursuant to Section 10.1) an irrevocable, perpetual, non-exclusive and royalty-free license (including with right to assign such license) to

 

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use, modify and copy such Contractor’s Intellectual Property and Third Party Intellectual Property for any purpose relating to (a) the Train 3 Liquefaction Facility (including any expansions thereto),

(b) the Expanded Facility, or (c) any other related facility, project or program that the Owner, including its Affiliates, joint ventures, partners and assigns, may choose to develop, expand, design, procure or construct, provided that with respect to (c), such license shall only apply to Authorized Documents. Subject to Sections 10.6 and 10.7, all Subcontracts and Sub-subcontracts shall contain provisions consistent with Section 10.1 and Section 10.2. Contractor warrants that it is entitled to grant licenses under any Contractor’s Intellectual Property and Third Party Intellectual Property (but subject to Section 10.6 below regarding APCI, and subject to Sections 10.7A 10.7B and 10.7C regarding the APCI License, BASF License and [***] License, respectively) necessary for Owner to exploit and have exploited its full and unrestricted rights regarding the use of the Work Product for any purpose relating to (a) the Train 3 Liquefaction Facility (including any expansions thereto), (b) the Expanded Facility or (c) [***], facility or program that the Owner, including its Affiliates, joint ventures, partners and assigns, may choose to develop or construct, provided that with respect to (c), such license shall only apply to Authorized Documents. If Owner or any of its Affiliates, joint ventures, partners and assigns uses Contractor’s Intellectual Property or Third Party Intellectual Property on any project, facility or program that does not involve Contractor or any of its Affiliates, Owner shall indemnify Contractor from any claims brought against Contractor relating to Contractor’s Intellectual Property or Third Party Intellectual Property.

 

 

10.3    Limitations on Use of Work Product. The Work Product, including all copies thereof, shall not be used by Contractor or its Subcontractors, Sub-subcontractors or any other Persons on any other project for a Person without first removing all information provided in Section 10.4, all Owner’s Confidential Information in Section 19.1(ii) and any other information identifying Owner, the Project, the Train 3 Liquefaction Facility or the Site. Pursuant to the requirements of this Section 10.3, Owner grants Contractor an irrevocable, perpetual and royalty- free license to use, modify and copy the Work Product for any other project, except for any of the following which may be in such Work Product: (i) any proprietary intellectual property rights owned by Owner or any Affiliate of Owner; or (ii) any proprietary intellectual property rights in which Owner or an Affiliate of Owner has a license. As a condition of using on another project any Work Product that Contractor has a license under this Section 10.3, Contractor shall remove from the Work Product any reference to the Project or Owner. The foregoing license and rights to use any Work Product granted to Contractor shall be subject to any limitations imposed on Contractor by third parties which have any ownership interest in such Work Product or any proprietary intellectual property embedded therein.

 

10.4    Owner Provided Documents. Owner represents that it owns or has a license to the information, data and documentation referenced within Attachment M of the ITB Agreement, and that Contractor had and continues to have the right to use such information as the basis of the design of the Train 3 Liquefaction Facility. All written materials, plans, drafts, specifications, computer files or other documents (if any) prepared or furnished to Contractor by Owner, the Owner Indemnified Parties or any of Owner’s other consultants, suppliers or contractors shall at all times remain the property of Owner, and Contractor shall not make use of any such documents or other media for any other project or for any other purpose other than to perform the Work and fulfill its obligations under the Agreement. All such documents and other media, including all copies thereof, shall be returned to Owner upon Final Completion or the earlier termination of this

 

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Agreement, except that Contractor and its Subcontractors may, subject to their respective confidentiality obligations as set forth in ARTICLE 19, retain one (1) record set of such documents or other media as required by Section 3.13A. Notwithstanding anything to the contrary in this Agreement, Contractor’s and its Subcontractors’ computer systems may automatically make and retain back-up copies of emails containing written materials, plans, drafts, specifications, computer files or other documents (if any) prepared or furnished by any member of the Owner Indemnified Parties or any of the Owner Indemnified Parties’ other consultants, suppliers or contractors and Contractor and any such Subcontractors may retain such copies in its archival or back-up computer storage for the period that Contractor and any such Subcontractors normally archive backed-up computer records, provided that Contractor and any such Subcontractors shall not access or use such archival or back-up copies for any purpose without the knowledge and approval of its respective legal counsel, and other than for compliance with any legal, regulatory or information audit purposes after the earlier of the completion of the Services or the termination of this Agreement; provided, further, that such copies are subject to the confidentiality obligations set forth in ARTICLE 19 until destroyed. Owner hereby grants to Contractor, its Affiliates and Subcontractors a non-exclusive, royalty-free, irrevocable, non-transferable license to use and modify Pre-Existing Owner Proprietary Work Product (and all Intellectual Property existing or referenced therein) to the extent required to perform Contractor’s obligations under this Agreement. For the purposes of this Agreement, “Pre-Existing Owner Proprietary Work Product” means Intellectual Property and written materials, plans, drafts, specifications, or computer files or other documents, owned by Owner or its Affiliates prior to the Original Effective Date or developed or acquired by Owner or its Affiliates independently of this Agreement.

 

 

10.5    License to Use Liquefaction Technology. Contractor represents that the rights granted in this ARTICLE 10 are sufficient for the engineering, procurement, construction, commissioning, pre-commissioning, start-up, testing, operation, maintenance and repair of the Train 3 Liquefaction Facility, including for natural gas pre-treatment, condensate production and the liquefaction of natural gas into LNG, practicing such technology in the Train 3 Liquefaction Facility, and transporting, making, selling, offering to sell, exporting, importing or offering to import throughout the world, condensate and LNG produced at the Train 3 Liquefaction Facility.

 

 

10.6    APCI Third Party Intellectual Property. Notwithstanding anything to the contrary, but subject to the APCI License described in Section 10.7A, (i) title to drawings, specifications and other data prepared by APCI, or containing the Third Party Intellectual Property of APCI, shall remain vested in APCI; and (ii) Owner’s disclosure of any APCI confidential information shall be subject to, and governed by, Owner’s separate non-disclosure agreement with APCI.

 

 

	 	
			10.7

				
			License to Use Liquefaction Technology.

			

 

A.    APCI License. Contractor shall, prior to and as a condition precedent to achievement of Substantial Completion, obtain and grant to Owner a non-exclusive, paid- up, irrevocable license and transferable right to (i) use, operate, maintain repair, and modify all Equipment furnished by APCI; (ii) practice the APCI natural gas liquefaction process in respect of such Equipment incorporated into the Train 3 Liquefaction Facility; and (iii) make, use and sell products obtained by such use, operation or practice of the Equipment furnished by APCI to any country in the world (the “APCI License”). The Parties shall,

 

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mutually agree to, and Contractor shall cause APCI to agree to, a form of assignment of the APCI License prior to NTP.

 

B.    BASF License. With respect to the BASF gas processing technologies (including BASF OASE technology and products) that Contractor is providing as part of the Work, Contractor shall, no later than [***] ([***]) Days after NTP, and in any event, prior to and as a condition precedent to achievement of Substantial Completion, obtain and grant to Owner an irrevocable, perpetual, non-exclusive and royalty-free sublicense (including with right to assign such license other than to a competitor to BASF) to use, modify and copy BASF gas processing technologies for any purposes related to the Train 3 Liquefaction Facility (the “BASF License”). For purposes of this Section 10.7B, “competitor of BASF” means any third party who – either itself, or whose Affiliate – develops, owns and/or markets to any other third parties a process for the removal of acid gases from gaseous streams by absorption in a liquid absorbent. The Parties shall mutually agree to, and Contractor shall cause BASF to agree to, a form of sublicense of the BASF License prior to NTP.

 

	 	
			C.

				
			[***].

			

 

 

 

ARTICLE 11 

COMPLETION AND PERFORMANCE LIQUIDATED DAMAGES

 

	 	
			11.1

				
			Notice and Requirements for RFFGI and RFSU.

			

 

 

A.    Notice and Requirements for RFFGI. No later than [***] ([***]) Months prior to the Guaranteed Substantial Completion Date, Contractor shall provide to Owner for its review and comment detailed RFFGI requirements, in the form of checklists, for Train 3. Once Contractor has incorporated all of Owner’s comments and/or proposed revisions to the RFFGI checklists, such RFFGI checklists shall form a part of the requirements for achieving RFFGI. Contractor shall comply with all requirements for RFFGI set forth in this Agreement, including those requirements set forth in the definition of the term RFFGI, Attachment A, Attachment M and the RFFGI checklists agreed by Owner and Contractor pursuant to this Section 11.1. Upon RFFGI of Train 3, Contractor shall certify to Owner in the form of Schedule L-1 (“RFFGI Certificate”) that all requirements under this Agreement for RFFGI have occurred, including all of the requirements specified in the applicable RFFGI checklist have been completed. The RFFGI Certificate shall be accompanied by all other supporting documentation as may be required under this Agreement to establish that the requirements for RFFGI have been met.

 

 

B.    Notice and Requirements of Ready for Start Up. No later than [***] ([***]) Months prior to the Guaranteed Substantial Completion Date, Contractor shall provide to Owner for its review and comment detailed RFSU requirements, in the form of checklists, for Train 3. Once Contractor has incorporated all of Owner’s comments and/or proposed revisions to such RFSU checklists, such RFSU checklists shall form a part of the requirements for achieving RFSU. Contractor shall comply with all requirements for RFSU set forth in this Agreement, including those requirements set forth in the definition of the term RFSU, Attachment A, Attachment M and the RFSU checklists agreed by Owner

 

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and Contractor pursuant to this Section 11.1B. Upon RFSU, Contractor shall certify to Owner in the form of Schedule L-3 (“RFSU Certificate”) that all requirements under this Agreement for RFSU have occurred, including all of the requirements specified in the RFSU checklist have been completed. The RFSU Certificate shall be accompanied by all other supporting documentation as may be required under this Agreement to establish that the requirements for RFSU have been met.

 

11.2    LNG Production Plan. At least [***] ([***]) months prior to RFSU, Contractor shall prepare and provide Owner with Contractor’s LNG production plan, prepared by Contractor using GECP, detailing Contractor’s estimated production of LNG prior to Substantial Completion, including the dates and volumes of LNG to be produced and the dates in which it forecasts that such LNG would need to be removed from the LNG storage tanks to allow for such LNG production. Such plan shall be in sufficient detail to allow for Owner to schedule for providing the means for the removal of LNG from the LNG storage tanks, whether by LNG Tankers or otherwise. Contractor shall provide Owner with monthly written notices updating its LNG production plan until [***] ([***]) months prior to RFSU and then weekly thereafter, provided, however, such written notices shall not require Owner to reschedule any LNG Tankers. As between Owner and Contractor, Owner shall own all LNG produced by Train 3 and will be the party responsible for providing the means for removal of such LNG. Owner will provide sufficient LNG tank capacity for Contractor to perform the Performance Tests based on Contractor’s LNG production plan.

 

 

11.3    Notice and Requirements for Substantial Completion. Contractor shall comply with all requirements for Substantial Completion herein, including as set forth in the definition of the term Substantial Completion and in Attachments A, S and T. For the initial Performance Test, Contractor shall give Owner not less than [***] ([***]) Days’ prior notice of its intention to commence each initial Performance Test, and, on the [***] ([***]th) Day and [***] ([***]th) Day immediately prior to Contractor’s intention to commence such testing activities, Contractor shall provide notice to Owner. For all Performance Tests other than the initial Performance Test, Contractor shall give the Owner not less than [***] ([***]) Days’ written notice of its intention to commence a Performance Test. To the extent not specified in Attachment S, the Parties shall, no later than [***] ([***]) Days prior to the Guaranteed Substantial Completion Date, agree upon final test procedures for the conduct of the Performance Tests applicable to Train 3 and the achievement of Substantial Completion. Except for the items listed in Attachment V, the natural gas feed pursuant to Section 4.6C, and operation personnel to be provided by Owner under Section 4.4, Contractor shall provide labor, equipment, supplies, and all other items necessary for the conduct of the Performance Tests. Contractor shall analyze the data obtained during all Performance Tests and ensure that such data reflects the performance standards required hereunder. A complete electronic native copy of all raw performance data and a detailed listing of all testing instrumentation utilized shall be provided to Owner at the completion of testing. Upon achieving all requirements under this Agreement for Substantial Completion, Contractor shall certify to Owner in the form of Schedule L-5 (“Substantial Completion Certificate”) that all of the requirements under this Agreement for Substantial Completion have occurred and provide Owner with a Substantial Completion Certificate, a Performance Test report, and analysis to Owner for Train 3. Each Performance Test report shall include, at minimum: (i) the raw data, (ii) the procedures and instrumentation utilized for the applicable Performance Test, (iii) test calculations and information in Microsoft Excel format, and a full explanation concerning same,

 

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for adjustments to the Guarantee Conditions, as and to the extent specified in Attachment S, and

(iv) any other supporting information used to demonstrate that the Work has met the Minimum Acceptance Criteria and other requirements of this Agreement. The Substantial Completion Certificate shall be accompanied by all other supporting documentation as may be required to establish that the requirements for Substantial Completion have been met.

 

11.4    Owner Acceptance of RFFGI, RFSU and Substantial Completion. Owner shall notify Contractor whether it accepts or rejects a RFFGI Certificate, RFSU Certificate or Substantial Completion Certificate, as the case may be, within [***] ([***]) Days following Owner’s receipt thereof. All Work shall continue during pendency of Owner’s review. Acceptance of such RFFGI Certificate, RFSU Certificate or Substantial Completion Certificate shall be evidenced by Owner’s signature on such RFFGI Certificate, RFSU Certificate or Substantial Completion Certificate, which shall be forwarded to Contractor with such notice. If Owner does not agree that RFFGI, RFSU or Substantial Completion has occurred (as the case may be), then Owner shall state the basis for its rejection in reasonable detail in a notice provided to Contractor. The Parties shall thereupon promptly and in good faith confer and make all reasonable efforts to resolve such issue. In the event such issue is not resolved within [***] ([***]) Business Days following the delivery by Owner of its notice, Owner and Contractor shall resolve the Dispute in accordance with the Dispute resolution procedures provided for under ARTICLE 18 herein. Owner’s acceptance shall not relieve Contractor of any of its obligations to perform the Work in accordance with the requirements of this Agreement. If Owner accepts Contractor’s Substantial Completion Certificate, the calculation of Delay Liquidated Damages shall be based on the date Owner received such certificate; provided, however, for the avoidance of doubt, this sentence shall not be construed to mean that Substantial Completion occurs on the date Owner received such certificate, as Substantial Completion shall occur only on the date Owner accepts Substantial Completion.

 

11.5    Performance Guarantees and Minimum Acceptance Criteria. Contractor shall achieve all Minimum Acceptance Criteria and Performance Guarantees or pay Performance Liquidated Damages, as described in greater detail in this Section 11.5. The Performance Tests for determining whether Train 3 achieves the Minimum Acceptance Criteria and Performance Guarantees are described in Attachment S. Performance Tests and any repeat Performance Tests shall be performed as specified in Attachment S.

 

 

A.    Minimum Acceptance Criteria Achieved. In the event that Contractor fails to achieve any of the Performance Guarantees, as evidenced by the Performance Test results, but meets all of the Minimum Acceptance Criteria, then Contractor shall prepare a corrective work plan based on information then currently known that describes in reasonable detail the process Contractor intends to follow to achieve such Performance Guarantees and submit such plan to Owner for its review and approval, not to be unreasonably withheld. Within [***] ([***]) Days after Owner’s receipt of such plan and Contractor’s achievement of, and notification to Owner and Owner’s acceptance of, all requirements for Substantial Completion (other than achievement of such Performance Guarantees), Contractor shall turn over Train 3 to Owner and take corrective actions to achieve such Performance Guarantees. Upon satisfaction of all of the requirements for Substantial Completion (other than achievement of such Performance Guarantees), Substantial Completion shall be achieved. And, for purposes of the application of Delay

 

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Liquidated Damages, Owner’s acceptance of Substantial Completion shall be deemed to have occurred on the date listed on the Substantial Completion Certificate; provided that all requirements under this Agreement for Substantial Completion were achieved on such date listed on the Substantial Completion Certificate (including achieving the Minimum Acceptance Criteria). Contractor shall only be responsible for the payment of applicable Delay Liquidated Damages owing up to the date of Substantial Completion. After Substantial Completion, Contractor shall perform corrective actions to achieve such Performance Guarantees. Owner shall give Contractor access to the Site sufficient to perform any corrective actions, but Contractor shall, at all times, perform such corrective actions so as not to interfere with the receipt of feed gas or loading of LNG into LNG Tankers or materially interfere with the production of LNG, unless otherwise agreed by Owner in its sole discretion, and Owner’s security and safety requirements. If Train 3 has not achieved all of the Performance Guarantees within [***] ([***]) Days after the Guaranteed Substantial Completion Date (as may be extended as specified below in this Section 11.5A, or as may be otherwise extended if the Parties agree in writing to so extend), then Contractor shall cease taking corrective actions to achieve the Performance Guarantees for Train 3, and in that event, Contractor shall pay to Owner in accordance with Section 13.2 the applicable Performance Liquidated Damages for such Performance Guarantees based on the results of the last performance test conducted by Contractor. The Performance Liquidated Damages shall be calculated in accordance with Attachment T. If Owner does not provide Contractor with access to the Site sufficient to perform such corrective actions in accordance with the corrective work plan agreed upon by the Parties within such [***] ([***]) Day period, such [***] ([***]) Day timeframe may, at Contractor’s written request, be extended to the extent necessary for Contractor to perform such corrective actions in accordance with the corrective work plan agreed by the Parties. Contractor’s liability under this Section 11.5A shall be in addition to any Delay Liquidated Damages owed under this Agreement.

 

B.    Minimum Acceptance Criteria Not Achieved. In the event that Train 3 fails to achieve any of the Minimum Acceptance Criteria, as evidenced by Performance Test results, by the Guaranteed Substantial Completion Date, as such date may be extended by Change Order as provided herein, then (i) Substantial Completion shall not occur and (ii) the provisions of Section 13.1 shall apply. In addition to the foregoing, Contractor shall prepare a corrective work plan to achieve such Minimum Acceptance Criteria and submit such plan to Owner for its review and comment. Contractor shall commence, on the date on which the Work for Train 3 or component thereof was shown, through the Performance Tests, to have failed to achieve one or more Minimum Acceptance Criteria for Train 3, to correct the Work to enable Train 3 to achieve all of the Minimum Acceptance Criteria and otherwise achieve Substantial Completion, and Contractor shall achieve all such Minimum Acceptance Criteria and otherwise achieve Substantial Completion no later than a period of [***] ([***]) months after the Guaranteed Substantial Completion Date (“Minimum Acceptance Criteria Correction Plan”). If, on the one hand, Train 3 has not achieved all of the Minimum Acceptance Criteria and Substantial Completion, upon the termination of the Minimum Acceptance Criteria Correction Period, then Owner may, in its sole discretion, either (a) grant Contractor an additional [***] ([***]) month period to achieve all such Minimum Acceptance Criteria and otherwise achieve Substantial Completion (“Additional Minimum Acceptance Criteria Period”) under the same terms and

 

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conditions as the first, including the application of Section 13.1, or (b) claim Contractor in Default pursuant to Section 16.1. In the event that Owner claims such a Default at the end of either the Minimum Acceptance Criteria Correction Period or the optional Additional Minimum Acceptance Criteria Period , Owner shall be entitled to any and all damages, costs, losses and expenses to which Owner is entitled under Section 16.1D. If, on the other hand, Train 3 has achieved all of the Minimum Acceptance Criteria and Substantial Completion during the Minimum Acceptance Criteria Correction Period (or during the optional Additional Minimum Acceptance Criteria Period, should Owner elect that option), then Contractor shall be liable to Owner for all Liquidated Damages under Section 13.1.

 

11.6    Punchlist. Prior to RFFGI, RFSU and Substantial Completion, as applicable, Owner and Contractor shall inspect the Work related to Train 3, and Contractor shall prepare a proposed a list of Punchlist items identified as needing to be completed or corrected as a result of such inspection. Contractor shall promptly provide the proposed Punchlist to Owner for its review and approval, together with an estimate of the time and cost necessary to complete or correct each Punchlist item. Contractor shall add to the proposed Punchlist any items that are identified by Owner during its review, and Contractor shall immediately initiate measures to complete or correct, as appropriate, any Punchlist item on Contractor’s proposed list or otherwise that Owner in the exercise of its reasonable judgment, believes must be completed or corrected for Train 3 to achieve Substantial Completion. Upon Contractor’s completion or correction of any Punchlist item necessary to achieve RFFGI, RFSU and Substantial Completion, as applicable, and the Parties agreement on Contractor’s proposed Punchlist, as modified by any Owner additions, such Punchlist shall govern Contractor’s performance of the Punchlist up to RFSU Substantial Completion or Final Completion, as applicable; provided that the failure to include any items on the Punchlist shall not alter the responsibility of Contractor to complete all Work in accordance with the terms and provisions of this Agreement. After Substantial Completion, Owner shall provide reasonable access to those portions of the Site sufficient for Contractor to perform its Punchlist so long as such activities do not interfere with the operation of the Train 3 Liquefaction Facility or Train 1 or Train 2 after substantial completion of Train 1 or Train 2 (as applicable) under the Trains 1 and 2 EPC Agreement and subject to Owner’s permit to work system. The Punchlist shall be completed within [***] ([***]) Days after Substantial Completion, failing which, Owner may, in addition to any other rights that it may have under this Agreement, complete such Punchlist at the expense of Contractor. In the event Owner elects to complete such Punchlist, Contractor shall immediately pay Owner (directly, by offset, or by collection on the Letter of Credit, at Owner’s sole discretion) all costs and expenses incurred in performing such Punchlist.

 

 

11.7    Notice and Requirements for Final Completion. Final Completion shall be achieved when all requirements for Final Completion under this Agreement, including those set forth in the definition of Final Completion under Section 1.1, have been satisfied. Upon Final Completion, Contractor shall certify to Owner in the form of Schedule L-6 (“Final Completion Certificate”) that all of the requirements under this Agreement for Final Completion have occurred. Owner shall notify Contractor whether it accepts or rejects the Final Completion Certificate within [***] ([***]) Days following Owner’s receipt thereof. Acceptance of such certificate shall be evidenced by Owner’s signature on such certificate, which shall be forwarded to Contractor with such notice. If Owner does not agree that Final Completion has occurred, then Owner shall state the basis for its rejection in reasonable detail in a notice provided to Contractor. The Parties shall thereupon promptly and in good faith confer and make all reasonable efforts to

 

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resolve such issue. In the event such issue is not resolved within [***] ([***]) Business Days following the delivery by Owner of its notice, Owner and Contractor shall resolve the Dispute in accordance with the Dispute resolution procedures provided for under ARTICLE 18; provided, however, if such deficiencies relate to the failure to complete the Punchlist, Owner may, in addition to any other rights that it may have under this Agreement, complete such Punchlist at the expense of Contractor in accordance with Section 11.6.

 

11.8    Partial Occupancy and Use. Prior to Contractor achieving Substantial Completion, Owner may, upon giving written notice to Contractor, occupy and use all or any portion of the buildings (excluding warehouses) identified in Attachment A for Train 3 (and with the Parties’ mutual agreement, any other portion of the Work related to such Train) then capable of functioning safely, provided that such occupancy or use is authorized by the Governmental Instrumentality (to the extent such authorization is necessary) and Owner’s insurance company or companies providing property insurance and builder’s risk coverage have consented to such partial occupancy or use (to the extent such consent is necessary) and Owner shall insure that portion of such buildings it takes occupancy and use upon taking such occupancy and use. Contractor shall assist Owner and take reasonable steps in obtaining consent of the insurance company or companies and applicable Governmental Instrumentalities. Immediately prior to such partial occupancy or use, Owner and Contractor shall jointly inspect the area to be occupied or portion of the Work to be used in order to determine and record the condition of the Work and all personnel and environmental safety aspects of the Work and Owner shall insure such building(s) immediately upon taking over such building(s). Such occupancy or use shall not in any way release Contractor or any surety of Contractor from any obligations or liabilities pursuant to this Agreement, including the obligation to engineer, procure and construct a fully operational natural gas liquefaction facility and export terminal within the required times set forth in the Key Dates and otherwise in accordance with all requirements of this Agreement, nor shall such occupancy or use be deemed to be an acceptance by Owner of such portion of the Work. For any portion of the Work that Owner occupies and uses pursuant to this Section 11.8, the Defect Correction Period for that portion of the Work shall commence upon Owner’s occupancy and use of such portion of the Work and the risk of loss for such portion of the Work shall transfer to Owner, notwithstanding Section

8.2; provided that, the risk of loss shall not transfer, and the Defect Correction Period shall not commence, for any Equipment housed but not operating within such portion of the Work (other than HVAC and lighting).

 

 

11.9    Advice and Assistance after Substantial Completion. After Substantial Completion and for a period of [***] ([***]) Days, Contractor shall, if requested by Owner, provide up to twenty (20) Contractor personnel who participated in the pre-commissioning, commissioning, start-up, operating and testing of Train 3 to provide advice and assistance to Owner in the operation of the Train 3 Liquefaction Facility under Owner’s direction and control. The names and positions of such personnel shall be provided to Owner for its approval, not be unreasonably withheld, within [***] ([***]) Days before the anticipated date to achieve Substantial Completion. Such personnel shall be paid on a cost-reimbursable basis in accordance with the rates specified in Schedule D-5 for a duration not to exceed [***] ([***]) Days, unless otherwise agreed to by the Parties in writing. Contractor shall not remove or replace such personnel, except as permitted under Section 2.2A. Owner may terminate the performance of such personnel at any time by providing two (2) weeks’ written notice to Contractor thereof at no

 

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additional cost, except for the value of the work performed by such personnel prior to termination in accordance with Schedule D-5.

 

11.10    Long-Term Obligations. No acceptance by Owner of any or all of the Work or any other obligations of Contractor under this Agreement, including acceptance of any RFFGI, RFSU, Substantial Completion, or Final Completion, nor any payment made hereunder, whether an interim or final payment, shall in any way release Contractor or any surety of Contractor from any obligations or liability pursuant to this Agreement, including Warranty obligations, any liabilities for which insurance is required or any other responsibility of Contractor, including the payment of any and all fines and penalties assessed to the extent caused by Contractor’s failure to comply with any Applicable Law. It is expressly understood and agreed by the Parties that nothing in this ARTICLE 11 shall in any way modify or alter Contractor’s obligations under ARTICLE 12 and ARTICLE 13 hereof.

 

 

 

ARTICLE 12 

WARRANTY AND CORRECTION OF WORK

 

	 	
			12.1

				
			Warranty.

			

 

 

A.    General. The warranties set forth in this ARTICLE 12 (each a “Warranty” or collectively, the “Warranties”) are in addition to any of the Minimum Acceptance Criteria or Performance Guarantees set forth in this Agreement. Any Work, or component thereof, that is not in conformity with any Warranty is defective (“Defective”) and contains a defect (“Defect”).

 

 

B.    Warranty of Work. Contractor hereby warrants that the Train 3 Liquefaction Facility and the Work, including Equipment, and each component thereof shall be:

 

 

1.    new, complete, and of suitable grade for the intended function and use in accordance with this Agreement;

 

2.    in accordance with all of the requirements of this Agreement, including in accordance with GECP, Applicable Law and Applicable Codes and Standards;

 

3.    free from encumbrances to title (provided that Owner has made payment to Contractor of all undisputed amounts owed to Contractor in accordance with the terms of this Agreement), as set forth in greater detail in Section 8.1;

 

4.    free from defects in design, material and workmanship, provided that tolerances or deviations in design, material and workmanship allowable by Applicable Law or Applicable Codes and Standards or GECP (where no such Applicable Law or Applicable Codes and Standards apply) shall not be considered a defect unless this Agreement sets forth stricter deviations or tolerances;

 

5.    capable of operating in accordance with all requirements of this Agreement, including Applicable Law and Applicable Codes and Standards; and

 

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6.    unless agreed to by Owner, composed and made of only proven technology, of a type in commercial operation at the Original Effective Date.

 

C.    Assignment and Enforcement of Subcontractor Warranties. Contractor shall, without additional cost to Owner, use all commercially reasonable efforts to obtain warranties from Major Subcontractors and Major Sub-subcontractors that meet or exceed the requirements of this Agreement; provided, however, Contractor shall not in any way be relieved of its responsibilities and liability to Owner under this Agreement, regardless of whether such Major Subcontractor or Major Sub-subcontractor warranties meet the requirements of this Agreement, as Contractor shall be fully responsible and liable to Owner for its Warranty and Corrective Work obligations and liability under this Agreement for all Work. All such warranties shall be deemed to run to the benefit of Owner and Contractor. Such warranties, with duly executed instruments assigning the warranties to Owner, shall be delivered to Owner upon Substantial Completion. All warranties provided by any Subcontractor or Sub-subcontractor shall be deemed to run to the benefit of Owner and Contractor, except that Owner may only directly enforce such Subcontractor or Sub- subcontractor warranty directly against such Subcontractor or Sub-subcontractor after the expiration of the applicable Defect Correction Period; provided that such Subcontractor or Sub-subcontractor warranty extends beyond such Defect Correction Period. Contractor agrees that Contractor’s Warranties, as provided under this ARTICLE 12 shall apply to all Work regardless of the provisions of any Subcontractor or Sub-subcontractor warranty, and such Subcontractor or Sub-subcontractor warranties shall not be a limitation of such Contractor Warranties. This Section 12.1C shall not in any way be construed to limit Contractor’s liability under this Agreement for the entire Work or its obligation to enforce Subcontractor warranties.

 

 

D.    Exceptions to Warranty. The Warranty excludes remedy, and Contractor shall have no liability to Owner, for damage or Defect occurring after Substantial Completion to the extent caused by: (i) improper repairs or alterations, misuse, neglect or accident by Owner or any Third Party; (ii) operation, maintenance or use of Work or any component thereof in a manner not in compliance with a material requirement of operations and maintenance manuals delivered by Contractor to Owner; or (iii) normal wear, tear and corrosion.

 

 

	 	
			12.2

				
			Correction of Work Prior to Substantial Completion.

			

 

 

A.    General Rights. All Work shall be subject to inspection by Owner, Lender, Independent Engineer, and either of their representatives at all times to determine whether the Work conforms to the requirements of this Agreement as specified herein, provided that Owner shall conduct its inspections during regular business hours and provide Contractor with reasonably prior written notice of such inspections (except that these limitations on notice and regular business hours to not apply to inspections at the Site, laydown areas in the vicinity of the Site, or any location at which Work is performed which is controlled by Contractor, and such inspections may occur at any time without restriction), provided further that this requirement for notice shall in no way limit Owner’s rights under Section 3.3. Contractor shall furnish Owner, Lender, Independent Engineer, and either of their representatives with access to all locations where Work is in progress on

 

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the Site, laydown areas in the vicinity of the Site, or any location where Work is performed which is controlled by Contractor and, upon reasonable advance notice, other Contractor and Major Subcontractor and Sub-Subcontractor locations where Work is performed. If prior to Substantial Completion, in the judgment of Owner, any Work is Defective, then Contractor shall, at its own cost and expense, promptly and on an expedited basis correct such Defective Work and any other portions of the Train 3 Liquefaction Facility damaged or affected by such Defective Work, whether by repair, replacement or otherwise upon written notice from Owner. Subject to Contractor’s right to pursue a Dispute under ARTICLE 18, the decision of Owner as to whether the Work is conforming or Defective shall be followed by Contractor, and Contractor shall comply with the instructions of Owner in all such matters while pursuing any such Dispute. Owner shall not direct how, or the timing of when, Contractor will perform such repair or replacement Work, and Contractor shall have the right to consider efficiency and cost concerns in scheduling such repair or replacement Work in preparing its plan for carrying out such repair or replacement Work, as long as its repair or replacement is performed and completed prior to Substantial Completion, provided that if (i) such Defective Work (a) relates to safety, (b) relates to Owner’s other contractors’ tie-ins to the Train 3 Liquefaction Facility or the Trains 1 and 2 Liquefaction Facility or structural integrity, or (c) impacts operation of Train 3, Train 1 or Train 2 or (ii) there will be additional Work coupled (physically, mechanically, electrically, operationally or otherwise) to the Defective Work, Contractor shall repair or replace such Defective Work within a reasonable time, provided further that if the Defective Work materially affects the operation or use of Train 3 after it has achieved Substantial Completion or Train 1 or Train 2 after they have achieved substantial completion under the Trains 1 and 2 EPC Agreement or presents an imminent threat to the safety or health of any Person, then Contractor shall commence to repair or replace the Defective Work within twenty-four (24) hours after receipt of notice of such Defective Work, and thereafter continue to proceed diligently to complete the same. If it is later determined that the Work was not Defective, then Owner shall reimburse Contractor for all costs incurred in connection with such repair or replacement (including markups for Contractor’s profits and overhead) and a Change Order shall be issued for such amount (including costs incurred in disassembling, making safe and reassembling such Work) and shall address any impact the repair or replacement may have had on the Key Dates. If Contractor fails to commence to repair (which such commencement may include detailed planning activities) or replace any Defective Work as required above, then Owner may (after providing [***] ([***]) Days’ prior written notice to Contractor, but such notice is not required if the Defective Work materially affects the operation or use of Train 3 after it has achieved Substantial Completion or Train 1 or Train 2 after they have achieved substantial Completion under the Trains 1 and 2 EPC Agreement or presents an imminent threat to the safety or health of any Person) repair or replace such Defective Work and the reasonable expense thereof shall be paid by Contractor.

 

B.    Witness Points. No later than [***] ([***]) Days after NTP, Contractor shall submit to Owner for its approval a proposed list of witness points for each item of the Work. Contractor shall modify such list of witness points based on any additional or different witness points Owner desires. After Owner’s approval of the witness points, Contractor shall provide Owner with at [***] ([***]) Days’ prior notice of the actual scheduled date of each of the tests relating to such witness points at the Site and [***]

 

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([***]) Days’ prior notice of the actual scheduled date of each of the tests relating to such witness points. Notwithstanding such right to witness tests, Owner, Lender, and Independent Engineer shall not interrupt or interfere with any test or require changes while witnessing such tests (unless such interruption relates to safety). Contractor shall cooperate with Owner, Lender and Independent Engineer if Owner, Lender or Independent Engineer elects to witness any additional tests, and Contractor acknowledges that Owner, Lender and Independent Engineer shall have the right to witness all tests being performed in connection with the Work. Owner’s, Lender’s and Independent Engineer’s right of inspection as set forth herein applies only to its witnessing of witness points for Work and shall not be construed to imply a limitation on Owner’s, Lender’s or Independent Engineer’s right to inspect any portion on the Work (including Equipment) at any time in its sole discretion and in accordance with this Agreement.

 

C.    No Obligation to Inspect. Owner’s, Lender’s, and Independent Engineer’s right to conduct inspections under Sections 12.2A and 12.2B shall not obligate Owner, Lender or Independent Engineer to do so. Neither the exercise of Owner, Lender or Independent Engineer of any such right, nor any failure on the part of Owner, Lender, or Independent Engineer to discover or reject Defective Work shall be construed to imply an acceptance of such Defective Work or a waiver of such Defect.

 

D.    Cost of Disassembling. The cost of disassembling, dismantling or making safe finished Work for the purpose of inspection, and reassembling such portions (and any delay associated therewith) shall be borne by Owner if such Work is found to conform with the requirements of this Agreement and by Contractor if such Work is found to be Defective.

 

 

	 	
			12.3

				
			Correction of Work After Substantial Completion.

			

 

 

A.    Corrective Work. If, during the Defect Correction Period, any Work for Train 3 is found to be Defective and Contractor is aware of such Defect or Owner provides written notice to Contractor within such Defect Correction Period regarding such Defect, Contractor shall, at its sole cost and expense, promptly and on an expedited basis (i) correct such Defective Work, whether by repair, replacement or otherwise, including any and all obligations in connection with such repair, replacement or otherwise, such as in and out costs and open and close costs, storage costs, labor, testing, Taxes, expediting costs, Texas Sales and Use Tax, transportation costs and any other costs necessary to fully correct the Work and (ii) any other physical loss or damage to any portions of the Train 3 Liquefaction Facility damaged or affected by such Defective Work (“Corrective Work”), provided, however, with respect to item (ii), Contractor’s liability shall be limited to [***] U.S. Dollars (U.S. $[***]) per occurrence in accordance with Section 17.1F, with a cumulative per occurrence of [***] U.S. Dollars (U.S. $[***]) under the Trains 1 and 2 EPC Agreement and this Agreement. Any such notice from Owner shall state with reasonable specificity the date of occurrence or observation of the Defect and the reasons supporting Owner’s belief that Contractor is responsible for performing Corrective Work. After Substantial Completion, Owner shall provide Contractor with access on the Train 3 Liquefaction Facility and the Trains 1 and 2 Liquefaction Facility and de-energize and de- pressurize the applicable Equipment sufficient to perform the Corrective Work, so long as

 

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such access does not interfere with the construction or operation of the Train 3 Liquefaction Facility or the Trains 1 and 2 Liquefaction Facility and subject to Owner’s permit to work system. In the event Contractor utilizes spare parts owned by Owner in the course of performing the Corrective Work, Contractor shall supply Owner free of charge with new spare parts equivalent in quality and quantity to all such spare parts used by Contractor as soon as possible following the utilization of such spare parts.

 

	 	
			B.

				
			Owner Right to Correct or Complete Defective Work.

			

 

1.    After Substantial Completion, and during the Defect Correction Period, and subject to Section 12.3B.2, if Contractor fails to commence the Corrective Work (which commencement may include the detailed planning associated with the on-Site implementation of the Corrective Work) within a reasonable period of time not to exceed [***] ([***]) Business Days after Contractor’s receipt of written notice from Owner or does not diligently perform such Corrective Work on an expedited basis (provided that Contractor’s timeline for performance shall be extended to the extent that Contractor is not provided reasonable access to those portions of the Train 3 Liquefaction Facility or the Trains 1 and 2 Liquefaction Facility that have achieved Substantial Completion so that Contractor may commence, continue and complete the Corrective Work), then Owner, upon written notice to Contractor, may (as its sole and exclusive remedy for the Defect (except for its right to enforce Contractor’s indemnification obligations under the Agreement) perform such Corrective Work, and Contractor shall be liable to Owner for all reasonable costs and expenses incurred by Owner in connection with such Corrective Work and shall pay Owner (directly, by offset or by collection on the Letter of Credit, at Owner’s sole discretion) an amount equal to such costs and expenses; or

 

2.    If any Defective Work (i) materially affects Train’s 1, Train 2’s or Train 3’s production or loading capabilities and would put the Train 3 Liquefaction Facility at risk of being unable to operate or (ii) presents an imminent threat to the safety or health of any Person and Owner knows of such Defective Work, Owner may (in addition to any other remedies that it has under this Agreement) perform the Corrective Work without giving prior notice to Contractor (provided that Owner shall give Contractor notice of such event as soon as reasonably possible after becoming aware of such Defective Work), and, in such event, Contractor shall be liable to Owner for all reasonable costs and expenses incurred by Owner in connection with such Corrective Work and shall pay Owner (directly, by offset or by collection on the Letter of Credit, at Owner’s sole discretion) an amount equal to such costs and expenses (which costs and expenses shall be adequately documented and supported by Owner). If Corrective Work is performed by Owner on Defective Work without providing any advance notice to Contractor, then Contractor’s obligations to perform Corrective Work on such Defective Work shall no longer apply to such Defective Work (it being understood that, at Contractor’s cost, and in Owner’s sole discretion, Owner may be able to obtain a replacement warranty from a third-party with respect to such item of Defective Work), provided that Contractor’s obligations under this Agreement with respect to all other portions

 

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of the Train 3 Liquefaction Facility (including an portion of Equipment) shall continue in full force and effect, including continuing in full force and effect with respect to any portions of the item of the same Equipment or portion of the Train 3 Liquefaction Facility in which Owner performed the Corrective Work (except for the specific Defect being addressed).

 

C.    Extended Defect Correction Period for Corrective Work. With respect to any Corrective Work except for the Corrective Work for which Contractor’s warranty obligations do not apply as specified in Section 12.3B.2, the Defect Correction Period for such Corrective Work shall be extended for an additional one (1) year from the date of the completion of such Corrective Work; provided, however, in no event shall (i) the Defect Correction Period for such Corrective Work be less than the original Defect Correction Period or, except for Structural Work, extend beyond [***] ([***]) Months after Contractor’s achievement of Substantial Completion, and (ii) the Defect Correction Period for Structural Work be extended beyond the original three (3) year period.

 

D.    Extension for Downtime. If at any time any Equipment or component of Equipment ceases to operate solely due to a Defect, then the Defect Correction Period for such Equipment shall be automatically extended without the further action of either Party by a period equal to the full duration of such period of non-performance, subject to a cap on the Defect Correction Period of [***] ([***]) Months after Contractor’s achievement of Substantial Completion and provided that this Section 12.3D shall not apply to Structural Work.

 

 

E.    Standards for Corrective Work. All Corrective Work shall be performed subject to the same terms and conditions under this Agreement as the original Work is required to be performed. Any change to parts or Equipment that would alter the requirements of this Agreement may be made only with prior approval of Owner.

 

F.    No Limitation. Nothing contained in this Section 12.3 shall be construed to establish a period of limitation with respect to other obligations which Contractor might have under this Agreement. However, Contractor shall not be obligated to perform any Corrective Work discovered after the expiration of the Defect Correction.

 

12.4    Assignability of Warranties. The Warranties made in this Agreement shall be for the benefit of Owner and its successors and assigns and the respective successors and assigns of any of them, and are fully transferable and assignable.

 

12.5    Waiver of Implied Warranties. EXCEPT FOR ANY EXPRESS WARRANTIES UNDER THIS AGREEMENT (INCLUDING THE WARRANTIES), THE PARTIES HEREBY (I) DISCLAIM ANY AND ALL OTHER WARRANTIES, INCLUDING THE IMPLIED WARRANTY OF MERCHANTABILITY AND IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND (II) WAIVE THE EQUITABLE REMEDY OF RESCISSION AVAILABLE UNDER THE LAW FOR A BREACH OF WARRANTY OR A CLAIM FOR DEFECTIVE WORK (BUT SUCH WAIVER SHALL NOT AFFECT ANY OF OWNER’S RIGHTS UNDER THIS AGREEMENT,

INCLUDING TERMINATION PURSUANT TO ARTICLE 16). The Parties agree that after Substantial Completion, the remedies set forth in this ARTICLE 12 shall be the Owner’s sole and exclusive remedy for a breach of warranty or any other claim for Defective Work, whether based in contract,

 

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tort (including negligence and strict liability) or otherwise, provided that this shall not limit Contractor’s obligations to achieve the Performance Guarantees, Contractor’s Punchlist obligations, Contractor’s indemnity obligations under this Agreement, or the Owner’s rights to withhold or draw on the letter of credit under this Agreement.

 

 

 

ARTICLE 13

GUARANTEE OF TIMELY COMPLETION, DELAY LIQUIDATED DAMAGES AND EARLY COMPLETION BONUS

 

 

13.1    Delay Liquidated Damages. If Substantial Completion occurs after the Guaranteed Substantial Completion Date, Contractor shall be liable and pay to Owner the amounts listed in Schedule E-2 per Day for each Day, or portion thereof, of delay until Substantial Completion occurs (the “Delay Liquidated Damages”) subject to the aggregate limit of such payments in Section 20.2A.

 

 

13.2    Payment of Liquidated Damages. With respect to any Liquidated Damages that Contractor is liable for under this Agreement, Owner, at its sole discretion, may either (i) invoice Contractor for such Liquidated Damages, and within [***] ([***]) Days after Contractor’s receipt of such invoice, Contractor shall pay Owner Liquidated Damages, (ii) withhold from Contractor amounts that are otherwise due and payable to Contractor in the amount of such Liquidated Damages, or (iii) collect on the Letter of Credit in the amount of such Liquidated Damages. In addition, with respect to the achievement of Substantial Completion, Contractor shall pay Owner all Delay Liquidated Damages, if any, owed under this Agreement for such respective Substantial Completion as a condition precedent to achieving Substantial Completion.

 

	 	
			13.3

				
			Early Completion Bonus.

			

 

A.    Early Completion Bonus for Production Prior to the Early Completion Bonus Date. If Substantial Completion occurs on or before the Guaranteed Substantial Completion Date, Owner shall pay Contractor a bonus in the amount of [***] (U.S.$ [***]) per MMBtu of the LNG that is both (i) produced by Train 3 between the period of first production of LNG from Train 3 and the Guaranteed Substantial Completion Date and (ii) loaded onto an LNG Tanker for delivery to Owner’s third-party customers prior to the Guaranteed Substantial Completion Date (“Early Completion Bonus for Train 3”).

 

B.    Early Completion Bonus for Production Prior to the DFCD Date. If Substantial Completion occurs on or before the Guaranteed Substantial Completion Date, then in addition to the Early Completion Bonus for Train 3, Owner shall pay Contractor a bonus in the amount of [***] (U.S.$ [***]) per MMBtu of the LNG that is both (i) produced by Train 3 on or after the Guaranteed Substantial Completion Date, and (ii) loaded onto an LNG Tanker for delivery to Owner’s third-party customers prior to the date on which the first commercial delivery is declared under the first LNG sales and purchase agreement to declare commercial deliveries for Train 1 (“DFCD Date for Train 3”).

 

C.    Owner shall pay any Early Completion Bonus accruing for Train 3 within ([***]) [***] Days after (i) the DFCD Date for Train 3 or the DFCD Date for Train 2, as applicable, and (ii) Owner’s receipt of an invoice for such Early Completion Bonus.

 

 

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ARTICLE 14

CONTRACTOR’S REPRESENTATIONS

 

	 	
			14.1

				
			Contractor Representations. Contractor represents and warrants, as applicable that:

			

 

 

A.    Corporate Standing. It is a corporation duly organized, validly existing and in good standing under the laws of Delaware, is authorized and qualified to do business in all jurisdictions in which the nature of the business conducted by it makes such qualification necessary and where failure so to qualify would have a material adverse effect on its financial condition, operations, prospects, taxes or business.

 

 

B.    No Violation of Law; Litigation. It is not in violation of any Applicable Law or judgment entered by any Governmental Instrumentality, which violations, individually or in the aggregate, would affect its performance of any obligations under this Agreement. There are no legal or arbitration proceedings or any proceeding by or before any Governmental Instrumentality, now pending or (to the best knowledge of Contractor) threatened against Contractor that, if adversely determined, could reasonably be expected to have a material adverse effect on the financial condition, operations, prospects or business, as a whole, of Contractor, or its ability to perform under this Agreement.

 

C.    Licenses. It is the holder of all business licenses and registrations required to permit it to operate or conduct its business now and as contemplated by this Agreement.

 

D.    No Breach. Neither the execution and delivery of this Agreement, nor the consummation of the transactions herein contemplated or compliance with the terms and provisions hereof will conflict with or result in a breach of, or require any consent under, the charter or by-laws of Contractor, or any Applicable Law or regulation, or any order, writ, injunction or decree of any court, or any agreement or instrument to which Contractor is a party or by which it is bound or to which it or any of its property or assets is subject, or constitute a default under any such agreement or instrument.

 

E.    Corporate Action. It has all necessary power and authority to execute, deliver and perform its obligations under this Agreement; the execution, delivery and performance by Contractor of this Agreement has been duly authorized by all necessary action on its part; and this Agreement has been duly and validly executed and delivered by Contractor and constitutes a legal, valid and binding obligation of Contractor enforceable in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, reorganization or moratorium or other similar laws relating to the enforcement of creditors’ rights generally.

 

F.    Financial Solvency. It is financially solvent, able to pay all debts as they mature and possesses sufficient working capital to complete the Work and perform its obligations hereunder. Guarantor, guaranteeing the obligations of Contractor pursuant to Section 21.17 of this Agreement, is financially solvent, able to pay all debts as they mature, and possesses sufficient working capital to perform the Parent Guarantees.

 

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ARTICLE 15 

OWNER’S REPRESENTATIONS

 

	 	
			15.1

				
			Owner Representations. Owner represents and warrants that:

			

 

 

A.    Corporate Standing. It is a limited liability company duly organized, validly existing and in good standing under the laws of Texas, is qualified to do business in all jurisdictions in which the nature of the business conducted by it makes such qualification necessary and where failure so to qualify would have a material adverse effect on its financial condition, operations, prospects or business.

 

 

B.    No Violation of Law; Litigation. It is not in violation of any Applicable Law, or judgment entered by any Governmental Instrumentality, which violations, individually or in the aggregate, would affect its performance of any obligations under this Agreement. There are no legal or arbitration proceedings or any proceeding by or before any Governmental Instrumentality, now pending or (to the best knowledge of Owner) threatened against Owner that, if adversely determined, could reasonably be expected to have a material adverse effect on the financial condition, operations, prospects or business, as a whole, of Owner, or its ability to perform under this Agreement.

 

C.    No Breach. Neither the execution and delivery of this Agreement, nor the consummation of the transactions herein contemplated or compliance with the terms and provisions hereof and thereof will conflict with or result in a breach of, or require any consent under, the operating agreement or by-laws of Owner, any Applicable Law, any order, writ, injunction or decree of any court, or any agreement or instrument to which Owner is a party or by which it is bound or to which it or any of its property or assets is subject, or constitute a default under any such agreement or instrument.

 

D.    Corporate Action. It has all necessary power and authority to execute, deliver and perform its obligations under this Agreement; the execution, delivery and performance by Owner of this Agreement has been duly authorized by all necessary action on its part; and this Agreement has been duly and validly executed and delivered by Owner and constitutes a legal, valid and binding obligation of Owner enforceable in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, reorganization or moratorium or other similar laws relating to the enforcement of creditors’ rights generally.

 

E.    Other Owners. Owner represents that it is authorized to bind and does bind all owners with an interest in the Project, or an interest in the product of the Work (or who may claim any such interest through Owner), to the releases, limitations on liability and other protections of Contractor set forth in this Agreement. Owner’s successors, assigns and any future recipient of any equity ownership in the Project or the Train 3 Liquefaction Facility shall be bound by the releases, limitations on liability and other protections of Contractor set forth in this Agreement, and Owner shall obtain the express written agreement of such equity participants to be bound by such releases, limitations of liability and other protections of Contractor.

 

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15.2    Financial Solvency. Upon issuance of NTP, it will be financially solvent, able to pay its debts as they mature and will have access to sufficient working capital to perform its obligations hereunder.

 

 

 

ARTICLE 16 

DEFAULT, TERMINATION AND SUSPENSION

 

	 	
			16.1

				
			Default by Contractor.

			

 

 

A.    Owner Rights Upon Contractor Default. Contractor shall be in “Default” if Contractor shall at any time (i) materially fails to prosecute the Work in a safe manner (i.e., in accordance with Applicable Law and the material provisions of the safety program developed by Contractor and approved by Owner under this Agreement); (ii) fail to commence the Work in accordance with the provisions of this Agreement; (iii) Abandon the Project; (iv) fail to maintain insurance required under this Agreement; (v) fail to provide or maintain the Parent Guarantee in accordance with Section 21.17; (vi) fail to discharge liens filed by any Subcontractor or Sub-subcontractor as required under this Agreement;

(vii) cause, by any action or omission, any material interference with operation of the Train 3 Liquefaction Facility or its pipeline contractors or subcontractors, unless Contractor is entitled to stop, suspend, terminate or refuse to perform Work under this Agreement; (viii) fail to make payment to Subcontractors for labor or materials owed in accordance with the respective Subcontracts (provided that Owner has made payment to Contractor of all undisputed amounts owed to Contractor, in accordance with the terms of this Agreement;

(ix) disregard Applicable Law or Applicable Codes and Standards; (x) fail to comply with any material provision of this Agreement; (xi) fail to commence performance of changed Work under a Change Directive issued by Owner under this Agreement in accordance with Section 6.1E; (xii) be in Default pursuant to Section 5.5H or Section 11.5B; (xiii) violate the provisions of Section 21.10; or (xiv) become, or if the Guarantor becomes, insolvent, has a receiver appointed, makes a general assignment or filing for the benefit of its creditors or files for bankruptcy protection. In addition, a default under the Trains 1 and 2 EPC Agreement by Contractor shall, if elected by Owner in its sole discretion, constitute a Default by Contractor under this Agreement, and in that case the liability for a default under the Trains 1 and 2 EPC Agreement is handled under article 16 of the Trains 1 and 2 EPC Agreement and the liability for a Default under this Agreement is handled in this ARTICLE 16.

 

 

B.    Following Owner’s notice to Contractor specifying the general nature of the Default, unless Contractor cures such condition within the applicable Cure Period in Section 16.1C, Owner, at its sole option and without prejudice to any other rights that it has under this Agreement and without further notice to Contractor, may (1) take such steps as are necessary to overcome the Default condition, in which case Contractor shall be liable to Owner for any and all reasonable, additional costs, and expenses incurred by Owner in connection therewith, or (2) terminate for Default Contractor’s performance of all or any part of the Work.

 

C.    The applicable “Cure Period” with respect to the Defaults referenced in Section 16.1A for items (i) through (x), the Cure Period shall be [***] ([***]) Days after

 

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Owner’s notice of Default to Contractor, unless such Default cannot be cured within such [***] ([***]) Day period, in which case the Cure Period shall be a total of [***] ([***]) Days after Owner’s notice (or as may be extended if agreed in writing by Owner and Contractor). There is no cure period for any other Default except as expressly stated in this Section 16.1C.

 

D.    Additional Rights of Owner Upon Termination. In the event that Owner terminates this Agreement for Default in accordance with Section 16.1A, then Owner may, at its sole option, (i) enter onto the Site and any other locations where Contractor is performing the Work, for the purpose of completing the Work, (ii) take possession of all Equipment and spare parts wherever located, and all Construction Equipment on the Site that is not owned by Contractor, in any case which required to complete the Work (subject to the terms of any lease agreements for Construction Equipment with non-Affiliated third parties), Work Product (subject to the use restrictions in the licenses described in Section 10.7A-C), including Drawings and Specifications, Permits, and licenses, (iii) take assignment of any or all of the Subcontracts, and/or (iv) complete the Work either itself or through others. If the unpaid balance of the Contract Price shall exceed all damages, costs, losses and expenses incurred by Owner (including the cost to complete the Train 3 Liquefaction Facility, all attorneys’ fees, consultant fees and litigation or arbitration expenses, costs to complete the Work, Liquidated Damages described in this Section 16.1D below and any and all damages for failure of performance and interest on such expense from the date such expense was incurred by Owner at the rate specified in Section 7.7), then such excess shall be paid by Owner to Contractor, but such amount shall not be paid until after Final Completion has been achieved. If such amount incurred by Owner shall exceed the unpaid balance of the Contract Price, then, at Owner’s sole option and subject to the limitation of liability set forth in Section 20.1, (a) Contractor shall pay Owner the difference within [***] ([***]) Days after Owner submits to Contractor written notice of the difference, (b) Owner shall have the right and authority to offset or collect on the Letter of Credit in the amount of such difference in accordance with Section 9.2A, or (c) Owner may elect to pursue both options (a) and (b). Subject to Section 20.1, Contractor’s liability under this Section 16.1D is in addition to any other liability provided for under this Agreement and Owner shall have the right and authority to set off against and deduct from any such excess due Contractor by Owner any other liability of Contractor to Owner under this Agreement. Owner agrees to act reasonably to mitigate any costs it might incur in connection with any termination for Default. In the event of a termination for Default, subject to Section 20.1, the Parties agree that Owner shall be entitled to “damages for delay” under this Section 16.1D which, for purposes of this Section 16.1D only, means (i) Delay Liquidated Damages owed by Contractor to Owner under this Agreement up to the date of the termination (provided that such termination date was after the Guaranteed Substantial Completion Date), and (ii) during the period upon the date of termination and ending on the date Substantial Completion is achieved by a substitute contractor, the costs incurred during such period by such substitute contractor to accelerate such substitute contractor’s work in order to achieve the Guaranteed Substantial Completion Date (as may have been adjusted by Change Order) contemplated under this Agreement. Notwithstanding anything to the contrary, in no event shall Owner be entitled under this Section 16.1D to recover restitutionary damages. Any damages recoverable by Owner

 

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under this Section 16.1D shall be subject to the limitation of liability in Section 20.1, and the waiver and release in Section 20.4.

 

E.    Obligations Upon Termination. Upon termination for Default, Contractor shall (i) immediately discontinue Work on the date and to the extent specified in the notice,

(ii) place no further orders for Subcontracts, Equipment, or any other items or services except as may be necessary for completion of such portion of the Work as is not discontinued, (iii) inventory, maintain and turn over to Owner all Construction Equipment that is not owned by Contractor (subject to the terms of any lease agreements with non- Affiliated third parties) or any other equipment or other items provided by Owner for performance of the terminated Work, (iv) promptly make every reasonable effort to procure assignment or cancellation upon terms satisfactory to Owner of all Subcontracts and rental agreements to the extent they relate to the performance of the Work that is discontinued;

(v) cooperate with Owner in the transfer of Work Product, including Drawings and Specifications, Permits, licenses and any other items or information and disposition of Work in progress so as to mitigate damages; (vi) comply with other reasonable requests from Owner regarding the terminated Work; (vii) thereafter execute that portion of the Work as may be necessary to preserve and protect Work already in progress and to protect Equipment at the Site or in transit thereto, and to comply with any Applicable Law and any Applicable Codes and Standards; and (viii) perform all other obligations under Section 16.1D.

 

 

16.2    Termination for Convenience by Owner. Owner shall have the right to terminate for convenience Contractor’s performance of all of the Work by providing Contractor with [***] ([***]) Days’ written notice of termination. Upon termination for convenience, Contractor shall

(i) immediately discontinue the Work on the date and to the extent specified in such notice, (ii) place no further orders for Subcontracts, Equipment, or any other items or services except as may be necessary for completion of such portion of the Work as is not discontinued, (iii) promptly make every reasonable effort to procure cancellation upon terms satisfactory to Owner of all Subcontracts and rental agreements to the extent they relate to the performance of the Work that is discontinued unless Owner elects to take assignment of any such Subcontracts, (iv) assist Owner in the maintenance, protection, and disposition of Work in progress, (v) cooperate with Owner for the efficient transition of the Work, (vi) cooperate with Owner in the transfer of Work Product (and to the use restrictions in the licenses described in Section 10.7A-C), including Drawings and Specifications, Permits, licenses and any other items or information and disposition of Work in progress; and (vii) thereafter execute only that portion of the Work as may be necessary to preserve and protect Work already in progress and to protect Equipment at the Site or at any other location or in transit thereto, and to comply with any Applicable Law and Applicable Codes and Standards and Owner may, at its sole option, take assignment of any or all of the Subcontracts. Upon termination for convenience, Contractor shall be paid (a) the reasonable value of the Work performed (the basis of payment being based on the terms of this Agreement) prior to termination, less that portion of the Contract Price previously paid to Contractor (including down payments, if any, made under this Agreement), plus (b) actual costs that are reasonably incurred and properly demonstrated by Contractor to have been sustained in the performance of the Work up to the date of termination or as a result of termination, plus associated profit margin of [***] percent ([***]%) on such costs, submitted in accordance with this Section 16.2, but in no event shall Contractor be entitled to receive any amount for unabsorbed overhead, contingency, risk, or anticipatory profit.

 

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Contractor shall submit all reasonable direct close-out costs to Owner for verification and audit within [***] ([***]) Days following the effective date of termination (or as may be extended if agreed in writing by the Parties). If no Work (including Work under an LNTP) has been performed by Contractor at the time of termination, Contractor shall be paid the sum of one hundred U.S. Dollars (U.S. $100) for its undertaking to perform.

 

16.3    Suspension of Work. Owner may, for any reason, upon written notice to Contractor at any time and from time to time, suspend carrying out the Work or any part thereof, whereupon Contractor shall suspend the carrying out of such suspended Work for such time or times as Owner may require and shall take reasonable steps to minimize any costs associated with such suspension. During any such suspension, Contractor shall properly protect and secure such suspended Work in such manner as Owner may reasonably require. Unless otherwise instructed by Owner, Contractor shall during any such suspension maintain its staff and labor on or near the Site and otherwise be ready to proceed expeditiously with the Work upon receipt of Owner’s further instructions. Except where such suspension ordered by Owner is the result of or due to the fault or negligence of Contractor or any Subcontractor or Sub-subcontractor, Contractor shall be entitled to the reasonable costs (including actual, but not unabsorbed, overhead, contingency, risk and reasonable profit) of such suspension under a Change Order, including demobilization and remobilization costs, if necessary, along with appropriate supporting documentation to evidence such costs, and a time extension to the Key Dates if and to the extent permitted under Section 6.8. Upon receipt of notice to resume suspended Work, Contractor shall promptly resume performance of the Work to the extent required in the notice. In no event shall Contractor be entitled to any additional profits or damages due to such suspension beyond the costs for the suspension as defined above.

 

 

16.4    Suspension by Contractor. Notwithstanding anything to the contrary in this Agreement, Contractor shall have the responsibility at all times to prosecute the Work diligently and shall not suspend, stop or cease performance hereunder or permit the prosecution of the Work to be delayed; provided, however, subject to Owner’s right to withhold or offset payment to Contractor as specified in this Agreement, if Owner fails to pay undisputed amounts due and owing to Contractor and Owner has failed to cure such failure within [***] ([***]) Days beyond the date such amounts became due, then, following Contractor’s [***] ([***]) Day notice to Owner to cure such failure (which [***] ([***]) Days’ notice may be given during the [***] ([***]) Day window for non-payment), Contractor may suspend performance of the Work until Contractor receives such undisputed amounts. Contractor shall be entitled to a Change Order for any costs incurred by Contractor resulting from such suspension and shall be entitled to an extension in the applicable Key Dates to the extent permitted under Section 6.8.

 

	 	
			16.5

				
			Termination by Contractor.

			

 

A.    Non-Payment. Contractor may terminate this Agreement if, continuing at the time of such termination, Contractor has stopped the performance of all Work under this Agreement pursuant to Section 16.4 for [***] ([***]) Days, and after the expiration of such [***] ([***]) Day period, Contractor gives Owner notice specifying the nature of the default and its intent to terminate this Agreement, and Owner fails to cure such default within [***] ([***]) Days after receipt of Contractor’s notice. Contractor shall be entitled to interest on all late payments in accordance with Section 7.7.

 

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B.    Extended Owner’s Suspension. After issuance of NTP and subject to Section 16.5A, if Owner suspends substantially all of the Work for an aggregate period exceeding three hundred sixty five (365) consecutive Days and such suspension is not due to the fault or negligence of Contractor, Subcontractor or Sub-subcontractor, or an event of Force Majeure, then Contractor shall have the right to terminate this Agreement by providing [***] ([***]) Days written notice to Owner.

 

C.    Termination in the Event of Delayed Notice to Proceed. Contractor may terminate this Agreement pursuant to Section 5.2D.3.

 

D.    Termination for an Extended Force Majeure Event. After Owner’s issuance of NTP, if any single Force Majeure event causes suspension of substantially all of the Work for a period exceeding three hundred sixty-five (365) Days, then Contractor shall have the right to terminate this Agreement by providing [***] ([***]) Days written notice of termination to Owner.

 

E.    Contractor’s Right to Terminate. This Section 16.5 sets forth Contractor’s only rights to terminate this Agreement. In the event of any such termination under this Section 16.5, Contractor and Owner shall have the rights and obligations set forth in Section 16.2. Contractor’s sole right to terminate this Agreement is set forth in this Section 16.5.

 

ARTICLE 17 

INDEMNITIES

 

17.1    Contractor’s General Indemnification. In addition to its indemnification, defense and hold harmless obligations contained elsewhere in this Agreement, Contractor shall release, and as a separate obligation, indemnify, hold harmless and defend Owner Indemnified Parties from and against any and all damages, costs, losses and expenses (including reasonable attorneys’ fees, and litigation or arbitration expenses) arising out of any of the following:

 

A.    ACTUAL OR ALLEGED FAILURE OF CONTRACTOR OR ANY OF ITS SUBCONTRACTORS OR SUB-SUBCONTRACTORS TO COMPLY WITH APPLICABLE LAW APPLICABLE CODES AND STANDARDS OR SAFETY REQUIREMENTS UNDER THIS AGREEMENT, PROVIDED THAT CONTRACTOR’S INDEMNITY OBLIGATIONS UNDER THIS SECTION 17.1A SHALL BE LIMITED TO THE REASONABLE SETTLEMENT PAYMENTS RELATED TO SUCH FAILURE AND ANY FINES, PENALTIES OR OTHER SANCTIONS IMPOSED BY ANY GOVERNMENTAL INSTRUMENTALITY (INCLUDING THE COST OF REQUIRED REMEDIAL MEASURES) ON OWNER INDEMNIFIED PARTIES OR ON THE WORK RESULTING FROM THE FAILURE OF CONTRACTOR OR ANY OF ITS SUBCONTRACTORS OR SUB-SUBCONTRACTORS TO COMPLY WITH APPLICABLE LAW, APPLICABLE CODES AND STANDARDS OR SAFETY REQUIREMENTS UNDER THIS AGREEMENT, EXCLUDING ANY PORTION OF THE AMOUNT OF SUCH FINES, PENALTIES OR OTHER SANCTIONS ATTRIBUTABLE TO VIOLATIONS BY OWNER OF APPLICABLE LAW, INCLUDING PRIOR VIOLATIONS BY OWNER OF APPLICABLE LAWS RELATING TO HAZARDOUS MATERIALS FOR WHICH OWNER IS RESPONSIBLE UNDER SECTION 17.4;

 

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B.    ACTUAL OR ALLEGED CONTAMINATION, SPILL, RELEASE, DISCHARGE OR POLLUTION ARISING OUT OF ACTS OR OMISSIONS OF CONTRACTOR’S OR ANY SUBCONTRACTOR’S OR SUB-SUBCONTRACTOR’S USE, HANDLING OR DISPOSAL OF HAZARDOUS MATERIALS GENERATED OR BROUGHT ON THE SITE OR ANY OTHER PROPERTY WHERE WORK IS PERFORMED DURING THE PERFORMANCE OF THE WORK AND

Contractor’s failure to stop Work and notify Owner of Pre-Existing Hazardous Materials as required by Section 3.17, subject to the cap set forth therein;

 

	 	
			C.

				
			A FAILURE BY CONTRACTOR OR ANY SUBCONTRACTOR OR SUB-

			

subcontractor to pay Taxes for which such Person is Liable;

 

D.    FAILURE OF CONTRACTOR TO MAKE PAYMENTS TO ANY SUBCONTRACTOR IN ACCORDANCE WITH THE RESPECTIVE SUBCONTRACT, PROVIDED THAT, OWNER HAS MADE PAYMENT TO CONTRACTOR OF ALL UNDISPUTED AMOUNTS OWED TO CONTRACTOR IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT;

 

E.    DAMAGE TO OR DESTRUCTION OF PROPERTY OF CONTRACTOR INDEMNIFIED PARTIES OR ANY OF ITS SUBCONTRACTORS, SUB-SUBCONTRACTORS OR ANY EMPLOYEE, OFFICER OR DIRECTOR OF ANY OF THEM (EXCLUDING THE WORK, TRAIN 3, TRAIN 1 AND TRAIN 2), TO THE EXTENT THAT SUCH PROPERTY DAMAGE OR DESTRUCTION IS CAUSED BY THE NEGLIGENCE OF ANY CONTRACTOR INDEMNIFIED PARTY OR ANY SUBCONTRACTOR OR

 

Sub-subcontractor;

 

 

F.    DAMAGE TO OR DESTRUCTION OF TRAIN 1 OR TRAIN 2 OR THE COMMON FACILITIES INCORPORATED THEREIN (AFTER THE EARLIER OF SUBSTANTIAL COMPLETION OF EACH SUCH TRAIN OR TERMINATION OF THE TRAINS 1 AND 2 EPC AGREEMENT) OR TRAIN 3 (AFTER THE EARLIER OF SUBSTANTIAL COMPLETION OR TERMINATION OF THIS AGREEMENT)

to the extent arising out of or resulting from the negligence, in connection with the Work, of any member of the Contractor Indemnified Parties or any Subcontractor or Sub-subcontractor or anyone directly or indirectly employed by them, PROVIDED THAT Contractor’s liability hereunder for damage to or destruction of (i) Train 1 or Train 2 or the common facilities incorporated therein (after the earlier of substantial completion of each such Train or termination of the Trains 1 and 2 EPC Agreement) shall not exceed [***] U.S. Dollars (U.S.$ [***]) per occurrence or (ii) Train 3 (after the earlier of Substantial Completion or termination of this Agreement) shall not exceed [***] U.S. Dollars (U.S.$ [***]) per occurrence, and Owner hereby releases Contractor from any such liability in excess thereof. For the avoidance of doubt, any such liability of Contractor shall not exceed [***] U.S. Dollars (U.S.$ [***]) per occurrence, with a cumulative per occurrence of [***] U.S. Dollars (U.S. $[***]) under the Trains 1 and 2 EPC Agreement and this Agreement;

 

G.    DAMAGE TO OR DESTRUCTION OF PROPERTY OF OWNER INDEMNIFIED PARTIES (EXCLUDING THE WORK, TRAIN 3, TRAIN 1 AND TRAIN 2) TO THE EXTENT ARISING OUT OF OR RESULTING FROM THE NEGLIGENCE, IN CONNECTION WITH THE WORK, OF ANY

 

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member of the Contractor Indemnified Parties or any Subcontractor or Sub- subcontractor or anyone directly or indirectly employed by them, provided that Contractor’s liability hereunder for damage to or destruction of such property of Owner Indemnified Parties (excluding the Work, Train 3, Train 1, the Project, Train 1 and Train 2) shall not exceed [***] U.S. Dollars (U.S.$ [***]) per occurrence, with a cumulative per occurrence of [***] U.S. Dollars (U.S.

$[***]) under the Trains 1 and 2 EPC Agreement and this Agreement, and Owner

hereby releases Contractor from any such liability in excess thereof;

 

H.    PERSONAL OR BODILY INJURY TO, ILLNESS, OR DEATH OF ANY EMPLOYEE, OFFICER OR DIRECTOR OF ANY CONTRACTOR INDEMNIFIED PARTY, ANY SUBCONTRACTOR OR SUB-SUBCONTRACTOR OR ANY EMPLOYEE, OFFICER OR DIRECTOR OF ANY OF THEM, REGARDLESS OF THE CAUSE SUCH DAMAGES, COSTS, LOSSES AND EXPENSES, INCLUDING THE SOLE OR JOINT NEGLIGENCE OF ANY OWNER INDEMNIFIED PARTIES;

 

I.    DAMAGE TO OR DESTRUCTION OF PROPERTY OF ANY PERSON (OTHER THAN THE PROPERTY COVERED IN SECTION 17.1E, 17.1F, 17.1G AND 17.2A) TO THE EXTENT THAT SUCH INJURY IS CAUSED BY THE NEGLIGENCE OF ANY CONTRACTOR INDEMNIFIED PARTY OR ANY SUBCONTRACTOR OR SUB-SUBCONTRACTOR; OR

 

	 	
			J.

				
			PERSONAL OR BODILY INJURY TO, ILLNESS, OR DEATH OF ANY PERSON (OTHER

			

 

than those persons covered in Section 17.1H and Section 17.2B) to the extent that such injury is caused by the negligence of any Contractor Indemnified Party or any Subcontractor or Sub-subcontractor.

 

 

17.2    Owner’s Indemnity for Personal Injury and Property Damage. OWNER SHALL RELEASE, AND AS A SEPARATE OBLIGATION INDEMNIFY, HOLD HARMLESS AND DEFEND CONTRACTOR INDEMNIFIED PARTIES FROM AND AGAINST ANY AND ALL DAMAGES, COSTS, LOSSES AND EXPENSES (INCLUDING REASONABLE ATTORNEYS’ FEES, AND LITIGATION OR ARBITRATION EXPENSES) DIRECTLY OR INDIRECTLY ARISING OUT OF ANY OF THE FOLLOWING:

 

 

A.    DAMAGE TO OR DESTRUCTION OF PROPERTY OF THE OWNER INDEMNIFIED PARTIES (OTHER THAN THE WORK, CONSTRUCTION EQUIPMENT, OR TRAIN 3, TRAIN 1 AND TRAIN 2), TO THE EXTENT THAT SUCH DAMAGE OR DESTRUCTION IS CAUSED BY THE NEGLIGENCE OF ANY OWNER INDEMNIFIED PARTY.

 

 

B.    PERSONAL OR BODILY INJURY TO, ILLNESS, OR DEATH OF ANY EMPLOYEE, OFFICER OR DIRECTOR OF ANY OWNER INDEMNIFIED PARTY, REGARDLESS OF THE CAUSE SUCH DAMAGES, COSTS, LOSSES AND EXPENSES, INCLUDING THE SOLE OR JOINT NEGLIGENCE OF ANY CONTRACTOR INDEMNIFIED PARTIES.

 

17.3    Indemnification of Port Indemnified Parties. To the fullest extent permitted by Applicable Law, Contractor shall indemnify, hold harmless and defend Port Indemnified Parties from any and all damages, claims, losses, costs and expenses arising out of or resulting from the acts or omissions of any member of the Contractor Indemnified Parties or any Subcontractor or Sub-subcontractor on account of (1) personal or bodily injury, illness or death of any person, (2) damage or destruction to property of any Person or (3) fines and penalties attributable to any

 

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violation of any Applicable Law. Contractor’s defense and indemnity obligations in this Section

17.3 extend to and include liabilities caused or alleged to be caused by strict liability, fault, concurrent, or contributory partial negligence or fault of any of the Port Indemnified Parties, provided, however, that in no event shall Contractor’s indemnification obligations hereunder include claims arising out of the willful misconduct, sole or gross negligence or fraud of any Port Indemnified Parties.

 

17.4    Pre-Existing Hazardous Material. SUBJECT TO SECTION 17.1B, OWNER SHALL BE RESPONSIBLE FOR AND SHALL SAVE, INDEMNIFY, DEFEND AND HOLD HARMLESS THE CONTRACTOR INDEMNIFIED PARTIES FROM THE ABATEMENT, REMEDIATION, TRANSPORT, AND DISPOSAL OF ANY PRE-EXISTING HAZARDOUS MATERIAL AT THE SITE, AND EXCLUDING ANY DAMAGES, COSTS, EXPENSES OR LOSSES TO THE EXTENT RELATED TO CONTRACTOR’S OR ANY OF ITS SUBCONTRACTOR’S OR SUB-SUBCONTRACTOR’S FAILURE TO STOP WORK AND NOTIFY OWNER UPON ENCOUNTERING PRE-EXISTING HAZARDOUS MATERIAL AT THE SITE AS REQUIRED BY SECTION 3.17 (AND SUBJECT TO THE CAP SET FORTH IN SUCH SECTION).

 

	 	
			17.5

				
			Patent and Copyright Indemnification.

			

 

A.    IN ADDITION TO ITS INDEMNIFICATION, DEFENSE AND HOLD HARMLESS OBLIGATIONS CONTAINED ELSEWHERE IN THIS AGREEMENT AND SUBJECT TO OWNER’S COMPLIANCE WITH THE USE RESTRICTIONS IN THE LICENSES DESCRIBED IN SECTION 10.7 WITH RESPECT TO THE CONFIDENTIAL INFORMATION OR OTHER PROPRIETARY RIGHTS THAT ARE THE SUBJECT MATTER OF THE VIOLATION, INFRINGEMENT, MISAPPROPRIATION OR IMPROPER USE, CONTRACTOR SHALL INDEMNIFY, HOLD HARMLESS AND DEFEND OWNER INDEMNIFIED PARTIES FROM ANY AND ALL THIRD PARTY CLAIMS FOR DAMAGES, COSTS, LOSSES AND EXPENSES (INCLUDING REASONABLE ATTORNEYS’ FEES AND LITIGATION OR ARBITRATION EXPENSES) ARISING OUT OF ANY ACTUAL OR ASSERTED VIOLATION OR infringement of any domestic or foreign patents, copyrights or trademarks or other intellectual property, or any misappropriation or improper use of confidential information or other proprietary rights, in each case attributable to Contractor or any Subcontractor or Sub-subcontractor in connection with the Work.

 

B.    IN THE EVENT THAT ANY VIOLATION OR INFRINGEMENT FOR WHICH CONTRACTOR IS RESPONSIBLE TO INDEMNIFY THE OWNER INDEMNIFIED PARTIES AS SET FORTH IN SECTION 17.5A RESULTS IN ANY SUIT, CLAIM, TEMPORARY RESTRAINING ORDER OR A PRELIMINARY INJUNCTION IS GRANTED IN CONNECTION WITH SECTION 17.5A, CONTRACTOR SHALL, IN ADDITION TO ITS OBLIGATION UNDER SECTION 17.5A, MAKE EVERY REASONABLE EFFORT, BY GIVING A SATISFACTORY BOND OR OTHERWISE, TO SECURE THE SUSPENSION OF THE INJUNCTION OR RESTRAINING ORDER. IF, IN ANY SUCH SUIT OR CLAIM, THE WORK, THE TRAIN 3 LIQUEFACTION FACILITY, OR ANY PART, COMBINATION OR PROCESS THEREOF, IS HELD TO CONSTITUTE AN INFRINGEMENT AND ITS USE IS PRELIMINARILY OR PERMANENTLY ENJOINED, CONTRACTOR SHALL PROMPTLY MAKE EVERY REASONABLE EFFORT TO SECURE FOR OWNER A LICENSE, AT NO COST TO OWNER, AUTHORIZING CONTINUED USE OF THE INFRINGING WORK. IF CONTRACTOR IS UNABLE TO SECURE SUCH A LICENSE WITHIN A REASONABLE TIME, CONTRACTOR SHALL, AT ITS OWN EXPENSE AND WITHOUT IMPAIRING PERFORMANCE REQUIREMENTS, EITHER REPLACE THE AFFECTED

 

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Work, in whole or part, with non-infringing components or parts or modify the same so that they become non-infringing. Following Substantial Completion, Owner shall render such assistance as Contractor may reasonably require in the defense of any claim of infringement pursuant to Section 17.5A.

 

17.6    Lien Indemnification. Should any Subcontractor or Sub-subcontractor or any other Person acting through or under Contractor or any Subcontractor or Sub-subcontractor file a lien or other encumbrance against all or any portion of the Work, the Site, the Train 3 Liquefaction Facility or the Trains 1 and 2 Liquefaction Facility, Contractor shall, at its sole cost and expense, remove or discharge, by payment, bond or otherwise, such lien or encumbrance within [***] ([***]) Days after Contractor’s receipt of written notice from Owner notifying Contractor; provided that, Owner has made payment to Contractor of all undisputed amounts owed to Contractor in accordance with the terms of this Agreement. If Contractor fails to remove and discharge any such lien or encumbrance within such [***] ([***]) Day period, then Owner may, in its sole discretion and in addition to any other rights that it has under this Agreement, at law or equity, take any one or more of the following actions:

 

A.    REMOVE AND DISCHARGE SUCH LIEN AND ENCUMBRANCE USING WHATEVER MEANS THAT OWNER, IN ITS SOLE DISCRETION, DEEMS APPROPRIATE, INCLUDING THE PAYMENT OF SETTLEMENT AMOUNTS THAT IT DETERMINES IN ITS SOLE DISCRETION AS BEING NECESSARY TO DISCHARGE SUCH LIEN OR ENCUMBRANCE. IN SUCH CIRCUMSTANCE, CONTRACTOR SHALL BE LIABLE TO OWNER FOR ALL DAMAGES, COSTS, LOSSES AND EXPENSES (INCLUDING ALL ATTORNEYS’ FEES AND LITIGATION OR ARBITRATION EXPENSES, AND SETTLEMENT PAYMENTS) INCURRED BY OWNER ARISING OUT OF OR RELATING TO SUCH REMOVAL AND DISCHARGE. ALL SUCH DAMAGES, COSTS, LOSSES AND EXPENSES SHALL BE PAID BY CONTRACTOR NO LATER THAN [***] ([***]) DAYS AFTER RECEIPT OF EACH INVOICE FROM OWNER;

 

B.    SEEK AND OBTAIN AN ORDER GRANTING SPECIFIC PERFORMANCE FROM A COURT OF COMPETENT JURISDICTION, REQUIRING THAT CONTRACTOR IMMEDIATELY DISCHARGE AND REMOVE, BY BOND, PAYMENT OR OTHERWISE, SUCH LIEN OR ENCUMBRANCE. THE PARTIES EXPRESSLY AGREE THAT OWNER SHALL BE ENTITLED TO SUCH SPECIFIC PERFORMANCE AND THAT CONTRACTOR SHALL BE LIABLE TO OWNER FOR ALL DAMAGES, COSTS, LOSSES AND EXPENSES (INCLUDING ALL ATTORNEYS’ FEES, CONSULTANT FEES AND LITIGATION OR ARBITRATION EXPENSES) INCURRED BY OWNER ARISING OUT OF OR RELATING TO SUCH SPECIFIC PERFORMANCE ACTION. CONTRACTOR AGREES THAT THE FAILURE TO DISCHARGE AND REMOVE ANY SUCH LIEN OR ENCUMBRANCE WILL GIVE RISE TO IRREPARABLE INJURY TO OWNER AND OWNER’S AFFILIATES, AND FURTHER, THAT OWNER AND SUCH OWNER AFFILIATES WILL NOT BE ADEQUATELY COMPENSATED BY DAMAGES; OR

 

C.    CONDUCT THE DEFENSE OF ANY ACTION IN RESPECT OF (AND ANY COUNTERCLAIMS RELATED TO) SUCH LIENS OR ENCUMBRANCES AS SET FORTH IN SECTION 17.7 BELOW, WITHOUT REGARD TO CONTRACTOR’S RIGHTS UNDER SUCH SECTION.

 

17.7    Legal Defense. Not later than [***] ([***]) Days after receipt of written notice from the Indemnified Party to the Indemnifying Party of any claims, demands, actions or causes of action asserted against such Indemnified Party for which the Indemnifying Party has

 

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indemnification, defense and hold harmless obligations under this Agreement, whether such claim, demand, action or cause of action is asserted in a legal, judicial, arbitral or administrative proceeding or action or by notice without institution of such legal, judicial, arbitral or administrative proceeding or action, the Indemnifying Party shall affirm in writing by notice to such Indemnified Party that the Indemnifying Party will indemnify, defend and hold harmless such Indemnified Party and shall, at the Indemnifying Party’s own cost and expense, assume on behalf of the Indemnified Party and conduct with due diligence and in good faith the defense thereof with counsel selected by the Indemnifying Party and reasonably satisfactory to such Indemnified Party; provided, however, that such Indemnified Party shall have the right to be represented therein by advisory counsel of its own selection, and at its own expense; and provided further that if the defendants in any such action or proceeding include the Indemnifying Party and an Indemnified Party and the Indemnified Party shall have reasonably concluded that there may be legal defenses available to it which are different from or additional to, or inconsistent with, those available to the Indemnifying Party, such Indemnified Party shall have the right to select up to one (1) separate counsel to participate in the defense of such action or proceeding on its own behalf at the expense of the Indemnifying Party. In the event of the failure of the Indemnifying Party to perform fully in accordance with the defense obligations under this Section 17.7, such Indemnified Party may, at its option, and without relieving the Indemnifying Party of its obligations hereunder, so perform, but all damages, costs, losses and expenses (including all attorneys’ fees, consultant fees and litigation or arbitration expenses, settlement payments and judgments) so incurred by such Indemnified Party in that event shall be reimbursed by the Indemnifying Party to such Indemnified Party, together with interest on same from the date any such cost and expense was paid by such Indemnified Party until reimbursed by the Indemnifying Party at the interest rate set forth in this Agreement.

 

 

	 	
			17.8

				
			Enforceability.

			

 

A.    EXCEPT AS OTHERWISE SET FORTH ABOVE, THE INDEMNITY, DEFENSE AND HOLD HARMLESS OBLIGATIONS FOR PERSONAL INJURY, ILLNESS OR DEATH OR PROPERTY DAMAGE UNDER THIS AGREEMENT SHALL APPLY REGARDLESS OF WHETHER THE INDEMNIFIED PARTY WAS CONCURRENTLY NEGLIGENT (WHETHER ACTIVELY OR PASSIVELY), IT BEING AGREED BY THE PARTIES THAT IN THIS EVENT, THE PARTIES’ RESPECTIVE LIABILITY OR RESPONSIBILITY FOR SUCH DAMAGES, COSTS, LOSSES AND EXPENSES UNDER THIS AGREEMENT SHALL BE DETERMINED IN ACCORDANCE WITH THE PRINCIPLES OF COMPARATIVE NEGLIGENCE.

 

 

B.    IN THE EVENT THAT ANY INDEMNITY PROVISIONS IN THIS AGREEMENT ARE CONTRARY TO THE LAW GOVERNING THIS AGREEMENT, THEN THE INDEMNITY OBLIGATIONS APPLICABLE HEREUNDER SHALL BE APPLIED TO THE MAXIMUM EXTENT ALLOWED BY

Applicable Law.

 

C.    THE WAIVERS AND DISCLAIMERS OF LIABILITY, RELEASES FROM LIABILITY, EXCLUSIONS, LIMITATIONS AND APPORTIONMENTS OF LIABILITY AND INDEMNITIES EXPRESSED IN THIS AGREEMENT SHALL EXTEND TO EACH PARTY’S DIRECTORS, OFFICERS AND EMPLOYEES.

 

 

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ARTICLE 18 

DISPUTE RESOLUTION

 

18.1    Negotiation. In the event that any claim, dispute, controversy, difference, disagreement, or grievance (of any and every kind or type, whether based on contract, tort, statute, regulation or otherwise) arising out of, connected with or relating in any way to this Agreement (including the construction, validity, interpretation, termination, enforceability or breach of this Agreement) (“Dispute”) cannot be resolved informally within [***] ([***]) Days after the Dispute arises (or such longer period of time if agreed to in writing by the Parties), either Party may give written notice of the Dispute (“Dispute Notice”) to the other Party requesting that a representative of Owner’s senior management and Contractor’s senior management meet in an attempt to resolve the Dispute. Each such senior executive shall have full authority to resolve the Dispute and shall promptly begin discussions in an effort to agree on a resolution of the Dispute within [***] ([***]) Days after receipt by the non-notifying Party of such Dispute Notice, with such negotiations being held in Harris County, Texas or at another location if agreed upon by the Parties in writing. In no event shall this Section 18.1 be construed to limit either Party’s right to take any action under this Agreement, including Owner’s rights under Section 16.1, provided that such rights are not the subject of the Dispute.

 

18.2    Arbitration. If the Dispute is not resolved by negotiation within [***] ([***]) Days after the date of a Party’s written notice requesting that representatives of each Party’s senior management meet (or such other time as may be agreed in writing by the Parties), then the Parties agree that the Dispute shall be decided by final and binding arbitration. Such arbitration shall be held in Harris County, Texas, unless otherwise agreed by the Parties, shall be administered by the AAA’s office in Harris County, Texas, shall be conducted by three (3) arbitrators (or for Claims involving less than [***] U.S. Dollars (U.S.$ [***]), one (1) arbitrator) chosen in accordance with Section 18.2, and shall, except as otherwise agreed by the Parties, be governed by the AAA’s Construction Industry Arbitration Rules and Mediation Procedures then in effect (“AAA Rules”). For the purposes of determining the number of arbitrators, the total value of the Claims and counterclaims reasonably asserted by all the Parties shall be used to determine whether the [***]

U.S. Dollars (U.S.$ [***]) threshold has been met. The arbitration tribunal shall determine the rights and obligations of the Parties according to the laws of Texas, excluding its conflict of law principles; provided, however, the law applicable to the validity of the arbitration clause, the enforcement of any award and any other question of arbitration law or procedure shall be the Federal Arbitration Act, 9 U.S.C.A. § 2. Issues concerning the arbitrability of a matter in dispute shall be decided by a court with proper jurisdiction. The arbitration shall be conducted in the English language and all submissions shall be made in the English language or with an English translation; provided that witnesses may provide testimony in a language other than English if a simultaneous English translation is provided. The Parties shall be entitled to engage in reasonable discovery, including the right to production of relevant and material documents by the opposing Party and the right to take depositions reasonably limited in number, time and place; provided that in no event shall any Party be entitled to refuse to produce relevant and non-privileged documents or copies thereof requested by the other Party within the time limit set and to the extent required by order of the arbitration tribunal. All Disputes regarding discovery shall be promptly resolved by the arbitration tribunal. The award of the arbitration tribunal shall be in writing, state the reasons upon which the award thereof is based, be signed by all arbitrators, and be final and binding. At Owner’s sole option, any other person may be joined as an additional party to any

 

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arbitration conducted under this Section 18.2, provided that the party to be joined is or may be liable to either Party in connection with all or any part of any Dispute between the Parties. The Parties agree that judgment on the arbitration award may be entered by any court having jurisdiction thereof. Without limiting the foregoing, if there are common issues of fact or law in connection with any Disputes in an arbitration conducted under this ARTICLE 18 and any disputes in connection with any arbitration under the Trains 1 and 2 EPC Agreement, either Party may consolidate the two arbitrations.

 

A.    The arbitrators for any arbitration under Section 18.2 shall be selected in accordance with this Section 18.2.

 

1.    For Claims less than [***] U.S. Dollars (U.S.$ [***]), Owner and Contractor shall jointly select one arbitrator within [***] ([***]) Days of the filing of the demand for arbitration with the AAA, or if the Parties fail to appoint such arbitrator within the applicable time period, then the AAA shall appoint the arbitrator in accordance with the AAA rules.

 

2.    For Claims [***] U.S. Dollars (U.S.$ [***]) or more, Owner and Contractor shall each appoint one (1) arbitrator within [***] ([***]) Days of the filing of the demand for arbitration with the AAA, and the two (2) arbitrators so appointed shall select the presiding arbitrator within [***] ([***]) Days after the latter of the two (2) arbitrators has been appointed by the Parties. If either Party fails to appoint its party-appointed arbitrator or if the two (2) party-appointed arbitrators cannot reach an agreement on the presiding arbitrator within the applicable time period, then the AAA shall appoint the remainder of the three (3) arbitrators not yet appointed. Each arbitrator shall be and remain at all times wholly impartial, and, once appointed, no arbitrator shall have any ex parte communications with any of the Parties or any other parties to the Dispute concerning the arbitration or the underlying Dispute, provided, however, that the Parties may have ex parte communications with their appointed arbitrators until the third arbitrator is selected.

 

 

18.3    Continuation of Work during Dispute. Notwithstanding any Dispute, it shall be the responsibility of Contractor to continue to prosecute all of the Work diligently and in a good and workmanlike manner in conformity with this Agreement. Except to the extent provided in Sections 16.4 or 16.5, Contractor shall have no right to cease performance hereunder or to permit the prosecution of the Work to be delayed. Owner shall, subject to its right to withhold or offset amounts pursuant to this Agreement, continue to pay Contractor undisputed amounts in accordance with this Agreement; provided, however, in no event shall the occurrence of any negotiation or litigation or arbitration prevent or limit either Party from exercising its rights under this Agreement, including either Party’s right to terminate pursuant to ARTICLE 16.

 

 

 

ARTICLE 19 

CONFIDENTIALITY

 

19.1    Contractor’s Obligations. Contractor hereby covenants and warrants that Contractor and its employees, officers, directors and agents shall not (without in each instance

 

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obtaining Owner’s prior written consent) disclose, make commercial or other use of, or give or sell to any Person any of the following information, whether disclosed prior to or after the Original Effective Date: (i) any Work Product other than to Subcontractors or Sub-subcontractors as necessary to perform the Work or (ii) any other information relating to the business, products, services, research or development, actual or potential clients or customers, financing of the Project, designs, methods, discoveries, trade secrets, research, development or finances of Owner or any Owner Affiliate, or relating to similar information of a third party who has entrusted such information to Owner or any Owner Affiliate (hereinafter individually or collectively, “Owner’s Confidential Information”). Prior to disclosing any information in clause (i) of this Section 19.1 to any Subcontractor or Sub-subcontractor necessary to perform the Work, Contractor shall bind such Subcontractor or Sub-subcontractor to confidentiality obligations substantially similar to those contained in this Section 19.1. Nothing in this Section 19.1 or this Agreement shall in any way prohibit Contractor or any of its Subcontractors or Sub-subcontractors from making commercial or other use of, selling, or disclosing any of their respective Contractor’s Intellectual Property or Third Party Intellectual Property, nor be used to curtail Contractor’s rights under Section 10.3 (provided that Contractor complies with its obligations in Section 10.3).

 

19.2    Owner’s Obligations. Owner hereby covenants and warrants that Owner and its employees and agents shall not (without in each instance obtaining Contractor’s prior written consent) disclose, make commercial or other use of, or give or sell to any Person (i) any estimating or pricing methodologies or estimating or pricing information of Contractor or its Subcontractors relating to the Work, including the Equipment, or any schedule information of Contractor or its Subcontractors relating to the Work, each of which is conspicuously marked and identified in writing as confidential by Contractor, (ii) any confidential technical information provided by APCI, BASF or [***] under this Agreement, which is conspicuously marked and identified in writing as confidential by Contractor, or (iii) any Subcontractor Proprietary Information provided by those Subcontractors which are specifically identified in Part II of Attachment G (hereinafter individually or collectively, “Contractor’s Confidential Information”). The Parties agree that Owner may disclose Contractor’s Confidential Information to any member of the Owner Indemnified Parties, Owner’s (or Owner’s Affiliates’) consultants, contractors (provided that with respect to (i) above, such consultants and contractors are not Competitors of Contractor, with the term “Competitors of Contractor” meaning any entity that is an EPC contractor in the LNG liquefaction industry), underwriters and attorneys, a bona fide prospective or actual purchaser of all or a portion of Owner’s or any Owner Indemnified Party’s assets or ownership interests, a bona fide prospective assignee of all or a portion of Owner’s interest in this Agreement, any proposed or actual users of the Train 3 Liquefaction Facility, any prospective or actual buyers of LNG, Lenders, financial advisors and their respective representatives, rating agencies or any other party in relation to project financing for or the development of (a) the Project (including any expansion of the Facilities) or (b) the Expanded Facility or any other facility or project that Owner, including its Affiliates, joint ventures, partners or assigns, may choose to develop, design, procure or construct, provided that with respect to (b), such license shall only apply to Authorized Documents, further provided that Owner binds such persons to the confidentiality obligations no less restrictive than those contained in this Section 19.2; and further provided that APCI, BASF and [***] confidential technical information is not disclosed to direct competitors to APCI in the licensing of LNG liquefaction process technology and to direct competitors to BASF and [***] in the licensing of acid gas removal process technology without the applicable APCI’s, BASF’s or [***]’s approval. Direct competitors to APCI in the licensing of LNG liquefaction process

 

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technology are [***], Black & Veatch, Linde and Chart. Direct competitors to BASF and [***] in the licensing of acid gas removal process technology are Sulfinol and Huntsman. Contractor shall, from time to time, have the right to inform Owner by notice in writing whether any other parties are to be treated as competitors of APCI, BASF or [***] with respect to the aforementioned technology, as the case may be, for the purposes of this Section 19.2, and such competitors of APCI, BASF or [***] shall be treated as competitors upon approval of Owner (not to be unreasonably withheld). Other than as set forth in this Section 19.2, Owner shall not be restricted in any way from the disclosure of the Work Product. Owner shall be entitled to disclose to Persons that portion of Contractor’s Intellectual Property and Third Party Intellectual Property for which Owner has a license to use to the extent such disclosure is consistent with the purposes for which such license is granted pursuant to Section 10.2 and provided that such recipients are bound to the confidentiality obligations similar to those in this Section 19.2 to the extent information disclosed to such recipients contains Contractor’s Confidential Information. Further, Owner acknowledges that it has entered into that certain Confidentiality Agreements with the Technology Licensors (as required by the Technology Licensors), as amended, modified and/or supplemented from time to time (“Owner/TL CAs”). Notwithstanding anything to the contrary herein, the Owner/TL CAs are the exclusive document governing the access, use, handling, safeguarding, disclosure, and all other treatment by Owner of all data and other information of the applicable Technology Licensors provided pursuant to this Agreement. Owner hereby agrees to defend, indemnify and hold Contractor Indemnified Parties harmless from and against all damages, costs, losses and expenses (including all reasonable attorneys’ fees and litigation or arbitration expenses) relating in any way to or arising out of any breach by Owner Indemnified Parties of the Owner/TL CAs that is not due to the fault of any Contractor Indemnified Party or any Subcontractor or Sub-subcontractor.

 

 

19.3    Definitions. The term “Confidential Information” means one or both of Contractor’s Confidential Information and Owner’s Confidential Information, as the context requires. The Party having the confidentiality obligations with respect to such Confidential Information shall be referred to as the “Receiving Party” and the Party to whom such confidentiality obligations are owed shall be referred to as the “Disclosing Party.” The term “Subcontractor Proprietary Information” means, with respect to only to the Subcontractors identified in Part II of Attachment G, proprietary technical information, techniques, trademarks, trade secrets, know-how or other proprietary rights relating to the Work, including Equipment, that is conspicuously marked as such in any Work Product submitted by Contractor to Owner.

 

 

19.4    Exceptions. Notwithstanding Sections 19.1 and 19.2, Confidential Information shall not include: (i) information which at the time of disclosure or acquisition is in the public domain, or which after disclosure or acquisition becomes part of the public domain without violation of this ARTICLE 19; (ii) information which at the time of disclosure or acquisition was already in the possession of the Receiving Party or its employees or agents and was not previously acquired from the Disclosing Party or any of its employees or agents directly or indirectly; (iii) information which the Receiving Party can show was acquired by such entity after the time of disclosure or acquisition hereunder from a third party without any confidentiality commitment, if, to the best of Receiving Party’s or its employees’ or agent’s knowledge, such third party did not acquire it, directly or indirectly, from the Disclosing Party or any of its employees or agents; (iv) information independently developed by the Receiving Party without benefit of the Confidential Information; and (v) information which is required by Applicable Law, including the Securities and Exchange Commission or other agencies in connection with the Train 3 Liquefaction Facility

 

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to be disclosed; provided, however, that prior to such disclosure, the Receiving Party gives reasonable notice to the Disclosing Party of the information required to be disclosed.

 

19.5    Equitable Relief. The Parties acknowledge that in the event of a breach of any of the terms contained in this ARTICLE 19, the Disclosing Party would suffer irreparable harm for which remedies at law, including damages, would be inadequate, and that the Disclosing Party shall be entitled to seek equitable relief therefor by injunction, in addition to any and all rights and remedies available to it at law and in equity, without the requirement of posting a bond.

 

19.6    Term. The confidentiality obligations of this ARTICLE 19 shall survive the expiration or termination of this Agreement for a period of ten (10) years following the expiration or earlier termination of this Agreement; provided, however, the confidentiality obligations of Owner in Section 19.2 (ii) shall survive the expiration or termination of this Agreement for a period of fifteen (15) years following the expiration of the Defect Correction Period of this Agreement.

 

 

ARTICLE 20

LIMITATION OF LIABILITY

 

20.1    CONTRACTOR AGGREGATE LIABILITY. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, CONTRACTOR INDEMNIFIED PARTIES SHALL NOT BE LIABLE TO OWNER INDEMNIFIED PARTIES UNDER THIS AGREEMENT OR UNDER ANY CAUSE OF ACTION RELATED TO THE SUBJECT MATTER OF THIS AGREEMENT, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, PRODUCTS LIABILITY, INDEMNITY, CONTRIBUTION OR ANY OTHER CAUSE OF ACTION FOR CUMULATIVE AGGREGATE AMOUNTS IN EXCESS OF AN AMOUNT EQUAL TO

 

[***] U.S. DOLLARS (U.S. $[***]) (“AGGREGATE CAP”) AND OWNER SHALL RELEASE CONTRACTOR INDEMNIFIED PARTIES FROM ANY LIABILITY IN EXCESS THEREOF; PROVIDED THAT, NOTWITHSTANDING THE FOREGOING, THE LIMITATION OF LIABILITY AND RELEASE SET FORTH IN THIS SECTION 20.1 SHALL NOT (I) APPLY TO CONTRACTOR’S INDEMNIFICATION OBLIGATIONS UNDER THIS AGREEMENT WITH RESPECT TO CLAIMS BROUGHT BY A THIRD PARTY UNDER SECTIONS 17.1A, 17.1B, 17.1C, 17.1E, 17.1H, 17.1I, 17.1J, OR 17.3 OR ITS OBLIGATIONS UNDER SECTIONS 8.2A, 9.1E, 

17.5, or 17.6; (ii) apply to Contractor’s obligation to deliver to Owner full legal title to and ownership of all or any portion of the Work and Train 3 Liquefaction Facility as required under this Agreement; (iii) include the payment of proceeds under any insurance policy of Contractor or any of its Subcontractors or Sub-subcontractors required under this Agreement; or (iv) apply in the event of Contractor’s fraud, or Abandonment of the Work. In no event shall the limitation of liability set forth in this Section 20.1 be in any way deemed to limit Contractor’s obligations to (a) complete the Work for the compensation provided under this Agreement or (b) perform all Work required to achieve Substantial Completion and Final Completion. The costs incurred by Contractor in performing the Work shall not be counted against the limitation of liability set forth in this Section 20.1. For avoidance of doubt, amounts paid to Owner by Contractor for Liquidated Damages shall be counted against the limitation of liability set forth in this Section 20.1.

 

	 	
			20.2

				
			LIMITATION ON CONTRACTOR’S LIABILITY FOR LIQUIDATED DAMAGES.

			

 

 

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A.    DELAY LIQUIDATED DAMAGES. SUBJECT TO SECTION 20.2C, CONTRACTOR’S MAXIMUM LIABILITY TO OWNER FOR DELAY LIQUIDATED DAMAGES SHALL BE [***] U.S. DOLLARS (U.S. $ [***]).

 

B.    PERFORMANCE LIQUIDATED DAMAGES. SUBJECT TO SECTION 20.2C, CONTRACTOR’S MAXIMUM LIABILITY TO OWNER FOR PERFORMANCE LIQUIDATED DAMAGES SHALL BE [***] U.S. DOLLARS (U.S.$ [***]).

 

	 	
			C.

				
			Exceptions to Limitations of Liability under Section 20.2. SECTION 20.2A

			

shall not be construed to limit Contractor’s other obligations or liabilities under this Agreement (including (i) its obligations to complete the Work for the compensation provided under this Agreement, (ii) its obligations to achieve the

Key Dates (including Substantial Completion and Final Completion) and (iii) with respect to Section 20.2B, its obligations with respect to Minimum Acceptance Criteria and Warranties), nor shall the limits specified in this Section 20.2 or the limitations in Section 20.3B apply in the event of Contractor’s fraud, or Abandonment of the Work.

 

	 	
			20.3

				
			Liquidated Damages in General.

			

 

A.    Liquidated Damages Not Penalty. It is expressly agreed that Liquidated Damages payable under this Agreement do not constitute a penalty and that the Parties, having negotiated in good faith for such specific Liquidated Damages and having agreed that the amount of such Liquidated Damages is reasonable in light of the anticipated harm caused by the breach related thereto and the difficulties of proof of loss and inconvenience or nonfeasibility of obtaining any adequate remedy, are estopped from contesting the validity or enforceability of such Liquidated Damages. If Contractor, Guarantor or anyone on their behalf successfully challenges the enforceability of the per Day amount of any Delay Liquidated Damages, or the per unit rate of any Performance Liquidated Damages Contractor specifically agrees to pay Owner all actual damages incurred by Owner in connection with such breach, including any and all Consequential Damages (such as loss of profits and revenues, business interruption, loss of opportunity and use) and all costs incurred by Owner in proving the same (including all attorneys’ fees, and litigation or arbitration expenses) without regard to any limitations whatsoever set forth in this Agreement other than Section 20.1 and Section 20.2. For the avoidance of doubt, this Section 20.3A shall not preclude Contractor from contesting whether it is responsible for

(a) delays giving rise to Owner’s claims for Delay Liquidated Damages or (b) the failure to achieve the Performance Guarantees.

 

B.    Liquidated Damages as Exclusive Remedy. PAYMENT OF ANY LIQUIDATED DAMAGES SHALL IN NO WAY AFFECT OWNER’S RIGHT TO TERMINATE THIS AGREEMENT

under Section 16.1A(xii), or receive other Liquidated Damages contemplated in this Agreement for any other aspect of Contractor’s obligations hereunder. Without limitation of Owner’s rights under Section 16.1A(xii) and subject to Section 20.3A:

 

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1.    DELAY LIQUIDATED DAMAGES SHALL BE THE SOLE AND EXCLUSIVE REMEDY OWED BY CONTRACTOR FOR DELAY IN ACHIEVING THE GUARANTEED SUBSTANTIAL COMPLETION DATE SET FORTH IN SECTION 5.3A; AND

 

2.    PERFORMANCE LIQUIDATED DAMAGES SHALL BE THE SOLE AND EXCLUSIVE REMEDY OWED BY CONTRACTOR FOR FAILURE OF THE WORK TO ACHIEVE ANY OF THE PERFORMANCE GUARANTEES PROVIDED THAT THE MINIMUM ACCEPTANCE CRITERIA IS ACHIEVED AND CONTRACTOR COMPLIES WITH ITS CORRECTIVE ACTION OBLIGATIONS UNDER SECTION 11.5A.

 

20.4    Consequential Damages. NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS AGREEMENT TO THE CONTRARY, NEITHER THE OWNER INDEMNIFIED PARTIES NOR CONTRACTOR INDEMNIFIED PARTIES (NOR THEIR SUBCONTRACTORS OR SUB-SUBCONTRACTORS) SHALL BE LIABLE UNDER THIS AGREEMENT OR UNDER ANY CAUSE OF ACTION RELATED TO THE SUBJECT MATTER OF THIS AGREEMENT, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, PRODUCTS LIABILITY, INDEMNITY, CONTRIBUTION, OR ANY OTHER CAUSE OF ACTION FOR SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL LOSSES OR DAMAGES, OR FOR THE FOLLOWING SPECIFIC HEADS OF LOSS WHETHER SUCH LOSS IS DIRECT, INDIRECT OR CONSEQUENTIAL: LOSS OF PROFITS, LOSS OF USE, LOSS OF OPPORTUNITY, LOSS OF REVENUES, LOSS OF FINANCING, LOSS OF BONDING CAPACITY, COSTS OF CAPITAL OR OF OBTAINING OR MAINTAINING FINANCING, LOSS OF GOODWILL, LOSS OF PRODUCTION, LOSS OF PRODUCTIVITY, BUSINESS INTERRUPTION, CLAIMS BY OWNER’S CUSTOMERS FOR ECONOMIC LOSS OR BUSINESS INTERRUPTION, OR DAMAGES OR LOSSES FOR PRINCIPAL OFFICE EXPENSES INCLUDING COMPENSATION OF PERSONNEL STATIONED THERE, COST OF OBTAINING AND MAINTAINING FINANCE (ALL THE ABOVE TYPES OF DAMAGE BEING “CONSEQUENTIAL DAMAGES”), AND OWNER INDEMNIFIED PARTIES SHALL RELEASE THE CONTRACTOR INDEMNIFIED PARTIES AND THEIR SUBCONTRACTORS OR SUB- SUBCONTRACTORS, AND CONTRACTOR INDEMNIFIED PARTIES AND THEIR SUBCONTRACTORS OR 

Sub-subcontractors shall release Owner Indemnified Parties, from and against any liability for such Consequential Damages; PROVIDED THAT the exclusion of liability set forth in this Section 20.4 (i) is not intended to prevent Contractor from receiving profit to the extent that Contractor is entitled to receive such profit under the provisions of this Agreement; (ii) shall not apply to Liquidated Damages; (iii) shall not apply to Contractor’s indemnification obligations under this Agreement for damages claimed by any Third Party under Sections 17.1E, 17.1H, 17.1I, 17.1J and 17.5; and (iv) shall not apply where Consequential Damages are expressly permitted under Section 20.3A. For the purposes of Section 20.1 and this Section 20.4, the term “Third Party” means any Person other than Owner Indemnified Parties and Contractor Indemnified Parties except for employees, officers and directors of Owner Indemnified Parties and Contractor Indemnified Parties.

 

20.5    Exclusive Remedies. WHERE A REMEDY SPECIFIED IN THIS AGREEMENT IS EXPRESSLY STATED TO BE A PARTY’S SOLE AND EXCLUSIVE REMEDY, IT IS INTENDED THAT SUCH REMEDY SHALL BE THE SOLE AND EXCLUSIVE REMEDY OF SUCH PARTY FOR THE MATTER IN QUESTION, NOTWITHSTANDING ANY REMEDY OTHERWISE AVAILABLE AT LAW OR IN EQUITY.

 

20.6    Application of Liability Limitations. EXCEPT TO THE EXTENT EXPRESSLY PROHIBITED BY APPLICABLE LAW, THE WAIVERS AND DISCLAIMERS OF LIABILITY, RELEASES FROM

 

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liability, exclusions, limitations and apportionments of liability and indemnities expressed in this Agreement shall apply even in the event of fault, negligence (in whole or in part), strict liability, breach of contract or otherwise of the Party released or whose liability is waived, disclaimed, limited, fixed or indemnified and shall extend in favor of members of the Owner Indemnified Parties and the Contractor Indemnified Parties.

 

 

 

ARTICLE 21

MISCELLANEOUS PROVISIONS

 

21.1    Entire Agreement. This Agreement, including the Attachments and Schedules attached to and incorporated into this Agreement, contains the entire understanding of the Parties with respect to the subject matter hereof and incorporates any and all prior agreements, including the ITB Agreement, and commitments with respect thereto. There are no other oral understandings, terms or conditions, and neither Party has relied upon any representation, express or implied, not contained in this Agreement. General or special conditions included in any of Contractor’s price lists, invoices, tickets, receipts or other such documents presented to Owner shall have no applicability to Owner with respect to this Agreement. Without limitation, this Agreement supersedes in its entirety the ITB Agreement any other agreements between the Parties or their Affiliates related to the Train 3 Liquefaction Facility (including any confidentiality or non- disclosure agreements). All services performed under the ITB Agreement shall be governed by the terms and conditions set forth in this Agreement, except that Contractor agrees that it has been fully paid for any services performed under the ITB Agreement, and any disclosures made prior to the Original Effective Date under any confidentiality or non-disclosure agreements between Owner or its Affiliates and Contractor with respect to the Train 3 Liquefaction Facility shall be governed under this Agreement.

 

21.2    Amendments. Other than Change Directives issued by Owner to Contractor pursuant to Section 6.1E or Section 6.2D, no change, amendment or modification of this Agreement shall be valid or binding upon the Parties hereto unless such change, amendment or modification is in writing and duly executed by both Parties hereto.

 

21.3    Joint Effort. Preparation of this Agreement has been a joint effort of the Parties and the resulting document shall not be construed more severely against one of the Parties than against the other.

 

21.4    Captions. The captions contained in this Agreement are for convenience and reference only and in no way define, describe, extend or limit the scope of intent of this Agreement or the intent of any provision contained herein.

 

21.5    Notice. Any notice, demand, offer, or other written instrument required or permitted to be given pursuant to this Agreement shall be in writing signed by the Party giving such notice and shall be either (i) hand delivered; (ii) delivered by same-Day or overnight courier; or (iii) delivered by certified mail, return receipt requested, to the other Party at the address set forth below. Notices, demands, offers and other communications may be delivered via email as a courtesy; however, delivery in such manner shall not be deemed to fulfill the notice requirements of this Section 21.5.

 

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			A.

				
			If delivered to Owner:

			

 

Rio Grande LNG, LLC 1000 Louisiana Street 39th Floor

Houston, Texas 77002 Attn: [***]

E-mail: [***] with a copy to:

Rio Grande LNG, LLC

1000 Louisiana Street 39th Floor

Houston, Texas 77002 Attn: [***]

E-mail: [***]

 

	 	
			A.

				
			If delivered to Contractor: Bechtel Energy Inc.

			

 

3000 Post Oak Boulevard Houston, Texas 77056 Facsimile: [***]

Attn: [***]

E-mail: [***] with a copy to:

 

Bechtel Energy Inc.

3000 Post Oak Boulevard Houston, Texas 77056 Facsimile: [***]

Attn: [***]

 

Each Party shall have the right to change the place to which notice shall be sent or delivered by sending a similar notice to the other Party in like manner. Notices, demands, offers or other written instruments shall be deemed to be received: (1) if delivered by hand, by same- day or overnight courier service, or certified mail on the date actually received at the address of the intended recipient; or (2) if sent by facsimile, upon receipt by the sender of an acknowledgment or transmission report generated by the machine from which the facsimile was sent indicating that the facsimile was sent in its entirety to the recipient’s facsimile number.

 

21.6    Severability. If any provision or part thereof in this Agreement is determined to be illegal, invalid or unenforceable, such illegality, invalidity or unenforceability will not impair the operation of or affect those remaining portions of such provision and this Agreement that are legal, valid and enforceable. Such provision or part thereof will be modified so as to be legal,

 

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valid and enforceable consistent as closely as possible with the intent of the original language of such provision or part thereof and shall be enforced to the extent possible consistent with Applicable Law. If the illegality, invalidity or unenforceability of such provision or part thereof cannot be modified consistent with the intent of the original language, such provision will be deleted and treated as if it were never a part of this Agreement and shall not affect the validity of the remaining portions of the provision or this Agreement.

 

21.7    Assignment. Neither Party may assign its rights or responsibilities under this Agreement without the prior written consent of the non-assigning/novating Party hereto; provided that Owner may assign and/or novate this Agreement, and any rights, title and interest in this Agreement, the Work Product and all intellectual property rights, and all liabilities and obligations related thereto, in whole or part, to any of the Owner Indemnified Parties (including any of their respective successors in interest), Owner’s potential or actual business partners, investors or lenders, any purchaser of an interest in all or part of the Train 3 Liquefaction Facility or the operator of the Train 3 Liquefaction Facility without first obtaining such consent. Furthermore, Owner may assign, pledge and/or grant a security interest in this Agreement to any Lender without Contractor’s consent. Upon written notice to Contractor, Contractor will execute any document required by Owner, acting reasonably, to effect such assignment and/or novation. When duly assigned and/or novated in accordance with the foregoing, this Agreement shall be binding upon and shall inure to the benefit of the assignee. Any assignment and/or novation not in accordance with this Section 21.7 shall be void and without force or effect.

 

 

21.8    No Waiver. Any failure of either Party to enforce any of the provisions of this Agreement or to require compliance with any of its terms at any time during the term of this Agreement shall in no way affect the validity of this Agreement, or any part hereof, and shall not be deemed a waiver of the right of such Party thereafter to enforce any and each such provisions.

 

 

21.9    Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the state of Texas (without giving effect to the principles thereof relating to conflicts of law). The United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Agreement and shall be disclaimed in and excluded from any Subcontracts entered into by Contractor in connection with the Work or the Train 3 Liquefaction Facility.

 

 

21.10    Foreign Corrupt Practices Act. Contractor shall, and Contractor shall require each of its Subcontractors and Sub-subcontractors, and the agents and employees of such Subcontractors and Sub-subcontractors, to comply with all provisions of the Foreign Corrupt Practices Act of the United States 15 U.S.C. § 78dd-1 to -3, as amended (“FCPA”), the UK Bribery Act 2010 (“UK Bribery Act”) and the requirements of the Organization for Economic Co-operation and Development’s (“OECD”) Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. Contractor shall not, and Contractor shall require each of its Subcontractors and Sub-subcontractors (and the agents and employees of such Subcontractors and Sub-subcontractors) not to (i) make direct or indirect payments of a corrupt nature, to employees, agents or public employees of a government, or candidates or active members of political parties, in order to obtain or maintain business, or (ii) take any action that could result in Contractor, Owner or any of their Affiliates becoming subject to any action, penalty or loss of benefits under the FCPA or OECD.

 

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21.11    Successors and Assigns. This Agreement shall be binding upon the Parties hereto, their successors and permitted assigns.

 

21.12    Attachments and Schedules. All Attachments and Schedules are incorporated into this Agreement by such reference and shall be deemed to be an integral part of this Agreement.

 

21.13    Obligations. Nothing contained in this Agreement shall be construed as constituting a joint venture or partnership between Contractor and Owner.

 

21.14    Further Assurances. Contractor and Owner agree to provide such information, execute and deliver any such instruments and documents and to take such other actions as may be necessary or reasonably requested by the other Party that are not inconsistent with the provisions of this Agreement and that do not involve the assumptions of obligations (including liabilities) greater than those provided for in this Agreement, in order to give full effect to this Agreement and to carry out the intent of this Agreement. In addition, Contractor agrees to cooperate with Owner and any Lender (i) to supply such information and documentation, (ii) to grant such written consents to the assignment of this Agreement, (iii) to execute such amendments to this Agreement as any Lender may require to the extent that the requested changes do not materially adversely affect the rights and obligations or limitations of liability of Contractor hereunder, and (iv) to take such action or execute such documentation as any Lender shall reasonably require.

 

 

21.15    Priority. The documents that form this Agreement are listed below in order of priority, with the document having the highest priority listed first and the one with the lowest priority listed last. Subject to Section 1.1 under the definition of Applicable Codes and Standards regarding conflicts or inconsistencies between any Applicable Codes and Standards, in the event of any conflict or inconsistency between a provision in one document and a provision in another document, the document with the higher priority shall control. In the event of a conflict or inconsistency between provisions contained within the same document, then the provision that requires the highest standard of performance on the part of Contractor shall control. This Agreement is composed of the following documents, which are listed in priority:

 

 

	 	
			A.

				
			Change Orders or written amendments to this Agreement;

			

 

 

	 	
			B.

				
			this Agreement; and

			

 

 

	 	
			C.

				
			Attachments and Schedules to this Agreement.

			

 

 

21.16    Restrictions on Public Announcements. Neither Contractor nor its Subcontractors or Sub-subcontractors shall (i) publish or cause to be made public any photographs of any part of the Train 3 Liquefaction Facility or (ii) issue a press release, advertisement, publicity material, prospectus, financial document or similar matter, or (iii) participate in a media interview that mentions or refers to the Work, the Project or any part of the Train 3 Liquefaction Facility without the prior written consent of Owner, not to be unreasonably withheld, provided that Contractor shall not be required to obtain Owner’s prior written consent of Contractor’s issuance of a press release to correct any errors made by Owner concerning Contractor in a prior press release issued by Owner if Contractor first gives Owner [***] ([***]) Days’ prior written notice of Contractor’s intent to issue such corrective press release and an opportunity of Owner to correct such error within such [***] ([***]) Day period. Under no circumstance shall Contractor permit

 

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access on the Site of Third Parties who are not involved in the performance of the Work without prior written consent of Owner.

 

21.17    Parent Guarantee. On or before the Amended and Restated Execution Date, Guarantor shall provide an irrevocable, unconditional parent guarantee in the form attached as Attachment U (“Parent Guarantee”) guaranteeing the full and faithful performance of Contractor under this Agreement; provided that Contractor shall not be required to provide the Parent Guarantee to Owner until Owner returns to Contractor the previously executed parent guarantee provided to Owner at the Original Effective Date.

 

21.18    Language. This Agreement and all notices, communications and submittals between the Parties pursuant to this Agreement shall be in the English language.

 

21.19    Counterparts. This Agreement may be signed in any number of counterparts and each counterpart (when combined with all other counterparts) shall represent a fully executed original as if one copy had been signed by each of the Parties. Facsimile signatures shall be deemed as effective as original signatures.

 

21.20    Owner’s Lender. In addition to other assurances provided in this Agreement, Contractor acknowledges that Owner intends to obtain project financing associated with the Project and Contractor agrees to cooperate with Owner and Lender (including Independent Engineer) in connection with such project financing, including entering into direct agreements with Lender (which shall be substantially in the form of Attachment AA), covering matters that are customary in project financings of this type such as Lender assignment or security rights with respect to this Agreement, direct notices to Lender, step-in/step-out rights, access by Lender’s representative and other matters applicable to such project financing. Subject to the terms of this Agreement, such cooperation includes cooperation with lenders with respect to any expansion to the Train 3 Liquefaction Facility. Contractor acknowledges and agrees that NTP is contingent upon obtaining such non-recourse project financing and agrees further that in the event Owner does not obtain such project financing, Owner shall not be liable to Contractor by reason of any terms and conditions contained in or connected with this Agreement, except for any Work performed by Contractor in accordance with this Agreement under an LNTP and any amounts owed under Section 16.2.

 

 

	 	
			21.21

				
			Trains 1 and 2 Liquefaction Facility.

			

 

 

A.    Notwithstanding anything to the contrary in this Agreement, the work performed under the Trains 1 and 2 EPC Agreement is governed by the Trains 1 and 2 EPC Agreement, and the Work performed under this Agreement is governed by this Agreement.

 

B.    In addition and notwithstanding anything to the contrary in this Agreement, Contractor acknowledges that it shall not be entitled to any modification of the Contract Price, Guaranteed Dates or any other Changed Criteria under this Agreement arising out of or relating to (i) any acts or omissions of Contractor or any of its subcontractors or sub- subcontractors in connection with the Trains 1 and 2 EPC Agreement or the Trains 1 and 2 Liquefaction Facility, or (ii) any act, instruction or direction by Owner or anyone acting for or on behalf of Owner in accordance with the Trains 1 and 2 EPC Agreement; provided

 

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that in no case shall this be interpreted to entitle Contractor to a change, but instead Contractor shall only be entitled to relief to the extent permitted under ARTICLE 6. Similarly, notwithstanding anything to the contrary in this Agreement, Contractor acknowledges that it shall not be entitled to any modification of the contract price, guaranteed dates or any other changed criteria under the Trains 1 and 2 EPC Agreement arising out of or relating to (i) any acts or omissions of Contractor or any of its Subcontractors or Sub-subcontractors in connection with this Agreement, Train 1 or Train 2, or (ii) any act, instruction or direction by Owner or anyone acting for or on behalf of Owner in accordance with this Agreement.

 

C.    Without limiting the foregoing, the waivers and disclaimers of liability, releases from liability, exclusions, limitations and apportionments of liability and indemnities expressed in the Trains 1 and 2 EPC Agreement and this Agreement shall apply to the work performed under each agreement respectively and shall not supersede any such rights, obligations or liabilities that arise out of the other agreement

 

	 	
			21.22

				
			Potential Lenders, Potential Equity Investors and Equity Participants.

			

 

A.    Potential Lenders. Owner shall provide to Contractor the identity of Potential Lenders that have signed confidentiality agreements with Owner. As used herein, “Potential Lender” shall mean any commercial bank, insurance company, investment or mutual fund or other entity that is an “accredited investor” (as defined in Rule 501 of Regulation D promulgated under the Securities Act of 1933, as amended) and which extends credit, buys loans and is in the business of lending as one of its businesses.

 

 

B.    Potential Equity Investors. Prior to disclosure of any Work Product by Owner to any potential equity investor in Owner in connection with the Project, Owner shall obtain a waiver from such potential equity investor agreeing that it is not relying upon such Work Product in making any investment decision in connection with the Project and waiving and releasing any claim it may have against Contractor or Contractor’s Affiliates on account of any such reliance or purported reliance.

 

 

C.    Equity Participants. Owner’s successors, assigns and any future recipient of any equity ownership in Owner (excluding Lenders) shall be bound by the releases and limitations on liability set forth in Sections 2.2A, 8.2B, 12.5, 16.1B, 17.1B, 20.1, 20.2, 20.3 and 20.4 of this Agreement, and Owner shall obtain the express written agreement of such equity participants to be bound by such releases, limitations of liability and other protections of Contractor.

 

	 	
			21.23

				
			Survival. ARTICLE 9, ARTICLE 10, ARTICLE 12, ARTICLE 14, ARTICLE 15, ARTICLE 16, ARTICLE 17, ARTICLE 18 and ARTICLE 19, ARTICLE 20, Sections 3.6, 3.8, 3.13, 3.17, 8.1, 8.2, 11.10, 21.7, 21.9, 21.17, 21.22C and this Section 21.23 shall survive termination or expiration of this Agreement, in addition to any other provisions which by their nature should, or by their express terms do, survive or extend beyond the termination or expiration of this Agreement.

			

 

 

[Signature Page Follows]

 

 

120

 

 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the Amended and Restated Execution Date:

 

Owner:

 

RIO GRANDE LNG, LLC

 

By: [***]         

Name: [***]

Title: [***]

 

 

Contractor:

 

BECHTEL ENERGY INC.

 

 

By: [***]         

Name: [***]

Title: [***]

 

 

 

 

 

121

 

 

 

 

 

 

 

ATTACHMENT A  

 

SCOPE OF WORK

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page 1 of 61

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 1 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

 

 

 

SCHEDULE A-1 

 

EPC SCOPE OF WORK 

FOR 

RIO GRANDE LNG FACILITY TRAIN 3 

 

RG-NTD-000-PE-SOW-00002 

 

This document supersedes RG-000-PE-SOW-0002

 

 

 

 

	
			REV

				
			DATE

				
			REVISION DESCRIPTION

				
			ORIGINATOR

				
			REVIEWER/ ENDORSER

				
			APPROVER

			
	
			000

				
			07-Sept-2022

				
			Issued for NTP

				
			[***]

				
			[***]

				
			[***]

			
	
			A

				
			19 May 2019

				
			Issued for Review

				
			[***]

				
			[***]

				
			[***]

			
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 2 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

Revision Notes and Holds History

 

	
			Revision

				
			Description of Changes and Notes

			
	
			000

				
			[***]

			
	
			A

				
			[***]

			
	 	 
	 	 
	 	 

 

Table of Contents

 

	 	
			1.0

				
			INTRODUCTION

				7

	 	
			1.1

				
			Project Description

				7

	 	
			1.2

				 	
			Scope of document

				7

	 	
			2.0

				
			BASIS FOR EPC EXECUTION

				7

	 	
			3.0

				
			DEFINITIONS

				7

	 	
			4.0

				
			OWNERS EXECUTION PHILOSOPHY

				18

	 	
			4.1

				
			Project management

				18
	 	
			4.2

				
			Health, Safety and Security

				19
	 	
			4.3

				
			Environmental

				19
	 	
			4.4

				
			Permitting

				19
	 	
			4.5

				
			Quality

				19
	 	
			4.6

				
			Cost and Schedule Balance

				19
	 	
			4.7

				
			Commercial

				19
	 	
			4.8

				
			Engineering

				19
	 	
			4.9

				
			Construction Management, Startup and Operations

				19
	 	
			4.10

				
			Community and Stakeholder Engagement

				20
	 	
			4.11

				
			Reporting

				20

	 	
			5.0

				
			EPC AGREEMENT REFERENCE DOCUMENT LIST

				20
	 	
			6.0

				
			SCOPE OF FACILITIES

				20
	 	
			7.0

				
			CONTRACTOR SCOPE OF WORK

				22

	 	
			7.1

				
			Home Office Services

				22
	 	
			7.2

				
			Supply of Equipment and Materials Required to Construct the Facility

				22
	 	
			7.3

				
			Traffic and Logistics Services

				22
	 	
			7.4

				
			Materials Management Services

				22
	 	
			7.5

				
			Subcontracted Services

				23
	 	
			7.6

				
			Services Required to Construct the Facility

				23
	 	
			7.7

				
			Precomissioning and Commissioning Services

				23
	 	
			7.8

				
			SIMOPS

				24
	 	
			7.9

				
			Training of Owner Personnel

				24
	 	
			7.10

				
			Assistance to Owner

				24
	 	
			7.11

				
			Third-party Interfaces

				24
	 	
			7.12

				
			Facilities for Owner Personnel

				24
	 	
			7.13

				
			Performance Tests

				24
	 	
			7.14

				
			Process License Fees

				24
	 	
			7.15

				
			Record As-Built Drawings and SpecIfications

				24
	 	
			7.16

				
			Handover Documentation

				25
	 	
			7.17

				
			Information Systems for Owner Use

				25

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 3 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

	 	
			7.18

				
			Exclusions from Contractor’s Scope of Work

				25

	 	
			8.0

				
			PROJECT MANAGEMENT AND ADMINISTRATION

				25
	 	
			9.0

				
			QUALITY ASSURANCE

				25

 

	 	
			10.0

				
			ENGINEERING

				26

	 	
			10.1

				
			General

				26
	 	
			10.2

				
			Specific Tasks by Discipline

				27

	 	
			11.0

				
			ENGINEERING: THIRD-PARTY CONSULTANTS

				36
	 	
			12.0

				
			PROCUREMENT

				36

	 	
			12.1

				
			General

				36
	 	
			12.2

				
			Purchasing Procedure

				36
	 	
			12.3

				
			Requisitions/Purchases

				37
	 	
			12.4

				
			Expediting and Inspection

				37
	 	
			12.5

				
			Factory Acceptance Tests

				37
	 	
			12.6

				
			Supply of Equipment – Tagged Equipment Items

				37
	 	
			12.7

				
			Supply of Equipment – Bulk Materials

				38
	 	
			12.8

				
			Spare Parts

				38
	 	
			12.9

				
			Catalysts & Chemicals, Oils & Lubricants

				38
	 	
			12.10

				
			Miscellaneous Materials Supply

				39
	 	
			12.11

				
			Traffic and Logistics Services

				40

	 	
			13.0

				
			MATERIALS MANAGEMENT

				40

	 	
			13.1

				
			Home Office Materials Management

				40
	 	
			13.2

				
			Site Materials Management

				40

	 	
			14.0

				
			SUBCONTRACT SERVICES

				41

	 	
			14.1

				
			Engineering Design & Consultancy Subcontracts

				41
	 	
			14.2

				
			Site Construction Subcontracts

				41
	 	
			14.3

				
			Subcontracts during Commissioning, Start-up, and Initial Operation up to Substantial Completion of Train 3

				41
	 	
			14.4

				
			Contractor Provided Service Subcontracts

				41

	 	
			15.0

				
			CONSTRUCTION

				41

	 	
			15.1

				
			General

				
			41

			
	 	
			15.2

				
			Construction Scope of Work

				42
	 	
			15.3

				
			Rules and Regulations

				42
	 	
			15.4

				
			Community Engagement

				43
	 	
			15.5

				
			Construction Labor

				43
	 	
			15.6

				
			Construction Equipment

				43
	 	
			15.7

				
			Consumable Construction Materials

				43
	 	
			15.8

				
			Subcontracts

				43
	 	
			15.9

				
			Drainage

				43
	 	
			15.10

				
			NOT USED

				44
	 	
			15.11

				
			Site Facilities and Construction Utilities

				44
	 	
			15.12

				
			Disposal of Construction Waste

				45
	 	
			15.13

				
			Security

				45
	 	
			15.14

				
			Heavy Lifts

				46
	 	
			15.15

				
			Construction Temporary Facilities

				47
	 	
			15.16

				
			Contractor’s Tools and Construction Equipment

				48
	 	
			15.17

				
			Construction Permits

				48

	 	
			16.0

				
			PRE-COMMISSIONING, COMMISSIONING, COMPLETION AND ACCEPTANCE

				48

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 4 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

	 	
			16.1

				
			General48

				48
	 	
			16.2

				
			Commencement of Commissioning and Start-up

				49
	 	
			16.3

				
			Operator Training

				50
	 	
			16.4

				
			Operations Tests

				50

	 	
			17.0

				
			SIMULTANEOUS OPERATIONS

				50
	 	
			18.0

				
			OPERATIONS AND MAINTENANCE MANAGEMENT SYSTEMS AND PROCEDURES

				50

	 	
			18.1

				
			Asset Integrity Management Systems

				50
	 	
			18.2

				
			Operations Management Procedures

				51
	 	
			18.3

				
			Operations and Maintenance PROCEDURES and Manuals51

				51

	 	
			19.0

				
			PREPARATION OF PRECOMMISSIONING, COMMISSIONING, AND INITIAL START-

				52

UP PROCEDURES AND MANUALS         

	 	
			20.0

				
			CONTRACTOR PROVIDED TRAINING FOR OWNER PERSONNEL

				52

	 	
			20.1

				
			Updating of Operations TrainiNg Simulator

				52
	 	
			20.2

				
			Preparation of Training Materials

				52
	 	
			20.3

				
			Preparation of Training Materials for Subcontractor Equipment Packages

				53
	 	
			20.4

				
			Training Courses

				53
	 	
			20.5

				
			Training Courses for Vendor Equipment Packages

				53

	 	
			21.0

				
			ASSISTANCE TO OWNER

				53

	 	
			21.1

				
			Required Submissions to Regulatory Agencies

				53
	 	
			21.2

				
			Technical Support to Owner’s Regulatory Services Consultants

				54

	 	
			22.0

				
			THIRD-PARTY INTERFACES

				54

	 	
			22.1

				
			NOT USED

				54
	 	
			22.2

				
			NOT USED

				54
	 	
			22.3

				
			NOT USED

				54
	 	
			22.4

				
			NOT USED

				54
	 	
			22.5

				
			NOT USED

				54
	 	
			22.6

				
			NOT USED

				54
	 	
			22.7

				
			Temporary fencing and utilities for expansion options

				54
	 	
			22.8

				
			Brownsville Navigation District Tariff

				54
	 	
			22.9

				
			Environmental Impact Statement Division of Responsibility

				54

	 	
			23.0

				
			FACILITIES FOR OWNER PERSONNEL55

				55

	 	
			23.1

				
			Office Accommodation for Owner personnel in Contractor’s Home Office55

				55
	 	
			23.2

				
			Temporary Facilities Provided at Site by Contractor for Owner’s Project Personnel55

				55

	 	
			24.0

				
			PERFORMANCE GUARANTEES AND PERFORMANCE TESTING55

				55
	 	
			25.0

				
			PROCESS LICENSE FEES55

				55
	 	
			26.0

				
			DOCUMENT NUMBERING55

				55
	 	
			27.0

				
			RECORD AS-BUILT DRAWINGS AND SPECIFICATIONS56

				56
	 	
			28.0

				
			HANDOVER DOCUMENTATION56

				56
	 	
			29.0

				
			INFORMATION SYSTEMS FOR OWNER USE56

				56
	 	
			30.0

				
			EXCLUSIONS FROM CONTRACTOR’S SCOPE OF WORK56

				56
	 	31.0 	[***]    	57

	APPENDIX	A-1:	 ENVIRONMENTAL IMPACT STATEMENT COMMITMENTS	58
	APPENDIX	A-2:	[***]	59
	APPENDIX	3:	NOT USED	60
	APPENDIX	4:	NOT USED	60

             

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 5 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 6 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

	 	
			1.0

				
			INTRODUCTION

			

 

	 	
			1.1

				
			PROJECT DESCRIPTION

			

 

Contractor shall perform the engineering, procurement, construction, pre-commissioning, commissioning, start-up and testing of a turnkey liquefied natural gas (“LNG”) liquefaction facility and export terminal, consisting of one (1) liquefaction unit having an aggregate nominal LNG production capacity of approximately [***] million metric tonnes per annum (“mtpa”) and associated facilities, for the purpose of liquefying natural gas to form LNG, including feed gas treatment facilities, and all systems and infrastructure, including temporary facilities, from the feed gas pipeline tie-in to the LNG rundown tie-in, and all related appurtenances thereto (the “Facility”) located at a site south of the Brownsville-Port Isabel Highway and north of the Brownsville Ship Channel in Cameron County near Brownsville, Texas (the “Site”), and owned by Rio Grande LNG, LLC (“Owner”);

 

	 	
			1.2

				
			SCOPE OF DOCUMENT

			

 

This document defines the Scope of Work (the “SOW”) to be performed by Contractor during the EPC phase for implementation of Train 3 of the Facility.

 

The Facility will be constructed in several successive phases of development. At full build-out the Facility will ultimately be comprised of five (5) LNG liquefaction trains with tie-ins for future expansion, four (4) LNG storage tanks, two (2) marine loading jetties with associated utilities and infrastructure as further described in the Basis of Design (the “BOD”).

 

	 	
			2.0

				
			BASIS FOR EPC EXECUTION

			

 

Contractor shall develop detailed engineering design for Train 3, and undertake procurement, construction, commissioning, start-up and initial operation of the Facility in accordance with the BOD, and as defined in the EPC Agreement (the “EPC Agreement”). The design of Train 3 shall be, to the extent described in Section 6, identical to Trains 1 and 2.

 

Contractor shall design and construct the Facility in compliance with the EPC Agreement, Applicable Law, and Applicable Codes and Standards.

 

	 	
			3.0

				
			DEFINITIONS

			

 

Definitions are provided below. Capitalized terms set forth herein that are not defined will have the meaning as agreed in the EPC Agreement, as applicable. In the event that there is a conflict between the EPC Agreement and this document, the terms and conditions in the EPC Agreement prevail.

 

 

	
			Term

				
			Definition

			
	
			2D

				
			Two-dimensional

			
	
			3D

				
			Three-dimensional

			
	
			AEP 138 kV Electrical Switchyard (also called Pompano Switchyard)

				
			Public Utility Electrical Switchyard being installed by others

			
	
			Agreement

				
			EPC Agreement

			
	
			AGRU

				
			Acid Gas Removal Unit

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 7 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

 

	
			Term

				
			Definition

			
	
			AIMS

				
			Asset Integrity Management System

			
	
			APCI

				
			Air Products and Chemicals, Inc.

			
	
			ASME

				
			American Society Mechanical Engineers

			
	
			BASF

				
			BASF SE, a German multinational chemical company

			
	
			BND

				
			Brownsville Navigation District

			
	
			BOG

				
			Boil-off Gas

			
	
			BOM (Bill of Material)

				
			List of all required components of an assembly of parts or complete item - usually shown on the drawing

			
	
			CAD

				
			Computer-aided design

			
	
			Capital Spare Parts

				
			Those capital spare parts listed in Attachment W for use after Substantial Completion which are to be included in the Work and the Contract Price, as further set forth in Section 3.4B of the EPC Agreement

			
	
			Central Control Building or CCB

				
			[***] listed in the building list, document number 26251-100-A0X- 0000-00001 (RG-BL-000-CSA-LST-00001)

			
	
			CFD

				
			Computational fluid dynamics – computational method (software) used to analyze complex engineering scenarios / systems

			
	
			Change Order

				
			A written instrument signed by both Parties after the execution of the EPC Agreement in the form of Schedule D-1, that authorizes an addition to, deletion from, suspension of, or any other modification or adjustment to the requirements of the EPC Agreement, including an addition to, deletion from or suspension of the Work or any modification or adjustment to any Changed Criteria. Owner and Contractor are entitled to a Change Order in accordance with Article 6 of the EPC Agreement

			
	
			CMMS

				
			Computerized maintenance management system also sometimes referred to as computerized maintenance management and inspection system (CMMIS)

			
	
			CMT

				
			Construction management team

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 8 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

 

	
			Term

				
			Definition

			
	
			Commissioning

				
			With respect to the applicable system or subsystem of the Equipment, all activities required subsequent to achieving mechanical completion of such system or subsystem and prior to RFSU, including the introduction of inert gas to oxygen free the systems and subsystems, commencement of the drying out process and tightness tests performed with inert gas at operating pressures, as further set forth in Attachment A and the performance and completion of the activities or the Commissioning checklists agreed to by Owner and Contractor.

			
	
			Commissioning Spare Parts

				
			Spare parts for pre-commissioning, Commissioning, testing and start- up activities required to achieve Substantial Completion

			
	
			Common Systems

				
			Those portions of the Facility that will be utilized by Trains 1 through 3, including, for example, certain utilities, instruments, control systems and piping. The applicable Common Systems will be designed, procured and constructed such that Train 1, Train 2, and Train 3 may be operated simultaneously or individually at the design conditions set forth in the EPC Agreement. The Common Systems are set forth in this Attachment A.

			
	
			Construction Equipment

				
			The equipment, machinery, temporary structures, scaffolding, materials, tools, supplies and systems, purchased, owned, rented or leased by Contractor or its Subcontractors or Sub-subcontractors for use in accomplishing the Work, but not intended for incorporation into the Facility.

			
	
			Contractor

				
			Bechtel Energy Inc.

			
	
			[***]

				
			[***]

			
	
			Day

				
			A calendar day

			
	
			Drawings

				
			The graphic and pictorial documents (in written or electronic format) showing the design, location and dimensions of the Work, generally including plans, elevations, sections, details, schedules and diagrams, which are prepared as a part of and during the performance of the Work.

			
	
			EDMS

				
			Electronic data management systems

			
	
			EPC

				
			Engineering, Procurement, Construction and Commissioning.

			
	
			EPC Work

				
			See “Work” below

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 9 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

 

	
			Term

				
			Definition

			
	
			Equipment

				
			All equipment, materials, supplies and systems required for the completion of and incorporation into the Facility. Equipment excludes Construction Equipment.

			
	
			Expanded Facility

				
			The full development of the facility consisting of five (5) liquefaction trains with tie-ins for future expansion, four (4) LNG storage tanks, two (2) marine jetties for ocean-going LNG carriers, one (1) turning basin and LNG tanker truck loading

			
	
			Facility

				
			A greenfield turnkey liquefied natural gas (“LNG”) liquefaction facility and export terminal, consisting of one (1) liquefaction unit having an aggregate nominal LNG production capacity of up to approximately [***] million metric tonnes per annum (“mtpa”) and associated facilities, for the purpose of liquefying natural gas to form LNG, including feed gas treatment facilities, and all systems and infrastructure, including temporary facilities, from the feed gas pipeline tie-in to the LNG rundown tie-in, and all related appurtenances thereto, as further described in the EPC Agreement and attachments.

			
	
			FEED

				
			Front End Engineering Design or Basic Engineering

			
	
			FERC

				
			Federal Energy Regulatory Commission

			
	
			GECP or Good Engineering and Construction Practices

				
			The generally recognized and accepted reasonable and prudent practices, methods, skill, care, techniques and standards employed by the international LNG liquefaction and storage engineering and construction industries with respect to: (i) the engineering, procurement, construction, pre-commissioning, Commissioning, testing and start-up of natural gas liquefaction and storage facilities of similar size and type as the Facility and in accordance with Applicable Codes and Standards and Applicable Law; (ii) personnel and facility safety and environmental protection; (iii) efficient scheduling of the Work; and (iv) the reliability and availability of the Facility under the operating conditions reasonably expected at the Site, as specified in this Attachment A.

			
	
			Governmental Instrumentality

				
			Any federal, state or local department, office, instrumentality, agency, authority, board or commission having jurisdiction over a Party or any portion of the Work, the Facility or the Site.

			
	
			HAZID

				
			Hazard identification

			
	
			HAZOP

				
			Hazard and Operability Study

			
	
			ICSS

				
			Integrated Control and Safety System

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 10 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

 

	
			Term

				
			Definition

			
	
			Industrial Cyber Security System

				
			Software used to mitigate cyber threats and attacks.

			
	
			IT

				
			Information technology

			
	
			Jetty

				
			Jetty is as defined and used in the LNG industry. It is also used interchangeably with “Berth” in this SOW.

			
	
			Marine Facilities

				
			The marine facilities as detailed in 26251-100-3DR-R04F-00001 (RG-BL-000-MAR-BOD-00001).

			
	
			Material Selection Diagrams

				
			Drawing which shows material selection information and Specification.

			
	
			MCHE

				
			Main Cryogenic Heat Exchanger

			
	
			Mechanical Completion or mechanical completion

				
			With respect to (a) the applicable system or subsystem of the Equipment or (b) the Train, that, with the exception of Punchlist items, all of the following have occurred: (i) Contractor has completed all design, procurement, fabrication, assembly, erection, installation and pre-commissioning of all Equipment (including all systems and components of Equipment, such as all operating, protection, fire, safety and other related systems required or necessary prior to start- up) for such applicable system or subsystem of the Equipment or the Train to ensure that all such Equipment or Train was correctly fabricated, assembled, erected, installed, tested and pre- commissioned and is capable of being operated safely and reliably, all as set forth in greater detail in Attachment A; and (ii) the applicable system, subsystem of Equipment or Train ready for the commencement of Commissioning.

			
	
			Minimum Acceptance Criteria

				
			The minimum acceptance criteria specified in Attachment T.

			
	
			NDT

				
			Non-destructive testing

			
	 	 
	
			OREDA

				
			Offshore and onshore reliability data.

			
	
			Party or Parties

				
			Rio Grande LNG, LLC a limited liability company organized under the laws of Texas, and/or Bechtel Energy Inc., a corporation organized under the laws of Delaware, as the circumstance requires.

			
	
			Performance Guarantees

				
			The performance guarantees specified in the EPC Agreement.

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 11 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

 

	
			Term

				
			Definition

			
	
			Performance Tests

				
			Those tests performed by Contractor to determine whether the Facility meets the Performance Guarantees and Minimum Acceptance Criteria, which tests shall be set forth in Attachment S and, to the extent not specified therein, as developed in accordance with Section 11.3 of the EPC Agreement.

			
	
			Permanent Buildings

				
			Permanent Buildings shall mean those buildings listed in Buildings List 26251-100-A0X-0000-00001 (RG-BL-000-CSA-LST-00001)

			referenced in the BOD required to be constructed for operation of Train 3.

			
	
			Permit

				
			Any valid waiver, certificate, approval, consent, license, exemption, variance, franchise, permit, authorization or similar order or authorization from any Governmental Instrumentality required to be obtained or maintained in connection with the Facility, the Site or the Work.

			
	
			Person

				
			Any individual, company, joint venture, corporation, partnership, association, joint stock company, limited liability company, trust, estate, unincorporated organization, Governmental Instrumentality or other entity having legal capacity.

			
	
			Plant

				
			Means the same as “Facility”

			
	
			Project

				
			The engineering, design, procurement, manufacturing, fabrication, assembly, transportation and delivery of Equipment, construction, pre-commissioning, Commissioning, testing and start-up of the Facility and all other Work required to be performed under the EPC Agreement.

			
	
			Project Philosophies

				
			Engineering design documents defining the engineering and design philosophies to be embodied in the design engineering, construction and operating requirements for the Facilities developed during FEED engineering studies as referenced in the BOD.

			
	
			Project Requirements

				
			The Applicable Codes and Standards, Project Philosophies, and Specifications as described in the BOD

			
	
			Project Specification for Noise Control of General Equipment

				
			The specification that describes the requirements for noise control for the Facility.

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 12 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

 

	
			Term

				
			Definition

			
	
			Punchlist

				
			Those finishing items required to complete the Work, the completion of which shall not interrupt, disrupt or interfere with the safe and reliable operation or use of all or any part of the Facility as contemplated by the EPC Agreement, as more fully described in Section 11.6 of the EPC Agreement.

			
	
			Quality Management System (QMS)

				
			Integrated suite of quality assurance plans, procedures and working practices aimed at delivering Project quality.

			
	
			RAM

				
			Reliability, Availability and Maintainability

			
	
			Ready for Feed Gas Introduction or RFFGI

				
			With respect to Train 3, that all of the following have occurred: (i) Contractor has commissioned the systems and subsystems for RFFGI of Equipment for such Train and completed the activities necessary to support the introduction of hydrocarbons, including the utility and process systems, safeguarding and shutdown systems have been pre- commissioned, commissioned and integrity verified, all as set forth in greater detail in Attachment A and Attachment M; (ii) such Train is ready for acceptance of natural gas feed; (iii) Contractor has provided the required documents for FERC approval; and (iv) Contractor has delivered to Owner a RFFGI Certificate in the form of Schedule L-1 and Owner has accepted such certificate by signing such certificate.

			
	
			Ready for Start-up or RFSU

				
			With respect to Train 3, that all of the following have occurred:

			(i) Contractor has achieved and maintained Ready for Feed Gas Introduction for Train 3; (ii) all activities necessary to support the introduction of hydrocarbons, including all utility and process utility, safeguarding and shutdown systems have been pre-commissioned, commissioned and integrity verified; (iii) Commissioning is complete, cool down can commence for Train 3, and Train 3 is ready for startup and acceptance of feed gas; (iv) Equipment vendor representatives and other specialist Subcontractors required to support RFSU and early operations are mobilized at the Site; (v) Contractor has delivered to Owner a RFSU Certificate in the form of Schedule L-3 and Owner has accepted such certificate by signing such certificate; and (vi) performance by Contractor of all other obligations required under the EPC Agreement for RFSU of such Train 3.

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 13 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

 

	
			Term

				
			Definition

			
	
			Ready to Load First Cargo or RLFC

				
			That all of the following have occurred with respect to Train 3 : (i) Contractor has achieved and maintained RFSU for Train 3; (ii) the applicable LNG Storage Tank(s) designated to be utilized for Train 3 have been successfully cooled down and is operating normally with LNG stored in such tank(s); (iii) Train 3 has liquefied natural gas into LNG meeting all specifications and requirements of the EPC Agreement (other than the Minimum Acceptance Criteria and Performance Guarantees) and successfully transferred and stored such LNG into the applicable LNG Storage Tank(s); (iv) the LNG Storage Tank(s) and all LNG loading and unloading lines (and equipment and systems related thereto) necessary for transfer of LNG from such LNG Storage Tank(s) to the loading dock have been cooled down and filled with LNG while remaining at cryogenic temperatures via circulation to the LNG berth and are ready for transfer of LNG to an LNG Tanker and for return of vapor and boil-off gas to the LNG tanks, and the loading dock or berth have successfully passed and Owner has approved the pre-LNG arrived berth readiness review; (v) LNG is ready for delivery to, and capable of being delivered to and loaded into, an LNG Tanker via the loading dock; (vi) Contractor has delivered to Owner an RLFC Certificate for such Train in the form of Schedule L-4 and Owner has accepted such certificate by signing such certificate; and (vii) performance by Contractor of all other obligations required under the EPC Agreement for RLFC of Train 3.

			
	
			Record As-Built Drawings and Specifications

				
			Final, record Drawings and Specifications of the Facility showing the “as-built” conditions of the completed Facility in accordance with Attachment B, Schedule B-1

			
	
			Rio Bravo Pipeline custody transfer battery limit metering station

				
			Rio Bravo Pipeline receiving Project comprising Pipeline Receivers, Separators, Metering, and HIPPS, to be supplied and constructed by others.

			
	
			SEAMS

				
			Safety and environmental action management system

			
	
			SIL

				
			Safety integrity level

			
	
			Site

				
			Those parcels of land where the Facility shall be located, as shown in greater detail in Attachment Z. For the avoidance of doubt, the Site does not include any restricted areas designated in Attachment Z.

			
	
			Spare Parts

				
			Commissioning spare parts, Capital Spare Parts and Operating Spare Parts

			

 

 

	
			Term

				
			Definition

			
	
			Specifications

				
			Those documents consisting of the written requirements for Equipment, standards and workmanship for the Work and performance of related services, which are prepared as a part of and during the performance of the Work.

			
	
			Subcontract

				
			An agreement by Contractor with a Subcontractor for the performance of any portion of the Work.

			
	
			Subcontractor

				
			Any Person (other than an Affiliate of Contractor), including an Equipment supplier or vendor, who has a direct contract with Contractor to manufacture or supply Equipment which is a portion of the Work, to lease Construction Equipment to Contractor in connection with the Work, to perform a portion of the Work or to otherwise furnish labor or materials.

			
	
			Sub-subcontractor

				
			Any Person (other than an Affiliate of Contractor), including an Equipment supplier or vendor, who has a direct or indirect contract with a Subcontractor or another Sub-subcontractor to manufacture or supply Equipment which comprises a portion of the Work, to perform a portion of the Work or to otherwise furnish labor, materials or equipment (including Equipment).

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 14 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

 

	
			Term

				
			Definition

			
	 	
			That all of the following have occurred with respect to Train 3: (i)

			
	 	
			RFFGI has been achieved for Train 3; (ii) RFSU has been achieved

			
	 	
			for Train 3; (iii) RLFC has been achieved for Train 3; (iv) all

			
	 	
			Minimum Acceptance Criteria have been achieved; (v) in the case that

			
	 	
			all Performance Guarantees have not been achieved, Owner has

			
	 	
			accepted (such acceptance not to be unreasonably withheld)

			
	 	
			Contractor’s corrective work plan, and Contractor has turned over the

			
	 	
			Train pursuant to Section 11.5A of the EPC Agreement; (vi)

			
	 	
			Contractor and Owner have agreed upon a list of Punchlist items as

			
	 	
			set forth in Section 11.6 of the EPC Agreement; (vii) any Delay

			
	 	
			Liquidated Damages due and owing have been paid to Owner in

			
	 	
			accordance with Section 13.2 of the EPC Agreement; (viii) the entire

			
	 	
			Work related to Train 3 (including training and the delivery of all

			
	 	
			documentation, manuals and instruction books necessary for safe and

			
	 	
			proper operation) has been completed, except for Punchlist items, in

			
	 	
			accordance with the requirements and Specifications of the EPC

			
	
			Substantial Completion or SC

				
			Agreement; (ix) Contractor has delivered to Owner all Capital Spare Parts for Train 3 in accordance with Section 3.4B of the EPC

			Agreement; (x) Contractor has delivered to Owner the applicable

			
	 	
			Substantial Completion Certificate in the form of Schedule L-5 and

			
	 	
			as required under Section 11.3 of the EPC Agreement and Owner has

			
	 	
			accepted such certificate by signing such certificate; (xi) Train 3 is

			
	 	
			available for commercial operation in accordance with the

			
	 	
			requirements of the EPC Agreement, and with respect to Substantial

			
	 	
			Completion of Train 3, Train 3 has been integrated with Train 1 and

			
	 	
			Train 2; (xii) Contractor has obtained all Permits required to be

			
	 	
			obtained by Contractor under the EPC Agreement; and (xiii)

			
	 	
			Contractor has delivered to Owner a fully executed Interim Lien and

			
	 	
			Claim Waiver in the form of Schedules K-1 and K-2, fully executed

			
	 	
			Interim Lien and Claim Waivers from all Major Subcontractors in the

			
	 	
			form of Schedules K-3 and K-4 and, if requested by Owner, fully

			
	 	
			executed Interim Lien and Claim Waivers from all Major Sub-

			
	 	
			subcontractors substantially in the form of Schedules K-3 and K-4,

			
	 	
			covering all Work up to the date of Substantial Completion.

			
	
			TBE

				
			Technical bid evaluation

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 15 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

 

	
			Term

				
			Definition

			
	
			Train 1

				
			The first phase of the Work to be designed, procured, constructed, pre-commissioned, Commissioned, started up and tested for the Facility, including a nominal [***] mtpa natural gas liquefaction unit (net LNG in tanks, in holding mode), a comparably-sized natural gas pretreatment unit, LNG Storage Tank 1 and Tank 2, an LNG loading dock and marine structures capable of berthing and loading LNG Tankers with capacities from 125,000 m3 to 216,000 m3, the Common Systems necessary to operate Train 1, the control room and other systems.

			
	
			Train 2

				
			The second phase of the Work to be designed, procured, constructed, pre-commissioned, Commissioned, started up and tested for the Facility, including a nominal [***] mtpa natural gas liquefaction unit (net LNG in tanks, in holding mode), a comparably-sized natural gas pre-treatment unit, the Common Systems necessary to operate Train 2 (but not needed for Train 1) and other systems.

			
	
			Train 3

				
			The third phase of the Work to be designed, procured, constructed, pre-commissioned, Commissioned, started up and tested for the Facility, including a nominal [***] mtpa natural gas liquefaction unit (net LNG in tanks, in holding mode), a comparably-sized natural gas pre-treatment unit, the Common Systems necessary to operate Train 3 (but not needed for Train 1 or Train 2) and other systems.

			
	
			Unit

				
			An individual, and complete process component which is regarded as a single entity, but which can also form an individual component of a larger, more complex system.

			
	
			UPS

				
			Uninterrupted Power Supply

			
	
			WHRU

				
			Waste Heat Recovery Unit

			
	
			Work

				
			All obligations, duties and responsibilities required of Contractor pursuant to the EPC Agreement, including all Equipment, Construction Equipment, spare parts, procurement, engineering, design, fabrication, erection, installation, manufacture, delivery, transportation, storage, construction, workmanship, labor, pre- commissioning, Commissioning, inspection, training, Performance Tests, other tests, start-up and any other services, work or things furnished or used or required to be furnished or used, by Contractor in the performance of the EPC Agreement, including that set forth in Attachment A and Section 3.1A of the EPC Agreement and any Corrective Work. For the avoidance of doubt, the Work shall include the Train 3 Work.

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 16 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

 

	
			Term

				
			Definition

			
	
			(W)PQR

				
			(Weld) Procedure Qualification Record

			
	
			WPS

				
			Weld Procedure Specification

			

 

 

	 	
			4.0

				
			OWNERS EXECUTION PHILOSOPHY

			

 

Key philosophies and guiding principles that Owner strives to adopt for the Project are discussed in this section.

 

	 	
			4.1

				
			PROJECT MANAGEMENT

			

 

	 	
			●

				
			Contractor and Owner shall work together in an open, transparent, and cooperative manner in the interest of the Project to deliver a Project that is successful for both Parties;

			

	 	
			●

				
			Contractor and Owner shall work together to minimize risk exposure for both Parties;

			

	 	
			●

				
			Owner’s Project team shall be structured on a lean, fit- for-purpose basis, applying spot checks in witness points and selective audits. It shall be structured to engage with the Contractor’s team in an efficient manner;

			

	 	
			●

				
			Contractor shall submit to Owner a Project Execution Plan which details their organization structure (e.g. sole execution or joint venture, construction management team / Subcontractor), number and location of operating centers, and modular versus stick-built erection);

			

	 	
			●

				
			After the Original Effective Date of the EPC contract, the Owner and its advisors as well as representatives from Owner’s insurers and Lenders, have the right to access all areas in the operating centers (home office, fabrication facilities and Site) where Work is under control or being performed by Contractor without obtaining Contractor’s permission. As such those accessing shall comply with prevailing safety and security regulations; and

			

	 	
			●

				
			Contractor shall turn over specified Drawings, Specifications and other design documents, construction documents and databases, that are to be delivered to Owner, including the 3D model, in native format as part of the Facility turnover.

			

 

	 	
			4.2

				
			HEALTH, SAFETY AND SECURITY

			

 

	 	
			●

				
			Contractor shall comply with all obligations found in the EPC Agreement, as well as local safety regulations for all operating centers (home office, engineering centers, fabrication facilities and Site) as a minimum;

			

	 	
			●

				
			Contractor shall supply Owner with a copy of their HSSE philosophies and derived policies;

			

	 	
			●

				
			Contractor shall update their most recent OSHA 300 Safety Logs covering the last 3 years prior to bid submission;

			

	 	
			●

				
			All Project related safety statistics shall be included in the Contractor’s weekly and monthly reports;

			

	 	
			●

				
			Contractor shall conduct safety audits during the life of the Project and provide summaries of the results to Owner;

			

	 	
			●

				
			Design and construction method selections shall incorporate related safety aspects;

			

	 	
			●

				
			Owner shall be invited to be an active participant in all safety audits and shall be involved in all incident investigations with appropriate provisions are made to preserve applicable legal privileges;

			

	 	
			●

				
			The design shall take into consideration ergonomics; and

			

	 	
			●

				
			SIMOPS requirements to be addressed.

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 17 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

	 	
			4.3

				
			ENVIRONMENTAL

			

 

	 	
			●

				
			Contractor shall demonstrate compliance with all environmental requirements for air, water and noise emissions and select engineering, construction and logistics solutions that minimize the impact on the environment and surrounding infrastructure as far as practical, and within the limits as stipulated in the Permits; and

			

	 	
			●

				
			Contractor shall have a well-developed environmental management plan with execution strategies for dealing with emergency and adverse weather events.

			

 

	 	
			4.4

				
			PERMITTING

			

 

	 	
			●

				
			Contractor shall support all Permit filings as required.

			

 

	 	
			4.5

				
			QUALITY

			

 

	 	
			●

				
			Contractor shall provide for Owner’s review an external audit schedule within [***] ([***]) Days of LNTP.

			

	 	
			●

				
			Owner shall have access to review external & internal quality audit non-compliances and close-out actions, except those that have a commercial nature.

			

 

	 	
			4.6

				
			COST AND SCHEDULE BALANCE

			

 

	 	
			●

				
			Contractor shall propose an execution plan which provides optimal overall cost given schedule constraints.

			

 

	 	
			4.7

				
			COMMERCIAL

			

 

	 	
			●

				
			To the extent commercially practical Contractor shall make full use of framework agreements, master service agreements and master purchase agreements put in place by Owner;

			

 

	 	
			4.8

				
			ENGINEERING

			

 

	 	
			●

				
			Parties shall strive to minimize change to the Project once the EPC contract has been executed. The ultimate goal shall be to limit changes to those required by regulations or changes in legislation. Contractor shall utilize an efficient and robust change management process for the benefit of both Parties. This shall also ease the processing of detailed work packages and change management with FERC;

			

	 	
			●

				
			Owner shall have ongoing access to EPC design and construction records for review purposes through the Contractor’s electronic data management system;

			

	 	
			●

				
			Design shall comply with codes, standards and Applicable Law;

			

	 	
			●

				
			GECP level of plant automation and state-of-the-art plant condition monitoring, to support a lean operations and maintenance Owner’s team;

			

	 	
			●

				
			GECP level of overall Facility availability;

			

	 	
			●

				
			Design considerations include: ability to construct, commission, test, operate and maintain the Facility in a safe and efficient manner; and

			

	 	
			●

				
			Equipment design and selection shall respect the desire to avoid excessive maintenance. Owner desires Contractor to include in the selection the life-cycle cost.

			

 

	 	
			4.9

				
			CONSTRUCTION MANAGEMENT, STARTUP AND OPERATIONS

			

 

	 	
			●

				
			In addition to the design, engineering and construction of the Facility, Contractor shall be expected to start-up, maintain and operate the Facility through SC of Train 3. Activities include:

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 18 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

 

	 	
			1.

				
			Preparation of training, maintenance and operations manuals;

			

	 	
			2.

				
			Training of Owner operations and maintenance personnel;

			

	 	
			3.

				
			Supervision of Owners operations and maintenance personnel;

			

	 	
			4.

				
			Commissioning;

			

	 	
			5.

				
			Start-up;

			

 

	 	
			6.

				
			Initial operations;

			

	 	
			7.

				
			Performance Tests and operations tests;

			

	 	
			8.

				
			Maintenance and upkeep of the Site and Facility until SC is achieved; and

			

	 	
			9.

				
			Loading of Equipment and plant data, inclusive of baseline readings, into applicable plant integrity and maintenance management systems in time to work with these support systems from Ready for Start Up (“RFSU”).

			

 

	 	
			●

				
			Owner shall have the right to occupy and make use of the permanent buildings at an agreed upon time with Contractor in advance of SC of Train 3.

			

 

	 	
			4.10

				
			COMMUNITY AND STAKEHOLDER ENGAGEMENT

			

 

	 	
			●

				
			Contractor shall implement a community engagement program which takes into consideration active participation of the local vendors and contractors; and

			

	 	
			●

				
			Contractor shall work together with Owner in local and regional stake holder interactions.

			

 

	 	
			4.11

				
			REPORTING

			

 

	 	
			●

				
			Contractor shall provide, but not limited to the below, reports subject to those defined within the EPC Agreement executed between Owner and Contractor;

			

	 	
			●

				
			Contractor shall inform Owner and provide copies of any communications with applicable Governmental Instrumentalities;

			

	 	
			●

				
			Contractor shall supply all required information to support Owner tax-related filings; and

			

	 	
			●

				
			Contractor shall submit comprehensive and transparent progress reports.

			

 

	 	
			5.0

				
			EPC AGREEMENT REFERENCE DOCUMENT LIST

			

 

The EPC Agreement will have two sets of reference documents:

 

	 	
			●

				
			Documents listed in the BOD, Appendix 5, and

			

	 	
			●

				
			A complete set of verified FEED documents

			

 

	 	
			6.0

				
			SCOPE OF FACILITIES

			

 

Train 3 is an identical copy of Train 1 and Train 2 LNG liquefaction and pre-treatment facilities, and ties into to a common NG supply, LNG and condensate run-down lines, and is connected to extended utilities distribution and process control. The scope includes amongst others:

 

	 	
			●

				
			Natural gas pretreatment units, including:

			

	 	
			●

				
			Acid gas removal unit (including H2S scavenging & Hg removal), ([***]),

			

	 	
			●

				
			Dehydration unit ([***])

			

The specification of treated gas exiting the Dehydration Unit shall be pursuant to the BOD and the Process Design Basis,

	 	
			●

				
			HRU, ([***]); and the specification of treated gas exiting the dehydration unit shall be as per the BOD and Process Design Basis

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 19 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

	 	
			●

				
			Natural gas liquefaction unit, including:

			

	 	
			●

				
			Refrigeration, ([***]);

			

	 	
			●

				
			Compressor string A, ([***]);

			

	 	
			●

				
			Compressor string B, ([***]); and

			

	 	
			●

				
			Liquefaction, ([***])

			

	 	
			●

				
			Additional detail:

			

	 	
			●

				
			Train 3 North Substation

			

	 	
			●

				
			Train 3 LER

			

	 	
			●

				
			Train 3 South Substation

			

	 	
			●

				
			Train 3 ASDS Substation 1

			

	 	
			●

				
			Train 3 ASDS Substation 2

			

	 	
			●

				
			Train 3 Re-compressor ASDS Substation

			

	 	
			●

				
			Common Systems and infrastructure Equipment required for the operation of Train 3 but not required for the operation of Train 1 or Train 2, as indicated in Major Equipment List, [***], such as:

			

	 	
			●

				
			AGRU oxidizer to similar design as in Train 1 except that treatment of condensate storage vapor returns is not required;

			

	 	
			●

				
			Extended electrical power distribution, ICSS, and Telecoms network, inclusive CCB added Equipment;

			

	 	
			●

				
			Fire water and utilities distribution extensions;

			

	 	
			●

				
			Roads and paving to serve the Train 3 area.

			

	 	
			●

				
			Train 3 LNG rundown to tie-in location in LNG storage tank area

			

	 	
			●

				
			LNG Train 3 Underground Works

			

	 	
			●

				
			Temporary Facilities required for construction and initial operation of the facilities.

			

	 	
			●

				
			Tie-ins for expansion to Train 4 rundown, to facilitate future expansion without disrupting operations.

			

	 	
			●

				
			Tie-in of Train 3 roads to Site roads,

			

	 	
			●

				
			Train 3 Surface water drainage systems segregated by source, or potential contamination;

			

	 	
			●

				
			Effluent water treatment, [***] (primary treatment only – including Holding Ponds and Outfalls, and First Flush Basins for Train 3);

			

	 	
			●

				
			Common Systems and infrastructure required for the operation of Train 3, including:

			

	 	
			●

				
			Boil-off gas compression facilities for Train 3 with compressor installed and ready for operation at RFSU Train 3, ([***]),

			

	 	
			●

				
			Tie-ins to Amine storage and Hot Oil Storage

			

	 	
			●

				
			Tie-ins to Refrigerant storage;

			

	 	
			●

				
			Utility Systems, including the following:

			

	 	
			■

				
			Essential Power Generation Systems including the following:

			

	 	
			■

				
			Essential power generator, ([***]) (one additional unit for Train 3)

			

	 	
			■

				
			Essential Power Distribution to Train 3 users

			

	 	
			■

				
			Water Storage and Water Supply Systems, comprising the following:

			

	 	
			■

				
			Tie-in to Fresh water system, ([***]);

			

	 	
			■

				
			Tie-in to Drinking water system, ([***]);

			

	 	
			■

				
			Tie-in to Demineralized water system, ([***]);

			

	 	
			■

				
			Tie-in to and extension of Firewater, firefighting and safety systems

			

	 	
			■

				
			Tie-in to Plant and instrument air system, ([***]);

			

	 	
			■

				
			Tie-in to Nitrogen distribution system, ([***]);

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 20 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

	 	
			■

				
			Tie-in to Fuel gas system, ([***]);

			

	 	
			■

				
			Additional circuit breakers in Main Intake Station 1, [***] for supply of electrical power to Train 3 North Substation; and

			

	 	
			■

				
			Electric power distribution and lighting systems serving Train 3, including tie-in to Main Intake Station 1.

			

 

 

	 	
			7.0

				
			CONTRACTOR SCOPE OF WORK

			

 

Contractor shall perform the Work described in this SOW in accordance with the requirements of the EPC Agreement.

 

	 	
			7.1

				
			HOME OFFICE SERVICES

			

 

Contractor shall include but not be limited to providing the following home office services:

 

	 	
			●

				
			Project Management and Administration (Refer to Section 8 of this SOW);

			

	 	
			●

				
			Quality Assurance (Refer to Section 9 of this SOW);

			

	 	
			●

				
			Engineering (Refer to Section 10 of this SOW);

			

	 	
			●

				
			Engineering by specialist third-party consultants required to support and/or validate Contractor’s engineering design (Refer to Section 11 of this SOW); and

			

	 	
			●

				
			Procurement (Refer to Section 12 of this SOW).

			

 

	 	
			7.2

				
			SUPPLY OF EQUIPMENT AND MATERIALS REQUIRED TO CONSTRUCT THE FACILITY

			

 

Contractor shall include but not be limited to supplying Equipment required to construct the Facility, including the following:

 

	 	
			●

				
			All tagged Equipment (Refer to Section 12.6 of this SOW);

			

	 	
			●

				
			Bulk material items to be incorporated as part of the permanent works (Refer to Section 12.7 of this SOW);

			

	 	
			●

				
			Spare parts (Refer to Section 12.8 of this SOW);

			

	 	
			●

				
			Catalysts and chemicals (Refer to Section 12.9.1 of this SOW);

			

	 	
			●

				
			Oils and lubricants (Refer to Section 12.9.2 of this SOW);

			

	 	
			●

				
			Furnishings, fittings and special Equipment for installation within Facility buildings (Refer to Section 12.10.1 of this SOW);

			

	 	
			●

				
			Workshop Equipment (Refer to Section 12.10.2 of this SOW);

			

	 	
			●

				
			Portable firefighting and miscellaneous safety Equipment (Refer to Section 12.10.3 of this SOW); and

			

	 	
			●

				
			Plant mobile Equipment (Refer to Section 12.10.4 of this SOW).

			

 

	 	
			7.3

				
			TRAFFIC AND LOGISTICS SERVICES

			

 

Contractor shall include but not be limited to providing the traffic and logistic services defined in Section 12.11 of this SOW.

 

	 	
			7.4

				
			MATERIALS MANAGEMENT SERVICES

			

 

Contractor shall include but not be limited to providing the materials management services defined in Section 13 of this SOW.

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 21 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

 

	 	
			7.5

				
			SUBCONTRACTED SERVICES

			

 

Contractor shall include but not be limited to providing the subcontracted services defined in Section 14 of this SOW.

 

	 	
			7.6

				
			SERVICES REQUIRED TO CONSTRUCT THE FACILITY

			

 

Contractor shall include but not be limited to providing the construction services required to construct the Facility listed in Section 6 of this SOW.

 

	 	
			●

				
			General (Refer to Section 15.1 of this SOW);

			

	 	
			●

				
			Summary construction scope of work (Refer to Section 15.2 of this SOW);

			

	 	
			●

				
			Rules & regulations (Refer to Section 15.3 of this SOW);

			

	 	
			●

				
			Community awareness (Refer to Section 15.4 of this SOW);

			

	 	
			●

				
			Construction direct labor (Refer to Section 15.5 of this SOW);

			

	 	
			●

				
			Provision of construction plant and equipment required to build the facilities (Refer to Section 15.6 of this SOW);

			

	 	
			●

				
			Supply of the construction consumables (Refer to Section 15.7 of this SOW);

			

	 	
			●

				
			Subcontracts for the supply and erection of Equipment and materials forming part of the Project (Refer to Section 15.8 of this SOW);

			

	 	
			●

				
			Supply of the construction utilities, including fresh water supply and construction power supply: (Refer to Section 15.11 of this SOW);

			

	 	
			●

				
			Sewage disposal (Refer to Section 15.11 of this SOW);

			

	 	
			●

				
			Waste material handling and disposal (Refer to Section 15.12 of this SOW);

			

	 	
			●

				
			Provision of Site security (Refer to Section 15.13 of this SOW);

			

	 	
			●

				
			Provision of heavy lift equipment (Refer to Section 15.14 of this SOW);

			

	 	
			●

				
			Temporary facilities required to support construction and Commissioning of the facilities (Refer to Section 15.15 of this SOW);

			

	 	
			●

				
			Provision of Construction Equipment (Refer to Section 15.16 of this SOW); and

			

	 	
			●

				
			Provision of Contractor’s construction permits (Refer to Section 15.17 of this SOW).

			

 

	 	
			7.7

				
			PRECOMISSIONING AND COMMISSIONING SERVICES

			

 

Contractor shall include but not be limited to providing pre-commissioning and Commissioning services as follows:

 

	 	
			●

				
			General (Refer to Section 16.1 of this SOW);

			

	 	
			●

				
			Commencement of Commissioning and start-up (Refer to Section 16.2 of this SOW);

			

	 	
			●

				
			Performance Tests to demonstrate that the facilities meet the Performance Guarantees and Minimum Acceptance Criteria. Performance Tests shall be carried out in accordance with the requirements stated in the EPC Agreement;

			

	 	
			●

				
			Preparation of operations management procedures (Refer to Section 18.2 of this SOW);

			

	 	
			●

				
			Preparation of Site security procedures (Refer to Section 15.13 of this SOW);

			

	 	
			●

				
			Preparation of maintenance procedures (Refer to Section 18.3.1 of this SOW);

			

	 	
			●

				
			Preparation of statutory maintenance and inspection procedures (Refer to Section 18.3.2 of this SOW);

			

	 	
			●

				
			Preparation of pre-commissioning and Commissioning instructions (Refer to Section 19.0 of this SOW);

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 22 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

	 	
			●

				
			Preparation of start-up, operations and shut-down materials (Refer to Section 19.0 of this SOW); and

			

	 	
			●

				
			Preparation of operation and maintenance procedures (Refer to Section 19.0 of this SOW).

			

 

	 	
			7.8

				
			SIMOPS

			

 

Contractor shall ensure simultaneous operations provisions (Refer to Section 17 of this SOW). The overall design philosophy shall include the provision of tie-ins to allow sequential expansion of the Expanded Facility without the need for extensive and complete shutdowns of operations.

 

	 	
			7.9

				
			TRAINING OF OWNER PERSONNEL

			

 

Contractor shall include but not be limited to provide training for Owner personnel as detailed in Section 20 of this SOW.

 

	 	
			7.10

				
			ASSISTANCE TO OWNER

			

 

Contractor shall include but not be limited to the following assistance to Owner:

 

	 	
			●

				
			Input for regulatory submissions by the Owner (Refer to Section 21.1 of this SOW); and

			

	 	
			●

				
			Technical support for Owner’s regulatory consultants (Refer to Section 21.2 of this SOW)

			

	 	
			●

				
			Home office services for spare parts with reference to the Spares Philosophy which contains estimated lists.

			

	 	
			●

				
			Labor statistics on extent of actual local content to allow Owner to interact with Cameron County on property tax and possible rebates.

			

	 	
			●

				
			Contractor is to include in its Monthly Progress Reports the local labor content percentage as of the reporting period in the applicable month for the Project through the latest reporting period. [***].

			

 

	 	
			7.11

				
			THIRD-PARTY INTERFACES

			

 

Contractor shall include but not be limited to work with respect to Project third-party interfaces as described in Section 22 of this SOW.

 

	 	
			7.12

				
			FACILITIES FOR OWNER PERSONNEL

			

 

Contractor shall include but not be limited to providing the following facilities for Owner’s personnel:

 

	 	
			●

				
			Office accommodations for Owner personnel in Contractor’s home office (Refer to Section 23.1 of this SOW); and

			

	 	
			●

				
			Office accommodations for Owner personnel at Site (Refer to Section 23.2 of this SOW).

			

	 	
			7.13

				
			PERFORMANCE TESTS

			

 

Contractor shall undertake performance testing of the completed facilities as detailed in Section 24 of this SOW.

 

	 	
			7.14

				
			PROCESS LICENSE FEES

			

 

Contractor shall include the cost of third-party process license fees as detailed in Section 25 of this SOW.

 

	 	
			7.15

				
			RECORD AS-BUILT DRAWINGS AND SPECIFICATIONS

			

 

Contractor shall update Drawings and Specifications to Record As-Built status as indicated under Section 27 of this SOW.

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 23 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

 

	 	
			7.16

				
			HANDOVER DOCUMENTATION

			

 

Contractor shall provide documentation as described in Section 28 of this SOW.

 

	 	
			7.17

				
			INFORMATION SYSTEMS FOR OWNER USE

			

 

Contractor shall specify and set up information software systems for Owner’s use following handover as described under Section 29 of this SOW.

 

	 	
			7.18

				
			EXCLUSIONS FROM CONTRACTOR’S SCOPE OF WORK

			

 

Exclusions from Contractor’s SOW are listed under Section 30.

 

	 	
			8.0

				
			PROJECT MANAGEMENT AND ADMINISTRATION

			

 

Contractor shall assign a qualified and experienced Project management team for effective control and coordination of all aspects of Project execution throughout all phases of EPC execution through to contract closeout.

 

Contractor shall maintain a Project-specific EPC Project Execution Plan. The EPC Project Execution Plan shall be a comprehensive project management document that describes the overall execution strategy for the Project; establishes the methods by which the Contractor executes, monitors, and controls the Project; and consolidates the integration of a number of discrete function specific execution plans created for managing all elements of the Project execution.

 

[***].

 

	 	
			9.0

				
			QUALITY ASSURANCE

			

 

Contractor shall prepare and implement a Project-specific quality plan approved by Owner. The Plan shall define the Quality Assurance (QA) and Quality Control (QC) services that will be carried out by Contractor during the Engineering, Procurement and Construction (EPC) phase of the Project to design, build, commission and start-up a safe, legally complaint, repeatable, and fully functional Facility. The quality plan will comply with the requirements for a quality plan stated in the EPC Agreement.

 

Contractor shall:

 

	 	
			●

				
			Require that Subcontractors and Sub-Subcontractors comply with the quality requirements in the EPC Agreement, and develop their own quality plans that meet the intent of the requirements in the Contractor’s Quality Plan;

			

	 	
			●

				
			Operate a quality management system throughout execution of the Project;

			

	 	
			●

				
			Appoint a dedicated management representative, with responsibility for ensuring that the quality management system is maintained and implemented;

			

	 	
			●

				
			Organize and facilitate Quality Workshops for the project team. Owner will be invited to attend these workshops.

			

	 	
			●

				
			Undertake quality surveillance activities and audits associated with engineering, procurement and construction in accordance with the EPC Agreement.

			

	 	
			●

				
			Include in the overall Project Quality Plan the execution of two (independent) joint PEER reviews, each lasting 1 to 2 weeks and attended by senior staff not directly involved in the project. These shall cover:

			

 

	 	
			●

				
			Detailed design & engineering close-out review when progress beyond 80%;

			

 

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 24 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

	 	
			●

				
			Pre-operations readiness review, between MC and prior to RFSU, to a) check proper close-out on plant changes, b) spot check as-built plant line-up, c) check available documentation to safely start-up the Plant, and d) level of integration and training of the joint commissioning team;

			

 

	 	
			●

				
			[***].

			

 

The Project quality plan shall identify a program of quality audits to be performed. Owner will be given notification of the scope and date of planned quality audits specified in the Project quality plan to enable Owner’s participation in non-commercial quality audits as an observer. The quality auditing will cover key Contractor Project activities, including the activities of Major Subcontractors and Major Sub- subcontractors. If a noncompliance is identified during a quality audit, Contractor shall inform Owner on the corrective action to be taken, report status updates, and inform when the corrective action is closed out, as part of monthly progress reporting. Where the Contractor performs ad-hoc non- commercial internal quality audits without invitation to the Owner, then any corrective actions and follow-up will be shared with Owner, as part of monthly progress reporting.

 

 

	 	
			10.0

				
			ENGINEERING

			

 

	 	
			10.1

				
			GENERAL

			

 

Contractor shall perform engineering necessary to define the technical requirements for the Facility listed under Section 6 of this SOW to the extent necessary for the procurement of Equipment, including bulk materials and consumables necessary to construct the Facility, and to safely construct, commission, start-up, and operate the facilities. Technical requirements shall be in accordance with the requirements defined within the BOD and the Project Drawings and Specifications referenced therein plus the full set of updated verified FEED documents.

 

Contractor’s engineering services shall comprise the following:

 

	 	
			a.

				
			Any FEED-identified actions to be performed as part of the EPC Work, e.g., HAZOP recommendations, SEAMS actions, etc.

			

 

	 	
			b.

				
			Contractor shall prepare engineering Drawings and Specifications or other documentation necessary to safely construct, commission, start-up, and operate the Facility.

			

	 	
			c.

				
			EPC-specific HAZOP and LOPA workshops with any items of non-conformance with Project codes, standards, philosophies, and specifications that are identified as being required to be implemented by Contractor;

			

	 	
			d.

				
			Preparation of material take-offs listing bulk materials required to construct the permanent works;

			

	 	
			e.

				
			Preparation of material requisitions for the procurement of Equipment, bulk materials and consumables required for the Work;

			

	 	
			f.

				
			Review and evaluation of Subcontractor quotations received, bid conditioning, and technical recommendation for award;

			

	 	
			g.

				
			Review and approval of Subcontractor documentation to ensure compliance with Project Specifications;

			

	 	
			h.

				
			Performance of design reviews such that the integrity, maintainability, operability and constructability are addressed by Contractor’s engineering in accordance with the EPC Agreement;

			

	 	
			i.

				
			Provision of technical assistance to Owner, as listed under Section 21 of this SOW;

			

 

Contractor shall update Drawings and Specifications to Record As-Built status as indicated under Section 27 of this SOW.

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 25 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

	 	
			j.

				
			Witnessing of Equipment and materials testing, and Subcontractor performance tests where required based on criticality rating and purchase order requirements;

			

	 	
			k.

				
			Recommendations for Operating Spare Parts for Owner, as listed under Section 12.8 of this SOW;

			

Operating spare parts exclude the Capital Spare Parts notionally listed in the Spares Philosophy.

 

	 	
			l.

				
			Preparation of Record As-Built Drawings and Specifications, as listed under Section 27 of this SOW;

			

	 	
			m.

				
			Preparation of handover documentation, as specified under Section 28 of this SOW and in accordance with the EPC Agreement;

			

	 	
			n.

				
			Preparation of technical documentation packages for review and approval by Governmental Instrumentalities when required to obtain necessary Permits for the Work, as listed under Section 21.1 of this SOW;

			

	 	
			o.

				
			Contractor shall incorporate the latest OSHA design requirements into the Facility and Expanded Facility design. This includes, for example, OSHA-required changes in handrail design; and

			

	 	
			p.

				
			Any other activity identified by Contractor required to perform the Work to deliver the Project.

			

 

Contractor shall enter into and administer (i) process licenses and (ii) technical services Subcontracts with process licensors APCI, BASF and [***] for the LNG liquefaction, carbon dioxide removal, and HRU, respectively.

 

Contractor will develop and implement a safety in design program for the detailed design of the Facility to ensure that the engineering and design developed by the Contractor integrates elements of hazard identification and risk assessment methods to select design solutions and details that reduce risks of injury from construction through operations and maintenance to a level that is as low as reasonably practical. This program will include and be applicable to all engineering disciplines and to all aspects of the Work and will be made available to the Owner for review. This safety in design program shall also encompass ergonomic reviews to ensure operability is duly considered (including operability Model reviews).

 

	 	
			10.2

				
			SPECIFIC TASKS BY DISCIPLINE

			

 

Contractor shall, in addition to preparation of engineering deliverables, perform the following discipline specific engineering tasks, where required to address design aspects of Train 3 not duplicated from Train 1 and Train 2.

 

	 	
			10.2.1

				
			Process Engineering

			

 

Contractor shall prepare process engineering deliverables and documentation.

 

Contractor process engineering activities shall, in addition to the above, comprise the following:

 

	 	
			1.

				
			Contractor shall obtain and incorporate into the engineering design for the LNG liquefaction Unit necessary engineering information from APCI.

			

	 	
			2.

				
			Contractor shall obtain and incorporate into the engineering design for the acid gas removal Unit necessary engineering information from BASF.

			

	 	
			3.

				
			Contractor shall obtain and incorporate into the engineering design for the HRU Unit necessary engineering information from [***].

			

	 	
			4.

				
			Dynamic Simulation

			

 

Contractor shall update Drawings and Specifications to Record As-Built status as indicated under Section 27 of this SOW.

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 26 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

Contractor shall prepare a number of discrete process dynamic simulations to model system performance for the following critical areas of the process system design:

 

	 	
			1.

				
			MR compressor simulation

			

	 	
			2.

				
			PR compressor simulation

			

	 	
			3.

				
			BOG compressor simulation

			

 

	 	
			4.

				
			Regen compressor simulation

			

For each of the above Contractor shall perform the following:

	 	
			a.

				
			Anti-surge system study

			

	 	
			b.

				
			Start-up study (including whether there is a necessity for suction de-superheater for the propane compressors during start-up of second compressor string with first compressor string operating)

			

	 	
			c.

				
			Blocked outlet scenario study (compressor flare load study)

			

	 	
			d.

				
			Control scheme validation study

			

 

Surge analysis of rundown lines (LNG Train to LNG storage tank)

 

Process engineering shall include verification of tie-ins between Train 3 and Train 1 and Train 2 including Common Systems.

 

Contractor shall include control logic and equipment design details based on the Equipment selected.

 

The purpose of the dynamic simulations is to prove the satisfactory operation of the subject Equipment concerned over the range of operations specified by the BOD. A report on the simulation findings shall be made available to Owner.

 

	 	
			5.

				
			LNG Production Model

			

 

Contractor shall develop and maintain an LNG production model that will be used to forecast LNG production based on the range of constraints defined in the BOD. The model will be updated to reflect the latest P&ID issue and incorporate relevant final vendor data. Contractors projections for LNG production shall be made available to Owner.

 

In detailed design Contractor shall clearly identify Equipment and system bottlenecks in the LNG train (and ship-loading system) to ensure that the upper and lower limits of safe operating envelopes are well defined prior to Train 3 reaching MC, and well defined in the operating instructions. Contractor shall also verify that under extreme temperatures, i.e. between 99.9% exceedance and 0.1% exceedance, LNG production is not interrupted.

 

If in the design development it is discovered there are some select bottlenecks that can readily be removed to allow for example full utilization of available power to the liquefaction process, then such proposed change(s) shall be discussed with Owner.

 

	 	
			6.

				
			Condensate Backflow

			

 

During detailed design, EPC Contractor shall ensure backflow is not possible from the condensate header into the LNG Trains.

 

	 	
			10.2.2

				
			Materials Design Technology

			

 

Contractor shall prepare material design technology deliverables and documentation.

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 27 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

 

Contractor material design technology activities shall, in addition to the above, comprise the following:

 

	 	
			1.

				
			Welding

			

 

Contractor shall prepare Welding Procedure Specifications (WPS) for all relevant combinations of material, material thickness and size of material to be welded, including requirements for pre- and post-weld heat treatment if applicable. The Specifications shall include requirements for weld procedure qualification and welding operator qualifications.

 

Contractor shall prepare Specifications to define requirements for non-destructive testing (NDT) and pressure testing applicable to all welding operations.

 

Subcontractor WPSs and procedure qualification records (PQRs) shall be reviewed and approved by Contractor. Contractor shall also review and approve Subcontractor procedures for non-destructive examination, post weld heat treatment and pressure testing. Contractor shall require that no Subcontractor welding is carried out until Contractor has reviewed Subcontractors WPSs and PQRs and has given written authorization to proceed.

 

Welding records shall be submitted as part of the Record As-Built Drawings and Specifications provided by Contractor to record the weld identification number, WPS, date of welding, welding operator, NDT record identification number and initials of inspector for every weld. These shall be accompanied by weld maps to identify the location and identification number of each weld.

 

	 	
			2.

				
			Chemical Cleaning

			

 

Contractor shall identify the extent of chemical cleaning to be carried out for each system. Contractor shall indicate the extent of chemical cleaning on the P&IDs. Contractor will prepare a specification and procedure that defines fluids, temperatures, and durations to be used which complies with the Project HSE requirements.

 

	 	
			3.

				
			Cathodic Protection

			

 

Contractor shall develop Specifications for the, design, supply and installation of cathodic protection systems required for the Project.

 

	 	
			4.

				
			Material Certification

			

 

Contractor shall require that pressure containing Equipment, bulk piping and other applicable materials are supplied with material certification in accordance with Applicable Codes and Standards.

 

	 	
			5.

				
			Positive Material Identification

			

 

Contractor shall implement a program of Positive Material Identification (PMI) for materials used in cryogenic service. Carbon steel materials do not require PMI certification.

 

	 	
			6.

				
			Noise

			

 

The Project is subject to regulatory requirements on noise emissions to the environment. The requirements of document 26251-100-3PS-N04-00001 (RG-BL-000-MEC-SPC-00112), Project Specification for Noise Control of General Equipment, referenced in the BOD and all Permit requirements pertaining to noise shall be incorporated into all aspects of the facilities design.

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 28 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

Contractor shall develop a noise model based on the Project Specification for Noise Control of General Equipment which shall be updated during the course of detail design and Equipment procurement.

 

Contractor shall carry out a post start-up noise survey to demonstrate compliance with the noise limits specified in the Project Specification for Noise Control of General Equipment and Permits. As an operational test, three noise model calibration points will be set within the Site boundaries to check overall noise generation. Noise generation shall also be checked inside the facilities to verify correct marking of PPE zones.

 

	 	
			7.

				
			Acoustically Induced Vibration

			

 

Contractor shall carry out checks for acoustically induced vibration. Contractor shall prepare a report documenting this investigation for review by Owner. This report shall identify remedial measures and Contractor shall incorporate such remedial measures in the design.

 

	 	
			8.

				
			Reliability, Availability and Maintainability Analysis

			

 

Contractor shall develop a RAM model to determine the expected overall availability of the Project. The model shall be developed using input data from Subcontractor and Equipment Suppliers information and industry standards, such as OREDA.

 

	 	
			10.2.3

				
			Piping Design & Engineering

			

 

Contractor shall prepare piping design & engineering deliverables and documentation.

 

Contractor piping design & engineering activities shall, in addition to the above, encompass but not be limited to the following:

 

	 	
			1.

				
			Electronic Design Model

			

 

Contractor shall generate a three-dimensional (3D) computer-aided design (CAD) electronic model for the Project. Database files for Contractor’s final 3D Model, with full attributes, shall be provided to Owner.

 

[***].

 

	 	
			10.2.4

				
			Civil Engineering

			

 

Contractor shall prepare civil engineering deliverables and documentation.

 

Contractor civil engineering activities shall, in addition to the above, encompass the following:

 

	 	
			1.

				
			Site Surveys

			

 

Contractor shall review Site survey reports and geotechnical information made available during front-end engineering and design and carry out additional investigations as deemed necessary by Contractor for detailed design. Contractor shall issue the report on any additional surveys or geotechnical investigation to Owner for information and review.

 

[***].

 

	 	
			2.

				
			Not Used

			

	 	
			3.

				
			Not Used

			

	 	
			4.

				
			Not Used

			

	 	
			5.

				
			Not Used

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 29 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

	 	
			6.

				
			Soil Improvement

			

 

Contractor shall, in accordance with the geotechnical consultant’s recommendations, carry out soil improvement necessary to achieve required load bearing capacity as required for structures and buildings. [***].

 

[***].

 

	 	
			7.

				
			Foundations for Equipment and civil / steelwork structures

			

 

Contractor shall design all foundations required for supporting Equipment and civil / steelwork structures.

 

The location of foundations shall be included in the 3D CAD model for the Project.

 

	 	
			8.

				
			Train 3 Drainage Systems

			

 

Contractor shall design and construct the drainage systems in accordance with the Drainage and Wastewater Treatment Philosophy, 26251-100-3DR-M04-00004 (RG-BL-000-PRO-PHL- 00003) and Utility Design Basis [***] – Effluent and Waste Water Treatment 26251-100-3DR- V04-71001 (RG-BL-071-PRO-DES-00001), referenced in the BOD.

 

Contractor shall prepare drainage system drawings as required for construction and to support Owner’s Permit applications.

 

Design details of drainage systems shall be included in the 3D CAD model for the Project.

 

	 	
			9.

				
			LNG Impoundment and Spill Containment Systems

			

 

The design and sizing of the LNG impoundment basins shall be based on a design spill of LNG as defined by the code of federal regulations, title 49: Transportation, part 193: "Liquefied Natural Gas Facilities: Federal Safety Standards".

 

Design details of LNG impoundment and spill containment systems shall be included in the 3D CAD model for the Project.

 

	 	
			10.

				
			Tie-ins

			

 

Civil engineering work shall include design of tie-ins to the Expanded Facility drainage system and roads.

 

	 	
			10.2.5

				
			Structural Engineering

			

 

Contractor shall prepare structural engineering deliverables and documentation.

 

Contractor structural engineering activities shall, in addition to the above, encompass the following:

 

	 	
			1.

				
			Piling and Soil Mixing Design

			

 

Design details of the piling and soil mixing required to support Equipment and civil / steelwork structures. Location of piles shall be included in the 3D CAD model for the Project. Where piles are selected, they shall be executed so as to minimize noise. Contractor may use precast driven piles for onshore facility.

 

	 	
			2.

				
			Structural Members (Columns, Beams, and Other Supports)

			

 

Contractor shall design and specify all steelwork structures, and hand-over the structural calculation models as designed to support possible future plant changes.

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 30 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

Design details of all structural members shall be included in the 3D CAD model for the Project.

 

Contractor shall undertake calculations to verify that all structural components meet the requirements of applicable codes listed in 26251-100-3DS-G04-00001 (RG-BL-000-PM-LST- 00001), Codes and Standards List referenced in the BOD and shall determine loads imposed on foundations.

 

	 	
			3.

				
			Tie-ins

			

 

Structural engineering shall include any design and engineering required to support tie-ins from Train 3 to Trains 1 and 2 as well as the Common Systems.

 

	 	
			10.2.6

				
			Mechanical Engineering

			

 

Contractor shall prepare mechanical engineering deliverables and documentation.

 

Contractor mechanical engineering activities shall, in addition to the above, include the following:

 

	 	
			1.

				
			Preparation of Equipment specifications and mechanical datasheets for mechanical equipment falling within Contractor’s scope of supply.

			

	 	
			2.

				
			Preparation of requisitions for mechanical equipment for inquiry and for purchase.

			

 

	 	
			3.

				
			Review of Subcontractor bids, preparation of technical bid evaluations (TBEs), and technical conditioning of Subcontractor bids.

			

 

	 	
			4.

				
			Review of Subcontractor supplied documentation including the consolidation of comments received from other engineering disciplines.

			

	 	
			5.

				
			Review and resolution of Subcontractor concession requests.

			

 

	 	
			6.

				
			Review of Subcontractor spare parts recommendations and consolidation of recommended list of Operating Spare Parts.

			

	 	
			7.

				
			Attendance at, and witnessing of, Equipment performance testing, and factory and site acceptance tests where required by the inspection and test plan for the Equipment concerned.

			

	 	
			8.

				
			Mechanical engineering support during Commissioning, start-up and initial operation of the Project.

			

 

	 	
			10.2.7

				
			Process Safety, Fire Protection Engineering and Environmental Engineering

			

 

Contractor shall be responsible for the design and specification of safety and fire and gas detection and protection systems for the Facility. Contractor shall prepare the fire protection and safety engineering deliverables and documentation.

 

Contractor process safety and fire protection engineering activities shall, in addition to the above, provide the following:

 

	 	
			1.

				
			Perform consequence modelling / blast analysis.

			

	 	
			2.

				
			Plan, perform, participate and track status of actions resulting from design safety reviews and Process Hazards Analyses including hazard identification (“HAZID”), design hazardous operations (“HAZOPs”) and vendor package HAZOPs using Contractor’s safety and environmental action management systems (“SEAMS”). Contractor will incorporate outstanding action items from the FEED level HAZOP as well as perform a HAZOP and other PHA activities as part of this SOW.

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 31 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

	 	
			3.

				
			Prepare or provide necessary safety and environmental protection input to requisitions for fire and safety equipment, for environmental protection equipment, and for the review and technical evaluation of technical bids for the same.

			

	 	
			4.

				
			Review Subcontractor documents and drawings for compliance with the Project fire, safety and environmental protection philosophies and specifications in the Codes and Standards list referenced in the BOD.

			

	 	
			5.

				
			Provide necessary safety and environmental design input to submissions by Owner to responsible Governmental Instrumentalities, and also verify that design and engineering complies with agreed standards and Permit requirements.

			

 

	 	
			10.2.8

				
			Instrumentation and Control Engineering

			

 

Contractor shall prepare instrumentation and control engineering deliverables and documentation.

 

Contractor shall during the course of detailed engineering design finalize input/output (I/O) counts and the numbers of remote I/O cabinets etc., and co-ordinate with Owner’s nominated electrical, instrumentation & telecommunications (EI&T) equipment provider, ABB, for the necessary changes in systems design and equipment supply.

 

Contractor instrumentation and control engineering activities shall, in addition to the above, comprise the following:

 

	 	
			1.

				
			Ensure incorporation of instrument and control requirements into Project P&IDs, and specifications and datasheets for equipment prepared by other engineering disciplines.

			

	 	
			2.

				
			Preparation of requisitions for instrument and control equipment for inquiry and for purchase for any Equipment not supplied by Owner’s nominated electrical, instrumentation and telecommunications equipment supplier.

			

	 	
			3.

				
			Review of Subcontractor bids, preparation of TBEs, and technical conditioning of Subcontractor bids prior to purchase.

			

	 	
			4.

				
			Review engineering design deliverables provided by Owner’s nominated EI&T equipment provider for compliance with Project instrument and control system design philosophies and specifications.

			

 

	 	
			5.

				
			Coordinate its Work with that of Owner nominated third parties supplying and/or installing facilities or equipment within the Facility.

			

	 	
			6.

				
			Review Subcontractor documents and drawings for compliance with the Project instrument and control system design philosophies and specifications referenced in the BOD.

			

	 	
			7.

				
			Attendance at, and witnessing of, equipment performance testing, and factory and site acceptance tests where required by the inspection and test plan developed by Contractor.

			

	 	
			8.

				
			Attend factory and site acceptance for integrated control and safety system (ICSS) main subsystems.

			

	 	
			9.

				
			Instrumentation and control systems engineering support during Commissioning, start-up and initial operation of the Project.

			

	 	
			10.

				
			Any design or engineering required to integrate the control and operation of Train 3 into the central control room.

			

 

	 	
			10.2.9

				
			Electrical Engineering

			

 

Contractor shall prepare electrical engineering design deliverables and documentation.

 

Contractor shall during the course of detailed engineering design finalize electrical equipment design requirements and co-ordinate with Owner’s nominated EI&T equipment provider, ABB, to ensure that

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 32 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

changes in FEED design due to Contractor’s design development is properly and cost-effectively reflected in ABB systems design and equipment supply.

 

Contractor electrical engineering activities shall, in addition to the above, include to the following:

 

	 	
			1.

				
			Incorporate electrical design requirements into Project specifications and datasheets for equipment prepared by other engineering disciplines.

			

 

	 	
			2.

				
			PerformorSubcontracttoOwner’snominatedelectrical,instrumentationand telecommunications equipment provider the following electrical studies:

			

 

	 	
			●

				
			Load Flow and Power Factor Correction Studies

			

	 	
			●

				
			Fault Current Studies

			

	 	
			●

				
			Dynamic Performance Studies under Motor Starting Conditions

			

	 	
			●

				
			Harmonic Distortion Studies

			

	 	
			●

				
			Arc-Flash Study

			

	 	
			●

				
			Protection and Relay Coordination Studies

			

	 	
			●

				
			Cable sizing calculations

			

	 	
			●

				
			Equipment sizing calculations

			

	 	
			●

				
			Illumination levels

			

	 	
			●

				
			Motor restart study (as required pursuant to the Mechanical Equipment List)

			

	 	
			●

				
			Electric Magnetic Compatibility Review

			

 

	 	
			3.

				
			Preparation of requisitions for electrical equipment for inquiry and for purchase for any Equipment not supplied by Owner’s nominated electrical, instrumentation and telecommunications equipment supplier.

			

	 	
			4.

				
			Review of Subcontractor bids, preparation of TBEs, and technical conditioning of Subcontractor bids prior to purchase.

			

	 	
			5.

				
			Review engineering design deliverables provided by Owner’s nominated EI&T equipment provider, ABB, for compliance with Project electrical engineering design philosophies and specifications.

			

	 	
			6.

				
			Review Subcontractor documents and drawings for compliance with the Project electrical design philosophies and specifications specified in the BOD.

			

	 	
			7.

				
			Attendance at, and witnessing of, equipment performance testing, and factory and site acceptance tests where required by the inspection and test plan.

			

	 	
			8.

				
			Electrical engineering support during Commissioning, start-up and initial operation of the Project as set forth in this SOW.

			

	 	
			9.

				
			Design and engineering of Train 3 electrical supply from Main Intake Substation #1, including design of any required additional feeders from Pompano to Main Intake Substation #1.

			

 

	 	
			10.2.10

				
			Telecommunications Engineering

			

 

Contractor shall design and engineer in close cooperation with Owner’s nominated electrical, instrumentation and telecommunication equipment supplier the following telecommunication systems for Train 3 (including connections to such systems provided as part of Train 1 and Train 2) in accordance with the Project Telecommunication and Security System Philosophy, referenced in the BOD:

 

	 	
			●

				
			Office LAN

			

	 	
			●

				
			Security LAN

			

	 	
			●

				
			Telephone System

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 33 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

	 	
			●

				
			PAGA System

			

	 	
			●

				
			CCTV System

			

	 	
			●

				
			Access Control System

			

	 	
			●

				
			Hotline System

			

	 	
			●

				
			Plant Radio System

			

	 	
			●

				
			Plant Paging System

			

	 	
			●

				
			Intruder Detection System

			

	 	
			●

				
			Telecoms Management System

			

	 	
			●

				
			Video Conferencing System

			

	 	
			●

				
			Entertainment System

			

	 	
			●

				
			Intercom System

			

	 	
			●

				
			Fiber Optic Trunk System

			

 

Contractor shall prepare telecommunications engineering deliverables and documentation.

 

Contractor telecommunications engineering activities shall, in addition to the above, include the following:

 

	 	
			1.

				
			Preparation of requisitions for telecommunications equipment for inquiry and for purchase for any Equipment not supplied by Owner’s nominated electrical, instrumentation and telecommunications equipment supplier.

			

	 	
			a.

				
			Review of Subcontractor bids, preparation of TBEs, and technical conditioning of Subcontractor bids prior to purchase.

			

	 	
			b.

				
			Review engineering design deliverables provided by Owner’s nominated EI&T equipment provider for compliance with Project telecommunications design philosophies and specifications.

			

	 	
			c.

				
			Attendance at, and witnessing, of equipment performance testing, and factory and site acceptance tests where required by the inspection and test plan.

			

	 	
			d.

				
			Telecommunications system design support during Commissioning, start-up and initial operation of the Project as set forth in this SOW.

			

 

	 	
			10.2.11

				
			Information Technology & Information Management

			

 

Contractor shall implement a comprehensive information management plan covering all aspects of the Work including provision, resource, execution and management of the Project. Contractor’s information management plan shall include cyber security requirements and shall be subject to review by Owner.

 

Contractor scope of work comprises:

 

	 	
			1.

				
			Provide and manage secure information technology (IT) facilities, including hardware, software, networks, applications and systems capable of supporting the Work.

			

 

	 	
			2.

				
			Provide cyber security for all information management aspects of the Work.

			

	 	
			3.

				
			Provide and manage communications facilities required to support the Work.

			

	 	
			4.

				
			Provide and manage an electronic document management system (EDMS) to support the Work.

			

	 	
			5.

				
			Provide and manage document scanning facilities.

			

	 	
			6.

				
			Manage the development of engineering deliverables via the use of Contractor’s CAD applications.

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 34 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

	 	
			7.

				
			Install and manage remote access facilities as required in this SOW for effective management of the Work.

			

	 	
			8.

				
			Provide and manage two-dimensional (2D) drafting systems.

			

	 	
			9.

				
			Provide and manage 3D plant modelling systems to develop the plant model.

			

 

	 	
			10.2.12

				
			Document Management

			

 

Contractor shall prepare and implement a document management plan covering all aspects of the management and control, including change control, of Project documentation.

 

Contractor shall manage Project documentation using Contractor’s electronic document management system (EDMS).

 

	 	
			11.0

				
			ENGINEERING: THIRD-PARTY CONSULTANTS

			

 

Contractor shall employ the services of specialist third-party consultants where the Contractor determines the services are necessary due to the unique nature of the engineering work concerned.

 

[***].

 

	 	
			12.0

				
			PROCUREMENT

			

 

	 	
			12.1

				
			GENERAL

			

 

Contractor is responsible for the procurement of Equipment, bulk materials and consumable items necessary to construct, pre-commission, commission, start up, and operate Train 3 up to SC of Train 3, as further defined hereafter. Contractor’s procurement activities shall include the following:

 

	 	
			●

				
			Obtaining quotations for the supply of Equipment, bulk materials and consumables;

			

	 	
			●

				
			Commercial evaluation of quotations received;

			

	 	
			●

				
			Bid conditioning;

			

	 	
			●

				
			Negotiation and placement of Subcontracts for Equipment, bulk materials, and consumables;

			

	 	
			●

				
			Expediting and inspection in accordance with Contractor’s supplier quality surveillance (SQS) plan;

			

	 	
			●

				
			Definition of requirements for protection and packaging during shipment;

			

	 	
			●

				
			Definition of requirements for preservation while during shipment and during storage on Site;

			

	 	
			●

				
			Delivery to Site;

			

	 	
			●

				
			Obtaining required insurance coverage; and

			

	 	
			●

				
			Administration of Subcontracts with Subcontractors.

			

 

	 	
			12.2

				
			PURCHASING PROCEDURE

			

 

Contractor shall develop and issue to Owner for review a procurement plan, (the “Procurement Plan”) consistent with this SOW and the overall Project schedule for purchasing tagged Equipment and engineered bulk materials.

 

Contractor’s procurement plan shall include but not be limited to the following:

 

	 	
			●

				
			Purchasing activities;

			

	 	
			●

				
			Preparation of the general terms and conditions that the Contractor will use to procure Equipment and services;

			

	 	
			●

				
			Subcontract formation for Equipment;

			

	 	
			●

				
			Home office and/or area expediting;

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 35 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

	 	
			●

				
			Field procurement activities;

			

	 	
			●

				
			Procured Equipment quality control including material and/or shop inspection, and witness and hold points;

			

	 	
			●

				
			Traffic and logistics activities; transportation of procured goods to the Site; and

			

	 	
			●

				
			Material control at the Site including details of Equipment received, storage, and in quarantine.

			

 

	 	
			12.3

				
			REQUISITIONS/PURCHASES

			

 

Contractor and its Subcontractors shall prepare requisitions for Equipment in accordance with the Drawings and Specifications and Contractor’s Procurement Plan.

 

	 	
			12.4

				
			EXPEDITING AND INSPECTION

			

 

Contractor shall be responsible for expediting and inspecting Equipment in accordance with the EPC Agreement and Contractor’s supplier quality surveillance (SQS) Plan.

 

The level of inspection to be applied shall be based on the commodity, Contractor’s standard work processes, and the individual Subcontractor’s performance history. Contractor shall work with Owner to develop criticality rating within [***] ([***]) Days of NTP.

 

An inspection and test plan shall be prepared for each Equipment.

 

	 	
			12.5

				
			FACTORY ACCEPTANCE TESTS

			

 

Contractor shall undertake factory acceptance testing of components and systems provided by Equipment Subcontractors as required by the Project Specifications and by the inspection & test plans prepared by Subcontractors.

 

Requirements for factory acceptance testing shall be based on Equipment criticality rating and specified in the Equipment Subcontract. Factory acceptance tests on critical Equipment and systems shall be witnessed by Contractor and by Owner, at the Owner’s discretion.

 

	 	
			12.6

				
			SUPPLY OF EQUIPMENT – TAGGED EQUIPMENT ITEMS

			

 

	 	
			12.6.1

				
			Mechanical Equipment

			

 

Contractor shall purchase and install all mechanical Equipment listed in Major Equipment List 26251- 100-M0X-0000-00001 (RG-BL-000-PE-LST-00001), as referenced in the BOD.

 

	 	
			12.6.2

				
			Tagged Electrical, Instrumentation and Telecommunication Equipment supply by ABB

			

 

Owner has entered into an Option Framework Agreement with ABB (“ABB Agreement”) for the supply of certain electrical, ICSS, telecommunications and security Equipment. Contractor shall purchase such Equipment from ABB at pricing and on terms and conditions as specified in the ABB Agreement.

 

ABB scope of supply includes electrical, instrumentation and control, and telecoms described by the ABB Agreement.

 

Substations and local equipment rooms (“LER”) supplied by ABB are to be fully equipped and tested modules for installation on Site by the Contractor. Where a complete substation or LER requires disassembly for shipment to Site, the substation or LER architectural components may be reassembled on Site by Contractor.

 

	 	
			12.6.3

				
			Single Source of Supply

			

 

	 	
			●

				
			Main Refrigerant Compression Packages

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 36 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

Contractor shall purchase the main refrigerant compression packages, [***], [***], [***], [***], and related ancillary Equipment for Train 3 from Baker Hughes, a GE Company (“GE”). Contractor shall install the main refrigerant compression package Equipment in accordance with GE’s installation instructions.

	 	
			●

				
			Main Cryogenic Heat Exchanger

			

Contractor shall purchase the main cryogenic heat exchanger (“MCHE”) for Train 3 from APCI. Contractor shall dress and install the MCHEs in accordance with the APCI’s installation instructions.

 

	 	
			12.7

				
			SUPPLY OF EQUIPMENT – BULK MATERIALS

			

 

Contractor shall provide bulk materials required to be installed as part of the Work. Such materials shall include civil and structural bulk materials, piping bulk materials, electrical bulk materials and cabling, and instrument and telecommunications bulk materials and cabling all to be specified in accordance with the requirements stated in the documentation referenced in the BOD.

 

	 	
			12.8

				
			SPARE PARTS

			

 

Contractor shall provide all pre-commissioning, commissioning, testing and start-up spare parts necessary for Train 3 to achieve SC and shall, prior to and as a condition precedent to achieving RLFC for Train 3, deliver such spare parts for the Train to the Site, including all Work related to procuring and storing the commissioning spare parts.

 

Contractor shall provide home office services to identify, recommend, and procure (upon agreement with Owner the list to be procured) Capital Spare Parts and Operating (2-year) Spare Parts. FEED deliverable “Spares Philosophy”, provides estimated lists. Spare parts receiving, storage and preservation until SC shall be included in Contractor’s EPC Contract Price.

 

Contractor shall deliver Capital Spare Parts and 2-year Operating Spare Parts to the permanent Site warehouse. Receipt, inventory control, logging, preservation and storage of Capital Spare Parts and Operating Spare Parts in the permanent Site warehouse up to SC of Train 3 shall be the Owner’s responsibility.

 

	 	
			12.9

				
			CATALYSTS & CHEMICALS, OILS & LUBRICANTS

			

 

	 	
			12.9.1

				
			Catalysts & Chemicals

			

 

Contractor shall supply first fill chemicals and catalysts. Contractor shall replenish chemical and catalyst usage between RFSU and SC as necessary up until SC of Train 3 as required by the EPC Agreement.

 

Contractor shall provide catalysts and chemicals at recommended warehouse inventory quantities to be held as inventory on Site for plant operation as specified in Section 12.9.3 of this SOW, and shall provide these in the warehouse at SC. Information to be provided by Contractor shall be at minimum as listed under 12.9.3 of this SOW. Contractor may draw down from warehouse quantities during start- up or initial operations only upon prior agreement with Owner. Any quantities drawn down by Contractor between RFSU and SC shall be replaced by Contractor at its own expense to ensure the full inventory is available within the Catalyst and Chemicals warehouse at SC.

 

Catalysts and chemicals are to be provided sufficient to support operations for a [***]-month period after Substantial Completion of Train 3.

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 37 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

 

	 	
			12.9.2

				
			Oils & Lubricants

			

 

Contractor shall supply first fill oils and lubricants for Equipment as recommended by the Equipment Subcontractor. Contractor shall replenish oil and lubricant usage by Train 3 Equipment up until SC of Train 3 in accordance with the EPC Agreement. Contractor shall perform a final top up of oils and lubricants to the Equipment manufacturer’s recommended fill level prior to handover to Owner at SC of Train 3.

 

Contractor shall prepare a recommended list of oils and lubricant quantities to be held as warehouse inventory on Site for plant operation as specified at minimum in Section 12.9.3 of this SOW, and shall provide same in Owner’s warehouse at SC of Train 3.

 

Contractor may draw down from warehouse quantities during start-up or initial operations only upon prior agreement with Owner. Any quantities drawn down by Contractor between RFSU and SC shall be replaced by Contractor at its own expense.

 

Oils and lubricants are to be provided sufficient to support operations for a [***]-month period after Substantial Completion of Train 3.

 

	 	
			12.9.3

				
			Listing of Operating Catalyst & Chemicals, Oils & Lubricants, and Protective Coatings

			

 

Contractor shall determine for Owner the operating requirements for chemicals, catalysts, oils, lubricants and protective coatings. This list shall include:

 

	 	
			●

				
			Initial fill or charge (unit of measure);

			

	 	
			●

				
			Annual indicated rate of consumption;

			

	 	
			●

				
			Quantity for initial purchase (and required date);

			

	 	
			●

				
			Quantity for operating and back-up supplies;

			

	 	
			●

				
			Method of delivery;

			

	 	
			●

				
			Required date for first operating inventory delivery;

			

	 	
			●

				
			Specifications;

			

	 	
			●

				
			Special storage conditions (if applicable); and

			

	 	
			●

				
			Material safety data sheets (MSDS).

			

 

	 	
			12.10

				
			MISCELLANEOUS MATERIALS SUPPLY

			

 

Contractor shall specify, procure, and install the following miscellaneous material items as described below.

 

	 	
			12.10.1

				
			Furnishings, Fittings and Special Equipment for installation within Train 3 Facility Buildings

			

 

Contractor shall be responsible for specification, procurement, and installation of fixed fittings, fixed or built-in furniture, fixed or built-in furnishings, and any special fixed or built-in Equipment and appliances for all Train 3 buildings.

 

Contactor shall handover Facility buildings to Owner at ready for occupancy which shall be preceded by all building Permits being obtained.

 

Furnishing materials, color schemes etc. shall be identical to that for Train 1 and Train 2.

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 38 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

 

	 	
			12.10.2

				
			NOT USED

			

 

	 	
			12.10.3

				
			Portable Fire-fighting and Miscellaneous Safety Equipment

			

 

Contractor shall provide Portable Fire-fighting and Miscellaneous Safety Equipment required for the safe start-up and operation of the Train 3 Facility, including but not limited to, that listed in Fire and Safety Equipment List, 26251-100-U1X-0000-00001 (RG-BL-000-PSA-LST-00001).

 

	 	
			12.10.4

				
			Plant Mobile Equipment

			

 

Contractor shall provide home office services to identify, recommend, and procure (upon agreement with Owner the list to be procured) plant mobile Equipment for operations of the Facility. The foregoing shall include assistance to Owner in developing plant mobile Equipment Specifications. The actual purchase and delivery price of plant mobile Equipment shall not be included in Contractor’s scope. For any plant mobile equipment elected by Owner to be purchased for Facility operations, Contractor shall submit a Change Order. Plant mobile Equipment receiving, storage and preservation until SC shall be included in Contractor’s EPC Contract Price. Plant mobile equipment shall be delivered to Site as a condition precedent to SC of Train 1, provided that Owner has given Contractor sufficient notice to order such equipment. To the extent that Contractor desires to use any plant mobile Equipment prior to SC, Contractor must obtain Owner’s prior approval.

 

[***].

 

	 	
			12.10.5

				
			NOT USED

			

 

	 	
			12.11

				
			TRAFFIC AND LOGISTICS SERVICES

			

 

Contractor shall implement a Logistics Plan for the movement of all Equipment, including engineered bulk materials, required for the Work under the EPC Agreement. Logistics scope shall be inclusive of points of origination to the Site. Contractor’s Logistics Plan shall be prepared in advance of any movement of materials.

 

[***].

 

	 	
			13.0

				
			MATERIALS MANAGEMENT

			

 

	 	
			13.1

				
			HOME OFFICE MATERIALS MANAGEMENT

			

 

Contractor shall prepare and implement a materials management plan. Contractor’s materials management plan describes the roles and responsibilities, home office material management activities, site materials management activities, materials management at fabrication yards, and materials management systems to be used by the Contractor.

 

	 	
			13.2

				
			SITE MATERIALS MANAGEMENT

			

 

The Contractor’s materials management plan shall address the following Site materials management activities:

 

	 	
			●

				
			Material receiving;

			

	 	
			●

				
			Inspection of materials upon receipt;

			

	 	
			●

				
			Equipment and material storage;

			

	 	
			●

				
			Record of condition of Equipment and materials received;

			

	 	
			●

				
			Preservation and preventative maintenance;

			

	 	
			●

				
			Material control and issuing;

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 39 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

	 	
			●

				
			Shortage and damage reports;

			

	 	
			●

				
			Storage locations including lay down control, layout and sizing, warehousing and climate- controlled storage requirements; and

			

	 	
			●

				
			Surplus materials control.

			

 

Contractor shall undertake the activities described in its materials management plan in support of the Project.

 

 

	 	
			14.0

				
			SUBCONTRACT SERVICES

			

 

The Contractor shall perform or cause to be performed any subcontracted services, including by Subcontractors and Sub-subcontractors, required to perform the Work during engineering, construction, pre-commissioning, Commissioning, start-up and initial operation of the Facility until, and as applicable to, SC of Train 2.

 

[***].

 

Subcontractors and Sub-subcontractors shall be selected from Contractor’s proposed list of approved contractors, subcontractors, sub-subcontractors, vendors and suppliers.

 

	 	
			14.1

				
			ENGINEERING DESIGN & CONSULTANCY SUBCONTRACTS

			

 

Contractor shall use engineering design & consultancy Subcontracts to the benefit of the Project. [***].

 

	 	
			14.2

				
			SITE CONSTRUCTION SUBCONTRACTS

			

 

Contractor shall use Subcontractors and Sub-subcontractors to the benefit of the Project. [***].

 

	 	
			14.3

				
			SUBCONTRACTS DURING COMMISSIONING, START-UP, AND INITIAL OPERATION UP TO SUBSTANTIAL COMPLETION OF TRAIN 3

			

 

Subcontracts required during commissioning, start-up, and initial operation may include, but not necessarily be limited to, the following:

 

	 	
			●

				
			Propane supply for initial fill, start-up and initial operation;

			

	 	
			●

				
			[Liquid nitrogen supply for initial fill, start-up and initial operation;]

			

	 	
			●

				
			Ethane / Ethylene supply for initial fill, start-up and initial operation; and

			

	 	
			●

				
			Relief valve OPEX testing & inspection services.

			

 

	 	
			14.4

				
			CONTRACTOR PROVIDED SERVICE SUBCONTRACTS

			

 

Contractor shall enter into service (including call-off) Subcontracts with specialist Subcontractors to maintain the Train 3 Facility as required for the provision of specialist services until SC of Train 3 and as may be required under the EPC Agreement. [***].

 

 

	 	
			15.0

				
			CONSTRUCTION

			

 

	 	
			15.1

				
			GENERAL

			

 

Contractor shall complete the construction of the Project as required by the EPC Agreement and perform such Work in accordance with the EPC Agreement.

 

Contractor shall provide construction support services, Subcontractor representatives and technicians necessary to install, prepare, test, and complete construction of the Project as required by the EPC Agreement.

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 40 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

	 	
			15.2

				
			CONSTRUCTION SCOPE OF WORK

			

 

The construction scope of work shall include the following:

 

	 	
			●

				
			Formation of foundations for Equipment, structures, pipe-racks and pipe tracks, and buildings, including piling and/or soils mixing where required;

			

	 	
			●

				
			Installation of underground piping and drainage systems;

			

	 	
			●

				
			Finished area grading and paving;

			

	 	
			●

				
			Installation of structural components of the Project;

			

	 	
			●

				
			Installation of the vessels, tanks, buildings, and other Equipment;

			

	 	
			●

				
			Installation of the rotating equipment, motors, turbines, compressors, pumps and blowers;

			

	 	
			●

				
			Installation of piping components and systems;

			

	 	
			●

				
			Installation of electrical substations and installation of power distribution Equipment;

			

	 	
			●

				
			Installation of the fire water system extension for Train 3;

			

	 	
			●

				
			Installation of the power and control cabling systems;

			

	 	
			●

				
			Installation of the instrument and control devices and systems;

			

	 	
			●

				
			Installation of telecommunication & security equipment and systems;

			

	 	
			●

				
			Installation of the instrument, control devices and systems and telecommunication & security systems cabling systems;

			

	 	
			●

				
			Installation of Electrical, ICSS, Instrument, Telecom & Security Fiber Optic cabling systems;

			

	 	
			●

				
			Application of paint, insulation, and fireproofing systems;

			

	 	
			●

				
			Installation of permanent plant buildings, roads, security fences;

			

	 	
			●

				
			Installation, maintenance and removal of temporary facilities;

			

	 	
			●

				
			Provision of temporary facilities for the supply of electricity, water, and telephone / communication systems for construction of the works;

			

	 	
			●

				
			Provision of temporary facilities for the disposal of sewage from the construction worksite up to that time that connection to the new sanitary effluent return line to local sewage treatment plant is available; and

			

	 	
			●

				
			Contractor shall ensure temporary strainers or other methods of protecting Equipment are included for all Equipment that is susceptible to damage from construction debris. Contractor shall follow suppliers’ recommendations as to which Equipment this applies as a minimum requirement.

			

	 	
			●

				
			Installation of any piping, structural, civil, mechanical, electrical, instrumentation, control, or telecommunications tie-ins between Train 3 and Trains 1 and 2 or the Common Systems.

			

 

Upon completion of the construction scope of work, Contractor shall remove from Site all above ground temporary facilities, except for those agreed with Owner to be retained for future stages of Facility development for which Contractor shall be suitably compensated. For underground temporary utilities see section 15.15.3 of this SOW.

 

	 	
			15.3

				
			RULES AND REGULATIONS

			

 

Contractor shall produce written rules of conduct for review and agreement by Owner within [***] ([***]) Days following the start of NTP, which shall apply to all of Contractor’s, and its Subcontractor’s, personnel at the Site. Contractor shall enforce all Applicable Laws, and Applicable Codes and Standards. Such rules of conduct shall cover all employees of Contractor, its Subcontractors, and any visitors.

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 41 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

Contractor shall provide a system to identify all personnel working at the Site. This system shall include its own employees and those of its Subcontractors and the Owner. Each employee authorized to be on Site shall wear an identification tag, which shall include a unique pass number of the individual. Visitors and Subcontractors authorized to be on Site shall also display an appropriate pass.

 

Contractor shall prominently display statutory notices and Site working and safety regulations, including OSHA required notices. Contractor shall bring to its employees’ attention, and to the attention of the employees of its Subcontractors, notices and instructions as posted, or issued.

 

	 	
			15.4

				
			COMMUNITY ENGAGEMENT

			

 

Contractor shall develop a local content plan for review by Owner and stakeholder engagement plan for review and agreement by Owner.

 

[***].

 

	 	
			15.5

				
			CONSTRUCTION LABOR

			

 

Contractor shall fulfill direct and indirect labor needs. Contractor shall use a qualified work force to construct the Project.

 

Contractor shall provide a construction management team (CMT) to manage, supervise and execute the Work.

 

	 	
			15.6

				
			CONSTRUCTION EQUIPMENT

			

 

Contractor shall provide, and cause its Subcontractors to provide, Construction Equipment necessary for construction of the Facility and installation of Equipment.

 

All vehicle drivers shall hold a current valid government issued driver license applicable to the class of vehicle they are responsible for driving.

 

All machinery operators shall be qualified to operate their allocated machine. This shall be verifiable by an appropriate certification, which shall be available for review by Owner at any time.

 

It shall be Contractor’s responsibility to maintain all Contractor vehicles at its own cost. Equipment that Contractor deems unfit shall be either repaired or removed from the Site.

 

All Contractor vehicles and those of its Subcontractors and Sub-subcontractors used on public roads shall comply with public road inspection requirements and be duly licensed and insured. Records shall be readily available for Owners audits and review.

 

	 	
			15.7

				
			CONSUMABLE CONSTRUCTION MATERIALS

			

 

Contractor shall supply all necessary consumables, including fuels, lubricants, welding rods, welding gases, gaskets, miscellaneous hardware and test materials required to complete construction and installation of the Facility through SC of each Train.

 

	 	
			15.8

				
			SUBCONTRACTS

			

 

Contractor shall develop a Subcontract execution plan that outlines the division and definition of the work scope per Subcontract.

 

Contractor shall develop, pre-qualify, tender, award and administer each Subcontract including those Subcontracts with a design, material supply and shop fabrication element.

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 42 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

Refer also to Section 14.0 above.

 

	 	
			15.9

				
			DRAINAGE

			

 

Contractor shall provide temporary drainage systems for the handling of storm water runoff during construction in accordance with Storm Water Pollution Prevention Plan for Construction, 195910-000- EP-PL-0001, included in the BOD. Wherever Contractor deems practical, permanent drainage systems shall be used in the management of storm water runoff.

 

	 	
			15.10

				
			NOT USED

			

 

	 	
			15.11

				
			SITE FACILITIES AND CONSTRUCTION UTILITIES

			

 

	 	
			15.11.1

				
			Construction Power

			

 

Contractor shall design and install a construction power distribution system to supply construction power to the main construction work areas. Contractor shall negotiate with AEP for the supply of a connection to AEP’s existing power supply network for use for construction, if applicable.

 

Connection to the AEP existing power supply network for construction power distribution shall be to the Contractor’s account.

 

Additionally, Contractor shall engage into a contract for construction energy supply with any of the Texas available REP’s. Construction electrical energy usage shall be to the Contractor’s account.

 

Contractor shall provide and maintain all construction electrical facilities to the individual process units and area battery limits.

 

Contractor shall design, provide, and install transformation, and distribution of construction power for Train 3 as necessary within the Site boundary. Contractor shall provide generation of construction power by temporary diesel generators up until that time construction power supply is available, and for use in parts of the Site remote from Contractor’s Site construction power distribution system and/or where cable supplied construction power does not fully meet the demand.

 

The permanent power supply to the Facility will be provided from AEP’s Pompano switchyard which will be located within the Facility fence line at its northern perimeter and constructed by a third party. The connection of the Facility to the AEP grid is at Transmission line level. Contractor may, subject to prior agreement with AEP and Owner, arrange for supply of construction power for use during construction to be changed over from contractor’s connection to AEP to supply from the Pompano switchyard, or part of the permanent power supply system for the Project fed from the Pompano switchyard, should this be beneficial to the Project. Costs for this change in power source shall be to Contractor’s account. Contractor shall in such event remain liable for payment of electrical power usage for construction and power usage shall be metered accordingly.

 

Contractor shall remain liable for payment of power usage by permanent facilities up to commencement of commissioning activities of Train 3.

 

	 	
			15.11.2

				
			Temporary Sanitation Facilities

			

 

Contractor shall provide toilets and washing facilities for use by workers on Site. These facilities shall be strategically located within Contractor's designated compounds in the vicinity of major Work areas. Facilities shall be segregated for male and female use.

 

[***].

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 43 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

Cost for treatment of sanitary sewage from Contractor’s construction workforce shall be to Contractor’s account based on potable water usage by Contractor’s construction personnel, which shall be metered separately from water usage for other construction purposes.

 

	 	
			15.11.3

				
			Water Supply for Construction

			

 

Owner will make arrangements with the BND for the provision of a permanent piped fresh water supply to the Site.

 

Contractor shall meter all freshwater used for construction purposes. Cost of all freshwater usage for construction purposes including use by Contractor’s construction personnel shall be to Contractor’s account.

 

[***].

 

	 	
			15.12

				
			DISPOSAL OF CONSTRUCTION WASTE

			

 

Contractor shall be responsible for the safe disposal of construction wastes and, where practical, recycle in accordance with the EPC Agreement.

 

	 	
			15.13

				
			SECURITY

			

 

Contractor shall prepare a site security plan that complies with all Applicable Law.

 

Owner will prepare the Project Security Plan per 33 CFR 105 Subpart D for review and approval by the US Coast Guard with assistance by external consultants. Contractor shall provide required engineering design input only.

 

Contractor shall provide a secure boundary around all construction areas and its establishment area with adequate security services. Contractor shall provide controlled access points between Contractor’s area and public areas, shall man such access points during working hours, and shall keep such access points securely locked at all other times.

 

Contractor shall be responsible for security at the Site until all of the requirements of SC for Train 3 have been satisfied. Contractor shall provide all security personnel and liaison with government authorities as needed. Fencing and security devices shall be provided and maintained to prevent unauthorized access to the Train 3 Site and to prevent theft or damage. Contractor shall employ security personnel to police the Site entrances, fencing and secure areas at all times (including weekends and nights) and shall carry out random searches of vehicles arriving or leaving the Site.

 

Contractor shall, pursuant to the EPC Agreement, prepare a Site access plan for review and approval by Owner. Contractor’s Site access plan shall include measures related to Site access described in the EPC Agreement. The plan shall contain procedures for security operations, access and egress, employee identification, employee screening for alcohol and drugs, random searches, videography and photography and emergency and contingency plans.

 

Contractor shall only permit access onto the Site by authorized personnel of the Contractor, its Subcontractors and Sub-Subcontractors, and by authorized personnel of the Owner and the Owner’s other contractors, consultants, representatives or invitees. Contractor shall not permit access to the Site by personnel not engaged in performance of the Work without prior written consent of Owner. Contractor shall ensure that the Site rules and regulations clearly state the names and status of the personnel who are authorized to grant access to the Site.

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 44 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

Contractor and Subcontractor employees, consultants and authorized visitors will be allowed to park on Site at designated locations in areas as agreed with Owner as part of the temporary facilities plan. Parking lots and temporary roads will have temporary surfacing for dust mitigation (i.e., use of crushed concrete or gravel for surfacing and operation of water trucks) and be fenced and lighted with regular security surveillance. Security personnel and off duty policemen will be used to assist with traffic control at the beginning and end of the workday.

 

Only authorized vehicles will be allowed access to the Site. Vehicles entering or leaving the Site and parked on Site will be subjected to random search as considered necessary by either Contractor or Owner.

 

	 	
			15.14

				
			HEAVY LIFTS

			

 

All heavy and/or critical lifts on the Project shall be performed in accordance with Contractor’s rigging plans, practices and rigging procedures.

 

The land-based portion of the Project’s crane operations and rigging gear shall conform to Applicable Codes and Standards and Applicable Law.

 

Whenever a crane is used from land to work-on or load a ship or barge which is in navigable waters, maritime regulations shall apply to the crane and all lifting attachments. Detailed crane operation and rigging procedures to be prepared for the marine portion of the Work will reflect these different standards.

 

Rigging studies shall be prepared for all heavy or critical lifts. Heavy or critical lifts are defined as those where:

 

	 	
			●

				
			Lifted item weighs 50 tons or more;

			

	 	
			●

				
			Lifted item’s weight exceeds 85% of the maximum rated load for the lifting equipment;

			

	 	
			●

				
			Any multiple crane lift where two or more cranes are used, not including tailing crane;

			

	 	
			●

				
			Any lift where the crane load line will not be vertical; or

			

	 	
			●

				
			Any lift that requires special handling because of location and/or configuration as required by engineering or Subcontractor

			

 

Critical lift plans shall consider soil investigation to determine soil bearing capacity and subsurface hazard location in order to define corrective action if found deficient.

 

Contractor shall carry out necessary lifting/rigging studies and calculations and make them available for Owner’s review [***] ([***]) working days prior to the scheduled lift. Contractor shall only employ cranes and lifting equipment that have been tested and certified and have required tagged identification and current and valid inspection records.

 

Contractor shall keep records of tests and certification of all lifting equipment, cranes and operators employed on the Project, for inspection by Owner.

 

All machinery and lifting appliances shall be inspected, tested and certified in accordance with statutory requirements and current certification shall be produced for inspection by Owner upon any request during the progress of the Work.

 

Contractor shall prepare the necessary notification to FAA for cranes with an operating height greater than 200 feet considering the minimum [***] ([***]) month duration required by FAA to process the notification.

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 45 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

	 	
			15.15

				
			CONSTRUCTION TEMPORARY FACILITIES

			

 

Contractor is responsible for temporary facilities. Access, egress, [***], utilities, parking, lay down areas, and temporary utility routings shall all be reviewed to enable a safe, functional, and environmentally sensitive installation.

 

	 	
			15.15.1

				
			Contractor Offices and Facilities

			

 

Contractor shall be responsible for providing its own offices and facilities. This shall include offices, induction center, training facilities, medical Project facilities, gate houses, warehousing, pipe fabrication, painting facilities, toilets, network systems and connections, phones and internet connection.

 

This includes temporary internet and telecom connection to a service providers network at a remote location.

 

Permanent internet and telecom connection will become available after central control and administration buildings are erected and permanent internet and telecom connection is established.

 

Contractor may, subject to prior agreement with internet/telecom provider and Owner, arrange for internet and telecom connection for use during construction to be changed over from temporary to permanent internet and telecom connection should this be beneficial to the Project.

 

Buildings shall be equipped with smoke detectors and fire extinguishers. Construction utilities shall be provided by Contractor per the EPC Agreement.

 

Contractor shall provide necessary communication systems during construction, Commissioning, and initial operation of for facilities forming part of the Train 3 Work up to SC of Train 3. Contractor shall include for the needs of Contractor’s Subcontractors and visitors. Contractor shall be responsible for obtaining any licenses and permits necessary to operate the Equipment that it uses during construction, Commissioning, start-up and initial operation of the facilities.

 

Contractor shall provide Site accommodation for Owner’s personnel as provided for under Section 23 below.

 

	 	
			15.15.2

				
			Material Storage and Laydown

			

 

Contractor shall provide warehousing and laydown facilities sufficient to ensure the efficient handling and safe storage of materials and Equipment. (Contractor may wish to consider offsite storage locations at Port Isabel or within BND controlled areas), Contractor shall agree to a traffic management plan for transfer of materials to Site which will be provided to the Owner for review.

 

	 	
			15.15.3

				
			Underground Utilities

			

 

Contractor shall be responsible for all utilities required for operation of temporary facilities and Equipment. In the event such utilities are installed underground, associated trenching, bedding, installation of the utility cables/piping, installation of any required protective materials, and filling and compacting the trench is the Contractor's responsibility.

 

Temporary underground services shall be indicated on an underground services drawing. These will be cut-off just below grade, capped, and abandoned in place before SC of the applicable Train (unless agreed with Owner to be retained for future stages of Facility development) and shall be included in the Record As-Built Drawings and Specifications to be handed over by Contractor upon SC.

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 46 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

	 	
			15.15.4

				
			Parking Facilities

			

 

A plan for adequate parking facilities for all vehicles directly or indirectly involved in performance of the Train 3 Site Work shall be submitted by Contractor.

 

Contractor shall submit a plan for Owner’s approval that shows the layout and size of planned parking facilities, along with any associated bussing considerations and traffic flows. Parking and traffic flow relative to Site Work shall be consistent with any Permit requirements.

 

Contractor’s plans for the provision of parking facilities at the Site are to comply with the Contractor’s Temporary Facilities Plan.

 

	 	
			15.15.5

				
			Site Clean-up at the end of Construction

			

 

Except as provided in section 15.15.3 above, temporary facilities shall be removed from Site by SC of the applicable Train, unless agreed with Owner to remain in situ, or relocated elsewhere, on the Site for use in a future stage of Facility development.

 

	 	
			15.16

				
			CONTRACTOR’S TOOLS AND CONSTRUCTION EQUIPMENT

			

 

Construction Equipment shall be supplied by Contractor or be provided by Contractor’s Subcontractors for the Subcontract work scope required. Contractor shall inspect Construction Equipment prior to it being mobilized to the Site and shall maintain up-to-date inspection certificates, evidenced in the field by colored tags. Contractor shall require that Construction Equipment be inspected at least quarterly, maintained, and, when necessary, necessary repairs are carried out and completed before the Construction Equipment concerned is used on Site. Contractor shall maintain records of inspections, repairs and tests at the Site.

 

Contractor’s Construction Equipment shall conform to any requirements stated in the EPC Agreement.

 

All machinery operators shall be qualified to operate their allocated machine. This shall be verifiable by an appropriate certification, which shall be available for review by Owner at any time.

 

	 	
			15.17

				
			CONSTRUCTION PERMITS

			

 

Contractor shall be responsible for obtaining the Permits necessary for the execution of Contractor’s Work.

 

Contractor shall provide all necessary technical information required to support Contractor’s Permit applications. For such Permits Contractor is required to obtain pursuant the EPC Agreement, Contractor shall pay for applicable fees or charges.

 

Contractor shall also provide prompt assistance, information and documentation reasonably requested by Owner in connection with Permits for which Owner is responsible and as further described under Section 21.1 of this SOW.

 

	 	
			16.0

				
			PRE-COMMISSIONING, COMMISSIONING, COMPLETION AND ACCEPTANCE

			

 

	 	
			16.1

				
			GENERAL

			

 

Contractor shall be responsible for pre-commissioning, Commissioning, start-up, and initial operation of the Train 3 Facilities up to SC of Train 3. Contractor will be assisted by Owner’s operating and maintenance personnel, once fully trained, in accordance with the EPC Agreement.

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 47 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

Contractor shall submit a high-level Commissioning and start-up strategy document for Owner review and acceptance within [***] ([***]) Days following NTP. The Commissioning and start-up strategy document shall provide the framework and outline schedule for Contractor’s subsequent development of detailed Commissioning and start-up plans, procedures, manuals, method statements and other pre- commissioning, Commissioning and start-up documentation necessary for Commissioning and start-up of the Facilities.

 

The Contractor's Commissioning and start-up plan will utilize Contractor's standard procedures and work processes to execute Commissioning and start-up activities, modified as necessary to address Project specific requirements.

 

Contractor shall provide detailed procedures for Commissioning and start-up activities for each Equipment system and subsystem, and detail specific provisions for commissioning the interfaces with Train 1 and Train 2 and the Common Systems.

 

Contractor's Commissioning and start-up plan shall define the forms, document flow, schedule, certification scheme, status monitoring methods, and commissioning and start-up requirements check- lists for each Equipment system and subsystem.

 

Pre-commissioning includes tests, inspections, cleaning and other activities which are carried out after construction completion for a given system/subsystem has been achieved, at ambient temperature and without the presence of process fluids.

 

During Commissioning Contractor shall pay particular attention to the tie-ins between Train 3 and Trains 1 and 2 and the Common Systems.

 

	 	
			16.2

				
			COMMENCEMENT OF COMMISSIONING AND START-UP

			

 

Contractor shall commence Commissioning activities promptly after mechanical completion of each system or subsystem, as applicable. Contractor shall execute all Work required for pre-commissioning, commissioning and start-up of Train 3. This Work includes all pre-commissioning, commissioning, the provision of start-up spare parts and the scheduling of Contractor's commissioning team's construction support personnel, commissioning specialists, vendor representatives, Subcontractor and other necessary parties required.

 

Contractor shall include for the cost of Subcontractor (including vendor) technical representatives required at Site to support construction, Commissioning and/or start-up of the Facility up to SC of Train 3.

 

Contractor shall provide a commissioning manager and a commissioning team. The commissioning team shall interface with the construction team to ensure that commissioning is completed in the correct sequence by system, that all commissioning inspections and tests are conducted, and that all necessary certificates and documents are completed as required by the EPC Agreement for turnover at SC. Owner will monitor and liaise with Contractor's commissioning manager.

 

Commissioning includes tests, inspections and adjustments carried out after pre-commissioning activities for a given system/subsystem have been completed, as far as practical and prior to the introduction of hydrocarbons (Feed Gas).

 

Chemicals will be charged as part of the commissioning program when safe to do so.

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 48 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

 

	 	
			16.3

				
			OPERATOR TRAINING

			

 

See Section 20 of this SOW.

 

	 	
			16.4

				
			OPERATIONS TESTS

			

 

Contractor shall perform certain operations tests, in compliance with all applicable requirements of the EPC Agreement. The operations tests shall be performed prior to SC of Train 3. Any issues that adversely impact the applicable operations tests that are identified during the performance of the operations tests shall be corrected and the operations tests repeated prior to SC of Train 3.

 

[***].

 

	 	
			17.0

				
			SIMULTANEOUS OPERATIONS

			

 

Contractor shall avoid impact to operations of and LNG production from Trains 1 and 2 while Train 3 is being constructed or commissioned. Contractor shall also design Train 3 in such a manner that the Expanded Facilities (Train 4, Train 5 and future expansion) may be commissioned and constructed without impact to operations and LNG production. Contractor shall, working closely with Owner personnel, prepare a plan for simultaneous operations (SIMOPS). The SIMOPS plan shall address the measures to be taken to address the risks to operating plant, personnel, and the environment posed when construction activities are going on in close proximity to the operating facilities. [***].

 

Contractor shall supply and erect temporary fences between areas of the Site where construction, pre- commissioning or commissioning is ongoing and those areas of the Site in which plant Equipment is live and operational. Gates shall be provided in the temporary fencing to permit access between the live operating areas of Trains 1 and 2 and the Train 3 Facilities and other construction work areas still under Contractor’s control during construction and pre-commissioning. Access between the Trains 1 and 2 live operating areas and the Train 3 and other non-operational work areas shall be restricted and controlled by security guards. Contractor shall remove and dispose of temporary fences following SC of Train 3.

 

Contractor shall engineer, procure, install, commission and test piping tie-ins in Train 3 as required to tie-in future trains. This includes but not limited to process and utilities connections, and is required for any connection that would otherwise necessitate a shutdown of any of train or the common facilities.

 

	 	
			18.0

				
			OPERATIONS AND MAINTENANCE MANAGEMENT SYSTEMS AND PROCEDURES

			

 

Contractor shall jointly with Owner develop the operations and maintenance management systems and procedures described below.

 

	 	
			18.1

				
			ASSET INTEGRITY MANAGEMENT SYSTEMS

			

 

Contractor shall obtain and provide in Office 365 Excel format all relevant baseline data required to load Owners asset integrity management systems. Such systems shall be ready for use for RFSU for Train 3 and shall be used in start-up and initial operations of Train 3.

 

[***].

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 49 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

 

	 	
			18.2

				
			OPERATIONS MANAGEMENT PROCEDURES

			

 

Contractor shall prepare the operations management procedures necessary for the activities listed below, working closely with Owner’s operations and maintenance personnel to agree the content and level of detailing required.

 

[***].

 

	 	
			18.3

				
			Operations and MAINTENANCE PROCEDURES AND MANUALS

			

 

Contractor shall provide any operations and maintenance manuals and procedures necessary for the Train 3, working closely with Owner’s operations and maintenance personnel to agree the content and level of detail required.

 

	 	
			18.3.1

				
			Maintenance Procedures

			

 

Contractor shall provide maintenance procedures, including but limited to, those listed below:

 

	 	
			●

				
			Catalyst change-out on a piece-of-equipment-basis and including an isolation procedure (E- N/P);

			

	 	
			●

				
			Non-statutory preventative maintenance (PM) program on a piece-of-equipment-basis including an isolation procedure (E-N/P) and condition monitoring system (CMS) set up for applicable rotating equipment items; and

			

 

	 	
			●

				
			Inspection, and repair procedures for plant equipment including rotating equipment, pressure vessels (including internals), instrumentation, electrical equipment, and package equipment.

			

 

	 	
			18.3.2

				
			Statutory Maintenance / Inspection Procedures

			

 

Contractor shall provide the statutory maintenance / inspection procedures, including but limited to, those listed below:

 

	 	
			●

				
			Set up of statutory examination procedures for pressure vessels and pressure systems in accordance with 49CFR 193/API 510;

			

	 	
			●

				
			Set of statutory examination procedures for pressure relieving devices in accordance with 49CFR 193;

			

	 	
			●

				
			Set of statutory examination procedures for pressure systems (piping) in accordance with 49CFR 193 including recording as built thickness measurements;

			

	 	
			●

				
			SIL level 3 periodic maintenance inspection procedures including alarm and shutdown procedures verification record and software backups;

			

	 	
			●

				
			Fiscal metering calibration details and test protocol;

			

	 	
			●

				
			Cathodic protection inspection;

			

	 	
			●

				
			Set up MSDS database and inventories record;

			

	 	
			●

				
			Lifting equipment inspection;

			

	 	
			●

				
			Inspection and maintenance of fire and gas (F&G) detection system equipment and fire extinguishers;

			

	 	
			●

				
			Water discharge monitoring for compliance with regulatory and permitted requirements; and

			

 

	 	
			●

				
			Hazardous inventory reporting (FERC).

			

 

	 	
			18.3.3

				
			Operations and Maintenance Manuals

			

 

Contractor shall prepare all required Train 3 operations and maintenance manuals for review and agreement by Owner, and shall include but not necessarily be limited to:

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 50 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

	 	
			●

				
			Operation and maintenance manuals for each process system;

			

 

Preparation of the operations manual required under 33 CFR 127.305 and 49 CFR 193.2509 (and FERC guidelines) shall be the responsibility of Owner based on the operating and maintenance manuals provided by Contractor.

 

The schedule for preparation of these documents shall be mutually agreed by Contractor and Owner.

 

Contractor shall provide electronic copies of the final versions of the forgoing documents upon agreement with Owner.

 

	 	
			19.0

				
			PREPARATION OF PRECOMMISSIONING, COMMISSIONING, AND INITIAL START- UP PROCEDURES AND MANUALS

			

 

Contractor shall prepare the following pre-commissioning and Commissioning instructions, start-up and shutdown procedures, and operating and maintenance manuals for review and agreement by Owner.

 

	 	
			●

				
			Pre-commissioning and Commissioning instructions;

			

	 	
			●

				
			Initial Start-up and shut down procedures including both normal and emergency shutdown (E-N/P);

			

	 	
			●

				
			Operation and maintenance manuals.

			

 

The schedule for preparation of pre-commissioning, commissioning and start-up documentation shall be mutually agreed by Contractor and Owner.

 

Contractor shall provide electronic copies of the final versions of the forgoing documents upon agreement with Owner.

 

Manuals and procedures shall include the specific training subjects listed under Section 20.2 of this SOW.

 

Preparation of the operations manual required under 33 CFC 127.305 and 49 CFR 193.2509 (and FERC guidelines) shall be the responsibility of Owner based on the operating and maintenance manuals provided by Contractor.

 

	 	
			20.0

				
			CONTRACTOR PROVIDED TRAINING FOR OWNER PERSONNEL

			

 

Contractor shall provide training for up to [***] ([***]) Owner’s operations and maintenance personnel. Owner’s operations personnel will assist Contractor in start-up and initial operations of the Facility.

 

Owner will provide operating and maintenance personnel for training in accordance with the EPC Agreement.

 

	 	
			20.1

				
			UPDATING OF OPERATIONS TRAINING SIMULATOR

			

 

Contractor shall update Owners operations training simulator to include Train 3. The training simulator update shall be used for typical start-up, operating, and upset scenarios of Train 3. Contractor shall propose a list of scenarios to include with the training simulator. The updated training simulator shall be ready to begin operator training not later than one (1) year prior to RFSU for Train 3.

 

	 	
			20.2

				
			PREPARATION OF TRAINING MATERIALS

			

 

Contractor shall prepare and provide training materials necessary for training of Owner’s operations and maintenance personnel in all activities, including but not necessarily limited to:

 

	 	
			●

				
			Process overview;

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 51 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

	 	
			●

				
			First aid;

			

	 	
			●

				
			OSHA compliance training;

			

	 	
			●

				
			Visitor induction (training for general visitors to Site before access to Site);

			

	 	
			●

				
			General Subcontractor induction (training for Subcontractor before access to Site);

			

	 	
			●

				
			Fire & emergency response;

			

	 	
			●

				
			Permit to work training;

			

	 	
			●

				
			Confined space entry / awareness;

			

	 	
			●

				
			Lock-out / tag-out;

			

	 	
			●

				
			Storage & handling of hazardous wastes;

			

	 	
			●

				
			Operations training simulator update (See Section 20.1 of this SOW);

			

	 	
			●

				
			Mechanical discipline specific training;

			

	 	
			●

				
			Electrical discipline specific training;

			

	 	
			●

				
			Instrument & control discipline specific training;

			

	 	
			●

				
			Telecoms systems discipline specific training; and

			

	 	
			●

				
			Certification of inspectors (to relevant code requirements).

			

 

	 	
			20.3

				
			PREPARATION OF TRAINING MATERIALS FOR SUBCONTRACTOR EQUIPMENT PACKAGES

			

 

Contractor shall arrange for Subcontractor (vendor) Equipment package providers to prepare and supply training materials necessary for training of Contractor’s and Owner’s personnel in installation, commissioning, start-up, operation and maintenance of such Equipment.

 

	 	
			20.4

				
			TRAINING COURSES

			

 

Contractor shall provide all required training courses, including any by Subcontractors, for Owners operations and maintenance personnel. Training shall be based on operational roles and responsibilities. Contractor shall advise and get agreement with Owner for use of any third-party training programs or providers. [***].

 

	 	
			20.5

				
			TRAINING COURSES FOR VENDOR EQUIPMENT PACKAGES

			

 

Contractor shall arrange for Equipment Subcontractors to provide training of Owner’s operation and maintenance personnel.

 

All course manuals and instruction books shall be provided to trainees at the beginning of the course. Training and training materials shall be in the English language.

 

	 	
			21.0

				
			ASSISTANCE TO OWNER

			

 

	 	
			21.1

				
			REQUIRED SUBMISSIONS TO REGULATORY AGENCIES

			

 

Contractor shall be responsible to maintain any Permit-required design change logs. Any logs already in progress will be handed over to Contractor’s custody upon EPC Agreement execution.

 

Contractor shall, when requested, provide technical assistance to Owner in relation to the engineering specification and operation of the facilities and systems included in Contractor’s scopes of work. Such technical information shall include preparation and packaging of the design documentation required to support each Permit application or submission for regulatory purposes, including submissions for release of construction packages, and documentation needed to obtain operating license(s).

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 52 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

 

	 	
			21.2

				
			TECHNICAL SUPPORT TO OWNER’S REGULATORY SERVICES CONSULTANTS

			

 

Contractor shall provide technical information related to the design, construction, commissioning, start- up and operation of the Facility to Owner’s third-party regulatory consultants when requested and to the extent necessary to support Owner’s regulatory obligations.

 

	 	
			22.0

				
			THIRD-PARTY INTERFACES

			

 

Third-party interfaces and associated dates of supply for the Work will be per the EPC Agreement. The following sections address the main Project third-party interfaces:

 

	 	
			22.1

				
			NOT USED

			

 

	 	
			22.2

				
			NOT USED

			

 

	 	
			22.3

				
			NOT USED

			

 

	 	
			22.4

				
			NOT USED

			

 

	 	
			22.5

				
			NOT USED

			

 

	 	
			22.6

				
			NOT USED

			

 

	 	
			22.7

				
			TEMPORARY FENCING AND UTILITIES FOR EXPANSION OPTIONS

			

 

In a similar fashion as the SIMOPS description for future options on expansion steps, such as the construction of a third tank, a second jetty, the LNG truck-loading bays, followed by further masterplan components of the Expanded Facility, shall always be accompanied by a detailed plan to:

 

	 	
			●

				
			Regulate construction access and temporary facilities segregation from operating units;

			

	 	
			●

				
			Contain extra safety precautions and readiness to stop work and evacuate on demand;

			

	 	
			●

				
			Provide laydown areas and access routes to support expansion steps;

			

	 	
			●

				
			Arrange for metering to segregate utilities used for construction from Owners operations usage; and

			

	 	
			●

				
			Embed in the design of various disciplines space and tie-in provisions for expansion steps, to avoid Facility shutdowns.

			

 

	 	
			22.8

				
			BROWNSVILLE NAVIGATION DISTRICT TARIFF

			

 

Contractor shall familiarize itself with the Port of Brownsville Tariff No. 6 issued on December 6, 2016 and effective as of March 1, 2017 (as amended) and the authorized rates, rules and regulations governing the use of the BSC. Contractor shall include in its scope the cost of all wharfage, port, harbor and other charges incurred through Contractor and its Subcontractors’ and Sub-subcontractor’s use of the POB facilities to access the Site during construction, Commissioning, start-up and testing of the Facility.

 

 

	 	
			22.9

				
			ENVIRONMENTAL IMPACT STATEMENT DIVISION OF RESPONSIBILITY

			

 

FERC issued a Draft Environmental Impact Statement in October 2018 and a Final Environmental Impact Statement on April 26, 2019 (collectively, the “EISs”). Contractor and Owner have reviewed the action items set forth in such EISs and, as between Owner and Contractor, have developed and agreed a division of responsibilities (“DOR”) for each Party’s obligations in relation to the action items set forth in the EISs. The items identified in Appendix A-1 as being Contractor actions are included

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 53 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

within this SOW. Any changes to Appendix A-1 shall be implemented in accordance with the terms of the EPC Agreement.

 

 

	 	
			23.0

				
			FACILITIES FOR OWNER PERSONNEL

			

 

	 	
			23.1

				
			OFFICE ACCOMMODATION FOR OWNER PERSONNEL IN CONTRACTOR’S HOME OFFICE

			

 

Contractor shall provide the following serviced office accommodation for Owner personnel in Contractor’s Home Office:

 

	 	
			●

				
			Five (5) offices (walled, standard size);

			

	 	
			●

				
			Ten (10) cubicles (standard size); and

			

	 	
			●

				
			One (1) 12-person capacity dedicated conference room.

			

 

Contractor shall provide Owner with access to Contractor’s networked printer and scanning facilities locally. Owner will supply all computers for Owner’s personnel.

 

	 	
			23.2

				
			TEMPORARY FACILITIES PROVIDED AT SITE BY CONTRACTOR FOR OWNER’S PROJECT PERSONNEL

			

 

Contractor shall provide the following serviced temporary Project Site offices for Owner’s project personnel up to SC of Train 3

 

[***].

 

	 	
			24.0

				
			PERFORMANCE GUARANTEES AND PERFORMANCE TESTING

			

 

Contractor shall provide Performance Guarantees as required by the EPC Agreement.

 

Contractor shall carry out Performance Tests to demonstrate the Facilities meet the Performance Guarantees and Minimum Acceptance Criteria specified in the EPC Agreement.

 

	 	
			25.0

				
			PROCESS LICENSE FEES

			

 

Contractor shall obtain the APCI, BASF and [***] process licenses and novate to Owner. Contractor shall include the cost of APCI, BASF and [***] process license fees required for the design of the Project.

 

	 	
			26.0

				
			DOCUMENT NUMBERING

			

 

Contractor shall number general project documents and engineering deliverables by the Owner numbering specification which will be revised and updated as an early issuance by Owner after NTP. This will require Contractor to request document numbers for Engineering Technical Documents before they are issued. For Contractor's documents that are other than Engineering Technical Documents (such as material requisitions and PO's, subcontracts, supplier/subcontractor documents) Owner will require Contractor to provide its intended Document Numbering, Revision and Issue States Specification for such items after NTP. Documents require a NextDecade document number, and the attributes will be required for each document.

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 54 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

	 	
			27.0

				
			RECORD AS-BUILT DRAWINGS AND SPECIFICATIONS

			

 

Contractor shall provide Record As-built Drawings and Specifications as required by the EPC Agreement.

 

	 	
			28.0

				
			HANDOVER DOCUMENTATION

			

 

Contractor shall provide handover documentation as part of SC of Train 3, as required by the EPC Agreement. Most information shall be available prior to RFSU to support start-up and initial operations

 

	 	
			29.0

				
			INFORMATION SYSTEMS FOR OWNER USE

			

 

Contractor shall set up and implement those information systems necessary to perform detailed engineering, design, procurement, construction, pre-commissioning, Commissioning and start-up of the facilities, and for initial operation of Train 3, between RFSU and SC of the Train 3.

 

Contractor shall obtain, and provide in Office 365 Excel format all relevant baseline data required to load Owner’s operations and maintenance information management tools to deliver seamless transition to Owner for Owner’s operation and maintenance commencing at SC of Train 3.

 

[***].

 

	 	
			30.0

				
			EXCLUSIONS FROM CONTRACTOR’S SCOPE OF WORK

			

 

Owner will provide in accordance with EPC Agreement Attachment V:

 

	 	
			●

				
			Natural Gas Supply

			

Owner will supply sufficient natural gas as required by Contractor for efficient commissioning, start-up and operation of the Project.

	 	
			●

				
			Permanent Power Supply

			

Owner will provide power for the start-up and initial operation of each Train from commencement of commissioning activities for Train 1.

	 	
			●

				
			Permanent Water Supply

			

Owner will provide water for the start-up and initial operation of Train 3 from RFSU.

	 	
			●

				
			Permanent Sewage Disposal

			

Owner will provide for sewage disposal from the permanent Facility from RFSU of Train 3.

	 	
			●

				
			Permanent Internet Connection

			

Owner will provide for permanent internet service for the Facility following SC of Train 1.

	 	
			●

				
			Plant Security

			

Prior to SC Train 3, Train 3 shall be separated from Trains 1 and 2 using a temporary fence provided and installed by Contractor. Access to and from Trains 1 and 2 (including Utilities, LNG Tank area and Jetty) will be controlled by Owner.

	 	
			●

				
			Call-off and General Service Contracts

			

The following call-off services will be supplied by Owner as of SC of Train 3:

	 	
			●

				
			Equipment maintenance contracts (LTSA);

			

	 	
			●

				
			General maintenance and turnaround contracts;

			

	 	
			●

				
			ICSS support;

			

	 	
			●

				
			Laboratory operations

			

	 	
			●

				
			Analyzer reference gas supply.

			

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 55 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

	 	
			●

				
			Computer hardware (laptops, desktops, workstations) and software for Owner’s use will be provided by Owner.

			

	 	
			●

				
			Owner will obtain certain Permits listed in the EPC Agreement.

			

 

 

31.0         [***]

 

[***].

 

For the avoidance of doubt, any addition, change or modification to documents contained or referenced in Schedule A-2, other than numbering for identification, shall be subject to Owner review and approval.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 56 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

 

APPENDIX A-1: ENVIRONMENTAL IMPACT STATEMENT COMMITMENTS

 

The “Appendix A-5 Environmental Impact Statement Commitments” document was transmitted through Asite from Owner to Contractor on May 24, 2019. The Parties hereby agree that this document is incorporated by reference into the EPC Agreement and forms a part of the Scope of Work, and such document is fully incorporated into the EPC Agreement as if fully repeated therein.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 57 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

APPENDIX A-2: [***]

 

[***]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 58 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

APPENDIX A-3:      NOT USED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 59 of 61

 

 

	
			Rev. 000

			07-Sept-2022

				
			EPC SCOPE OF WORK

			OF THE TRAIN 3 FACILITY 

			RG-NTD-000-PE-SOW-0002

			 

				
			

			

 

APPENDIX A-4:     NOT USED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, Rio Grande LNG, LLC and/or its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between Company and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of Company and in certain cases, its licensors. Company reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

Page 60 of 61

 

 

 

EXHIBIT A-2.1

 

[***]

 

[***]

 

 

 

 

 

 

 

 

45289037v1

 

 

Page 61 of 61

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT A-2.2

 

[***]

 

[***]

 

 

 

 

 

 

 

45289038v1

 

 

 

 

 

 

 

EXHIBIT A-2.3

 

[***]

 

[***]

 

 

 

 

 

 

 

 

 

45289039v1

 

 

 

 

 

 

EXHIBIT A-2.4

 

[***]

[***]

 

 

 

 

 

 

 

 

 

 

45289040v1

 

 

 

 

 

 

 

EXHIBIT A-2.5

 

[***]

 

[***]

 

 

 

 

 

 

 

 

 

45289041v1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	
			SCHEDULE A-2

			 

			
	
			EPC BASIS OF DESIGN FOR RIO GRANDE LNG FACILITY

			 

			RG-NTD-000-PE-BOD-00001

			 

			This document supersedes RG-000-PE-DB-0001

			[***]

			

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This document, and the information it contains, are the property of or contains intellectual property that has been licensed to, NextDecade LNG, LLC (“NextDecade”) for use by NextDecade and its affiliates (“Company”). This document and its contents are “Confidential Information” as such term is used in relevant agreements between NextDecade and the recipient. It may not be disclosed internally or to third parties without the prior, express approval of NextDecade and in certain cases, its licensors. NextDecade reserves all rights in relation to the misappropriation or misuse of this document and the Confidential Information that it contains. Please refer to your legal department regarding the terms and conditions of use.

 

 

1

 

 

 

SCHEDULE A-3 

 

AGREED CHANGE ORDERS

 

 

 

	
			EPC Agreement - Train 3

			
	
			#

				
			Description

				
			Owner Change Number

				
			Contractor Change Number

			
	
			1

				
			Clean agent fire suppression in substations per FEIS requirements

				
			EC00041

				
			SCT30001

			
	
			2

				
			APCI white paper changes - Parallel Compressor Guidelines - Control logic upgrades. Requirements for stable operation of the

			parallel strings.

				
			EC00018

				
			SCT30002

			
	
			3

				
			Remove Cryogenic Coating (Perlite) on LNG Spill Trenches and Impoundment Basins

				
			EC00042

				
			SCT30003

			
	
			4

				
			Seam Welded Pipe Minimum Line Size Reduced from 24 to 16 Inches

				
			EC00043

				
			SCT30004

			
	
			5

				
			Bechtel EPC Agreement change to Section 3.18 - timing of ITP approvals

				
			EC00008

				
			SCT30005

			
	
			6

				
			Revert Refrigeration Compressors to Table Tops with Shelters and Cranes

				
			EC00004

				
			SCT30007

			
	
			7

				
			3% Production Capacity Increase

				
			EC00006

				
			SCT30008

			
	
			8

				
			Update contract attachments A-1 (SOW), A-2 (BOD) and C (Payment Schedule) in LNTP1 [and Att B, Z]

				
			EC00009

				
			SCT30009

			
	
			9

				
			Increase some hazardous fluid line sizes based on updated PHAST modeling and resultant vapor dispersion

				
			EC00044

				
			SCT30010

			
	
			10

				
			Extend Second Nitrogen Header to Train 3

				
			EC00046

				
			SCT30011

			

 

 

 

45289036v1

 

A-3-1

 

 

 

ATTACHMENT B 

 

CONTRACTOR DOCUMENT DELIVERABLES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

45289043v1

 

B-1

 

 

 

	 	
			1.

				
			INTRODUCTION

			

 

In addition to the other requirements under the Agreement, Contractor shall be responsible for providing Owner with all the Drawings, Specifications, other documents, electronic models and electronic databases required under this Attachment B but not strictly limited to those listed below but required to be provided by Contractor to Owner under the Agreement. Hereinafter, any reference to documents shall mean the Drawings, Specifications and other documents, electronic models and electronic databases (the “Documents”) required under this Attachment B, unless specifically stated otherwise.

 

	 	
			2.

				
			OBJECTIVES

			

 

The objective of this Attachment B is to provide the requirements for the creation, issuance, review, approval, incorporation of comments, as-built, and handover of documents required to be provided by Contractor to Owner under the Agreement.

 

 

Where Contractor uses Subcontractor for documents listed in Schedule B-1, the requirements in Attachment B on Contractor will apply to Subcontractor.

 

 

	 	
			3.

				
			DOCUMENT MANAGEMENT, DISTRIBUTION, AND OWNER RESPONSE

			

 

Contractor and its Subcontractors shall prepare all documents as and when necessary for the performance of the Work, and in addition, Contractor shall distribute or make available to Owner the documents described in this Attachment B within the times required under this Attachment B.

 

 

Within [***] ([***]) Days after issuance of LNTP, Contractor shall issue a document register (hereinafter “Master Document Register”) containing a listing of the required documents pertinent to the Work authorized by such Notice that Contractor is aware of at the time of its issuance as defined in Section 3.3B of Agreement. This Master Document Register shall be updated throughout the Project as the design, engineering, procurement, construction, commissioning, start-up, and training progresses and the need for further documentation is identified. A separate document register will be developed by Contractor for Equipment Subcontractor documentation and issued to Owner for review.

 

Except as otherwise provided in the Agreement, Contractor shall issue the document transmittal by email to an email address designated by Owner. The transmittal for the associated documents shall state the action to be taken, i.e. “For Review” or “For Information.”

 

Schedule B-2 provides a representative listing of the requirements for Equipment Subcontractor documentation and descriptions of the contents of such documentation to be provided by Equipment Subcontractors. Contractor shall distribute to Owner the Equipment Subcontractor documentation in Schedule B-2 in accordance with the timing defined by Schedule B-2. For purposes of this Attachment B, “Equipment Subcontractor” shall mean any Subcontractor or Sub- subcontractor that manufactures or supplies Equipment.

 

B-2

 

 

	 	
			3.1.

				
			Contractors Document Management System

			

 

Contractor shall populate and maintain a common to industry electronic document management system (“EDMS”) for the duration of the Project. The Contractor EDMS shall maintain historical versions of previously issued documents as well as recordings of revision logs. The EDMS shall facilitate access to Project documentation from any location where Work is performed including engineering offices, fabrication facilities and the Site. Contractor’s EDMS shall be the storage location for all Project electronic documentation. Any hard copy (paper) documents shall be filed and maintained in a structured filing system residing at Contractor’s home office or Site.

 

 

	 	
			3.2.

				
			Document Issuance Classification

			

 

In addition to other requirements of the Agreement, Schedule B-1 provides details of documents Owner requires for its review and comment, or for its approval or not approved as provided in Section 3.3C of the Agreement (labeled in Schedule B-1 as “Review” or “Approval” accordingly, or for its information only (labeled in Schedule B-1 as “For Information”).

 

 

	 	
			3.2.1.

				
			For Review

			

 

In accordance with Section 3.3C of the Agreement, Owner shall be entitled to review and provide comments, which Contractor shall consider but is not obligated to incorporate unless the comment relates to a non-compliance with the requirements of the Agreement, are listed as “For Review” in Schedule B-1 and Schedule B-2.

 

 

	 	
			3.2.2.

				
			For Approval

			

 

In accordance with Section 3.3C of the Agreement, Owner shall be entitled to review and approve or not approve all documents listed as “For Approval” in Schedule B-1 and Schedule B-2.

 

	 	
			3.2.3.

				
			For Information

			

 

Documents labeled in Schedule B-1 and Schedule B-2 as “For Information” is to keep Owner informed as to the development and progress of the Project. Contractor shall review any comments provided by Owner with respect to such “For Information” documents and advise Owner of their disposition.

 

	 	
			3.3.

				
			Document Return Classification

			

 

When Contractor issues a document “For Approval”, Owner may at its discretion undertake a review of the document in accordance with Section 3.3C of the Agreement. Owner will issue a response to Contractor containing the return classification and associated comments in accordance with Section 3.3C.3 of the Agreement.

 

B-3

 

 

Contractor shall review one (1) set of consolidated written comments provided by Owner, in a format to be mutually agreed by the Parties, with respect to such “For Approval” documents and advise Owner of their disposition. Owner’s return classification and any associated comments with respect to such documents shall in no way limit or alter Contractor’s responsibility to perform and complete the Work in accordance with the requirements of the Agreement.

 

 

	 	
			3.3.1.

				
			Approved

			

 

When Owner takes no exception to any information presented in the document and has no associated comments, Owner will issue to Contractor a response as “Approved” in accordance with Section 3.3C of the Agreement. In this case Contractor may proceed with the Work as so indicated in the document.

 

 

	 	
			3.3.2.

				
			Approved with Comments

			

 

When Owner takes no exception to the overall document but has specific comments in relation to the document, Owner will issue to Contractor a response as “Approved with Comments” in accordance with Section 3.3C.3 of the Agreement. In this case Contractor shall incorporate Owner’s comments in the document, issue the document for use (and in parallel issue the revised document to Owner for information) and proceed with the Work as so indicated in the revised document. At Owner’s discretion, Owner will review the issued document to confirm that comments are appropriately reflected in the document and, where necessary, notify Contractor of any discrepancies related to such comments. Upon Contractor’s receipt of such notification, Owner and Contractor will in a timely manner agree as to the final content of the document and Contractor will revise and re-issue the document accordingly.

 

 

	 	
			3.3.3.

				
			Not Approved

			

 

When Owner takes specific exception to the document, Owner will issue to Contractor a response as “Not Approved” and provide Contractor a written statement describing the reasons for such non-approval in accordance with Section

3.3C.3 of the Agreement. In this case Contractor shall promptly revise and re- submit the document “For Approval” in accordance with Section 3.3C.5 of the Agreement.

 

If Owner does not issue any comments, proposed changes or approvals or non- approvals within such time periods set forth in Section 3.3C.3 of the Agreement, Contractor may proceed in accordance with 3.3C.4 of the Agreement.

 

 

	 	
			4.

				
			AS-BUILT DOCUMENT CLASSIFICATION

			

 

Contractor shall develop a procedure describing the process for the management of Progress As-

 

B-4

 

 

Built documents and Record As-Built documents (collectively, “As-Builts”), which shall include:

 

	 	
			●

				
			identification of deliverables to be As-Built

			

 

	 	
			●

				
			the handover of As-Builts

			

 

	 	
			●

				
			the approach that shall be used to verify the technical correctness and completeness of the information in relation to the As-Builts

			

 

	 	
			●

				
			criteria used to determine whether any particular document categorized as As-Built in Schedule B-1 shall be revised to represent the observed as-built condition.

			

 

 

Such procedure shall be submitted to Owner within [***] ([***]) Days after issuance of NTP, for Owner’s review.

 

Contractor shall utilize the following two (2) criteria to define the completed status of documents:

 

	 	
			4.1.

				
			As-Built (“AB”)

			

 

The information contained in this category of Drawings and Specifications is subject to satellite verified dimensional control and/or visual survey and shall be verified by Contractor as (i) conforming to the tolerances specified on the Drawings and Specifications, and (ii) being a true representation of the as-built condition of the Work.

 

 

During the Commissioning and start-up of various portions of the Facility, Progress As- Builts (redline mark-ups) shall be maintained in a conspicuous location in the administration building and upon request be made available to Owner’s representatives for inspection.

 

Record As-Builts shall be revised to the next available revision number and date-stamped as a Contractor authorized “As-Built.” The incorporation of as-built information into documents to produce the Record As-Builts shall be undertaken using the same means by which prior revisions were produced. Issuance of Record As-Built documents containing any hand written or redline mark-up information, discoloration, holds or clouds is strictly not allowed.

 

The requirements for As-Built documents pursuant to Section 3.3F of the Agreement shall apply equally to documents created by Contractor and those documents issued to Contractor by its Subcontractors and Sub-subcontractors.

 

The categories of documents required to be verified in accordance with this Section 4.1 are shown in Schedule B-1.

 

 

	 	
			4.2.

				
			Latest Issue Revision (“LR”)

			

 

This category of documents is limited to its latest issued revision, including those documents that have been updated in accordance with the Contractor change control system to reflect the latest “Issued for Construction” or “Issued for Design” or “Issued for

 

B-5

 

 

Information” status of the document.

 

 

The accuracy of the content of “LR” Drawings, Specifications and other documents may not be verified by dimensional or visual survey and is only representative.

 

 

	 	
			5.

				
			DOCUMENT HANDOVER

			

 

Contractor shall develop a detailed procedure describing handover of documentation to Owner including:

 

 

	 	
			●

				
			how documents will be indexed and organized for handover

			

 

	 	
			●

				
			the transmittal media to be used for electronic file handover

			

 

	 	
			●

				
			the packaging and shipping of hard-copy documents

			

 

	 	
			●

				
			type and structure of associated metadata

			

 

	 	
			●

				
			the schedule identifying the dates by which documents will be handed over.

			

 

	 	
			●

				
			detailed formats for hard-copy documentation

			

 

Such procedure shall be submitted to Owner within [***] ([***]) Days after issuance of NTP, for Owner’s review.

 

 

Unless otherwise prescribed in the Agreement, Contractor shall provide to Owner an electronic copy of all documents required in this Attachment B and elsewhere in the Agreement. For Record As-Built documents required under the Agreement, Contractor shall provide Owner with Record As-Built Drawings in electronic format identified in Schedule B-1 and the formats set forth in Section 3.3F of the Agreement.

 

For certain categories of documents specified in Schedule B-1 Contractor shall provide to Owner one (1) paper hard copy in the format described in this Attachment B.

 

 

Equipment Subcontractor documentation may be delivered in the same format as received from the Equipment Subcontractor provided they follow the requirements herein (including those set forth in Section 5.4 below) or otherwise mutually agreed upon by Owner and Contractor that the information is structured and indexed in a consistent format.

 

Documents shall contain specific references (by document number, title, and revision number) to related documentation. Where documents refer to specific equipment, the full equipment tag numbers shall be identified. Any exceptions to this requirement shall be subject to approval by Owner.

 

All documentation included in the handover document package shall be issued with a formal handover transmittal that indexes all Drawings and documents included in the handover document package.

 

B-6

 

 

	 	
			5.1.

				
			General Requirements for Electronic Documents

			

 

For any documents for which i) Adobe PDF files are required, ii) the native software application file is available and iii) the document requires a certification stamp or signature on one page, Contractor shall provide the PDF produced directly from the native software application and append a scanned image of the stamp or signature page to the electronic Adobe PDF file.

 

Wherever Adobe PDF files are produced from scanning hard copies, the resulting files shall be searchable Adobe PDF files.

 

All Contractor-generated Drawings shall be provided in Adobe PDF format and the native file format indicated in Schedule B-1. The conversion of Drawings originating in native file formats other than the format indicated in Schedule B-1 shall not result in the loss of data imbedded references, scaling, or impair its legibility.

 

 

All custom files required to display and/or edit native files within their respective applications shall be turned over to Owner along with the associated, application configuration files, external reference files, custom fonts, custom drawing borders, material databases and materials specifications to the extent required to display and/or edit native files. The use of custom fonts shall be avoided where reasonably possible.

 

	 	
			5.1.1.

				
			Preparation for Handover

			

 

For the final document handover of electronic files, such files shall be imbedded in a folder structure that replicates the document indices and categories defined elsewhere in this Attachment B. The “file name” shall be the assigned document number, and the following information shall be ascribed to the files as metadata:

 

	 	
			●

				
			Document title;

			

 

	 	
			●

				
			Originating computer program (e.g., MS Word, AutoCAD);

			

 

	 	
			●

				
			Discipline (e.g., electrical, process, construction);

			

 

	 	
			●

				
			Revision Number;

			

 

	 	
			●

				
			Issuance Date;

			

 

	 	
			●

				
			Source Company (either Contractor or Subcontractor);

			

 

	 	
			5.1.2.

				
			Electronic Databases

			

 

Schedule B-1 includes as part of the Documents certain electronic models, simulations, and database files. Such Documents shall be provided in fully native format along with all associated setup, configuration and reference files necessary to assure full functionality. In addition, no such models, simulations or database files shall be restricted by password protection or other security features that in any way limits their functionality.

 

B-7

 

 

	 	
			5.2.

				
			General Requirements for Paper (Hard Copy) Documents

			

 

Any paper hard copy of documentation required to be provided to Owner pursuant to Schedule B-1 shall also be provided in electronic form in accordance with Section 5.1 of this Attachment B.

 

 

All hard copies of Drawings, Specifications and other documents shall, unless specified otherwise, be clean, legible 11” x 17” size for Drawings and 8-1/2” x 11” size for other documents, free from any type of handwritten or redline mark-up information or discoloration. The legibility of Drawings shall not be impaired if they are photo-reduced to 11” x 17” size or have punched holes. The technical content of a Drawing or Specification shall not be obscured by the inclusion of foreign stamps.

 

	 	
			5.3.

				
			Engineering Documentation Requirements

			

 

	 	
			5.3.1.

				
			Engineering Documentation General Requirements

			

 

Document number and document revision shall be consistent, complete and clearly visible on all documents. Page numbers shall be clearly visible on multi-page documents and on each page show the page number and total number of pages. Document attributes shall be visible on the document front sheet or drawing.

 

For engineering documentation, electronic Adobe PDF files shall be created directly from the native application software and be fully searchable without the need for optical character recognition.

 

All engineering documents shall be issued final according to their appropriate classification as defined in Schedule B-1, including any that are As-Built and shall be issued with a formal handover transmittal.

 

A complete handover document index shall be provided meeting the requirements of this Attachment B. This index shall be issued to Owner for review no later than [***] ([***]) Days prior to RFSU of Train 3.

 

 

	 	
			5.3.2.

				
			Engineering Documentation Handover

			

 

All Contractor submittals of engineering documents to Owner shall be organized in categories, with each category organized based on the type of document submitted. Listed below are illustrative examples of categories.

 

	 	
			●

				
			Specifications

			

	 	
			●

				
			Calculations

			

	 	
			●

				
			Drawings

			

	 	
			●

				
			General Documents and Reports

			

	 	
			●

				
			Agreement Procedures

			

	 	
			●

				
			Electronic Databases

			

 

 

B-8

 

 

	 	
			5.4.

				
			Equipment Subcontractor Documentation Requirements

			

 

	 	
			5.4.1.

				
			General Requirements

			

 

Contractor shall require that Equipment Subcontractor data books and manufacturing record books containing the documents required by Schedule B-2, the format of which shall be defined in the procedure described in Section 5.0.

 

All documents and Drawings shall be individually numbered and registered in the EDMS in a manner consistent with the structure and indexing requirements set forth herein or otherwise agreed upon in writing between Owner and Contractor. The integrity of internal cross-references shall be maintained.

 

Document number and document revision shall be consistent, complete and clearly visible on all documents. Page numbers shall be clearly visible on multi-page documents.

 

All documents within the Equipment Subcontractor data books and manufacturing record books shall be Adobe PDF files created from the native application software or a scanned image meeting the requirements of this Attachment B.

 

 

All final Equipment Subcontractor handover document packages shall have a Contractor acceptance stamp signed by the package engineer verifying that the required documentation has been approved and all other documentation has been reviewed, is complete and technically accurate.

 

	 	
			5.4.2.

				
			Equipment Subcontractor Documentation Handover

			

 

All Contractor submittals of Equipment Subcontractor documentation to Owner shall be organized in categories, with each category organized based on the type of document submitted. Listed below are examples of categories.

 

	 	
			●

				
			Equipment Subcontractor Purchase Order Information – this shall include Equipment Subcontractor contract information, copy of purchase order (unpriced except for any spare parts which shall be priced), master index;

			

 

	 	
			●

				
			Equipment Subcontractor Engineering Documents

			

 

	 	
			●

				
			Equipment Subcontractor Engineering Drawings

			

 

	 	
			●

				
			Equipment Subcontractor Manufacturing Records – this shall include certificate of conformity, ITP’s, WPS, weld maps, list of tagged items, certificates and reports by tagged item; and

			

 

	 	
			●

				
			Equipment Operating Information – this shall include installation information, operation information, maintenance information, special tools, consumables, utility requirements.

			

 

 

B-9

 

 

 

	 	
			5.5.

				
			Commissioning, Start-up, and Performance Testing Documentation Requirements

			

 

Commissioning, start-up, and Performance Testing documentation shall comply with the requirements of this Attachment B, Attachment M, and Attachment S.

 

 

	 	
			5.6.

				
			Documents to Support Regulatory Submissions

			

 

Contractor shall provide documentation required to support periodic filings with regulatory agencies including the FERC in accordance with Section 3.12 of the Agreement.

 

 

 

	 	
			6.

				
			FILES NEEDED FOR MAINTENANCE OF PLANT SOFTWARE

			

 

Contractor shall prepare and maintain a list of all handheld devices, laptops and related software packages that are required for future maintenance adjustments associated with Equipment-related local logic control stations.

 

For all computer based programmable Equipment supplied by Contractor as part of the Work, Contractor shall provide Owner with a list of all software necessary to maintain the programmable Equipment, and provide any Contractor owned customized configuration files needed for the use of such software, in both Adobe PDF and native file formats.

 

 

B-10

 

 

SCHEDULE B-1

 

OUTLINE OF OWNER DOCUMENT SUBMITTAL REQUIREMENTS

FOR REVIEW OR INFORMATION

 

 

In addition to the requirements under the Agreement, Contractor shall be responsible for providing Owner with the documents required under this Schedule B-1 and Drawings, Specifications and other documents not listed below but required under the Agreement. This Schedule B-1 is applicable to documents Contractor is responsible to provide, unless otherwise addressed in Schedule B-2. Where a Hard Copy is required, it will only be required at the As Built stage.

 

[***].

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

B-1-1

 

 

 

SCHEDULE B-2 

 

OUTLINE OF MINIMUM EQUIPMENT SUBCONTRACTOR DOCUMENT REQUIREMENTS 

BY EQUIPMENT CATEGORY

 

 

In addition to the requirements elsewhere in the Agreement, Contractor shall be responsible for providing Owner with Equipment Subcontractor documentation, issued “For Information” or “For Review” (including Drawings and Specifications) required under this Schedule B-2 and other Equipment Subcontractor documentation not listed below but required under the Agreement. The listing below represents the expected types of documents typically produced by Subcontractors for the listed Equipment categories. The list is indicative only, and Contractor shall provide a listing as part of the register that will be developed by Contractor specifically for Equipment Subcontractor documentation. Contractor will issue to Owner the document list specific to each item of Equipment provided during the execution of the Work. Documents identified by “R”, “A”, and “I” shall be issued “For Review”, “For Approval”, and “For Information” respectively.

 

Contractor shall issue to Owner the documents described in this Schedule B-2 within [***] ([***]) Days of receiving such documents from the Subcontractor. Comments from Owner shall be consolidated with Contractor’s comments prior to the issuance of comments to the Sub- contractor.

 

[***]

 

 

 

 

 

 

 

 

 

 

 

 

B-2-1

 

 

 

 

 

ATTACHMENT C

 

PAYMENT SCHEDULE

 

[***]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

45289045v1

 

 

C-1

 

 

 

 

APPENDIX 1 

 

CONTRACT PRICE BREAKDOWN

 

[***]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C-3-1

 

 

 

 

SCHEDULE C-1

 

EARNED VALUE CONTRACT PRICE BREAKDOWN

 

 

 

[***]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

45289046v1

 

C-3-2

 

 

 

APPENDIX 1

 

RULES OF CREDIT

 

 

 

[***]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C-3-3

 

 

 

SCHEDULE C-2

 

PAYMENT MILESTONES

 

 

 

[***]

 

 

 

 

 

 

 

 

 

 

 

 

45289047v1

 

 

C-3-4

 

 

 

SCHEDULE C-3

 

MAXIMUM CUMULATIVE PAYMENT SCHEDULE

 

 

 

[***]

 

 

 

 

 

 

 

 

45289048v1

 

C-3-5

 

 

 

Table C-3A

 

[***]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table C-3B

 

[***]

 

 

 

 

 

 

 

 

 

 

 

 

 

SCHEDULE C-4

 

ADDITIONAL WORK OPTIONS PRICING

 

 

 

 

 

 

INTENTIONALLY BLANK

 

 

 

 

 

 

 

 

 

 

 

45289050v1

 

 

C-3-6

 

 

SCHEDULE C-5

 

ESCALATION TABLE

 

In the event Owner issues NTP after [***] but prior to [***], the Contract Price will increase, in accordance with Section 5.2E(1) of the Agreement, by the following amounts based on the day upon which Owner issues NTP.

 

 

 

	
			Delay in NTP Escalation to Contract Price (Option A: Base Scope)

			
	
			[***] - [***]

				
			[***] - [***]

				
			[***] - [***]

			
	
			$ [***]

				
			$ [***]

				
			$ [***]

			

 

[***]

 

 

 

 

 

 

 

 

 

 

45289051v1

 

 

C-3-7

 

 

ATTACHMENT D 

 

FORM OF CHANGE ORDER

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

45289058v1

 

D-1

 

 

 

SCHEDULE D-1

 

CHANGE ORDER FORM

 

(for use when the Parties mutually agree upon and execute the Change Order pursuant to Section 6.1D or 6.2C)

 

	
			PROJECT NAME: Rio Grande Natural Gas Liquefaction Facility

			AGREEMENT: Amended and Restated Fixed Price Turnkey Agreement for Train 3

			OWNER: Rio Grande LNG, LLC

			CONTRACTOR: Bechtel Energy Inc.

				
			DATE OF AGREEMENT: September 15, 2022 CHANGE ORDER NUMBER:           EFFECTIVE DATE OF CHANGE ORDER:

			

 

 

The Agreement between the Parties listed above is changed as follows: (attach additional documentation if necessary)

 

 

Adjustment to Contract Price

The original Contract Price was         $         

 

Net change by previously authorized Change Orders (#         )         $         

The Contract Price prior to this Change Order was         $         

The Aggregate Equipment Price will be (increased) (decreased) (unchanged) by this Change Order

 

in the amount of         $         

The Aggregate Labor and Skills Price will be (increased) (decreased) (unchanged) by this Change Order

in the amount of         $         

 

The new Contract Price including this Change Order will be         $         

 

Adjustment to Key Dates

The following Key Dates are modified (list all Key Dates modified; insert N/A if no Key Dates modified):

 

The Key Date for           will be (increased)(decreased) by           ( ) Days.

The Key Date for           as of the date of this Change Order therefore is           ( ) Days after NTP.

 

(list all Key Dates that are modified by this Change Order using the format set forth above)

 

The Guaranteed Date of           will be (increased)(decreased) by           ( ) Days.

 

The Guaranteed Date of           as of the effective date of this Change Order therefore is           ( ) Days after NTP.

(list all Guaranteed Dates that are modified by this Change Order using the format set forth above)

 

Attached to this Change Order is an updated Schedule E-1 which shall reflect and highlight any adjustment(s) to the Key Dates agreed to in this Change Order.

 

Impact to other Changed Criteria (insert N/A if no changes or impact; attach additional documentation if necessary)

 

Impact on Payment Schedule (including, as applicable, Payment Milestones):

 

Impact on Maximum Cumulative Payment Schedule:

 

Impact on Minimum Acceptance Criteria:

 

Impact on Performance Guarantees:

 

45289053v1

 

D-1-1

 

 

Impact on Basis of Design:

 

Impact on the Total Reimbursement Amount:

 

Any other impacts to obligation or potential liability of Contractor or Owner under the Agreement:

 

Select either A or B:

 

 

[A]    This Change Order shall constitute a full and final settlement and accord and satisfaction of all effects of the changes reflected in this Change Order upon the Change Criteria and shall be deemed to compensate Contractor fully for such change. Initials:   Contractor   Owner

 

 

[B]    Pursuant to Section 6.4 of the Agreement, this Change Order shall not constitute a full and final settlement and accord and satisfaction of all effects of the change reflected in this Change Order upon the Change Criteria and shall not be deemed to compensate Contractor fully for such change. Initials:   Contractor   Owner

 

 

Upon execution of this Change Order by Owner and Contractor, the above-referenced change shall become a valid and binding part of the original Agreement without exception or qualification. Except as modified by this and any previously issued Change Orders or any amendments to the Agreement, all other terms and conditions of the Agreement shall remain in full force and effect. This Change Order is executed by each of the Parties’ duly authorized representatives. This Change Order represents full and final consideration and/or adjustments for the above change, except as set out above.

 

 

                                 _______________________________________                                                                                                                                

Owner                                                                                                                    Contractor           

 

_______________________________________                                                                                                                                

Name                                                                                                                     Name

 

_______________________________________                                                                                                                                

Title                                                                                                                        Title       

 

 _______________________________________                                                                                                                               

Date of Signing                                                                                                     Date of Signing

 

 

 

 

D-1-2

 

 

 

SCHEDULE D-2 

 

CHANGE DIRECTIVE FORM

 

(for use when Owner issues a Change Directive pursuant to Section 6.1E or 6.2D)

 

 

	
			PROJECT NAME: Rio Grande Natural Gas Liquefaction Facility

			AGREEMENT: Amended and Restated Fixed Price Turnkey Agreement for Train 3

			OWNER: Rio Grande LNG, LLC

			CONTRACTOR: Bechtel Energy Inc.

				
			DATE OF AGREEMENT: September 15, 2022

			 

			CHANGE DIRECTIVE NUMBER: _________________

			 

			EFFECTIVE DATE OF CHANGE DIRECTIVE:          

			

 

You are hereby directed to make the following change(s) in the Agreement: (attach additional documentation if necessary)

 

 

 

 

 

 

 

 

 

 

Consideration for the Work specified for this Change Directive shall be paid as provided in the Agreement.

 

When signed by Owner and received by Contractor, this document becomes effective IMMEDIATELY as a Change Directive, and Contractor shall commence with the performance of the change(s) described above within [***] ([***]) Business Days of its receipt unless another time is expressly stated above. This Change Directive is signed by Owner’s duly authorized representative.

 

 

 

 

_____________________

Owner

 

_____________________

Name

 

_____________________

Title

 

_____________________

Date of Signing

 

 

 

45289054v1

 

D-2-1

 

 

SCHEDULE D-3

 

OWNER’S CHANGE ORDER REQUEST FORM

 

 

 

 

 

 

 

 

 

 

45289055v1

 

D-3-1

 

 

 

OWNER’S CHANGE ORDER REQUEST FORM - PART 1 of 2

OWNER NOTIFICATION

(To be completed by Owner)

 

 

	
			PROJECT NAME: Rio Grande Natural Gas Liquefaction Facility

			AGREEMENT: Amended and Restated Fixed Price Turnkey Agreement for Train 3

			OWNER: Rio Grande LNG, LLC

			CONTRACTOR: Bechtel Energy Inc.

				
			DATE OF AGREEMENT: September 15, 2022

			OWNER’S CHANGE ORDER REQUEST NUMBER:          

			DATE OF THIS CHANGE ORDER REQUEST:          

			

 

Description of the Proposed Change to the Work:

 

Owner requests Contractor to review and respond to this Owner’s Change Order Request, as follows:

_____________________________________________________________________________________________

   Reference Documents:

 

 

Owner:

_____________________

By

_____________________

Name

_____________________

Title

_____________________

Date

 

 

 

Contractor shall reply within the time required under Section 6.1 of the Agreement by completing Part 2 of the Change Order Request Form and submitting it to Owner.

 

This Change Order Request shall not be considered a Change Order or Change Directive to the Agreement. A Change Order may only occur by the Parties executing a Change Order in the form of Schedule D-1 to the Agreement, and a Change Directive may only occur by Owner issuing a Change Directive in the form of Schedule D-2 to the Agreement.

 

 

 

 

 

 

D-3-2

 

 

 

 

OWNER’S CHANGE ORDER REQUEST FORM - PART 2 of 2

CONTRACTOR RESPONSE

(To be completed by Contractor)

 

 

	
			PROJECT NAME: Rio Grande Natural Gas Liquefaction Facility

			AGREEMENT: Amended and Restated Fixed Price Turnkey Agreement for Train 3

			OWNER: Rio Grande LNG, LLC

			CONTRACTOR: Bechtel Energy Inc.

				
			DATE OF AGREEMENT: September 15, 2022

			OWNER’S CHANGE ORDER REQUEST NUMBER:          

			DATE OF THIS CHANGE ORDER REQUEST:          

			

 

Description of the Work to be performed and a program for its execution:

 

_____________________________________________________________________________________________

Reference Documents:

 

 

_____________________________________________________________________________________________

Preliminary assessment of the effect (if any) such request, were it to be implemented by Change Order, would have on the Changed Criteria (including any changes to the Contract Price, Key Dates, the Scope of Work or any other Changed Criteria):

 

(Attach additional documentation if necessary)

 

_____________________________________________________________________________________________

Contractor shall provide the following as part of Contractor’s preliminary assessment:

 

Commencement Date__________________________________________________________________                      

 

Estimated Duration_____________________________________________________________________________ 

 

Change in Contract Price..................................................................................................................................                                

 

Change in Aggregate Equipment Price...........................................................................................................                                

 

Change in Aggregate Labor and Skills Price.................................................................................................                                

 

Change in Total Reimbursement Amount.....................................................................................................                                

 

Change in Payment Schedule______________________________________________________________________ 

 

Impact on Key Dates (Y/N), if “yes,” ROM impact on such Key Dates____........................................                                

 

______________________________________________________________________________________________________ 

Owner:                                                                                                  Contractor:

 

_______________________________________                                                                                                                               

By                                                                                                                         By          

 

_______________________________________                                                                                                                                

Name                                                                                                                     Name

 

_______________________________________                                                                                                                                

Title                                                                                                                       Title       

 

 _______________________________________                                                                                                                               

Date                                                                                                                       Date

 

 

 

 

This Change Order Request shall not be considered a Change Order or Change Directive to the Agreement. A Change Order may only occur by the Parties executing a Change Order in the form of Schedule D-1 to the Agreement, and a Change Directive may only occur by Owner issuing a Change Directive in the form of Schedule D-2 to the Agreement.

 

 

 

D-3-3

 

 

 

 

SCHEDULE D-4

 

CONTRACTOR’S CHANGE NOTICE FORM

 

 

 

 

 

 

 

 

 

45289056v1

 

 

D-4-1

 

 

CONTRACTOR’S INITIAL CHANGE NOTICE FORM – PART 1 of 2

(To be completed by Contractor in accordance with Sections 6.2B and 6.5A of the Agreement)

 

 

	
			PROJECT NAME: Rio Grande Natural Gas Liquefaction Facility

			AGREEMENT: Amended and Restated Fixed Price Turnkey Agreement for Train 3

			OWNER: Rio Grande LNG, LLC

			CONTRACTOR: Bechtel Energy Inc.

				
			DATE AGREEMENT OF: September 15, 2022

			CONTRACTOR’S CHANGE NOTICE NUMBER:          

			DATE OF THIS CHANGE NOTICE:          

			

 

Contractor provides notice of the following proposed change(s) in the Agreement: (attach additional documentation, if necessary)

 

 

Detailed Explanation, Facts and Reasons Upon Which Contractor’s Notice of Proposed Change(s) is Based: (provide details of all known and presumed facts upon which Contractor’s claim is based, including the character, duration and extent of such circumstance, the date Contractor first knew of such circumstance, any activities impacted by such circumstance, the estimated cost and time consequences of such circumstance (including showing the impact of such circumstance, if any, on the critical path of the CPM Schedule) and any other reasons, details, or information that are expressly required under the Agreement)

 

 

 

Contractor shall provide the following as part of Contractor’s preliminary assessment:

 

Commencement Date         

Estimated Duration         

Change in Contract Price....................................................................................................................         

Change in Aggregate Equipment Price...............................................................................................         

Change in Aggregate Labor and Skills Price......................................................................................         

Change in Total Reimbursement Amount ..........................................................................................

Change in Payment Schedule                  

Impact on Maximum Cumulative Payment Schedule:         

Impact on Minimum Acceptance Criteria:          

Impact on Performance Guarantees:                   

Impact on Basis of Design:          

Any other impacts to obligation or potential liability of Contractor or Owner under the Agreement: Impact on Key Dates (Y/N), if “yes,” ROM impact on such Key Dates         

 

This Contractor’s Initial Change Notice is signed by Contractor’s duly authorized representative.

 

_____________________

By

_____________________

Name

_____________________

Title

_____________________

Date

 

 

 

D-4-2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

D-4-3

 

 

 

 

CONTRACTOR’S DETAILED CHANGE NOTICE FORM – PART 2 of 2

(To be completed by Contractor in accordance with Section 6.5B of the Agreement)

 

 

	
			PROJECT NAME: Rio Grande Natural Gas Liquefaction Facility

			AGREEMENT: Amended and Restated Fixed Price Turnkey Agreement for Train 3

			OWNER: Rio Grande LNG, LLC

			CONTRACTOR: Bechtel Energy Inc.

				
			DATE OF AGREEMENT: September 15, 2022

			CONTRACTOR’S CHANGE NOTICE NUMBER:          

			DATE OF THIS CHANGE NOTICE: _____

			

 

 

 

Contractor proposes the following change(s) in the Agreement: (attach Part 1: CONTRACTOR’S INITIAL CHANGE NOTICE FORM), and provide any further detailed explanation of the proposed change(s) and attach additional documentation, if necessary)

 

 

 

 

Detailed Reasons for Proposed Change(s) (in addition to Part 1: CONTRACTOR’S INITIAL CHANGE NOTICE FORM), provide any further detailed reasons for the proposed change, and attach all documentation reasonably requested by or necessary for Owner to determine the factors necessitating the possibility of a Change Order)

 

 

 

Requested Adjustments to Agreement (attach all documentation and details required by the Agreement to provide to Owner a comprehensive written estimate, including applicable detailed estimates and cost records, time sheets summary, and a graphic demonstration using the CPM Schedule, showing Contractor’s entitlement to a time extension to the Key Dates)

 

 

 

The effect, if any, which such proposed Change Order would have on any Changed Criteria

 

Contract Price Adjustment (including adjustments to Tax Exempt Equipment Price, Taxable Equipment Price, and Labor and Skills Price):

 

Adjustment to Key Dates:

 

Adjustment to Guaranteed Substantial Completion Date:

 

Adjustment to Final Completion Date:

 

Adjustment to Payment Schedule:

 

Adjustment to Performance Guarantees:

 

Adjustment to Minimum Acceptance Criteria:

 

Adjustment to Basis of Design:

 

Adjustment to Total Reimbursement Amount:

 

Adjustment to Scope of Work:

 

Other adjustments to liability or obligations of Contractor or Owner under the Agreement:

 

D-4-4

 

 

(Attached to this Contractor’s Change Notice is a breakdown of the requested Contract Price adjustment between Tax Exempt Equipment, Taxable Equipment, Labor and Skills Price and all other Work.)

 

 

 

This Contractor’s Change Notice is signed by Contractor’s duly authorized representative.

 

 

_____________________

By

_____________________

Name

_____________________

Title

_____________________

Date

 

 

 

 

D-4-5

 

 

 

 

 

SCHEDULE D-5

 

 

PRICING FOR CHANGE ORDERS AND CHANGE DIRECTIVES

 

 

[***].

 

 

Rates for Changes - Home Office Hourly Labor Rates

 

	
			Line Item Number

				
			Job Description

				
			[***]

				
			[***]

			
	 	 	
			S.T. Rate, (US$)

				
			O.T. Rate, (US$)

				
			S.T. Rate, (US$)

				
			O.T. Rate, (US$)

			
	 	
			Work Week (Days / Hours)

				 	 	 	 
	 	
			Available Work Hours per Year

				 	 
	 	
			Project Management

			
	
			1

				
			Project Director

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			2

				
			Project Manager

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			3

				
			Commercial Manager

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			4

				
			Project Management Clerical

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			HSE

			
	
			5

				
			Safety Manager

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			6

				
			Environmental Manager

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			7

				
			Project Safety Personnel

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			8

				
			Safety Clerical

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			QA/QC

			
	
			9

				
			QA/QC Management

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			10

				
			Quality Assurance Engineers

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			11

				
			Quality Control Engineers

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			12

				
			QA/QC Clerical

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			Estimating

			
	
			13

				
			Estimator

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			14

				
			Estimating Clerical

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			Project Controls

			
	
			15

				
			PC Manager

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			16

				
			PC Cost

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			17

				
			PC Planning & Scheduling

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			18

				
			PC Quantity Surveying & Progress

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			19

				
			PC Clerical

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			Finance & Accounting

			

 

 

 

D-5-1

 

 

 

	
			20

				
			Project Controller

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			21

				
			Accounting Manager

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			22

				
			Sr. Project Accountant

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			23

				
			Project Accountant/Biller

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			24

				
			Accounting Clerical

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			Other Support Staff

			
	
			25

				
			HR / Admin

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			26

				
			IT

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			Procurement

			
	
			27

				
			Procurement Management

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			28

				
			Logistics Specialist

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			29

				
			Buyers

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			30

				
			Expeditors

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			31

				
			Inspectors

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			32

				
			Purchasing Clerical

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			33

				
			Materials Manager

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			34

				
			Materials Control Lead

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			35

				
			Materials Specialist

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			36

				
			Preservation Coordination

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			37

				
			Materials Clerical

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			Construction - Home Office

			
	
			38

				
			Sr. Construction Director

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			39

				
			Construction Manager

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			40

				
			Technical Services Manager

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			41

				
			Project Field Engineer

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			42

				
			Discipline Engineer

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			43

				
			Discipline Superintendents

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			44

				
			Construction Coordinators

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			45

				
			Construction Automation

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			46

				
			Workforce Planner

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			47

				
			IR Manager

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			48

				
			Area Manager

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			49

				
			Construction Clerical

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			Subcontracts

			
	
			50

				
			Subcontracts

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			51

				
			Subcontracts Administrator

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			Commissioning and Startup

			
	
			52

				
			Commissioning & Startup Manager

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			53

				
			Commissioning & Startup Personnel

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			

 

 

 

D-5-2

 

 

	
			 

				
			Project Engineering Management & Support

			
	
			54

				
			Project Engineering Manager

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			55

				
			Senior Project Engineer

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			56

				
			Project Engineer

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			57

				
			Project Engineering Clerical

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			PROCESS ENGINEERING & DESIGN

			
	
			58

				
			Engineer - Principal / Lead

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			59

				
			Engineer - Senior

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			60

				
			Engineer

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			61

				
			Designer - Principal / Lead

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			62

				
			Designer - Senior

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			63

				
			Designer

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			SAFETY & ENVIRONMENTAL ENGINEERING & DESIGN

			
	
			64

				
			Engineer - Principal / Lead

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			65

				
			Engineer - Senior

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			66

				
			Engineer

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			67

				
			Designer - Principal / Lead

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			68

				
			Designer - Senior

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			69

				
			Designer

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			CIVIL/STRUCTURAL ENGINEERING & DESIGN

			
	
			70

				
			Engineer - Principal / Lead

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			71

				
			Engineer - Senior

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			72

				
			Engineer

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			73

				
			Designer - Principal / Lead

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			74

				
			Designer - Senior

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			75

				
			Designer

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			MECHANICAL ENGINEERING & DESIGN

			
	
			76

				
			Engineer - Principal / Lead

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			77

				
			Engineer - Senior

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			78

				
			Engineer

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			79

				
			Designer - Principal / Lead

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			80

				
			Designer - Senior

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			81

				
			Designer

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			PIPING ENGINEERING & DESIGN

			
	
			82

				
			Engineer - Principal / Lead

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			83

				
			Engineer - Senior

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			84

				
			Engineer

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			85

				
			Designer - Principal / Lead

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			

 

 

D-5-3

 

 

	
			86

				
			Designer - Senior

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			87

				
			Designer

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			ELECTRICAL ENGINEERING & DESIGN

			
	
			88

				
			Engineer - Principal / Lead

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			89

				
			Engineer - Senior

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			90

				
			Engineer

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			91

				
			Designer - Principal / Lead

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			92

				
			Designer - Senior

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			93

				
			Designer

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			I&C ENGINEERING & DESIGN

			
	
			94

				
			Engineer - Principal / Lead

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			95

				
			Engineer - Senior

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			96

				
			Engineer

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			97

				
			Designer - Principal / Lead

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			98

				
			Designer - Senior

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			99

				
			Designer

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			Engineering Systems (IT, Idocs etc)

			
	
			100

				
			Information Management

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			101

				
			EDMS (iDocs) Support

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			102

				
			CAD Support

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			103

				
			Engineering IT (EIT) Support

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			DOCUMENT MANAGEMENT

			
	
			104

				
			Manager / Lead

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			105

				
			Supervisor / Lead

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			106

				
			Specialist - Principal

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			107

				
			Specialist - Senior

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			108

				
			Specialist

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			ADDS

			
	 	
			Process Safety

			
	
			109

				
			Engineer - Principal / Lead

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			110

				
			Engineer - Senior

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			111

				
			Engineer

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			Geotech

			
	
			112   

				
			Engineer - Principal / Lead

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			113   

				
			Engineer - Senior

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			114   

				
			Engineer

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			MET

			
	
			115

				
			Engineer - Principal / Lead

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			

 

 

 

D-5-4

 

 

	
			 116       

				
			Engineer - Senior

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			117       

				
			Engineer

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			Marine

			
	
			118       

				
			Engineer - Principal / Lead

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			119       

				
			Engineer - Senior

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			120       

				
			Engineer

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			

 

 

Rates for Changes - Office Space

 

	
			Line Item Number

				
			Job Description

				
			[***]

				
			[***]

			
	 	 	
			Daily

				
			Weekly

				
			Monthly

				
			Daily

				
			Weekly

				
			Monthly

			
	 	
			Home Office

			
	
			1

				
			Office - Large (195 sf)

				
			[***]

				
			[***]

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			2

				
			Office - Small (150 sf)

				
			[***]

				
			[***]

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			3

				
			Cubicle - (60 sf)

				
			[***]

				
			[***]

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	
			4

				
			Conference Room - Small (800 sf)

				
			[***]

				
			[***]

				
			[***]

				
			[***]

				
			[***]

				
			[***]

			
	 	
			Site

			
	
			5

				
			Prefabricated Office Unit (11.75' x 60')

				
			[***]

				
			[***]

				
			[***]

				 	 	 
	
			6

				
			Site Bathroom Trailer (11.75' x 56')

				
			[***]

				
			[***]

				
			[***]

				 	 	 
	
			7

				 	 	 	 	 	 	 

 

 

Rates for Changes - Field Indirect Staff Labor Rates

	
			Line Item Number

				
			Job Description

				
			Operation Center 1

			
	 	 	
			S.T. Rate, (US$)

				
			O.T. Rate, (US$)

			
	 	
			Work Week (Days / Hours)

				 	 
	 	
			Available Work Hours per Year

				 
	 	
			Project Management

			
	
			1

				
			Proj Dir

				
			[***]

				
			[***]

			
	
			2

				
			Sr Proj Mgr

				
			[***]

				
			[***]

			
	
			3

				
			Proj Mgr

				
			[***]

				
			[***]

			
	
			4

				
			Sr Commercial Mgr

				
			[***]

				
			[***]

			
	
			5

				
			Commercial Mgr

				
			[***]

				
			[***]

			
	
			6

				
			Commercial Spec

				
			[***]

				
			[***]

			
	
			7

				
			Estimator

				
			[***]

				
			[***]

			
	 	
			Safety

			

 

 

 

D-5-5

 

 

	
			           8

				
			Site HSE Dir

				
			[***]

				
			[***]

			
	
			           9

				
			HSE Mgr

				
			[***]

				
			[***]

			
	
			10

				
			HSE Supv

				
			[***]

				
			[***]

			
	
			11

				
			Safety Technician

				
			[***]

				
			[***]

			
	
			12

				
			Environmental Mgr

				
			[***]

				
			[***]

			
	
			13

				
			HSE Technician

				
			[***]

				
			[***]

			
	 	
			Project Controls

			
	
			14

				
			Proj Ctrls Mgr

				
			[***]

				
			[***]

			
	
			15

				
			Lead Cost Spec

				
			[***]

				
			[***]

			
	
			16

				
			Sr Cost Spec

				
			[***]

				
			[***]

			
	
			17

				
			Cost Spec

				
			[***]

				
			[***]

			
	
			18

				
			Lead Scheduling Spec

				
			[***]

				
			[***]

			
	
			19

				
			Sr Scheduling Spec

				
			[***]

				
			[***]

			
	
			20

				
			Scheduling Spec

				
			[***]

				
			[***]

			
	
			21

				
			Lead Quantity Surv/Prog Spec

				
			[***]

				
			[***]

			
	
			22

				
			Sr Quantity Surv/Prog Spec

				
			[***]

				
			[***]

			
	
			23

				
			Quantity Surv/Prog Spec

				
			[***]

				
			[***]

			
	 	
			Construction

			
	
			24

				
			Sr Const Director

				
			[***]

				
			[***]

			
	
			25

				
			Sr Const Mgr

				
			[***]

				
			[***]

			
	
			26

				
			Const Mgr

				
			[***]

				
			[***]

			
	
			27

				
			Sr Const Tech Svs Mgr

				
			[***]

				
			[***]

			
	
			28

				
			Const Tech Svs Mgr

				
			[***]

				
			[***]

			
	
			29

				
			Const Tech Svs Coord

				
			[***]

				
			[***]

			
	
			30

				
			Const Tech Svs Spec

				
			[***]

				
			[***]

			
	
			31

				
			General Supt

				
			[***]

				
			[***]

			
	
			32

				
			Area Supt

				
			[***]

				
			[***]

			
	
			33

				
			Const TES Mgr

				
			[***]

				
			[***]

			
	
			34

				
			Completions Mgr

				
			[***]

				
			[***]

			
	 	
			Human Resources

			
	
			35

				
			Sr HR Mgr

				
			[***]

				
			[***]

			
	
			36

				
			HR Mgr I

				
			[***]

				
			[***]

			
	
			37

				
			HR Admin/Coord I

				
			[***]

				
			[***]

			
	 	
			Administration

			
	
			38

				
			Const Admin Mgr (Office Manager)

				
			[***]

				
			[***]

			
	
			39

				
			Const Admin Supv

				
			[***]

				
			[***]

			
	
			40

				
			Sr Admin Asst

				
			[***]

				
			[***]

			
	
			41

				
			Admin Asst I

				
			[***]

				
			[***]

			
	 	
			Document Management

			

 

 

 

D-5-6

 

 

	
			42

				
			Document Ctrls Mgr

				
			[***]

				
			[***]

			
	
			43

				
			Document Ctrls Supv

				
			[***]

				
			[***]

			
	
			44

				
			Sr Document Ctrls Spec

				
			[***]

				
			[***]

			
	
			45

				
			Document Ctrls Spec

				
			[***]

				
			[***]

			
	
			46

				
			Document Control

				
			[***]

				
			[***]

			
	 	
			Quality Management

			
	
			47

				
			Sr Quality Mgr

				
			[***]

				
			[***]

			
	
			48

				
			Quality Mgr

				
			[***]

				
			[***]

			
	
			49

				
			Quality Supv

				
			[***]

				
			[***]

			
	
			50

				
			Quality Engr

				
			[***]

				
			[***]

			
	
			51

				
			Quality Insp

				
			[***]

				
			[***]

			
	
			52

				
			Quality Spec

				
			[***]

				
			[***]

			
	 	
			Finance / Accounting

			
	
			53

				
			Proj Sr. Acctnt

				
			[***]

				
			[***]

			
	
			54

				
			Proj Acctnt

				
			[***]

				
			[***]

			
	
			55

				
			Payroll Clerk

				
			[***]

				
			[***]

			
	
			56

				
			Timekeeper

				
			[***]

				
			[***]

			
	 	
			IT

			
	
			57

				
			IT/Information Management Manager

				
			[***]

				
			[***]

			
	
			58

				
			IT/Information Management Technician

				
			[***]

				
			[***]

			
	
			59

				
			Procurement & Material Management

			
	
			60

				
			Buyer

				
			[***]

				
			[***]

			
	
			61

				
			Sr. Expeditor

				
			[***]

				
			[***]

			
	
			62

				
			Expeditor

				
			[***]

				
			[***]

			
	
			63

				
			Purchasing Clerk

				
			[***]

				
			[***]

			
	
			64

				
			Matls Mgmt Supv

				
			[***]

				
			[***]

			
	
			65

				
			Matls Mgmt Coord

				
			[***]

				
			[***]

			
	
			66

				
			Matls Mgmt Spec

				
			[***]

				
			[***]

			
	
			67

				
			Material Control

				
			[***]

				
			[***]

			
	
			68

				
			Whse Supv

				
			[***]

				
			[***]

			
	
			69

				
			Toolroom

				
			[***]

				
			[***]

			
	 	
			Subcontracts

			
	
			70

				
			Subcontracts Mgr

				
			[***]

				
			[***]

			
	
			71

				
			Subcontracts Coordinator

				
			[***]

				
			[***]

			
	
			72

				
			Subcontracts Administrator

				
			[***]

				
			[***]

			
	 	
			Commissioning

			
	
			73

				
			Sr Commissioning Mgr

				
			[***]

				
			[***]

			
	
			74

				
			Commissioning Supt

				
			[***]

				
			[***]

			
	
			75

				
			Sr Commissioning Spec

				
			[***]

				
			[***]

			

 

 

 

D-5-7

 

 

	
			76                

				
			Commissioning Spec

				
			[***]

				
			[***]

			

 

 

Rates for Changes - Field Direct Craft Labor Rates

 

 

	
			Line Item Number

				
			Job Description

				
			Operation Center 1

			
	 	 	
			S.T. Rate, (US$)

				
			O.T. Rate, (US$)

			
	 	
			Work Week (Days / Hours)

				 	 
	 	
			Available Work Hours per Year

				 
	 	
			Boiler Maker

			
	
			1

				
			General Foreman

				
			[***]

				
			[***]

			
	
			2

				
			Foreman

				
			[***]

				
			[***]

			
	
			3

				
			Journeyman

				
			[***]

				
			[***]

			
	
			4

				
			Apprentice / Helper

				
			[***]

				
			[***]

			
	 	
			Bricklayer / Mason

			
	
			5

				
			General Foreman

				
			[***]

				
			[***]

			
	
			6

				
			Foreman

				
			[***]

				
			[***]

			
	
			7

				
			Journeyman

				
			[***]

				
			[***]

			
	
			8

				
			Apprentice / Helper

				
			[***]

				
			[***]

			
	 	
			Carpenter

			
	
			9

				
			General Foreman

				
			[***]

				
			[***]

			
	
			10

				
			Foreman

				
			[***]

				
			[***]

			
	
			11

				
			Journeyman

				
			[***]

				
			[***]

			
	
			12

				
			Apprentice / Helper

				
			[***]

				
			[***]

			
	 	
			Electrician

			
	
			13

				
			General Foreman

				
			[***]

				
			[***]

			
	
			14

				
			Foreman

				
			[***]

				
			[***]

			
	
			15

				
			Journeyman

				
			[***]

				
			[***]

			
	
			16

				
			Apprentice / Helper

				
			[***]

				
			[***]

			
	 	
			Instrument

			
	
			17

				
			General Foreman

				
			[***]

				
			[***]

			
	
			18

				
			Foreman

				
			[***]

				
			[***]

			
	
			19

				
			Journeyman

				
			[***]

				
			[***]

			
	
			20

				
			Apprentice / Helper

				
			[***]

				
			[***]

			
	 	
			Iron Worker

			
	
			21

				
			General Foreman

				
			[***]

				
			[***]

			
	
			22

				
			Foreman

				
			[***]

				
			[***]

			
	
			23

				
			Journeyman

				
			[***]

				
			[***]

			
	
			24

				
			Apprentice / Helper

				
			[***]

				
			[***]

			

 

 

 

D-5-8

 

 

	
			 

				
			Laborer

			
	
			25

				
			General Foreman

				
			[***]

				
			[***]

			
	
			26

				
			Foreman

				
			[***]

				
			[***]

			
	
			27

				
			Journeyman

				
			[***]

				
			[***]

			
	
			28

				
			Apprentice / Helper

				
			[***]

				
			[***]

			
	 	
			Millwrights

			
	
			29

				
			General Foreman

				
			[***]

				
			[***]

			
	
			30

				
			Foreman

				
			[***]

				
			[***]

			
	
			31

				
			Journeyman

				
			[***]

				
			[***]

			
	
			32

				
			Apprentice / Helper

				
			[***]

				
			[***]

			
	 	
			Operators

			
	
			33

				
			General Foreman

				
			[***]

				
			[***]

			
	
			34

				
			Foreman

				
			[***]

				
			[***]

			
	
			35

				
			Journeyman

				
			[***]

				
			[***]

			
	
			36

				
			Apprentice / Helper

				
			[***]

				
			[***]

			
	 	
			Painters

			
	
			37

				
			General Foreman

				
			[***]

				
			[***]

			
	
			38

				
			Foreman

				
			[***]

				
			[***]

			
	
			39

				
			Journeyman

				
			[***]

				
			[***]

			
	
			40

				
			Apprentice / Helper

				
			[***]

				
			[***]

			
	 	
			Pipe Fitters

			
	
			41

				
			General Foreman

				
			[***]

				
			[***]

			
	
			42

				
			Foreman

				
			[***]

				
			[***]

			
	
			43

				
			Journeyman

				
			[***]

				
			[***]

			
	
			44

				
			Apprentice / Helper

				
			[***]

				
			[***]

			
	 	
			Scaffold Builders

			
	
			45

				
			General Foreman

				
			[***]

				
			[***]

			
	
			46

				
			Foreman

				
			[***]

				
			[***]

			
	
			47

				
			Journeyman

				
			[***]

				
			[***]

			
	
			48

				
			Apprentice / Helper

				
			[***]

				
			[***]

			

 

 

D-5-9

 

 

 

ATTACHMENT E

 

KEY DATES AND DELAY LIQUIDATED DAMAGES

 

 

 

 

 

 

 

 

45289060v1

 

 

 

E-1

 

 

SCHEDULE E-1

 

KEY DATES

 

	
			EVENT

				 	
			DAYS AFTER NTP

			
	
			CONTRACTOR KEY DATES – TRAIN 3

			
	
			1. RFSU – Train 3

				 	
			[***] Days after NTP

			
	
			2. RLFC – Train 3

				 	
			[***] Days after NTP

			
	
			3. Guaranteed         Train         3         Substantial Completion Date

				 	
			[***]

			

 

 

“RLFC” means that LNG is ready for delivery to, and capable of being delivered to and loaded into, the LNG storage tank.

 

Attached hereto in Schedule E-1A is a level 1 schedule for Train 3.

 

 

 

 

 

 

E-2

 

 

SCHEDULE E-1A

 

LEVEL 1 EPC SCHEDULE FOR TRAIN 3

 

 

[***]

 

 

 

 

 

 

 

E-3

 

 

SCHEDULE E-2

 

SUBSTANTIAL COMPLETION DELAY LIQUIDATED DAMAGES

 

Substantial Completion Delay Liquidated Damages

 

In accordance with Sections 13.1A and 13.1.B of the EPC Agreement, if Substantial Completion occurs after the Guaranteed Substantial Completion Date (as adjusted by Change Order), for Train 3, Contractor shall pay to Owner Substantial Completion Delay Liquidated Damages in the amounts set forth in this Attachment E for each Day, or portion thereof, of delay until Substantial Completion occurs for Train 3, subject to the limitations in Section 20.2 of the EPC Agreement, [***].

 

 

	
			SUBSTANTIAL COMPLETION DELAY OF TRAIN 3

				
			Per Day Delay Liquidated Damages Amount

			
	
			[***] to [***] Days after the Guaranteed Substantial Completion Date

				
			$[***]

			
	
			[***] to [***] Days after the Guaranteed Substantial Completion Date

				
			$[***]

			
	
			[***] to [***] Days after the Guaranteed Substantial Completion Date

				
			$[***]

			
	
			[***] to [***] Days after the Guaranteed Substantial Completion Date

				
			$[***]

			
	
			[***] to [***] Days after the Guaranteed Substantial Completion Date

				
			$[***]

			
	
			More than [***] Days after the Guaranteed Substantial Completion Date

				
			$[***]

			

 

[***].

 

 

 

 

E-4

 

 

 

 

 

ATTACHMENT F

 

KEY PERSONNEL AND CONTRACTOR’S ORGANIZATION

 

The persons named in the table below, in accordance with Section 2.2A of the Agreement, are designated by Contractor and approved by Owner as Key Personnel. Key Personnel shall be assigned full time to the Work for the entire duration of the Project unless otherwise specified in this Attachment F. Without limiting the requirements of the Agreement, before any Key Personnel are assigned to the Project, the full names and 1-2 page résumés of nominated Key Personnel shall be provided to and approved by Owner.

 

[***].

 

Replacements of any Key Personnel during the Project shall be in accordance with Section 2.2A of the EPC Agreement.

 

 

	
			NAME

				
			POSITION

				
			MOBILIZATION

			DATE (no later than referenced milestone)

				
			DEMOBILIZATION

			DATE (no earlier than referenced milestone)

			
	
			[***]

				
			[***]

				
			[***]

				
			Train 3 Substantial Completion

			
	
			[***]

				
			[***]

				
			[***]

				
			Train 3 Substantial Completion

			
	
			[***]

				
			[***]

				
			[***]

				
			Train 3 Substantial Completion

			
	
			[***]

				
			[***]

				
			[***]

				
			Train 3 Substantial Completion

			
	
			[***]

				
			[***]

				
			[***]

				
			Final Completion

			
	
			[***]

				
			[***]

				
			[***]

				
			Final Completion

			
	
			[***]

				
			[***]

				
			[***]

				
			Train 3 Substantial Completion

			
	
			[***]

				
			[***]

				
			[***]

				
			Train 3 Engineering substantially complete

			
	
			[***]

				
			[***]

				
			[***]

				
			Final Completion

			

 

 

45289062v1

 

 

 

F-1

 

 

CONTRACTOR’S ORGANIZATION

 

The diagram below illustrates the organizational structure to be implemented for the Work by Contractor, which includes significant roles to be filled by any Subcontractor personnel.

 

[***]

 

 

 

 

 

 

F-2

 

 

 

 

 

ATTACHMENT G

 

APPROVED SUBCONTRACTORS AND SUB-SUBCONTRACTORS

 

 

 

 

 

 

 

 

 

45289064v1

 

 

 

G-1

 

 

SECTION 1

 

 

List of potential Subcontractors and Sub-subcontractors that may have Subcontracts or Sub-subcontracts with an aggregate value in excess of [***] U.S. Dollars (U.S. $[***]).

 

 

[***]

 

 

 

 

 

 

 

G-2

 

 

SECTION 2

 

 

List of Subcontractors and Sub-subcontractors with whom Contractor has agreed to subcontract on a sole- source basis for that portion of the Work specified.

 

 

[***]

 

 

 

 

 

 

 

 

G-3

 

 

SECTION 3

 

 

List of potential Subcontractors and Sub-subcontractors that may have Subcontracts or Sub-Subcontracts with an aggregate value less than [***] U.S. Dollars (U.S. $[***]) but nevertheless are providing work deemed critical by Owner.

 

[***]

 

 

 

 

 

 

 

 

G-4

 

 

ATTACHMENT H 

 

NOTICE TO PROCEED FORMS

 

 

 

 

 

 

45289068v1

 

H-1

 

 

 

SCHEDULE H-1

 

FORM OF LIMITED NOTICE TO PROCEED

 

 

Date:         

 

 

Via Electronic and Certified Mail

[         ]

[         ]

[         ] Attention: [         ]

 

 

Re: Limited Notice to Proceed

 

Pursuant to Section 5.2B of the Amended and Restated Fixed Price Turnkey Agreement for the Engineering, Procurement and Construction of Train 3 of the Rio Grande Natural Gas Liquefaction Facility, by and between Rio Grande LNG, LLC (“Owner”) and Bechtel Energy Inc. (“Contractor”), dated as of September 15, 2022 (the “Agreement”), this letter shall serve as a Limited Notice to Proceed from Owner to Contractor authorizing Contractor to proceed with that certain portion of the Work as described below pursuant to the terms and conditions of the Agreement:

_____________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________ (“LNTP Work”).

 

Contractor is authorized under this Limited Notice to Proceed to incur no more than          U.S. Dollars (U.S. $         ) for performance of the foregoing LNTP Work with cancellation costs not to exceed [                  ] U.S. Dollars (U.S. $         ). The amount for the LNTP Work shall cover these activities for the time frame from the Amended and Restated Execution Date through [                  

 

]. No other amounts are authorized under this Limited Notice to Proceed for any other services, labor or Work. Contractor shall be paid for such specified LNTP Work pursuant to the terms and conditions of the Agreement.

 

 

	
			Owner:

				 	
			Contractor:

			
	
			By

				 	
			By

			
	
			Name

				 	
			Name

			
	
			Title

				 	
			Title

			
	
			Date

				 	
			Date

			
	
			cc:

				
			[         ]

			[         ]

				 

 

 

 

 

45289066v1

 

 

H-1-1

 

 

 

SCHEDULE H-2

 

 

FORM OF NOTICE TO PROCEED

 

 

Date:         

 

 

Via Electronic and Certified Mail

[         ]

[         ]

[         ] Attention: [         ]

 

 

Re: Notice to Proceed

 

Pursuant to Section 5.2D of the Amended and Restated Fixed Price Turnkey Agreement for the engineering, procurement and construction of Train 3 of the Rio Grande Natural Gas Liquefaction Facility, by and between Rio Grande LNG, LLC (“Owner”) and Bechtel Energy Inc. (“Contractor”), dated as of September 15, 2022 (the “Agreement”), Owner having fulfilled all conditions precedent set forth in Section 5.2D of the Agreement for the issuance of the Notice to Proceed, this letter shall serve as the Notice to Proceed from Owner to Contractor authorizing Contractor to immediately proceed with the Work upon receipt of this letter pursuant to the terms and conditions of the Agreement.

 

 

For and on behalf of Rio Grande LNG, LLC

 

By:         

Name:         

Title:         

 

 

 

cc:         [         ]

             [          ]

 

 

 

45289067v1

 

 

H-2-1

 

 

 

 

SCHEDULE H-3 

 

NOT USED

 

 

 

 

 

 

 

 

45289069v1

 

 

H-3-1

 

 

 

 

SCHEDULE H-4 

 

NOT USED

 

 

 

 

 

 

 

45289070v1

 

H-4-1

 

 

 

 

ATTACHMENT I

 

FORM OF CONTRACTOR’S INVOICES

 

 

 

 

 

 

 

 

 

 

45289074v1

 

I-1

 

 

SCHEDULE I-1

 

FORM OF CONTRACTOR’S INTERIM INVOICE

 

 

	
			PROJECT NAME: Rio Grande Natural Gas Liquefaction Facility – Train 3

			OWNER: Rio Grande LNG, LLC

			CONTRACTOR: Bechtel Energy Inc.

			DATE OF AGREEMENT: September 15, 2022

				
			INVOICE NUMBER:                    

			DATE OF INVOICE:          , 20 

			

 

 

This Invoice covers Payment Milestone No(s).           set forth in Schedule C-2 of the Agreement and covers the Month ending           , 20  (“Current Date”).

 

Contractor hereby makes application for payment to Owner as shown below in connection with the above referenced Agreement between the Parties.

 

	 	
			1.

				
			Original Aggregate Equipment Price (Section 7.1B.1 of Agreement)U.S.$

			

	 	
			2.

				
			Net change by executed Change Orders (Exhibit 1, column D total)U.S.$

			

	 	
			3.

				
			Aggregate Equipment Price to date (Line 1 + Line 2)U.S.$

			

	 	
			4.

				
			Original Aggregate Labor and Skills Price (Section 7.1B.2 of Agreement)U.S.$

			

	 	
			5.

				
			Net change by executed Change Orders (Exhibit 1, column C total)U.S.$

			

	 	
			6.

				
			Aggregate Labor and Skills Price to date (Line 4 + Line 5)U.S.$

			

	 	
			7.

				
			Total for completion of Work based on Earned Value for this Month (Attachment C)U.S.$

			

	 	
			8.

				
			Total for completion of Work based on Payment Milestones for this Month

			

(Attachment C)         U.S.$         

	 	
			9.

				
			Total earned on Change Directives for this Month (Exhibit 2)U.S.$

			

	 	
			10.

				
			Total for this Month (Line 7 + Line 8 + Line 9)U.S.$

			

	 	
			11.

				
			Previous cumulative amount InvoicedU.S.$

			

	 	
			12.

				
			Carry over amount from previous Month (Line 17 from prior Invoice)U.S.$

			

	 	
			13.

				
			Total carry over from previous Month plus total for this Month (Line 10 + Line 12) . U.S.$

			

	 	
			14.

				
			Maximum cumulative Invoice amount through this Month (from Schedule C-3)U.S.$

			

	 	
			15.

				
			Maximum Invoice amount for this Month (Line 14 – Line 11)U.S.$

			

	 	
			16.

				
			Acceptable Invoice amount for this Month (lesser of Line 13 and Line 15)U.S.$

			

	 	
			17.

				
			Carry over to next Month due to Maximum Cumulative Payment Schedule

			

(Line 13 – Line 16)         U.S.$         

	 	
			18.

				
			U.S. Duties and Tariff costsU.S.$

			

	 	
			19.

				
			Current Payment DueU.S.$

			

	 	
			20.

				
			Total invoiced to date for Provisional Sum Work (Exhibit 6 of Schedule I-1)U.S.$

			

 

Contractor certifies that (i) the Work is progressing in accordance with the Key Dates and Monthly Updated CPM Schedule, except to the extent (if any) expressly set forth in the current Monthly Progress Report; (ii) the Work described in or relating to this Invoice has been performed and supplied in accordance with the Agreement; (iii) all quantities and prices in this Invoice or attached Exhibits are correct and in accordance with the Agreement and the referenced Payment Milestone(s) and Work for which Earned Value payments are requested are complete; (iv) Contractor is entitled to payment of the amount set forth as “Current Payment Due” in this Invoice, and such Current Payment Due constitutes in full all amounts due and owing as of the Current Date; (v) the Work and any portion thereof described in or relating to this Invoice and all previous invoices are free and clear of all liens, security interests and encumbrances through the date of this Invoice; (vi) all Subcontractors have been paid the monies due and payable for Work performed in connection with the Project (except for any amounts owed such Subcontractors for Work billed under this Invoice); (vi) fully completed and executed Interim Lien and Claim Waivers from Contractor and all Major Subcontractors, are attached to this Invoice; (vii) if requested by Owner, fully completed and executed Interim Lien and Claim Waivers from each Major Sub-subcontractor; (viii) Contractor has attached to this Invoice an itemization of the Texas state sales and use tax in the form of Exhibit 3 to this Schedule I-1 (“Contract Price Itemization for Sales and Use Tax Purposes”); (ix) attached to this Invoice is all documentation supporting Contractor’s request for payment as required under the Agreement; and (x) this Invoice is signed by an authorized representative of Contractor.

 

 

I-1-1

 

 

Contractor

 

Signed:                   

Name:                   

Title:                   

Date:          , 20 

 

Subscribed and sworn to before me this           day of

, 20 .

 

 

 

Notary Public         

 

My Commission Expires:          , 20         

 

 

 

I-1-2

 

 

 

RIO GRANDE NATURAL GAS LIQUEFACTION FACILITY

 

 

INVOICE NUMBER                   INVOICE DATE          , 20         

 

 

OWNER APPROVAL

 

AMOUNT APPROVED by Owner for Payment: US$         

 

 

Owner

 

Signed:                   

Name:                   

Title:                   

Date:          , 20 

 

 

The AMOUNT APPROVED by Owner is without prejudice to any rights of Owner under the Agreement.

 

Explanation is listed below or attached if the AMOUNT APPROVED is less than the amount requested by Contractor under this Invoice:

 

 

 

 

I-1-3

 

 

 

EXHIBIT 1 

 

LIST OF EXECUTED CHANGE ORDERS

 

The following Change Orders have been executed as of the Current Date by Owner and Contractor pursuant to Section

 

6.1D or Section 6.2C.

 

 

	
			A

				
			B

				
			C

				
			D

				
			E

			
	
			No.

				
			Description of Change Order

				
			Aggregate Labor and Skills Price

			Change (U.S.$)

				
			Aggregate Equipment Price Change (U.S.$)

				
			Total Price Change (U.S.$)

			
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
			Total

				 	 	 	 

 

 

 

 

I-1-4

 

 

EXHIBIT 2 

 

CHANGE DIRECTIVES

 

WORK COMPLETED UNDER CHANGE DIRECTIVES: The following Work has been completed for active Change Directives executed by Owner in accordance with Section 6.1E or Section 6.2D of the Agreement up through the Month ending          , 20  (“Current Date”).

 

Table 1

 

 

	
			Change Directive No.

				
			Description of Change Directive

				
			Month

				
			Monthly Value of Work Completed (U.S.$) for each

			Active Change Directive

				
			Total Value of Work Completed (U.S.$) for each

			Active Change Directive

			
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 
	
			Total Change Directive Work earned for the invoiced Month

				 

 

Note: Closed Change Directives converted to executed Change Orders are excluded.

 

 

 

 

 

 

 

I-1-5

 

 

EXHIBIT 3 

 

CONTRACT PRICE ITEMIZATION FOR SALES AND USE TAX PURPOSES

 

	
			Component

				
			Original Value

				
			Adjustments due to Change Order(s)

				
			Current Value

				
			Amount Earned To Date

				
			Amount Remaining

			
	
			Aggregate         Equipment Price

				 	 	 	 	 
	
			Aggregate Labor and Skills Price

				 	 	 	 	 
	
			Contract Price (total from above lines)

				 	 	 	 	 

 

 

 

 

 

 

I-1-6

 

 

 

EXHIBIT 4 

 

INTERIM LIEN AND CLAIM WAIVERS

 

 

 

 

 

 

 

 

 

I-1-7

 

 

EXHIBIT 5 

 

INFORMATION REQUIRED OR REQUESTED BY OWNER

 

 

 

 

 

 

 

 

 

 

 

 

 

I-1-8

 

 

EXHIBIT 4 

 

PROVISIONAL SUM WORK

 

Provisional Sum Work. The following Provisional Sum Work has been completed in accordance with the Agreement, including Attachment JJ.

 

	
			Month of Invoice

				
			Provisional Sum Work

				
			Approved Amount (U.S.$)

			
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
			Total =

				 

 

 

 

 

 

 

 

 

 

 

 

I-1-9

 

 

 

 

 

SCHEDULE I-2

 

FORM OF CONTRACTOR’S FINAL INVOICE

 

 

 

Project Name: Rio Grande Natural Gas Liquefaction Facility – Train 3

 

 

	
			Invoice Date: Invoice Number:

				 	
			Contract Date: Payment Terms:

			
	
			Attention:

				 	
			Remittance Information:

			
	
			Rio Grande LNG, LLC [Name]

				
			Bank:

				
			Address:

			
	
			[Title] [Address] [Address]

				 	
			Account Name: Sort Code:

			Account Number: SWIFT Code:

			

 

 

This Invoice covers payments for the Work during the period from

 

, 202  (“Current Date”).

 

, 202  to

 

 

Contractor hereby makes application for payment to Owner for the Work as shown below in connection with the above referenced Agreement between the Parties.

 

 

 

	 	 	
			Train 3 Amount

			
	
			1

				
			Original Aggregate Equipment Price (Section 7.1B.1 of Agreement)

				 
	
			2

				
			Net change by executed Change Orders

				 
	
			3

				
			Aggregate Equipment Price to date

				 
	
			4

				
			Original Aggregate Labor and Skills Price (Section 7.1B.2 of Agreement)

				 
	
			5

				
			Net change by executed Change Orders

				 
	
			6

				
			Aggregate Labor and Skills Price to date

				 
	 	 	 
	
			7

				
			Original Contract Price

				
			$0.00

			
	
			8

				
			Net change by Change Order (Exhibit 1)

				 
	
			9

				
			Contract Price to date

				 
	 	 	 
	
			10

				
			Cumulative amount previously invoiced (excluding U.S. Duties and Tariff costs)

				 
	 	 	 
	
			11

				
			Current month amount invoiced for the Earned Value achieved (see Exhibit 2)

				 
	
			12

				
			Current month amount invoiced for Milestones completed (see Exhibit 3)

				 
	
			13

				
			Total current month amount invoiced (Invoice amount for this month) (Line 11 plus Line 12)

				 
	 	 	 
	
			14

				
			U.S. Duties and Tariff costs

				 

 

 

 

45289074v1

 

I-2-1

 

 

 

	
			 

				 	 
	
			15

				
			Current Payment Due (Line 13 plus Line 14)

				 
	 	 	 
	
			16

				
			Cumulative amount invoiced to date (excluding U.S. Duties and Tariff costs)

				 
	 	 	 
	
			17

				
			Balance of Contract Price remaining (Line 9 less line 16)

				 

 

 

 

 

Submitted by:

 

[         ]

 

 

By:                  

 

 

Name:

Title:

 

 

REMIT VIA WIRE TRANSFER TO:

 

[         ] 

[Address]

[City], TX [Zip]

 

Bank Name:         

Bank Account #:

ABA/Routing #:                    

CHIPS ID#:                  

 

 

 

 

 

 

I-2-2

 

 

EXHIBIT 1 – LIST OF EXECUTED CHANGE ORDERS

 

 

	
			Change Order No.

				
			Change Order Description

				
			Train 3 Amount

			
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	
			Total

				
			$0.00

			

 

 

 

 

 

I-2-3

 

 

EXHIBIT 2 – CURRENT MONTH AMOUNT INVOICED FOR THE EARNED VALUE ACHIEVED

 

	 	 	
			Train 3

			
	 	 	
			$0.00

			
	
			1.

				
			Contract Price to date

				 
	
			2.

				
			Cumulative Percent Completion % Achieved by end of current month

				 
	
			3.

				
			Cumulative Earned Value Achieved (Line 2 multiplied by Line 3)

				 
	
			4.

				
			Cumulative amount previously invoiced for Earned Value Achieved

				 
	
			5.

				
			Current month amount invoiced for the Earned Value achieved (Line 4 less Line 5)

				 

 

 

 

Note: Required supporting documentation is attached hereto.

 

 

 

 

 

 

 

 

 

I-2-4

 

 

EXHIBIT 3 – CURRENT MONTH AMOUNT INVOICED FOR MILESTONES COMPLETED

 

	
			Milestone No.

				
			Milestone Description

				
			Train 3 Amount

			
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	
			Current month amount invoiced for Milestones completed

				
			$0.00

			

 

 

 

Note: Required supporting documentation is attached hereto.

 

 

 

 

 

I-2-5

 

 

 

EXHIBIT 4 – CONTRACT PRICE ITEMIZATION FOR SALES AND USE TAX PURPOSE

 

 

	
			Component

				
			Original Value

				
			Adjustments due to Change

			Order(s)

				
			Current Value

				
			Amount Earned To Date

				
			Amount Remaining

			
	
			Aggregate Equipment Price

				 	 	 	 	 
	
			Aggregate Labor and Skills Price

				 	 	 	 	 

 

 

 

 

 

 

 

 

 

 

I-2-6

 

 

EXHIBIT 5 – LIST OF FINAL LIEN AND CLAIM WAIVERS ATTACHED

 

 

	
			No.

				
			Name

			
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

 

 

 

Note: Required supporting documentation is attached hereto.

 

 

 

 

 

 

 

 

 

I-2-7

 

 

EXHIBIT 6 – CONTRACTOR STATEMENT SUMMARIZING AND RECONCILING ALL

 

PREVIOUS INVOICES

 

 

[Contractor to attach final statement]

 

 

 

 

 

 

 

 

 

 

 

I-2-8

 

 

EXHIBIT 7 – CONTRACTOR AFFIDAVIT

 

Contractor certifies that (i) all Work (except for that Work and obligations that survive the termination or expiration of the Agreement) has been fully and completely performed in accordance with the terms of the Agreement, including the completion of all Punchlist items; (ii) all quantities and prices in this final Invoice or attached Exhibits are correct and in accordance with the Agreement; (iii) fully completed and executed Final Lien and Claim Waivers from Contractor, all Major Subcontractors, as provided in Section 7.3 of the Agreement, are attached to this final Invoice; (iv) if requested by Owner, fully executed Interim Lien and Claim Waivers from all Major Sub-subcontractors; (v) all documentation and electronic databases required to be delivered by Contractor to Owner under the Agreement, including Record As-Built Drawings and Specifications, and test reports, have been delivered to Owner; (vi) all of Contractor’s, Subcontractors’ and Sub-subcontractors personnel, supplies, waste, materials, rubbish, and temporary facilities have been removed from the Site, except as permitted under Section 12.3A of the Agreement; (vii) all Subcontractors and Sub-subcontractors have been fully paid in accordance with the terms of their Subcontracts or Sub- subcontracts, except for amounts that are the subject of this final Invoice, and attached is evidence acceptable to Owner that all Subcontractors and Sub-subcontractors have been fully paid, less amounts that are the subject of this final Invoice; (viii) all payrolls, Taxes, liens, charges, claims, demands, judgments, security interests, bills for Equipment, and any other indebtedness connected with the Work has been paid;

 

(ix) Contractor has attached to this Invoice an itemization of the Texas state sales and use tax in the form of Exhibit 4 to this Schedule I-2 (“Contract Price Itemization for Sales and Use Tax Purposes”); (x) Contractor has delivered an executed Final Completion Certificate, which has been accepted by Owner by signing such certificate; (xi) attached to this final Invoice is all documentation supporting Contractor’s request for payment as required under the Agreement; and (xi) this final Invoice is signed by an authorized representative of Contractor

 

 

 

FOR CONTRACTOR: 

APPLICABLE TO INVOICE NO(S). ALL (IF ALL, PRINT ALL)

 

 

DATE:         

SIGNED:

BY:

TITLE:

 

 

 

On this   day of          , 20 , before me appeared the above-signed, known or identified to me personally, who, being first duly sworn, did say that s/he is the authorized representative of Contractor and that this document was signed under oath personally and on behalf of Contractor.

 

 

 

 

Notary Public

My term expires (date):         

 

 

I-2-9

 

 

 

 

 

 

ATTACHMENT J

 

Health, Safety, Security and Environmental Policies

 

 

 

 

 

 

 

 

45289076v1

 

 

 

 

 

 

Table of Contents

 

	 	
			1.0

				
			Introduction

				2
	 	
			2.0

				
			Objectives

				2
	 	
			3.0

				
			Definitions and Interpretation

				2

 

	 	
			3.1

				
			Definitions

				2
	 	
			3.2

				
			Interpretation

				2

 

	 	
			4.0

				
			Rights and Responsibilities

				2
	 	
			5.0

				
			Planning

				3

 

	 	
			5.1

				
			Safety in Engineering and Design

				3
	 	
			5.2

				
			Subcontractor and Sub-subcontractor Safety

				3
	 	
			5.3

				
			Construction

				3
	 	
			5.4

				
			Commissioning

				4
	 	
			5.5

				
			Environmental

				4
	 	
			5.6

				
			Security

				4

 

	 	
			6.0

				
			Project HSSE Execution

				4

 

	 	
			6.1

				
			Audits4

				4
	 	
			6.2

				
			Inspections

				5
	 	
			6.3

				
			Regulatory Inspections

				5
	 	
			6.4

				
			Owner Communication

				5
	 	
			6.5

				
			Training and Certification

				5
	 	
			6.6

				
			Emergency Response Team

				5
	 	
			6.7

				
			Subcontractors and Sub-subcontractors

				5

 

	 	
			7.0

				
			Reporting

				6

 

	 	
			7.1

				
			Incidents

				6
	 	
			7.2

				
			Leading and Lagging Indicators

				6
	 	
			7.3

				
			Safety Committees

				6
	 	
			7.4

				
			Lessons Learned

				6

 

 

J-1

 

 

	 	
			1.0

				
			INTRODUCTION

			

 

In addition to the requirements specified in any other provision of the Agreement, this Attachment J sets out the requirements and resultant scope of activities for health, safety, security and environment (“HSSE”) to be performed by Contractor for the Project. This Attachment J does not constitute a substitute for the Contractor HSSE Plan.

 

	 	
			2.0

				
			OBJECTIVES

			

 

The objective of this Attachment J is to provide the standards and requirements for:

 

	 	
			●

				
			Compliance with relevant regulations, permits and consents;

			

	 	
			●

				
			Contractor HSSE procedures; and

			

	 	
			●

				
			Subcontractor HSSE procedures.

			

 

	 	
			3.0

				
			DEFINITIONS AND INTERPRETATION

			

 

	 	
			3.1

				
			Definitions

			

 

Capitalized terms have the meaning in the Agreement. Unless otherwise specified, Sections and Articles referenced herein refer to the applicable Section or Article in this Attachment J.

 

	 	
			3.2

				
			Interpretation

			

 

To the extent there is a conflict between this Attachment J and the terms and conditions of the Agreement, the terms and conditions of the Agreement shall prevail.

 

	 	
			4.0

				
			RIGHTS AND RESPONSIBILITIES

			

 

In addition to the other responsibilities set forth herein, the Parties shall have the following responsibilities:

 

	 	
			4.1.1

				
			Owner rights and responsibilities:

			

 

	 	
			●

				
			Stop the Work in accordance with the Agreement; and

			

	 	
			●

				
			Participate in Monthly HSSE reviews organized by the Contractor.

			

	 	
			●

				
			Owner’s personnel shall adhere to Contractor’s HSSE plans and procedures in all areas where Work is being performed under the direction of Contractor.

			

 

	 	
			4.1.2

				
			Contractor rights and responsibilities:

			

 

	 	
			●

				
			Be responsible for health, safety, security, and environment in relation to the Project to the extent set forth in the Agreement;

			

	 	
			●

				
			Develop and maintain HSSE organization charts for Contractor’s HSSE personnel on the Project at the Site;

			

	 	
			●

				
			Review Subcontractor HSSE plans for alignment with Agreement requirements;

			

	 	
			●

				
			Develop an HSSE strategy and detailed execution plan for Owner’s comment and approval.

			

	 	
			●

				
			Develop and apply specific HSSE procedures necessary to implement Contractor’s detailed HSSE execution plan.

			

	 	
			●

				
			HSSE execution plan and procedures shall be consistent with Contractor’s corporate policies and business practices as they relate to HSSE.

			

 

 

J-2

 

 

	 	
			5.0

				
			PLANNING

			

 

Contractor shall prepare an overall HSSE execution plan and procedures covering all Work (“HSSE Plan”). The HSSE Plan shall detail the HSSE requirements for the Contractor and Subcontractors for areas in and around the Site and other areas where Work is being performed by Contractor. The HSSE Plan will comply with requirements of Sections 2.3, 2.4, 3.6, 3.8, 3.10, 3.17, 3.19, 3.24, and 3.27 of the Agreement. Contractor shall provide to Owner the HSSE Plan for approval pursuant to Section 3.10 of the Agreement.

 

	 	
			5.1

				
			Safety in Engineering and Design

			

 

Contractor will develop and implement a safety in design program for the detailed design and engineering to ensure that the design developed by the Contractor integrates elements of hazard identification and risk assessment methods. This program will include and be applicable to all aspects of the Work and will be made available to the Owner for review. This safety in design program shall also include ergonomic and human factors reviews of designs to ensure operability, maintainability, access and egress are duly considered. Reviews of the 3D model shall incorporate such safety in design requirements.

 

	 	
			5.2

				
			Subcontractor and Sub-subcontractor Safety

			

 

Contractor will require that all Subcontractors and Sub-subcontractors comply with the HSSE Plan.

 

	 	
			5.3

				
			Construction

			

 

Section 6.0 further details HSSE requirements for the Contractor to implement at Site and for all elements of the Work during construction and pre-Commissioning.

 

The HSSE Plan and procedures for the Site shall contain multiple elements to increase the visibility of HSSE protection during execution of the Work and shall include:

 

	 	
			●

				
			Posters with performance to date and safety themes;

			

	 	
			●

				
			Site induction and regular tool-box meetings;

			

	 	
			●

				
			Training of workers prior to commencing special tasks;

			

	 	
			●

				
			Competent and qualified persons list;

			

 

	 	
			●

				
			Identification badges that ensure controlled and necessary access to Site;

			

	 	
			●

				
			Inspection of all vehicles and Construction Equipment prior to first use on Site, with up to date testing certificates (as applicable) and/or color (tape) labelling (as applicable);

			

	 	
			●

				
			Periodic (quarterly) re-inspection and updating of color tape identification to mark fit-for use Construction Equipment;

			

	 	
			●

				
			Testing and/or verification of skills of specific groups of workers, such as divers, scaffolders, truck drivers, signal persons, excavator operators, and crane operators;

			

	 	
			●

				
			Define or make reference to scaffold tagging procedure, lock-out/tag-out procedure, permit-to-work procedure.

			

 

	 	
			5.3.1

				
			Marine Construction

			

 

The provisions of Section 6.0 shall apply to all marine construction. Further, Contractor shall include in its HSSE Plan and procedures provisions to address the

 

J-3

 

 

risks to workers and the environment during construction of the marine structures and facilities such as the marine offloading facilities, loading jetties, and any other open water activities.

 

	 	
			5.4

				
			Commissioning

			

 

All provisions of Section 6.0 shall apply from the start of Commissioning to handover to Owner at Substantial Completion.

 

	 	
			5.5

				
			Environmental

			

 

As part of the HSSE Plan, Contractor will develop and implement an environmental plan and associated procedures which is compliant with the requirements of the Agreement, including Sections 3.6 and 3.17 thereof, and all Applicable Law. The environmental plan will detail Contractor participation and compliance with Owner’s regulatory compliance reporting, as well as Contractor generated plans to perform the Work including storm-water pollution prevention plan, and other remedial action identification and close-out procedures. Regular Construction Equipment inspections to prevent spills and pollution shall be part of the environmental plan.

 

	 	
			5.6

				
			Security

			

 

Contractor will develop and implement a security plan which is compliant with the requirements of the Agreement, including Sections 3.10, 3.24, 3.25, and 4.3 of the Agreement, and all Applicable Law. The security plan will detail the requirements for the physical and cyber security of offices, Subcontractor facilities, and Site. The security plan will also address the control of access for personnel (both physical and cyber), vehicles, Equipment, Construction Equipment and Hazardous Materials (including gate passes for removal from Site), and logging of access card swipes at Site. The access card system will also host the records on personnel induction training for gate entry and cross-referenced to other records for personnel allowed to enter the Site.

 

Contractor shall deliver to Owner the security plan the earlier of [***] ([***]) Days after NTP or [***] ([***]) Days prior to commencement of the Work at the Site for Owner’s for review and approval.

 

 

	 	
			6.0

				
			PROJECT HSSE EXECUTION

			

 

Contractor will regularly assess the implementation of, and compliance with, the HSSE Plan.

 

	 	
			6.1

				
			Audits

			

 

Contractor’s HSSE Plan shall include a HSSE internal audit plan. HSSE internal audits will be scheduled and executed for the measurement of compliance to and effectiveness of HSSE processes and procedures.

 

Contractor will initiate corrective actions for findings arising from such audits and track the implementation and closeout of corrective actions prior to the next scheduled audit.

 

J-4

 

 

Planned internal audits specified in the HSSE Plan will be notified to the Owner. Summaries of Contractor’s HSSE audit reports, corrective actions and close out documentation will be made available to the Owner upon request.

 

	 	
			6.2

				
			Inspections

			

 

As part of the HSSE Plan, Contractor will develop a Project-specific plan and schedule of weekly inspections of the Site. These inspections will be carried out by Contractor personnel with participation of Owner’s Representative, at Owners discretion.

 

At weekly Contractor meetings, the results of the HSSE inspections will be discussed and where applicable follow-up actions and responsibilities will be assigned. Subcontractor’s own HSSE personnel shall carry out their own worksite inspections.

 

	 	
			6.3

				
			Regulatory Inspections

			

 

As part of the HSSE Plan, Contractor will implement a procedure to address regulatory inspections. This procedure will include a requirement to inform Owner of regulatory inspections, request participation, and make available the findings of the inspections to the extent specified in the Agreement.

 

	 	
			6.4

				
			Owner Communication

			

 

Communication requirements are described in Attachment X.

 

	 	
			6.5

				
			Training and Certification

			

 

As part of the HSSE Plan, Contractor will develop and implement a procedure and processes to train Contractor personnel, Subcontractor personnel, and Owners personnel on the HSSE rules, guidelines and expectations for performing Work at the Site or other locations where construction, fabrication, or heavy lift operations are being performed.

 

This training program will comply with all applicable federal, state and local regulatory requirements. This training program will also ensure that Contractor, Subcontractor and Sub-subcontractor personnel are trained on the pertinent Site specific HSSE requirements for their work scope.

 

	 	
			6.6

				
			Emergency Response Team

			

 

As part of the HSSE Plan, Contractor will establish an emergency response team (“ERT”) at the Site, and the ERT will be responsible for responding to incidents at the Site, as established in the Owner and Contractor emergency response plans (“ERP”).

 

	 	
			6.7

				
			Subcontractors and Sub-subcontractors

			

 

Contractor will require that all Subcontractors and Subcontractors’ personnel comply with the requirements of the HSSE Plan when they work at the Site or remote locations. Subcontractors are also required to adhere to Contractor’s HSSE plan, or have an HSSE plan which is compliant with Project and all federal, state and local regulatory requirements. Subcontractors are responsible for Subcontractors’ personnel compliance to the Subcontractors’ HSSE plans.

 

Where a Subcontractor hires a Sub-subcontractor to perform work, it is the responsibility of the Subcontractor to ensure Sub-subcontractor compliance with the

 

J-5

 

 

HSSE Plan. This includes the training of Sub-subcontractor personnel. Records of Subcontractor training compliant with the HSSE Plan shall be kept on Site.

 

 

	 	
			7.0

				
			REPORTING

			

 

	 	
			7.1

				
			Incidents

			

 

Contractor will require that all Contractor, Subcontractor and Sub-subcontractor personnel in the home office, at Site or remote locations report any accident or incident as soon as possible to Contractor. This reporting will also include near-misses and any unsafe conditions. Any near miss that could have resulted in an LTA or any LTA will be subject to a root cause analysis to identify any potential unsafe working practices.

 

[***].

 

For any construction, fabrication or heavy lift operations performed off Site, Contractor shall also report incidents that occur at such locations if they occur in relation to the performance of the Work.

 

All incidents at Site and other areas where Work is being performed shall be investigated by Contractor and reported to Owner.

 

	 	
			7.2

				
			Leading and Lagging Indicators

			

 

As part of the HSSE Plan, Contractor will develop and implement a system for tracking and reporting to the Owner all leading and lagging indicators associated with the execution of the Work. This system will also use, as a basis, lagging indicators from previous Contractor projects to form the basis for the leading indicators associated with analogous elements of the Work. This system will, at a minimum, be based upon GECP.

 

	 	
			7.3

				
			Safety Committees

			

 

As part of the HSSE Plan, Contractor will establish one or more safety committees at the Site. Such safety committee(s) shall be comprised of Contractor personnel on Site, Owner HSSE leadership personnel and, if Contractor deems necessary, Major Subcontractor personnel performing Work on Site. The Site safety committee shall meet no less than once per [***] ([***]) Month period to review HSSE trends and develop specific HSSE themes and actions to actively address trends.

 

	 	
			7.4

				
			Lessons Learned

			

 

As part of the HSSE Plan, Contractor will capture, document, report on and make available to the Owner all HSSE lessons learned associated with the execution of the Work. These shall be used to upgrade Site job-specific safety induction briefings, and also serve as input in developing safety initiatives and focus programs by the safety committee(s).

 

 

J-6

 

 

ATTACHMENT K

FORM OF LIEN AND CLAIM WAIVERS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

45289086v1

 

 

K-1

 

 

SCHEDULE K-1

 

CONTRACTOR’S INTERIM CONDITIONAL LIEN WAIVER AND RELEASE UPON PROGRESS PAYMENT

(To be provided by Contractor with each invoice for progress payment)

 

STATE OF TEXAS

COUNTY OF CAMERON

PROJECT: TRAIN 3 OF THE RIO GRANDE NATURAL GAS LIQUEFACTION FACILITY

JOB NO.          

 

On receipt by the signer of this document, Bechtel Energy Inc. (“Contractor”), of a check, wire transfer or other valid form of payment from, or on behalf of, Rio Grande LNG, LLC (“Owner”), in the sum of U.S.

$          payable to Contractor and when the check has been properly endorsed and has been paid by the bank on which it is drawn, or the wire transfer payment is received by Contractor, or Contractor is in possession of such other valid form of payment, as applicable, this document becomes effective to release any mechanic’s lien right, any right arising from a payment bond that complies with a state or federal statute, any common law payment bond right, any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights for persons in Contractor’s position that Contractor has on the property of Rio Grande LNG, LLC located south of the Brownsville-Port Isabel Highway and north of the Brownsville Ship Channel in Cameron County near Brownsville, Texas to the following extent:

 

For purposes of the provision of labor, services, equipment and/or materials for Train 3 of the Rio Grande Natural Gas Liquefaction Facility pursuant to that certain Amended and Restated Fixed Price Turnkey Agreement for the Engineering, Procurement and Construction of Train 3 of the Rio Grande Natural Gas Liquefaction Facility by and between Contractor and Owner.

 

This Waiver and Release covers a progress payment for all labor, services, equipment, and/or materials

furnished to the property or to           (Owner Parties) as indicated in the attached

statement(s) or progress payment request(s), except for unpaid retention, pending modifications and changes, or other items furnished.

 

Before any recipient of this document relies on this document, the recipient should verify evidence of payment to Contractor.

 

Contractor warrants that Contractor has already paid or will use the funds received from this progress payment to promptly pay in full all of Contractor’s laborers, subcontractors, materialman, and suppliers for all work, materials, equipment, and/or services provided for or to the above referenced Project in regard to the attached statement(s) or progress payment request(s).

 

FOR CONTRACTOR:

Applicable to Invoice(s) No(s).          

Date:         

Signed:         

By:         

Title:          

 

AFFIDAVIT

On this day of         , 20 , before me appeared the above-signed, known or identified to me personally, who, being first duly sworn, did say that s/he is the authorized representative of Contractor and that this document was signed on behalf of Contractor.

 

Notary Public:         

My term expires (date):         

 

                          45289078v1

 

 

K-1-1

 

 

SCHEDULE K-2 

 

CONTRACTOR’S INTERIM CONDITIONAL CLAIM WAIVER UPON PROGRESS PAYMENT

(To be provided by Contractor with each invoice for progress payment)

 

 

STATE OF TEXAS

COUNTY OF CAMERON

 

The undersigned, Bechtel Energy Inc. (“Contractor”), has been engaged under a contract with Rio Grande LNG, LLC (“Owner”) to furnish certain materials, equipment, services, and/or labor for the construction of improvements to the Train 3 of the Rio Grande Natural Gas Liquefaction Facility Project, together with all improvements and appurtenances attendant thereto (the “Train 3 Liquefaction Facility”), which is located near Brownsville, Texas, and more particularly described as follows: south of the Brownsville-Port Isabel Highway and north of the Brownsville Ship Channel in Cameron County near Brownsville, Texas.

 

Upon receipt of the sum of U.S. $         , Contractor waives and releases any and all claims and demands (except those concerning lien or bond rights which are separately waived pursuant to TEX. PROP. CODE ANN. § 53.284 by the Contractor’s Interim Conditional Waiver and Release on Progress Payment, which is executed concurrently with this form) against Owner for payment for work, materials, equipment, services, labor, and other items performed or provided through the date of          , 20  (include the Current Date as defined in the Invoice) except this Waiver and Release does not foreclose and Contractor reserves

(i) claims for payment related to work, materials, equipment, services, labor, and other items performed or provided pursuant to a Change Directive; or (ii) retained or escrowed amounts, on account of materials, equipment, services and/or labor furnished by the undersigned to or on account of Owner or any other entity for said Train 3 Liquefaction Facility. For the avoidance of doubt, this Waiver and Release does not foreclose and Contractor reserves (a) Change Order rights under the Agreement for unknown claims unrelated to payment for work, materials, equipment, services, labor, and other items performed or provided through the date above (except to the extent precluded by the Agreement), (b) claims for payment for work, materials, equipment, services, labor, and other items performed or provided which are known but the required notice period has not expired, or (c) claims for payment for work, materials, equipment, services, labor, and other items performed or provided for which notice was given by Contractor as required under Section 6.5 of the Agreement; Exceptions as follows:

_____________________________________________________________________________________________________________________________

 ________________________________________________________________________________________________________

                       (If no exceptions or “none” is entered above, undersigned shall be deemed not to have reserved any claim.)

 

This Waiver and Release is freely and voluntarily given, and the undersigned acknowledges and represents that it has fully reviewed the terms and conditions of this Waiver and Release, that it is fully informed with respect to the legal effect of this Waiver and Release, and that it has voluntary chosen to accept the terms and conditions of this Waiver and Release in return for the payment recited above.

 

FOR CONTRACTOR:

 

 

	
			Dated:          

				
			Bechtel Energy Inc.

			
	
			Applicable to Invoice No.          

				
			By:          

			(signature)

			
	 	
			Print Name:          

			Title:         

			

 

 

45289079v1

 

K-2-1

 

 

SCHEDULE K-3 

 

SUBCONTRACTOR’S INTERIM CONDITIONAL LIEN WAIVER AND RELEASE UPON PROGRESS PAYMENT

(To be provided by Subcontractor with each invoice for progress payment)

 

STATE OF TEXAS

COUNTY OF CAMERON

PROJECT: TRAIN 3 OF THE RIO GRANDE NATURAL GAS LIQUEFACTION FACILITY

JOB NO.          

 

 

Upon receipt by the signer of this document, [         ] (“Subcontractor”), of a check, wire transfer or other valid form of payment from, or on behalf of Bechtel Energy Inc. (“Contractor”), in the sum of U.S.

$          payable to Subcontractor and when the check has been properly endorsed and has been paid by the bank on which it is drawn, or the wire transfer payment is received by Subcontractor, or Subcontractor is in possession of such other valid form of payment, as applicable, this document becomes effective to release any mechanic’s lien right, any right arising from a payment bond that complies with a state or federal statute, any common law payment bond right, any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights for persons in Subcontractor’s position that Subcontractor has on the property of Rio Grande LNG, LLC, located south of the Brownsville-Port Isabel Highway and north of the Brownsville Ship Channel in Cameron County near Brownsville, Texas to the following extent:

 

For purposes of the provision of labor, services, equipment and/or materials for Train 3 of the Rio Grande Natural Gas Liquefaction Facility.

 

This Waiver and Release covers a progress payment for all labor, services, equipment, and/or materials furnished to the property or to Contractor, or to           (Owner Parties) as indicated in the attached statement(s) or progress payment request(s), except for unpaid retention, pending modifications and changes, or other items furnished.

 

Before any recipient of this document relies on this document, the recipient should verify evidence of payment to Subcontractor.

 

 

Subcontractor warrants that Subcontractor has already paid or will use the funds received from this progress payment to promptly pay in full all of Subcontractor’s laborers, subcontractors, materialman, and suppliers for all work, materials, equipment, and/or services provided for or to the above referenced Project in regard to the attached statement(s) or progress payment request(s).

 

FOR SUBCONTRACTOR:

Applicable to Invoice(s) No(s).          

 

 

Date:         

Signed:         

By:         

Title:         

 

 

AFFIDAVIT

On this day of         , 20 , before me appeared the above-signed, known or identified to me personally, who, being first duly sworn, did say that s/he is the authorized representative of Subcontractor and that this document was signed on behalf of Subcontractor.

 

Notary Public:         

My term expires (date):         

 

 

45289080v1

 

K-3-1

 

 

SCHEDULE K-4

SUBCONTRACTOR’S INTERIM CONDITIONAL CLAIM WAIVER UPON PROGRESS PAYMENT

(To be provided by Subcontractor with each invoice for progress payment)

 

STATE OF TEXAS

COUNTY OF CAMERON

 

The undersigned,           (“Subcontractor”), has been engaged under a contract with Bechtel Energy Inc. (“Contractor”) to furnish certain materials, equipment, services, and/or labor for the construction of improvements to the Train 3 of the Rio Grande Natural Gas Liquefaction Facility Project, together with all improvements and appurtenances attendant thereto (the “Train 3 Liquefaction Facility”), which is located near Brownsville, Texas, and more particularly described as follows: south of the Brownsville-Port Isabel Highway and north of the Brownsville Ship Channel in Cameron County near Brownsville, Texas.

 

Upon receipt of the sum of U.S. $         , the Subcontractor waives and releases any and all claims, demands, actions, causes of action or other rights (except those concerning lien or bond rights which are separately waived pursuant to TEX. PROP. CODE ANN. § 53.284 by the Subcontractor’s Interim Conditional Waiver and Release on Progress Payment, which is executed concurrently with this form) against Contractor or Rio Grande LNG, LLC (“Owner”) for payment for work, materials, equipment, services, labor, and other items performed or provided through the date of                   , 20  and reserving those rights that the Subcontractor might have in any retained amounts, on account of materials, equipment, services and/or labor furnished by the undersigned to or on account of Owner or any other entity for said Train 3 Liquefaction Facility. Exceptions as follows:                            

 

 

 

 

(If no exceptions or “none” is entered above, undersigned shall be deemed not to have reserved any claim.)

 

This Waiver and Release is freely and voluntarily given, and the undersigned acknowledges and represents that it has fully reviewed the terms and conditions of this Waiver and Release, that it is fully informed with respect to the legal effect of this Waiver and Release, and that it has voluntary chosen to accept the terms and conditions of this Waiver and Release in return for the payment recited above.

 

FOR SUBCONTRACTOR:

 

 

	
			Dated:          

				
			[Name of Subcontractor]

			
	
			Applicable to Invoices No.          

				
			By:          

			(signature)

			
	 	
			Print Name:          

			Title:         

			

 

 

 

 

 

AFFIDAVIT

On this           day of ______, 20 , before me appeared the above-signed, known or identified to mepersonally, who, being first duly sworn, did say that s/he is the authorized representative of Subcontractor and that this document was signed on behalf of Subcontractor.

 

Notary Public:         

My term expires (date):         

 

 

 

 

 

45289081v1

 

 

K-4-1

 

 

 

SCHEDULE K-5

 

CONTRACTOR’S FINAL LIEN WAIVER AND RELEASE UPON FINAL PAYMENT

 

 

STATE OF TEXAS

COUNTY OF CAMERON

PROJECT: TRAIN 3 OF THE RIO GRANDE NATURAL GAS LIQUEFACTION FACILITY

JOB NO.          

 

 

Upon receipt by the signer of this document, Bechtel Energy Inc. (“Contractor”), of a check, wire transfer or other valid form of payment from, or on behalf of, Rio Grande LNG, LLC (“Owner”), in the sum of U.S. $          payable to Contractor and when the check has been properly endorsed and has been paid by the bank on which it is drawn, or the wire transfer payment is received by Contractor, or Contractor is in possession of such other valid form of payment, as applicable, this document becomes effective to release any mechanic’s lien right, any right arising from a payment bond that complies with a state or federal statute, any common law payment bond right, any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights for persons in Contractor’s position that Contractor has on the property of Rio Grande LNG, LLC located south of the Brownsville-Port Isabel Highway and north of the Brownsville Ship Channel in Cameron County near Brownsville, Texas to the following extent:

 

For purposes of the provision of labor, services, equipment and/or materials for Train 3 of the Rio Grande Natural Gas Liquefaction Facility pursuant to that certain Amended and Restated Fixed Price Turnkey Agreement for the Engineering, Procurement and Construction of Train 3 of the Rio Grande Natural Gas Liquefaction Facility by and between Contractor and Owner.

 

This Waiver and Release covers the final payment to the Contractor for all labor, services, equipment, and/or materials furnished to the property, or to           (Owner Parties).

 

Before any recipient of this document relies on this document, the recipient should verify evidence of payment to Contractor.

 

Contractor warrants that Contractor has already paid or will use the funds received from this final payment to promptly pay in full all of Contractor’s laborers, subcontractors, materialman, and suppliers for all work, materials, equipment, and/or services provided for or to the above referenced Project up to the date of this Waiver and Release.

 

 

FOR CONTRACTOR:

Applicable to Invoice No(s). ALL (if all, print all)

 

 

Date:         

Signed:         

By:         

Title:         

 

AFFIDAVIT

On this day of         , 20 , before me appeared the above-signed, known or identified to me personally, who, being first duly sworn, did say that s/he is the authorized representative of Contractor and that this document was signed on behalf of Contractor.

 

Notary Public:         

My term expires (date):         

 

 

 

45289082v1

 

K-5-1

 

 

SCHEDULE K-6

 

CONTRACTOR’S FINAL CLAIM WAIVER AND RELEASE UPON FINAL PAYMENT

(To be executed by Contractor with the invoice for final payment)

 

STATE OF TEXAS COUNTY OF CAMERON

 

The undersigned, Bechtel Energy Inc. (“Contractor”), has been engaged under a contract with Rio Grande LNG, LLC (“Owner”) to furnish certain materials, equipment, services, and/or labor for the construction of improvements to the Train 3 of the Rio Grande Natural Gas Liquefaction Facility Project, together with all improvements and appurtenances attendant thereto (the “Train 3 Liquefaction Facility”), which is located near Brownsville, Texas, and more particularly described as follows: south of the Brownsville-Port Isabel Highway and north of the Brownsville Ship Channel in Cameron County near Brownsville, Texas.

 

Upon receipt of the sum of U.S. $          (amount in invoice for final payment), Contractor waives and releases all claims, demands, actions, causes of actions or other rights at law, in contract, tort, equity or otherwise (except those concerning lien or bond rights which are separately waived pursuant to TEX. PROP. CODE ANN. § 53.284 by the Contractor’s Conditional Waiver and Release on Final Payment, which is executed concurrently with this form) that Contractor has, may have had or may have in the future against Owner for payment for work, materials, equipment, services, labor, and other items performed under the contract with Owner. This Waiver and Release applies to all facts, acts, events, circumstances, changes, constructive or actual delays, accelerations, extra work, disruptions, interferences and the like which have occurred, or may be claimed to have occurred prior to the date of this Waiver and Release, whether or not known to Contractor at the time of the execution of this Waiver and Release.

 

Contractor represents that all of its obligations, legal, equitable, or otherwise, relating to or arising out of its work on the Train 3 Liquefaction Facility have been fully satisfied (except for that work and obligations that survive the termination or expiration of the contract, including warranties and correction of defective work), including, but not limited to, payment to subcontractors and employees and payment of taxes.

 

This Waiver and Release is freely and voluntarily given, and Contractor acknowledges and represents that it has fully reviewed the terms and conditions of this Waiver and Release, that it is fully informed with respect to the legal effect of this Waiver and Release, and that it has voluntarily chosen to accept the terms and conditions of this Waiver and Release in return for the payment recited above. Contractor understands, agrees and acknowledges that, upon payment, this document waives rights unconditionally and is fully enforceable to extinguish all claims (except those concerning lien or bond rights which are separately waived pursuant to TEX PROP. CODE § 53.284 by the Contractor’s Final Conditional Lien Waiver and Release on Final Payment, which is executed concurrently with this form) of Contractor against Owner for payment for work, materials, equipment, services, labor, and other items performed under the contract with Owner as of the date of execution of this document by Contractor.

 

FOR CONTRACTOR:

 

 

	
			Dated:          

				
			Bechtel Energy Inc.

			
	
			Applicable to Invoice No(s):          ALL         .

				
			By:          

			(signature)

			
	 	
			Print Name:          

			Title:         

			

 

 

45289083v1

 

K-6-1

 

 

 

AFFIDAVIT

On this           day of          , 20 , before me appeared the above-signed, known or identified to me

personally, who, being first duly sworn, did say that s/he is the authorized representative of Contractor and that this document was signed on behalf of Contractor.

 

Notary Public:         

My term expires (date):         

 

 

 

K-6-2

 

 

SCHEDULE K-7

 

SUBCONTRACTOR’S FINAL LIEN WAIVER AND RELEASE UPON FINAL PAYMENT

 

 

STATE OF TEXAS

COUNTY OF CAMERON

PROJECT: TRAIN 3 OF THE RIO GRANDE NATURAL GAS LIQUEFACTION FACILITY

JOB NO.          

 

 

Upon receipt by the signer of this document, [         ] (“Subcontractor”), of a check, wire transfer or other valid form of payment from, or on behalf of Bechtel Energy Inc. (“Contractor”), in the sum of U.S.

$          payable to Subcontractor and when the check has been properly endorsed and has been paid by the bank on which it is drawn, or the wire transfer payment is received by Subcontractor, or Subcontractor is in possession of such other valid form of payment, as applicable, this document becomes effective to release any mechanic’s lien right, any right arising from a payment bond that complies with a state or federal statute, any common law payment bond right, any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights for persons in Subcontractor’s position that Subcontractor has on the property of Rio Grande LNG, LLC, located south of the Brownsville-Port Isabel Highway and north of the Brownsville Ship Channel in Cameron County near Brownsville, Texas to the following extent:

 

For purposes of the provision of labor, services, equipment and/or materials for Train 3 of the Rio Grande Natural Gas Liquefaction Facility.

 

This Waiver and Release covers the final payment to the Contractor for all labor, services, equipment, and/or materials furnished to the property, to the Contractor, or to           (Owner Parties).

 

Before any recipient of this document relies on this document, the recipient should verify evidence of payment to Subcontractor.

 

Subcontractor warrants that Subcontractor has already paid or will use the funds received from this final payment to promptly pay in full all of Subcontractor’s laborers, subcontractors, materialman, and suppliers for all work, materials, equipment, and/or services provided for or to the above referenced Project up to the date of this Waiver and Release.

 

 

FOR SUBCONTRACTOR:

Applicable to Invoice No. ALL  (if all, print all)

 

 

Date:                  (SEAL)

Signed:         

By:         

Title:         

 

 

 

AFFIDAVIT

                 On this           day of _____, 20 , before me appeared the above-signed, known or identified to me personally, who, being first duly sworn, did say that s/he                         is the authorized representative of Subcontractor and that this document was signed on behalf of Subcontractor.

 

Notary Public:         

My term expires (date):         

 

45289084v1

 

K-7-1

 

 

SCHEDULE K-8

 

SUBCONTRACTOR’S FINAL CLAIM WAIVER AND RELEASE UPON FINAL PAYMENT

 

STATE OF TEXAS

COUNTY OF CAMERON

 

The undersigned,           (“Subcontractor”), has been engaged under a contract with Bechtel Energy Inc. (“Contractor”) to furnish certain materials, equipment, services, and/or labor for the construction of improvements to the Train 3 of the Rio Grande Natural Gas Liquefaction Facility Project, together with all improvements and appurtenances attendant thereto (the “Train 3 Liquefaction Facility”), which is located near Brownsville, Texas, and more particularly described as follows: south of the Brownsville-Port Isabel Highway and north of the Brownsville Ship Channel in Cameron County near Brownsville, Texas.

 

Upon receipt of the sum of U.S. $          (amount in invoice for final payment), Subcontractor waives and releases all claims, demands, actions, causes of actions or other rights at law, in contract, tort, equity or otherwise (except those concerning lien or bond rights which are separately waived pursuant to TEX. PROP. CODE § 53.284 by the Subcontractor’s Final Lien Waiver and Release Upon Final Payment, which is executed concurrently with this form) that Subcontractor has, may have had or may have in the future against Contractor or Rio Grande LNG, LLC (“Owner”) (i) for payment for work, materials, equipment, services, labor, and other items performed or (ii) arising out of, or in any way related to, Subcontractor’s contract with Contractor or the Train 3 Liquefaction Facility. This Waiver and Release applies to all facts, acts, events, circumstances, changes, constructive or actual delays, accelerations, extra work, disruptions, interferences and the like which have occurred, or may be claimed to have occurred prior to the date of this Waiver and Release, whether or not known to Subcontractor at the time of the execution of this Waiver and Release.

 

Except for work and obligations that survive the termination or expiration of the agreement between Subcontractor and Contractor, including warranties and correction of defective work, Subcontractor represents that all of its obligations, legal, equitable, or otherwise, relating to or arising out of its work on the Train 3 Liquefaction Facility have been fully satisfied, including, but not limited to, payment to lower tiered subcontractors and employees and payment of taxes.

 

 

This Waiver and Release is freely and voluntarily given, and Subcontractor acknowledges and represents that it has fully reviewed the terms and conditions of this Waiver and Release, that it is fully informed with respect to the legal effect of this Waiver and Release, and that it has voluntarily chosen to accept the terms and conditions of this Waiver and Release in return for the payment recited above. Subcontractor understands, agrees and acknowledges that, upon payment, this document waives rights unconditionally and is fully enforceable to extinguish all claims (except those concerning lien or bond rights which are separately waived pursuant to TEX. PROP. CODE § 53.284 by the Subcontractor’s Final Lien Waiver and Release Upon Final Payment, which is executed concurrently with this form) of Subcontractor as of the date of execution of this document by Subcontractor.

 

FOR SUBCONTRACTOR:

 

 

	
			Dated:          

				
			[Name of Subcontractor]

			
	
			Applicable to Invoice No(s):          ALL         .

				
			By:          

			(signature)

			
	 	
			Print Name:          

			Title:         

			

 

 

45289085v1

 

K-8-1

 

 

 

 

AFFIDAVIT

On this           day of          , 20 , before me appeared the above-signed, known or identified to me

personally, who, being first duly sworn, did say that s/he is the authorized representative of Subcontractor and that this document was signed on behalf of Subcontractor.

 

Notary Public:         

My term expires (date):         

 

 

 

 

 

 

 

 

K-8-2

 

 

ATTACHMENT L

 

FORM OF COMPLETION CERTIFICATES

 

 

 

 

 

 

 

45289094v1

 

L-1

 

 

SCHEDULE L-1

 

FORM OF RFFGI CERTIFICATE FOR TRAIN 3

 

                                          Date:                          

 

 

[         ]

[         ]

[         ]

[         ]

Attn: [                  ]

 

Re: RFFGI Certificate for Train 3 for the Amended and Restated Fixed Price Turnkey Agreement for the Engineering, Procurement and Construction of Train 3 of the Rio Grande Natural Gas Liquefaction Facility (the “Project”), dated as of September 15, 2022 (the “EPC Agreement”), by and between Rio Grande LNG, LLC (“Owner”) and Bechtel Energy Inc. (“Contractor”)

 

Pursuant to Section 11.1A of the EPC Agreement, Contractor hereby certifies all of the following have occurred with respect to Train 3: (i) Contractor has commissioned the systems and subsystems for RFFGI of Equipment for such Train and completed the activities necessary to support the introduction of hydrocarbons, including the utility and process systems, safeguarding and shutdown systems have been pre-commissioned, commissioned and integrity verified, all as set forth in greater detail in Attachment A and Attachment M; (ii) such Train is ready for acceptance of natural gas feed; (iii) Contractor has provided the required documents for FERC approval; and (iv) Contractor hereby delivers to Owner this RFFGI Certificate for Train 3.

 

Contractor certifies that all requirements under the EPC Agreement for RFFGI with respect to Train 3 were achieved on          , 20 .

 

 

Attached is all documentation required to be provided by Contractor under the EPC Agreement to establish that all requirements under the EPC Agreement for RFFGI of Train 3 have been achieved.

 

 

45289088v1

 

L-1-1

 

 

 

 

IN WITNESS WHEREOF, Contractor has caused this RFFGI Certificate to be duly executed and delivered as of the date first written above.

 

Bechtel Energy Inc.

 

By:             

    Name:             

Title:           

Date:          

 

 

 

cc:

 

[         ]

[         ]

Attention: [            ]

Telephone: (         )          -         

 

 

L-1-2

 

 

Owner Acceptance or Rejection of RFFGI Certificate

 

Pursuant to Section 11.4 of the EPC Agreement, Owner           accepts or           rejects (check one) the RFFGI Certificate for Train 3.

 

If the RFFGI Certificate was rejected, the basis for any such rejection of RFFGI is attached hereto.

 

For and on behalf of

 

Rio Grande LNG, LLC

 

By:         

Name:         

Title:         

Date:         

 

 

 

L-1-3

 

 

SCHEDULE L-2

 

NOT USED

 

 

 

 

 

45289089v1

 

 

L-2-1

 

 

SCHEDULE L-3

 

FORM OF RFSU CERTIFICATE FOR TRAIN 3

 

Date: _____________

 

 

[         ]

[         ]

[         ]

[         ]

Attn: [                  ]

 

Re: Ready for Start Up (hereinafter “RFSU”) Certificate for Train 3 for the Amended and Restated Fixed Price Turnkey Agreement for the Engineering, Procurement and Construction of Train 3 of the Rio Grande Natural Gas Liquefaction Facility (the “Train 3 Project”), dated as of September 15, 2022 (the “EPC Agreement”), by and between Rio Grande LNG, LLC (“Owner”) and Bechtel Energy Inc. (“Contractor”)

 

Pursuant to Section 11.1B of the EPC Agreement, Contractor hereby certifies all of the following have occurred with respect to Train 3: (i) Contractor has achieved and maintained Ready for Feed Gas Introduction for Train 3; (ii) all activities necessary to support the introduction of hydrocarbons, including all utility and process utility, safeguarding and shutdown systems have been pre-commissioned, commissioned and integrity verified; (iii) Commissioning is complete, cool down can commence for Train 3, and Train 3 is ready for startup and acceptance of feed gas;

(iv) Equipment vendor representatives and other specialist Subcontractors required to support RFSU and early operations are mobilized at the Site; (v) Contractor hereby delivers to Owner a RFSU Certificate; and (vi) performance by Contractor of all other obligations required under the EPC Agreement for RFSU of such Train 3.

 

Contractor certifies that all requirements under the EPC Agreement for RFSU with respect to Train 3 were achieved on          , 20 .

 

 

Attached is all documentation required to be provided by Contractor under the EPC Agreement to establish that all requirements under the EPC Agreement for RFSU of Train 3 have been achieved.

 

[signature page follows]

 

 

 

 

 

 

45289090v1

 

L-3-1

 

 

 

 

IN WITNESS WHEREOF, Contractor has caused this RFSU Certificate to be duly executed and delivered as of the date first written above.

 

Bechtel Energy Inc.

 

By:          

    Name:          

Title:         

Date:         

 

 

 

cc:

 

[         ]

[         ]

Attention: [                  ]

Telephone: (         )          -         

 

 

 

L-3-2

 

 

Owner Acceptance or Rejection of RFSU Certificate

 

Pursuant to Section 11.4 of the EPC Agreement, Owner           accepts or           rejects (check one) the RFSU Certificate for Train 3,

 

If the RFSU Certificate was rejected, the basis for any such rejection of RFSU is attached hereto.

 

For and on behalf of

 

Rio Grande LNG, LLC

 

By:         

Name:         

Title:         

Date:         

 

 

 

 

 

 

L-3-3

 

 

SCHEDULE L-4

 

NOT USED

 

 

 

45289091v1

 

 

L-4-1

 

 

SCHEDULE L-5

 

FORM OF SUBSTANTIAL COMPLETION CERTIFICATE FOR TRAIN 3

 

Date: _________________

 

 

[         ]

[         ]

[         ]

[         ] Attn: [                  ]

 

Re: Substantial Completion Certificate for Train 3 for the Amended and Restated Fixed Price Turnkey Agreement for the Engineering, Procurement and Construction of Train 3 of the Rio Grande Natural Gas Liquefaction Facility Train 3 (the “Project”), dated as of September 15, 2022 (the “EPC Agreement”), by and between Rio Grande LNG, LLC (“Owner”) and Bechtel Energy Inc. (“Contractor”)

 

Pursuant to Section 11.3 of the EPC Agreement, Contractor hereby certifies all of the following have occurred with respect to Train 3: (i) RFFGI has been achieved for Train 3; (ii) RFSU has been achieved; (iii) all Minimum Acceptance Criteria have been achieved; (iv) in the case that all Performance Guarantees have not been achieved, Owner has accepted (such acceptance not to be unreasonably withheld) Contractor’s corrective work plan, and Contractor has turned over the Train pursuant to Section 11.5A; (v) Contractor and Owner have agreed upon a list of Punchlist items as set forth in Section 11.6; (vi) any Delay Liquidated Damages due and owing have been paid to Owner in accordance with Section 13.2; (vii) the entire Work related to Train 3 (including training and the delivery of all documentation, manuals and instruction books necessary for safe and proper operation) has been completed, except for Punchlist items, in accordance with the requirements and Specifications of the EPC Agreement; (viii) Contractor has delivered to Owner all Capital Spare Parts for Train 3 in accordance with Section 3.4B; (ix) Contractor hereby delivers to Owner this Substantial Completion Certificate as required under Section 11.3; (x) Train 3 is available for commercial operation in accordance with the requirements of the EPC Agreement;

(xi) Contractor has obtained all Permits required to be obtained by Contractor under the EPC Agreement; and (xii) Contractor has delivered to Owner a fully executed Interim Lien and Claim Waiver in the form of Schedules K-1 and K-2, fully executed Interim Lien and Claim Waivers from all Major Subcontractors in the form of Schedules K-3 and K-4 and, if requested by Owner, fully executed Interim Lien and Claim Waivers from all Major Sub-subcontractors substantially in the form of Schedules K-3 and K-4, covering all Work up to the date of Substantial Completion.

 

 

Contractor certifies that it achieved Substantial Completion of Train 3 on          , 20 .

 

 

 

Attached is all documentation required to be provided by Contractor under the EPC Agreement to establish that Contractor has achieved all requirements under the EPC Agreement for Substantial Completion, including the Performance Test reports and analysis.

 

 

45289092v1

 

L-5-1

 

 

 

 

 

IN WITNESS WHEREOF, Contractor has caused this Substantial Completion Certificate to be duly executed and delivered as of the date first written above.

 

Bechtel Energy Inc.

 

By:          

    Name:          

Title:         

Date:       

 

 

 

cc:

 

[         ]

[         ]

Attention: [                  ]

Telephone: (         )          -         

 

 

 

 

 

L-5-2

 

 

Owner Acceptance or Rejection of Substantial Completion Certificate

 

Pursuant to Section 11.4 of the EPC Agreement, Owner           accepts or           rejects (check one) the Substantial Completion Certificate for Train 3.

 

If the Substantial Completion Certificate was rejected, the basis for any such rejection of Substantial Completion is attached hereto.

 

For and on behalf of

 

Rio Grande LNG, LLC

 

By:         

Name:         

Title:         

Date:         

 

 

 

 

 

 

L-5-3

 

 

 

SCHEDULE L-6

 

FORM OF FINAL COMPLETION CERTIFICATE

 

 

                                                                                   Date: ___________________________

 

 

[         ]

[         ]

[         ]

[         ]

Attn: [           ]

 

Re: Final Completion Certificate for the Amended and Restated Fixed Price Turnkey Agreement for the Engineering, Procurement and Construction of Train 3 of the Rio Grande Natural Gas Liquefaction Facility (the “Project”), dated as of September 15, 2022 (the “EPC Agreement”), by and between Rio Grande LNG, LLC (“Owner”) and Bechtel Energy Inc. (“Contractor”)

 

 

Pursuant to Section 11.7 of the EPC Agreement, Contractor hereby certifies all of the following have occurred with respect to the Train 3 Project, and that all Work and all other obligations under the EPC Agreement (except for that Work and obligations that survive the termination or expiration of the EPC Agreement, including obligations for Warranties, correction of Defective Work and those covered by Section 11.10), are fully and completely performed in accordance with the terms of the EPC Agreement, including: (i) the achievement of Substantial Completion; (ii) the achievement of all Performance Guarantees or payment of all Performance Liquidated Damages due and owing; (iii) the completion of all Punchlist items; (iv) delivery by Contractor to Owner of a fully executed Final Lien and Claim Waiver in the form of Schedules K-5 and K-6; (v) delivery by Contractor to Owner of all documentation required to be delivered under the EPC Agreement, including Record As-Built Drawings and Specifications, test reports and the final operations and maintenance manuals for the Train 3 Liquefaction Facility; (vi) delivery to Owner, in content and form reasonably satisfactory to Owner, copies of all required Subcontracts, written assignments of Subcontractor warranties and a list of the names, addresses and telephone numbers of the Subcontractors providing such warranties; (vii) removal from the Site of all of Contractor’s, Subcontractors’ and Sub-subcontractors’ personnel, supplies, waste, materials, rubbish, Hazardous Materials, Construction Equipment, and temporary facilities for which Contractor is responsible under Article 3, other than as required by Contractor to fulfill its obligations under Section 12.3A;

(viii) delivery by Contractor to Owner of fully executed Final Lien and Claim Waivers from all Major Subcontractors in the form in Schedules K-7 and K-8; (ix) if, requested by Owner, fully executed Final Lien and Claim Waivers from Major Sub-subcontractors in a form substantially similar to the form in Schedules K-7 and K-8; and (x) Contractor hereby delivers to Owner this Final Completion Certificate as required under Section 11.7.

 

Contractor certifies that it achieved Final Completion on          , 20 .

 

 

 

 

 

 

45289093v1         

 

 

L-6-1

 

 

 

IN WITNESS WHEREOF, Contractor has caused this Final Completion Certificate to be duly executed and delivered as of the date first written above.

 

Bechtel Energy Inc.

 

By:          

    Name:          

Title:         

Date:       

 

 

 

cc:

 

[         ]

[         ]

Attention: [                  ]

Telephone: (         )          -         

 

 

 

L-6-2

 

 

Owner Acceptance or Rejection of Final Completion Certificate

 

Pursuant to Section 11.7 of the EPC Agreement, Owner           accepts or           rejects (check one) the Final Completion Certificate.

 

If the Final Completion Certificate was rejected, the basis for rejection of Final Completion is attached hereto.

 

For and on behalf of

 

Rio Grande LNG, LLC

 

By:         

Name:         

Title:         

Date:         

 

 

 

L-6-3

 

 

ATTACHMENT M

 

PRE-COMMISSIONING, COMMISSIONING, START-UP, TRAINING AND TURNOVER PROGRAM

 

 

[***]

 

 

 

45289096v1

 

 

 

 

 

ATTACHMENT N 

 

NOT USED

 

 

 

 

 

45289097v1

 

N-1

 

 

 

ATTACHMENT O

 

INSURANCE REQUIREMENTS

 

 

	 	
			1.

				
			Contractor’s Insurance.

			

 

A.    Types and Amounts of Insurance. Contractor shall, at its own cost and expense, procure and maintain in full force and effect at all times from the commencement of the Work through Final Completion (and in the case of products and completed operations coverage, for a further period of [***] ([***]) years after Final Completion or the applicable statute of repose pursuant to the governing law under Section 21.9 of the Agreement (“Statute of Repose”), whichever is greater) the following insurances on an occurrence basis for coverages with the following prescribed limits of liability; provided however, the insurances addressed in subsections (iv), (v), (vi), (vii), (viii), (ix), (x), (xi), (xii) and (xiii) do not need to be maintained until Owner’s issuance of the Notice to Proceed (or Limited Notice to Proceed as applicable) under the Agreement and the insurances in subsections (x), (xi), (xii) and (xiii) are required to be maintained until Substantial Completion. All required limits may be met with any combination of primary and excess limits:

 

 

i.    Workers’ Compensation and Employers’ Liability Insurance. Contractor shall comply with Applicable Law with respect to workers’ compensation and employer’s liability requirements and other similar requirements where the Work is performed and shall procure and maintain workers’ compensation and employer’s liability policies in accordance with Applicable Law and the requirements of this Agreement. These policies shall include coverage for all states and other applicable jurisdictions, voluntary compensation coverage and occupational disease and for all temporary and/or leased employees and Alternate Employer endorsement (WC 00 03 01, or equivalent). To the extent applicable, if the Work is to be performed on or near navigable waters, the policies shall include coverage for United States Longshoremen’s and Harbor Workers’ Act, the Jones Act and/or any other Applicable Law regarding maritime law. A maritime employers’ liability policy may be used to satisfy applicable parts of this requirement with respect to Work performed on or near navigable waters.

 

 

Limits:

 

 

Worker’s Compensation: Statutory

 

Employers’ Liability: US $[***] each accident, US $[***] disease each employee and US $[***] disease policy limit or amounts required by Applicable Law, whichever is greater

 

Maritime Employers’ Liability: US $[***] each accident, US $[***] disease each employee and US $[***] disease policy limit or amounts required by Applicable Law, whichever is greater

 

45289019v1

 

O-1

[***]

 

 

 

To meet the foregoing workers’ compensation and employer’s liability requirements, Contractor shall, upon NTP, extend the workers’ compensation and employer’s liability insurance coverage under the Trains 1 and 2 EPC Agreement to this Agreement. Such extension shall meet the requirements of this Attachment O and shall not relieve Contractor of any of its responsibilities to meet the requirements of Attachment O under the Trains 1 and 2 EPC Agreement.

 

ii.    Commercial General Liability Insurance. This policy shall be written as a Contractor Controlled Insurance Policy (as defined in Section 1(D) below) and provide coverage against claims for bodily injury (including bodily injury and death), advertising injury, property damage (including loss of use), and shall include blanket contractual liability insuring the indemnity obligations under the Agreement, products and completed operations coverage (for a minimum of [***] ([***]) years after Final Completion or the Statute of Repose, whichever is greater), premises and operations coverage, independent contractors, medical expense, cross liabilities/separation of insureds, temporary storage locations, punitive damages (to the extent allowed by Applicable Law), sound location/subsidence, and fire, explosion, collapse, or underground damage. Such insurance shall not include any exclusions for X.C.& U., operations within 50 feet of a railroad, rigging, lifting or boom overload exposures. Such insurance shall not include the professional services exclusion. The aggregate limits shall apply separately to each annual policy period, except for the product and completed operation coverage, which shall be a Project term aggregate.

 

 

Limits:         US $ [***] each occurrence

 

US $ [***] general aggregate with dedicated limits to the Trains 1 and 2 Liquefaction Facility and Train 3 Liquefaction Facility

 

US $ [***] products and completed operations aggregate dedicated to the Trains 1 and 2 Liquefaction Facility and Train 3 Liquefaction Facility

 

 

To meet the foregoing commercial general liability requirements, Contractor shall, upon NTP, extend the commercial general liability coverage under the Trains 1 and 2 EPC Agreement to this Agreement. Such extension shall meet the requirements of this Attachment O and shall not relieve Contractor of any of its responsibilities to meet the requirements of Attachment O under the Trains 1 and 2 EPC Agreement, except that the overall cumulative limits for the Trains 1 and 2 Liquefaction Facility and the Train 3 Liquefaction Facility shall be as follows: U.S.$ [***] combined single limit each occurrence; U.S.$ [***] general aggregate, with such limits dedicated to the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility; and U.S.$ [***] products and completed operations aggregate, with such limits dedicated to the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility.

 

iii.    Commercial Automobile Insurance. This policy shall include coverage for all owned, hired, rented, and non-owned automobiles and equipment (if required to be licensed under the applicable vehicle code), and shall include contractual liability,

 

 

O-2

[***]

 

employees as insured, loading and unloading of automotive equipment, deletion of the fellow employee exclusion, uninsured/underinsured motorist and no-fault insurance provisions wherever applicable and liabilities for the death of or injury to any one person and liabilities for loss of or damage to property resulting from any one accident and otherwise comply with Applicable Law. If Hazardous Materials are to be hauled, then the policy shall contain an MCS-90 endorsement that evidences a policy limit of U.S. $[***].

 

Limit:         US $ [***] each occurrence

 

To meet the foregoing commercial automobile insurance requirements, Contractor shall, upon NTP, extend the commercial automobile insurance coverage under the Trains 1 and 2 EPC Agreement to this Agreement. Such extension shall meet the requirements of this Attachment O and shall not relieve Contractor of any of its responsibilities to meet the requirements of Attachment O under the Trains 1 and 2 EPC Agreement.

 

iv.    Umbrella or Excess Liability Insurance. This policy shall be written as a Contractor Controlled Insurance Policy (as defined in Section 1(D) below) on a “following form” basis and shall provide coverage in excess of the coverages required to be provided by Contractor for employers’ liability insurance, commercial general liability insurance and maritime employer’s liability insurance. The aggregate limit shall apply separately to each annual policy period, except for the product and completed operation coverage, which shall be a Project term aggregate.

 

 

Limits:         US $ [***] each occurrence dedicated to the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility

 

 

US $ [***] aggregate limit with dedicated limits to the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility

 

To meet the foregoing umbrella or excess liability insurance requirements, Contractor shall, upon NTP, extend the umbrella or excess liability coverage under the Trains 1 and 2 EPC Agreement to this Agreement. Such extension shall meet the requirements of this Attachment O and shall not relieve Contractor of any of its responsibilities to meet the requirements of Attachment O under the Trains 1 and 2 EPC Agreement, except that the overall cumulative limits for the Train 3 Liquefaction Facility and the Trains 1 and 2 Liquefaction Facility shall be as follows: U.S.$ [***] combined single limit each occurrence, dedicated to the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility; and U.S.$ [***] annual aggregate limit, with such limits dedicated to the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility.

 

v.    Comprehensive Aircraft Liability Insurance. If applicable, for all aircraft owned (including drones), operated, chartered, or brokered by or for Contractor or its Subcontractors or Sub-subcontractors in connection with the Work under the Agreement, Contractor shall carry or require the owner or operator of such aircraft to carry:

 

 

O-3

[***]

 

(a)    Aircraft Hull Insurance for agreed value, including breach of warranty, coverage to present value each aircraft, or breach of warranty amount, whichever is greater.

 

(b)    Aircraft Liability Insurance, including coverage for bodily injury liability, property damage liability and passenger liability, and including coverage for contractual liability for those liabilities assumed by Contractor, including liability for damage due to collision, pollution and removal of wreck. If aircraft will be used to perform lifts at the Site or any Project related site, a “slung cargo” endorsement must be included to cover the full replacement value of any equipment being lifted.

 

Limit:         US $ [***] per occurrence

 

(c)    The policy listed in clause (b) above shall provide a breach of warranty in favor of Owner Indemnified Parties.

 

To meet the foregoing comprehensive aircraft liability insurance requirements, Contractor shall, upon NTP, extend the comprehensive aircraft liability insurance coverage under the Trains 1 and 2 EPC Agreement to this Agreement. Such extension shall meet the requirements of this Attachment O and shall not relieve Contractor of any of its responsibilities to meet the requirements of Attachment O under the Trains 1 and 2 EPC Agreement.

 

 

vi.    Watercraft Insurance. If applicable, for all vessels owned, operated, chartered, or brokered by or for Contractor or any of its Subcontractors or Sub- subcontractors in connection with its Work under the Agreement, Contractor or its Subcontractors shall carry or require the owner or operator of such vessels to carry:

 

(a)    Hull Insurance covering all owned and/or bareboat chartered watercraft used in performing work and/or services related to this project. Such coverage shall be written on the American Institute Hull Clauses (6/2/1977) form, or equivalent, with the amount of coverage equal to the fair market value of the hull and machinery,

 

 

(b)    Protection and Indemnity Insurance to cover liabilities arising out of the ownership, operation and use of any vessel, including coverage for contractual liability for those liabilities assumed by Contractor herein, including sudden and accidental pollution liability, collision and tower’s liability, cargo Owner’s legal liability (to the extent applicable), and removal of wreck insofar as required by applicable statute. Any “as Owner” and “other than Owner” clauses are to be deleted.

 

Limit:         US $[***] per occurrence

 

O-4

[***]

 

(c)    Charterer’s Legal Liability Insurance to cover liabilities arising out of operation and use of any time or voyage chartered vessel including coverage for contractual liability for those liabilities assumed by Contractor herein.

 

Limit:         US $[***] per occurrence

 

(d)    Vessel Pollution Coverage shall be put in place for any owned and/or bareboat chartered vessels used by the Contractor in connection with this project, with limits of US $[***] per occurrence

 

To meet the foregoing watercraft insurance requirements, Contractor shall, upon NTP, extend the watercraft insurance coverage under the Trains 1 and 2 EPC Agreement to this Agreement. Such extension shall meet the requirements of this Attachment O and shall not relieve Contractor of any of its responsibilities to meet the requirements of Attachment O under the Trains 1 and 2 EPC Agreement.

 

vii.    Contractor’s Equipment Floater. Contractor shall maintain or self-insure, and shall cause all Subcontractors and Sub-subcontractors to maintain or self-insure, equipment insurance covering all materials, tools, equipment, and items (whether owned, rented, or borrowed) of Contractor, its Subcontractors and Sub-subcontractors that will not become part of the finished Work, including loss or damage during loading, unloading and while in transit. Such coverage shall be on an all-risk basis to the full value of the materials, tools, equipment, and items with any and all deductibles to be assumed by, for the account of, and at Contractor’s, Subcontractor’s, and Sub-subcontractor’s sole risk. Contractor waives, and shall cause all of its Subcontractors and Sub-subcontractors to waive, all rights against Owner Indemnified Parties for loss or damage to any Construction Equipment used in connection with the Project.

 

To meet the foregoing equipment floater insurance requirements, Contractor shall, upon NTP, extend the construction equipment floater insurance requirements under the Trains 1 and 2 EPC Agreement to this Agreement. Such extension shall meet the requirements of this Attachment O and shall not relieve Contractor of any of its responsibilities to meet the requirements of Attachment O under the Trains 1 and 2 EPC Agreement.

 

 

viii.    Contractor’s Pollution Liability Insurance. This policy shall be written as a Contractor Controlled Insurance Policy (as defined in Section 1(D) below) and provide coverage against claims for bodily injury (including bodily injury and death) and property damage (including loss of use) caused by or arising out of pollution incidents arising from the activities of Contractor or any of its Subcontractors or Sub-subcontractors at or near the Site, and shall include contractual liability per the terms and conditions of such policy. Coverage shall apply to sudden and gradual pollution events and mold and fungus damage, shall include all transportation-related events, and respond to cleanup both on and off the Site. Coverage shall include completed operations coverage for [***] ([***]) years after Final Completion.

 

 

O-5

[***]

 

(a)    Such insurance shall include by its terms or appropriate endorsements: completed operations limited cancellation clause; silt, and sediment as pollutants; any locations other than the Site or any other site where materials are received or stored; and discovery-triggered coverage for emergency response costs.

 

(b)    Coverage must be evidenced for on and off-site transportation which may result in a pollution incident/event and non-owned disposal site coverage (if applicable), and shall not include a lead-based paint or asbestos exclusion if such materials are included in the Equipment and materials supplied as part of the Work or are present at the Site or any Project-related site.

 

Limits:         US $ [***] each occurrence

 

US $ [***] in the aggregate with limits dedicated to the Project

 

To meet the foregoing contractor’s pollution liability insurance requirements, Contractor shall, upon NTP, extend the contractor’s pollution liability insurance under the Trains 1 and 2 EPC Agreement to this Agreement. Such extension shall meet the requirements of this Attachment O and shall not relieve Contractor of any of its responsibilities to meet the requirements of Attachment O under the Trains 1 and 2 EPC Agreement.

 

 

ix.    Marine Liability Insurance. If a dock or wharf is used to perform any part of the Work (or Work is otherwise performed on, over, or in close proximity to navigable waters), Contractor shall, or shall cause the relevant Subcontractor to, provide marine liability insurance covering liabilities arising from the use or operation of the dock or wharf in the care, custody or control of the Contractor or for Work performed on, over, or in close proximity to navigable waters. This requirement does not apply to transport providers if coverage is provided under a separate protection and indemnity policy. Coverage shall include the following: wharfinger’s/stevedores/MTOL with respect to operations at the construction dock, contractual liability (if not provided in the policy form, is to be provided by endorsement), sudden and accidental pollution, “in rem” liability and charterer’s legal liability and deletion of the care, custody and control exclusion.

 

 

Limits:         US $ [***] each occurrence

 

 

US $ [***] general aggregate

 

US $ [***] products and completed operations aggregate

 

To meet the foregoing equipment marine liability insurance requirements, Contractor shall, upon NTP, extend the construction marine liability insurance under the Trains 1 and 2 EPC Agreement to this Agreement. Such extension shall meet the requirements of this Attachment O and shall not relieve Contractor of any of its responsibilities to meet the requirements of Attachment O under the Trains 1 and 2 EPC Agreement.

 

 

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x.    Builder's Risk Insurance. Property damage insurance on an "all risk" basis insuring Contractor, Owner and Lender, as their interests may appear, including coverage against loss or damage from the perils of earth movement (including earthquake, landslide, subsidence and volcanic eruption), Windstorms, water damage, startup and testing, strike, riot, civil commotion, malicious damage, and terrorism (such terrorism policy may be obtained under a separate policy). To meet the builder’s risk insurance requirements under this Attachment O, Contractor shall, upon NTP, extend the builder’s risk insurance coverage under the Trains 1 and 2 EPC Agreement to this Agreement. Such extension shall meet the requirements of this Attachment O and shall not relieve Contractor of any of its responsibilities to meet the requirements of Attachment O under the Trains 1 and 2 EPC Agreement, except that (unless expressly stated otherwise in this Section) any limits, sublimits, deductibles, payments or other values stated herein shall not be doubled or otherwise increased as a result of the extension of the builder’s risk insurance to this Agreement.

 

 

	 	
			(a)

				
			Property Covered: The insurance policy shall provide coverage for

			

(i) the buildings, structures, boilers, machinery, Equipment, facilities, fixtures, supplies, fuel, and other properties constituting a part of The Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility, (ii) free issue items used in connection with The Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility, (iii) the inventory of spare parts to be included in The Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility, (iv) property of others in the care, custody or control of Contractor or Owner in connection with the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility, (v) all preliminary works, temporary works and interconnection works, (vi) foundations and other property below the surface of the ground, and (vii) electronic equipment and media.

 

(b)    Additional Coverages: The insurance policy shall insure (i) the cost of preventive measures to reduce or prevent a loss (sue & labor) in an amount not less than U.S.$ [***], (ii) operational and performance testing for a period not less than [***] ([***]) Days, (iii) unless otherwise covered under the marine cargo policy, inland transit with sub-limits sufficient to insure the largest single shipment to or from the Site from anywhere worldwide, (iv) expediting expenses (defined as extraordinary expenses incurred after an insured loss to make temporary repairs and expedite the permanent repair of the damaged property) in an amount not less than U.S.$ [***], which such amount shall be specific to Section 1 of the Builder’s Risk policy, (v) off-Site storage with sub-limits sufficient to insure the full replacement value of any property or Equipment not stored on the Site, and (vi) the removal of debris with a sub-limit not less than [***] percent ([***]%) of the loss amount, but subject to a minimum of U.S.$ [***].

 

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(c)    Special Clauses: The insurance policy shall include (i) a seventy- two (72) hour flood/storm/earthquake clause, (ii) unintentional errors and omissions clause, (iii) a 50/50 clause, (iv) an other insurance clause making this insurance primary over any other insurance, (v) a clause stating that the policy shall not be subject to cancellation by the insurer except for non- payment of premium and (vi) an extension clause allowing the policy period to be extended for up to [***] ([***]) months for an additional premium and terms and conditions to be agreed.

 

	 	
			(d)

				
			Prohibited Exclusions: The insurance policy shall not contain any

			

(i) coinsurance provisions, (ii) exclusion for loss or damage resulting from freezing and mechanical breakdown, (iii) exclusion for loss or damage covered under any guarantee or warranty arising out of an insured peril,

(iv) exclusion for resultant damage caused by ordinary wear and tear, gradual deterioration, normal subsidence, settling, cracking, expansion or contraction and faulty workmanship, design or materials no more restrictive than the LEG 2/06.

 

(e)    Sum Insured: The insurance policy shall (i) be on a replacement cost form, with no periodic reporting requirements with the exception of material changes in the sum insured, (ii) upon NTP, extend the builder’s risk insurance under the Trains 1 and 2 EPC Agreement to this Agreement, insuring Trains 1 and 2 in the amount required under the Trains 1 and 2 EPC Agreement and insuring Train 3 for an amount no less than an amount to be determined based upon an estimated maximum loss study for the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility performed by a reputable and experienced firm reasonably satisfactory to Contractor, Owner and Owner’s Lenders, with such estimated maximum loss approved by the Parties within such time, (iii) value losses at replacement cost, without deduction for physical depreciation or obsolescence including custom duties, Taxes and fees, (v) insure loss or damage from earth movement without a sub-limit, (vi) upon NTP, extend the insurance for property loss or damage from Windstorm and water damage (including flood and storm surge) under Trains 1 and 2 EPC Agreement in the amount required under the Trains 1 and 2 EPC Agreement and insuring Train 3 with a sub-limit of not less than U.S.$ [***] per occurrence and in the aggregate or other such greater sum as determined by Owner, subject to commercial availability, and such sublimit shall apply to the combined loss covered under Section 1.A.x Builder’s Risk and Section 1.A.xi Builder’s Risk Delayed Startup, and (viii) upon NTP, extend the insurance for loss or damage from strikes, riots and civil commotion under the Trains 1 and 2 EPC Agreement, insuring the combined Train 1, Train 2 and Train 3 with a sub-limit not less than U.S.$ [***] for loss or damage from strikes, riots and civil commotion.

 

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(f)    Deductible: The insurance policy covering the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility shall have no deductible greater than U.S.$ [***] per occurrence; provided, however, (i) for Windstorms and water damage (including flood and storm surge), the deductible shall not be greater than [***] percent ([***]%) of values at risk for the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility, subject to a minimum deductible of U.S.$ [***] and a maximum deductible of U.S.$ [***] for Windstorms and water damage for the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility, and (ii) for wet works, the deductible shall not be greater than U.S.$ [***] for the Train

3 Liquefaction Facility, (iii) for claims arising from testing and commissioning, the deductible shall not be greater than U.S.$ [***], (iv) for claims where defects exclusion LEG2/06 applies, the deductible shall not be greater than U.S.$ [***] and (v) for claims arising from tank fill the deductible shall not be greater than U.S.$ [***].

 

(g)    Payment of Insurance Proceeds: The property damage proceeds under the builder’s risk policy shall be primary to any potential payment under the Builder’s Risk Delayed Startup Insurance (Section 1.A.xi) and be paid as follows with respect to any one occurrence:

 

 

1)    the first [***] U.S. Dollars (U.S.$ [***]) of amounts paid under the builder’s risk insurance policy for property damage to the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility shall be paid by the insurance carrier directly to Contractor, which shall be used by Contractor in connection with the repair, replacement or other necessary work in connection with the loss or damage to the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility; and

 

 

2)    any amounts in excess of [***] U.S. Dollars (U.S.$ [***]) for property damage to the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility shall (x) be paid by the insurance carrier directly to the Collateral Agent (or if there is no Collateral Agent, a mutually agreed upon escrow agent), and Owner shall pay such insurance proceeds to Contractor for the completion (or, if agreed by the Lenders, Collateral Agent or escrow agent, the planned completion) by Contractor of repairs, replacement and other necessary work in accordance with the restoration plan (unless such plan is not required by the Lenders or Collateral Agent) prepared by Contractor and approved by Owner, and (y), provided that the conditions set forth in this clause (x) have been satisfied, be paid by Owner to Contractor in accordance with the following schedule: (a) for any interim payment(s) or final settlement payment of the builder’s risk proceeds received by the Collateral Agent (or escrow agent) for the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility, Owner shall have [***] ([***]) Business Days after the Collateral Agent’s (or escrow

 

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agent’s) receipt of all proceeds to pay Contractor; (b) however, for any interim payment(s) or final settlement payment received by the Collateral Agent (or escrow agent) for the Train 3 Liquefaction Facility, Owner shall not have more than [***] ([***]) Days to pay any portion of the builder’s risk proceeds received to date. Notwithstanding the foregoing, under no circumstances shall Owner be required to pay any builder’s risk insurance proceeds to Contractor if Owner or Lender elects not to repair or rebuild the damaged aspect of the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility, except to the extent Contractor has incurred costs in excess of the [***] U.S. Dollars (U.S.$ [***]) of the builder’s risk proceeds paid directly to Contractor for safety, protection and salvage for the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility. For the avoidance of doubt, if there is a delay in the approval of the restoration plan beyond the times specified in Section 1.A.x(g)2)(y) through no fault of Contractor, and Contractor satisfies the conditions in this Section 1.A.x(g)2) for the payment of builder’s risk proceeds received by the Collateral Agent (or escrow agent), then Contractor shall not be required to effect repairs or other restoration of the Work affected by the insured occurrence for any costs of repairs or restoration exceeding the sum of the deductible under such insurance and any amounts previously paid to Contractor under such insurance and Contractor shall be entitled to relief to the extent permitted under Section 6.2A.10 of the Agreement “Collateral Agent” means the collateral agent under the credit agreement with Owner for the financing of the Project.

 

xi.    Builder’s Risk Delayed Startup Insurance. Delayed startup coverage insuring Owner and Lender, as their interests may appear, covering the Owner’s debt servicing expenses, fixed costs, and / or gross profit as determined by Owner as a result of any loss or damage insured by Section 1.A.x above resulting in a delay in Substantial Completion beyond the applicable Guaranteed Substantial Completion Date in an amount to be determined by Owner, subject to commercial availability at a reasonable cost. Upon NTP, Contractor shall extend the builder’s risk delayed startup insurance coverage under the Trains 1 and 2 EPC Agreement to this Agreement, insuring Train 1 and Train 2 for the amount required under the Trains 1 and 2 EPC Agreement and Train 3 in an amount to be determined by Owner, subject to such amount to be determined by Owner. This coverage shall be on an actual loss-sustained basis. Any proceeds from delay in startup insurance, with the exception of payments for increased cost of working costs incurred by the Contractor, shall be payable solely to the Lender or its designee and shall not in any way reduce or relieve Contractor of any of its obligation or liabilities under the Agreement. The increased cost of working costs shall not erode the delayed startup limit and is paid in addition to the delayed startup proceeds. Any claims under the builder’s risk delayed startup insurance shall be handled and adjusted by Owner, with cooperation by Contractor.

 

(a)    Such insurance shall (a) have a deductible of not greater than [***] ([***]) Days aggregate for all occurrences, except [***] ([***]) Days in the

 

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aggregate in the respect of Windstorms and water damage (including flood and storm surge), (b) include an interim payments clause allowing for the monthly payment of a claim pending final determination of the full claim amount, (c) cover loss sustained when access to the Site is prevented due to an insured peril at premises in the vicinity of the Site for a period not less than [***] ([***]) Days, (d) cover loss sustained due to the action of a public authority preventing access to the Site due to imminent or actual loss or destruction arising from an insured peril at premises in the vicinity of the Site for a period not less than [***] ([***]) Days, (e) insure loss caused by FLEXA named perils to finished Equipment (including machinery) while awaiting shipment at the premises of a Subcontractor or Sub-subcontractor,

(f) not contain any form of a coinsurance provision or include a waiver of such provision, and (g) cover loss sustained due to the accidental interruption or failure, caused by an insured peril of supplies of electricity, gas, sewers, water or telecommunication up to the terminal point of the utility supplier with the Site for a period not less than [***] ([***]) Days.

 

(b)    Owner may communicate all financial information directly to Contractor’s insurance broker. Contractor shall not be entitled to receive any such information.

 

 

xii.    Marine Cargo Insurance. Cargo insurance insuring Contractor, Owner and Lender, as their interests may appear, on a “warehouse to warehouse” basis including land, air and marine transit insuring “all risks” of loss or damage on a C.I.F. basis plus [***] percent ([***]%) from the time the goods are in the process of being loaded for transit until they are finally delivered to the Site including shipment deviation, delay, forced discharge, re-shipment and transshipment. Such insurance shall (a) include coverage for theft, pilferage, non-delivery, charges of general average sacrifice or contribution, salvage expenses, temporary storage in due course of transit, consolidation, repackaging, refused and returned shipments, debris removal, (b) contain a replacement by air extension clause, a 50/50 clause, a difference in conditions for C.I.F. shipments, an errors and omissions clause, an import duty clause and a non-vitiation clause (but subject to a paramount warranty for surveys of critical items), (c) include an insufficiency of packing clause, (d) provide coverage for sue and labor in an amount not less than $[***] and (e) insure for the replacement value of the largest single shipment on a C.I.F. basis plus [***] percent ([***]%). To meet the marine cargo insurance requirements under this Attachment O, Contractor shall, upon NTP, extend the marine cargo insurance coverage under the Trains 1 and 2 EPC Agreement to this Agreement. Such extension shall meet the requirements of this Attachment O and shall not relieve Contractor of any of its responsibilities to meet the requirements of Attachment O under the Trains 1 and 2 EPC Agreement, except that (unless expressly stated otherwise in this Section) any limits, sublimits, deductibles, payments or other values stated herein shall not be doubled or otherwise increased as a result of the extension of the marine cargo insurance to this Agreement.

 

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(a)    The physical damage proceeds under the marine cargo policy shall be paid as follows with respect to any one occurrence:

 

1)    the first [***] U.S. Dollars (U.S.$ [***]) of amounts paid under the marine cargo insurance policy for physical damage to The Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility (i.e., equipment, materials, machinery, spares, etc.) shall be paid by the insurance carrier directly to Contractor, which shall be used by Contractor in connection with the repair, replacement or other necessary work in connection with the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility; and

 

2)    any amounts in excess of [***] U.S. Dollars (U.S.$ [***]) for physical damage to the interests insured(i.e., equipment, materials, machinery, spares, etc.) shall be paid by the insurance carrier directly to the Collateral Agent (or if there is no Collateral Agent, a mutually agreed upon escrow agent), and Owner shall pay such insurance proceeds to Contractor, for the completion (or, if agreed by the Lenders, Collateral Agent or escrow agent, the planned completion) by Contractor of repairs, replacement and other necessary work in accordance with the restoration plan (unless such plan is not required by the Lenders or Collateral Agent) prepared by Contractor and approved by Owner, and (y), provided that the conditions set forth in this clause (x) have been satisfied, be paid by Owner to Contractor in accordance with the following schedule: (a) for any interim payment(s) or final settlement payment of the marine cargo proceeds received by the Collateral Agent (or escrow agent) for the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility, Owner shall have [***] ([***]) Business Days after the Collateral Agent’s (or escrow agent’s) receipt of all proceeds to pay Contractor; (b) however, for any interim payment(s) or final settlement payment received by the Collateral Agent (or escrow agent) for the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility, Owner shall not have more than [***] ([***]) Days to pay any portion of the marine cargo proceeds received to date. Notwithstanding the foregoing, under no circumstances shall Owner be required to pay any marine cargo insurance proceeds to Contractor if Owner or Lender elects not to repair or rebuild the damaged insured interests (i.e., equipment, materials, machinery, spares, etc.), except to the extent Contractor has incurred costs in excess of the [***] U.S. Dollars (U.S.$ [***]) of the marine cargo proceeds paid directly to Contractor for safety, protection and salvage for the insured interests (i.e. equipment, materials, machinery, spares, etc.). For the avoidance of doubt, if there is a delay in the approval of the restoration plan beyond the times specified in Section 1.A.xii(a)2)(y) through no fault of Contractor, and Contractor satisfies the conditions in this Section 1.A.x(g)2)for the payment of marine cargo proceeds received by the Collateral Agent (or escrow agent), then

 

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Contractor shall not be required to effect repairs or other restoration of the Work affected by the insured occurrence for any costs of repairs or restoration exceeding the sum of the deductible under such insurance and any amounts previously paid to Contractor under such insurance and shall be entitled to relief to the extent permitted under Section 6.2A. of the Agreement.

 

xiii.    Marine Cargo Delayed Startup Insurance. Delayed startup insurance insuring Owner and Lender, as their interests may appear, for the Owner’s debt servicing expenses, fixed costs, and / or gross profit as determined by Owner due to a delay in achievement of Substantial Completion beyond the Guaranteed Substantial Completion Date arising out of an event insured by the marine cargo insurance. Such insurance shall

(a) cover the actual loss sustained due to blockage/closure of specified waterways, (b) include an interim payments clause allowing for the monthly payment of a claim where liability is admitted, pending final determination of the full claim amount and (c) cover delay caused by loss, breakdown or damage to the hull, machinery or equipment of the vessel or aircraft on which the insured property is being transported, resulting in a delay in achievement of Substantial Completion beyond the applicable Guaranteed Substantial Completion Date in an amount to be determined by Owner and Lender but subject to commercial availability at a reasonable cost. Prior to the shipment of any Equipment under this Agreement but in any event no later than NTP, Contractor shall extend the marine cargo delayed startup insurance coverage under the Trains 1 and 2 EPC Agreement to this Agreement, insuring Train 3 for an amount to be determined by Owner and Lender’s insurance advisor and subject to commercial availability at a reasonable cost. Such insurance shall have a deductible of not greater than [***] ([***]) Days aggregate for all occurrences during the policy period. Any proceeds from delay in startup insurance shall be payable solely to Lender or its designee and shall not in any way reduce or relieve Contractor of any of its obligation or liabilities under the Agreement. Any claims under the marine cargo delayed startup insurance shall be handled and adjusted by Owner, with the cooperation by Contractor. Owner may communicate all financial information directly to Contractor’s insurance broker. Contractor shall not be entitled to receive any such information.

 

 

B.    Insurance Companies. All insurance required to be obtained by Contractor pursuant to this Agreement shall be from an insurer or insurers permitted to conduct business as required by Applicable Law and shall be rated either by Best’s Insurance Guide Ratings (or equivalent) as an “A-” or better with a financial category of “VIII” or better, or by Standard and Poor’s (or equivalent) as a “A-”.

 

C.    Subcontractor and Sub-Subcontractor’s Insurance Requirements. If Contractor subcontracts any part of the Work, Contractor shall obtain or require its Subcontractors and Sub- subcontractors to maintain similar insurance coverage and amounts that Contractor is required to maintain pursuant to the Agreement, as applicable and appropriate to the work of such Subcontractor and Sub-subcontractor sufficient to cover risks inherent in the work of such Subcontractor or Sub-subcontractor. Upon Owner’s written request, Contractor shall promptly

 

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furnish to Owner certificates of insurance evidencing coverage for each Subcontractor and Sub- subcontractor. Any deficiency in the coverage, policy limits, or endorsements of said Subcontractor or Sub-subcontractor insurance will be the sole responsibility of Contractor.

 

D.    Additional Insured. All Project-specific insurance policies provided by Contractor pursuant to the Agreement shall: (i) name Owner Indemnified Parties as Additional Named Insureds; and (ii) name Port Indemnified Parties as Additional Insureds to the extent of Contractor’s indemnity obligations set forth in the Agreement. Project-specific insurance means the insurances dedicated to the Project, which are commercial general liability, umbrella or excess liability, Contractor’s pollution liability insurance, builder’s risk insurance and marine cargo insurance (each a “Contractor Controlled Insurance Policy”). Owner Indemnified Parties shall be a Named Insured under the builder’s risk delayed startup insurance and the marine cargo delayed startup insurance. Except for Contractor Controlled Insurance Policies and the builder’s risk delayed startup insurance and marine cargo delayed startup insurance, all insurance policies provided by Contractor or any of its Subcontractors or Sub-subcontractors pursuant to the Agreement (except for Workers’ Compensation, Employer’s Liability and Contractor’s Equipment Floater) shall include Owner Indemnified Parties and Port Indemnified Parties as Additional Insureds (utilizing to the extent commercially available CG2010 1001 and CG2037 1001) to the extent of Contractor’s indemnity obligations in the Agreement or the respective Subcontractor’s or Sub-subcontractor’s indemnity obligations set forth in their respective Subcontracts.

 

 

E.    Waiver of Subrogation. Unless prohibited by Applicable Law, all policies of insurance provided by Contractor or any of its Subcontractors or Sub-subcontractors pursuant to this Agreement shall include clauses providing that each underwriter shall waive its rights of recovery, under subrogation or otherwise, against Owner Indemnified Parties and Port Indemnified Parties.

 

 

F.    Contractor’s Insurance is Primary. Except for the insurance provided by Owner under this Attachment O, the insurance policies of Contractor and its Subcontractors or Sub- subcontractors shall state that such coverage is primary and non-contributing to any other insurance available to or provided by Owner Indemnified Parties and Port Indemnified Parties.

 

 

G.    In Rem. The insurance policies of Contractor and any of its Subcontractors or Sub- subcontractors shall, where applicable, contain a clause providing that a claim “in rem” shall be treated as a claim against the respective Contractor, Subcontractor, Sub-subcontractor or Owner Indemnified Parties, as applicable.

 

 

H.    Severability. The insurance policies of Contractor and of its Subcontractors and Sub-subcontractors shall, where applicable, contain a severability of interest clause or a standard cross liability endorsement.

 

I.    Non-Vitiation. The insurance policies of Contractor and of its Subcontractors and Sub-subcontractors shall provide a “Multiple Insured Clause” or “Separation of Insureds Clause” which includes language substantially similar to the following:

 

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i.    It is noted and agreed that coverage under the aforementioned policies shall apply in the same manner and to the same extent as if individual policies had been issued to each insured party, provided that the total liability of the insurers to all the insured parties collectively shall not exceed the sums insured and limits of indemnity stated in such policy.

 

ii.    It is further understood and agreed that, under such policy’s terms and conditions, the insurers may be entitled to avoid liability to the insured parties in circumstances of fraud, misrepresentation, non-disclosure or breach of any warranty or condition of said policy or committed by an insured party, which shall herein be referred to in this section as a “Vitiating Act”.

 

iii.    It is however agreed, with the exception of the Marine Cargo policy (Section 1.A.xii above) subject to a paramount warranty for surveys of critical items, that a Vitiating Act committed by one insured party shall not prejudice the right to indemnity of any other insured party who has an insurable interest and who has not committed a Vitiating Act by including language such as that the policy shall treat each Named Insured as if they were the only Named Insured and as to any claim separately to each insured as if they were the only insured.

 

J.    Copy of Policy. At Owner’s written request, Contractor shall promptly provide Owner valid copies of each of the Contractor Controlled Insurance Policies, the builder’s risk delayed startup insurance policy and the marine cargo delayed startup insurance policy procured by Contractor pursuant to this Attachment O, or if such policies have not yet been received by Contractor, then with binders of insurance, duly executed by the insurance agent, broker or underwriter fully describing the insurance coverages affected.

 

K.    Subject to Change. All insurance requirements for this Agreement are subject to change at the reasonable discretion of Owner, provided the insurances required to be procured by Contractor to comply with such changes are available in the market. Such changed insurance requirements shall be documented pursuant to a Change Order pursuant to this Agreement to reimbursement of the costs associated with such changes, without any markup. Such change shall include any requirements of Lenders, if applicable.

 

 

L.    Limitation of Liability. Types and limits of insurance shall not in any way limit any of Contractor’s obligations, responsibilities or liabilities under this Agreement.

 

 

M.    Jurisdiction. All insurance policies shall include coverage for jurisdiction within the United States of America and shall comply with Applicable Laws. To the extent Work is performed outside of the United States of America, Contractor shall, or cause it Subcontractors to maintain coverage for the applicable jurisdiction and comply with Applicable Laws.

 

N.    Miscellaneous. Contractor and its Subcontractors and Sub-subcontractors shall do nothing to void or make voidable any of the insurance policies purchased and maintained by Contractor or its Subcontractors or Sub-subcontractors hereunder. Contractor shall promptly give Owner notice in writing of the occurrence of any casualty or significant injury that may give rise to a claim and arising out of or relating to the performance of the Work; provided, however, in no

 

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event shall such notice be more than [***] ([***]) Days after the occurrence of such casualty on injury. In addition, Contractor shall ensure that Owner is kept fully informed of any subsequent action and developments concerning the same, and assist in the investigation of any such casualty, claim, event, circumstance or occurrence. The insurance policies required under this Section 1 shall include a statement that the insurance coverage shall not be canceled, restricted or reduced without at least [***] ([***]) Days prior written notice by Contractor to Owner.

 

O.    Instructions for Certificate of Insurance. Contractor’s certificate of insurance form, completed by Contractor’s insurance agent, broker or underwriter, shall reflect the recognition of additional named insured status, additional insured status, waivers of subrogation, and primary insurance requirements contained in this Attachment O.

 

P.    Certificate of Insurance Requirements. Contractor shall furnish to Owner, (a) no later than [***] ([***]) Days prior to the commencement of Work at the Site and (b) any other time upon Owner’s request, certificates of insurance, on the most recent edition of the ACORD form, or equivalent, reflecting all of the insurance required of Contractor under this Agreement; provided that Contractor shall not be required to deliver certificates of insurance for any insurance provided by any Subcontractors or Sub-subcontractors unless requested in writing by Owner. Neither Owner’s review nor failure to review such certificates shall constitute acquiescence thereto or be deemed to waive or diminish Owner’s rights under the Agreement. All certificates of insurance and associated notices and correspondence concerning such insurance shall be addressed to the contact information listed in the Agreement for notices, plus the following: Donna McGinnis, at dmcginnis@next-decade.com.

 

 

Q.    Policy Form and Approval. Except as specifically set forth in this Section 1 of this Attachment O, all policies of insurance required to be maintained by Contractor and its Subcontractors and Sub-subcontractors shall be written on reasonable and customary terms, conditions and exclusions for facilities of similar size and scope as Train 3. The commercial general liability insurance, Contractor’s pollution liability insurance, umbrella or excess liability insurance, builder’s risk insurance, marine cargo insurance, builder’s risk delayed start up insurance, marine cargo delayed startup insurance and any other Contractor Controlled Insurance Policy required to be provided by Contractor shall be subject to Owner’s written approval, not to be unreasonably withheld.

 

 

R.    Deductibles. Contractor shall bear the costs of all deductibles under insurances provided by Contractor under this Agreement, and Contractor or its Subcontractors or Sub- subcontractors shall bear the cost of all deductibles under insurances provided by Contractor’s Subcontractors or Sub-subcontractors under this Agreement.

 

S.    Owner’s Right to Remedy. In addition to the rights under Sections 9.1D and 9.1E of the Agreement, if Contractor fails to provide or maintain insurance as required herein, including any insurance required to cover its Subcontractors or Sub-subcontractors, Owner shall have the right but not the obligation to purchase such insurance. In such event, the Contract Price shall be reduced by the amount paid for such insurance.

 

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			2.

				
			Owner’s Insurance.

			

 

A.    Types and Limits of Insurance. Owner shall, at its own cost and expense, procure and maintain (or require to be procured and maintained) in full force and effect at all times for the Train 3 Liquefaction Facility (to the extent described below), the following insurance:

 

i.    Property Insurance. After Substantial Completion of Train 3 and until the expiration of the Defect Correction Period for such Train, Owner shall obtain property insurance and such insurance shall contain a waiver of subrogation in favor of Contractor and its Subcontractors and Sub-subcontractors (except for Vitiating Acts) during the Defect Correction Period for such Train.

 

ii.    Stevedores/Wharfingers Liability. On or prior to [***] ([***]) Days prior to RLFC, Owner shall extend the stevedores/wharfingers liability under the Trains 1 and 2 EPC Agreement to this Agreement, insuring Train 3 consistent with prudent practices associated with the operation of the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility and its dock facilities with minimum limits of US$[***] per occurrence and in the aggregate (which such limits may be met using a stevedores/wharfingers excess liability policy), with such US$[***] covering the Train 3 Liquefaction Facility and the Trains 1 and Liquefaction Facility. Such policy shall cover liability.

 

 

(a)    As a wharfinger, for physical loss of or damage to LNG Tanker, the property of others while the LNG Tankers are in the custody of Owner at the landing and mooring facilities of the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility;

 

(b)    As a stevedore, for physical loss of or damage to LNG Tankers, the property of others arising from loading or unloading operations performed by or for Owner or Owner Indemnified Parties at the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility; and

 

(c)    For physical loss of or damage to property of others arising out of loading, unloading, docking and undocking, including LNG Tankers approaching, at and departing from the landing and mooring facilities of the Train 3 Liquefaction Facility and Trains 1 and 2 Liquefaction Facility or for loss of life or personal injury, if arising only out of those operations covered by these Sections 2.A.ii(a), 2.A.ii(b) and 2.A.ii(c).

 

Owner shall procure for Contractor, its Subcontractors and its Sub-subcontractors an additional insured endorsement under this policy. A waiver of subrogation will be provided in the policy in favor of Contractor, Subcontractors and its Sub-subcontractors. The additional insured endorsement shall be in effect, at a minimum, prior to RLFC.

 

B.    Limitation of Insurance. The insurance provided by Owner shall not in any way limit or reduce Contractor’s liability to Owner under the Agreement.

 

O-17

[***]

 

C.    Claims. Contractor shall promptly give Owner notice in writing of the occurrence of any casualty or injury that may give rise to a significant claim under an insurance policy required to be provided hereunder; provided, however, in no event shall such notice be more than [***] ([***]) Days after Contractor has received notice of a claim or intent to file a claim. In addition, Contractor shall ensure that Owner is kept fully informed of any subsequent action and developments concerning the same, assist in the investigation of any such casualty or injury, and assist in the preparation and negotiation of any such claims.

 

D.    Disclosure to Insurers. Contractor shall cooperate with Owner’s insurers and provide all reasonable information requested by such insurers until the expiration of the Defect Correction Period.

 

E.    Miscellaneous. Contractor and its Subcontractors and Sub-subcontractors shall do nothing to void or make voidable any of the insurance policies purchased and maintained by Owner hereunder. All insurance required to be obtained by Owner pursuant to the Agreement shall be from an insurer or insurers permitted to conduct business as required by Applicable Law and shall either (1) be acceptable to Lender’s collateral agent or (2) be rated with either (a) an “A-” or better and a financial category of “VIII” or better by Best’s Insurance Guide Ratings (or equivalent) or

(b) a “A-” or better by Standard and Poor’s (or equivalent).

 

Any time after issuance of NTP, at Contractor’s written request, Owner shall deliver to Contractor certificates of insurance reflecting all of the insurance required of Owner under this Agreement. Types and limits of insurance provided by Owner shall not in any way limit any of Owner’s or Contractor’s obligations, responsibilities or liabilities under the Agreement.

 

 

 

O-18

[***]

 

ATTACHMENT P

 

CONTRACTOR PERMITS

 

 

 

[***]

 

 

45289020v1

 

P-1

 

 

ATTACHMENT Q

 

OWNER PERMITS

 

 

[***]

 

 

45289021v1

 

Q-1

 

 

ATTACHMENT R

 

FORM OF IRREVOCABLE STANDBY LETTER OF CREDIT

 

[To be issued on letterhead of Issuing Bank]

 

 

 IRREVOCABLE STANDBY LETTER OF CREDIT NO.          

 

 

DATE:       ,  20         

AMOUNT OF: U.S.$ [                           ]

 

 

ISSUING BANK:

 

[INSERT ISSUING BANK’S NAME AND ADDRESS]

 

BENEFICIARY:         APPLICANT AND ACCOUNT PARTY:

 

 

	
			RIO GRANDE LNG, LLC

			1000 LOUISIANA STREET

			39TH FLOOR

			HOUSTON, TEXAS 77002

			FACSIMILE: [         ]

			ATTN: [         ]

				
			BECHTEL ENERGY INC.

			3000 POST OAK BOULEVARD

			HOUSTON, TEXAS 77056

			FACSIMILE: [         ]

			ATTN: [         ]

			

 

WE HEREBY ISSUE OUR IRREVOCABLE STANDBY LETTER OF CREDIT NO.           (THIS “LETTER OF CREDIT”) IN FAVOR OF RIO GRANDE LNG, LLC, AS BENEFICIARY, FOR AN INITIAL AMOUNT OF [         DOLLARS (U.S.$         ) (e.g. INSERT AMOUNT EQUAL TO [***] PERCENT ([***]%) OF THE CONTRACT PRICE UNDER THE AGREEMENT (AS DEFINED BELOW))] (THE “STATED AMOUNT”) AT THE REQUEST AND FOR THE ACCOUNT OF BECHTEL ENERGY INC., AS APPLICANT.

 

 

WE ARE INFORMED THAT THIS LETTER OF CREDIT IS ISSUED ON BEHALF OF THE APPLICANT TO SUPPORT APPLICANT’S OBLIGATIONS UNDER THAT CERTAIN AMENDED AND RESTATED FIXED PRICE TURNKEY AGREEMENT FOR THE ENGINEERING, PROCUREMENT AND CONSTRUCTION OF TRAIN 3 OF THE RIO GRANDE NATURAL GAS LIQUEFACTION FACILITY (“PROJECT”), DATED AS OF SEPTEMBER 15, 2022, BY AND BETWEEN APPLICANT AND BENEFICIARY (AS AMENDED, RESTATED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME, THE “AGREEMENT”). “CONTRACTOR” AS USED HEREIN MEANS BECHTEL ENERGY INC. AND ITS PERMITTED SUCCESSORS AND ASSIGNS UNDER THE AGREEMENT. “BENEFICIARY” AS USED HEREIN MEANS RIO GRANDE LNG, LLC AND ITS PERMITTED SUCCESSORS AND ASSIGNS UNDER THE AGREEMENT.

 

 

FUNDS UNDER THIS LETTER OF CREDIT ARE AVAILABLE BY PAYMENT IN U.S. DOLLARS IN IMMEDIATELY AVAILABLE FUNDS AGAINST THE PRESENTATION OF YOUR WRITTEN DEMAND TO [INSERT ISSUING BANK’S NAME] (THE “ISSUING BANK”) AT [INSERT ISSUING BANK’S ADDRESS AND FACSIMILE NUMBER], IN PERSON, IN THE FORM OF ANNEX I ATTACHED HERETO APPROPRIATELY COMPLETED AND ACCOMPANIED BY A DRAWING CERTIFICATE DULY SIGNED BY BENEFICIARY IN THE FORM OF ANNEX II OR ANNEX VII ATTACHED HERETO APPROPRIATELY COMPLETED.

 

MULTIPLE AND PARTIAL DRAWINGS ARE PERMITTED. THE STATED AMOUNT SHALL BE AUTOMATICALLY AND PERMANENTLY REDUCED BY THE AMOUNT OF ANY DRAWING RECEIVED BY BENEFICIARY PURSUANT TO THIS LETTER OF CREDIT. ALL BANKING CHARGES UNDER THIS LETTER OF CREDIT ARE FOR ACCOUNT OF THE APPLICANT.

 

THIS LETTER OF CREDIT IS TRANSFERABLE IN ITS ENTIRETY AND NOT IN PART TO A PERMITTED

 

45289022v1

 

R-1

 

 

ASSIGNEE AS SPECIFIED IN THE AGREEMENT. BENEFICIARY’S DRAWING RIGHTS UNDER THIS LETTER OF CREDIT SHALL BE TRANSFERRED IN THEIR ENTIRETY BY PRESENTATION TO ISSUING BANK (AT THE ABOVE-STATED PLACE FOR PRESENTATION) OF A DEMAND FOR TRANSFER, SUBSTANTIALLY IN THE FORM OF ANNEX III ATTACHED HERETO APPROPRIATELY COMPLETED. UPON PRESENTATION OF A COMPLYING DEMAND FOR TRANSFER, THE PERSON IDENTIFIED AS THE TRANSFEREE SHALL BECOME THE BENEFICIARY, WHOSE NAME AND ADDRESS SHALL BE SUBSTITUTED FOR THAT OF THE TRANSFEROR ON ANY DEMANDS, REQUESTS, OR CONSENTS THEN OR THEREAFTER REQUIRED OR PERMITTED TO BE MADE BY BENEFICIARY. SUBJECT TO COMPLIANCE WITH THE NEXT SENTENCE, WE SHALL ACKNOWLEDGE AND SHALL EFFECT THE DEMANDED TRANSFER AND SHALL ISSUE OUR ADVICE OF TRANSFER TO THE TRANSFEROR AND TRANSFEREE. NOTWITHSTANDING THE FOREGOING, THIS LETTER OF CREDIT MAY NOT BE TRANSFERRED TO ANY PERSON IF SUCH TRANSFER TO, OR DRAWING UNDER THIS LETTER OF CREDIT BY, SUCH PERSON WOULD BE PROHIBITED OR BLOCKED UNDER ANY U.S. EXECUTIVE ORDER, LAW OR ANY RULE OR REGULATION OF THE OFFICE OF FOREIGN ASSETS CONTROL OF THE

 

U.S. TREASURY DEPARTMENT OR THE U.S. COMMERCE DEPARTMENT, AND ANY ATTEMPTED TRANSFER WHICH VIOLATES THIS PROVISION SHALL BE NULL AND VOID.

 

THE STATED AMOUNT OF THIS LETTER OF CREDIT SHALL DECREASE TO AN AGGREGATE AMOUNT OF [          DOLLARS (U.S.$         ) (e.g. INSERT AMOUNT EQUAL TO [***] PERCENT ([***]%) OF THE CONTRACT PRICE)] UPON THE ISSUING BANK’S RECEIPT FROM BENEFICIARY OF WRITTEN NOTICE, WHICH SHALL BE IN THE FORM OF ANNEX IV ATTACHED HERETO APPROPRIATELY COMPLETED, THAT (A) SUBSTANTIAL COMPLETION HAS OCCURRED (INCLUDING APPLICANT’S PAYMENT OF ALL DELAY LIQUIDATED DAMAGES DUE AND OWING UNDER THE AGREEMENT FOR TRAIN 1), AND (B) APPLICANT HAS ACHIEVED THE PERFORMANCE GUARANTEES OR PAID ALL PERFORMANCE LIQUIDATED DAMAGES DUE AND OWING UNDER THE AGREEMENT (INCLUDING ANY POTENTIAL PERFORMANCE LIQUIDATED DAMAGES EXPOSURE BASED UPON THE RESULTS OF THE PERFORMANCE TESTS CONDUCTED PRIOR TO SUBSTANTIAL COMPLETION).

 

 

PROVIDED THAT THE CONDITIONS FOR DECREASING THE LETTER OF CREDIT TO AN AGGREGATE AMOUNT OF [         ] DOLLARS (U.S.$         ) (E.G. INSERT AMOUNT EQUAL TO [***] PERCENT ([***]%) OF THE CONTRACT PRICE) HAVE OCCURRED, THE STATED AMOUNT OF THIS LETTER OF CREDIT SHALL DECREASE TO AN AGGREGATE AMOUNT OF [          DOLLARS (U.S.$                  ) (e.g. INSERT AMOUNT EQUAL TO [***] PERCENT ([***]%) OF THE CONTRACT PRICE)] UPON THE ISSUING BANK’S RECEIPT FROM BENEFICIARY OF WRITTEN NOTICE, WHICH SHALL BE IN THE FORM OF ANNEX V ATTACHED HERETO APPROPRIATELY COMPLETED, THAT THE PERIOD SPECIFIED IN CLAUSE (I) OF THE DEFINITION OF DEFECT CORRECTION PERIOD IN THE AGREEMENT HAS EXPIRED (I.E., THE [***] ([***]) MONTH PERIOD FOLLOWING SUBSTANTIAL COMPLETION); BENEFICIARY SHALL PROVIDE A COPY OF SUCH NOTICE TO CONTRACTOR CONCURRENTLY WITH ITS PROVISION TO THE ISSUING BANK OF SUCH NOTICE.

 

PROVIDED THAT THE CONDITIONS FOR DECREASING THE LETTER OF CREDIT TO AN AGGREGATE AMOUNT OF [         ] DOLLARS (U.S.$         ) (E.G. INSERT AMOUNT EQUAL TO [***] PERCENT ([***]%) OF THE CONTRACT PRICE) HAVE OCCURRED, THE STATED AMOUNT OF THIS LETTER OF CREDIT SHALL DECREASE TO THE AGGREGATE AMOUNT STATED IN BENEFICIARY’S WRITTEN NOTICE TO THE ISSUING BANK (WHICH SHALL BE IN THE FORM OF ANNEX VI ATTACHED HERETO APPROPRIATELY COMPLETED), WHICH SUCH DECREASE SHALL OCCUR UPON THE ISSUING BANK’S RECEIPT OF SUCH WRITTEN NOTICE. BENEFICIARY SHALL PROVIDE A COPY OF SUCH NOTICE TO CONTRACTOR CONCURRENTLY WITH ITS PROVISION TO THE ISSUING BANK OF SUCH NOTICE.

 

 

ALL DEMANDS FOR PAYMENT MUST BE PRESENTED TO THE ISSUING BANK LOCATED AT [INSERT ISSUING BANK’S NAME AND ADDRESS], NOT LATER THAN 5:00 P.M., CENTRAL STANDARD TIME (“C.S.T.”).

 

THIS LETTER OF CREDIT SHALL EXPIRE ON [         ], 20[ ] BUT SUCH EXPIRATION DATE SHALL

 

R-2

 

 

BE AUTOMATICALLY EXTENDED FOR A PERIOD OF ONE (1) YEAR ON [         ], 20[ ], AND ON EACH SUCCESSIVE EXPIRATION DATE THEREAFTER, UNLESS (A) AT LEAST [***] ([***]) CALENDAR DAYS BEFORE THE THEN CURRENT EXPIRATION DATE WE NOTIFY BOTH BENEFICIARY AND APPLICANT, BY CERTIFIED MAIL OR COURIER (WITH RECEIPT ACKNOWLEDGED BY BENEFICIARY), AT THEIR RESPECTIVE ADDRESSES SET FORTH ABOVE, THAT WE HAVE DECIDED NOT TO EXTEND THIS LETTER OF CREDIT BEYOND THE THEN CURRENT EXPIRATION DATE, OR (B) BEFORE THE THEN CURRENT EXPIRATION DATE, BENEFICIARY PROVIDES WRITTEN NOTICE TO US IN SUBSTANTIALLY THE FORM OF ANNEX VI THAT THE PERIOD SPECIFIED IN CLAUSE (II) OF THE DEFINITION OF DEFECT CORRECTION PERIOD IN THE AGREEMENT HAS EXPIRED (I.E., [***] ([***]) MONTH PERIOD FOLLOWING SUBSTANTIAL COMPLETION, AND THAT THERE ARE NO CLAIMS THAT BENEFICIARY HAS AGAINST CONTRACTOR ARISING OUT OF THIS AGREEMENT THAT REMAIN UNRESOLVED, AND THAT BENEFICIARY HEREBY REQUESTS TERMINATION OF THIS LETTER OF CREDIT.

 

 

UPON RECEIPT OF YOUR DRAFT AND DRAWING CERTIFICATE IN FULL COMPLIANCE WITH THE TERMS AND CONDITIONS OF THIS LETTER OF CREDIT, WE WILL HONOR YOUR DEMAND FOR PAYMENT WITHIN THREE (3) BUSINESS DAYS FOLLOWING SUCH RECEIPT. “BUSINESS DAY” MEANS ANY DAY OTHER THAN A SATURDAY, A SUNDAY OR ANY OTHER DAY COMMERCIAL BANKS IN THE UNITED STATES OF AMERICA ARE AUTHORIZED OR REQUIRED TO BE CLOSED, AND A DAY ON WHICH PAYMENTS CAN BE EFFECTED ON THE FEDWIRE SYSTEM.

 

IF A DEMAND FOR PAYMENT MADE BY BENEFICIARY HEREUNDER DOES NOT, IN ANY INSTANCE, CONFORM TO THE TERMS AND CONDITIONS OF THIS LETTER OF CREDIT, THE ISSUING BANK SHALL GIVE BENEFICIARY AND APPLICANT PROMPT NOTICE THAT THE DEMAND FOR PAYMENT WAS NOT EFFECTED IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THIS LETTER OF CREDIT, STATING THE REASONS THEREFORE AND THAT THE ISSUING BANK WILL HOLD ANY DOCUMENTS AT BENEFICIARY’S DISPOSAL OR UPON BENEFICIARY’S INSTRUCTIONS RETURN THE SAME TO BENEFICIARY. UPON BEING NOTIFIED THAT THE DEMAND FOR PAYMENT WAS NOT MADE IN CONFORMITY WITH THIS LETTER OF CREDIT, BENEFICIARY MAY ATTEMPT TO CORRECT ANY SUCH NON-CONFORMING DEMAND FOR PAYMENT PRIOR TO THE EXPIRATION OF THIS LETTER OF CREDIT.

 

EXCEPT AS OTHERWISE EXPRESSLY STATED HEREIN, THIS LETTER OF CREDIT IS SUBJECT TO THE INTERNATIONAL STANDBY PRACTICES (1998), INTERNATIONAL CHAMBER OF COMMERCE PUBLICATION NO. 590 (“ISP98”), WHICH SHALL IN ALL RESPECTS BE DEEMED A PART HEREOF AS FULLY AS IF INCORPORATED IN FULL HEREIN, EXCEPT AS MODIFIED HEREBY. THIS LETTER OF CREDIT IS ALSO SUBJECT TO THE LAWS OF THE STATE OF NEW YORK AND SHALL, AS TO MATTERS NOT GOVERNED BY ISP98, BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF SUCH STATE, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW THAT WOULD REQUIRE THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION. THE UNCITRAL CONVENTION ON INDEPENDENT GUARANTEES AND STANDBY LETTERS OF CREDIT DOES NOT APPLY TO THIS LETTER OF CREDIT.

 

THIS LETTER OF CREDIT SETS FORTH IN FULL THE TERMS OF OUR UNDERTAKING AND SUCH UNDERTAKING SHALL NOT IN ANY WAY BE MODIFIED OR AMPLIFIED BY REFERENCE TO ANY DOCUMENT, INSTRUMENT, OR AGREEMENT REFERRED TO HEREIN OTHER THAN ISP98 OR OTHER THAN BY AGREEMENT IN WRITING BETWEEN BENEFICIARY AND APPLICANT AND CONSENTED TO BY US.

 

[NAME OF ISSUING U.S. BANK]

 

BY:          

NAME:                   

TITLE:          

 

 

R-3

 

 

ANNEX I

IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER __________

 

DRAFT

 

 

_________ , 20         

 

 

PAY AT SIGHT TO ORDER OF THE UNDERSIGNED                    AND  /100 U.S. DOLLARS (U.S.$                  ). THIS DRAFT IS PRESENTED UNDER IRREVOCABLE STANDBY LETTER OF CREDIT NO.                             DATED          , ISSUED FOR THE ACCOUNT OF [         ].

 

 

THE UNDERSIGNED, BENEFICIARY, CERTIFIES THAT IN ACCORDANCE WITH THAT CERTAIN AMENDED AND RESTATED FIXED PRICE TURNKEY AGREEMENT FOR THE ENGINEERING, PROCUREMENT AND CONSTRUCTION OF TRAIN 3 OF THE RIO GRANDE NATURAL GAS LIQUEFACTION FACILITY, DATED AS OF SEPTEMBER 15, 2022, BY AND BETWEEN BECHTEL ENERGY INC. (“APPLICANT”) AND BENEFICIARY (AS AMENDED, RESTATED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME, THE “AGREEMENT”), IT IS ENTITLED TO PAYMENT OF THE AMOUNTS SET FORTH ABOVE.

 

 

 

TO:         [ISSUING BANK NAME] 

               [ISSUING BANK ADDRESS]

 

 

 

 

RIO GRANDE LNG, LLC

 

 

By:          

Name:          

Title:          

 

 

R-4

 

 

ANNEX II

IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER __________

 

DRAWING CERTIFICATE

 

 

 

 

TO:         [ISSUING BANK NAME] 

               [ISSUING BANK ADDRESS]

 

RE:         IRREVOCABLE STANDBY LETTER OF CREDIT NO.          

 

 

GENTLEMEN:

 

REFERENCE IS MADE TO THAT CERTAIN IRREVOCABLE STANDBY LETTER OF CREDIT NO.

(THE “LETTER OF CREDIT”) ISSUED BY YOU IN FAVOR OF RIO GRANDE LNG, LLC (“BENEFICIARY”) AT THE REQUEST AND FOR THE ACCOUNT OF BECHTEL ENERGY INC. (“APPLICANT”). UNLESS OTHERWISE DEFINED HEREIN, TERMS DEFINED IN THE LETTER OF CREDIT SHALL HAVE THE SAME MEANING WHEN USED HEREIN.

 

IN ACCORDANCE WITH THAT CERTAIN AMENDED AND RESTATED FIXED PRICE TURNKEY AGREEMENT FOR THE ENGINEERING, PROCUREMENT AND CONSTRUCTION OF TRAIN 3 OF THE RIO GRANDE NATURAL GAS LIQUEFACTION FACILITY, DATED AS OF SEPTEMBER 15, 2022, BY AND BETWEEN BENEFICIARY AS OWNER AND APPLICANT AS CONTRACTOR (AS AMENDED, RESTATED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME, THE “AGREEMENT”), THE UNDERSIGNED DOES HEREBY CERTIFY THAT:

 

a.    PURSUANT TO THE AGREEMENT BENEFICIARY IS ENTITLED TO DRAW UNDER THE LETTER OF CREDIT; OR

 

 

b.    THE ISSUING BANK FOR THE LETTER OF CREDIT NO LONGER HAS THE INVESTMENT GRADE RATING AND [***] ([***]) CALENDAR DAYS OR MORE HAVE ELAPSED SINCE THE DATE IN WHICH YOUR RATING FELL BELOW INVESTMENT GRADE (AS DEFINED IN THE AGREEMENT) AND A REPLACEMENT LETTER OF CREDIT COMPLYING WITH SECTION 9.2 OF THE AGREEMENT HAS NOT BEEN RECEIVED BY BENEFICIARY.

 

YOU ARE REQUESTED TO REMIT PAYMENT OF THIS DRAWING IN IMMEDIATELY AVAILABLE FUNDS BY WIRE TRANSFER TO THE FOLLOWING ACCOUNT:

 

[ACCOUNT INFORMATION]

 

IN WITNESS WHEREOF, THE UNDERSIGNED HAS EXECUTED AND DELIVERED THIS CERTIFICATE AS

OF THIS           DAY OF          , 20         .

 

 

RIO GRANDE LNG, LLC

BY: _____

NAME:          

TITLE:          

 

 

 

 

R-5

 

 

 

FORM OF TRANSFER NOTICE

 

 

DATE:          

 

 

TO:         [ISSUING BANK]

[ISSUING BANK ADDRESS]

 

RE:         IRREVOCABLE STANDBY LETTER OF CREDIT NO.          

 

 

GENTLEMEN:

 

FOR VALUE RECEIVED, THE UNDERSIGNED BENEFICIARY HEREBY IRREVOCABLY TRANSFERS TO:

 

________________________________________________________________________________________________

NAME OF TRANSFEREE

________________________________________________________________________________

ADDRESS

________________________________________________________________________________

ALL RIGHTS OF THE UNDERSIGNED BENEFICIARY TO DRAW UNDER THE ABOVE LETTER OF CREDIT IN ITS ENTIRETY.

 

BY THIS TRANSFER, ALL RIGHTS OF THE UNDERSIGNED BENEFICIARY IN SUCH LETTER OF CREDIT ARE TRANSFERRED TO THE TRANSFEREE AND THE TRANSFEREE SHALL HAVE THE SOLE RIGHTS AS BENEFICIARY THEREOF, INCLUDING ALL DRAWING RIGHTS UNDER THE LETTER OF CREDIT, ALL RIGHTS TO TRANSFER SET FORTH IN THE LETTER OF CREDIT AND SOLE RIGHTS RELATING TO ANY AMENDMENTS WHETHER INCREASES OR EXTENSIONS OR OTHER AMENDMENTS AND WHETHER NOW EXISTING OR HEREAFTER MADE. ALL AMENDMENTS ARE TO BE DIRECTED TO THE TRANSFEREE WITHOUT NECESSITY OF ANY CONSENT OF OR NOTICE TO THE UNDERSIGNED BENEFICIARY.

 

 

THE ORIGINAL OF SUCH LETTER OF CREDIT ALONG WITH ALL AMENDMENTS, IF ANY, IS RETURNED HEREWITH, AND WE ASK YOU TO ENDORSE THE TRANSFER ON THE REVERSE THEREOF, AND FORWARD IT DIRECTLY TO THE TRANSFEREE WITH YOUR CUSTOMARY NOTICE OF TRANSFER.

 

 

 

SINCERELY,

 

RIO GRANDE LNG, LLC         

NAME OF BENEFICIARY

_______________________

AUTHORIZED NAME & TITLE

______________________

AUTHORIZED SIGNATURE

______________________

TELEPHONE NUMBER

 

 

ACCEPTED AND AGREED:

 

NAME & ADDRESS OF BANK __________________________

 

 

____________________________________________________

 

AUTHORIZED NAME & TITLE __________________________

 

 

	
			FOR BANK USE ONLY

			Confirmation of Authenticating Bank’s signature performed by:  _________________________________________________________

			Date:  _________________       Time:  ________________ a.m./p.m.

			Addl Info.:  _______________________________________________

			

 

	 	 
	 	 

 

 

 

R-6

 

 

 

AUTHORIZED SIGNATURE ____________________________

 

TELEPHONE NO. _____________________________________

 

THIS FORM MUST BE EXECUTED IN DUPLICATE.

 

 

 

 

R-7

 

 

ANNEX IV

IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER __________

FORM OF NOTICE OF SUBSTANTIAL COMPLETION FOR TRAIN 3 OF THE RIO GRANDE NATURAL GAS LIQUEFACTION FACILITY

 

DATE:   __________________________

 

TO:         [ISSUING BANK NAME]

               [ISSUING BANK ADDRESS]

 

RE:         IRREVOCABLE STANDBY LETTER OF CREDIT NO. ____________

 

GENTLEMEN:

 

REFERENCE IS MADE TO THAT CERTAIN IRREVOCABLE STANDBY LETTER OF CREDIT NO. _____________ (THE “LETTER OF CREDIT”) ISSUED BY YOU IN FAVOR OF RIO GRANDE LNG, LLC (“BENEFICIARY”), AND THE AMENDED AND RESTATED FIXED PRICE TURNKEY AGREEMENT FOR THE ENGINEERING, PROCUREMENT AND CONSTRUCTION OF TRAIN 3 OF THE RIO GRANDE NATURAL GAS LIQUEFACTION FACILITY (“PROJECT”) DATED AS OF SEPTEMBER 15, 2022, BY AND BETWEEN BENEFICIARY AND BECHTEL ENERGY INC. (“APPLICANT”) (AS AMENDED, RESTATED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME).

 

IN ACCORDANCE WITH THE TERMS OF THE LETTER OF CREDIT, BENEFICIARY HEREBY NOTIFIES YOU THAT (I) SUBSTANTIAL COMPLETION  HAS OCCURRED (INCLUDING APPLICANT’S PAYMENT OF ALL DELAY LIQUIDATED DAMAGES DUE AND OWING UNDER THE AGREEMENT), AND (II) APPLICANT HAS ACHIEVED THE PERFORMANCE GUARANTEES  OR PAID ALL PERFORMANCE LIQUIDATED DAMAGES DUE AND OWING UNDER THE AGREEMENT  (INCLUDING ANY POTENTIAL PERFORMANCE LIQUIDATED DAMAGE EXPOSURE BASED UPON THE RESULTS OF THE PERFORMANCE TESTS CONDUCTED PRIOR TO SUBSTANTIAL COMPLETION).

 

THE UNDERSIGNED HEREBY REQUESTS THAT THE STATED AMOUNT OF THIS LETTER OF CREDIT DECREASE TO AN AGGREGATE AMOUNT OF U.S. DOLLARS ($[_________]).

 

                                RIO GRANDE LNG, LLC

 

By:                                                                                                         

 

Name:                                                                                                    

 

Title:                                                                                                       

 

 

R-8

 

 

 

 

ANNEX V

 

NOT USED

 

 

 

 

 

 

R-9

 

 

 

ANNEX VI

 

IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER __________

 

FORM OF NOTICE FOR EXPIRATION OF DEFECT CORRECTION PERIOD  OF THE RIO GRANDE NATURAL GAS LIQUEFACTION FACILITY

 

DATE:   __________________________

 

TO:         [ISSUING BANK NAME]

                   [ISSUING BANK ADDRESS]

 

RE:         IRREVOCABLE STANDBY LETTER OF CREDIT NO. ____________

 

GENTLEMEN:

 

REFERENCE IS MADE TO THAT CERTAIN IRREVOCABLE STANDBY LETTER OF CREDIT NO. _____________ (THE “LETTER OF CREDIT”) ISSUED BY YOU IN FAVOR OF RIO GRANDE LNG, LLC (“BENEFICIARY”).

 

IN ACCORDANCE WITH THE TERMS OF THE LETTER OF CREDIT, BENEFICIARY HEREBY NOTIFIES YOU THAT THE PERIOD SPECIFIED IN CLAUSE (II) OF THE DEFINITION OF “DEFECT CORRECTION PERIOD” (I.E., THE [[***] ([***])] MONTH PERIOD FOLLOWING SUBSTANTIAL COMPLETION) HAS EXPIRED AS SET FORTH IN THAT CERTAIN AMENDED AND RESTATED FIXED PRICE TURNKEY AGREEMENT FOR THE ENGINEERING, PROCUREMENT AND CONSTRUCTION OF TRAIN 3 OF THE RIO GRANDE NATURAL GAS LIQUEFACTION FACILITY, DATED AS OF SEPTEMBER 15, 2022, BY AND BETWEEN BECHTEL ENERGY INC. (“APPLICANT”) AND BENEFICIARY (AS AMENDED, RESTATED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME, THE “AGREEMENT”).

 

[IF CLAIMS REMAIN BETWEEN OWNER AND CONTRACTOR] THE UNDERSIGNED HEREBY REQUESTS THAT THE STATED AMOUNT OF THIS LETTER OF CREDIT DECREASE TO AN AGGREGATE AMOUNT OF U.S. DOLLARS ($[_________]).

 

[IF NO CLAIMS REMAIN BETWEEN OWNER AND CONTRACTOR] THE UNDERSIGNED HEREBY REQUESTS THAT THE STATED AMOUNT OF THIS LETTER OF CREDIT DECREASE TO AN AGGREGATE AMOUNT OF ZERO U.S. DOLLARS ($0.00) AND TERMINATION OF THIS LETTER OF CREDIT AND CONFIRMATION TO APPLICANT OF SAID TERMINATION. 

 

RIO GRANDE LNG, LLC

 

By:                                                                                         

 

Name:                                                                                    

 

Title:                                                                                       

 

 

R-10

 

 

ANNEX VII

 

IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER __________

 

DRAWING CERTIFICATE

 

DATE:   ______________________, 20___

 

TO:         [ISSUING BANK NAME]

                  [ISSUING BANK ADDRESS]

 

RE:         IRREVOCABLE STANDBY LETTER OF CREDIT NO. ____________

 

GENTLEMEN:

 

REFERENCE IS MADE TO THAT CERTAIN IRREVOCABLE STANDBY LETTER OF CREDIT NO. _____________ (THE “LETTER OF CREDIT”) ISSUED BY YOU IN FAVOR OF RIO GRANDE LNG, LLC (“BENEFICIARY”).

 

IN ACCORDANCE WITH THAT CERTAIN AMENDED AND RESTATED FIXED PRICE TURNKEY AGREEMENT FOR THE ENGINEERING, PROCUREMENT AND CONSTRUCTION OF TRAIN 3 OF THE RIO GRANDE NATURAL GAS LIQUEFACTION FACILITY, DATED AS OF SEPTEMBER 15, 2022, BY AND BETWEEN BECHTEL ENERGY INC. (“APPLICANT”) AND BENEFICIARY (AS AMENDED, RESTATED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME, THE “AGREEMENT”), THE UNDERSIGNED, AN OFFICER OF BENEFICIARY, DOES HEREBY CERTIFY THAT:

 

1.             BENEFICIARY HAS BEEN NOTIFIED THAT YOU HAVE DECIDED NOT TO EXTEND THE LETTER OF CREDIT BEYOND THE CURRENT EXPIRATION DATE AND [***] ([***]) OR LESS CALENDAR DAYS REMAIN BEFORE THE EXPIRATION OF THE CURRENT EXPIRATION DATE;

 

AND

 

2.             APPLICANT HAS NOT DELIVERED TO BENEFICIARY A REPLACEMENT LETTER OF CREDIT EQUIVALENT TO THE LETTER OF CREDIT (I.E., IRREVOCABLE STANDBY LETTER OF CREDIT NO. __________) FROM A COMMERCIAL BANK IN THE UNITED STATES OF AMERICA MEETING THE REQUIREMENTS OF SECTION 9.2 OF THE AGREEMENT; AND

 

3.             BENEFICIARY IS ENTITLED TO PAYMENT OF U.S. $[_______________].

 

YOU ARE REQUESTED TO REMIT PAYMENT OF THIS DRAWING IN IMMEDIATELY AVAILABLE FUNDS BY WIRE TRANSFER TO THE FOLLOWING ACCOUNT:

 

[ACCOUNT INFORMATION]

 

IN WITNESS WHEREOF, THE UNDERSIGNED HAS EXECUTED AND DELIVERED THIS CERTIFICATE AS OF THIS _______ DAY OF __________________, 20___.

 

RIO GRANDE LNG, LLC

 

By:                                                                                         

 

Name:                                                                                    

 

Title:                                                                                       

 

 

 

R-11

 

 

ATTACHMENT S

 

 

PERFORMANCE TESTS

 

 

 

[***]

 

 

 

45289023v1

 

S-1

 

 

ATTACHMENT T

 

 

 

 

MINIMUM ACCEPTANCE CRITERIA, PERFORMANCE GUARANTEES AND PERFORMANCE LIQUIDATED DAMAGES

 

 

[***]

 

 

45289024v1

 

T-1

 

 

 

ATTACHMENT U

 

 

FORM OF PARENT GUARANTEE

 

 

This GUARANTEE (this “Guarantee”), dated as of [         ], 20[ ], is made by Bechtel Global Energy, Inc., a public company organized under the laws of Delaware (“Guarantor”), in favor of Rio Grande LNG, LLC, a limited liability company organized under the laws of Texas (“Owner,” and, together with Guarantor, each a “Party” and, collectively, the “Parties”).

 

RECITALS

 

WHEREAS, Owner has agreed to enter into the Amended and Restated Fixed Price Turnkey Agreement for the Engineering, Procurement and Construction of Train 3 of the Rio Grande Natural Gas Liquefaction Facility to be located in Cameron County, Texas (“Project”), dated as of September 15, 2022, with Bechtel Energy Inc. (“Contractor”), a subsidiary of Guarantor (the “Agreement”); and

 

WHEREAS, it is a condition to Owner and Contractor entering into the Agreement that Guarantor execute and deliver this Guarantee.

 

NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

	 	
			1.

				
			Guarantee.

			

 

 

(a)    On the terms and subject to the conditions contained herein, Guarantor hereby absolutely, unconditionally and irrevocably guarantees, to and for the benefit of Owner, the full and punctual performance and payment, as and when each such payment or performance becomes due, by or on behalf of Contractor of any and all obligations or amounts owed by Contractor to Owner arising under the Agreement (the “Guaranteed Obligations”). The Guaranteed Obligations of Guarantor hereunder are primary obligations.

 

(b)    This Guarantee is an absolute, unconditional, present, and continuing guarantee of performance and payment, and not of collection, is in no way conditioned or contingent upon any attempt to collect from or enforce performance or payment by Contractor, and shall remain in full force and effect and be binding upon and against Guarantor and its successors and permitted assigns (and shall inure to the benefit of Owner and its successors, endorsees, transferees, and permitted assigns) without regard to the validity or enforceability of the Agreement. If, for any reason, Contractor shall fail or be unable duly, punctually, and fully to perform or pay, as and when such performance or payment is due, any of the Guaranteed Obligations, Guarantor shall promptly upon written notice from Owner perform or pay, or cause to be performed or paid, such Guaranteed Obligations.

 

(c)    Guarantor agrees that any court judgment or arbitration award between Contractor and Owner under the Agreement shall be conclusive and binding on the Parties (subject to either Parties’ right to appeal) for the purposes of determining Guarantor’s obligations under the Guarantee but no such judgment shall be required to enforce the Guarantor’s obligations under this Guarantee.

 

(d)    Guarantor further agrees to pay to Owner any and all reasonable direct costs, expenses (including, without limitation, all reasonable fees and disbursements of counsel), and damages paid or incurred by Owner in enforcing any rights pursuant to this Guarantee, including, without limitation, collecting against Guarantor under this Guarantee.

 

	 	
			2.

				
			Obligations Absolute and Unconditional, Continuing. Guarantor agrees that the obligations of

			

 

45289026v1         

 

U-1

 

 

Guarantor set forth in this Guarantee shall be direct obligations of Guarantor, and such obligations shall be absolute, irrevocable and unconditional, and shall remain in full force and effect without regard to and shall not be released, discharged or in any way affected or impaired by, any circumstance or condition whatsoever (other than full and strict compliance by Guarantor with its obligations hereunder) (whether or not Guarantor shall have any knowledge or notice thereof), including, without limitation:

 

(a)    the existence, validity, enforceability, perfection, release, or impairment of value of any collateral for such Guaranteed Obligations;

 

(b)    any amendment or modification of or supplement to or other change in the Agreement or any other document, including, without limitation, any change order, renewal, extension, acceleration or other changes to time, manner, place or terms of payment thereunder;

 

(c)    any failure, omission or delay on the part of Owner to confirm or comply with any term of the Agreement or any other document;

 

(d)    any waiver, consent, extension, indulgence, compromise, release or other action or inaction under or in respect of the Agreement or any other agreement or instrument or any obligation or liability of Owner or any other Person, or any exercise or non-exercise of any right, remedy, power, or privilege under or in respect of any such instrument or agreement or any such obligation or liability;

 

(e)    any bankruptcy, insolvency, reorganization, arrangement, readjustment, liquidation, or similar proceeding with respect to Owner or any of its respective properties, or any action taken by any trustee or receiver or by any court in any such proceeding;

 

 

(f)    any bankruptcy, insolvency, reorganization, arrangement, readjustment, liquidation, or similar proceeding with respect to Contractor or any of its respective properties, any rejection, invalidity or unenforceability of all or any portion of the Agreement arising from same, or any action taken by any trustee or receiver or by any court in any such proceeding;

 

 

(g)    any discharge, termination, cancellation, frustration, irregularity, invalidity or unenforceability, in whole or in part, of the Agreement or any other document or any term or provision thereof;

 

(h)    any merger or consolidation of Guarantor or Contractor into or with any other Person or any sale, lease or transfer of all or any of the assets of Guarantor or Contractor;

 

	 	
			(i)

				
			any change in the ownership of Guarantor or Contractor;

			

 

	 	
			(j)

				
			any winding up or dissolution of Contractor or Guarantor;

			

 

(k)    any assignment of, or the creation of any mortgage, pledge, charge or other encumbrance over or in respect of, this Guarantee, the Agreement, or any of the Owner’s rights, benefits, or obligations under or pursuant to this Guarantee or the Agreement; or

 

(l)    to the fullest extent permitted under Applicable Law, any other occurrence or circumstance whatsoever, whether similar or dissimilar to the foregoing, which might otherwise constitute a legal or equitable defense or discharge of the liabilities of a guarantor or surety or which might otherwise limit recourse against Guarantor

 

The Guaranteed Obligations constitute the full recourse obligations of Guarantor enforceable against it to the full extent of all its assets and properties. Without limiting the generality of the foregoing, Guarantor

 

U-2

 

 

agrees that repeated and successive demands may be made and recoveries may be had hereunder as and when, from time to time, Contractor shall fail to perform obligations or pay amounts owed by Contractor under the Agreement and that notwithstanding the recovery hereunder for or in respect of any given failure to so comply by Contractor under the Agreement, this Guarantee shall remain in full force and effect and shall apply to each and every subsequent such failure.

 

Notwithstanding anything else in this Guarantee, the Guarantor’s duties, obligations and liability under this Guarantee shall be no greater (including in duration) than the duties, obligations and liabilities of Contractor under the Agreement, and Guarantor shall have the right to avail itself of any equivalent rights of defense, claim, right, privilege, counterclaim, set-off, waiver, release, exclusions and/or limitation of liability which are or would have been available to Contractor; provided that, the foregoing statement shall not be interpreted to relieve Guarantor of any Guaranteed Obligations due to any of the circumstances in Sections 2(f), 2(h), 2(i) or 2(j) above, or due to the cancellation or termination of the Agreement or due to the invalidity or unenforceability of the Agreement (such as Contractor’s lack of authority to enter into the Agreement). The Owner agrees that in determining whether any limit on liability under the Agreement has been reached or exceeded, the liabilities of the Guarantor under this Guarantee shall be taken into account as if the amount of the relevant liability has been recovered by the Owner from the Contractor under the Agreement.

 

3.    Reinstatement. Guarantor agrees that this Guarantee shall be automatically reinstated with respect to any payment made by or on behalf of Contractor pursuant to the Agreement if and to the extent that such payment is rescinded or must be otherwise restored, whether as a result of any proceedings in bankruptcy or reorganization or otherwise.

 

4.    Waiver of Demands, Notices. Guarantor hereby unconditionally waives, to the fullest extent permitted by Applicable Law: (i) notice of any of the matters referred to in Section 2 hereof; (ii) all notices which may be required by Applicable Law, or otherwise, now or hereafter in effect, to preserve any rights against Guarantor hereunder, including, without limitation, any demand, proof, or notice of non-payment or non-performance of any Guaranteed Obligation; (iii) notice of acceptance of this Guarantee, demand, protest, presentment, notice of failure of performance or payment, and any requirement of diligence; and

(iv) any requirement to exhaust any remedies resulting from failure of performance or payment by Contractor under the Agreement or by any other Person under the terms of the Agreement.

 

5.    No Subrogation. Notwithstanding any performance, payment or payments made by Guarantor hereunder (or any set-off or application of funds of Guarantor by Owner), Guarantor shall not be entitled to be subrogated to any of the rights of Contractor (or of any rights of Owner hereunder), or any collateral, security, or guarantee or right of set-off held by Owner, for the performance or payment of the obligations guaranteed hereunder, nor shall Guarantor seek or be entitled to assert or enforce any right of contribution, reimbursement, indemnity or any other right to payment from Contractor as a result of Guarantor’s performance of its obligations pursuant to this Guarantee until all Guaranteed Obligations are performed or paid in full. If any amount shall be paid to Guarantor on account of such subrogation, contribution, reimbursement or indemnity rights at any time when all of the Guaranteed Obligations and all amounts owing hereunder shall not have been performed and paid in full, such amount shall be held by Guarantor in trust for Owner, segregated from other funds of Guarantor, and shall, forthwith upon receipt by Guarantor, be turned over to Owner in the exact form received by Guarantor (duly endorsed by Guarantor to Owner, if required), to be applied against the Guaranteed Obligations, whether or not matured, in such order as Owner may determine.

 

U-3

 

 

 

	 	
			6.

				
			Representations and Warranties. Guarantor represents and warrants that:

			

 

 

(a)    it is a corporation duly organized, validly existing and is in good standing under the laws of Delaware, and has the corporate power and authority to execute, deliver and carry out the terms and provisions of the Guarantee;

 

(b)    the execution, delivery and performance of this Guarantee will not violate or conflict with its charter or by-laws (or comparable constituent documents), any law, regulation or order of any governmental authority or any court or other agency of government applicable to it or the terms of any agreement to which it is a party;

 

(c)    no authorization, approval, consent or order of, or registration or filing with, any court or other governmental entity having jurisdiction over Guarantor is required on the part of Guarantor for the execution, delivery and performance of this Guarantee;

 

(d)    the execution, delivery and performance of this Guarantee has been and remains duly authorized by all necessary corporate action and does not contravene the Guarantor's constitutional documents or any contractual restriction binding on the Guarantor or its assets;

 

 

(e)    this Guarantee, when executed and delivered, will constitute a valid and legally binding agreement of Guarantor, enforceable against Guarantor in accordance with its terms, except as the enforceability of this Guarantee may be limited by the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general principles of equity as they apply to the Guarantor; and

 

(f)    Such Guarantor is financially solvent, able to pay all debts as they mature, and possesses sufficient working capital to perform its obligations under this Guarantee.

 

7.    Conveyance or Transfer. Without Owner’s written consent (not to be unreasonably withheld, conditioned or delayed), Guarantor shall not convey, sell, lease or transfer its properties or assets to any Person to the extent that such conveyance, sale, lease or transfer could have a material adverse effect on Guarantor’s ability to fulfill its obligations under this Guarantee (“Material Transaction”). For the avoidance of doubt, a sale of property, assets or Affiliates for market value in an arm’s length transaction

(a)    by Guarantor or (b) by an Affiliate of Guarantor shall not be considered a Material Transaction as long as Guarantor or a wholly owned subsidiary of Guarantor receives all of the proceeds from such sale. In case of a proposed Material Transaction, Guarantor shall provide Owner with reasonable advance notice of such proposed Material Transaction. Guarantor shall then meet with Owner and, pursuant to a written confidentiality agreement, will provide to Owner all necessary information, reasonably requested by Owner, regarding the proposed Material Transaction for the purpose of receiving Owner’s written consent to such Material Transaction (and as described above such consent shall not be unreasonably withheld, conditioned or delayed). For the avoidance of doubt, such restriction on conveyances, sales, leases and transfers shall include conveyances, sales, leases or transfers to Guarantor’s Affiliates other than any of Guarantor’s wholly owned subsidiaries.

 

	 	
			8.

				
			Miscellaneous.

			

 

 

(a)    This Guarantee shall inure to the benefit of and be binding upon the Parties hereto and their respective successors and permitted assigns. Guarantor may not assign or transfer this Guarantee or any rights or obligations hereunder without Owner’s prior written consent, which consent may be withheld in Owner’s sole and absolute discretion. Owner, without the consent of Guarantor: (i) may assign, pledge and/or grant a security interest in this Guarantee to any lender; and (ii) may assign this Guarantee to any

 

U-4

 

 

Person who is a permitted successor or assignee of Owner under the Agreement. Except as otherwise provided in this Section 8, nothing herein, express or implied, is intended or shall be construed to confer upon or to give to any Person other than the Parties hereto any rights, remedies, or other benefits.

 

(b)    This Guarantee shall be governed by, interpreted and construed in accordance with the laws of the State of Texas, without giving effect to any choice or conflict of law provision or rule that would cause the application of the laws of any jurisdiction other than the State of Texas.

 

(c)    In the event that any claim, dispute, controversy, difference, disagreement, or grievance (of any and every kind or type, whether based on contract, tort, statute, regulation or otherwise) arising out of, connected with or relating in any way to this Guarantee (including the construction, validity, interpretation, termination, enforceability or breach of this Guarantee) (“Dispute”) cannot be resolved informally within [***] ([***]) Days after the Dispute arises (or such longer period of time if agreed to in writing by the Parties), either Party may give written notice of the Dispute (“Dispute Notice”) to the other Party requesting that a representative of Owner’s senior management and Guarantor’s senior management meet in an attempt to resolve the Dispute. Each such senior executive shall have full authority to resolve the Dispute and shall promptly begin discussions in an effort to agree on a resolution of the Dispute within [***] ([***]) Days after receipt by the non-notifying Party of such Dispute Notice, with such negotiations being held in Harris County, Texas or at another location if agreed upon by the Parties in writing. In no event shall this Section 8(c) be construed to limit either Party’s right to take any action under this Guarantee, provided that such rights are not the subject of the Dispute.

 

(d)    If the Dispute is not resolved by negotiation within [***] ([***]) Days after the date of a Party’s written notice requesting that representatives of each Party’s senior management meet (or such other time as may be agreed in writing by the Parties), then the Parties agree that the Dispute shall be decided by final and binding arbitration. Such arbitration shall be held in Harris County, Texas, unless otherwise agreed by the Parties, shall be administered by the AAA’s office in Harris County, Texas, shall be conducted by three (3) arbitrators (or for Claims involving less than [***] U.S. Dollars (U.S.$ [***]), one (1) arbitrator) chosen in accordance with Section 8(d)(i), and shall, except as otherwise agreed by the Parties, be governed by the AAA’s Construction Industry Arbitration Rules and Mediation Procedures then in effect (“AAA Rules”). For the purposes of determining the number of arbitrators, the total value of the Claims and counterclaims reasonably asserted by all the Parties shall be used to determine whether the [***] U.S. Dollars (U.S.$ [***]) threshold has been met. The arbitration tribunal shall determine the rights and obligations of the Parties according to the laws of Texas, excluding its conflict of law principles; provided, however, the law applicable to the validity of the arbitration clause, the enforcement of any award and any other question of arbitration law or procedure shall be the Federal Arbitration Act, 9 U.S.C.A. § 2. Issues concerning the arbitrability of a matter in dispute shall be decided by a court with proper jurisdiction. The arbitration shall be conducted in the English language and all submissions shall be made in the English language or with an English translation; provided that witnesses may provide testimony in a language other than English if a simultaneous English translation is provided. The Parties shall be entitled to engage in reasonable discovery, including the right to production of relevant and material documents by the opposing Party and the right to take depositions reasonably limited in number, time and place; provided that in no event shall any Party be entitled to refuse to produce relevant and non-privileged documents or copies thereof requested by the other Party within the time limit set and to the extent required by order of the arbitration tribunal. All Disputes regarding discovery shall be promptly resolved by the arbitration tribunal. The award of the arbitration tribunal shall be in writing, state the reasons upon which the award thereof is based, be signed by all arbitrators, and be final and binding. Any other person may be joined as an additional party to any arbitration conducted under this Section 8(d), provided that joinder is permitted under and in accordance with the Agreement. The Parties agree that judgment on the arbitration award may be entered by any court having jurisdiction thereof.

 

U-5

 

 

(i)    The arbitrators for any arbitration under Section 8(d) shall be selected in accordance with this Section 8(d).

 

a)    For Claims less than [***] U.S. Dollars (U.S.$ [***]), Owner and Guarantor shall jointly select one arbitrator within ([***]) Days of the filing of the demand for arbitration with the AAA, or if the Parties fail to appoint such arbitrator within the applicable time period, then the AAA shall appoint the arbitrator in accordance with the AAA rules.

 

b)    For Claims [***] U.S. Dollars (U.S.$ [***]) or more, Owner and Guarantor shall each appoint one (1) arbitrator within [***] ([***]) Days of the filing of the demand for arbitration with the AAA, and the two (2) arbitrators so appointed shall select the presiding arbitrator within [***] ([***]) Days after the latter of the two (2) arbitrators has been appointed by the Parties. If either Party fails to appoint its party- appointed arbitrator or if the two (2) party-appointed arbitrators cannot reach an agreement on the presiding arbitrator within the applicable time period, then the AAA shall appoint the remainder of the three (3) arbitrators not yet appointed. Each arbitrator shall be and remain at all times wholly impartial, and, once appointed, no arbitrator shall have any ex parte communications with any of the Parties or any other parties to the Dispute concerning the arbitration or the underlying Dispute, provided, however, that the Parties may have ex parte communications with their appointed arbitrators until the third arbitrator is selected.

 

(e)    No modification or amendment of this Guarantee shall be of any force or effect unless made in writing, signed by the Parties hereto, and specifying with particularity the nature and extent of such modification or amendment. This Guarantee constitutes the entire and only understanding and agreement among the Parties hereto with respect to the subject matter hereof and cancels and supersedes any prior negotiations, proposals, representations, understandings, commitments, communications, or agreements, whether oral or written, with respect to the subject matter hereof.

 

(f)    All notices, demands, offers, requests and other written instruments required or permitted to be given pursuant to this Guarantee shall be in writing signed by the Party giving such notice and shall be hand delivered or sent by overnight courier, messenger, facsimile or certified mail, return receipt requested, to the other Parties at the address set forth below.

 

If to Owner:

 

 

Rio Grande LNG, LLC

1000 Louisiana Street

39th Floor

Houston, Texas 77002

Attn: [***]

E-mail: [***]

 

If to Guarantor:

 

Bechtel Global Energy, Inc.

3000 Post Oak Blvd.

Houston, Texas 77056

Phone: [***]

Facsimile: [***]

Attn: [***]

Email: [***]

 

 

U-6

 

 

 

With a copy to:

 

Bechtel Energy Inc.

3000 Post Oak Blvd.

Houston, Texas 77056

Phone: [***]

Facsimile: [***]

Attn: [***]

 

Each Party shall have the right to change the place to which such notices shall be sent or delivered by sending a similar notice to the other Parties in like manner. Notices, demands, offers, requests or other written instruments shall be deemed to have been duly given on the date actually received by the intended recipient, provided that if the day of receipt is not a Business Day then it shall be deemed to have been received on the next succeeding Business Day.

 

(g)    The headings of the several provisions of this Guarantee are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Guarantee.

 

(h)    No forbearance or delay by Owner in asserting rights against Contractor or Guarantor shall affect or impair in any way Guarantor’s obligations hereunder or the rights of Owner hereunder.

 

(i)    In addition to other assurances provided in this Guarantee, Guarantor acknowledges that Owner may obtain financing associated with the Project and Guarantor agrees to provide reasonable cooperation to Owner and Lenders in connection with such project financing, including, but not limited to, entering into direct agreements with Lenders (which shall be substantially in the form of Exhibit 1 with such other changes thereto as are reasonably requested by Lenders), as required by Lenders, covering matters that are reasonable and customary in project financings of this type such as Lenders assignment or security rights with respect to this Guarantee, direct notices to Lenders, step-in/step-out rights, opinions, access by Lenders’ representatives and other reasonable and customary matters applicable to such project financing.

 

	 	
			(j)

				
			Definitions.

			

 

(i)    Capitalized terms used, but not otherwise defined, herein shall have the respective meanings ascribed to such terms in the Agreement.

 

(ii)“    Applicable Law” means all laws, statutes, ordinances, certifications, orders, decrees, injunctions, licenses, Permits, approvals, agreements, rules and regulations, including any conditions thereto, of any Governmental Instrumentality having jurisdiction over any Party or Contractor, or other legislative or administrative action of a Governmental Instrumentality, or a final decree, judgment or order of a court which relates to the performance of Work under the Agreement or the interpretation or application of this Guarantee or the Agreement.

 

(iii)    The term “Person” shall mean any individual, company, joint venture, corporation, partnership, association, joint stock company, limited liability company, trust, estate, unincorporated organization, governmental entity or other entity having legal capacity.

 

 

(k)    Any provision in this Guarantee which is illegal, void or unenforceable will be ineffective to the extent only of such illegality, voidness or unenforceability and the invalidity of one or more phrases, sentences, clauses, Sections or Articles contained in this Guarantee shall not affect the validity of the remaining portions of this Guarantee.

 

 

U-7

 

 

(l)    This Guarantee may be executed in any number of separate counterparts and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

 

[Signature page follows.]

 

 

 

U-8

 

 

 

IN WITNESS WHEREOF, the undersigned have duly executed this Guarantee as of the date first above written.

 

BECHTEL GLOBAL ENERGY, INC.

 

By:          

Name:          

Title:          

 

 

 

RIO GRANDE LNG, LLC

 

 

By:          

Name:          

Title:          

 

 

 

 

U-9

 

 

 

EXHIBIT 1 TO THE PARENT GUARANTEE

 

FORM OF ACKNOWLEDGMENT AND CONSENT AGREEMENT WITH LENDER

 

 

U-10

 

 

 

 

 

EXHIBIT 1 TO THE PARENT GUARANTEE

 

FORM OF ACKNOWLEDGMENT AND CONSENT AGREEMENT WITH LENDER

 

[NTD: Parties to agree to conforming changes to this form of acknowledgement and consent for use with the Guarantor.]

 

Date: [ ]

 

Bechtel Global Energy, Inc (“Contracting Party”) hereby acknowledges the existence of (but has not reviewed) the [Security Agreement, dated as of [ ] (as from time to time amended, supplemented or modified, the “Security Agreement”), among Rio Grande LNG, LLC (the “Borrower”) and [ ], as collateral agent (in such capacity, the “Collateral Agent”) for the benefit of various financial institutions providing financing to the Borrower (collectively, the “Secured Parties”)], and hereby executes this Acknowledgement and Consent Agreement (this “Consent”) and agrees as follows:

 

1.    The Contracting Party hereby acknowledges and consents in accordance with the terms and conditions set forth below to the Borrower’s pledge and collateral assignment of all its right, title and interest in, to and under that certain Guarantee, dated [ ] 20[ ] in favour of Borrower, guaranteeing Bechtel Energy Inc.’s (“Contractor’s”) obligations under the Amended and Restated Fixed Price Turnkey Agreement for the Engineering, Procurement and Construction of Train 3 of the Rio Grande Natural Gas Liquefaction Facility, dated as of September 15, 2022, between the Contractor and [the Borrower] (the “Assigned Agreement”) to the Collateral Agent pursuant to the Security Agreement. Capitalized terms used, but not otherwise defined, herein shall have the respective meanings ascribed to such terms in the Assigned Agreement.

 

	 	
			2.

				
			The Contracting Party represents and warrants as of the date hereof as follows:

			

 

(a)    The Contracting Party is a corporation duly organized, validly existing and in good standing under the laws of Delaware, is authorized and qualified to do business in all jurisdictions in which the nature of the business conducted by it makes such qualification necessary and where failure so to qualify would have a material adverse effect on its financial condition, operations, prospects, taxes or business.

 

(b)    The Contracting Party is not in violation of any Applicable Law or judgment entered by any Governmental Instrumentality, which violations, individually or in the aggregate, would affect its performance of any obligations under this Consent or the Assigned Agreement in any material respect. There are no legal or arbitration proceedings or any proceeding by or before any Governmental Instrumentality, now pending or (to the current actual knowledge of the Contracting Party) threatened against the Contracting Party that, if adversely determined, could reasonably be expected to have a material adverse effect on its ability to perform under this Consent or the Assigned Agreement.

 

(c)    The Contracting Party is the holder of all licenses, other than Ordinary Course Consents (as defined below), required to permit it to operate or conduct its business in Texas, and each other jurisdiction in which the nature of the business conducted by it makes such licenses necessary, now and as contemplated by the Assigned Agreement. No consent or approval of, or other action by or any notice to or filing with, any Governmental Instrumentality (except those previously obtained) was required in connection with the

 

 

 

 

 

45289025v1

 

Exhibit U-1- Page 1 of 10

 

 

 

execution and delivery by the Contracting Party of the Assigned Agreement, or to the current actual knowledge of the Contracting Party, is required in connection with the execution and delivery of this Consent, or the performance of its obligations under this Consent. The Contracting Party has obtained all permits, licenses, approvals, consents and exemptions with respect to the performance of its obligations under the Assigned Agreement required by Applicable Law in effect as of the date hereof, except those permits, licenses, approvals, consents and exemptions that the Contracting Party is permitted to obtain in the ordinary course of business in the performance of its obligations under the Assigned Agreement (collectively, the “Ordinary Course Consents”).

 

(d)    Neither the execution and delivery of this Consent and the Assigned Agreement by the Contracting Party, the consummation of the transactions herein contemplated by the Contracting Party, nor compliance with the terms and provisions hereof by the Contracting Party, will:

 

(i)    conflict with, result in a breach of or default under, or require any consent (other than consents already obtained and the Ordinary Course Consents) under:

(A) the charter or by-laws of the Contracting Party, (B) any Applicable Law, (C) any order, writ, injunction or decree of any court applicable to the Contracting Party, or (D) any agreement or instrument to which the Contracting Party is a party or by which it is bound or to which it or any of its property or assets is subject in any such case under this clause (i) that would result in a material adverse effect upon the ability of the Contracting Party to perform its obligations under this Consent and the Assigned Agreement; or

 

(ii)    result in the creation or imposition of (or the obligation to create or impose) any lien, security interest, charge or encumbrance upon any of the properties or assets of the Contracting Party.

 

(e)    The Contracting Party has all necessary power and authority to execute, deliver and perform its obligations under this Consent and the Assigned Agreement; the execution, delivery and performance by the Contracting Party of this Consent and the Assigned Agreement have been duly authorized by all necessary action on its part; and this Consent and the Assigned Agreement have been duly and validly executed and delivered by the Contracting Party and each constitutes a legal, valid and binding obligation of the Contracting Party enforceable in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, reorganization or moratorium or other similar laws relating to the enforcement of creditors’ rights generally, and by general principles of equity. There are no amendments, modifications or supplements (whether by waiver, consent or otherwise) to the Assigned Agreement, either oral or written.

 

(f)    The Contracting Party is financially solvent, able to pay all debts as they mature and possesses sufficient working capital to guarantee the completion of the Work under the Assigned Agreement and perform its obligations hereunder.

 

(g)    To the Contracting Party’s current actual knowledge, the Borrower (a) has complied with all conditions precedent required to be complied with by or on behalf of the Borrower on or prior to the date hereof pursuant to the Assigned Agreement and (b) is not in default under any covenant or obligation of the Assigned Agreement and no such default has occurred prior to the date hereof.

 

Exhibit U-1- Page 2 of 10

 

 

(h)    The Contracting Party is not, to its current actual knowledge, in default under any covenant or obligation hereunder or under the Assigned Agreement and no such default has occurred prior to the date hereof. After giving effect to the pledge and assignment referred to in paragraph 1, and after giving effect to the consent to such pledge and assignment by the Contracting Party, to the current actual knowledge of the Contracting Party, (a) there exists no event or condition that would, either immediately or with the passage of time or giving of notice, or both, entitle the Contracting Party or the Borrower to terminate or suspend its obligations under the Assigned Agreement, (b) all amounts due under the Assigned Agreement as of the date hereof have been paid in full and (c) there are no claims or rights of set-off pending by any party to the Assigned Agreement.

 

(i)    The Contracting Party affirms that it has no written notice or current actual knowledge of any pledge or assignment relative to the right, title and interest of the Borrower in, to and under the Assigned Agreement other than the pledge and assignment referred to in paragraph 1.

 

	 	
			3.

			

 

(a)    From and after the date hereof and unless and until the Contracting Party shall have received written notice from the Collateral Agent that the lien of the Security Agreement has been released in full and provided that an event of default by the Borrower shall have occurred and be continuing pursuant to the loan documents executed in connection with the Security Agreement, the Collateral Agent shall have the right, but not the obligation, to pay all sums due under the Assigned Agreement by the Borrower and to perform any other act, duty or obligation required of the Borrower thereunder (to the same extent as the Borrower has the right to perform any such other act, duty or obligation thereunder) at any time and, without limiting the generality of the foregoing, shall have the full right and power to enforce directly against the Contracting Party following written notice to Contracting Party that the Collateral Agent is exercising such rights and remedies (subject to all of the Contracting Party’s defenses and other rights under the Assigned Agreement in accordance with the terms thereof) all obligations of the Contracting Party under the Assigned Agreement and otherwise to exercise all remedies thereunder and to make all demands and give all notices and make all requests required or permitted to be made by the Borrower under the Assigned Agreement, all in accordance with the terms thereof; provided that no such payment or performance shall be construed as an assumption by the Collateral Agent or any Secured Party of any covenants, agreements or obligations of the Borrower under or in respect of the Assigned Agreement, except to the extent the Assigned Agreement shall have been expressly assumed by the Collateral Agent pursuant to paragraph 5 hereof. Any action taken by the Collateral Agent pursuant to this paragraph 3(a) in accordance with the Security Agreement shall be binding on the Borrower. If the Contracting Party receives any demands, notices or requests made from the Collateral Agent in accordance with this paragraph 3(a) which are conflicting with that made by the Borrower, the Collateral Agent’s demands, notices and requests shall control over those conflicting demands, notices or requests made by the Borrower.

 

(b)    The Contracting Party agrees that it will not terminate or suspend its obligations under the Assigned Agreement without giving the Collateral Agent concurrent notice with notice(s) provided the Borrower pursuant to the applicable provisions of the Assigned

 

Exhibit U-1- Page 3 of 10

 

 

Agreement, and, in the case of the termination of obligations, an opportunity to cure as provided in paragraph 3(c) below.

 

(c)    If (i) the Contracting Party is entitled to terminate the Assigned Agreement pursuant to the terms of such Assigned Agreement (“Termination Event”), (ii) the Contracting Party desires to terminate its obligations under the Assigned Agreement, and (iii) notice(s) with respect to clauses (i) and (ii) shall have been provided to the Collateral Agent by the Contracting Party as provided in paragraph 3(b) above, then, and in any such case: the Collateral Agent may elect to exercise its right to cure by providing, within [***] ([***]) days after the receipt by it of the notices referred to in the preceding clause (iii), to the Contracting Party, written notice stating that the Collateral Agent has elected to exercise such right to cure (or cause to be cured), together with a written statement of the Collateral Agent that it will promptly commence to cure (or cause to be cured) all Termination Events susceptible of being cured (including, as appropriate, by the payment of money damages), and that it will, during the cure period, diligently attempt in good faith to complete (or cause to be completed) the curing of all such Termination Events to the reasonable satisfaction of Contracting Party. If the Contracting Party is entitled to suspend performance of the Work for an event under Section 16.4 of the Assigned Agreement (“Suspension Event”), the Contracting Party may, provided that notice to the Collateral Agent shall have been provided to the Collateral Agent as provided in paragraph 3(b) above, suspend performance of the Work in accordance with the terms of the Assigned Agreement until such time as

 

(a) the Borrower has cured the Suspension Event or (b) the Collateral Agent has cured (or caused to be cured) such Suspension Event in accordance with paragraph 3(d). The preceding sentence shall in no way limit any rights the Contracting Party may otherwise have to terminate the Assigned Agreement, subject to the other provisions of this Consent. Notwithstanding anything to the contrary in this paragraph 3(c), in no event shall this paragraph 3(c) be interpreted to change the Contracting Party’s rights to suspend performance of the Work under the Assigned Agreement or terminate the Assigned Agreement, except to the extent of the Collateral Agent’s right to effect a cure in accordance with paragraph 3(c) for a Termination Event or Suspension Event and paragraph 3(d) for a Termination Event.

 

(d)    The Collateral Agent shall have a period equal to [***] ([***]) days in the event of default in payment of undisputed amounts under the Assigned Agreement or [***] ([***]) days in other cases, after the delivery of the notice by the Collateral Agent referred to in paragraph 3(c) in which to cure the Termination Event(s) specified in such notice; provided that if such cure of any non-payment default can only be effected through a foreclosure on the Project (as defined in the Security Agreement), then the Collateral Agent shall have such additional reasonable period of time as is necessary to effect such foreclosure and provided further that the Contracting Party shall have been provided assurances of payment and security for payment reasonably satisfactory to the Contracting Party. Notwithstanding the foregoing, no such cure of a payment shall be construed as an assumption by the Collateral Agent or any Secured Party of any covenants, agreements or obligations of the Borrower under or in respect of the Assigned Agreement.

 

(e)    If, before the Collateral Agent shall have cured any Termination Event pursuant to paragraph 3(d), the Borrower shall have cured such Termination Event, the Contracting

 

Exhibit U-1- Page 4 of 10

 

 

Party promptly shall provide the Collateral Agent with notice of such cure and the discontinuance of such Termination Event.

 

(f)    In the event any delay and incremental costs are due and payable to the Contracting Party under the terms of this Consent, the Contracting Party shall take, without prejudice to its rights under the Assigned Agreement for change relief, commercially reasonable steps necessary to mitigate such delay and incremental costs.

 

	 	
			4.

			

 

(a)    Notwithstanding any provision in the Assigned Agreement to the contrary, in the event of the rejection or termination of the Assigned Agreement by a receiver of the Borrower or otherwise pursuant to bankruptcy or insolvency proceedings,1 then the Contracting Party will enter into a new agreement with the Collateral Agent or, at the Collateral Agent’s request, with the Collateral Agent’s nominee, effective as of the date of such rejection, with substantially the same covenants, agreements, terms, provisions and limitations as are contained in such Assigned Agreement; provided that the Collateral Agent shall have made a request to the Contracting Party for such new agreement within [***] ([***]) days in the event of default in payment of undisputed amounts under the Assignment Agreement or [***] ([***]) days after the date the Collateral Agent receives notice from the Contracting Party of the rejection of the Assigned Agreement and provided further that the Contracting Party shall have been provided assurances of payment and security for payment reasonably satisfactory to the Contracting Party.

 

(b)    If the Collateral Agent or its nominee is prohibited by any process or injunction issued by any court having jurisdiction of any bankruptcy or insolvency proceeding involving the Borrower, from continuing the Assigned Agreement in place of the Borrower or from otherwise exercising any of its rights or remedies hereunder or under the Security Agreement in respect of the Assigned Agreement, then the times specified herein for the exercise by the Collateral Agent of any right or benefit granted to it hereunder (including without limitation the time period for the exercise of any cure rights granted hereunder) shall be extended for the period of such prohibition; provided that the Collateral Agent is diligently pursuing such rights or remedies (to the extent permitted) in such bankruptcy or insolvency proceeding or otherwise and provided further that the Contracting Party shall have been provided assurances of payment and security for payment reasonably satisfactory to the Contracting Party.

 

5.    The Collateral Agent shall provide Contracting Party with notice, within [***] ([***]) Business Days of the event, if there is an event of default by Borrower shall have occurred under the applicable loan documents executed in connection with the Security Agreement or the Collateral Agent otherwise refuses to fund a draw or payment under such loan documents; provided, however, that such notice shall not grant Contracting Party a right to suspend performance of the Assigned Agreement before any of the conditions set forth in Section 16.4 thereof have been satisfied or waived. Provided that an event of default by Borrower shall have occurred and be continuing pursuant to the loan documents executed in connection with the Security Agreement, the Contracting Party agrees that the Collateral Agent may (but shall not be obligated to) pursuant to the terms of the Security Agreement assume, or cause any purchaser at any foreclosure sale or any assignee or transferee under any instrument of assignment or transfer in lieu of foreclosure to

 

Exhibit U-1- Page 5 of 10

 

 

assume, all of the interests, rights and all of the obligations of the Borrower thereafter arising under the Assigned Agreement, provided that as conditions precedent to or concurrent with any such assignment or transfer, (a) the Collateral Agent shall have made or caused to be made payment to the Contracting Party of all sums due hereunder or the Assigned Agreement and, subject to paragraph 3(f) hereof, all reasonably delay and incremental costs incurred by the Contracting Party during the period of time preceding the assignment or transfer, and (b) the assuming party shall have executed an agreement in writing to be bound by and to assume all of the obligations to the Contracting Party arising or accruing thereunder from and after the date of such assumption, and shall have provided the Contracting Party with assurances of future payment and security for future payment reasonably satisfactory to the Contracting Party. If the interests, rights and obligations of the Borrower in the Assigned Agreement shall be assumed, sold or transferred as provided herein, then the Contracting Party shall continue to perform its obligations under such Assigned Agreement in favor of the assuming party as if such party had thereafter been named as the Borrower under such Assigned Agreement, provided that if the Collateral Agent (or any entity acting on behalf of the Collateral Agent or any of the other Secured Parties) or such assuming party, as applicable, assumes the Assigned Agreement as provided above, such party shall not be liable for the performance of the obligations thereunder except to the extent of all of its rights, title, and interest in and to the Project (as defined in the Security Agreement). Notwithstanding any such assumption or disposition by the Collateral Agent, a purchaser, an assignee or a transferee, the Borrower shall not be released or discharged from and shall remain liable for any and all of its obligations to the Contracting Party arising or accruing under such Assigned Agreement prior to such assumption and the Contracting Party retains all rights under such Assigned Agreement relating to any breach thereof by the Borrower or the assuming party.

 

6.    The Contracting Party shall make all payments due to the Borrower under the Assigned Agreement to [ ], acting as the Collateral Agent to Account No. [ ], ABA No. [ ]. All parties hereto agree that each payment by the Contracting Party to the Collateral Agent of amounts due to the Borrower from the Contracting Party under the Assigned Agreement shall satisfy the Contracting Party’s corresponding payment obligation under the Assigned Agreement.

 

7.    The Contracting Party 2shall not agree to amend or modify the Assigned Agreement in any material respect, and shall not be required to enter into any Change Order in excess of [tbd] for any single Change Order or in excess of [tbd] in the case of a Change Order in conjunction with other Change Orders, unless the Contracting Party has received a duly executed certificate of an authorized officer of the Borrower that such amendment, modification or Change Order, as applicable, is (i) permitted under the loan documents executed in connection with the Security Agreement or (ii) permitted on the basis of the prior written consent of the Collateral Agent obtained by the Borrower. The Contracting Party may rely on such certificate and may waive the requirement of a certificate with respect to Change Orders. Nothing herein shall prejudice the Contracting Party’s right to a Change Order under the Assigned Agreement.

 

8.    The Contracting Party shall deliver to the Collateral Agent concurrently with the delivery thereof to the Borrower, a copy of the following items if and when provided by the Contracting Party to the Borrower pursuant to the Assigned Agreement: (a) notification prior to cancellation, non-renewal or a material change in the insurance coverage required under the terms of the Assigned Agreement; (b) notification of termination; (c) notification of suspension of all of the

 

Exhibit U-1- Page 6 of 10

 

 

Work; (d) notification of default by the Borrower; (e) notification of claims, demands, actions or causes of actions asserted against the Contracting Party for which the Borrower has indemnification obligations; and (f) notification of request for arbitration.

 

9.    The Contracting Party shall provide to the Collateral Agent any information or documentation as reasonably requested by the Collateral Agent in connection with the financing of the Borrower’s obligations under the Assigned Agreement including, without limitation, the following: (a) an opinion of counsel of the Contracting Party customary for a project financing with respect to the authorization, execution, delivery and enforceability, and other similar issues, of the Assigned Agreement and this Consent; (b) a certificate of an authorized officer of the Contracting Party certifying that (i) all amounts due and payable under the Assigned Agreement have been paid other than those amounts payable in respect of the current invoice and (ii) no event or condition exists to the Contracting Party’s current actual knowledge which constitutes a default by the Borrower under the Assigned Agreement; and (c) a copy of a certificate of good standing of, and payment of franchise taxes by, the Contracting Party issued by the Secretary of State of Delaware.

 

10.    Notice to any party hereto shall be deemed to be delivered on the earlier of: (a) the date of personal delivery and (b) if deposited in a United States Postal Service depository, postage prepaid, registered or certified mail, return receipt requested, addressed to such party at the address indicated below (or at such other address as such party may have theretofore specified by written notice delivered in accordance herewith), upon delivery or refusal to accept delivery, in each case as evidenced by the return receipt:

 

The Collateral Agent:

[ ]

[ ]

Facsimile: [ ] Attn: [ ]

 

The Borrower:

[ ]

[ ]

Facsimile: [ ] Attn: [ ]

 

The Contracting Party:

[ ]

[ ]

Facsimile: [ ] Attn: [ ]

 

11.    This Consent shall be binding upon and shall inure to the benefit of the respective successors and permitted assigns of the Contracting Party, the Borrower, the Collateral Agent and the Secured Parties (provided, however, that the Contracting Party shall not assign or transfer it rights hereunder without the prior written consent of the Collateral Agent).

 

12.    This Consent may be executed in one or more counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument. This Consent shall become effective at such time as the Collateral Agent shall have received counterparts hereof signed by all of the intended parties hereto. Neither this Consent nor any of the terms hereof may be terminated, amended, supplemented, waived or modified except by an instrument in writing signed by the Contracting Party, the Borrower and the Collateral Agent.

 

Exhibit U-1- Page 7 of 10

 

 

13.    For purposes of this Consent, the term “day” or “days” shall mean calendar days unless otherwise defined herein.

 

14.    No failure on the part of any party or any of its agents to exercise and no delay in exercising, and no course of dealing with respect to, any right, power or privilege hereunder shall operate as a waiver thereof (subject to any statute of limitations), and no single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right power or privilege.

 

15.    If any provision hereof is invalid and unenforceable in any jurisdiction, then, to the fullest extent permitted by law, (a) the other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed to carry out the intentions of the parties hereto as nearly as may be possible and (b) the invalidity or unenforceability of any provision hereof in any jurisdiction shall not affect the validity or enforceability of such provision in any other jurisdiction.

 

16.    The agreements of the parties hereto are solely for the benefit of the Contracting Party, the Borrower, the Collateral Agent and the Secured Parties, and no Person (other than the parties hereto and the Secured Parties and their successors and assigns permitted hereunder) shall have any rights hereunder.

 

17.    This Consent shall terminate upon the indefeasible payment in full of all amounts owed under any financing3 documents executed in connection with the Security Agreement.

 

18.    THIS CONSENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS THEREOF OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. THE CONTRACTING PARTY, THE COLLATERAL AGENT AND THE BORROWER HEREBY SUBMIT TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE COURT SITTING IN NEW YORK CITY FOR THE PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS CONSENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, EXCEPT FOR DISPUTES ARISING OUT OF OR RELATING TO THE ASSIGNED AGREEMENT WHICH WILL CONTINUE TO BE GOVERNED EXCLUSIVELY BY ARTICLE 18 OF THE ASSIGNED AGREEMENT. THE CONTRACTING PARTY, THE COLLATERAL AGENT AND THE BORROWER IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

19.    EACH OF THE CONTRACTING PARTY, THE COLLATERAL AGENT AND THE BORROWER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS CONSENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

____________________________

3 Owner will be securing both debt and equity financing for the project, so this should be broader than “loan documents”.

 

 

Exhibit U-1- Page 8 of 10

 

 

20.    NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS AGREEMENT, NONE OF THE CONTRACTING PARTY, THE COLLATERAL AGENT, NOR THE BORROWER, SHALL BE LIABLE UNDER THIS CONSENT, WHETHER IN CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, PRODUCTS LIABILITY, PROFESSIONAL LIABILITY, INDEMNITY, CONTRIBUTION, OR ANY OTHER CAUSE OF ACTION FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL LOSSES OR DAMAGES, OR LOSS OF PROFITS, LOSS OF USE, LOSS OF OPPORTUNITY, LOSS OF REVENUES, LOSS OF FINANCING, LOSS OR INCREASE OF BONDING CAPACITY, COSTS OF OBTAINING OR MAINTAINING FINANCING, LOSS OF GOODWILL, OR BUSINESS INTERRUPTION, OR DAMAGES OR LOSSES FOR PRINCIPAL OFFICE EXPENSES INCLUDING COMPENSATION OF PERSONNEL STATIONED THERE (“CONSEQUENTIAL DAMAGES”), AND THE CONTRACTING PARTY, THE COLLATERAL AGENT, AND THE BORROWER DO HEREBY RELEASE EACH OTHER FROM ANY LIABILITY FOR SUCH LOSSES AND DAMAGES; PROVIDED THAT THE EXCLUSION OF LIABILITY SET FORTH IN THIS SECTION IS NOT INTENDED TO PRECLUDE RECOVERIES AS PERMITTED PURSUANT TO SECTION 20.4 OF THE ASSIGNED AGREEMENT WITH RESPECT TO OBLIGATIONS UNDER THE ASSIGNED AGREEMENT ONLY.

 

[Signature pages follow]

 

 

Exhibit U-1- Page 9 of 10

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute and deliver this Consent as of the day and year first above written.

 

 

BECHTEL GLOBAL ENERGY, INC

 

 

By:          

Name:

Title:

 

[COLLATERAL AGENT]

 

 

By:          

Name:

Title:

 

ACKNOWLEDGED and AGREED [BORROWER]

By:          

Name:

Title:

 

 

 

 

 

 

 

 

 

 

 

 

45289025v1

 

 

Exhibit U-1- Page 10 of 10

 

 

 

 

 

 

ATTACHMENT V

 

 

 

 

45289027v1

 

V-1

 

 

 

 

OWNER FURNISHED ITEMS

 

With respect to any furnished items that are tied to the issuance of NTP (i.e., NTP + X months), if a Change Order involves an adjustment to a Key Date (including the Guaranteed Substantial Completion Dates), the dates upon which such items are required to be furnished shall also be adjusted accordingly, provided that such adjusted dates shall in no event be earlier than the original date listed below. All such adjusted dates shall be included in any Change Order that adjusts a Key Date or a Guaranteed Substantial Completion Date.

 

[***]

 

 

 

V-2

 

 

ATTACHMENT W

 

 

CAPITAL SPARE PARTS LIST

 

 

[***].

 

 

45289029v1

 

W-1

 

 

ATTACHMENT X

 

 

REPORTING AND MEETINGS REQUIREMENTS

 

 

[***]

 

 

45289030v1

 

X-1

 

 

ATTACHMENT Y

 

 

QUALITY PLAN REQUIREMENTS

 

 

45289031v1

 

 

 

 

 

 

Table of Contents

 

	 	
			1.0

				
			INTRODUCTION

				2
	 	
			2.0

				
			OBJECTIVES

				2
	 	
			3.0

				
			DEFINITIONS AND INTERPRETATION

				2

 

	 	
			3.1

				
			Definitions

				2
	 	
			3.2

				
			Interpretation

				2

 

	 	
			4.0

				
			RIGHTS AND RESPONSIBILITIES

				2

 

	 	
			4.1

				
			Owner Rights and Responsibilities

				2
	 	
			4.2

				
			Contractor Responsibilities

				3

 

	 	
			5.0

				
			PLANNING

				3

 

	 	
			5.1

				
			Owner Communication

				3
	 	
			5.2

				
			Inspection and Test Plans

				3
	 	
			5.3

				
			Control of Nonconformities

				3
	 	
			5.4

				
			Control of Measuring and Testing Equipment

				4
	 	
			5.5

				
			Engineering, Design, and Development

				4

 

	 	
			5.5.1

				
			Design Inputs and Outputs

				4
	 	
			5.5.2

				
			Design Verification and Control

				4
	 	
			5.5.3

				
			Design Review

				4
	 	
			5.5.4

				
			Control of Design Changes and Deviations

				4

 

	 	
			5.6

				
			Construction

				5
	 	
			5.7

				
			Subcontractor

				5

 

	 	
			6.0

				
			MEASUREMENT, ANALYSIS AND IMPROVEMENT5

				5

 

	 	
			6.1

				
			Internal Quality Audit

				5
	 	
			6.2

				
			Improvement

				6

 

	 	
			6.2.1

				
			Corrective Action

				6
	 	
			6.2.2

				
			Preventive Action

				6

 

 

 

 

 

 

	 	
			1.0

				
			INTRODUCTION

			

 

In addition to the requirements specified in any other provision of the EPC Agreement, this Attachment Y sets out the general requirements and scope of activities for quality to be performed by Contractor for the Project.

 

This Attachment Y does not constitute a substitute for the Train 3 Liquefaction Facility- specific quality control and quality assurance plan, inspection plan or Subcontractor source inspection plan.

 

	 	
			2.0

				
			OBJECTIVES

			

 

The objective of this Attachment Y is to provide the requirements for the following:

 

	 	
			●

				
			Contractor quality assurance and quality control plan, and the supporting detailed inspection and quality assurance and quality control procedures;

			

	 	
			●

				
			Contractor construction inspection and test plan and supporting construction procedures; and

			

 

	 	
			●

				
			Subcontractor source inspection plan.

			

 

	 	
			3.0

				
			DEFINITIONS AND INTERPRETATION

			

 

	 	
			3.1

				
			Definitions

			

 

Capitalized terms not defined herein have the meaning in the EPC Agreement. Unless otherwise specified, sections and articles referenced herein refer to the applicable section or article in this Attachment Y.

 

	 	
			●

				
			“Key Performance Indicator” or “KPI” means a quantifiable measure used to evaluate the success of the Contractor and Subcontractor(s) in meeting the objectives for performance of the Project, as mutually agreed upon between Owner and Contractor;

			

	 	
			●

				
			“Nonconformance” means any item in which one or more characteristics fails to conform to the requirements of the EPC Agreement associated with the Work;

			

	 	
			●

				
			“Project Quality Manager” means Contractor’s designated Person responsible for quality activities of Contractor described in the EPC Agreement associated with the Work;

			

	 	
			●

				
			“Quality Assurance” or “QA” means the system by which the Contractor shall monitor the performance of stages of the Work to a level of quality as agreed between Owner and Contractor in the Quality Plan;

			

	 	
			●

				
			“Quality Control” or “QC” means the system by which the Contractor shall test the Work to ensure that the Work is performed in accordance with the Sections and Articles of this EPC Agreement; and

			

 

	 	
			3.2

				
			Interpretation

			

 

To the extent there is a conflict between this Attachment Y and the terms and conditions of the EPC Agreement, the terms and conditions of the EPC Agreement shall control.

 

	 	
			4.0

				
			RIGHTS AND RESPONSIBILITIES

			

 

In addition to the other responsibilities set forth herein, the Parties shall have the following responsibilities.

 

	 	
			4.1

				
			Owner Rights and Responsibilities

			

 

 

Y-2

 

 

	 	
			●

				
			Pursuant to Section 12.2 of the EPC Agreement, Owner, Lender, Independent Engineer, and either of their representative have the right to inspect all Work (including Equipment) at all times; and

			

 

	 	
			●

				
			Owner’s engineering and quality staff may attend and observe all internal audits or surveillance reviews organized by the Contractor. However, Owner reserves the right to waive attendance and observation in any such witness point. Owner also reserves the right to attend and observe in any such witness point.

			

 

	 	
			4.2

				
			Contractor Responsibilities

			

 

Contractor shall:

 

	 	
			●

				
			Develop a quality strategy and detailed Quality Plan for Owner’s comment and approval no later than [***] ([***]) Days after the date Owner issues LNTP;

			

	 	
			●

				
			Be responsible for all quality requirements of the Work;

			

	 	
			●

				
			Develop and maintain quality organization charts and staffing plans for Contractor’s home office, the Site and remote Work locations;

			

	 	
			●

				
			Establish and implement the basis for evaluating QA/QC activities on the Project;

			

 

	 	
			●

				
			Provide Owner with summary reports of internal audits;

			

	 	
			●

				
			Provide Owner with summary reports related to any quality control or quality assurance issue with completed Work;

			

	 	
			●

				
			Maintain Project quality documents and records as specified in the EPC Agreement; and

			

	 	
			●

				
			Implement quality requirements related to Contractor activities contemplated under the EPC Agreement and this Attachment Y.

			

 

	 	
			5.0

				
			PLANNING

			

 

	 	
			5.1

				
			Owner Communication

			

 

Reporting requirements for quality control and quality assurance activities shall be described in detail in the Quality Plan, and shall be included in reports named in Attachment X.

 

	 	
			5.2

				
			Inspection and Test Plans

			

 

Inspection and test plans (“ITPs”) shall be prepared by Contractor for the Work. An ITP is a document which shall detail the required inspection points for both the Contractor and Owner for each portion of the Work. Contractor shall submit each ITP for Owner for approval at least [***] ([***]) Days after NTP.

 

Each Contractor and Subcontractor ITP shall include the following information:

 

	 	
			●

				
			Inspection activities;

			

	 	
			●

				
			Quality Control requirements;

			

	 	
			●

				
			Responsibility for inspections or tests;

			

	 	
			●

				
			Applicable procedures and numbering;

			

	 	
			●

				
			Acceptance criteria;

			

 

	 	
			●

				
			Verifying documents;

			

	 	
			●

				
			Inspection parties and responsibilities; and

			

	 	
			●

				
			Inspection points (hold, witness, and review).

			

 

	 	
			5.3

				
			Control of Nonconformities

			

 

Contractor shall:

 

	 	
			●

				
			Issue Nonconformance Reports (“NCRs”) for nonconformance of Work with the Quality Plan and applicable Project Drawings and Specifications. Contractor shall maintain a status summary of open NCRs and provide them to Owner as part of the Monthly Progress Report;

			

	 	
			●

				
			Segregate nonconforming materials and assemblies to a clearly designated rejection site. Contractor shall track and control nonconforming Equipment or materials until it is repaired, exported, or otherwise disposed.

			

 

 

Y-3

 

 

The responsibility for review and authority for disposition of non-conformances against Owner approved procedures shall be defined in the Contractor Quality Plan and applicable project procedures.

 

	 	
			5.4

				
			Control of Measuring and Testing Equipment

			

 

Contractor shall identify, maintain, control, adjust, and calibrate tools, gauges, instruments, and other measuring and testing devices used by Contractor to make and perform tests in the field at Site with instructions for their use, calibration, and storage.

 

	 	
			5.5

				
			Engineering, Design, and Development

			

 

	 	
			5.5.1

				
			Design Inputs and Outputs

			

 

All input data is to be complete, of current issue, and in compliance with the EPC Agreement. Design outputs shall:

 

	 	
			●

				
			Identify the characteristics of the design which are applicable to safe operation of the Train 3 Liquefaction Facility;

			

	 	
			●

				
			Consider safeguards against misuse or mal-operation; and

			

	 	
			●

				
			Define the technical data for procurement.

			

 

	 	
			5.5.2

				
			Design Verification and Control Contractor deliverables shall:

			

 

	 	
			●

				
			Be presented in a manner that enables traceability to the Basis of Design; and

			

	 	
			●

				
			Be checked (including inter-discipline checks where appropriate) and approved by authorized personnel of Contractor independent of the deliverable’s originator

			

 

	 	
			5.5.3

				
			Design Review

			

 

Contractor shall perform design reviews to address both the specific aspects of the design and the compliance of the overall design with the requirements of the EPC Agreement. Design reviews shall include the following:

 

	 	
			●

				
			HAZOP;

			

	 	
			●

				
			SIL;

			

 

	 	
			●

				
			3D Model;

			

	 	
			●

				
			SIMOPs;

			

	 	
			●

				
			Constructability;

			

	 	
			●

				
			Ergonomics (to be reviewed as part of 3D Model Reviews); and

			

	 	
			●

				
			Any other reviews described in Contractor’s project execution plan, including any discipline-specific subplans.

			

 

Prior to the above listed design reviews, relevant procedures and terms of reference shall be issued by the Contractor to Owner for review. Contractor shall organize the design reviews, present information, issue review reports, and close out any issues identified during design reviews. Contractor shall actively involve Owner in the above reviews.

 

	 	
			5.5.4

				
			Control of Design Changes and Deviations

			

 

All changes from the approved EPC Agreement baseline shall be comprehensively reviewed and approved prior to implementation. Contractor, using the change management system defined and provisioned herein and in Attachment D, shall document the review and approval of any design changes that deviate from the approved baseline design.

 

All changes shall be in accordance with the requirements contained in Attachment D and elsewhere in the EPC Agreement.

 

Y-4

 

 

Contractor’s change management system shall achieve the following:

 

	 	
			●

				
			Changes shall be identified and recognized;

			

	 	
			●

				
			Risks associated with any change shall be highlighted and managed accordingly;

			

	 	
			●

				
			Communicate and implement any change thoroughly and accurately to the Project; and

			

 

All Owner-initiated design changes and Change Directives, along with Contractor initiated technical queries and Change Orders, shall be controlled through the change management process.

 

	 	
			5.6

				
			Construction

			

 

Contractor shall develop and implement construction inspection and test plans and supporting construction procedures, and review and approve Subcontractor source inspection plans.

 

Procedures for construction activities at Site shall be developed, reviewed and approved by Contractor.

 

Where the Contractor’s inspector(s) identify or is informed of nonconforming products or materials, Contractor may either replace such nonconforming products or materials or repair the products or materials in accordance with Section 12.2A of the terms and conditions of the EPC Agreement.

 

	 	
			5.7

				
			Subcontractor

			

 

Subcontractor quality plans and/or ITPs shall be reviewed and approved by Contractor, and issued to Owner for review prior to commencement of the applicable Work.

 

Contractor shall maintain records of qualified special processes, Construction Equipment and Contractor personnel.

 

Subcontractor construction execution performance shall be monitored through regular progress meetings between Contractor and Subcontractors. Subcontractor quality audits shall be performed by Subcontractors. Contractor may conduct quality audits on Subcontractors work in accordance with the Contractor’s internal quality audit schedule to evaluate their quality plan implementation.

 

 

	 	
			6.0

				
			MEASUREMENT, ANALYSIS AND IMPROVEMENT

			

 

The Project quality manager shall be responsible for defining, planning, documenting and implementing a system to monitor, measure, and analyze the Key Performance Indicators, as appropriate for the various stages of the Project.

 

Contractor quality personnel shall have well-defined responsibilities, qualifications, authority, and organizational freedom to identify quality concerns and non-conformance, and to initiate, recommend, and implement corrective actions.

 

	 	
			6.1

				
			Internal Quality Audit

			

 

Contractor shall include an internal quality audit plan and schedule as part of the Project Quality Plan.

 

Contractor shall perform internal quality audits to measure the compliance to work processes.

 

Internal quality audits shall be executed by quality auditors not directly responsible for the Work being audited and the auditors shall be qualified in auditing and competent in the area(s) being audited.

 

Y-5

 

 

Contractor shall investigate root causes where Contractor deems appropriate in accordance with the Quality Plan and initiate corrective actions for non-compliances identified in each internal quality audit. Contractor shall verify implementation and closeout of corrective actions.

 

Contractor shall notify Owner [***] ([***]) Days prior to any internal quality audit. Quality audit reports, corrective actions and close out documentation shall be made available to Owner for review, upon request.

 

	 	
			6.2

				
			Improvement

			

 

Contractor procedures for continual improvement shall capture measurement, analysis, and improvement of the KPIs and objectives.

 

	 	
			6.2.1

				
			Corrective Action

			

 

Contractor is responsible for (i) maintaining a list of internal quality audit non-compliances and Corrective Action Requests (“CARs”), (ii) monitoring responses and the timely close-out and completion of the internal quality audit non-compliances and (iii) including the status of open internal quality audit non-compliances and CARs as part of the Monthly Progress Report.

 

	 	
			6.2.2

				
			Preventive Action

			

 

Contractor procedures for preventive actions shall describe the requirements for evaluating the need for additional mitigation actions to prevent occurrence of previous lessons learned.

 

Y-6

 

 

 

 

ATTACHMENT Z

 

 

SITE PLAN

 

 

The parcels of land where the Train 3 Liquefaction Facility and Expanded Facility shall be located is shown below in Figure 1. The Site does not include the restricted areas designated.

 

After Substantial Completion of Train 1 and Train 2, the “Site” does not include the parcels of land on which such Train is located after such Train achieves Substantial Completion.

 

Owner may reduce the size of the Site by removing areas from the Site where future trains 4, 5, and 6 will be located as long as Owner provides Contractor with a reasonable alternative for its laydown areas. Such reduction shall be captured in a mutual Change Order.

 

[***]

 

Figure 1 - Rio Grande LNG Site Plan

 

 

 

 

45289032v1

 

Z-1

 

 

 

 

 

 

ATTACHMENT AA

 

FORM OF ACKNOWLEDGMENT AND CONSENT AGREEMENT WITH LENDER

 

Date: [ ]

 

Bechtel Energy Inc. (“Contracting Party”) hereby acknowledges the existence of (but has not reviewed) the [Security Agreement, dated as of [ ] (as from time to time amended, supplemented or modified, the “Security Agreement”), among [Rio Grande LNG, LLC] (the “Borrower”) and [ ], as collateral agent (in such capacity, the “Collateral Agent”) for the benefit of various financial institutions providing financing to the Borrower (collectively, the “Secured Parties”)], and hereby executes this Acknowledgement and Consent Agreement (this “Consent”) and agrees as follows:

 

1.    The Contracting Party hereby acknowledges and consents in accordance with the terms and conditions set forth below to the Borrower’s pledge and collateral assignment of all its right, title and interest in, to and under that certain Amended and Restated Fixed Price Turnkey Agreement for the Engineering, Procurement and Construction of Train 3 of the Rio Grande Natural Gas Liquefaction Facility, dated as of September 15, 2022, between the Contractor and [the Borrower] (the “Assigned Agreement”) to the Collateral Agent pursuant to the Security Agreement. Capitalized terms used, but not otherwise defined, herein shall have the respective meanings ascribed to such terms in the Assigned Agreement.

 

	 	
			2.

				
			The Contracting Party represents and warrants as of the date hereof as follows:

			

 

(a)    The Contracting Party is a corporation duly organized, validly existing and in good standing under the laws of Delaware, is authorized and qualified to do business in all jurisdictions in which the nature of the business conducted by it makes such qualification necessary and where failure so to qualify would have a material adverse effect on its financial condition, operations, prospects, taxes or business.

 

(b)    The Contracting Party is not in violation of any Applicable Law or judgment entered by any Governmental Instrumentality, which violations, individually or in the aggregate, would affect its performance of any obligations under this Consent or the Assigned Agreement in any material respect. There are no legal or arbitration proceedings or any proceeding by or before any Governmental Instrumentality, now pending or (to the current actual knowledge of the Contracting Party) threatened against the Contracting Party that, if adversely determined, could reasonably be expected to have a material adverse effect on its ability to perform under this Consent or the Assigned Agreement.

 

(c)    The Contracting Party is the holder of all licenses, other than Ordinary Course Consents (as defined below), required to permit it to operate or conduct its business in Texas, and each other jurisdiction in which the nature of the business conducted by it makes such licenses necessary, now and as contemplated by the Assigned Agreement. No consent or approval of, or other action by or any notice to or filing with, any Governmental Instrumentality (except those previously obtained) was required in connection with the execution and delivery by the Contracting Party of the Assigned Agreement, or to the current actual knowledge of the Contracting Party, is required in connection with the execution and delivery of this Consent, or the performance of its obligations under this

 

 

 

 

45289042v1      

 

   AA-1

 

 

Consent. The Contracting Party has obtained all permits, licenses, approvals, consents and exemptions with respect to the performance of its obligations under the Assigned Agreement required by Applicable Law in effect as of the date hereof, except those permits, licenses, approvals, consents and exemptions that the Contracting Party is permitted to obtain in the ordinary course of business in the performance of its obligations under the Assigned Agreement (collectively, the “Ordinary Course Consents”).

 

(d)    Neither the execution and delivery of this Consent and the Assigned Agreement by the Contracting Party, the consummation of the transactions herein contemplated by the Contracting Party, nor compliance with the terms and provisions hereof by the Contracting Party, will:

 

(i)    conflict with, result in a breach of or default under, or require any consent (other than consents already obtained and the Ordinary Course Consents) under:

(A) the charter or by-laws of the Contracting Party, (B) any Applicable Law, (C) any order, writ, injunction or decree of any court applicable to the Contracting Party, or (D) any agreement or instrument to which the Contracting Party is a party or by which it is bound or to which it or any of its property or assets is subject in any such case under this clause (i) that would result in a material adverse effect upon the ability of the Contracting Party to perform its obligations under this Consent and the Assigned Agreement; or

 

(ii)    result in the creation or imposition of (or the obligation to create or impose) any lien, security interest, charge or encumbrance upon any of the properties or assets of the Contracting Party.

 

(e)    The Contracting Party has all necessary power and authority to execute, deliver and perform its obligations under this Consent and the Assigned Agreement; the execution, delivery and performance by the Contracting Party of this Consent and the Assigned Agreement have been duly authorized by all necessary action on its part; and this Consent and the Assigned Agreement have been duly and validly executed and delivered by the Contracting Party and each constitutes a legal, valid and binding obligation of the Contracting Party enforceable in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, reorganization or moratorium or other similar laws relating to the enforcement of creditors’ rights generally, and by general principles of equity. There are no amendments, modifications or supplements (whether by waiver, consent or otherwise) to the Assigned Agreement, either oral or written.

 

(f)    The Contracting Party is financially solvent, able to pay all debts as they mature and possesses sufficient working capital to guarantee the completion of the Work under the Assigned Agreement and perform its obligations hereunder.

 

(g)    To the Contracting Party’s current actual knowledge, the Borrower (a) has complied with all conditions precedent required to be complied with by or on behalf of the Borrower on or prior to the date hereof pursuant to the Assigned Agreement and (b) is not in default under any covenant or obligation of the Assigned Agreement and no such default has occurred prior to the date hereof.

 

(h)    The Contracting Party is not, to its current actual knowledge, in default under any covenant or obligation hereunder or under the Assigned Agreement and no such default has

 

AA-2

 

 

occurred prior to the date hereof. After giving effect to the pledge and assignment referred to in paragraph 1, and after giving effect to the consent to such pledge and assignment by the Contracting Party, to the current actual knowledge of the Contracting Party, (a) there exists no event or condition that would, either immediately or with the passage of time or giving of notice, or both, entitle the Contracting Party or the Borrower to terminate or suspend its obligations under the Assigned Agreement, (b) all amounts due under the Assigned Agreement as of the date hereof have been paid in full and (c) there are no claims or rights of set-off pending by any party to the Assigned Agreement.

 

(i)    The Contracting Party affirms that it has no written notice or current actual knowledge of any pledge or assignment relative to the right, title and interest of the Borrower in, to and under the Assigned Agreement other than the pledge and assignment referred to in paragraph 1.

 

	 	
			3.

			

 

(a)    From and after the date hereof and unless and until the Contracting Party shall have received written notice from the Collateral Agent that the lien of the Security Agreement has been released in full and provided that an event of default by the Borrower shall have occurred and be continuing pursuant to the loan documents executed in connection with the Security Agreement, the Collateral Agent shall have the right, but not the obligation, to pay all sums due under the Assigned Agreement by the Borrower and to perform any other act, duty or obligation required of the Borrower thereunder (to the same extent as the Borrower has the right to perform any such other act, duty or obligation thereunder) at any time and, without limiting the generality of the foregoing, shall have the full right and power to enforce directly against the Contracting Party following written notice to Contracting Party that the Collateral Agent is exercising such rights and remedies (subject to all of the Contracting Party’s defenses and other rights under the Assigned Agreement in accordance with the terms thereof) all obligations of the Contracting Party under the Assigned Agreement and otherwise to exercise all remedies thereunder and to make all demands and give all notices and make all requests required or permitted to be made by the Borrower under the Assigned Agreement, all in accordance with the terms thereof; provided that no such payment or performance shall be construed as an assumption by the Collateral Agent or any Secured Party of any covenants, agreements or obligations of the Borrower under or in respect of the Assigned Agreement, except to the extent the Assigned Agreement shall have been expressly assumed by the Collateral Agent pursuant to paragraph 5 hereof. Any action taken by the Collateral Agent pursuant to this paragraph 3(a) in accordance with the Security Agreement shall be binding on the Borrower. If the Contracting Party receives any demands, notices or requests made from the Collateral Agent in accordance with this paragraph 3(a) which are conflicting with that made by the Borrower, the Collateral Agent’s demands, notices and requests shall control over those conflicting demands, notices or requests made by the Borrower.

 

(b)    The Contracting Party agrees that it will not terminate or suspend its obligations under the Assigned Agreement without giving the Collateral Agent concurrent notice with notice(s) provided the Borrower pursuant to the applicable provisions of the Assigned Agreement, and, in the case of the termination of obligations, an opportunity to cure as provided in paragraph 3(c) below.

 

AA-3

 

 

(c)    If (i) the Contracting Party is entitled to terminate the Assigned Agreement pursuant to the terms of such Assigned Agreement (“Termination Event”), (ii) the Contracting Party desires to terminate its obligations under the Assigned Agreement, and (iii) notice(s) with respect to clauses (i) and (ii) shall have been provided to the Collateral Agent by the Contracting Party as provided in paragraph 3(b) above, then, and in any such case: the Collateral Agent may elect to exercise its right to cure by providing, within [***] ([***]) days after the receipt by it of the notices referred to in the preceding clause (iii), to the Contracting Party, written notice stating that the Collateral Agent has elected to exercise such right to cure (or cause to be cured), together with a written statement of the Collateral Agent that it will promptly commence to cure (or cause to be cured) all Termination Events susceptible of being cured (including, as appropriate, by the payment of money damages), and that it will, during the cure period, diligently attempt in good faith to complete (or cause to be completed) the curing of all such Termination Events to the reasonable satisfaction of Contracting Party. If the Contracting Party is entitled to suspend performance of the Work for an event under Section 16.4 of the Assigned Agreement (“Suspension Event”), the Contracting Party may, provided that notice to the Collateral Agent shall have been provided to the Collateral Agent as provided in paragraph 3(b) above, suspend performance of the Work in accordance with the terms of the Assigned Agreement until such time as

(a) the Borrower has cured the Suspension Event or (b) the Collateral Agent has cured (or caused to be cured) such Suspension Event in accordance with paragraph 3(d). The preceding sentence shall in no way limit any rights the Contracting Party may otherwise have to terminate the Assigned Agreement, subject to the other provisions of this Consent. Notwithstanding anything to the contrary in this paragraph 3(c), in no event shall this paragraph 3(c) be interpreted to change the Contracting Party’s rights to suspend performance of the Work under the Assigned Agreement or terminate the Assigned Agreement, except to the extent of the Collateral Agent’s right to effect a cure in accordance with paragraph 3(c) for a Termination Event or Suspension Event and paragraph 3(d) for a Termination Event.

 

(d)    The Collateral Agent shall have a period equal to [***] ([***]) days in the event of default in payment of undisputed amounts under the Assigned Agreement or [***] ([***]) days in other cases, after the delivery of the notice by the Collateral Agent referred to in paragraph 3(c) in which to cure the Termination Event(s) specified in such notice; provided that if such cure of any non-payment default can only be effected through a foreclosure on the Project (as defined in the Security Agreement), then the Collateral Agent shall have such additional reasonable period of time as is necessary to effect such foreclosure and provided further that the Contracting Party shall have been provided assurances of payment and security for payment reasonably satisfactory to the Contracting Party. Notwithstanding the foregoing, no such cure of a payment shall be construed as an assumption by the Collateral Agent or any Secured Party of any covenants, agreements or obligations of the Borrower under or in respect of the Assigned Agreement.

 

(e)    If, before the Collateral Agent shall have cured any Termination Event pursuant to paragraph 3(d), the Borrower shall have cured such Termination Event, the Contracting Party promptly shall provide the Collateral Agent with notice of such cure and the discontinuance of such Termination Event.

 

AA-4

 

 

(f)    In the event any delay and incremental costs are due and payable to the Contracting Party under the terms of this Consent, the Contracting Party shall take, without prejudice to its rights under the Assigned Agreement for change relief, commercially reasonable steps necessary to mitigate such delay and incremental costs.

 

	 	
			4.

			

 

(a)    Notwithstanding any provision in the Assigned Agreement to the contrary, in the event of the rejection or termination of the Assigned Agreement by a receiver of the Borrower or otherwise pursuant to bankruptcy or insolvency proceedings, then the Contracting Party will enter into a new agreement with the Collateral Agent or, at the Collateral Agent’s request, with the Collateral Agent’s nominee, effective as of the date of such rejection, with substantially the same covenants, agreements, terms, provisions and limitations as are contained in such Assigned Agreement; provided that the Collateral Agent shall have made a request to the Contracting Party for such new agreement within [***] ([***]) days in the event of default in payment of undisputed amounts under the Assignment Agreement or [***] ([***]) days after the date the Collateral Agent receives notice from the Contracting Party of the rejection of the Assigned Agreement and provided further that the Contracting Party shall have been provided assurances of payment and security for payment reasonably satisfactory to the Contracting Party.

 

(b)    If the Collateral Agent or its nominee is prohibited by any process or injunction issued by any court having jurisdiction of any bankruptcy or insolvency proceeding involving the Borrower, from continuing the Assigned Agreement in place of the Borrower or from otherwise exercising any of its rights or remedies hereunder or under the Security Agreement in respect of the Assigned Agreement, then the times specified herein for the exercise by the Collateral Agent of any right or benefit granted to it hereunder (including without limitation the time period for the exercise of any cure rights granted hereunder) shall be extended for the period of such prohibition; provided that the Collateral Agent is diligently pursuing such rights or remedies (to the extent permitted) in such bankruptcy or insolvency proceeding or otherwise and provided further that the Contracting Party shall have been provided assurances of payment and security for payment reasonably satisfactory to the Contracting Party.

 

5.    The Collateral Agent shall provide Contracting Party with notice, within [***] ([***]) Business Days of the event, if there is an event of default by Borrower shall have occurred under the applicable loan documents executed in connection with the Security Agreement or the Collateral Agent otherwise refuses to fund a draw or payment under such loan documents; provided, however, that such notice shall not grant Contracting Party a right to suspend performance of the Assigned Agreement before any of the conditions set forth in Section 16.4 thereof have been satisfied or waived. Provided that an event of default by Borrower shall have occurred and be continuing pursuant to the loan documents executed in connection with the Security Agreement, the Contracting Party agrees that the Collateral Agent may (but shall not be obligated to) pursuant to the terms of the Security Agreement assume, or cause any purchaser at any foreclosure sale or any assignee or transferee under any instrument of assignment or transfer in lieu of foreclosure to assume, all of the interests, rights and all of the obligations of the Borrower thereafter arising under the Assigned Agreement, provided that as conditions precedent to or concurrent with any such assignment or transfer, (a) the Collateral Agent shall have made or caused to be made payment to the Contracting Party of all sums due hereunder or the Assigned Agreement and, subject to

 

AA-5

 

 

paragraph 3(f) hereof, all reasonably delay and incremental costs incurred by the Contracting Party during the period of time preceding the assignment or transfer, and (b) the assuming party shall have executed an agreement in writing to be bound by and to assume all of the obligations to the Contracting Party arising or accruing thereunder from and after the date of such assumption, and shall have provided the Contracting Party with assurances of future payment and security for future payment reasonably satisfactory to the Contracting Party. If the interests, rights and obligations of the Borrower in the Assigned Agreement shall be assumed, sold or transferred as provided herein, then the Contracting Party shall continue to perform its obligations under such Assigned Agreement in favor of the assuming party as if such party had thereafter been named as the Borrower under such Assigned Agreement, provided that if the Collateral Agent (or any entity acting on behalf of the Collateral Agent or any of the other Secured Parties) or such assuming party, as applicable, assumes the Assigned Agreement as provided above, such party shall not be liable for the performance of the obligations thereunder except to the extent of all of its rights, title, and interest in and to the Project (as defined in the Security Agreement). Notwithstanding any such assumption or disposition by the Collateral Agent, a purchaser, an assignee or a transferee, the Borrower shall not be released or discharged from and shall remain liable for any and all of its obligations to the Contracting Party arising or accruing under such Assigned Agreement prior to such assumption and the Contracting Party retains all rights under such Assigned Agreement relating to any breach thereof by the Borrower or the assuming party.

 

6.    The Contracting Party shall make all payments due to the Borrower under the Assigned Agreement to [ ], acting as the Collateral Agent to Account No. [ ], ABA No. [ ]. All parties hereto agree that each payment by the Contracting Party to the Collateral Agent of amounts due to the Borrower from the Contracting Party under the Assigned Agreement shall satisfy the Contracting Party’s corresponding payment obligation under the Assigned Agreement.

 

7.    The Contracting Party shall not agree to amend or modify the Assigned Agreement in any material respect, and shall not be required to enter into any Change Order in excess of [***] for any single Change Order or in excess of [***] in the case of a Change Order in conjunction with other Change Orders, unless the Contracting Party has received a duly executed certificate of an authorized officer of the Borrower that such amendment, modification or Change Order, as applicable, is (i) permitted under the loan documents executed in connection with the Security Agreement or (ii) permitted on the basis of the prior written consent of the Collateral Agent obtained by the Borrower. The Contracting Party may rely on such certificate and may waive the requirement of a certificate with respect to Change Orders. Nothing herein shall prejudice the Contracting Party’s right to a Change Order under the Assigned Agreement.

 

8.    The Contracting Party shall deliver to the Collateral Agent concurrently with the delivery thereof to the Borrower, a copy of the following items if and when provided by the Contracting Party to the Borrower pursuant to the Assigned Agreement: (a) notification prior to cancellation, non-renewal or a material change in the insurance coverage required under the terms of the Assigned Agreement; (b) notification of termination; (c) notification of suspension of all of the Work; (d) notification of default by the Borrower; (e) notification of claims, demands, actions or causes of actions asserted against the Contracting Party for which the Borrower has indemnification obligations; and (f) notification of request for arbitration.

 

9.    The Contracting Party shall provide to the Collateral Agent any information or documentation as reasonably requested by the Collateral Agent in connection with the financing of the Borrower’s obligations under the Assigned Agreement including, without limitation, the following: (a) an

 

AA-6

 

 

opinion of counsel of the Contracting Party customary for a project financing with respect to the authorization, execution, delivery and enforceability, and other similar issues, of the Assigned Agreement and this Consent; (b) a certificate of an authorized officer of the Contracting Party certifying that (i) all amounts due and payable under the Assigned Agreement have been paid other than those amounts payable in respect of the current invoice and (ii) no event or condition exists to the Contracting Party’s current actual knowledge which constitutes a default by the Borrower under the Assigned Agreement; and (c) a copy of a certificate of good standing of, and payment of franchise taxes by, the Contracting Party issued by the Secretary of State of Delaware.

 

10.    Notice to any party hereto shall be deemed to be delivered on the earlier of: (a) the date of personal delivery and (b) if deposited in a United States Postal Service depository, postage prepaid, registered or certified mail, return receipt requested, addressed to such party at the address indicated below (or at such other address as such party may have theretofore specified by written notice delivered in accordance herewith), upon delivery or refusal to accept delivery, in each case as evidenced by the return receipt:

 

The Collateral Agent:

[ ]

[ ]

Facsimile: [ ] Attn: [ ]

 

The Borrower:

 

[ ]

[ ]

Facsimile: [ ] Attn: [ ]

 

The Contracting Party:

[ ]

[ ]

Facsimile: [ ] Attn: [ ]

 

11.    This Consent shall be binding upon and shall inure to the benefit of the respective successors and permitted assigns of the Contracting Party, the Borrower, the Collateral Agent and the Secured Parties (provided, however, that the Contracting Party shall not assign or transfer it rights hereunder without the prior written consent of the Collateral Agent).

 

12.    This Consent may be executed in one or more counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument. This Consent shall become effective at such time as the Collateral Agent shall have received counterparts hereof signed by all of the intended parties hereto. Neither this Consent nor any of the terms hereof may be terminated, amended, supplemented, waived or modified except by an instrument in writing signed by the Contracting Party, the Borrower and the Collateral Agent.

 

13.    For purposes of this Consent, the term “day” or “days” shall mean calendar days unless otherwise defined herein.

 

14.    No failure on the part of any party or any of its agents to exercise and no delay in exercising, and no course of dealing with respect to, any right, power or privilege hereunder shall operate as a waiver thereof (subject to any statute of limitations), and no single or partial exercise of any right,

 

AA-7

 

 

power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right power or privilege.

 

15.    If any provision hereof is invalid and unenforceable in any jurisdiction, then, to the fullest extent permitted by law, (a) the other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed to carry out the intentions of the parties hereto as nearly as may be possible and (b) the invalidity or unenforceability of any provision hereof in any jurisdiction shall not affect the validity or enforceability of such provision in any other jurisdiction.

 

16.    The agreements of the parties hereto are solely for the benefit of the Contracting Party, the Borrower, the Collateral Agent and the Secured Parties, and no Person (other than the parties hereto and the Secured Parties and their successors and assigns permitted hereunder) shall have any rights hereunder.

 

17.    This Consent shall terminate upon the indefeasible payment in full of all amounts owed under any financing documents executed in connection with the Security Agreement.

 

18.    THIS CONSENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS THEREOF OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. THE CONTRACTING PARTY, THE COLLATERAL AGENT AND THE BORROWER HEREBY SUBMIT TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE COURT SITTING IN NEW YORK CITY FOR THE PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS CONSENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, EXCEPT FOR DISPUTES ARISING OUT OF OR RELATING TO THE ASSIGNED AGREEMENT WHICH WILL CONTINUE TO BE GOVERNED EXCLUSIVELY BY ARTICLE 18 OF THE ASSIGNED AGREEMENT. THE CONTRACTING PARTY, THE COLLATERAL AGENT AND THE BORROWER IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

19.    EACH OF THE CONTRACTING PARTY, THE COLLATERAL AGENT AND THE BORROWER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS CONSENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

20.    NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS AGREEMENT, NONE OF THE CONTRACTING PARTY, THE COLLATERAL AGENT, NOR THE BORROWER, SHALL BE LIABLE UNDER THIS CONSENT, WHETHER IN CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, PRODUCTS LIABILITY, PROFESSIONAL LIABILITY, INDEMNITY, CONTRIBUTION, OR ANY OTHER CAUSE OF ACTION FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL LOSSES OR DAMAGES, OR LOSS OF PROFITS, LOSS OF USE, LOSS OF OPPORTUNITY, LOSS OF REVENUES, LOSS OF FINANCING, LOSS OR INCREASE OF BONDING CAPACITY, COSTS OF OBTAINING OR MAINTAINING FINANCING, LOSS OF GOODWILL, OR

 

AA-8

 

 

BUSINESS INTERRUPTION, OR DAMAGES OR LOSSES FOR PRINCIPAL OFFICE EXPENSES INCLUDING COMPENSATION OF PERSONNEL STATIONED THERE (“CONSEQUENTIAL DAMAGES”), AND THE CONTRACTING PARTY, THE COLLATERAL AGENT, AND THE BORROWER DO HEREBY RELEASE EACH OTHER FROM ANY LIABILITY FOR SUCH LOSSES AND DAMAGES; PROVIDED THAT THE EXCLUSION OF LIABILITY SET FORTH IN THIS SECTION IS NOT INTENDED TO PRECLUDE RECOVERIES AS PERMITTED PURSUANT TO SECTION 20.4 OF THE ASSIGNED AGREEMENT WITH RESPECT TO OBLIGATIONS UNDER THE ASSIGNED AGREEMENT ONLY.

 

[Signature pages follow]

 

 

 

AA-9

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute and deliver this Consent as of the day and year first above written.

 

 

[CONTRACTOR]

 

 

By:          

Name:

Title:

 

[COLLATERAL AGENT]

 

 

By:          

Name:

Title:

 

ACKNOWLEDGED and AGREED [BORROWER]

By:          

Name:

Title:

 

 

 

 

 

 

 

 

 

 

AA-10

 

 

 

ATTACHMENT BB

 

 

RELY UPON INFORMATION

 

 

 

The following information shall be Rely Upon Information for the purposes of the EPC Agreement: [***]

 

Unless expressly referenced above, no other data, information or documentation shall be Rely Upon Information.

 

 

 

45289044v1

 

BB-1

 

 

ATTACHMENT CC 

 

NOT USED

 

 

 

 

 

45289052v1

 

 

CC-1

 

 

ATTACHMENT DD

 

 

OWNER PROVIDED LIST OF TAX EXEMPT AND TAXABLE EQUIPMENT

 

Contractor shall assist Owner on an ongoing basis to refine this Attachment DD. Such refinements shall be completed no later than [***] ([***]) months after NTP.

 

[***]

 

 

45289059v1

 

DD-1

 

 

ATTACHMENT EE 

 

NOT USED

 

 

 

 

45289061v1

 

EE-1

 

 

ATTACHMENT FF

 

RELIEF FOR CHANGES IN U.S. TARIFFS AND DUTIES

 

 

 

[***]

 

45289063v1

 

 

 

 

ATTACHMENT GG 

 

NOT USED

 

 

 

 

 

45289065v1

 

GG-1

 

 

 

 

ATTACHMENT HH

 

LIST OF POST-SUBSTANTIAL COMPLETION INTERFERING WORK

 

The table below identifies Work to be undertaken for Train 3, after Substantial Completion of Train 1 and Train 2, that may interfere with the commercial operation of Train 1 or Train 2. Contractor shall perform such interfering Work as specified in Section 3.27 of the Agreement.

 

[***]

 

 

 

 

45289071v1

 

HH-1

 

 

 

 

ATTACHMENT II

 

CONTRACTOR’S COVID-19 COUNTERMEASURES, MEANS, AND METHODS AND PROVISIONAL SUM

 

	 	
			1.0

				
			General

			

 

 

	 	
			a.

				
			During the course of the Work, Contractor (or its appliable Subcontractors or Sub- subcontractors) may be required to implement COVID-19 Countermeasures to address COVID-19 (including the occurrence of a COVID-19 Event).

			

 

	 	
			b.

				
			Contractor has set forth in Schedule II-1 and Schedule II-2 a list of all contemplated COVID-19 Countermeasures with applicable indicative rates.

			

 

 

	 	
			c.

				
			Owner shall pay Contractor for implementation of the COVID-19 Countermeasures in accordance with the Agreement and this Attachment II. A basis (“Basis”) of each COVID- 19 Countermeasure is listed in the following tables. The Basis further defines the COVID-

			

19 Countermeasure and describes any limitations associated with such COVID-19 Countermeasure. If examples are provided in the Basis of the COVID-19 Countermeasure, then the application of the COVID-19 Countermeasure is limited to those items. The Basis shall be items of the same quality and condition as required for the Work, and where the Basis includes an item required for the Work, then the Basis is an identical version of that very same item (i.e., an additional office trailer is identical to the office trailers, except as otherwise specified in the Basis).

 

	 	
			d.

				
			The initial COVID-19 Provisional Sum is [***] U.S. Dollars (U.S.$ [***]) for the COVID- 19 Countermeasures in Schedule II-1 and Schedule II-2. However, the anticipated costs are set out in in each of Schedule II-1 and Schedule II-2, which costs are indicative only. These costs for the provision of the COVID-19 Countermeasures are for the durations specified in each of Schedule II-1 and Schedule II-2. Owner shall pay Contractor for all costs incurred as a result of COVID-19 in accordance with Section 6.12 of the Agreement.

			

 

	 	
			e.

				
			Unless otherwise specified, it is presumed that the cost of any additional personnel listed in Schedules II-1 or II-2 will be based on those personnel working [***] ([***]) hours per week or per Project policy requirement.

			

 

	 	
			2.0

				
			Invoicing and Payment

			

 

	 	
			a.

				
			The rates in Columns C, D, E, and F (as applicable) in Schedule II-1 and Schedule II-2 are Contractor’s best estimate of the costs that will be incurred and will be reconciled in accordance with the Agreement based on the actual costs and expenses incurred by Contractor and demonstrated to Owner. These estimates were derived by Contractor by evaluating the costs included by Contractor in the Contract Price for the same or similar supply.

			

 

	 	
			b.

				
			Contractor shall include in its Monthly Invoice all amounts properly due and owing for costs and expenses incurred in accordance with this Attachment II during the prior Month.

			

 

 

	 	
			c.

				
			Each Invoice shall be due and payable in accordance with Article 7 of the Agreement.

			

 

 

 

45289071v1

 

II-1

 

 

Schedule II-1

 

[***]

 

 

 

 

 

 

II-2

 

 

Schedule II-2

 

 

[***]

 

 

 

II-3

 

 

ATTACHMENT JJ

 

PROVISIONAL SUMS

 

The Aggregate Provisional Sum consists of the Provisional Sums below, each separated into a Provisional Sum Equipment Price and Provisional Sum Labor and Skills Price as follows:

 

 

	
			Provisional Sum

				
			Provisional Sum Amount (U.S.$)

			
	
			[***]

				
			$[***]

			
	
			[***]

				
			$[***]

			
	
			[***]

				
			$[***]

			
	
			[***]

				
			$[***]

			

 

With respect to all Provisional Sums, Contractor shall provide backup documentation, as applicable, upon Owner’s request to reasonably substantiate any costs incurred related to such Provisional Sums. For Provisional Sum Work, Contractor is entitled to actual costs incurred plus a [***] percent ([***]%) markup (and no additional markups or amounts included, including no markup for escalation or contingency). Upon adjustment of the Contract Price pursuant to this Attachment JJ, the Aggregate Provisional Sum shall also be adjusted to reflect any Provisional Sums adjustments that have occurred by mutually agreed Change Order.

 

[***]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

45289077v1         

 

 

JJ-1

 

 

ATTACHMENT KK 

 

COMMODITY PRICE RISE AND FALL

 

 

[***]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

45289087v1

 

 

 

[***]

 

APPENDIX 1

 

COMMODITY PRICE RISE AND FALL PAYMENT CALCULATIONS

 

 

[***]

 

 

 

KK-2

 

 

 

 

ATTACHMENT LL

 

HIGH VALUE ORDER TRUE UP

 

 

	 	
			1.

				
			Definitions.

			

 

 

This Attachment LL uses the following definitions:

 

 

“Change In HVO Schedule” is calculated by subtracting the Original HVO Schedule from the Updated HVO Schedule, but such subtraction shall not be performed until Contractor removes from such Updated HVO Schedule any impacts (if any) that are a result of a change in Subcontractor’s scope, design, quantities, specifications or terms and conditions (but for the avoidance of doubt, excluding any changes made by Owner via a Change Order).

 

“Change In HVO Value” is calculated by subtracting the Original HVO Quote from the Updated HVO Quote, but such subtraction shall not be performed until Contractor removes from such Updated HVO Quote any impacts (if any) that are a result of a change in Subcontractor’s scope, design, quantities, specifications or terms and conditions (but for the avoidance of doubt, excluding any changes made by Owner via a Change Order).

 

“High Value Order” or “HVO” means specific material requisitions, as outlined in Schedule LL- 1.

 

 

“High Value Order Equipment” means Equipment procured under a Subcontract for a High Value Order.

 

 

“High Value Order Subcontractors” or “HVO Subcontractors” are the Subcontractors listed in Schedule LL-1 for the procurement of the High Value Order Equipment.

 

“Original Combined HVO Quote” means the quote for the High Value Order Equipment for the applicable High Value Order that was received by Contractor prior to the Amended and Restated Execution Date and which the Contract Price and Key Dates are based upon, which includes the Original HVO Quote and the Original HVO Schedule.

 

“Original HVO Quote” means the Subcontractor’s quote for the High Value Order Equipment for the applicable High Value Order that was received by Contractor prior to the Amended and Restated Execution Date and which the Contract Price is based upon.

 

“Original HVO Schedule” means the Subcontractor’s schedule for the High Value Order Equipment for the applicable High Value Order that was received by Contractor prior to the Amended and Restated Execution Date and which the Key Dates are based upon.

 

“Updated Combined HVO Quote” means the quote received by Contractor from the Subcontractor that is requested by Owner and received and submitted by Contractor to Owner pursuant to Section 2 below, which contains the Updated HVO Quote and the Updated HVO Schedule and which is binding and valid for the period described in Section 2 below.

 

 

“Updated HVO Quote” means the price received by Contractor from the Subcontractor that is requested by Owner and received and submitted by Contractor to Owner pursuant to Section 2 below, which is binding and valid for the period described in Section 2 below.

 

 

45289095v1

 

LL-1

 

 

“Updated HVO Schedule” means the schedule received by Contractor from the Subcontractor that is requested by Owner and received and submitted by Contractor to Owner pursuant to Section 2 below, which is binding and valid for the period described in Section 2 below.

 

	 	
			2.

				
			High Value Order True Up Procedure

			

 

Each High Value Order has an Original Combined HVO Quote that contains the Original HVO Quote and Original HVO Schedule on which the Contract Price and Key Dates are based.

 

 

Upon Owner’s written request between [***] and NTP (or after NTP, but no later than [***] ([***]) Days before Contractor needs to subcontract with a HVO Subcontractor to maintain Contractor’s schedule), Contractor shall require Updated Combined HVO Quotes from each of the Category A, B and C HVO Subcontractors requested by Owner (other than Capital Spare Parts). Contractor shall receive such Updated HVO Quotes from each such HVO Subcontractor and submit such Updated Combined HVO Quotes to Owner (which shall include the information required below) no later than [***] ([***]) Days after Owner’s written request. Contractor shall ensure that such Updated Combined HVO Quotes has a price (Updated HVO Quote) and schedule (Updated HVO Schedule) that is fixed and valid for the period commencing upon [***] ([***]) Days after such written request and ending no earlier than [***] ([***]) Days after such written request. If Owner issues NTP at any time during such validity period, Contractor shall not be entitled to any further changes to the Contract Price or Key Dates for the HVOs that are the subject of Owner’s written request (but for the avoidance of doubt, excluding any changes made by Owner via a Change Order). Notwithstanding the foregoing, Contractor shall endeavor that the Category C ABB Subcontractors Updated Combined HVO Quote is binding and valid for the period commencing upon [***] ([***]) Days after Owner’s written request and ending no earlier than [***] ([***]) Days after such Owner’s written request, but at a minimum such validity period shall commence upon [***] ([***]) Days after such Owner’s request and end no earlier than [***] ([***]) Days after such Owner’s written request. It is the intent of the Parties that Owner will make only one such request to Contractor, with the intent of Owner to time such request so that NTP is issued during the validity period of the Updated Combined HVO Quotes; however, the Parties recognize that additional requests may need to be made by Owner if it miscalculates the anticipated timing of NTP or Owner decides to defer firming up a particular High Value Order (but in all cases not deferring the firming up of such High Value Order to such extent after NTP that Contractor cannot maintain its schedule).

 

Contractor shall submit to Owner a letter in the form of Schedule LL-2 (“HVO Proposal Letter”) that contains all Updated Combined HVO Quotes requested by Owner. Such HVO Proposal Letter shall include each such Subcontractor’s Updated HVO Quote and Updated HVO Schedule and the information described below. The HVO Proposal Letter shall be received by Owner no later than [***] ([***]) Days after Owner’s written request. The Contract Price and Key Dates are only subject to adjustment for changes due to fluctuations in market conditions after the date of the respective Original Combined HVO Quote, as shown in Schedule LL-1. For the avoidance of doubt, Contractor shall receive no adjustments to the Contract Price or Guaranteed Dates to the extent the Updated HVO Quote and Updated HVO Schedule includes impacts related to any changes in a Subcontractor’s scope, design, quantities, specifications or terms and conditions (but for the avoidance of doubt, excluding any changes made by Owner via a Change Order), and any adjustments related to the foregoing matters shall be for Contractor’s account and not passed onto Owner. With each Updated Combined HVO Quote, Contractor shall provide to Owner the Original Combined HVO Quote (including the Original HVO Quote and Original HVO Schedule) for each High Value Order Subcontractor, and the Updated Combined HVO Quote (including the Updated HVO Quote and Updated HVO Schedule). If there is no Original Combined HVO Quote, Contractor shall indicate the amount estimated for the relevant High Value Order Equipment prior to the Amended and Restated Execution Date, included in Schedule LL-1 or, in the case of Capital Spare Parts, in Attachment W. If

 

LL-2

 

 

Owner’s elects to proceed with the commitment of an HVO, then Owner shall request such at any time after receiving an HVO Proposal Letter and during the validity period described in this Section 2, and the Parties shall execute a Change Order in accordance with the Agreement as follows (and such Change Order shall also include any impacts to the Key Dates pursuant to Section 3 below). No adjustment to Contract Price shall occur as a result of the procedures in Schedule LL-1 unless Owner makes such commitment request. Owner may further audit the Updated Combined HVO Quote in accordance with Section 3.13B of the Agreement provided that such audit shall be conducted no later than [***] ([***]) Business Days after Owner’s written notice thereof.

 

 

	 	
			i.

				
			With respect to all HVOs that Owner desires to firm up price and schedule, if the cumulative aggregate Change in HVO Value for all such HVOs is negative (i.e., cumulative aggregate Order HVO Quotes is less than the cumulative aggregate Original HVO Quotes), Owner shall be entitled to a Change Order reducing the Contract Price by the sum of such difference and [***] percent ([***]%) of such difference; or

			

 

	 	
			ii.

				
			With respect to all HVOs that Owner desires to firm up price and schedule, if the cumulative aggregate Change in HVO Value for all such HVOs is positive (i.e., cumulative aggregate Order HVO Quotes is greater than the cumulative aggregate Original HVO Quotes), Contractor shall be entitled to a Change Order increasing the Contract Price by the sum of such difference and [***] percent ([***]%) of such difference.

			

 

 

	 	
			3.

				
			High Value Order True Up – Change In HVO Schedule

			

 

	 	
			i.

				
			Category A High Value Orders. For any High Value Order listed in Category A below, if there is a Change in HVO Schedule such that the High Value Order Equipment will be delivered later than the Original HVO Schedule, then if Owner desires to firm up the price and schedule, Contractor shall be entitled to a Change Order adjusting the Key Dates to the extent permitted in Section 6.8 of the Agreement, but only after taking into account the impact of all Change in HVO Schedules under the Updated Combined HVO Quotes for the High Value Order Equipment for which Owner desires to firm up price and schedule.

			

 

	 	
			ii.

				
			Category B High Value Orders. For any High Value Order listed in Category B below, if there is a Change in HVO Schedule such that the High Value Order Equipment will be delivered later than the Original HVO Schedule by greater than [***] ([***]) Months, then if Owner desires to firm up the price and schedule, Contractor shall be entitled to a Change Order adjusting the Key Dates to the extent permitted in Section 6.8 of the Agreement but only after taking into account the impact of all Change in HVO Schedules under the Updated Combined HVO Quotes for the High Value Order Equipment for which Owner desires to firm up price and schedule.

			

 

 

	 	
			iii.

				
			Category C High Value Orders. For the High Value Orders listed in Category C below, Contractor shall not be entitled to a Change Order adjusting the Contract Price or Key Dates for changes in the schedule of such Subcontracts.

			

 

 

	 	
			4.

				
			Change in HVO Subcontractor

			

 

Subject to Section 2.4B of the Agreement, Contractor may select an alternate Subcontractor for any HVO to be procured from ABB or Hitachi or stainless steel and cladded vessels, but only if Contractor holds a competitive bid between the alternate Subcontractor and the Subcontractor listed in this Attachment LL and

 

LL-3

 

 

Contractor notifies Owner of such alternate Subcontractor before bidding, and the selected Subcontractor bid shall be deemed to be the Updated Combined HVO Quote for the purposes of this Attachment LL. Contractor shall select the Subcontractor with the lowest price, as long as the schedule for such Subcontractor is compatible with Contractor’s schedule and the Subcontractor is technically acceptable to Contractor. For the avoidance of doubt, if Contractor selects an alternate Subcontractor for such HVO due to the original HVO Subcontractor not providing a schedule compatible with Contractor’s schedule or such original HVO Subcontractor declining to bid, then this Attachment LL shall apply to the alternate Subcontractor, with the alternate Subcontractor’s quote deemed to be the Updated Combined HVO Quote of the applicable High Value Order Subcontractor.

 

 

 

 

LL-4

 

 

SCHEDULE LL-1

 

 

HIGH VALUE ORDERS

 

High Value Orders – Category A

 

 

 

 

[***]

 

 

 

 

LL-5

 

 

 

High Value Orders – Category B

 

 

 

 

 

 

 

[***]

 

 

 

LL-6

 

 

 

High Value Orders – Category C

 

 

 

 

[***]

 

 

 

LL-7

 

 

SCHEDULE LL-2

 

FORM OF HVO PROPOSAL LETTER FROM CONTRACTOR

 

[Letter to be Placed on Contractor’s Letterhead]

 

 

______ , 20[ ]

 

 

Rio Grande LNG, LLC

 

1000 Louisiana Street, 39th Floor

 

Houston, Texas 77002

 

Attn: [***]

 

 

RE: HVO Proposal Letter for [All HVO Subcontractors] [Note: if not for all HVO Subcontractors, list only those applicable HVO Subcontractors]

 

 

Amended and Restated Fixed Price Turnkey Agreement for the Engineering, Procurement and Construction of Trains 1 and 2 for the Rio Grande Natural Gas Liquefaction Facility, dated September 14, 2022 (“Agreement”)

 

 

Dear Rio Grande LNG, LLC

 

 

Pursuant to the request of Rio Grande LNG, LLC (“Owner”), Bechtel Energy Inc. (“Contractor”) is providing this HVO Proposal Letter for all High Value Order Equipment requested in Owner’s notice to Contractor for the Agreement. This HVO Proposal Letter has been prepared in accordance with Agreement, including Attachment LL.

 

Table 1, attached to this letter, shows the information provided by each High Value Order Subcontractor for each such High Value Order Equipment requested in Owner’s notice to Contractor, as well as information completed by Contractor. Contractor has attached to this letter the HVO Proposal Letter from each such High Value Order Subcontractor, each of which was completed in accordance with Schedule LL- 3 of the Agreement. The validity of each Updated Combined HVO Quote is shown in Table 1. Also attached to this letter is the Original Combined HVO Quote (including the Original HVO Quote and Original HVO Schedule) for each High Value Order Subcontractor, and the Updated Combined HVO Quote (including the Updated HVO Quote and Updated HVO Schedule). If there is no Original Combined HVO Quote, Contractor shall indicate the amount estimated for the relevant High Value Order Equipment at the Amended and Restated Execution Date, included in Table 1. If there is no Original Combined HVO Quote, Schedule LL-3 shall be amended to refer only to the Updated Combined HVO Quote and all references to the Original Combined HVO Quote shall be deleted.

 

As reflected in Table 1, the cumulative adjustment in the Contract Price as a result of the Change in HVO Prices for all High Value Order Equipment shown in Table 1 is [a decrease of U.S.$         ] [an increase of U.S.$         ]. Contractor confirms that the Change in HVO Prices does not include any

 

 

 

 

impacts that are the result of a change in the scope, design, quantities, specifications or terms and conditions for any High Value Order Subcontractor.

 

The Change in HVO Schedule (if any) for each High Value Order Equipment in Table 1 is shown in Table

1. Contractor confirms that the Change in HVO Schedule does not include any impacts that are the result of a change in the scope, design, quantities, specifications or terms and conditions for any High Value Order Subcontractor. To the extent there was any Change in HVO Schedule for any High Value Order Equipment, Contractor states that it has evaluated such Change in HVO Schedule and determined, in accordance with the Agreement, that there [is no change to any of the Key Dates] [is a change to the Key Dates, as follows:

__________]. [Attached to this letter is the information required under the Agreement that supports Contractor’s claim for an adjustment to the Key Dates.]

 

 

Based on the foregoing, if Owner provides notice to Contractor, no later than [         , 20 ], that it elects to fix the price and schedule for High Value Order Equipment, the Contract Price for the Agreement will [decrease U.S.$         ] [increase U.S.$                  ] and the Key Dates for the Agreement [will not change] [will change as follows:          ]. Upon receipt of such notice by Contractor, the Parties will promptly execute a Change Order reflecting such adjustments in the Contract Price and Key Dates for the Agreement.

 

 

This HVO Proposal Letter is provided and executed by an authorized representative of Contractor

 

 

Sincerely,

 

                                     ___________________________

 Name:          

Title:          

Date:          

 

 

cc:         [***], Rio Grande LNG, LLC, 1000 Louisiana Street, 39th Floor, Houston, TX 77002

 

 

Attachments:

 

	 	
			●

				
			Table 1

			

 

	 	
			●

				
			HVO Proposal Letters from each High Value Order Subcontractor

			

 

	 	
			●

				
			Original Combined HVO Quote from each High Value Order Subcontractor

			

 

	 	
			●

				
			The Updated Combined HVO Quote from each High Value Order Subcontractor

			

 

 

 

LL-9

 

 

Table 1

 

 

[***]

 

 

 

LL-10

 

 

High Value Orders – Category B

 

 

[***]

 

 

 

 

LL-11

 

 

High Value Orders – Category C

 

 

[***]

 

 

 

 

 

 

LL-12

 

 

Table 1

 

 

[***]

 

 

 

 

 

LL-13

 

 

SCHEDULE LL-3

 

FORM OF HVO PROPOSAL LETTER FROM SUBCONTRACTORS

 

 

[Letter to be Placed on Subcontractor Letterhead]

 

 

, 20[ ]

 

 

 

Rio Grande LNG, LLC

 

1000 Louisiana Street, 39th Floor Houston, Texas 77002

 

Attn: [***]

 

 

 

RE: Rio Grande Natural Gas Liquefaction Facility – High Value True Up for [insert name of Equipment] Equipment

 

 

Dear Rio Grande LNG, LLC

 

 

Pursuant to Bechtel Energy Inc.’s (“Contractor”) request, we, [insert Subcontractor name] (“High Value Order Subcontractor”) are providing this notification to Rio Grande LNG, LLC (“Owner”) for that certain [describe the Equipment] Equipment (“High Value Order Equipment”).

 

 

On [         , 2022], we provided a quote (“Original Combined HVO Quote”) to Contractor for the High Value Order Equipment, pursuant to [quote          ], which was binding until

[         ]_2022 (”Original Binding Period”). Such Original Combined HVO Quote contained:

 

	 	
			●

				
			a quote of [U.S.$] (“Original HVO Quote”); and

			

 

	 	
			●

				
			a schedule for delivery of such High Value Order Equipment (“Original HVO Schedule”), as follows:

			

 

	 	
			o

				
			[Insert schedule here]

			

 

 

On [         , 20[ ]], at Contractor’s request, we updated our Original Combined HVO Quote (“Updated Combined HVO Quote”) and provided such Updated Combined HVO Quote to Contractor. Our Updated Combined HVO Quote is comprised of the following:

 

	 	
			●

				
			a quote of [U.S.$] (“Updated HVO Quote”);

			

 

	 	
			●

				
			a schedule for delivery of such High Value Order Equipment (“Updated HVO Schedule”), as follows:

			

 

	 	
			o

				
			[insert schedule here]

			

 

 

LL-14

 

 

	 	
			●

				
			With the Updated Combined HVO Quote being binding and irrevocable on High Value Order Subcontractor from [20[ ]] through and including [, 20 ] (“Updated Binding Period”).

			

 

 

Accordingly, High Value Order Subcontractor represents to Owner and Contractor:

 

	 	
			●

				
			The difference between the Updated HVO Quote and the Original HVO Quote is: [U.S.$].

			

 

	 	
			o

				
			Such difference does not include any impacts related to any changes in High Value Order Subcontractor’s scope, design, quantities, specifications or terms and conditions

			

 

	 	
			●

				
			The difference, if any, between the Updated Original HVO Schedule and the Original HVO Schedule is as follows: [               ].

			

 

	 	
			o

				
			Such difference does not include impacts related to any changes in the High Value Order Subcontractor’s scope, design, quantities, specifications or terms and conditions.

			

 

	 	
			●

				
			If a framework agreement or similar agreement is currently in place between Owner or its affiliate and High Value Order Subcontractor or its affiliates, such Original Combined HVO Order and Updated Combined HVO Order are in compliance with such agreements.

			

 

 

This notice is provided and executed by an authorized representative of the High Value Order Subcontractor.

 

 

Sincerely,

 

________________________________

Name: ___________________

                                                             Title: ____________________

                                                             Date: ____________________

 

 

 

 

 

 

 

 

cc:                  [***], Rio Grande LNG, LLC, 1000 Louisiana Street, 39th Floor, Houston, TX 77002

                       [         ], Bechtel Energy Inc., 3000 Post Oak Boulevard, Houston, TX 77056

                       [***], Bechtel Energy Inc., 3000 Post Oak Boulevard, Houston, TX 77056

 

 

 

 

 

 

 

 

 

LL-15Document

Exhibit 10.1

Material indicated with a “[***]” has been omitted from this exhibit because it is both (i) not material and (ii) would likely cause competitive harm to the company if publicly disclosed.

Execution Version

Exhibit A - The Hagerty Group, LLC Fourth Amendment
			
	

AMENDED AND RESTATED CREDIT AGREEMENT
dated as of
December 12, 2018
among
THE HAGERTY GROUP, LLC,
The Lenders Party Hereto
and
JPMORGAN CHASE BANK, N.A.,
as Administrative Agent, Sole Bookrunner and Sole Lead Arranger 
			
	

TABLE OF CONTENTS
Page
						
	ARTICLE I DEFINITIONS
	1

	SECTION 1.01.    Defined Terms
	1

	SECTION 1.02.    Classification of Loans and Borrowings
	48

	SECTION 1.03.    Terms Generally
	48

	SECTION 1.04.    Accounting Terms; GAAP
	48

	SECTION 1.05.    Interest Rates; Benchmark Notification
	49

	SECTION 1.06.    Letters of Credit
	50

	SECTION 1.07.    Divisions
	50

	SECTION 1.08.    Limited Condition Transactions
	50

	SECTION 1.09.    Pro Forma Basis
	51

	ARTICLE II THE CREDITS
	52

	SECTION 2.01.    Commitments
	52

	SECTION 2.02.    Loans and Borrowings
	52

	SECTION 2.03.    Requests for Borrowings
	53

	SECTION 2.04.    Swingline Loans
	54

	SECTION 2.05.    Letters of Credit
	55

	SECTION 2.06.    Funding of Borrowings
	60

	SECTION 2.07.    Interest Elections
	61

	SECTION 2.08.    Termination and Reduction of Commitments; Increase of Commitments.
	62

	SECTION 2.09.    Repayment of Loans; Evidence of Debt
	64

	SECTION 2.10.    Prepayment of Loans
	65

	SECTION 2.11.    Fees
	66

	SECTION 2.12.    Interest
	67

	SECTION 2.13.    Alternate Rate of Interest; Illegality.
	67

	SECTION 2.14.    Increased Costs
	70

	SECTION 2.15.    Break Funding Payments
	71

	SECTION 2.16.    Withholding Taxes; Gross Up.
	72

	SECTION 2.17.    Payments Generally; Allocation of Proceeds; Sharing of Set-offs
	76

	SECTION 2.18.    Mitigation Obligations; Replacement of Lenders.
	78

	SECTION 2.19.    Defaulting Lenders
	80

	SECTION 2.20.    Returned Payments
	82

	SECTION 2.21.    Banking Services and Swap Agreements
	83

	ARTICLE III REPRESENTATIONS AND WARRANTIES
	83

	SECTION 3.01.    Organization; Powers
	83

	SECTION 3.02.    Authorization; Enforceability
	83

	SECTION 3.03.    Governmental Approvals; No Conflicts
	83

	SECTION 3.04.    Financial Condition; No Material Adverse Change
	84

	SECTION 3.05.    Properties
	84

	SECTION 3.06.    Litigation and Environmental Matters
	84

	SECTION 3.07.    Compliance with Laws and Agreements
	85

i

						
	SECTION 3.08.    Investment Company Status
	85

	SECTION 3.09.    Taxes
	85

	SECTION 3.10.    ERISA
	85

	SECTION 3.11.    Disclosure
	85

	SECTION 3.12.    Solvency
	86

	SECTION 3.13.    Security Interest in Collateral
	86

	SECTION 3.14.    Labor Disputes
	87

	SECTION 3.15.    No Default
	87

	SECTION 3.16.    Federal Reserve Regulations
	87

	SECTION 3.17.    Subordinated Debt
	87

	SECTION 3.18.    Anti-Corruption Laws and Sanctions
	87

	SECTION 3.19.    Affected Financial Institutions
	88

	SECTION 3.20.    [Reserved]
	88

	SECTION 3.21.    Plan Assets; Prohibited Transactions
	88

	ARTICLE IV CONDITIONS
	88

	SECTION 4.01.    Effective Date
	88

	SECTION 4.02.    Each Credit Event
	89

	ARTICLE V AFFIRMATIVE COVENANTS	90

	SECTION 5.01.    Financial Statements; Ratings Change and Other Information
	90

	SECTION 5.02.    Notices of Material Events
	92

	SECTION 5.03.    Existence; Conduct of Business
	93

	SECTION 5.04.    Payment of Taxes
	94

	SECTION 5.05.    Maintenance of Properties; Insurance
	94

	SECTION 5.06.    Books and Records; Inspection Rights
	94

	SECTION 5.07.    Compliance with Laws
	95

	SECTION 5.08.    Use of Proceeds and Letters of Credit
	95

	SECTION 5.09.    Collateral Security; Further Assurances
	95

	SECTION 5.10.    Change of Name or Location; Change of Fiscal Year
	96

	SECTION 5.11.    Additional Covenants
	97

	SECTION 5.12.    [Reserved]
	97

	SECTION 5.13.    Depository Banks
	97

	SECTION 5.14.    Anti-Corruption Laws
	97

	ARTICLE VI NEGATIVE COVENANTS
	97

	SECTION 6.01.    Indebtedness
	97

	SECTION 6.02.    Liens
	100

	SECTION 6.03.    Fundamental Changes
	102

	SECTION 6.04.    Investments, Loans, Advances, Guarantees and Acquisitions
	105

	SECTION 6.05.    Swap Agreements
	109

	SECTION 6.06.    Restricted Payments
	109

	SECTION 6.07.    Transactions with Affiliates
	111

	SECTION 6.08.    Restrictive Agreements
	113

	SECTION 6.09.    [Reserved]
	115

ii

						
	SECTION 6.10.    Amendments to Certain Agreements
	115

	SECTION 6.11.    Prepayment of Indebtedness; Subordinated Debt
	115

	SECTION 6.12.    [Reserved]
	116

	SECTION 6.13.    Financial Covenants
	116

	SECTION 6.14.    Permitted SPAC Transaction
	116

	ARTICLE VII EVENTS OF DEFAULT
	116

	SECTION 7.01.    Events of Default
	116

	SECTION 7.02.    Equity Cure
	119

	ARTICLE VIII THE ADMINISTRATIVE AGENT
	120

	SECTION 8.01.    Authorization and Action.
	120

	SECTION 8.02.    Administrative Agent’s Reliance, Indemnification, Etc.
	123

	SECTION 8.03.    Posting of Communications.
	124

	SECTION 8.04.    The Administrative Agent Individually
	125

	SECTION 8.05.    Successor Administrative Agent.
	126

	SECTION 8.06.    Acknowledgements of Lenders and Issuing Banks.
	127

	SECTION 8.07.    Collateral Matters.
	129

	SECTION 8.08.    Credit Bidding
	130

	SECTION 8.09.    Certain ERISA Matters.
	131

	SECTION 8.10.    Flood Laws
	133

	ARTICLE IX MISCELLANEOUS	133

	SECTION 9.01.    Notices.
	133

	SECTION 9.02.    Waivers; Amendments
	136

	SECTION 9.03.    Expenses; Indemnity; Damage Waiver
	138

	SECTION 9.04.    Successors and Assigns
	140

	SECTION 9.05.    Survival
	146

	SECTION 9.06.    Counterparts; Integration; Effectiveness
	146

	SECTION 9.07.    Severability
	148

	SECTION 9.08.    Right of Setoff
	148

	SECTION 9.09.    Governing Law; Jurisdiction; Consent to Service of Process
	148

	SECTION 9.10.    WAIVER OF JURY TRIAL
	149

	SECTION 9.11.    Headings
	150

	SECTION 9.12.    Confidentiality
	150

	SECTION 9.13.    Several Obligations; Nonreliance; Violation of Law
	151

	SECTION 9.14.    USA PATRIOT Act
	151

	SECTION 9.15.    Interest Rate Limitation
	151

	SECTION 9.16.    Disclosure
	152

	SECTION 9.17.    Amendment and Restatement
	152

	SECTION 9.18.    Acknowledgement and Consent to Bail-In of Affected Financial Institutions
	152

	SECTION 9.19.    Acknowledgement Regarding Any Supported QFCs
	152

	SECTION 9.20.    No Fiduciary Duty, etc.
	153

	SECTION 9.21.    Marketing Consent
	154

	SECTION 9.22.    No Conflict
	154

iii

SCHEDULES:
									
	Commitment Schedule
	Schedule 1.01
-
Permitted Intercompany Activities
	Schedule 3.05	-	Subsidiaries and Joint Ventures
	Schedule 3.06	-	Disclosed Matters
	Schedule 3.17	-	Subordinated Debt Documents
	Schedule 6.01	-	Existing Indebtedness
	Schedule 6.02	-	Existing Liens
	Schedule 6.04	-	Existing Investments, Loans and Advances
	Schedule 6.07	-	Transactions with Affiliates
	Schedule 6.08	-	Restrictive Agreements

EXHIBITS:
									
	Exhibit A	-	Form of Assignment and Assumption
	Exhibit B	-	Compliance Certificate
	Exhibit C-1	-	U.S. Tax Compliance Certificate (For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)
	Exhibit C-2	-	U.S. Tax Compliance Certificate (For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)
	Exhibit C-3	-	U.S. Tax Compliance Certificate (For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)
	Exhibit C-4	-	U.S. Tax Compliance Certificate (For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)

iv

AMENDED AND RESTATED CREDIT AGREEMENT, dated as of December 12, 2018 (this “Agreement”), among THE HAGERTY GROUP, LLC, a Delaware limited liability company, the Lenders party hereto, and JPMORGAN CHASE BANK, N.A., as Administrative Agent.
RECITALS
1.The Hagerty Group, LLC, Hagerty Holding Corp., the lenders party thereto, and JPMorgan Chase Bank, N.A. entered into that certain Credit Agreement dated as of July 30, 2010 (as amended from time to time, the “Existing Credit Agreement”).
2.The Hagerty Group, LLC, Hagerty Holding Corp., the lenders party thereto, and JPMorgan Chase Bank, N.A. wish to remove Hagerty Holding Corp. as a borrower under the Existing Credit Agreement and have The Hagerty Group, LLC as the sole borrower (with Hagerty Holding Corp. being removed as a party to this Agreement), and the parties hereto, and Hagerty Holding Corp. by separate agreement, wish to amend and restate the Existing Credit Agreement in its entirety as set forth herein.
In consideration of the mutual agreements, provisions and covenants contained herein, the parties hereto (and Hagerty Holding Corp. by separate agreement) agree, subject to the fulfillment of the conditions precedent set forth in this Agreement, that the Existing Credit Agreement hereby is amended and restated in its entirety as follows:
ARTICLE 1
DEFINITIONS
SECTION 1.0a.Defined Terms.  As used in this Agreement, the following terms have the meanings specified below:
“ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, is bearing interest at a rate determined by reference to the Alternate Base Rate.
“Acquisition” means any transaction, or any series of related transactions, consummated on or after the date of this Agreement, by which the Borrower or any of its Subsidiaries (i) acquires all or substantially all of the assets of any Person or all or substantially all of the assets of a division, line of business or branch of such Person, whether through purchase of assets, merger or otherwise or (ii) directly or indirectly acquires (in one transaction or as the most recent transaction in a series of transactions) at least a majority (in number of votes) of the Equity Interests of a Person (including with respect to an Investment in a Subsidiary or joint venture that serves to increase the Borrower’s or its Subsidiaries’ respective ownership of Equity Interests therein).
“Adjusted Daily Simple SOFR” means an interest rate per annum equal to (a) the Daily Simple SOFR, plus (b) 0.10% .
“Adjusted Term SOFR Rate” means, for any Interest Period, an interest rate per annum equal to (a) the Term SOFR Rate for such Interest Period, plus (b) 0.10%.
“Administrative Agent” means JPMCB, in its capacity as administrative agent for the Lenders hereunder.
“Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent.

“Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK Financial Institution.
“Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the specified Person.
“Agent-Related Person” has the meaning assigned to such term in Section 9.03(d).
“Aggregate Commitments” means, at any time, the Commitments of all the Lenders in effect as of such time.
“Aldel Financial” means Aldel Financial Inc., a Delaware corporation 
“Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the NYFRB Rate in effect on such day plus 1⁄2 of 1%, and (c) the Adjusted Term SOFR Rate for a one-month Interest Period as published two (2) U.S. Government Securities Business Days prior to such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1%, provided that, for the purpose of this definition, the Adjusted Term SOFR Rate for any day shall be based on the Term SOFR Reference Rate  at approximately 5:00 a.m. Chicago time on such day (or any amended publication time for the Term SOFR Reference Rate, as specified by the CME Term SOFR Administrator in the Term SOFR Reference Rate methodology).  Any change in the Alternate Base Rate due to a change in the Prime Rate, the NYFRB Rate or the Adjusted Term SOFR Rate shall be effective from and including the effective date of such change in the Prime Rate, the NYFRB Rate or the Adjusted Term SOFR Rate, respectively.  If the Alternate Base Rate is being used as an alternate rate of interest pursuant to Section 2.13 (for the avoidance of doubt, only until the Benchmark Replacement has been determined pursuant to Section 2.13(b)), then the Alternate Base Rate shall be the greater of clause (a) and (b) above and shall be determined without reference to clause (c) above.  For the avoidance of doubt, if the Alternate Base Rate as determined pursuant to the foregoing would be less than 1.00%, such rate shall be deemed to be 1.00% for purposes of this Agreement.
“Annual Permitted Distribution Amount” means (a) with respect to Fiscal Year ending December 31, 2020, $4,000,000 and (b) with respect to each Fiscal Year thereafter, an amount equal to the Annual Permitted Distribution Amount with respect to the immediately preceding Fiscal Year multiplied by an amount equal to one plus an amount expressed as a decimal, equal to the percentage increase, if any, of the Consumer Price Index with respect to such immediately preceding year, determined in a manner reasonably acceptable to the Administrative Agent.
“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to the Borrower or its Subsidiaries from time to time concerning or relating to bribery or corruption.
“Applicable Margin” means, for any day, with respect to any ABR Loan or Term Benchmark Loan or with respect to the commitment fees payable under Section 2.11(a) or Letter of Credit fees payable under Section 2.11(b), as the case may be, the Applicable Margin per annum set forth below under the caption “Applicable Margin – ABR Loans”, “Applicable Margin – Adjusted Term SOFR Rate Loans and Letters of Credit” or “Commitment Fee Rate”, as the case may be, based upon the Net Leverage Ratio as of the most recent determination date:
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	Level	Net Leverage Ratio	Applicable Margin - Adjusted Term SOFR Rate Loans and Letters of Credit	Commitment Fee Rate	Applicable Margin - ABR Loans
	I	[***]	[***]	[***]	[***]
	II	[***]	[***]	[***]	[***]
	III	[***]	[***]	[***]	[***]
	IV	[***]	[***]	[***]	[***]
	V	[***]	[***]	[***]	[***]

The Applicable Margin shall be determined in accordance with the foregoing table based on the Net Leverage Ratio as determined in the then most recent quarterly financial statements for the first three Fiscal Quarters of each Fiscal Year and the audited year-end financial statements for the last Fiscal Quarter (in each case calculated on a trailing four quarter basis) of the Borrower.  Adjustments, if any, to the Applicable Margin shall be effective five Business Days after the Administrative Agent is scheduled to receive the applicable financials under Section 5.01(a) or (b) and Compliance Certificate under Section 5.01(c).  Notwithstanding anything herein to the contrary, (a) the Applicable Margin may be set at Level I at the option of the Administrative Agent or at the request of the Required Lenders if an Event of Default exists, (b) the Applicable Margin shall be set at Level III as of the Third Amendment Effective Date and the Applicable Margin shall be adjusted for the first time based on the financial statements for the Fiscal Quarter ending September 30, 2021, and (c) the Applicable Margin shall be set at Level II as of the Fourth Amendment Effective Date and the Applicable Margin shall be adjusted for the first time based on the financial statements for the Fiscal Quarter ending September 30, 2022.

If at any time the Administrative Agent determines that the financial statements upon which the Applicable Margin was determined were incorrect (whether based on a restatement, fraud or otherwise), or any ratio or compliance information in a compliance certificate or other certification was incorrectly calculated, relied on incorrect information or was otherwise not accurate, true or correct, (i) if the proper calculation of the Net Leverage Ratio would have resulted in higher pricing for such period, then the Borrower shall be required to retroactively pay any additional amount that the Borrower would have been required to pay if such financial statements, compliance certificate or other information had been accurate and/or computed correctly at the time they were delivered and (ii) if the proper calculation of the Net Leverage Ratio would have resulted in lower pricing for such period, then neither the Administrative Agent nor any Lender shall have any obligation to return any additional amounts previously received to the Borrowers; provided that if, as a result of any restatement or other event a proper calculation of the Net Leverage Ratio would have resulted in higher pricing for one or more periods and lower pricing for one or more other periods (due to the shifting of income or expenses from one period to another period or any similar reason), then the amount payable by the Borrower pursuant to clause (i) above shall be based upon the excess, if any, of such amounts that should have been paid for all applicable periods over such amounts actually paid for all such periods. 

“Applicable Parties” has the meaning assigned to such term in Section 8.03(c).
3

“Applicable Percentage” means, with respect to any Lender, with respect to Revolving Loans, LC Exposure or Swingline Loans, a percentage equal to a fraction the numerator of which is such Lender’s Commitment and the denominator of which is the aggregate Commitment of all Lenders (if the Commitments have terminated or expired, the Applicable Percentages shall be determined based upon such Lender’s share of the aggregate Revolving Exposures at that time); provided that, in accordance with Section 2.19, so long as any Lender shall be a Defaulting Lender, such Defaulting Lender’s Commitment shall be disregarded in the calculations above.
“Approved Electronic Platform” has the meaning assigned to such term in Section 8.03(a).
“Approved Fund” has the meaning assigned to such term in Section 9.04.
“Arranger” means JPMCB, in its capacity as sole bookrunner and sole lead arranger hereunder.
“Assignment and Assumption” means an assignment and assumption agreement entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 9.04), and accepted by the Administrative Agent, in the form of Exhibit A or any other form (including electronic records generated by the use of an electronic platform) approved by the Administrative Agent in consultation with the Borrower.
“Available Commitment” means, at any time, an amount equal to the Commitment then in effect minus the Revolving Exposure of all Lenders at such time (calculated, with respect to any Defaulting Lender, as if such Defaulting Lender had funded its Applicable Percentage of all outstanding Borrowings); it being understood and agreed that any Lender’s Swingline Exposure shall not be deemed to be a component of the Revolving Exposure for purposes of calculating the commitment fee under Section 2.11(a).
“Availability Period” means the period from and including the Effective Date to but excluding the earlier of the Revolving Credit Maturity Date or the date that the Commitments are terminated pursuant to the terms hereof.
“Available Tenor” means, as of any date of determination and with respect to the then-current Benchmark, as applicable, any tenor for such Benchmark (or component thereof) or payment period for interest calculated with reference to such Benchmark (or component thereof), as applicable, that is or may be used for determining the length of an Interest Period for any term rate or otherwise, for determining any frequency of making payments of interest calculated pursuant to this Agreement as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of “Interest Period” pursuant to clause (e) of Section 2.13.
“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.
“Bail-In Legislation” means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).
4

“Banking Services” means each and any of the following bank services provided to the Borrower or any Subsidiary: (a) credit cards for commercial customers (including, without limitation, “commercial credit cards” and purchasing cards), (b) stored value cards, (c) merchant processing services, and (d) treasury management services (including, without limitation, controlled disbursement, automated clearinghouse transactions, return items, overdrafts and interstate depository network services).
“Banking Services Obligations” means any and all obligations of the Borrower or any Subsidiary with respect to any Banking Services provided by any Lender or any of its Affiliates, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor) in connection with Banking Services.     
“Bankruptcy Code” means the Federal Bankruptcy Reform Act of 1978 (11 U.S.C. §101, et seq.) and the regulations issued from time to time thereunder.
“Bankruptcy Event” means, with respect to any Person, when such Person becomes the subject of a voluntary or involuntary bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator, custodian, assignee for the benefit of creditors or similar Person charged with the reorganization or liquidation of its business, appointed for it, or, in the good faith determination of the Administrative Agent, has taken any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any such proceeding or appointment, or has had any order for relief in such proceeding entered in respect thereof, provided that a Bankruptcy Event shall not result solely by virtue of any ownership interest, or the acquisition of any ownership interest, in such Person by a Governmental Authority or instrumentality thereof, unless such ownership interest results in or provides such Person with immunity from the jurisdiction of courts within the U.S. or from the enforcement of judgments or writs of attachment on its assets or permits such Person (or such Governmental Authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made by such Person.
“Benchmark” means, initially,  with respect to any (i) RFR Loan, the Daily Simple SOFR or (ii) Term Benchmark Loan, Term SOFR Rate; provided that if a Benchmark Transition Event, and the related Benchmark Replacement Date have occurred with respect to  the Daily Simple SOFR or Term SOFR Rate, as applicable or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to clause (b) of Section 2.13.
“Benchmark Replacement” means, for any Available Tenor, the first alternative set forth in the order below that can be determined by the Administrative Agent for the applicable Benchmark Replacement Date:
(i)the sum of Adjusted Daily Simple SOFR;
(ii)the sum of:  (a) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower as the replacement for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement for the then-current Benchmark for  dollar-denominated syndicated credit facilities at such time in the United States and (b) the related Benchmark Replacement Adjustment.
5

If the Benchmark Replacement as determined pursuant to clause (1) or (2) above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.
“Benchmark Replacement Adjustment” means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement for any applicable Interest Period and Available Tenor for any setting of such Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower for the applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body on the applicable Benchmark Replacement Date and/or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for dollar-denominated syndicated credit facilities at such time. 
“Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement and/or any Term Benchmark Loan, any technical, administrative or operational changes (including changes to the definition of “Alternate Base Rate,” the definition of “Business Day,” the definition of “U.S. Government Securities Business Day,” the definition of “Interest Period,” timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of such Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents). 
“Benchmark Replacement Date” means, with respect to any Benchmark the earliest to occur of the following events with respect to such then-current Benchmark:
(i)in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof);
(i)in the case of clause (3) of the definition of “Benchmark Transition Event,” the first date on which such Benchmark (or the published component used in the calculation thereof) has been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be no longer representative; provided, that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such clause (3) and even if any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date;
For the avoidance of doubt, (i) if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time 
6

for such determination and (ii) the “Benchmark Replacement Date” will be deemed to have occurred in the case of clause (1) or (2) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).
“Benchmark Transition Event” means, with respect to any Benchmark, the occurrence of one or more of the following events with respect to such then-current Benchmark:
(ii)a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the  published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);
(i)a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the  published component used in the calculation thereof), the Federal Reserve Board, the NYFRB, the CME Term SOFR Administrator, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), in each case, which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or
(ii)a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are no longer, or as of a specified future date will no longer be, representative.
For the avoidance of doubt, a “Benchmark Transition Event” will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).
“Benchmark Unavailability Period” means, with respect to any Benchmark, the period (if any) (x) beginning at the time that a Benchmark Replacement Date pursuant to clauses (1) or (2) of that definition has occurred if, at such time, no Benchmark Replacement has replaced such then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 2.13 and (y) ending at the time that a Benchmark Replacement has replaced such then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 2.13.
“Beneficial Ownership Certification” means a certification regarding beneficial ownership or control as required by the Beneficial Ownership Regulation.
“Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.
“Benefit Plan” means any of (a) an “employee benefit plan” (as defined in Section 3(3) of ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in Section 4975 of the Code to which Section 4975 of the Code applies, and (c) any Person whose assets include (for purposes 
7

of the Plan Asset Regulations or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”.
“BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.
“Board of Directors” means:  (1) with respect to a corporation, the board of directors of the corporation or such directors or committee serving a similar function; (2) with respect to a limited liability company, the board of managers of the company or such managers or committee serving a similar function; (3) with respect to a partnership, the Board of Directors of the general partner of the partnership; and (4) with respect to any other Person, the managers, directors, trustees, board or committee of such Person or its owners serving a similar function.
“Borrower” means The Hagerty Group, LLC, a Delaware limited liability company.
“Borrowing” means (a) Revolving Loans of the same Type, made, converted or continued on the same date and, in the case of Term Benchmark Loans, as to which a single Interest Period is in effect and (b) a Swingline Loan.
“Borrowing Request” means a request by the Borrower for a Borrowing in accordance with Section 2.03.
“Business Day” means any day (other than a Saturday or a Sunday)on which  banks are open for business in Detroit, Michigan, Chicago, Illinois or New York, New York; provided that, when used in connection with RFR Loans and any interest rate settings, fundings, disbursements, settlements or payments of any such RFR Loan, or any other dealings of such RFR Loan, any such day that is only an U.S. Government Securities Business Day
“Capital Expenditures” means, without duplication, any expenditure or commitment to expend money for any purchase or other acquisition of any asset which would be classified as a fixed or capital asset on a consolidated balance sheet of the Loan Parties prepared in accordance with GAAP.
“Capital Lease Obligations” of any Person means, subject to Section 1.04, the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital or financing leases on a balance sheet of such Person under GAAP ASC 840 or 842, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP.
“CFC Holdco” means any direct or indirect Domestic Subsidiary, (a) substantially all of the assets of which consist of Equity Interests or indebtedness of one or more direct or indirect Foreign Subsidiaries or (b) that is treated as a disregarded entity for United States federal income tax purposes, that has no material assets other than Equity Interests or indebtedness of one or more direct or indirect Foreign Subsidiaries.

“Change in Control” means: 
(1)at any time prior to a Qualified Public Offering, the Permitted Holders shall cease to own and control, directly or indirectly, more than 50% of the economic and voting Equity Interests of the Borrower on a fully diluted basis; or 
8

(2)at any time after a Qualified Public Offering, any Person or “group” within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act (other than (x) any employee benefit plan of such person and its subsidiaries and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan and (y) any combination of Permitted Holders) shall have, directly or indirectly, acquired beneficial ownership of voting Equity Interests of the Borrower representing more than the greater of (i) 35% of the fully diluted voting rights of voting Equity Interests of the Borrower and (ii) the percentage of the voting rights of voting Equity Interests of the Borrower held by the Permitted Holders.
(3)at any time after a Qualified Public Offering, any Person or “group” within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act (other than (x) any employee benefit plan of such person and its subsidiaries and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan and (y) any combination of Permitted Holders) shall have, directly or indirectly, acquired beneficial ownership of voting Equity Interests of Aldel Financial representing more than the greater of (i) 35% of the fully diluted voting rights of voting Equity Interests of Aldel Financial and (ii) the percentage of the voting rights of voting Equity Interests of Aldel Financial held by the Permitted Holders.
    Notwithstanding the foregoing, (a) the consummation of the Permitted SPAC Transaction shall not result in a Change in Control and (b) the reorganization of the ownership of the Borrower or any other equity owner of the Borrower (including the insertion of any Holdco Entity) shall not constitute a Change in Control so long as, after giving effect to such reorganization, no “Change in Control” would result based on the ultimate indirect beneficial ownership of the Borrower.
“Change in Law” means the occurrence after the date of this Agreement of any of the following:  (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation or application thereof by any Governmental Authority or (c) compliance by any Lender or the Issuing Bank (or by any lending office of such Lender or by such Lender’s or the Issuing Bank’s holding company, if any) with any request, guideline, requirement or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement; provided that, notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements or directives thereunder or issued in connection therewith or in the implementation thereof, and (y) all requests, rules, guidelines, requirements or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted, issued or implemented.
“Charge” means any loss, cost, fee, charge, expense, accrual or reserve of any kind.
“Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans or Swingline Loans.
“CME Term SOFR Administrator” means CME Group Benchmark Administration Limited as administrator of the forward-looking term SOFR (or a successor administrator).
“Code” means the Internal Revenue Code of 1986, as amended from time to time.
“Collateral” means any and all present or future real or personal property owned or leased by a Person, which property is covered by the Collateral Documents and any and all other property of any Loan Party, now existing or hereafter acquired, that may at any time be, become, 
9

or be intended to be, subject to a security interest or Lien in favor of Administrative Agent, on behalf of itself and the Lenders and other Secured Parties, to secure the Secured Obligations, other than any Excluded Property.
“Collateral Documents” means, collectively, the Security Agreements, the Mortgages and all other agreements, instruments and documents executed in connection with this Agreement at any time (either before, concurrently or after the Effective Date and including whether delivered in connection with the Existing Credit Agreement or this Agreement at any time) that are intended to create or evidence Liens to secure the Secured Obligations, including, without limitation, all other security agreements, pledge agreements, mortgages, deeds of trust, pledges, collateral assignments and financing statements.
“Commitment” means, with respect to each Lender, the commitment, if any, of such Lender to make Revolving Loans and to acquire participations in Letters of Credit and Swingline Loans hereunder, expressed as an amount representing the maximum possible aggregate amount of such Lender’s Revolving Exposure hereunder, as such commitment may be (a) reduced or increased from time to time pursuant to Section 2.08(a), (b) or (e), (b) increased from time to time pursuant to Section 2.08(e), (c) reduced or increased from time to time as set forth on the Commitment Schedule and (d) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04.  The initial amount of each Lender’s Commitment is set forth on the Commitment Schedule, or in the Assignment and Assumption (or other documentation or record) pursuant to which such Lender shall have assumed its Commitment, as applicable.  The aggregate amount of the Lenders’ Commitments as of the Third Amendment Effective Date is $230,000,000.
“Commitment Schedule” means the Schedule attached hereto and identified as such.
“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.
“Communications” has the meaning assigned to such term in Section 8.03(c).
“Compliance Certificate” means a certificate of a Financial Officer of the Borrower in substantially the form of Exhibit B.
“Consolidated EBITDA” means, with respect to any period:
(1)the Consolidated Net Income for such period, plus
(4)the sum of, in each case to the extent deducted (other than in the case of clauses (b)(vii) and (b)(viii) to the extent the items set forth therein have not been deducted from Consolidated Net Income) in the calculation of such Consolidated Net Income, but without duplication:
(a)interest expense for such period;
(b)income tax expense (including (A) penalties and interest related to any such Tax or arising from any Tax examination, (B) pursuant to any Tax sharing arrangement or as a result of any Tax distribution and (C) in respect of repatriated funds) of such Person during such period and any distributions by the Borrower with respect to the foregoing;
(c)depreciation expense for such period;
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(d)amortization expense for such period;
(e)any other non-cash Charges for such period (but excluding any non-cash Charge in respect of an item that was included in Consolidated Net Income in a prior period and any non-cash charge that relates to the write-down or write-off of inventory);
(f)the amount of discretionary executive compensation paid to members of the Borrower outside the ordinary course of business in excess of an amount to be determined and acceptable to the Administrative Agent; 
(g)one-time or extraordinary, non-recurring or unusual Charges including, without limitation, in connection with (i) Permitted Acquisitions or similar Investments during such period, (ii) the consolidation or closing of any facility/location during such period, (iii) professional services and capital expense items, (iv)  expenses consisting of internal software development costs that are expensed during the period but could have been capitalized under alternative accounting policies in accordance with GAAP, and (v) Public Company Costs (collectively, “Cash Non-Recurring Charges”); provided, that the aggregate amount of Cash Non-Recurring Charges added back under this clause (vii) shall not exceed (x) $25,000,000 for any period ending on or prior to December 31, 2024, and (y) fifteen percent (15.0%) of EBITDA (calculated before giving effect to such add backs) in the aggregate for any such period thereafter;
(h)an amount equal to (A) the proceeds of business interruption insurance in an amount representing the earnings for the applicable period that such proceeds are intended to replace, (B) fees, costs and expenses to the extent reimbursable by third parties pursuant to any indemnification, insurance, reimbursement or similar agreement or arrangement and (C) other Charges reimbursable by a third party (in each case under this clause (x), whether or not received so long as such Person in good faith expects to receive the same within the next four Fiscal Quarters (it being understood that to the extent not actually received within such Fiscal Quarters, such proceeds shall be deducted in calculating Consolidated EBITDA for such Fiscal Quarters));
(i)reasonable transaction expenses incurred in connection with the Permitted SPAC Transaction in an aggregate amount not to exceed $45,000,000 that are incurred within 120 days of the Permitted SPAC Transaction Effective Date;
(j)reasonable expenses, accruals and payments incurred in connection with Acquisitions, Investments, restricted payments, dispositions, consolidations, restructurings, recapitalizations, or issuances or amendments of indebtedness or equity permitted under the Loan Documents, whether or not consummated,
(k)reasonable expenses and fees paid to Administrative Agent and the Lenders in connection with the administration of the Loan Documents (including any amendment, restatement, amendment and restatement, supplement or modification thereto or waiver or consent thereunder) and similar fees and expenses paid under the definitive documentation for other Indebtedness permitted hereunder, 
(l)losses from dispositions outside the ordinary course; and
(m)expenses during such period in connection with earnouts and other deferred payments in connection with any Permitted Acquisition or other Investments permitted hereunder, to the extent required to be included in the calculation of Consolidated Net Income in accordance with GAAP as an accounting adjustment to the 
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extent that the actual amount payable or paid in respect of such earnout or other deferred payment exceeds the liability booked by the applicable Person therefor; minus
(5)the sum of, to the extent included in Consolidated Net Income and without duplication:
(a)non-cash income or non-cash gains realized other than in the ordinary course of business;
(b)the income of any Subsidiary (other than a Guarantor) to the extent that the declaration or payment of Restricted Payments or transfers or loans by such Subsidiary is not at the time permitted by operation of the terms of its charter or any agreement, instrument, judgment, decree, statute, rule or governmental regulation applicable to such Subsidiary; 
(c)the income of any Permitted Joint Venture, except (x) to the extent of the amount of Restricted Payments actually paid in cash to the Borrower or a Guarantor by such Permitted Joint Venture or (y) the income of any Permitted Joint Venture if the Borrower owns 60% or more of the Equity Interests thereof and has granted the Administrative Agent a first priority security interest in 60% or more of the aggregate Equity Interests of such Permitted Joint Venture (each a “Qualified Permitted Joint Venture”), provided that the portion of Consolidated EBITDA calculated under this definition for any four consecutive Fiscal Quarter period that is attributable to all Qualified Permitted Joint Ventures shall be limited to the lesser of (1) 10% of such Consolidated EBITDA or (2) $10,000,000;
(d)extraordinary, non-recurring or unusual gains;
(e)gains from dispositions outside the ordinary course, all calculated for the Borrower and its Subsidiaries on a consolidated basis; and 
(f)the aggregate amount of the Permitted Reinsurance Subsidiary Dividend. 
“Consolidated Interest Expense” means, with reference to any period, the interest expense of the Borrower and its Subsidiaries calculated on a consolidated basis for such period and paid in cash during the relevant period.
“Consolidated Net Income” means, with respect to the Borrower and its Subsidiaries on a consolidated basis for any period, the consolidated net income (or loss) of the Borrower and its Subsidiaries for such period, excluding:
(6)the income (or deficit) of any Person accrued prior to the date it becomes a Subsidiary or is merged into or consolidated with the Borrower or any Subsidiary;
(7)the income (or deficit) of any Person (other than a Subsidiary) in which the Borrower or any Subsidiary has an ownership interest, except to the extent that any such income is actually received by the Borrower in the form of dividends or similar distributions;
(8)the undistributed earnings of any Subsidiary (other than a Loan Party), to the extent that the declaration or payment of dividends or similar distributions by such Subsidiary is not at the time permitted by the terms of any contractual obligation (other than under any Loan Document) or Requirement of Law applicable to such Subsidiary;
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(9)net gains or losses in respect of any hedge arrangements and/or derivative instrument;
(10)unrealized or realized net foreign currency translation or transaction gains or losses impacting net income (including, without limitation, currency re-measurements of indebtedness or other balance sheet items, any gains or losses from hedging agreements for currency exchange risk associated with the foregoing or any other currency related risk and any gain or loss resulting from revaluation of intercompany balances (including indebtedness and other balance sheet items) and any net gains or losses from hedge agreements for currency exchange risk associated with the above or any other currency-related risk); and
(11)(i) effects of adjustments (including, without limitation, the effects of such adjustments pushed down to such Person and its Subsidiaries) in the Borrower’s consolidated financial statements pursuant to resulting from the application of acquisition method, purchase and/or recapitalization accounting in relation to the Permitted SPAC Transaction, any consummated Permitted Acquisition or similar transaction or recapitalization accounting or the amortization or write-off of any amounts thereof including adjustments in component amounts required or permitted by GAAP (including, without limitation, in the inventory, property and equipment, software, goodwill, intangible assets, in-process research and development, deferred revenue, advanced billing and debt line items thereof) and (ii) the cumulative effect of a change in accounting principles (effected by way of either a cumulative adjustment or retroactive application) and/or any change resulting from the adoption of modification of accounting principles and/or policies in accordance with GAAP.
“Consolidated Net Indebtedness” means at any time the difference of (a) the Indebtedness of the type described in clauses (a), (b), (f), (g) (solely to the extent not reimbursed within three (3) Business Days of any drawing or funding thereunder), (h) and (l) of the definition of Indebtedness, minus (b) the lesser of (i) the aggregate amount of all Unrestricted Cash in excess of $15,000,000 or (ii) $50,000,000.
“Consumer Price Index” means the consumer price index with respect to all urban consumers within U.S. cities for all items but without seasonal adjustment, as determined and publicized by the Bureau of Labor Statistics of the United States Department of Labor (with such consumer price index bearing the label “CPI-U, US City Average, All Items:  NSA” as of the First Amendment Effective Date).
“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled” have meanings correlative thereto.
“Corresponding Tenor” with respect to any Available Tenor means, as applicable, either a tenor (including overnight) or an interest payment period having approximately the same length (disregarding business day adjustment) as such Available Tenor.
“Covered Entity” means any of the following:
(n)a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);
(o)a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R.§ 47.3(b); or
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(p)a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R.§ 382.2(b).
“Covered Party” has the meaning assigned to such term in Section 9.19.
“Credit Party” means the Administrative Agent, the Issuing Bank, the Swingline Lender or any other Lender. 
“Cure Amount” has the meaning assigned to it in Section 7.02.
“Cure Period” has the meaning assigned to it in Section 7.02. 
“Cure Right” has the meaning assigned to it in Section 7.02. 
“Daily Simple SOFR” means, for any day (a “SOFR Rate Day”), a rate per annum equal to SOFR for the day (such day “SOFR Determination Date”) that is five (5) U.S. Government Securities Business Days prior to (i) if such SOFR Rate Day is a U.S. Government Securities Business Day, such SOFR Rate Day or (ii) if such SOFR Rate Day is not a U.S. Government Securities Business Day, the U.S. Government Securities Business Day immediately preceding such SOFR Rate Day, in each case, as such SOFR is published by the SOFR Administrator on the SOFR Administrator’s Website; provided that if the Daily Simple SOFR as so determined would be less than the Floor, such rate shall be deemed to be equal to the Floor for the purposes of this Agreement.  Any change in Daily Simple SOFR due to a change in SOFR shall be effective from and including the effective date of such change in SOFR without notice to the Borrower.
“Default” means any event or condition which constitutes an Event of Default or which, upon notice, lapse of time or both would, unless cured, waived or remedied during such time, become an Event of Default.
“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.
“Defaulting Lender” means any Lender that (a) has failed, within two (2) Business Days of the date required to be funded or paid, to (i) fund any portion of its Loans, (ii) fund any portion of its participations in Letters of Credit or Swingline Loans or (iii) pay over to any Credit Party any other amount required to be paid by it hereunder, (b) has notified the Borrower or any Credit Party in writing, or has made a public statement to the effect, that it does not intend or expect to comply with any of its funding obligations under this Agreement or generally under other agreements in which it commits to extend credit, (c) has failed, within three (3) Business Days after request by a Credit Party, or the Borrower, acting in good faith, to provide a certification in writing from an authorized officer of such Lender that it will comply with its obligations (and is financially able to meet such obligations as of the date of certification) to fund prospective Loans and participations in then outstanding Letters of Credit and Swingline Loans, under this Agreement, provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon such Credit Party’s or the Borrower’s receipt of such certification in form and substance satisfactory to it and the Administrative Agent or (d)(i) has become or has a parent company that has become the subject of a Bankruptcy Event or (ii) has become the subject of a Bail-In Action.
“Disclosed Matters” means the actions, suits and proceedings and the environmental matters disclosed in Schedule 3.06.
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“Disposition” or “Dispose” means the sale, transfer, license, lease or other disposition (in one transaction or in a series of transactions and whether effected pursuant to a Division or otherwise) of any property by any Person (including any sale and leaseback transaction and any issuance of Equity Interests by a Subsidiary of such Person (other than issuances of Equity Interests to the Borrower or any Subsidiary of the Borrower)), including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith.
“Disqualified Equity Interests” means any Equity Interest that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable), or upon the happening of any event, matures or is mandatorily redeemable (other than for Qualified Equity Interests and cash in lieu of fractional shares of such Equity Interests), pursuant to a sinking fund obligation or otherwise, or redeemable at the option of the holder thereof, in whole or in part (other than for Qualified Equity Interests and cash in lieu of fractional shares of such Equity Interests), in each case, prior to the date that is ninety-one (91) days after the Revolving Credit Maturity Date in effect at the time of issuance of such Equity Interest, unless, in each case, such term, event or condition is subject to the Payment in Full of the Obligations; provided, that the foregoing shall not apply to (i) a redemption, conversion or exchange into equity interests that do not themselves constitute Disqualified Equity Interests, (ii) any offer to redeem or repurchase required to be made in connection with a change of control, initial public offering, Disposition or similar event or (iii) compensatory equity awards to directors, managers, officers and employees in which shares are withheld (redeemed) upon vesting or exercise to pay applicable withholding taxes or, in the case of an option, the exercise price of the option.
“Disqualified Lender” means (a) Persons, including those that are reasonably determined by the Borrower to be competitors of the Borrower or its subsidiaries, which are specifically identified by the Borrower to the Administrative Agent in writing and delivered in accordance with Section 9.01 prior to the Effective Date, (b) any other Person that is reasonably determined by the Borrower to be a competitor of the Borrower or its subsidiaries and which is specifically identified in a written supplement to the list of “Disqualified Lenders”, which supplement shall become effective two (2) Business Days after delivery thereof to the Administrative Agent in accordance with Section 9.01 and (c) in the case of the foregoing clauses (a) and (b), any of such entities’ Affiliates to the extent such Affiliates (w) are identified in writing from time to time by the Borrower, (x) are reasonably identifiable as Affiliates of such Persons based solely on the similarity of such Affiliates’ and such Persons’ names, (y) are known to be an Affiliate of such Person, or (z) solely in the case of Affiliates with respect to clause (b), are not bona fide debt investment funds. It is understood and agreed that (i) any supplement to the list of Persons that are Disqualified Lenders contemplated by the foregoing clause (b) shall not apply retroactively to disqualify any Persons that have previously acquired an assignment or participation interest in the Loans (but solely with respect to such Loans), (ii) the Administrative Agent shall have no responsibility or liability to determine or monitor whether any Lender or potential Lender is a Disqualified Lender and (iii) “Disqualified Lender” shall exclude any Person that the Borrower has designated as no longer being a “Disqualified Lender” by written notice delivered to the Administrative Agent from time to time in accordance with Section 9.01.
“Dividing Person” has the meaning assigned to such term in the definition of “Division.”
“Division” means the division of the assets, liabilities and/or obligations of a Person (the “Dividing Person”) among two or more Persons (whether pursuant to a “plan of division” or similar arrangement), which may or may not include the Dividing Person and pursuant to which the Dividing Person may or may not survive.
“Division Successor” means any Person that, upon the consummation of a Division of a Dividing Person, holds all or any portion of the assets, liabilities and/or obligations previously 
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held by such Dividing Person immediately prior to the consummation of such Division.  A Dividing Person which retains any of its assets, liabilities and/or obligations after a Division shall be deemed a Division Successor upon the occurrence of such Division.
“dollars” or “$” refers to lawful money of the U.S.
“Domestic Subsidiary” means any Subsidiary that is not a Foreign Subsidiary.
“DQ List” has the meaning assigned to such term in Section 9.04(e)(iv).
     “ECP” means an “eligible contract participant” as defined in Section 1(a)(18) of the Commodity Exchange Act or any regulations promulgated thereunder and the applicable rules issued by the Commodity Futures Trading Commission and/or the SEC.
“EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.
“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.
“EEA Resolution Authority” means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.
“Effective Date” means December 12, 2018.
“Electronic Signature” means an electronic sound, symbol, or process attached to, or associated with, a contract or other record and adopted by a Person with the intent to sign, authenticate or accept such contract or record.
“Electronic System” means any electronic system, including e-mail, e-fax, web portal access for the Borrower and any other Internet or extranet-based site, whether such electronic system is owned, operated or hosted by the Administrative Agent or the Issuing Bank and any of its respective Related Parties or any other Person, providing for access to data protected by passcodes or other security system.
“Eligible Assignee” means any Person that meets the requirements to be an assignee or participant under Section 9.04(b).
“Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to the environment, preservation or reclamation of natural resources, or the management, release or threatened release of any Hazardous Material or to health and safety matters.
“Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower or any Subsidiary directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or 
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threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.
“Equity Interests” means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such equity interest, but excluding any debt securities convertible into any of the foregoing.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder.
“ERISA Affiliate” means any trade or business (whether or not incorporated) that, together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the Code or Section 4001(14) of ERISA or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 414 of the Code.
“ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30 day notice period is waived); (b) the failure to satisfy the “minimum funding standard” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(d) of the Code or Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the Borrower or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal of the Borrower of any ERISA Affiliate from any Plan or Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice, concerning the imposition upon the Borrower of any ERISA Affiliate of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent, in critical status or in reorganization, within the meaning of Title IV of ERISA.
“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.
“Event of Default” has the meaning assigned to such term in Article VII.
“Exchange Act” means the Securities Exchange Act of 1934.
“Excluded Accounts” means:
(12)deposit accounts used exclusively for payroll, payroll taxes, tax accounts, deposit accounts holding deposits that constitute permitted liens, permitted escrow and other permitted fiduciary purposes and other employee wage and benefit payments to or for the Borrower’s and its subsidiaries’ employees;
(2)escrow accounts in the ordinary course of business;
(3)any zero balance account; 
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(4)any account used exclusively for funds held by any Loan Party in connection with employee stock option plans, or in trust for any director, officer or employee of the Loan Parties pursuant to any benefit plan maintained by any Loan Party (including any 401(k) or similar plans;
(5)any account used exclusively for amounts deposited in connection with any self-insurance program;
(6)any deposit account, securities account, commodities account or other account of any Loan Party to the extent solely and exclusively used to hold any cash or Permitted Investments pledged securing Liens described in Section 6.02;
(7)any account pledged to credit card processors or providers in connection with credit card processing arrangements;
(8)any other accounts with an average end of day balance less than $1,000,000 in the aggregate at any time outstanding for all such accounts; and 
(9)any other account that the Administrative Agent may agree in writing is an Excluded Account.
“Excluded Property” means: 
(13)governmental licenses or state or local franchises, charters and authorizations to the extent security interest is prohibited by applicable law or would result in the termination of or an event of default under any agreement, document or instrument pursuant to any “change of control” or similar provision;
(14)pledges and security interests prohibited by applicable law (after giving effect to the applicable anti-assignment provisions of the UCC or other applicable law), other than proceeds thereof, the assignment of which is expressly deemed effective under the UCC or other applicable law notwithstanding such prohibition; 
(15)any lease, license, permit or agreement to the extent that a grant of a security interest therein would violate or invalidate such lease, license, permit or agreement or create a right of termination in favor of any other party thereto or otherwise require consent thereunder (after giving effect to the applicable anti-assignment provisions of the UCC or other applicable law), other than proceeds thereof, the assignment of which is expressly deemed effective under the UCC or other applicable law notwithstanding such prohibition; 
(16)any assets to the extent a security interest in such assets could result in materially adverse tax consequences as reasonably determined by the Borrower and the Administrative Agent;
(17)any intent-to-use trademark application prior to the filing of a “Statement of Use” or “Amendment to Allege Use” with respect thereto;
(18)any property subject to a purchase money arrangement (including the acquisition, replacement, repair, maintenance, construction or improvement of any fixed or capital assets) or Capital Lease Obligation permitted to be incurred under the Agreement to the extent other Liens are prohibited;
(19)Excluded Accounts;
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(20)any fee-owned real property which has a fair market value of less than $5,000,000 (as reasonably estimated by the Borrower);
(21)property the pledge or security interest in which would require governmental (including regulatory) consent, approval, licensure or authorization, unless such consent, approval, licensure or authorization has been obtained by the Loan Parties; provided, however, that it is understood and agreed that no Loan Party nor any of its subsidiaries shall be required to take any action or use any effort to obtain such consent, approval, licensure or authorization;
(22)the Equity Interests of (i) any Foreign Subsidiary or any CFC Holdco in excess of (x) sixty-five percent (65%) of the aggregate Equity Interests of such Foreign Subsidiary or CFC Holdco or (y) such greater percentage which will not result in an adverse tax consequence (as reasonably determined by Administrative Agent and Borrower) or (ii) any Permitted Joint Venture to the extent a pledge of the Equity Interests therein is not required pursuant to the definition thereof;
(23)leasehold interests in real property;
(24)Equity Interests (A) constituting Margin Stock or (B) issued by Persons that are not wholly-owned Subsidiaries of a Loan Party or Subsidiaries;
(25)tangible property located outside of the United States that was not transferred from the United States in contemplation of circumventing the obligation to provide Collateral hereunder (except to the extent a security interest can be perfected in such tangible property by filing a financing statement in the U.S.);
(26)motor vehicles, aircraft and other assets covered by certificates of title in each instance where perfection of a security interest therein requires the taking of any action beyond the filing of a UCC financing statement in the applicable jurisdiction;
(27)any commercial tort claim with a value of less than $1,000,000 individually;
(28)other assets where the cost of obtaining a security interest therein exceeds the practical benefit to the Lenders afforded thereby, in each case, as reasonably determined by the Borrower and the Administrative Agent.  
Notwithstanding anything herein or the Collateral Documents to the contrary, Excluded Property shall not include any Proceeds (as defined in the UCC), substitutions or replacements of any Excluded Property (unless such Proceeds, substitutions or replacements would otherwise constitute Excluded Property referred to above).  In addition, notwithstanding anything in this Agreement or the other Loan Documents to the contrary, no Loan Party shall be required to take any action with respect to the creation or perfection of Liens (i) under the law of any jurisdiction outside of the United States with respect to any Collateral or (ii) to the extent the burden, difficulty, consequence or cost of creating or perfecting such Lien outweighs the benefit that would be afforded thereby as reasonably determined by the Administrative Agent in consultation with the Borrower (including after accounting for any adverse effects on taxes, interest deductibility, stamp duty, registration taxes and notarial costs).
“Excluded Subsidiary” means:
(1)any Subsidiary that (i) is not a wholly-owned Domestic Subsidiary of the Borrower or (ii) is a Foreign Subsidiary;
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(2)any CFC Holdco and any Domestic Subsidiary of a Foreign Subsidiary or CFC Holdco unless making such entity a Loan Party would not reasonably be expected to cause a material adverse tax consequences, as determined in the reasonable discretion of the Borrower and the Administrative Agent;
(3)any Immaterial Subsidiary;
(4)any Subsidiary that is prohibited by any Requirement of Law  or by any contractual obligation (with respect to any such contractual obligations, only to the extent existing on the Effective Date or the date the applicable Person becomes a direct or indirect wholly-owned Subsidiary of a Loan Party and was not entered into in contemplation of this provision) from guaranteeing the Obligations or which would require governmental (including regulatory) consent, approval, license or authorization (including under any financial assistance, corporate benefit, thin capitalization, capital maintenance, liquidity maintenance or similar legal principles) to provide a Guarantee (unless such consent, approval, license or authorization has been received; it being understood and agreed that there will be no obligation to request, seek or obtain any such consent, approval, license or authorization);
(5)any Subsidiary that is (or, if it were a Loan Party, would be) an “investment company” under the Investment Company Act of 1940, as amended;
(6)any not-for profit Subsidiary;
(7)the Reinsurance Subsidiary; and
(8)any Subsidiary where the cost or burden (including adverse tax consequences (other than de minimis tax consequences)) of granting a Guarantee of the Obligations outweighs the benefit to the Lenders, as reasonably determined by the  Administrative Agent in consultation with the Borrower; provided that, notwithstanding the foregoing, the Borrower may, at its option, appoint any Person that otherwise would be an “Excluded Subsidiary” pursuant to clauses (a) through (g) above as a Subsidiary Guarantor.
“Excluded Swap Obligation” means, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the Guarantee of such Guarantor of, or the grant by such Guarantor of a security interest to secure, such Swap Obligation (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure for any reason to constitute an ECP at the time the Guarantee of such Guarantor or the grant of such security interest becomes or would become effective with respect to such Swap Obligation.  If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Guarantee or security interest is or becomes illegal.
“Excluded Taxes” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient:  (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan, Letter of Credit or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan, Letter of Credit or Commitment (other than pursuant 
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to an assignment request by the Borrower under Section 2.19(b)) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 2.16, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender acquired the applicable interest in a Loan, Letter of Credit or Commitment or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 2.16(f), and (d) any withholding Taxes imposed under FATCA.
“Existing Credit Agreement” has the meaning assigned to such term in the Recitals to this Agreement.
“FATCA” means Sections 1471 through 1474 of the Code as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreement entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code.
“Federal Funds Effective Rate” means, for any day, the rate calculated by the NYFRB based on such day’s federal funds transactions by depositary institutions, as determined in such manner as shall be set forth on the NYFRB’s Website from time to time, and published on the next succeeding Business Day by the NYFRB as the effective federal funds rate, provided that, if the Federal Funds Effective Rate as so determined would be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.
“Federal Reserve Board” means the Board of Governors of the Federal Reserve System of the U.S.
“Financial Officer” means the chief executive officer, chief financial officer, principal accounting officer, treasurer, controller or other equivalent financial officer of the Borrower.
“First Amendment” means the First Amendment to this Agreement.
“First Amendment Effective Date” means the date the First Amendment is effective.
“Fiscal Quarter” means each of the quarterly accounting periods of the Borrower, ending on March 31, June 30, September 30 and December 31 of each year.
“Fiscal Year” means each annual accounting period of the Borrower ending on December 31 of each year.
“Fixed Charge Coverage Ratio” means, the ratio, as determined as of the end of each Fiscal Quarter of the Borrower, of (a) Consolidated EBITDA minus Maintenance Capital Expenditures to (b) Fixed Charges, all as calculated for the most recently ended four Fiscal Quarters of the Borrower and its Subsidiaries on a consolidated basis.
“Fixed Charges” means, the sum, as determined as of the end of each Fiscal Quarter of the Borrower, without duplication, of (a) scheduled principal payments on Indebtedness (other than voluntary or mandatory prepayments of such Indebtedness or payment of such Indebtedness at the maturity thereof), including without limitation Capital Lease Obligation, (b) cash Consolidated Interest Expense, (c) any expense for taxes paid in cash, and (d) cash Restricted Payments under Section 6.06(g), (h), (i) and (k), all as calculated for the most recently ended four Fiscal Quarters of the Borrower and its Subsidiaries on a consolidated basis.
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“Flood Laws” has the meaning assigned to such term in Section 8.10.
“Floor” means the benchmark rate floor, if any, provided in this Agreement initially (as of the execution of this Agreement, the modification, amendment or renewal of this Agreement or otherwise) with respect to the Adjusted Term SOFR Rate, the Adjusted Daily Simple SOFR, or Alternate Base Rate, as applicable.  As of the Third Amendment Effective Date, the Floor with respect to the Adjusted Term SOFR Rate or Adjusted Daily Simple SOFR is zero and the Floor with respect to the Alternate Base Rate is 1.00%.
“Foreign Lender” means (a) if the Borrower is a U.S. Person, a Lender that is not a U.S. Person, and (b) if the Borrower is not a U.S. Person, a Lender that is resident or organized under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes.
“Foreign Subsidiary” means any Subsidiary that is incorporated, organized or formed under the laws of any jurisdiction other than the U.S., any State thereof or the District of Columbia.
“Fourth Amendment” means the Fourth Amendment to Amended and Restated Credit Agreement, dated as of September 29, 2022, by and among the Borrower, the Lenders party thereto and the Administrative Agent.
“Fourth Amendment Effective Date” has the meaning given to such term in the Fourth Amendment.  
“GAAP” means generally accepted accounting principles in the U.S.
“Governmental Authority” means the government of the U.S., any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.
“Guaranty Obligations” means, with respect to any Person, without duplication, any obligations of such Person (other than endorsements in the ordinary course of business of negotiable instruments for deposit or collection) guaranteeing or intended to guarantee any Indebtedness of any other Person in any manner, whether direct or indirect, and including without limitation any obligation, whether or not contingent, (i) to purchase any such Indebtedness or any property constituting security therefor, (ii) to advance or provide funds or other support for the payment or purchase of any such Indebtedness or to maintain working capital, solvency or other balance sheet condition of such other Person (including without limitation keep well agreements, maintenance agreements or similar agreements or arrangements) for the benefit of any holder of Indebtedness of such other Person, (iii) to lease or purchase assets, securities or services primarily for the purpose of assuring the holder of such Indebtedness against loss in respect thereof, or (iv) to otherwise assure or hold harmless the holder of such Indebtedness against loss in respect thereof.  The amount of any Guaranty Obligation hereunder shall (subject to any limitations set forth therein) be deemed to be an amount equal to the outstanding principal amount (or maximum principal amount, if larger) of the Indebtedness in respect of which such Guaranty Obligation is made.
“Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase 
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of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or obligation; provided that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business. 
“Guarantor” means the Borrower and each existing and future Subsidiary required to be a Guarantor under Section 5.09, but excluding any Excluded Subsidiary.
“Hazardous Materials” means:  (a) any substance, material, or waste that is included within the definitions of “hazardous substances,” “hazardous materials,” “hazardous waste,” “toxic substances,” “toxic materials,” “toxic waste,” or words of similar import in any Environmental Law; (b) those substances listed as hazardous substances by the United States Department of Transportation (or any successor agency) (49 C.F.R. 172.101 and amendments thereto) or by the Environmental Protection Agency (or any successor agency) (40 C.F.R. Part 302 and amendments thereto); and (c) any substance, material, or waste that is petroleum, or a petroleum by-product, asbestos or asbestos-containing material, polychlorinated biphenyls, flammable, explosive, radioactive, freon gas, radon, or a pesticide, herbicide, or any other agricultural chemical.
“Holdco Entity” means each direct or indirect parent (or co-parent) of the Borrower (including the Permitted SPAC).
“Immaterial Subsidiary” means a Subsidiary of the Borrower for which (a) the assets of such Subsidiary (after giving effect to intercompany eliminations) constitute less than or equal to ten percent (10%) of the total assets of the Loan Parties on a consolidated basis and collectively with all Immaterial Subsidiaries, less than or equal to ten percent (10%) of the total assets of the Loan Parties on a consolidated basis, and (b) the revenues of such Subsidiary (after giving effect to intercompany eliminations) account for less than or equal to ten percent (10%) of the total revenues of the Loan Parties on a consolidated basis and collectively with all Immaterial Subsidiaries, less than or equal to ten percent (10%) of the total revenues of the Loan Parties on a consolidated basis.
 “Indebtedness” of any Person means, without duplication, with respect to any Person, without duplication, (a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person in respect of the deferred purchase price of property or services (other than (1) trade payables, accrued expenses, accruals for payroll or similar expenses and accrued expenses of such Person’s business operations (including on an intercompany basis), (2) purchase price holdbacks in respect of the portion of the purchase price of an asset to satisfy warranty or other unperformed obligations of the respective seller or to satisfy any liabilities, (3) any earnout obligation until such obligation becomes a liability on the balance sheet (excluding the footnotes thereto) of such Person in accordance with GAAP, (4) any such obligations under ERISA, (5) prepaid and deferred revenue arising in the ordinary course of business, (6) purchase price and working capital adjustments (other than earn-outs or similar deferred consideration described above in clause (3)) and (7) customer deposits and prepaid items), (d)  all Indebtedness of others secured by any Lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed, provided that if such Person has not assumed such Indebtedness, then the amount of Indebtedness of such Person shall be equal to the lesser of the amount of the Indebtedness secured by such assets and the fair market value of the assets of such Person that secure such Indebtedness as reasonably determined by the Borrower, (e) all Guarantees by such Person of Indebtedness of others, (f) all Capital Lease Obligations of such 
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Person, (g) the maximum face amount of all standby letters of credit issued or bankers’ acceptances facilities created for the account of such Person and, without duplication, all drafts drawn thereunder (to the extent unreimbursed), as reduced from time to time, (h) all Disqualified Equity Interests, (i) the principal balance outstanding under any synthetic lease, tax retention operating lease, accounts receivable securitization program, off-balance sheet loan or similar off-balance sheet financing product, based on the amount that would be deemed outstanding thereunder if such transaction was structured as a secured financing on balance sheet, (j) as an account party in respect of letters of credit and similar agreements (including bank guarantees), (k) all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances, (l) obligations under any earnout which has become a liability on the balance sheet, (m) any other off-balance sheet liability, and (n) obligations, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor), under (i) any and all Swap Agreements, and (ii) any and all cancellations, buy backs, reversals, terminations or assignments of any Swap Agreement transaction. The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership or unincorporated joint venture in which such Person is a general partner or a joint venturer) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor.  For the avoidance of doubt, notwithstanding anything to the contrary set forth herein, (x) intercompany advances in the ordinary course in respect of operating costs (such as cash management obligations, royalty fees, “cost-plus” arrangements and/or transfer pricing) shall not constitute Indebtedness and (y) obligations which would otherwise constitute Indebtedness but which have been cash collateralized or amounts for the repayment thereof placed in escrow shall not constitute Indebtedness to the extent of such cash collateral or escrowed amounts.
“Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of any Loan Party under any Loan Document and (b) to the extent not otherwise described in the foregoing clause (a), Other Taxes.
“Indemnitee” has the meaning assigned to such term in Section 9.03(c).
“Ineligible Institution” has the meaning assigned to such term in Section 9.04(b).
“Information” has the meaning assigned to such term in Section 9.12.
“Interest Election Request” means a request by the Borrower to convert or continue a Borrowing in accordance with Section 2.07(c).
“Interest Payment Date” means (a) with respect to any ABR Loan and any Swingline Loan, the last day of each applicable calendar quarter and (b) with respect to any Term Benchmark Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Term Benchmark Borrowing with an Interest Period of more than three months duration, each day prior to the last day of such Interest Period that occurs at intervals of three months duration after the first day of such Interest Period.
“Interest Period” means with respect to any Term Benchmark Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one, three or six months thereafter (in each case, subject to the availability for the Benchmark applicable to the relevant Loan or Commitment, as the Borrower may elect; provided, that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest 
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Period shall end on the next preceding Business Day and (ii) any Interest Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period.  For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and, in the case of a Revolving Borrowing, thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing.
“Interest Rate Charge” has the meaning assigned to such term in Section 9.15.
“Investment” has the meaning assigned to such term in Section 6.04.
“IRS” means the United States Internal Revenue Service.
“ISDA Definitions” means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time by the International Swaps and Derivatives Association, Inc. or such successor thereto.
“Issuing Bank” means, individually and collectively, each of JPMCB in its capacity as an issuer of Letters of Credit hereunder, and its successors in such capacity as provided in Section 2.05(i).  The Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of the Issuing Bank, in which case the term “Issuing Bank” shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate.
“JPMCB” means JPMorgan Chase Bank, N.A., a national banking association, in its individual capacity, and its successors.
“LC Disbursement” means a payment made by the Issuing Bank pursuant to a Letter of Credit.
“LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time.  The LC Exposure of any Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time.
“LC Collateral Account” has the meaning assigned to such term in Section 2.05(j).
“LCT Election” has the meaning specified in Section 1.08.
“LCT Test Date” has the meaning specified in Section 1.08.
“Lender Addition and Acknowledgement Agreement” means an agreement adding a Lender to this Agreement under Section 2.08(e) in form and substance satisfactory to the Administrative Agent.
“Lender Parent” means, with respect to any Lender, any Person as to which such Lender is, directly or indirectly, a subsidiary.
“Lender-Related Person” has the meaning assigned to such term in Section 9.03(b).
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“Lenders” means the Persons listed on the Commitment Schedule and any other Person that shall have become a party hereto pursuant to an Assignment and Assumption or Section 2.08, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.  Unless the context otherwise requires, the term “Lenders” includes the Swingline Lender.
“Letter of Credit” means any letter of credit issued pursuant to this Agreement and the term “Letter of Credit” means any one of them or each of them singularly, as the context may require.
 “Liabilities” means any losses, claims (including intraparty claims), demands, damages or liabilities of any kind.
 “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset and (c) any preference, priority or other preferential arrangement of any kind in the nature of security.
“Limited Condition Transaction” means (a) any acquisition or Investment (whether by merger, amalgamation, consolidation or other business combination or the acquisition of the Equity Interests or otherwise) by the Borrower or one or more Subsidiaries permitted pursuant to this Agreement whose consummation is not conditioned on the availability of, or on obtaining, third party financing, (b) any redemption, repurchase, defeasance, satisfaction and discharge or repayment of Indebtedness requiring irrevocable notice in advance of such redemption, repurchase, defeasance, satisfaction and discharge or repayment, and/or (c) any declaration of dividends or distributions, or redemptions with respect to any Equity Interest in the Borrower or any Subsidiary not prohibited by this Agreement, requiring irrevocable notice in advance thereof.
“Limited Condition Transaction Incremental Loan” has the meaning assigned to such term in Section 2.08.
“LLC Agreements” means, collectively, the operating agreement of the Borrower and all other agreements among the Borrower and/or members of the Borrower governing the business and operations of the Borrower, distributions of the Borrower to its members, allocations among its members and other similar matters with respect to the Borrower or its membership interests.
“Loan Documents” means, collectively, this Agreement, each promissory note issued pursuant to this Agreement, each Letter of Credit agreement, each Collateral Document, each Subsidiary Guaranty, Compliance Certificate, each Subordination Agreement, and each other agreement, instrument and document executed and delivered to, or in favor of, the Administrative Agent or any Lender  and each other written matter whether heretofore, now or hereafter executed by or on behalf of any Loan Party and delivered to the Administrative Agent or any Lender in connection with this Agreement or the transactions contemplated hereby which, in each case, is designated as a “Loan Document”.  Any reference in this Agreement or any other Loan Document to a Loan Document shall include all appendices, exhibits or schedules thereto.
“Loan Parties” means the Borrower and the Guarantors.
“Loans” means the loans and advances made by the Lenders pursuant to this Agreement, including Swingline Loans.
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“Maintenance Capital Expenditures” means all Capital Expenditures that relate solely to replacement and refurbishment of existing fixed or capital assets of any Person but not including any Capital Expenditure (a) associated with improvements or upgrades to fixed or capital assets or (b)(i) funded with Equity Interests or the proceeds of the issuance of Equity Interests that are not Disqualified Equity Interests or (ii) funded or reimbursed by a Person other than the Borrower or its Subsidiaries (including with the proceeds of any insurance and tenant improvements).
“Markel” means Markel Corporation, a corporation incorporated under the laws of the State of Virginia.
“Margin Stock” means margin stock within the meaning of Regulations T, U and X, as applicable.
“Master Alliance Agreement” means, collectively, the (a) Third Amended and Restated Master Alliance Agreement, dated June 20, 2019, between the Borrower and Markel and (b) Master Alliance Agreement, dated December 28, 2020, between the Borrower and State Farm Mutual Automobile Insurance Company.
“Material Adverse Effect” means a material adverse effect on (a) the business, assets, financial condition or results of operation of the Borrower and its Subsidiaries, taken as a whole, (b) the ability of the Borrower and its Subsidiaries, taken as a whole, to perform their payment obligations under any of the Loan Documents, (c) the Collateral, taken as a whole, or (d) the rights and remedies, taken as a whole, available to the Lenders under the Loan Documents.
“Material Indebtedness” means Indebtedness (other than the Secured Obligations) of any one or more of the Loan Parties in an aggregate principal amount outstanding exceeding $5,000,000. For purposes of determining Material Indebtedness, the “obligations” of the Borrower or any Subsidiary in respect of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Borrower or such Subsidiary would be required to pay if such Swap Agreement were terminated at such time (after giving effect to netting arrangements).  
“Maximum Rate” has the meaning assigned to such term in Section 9.17.
“Moody’s” means Moody’s Investors Service, Inc.
“Mortgage” means each mortgage, deed of trust or other agreement which conveys or evidences a Lien in favor of the Administrative Agent, for the benefit of the Administrative Agent and the Secured Parties, on real property owned by a Loan Party (other than Excluded Property), whether delivered in connection with the Existing Credit Agreement or this Agreement at any time.
“Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA. “NYFRB” means the Federal Reserve Bank of New York.
“Net Leverage Ratio” means, at any time, the ratio of (a) Consolidated Net Indebtedness at such time to (b) Consolidated EBITDA, as calculated for the four most recently ended Fiscal Quarters.
 “NYFRB Rate” means, for any day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) the Overnight Bank Funding Rate in effect on such day (or for any day that is not a Business Day, for the immediately preceding Business Day); provided that if none of such rates are published for any day that is a Business Day, the term “NYFRB Rate” 
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means the rate for a federal funds transaction quoted at 11:00 a.m. on such day received to the Administrative Agent from a Federal funds broker of recognized standing selected by it; provided, further, that if any of the aforesaid rates as so determined would be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.
“NYFRB’s Website” means the website of the NYFRB at http://www.newyorkfed.org, or any successor source.
“Obligations” means all unpaid principal of and accrued and unpaid interest on the Loans, all LC Exposure, all accrued and unpaid fees, expenses, reimbursements, indemnities and other obligations and indebtedness (including interest and fees accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) of any of the Loan Parties to any of the Lenders, the Administrative Agent, the Issuing Bank or any Indemnitee, individually or collectively, existing on the Effective Date or arising thereafter, direct or indirect, joint or several, absolute or contingent, matured or unmatured, liquidated or unliquidated, secured or unsecured, arising by contract, operation of law or otherwise, arising or incurred, in each case, under this Agreement or any of the other Loan Documents or in respect of any of the Loans made or reimbursement or other obligations incurred or any of the Letters of Credit or other instruments at any time evidencing any thereof.
“OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury.
 “Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Taxes (other than a connection arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to,  or enforced, any Loan Document).
“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 2.18).
“Overnight Bank Funding Rate” means, for any day, the rate comprised of both overnight federal funds and overnight eurodollar transactions denominated in Dollars by U.S.-managed banking offices of depository institutions (as such composite rate shall be determined by the NYFRB as set forth on the NYFRB’s Website from time to time) and published on the next succeeding Business Day by the NYFRB as an overnight bank funding rate.
“Paid in Full” or “Payment in Full” means (i) the payment in full in cash of all outstanding Loans and LC Disbursements, together with accrued and unpaid interest thereon, (ii) the termination, expiration, or cancellation and return of all outstanding Letters of Credit (or alternatively, with respect to each such Letter of Credit, the furnishing to the Administrative Agent of a cash deposit, or a back-up standby letter of credit reasonably satisfactory to the Administrative Agent and the Issuing Bank, in an amount equal to 105% of the LC Exposure as of the date of such payment), (iii) the payment in full in cash of the accrued and unpaid fees, (iv) the payment in full in cash of all reimbursable expenses and other Obligations (other than Obligations that are Unliquidated Obligations for which no claim has been made and other obligations expressly stated to survive such payment and termination of this Agreement), 
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together with accrued and unpaid interest thereon (if any) and (v) the termination of all Commitments.
“Participant” has the meaning assigned to such term in Section 9.04(c).
“Participant Register” has the meaning assigned to such term in Section 9.04(c).
“Payment” has the meaning assigned to such term in Section 8.06(c).
“Payment Notice” has the meaning assigned to such term in Section 8.06(c).
“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar functions.
“Permitted Acquisition” means an Acquisition by any Loan Party or any Subsidiary in a transaction that satisfies each of the following requirements:
(29)such Acquisition is not a hostile or contested acquisition;
(1)the business acquired in connection with such Acquisition is not engaged, directly or indirectly, in any line of business other than the business in which any Loan Party or subsidiary is engaged on the Effective Date or any business activities that are reasonably similar, related, ancillary, complimentary or incidental thereto or a reasonable extension, development or expansion thereof; and
(2)subject to Section 1.08, both before and after giving effect to such Acquisition and the Loans (if any) requested to be made in connection therewith, each of the representations and warranties in the Loan Documents is true and correct in all material respects (except (i) any such representation or warranty which relates to a specified prior date and (ii) to the extent the Lenders have been notified in writing by the Loan Parties that any representation or warranty is not correct and the Lenders have explicitly waived in writing compliance with such representation or warranty) and no Default exists, will exist, or would result therefrom, and the Borrower is in compliance with the covenants set forth in Section 6.13 on a Pro Forma Basis.
(3)as soon as available, but not less than five (5) days (or such shorter period as may be agreed to by the Administrative Agent) prior to such Acquisition, the Borrower has provided the Administrative Agent (i) notice of such Acquisition and (ii) a copy of all business and financial information reasonably requested by the Administrative Agent, in each case, to the extent otherwise available to the Borrower;
(4)both before and after giving effect to such Acquisition, the Borrower was and will be able to borrow at least $5,000,000 of additional Loans; 
(5)prior to the closing of any such Acquisition which has a value in excess of $10,000,000, the Borrower shall provide such pro forma financial statements and certificates and copies of the material documents being executed or delivered in connection with such Acquisition as may be reasonably requested by the Administrative Agent; and
(6)if such Acquisition is an acquisition of Equity Interests, such Acquisition will not result in any violation of Regulation U.
“Permitted Encumbrances” means:
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(30)Liens imposed by law for taxes, fees, assessments or other governmental charges or levies that are (i) not required to be paid under Section 5.04 or (ii) being contested in compliance with Section 5.04;
(9)carriers’, warehousemen’s, mechanics’, materialmen’s, landlord’s, repairmen’s and other like Liens imposed by law, arising in the ordinary course of business and securing obligations that (i) are not overdue by more than forty-five (45) days or (ii) are being contested in compliance with Section 5.04;
(10)pledges or deposits made in the ordinary course of business (i) in connection with workers’ compensation, unemployment insurance and other social security laws or regulations and (ii) to secure obligations in respect of letters of credit, bank guaranties, surety bonds, performance bonds or similar instruments posted with respect to the items described in clause (i) above;
(11)deposits or pledges (i) to secure the performance of bids, tenders, licenses, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in each case in the ordinary course of business, (ii) made in lieu of, or to secure the performance of, surety, customs, reclamation or performance bonds or (iii) to secure obligations in respect of letters of credit, bank guaranties, surety bonds, performance bonds or similar instruments posted with respect to the items described in clauses (i) and (ii) above or described in Section 6.01(i) or 6.01(o);
(12)judgment Liens in respect of judgments and other proceedings that do not constitute an Event of Default under clause (k) of Section 7.01 and pledges or cash deposits made in lieu of, or to secure the performance of, judgment or appeal bonds in respect of such judgments and proceedings;
(13)easements, zoning restrictions, building codes, licenses, title restrictions, rights-of-way and similar encumbrances, including any restrictions, laws, ordinances, rules, regulations, orders or determinations, on real property imposed by law or incurred or granted by the Borrower or any Subsidiary in the ordinary course of business that do not secure any material monetary obligations and do not materially detract from the value of the affected property or interfere with the ordinary conduct of business of the Borrower or any Subsidiary in any material respect; 
(14)minor imperfections in title that do not materially detract from the value of the affected property or interfere with the ordinary conduct of business of Borrower or any Subsidiary in any material respect; 
(15)Liens in favor of collecting banks arising by operation of law pursuant to Article 4 of the UCC; 
(16)any interest or title of a lessor or sublessor (including any mortgagee thereof) or licensor or sublicensor under any lease, sublease, license or sublicense permitted by this Agreement; 
(17)Liens arising from precautionary uniform commercial code financing statements filed under any lease permitted by this Agreement; 
(18)licenses, sublicenses, leases or subleases granted to third parties in the ordinary course of business not interfering with the business of the Loan Parties or any Subsidiaries taken as a whole or materially diminishing the value of the Collateral taken as a whole (and not securing obligations for the payment of borrowed money); 
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(19)Liens (including the right of setoff or similar rights and remedies) in favor of (i) a bank, depository institution or securities intermediary arising as a matter of law or under customary general terms and conditions encumbering deposits and other funds maintained in deposit or securities accounts (and not securing obligations for the payment of borrowed money) and (ii) any Person providing Banking Services; 
(20)Liens on any cash and Permitted Investment earnest money deposits made by the Borrower or any Subsidiary in connection with any letter of intent or purchase agreement entered into with respect to (i) a Permitted Acquisition or (ii) any other Investment permitted under Section 6.04; and
(21)Liens on (i) the Equity Interests of, and property owned by, any Subsidiary that is not a Loan Party securing Indebtedness and other liabilities of such Subsidiary and guarantees of the Indebtedness or other liabilities of such Person permitted hereunder and (ii) the Equity Interests of any joint venture entity in the form of a transfer restriction, purchase option, call, right of first refusal, tag and drag or similar right in connection with a joint venture.
“Permitted Holders” means: 
(31)prior to a Qualified Public Offering, (i) McKeel O. Hagerty, his siblings (whether natural or adopted), their respective lineal descendants (whether natural or adopted), any of their spouses, former spouses, domestic partners or former domestic partners (collectively, the “Hagerty Family Members”), (ii) Affiliates of the Hagerty Family Members, (iii) any estate, trust, guardianship, custodianship, or other fiduciary arrangement for the primary benefit of one or more Hagerty Family Members and (iv) any Qualified Charitable Organization; and
(32)after a Qualified Public Offering, (i) the Persons set forth in clause (a) above, (ii) Markel, (iii) any Holdco Entity, or (iv) any Affiliate of any of the Persons set forth in clause (a), Markel or Holdco Entity which is Controlled by either the Persons set forth in clause (a), Markel or Holdco Entity.
“Permitted Intercompany Activities” means any transactions (A) between or among the Borrower and its subsidiaries that are entered into in the ordinary course of business of the Borrower and its subsidiaries and, in the good faith judgment of the Borrower are necessary or advisable in connection with the ownership or operation of the business of the Borrower and its subsidiaries, including, but not limited to, (i) payroll, cash management, purchasing, insurance and hedging arrangements, (ii) management, technology and licensing arrangements and (iii) customer loyalty and rewards programs or (B) between or among the Borrower, its subsidiaries and any captive insurance subsidiaries, in each case of this clause (B) which are provided in writing to Administrative Agent as of the Third Amendment Effective Date.
“Permitted Investments” means:
(10)direct obligations of the United States of America or any agency thereof or obligations guaranteed by the United States of America or any agency thereof, in each case with maturities not exceeding two (2) years from the date of acquisition;
(33)time deposit accounts, certificates of deposit, overnight bank deposits and money market deposits maturing within one (1) year of the date of acquisition thereof issued by a Lender that is a bank or trust company, or by any bank or trust company that is organized under the laws of the United States of America, or any state thereof having capital, surplus and undivided profits in excess of U.S. $250,000,000 or whose long-term debt, or whose parent holding company’s long-term debt, is rated A (or such similar equivalent rating or higher) by at 
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least one (1) nationally recognized statistical rating organization (as defined in Rule 436 under the Securities Act);
(34)repurchase obligations with a term of not more than one (1) year for underlying securities of the types described in clause (a) above entered into with a Lender that is a bank, or with any bank meeting the qualifications described in clause (b) above;
(35)commercial paper, maturing not more than one (1) year after the date of acquisition, issued by a corporation (other than an Affiliate of the Borrower) organized and in existence under the laws of the United States of America or any foreign country recognized by the United States of America with a rating at the time as of which any investment therein is made of P-1 (or higher) according to Moody’s, or A-1 (or higher) according to S&P;
(36)securities with maturities of two (2) years or less from the date of acquisition issued or fully guaranteed by any State, commonwealth or territory of the United States of America, or by any political subdivision or taxing authority thereof, and rated at least A by S&P or A-2 by Moody’s;
(37)shares of mutual funds whose investment guidelines restrict 95% of such funds’ investments to those satisfying the provisions of clauses (a) through (e) above;
(38)money market funds that (i) comply with the criteria set forth in Rule 2a-7 under the Investment Company Act of 1940, (ii) are rated AAA by S&P and Aaa by Moody’s and (iii) have portfolio assets of at least U.S. $250,000,000;
(39)debt securities or debt instruments with a rating of BBB- or higher by S&P or Baa3 or higher by Moody’s or the equivalent of such rating by such rating organization, or, if no rating of S&P or Moody’s then exists, the equivalent of such rating by any other nationally recognized securities rating agency, but excluding any debt securities or instruments constituting loans or advances among the Borrower and its Subsidiaries, and (ii) investments in any fund that invests exclusively in investments of the type described in the foregoing clause (i), which fund may also hold immaterial amounts of cash pending investment or distribution; and
(40)other investments consistent with the Borrower’s cash management and investment practices approved in writing by the Administrative Agent (such approval not to be unreasonably withheld, conditioned or delayed).
In the case of Investments by (x) any Foreign Subsidiary (but which may include Investments made indirectly by the Borrower or any Domestic Subsidiary), Permitted Investments shall also include investments of the type and maturity described in clauses (a) through (i) above of foreign obligors, which investments or obligors have the ratings described in such clauses or equivalent ratings from comparable foreign rating agencies and (y) the Borrower or any other subsidiary, other currencies, to the extent obtained by the Borrower or applicable subsidiary in the ordinary course of operations or for the purpose of consummating transactions otherwise permitted hereunder, and other short-term investments utilized by the Borrower or such subsidiary in the ordinary course of business and in accordance with normal investment practices for cash management in investments substantially similar to the foregoing investments in clauses (a) through (h) above.
 “Permitted Joint Venture” means any joint venture (which may be in the form of any corporation, limited liability company or other Person) in which the Borrower or any of its Subsidiaries holds Equity Interests or otherwise participates or invests but does not hold all of the Equity Interests (exclusive of director holding qualifying shares in accordance with applicable law); provided, however, that (a) the investors or participants in such joint venture participate in 
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such joint venture on substantially the same (or less favorable) terms as the Borrower or such Subsidiary, (b) the Administrative Agent has a valid, perfected, first priority security interest in the Equity Interests or other interests in such joint venture held by the Borrower or any of its Domestic Subsidiaries except where (i) the governing documents of such joint venture prohibit such a security interest to be granted to secure the Obligations or (ii) such joint venture has incurred non-recourse Indebtedness the terms of which either (x) require security interests in such Equity Interests or other interests to be granted to secure such non-recourse Indebtedness or (y) prohibit such a security interest to be granted to the Lenders, and (c) no Loan Party shall, pursuant to such joint venture, be under any obligation to make equity investments in, make loans or advances to, incur Guaranty Obligations with respect to, or make any other investment in, that would be in violation of any provision of this Agreement as of the date of entering into such commitment.
“Permitted LLC Distributions” means, (a) for so long as the Borrower is a limited liability company or substantially similar pass-through entity for Federal income tax purposes, distributions in an amount up to the Tax Distribution Amounts and (b) on and after the Permitted SPAC Transactions Effective Date, distributions by the Borrower in respect of payments required under the Tax Receivable Agreement.
“Permitted Refinancing Indebtedness” means Refinancing Indebtedness that satisfies the Refinancing Indebtedness Requirements.
“Permitted Reinsurance Subsidiary Dividends” means, at any time, the amount of cash dividends the Reinsurance Subsidiary is legally and contractually permitted to make, without the consent of any third party of governmental entity, to a Loan Party as of such time.
“Permitted SPAC” means Aldel Financial Inc., a Delaware corporation and a special purpose acquisition company.
“Permitted SPAC Agreement” means that certain Business Combination Agreement dated August 17, 2021 by and among the Permitted SPAC, Aldel Merger Sub LLC, a Delaware limited liability company and the Borrower (together with all schedules, exhibits and annexes thereto).
“Permitted SPAC Transaction” means the transactions contemplated by the Permitted SPAC Transaction Documents so long as: (a) as of the Permitted SPAC Transaction Effective Date, no Specified Event of Default shall have occurred and be continuing or shall occur as a result thereof and (b) the Administrative Agent shall have received all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the USA PATRIOT Act, with respect to the Loan Parties, together with any other information reasonably requested by the Administrative Agent in writing at least ten (10) calendar days (or such shorter period as may be agreed by the Administrative Agent) prior to the proposed closing date.
“Permitted SPAC Transaction Documents” means the Permitted SPAC Agreement and the other “Transaction Documents” (as defined in the Permitted SPAC Agreement).
“Permitted SPAC Transaction Effective Date” means the date the Permitted SPAC Transaction is consummated.
“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.
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“Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.
“Plan Asset Regulations” means 29 CFR § 2510.3-101 et seq., as modified by Section 3(42) of ERISA, as amended from time to time.
“Prime Rate” means the rate of interest last quoted by The Wall Street Journal as the “Prime Rate” in the U.S. or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the Administrative Agent) or any similar release by the Federal Reserve Board (as determined by the Administrative Agent).  Each change in the Prime Rate shall be effective from and including the date such change is publicly announced or quoted as being effective.
“Pro Forma Basis”, “pro forma” or “pro forma effect” means, with respect to any determination for any period and any Pro Forma Transaction, that such determination shall be made by giving pro forma effect to such Pro Forma Transaction in the manner contemplated in the definition of Consolidated EBITDA as if such Pro Forma Transaction had occurred on the first day of the applicable four-Fiscal Quarter reference period (such pro forma calculations shall be determined in accordance with Section 1.09).
“Pro Forma Transaction” means (a) any Permitted Acquisition or similar Investment, (b) the Permitted SPAC Transaction, (c) any Disposition of all or substantially all of the assets or Equity Interests of any subsidiary of the Borrower or the disposition of any business unit, line of business or division of the Borrower or any subsidiary of the Borrower, (d) to the extent required to be given pro forma effect other than by Section 1.09, any incurrence or repayment of Indebtedness (other than normal fluctuations in revolving Indebtedness incurred for working capital purposes), and/or (e) any other transaction or event that by the terms of the Loan Documents specifies pro forma compliance with test or covenant hereunder or requires any test, covenant or other transaction or event to be calculated on a Pro Forma Basis, pro forma basis, pro forma compliance, or similar variation, in each case together with each other transaction relating or incidental thereto and consummated in connection therewith.
“Proceeding” means any claim, litigation, investigation, action, suit, arbitration or administrative, judicial or regulatory action or proceeding in any jurisdiction.
“PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.
“Public Company Costs” means (i) Charges associated with, or in anticipation of, or preparation for (A) any initial public offering (or any initial public offering proposed and not consummated) of any Holdco Entity and (B) compliance with the requirements of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith, and (ii) Charges relating to compliance with the provisions of the Securities Act and the Exchange Act (and any similar Requirements of Law under any other applicable jurisdiction), as applicable to companies with equity or debt securities held by the public, the rules of national securities exchanges applicable to companies with listed equity or debt securities, directors’, managers’ and/or employees’ compensation or other costs to the extent attributable to being a public company, officer and director fee and expense reimbursement to the extent attributable to being a public company, Charges relating to investor relations, shareholder meetings and reports to 
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shareholders or debtholders associated with being a public company, directors’ and officers’ insurance and other legal and other professional fees, listing fees and other costs and/or expenses associated with being a public company.
“QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).
“QFC Credit Support” has the meaning assigned to such term in Section 9.19.
“Qualified Charitable Organization” means, with respect to any Hagerty Family Member, a charitable organization that (a) is in existence as an organization or trust, gifts to which qualify for federal tax charitable deductions under all of Section 170(c) and 2055(a) of the Code and (b) to which such Hagerty Family Member transfers shares of the Borrower or for the sole benefit of which such Hagerty Family Member transfers shares of the Borrower into a trust.
“Qualified Equity Interests” means Equity Interests that are not Disqualified Equity Interests.
“Qualified Public Offering” means the issuance by the Borrower or any Holdco Entity thereof of its common Equity Interests in an underwritten initial public offering (other than a public offering pursuant to a registration statement on Form S-8) pursuant to an effective registration statement filed with the SEC in accordance with the Securities Act of 1933 (whether alone or in connection with a secondary public offering) that results in the Borrower or any Holdco Entity receiving net proceeds as contributions (including the Permitted SPAC Transaction).
“Recipient” means, as applicable, (a) the Administrative Agent, (b) any Lender and (c) any Issuing Bank, or any combination thereof (as the context requires).
“Reference Time” with respect to any setting of the then-current Benchmark means (1) if such Benchmark is Term SOFR Rate, 5:00 a.m. (Chicago time) on the day that is two (2) Business Days preceding the date of such setting, (2) if the RFR for such Benchmark is Daily Simple SOFR, then four (4) Business Days prior to such setting, or (3) if such Benchmark is none of the Term SOFR Rate or Daily Simple SOFR, the time determined by the Administrative Agent in its reasonable discretion.
“Refinanced Indebtedness” means the applicable Indebtedness being exchanged, extended, renewed, replaced, redeemed, repurchased, defeased, restructured, repaid or refunded by Refinancing Indebtedness.
     “Refinancing Indebtedness” means Indebtedness issued, incurred or otherwise obtained in exchange for, or to extend, renew, replace, redeem, repurchase, defease, restructuring, repay or refund (including by entering into alternative financing arrangements in respect of such exchange or replacement (in whole or in part), either by adding or replacing lenders, creditors, agents, borrowers and/or guarantors, or after the original instrument giving rise to such Indebtedness has been terminated and including, by entering into any new credit agreement, loan agreement, note purchase agreement, indenture or other agreement) any Refinanced Indebtedness, or the net proceeds of which are incurred for the purpose of extending, refinancing, renewing, replacing, redeeming, repurchasing, defeasing, restructuring, repaying or refunding such Refinanced Indebtedness  (or amending or modifying such Refinanced Indebtedness to effectuate any of the foregoing).
“Refinancing Indebtedness Requirements” means, with respect to any Refinancing Indebtedness, the following requirements: 
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(22)such Refinancing Indebtedness is in an original aggregate principal amount not greater than the aggregate principal amount of the Refinanced Indebtedness except by an amount equal to unpaid accrued interest and premium (including tender premium), make-whole amounts or penalties thereon, defeasance costs, underwriting discounts and other reasonable amounts paid and fees, commissions and expenses (including upfront fees, original issue discount and initial yield payments) incurred in connection with the incurrence of such Refinancing Indebtedness and an amount equal to any existing commitments unutilized under such Refinanced Indebtedness and any additional Indebtedness concurrently with such Refinancing Indebtedness pursuant to a separate exception under Section 6.01;
(23)such Indebtedness shall have (i) pricing (including interest, fees and premiums), optional prepayment and redemption terms as may be agreed to by the Borrower and the lenders party thereto and (ii) subordination terms (if any) no less favorable in any material respect to the obligor thereunder than the subordination terms applicable to the original Indebtedness;
(41)any Liens securing such Refinancing Indebtedness are not extended to any additional property of any Loan Party or any Subsidiary (other than property subject to the Liens being refinanced or as permitted under Section 6.02 (and improvements thereon and the proceeds and products thereof));
(42)no Loan Party or any Subsidiary that is not originally obligated with respect to repayment of such Refinanced Indebtedness is required to become obligated with respect to such Refinancing Indebtedness, except to the extent otherwise permitted under Article VI; and
(1)such Refinanced Indebtedness shall be repaid, defeased or satisfied and discharged, and all accrued interest, fees and premiums (if any) in connection therewith shall be paid, on the date such Refinancing Indebtedness is issued, incurred or obtained.
“Register” has the meaning set forth in Section 9.04(b).
“Regulation D” means Regulation D of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.
“Regulation T” means Regulation T of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.
“Regulation U” means Regulation U of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.
“Regulation X” means Regulation X of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.
“Reinsurance Subsidiary” means Hagerty Reinsurance Limited, a Bermuda Class 3A Reinsurance Company and a wholly-owned Subsidiary of the Borrower.
“Related Parties” means, with respect to any specified Person, such Person’s Affiliates and the respective directors, officers, partners, members, trustees, employees, agents, administrators, managers, representatives and advisors of such Person and such Person’s Affiliates.
“Release” means any releasing, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, migrating, disposing, or dumping of any Hazardous Material into the environment.
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“Relevant Governmental Body” means the Federal Reserve Board, the NYFRB and/or the CME Term SOFR Administrator, as applicable, or a committee officially endorsed or convened by the Federal Reserve Board, the NYFRB and/or the CME Term SOFR Administrator or, in each case, any successor thereto.
“Relevant Rate” means (i) with respect to any Term Benchmark Borrowing, the Adjusted Term SOFR Rate or (ii) with respect to any RFR Borrowing, the Adjusted Daily Simple SOFR, as applicable.
“Report” means reports prepared by the Administrative Agent or another Person showing the results of appraisals, field examinations or audits pertaining to the Borrower’s assets from information furnished by or on behalf of the Borrower, after the Administrative Agent has exercised its rights of inspection pursuant to this Agreement, which Reports may be distributed to the Lenders by the Administrative Agent subject to the terms of this Agreement.
“Required Lenders” means, at any time, Lenders having Revolving Exposure and unused Commitments representing more than 50% of the sum of the total Revolving Exposure and unused Commitments at such time; provided that, at any time there are two or more Lenders (with any Lenders that are Affiliates constituting one Lender for purposes of this definition) Required Lenders shall also require at least two Lenders.
“Requirement of Law” means, as to any Person, any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.
“Resolution Authority” means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.
“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any Equity Interests (including any option, warrant or other right to acquire any such Equity Interests in the Borrower) in the Borrower or any Subsidiary, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests in the Borrower.
“Revolving Credit Maturity Date” means the earlier of (a) the date on which the Commitments are reduced to zero or otherwise terminated pursuant to the terms hereof or (b) the date that is five years after the Third Amendment Effective Date, provided that, if agreed to by all Lenders in their sole discretion, the Lenders may extend the Revolving Credit Maturity Date by one year on an annual basis, and if any Lender or Lenders do not agree to so extend at any time, the remaining Lenders can agree to extend the Revolving Credit Maturity Date pursuant to an amendment hereto reasonably satisfactory to all parties and providing for such extension and the payoff and elimination of such Lender or Lenders that are not agreeing to so extend the Revolving Credit Maturity Date.
“Revolving Exposure” means, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender’s Revolving Loans and its LC Exposure and Swingline Exposure at such time.
“Revolving Loan” means a Loan made pursuant to Section 2.01.
“RFR Borrowing” means, as to any Borrowing, the RFR Loans comprising such Borrowing.
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“RFR Loan” means a Loan that bears interest at a rate based on the Adjusted Daily Simple SOFR.
“S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business.
“Sanctioned Country” means, at any time, a country, region or territory which is itself the subject or target of any Sanctions (at the time of this Agreement, Crimea, Cuba, Iran, North Korea and Syria).
“Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the OFAC, the U.S. Department of State, the United Nations Security Council, the European Union or any European Union member state, Her Majesty’s Treasury of the United Kingdom or other relevant sanctions authority, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person owned or controlled by any such Person or Persons described in the foregoing clauses (a) or (b), or (d) any Person otherwise the subject of any Sanctions.
“Sanctions” means all economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by the OFAC or the U.S. Department of State, or (b) to the extent applicable, the United Nations Security Council, the European Union, any European Union member state or Her Majesty’s Treasury of the United Kingdom.
“SEC” means the Securities and Exchange Commission of the U.S.
“Secured Obligations” means, collectively, (i) the Obligations, (ii) the Banking Services Obligations, and (iii) the Swap Obligations owing to one or more Lenders or their respective Affiliates; and provided however that the definition of “Secured Obligations” shall not create any guarantee by any Guarantor of (or grant of security interest by any Guarantor to support) any Excluded Swap Obligations of such Guarantor for the purposes of determining any obligation of any Guarantor.  
“Secured Parties” means (a) the Lenders, (b) the Administrative Agent, (c) each Issuing Bank, (d) each provider of Banking Services Obligations, (e) each Lender and Affiliate of such Lender in respect of Swap Obligations entered into with such Person by the Borrower or any Subsidiary, (f) the beneficiaries of each indemnification obligation undertaken by any Loan Party under any Loan Document, and (g) the successors and assigns of each of the foregoing.
“Security Agreement” means that certain Amended and Restated Pledge and Security Agreement (including any and all supplements thereto), dated as of the Third Amendment Effective Date, among the Loan Parties and the Administrative Agent, and any other pledge or security agreement entered into after the Third Amendment Effective Date, by any other Loan Party or any other Person (in each case, as required by this Agreement or any other Loan Document)  for the benefit of the Administrative Agent and the other Secured Parties.
“SOFR” means a rate equal to the secured overnight financing rate as administered by the SOFR Administrator.
“SOFR Administrator” means the NYFRB (or a successor administrator of the secured overnight financing rate).
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“SOFR Administrator’s Website” means the NYFRB’s Website, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.
“SOFR Determination Date” has the meaning specified in the definition of “Daily Simple SOFR”.
“SOFR Rate Day” has the meaning specified in the definition of “Daily Simple SOFR”.
“Specified Event of Default” means an event with respect to the Borrower described in clause (a), (b), (h) or (i) of Section 7.01.
“Statements” has the meaning assigned to such term in Section 2.17(g).
“Subordinated Debt” means any Indebtedness and other obligations of the Loan Parties the payment and priority of which is subordinated to payment of the Secured Obligations, with customary payment blockage and other provisions, that does not have any principal payments due earlier than the date which is one-hundred and eighty (180) days after the Revolving Credit Maturity Date, and the terms and conditions of which are otherwise reasonably satisfactory to the Administrative Agent, and which are subject to a Subordination Agreement.
“Subordinated Debt Documents” means any document, agreement or instrument evidencing any Subordinated Debt or entered into in connection with any Subordinated Debt (other than any Loan Document).
“Subordination Agreements” means, collectively, all present and future subordination agreements between the Administrative Agent, the Loan Parties and the holders of any Subordinated Debt with respect to Subordinated Debt in form and substance reasonably satisfactory to the Administrative Agent.
“subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation, limited liability company, partnership, association or other entity of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, Controlled or held by the parent and/or one or more subsidiaries of the parent.
“Subsidiary” means any direct or indirect subsidiary of the Borrower; provided that Permitted Joint Ventures shall not be considered Subsidiaries for purposes of this Agreement, except to the extent as contemplated under clause (c)(iii) of the definition of Consolidated EBITDA.
“Subsidiary Guaranty” means that certain Amended and Restated Guaranty Agreement (including any and all supplements thereto), dated as of the Third Amendment Effective Date, among the Guarantors and the Administrative Agent, and any other guaranty agreements from any Guarantor as are requested by the Administrative Agent and its counsel.
“Supported QFC” has the meaning assigned to such term in Section 9.19.
“Swap Agreement” means any agreement with respect to any swap, forward, spot, future, credit default or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; provided that no 
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phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Borrower or the Subsidiaries shall be a Swap Agreement.
“Swap Obligations” of a Person means any and all obligations of such Person, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor), under (a) any and all Swap Agreements permitted hereunder with a Lender or an Affiliate of a Lender, and (b) any and all cancellations, buy backs, reversals, terminations or assignments of any Swap Agreement transaction permitted hereunder with a Lender of an Affiliate of a Lender.
“Swingline Exposure” means, at any time, the aggregate principal amount of all Swingline Loans outstanding at such time.  The Swingline Exposure of any Lender at any time shall be its Applicable Percentage of the total Swingline Exposure at such time.
“Swingline Lender” means JPMCB, in its capacity as lender of Swingline Loans hereunder.  Any consent required of the Administrative Agent or the Issuing Bank shall be deemed to be required of the Swingline Lender and any consent given by JPMCB in its capacity as Administrative Agent or Issuing Bank shall be deemed given by JPMCB in its capacity as Swingline Lender as well.
“Swingline Loan” means a Loan made pursuant to Section 2.04.
 “Tax Distribution Amount” means (i) an amount, as determined in good faith by Borrower, equal to aggregate federal, state, local, and non-U.S. Taxes  payable by direct or indirect holders of Equity Interests in Borrower on the taxable income attributable to Borrower or any of its direct or indirect subsidiaries, assuming the applicability of the highest marginal federal, state, local and non-U.S. income Tax rates, and payable as and when such tax liability is due and payable and (ii) any aggregate federal, state, local and non-U.S. Tax obligations payable by a Holdco Entity.
“Tax Receivable Agreement” means the tax receivable agreement entered into pursuant to the Permitted SPAC Transaction Documents in substantially the form attached as Exhibit F to the Permitted SPAC Agreement or with such amendments or modifications thereto that are not materially adverse to the Lenders.
“Taxes” means any and all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), value added taxes, or any other goods and services, use or sales taxes, assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.
“Term Benchmark”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Adjusted Term SOFR Rate.
“Term SOFR Determination Day” has the meaning assigned to it under the definition of Term SOFR Reference Rate.
“Term SOFR Rate” means, with respect to any Term Benchmark Borrowing and for any tenor comparable to the applicable Interest Period, the Term SOFR Reference Rate at approximately 5:00 a.m., Chicago time, two (2) U.S. Government Securities Business Days prior to the commencement of such tenor comparable to the applicable Interest Period, as such rate is published by the CME Term SOFR Administrator.
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“Term SOFR Reference Rate” means, for any day and time (such day, the “Term SOFR Determination Day”), and for any tenor comparable to the applicable Interest Period, the rate per annum determined by the Administrative Agent as the forward-looking term rate based on SOFR; provided that if the Term SOFR Reference Rate as so determined would be less than the Floor, such rate shall be deemed to be equal to the Floor for the purposes of this Agreement.  If by 5:00 pm (New York City time) on such Term SOFR Determination Day, the “Term SOFR Reference Rate” for the applicable tenor has not been published by the CME Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Rate has not occurred, then the Term SOFR Reference Rate for such Term SOFR Determination Day will be the Term SOFR Reference Rate as published in respect of the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate was published by the CME Term SOFR Administrator, so long as such first preceding Business Day is not more than five (5) Business Days prior to such Term SOFR Determination Day. “Transactions” means the execution, delivery and performance by the Borrower of this Agreement and the other Loan Documents, the borrowing of Loans and other credit extensions, the use of the proceeds thereof and the issuance of Letters of Credit hereunder. 
“Third Amendment” means the Third Amendment to Amended and Restated Credit Agreement, dated as of October 27, 2021, by and among the Borrower, the Lenders party thereto and the Administrative Agent.
“Third Amendment Effective Date” has the meaning given to such term in the Third Amendment.  
“Trade Date” shall have the meaning assigned to it in Section 9.04(e).
“Transaction Costs” means all fees, premiums, expenses and other transaction costs incurred or payable by the Borrower or any other Subsidiary in connection with the Permitted SPAC Transaction and the transactions contemplated by the Third Amendment.
“Transactions” means the execution, delivery and performance by the Borrower of this Agreement and the other Loan Documents, the borrowing of Loans and other credit extensions, the use of the proceeds thereof and the issuance of Letters of Credit hereunder.
“Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Adjusted Term SOFR Rate, the Adjusted Daily Simple SOFR or the Alternate Base Rate.
“UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York or any other state the laws of which are required to be applied in connection with the issue of perfection of security interests.
“UK Financial Institutions” means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.
“UK Resolution Authority” means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.
“Unadjusted Benchmark Replacement” means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.
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“Unliquidated Obligations” means, at any time, any Secured Obligations (or portion thereof) that are contingent in nature or unliquidated at such time, including any Secured Obligation that is:  (i) an obligation to reimburse a bank for drawings not yet made under a letter of credit issued by it; (ii) any other obligation (including any guarantee) that is contingent in nature at such time; or (iii) an obligation to provide collateral to secure any of the foregoing types of obligations.
“Unrestricted Cash” means, at any date, 100% of the unrestricted cash owned by the Borrower and its Domestic Subsidiaries in which the Administrative Agent has a first priority, perfected security interest pursuant to the Collateral Documents. “Unrestricted Cash” shall not include any cash held by the Borrower or any of its Subsidiaries in escrow, trust or other fiduciary capacity for or on behalf of any Person or subject to any other restriction.

“U.S.” means the United States of America.
“U.S. Government Securities Business Day” means any day except for (i) a Saturday, (ii) a Sunday or (iii) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities. 
“U.S. Person” means a “United States person” within the meaning of Section 7701(a)(30) of the Code.
“U.S. Special Resolution Regime” has the meaning assigned to such term in Section 9.21.
“U.S. Tax Compliance Certificate” has the meaning assigned to such term in Section 2.16(f)(ii)(B)(3).
“USA PATRIOT Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001.
“Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.
“Write-Down and Conversion Powers” means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.
SECTION 1.0b.Classification of Loans and Borrowings.  For purposes of this Agreement, Loans may be classified and referred to by Class (e.g., a “Revolving Loan”) or by Type (e.g., a “Term Benchmark Loan” or an “RFR Loan”) or by Class and Type (e.g., a “Term Benchmark Revolving Loan” or an “RFR Revolving Loan”).  Borrowings also may be classified and referred to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “Term Benchmark 
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Borrowing” or an “RFR Borrowing”) or by Class and Type (e.g., a “Term Benchmark Revolving Borrowing” or an “RFR Revolving Borrowing”).
SECTION 1.0c.Terms Generally.  The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”.  The word “law”, as applied to any Person, shall be construed as referring to all statutes, rules, regulations, codes and other laws (including official rulings and interpretations thereunder having the force of law) and all judgments, orders and decrees of all Governmental Authorities, in each case applicable to such Person or its properties.  The word “will” shall be construed to have the same meaning and effect as the word “shall”.  Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein (including any Loan Document) shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, amended and restated, supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, amendments and restatements, supplements or modifications set forth herein), (b) any definition of or reference to any statute, rule or regulation shall be construed as referring thereto as from time to time amended, supplemented or otherwise modified (including by succession of comparable successor laws), (c) any reference herein to any Person shall be construed to include such Person’s successors and assigns (subject to any restrictions on assignments set forth herein) and, in the case of any Governmental Authority, any other Governmental Authority that shall have succeeded to any or all functions thereof, (d) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (e) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (f) any reference in any definition to the phrase “at any time” or “for any period” shall refer to the same time or period for all calculations or determinations within such definition, and (g) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.
SECTION 1.0d.Accounting Terms; GAAP.  Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if the Borrower notifies the Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith (which amendment shall be made without the payment of a fee, other than legal expenses required to be reimbursed by the Loan Parties pursuant to Section 9.03(a)). Notwithstanding anything in this Agreement, in any financial statements of the Borrower and its Subsidiaries or in GAAP to the contrary, for purposes of calculating and determining compliance with the financial covenants in Section 6.13 and determining the Applicable Margin, including defined terms used therein, the Reinsurance Subsidiary shall not be consolidated with the Borrower and its other Subsidiaries and the Reinsurance Subsidiary shall be excluded therefrom. Notwithstanding anything to the contrary contained in this Section 1.04 or in the definition of “Capital Lease Obligations,” any change in accounting for leases pursuant to GAAP resulting from the adoption of Financial Accounting Standards Board Accounting Standards Update No. 2016-02, Leases (Topic 842) (“FAS 842”), to the extent such adoption would require treating any lease (or similar arrangement conveying 
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the right to use) as a capital lease where such lease (or similar arrangement) would not have been required to be so treated under GAAP as in effect on December 31, 2015, such lease shall not be considered a capital lease (whether entered into prior to the Third Amendment Effective Date or thereafter), and all calculations of any restriction, basket, covenant or carveout and deliverables (other than financial statements) under this Agreement or any other Loan Document shall be made or delivered, as applicable, in accordance therewith. Notwithstanding anything to the contrary in this Agreement, the allowance of any transaction under this Agreement upon the absence of any Specified Event of Default shall not be deemed to waive on behalf of any Credit Party or any their respective Affiliates any rights or remedies which may otherwise be available to any Credit Party or any their respective Affiliates under the Loan Documents due to any other Default hereunder. 
SECTION 1.0e.Interest Rates; Benchmark Notifications.  The interest rate on a Loan denominated in dollars may be derived from an interest rate benchmark that may be discontinued or is, or may in the future become, the subject of regulatory reform.  Upon the occurrence of a Benchmark Transition Event, Section 2.13(b) provides a mechanism for determining an alternative rate of interest.  The Administrative Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to, the administration, submission, performance or any other matter related to any interest rate used in this Agreement, or with respect to any alternative or successor rate thereto, or replacement rate thereof, including without limitation, whether the composition or characteristics of any such alternative, successor or replacement reference rate will be similar to, or produce the same value or economic equivalence of, the existing interest rate being replaced or have the same volume or liquidity as did any existing interest rate prior to its discontinuance or unavailability.  The Administrative Agent and its affiliates and/or other related entities may engage in transactions that affect the calculation of any interest rate used in this Agreement or any alternative, successor or alternative rate (including any Benchmark Replacement) and/or any relevant adjustments thereto, in each case, in a manner adverse to the Borrower.  The Administrative Agent may select information sources or services in its reasonable discretion to ascertain any interest rate used in this Agreement, any component thereof, or rates referenced in the definition thereof, in each case pursuant to the terms of this Agreement, and shall have no liability to the Borrower, any Lender or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service..
SECTION 1.0f.Letters of Credit.  Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the amount of such Letter of Credit available to be drawn at such time; provided that with respect to any Letter of Credit that, by its terms or the terms of any Letter of Credit agreement related thereto, provides for one or more automatic increases in the available amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum amount is available to be drawn at such time.  For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Article 29(a) of the Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce Publication No. 600 (or such later version thereof as may be in effect at the applicable time) or Rule 3.13 or Rule 3.14 of the International Standby Practices, International Chamber of Commerce Publication No. 590 (or such later version thereof as may be in effect at the applicable time) or similar terms of the Letter of Credit itself, or if compliant documents have been presented but not yet honored, such Letter of Credit shall be deemed to be “outstanding” and “undrawn” in the amount so remaining available to be paid, and except to the extent provided for in clause (ii) of the definition of Payment in Full, the obligations of the Borrower and each Lender shall remain in full force and effect until the Issuing Bank and the Lenders shall have no further obligations to 
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make any payments or disbursements under any circumstances with respect to any Letter of Credit.
SECTION 1.0g.Divisions.  For all purposes under the Loan Documents, in connection with any Division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s laws):  (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized and acquired on the first date of its existence by the holders of its Equity Interests at such time.
SECTION 1.0h.Limited Condition Transactions.  In connection with any action being taken solely in connection with a Limited Condition Transaction, for purposes of: 
(24)determining compliance with any provision of this Agreement (other than Section 6.13) that requires the calculation of the Net Leverage Ratio or the Fixed Charge Coverage Ratio, 
(25)determining the accuracy of representations and warranties and/or whether a Default or Event of Default shall have occurred and be continuing (or any subset of Defaults or Events of Default) for all purposes other than Section 4.02 (but subject to Section 2.08), or 
(26)testing availability under baskets set forth in this Agreement (including baskets measured as a percentage of Consolidated EBITDA), 
the date of determination of whether any such actions and transactions are permitted hereunder shall, in each case, at the option of the Borrower (the Borrower’s election to exercise such option in connection with any Limited Condition Transaction, an “LCT Election”), be deemed to be the date the definitive agreements for such Limited Condition Transaction are entered into or, in respect of any transaction described in clauses (b) and (c) of the definition of Limited Condition Transaction, delivery of irrevocable notice, declaration of dividend or similar event (the “LCT Test Date”), and if, after giving pro forma effect to the Limited Condition Transaction and the other transactions to be entered into in connection therewith (including any incurrence of Indebtedness and the use of proceeds thereof) as if they had occurred at the beginning of the four consecutive fiscal quarter period being used to calculate such financial ratio ending prior to the LCT Test Date, the Borrower could have taken such action on the relevant LCT Test Date in compliance with such ratio or basket, such ratio or basket shall be deemed to have been complied with; provided that each such Limited Condition Transaction shall be consummated within one-hundred and eighty (180) days of such LCT Test Date.
For the avoidance of doubt, if the Borrower has made an LCT Election and any of the ratios or baskets for which compliance was determined or tested as of the LCT Test Date are exceeded as a result of fluctuations in any such ratio or basket, including due to fluctuations in Consolidated EBITDA of the Borrower or the Person subject to such Limited Condition Transaction, at or prior to the consummation of the relevant transaction or action, such baskets or ratios will not be deemed to have been exceeded as a result of such fluctuations; provided, however, if any ratios improve or baskets increase as a result of such fluctuations, such improved ratios or baskets may be utilized.  If the Borrower has made an LCT Election for any Limited Condition Transaction, then, in connection with any subsequent calculation of the ratios (excluding, for the avoidance of doubt, any ratio contained in Section 6.13) or baskets on or following the relevant LCT Test Date and prior to the earlier of (i) the date on which such Limited Condition Transaction is consummated or (ii) the date that the definitive agreement, notice or declaration for such Limited Condition Transaction is terminated or expires without consummation of such Limited Condition Transaction (or, if applicable, the irrevocable notice, declaration of dividend or similar event is terminated or expires), any such ratio or basket shall 
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be calculated on a Pro Forma Basis assuming such Limited Condition Transaction and other transactions in connection therewith (including the incurrence of indebtedness and the use of proceeds thereof) have been consummated.
SECTION 1.0i.Pro Forma Basis.  Notwithstanding anything to the contrary contained herein, but subject to Section 1.08, all financial ratios, tests and measurements, including the Net Leverage Ratio, the Fixed Charge Coverage Ratio, or Consolidated EBITDA (including any component definitions of any of the foregoing) herein or in any Loan Document that are calculated with respect to any period during which any Pro Forma Transaction occurs shall be calculated with respect to such period and each such Pro Forma Transaction on a Pro Forma Basis.  Further, if since the beginning of any such period and on or prior to the date of any required calculation of any financial ratio, test or measurement (i) any Pro Forma Transaction has occurred or (ii) any Person that subsequently became a Subsidiary or was merged, amalgamated or consolidated with or into any Subsidiary or any joint venture since the beginning of such period has consummated any Pro Forma Transaction, then, in each case, any applicable financial ratio, test or measurement shall be calculated on a Pro Forma Basis for such period as if such Pro Forma Transaction had occurred at the beginning of the applicable period.  Notwithstanding anything to the contrary contained herein or in any Loan Document, for the purposes of determining compliance with the financial covenant in Section 6.13 and calculating the Net Leverage Ratio for purposes of the definitions of “Applicable Margin” and “Commitment Fee Rate”, any such adjustments shall only include events that occurred during the applicable period of determination.
ARTICLE 2
THE CREDITS
SECTION 1.0j.Commitments.  Subject to the terms and conditions set forth herein, each Lender severally (and not jointly) agrees to make Revolving Loans in dollars to the Borrower from time to time during the Availability Period in an aggregate principal amount that will not result in (i) such Lender’s Revolving Exposure exceeding such Lender’s Commitment or (ii) the total Revolving Exposures exceeding the total Commitments.  Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Revolving Loans.
SECTION 1.0k.Loans and Borrowings.  (a)  Each Loan (other than a Swingline Loan) shall be made as part of a Borrowing consisting of Loans of the same Class and Type made by the Lenders ratably in accordance with their respective Commitments of the applicable Class.  The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments of the Lenders are several and no Lender shall be responsible for any other Lender’s failure to make Loans as required.  Any Swingline Loan shall be made in accordance with the procedures set forth in Section 2.04.
(27)Subject to Section 2.13, each Revolving Borrowing shall be comprised entirely of ABR Loans, RFR Loans or Term Benchmark Loans as the Borrower may request in accordance herewith.  Each Swingline Loan shall be an ABR Loan or shall bear interest at an alternate rate agreed upon by the Borrower and the Swingline Lender.  All Revolving Borrowings made under the Existing Credit Agreement and existing as of the Effective Date shall continue as the same Type of Loan with the same Interest Period, if applicable, existing as of the Effective Date.  Each Lender at its option may make any Term Benchmark Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement.
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(28)At the commencement of each Interest Period for any Term Benchmark Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $50,000 and not less than $250,000.  At the time that each ABR Revolving Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $10,000 and not less than $50,000; provided that an ABR Revolving Borrowing may be in an aggregate amount that is equal to the entire unused balance of the total Commitments or that is required to finance the reimbursement of an LC Disbursement as contemplated by Section 2.05(e).  Each Swingline Loan shall be in an amount that is not less than an amount required by the Swingline Lender from time to time.  Borrowings of more than one Type and Class may be outstanding at the same time; provided that there shall not at any time be more than a total of four (4) Term Benchmark Borrowings or RFR Borrowings outstanding.
(29)Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested would end after the Revolving Credit Maturity Date.
SECTION 1.0l.Requests for Borrowings.  To request a Borrowing, the Borrower shall notify the Administrative Agent of such request either in writing (delivered by hand or telecopy) in a form reasonably acceptable to the Administrative Agent that specifies the information described in clauses (i) through (v) below and signed by a Financial Officer of the Borrower or through Electronic System, if arrangements for doing so have been approved by the Administrative Agent, (a)(i) in the case of a Term Benchmark Borrowing, not later than 11:00 a.m., eastern time, three (3) Business Days before the date of the proposed Borrowing or (ii) in the case of an RFR Borrowing, not later than 10:00 a.m., Chicago time five (5) Business Days before the date of the proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 10:00 a.m., eastern time, on the date of the proposed Borrowing; provided that any such notice of an ABR Revolving Borrowing to finance the reimbursement of an LC Disbursement as contemplated by Section 2.05(e) may be given not later than 9:00 a.m., eastern time, on the date of the proposed Borrowing.  Each such Borrowing Request shall be irrevocable, unless such Borrowing is expressly conditioned upon the consummation of another transaction, in which case such notice may be revocable if such transaction is not consummated.  Each such telephonic and written Borrowing Request shall specify the following information in compliance with Section 2.01:
(a)the aggregate amount of the requested Borrowing;
(b)the date of such Borrowing, which shall be a Business Day;
(c)whether such Borrowing is to be an ABR Borrowing or a Term Benchmark Borrowing or an RFR Borrowing; and
(d)in the case of a Term Benchmark Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest Period”; and
(e)the location and number of the Borrower’s account to which funds are to be disbursed, which shall comply with the requirements of Section 2.06.
If no election as to the Type of Revolving Borrowing is specified, then the requested Revolving Borrowing shall be an ABR Borrowing.  If no Interest Period is specified with respect to any requested Term Benchmark Revolving Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.  Promptly following receipt of a Borrowing Request in accordance with this Section 2.03, the Administrative Agent shall advise 
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each Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of the requested Borrowing.
SECTION 1.0m.Swingline Loans.  (a) Subject to the terms and conditions set forth herein, the Swingline Lender may, but shall have no obligation, to make Swingline Loans to the Borrower from time to time during the Availability Period, in an aggregate principal amount at any time outstanding that will not result in (i) the aggregate principal amount of outstanding Swingline Loans exceeding $3,000,000, or (ii) the total Revolving Exposures exceeding the total Commitments; provided that the Swingline Lender shall not be required to make a Swingline Loan to refinance an outstanding Swingline Loan.  Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Swingline Loans.  To request a Swingline Loan, the Borrower shall notify the Administrative Agent of such request by telecopy or through Electronic System, if arrangements for doing so have been approved by the Administrative Agent, not later than 12:00 noon, eastern time, on the day of a proposed Swingline Loan or by such other time and by other procedures as may be agreed upon from time to time between the Borrower and the Swingline Lender.  Each such notice shall be irrevocable (unless such Borrowing is expressly conditioned upon the consummation of another transaction, in which case such notice may be revocable if such transaction is not consummated) and shall specify the requested date (which shall be a Business Day) and amount of the requested Swingline Loan and whether such Swingline Loan shall be an ABR Loan or shall bear interest at an alternate rate agreed upon by the Borrower and the Swingline Lender, and each Swingline Loan shall bear interest at the ABR or at an alternate rate if agreed upon by the Borrower and the Swingline Lender.  The Administrative Agent will promptly advise the Swingline Lender of any such notice received from the Borrower.  The Swingline Lender shall make each Swingline Loan available to the Borrower, to the extent the Swingline Lender elects to make such Swingline Loan, by means of a credit to the general deposit account of the Borrower with the Swingline Lender (or, in the case of a Swingline Loan made to finance the reimbursement of an LC Disbursement as provided in Section 2.05(e), by remittance to the Issuing Bank) on the requested date of such Swingline Loan or by such other procedures as may be agreed upon from time to time between the Borrower and the Swingline Lender.
(30)The Swingline Lender may by written notice given to the Administrative Agent not later than 10:00 a.m., eastern time, on any Business Day require the Lenders to acquire participations on such Business Day in all or a portion of the Swingline Loans outstanding.  Such notice shall specify the aggregate amount of Swingline Loans in which Lenders will participate.  Promptly upon receipt of such notice, the Administrative Agent will give notice thereof to each Lender, specifying in such notice such Lender’s Applicable Percentage of such Swingline Loan or Loans.  Each Lender hereby absolutely and unconditionally agrees, upon receipt of notice as provided above, to pay to the Administrative Agent, for the account of the Swingline Lender, such Lender’s Applicable Percentage of such Swingline Loan or Loans.  Each Lender acknowledges and agrees that its obligation to acquire participations in Swingline Loans pursuant to this paragraph is absolute and unconditional and shall not be affected by any circumstance whatsoever, including the occurrence and continuance of a Default or reduction or termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.  Each Lender shall comply with its obligation under this paragraph by wire transfer of immediately available funds, in the same manner as provided in Section 2.06 with respect to Loans made by such Lender (and Section 2.06 shall apply, mutatis mutandis, to the payment obligations of the Lenders), and the Administrative Agent shall promptly pay to the Swingline Lender the amounts so received by it from the Lenders.  The Administrative Agent shall notify the Borrower of any participations in any Swingline Loan acquired pursuant to this paragraph, and thereafter payments in respect of such Swingline Loan shall be made to the Administrative Agent and not to the Swingline Lender.  Any amounts received by the Swingline Lender from the Borrower (or other party on behalf of the Borrower) in respect of a Swingline Loan after receipt by the Swingline Lender of the 
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proceeds of a sale of participations therein shall be promptly remitted to the Administrative Agent; any such amounts received by the Administrative Agent shall be promptly remitted by the Administrative Agent to the Lenders that shall have made their payments pursuant to this paragraph and to the Swingline Lender, as their interests may appear; provided that any such payment so remitted shall be repaid to the Swingline Lender or to the Administrative Agent, as applicable, if and to the extent such payment is required to be refunded to the Borrower for any reason.  The purchase of participations in a Swingline Loan pursuant to this paragraph shall not relieve the Borrower of any default in the payment thereof.
(31)Upon the making of a Swingline Loan (whether before or after the occurrence of a Default), each Lender shall be deemed, without further action by any party hereto, to have unconditionally and irrevocably purchased from the Swingline Lender without recourse or warranty, an undivided interest and participation in such Swingline Loan in proportion to its Applicable Percentage of the Commitment.  The Swingline Lender may, at any time, require the Lenders to fund their participations.  From and after the date, if any, on which any Lender is required to fund its participation in any Swingline Loan purchased hereunder, such Swingline Loan shall bear interest at the Alternate Base Rate and the Administrative Agent shall promptly distribute to such Lender, such Lender’s Applicable Percentage of all payments of principal and interest and all proceeds of Collateral received by the Administrative Agent in respect of such Loan.
SECTION 1.0n.Letters of Credit.  (a) General.  Subject to the terms and conditions set forth herein, the Borrower may request the issuance of Letters of Credit as the applicant thereof for the support of its or its Subsidiaries’ obligations, in a form reasonably acceptable to the Administrative Agent and the Issuing Bank, at any time and from time to time during the Availability Period.  In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement submitted by the Borrower to, or entered into by the Borrower with, the Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control.  In addition, no letter of credit application or other agreement submitted by the Borrower to, or entered into by the Borrower with, the Issuing Bank relating to any Letter of Credit shall (x) contain any representations or warranties, covenants or events of default not set forth in this Agreement (and to the extent inconsistent herewith, shall be rendered null and void) and (y) all representations and warranties, covenants and events of default contained therein shall contain standards, qualifications, thresholds and exceptions for materiality or otherwise consistent with this Agreement (and, to the extent inconsistent herewith, shall be deemed to incorporate such standards, qualifications, thresholds and exceptions contained herein without action by any other party).
(1)Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions.  To request the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of Credit), the Borrower shall hand deliver or telecopy (or transmit through Electronic Systems, if arrangements for doing so have been approved by the Issuing Bank) to the Issuing Bank and the Administrative Agent (reasonably in advance of the requested date of issuance, amendment, renewal or extension) a notice requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed or extended, and specifying the date of issuance, amendment, renewal or extension (which shall be a Business Day), the date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this Section 2.05), the amount of such Letter of Credit, the name and address of the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit.  If requested by the Issuing Bank, the Borrower also shall submit a letter of credit application on the Issuing Bank’s standard form in connection with any request for a Letter of Credit.  A Letter of Credit shall be issued, amended, renewed or extended only if (and upon issuance, amendment, renewal or extension of each Letter of Credit the Borrower shall be 
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deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension (i) the LC Exposure shall not exceed $25,000,000, and (ii) the total Revolving Exposures shall not exceed the total Commitments.  The Issuing Bank shall not be under any obligation to issue any Letter of Credit if:  (i) any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the Issuing Bank from issuing such Letter of Credit, or any Requirement of Law relating to the Issuing Bank or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over the Issuing Bank shall prohibit, or request that the Issuing Bank refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon the Issuing Bank with respect to such Letter of Credit any restriction, reserve or capital requirement (for which the Issuing Bank is not otherwise compensated hereunder) not in effect on the Effective Date, or shall impose upon the Issuing Bank any unreimbursed loss, cost or expense which was not applicable on the Effective Date and which the Issuing Bank in good faith deems material to it, or (ii) the issuance of such Letter of Credit would violate one or more policies of the Issuing Bank applicable to letters of credit generally.
(2)Expiration Date.  Each Letter of Credit shall expire (or be subject to termination or non-renewal by notice from the applicable Issuing Bank to the beneficiary thereof) at or prior to the close of business on the earlier of (i) the date one year after the date of the issuance of such Letter of Credit or such later date as may be agreed to by the Issuing Bank (or, in the case of any renewal or extension thereof, one year after such renewal or extension) and (ii) the date that is five (5) Business Days prior to the Revolving Credit Maturity Date (unless cash collateralized in the manner described in Section 2.05(j)).
(3)Participations.  By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further action on the part of the Issuing Bank or the Lenders, the Issuing Bank hereby grants to each Lender, and each Lender hereby acquires from the Issuing Bank, a participation in such Letter of Credit equal to such Lender’s Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit.  In consideration and in furtherance of the foregoing, each Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the Issuing Bank, such Lender’s Applicable Percentage of each LC Disbursement made by the Issuing Bank and not reimbursed by the Borrower on the date due as provided in paragraph (e) of this Section 2.05, or of any reimbursement payment required to be refunded to the Borrower for any reason.  Each Lender acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.
(4)Reimbursement.  If the Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, the Borrower shall reimburse such LC Disbursement by paying to the Administrative Agent an amount equal to such LC Disbursement not later than 10:00 a.m., eastern time, on the date that such LC Disbursement is made, if the Borrower shall have received notice of such LC Disbursement prior to 8:00 a.m., eastern time, on such date, or, if such notice has not been received by the Borrower prior to such time on such date, then not later than 10:00 a.m., eastern time, on (i) the Business Day that the Borrower receives such notice, if such notice is received prior to 8:00 a.m., eastern time, on the day of receipt, or (ii) the Business Day immediately following the day that the Borrower receives such notice, if such notice is not received prior to such time on the day of receipt; provided that the Borrower may, subject to the conditions to borrowing set forth herein, request in accordance with Section 2.03 or 2.04 that such payment be financed with an ABR Revolving Borrowing or Swingline Loan in an equivalent amount and, to the extent so financed, the Borrower’s obligation to make such 
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payment shall be discharged and replaced by the resulting ABR Revolving Borrowing or Swingline Loan.  If the Borrower fails to make such payment when due, the Administrative Agent shall notify each Lender of the applicable LC Disbursement, the payment then due from the Borrower in respect thereof and such Lender’s Applicable Percentage thereof.  Promptly following receipt of such notice, each Lender shall pay to the Administrative Agent its Applicable Percentage of the payment then due from the Borrower, in the same manner as provided in Section 2.06 with respect to Loans made by such Lender (and Section 2.06 shall apply, mutatis mutandis, to the payment obligations of the Lenders), and the Administrative Agent shall promptly pay to the Issuing Bank the amounts so received by it from the Lenders.  Promptly following receipt by the Administrative Agent of any payment from the Borrower pursuant to this paragraph, the Administrative Agent shall distribute such payment to the Issuing Bank or, to the extent that Lenders have made payments pursuant to this paragraph to reimburse the Issuing Bank, then to such Lenders and the Issuing Bank as their interests may appear.  Any payment made by a Lender pursuant to this paragraph to reimburse the Issuing Bank for any LC Disbursement (other than the funding of ABR Revolving Loans or a Swingline Loan as contemplated above) shall not constitute a Loan and shall not relieve the Borrower of its obligation to reimburse such LC Disbursement.
(5)Obligations Absolute.  The Borrower’s obligation to reimburse LC Disbursements as provided in paragraph (e) of this Section 2.05 shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by the Issuing Bank under a Letter of Credit against presentation of a draft or other document that does not comply with the terms of such Letter of Credit, or (iv) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section 2.05, constitute a legal or equitable discharge of, or provide a right of setoff against, the Borrower’s obligations hereunder.  Neither the Administrative Agent, the Lenders nor the Issuing Bank, nor any of their Related Parties, shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms, any error in translation with regard to the conversion of foreign currency or otherwise or any consequence arising from causes beyond the control of the Issuing Bank; provided that the foregoing shall not be construed to excuse the Issuing Bank from liability to the Borrower to the extent of any direct damages (as opposed to special, indirect or consequential damages, claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused by the Issuing Bank’s failure to exercise care when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof.  The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of the Issuing Bank (as finally determined by a court of competent jurisdiction), the Issuing Bank shall be deemed to have exercised care in each such determination.  In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, the Issuing Bank may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.
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(6)Disbursement Procedures.  The Issuing Bank shall, within the time allowed by applicable law or the specific terms of the Letter of Credit following its receipt thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit.  The Issuing Bank shall promptly notify the Administrative Agent and the Borrower by telephone (confirmed by telecopy or through Electronic System) of such demand for payment and whether the Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve the Borrower of its obligation to reimburse the Issuing Bank and the Lenders with respect to any such LC Disbursement.
(7)Interim Interest.  If the Issuing Bank shall make any LC Disbursement, then, unless the Borrower shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC Disbursement, at the rate per annum then applicable to ABR Revolving Loans and such interest shall be due and payable on the date when such reimbursement is due; provided that, if the Borrower fails to reimburse such LC Disbursement when due pursuant to paragraph (e) of this Section 2.05, then Section 2.12(c) shall apply.  Interest accrued pursuant to this paragraph shall be for the account of the Issuing Bank, except that interest accrued on and after the date of payment by any Lender pursuant to paragraph (e) of this Section 2.05 to reimburse the Issuing Bank for such LC Disbursement shall be for the account of such Lender to the extent of such payment.
(8)Replacement of the Issuing Bank.
(a)Any Issuing Bank may be replaced at any time by written agreement among the Borrower, the Administrative Agent, the replaced Issuing Bank and the successor Issuing Bank.  The Administrative Agent shall notify the Lenders of any such replacement of the Issuing Bank.  At the time any such replacement shall become effective, the Borrower shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.11(b).  From and after the effective date of any such replacement, (i) the successor Issuing Bank shall have all the rights and obligations of the Issuing Bank under this Agreement with respect to Letters of Credit to be issued thereafter and (ii) references herein to the term “Issuing Bank” shall be deemed to refer to such successor or to any previous Issuing Bank, or to such successor and all previous Issuing Bank, as the context shall require.  After the replacement of the Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations of the Issuing Bank under this Agreement with respect to Letters of Credit then outstanding issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit or extend or otherwise amend any existing Letter of Credit.
(b)Subject to the appointment and acceptance of a successor Issuing Bank reasonably acceptable to the Borrower, any Issuing Bank may resign as an Issuing Bank at any time upon thirty (30) days’ prior written notice to the Administrative Agent, the Borrower and the Lenders, in which case, such resigning Issuing Bank shall be replaced in accordance with Section 2.05(i)(i) above.
(32)Cash Collateralization.  If any Event of Default shall occur and be continuing, on the Business Day that the Borrower receives written notice from the Administrative Agent or the Required Lenders (or Lenders with LC Exposure representing greater than 50% of the total LC Exposure) demanding the deposit of cash collateral pursuant to this paragraph, the Borrower shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Lenders (the “LC Collateral Account”), an amount in cash equal to the LC Exposure as of such date plus accrued and unpaid interest thereon; provided that the 
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obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to the Borrower described in clause (h) or (i) of Section 7.01.  Such deposit shall be held by the Administrative Agent as collateral for the payment and performance of the Secured Obligations.  The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account and the Borrower hereby grants the Administrative Agent a security interest in the LC Collateral Account.  Other than any interest earned on the investment of such deposits, which investments shall be made at the option and sole discretion of the Administrative Agent and at the Borrower’s risk and expense, such deposits shall not bear interest.  Interest or profits, if any, on such investments shall accumulate in such account.  Moneys in such account shall be applied by the Administrative Agent to reimburse the Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated (but subject to the consent of Lenders with LC Exposure representing greater than 50% of the total LC Exposure), be applied to satisfy other Secured Obligations.  If the Borrower is required to provide an amount of cash collateral hereunder as a result of the occurrence of an Event of Default, such amount (to the extent not applied as aforesaid) shall be returned to the Borrower within three (3) Business Days after all such Events of Defaults have been cured or waived.
(33)Letters of Credit Issued for Account of Subsidiaries.  Notwithstanding that a Letter of Credit issued or outstanding hereunder supports any obligations of, or is for the account of, a Subsidiary, or states that a Subsidiary is the “account party,” “applicant,” “customer,” “instructing party,” or the like of or for such Letter of Credit, and without derogating from any rights of the Issuing Bank (whether arising by contract, at law, in equity or otherwise) against such Subsidiary in respect of such Letter of Credit, the Borrower (i) shall reimburse, indemnify and compensate the applicable Issuing Bank hereunder for such Letter of Credit (including to reimburse any and all drawings thereunder) as if such Letter of Credit had been issued solely for the account of the Borrower and (ii) irrevocably waives any and all defenses that might otherwise be available to it as a guarantor or surety of any or all of the obligations of such Subsidiary in respect of such Letter of Credit.  The Borrower hereby acknowledges that the issuance of such Letters of Credit for its Subsidiaries inures to the benefit of the Borrower, and that the Borrower’s business derives substantial benefits from the businesses of such Subsidiaries.
SECTION 1.0o.Funding of Borrowings.  (a) Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately available funds by 11:00 a.m., eastern time, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders in an amount equal to such Lender’s Applicable Percentage; provided that Swingline Loans shall be made as provided in Section 2.04.  The Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to an account of the Borrower maintained with, and acceptable to, the Administrative Agent and designated by the Borrower in the applicable Borrowing Request; provided that ABR Revolving Loans made to finance the reimbursement of an LC Disbursement as provided in Section 2.05(e) shall be remitted by the Administrative Agent to the Issuing Bank.
(2)Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with paragraph (a) of this Section 2.06 and may, in reliance upon such assumption, make available to the Borrower a corresponding amount.  In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender 
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and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in the case of the Borrower, the interest rate applicable to ABR Loans.  If such Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing.
SECTION 1.0p.Interest Elections.  (a) Each Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a Term Benchmark Borrowing, shall have an initial Interest Period as specified in such Borrowing Request.  Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a Term Benchmark Borrowing, may elect Interest Periods therefor, all as provided in this Section 2.07.  The Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing.  This Section 2.07 shall not apply to Swingline Loan Borrowings, which may not be converted or continued.
(34)To make an election pursuant to this Section 2.07, the Borrower shall notify the Administrative Agent of such election either in writing (delivered by hand or fax) by delivering an Interest Election Request signed by a Financial Officer of the Borrower or through Electronic System, if arrangements for doing so have been approved by the Administrative Agent, by the time that a Borrowing Request would be required under Section 2.03 if the Borrower were requesting a Borrowing of the Type resulting from such election to be made on the effective date of such election.  Each such Interest Election Request shall be irrevocable.  Notwithstanding any contrary provision herein, this Section 2.07 shall not be construed to permit the Borrower to elect an Interest Period for Term Benchmark Loans that does not comply with Section 2.02(d).
(35)Each Interest Election Request (including requests submitted through Electronic System) shall specify the following information in compliance with Section 2.02:
(a)the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);
(b)the effective date of the Borrowing to be made pursuant to such Interest Election Request, which shall be a Business Day;
(c)whether the resulting Borrowing is to be an ABR Borrowing, a Term Benchmark Borrowing or an RFR Borrowing; and
(d)if the resulting Borrowing is a Term Benchmark Borrowing, the Interest Period to be applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of the term “Interest Period”.
If any such Interest Election Request requests a Term Benchmark Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.
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(9)Promptly following receipt of an Interest Election Request, the Administrative Agent shall advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.
(10)If the Borrower fails to deliver a timely Interest Election Request with respect to a Term Benchmark Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be converted to an ABR Borrowing.  Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Borrower in writing, then, so long as an Event of Default is continuing (i) no outstanding Borrowing may be converted to or continued as a Term Benchmark Borrowing and (ii) unless repaid, (A) each Term Benchmark Borrowing and (B) each RFR Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto.
SECTION 1.0q.Termination and Reduction of Commitments; Increase of Commitments.
(36)Unless previously terminated, all Commitments shall terminate on the Revolving Credit Maturity Date.
(37)The Borrower may at any time terminate the Commitments upon the Payment in Full of the Obligations.
(38)The Borrower may from time to time reduce the Commitments; provided that (i) each reduction of the Commitments shall be in an amount that is an integral multiple of $1,000,000 and not less than $1,000,000 and (ii) the Borrower shall not terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the Loans, the aggregate Revolving Exposure of all Lenders exceeds the total Commitments.
(39)The Borrower shall notify the Administrative Agent of any election to terminate or reduce the Commitments under paragraph (b) or (c) of this Section 2.08 at least three (3) Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof.  Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof.  Each notice delivered by the Borrower pursuant to this Section 2.08  shall be irrevocable; provided that a notice of termination of the Commitments delivered by the Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities or another transaction, in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied.  Any termination or reduction of the Commitments shall be permanent.  Each reduction of the Commitments shall be made ratably among the Lenders in accordance with their respective Commitments.
(40)Subject to the conditions set forth below, the Borrower may, upon at least ten (10) days (or such other period of time agreed to between the Administrative Agent and the Borrower) prior written notice to the Administrative Agent, increase the Aggregate Commitments from time to time, either by designating a lender not theretofore a Lender to become a Lender (such designation to be effective only with the prior written consent of the Administrative Agent (such consent not to be unreasonably withheld, conditioned or delayed)) or by agreeing with an existing Lender that such Lender’s Commitment shall be increased (thus increasing the Aggregate Commitments); provided that:
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(a)no Event of Default shall have occurred and be continuing hereunder as of the effective date of such increase (subject, in the case of any Loans being used to finance a Limited Condition Transaction, to Section 1.08);
(b)the representations and warranties made by the Borrower and contained in Article III shall be true and correct in all material respects on and as of the effective date of such increase (other than those representations and warranties that by their terms speak as of a particular date, which representations and warranties shall be true and correct in all material respects as of such particular date) (subject, in the case of any Loans being used to finance a Limited Condition Transaction, to Section 1.08);
(c)the amount of such increase in the Aggregate Commitments shall not be less than $5,000,000 (or such other minimum amount agreed to between the Administrative Agent and the Borrower), and the aggregate amount of all such increases in the Aggregate Commitments shall not exceed $50,000,000, or such other amount agreed to between the Required Lenders and Borrower;
(d)The Borrower and the Lender or lender not theretofore a Lender, shall execute and deliver to the Administrative Agent, a Lender Addition and Acknowledgement Agreement, in form and substance satisfactory to the Administrative Agent and acknowledged by the Administrative Agent and each Borrower;
(e)no existing Lender shall be obligated in any way to increase its Commitment; 
(f)the Administrative Agent shall have been provided with a fully executed copy of the amendment in respect of such increase; and
(g)to the extent required, the Administrative Agent shall have received legal opinions, resolutions, and other documents consistent with those delivered by the Borrower to the Administrative Agent on the Third Amendment Effective Date.
Upon the execution, delivery, acceptance and recording of the Lender Addition and Acknowledgement Agreement, from and after the effective date specified in a Lender Addition and Acknowledgement Agreement, such existing Lender shall have a Commitment as therein set forth or such other Lender shall become a Lender with a Commitment as therein set forth and all the rights and obligations of a Lender with such a Commitment hereunder.  Upon its receipt of a Lender Addition and Acknowledgement Agreement together with any note or notes, if requested, subject to such addition and assumption and the written consent to such addition and assumption, the Administrative Agent shall, if such Lender Addition and Acknowledgement Agreement has been completed and the other conditions described in this Section 2.08 have been satisfied:  (x) accept such Lender Addition and Acknowledgement Agreement; (y) record the information contained therein in the Register; and (z) give prompt notice thereof to the Lenders and the Borrower and deliver to the Lenders a schedule reflecting the new Commitments.  The Lenders (new or existing) shall accept an assignment from the existing Lenders, and the existing Lenders shall make an assignment to the new or existing Lender accepting a new or increased Commitment, of a direct or participation interest in each then outstanding Loans and Letter of Credit such that, after giving effect thereto, all Revolving Exposure hereunder is held ratably by the Lenders in proportion to their respective Commitments.  Assignments pursuant to the preceding sentence shall be made in exchange for the principal amount assigned plus accrued and unpaid interest and facility and letter of credit fees.  The Borrower shall make any payments under Section 2.15 resulting from such assignments.  Any reference in this Agreement to Aggregate Commitments means the aggregate Commitments of all Lenders.
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Notwithstanding the above, with respect to any increase in the Aggregate Commitments incurred to finance a Limited Condition Transaction (each a “Limited Condition Transaction Incremental Loan”), clause (i) and (ii) of this Section 2.08(e) shall be deemed to have been satisfied so long as (A) as of the date of consummation of the Limited Condition Transaction, no Specified Event of Default shall have occurred and be continuing or would result from the consummation of such Limited Condition Transaction, (B) as of the date of the borrowing of such Limited Condition Transaction Incremental Loan, no Specified Event of Default is in existence immediately before or after giving effect (including on a Pro Forma Basis) to such borrowing and to any concurrent transactions and any substantially concurrent use of proceeds thereof, (C) the representations and warranties set forth in clause (ii) above shall be tested as of the LCT Test Date and be true and correct in all material respects on and as of such LCT Test Date (other than those representations and warranties that by their terms speak as of a particular date, which representations and warranties shall be true and correct in all material respects as of such particular date), and (D) as of the date of the borrowing of such Limited Condition Transaction Incremental Loan, customary “Sungard” representations and warranties shall be included to the extent reasonably determined by Borrower and the Lenders providing such Limited Condition Transaction Incremental Loan.
SECTION 1.0a.Repayment of Loans; Evidence of Debt.  (a) The Borrower hereby unconditionally promises to pay (i) to the Administrative Agent for the account of each Lender the then unpaid principal amount of each Revolving Loan on the Revolving Credit Maturity Date, and (ii) to the Swingline Lender the then unpaid principal amount of each Swingline Loan on the earliest of the Revolving Credit Maturity Date, the date three (3) Business Days after demand by the Swingline Lender in its discretion if no Default exists or the demand by the Swingline Lender in its discretion if a Default exists.
(1)If at any time the aggregate Revolving Exposure of all Lenders exceeds the total Commitments, the Borrower shall promptly, and in any event within one (1) Business Day, repay such excess.  If any such excess remains after repayment in full of all outstanding Revolving Loans and Swingline Loans, the Borrower shall provide cash collateral for the LC Exposure in the manner set forth herein to the extent required to eliminate such excess.
(2)Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder.
(3)The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Class and Type thereof and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof.
(4)The entries made in the accounts maintained pursuant to paragraph (c) or (d) of this Section 2.09 shall be prima facie evidence of the existence and amounts of the obligations recorded therein absent manifest error; provided that in the event of a conflict between such records and the Register, the Register shall control absent manifest error; and provided further that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Loans in accordance with the terms of this Agreement.
(5)Any Lender may request that Loans made by it be evidenced by a promissory note.  In such event, the Borrower shall prepare, execute and deliver to such Lender a promissory 
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note payable to the order of such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in a form reasonably acceptable to the Administrative Agent. Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section 9.04) be represented by one or more promissory notes in such form payable to the order of the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns).
j.Prepayment of Loans.  (a) The Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or in part without premium or penalty but subject to breakfunding payments pursuant to Section 2.15, subject to prior notice in accordance with paragraph (b) of this Section 2.10.
(6)The Borrower shall notify the Administrative Agent (and, in the case of prepayment of a Swingline Loan, the Swingline Lender) by telephone (confirmed by fax) or through Electronic System, if arrangements for doing so have been approved by the Administrative Agent, of any prepayment hereunder (i) in the case of prepayment of a Term Benchmark Borrowing, not later than 11:00 a.m., eastern time, three (3) Business Days before the date of prepayment, (ii) in the case of prepayment of an RFR Borrowing, not later than five (5) Business Days before the date of prepayment, (iii) in the case of prepayment of an ABR Borrowing, not later than 11:00 a.m., eastern time, one Business Day before the date of prepayment or (iv) in the case of prepayment of a Swingline Loan, not later than 11:00 a.m., eastern time, on the date of prepayment.  Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid; provided that, if a notice of prepayment is given in connection with a conditional notice of termination of the Commitments or other transactions as contemplated by Section 2.08, then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.08.  Promptly following receipt of any such notice or prepayment or termination, the Administrative Agent shall advise the Lenders of the contents thereof.  Each partial prepayment of any Borrowing shall be in an amount that would be permitted in the case of an advance of a Borrowing of the same Type as provided in Section 2.02.  Each prepayment of a Revolving Borrowing shall be applied ratably to the Revolving Loans included in the prepaid Borrowing.
SECTION 1.a.Fees.  (a) The Borrower agrees to pay to the Administrative Agent for the account of each Lender a commitment fee, which shall accrue at the rate equal to the Applicable Margin per annum on the average daily unused amount of the Available Commitment of such Lender during the period from and including the Effective Date to but excluding the date on which the Lenders’ Commitments terminate.  Accrued commitment fees shall be payable in arrears on the fifteenth (15th) day following such last day of March, June, September and December of each year and on the date on which the Commitments terminate, commencing on the first such date to occur after the date hereof.  All commitment fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).
(7)The Borrower agrees to pay (i) to the Administrative Agent for the account of each Lender a participation fee with respect to its participations in Letters of Credit, which shall accrue at the same Applicable Margin used to determine the interest rate applicable to Term Benchmark Revolving Loans on the average daily amount of such Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date on which such Lender’s Commitment terminates and the date on which such Lender ceases to have any LC Exposure, and (ii) to the Issuing Bank a fronting fee, which shall accrue at the rate of 0.125% per annum on the average daily amount of the LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the 
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Effective Date to but excluding the later of the date of termination of the Commitments and the date on which there ceases to be any LC Exposure, as well as the Issuing Bank’s standard fees with respect to the issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings thereunder.  Participation fees and fronting fees accrued through and including the last day of calendar quarter shall be payable on the third Business Day following such last day, commencing on the first such date to occur after the Effective Date; provided that all such fees shall be payable on the date on which the Commitments terminate and any such fees accruing after the date on which the Commitments terminate shall be payable on demand.  Any other fees payable to the Issuing Bank pursuant to this paragraph shall be payable within 10 days after demand.  All participation fees and fronting fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).
(8)The Borrower agrees to pay to the Administrative Agent for its own account, fees payable in the amounts and at the times separately agreed upon between the Borrower and the Administrative Agent.
(9)All fees payable hereunder shall be paid on the dates due, in immediately available funds, to the Administrative Agent (or to the Issuing Bank, in the case of fees payable to it) for distribution, in the case of commitment fees and participation fees, to the Lenders.  Fees paid shall not be refundable under any circumstances.
k.Interest.  (a) The Loans comprising each ABR Borrowing (including each Swingline Loan, other than any Swingline Loan for which an alternate interest rate is agreed upon between the Borrower and Swingline Lender, which shall bear interest at such rate) shall bear interest at the Alternate Base Rate plus the Applicable Margin.  
(10)The Loans comprising each Term Benchmark Borrowing shall bear interest at the Adjusted Term SOFR Rate for the Interest Period in effect for such Borrowing plus the Applicable Margin. Each RFR Loan shall bear interest at a rate per annum equal to the Adjusted Daily Simple SOFR plus the Applicable Margin.
(11)Notwithstanding the foregoing, upon and during the continuance of an Event of Default, at the election of the Administrative Agent or Required Lenders, upon written notice to the Borrower, the interest rates applicable to Loans and the rate at which fees payable to all Lenders accrue on Letters of Credit shall be increased by 2.0% per annum.
(12)Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan and, in the case of Revolving Loans, upon termination of the Commitments; provided that (i) interest accrued pursuant to paragraph (c) of this Section 2.12 shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than a prepayment of an ABR Revolving Loan prior to the end of the Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of any conversion of any Term Benchmark Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion.
(13)Interest computed by reference to the Term SOFR Rate or Daily Simple SOFR hereunder shall be computed on the basis of a year of 360 days. Interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year. In each case, interest shall be payable for the actual number of days elapsed (including the first day but excluding the last day). All interest hereunder on any Loan shall be computed on a daily basis based upon the outstanding principal amount of such Loan as of the applicable date of 
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determination. The applicable Alternate Base Rate, Adjusted Daily Simple SOFR, Daily Simple SOFR, Adjusted Term SOFR Rate, or Term SOFR Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error.
SECTION 1.a.Alternate Rate of Interest; Illegality.
(14)Subject to clauses (b), (c), (d), (e) and (f) of this Section 2.13, if :
(1)the Administrative Agent determines (which determination shall be conclusive and binding absent manifest error) (A) prior to the commencement of any Interest Period for a Term Benchmark Borrowing, that adequate and reasonable means do not exist for ascertaining the Adjusted Term SOFR Rate or the Term SOFR Rate, as applicable (including, because the Term SOFR Reference Rate is not available or published on a current basis) for such Interest Period or (B) at any time, that adequate and reasonable means do not exist for ascertaining the applicable Adjusted Daily Simple SOFR or Daily Simple SOFR; or
(2)the Administrative Agent is advised by the Required Lenders that (A) prior to the commencement of any Interest Period for a Term Benchmark Borrowing, the Adjusted Term SOFR Rate for such Interest Period will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or Loan) included in such Borrowing for  such Interest Period or (B) at any time, the Adjusted Daily Simple SOFR will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or its Loan) included in such Borrowing;
then the Administrative Agent shall give notice thereof to the Borrower and the Lenders through Electronic System as provided in Section 9.01 as promptly as practicable thereafter and, until (x) the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist with respect to the relevant Benchmark and (y) the Borrower delivers a new Interest Election Request in accordance with the terms of Section 2.07 or a new Borrowing Request in accordance with the terms of Section 2.03, (1) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Term Benchmark Borrowing and any Borrowing Request that requests a Term Benchmark Borrowing shall instead be deemed to be an Interest Election Request or a Borrowing Request, as applicable, for (x) an RFR Borrowing so long as the Adjusted Daily Simple SOFR is not also the subject of Section 2.13(a)(i) or (ii) above or (y) be repaid or converted into an ABR Borrowing if the Adjusted Daily Simple SOFR also is the subject of Section 2.13(a)(i) or (ii) above and (2) any Borrowing Request that requests an RFR Borrowing shall instead be deemed to be a Borrowing Request, as applicable, for an ABR Borrowing; provided that if the circumstances giving rise to such notice affect only one Type of Borrowings, then all other Types of Borrowings shall be permitted.  Furthermore, if any Term Benchmark Loan or RFR Loan is outstanding on the date of the Borrower’s receipt of the notice from the Administrative Agent referred to in this Section 2.13(a) with respect to a Relevant Rate applicable to such Term Benchmark Loan or RFR Loan, then until (x) the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist with respect to the relevant Benchmark and (y) the Borrower delivers a new Interest Election Request in accordance with the terms of Section 2.07 or a new Borrowing Request in accordance with the terms of Section 2.03, (1) any Term Benchmark Loan shall on the last day of the Interest Period applicable to such Loan (or the next succeeding Business Day if such day is not a Business Day), be converted by the Administrative Agent to, and shall constitute, (x) an RFR Borrowing so long as the Adjusted Daily Simple SOFR is not also the subject of Section 2.13(a)(i) or (ii) above or (y) an ABR Loan if the Adjusted Daily Simple SOFR also is the subject of Section 2.13(a)(i) or (ii) above, on such day, and (2) any RFR Loan shall on and from such day be converted by the Administrative Agent to, and shall constitute, an ABR Loan. 
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(15) Notwithstanding anything to the contrary herein or in any other Loan Document, (and any Swap Agreement shall be deemed not to be a “Loan Document” for purposes of this Section 2.13), if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then (x) if a Benchmark Replacement is determined in accordance with clause (1) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document and (y) if a Benchmark Replacement is determined in accordance with clause (3) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of any Benchmark setting at or after 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is provided to the Lenders without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document so long as the Administrative Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required Lenders of each affected Class.
(16)Notwithstanding anything to the contrary herein or in any other Loan Document, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.
(17)The Administrative Agent will promptly notify the Borrower and the Lenders of (i) any occurrence of a Benchmark Transition Event,  (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes, (iv) the removal or reinstatement of any tenor of a Benchmark pursuant to clause (f) below and (v) the commencement or conclusion of any Benchmark Unavailability Period.  Any determination, decision or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this Section 2.13, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Agreement or any other Loan Document, except, in each case, as expressly required pursuant to this Section 2.13.
(18)Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate (including the Term SOFR Rate) and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion or (B) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is or will be no longer representative, then the Administrative Agent may modify the definition of “Interest Period” for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is or will no longer be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify the definition of “Interest Period” for all Benchmark settings at or after such time to reinstate such previously removed tenor.
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(19)Upon the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke any request for a Term Benchmark Borrowing or RFR Borrowing of, conversion to or continuation of Term Benchmark Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted (1) any request for a Term Benchmark Borrowing into a request for a Borrowing of or conversion to (A) an RFR Borrowing so long as the Adjusted Daily Simple SOFR is not the subject of a Benchmark Transition Event or (B) an ABR Borrowing if the Adjusted Daily Simple SOFR is the subject of a Benchmark Transition Event or (2) any such request for an RFR Borrowing into a request for an ABR Borrowing.  During any Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of ABR based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of ABR.  Furthermore, if any Term Benchmark Loan or RFR Loan is outstanding on the date of the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period with respect to a Relevant Rate applicable to such Term Benchmark Loan or RFR Loan, then until such time as a Benchmark Replacement is implemented pursuant to this Section 2.13, (1) any Term Benchmark Loan shall on the last day of the Interest Period applicable to such Loan (or the next succeeding Business Day if such day is not a Business Day), be converted by the Administrative Agent to, and shall constitute, (x) an RFR Loan so long as the Adjusted Daily Simple SOFR is not the subject of a Benchmark Transition Event or (y) an ABR Loan if the Adjusted Daily Simple SOFR is the subject of a Benchmark Transition Event, on such day and (2) any RFR Loan shall on and from such day be converted by the Administrative Agent to, and shall constitute an ABR Loan.
l.Increased Costs.  (a) If any Change in Law shall:
(a)impose, modify or deem applicable any reserve, special deposit, liquidity  or similar requirement (including any compulsory loan requirement, insurance charge or other assessment) against assets of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted Term SOFR Rate) or the Issuing Bank; or
(b)impose on any Lender or the Issuing Bank or the applicable offshore interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender or any Letter of Credit or participation therein;
and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, continuing, converting into or maintaining any Loan (or of maintaining its obligation to make any such Loan) or to increase the cost to such Lender,  the Issuing Bank or such other Recipient of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender,  the Issuing Bank or such other Recipient hereunder (whether of principal, interest or otherwise), then the Borrower will pay to such Lender,  the Issuing Bank or such other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender, the Issuing Bank or such other Recipient, as the case may be, for such additional costs incurred or reduction suffered.  For the avoidance of doubt, this Section 2.14 shall not apply to Taxes, which shall be governed exclusively by Section 2.16.
(1)If any Lender or the Issuing Bank determines that any Change in Law regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender’s or the Issuing Bank’s capital or on the capital of such Lender’s or the Issuing Bank’s holding company, if any, as a consequence of this Agreement, the Commitments of or the Loans made by, or participations in Letters of Credit or Swingline Loans held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below that which such Lender or 
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the Issuing Bank or such Lender’s or the Issuing Bank’s holding company could have achieved but for such Change in Law other than due to Taxes which, for the avoidance of doubt, are covered by Section 2.16 (taking into consideration such Lender’s or the Issuing Bank’s policies and the policies of such Lender’s or the Issuing Bank’s holding company with respect to capital adequacy and liquidity), then from time to time the Borrower will pay to such Lender or the Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company for any such reduction suffered.
(2)A certificate in reasonable detail of a Lender or the Issuing Bank setting forth the amount or amounts necessary to compensate such Lender or the Issuing Bank or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section 2.14 shall be delivered to the Borrower and shall be conclusive absent manifest error.  The Borrower shall pay such Lender or the Issuing Bank, as the case may be, the amount shown as due on any such certificate within thirty (30) days after receipt thereof.
(3)Failure or delay on the part of any Lender or the Issuing Bank to demand compensation pursuant to this Section 2.14 shall not constitute a waiver of such Lender’s or the Issuing Bank’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender or the Issuing Bank pursuant to this Section 2.14 for any increased costs or reductions incurred more than 270 days prior to the date that such Lender or the Issuing Bank, as the case may be, notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or the Issuing Bank’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 270-day period referred to above shall be extended to include the period of retroactive effect thereof.
m.Break Funding Payments.  
(20)With respect to Loans that are not RFR Loans, in the event of (a) the payment of any principal of any Term Benchmark Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default or as a result of any  prepayment pursuant to Section 2.10), (b) the conversion of any Term Benchmark Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Term Benchmark Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked under Section 2.08(d) and is revoked in accordance therewith), or (d) the assignment of any Term Benchmark Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.19, then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event.  A certificate in reasonable detail of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section 2.15 shall be delivered to the Borrower and shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount shown as due on any such certificate within thirty (30) days after receipt thereof.
(21)With respect to RFR Loans, in the event of (i) the payment of any principal of any RFR Loan other than on the Interest Payment Date applicable thereto (including as a result of an Event of Default or an optional or mandatory prepayment of Loans), (ii) the failure to borrow or prepay any RFR Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked under Section 2.10 and is revoked in accordance therewith) or (iii) the assignment of any RFR Loan other than on the Interest Payment Date applicable thereto as a result of a request by the Borrower pursuant to Section 2.17, then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event.  A certificate of any Lender setting forth any amount or amounts that such Lender is 
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entitled to receive pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount shown as due on any such certificate within thirty (30) days after receipt thereof.
SECTION 1.a.Withholding Taxes; Gross Up.
(22)Payments Free of Taxes.  Any and all payments by or on account of any obligation of the Borrower under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable law.  If any applicable law (as determined in the good faith discretion of an applicable withholding agent) requires the deduction or withholding of any Tax from any such payment by a withholding agent, then the applicable withholding agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section 2.16), the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.
(23)Payment of Other Taxes by the Borrower.  The Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for, Other Taxes.
(24)Evidence of Payment.  As soon as practicable after any payment of Taxes by the Borrower to a Governmental Authority pursuant to this Section 2.16, the Borrower shall deliver to the Administrative Agent either of (i) the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment, or (ii) other evidence of such payment reasonably satisfactory to the Administrative Agent.
(25)Indemnification by the Borrower.  The Borrower shall indemnify each Recipient, within twenty (20) days after written demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section 2.16) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority; provided that if the Borrower reasonably believes that such Taxes were not correctly or legally asserted, the Administrative Agent, or Lender, as applicable, will use reasonable efforts to cooperate with the Borrower’s efforts to obtain a refund of such Taxes (which if successful shall be repaid to Borrower in accordance with Section 2.16(g)).  A certificate as to the amount of such payment or liability delivered to Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.
(26)Indemnification by the Lenders.  Each Lender shall severally indemnify the Administrative Agent, within twenty (20) days after written demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 9.04(c) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the 
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amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Administrative Agent to setoff and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to such Lender from any other source against any amount due to the Administrative Agent under this paragraph (e).
(27)Status of Lenders.
(a)Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements.  Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 2.16(f)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.
(b)Without limiting the generality of the foregoing, in the event that the Borrower is a U.S. Person,
(i)any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), an executed copy of IRS Form W 9 certifying that such Lender is exempt from U.S. federal backup withholding tax;
(ii)any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:
(1)in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the U.S. is a party (x) with respect to payments of interest under any Loan Document, an executed copy of IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;
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(2)in the case of a Foreign Lender claiming that its extension of credit will generate U.S. effectively connected income, an executed copy of IRS Form W-8ECI;
(3)in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit C-1 to the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) an executed copy of IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable; or
(4)to the extent a Foreign Lender is not the beneficial owner, an executed copy of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, a U.S. Tax Compliance Certificate substantially in the form of Exhibit C-2 or Exhibit C-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit C-4 on behalf of each such direct and indirect partner;
(iii)any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed copies of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and
(iv)if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.
Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.
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(1)Treatment of Certain Refunds.  If any party determines, in its sole discretion exercised in good faith, that it has received a refund (or credit in lieu of a refund) of any Taxes as to which it has been indemnified pursuant to this Section 2.16 (including by the payment of additional amounts pursuant to this Section 2.16), it shall pay to the indemnifying party an amount equal to such refund or credit (but only to the extent of indemnity payments made under this Section 2.16 with respect to the Taxes giving rise to such refund or credit), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund or credit).  Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (g) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund or credit to such Governmental Authority.  Notwithstanding anything to the contrary in this paragraph (g), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (g) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund or credit had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts giving rise to such refund or credit had never been paid.  This paragraph (g) shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.
(2)Survival.  Each party’s obligations under this Section 2.16 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document (including the Payment in Full of the Secured Obligations).
(3)Defined Terms.  For purposes of this Section 2.16, the term “Lender” includes any Issuing Bank and the term “applicable law” includes FATCA.
SECTION 1.a.Payments Generally; Allocation of Proceeds; Sharing of Set-offs.  (a) The Borrower shall make each payment required to be made by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 2.14, 2.15 or 2.16, or otherwise) prior to 1:00 p.m., eastern time, on the date when due, in immediately available funds, without set off or counterclaim.  Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon.  All such payments shall be made to the Administrative Agent at such office designated by the Administrative Agent, except payments to be made directly to the Issuing Bank or Swingline Lender as expressly provided herein and except that payments pursuant to Sections 2.14, 2.15, 2.16 and 9.03 shall be made directly to the Persons entitled thereto.  The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof. Except as otherwise set forth in the definition of “Interest Period”, if any payment or performance hereunder shall be due on a day that is not a Business Day, the date for payment or performance shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension.  All payments hereunder shall be made in dollars.
(28)Any proceeds of Collateral or payments on Subsidiary Guaranties received by the Administrative Agent (i) not constituting either (A) a specific payment of principal, interest, fees or other sum payable under the Loan Documents (which shall be applied as specified by the Borrower) or (B) a mandatory prepayment (which shall be applied in accordance with Section 2.09(b)) or (ii) after an Event of Default has occurred and is continuing and the 
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Administrative Agent so elects or the Required Lenders so direct, such funds shall be applied ratably first, to pay any fees, indemnities, or expense reimbursements including amounts then due to the Administrative Agent and the Issuing Bank from the Borrower (other than in connection with Swap Obligations), second, to pay any fees or expense reimbursements then due to the Lenders from the Borrower (other than in connection with Swap Obligations), third, to pay interest then due and payable on the Loans and the Letters of Credit ratably, fourth, to prepay principal on the Loans and unreimbursed LC Disbursements ratably, to pay an amount to the Administrative Agent equal to the aggregate undrawn face amount of all outstanding Letters of Credit and the aggregate amount of any unpaid LC Disbursements, to be held as cash collateral for such Obligations and to payment of any amounts owing with respect to Swap Obligations and Banking Services Obligations (all such amounts under this “fourth” item being applied ratably in accordance with all such amounts due), fifth, to the payment of any other Secured Obligation due to the Administrative Agent or any Lender or any of their Affiliates, and sixth, to the payment of the surplus, if any, to whoever may be lawfully entitled to receive such surplus.  Notwithstanding anything to the contrary contained in this Agreement, unless so directed by the Borrower, or unless an Event of Default is in existence, none of the Administrative Agent or any Lender shall apply any payment which it receives to any Term Benchmark Loan of a Class, except (a) on the expiration date of the Interest Period applicable to any such Term Benchmark Loan or (b) in the event, and only to the extent, that there are no outstanding ABR Loans of the same Class and, in any event, the Borrower shall pay the break funding payment required in accordance with Section 2.15.  The Administrative Agent and the Lenders shall have the continuing and exclusive right to apply and reverse and reapply any and all such proceeds and payments to any portion of the Secured Obligations.  Notwithstanding the foregoing, Secured Obligations arising under Banking Services Obligations or Swap Obligations shall be excluded from the application described above and paid in clause fifth if the Administrative Agent has not received written notice thereof, together with such supporting documentation as the Administrative Agent may have reasonably requested from the applicable provider of such Banking Services or Swap Agreements in accordance with Section 2.21.
(29)At the request of the Borrower, all payments of principal, interest, LC Disbursements, fees, premiums, reimbursable expenses, and other sums payable under the Loan Documents, may be paid from the proceeds of Borrowings made hereunder.
(30)If, except as otherwise expressly provided herein, any Lender shall, by exercising any right of set off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or participations in LC Disbursements or Swingline Loans resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans and participations in LC Disbursements and Swingline Loans and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Loans and participations in LC Disbursements and Swingline Loans of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and participations in LC Disbursements and Swingline Loans; provided that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in LC Disbursements or Swingline Loans to any assignee or participant, other than to the Borrower or any Subsidiary thereof (as to which the provisions of this paragraph shall apply).  The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim 
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with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.
(31)Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the Issuing Bank hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may be, the amount due.  In such event, if the Borrower has not in fact made such payment, then each of the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or the Issuing Bank with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.
(32)If any Lender shall fail to make any payment required to be made by it pursuant to Section 2.04(c), 2.05(d) or (e), 2.06(b), 2.17(c) or 9.03(c), then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid.
(33)The Administrative Agent may from time to time provide the Borrower with account statements or invoices with respect to any of the Obligations (the “Statements”).  The Administrative Agent is under no duty or obligation to provide Statements, which, if provided, will be solely for the Borrower’s convenience.   Statements may contain estimates of the amounts owed during the relevant billing period, whether of principal, interest, fees or other Obligations.  If the Borrower pays the full amount indicated on a Statement on or before the later of the due date indicated on such Statement and the date required under this Agreement, the Borrower shall not be in default of payment with respect to the billing period indicated on such Statement; provided that acceptance by the Administrative Agent, on behalf of the Lenders, of any payment that is less than the total amount actually due at that time (including but not limited to any past due amounts) shall not constitute a waiver of the Administrative Agent’s or the Lenders’ right to receive payment in full at another time.
n.Mitigation Obligations; Replacement of Lenders.
(34)If any Lender requests compensation under Section 2.14, or if the Borrower is required to pay any Indemnified Taxes or additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.16, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.14 or 2.16, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be materially disadvantageous to such Lender.  The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.
(35)If (i) any Lender requests compensation under Section 2.14 or 2.15, (ii) the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender) pursuant to Section 2.16, (iii) any Lender becomes a Defaulting Lender or (iv) any Lender shall become a Non-consenting Lender (as defined below), then the Borrower may, at its sole expense and effort, upon notice to such 
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Lender and the Administrative Agent, (x) terminate the applicable Commitments of such Lender and repay the outstanding principal of its Loans of the relevant Class or Classes, accrued interest thereon, accrued fees and all other amounts payable to it hereunder as of such termination date or (y) require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 9.04), all its interests, rights (other than its existing rights to payments pursuant to Sections 2.14, 2.15 or 2.16) and obligations under this Agreement and other Loan Documents to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that (A) the Borrower shall have received the prior written consent of the Administrative Agent (to the extent the consent of the Administrative Agent would be required under Section 9.04 and in circumstances where its consent would be required under Section 9.04, the Issuing Bank and the Swingline Lender), which consent shall not unreasonably be withheld, conditioned or delayed, (B) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and funded participations in LC Disbursements and Swingline Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts) and (C) in the case of any such assignment resulting from a claim for compensation under Section 2.15 or payments required to be made pursuant to Section 2.14, such assignment will result in a reduction in such compensation or payments.   A Lender shall not be required to make any such assignment and delegation (and such termination repayment shall not occur) if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment, delegation, termination and repayment cease to apply (in the case of a termination and repayment, prior to the date fixed in the applicable notice to such lender for such termination and repayment).  Each party hereto agrees that (1) an assignment required pursuant to this paragraph may be effected pursuant to an Assignment and Assumption executed by the Borrower, the Administrative Agent and the assignee (or, to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and such parties are participants), and (2) the Lender required to make such assignment need not be a party thereto in order for such assignment to be effective and shall be deemed to have consented to and be bound by the terms thereof; provided that, following the effectiveness of any such assignment, the other parties to such assignment agree to execute and deliver such documents necessary to evidence such assignment as reasonably requested by the applicable assigning Lender, provided that any such documents shall be without recourse to or warranty by the parties thereto.  In the event that (i) the Borrower or the Administrative Agent have requested the Lenders to consent to a departure or waiver of any provisions of the Loan Documents or to agree to any other modification thereto, (ii) the consent, waiver or other modification in question requires the agreement of all Lenders (or, all directly and adversely affected Lenders or any other Class or group of Lenders other than Required Lenders (or other applicable majority) in accordance with the terms of Section 9.02) and (iii) the Required Lenders (or, in the case of any Class voting, the holders of a majority of the outstanding Loans and unused Commitments in respect of such Class) have agreed to such consent, waiver or other modification, then any Lender who does not agree to such consent, waiver or other modification shall be deemed a “ Non-consenting Lender ”.
SECTION 1.b.Defaulting Lenders.  Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for so long as such Lender is a Defaulting Lender:
(36)fees shall cease to accrue on the unfunded portion of the Commitment of such Defaulting Lender pursuant to Section 2.11(a);
(37)any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or 
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mandatory, at maturity, pursuant to Section 2.17(b) or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 9.08 shall be applied at such time or times as may be determined by the Administrative Agent as follows:  first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; second, to the payment on a pro rata basis of any amounts owing by such Defaulting Lender to any Issuing Bank or Swingline Lender hereunder; third, to cash collateralize LC Exposure with respect to such Defaulting Lender in accordance with this Section 2.19; fourth, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; fifth, if so determined by the Administrative Agent and the Borrower, to be held in a deposit account and released pro rata in order to (x) satisfy such Defaulting Lender’s potential future funding obligations with respect to Loans under this Agreement and (y) cash collateralize future LC Exposure with respect to such Defaulting Lender with respect to future Letters of Credit issued under this Agreement, in accordance with this Section 2.19; sixth, to the payment of any amounts owing to the Lenders, the Issuing Banks or Swingline Lender as a result of any judgment of a court of competent jurisdiction obtained by any Lender, the Issuing Banks or Swingline Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement or under any other Loan Document; seventh, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement or under any other Loan Document; and eighth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal amount of any Loans or LC Disbursements in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made or the related Letters of Credit were issued at a time when the conditions set forth in Section 4.02 were satisfied or waived, such payment shall be applied solely to pay the Loans of, and LC Disbursements owed to, all non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or LC Disbursements owed to, such Defaulting Lender until such time as all Loans and funded and unfunded participations in the Borrower’s obligations corresponding to such Defaulting Lender’s LC Exposure  and Swingline Loans are held by the Lenders pro rata in accordance with the Commitments without giving effect to clause (d) below.  Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post cash collateral pursuant to this Section 2.19 shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto;
(38)such Defaulting Lender shall not have the right to vote on any issue on which voting is required (other than to the extent expressly provided in Section 9.02(b)) and the Commitment and Revolving Exposure of such Defaulting Lender shall not be included in determining whether the Required Lenders have taken or may take any action hereunder or under any other Loan Document; provided that, except as otherwise provided in Section 9.02, this clause (b) shall not apply to the vote of a Defaulting Lender in the case of an amendment, waiver or other modification requiring the consent of such Lender or each Lender directly affected thereby;
(39)if any Swingline Exposure or LC Exposure exists at the time such Lender becomes a Defaulting Lender then:
(a)all or any part of the Swingline Exposure and LC Exposure of such Defaulting Lender (other than, in the case of a Defaulting Lender that is a Swingline Lender, the portion of such Swingline Exposure referred to in clause (b) of the definition of such term) shall be reallocated among the non-Defaulting Lenders in accordance with their respective Applicable Percentages but only (x) to the extent that such reallocation 
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does not, as to any non-Defaulting Lender, cause such non-Defaulting Lender’s Revolving Exposure to exceed its Commitment;
(b)if the reallocation described in clause (i) above cannot, or can only partially, be effected, the Borrower shall within one (1) Business Day following notice by the Administrative Agent (x) first, prepay such Swingline Exposure and (y) second, cash collateralize, for the benefit of the Issuing Bank, the Borrower’s obligations corresponding to such Defaulting Lender’s LC Exposure (after giving effect to any partial reallocation pursuant to clause (i) above) in accordance with the procedures set forth in Section 2.05(j) for so long as such LC Exposure is outstanding;
(c)if the Borrower cash collateralizes any portion of such Defaulting Lender’s LC Exposure pursuant to clause (ii) above, the Borrower shall not be required to pay any fees to such Defaulting Lender pursuant to Section 2.12(b) with respect to such Defaulting Lender’s LC Exposure during the period such Defaulting Lender’s LC Exposure is cash collateralized;
(d)if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to clause (i) above, then the fees payable to the Lenders pursuant to Sections 2.12(a) and 2.12(b) shall be adjusted in accordance with such non-Defaulting Lenders’ Applicable Percentages; and
(e)if all or any portion of such Defaulting Lender’s LC Exposure is neither reallocated nor cash collateralized pursuant to clause (i) or (ii) above, then, without prejudice to any rights or remedies of the Issuing Bank or any other Lender hereunder, all letter of credit fees  payable under Section 2.12(b) with respect to such Defaulting Lender’s LC Exposure shall be payable to the Issuing Bank until and to the extent that such LC Exposure is reallocated and/or cash collateralized; and
(40)so long as such Lender is a Defaulting Lender, the Swingline Lender shall not be required to fund any Swingline Loan and the Issuing Bank shall not be required to issue, amend, renew, extend or increase any Letter of Credit, unless it is satisfied that the related exposure and such Defaulting Lender’s then outstanding LC Exposure will be 100% covered by the Commitments of the non-Defaulting Lenders and/or cash collateral will be provided by the Borrower in accordance with Section 2.19(d), and Swingline Exposure related to any such newly made Swingline Loan or LC Exposure related to any newly issued or increased Letter of Credit shall be allocated among non-Defaulting Lenders in a manner consistent with Section 2.19(d)(i) (and such Defaulting Lender shall not participate therein).
If (i) a Bankruptcy Event or a Bail-In Action with respect to a Lender Parent shall occur following the date hereof and for so long as such event shall continue or (ii) the Swingline Lender or the Issuing Bank has a good faith belief that any Lender has defaulted in fulfilling its obligations under one or more other agreements in which such Lender commits to extend credit, the Swingline Lender shall not be required to fund any Swingline Loan and the Issuing Bank shall not be required to issue, amend or increase any Letter of Credit, unless the Swingline Lender or the Issuing Bank, as the case may be, shall have entered into arrangements with the Borrower or such Lender, satisfactory to the Swingline Lender or the Issuing Bank, as the case may be, to defease any risk to it in respect of such Lender hereunder.
In the event that each of the Administrative Agent, the Borrower, the Swingline Lender and the Issuing Bank agrees that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the Swingline Exposure and LC Exposure of the Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment and on the date of such readjustment such Lender shall purchase at par such of the Loans of the other 
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Lenders (other than Swingline Loans) as the Administrative Agent shall determine may be necessary in order for such Lender to hold such Loans in accordance with its Applicable Percentage.
SECTION 1.b.Returned Payments.  If, after receipt of any payment which is applied to the payment of all or any part of the Obligations (including a payment effected through exercise of a right of setoff), the Administrative Agent or any Lender is for any reason compelled to surrender such payment or proceeds to any Person because such payment or application of proceeds is invalidated, declared fraudulent, set aside, determined to be void or voidable as a preference, impermissible setoff, or a diversion of trust funds, or for any other reason (including pursuant to any settlement entered into by the Administrative Agent or such Lender in its discretion), then the Obligations or part thereof intended to be satisfied shall be revived and continued and this Agreement shall continue in full force as if such payment or proceeds had not been received by the Administrative Agent or such Lender.  The provisions of this Section 2.21 shall be and remain effective notwithstanding any contrary action which may have been taken by the Administrative Agent or any Lender in reliance upon such payment or application of proceeds.  The provisions of this Section 2.21 shall survive the termination of this Agreement.
SECTION 1.c.Banking Services and Swap Agreements.  Each Lender or Affiliate thereof providing Banking Services for, or having Swap Agreements with, any Loan Party or any Subsidiary of a Loan Party, shall deliver to the Administrative Agent, promptly after entering into such Banking Services or Swap Agreements, written notice setting forth the aggregate amount of all Banking Services Obligations and Swap Obligations of such Loan Party or Subsidiary thereof to such Lender or Affiliate (whether matured or unmatured, absolute or contingent). In furtherance of that requirement, each such Lender or Affiliate thereof shall furnish the Administrative Agent, from time to time after a significant change therein or upon a request therefor, a summary of the amounts due or to become due in respect of such Banking Services Obligations and Swap Obligations.  The most recent information provided to the Administrative Agent shall be used in determining which tier of the waterfall, contained in Section 2.17(b), such Banking Services Obligations and/or Swap Obligations will be placed.  For the avoidance of doubt, so long as JPMCB or its Affiliate is the Administrative Agent, neither JPMCB nor any of its Affiliates providing Banking Services for, or having Swap Agreements with, any Loan Party or any Subsidiary of a Loan Party shall be required to provide any notice described in this Section 2.21 in respect of such Banking Services or Swap Agreements.
ARTICLE 3
REPRESENTATIONS AND WARRANTIES
The Borrower represents and warrants to the Lenders that:
SECTION 1.0r.Organization; Powers.  Each of the Loan Parties (a) is duly incorporated, organized or formed, as applicable, validly existing and in good standing (to the extent such concept is applicable in the relevant jurisdiction) under the laws of the jurisdiction of its incorporation, organization or formation, as applicable, (b) has all requisite power and authority to carry on its business as now conducted and (c) is qualified to do business in, and is in good standing in (to the extent such concept is applicable in the relevant jurisdiction), every jurisdiction where such qualification is required except, in each case referred to in clauses (a) (other than with respect to the Borrower), (b) and (c), where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.
SECTION 1.0s.Authorization; Enforceability.  The Transactions are within the Borrower’s limited liability company powers and have been duly authorized by all necessary limited liability company action.  This Agreement has been duly executed and delivered by the Borrower and constitutes a legal, valid and binding obligation of the Borrower, enforceable in 
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accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.
SECTION 1.0t.Governmental Approvals; No Conflicts.  The Transactions (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except (i) such as have been obtained or made and are in full force and effect, (ii) filings necessary to perfect Liens created under the Collateral Documents and (iii) immaterial consents, approvals, registrations, filing or other actions, (b) will not violate any Requirement of Law or regulation or the charter, by-laws or other organizational documents applicable to the Borrower or any of its Subsidiaries, (c) will not violate or result in a default under any indenture, agreement or other instrument binding upon the Borrower or any of its Subsidiaries or its assets, or give rise to a right thereunder to require any payment to be made by the Borrower or any of its Subsidiaries (unless such payment is de-minimis and not restricted hereunder), and (d) other than pursuant to the Collateral Documents, will not result in the creation or imposition of any Lien on any asset of the Borrower or any of its Subsidiaries except, where such violations or defaults referred to in clauses (b) and (c), individually, or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.
SECTION 1.0u.Financial Condition; No Material Adverse Change.  (a) The Borrower has heretofore furnished to the Lenders consolidated balance sheet and statements of income, stockholders equity and cash flows for Borrower (i) as of and for the Fiscal Year ended December 31, 2020, reported on by Deloitte & Touche LLP, independent public accountants, and (ii) as of and for the Fiscal Quarter ended June 30, 2021 and the portion of the Fiscal Year ended June 30, 2021 internally prepared by the Borrower.  Such financial statements present fairly, in all material respects, the financial position and results of operations and cash flows of the Borrower and its consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year-end audit adjustments and the absence of footnotes in the case of the statements referred to in clause (ii) above.
(1)Since December 31, 2020, there has been no material adverse change in the business, assets, financial condition or results of operation of the Borrower and its Subsidiaries, taken as a whole.
SECTION 1.0v.Properties.  (a) Each of the Loan Parties has good title to, or valid leasehold interests in, all its real and personal property material to its business, except for minor defects in title that do not interfere with its ability to conduct its business as currently conducted or to utilize such properties for their intended purposes or where the failure to have such title or interest could not reasonably be expected to result in a Material Adverse Effect.
(1)Except as could not reasonably be expected to result in a Material Adverse Effect, (i) each of the Loan Parties owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual property material or necessary to its business and (ii) to the knowledge of the Borrower, the use thereof by the Loan Parties does not infringe upon the rights of any other Person.
(2)As of the Fourth Amendment Effective Date, all Domestic Subsidiaries that are required to execute Subsidiary Guaranties, all other Subsidiaries and all Permitted Joint Ventures are listed on Schedule 3.05.
SECTION 1.0w.Litigation and Environmental Matters.  (a) There are no actions, suits or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Borrower, threatened against or affecting the Borrower or any of its Subsidiaries (i) which could reasonably be expected, individually or in the aggregate, to result in 
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a Material Adverse Effect (other than the Disclosed Matters) or (ii) that, as of the Third Amendment Effective Date, involve any of the Loan Documents or the Transactions to be consummated in connection with the Third Amendment.
(1)Except for the Disclosed Matters and except with respect to any other matters that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, neither the Borrower nor any of its Subsidiaries (i) has failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received written notice of any claim with respect to any Environmental Liability or (iv) knows of any basis for any Environmental Liability.
SECTION 1.0x.Compliance with Laws and Agreements.  Each of the Loan Parties is in compliance with all laws, regulations and orders of any Governmental Authority applicable to it or its property and all indentures, agreements and other instruments binding upon it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.  
SECTION 1.0y.Investment Company Status.  Neither the Borrower nor any of its Subsidiaries is an “investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940.
SECTION 1.0z.Taxes.  Each of the Loan Parties has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes not overdue for more than thirty (30) days or, if more than thirty (30) days overdue, that are being contested in good faith by appropriate proceedings and for which the Borrower or such Subsidiary, as applicable, has set aside on its books adequate reserves or (b) to the extent that the failure to do so could not reasonably be expected to result in a Material Adverse Effect.  No tax liens have been filed and no claims are being asserted with respect to any such taxes.
j.ERISA.  No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect.  The present value of all accumulated benefit obligations under each Plan (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed the fair market value of the assets of such Plan in any material respect.
k.Disclosure.  (a) As of the Third Amendment Effective Date, none of the written reports, financial statements, certificates or other information furnished by or on behalf of any Loan Party to the Administrative Agent or any Lender (other than information of a general economic or industry specific nature, projected financial information or other forward looking information) in connection with the negotiation of the Third Amendment or any other Loan Document executed in connection therewith (as modified or supplemented by other information so furnished), individually or when taken as a whole, contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not materially misleading; provided that, with respect to projected financial information, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time made (it being understood that projections may vary from actual results and that such variances may be material).
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(1)As of the Effective Date, to the best knowledge of the Borrower, the information included in the Beneficial Ownership Certification provided on or prior to the Effective Date to any Lender in connection with this Agreement is true and correct in all respects.
SECTION 1.c.Solvency.  As of the Third Amendment Effective Date, (a) the fair value of the aggregate of all assets of the Borrower and its Subsidiaries, taken as a whole, will exceed the aggregate amount of the debts and liabilities (subordinate, contingent or otherwise) of the Borrower and its Subsidiaries, taken as a whole; (b) the present fair saleable value of the property of the Borrower and its Subsidiaries, taken as a whole, will be greater than the amount that will be required to pay the probable liability of their debts and other liabilities, (subordinated, contingent or otherwise), as such debts and other liabilities become absolute and matured; (c) the Borrower and its Subsidiaries, taken as a whole, will be able to pay their debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; (d) the Borrower and its Subsidiaries, taken as a whole, will not have unreasonably small capital with which to conduct their businesses in which they are engaged as such businesses are now conducted on the Third Amendment Effective Date; (e) no Loan Party is “insolvent” within the meaning of Section 101(32) of the Bankruptcy Code; and (f) no Loan Party has incurred (by way of assumption or otherwise) any obligations or liabilities (contingent or otherwise) under any Loan Documents, or made any conveyance in connection therewith, with actual intent to hinder, delay or defraud either present or future creditors of such Loan Party or any of its Subsidiaries. For the purposes hereof, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability (irrespective of whether such contingent liabilities meet the criteria for accrual under Statement of Financial Accounting Standards No. 5).
SECTION 1.d.Security Interest in Collateral.  The Collateral Documents are sufficient to create legal and valid Liens on all of the Collateral in favor of the Administrative Agent, for the benefit of the Secured Parties (subject to applicable bankruptcy, insolvency, reorganization, moratorium, capital impairment, recognition of judgments, recognition of choice of law, enforcement of judgments or other similar laws or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law), and, upon the filing of appropriate financing statements, the recordation of the applicable Mortgages and, with respect to any intellectual property, filings in the United States Patent and Trademark Office and the United States Copyright Office, or taking such other action as may be required for perfection under applicable law, such Liens will constitute, to the extent required by the Loan Documents, perfected and continuing Liens on the Collateral, securing the Secured Obligations, enforceable against the applicable Loan Party and all third parties, and having priority over all other Liens on the Collateral other than with respect to Liens expressly permitted by Section 6.02, to the extent any such Liens would have priority over the Liens in favor of the Administrative Agent pursuant to any applicable law (it being understood that subsequent filings and recordings may be necessary to perfect Liens on the Collateral pursuant to Section 5.09).
SECTION 1.e.Labor Disputes.  As of the Third Amendment Effective Date, there are no strikes, lockouts or slowdowns against the Borrower or any Subsidiary pending or, to the knowledge of the Borrower, threatened in writing, in each case, (i) which could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect or (ii) are related to labor disputes.
SECTION 1.f.No Default. No Event of Default has occurred and is continuing. 
SECTION 1.g.Federal Reserve Regulations.  No Loan Party is engaged and will not engage, principally or as one of its important or primary activities, in the business of purchasing 
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or carrying Margin Stock, or extending credit for the purpose of purchasing or carrying Margin Stock, and no part of the proceeds of any Borrowing or Letter of Credit hereunder will be used to buy or carry any Margin Stock in violation of or in a manner inconsistent with Regulation U of the Board of Governors of the Federal Reserve.  Following the application of the proceeds of each Borrowing or drawing under each Letter of Credit, not more than 25% of the value of the assets (either of any Loan Party only or of the Loan Parties and their Subsidiaries on a consolidated basis) will be Margin Stock. 
SECTION 1.h.Subordinated Debt.  As of the Fourth Amendment Effective Date, all Subordinated Debt Documents are described on Schedule 3.17 hereto, and there are no other documents, agreements or instruments evidencing or relating to the Subordinated Debt as of the Fourth Amendment Effective Date other than as described on Schedule 3.17 hereto. Complete and accurate copies of all documents, agreements or instruments described on Schedule 3.17 have been delivered to the Administrative Agent on or prior to the Fourth Amendment Effective Date.
SECTION 1.i.Anti-Corruption Laws and Sanctions.  The Borrower has implemented and maintains in effect policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Borrower, its Subsidiaries and their respective officers and employees and, to the knowledge of the Borrower, their directors and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects.  None of (a) the Borrower, its Subsidiaries or any of their respective directors, officers or employees, or (b) to the knowledge of the Borrower, any agent of the Borrower or its Subsidiaries that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person.  No Borrowing or Letter of Credit, use of proceeds or other transaction contemplated by this Agreement will violate Anti-Corruption Laws or applicable Sanctions in any material respect.  The foregoing representations in this Section 3.18 will not apply to any party hereto to which Council Regulation (EC) 2271/96 (the “Blocking Regulation”) applies, if and to the extent that such representations are or would be unenforceable by or in respect of that party pursuant to, or would otherwise result in a breach and/or violation of, (i) any provision of the Blocking Regulation (or any law or regulation implementing the Blocking Regulation in any member state of the European Union), (ii) any similar blocking or anti-boycott law in the United Kingdom or (iii) section 7 of the German Foreign Trade Ordinance (Verordnung zur Durchführung des Außenwirtschaftsgesetzes (Außenwirtschaftsverordnung – AWV)) in connection with sections 4 and 19 para (3) no.  1 (a) of the German Foreign Trade Act, or any other comparable anti-boycott law, regulation or statute that is in force from time to time in Germany.
SECTION 1.j.Affected Financial Institutions.  No Loan Party is an Affected Financial Institution.
SECTION 1.k.[Reserved].
SECTION 1.l.Plan Assets; Prohibited Transactions.  None of the Loan Parties or any of their Subsidiaries is an entity deemed to hold “plan assets” (within the meaning of the Plan Asset Regulations), and neither the execution, delivery nor performance of the transactions contemplated under this Agreement, including the making of any Loan and the issuance of any Letter of Credit hereunder, will give rise to a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code.
ARTICLE 4
CONDITIONS
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SECTION 1.0aa.Effective Date.  The obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.02):
(1)Credit Agreement and Loan Documents.  The Administrative Agent (or its counsel) shall have received (i) from each party hereto either (A) a counterpart of this Agreement signed on behalf of such party or (B) written evidence reasonably satisfactory to the Administrative Agent (which may include telecopy transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement and (ii) duly executed copies of the Loan Documents and such other legal opinions, certificates, documents, instruments, lien searches and agreements and other conditions and requirements as the Administrative Agent shall reasonably request in connection with the transactions contemplated by this Agreement and the Loan Documents, including without limitation all pledged share certificates and instruments, all surveys, title policies, appraisals and environmental reports, all stock powers and all other agreements, instruments and documents required by the Administrative Agent in connection with the Collateral Documents and other Loan Documents, all in form and substance satisfactory to the Administrative Agent and its counsel.
(2)Financial Statements and Projections.  The Lenders shall have received such financial and projections statements as the Administrative Agent may reasonably request (including, without limitation, a detailed description of the assumptions used in preparing such projections).
(3)Certificate.  The Administrative Agent shall have received a certificate, signed by a Financial Officer or other executive officer of the Borrower, on the initial Borrowing date (i) stating that no Default or Event of Default has occurred and is continuing, (ii) stating that the representations and warranties contained in Article III are true and correct as of such date, and (iii) attaching all LLC Agreements in effect on the Effective Date.
(4)Fees.  The Lenders and the Administrative Agent shall have received, substantially concurrently with the effectiveness hereof, all fees required to be paid, and all expenses for which invoices have been presented (including the reasonable fees and expenses of legal counsel to the Administrative Agent), on or before the Effective Date.  All such amounts will be paid with proceeds of Loans made on the Effective Date and will be reflected in the funding instructions given by the Borrower to the Administrative Agent on or before the Effective Date.
(5)Existing Indebtedness.  The Borrower, its Subsidiaries and Guarantors shall have paid, concurrently with the initial Loans hereunder, all Indebtedness that is not permitted hereunder and terminate all credit facilities and all liens and security interests relating thereto, all in a manner satisfactory to the Administrative Agent and its counsel.
(6)Insurance.  The Administrative Agent shall have received evidence of insurance coverage in form, scope, and substance reasonably satisfactory to the Administrative Agent and otherwise in compliance with the terms of Section 5.05.
(7)USA PATRIOT Act, Etc.  (i) The Administrative Agent shall have received, (x) at least five (5) days prior to the Effective Date, all documentation and other information regarding the Borrower requested in connection with applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act, to the extent requested in writing of the Borrower at least ten (10) days prior to the Effective Date, and (y) a properly completed and signed IRS Form W-8 or W-9, as applicable, for each Loan Party, and (ii) to the extent the Borrower qualifies as a “legal entity customer” under the Beneficial Ownership 
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Regulation, at least five (5) days prior to the Effective Date, any Lender that has requested, in a written notice to the Borrower at least the (10) days prior to the Effective Date, a Beneficial Ownership Certification in relation to the Borrower shall have received such Beneficial Ownership Certification (provided that, upon the execution and delivery by such Lender of its signature page to this Agreement, the condition set forth in this clause (ii) shall be deemed to be satisfied).
(8)Miscellaneous.  The Administrative Agent shall have received such other documents, and evidence of the satisfaction of such other conditions as requested by the Administrative Agent.
The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and such notice shall be conclusive and binding; provided, that the Effective Date shall be deemed to have occurred upon the initial funding of Loans by the Lenders.
SECTION 1.0ab.Each Credit Event.  The obligation of each Lender to make a Loan on the occasion of any Borrowing, and of the Issuing Bank to issue, amend, renew or extend any Letter of Credit, is subject to the satisfaction of the following conditions (subject to Section 2.08(e) in the case of a Limited Condition Transaction Incremental Loan):
(1)The representations and warranties of the Loan Parties set forth in the Loan Documents shall be true and correct in all material respects with the same effect as though made on and as of the date of such Borrowing or the date of issuance, amendment or extension of such Letter of Credit, as applicable (it being understood and agreed that any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date, and that any representation or warranty which is subject to any materiality qualifier shall be required to be true and correct in all respects).
(2)At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no Default shall have occurred and be continuing (subject, in the case of any Loan or Letter of Credit being used to finance a Limited Condition Transaction, to Section 1.08).
Each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section 4.02.  Notwithstanding anything in this Section 4.02 to the contrary, in the case of any Limited Condition Transaction Incremental Loan, the only conditions precedent to the funding of such Limited Condition Transaction Incremental Loan shall be the conditions precedent set forth in Section 2.08(e).
ARTICLE 5
AFFIRMATIVE COVENANTS
Until all of the Obligations shall have been Paid in Full, the Borrower covenants and agrees with the Lenders that:
SECTION 1.0ac.Financial Statements; Ratings Change and Other Information.  The Borrower will furnish to the Administrative Agent and each Lender:
(3)by no later than one hundred twenty (120) days after the end of each Fiscal Year,  its audited consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such year, setting forth in each case (other than for the 
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2019 Fiscal Year) in comparative form the figures for the previous Fiscal Year, all reported on by Deloitte & Touche LLP, or other independent public accountants of recognized national standing (without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of such audit (other than a qualification, exception or explanation resulting solely from any upcoming maturity date of any Indebtedness occurring within one year from the time such opinion is delivered or actual or prospective anticipated defaults under any financial covenants under any such Indebtedness)) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP;
(4)by no later than forty-five (45) days after the end of the first three Fiscal Quarters, its consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such Fiscal Quarter and the then elapsed portion of the Fiscal Year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous Fiscal Year, all certified by a Financial Officer of the Borrower as presenting fairly in all material respects the financial condition and results of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes;
(5)concurrently with the delivery of financial statements under clause (a) or (b) above, a Compliance Certificate (i) certifying as to whether a Default, which has not previously been disclosed or which has not been cured, has occurred and, if such a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance with Section 6.13, (iii) internally prepared consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows for the dates and periods as in clause (a) or (b) above eliminating the Reinsurance Subsidiary, together with any detail reasonably requested by the Administrative Agent showing the eliminations or adjustments, (iv) financial statements of the character and for the dates and periods as in clause (a) or (b) above for the Reinsurance Subsidiary and its subsidiaries, together with any detail reasonably requested by the Administrative Agent in connection therewith, and (v) stating whether any change in GAAP or in the application thereof has occurred since the date of the audited financial statements referred to in Section 3.04 and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate;
(6)by no later than March 31 of each calendar year, the annual budget of the Borrower and its Subsidiaries for such calendar year in form and detail reasonably satisfactory to the Administrative Agent;
(7)promptly following any request therefor, (x) such other information regarding the operations, business affairs and financial condition of the Borrower or any Subsidiary, or compliance with the terms of this Agreement, as the Administrative Agent or any Lender may reasonably request and (y) any information and documentation reasonably requested by the Administrative Agent (or any Lender through the Administrative Agent) for purposes of compliance with applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act and the Beneficial Ownership Regulation;
(8)promptly after any reasonable request therefor by the Administrative Agent (or any Lender through the Administrative Agent), copies of (i) any documents described in Section 101(k) and 101(l) of ERISA that the Borrower or any ERISA Affiliate may request of any Multiemployer Plans and (ii) any notices described in Section 101(l)(1) of ERISA that the Borrower or any ERISA Affiliate may request with respect to any Multiemployer Plan; provided 
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that if the Borrower or any ERISA Affiliate has not requested such documents or notices from the administrator or sponsor of the applicable Multiemployer Plan, the Borrower or the applicable ERISA Affiliate shall promptly make a request for such documents and notices from such administrator or sponsor and shall provide copies of such documents and notices promptly after receipt thereof; and
(9)promptly after the same become publicly available, copies of all periodic and other reports, proxy statements and other materials filed by any Loan Party or any Subsidiary with the SEC, or any Governmental Authority succeeding to any or all of the functions of the SEC, or with any national securities exchange, or distributed by the Borrower to its shareholders generally, as the case may be, and in any case not otherwise required to be delivered to the Administrative Agent pursuant hereto; provided that notwithstanding the foregoing, the obligations in this Section 5.01(g) may be satisfied so long as such information is publicly available on the SEC’s EDGAR website.
Documents required to be delivered pursuant to Section 5.01(a) and (b) (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and, if so delivered, shall be deemed to have been delivered on the date (i) on which such materials are publicly available as posted on the Electronic Data Gathering, Analysis and Retrieval system (“EDGAR”); or (ii) on which such documents are posted on the Borrower’s behalf on an Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether made available by the Administrative Agent); provided that:  (A) upon written request by the Administrative Agent (or any Lender through the Administrative Agent) to the Borrower, the Borrower shall deliver paper copies of such documents to the Administrative Agent or such Lender until a written request to cease delivering paper copies is given by the Administrative Agent or such Lender and (B) the Borrower shall notify the Administrative Agent and each Lender (by facsimile or through Electronic System) of the posting of any such documents and provide to the Administrative Agent through Electronic System electronic versions (i.e., soft copies) of such documents.  The Administrative Agent shall have no obligation to request the delivery of or to maintain paper copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Borrower with any such request by a Lender for delivery, and each Lender shall be solely responsible for timely accessing posted documents or requesting delivery of paper copies of such document to it and maintaining its copies of such documents.  Notwithstanding the foregoing, the obligations in clauses (a) and (b) of this Section 5.01 may be satisfied by furnishing (A) the applicable financial statements, reports or other information required by such paragraphs of any Holdco Entity or (B) any Holdco Entity’s Form 10-K or 10-Q, as applicable, filed with the SEC, in each case, within the time periods specified in such paragraphs; provided that, with respect to each of clauses (A) and (B), (i) to the extent such financial statements, reports or other information relate to such Holdco Entity, such financial statements, reports and information shall be accompanied by information that explains in reasonable detail the differences between the information relating to such Holdco Entity, on the one hand, and the information relating to the Borrower on a standalone basis, on the other hand, which information shall be certified by a Financial Officer of the Borrower as having been fairly presented in all materials respects and (ii) to the extent such statements are in lieu of statements required to be provided under Section 5.01(a), such statements shall be accompanied by a report from such Holdco Entity’s certified public accountants, which report shall satisfy the applicable requirements set forth in Section 5.01(a).
SECTION 1.0ad.Notices of Material Events.  The Borrower will furnish to the Administrative Agent and each Lender prompt written notice of the following:
(2)the occurrence of any Default;
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(3)the filing or commencement of any Proceeding by or before any arbitrator or Governmental Authority against or affecting the Borrower or any Subsidiary thereof that could reasonably be expected to result in a Material Adverse Effect;
(4)the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Effect; 
(5)notice of any action arising under any Environmental Law or of any noncompliance by the Borrower or any Subsidiary with any Environmental Law or any permit, approval, license or other authorization required thereunder that could reasonably be expected to result in a Material Adverse Effect;
(6)any material change in accounting or financial reporting practices by the Borrower or any Subsidiary;
(7)any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect; 
(8)the receipt of any written notice or other correspondence from the SEC (or comparable agency in any applicable non U.S. jurisdiction) concerning any investigation or possible investigation of other inquiry by the SEC or such other agency regarding financial or other operational results of the Borrower or any Subsidiary that could reasonably be expected to have a Material Adverse Effect; and 
(9)upon the request of any Lender, any change in the information provided in the Beneficial Ownership Certification delivered to such Lender that would result in a change to the list of beneficial owners identified in such certification.
Each notice delivered under this Section 5.02 (i) shall contain a heading or a reference line that reads “Notice under Section 5.02 of the Hagerty Amended and Restated Credit Agreement dated December 12, 2018” and (ii) shall be accompanied by a statement of a Financial Officer or other executive officer of the Borrower setting forth reasonable details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.
SECTION 1.0ae.Existence; Conduct of Business.  The Borrower will, and will cause each of its Subsidiaries to, (a) do or cause to be done all things necessary to preserve, renew and keep in full force and effect (i) its legal existence except, solely in the case of a Subsidiary (other than a Loan Party), where the failure to do so could not reasonably be expected to result in a Material Adverse Effect and (ii) all of its rights, licenses, permits, privileges and franchises material or necessary to the conduct of its business, including without limitation its insurance agency and other insurance arrangements; provided that the foregoing shall not prohibit (i) any merger, consolidation, liquidation or dissolution permitted under Section 6.03 or (ii) any change in the insurance companies providing the insurance and reinsurance for the customers of the Borrower and its Subsidiaries or any change in its insurance agency and other arrangements if such change could not reasonably be expected to result in a Material Adverse Effect and (b) carry on and conduct its business in substantially the same manner and in substantially the same fields of enterprise as it is presently conducted or any business, operations and activities that are reasonably similar, related, ancillary, complimentary or incidental thereto or a reasonable extension, development or expansion thereof, including without limitation, the provision of full service collector car loans and financing.
SECTION 1.0af.Payment of Taxes.  The Borrower will, and will cause each of its Subsidiaries to, pay its Tax liabilities, that, if not paid, could result in a Material Adverse Effect, except where (a)(i) the validity or amount thereof is being contested in good faith by appropriate 
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proceedings and (ii) the Borrower or such Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP or (b) the failure to make payment pending such contest could not reasonably be expected to result in a Material Adverse Effect.
SECTION 1.0ag.Maintenance of Properties; Insurance.  The Borrower will, and will cause each of its Subsidiaries to, (a) keep and maintain all property material to the conduct of its business in good working order and condition, ordinary wear and tear and casualty and condemnation excepted, except to the extent the failure to do so could not reasonably be expected to result in a Material Adverse Effect and (b) maintain, with financially sound and reputable insurance companies, insurance in such amounts and against such risks as are customarily maintained under similar circumstances by companies engaged in the same or similar businesses operating in the same or similar locations.
SECTION 1.0ah.Books and Records; Inspection Rights.  The Borrower will, and will cause each of its Subsidiaries to, keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities in order to permit the preparation of financial statements in accordance with GAAP.  The Borrower will, and will cause each of its Subsidiaries to, permit any representatives designated by the Administrative Agent or any Lender, upon reasonable prior written notice, to visit and inspect its properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its Financial Officers and independent accountants, all at such reasonable times during normal business hours and as often as reasonably requested. The Borrower acknowledges that the Administrative Agent, after exercising its rights of inspection, may prepare and distribute to the Lenders certain Reports pertaining to the Loan Parties’ assets for internal use by the Administrative Agent and the Lenders; provided that (a) the Borrower shall not be required to reimburse such expenses unless an Event of Default exists at the time thereof and (b) the Borrower shall have the opportunity to be present at any meeting with its independent accountants.  Notwithstanding anything to the contrary in this Section 5.06, the Borrower and any Subsidiary will not be required to disclose or permit the inspection or discussion of, any document, information or other matter (i) in respect of which disclosure to the Administrative Agent or any Lender (or their respective agents, representatives or contractors) is prohibited by law or any binding agreement not entered into in contemplation of avoiding such inspection and disclosure rights, (ii) that is subject to attorney client or similar privilege or constitutes attorney work product, (iii) in respect of which the Borrower or any Subsidiary owes confidentiality obligations to any third party not entered into in contemplation of avoiding such inspection and disclosure or (iv) that constitutes non-financial trade secrets or non-financial proprietary information of the Borrower or any Subsidiary thereof or any customers or suppliers of the foregoing (except to the extent the Administrative Agent or Lender seeking to inspect such trade secrets or proprietary information enters into a separate confidentiality agreement reasonably acceptable to the Borrower with respect to such trade secrets or proprietary information).
SECTION 1.0ai.Compliance with Laws.  The Borrower will, and will cause each of its Subsidiaries to, (i) comply with each Requirement of Law applicable to it or its property (including without limitation Environmental Laws) and (ii) perform in all material respects its obligations under any order, writ, injunction or decree applicable to it or its property, except where, in each case, the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.  The Borrower will not, and will not permit any of its Subsidiaries, to be or become subject at any time to any law, regulation, or list of any government agency (including, without limitation, the U.S. Office of Foreign Asset Control list) that prohibits or limits any Lender from making any advance or extension of credit to the Borrower or Guarantor or from otherwise conducting business with the Borrower or any Guarantor, or fail to provide documentary and other evidence of the Borrower’s or any Guarantor’s identity as may be requested by any Lender at any time to enable such Lender to 
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verify the Borrower’s or such Guarantor’s identity or to comply with any applicable law or regulation, including, without limitation, Section 326 of the USA Patriot Act of 2001, 31 U.S.C. Section 5318.  The Borrower will maintain in effect and enforce policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions in all material respects.
SECTION 1.0aj.Use of Proceeds and Letters of Credit.  The proceeds of the Loans will be used for refinancing certain Indebtedness in existence on the Effective Date and for working capital needs and for other general business purposes of the Loan Parties (including the payment of any Transaction Costs).  No part of the proceeds of any Loan and no Letter of Credit will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Federal Reserve Board, including Regulations T, U and X.  The Borrower will not request any Borrowing or Letter of Credit, and the Borrower shall not use, and shall ensure that their Subsidiaries and their respective directors, officers and employees shall not use, the proceeds of any Borrowing or Letter of Credit (A) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in material violation of any Anti-Corruption Laws, (B) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, or (C) in any manner that would result in the material violation of any Sanctions applicable to any party hereto.
SECTION 1.0ak.Collateral Security; Further Assurances.  (a)  Subject to clause (b) below, to guarantee or secure the payment when due of the Secured Obligations, the Borrower shall execute and deliver, or cause to be executed and delivered, to the Lenders and the Administrative Agent Collateral Documents granting or providing for the following:
(a)Subsidiary Guaranties of all present and future wholly-owned Domestic Subsidiaries (other than Excluded Subsidiaries).
(b)Security Agreements granting a first priority, enforceable Lien and security interest, subject only to Liens permitted by Section 6.02, on all Collateral. 
(c)Mortgages and other documents and conditions required under the Loan Documents with respect to any present and future real property owned by the Borrower or any Guarantor (other than Excluded Property) granting a first priority, enforceable Lien and security interest, subject only to Liens permitted by Section 6.02, on all present and future owned real property (other than Excluded Property).
(d)All other security and collateral required to be delivered by any Loan Party under the express terms of the Collateral Documents.
(1)The Borrower agrees that it will promptly notify the Administrative Agent of the formation or acquisition of any Domestic Subsidiary (other than an Excluded Subsidiary) or the acquisition of any assets on which a Lien is required to be granted and that is not covered by existing Collateral Documents.  The Borrower agrees that it will promptly execute and deliver, or cause each such wholly-owned Domestic Subsidiary to execute and deliver, promptly upon the request of the Administrative Agent, such additional Collateral Documents and other agreements, documents and instruments, each in form and substance reasonably satisfactory to the Administrative Agent, sufficient to grant to the Administrative Agent, for the benefit of the Secured Parties, the guaranties and Liens contemplated by this Agreement and the Collateral Documents.  To the extent required by the Collateral Documents and so long as such property is not Excluded Property, the Borrower shall deliver, and cause each Guarantor to deliver, to the Administrative Agent all original instruments payable to it with any endorsements thereto 
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required by the Administrative Agent and all original certificated securities and other certificates with respect to any Equity Interests owned by the Borrower or any Subsidiary with any blank stock or other powers required by the Administrative Agent.  Additionally, the Borrower shall cause any such Person that becomes a wholly-owned Domestic Subsidiary (other than an Excluded Subsidiary), promptly upon the request of the Administrative Agent, to execute and deliver such certificates, legal opinions, title work and insurance, surveys, lien searches, environmental reports, organizational and other charter documents, resolutions and other documents and agreements as may be reasonably requested by Administrative Agent to give effect to this Section 5.09 and, in any event, substantially consistent with those delivered by the Loan Parties to the Administrative Agent on or prior to the Third Amendment Effective Date.  The Borrower shall execute and deliver to the Administrative Agent such modifications to the terms of the Loan Documents (or, to the extent applicable as reasonably determined by the Administrative Agent, such other documents), in each case in form and substance reasonably satisfactory to the Administrative Agent and as the Administrative Agent deems reasonably necessary in order to ensure that any such wholly-owned Domestic Subsidiary (other than an Excluded Subsidiary) provides the guaranties and Liens contemplated by this Agreement and the Collateral Documents.   The Borrower shall execute and deliver, and cause each Guarantor to execute and deliver, promptly upon the request of the Administrative Agent, such agreements and instruments evidencing any intercompany loans or other advances among any Loan Party and the Subsidiaries, or any of them, and all such intercompany loans or other advances shall be, and are hereby made, subordinate and junior to the Secured Obligations and no payments may be made on such  intercompany loans or other advances upon and during the continuance of an Event of Default unless otherwise agreed to by the Administrative Agent.
j.Change of Name or Location; Change of Fiscal Year.  The Borrower shall give the Administrative Agent prior written notice of any (a) change in the Borrower’s or any Guarantor’s name as it appears in official filings in the state of its incorporation, organization or formation, as applicable, (b) change in the Borrower’s or any Guarantor’s chief executive office or principal place of business, (c) change in the type of entity that the Borrower or any Guarantor is, (d) change in the Borrower’s or any Guarantor’s corporate or organizational identification number, if any, issued by its state of incorporation, organization or formation, as applicable, or (e) change in the Borrower’s or any Guarantor’s state of incorporation, organization or formation, as applicable.
k.Additional Covenants.  If at any time the Borrower or any of its Subsidiaries shall enter into or be a party to any secured credit facilities evidencing Indebtedness for borrowed money with commitments and loans exceeding $15,000,000, which includes any material covenants or defaults not substantially provided for in this Agreement or more favorable to the lender or lenders thereunder than those provided for in this Agreement (taken as a whole), then the Borrower shall promptly so advise the Administrative Agent and the Lenders.  Thereupon, if the Administrative Agent or the Required Lenders shall request, upon notice to the Borrower, the Administrative Agent, the Lenders and the Borrower shall enter into an amendment to this Agreement or an additional agreement (as the Administrative Agent may reasonably request), providing for substantially the same material covenants and defaults as those provided for in such secured credit facility to the extent required and as may be selected by the Administrative Agent. 
l. [Reserved]  
m.Depository Banks.  Each Loan Party shall maintain the Administrative Agent as such Loan Party’s principal disbursement and depository bank.  For avoidance of doubt, Loan Parties shall be permitted to maintain disbursement and depository accounts at other Lenders so long as the Administrative Agent is the Loan Parties’ principal disbursement and depository bank.
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n.Anti-Corruption Laws.  The Borrower will, and will cause each of its Subsidiaries to, maintain policies, procedures, and internal controls reasonably designed to ensure compliance with the applicable Anti-Corruption Laws.

ARTICLE 6
NEGATIVE COVENANTS
Until all of the Obligations shall have been Paid in Full, the Borrower covenants and agrees with the Lenders that:
SECTION 1.0al.Indebtedness.  The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or permit to exist any Indebtedness, except:
(1)Indebtedness created under the Loan Documents;
(2)Indebtedness existing as of the Fourth Amendment Effective Date and set forth in Schedule 6.01;
(3)(i) Indebtedness among the Borrower and its Subsidiaries to the extent permitted by Section 6.04 and (ii) Indebtedness owing by the Borrower to any Holdco Entity in an amount not to exceed the aggregate amount of Restricted Payments permitted to be made by the Borrower to the Holdco Entities in compliance with Section 6.06 so long as the repayment of such Indebtedness is subordinated to the Obligations in a manner reasonably acceptable to the Administrative Agent, it being agreed that payments on such Indebtedness may be made unless an Event of Default has occurred and is continuing or would be caused thereby;
(4)guarantees by the Borrower of Indebtedness of any Guarantor, by any Subsidiary of Indebtedness of the Borrower or any Guarantor and by any Loan Party with respect to any subsidiary, in each case to the extent permitted hereby;
(5)Indebtedness of the Borrower or any Subsidiary incurred to finance the acquisition, replacement, repair, maintenance, construction or improvement of any fixed or capital assets and the costs of the installation, prepaid maintenance and fees, costs and expenses in connection with the acquisition, replacement, repair maintenance, construction, improvement, assumption or installation, including Capital Lease Obligations, purchase money indebtedness and any Indebtedness assumed in connection with the acquisition, replacement, repair, maintenance, construction or improvement of any such assets and the costs of the installation, prepaid maintenance and fees, costs and expenses in connection with the acquisition, replacement, repair maintenance, construction, improvement, assumption or installation or secured by a Lien on any such assets prior to the acquisition or the completion of the replacement, repair, maintenance, construction or improvement thereof; provided that (i) such Indebtedness is incurred prior to or within three hundred sixty-five (365) days (or such longer period as the Administrative Agent may agree in its sole discretion) after such acquisition or the completion of such replacement, repair, maintenance, construction or improvement or assumption and (ii) the aggregate principal amount of Indebtedness permitted by this clause (e) shall not exceed, on or after the Third Amendment Effective Date, the greater of (x) $8,000,000 or (y) 10% of Consolidated EBITDA (determined as of any date for the most recently ended four consecutive Fiscal Quarters) without the prior written consent of the Required Lenders;
(6)Indebtedness arising under Swap Agreements permitted under Section 6.05;
(7)Indebtedness resulting from Investments permitted by Section 6.04; 
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(8)Indebtedness arising under indemnity agreements to title insurers to cause such title insurers to issue title insurance policies in the ordinary course of business;
(9)Indebtedness incurred in respect of (i) Banking Services; (ii) (A) trade contracts, government contracts, performance bonds, bid bonds, appeal bonds, surety bonds, custom bonds, reclamation bonds and completion guarantees, return of money and similar obligations not in connection with money borrowed, including those incurred to secure health, safety and environmental obligations and (B) guaranties, letters of credit, bank guaranties, surety bonds, performance bonds or similar instruments supporting the foregoing items described in subclause (A); (iii) Indebtedness owed to any Person consisting of unpaid premiums for insurance (including property, casualty, business interruption or liability insurance) of the Borrower or any of its Subsidiaries, so long as such Indebtedness shall not be in excess of the amount of the applicable unpaid premiums; (iv) take-or-pay obligations contained in supply arrangements, (v) obligations to reacquire assets or inventory in connection with customer financing arrangements; and/or (vi) Indebtedness of the Borrower or any Subsidiary consisting of obligations owing under incentive, supply, license or similar agreements, in each case, entered into in the ordinary course of business or consistent with past practice;
(10)Indebtedness arising from agreements of the Borrower or a Subsidiary of the Borrower providing for indemnification, adjustment of purchase price or other similar obligations, in each case, incurred or assumed in connection with (A) the Disposition of any business, assets or subsidiary of the Borrower or (B) any Permitted Acquisition or other Investments permitted under this Agreement;
(11)Indebtedness of any Person that becomes a Subsidiary on or after the date of this Agreement or otherwise assumed in connection with any Permitted Acquisition or other Investment permitted hereunder; provided that such Indebtedness, (i) exists at the time such Person becomes a Subsidiary or such Acquisition or other Investment occurs, (ii) is not created in anticipation or contemplation of such Person becoming a Subsidiary or such Acquisition or other Investment occurring, (iii) is not directly or indirectly recourse to any of the Loan Parties or any of their respective assets, other than to the Person that becomes a Subsidiary and its subsidiaries or the assets acquired and the improvements thereon and proceeds and products thereof (it being understood that individual financings of the type permitted under this clause (k) provided by any Person may be cross-collateralized to other financings of such type provided by such Person or its Affiliates), (iv) does not exceed the greater of (x) $10,000,000 or (y) 10% of Consolidated EBITDA (determined as of any date for the most recently ended four consecutive Fiscal Quarters), and (v) after giving effect to such Indebtedness, the Borrower would be in compliance, on a Pro Forma Basis, with the financial covenants set forth in Section 6.13;
(12)Indebtedness consisting of “earnouts” and other similar deferred consideration in respect of Permitted Acquisitions and other Investments permitted under this Agreement; provided that in the event the aggregate amount of any such earnouts or similar deferred consideration exceeds, for any Fiscal Year, $20,000,000 (valued at the maximum potential amount payable with respect to each such Indebtedness), Borrower shall cause any such additional earnout and deferred consideration to be subordinated to the Obligations on terms and conditions which are reasonably satisfactory to the Administrative Agent;
(13)Indebtedness consisting of promissory notes issued by the Borrower or any Subsidiary of the Borrower to current or former directors, officers, employees, managers and consultants of any Holdco Entity, the Borrower or any subsidiary (or their respective spouses, former spouses, domestic partners, former domestic spouses, successors, executors, administrators, heirs, legatees or distributees) to finance the redemption, purchase or other acquisition or retirement for value by any Holdco Entity of its Equity Interests; provided that at the time of the issuance of such promissory note such redemption, purchase or other acquisition 
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or retirement (or the Restricted Payment to facilitate such redemption, purchase or other acquisition or retirement) is otherwise permitted by this Agreement;
(14)(i) unfunded pension fund and other employee benefit plan obligations and liabilities incurred by the Loan Parties and the Subsidiaries in the ordinary course of business and (ii) Indebtedness of the Borrower or any Subsidiary representing (x) deferred compensation to current or former directors, officers, employees, members of management, managers and consultants of the Borrower, any subsidiary or any Holdco Entity in the ordinary course of business and (y) deferred compensation or other similar arrangements in connection with any Permitted Acquisition or any other transaction permitted under this Agreement;
(15)(i) guaranties by the Borrower or any Subsidiary of the obligations of suppliers, customers and licensees in the ordinary course of business, (ii) Indebtedness incurred in the ordinary course of business in respect of obligations of the Borrower or any Subsidiary to pay the deferred purchase price of goods or services or progress payments in connection with such goods and services or in respect of customer deposits or advance payments received in the ordinary course of business and (iii) Indebtedness in respect of letters of credit, bankers’ acceptances, bank guaranties or similar instruments supporting trade payables, warehouse receipts or similar facilities entered into in the ordinary course of business;
(16)Indebtedness of the Borrower or any Subsidiary in respect of any letter of credit or bank guarantee issued in favor of any Issuing Bank to support any Defaulting Lender’s participation in Letters of Credit issued hereunder;
(17)Indebtedness of the Borrower or any Subsidiary supported by any Letter of Credit or any other letter of credit, bank guaranty or similar instrument otherwise permitted by this Section 6.01;
(18)Indebtedness in an aggregate outstanding principal amount not to exceed the amount of Restricted Payments permitted under Section 6.06(e) at the time of such incurrence; provided that any such Indebtedness incurred in lieu of such Restricted Payments shall reduce availability under the Restricted Payment basket under Section 6.06(e); 
(19)all premiums (if any), interest (including post-petition interest and payment in kind interest), accretion or amortization of original issue discount, fees, expenses and charges with respect to Indebtedness of the Borrower or any Subsidiary otherwise permitted hereunder;
(20)Permitted Refinancing Indebtedness in respect of Indebtedness incurred pursuant to clauses (b), (e), (i), (j), (k), (l), (m), (r) and (u) of this Section 6.01; and
(21)Indebtedness not otherwise permitted by this Section 6.01 not in excess of the greater of (x) $8,000,000 or (y) 10% of Consolidated EBITDA (determined as of any date for the most recently ended four consecutive Fiscal Quarters) in the aggregate at any time outstanding.
SECTION 1.0am.Liens.  The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it except:
(1)Permitted Encumbrances;
(2)any Lien on any property or asset of the Borrower or any Subsidiary existing on the Fourth Amendment Effective Date and set forth in Schedule 6.02 and the replacement, extension or renewal thereof in connection with any Permitted Refinancing Indebtedness in respect of the Indebtedness (or the replacement, extension or renewal of the obligations) secured 
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thereby; provided that such Lien shall not apply to any other property or asset of the Borrower or any Subsidiary other than improvements thereon and the proceeds and products thereof (it being understood that individual financings of the type permitted under Section 6.01(b) provided by any Person may be cross-collateralized to other financings of such type permitted under this Agreement and provided by such Person or its Affiliates);
(3)Liens on fixed or capital assets acquired, replaced, repaired, constructed or improved by the Borrower or any Subsidiary and the replacement, extension or renewal thereof in connection with any Permitted Refinancing Indebtedness in respect of the Indebtedness (or the replacement, extension or renewal of the obligation) secured thereby; provided that (i) the Indebtedness secured thereby is permitted by Section 6.01(e), (ii) the Indebtedness secured thereby is incurred prior to or within three hundred sixty-five (365) days (or such longer period as the Administrative Agent may agree in its discretion) after such acquisition or the completion of such replacement, repair, maintenance, construction or improvement or assumption, (iii) the Indebtedness secured thereby does not exceed the cost of acquiring, replacing, repairing, constructing or improving such fixed or capital assets and the costs of the installation, prepaid maintenance and fees, costs and expenses in connection with the acquisition, replacement, repair maintenance, construction, improvement, assumption or installation and (iv) such security interests shall not apply to any other property or assets of the Borrower or any Subsidiary other than improvements thereon and the proceeds and products thereof (it being understood that individual financings of the type permitted under Section 6.01(e) provided by any Person may be cross-collateralized to other financings of such type permitted under this Agreement and provided by such Person or its Affiliates); 
(4)Liens on property of a Person existing at the time such Person is acquired or merged with or into or consolidated with any Loan Party or any Subsidiary or on assets otherwise acquired in a Permitted Acquisition or other Investment permitted hereunder, in each case, to the extent permitted hereunder; provided that such Liens (i) do not extend to property not subject to such Liens at the time of acquisition other than the improvements thereon and the proceeds and products thereof (it being understood that individual financings of the type permitted under Section 6.01(e) provided by any Person may be cross-collateralized to other financings permitted under this Agreement of such type provided by such Person or its Affiliates) and (ii) are not created in anticipation or contemplation of such acquisition, merger or consolidation or other Investment;
(5)Liens on rights under insurance policies and proceeds thereof securing obligations permitted by Section 6.01(i)(iii); and
(6)other Liens securing Indebtedness or other obligations; provided, that the aggregate outstanding amount of Indebtedness or other obligations secured by the Liens permitted by this subparagraph (f) shall not exceed the greater of (x) $8,000,000 or (y) 10% of Consolidated EBITDA (determined as of any date for the most recently ended four consecutive Fiscal Quarters).
Notwithstanding anything herein to the contrary, all Liens in favor of the Administrative Agent to secure the Secured Obligations are permitted hereunder.
SECTION 1.0an.Fundamental Changes.  (a) The Borrower will not, and will not permit any Subsidiary to, merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or Dispose of (in one transaction or in a series of transactions and whether effected pursuant to a Division or otherwise) any of its assets (other than cash or Permitted Investments and/or other assets that were Permitted Investments when the relevant original Investment was made in the ordinary course of business), or liquidate or dissolve, except for the following:  
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a.(A) Dispositions of inventory, goods and/or services in the ordinary course of business, (B) Dispositions of property that is or has become obsolete, damaged, worn out or surplus, (C) non-exclusive licenses or sublicenses of intellectual property, (D) the lapse, abandonment, cancellation or other Disposition of Intellectual Property that is, in the reasonable good faith judgment of the Borrower, no longer material to the conduct of the business of the Borrower and its Subsidiaries, taken as a whole, or no longer commercially reasonable to maintain, and (E) Dispositions of equipment or real property to the extent that such property is exchanged for credit against the purchase price of similar replacement property or the proceeds of such Disposition are promptly applied to the purchase price of such replacement property;
b.a true lease or sublease of property not constituting Indebtedness and not entered into as part of a sale and leaseback transaction;
c.Dispositions (i) by and among the Borrower and any of its subsidiaries which if made by a Loan Party to a non-Loan Party for less than fair market value (as reasonably estimated by the Borrower) is an Investment permitted under Section 6.04 and (ii) comprised of Permitted Intercompany Activities;
d.any Restricted Payment by the Borrower or any Subsidiary not restricted pursuant to Section 6.06;
e.(A) any Disposition or issuance by the Borrower of its own Equity Interests, (B) any Disposition or issuance by any Subsidiary of the Borrower of its own Equity Interests to its equity holders, provided, however, that the proportion of such Equity Interests and of each class of such Equity Interests (both on an outstanding and fully-diluted basis) held by the Loan Parties, taken as a whole, does not change as a result of such Disposition or issuance, except as otherwise permitted under this Agreement, (C) to the extent necessary to satisfy any Requirements of Law in the jurisdiction of incorporation, organization or formation, as applicable, of any Subsidiary of the Borrower, any Disposition or issuance by such Subsidiary of its own Equity Interests constituting directors’ qualifying shares or nominal holdings, and (D) any Investments permitted by Section 6.04;
f.Dispositions of accounts receivable in connection with the collection or compromise thereof in the ordinary course of business or in any situation of a work-out or financial distress, in each case, of the Person owing such accounts receivable;
g.terminations or the unwinding of any Swap Agreement pursuant to its terms which Swap Agreement is not prohibited under this Agreement;
h.to the extent constituting Dispositions, Liens permitted by Section 6.02;
i.Dispositions of property subject to or resulting from casualty losses and condemnation proceedings (including in lieu thereof or any similar proceedings); 
j.foreclosures or transfers of condemned property as a result of the exercise of “eminent domain” or other similar policies to the respective Governmental Authority or agency that has condemned the same (whether by deed in lieu of condemnation or otherwise) and transfers of properties that have been subject to a casualty to the respective insurer of such property as part of an insurance settlement; 
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k.leases, subleases, licenses or sublicenses or terminations thereof, in each case in the ordinary course of business and which do not materially interfere with the business of the Borrower and its Subsidiaries, taken as a whole;
l.Dispositions, abandonments, cancellations or lapses of intellectual property rights, or issuance or registration, or applications for issuance or registration, of intellectual property rights, which, in the reasonable good faith determination of the Borrower, are not material to the conduct of the business of the Borrower or any of its Subsidiaries, or are no longer economical to maintain in light of its use;
m.Dispositions of Investments in joint ventures to the extent required by, or made pursuant to customary buy/sell arrangements between, the joint venture parties set forth in joint venture arrangements and similar binding arrangements; 
n.Dispositions made to comply with any order of any Governmental Authority or any applicable Requirement of Law; 
o.any sale of motor vehicles and information technology equipment purchased at the end of an operating lease and resold thereafter;
p.the issuance of directors’ qualifying shares and shares issued to foreign nationals as required by applicable Requirements of Law; 
q.Dispositions to effect the formation of any Subsidiary that is a Division Successor, provided that upon formation of such Division Successor, the Borrower has complied with Section 5.09, to the extent applicable;
r.Dispositions in the aggregate not to exceed the greater of (x) $8,000,000 or (y) 10% of Consolidated EBITDA (determined as of any date for the most recently ended four consecutive Fiscal Quarters);
s.to the extent constituting Dispositions, Investments permitted by Section 6.04;
t.the merger, consolidation or amalgamation of (A) any Subsidiary of the Borrower into or with any Loan Party, (B) any Subsidiary of the Borrower that is not a Loan Party into or with any other Subsidiary of the Borrower that is not a Loan Party, or (C) any Subsidiary of the Borrower which is a Loan Party into or with any Subsidiary of the Borrower which is not a Loan Party so long as (x) such surviving Subsidiary becomes a Loan Party pursuant to Section 5.09 or (y) the merger, consolidation or amalgamation is permitted under Section 6.04; 
u.the merger of the Borrower and any Disposition, in each case, as contemplated by the Permitted SPAC Transaction Documents;
v.the liquidation or dissolution of any Subsidiary if the Borrower determines in good faith that such liquidation or dissolution is in the best interests of the Borrower and is not materially disadvantageous to the Lenders; 
w.the merger, consolidation or amalgamation of the Borrower or any Subsidiary for the sole purpose, and with the sole material effect, of changing its jurisdiction of incorporation, organization or formation, as applicable, which, in the case of any Loan Party, shall be a State of the U.S. or the District of Columbia; provided, however, that (A) in the case of any merger, consolidation or amalgamation involving the 
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Borrower, (1) the Borrower shall be the surviving Person or (2) if the Person formed by or surviving any such merger, consolidation or amalgamation or the Person to which such Disposition will have been made is not the Borrower (any such Person, the “Successor Borrower”), (I) the Successor Borrower shall be an entity organized or existing under the laws of the U.S., any state thereof or the District of Columbia, (II) the Successor Borrower shall expressly assume the Obligations of the Borrower in a manner reasonably satisfactory to the Administrative Agent and (III) each Guarantor, unless it is the other party to such merger, consolidation, amalgamation or Disposition, shall have executed and delivered a reaffirmation agreement with respect to its Guaranty Obligations; provided that, if the foregoing conditions under clauses (I) through (III) are satisfied, the Successor Borrower will succeed to, and be substituted for, the Borrower under this Agreement, and (B) in the case of any merger, consolidation or amalgamation involving any other Loan Party, (1) a Loan Party shall be the surviving corporation and all actions required to maintain the perfection of the Lien of the Administrative Agent on the Equity Interests or property of such Loan Party and required under the Loan Documents or otherwise reasonably requested by the Administrative Agent shall have been made or (2) such transaction shall comply with the provisions of Section 6.04; and
x.the creation of, or reorganization into, one or more series by any Subsidiary of the Borrower; provided that to the extent such Subsidiary is a Loan Party (A) such series shall (x) be Loan Parties, (y) shall become Loan Parties pursuant to Section 5.09, or (z) shall be restricted under the Loan Documents as if such series is a Loan Party, or (B) such creation of such series shall be deemed to be an Investment in such series and shall be permitted solely to the extent permitted under Section 6.04.
(1)No Loan Party will, nor will it permit any Subsidiary to, consummate a Division as the Dividing Person without the prior written consent of Administrative Agent, except as otherwise permitted in Section 6.03(a). Without limiting the foregoing, if any Loan Party that is a limited liability company consummates a Division (with or without the prior consent of Administrative Agent as required above), each Division Successor shall be required to comply with the obligations set forth in Section 5.09 and the other further assurances obligations set forth in the Loan Documents and become a Loan Party under this Agreement and the other Loan Documents.
SECTION 1.0b.Investments, Loans, Advances, Guarantees and Acquisitions.  The Borrower will not, and will not permit any of its Subsidiaries to, purchase, hold or acquire (including pursuant to any merger with any Person that was not a wholly owned Subsidiary prior to such merger) any capital stock, evidences of indebtedness or other securities of, make or permit to exist any loans or advances to, guarantee any Indebtedness of any other Person, or make any Acquisition (any one of the actions described in the foregoing provisions of this Section 6.04, herein an “Investment”), except:
(2)Investments in cash and Permitted Investments and/or other assets that were Permitted Investments when the relevant original Investment was made in the ordinary course of business;
(3)(i) Investments existing as of the Fourth Amendment Effective Date and set forth in Schedule 6.04, (ii) Permitted Intercompany Activities and (iii) any modification, replacement, renewal or extension of any Investment described in clause (i) or clause (ii) above so long as no such modification, renewal or extension thereof increases the amount of such Investment except as otherwise permitted by this Section 6.04;
(4)(i) endorsements for collection or deposit in the ordinary course of business, (ii) extensions of trade credit arising or acquired in the ordinary course of business, (iii) Investments 
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made in the ordinary course of business in connection with obtaining, maintaining or renewing client contacts and loans or advances made to distributors in the ordinary course of business and (iv) Investments received in settlements in the ordinary course of business in connection with such extensions of trade credit, settlement of delinquent accounts or disputes with or judgments against any Person or any foreclosure or deed in lieu of foreclosure with respect to any Lien held as security for an obligation owing to the Borrower or any Subsidiary;
(5)Investments, including in the form of Guaranty Obligations, by and among the Borrower and any Subsidiary; provided, however, that any Investment consisting of loans or advances or any other debt for borrowed money by any Subsidiary that is not a Loan Party to a Loan Party shall be subordinated in full to the payment of the Obligations of such Loan Party under the Loan Documents on terms and conditions reasonably satisfactory to the Administrative Agent;
(6)(i) loans and advances to directors, officers, employees, managers and consultants of any Holdco Entity, the Borrower or any Subsidiary to finance reasonable and customary business-related travel, entertainment and relocation expenses for ordinary course purposes or (ii) otherwise in an aggregate outstanding principal amount of all loans and advances permitted pursuant to this clause (e)(ii) shall not exceed $500,000 in the aggregate;
(7)Investments in the form of loans and advances to officers, directors, employees, managers and consultants of any Holdco Entity, the Borrower or any Subsidiary for the sole purpose of purchasing Equity Interests (or purchase of such loans made by others) so long as such Holdco Entity makes a capital contribution of the proceeds of any such purchase of Equity Interests to the Borrower;
(8)intercompany loans and advances to any Holdco Entity to the extent that the Borrower may make Restricted Payments, directly or indirectly, to any Holdco Entity pursuant to Section 6.06 (and in lieu of making such Restricted Payments); provided that such intercompany loans and advances shall be unsecured (or not secured by the Collateral) and expressly subordinated to the Obligations on terms reasonably satisfactory to the Administrative Agent;
(9)receivables arising and trade credit granted in the ordinary course of business and any securities received in satisfaction or partial satisfaction thereof from account debtors to the extent reasonably necessary in order to prevent or limit loss and any prepayment and other credits, deposits or pledges (which deposits and pledges are not otherwise prohibited by this Agreement) to suppliers made in the ordinary course of business;
(10)Investments made by the Borrower or any Subsidiary as a result of non-cash consideration received in connection with Dispositions of assets made in compliance with Section 6.03;
(11)Guaranty Obligations permitted by Section 6.01;
(12)Investments constituting Capital Expenditures made in the ordinary course of business;
(13)Investments in Swap Agreements maintained in accordance with Section 6.01(f); 
(14)Investments as a result of the receipt of non-cash consideration in the settlement of any litigation or claims;
(15)the Borrower and its Subsidiaries may hold Investments to the extent such Investments are otherwise permitted hereunder and reflect an increase in the value thereof;
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(16)Investments funded with the proceeds of, or made in exchange for, the issuance of (or contributions in respect of) Qualified Equity Interests of the Borrower;
(17)Investments (i) in connection with reorganizations and tax planning, provided that (x) the Administrative Agent has approved of such Investments in its reasonable discretion, and (y) after giving effect to such reorganization, tax planning and/or related activities, the Lien of the Administrative Agent in the Collateral is not materially impaired, taken as a whole (as reasonably determined by the Administrative Agent), and (ii) by any Loan Party in any Subsidiary of the Borrower that is not a Loan Party consisting of the contribution of Equity Interests of any Person that is not a Loan Party;
(18)Investments consisting of Indebtedness permitted by Section 6.01, Liens permitted by Section 6.02, Dispositions or fundamental changes permitted by Section 6.03 and Restricted Payments permitted or not restricted by Section 6.06;
(19)purchases of inventory, supplies and materials in the ordinary course of business;
(20)Investments consisting of the licensing of intellectual property pursuant to joint marketing arrangements with other Persons entered into in the ordinary course of business;
(21)to the extent constituting Investments, guarantees of leases or of other obligations not constituting Indebtedness of the Borrower and/or its Subsidiaries;
(22)unfunded pension fund and other employee benefit plan obligations and liabilities to the extent that the same are permitted to remain unfunded under applicable Requirements of Law;
(23)Investments made (i) by the Borrower or any Subsidiary in the Borrower or any Guarantor that is a Domestic Subsidiary, (ii) by the Borrower or any Guarantor in the Borrower’s Foreign Subsidiaries or any Domestic Subsidiary that is not a Guarantor in an amount not to exceed $20,000,000 in the aggregate at any time outstanding for all such Investments, loans or advances (without giving effect to any write-downs or write-offs thereof) on or after the Third Amendment Effective Date without prior written consent of the Required Lenders (provided that, if the Foreign Subsidiary or Domestic Subsidiary that is not a Guarantor becomes a Loan Party and a Guarantor, the Investment in such Subsidiary shall not be deemed to be outstanding for purposes of this clause (ii)), and (iii) by any subsidiary that is not a Loan Party in any Loan Party or any other subsidiary;
(24)(i) Permitted Acquisitions, provided that the aggregate consideration (including the maximum potential total amount of all deferred payment obligations (including earn-outs) as reasonably estimated by the Borrower and all Indebtedness assumed or incurred) paid or payable for all acquisitions of (A) the Equity Interests of any Person that does not become a Loan Party and (B) in the case of an asset acquisition, assets of any Person that are not acquired by the Borrower or any Loan Party (or a Person that will become a Loan Party), when taken together with the total consideration for all such Persons or assets so acquired in any Fiscal Year (commencing such measurement for the 2021 Fiscal Year on or after the Third Amendment Effective Date), shall not exceed $10,000,000 in any Fiscal Year without the prior written consent of the Required Lenders provided that the limitation described in this clause (i) shall not apply to any Acquisition to the extent the Person so acquired becomes (or assets are acquired by) a Loan Party (or a Person that will become a Loan Party) even though such Person owns Equity Interests of Persons that are not otherwise required to become Loan Parties (or assets are acquired by Persons that are not Loan Parties) if, in the case of this clause (i), not less than 90% of the Consolidated EBITDA of the Person (or assets) so acquired in such Acquisition (as reasonably estimated by the Borrower on the date of the definitive agreement for such 
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Investment) is generated by Persons that will become Loan Parties (i.e., disregarding any Consolidated EBITDA of such Loan Parties that are not (or will not become) Loan Parties), (ii) Investments made as part of a Permitted Acquisition and (iii) (x) Investments of any Person (or assets) that is acquired, or of any Person merged into or consolidated or amalgamated with, the Borrower or any Subsidiary after the Third Amendment Effective Date, in each case as part of an Investment otherwise permitted by this Section 6.04 to the extent that such Investments were not made in contemplation of or in connection with such acquisition, merger, amalgamation or consolidation and were in existence on the date of the relevant acquisition, merger, amalgamation or consolidation and (y) any modification, replacement, renewal or extension of any Investment permitted under clause (x) above so long as no such modification, replacement, renewal or extension thereof increases the amount of such Investment except as otherwise permitted by this Section 6.04;
(25)Investments made pursuant to the Master Alliance Agreement; provided, that no further Investments may be made pursuant to the Master Alliance Agreement if a Default exists or would be caused thereby;
(26)so long as no Specified Event of Default exists or would be caused thereby, additional Investments in the Reinsurance Subsidiary in an amount not to exceed, in the aggregate on or after the Third Amendment Effective Date, the greater of (i) $15,000,000 or (ii) 15% of Consolidated EBITDA (determined as of any date for the most recently ended four consecutive Fiscal Quarters) without the prior written consent of the Required Lenders;
(27)Loans and advances by the Reinsurance Subsidiary to the Borrower on terms reasonably acceptable to the Administrative Agent;
(28)Permitted Joint Ventures; provided that (i) both before and after giving effect to any Investment in such Permitted Joint Venture and the Loans (if any) requested to be made in connection therewith, (x) each of the representations and warranties in the Loan Documents is true and correct in all material respects, (y) no Event of Default exists or would be caused thereby and the Borrower is in pro forma compliance with all financial covenants in this Agreement and (z) the Borrower was and will be able to borrow at least $5,000,000 of additional Loans; (ii) prior to the closing of any such Permitted Joint Venture which involves an Investment in excess of $10,000,000, the Borrower shall provide copies of such documents being executed or delivered in connection with such Permitted Joint Venture as may be requested by the Administrative Agent, (iii) the consideration (including the maximum potential total amount of all deferred payment obligations (including earn-outs) and all Indebtedness assumed or incurred as reasonably estimated by the Borrower in consultation with Administrative Agent on the date of execution of any definitive agreement for such Investment) paid or payable for all Permitted Joint Ventures which become effective on or after the Third Amendment Effective Date shall not to exceed, in the aggregate at any time outstanding (provided that, if the Borrower acquires the remaining Equity Interests of any Permitted Joint Ventures in a Permitted Acquisition and such Permitted Joint Venture becomes a wholly-owned Subsidiary and a Loan Party, the Investment in such Permitted Joint Venture shall not be deemed to be outstanding for purposes of this clause (iii)), the greater of (i) $40,000,000 or (ii) 20% of Consolidated EBITDA (determined as of any date for the most recently ended four consecutive Fiscal Quarters) without the prior written consent of the Required Lenders, and (iv) if such Permitted Joint Venture is also an Acquisition, it shall also satisfy all requirements for a Permitted Acquisition under Section 6.04(d) above; 
(29)so long as no Specified Event of Default exists or would be caused thereby, other Investments not in excess of the greater of (x) $12,000,000 or (y) 10% of Consolidated EBITDA (determined as of any date for the most recently ended four consecutive Fiscal Quarters) in the aggregate at any time outstanding (without giving effect to any write-downs or write-offs thereof) (provided that, if the Borrower acquires the Equity Interests of any Person in a Permitted 
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Acquisition and such Person becomes a wholly-owned Subsidiary and a Loan Party, the Investment in such Person shall not be deemed to be outstanding for purposes of this clause (bb)); and
(30)the Permitted SPAC Transaction, including any transaction or agreements contemplated by the Permitted SPAC Transaction Documents.
For purposes of this Section 6.04, the amount of any Investment outstanding at any time shall be the total of (x) the original cost of such Investment (meaning the cash amount thereof, if in cash, or the fair market value thereof as determined by the management of the Borrower, if in property), without any adjustment for increases or decreases in value or any write-up or write-down with respect to such investment; provided, that any Investment in the form of guarantees shall be valued at the reasonably expected liability thereof, minus (y) an amount equal to the lesser of the return of cash with respect to any such Investment, the repayment, prepayment or return in the case of any deposit, loan, advance, or other extension of credit and the termination or cancellation of any guarantee and the initial amount of such Investment.
SECTION 1.0a.Swap Agreements.  The Borrower will not, and will not permit any of its Subsidiaries to, enter into any Swap Agreement, except (a) Swap Agreements entered into to hedge or mitigate risks to which the Borrower or any Subsidiary has actual exposure (other than those in respect of Equity Interests of the Borrower or any of its Subsidiaries), including to hedge or mitigate foreign currency risks and (b) Swap Agreements entered into in order to effectively cap, collar or exchange interest rates (from fixed to floating rates, from one floating rate to another floating rate or otherwise) with respect to any interest-bearing liability or investment of the Borrower or any Subsidiary.
SECTION 1.0b.Restricted Payments.  The Borrower will not, and will not permit any of its Subsidiaries to, declare or make any Restricted Payment, except: 
(31)such Person may declare and make Restricted Payments with respect to its Equity Interests payable solely in additional shares of its Equity Interests (and that are not Disqualified Equity Interests);
(32)Subsidiaries may declare and pay dividends with respect to their Equity Interests (and, in the case of a non-wholly owned Subsidiary, based on the relative ownership interests or, in greater proportion  in the case of payments to the Borrower or any of its Subsidiaries);
(33)[reserved];
(34)[reserved];
(35)Restricted Payments made in exchange for, or funded out of the proceeds of, the sale or contribution in respect of Qualified Equity Interests of the Borrower;
(36)Restricted Payments consisting of Permitted Intercompany Activities;
(37)the Borrower may make Restricted Payments constituting fixed dividend payments in respect of Disqualified Equity Interests, to the extent such Disqualified Equity Interests constitutes Indebtedness and were incurred in compliance with Section 6.01 and such Restricted Payments are included in the calculation of Consolidated Interest Expense;
(38)cash dividends or distributions on the Equity Interests of the Borrower (or, in the case of clause (iii) below, the issuance of, or cash payments on, promissory notes issued in accordance with Section 6.01(m)) issued or paid solely for the purpose of funding the following:
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(a)permitting such Holdco Entity to pay, in the event the Borrower is a pass-through entity or files a consolidated, combined, unitary or similar type tax return with such Holdco Entity, U.S. federal, state and local income taxes then due and payable pursuant to those returns to the extent such taxes are imposed solely with respect to the income attributable to the Borrower and its subsidiaries;
(b)ordinary organizational, operating and other transaction costs and expenses (including overhead and administrative costs and expenses, professional fees and Public Company Costs) of any Holdco Entity;
(c)the redemption, purchase or other acquisition or retirement for value by any Holdco Entity of its Equity Interests from current or former directors, officers, employees, managers and consultants of the Borrower, any subsidiary or any Holdco Entity (or, in each case, their respective spouses, former spouses, domestic partners, former domestic partners, successors, executors, administrators, heirs, legatees or distributees) and the issuance of, and the payments on, promissory notes issued in respect of such redemption, purchase or other acquisition for retirement; provided, however, that the amount of such cash dividends or distributions in any Fiscal Year shall not exceed in the aggregate an amount equal to $1,000,000, plus unused amounts from the previous two Fiscal Years; provided that the amounts carried forward from previous Fiscal Years shall be deemed utilized first;
(d)to finance any Investment permitted under Section 6.04 (provided that (x) any Restricted Payments under this clause (h)(iv) shall be made substantially concurrently with the closing of such Permitted Investment and (y) any Holdco Entity shall, promptly following the closing thereof, cause (A) all property acquired to be contributed to the Borrower or to any subsidiary or (B) the merger, consolidation or amalgamation of the Person formed or acquired into the Borrower or to any subsidiary in order to consummate such permitted Investment in compliance with the applicable requirements of Section 6.04 as if undertaken as a direct permitted Investment by the Borrower or such subsidiary); 
(e)the Borrower may make Restricted Payments to a Holdco Entity to permit it to pay cash in lieu of fractional shares in connection with any exercise of warrants, options, or other securities convertible into or exchangeable for Equity Interests of a Holdco Entity or in connection with any other dividend, split or combination thereof or any Permitted Acquisition, in each case, otherwise permitted hereunder; and
(f)the proceeds of which shall be used by the Borrower to pay (or to make Restricted Payments to allow any direct or indirect parent thereof to pay) fees and expenses (other than to Affiliates) related to any equity or debt offering, financing transaction, acquisition, divestiture, Investment or other non-ordinary course transaction not prohibited by this Agreement (whether or not successful); provided that any such transaction is intended to be solely for the benefit of the Borrower and its Subsidiaries.
(39)Restricted Payments consisting solely of Qualified Equity Interests of the Borrower;
(40)Restricted Payments made on or after the Permitted SPAC Transaction Effective Date in connection with the Permitted SPAC Transaction;
(41)the Borrower may declare and pay Permitted LLC Distributions;
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(42)prior to the Permitted SPAC Transaction Effective Date, the Borrower may redeem up to 3% of its membership units per year provided that (i) no Default exists or would be caused thereby and (ii) such redemption is made solely and contemporaneously with the cash proceeds of new common Equity Interests (and that are not Disqualified Equity Interests) issued by the Borrower; and
(43)the Borrower may make Restricted Payments with respect to its Equity Interests other than those payments referenced above in this Section 6.06 if each of the following conditions is satisfied: 
y.before and after giving effect to such Restricted Payment, on a Pro Forma Basis, no Default exists or would be caused thereby; 
z.prior to a Qualified Public Offering, the aggregate amount of such Restricted Payments made pursuant to this clause (m) shall not exceed, for each Fiscal Year, commencing with the Fiscal Year ending December 31, 2020, the Annual Permitted Distribution Amount for such Fiscal Year; and
aa.after a Qualified Public Offering, as of the date of such Restricted Payment, Borrower is at least 0.50x below the then applicable Net Leverage Ratio set forth in Section 6.13(a) determined on a pro forma basis both before and after giving effect to such Restricted Payment for the most recently ended four consecutive Fiscal Quarters as if made on the last day of such period. 
Notwithstanding anything in this Agreement to the contrary, the Borrower acknowledges and agrees that, in addition to, and without limiting, any other rights and remedies of the Administrative Agent, upon the occurrence and during the continuance of any Event of Default, upon the request of the Administrative Agent or the Required Lenders, the Borrower will (subject to Requirements of Law) promptly cause the Reinsurance Subsidiary to pay to a Loan Party the maximum amount of Permitted Reinsurance Subsidiary Dividends (if any).
SECTION 1.0ao.Transactions with Affiliates.  The Borrower will not, and will not permit any of its Subsidiaries to, sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other transactions with, any of its Affiliates, except:
(7)transactions in the ordinary course of business;
(8)transactions at prices and on terms and conditions not less favorable to the Borrower or such Subsidiary than could be obtained on an arm’s-length basis from unrelated third parties;
(9)transactions between or among the Borrower and its Subsidiaries permitted or not restricted hereunder;
(10)any Restricted Payment permitted by Section 6.06;
(11)employment, severance, termination, expense reimbursement and indemnity arrangements between the Borrower or any Subsidiary on the one hand and any of their and any Holdco Entities’ respective directors, officers, employees, managers and consultants (including management and employee benefit plans or agreements, subscription agreements or similar agreements pertaining to the grant, purchases or repurchase of Equity Interests pursuant to put/call rights or similar rights with current or former directors, officers, employees, managers and 
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consultants and stock option or incentive plans and other compensation arrangements) on the other hand in the ordinary course of business or otherwise permitted under this Agreement;
(12)transactions pursuant to permitted agreements in existence on the Fourth Amendment Effective Date and set forth on Schedule 6.07 or any amendment thereto to the extent such an amendment, taken as a whole, is not adverse to the Lenders in any material respect;
(13)payment of customary director compensation and expense reimbursements, including fees and expenses of directors and advisors of any Holdco Entity;
(14)(i) any issuance of securities or rights pursuant to stock options, stock ownership plans (including restricted stock plans), stock grants, directed share programs and other equity based incentive plans and (ii) the execution, delivery and performance of any stockholder or registration rights agreement approved by the board of directors (or other appropriate governing body) of the Borrower or any Holdco Entity;
(15)the Borrower or any Subsidiary may enter into any indemnification agreement or any similar arrangement with directors, officers, employees, managers and consultants of the  Borrower or any Subsidiary (or any Holdco Entity) in the ordinary course of business and may pay fees and indemnities to directors, officers, consultants and employees of the Borrower or any Subsidiary (or any Holdco Entity) in the ordinary course of business;
(16)any purchase by the Borrower of Equity Interests of its Subsidiaries or any contribution by the Borrower to the equity capital of its Subsidiaries (whether directly or indirectly); 
(17)assignments of Obligations to Persons that are Affiliates of the Borrower to the extent permitted under Section 9.04(b);
(18)to the extent constituting a transaction with an Affiliate, any payments permitted by Section 6.11; 
(19)the issuance by the Borrower or any Subsidiary of Equity Interests in accordance with the organizational documents of such Person;
(20)on and after the Permitted SPAC Transaction Effective Date, transactions approved by the requisite members of the audit committee or a majority of the disinterested members of the board of directors of the Permitted SPAC; 
(21)the transactions contemplated by the Master Alliance Agreement;
(22)the Permitted SPAC Transaction, including any transaction or agreements contemplated by the Permitted SPAC Transaction Documents; and
(23)Permitted Intercompany Activities.
SECTION 1.0ap.Restrictive Agreements.  The Borrower will not, and will not permit any of its Subsidiaries to, directly or indirectly, enter into, incur or permit to exist any agreement or other arrangement that prohibits, restricts or imposes any condition upon (a) the ability of the Borrower or any Subsidiary to create, incur or permit to exist any Lien upon any of its property or assets to secure the Obligations or (b) the ability of any Subsidiary to pay dividends or other distributions with respect to its Equity Interests or to make or repay loans or 
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advances to the Borrower or any other Subsidiary or to guarantee Indebtedness of the Borrower or any Subsidiary, except:
(1)restrictions and conditions imposed by law, by this Agreement or by any other Loan Document;
(2)(i) limitations on Liens (other than those securing any Secured Obligation) or other restrictions on any property whose acquisition, repair, improvement or construction is financed by purchase money Indebtedness, Capital Lease Obligations or Permitted Refinancing Indebtedness permitted hereunder in reliance upon Section 6.01(b) or (c) set forth in the contractual obligations governing such Indebtedness, Capital Lease Obligations or Permitted Refinancing Indebtedness or Guaranty Obligations with respect thereto or (ii) other limitations that are or were created by virtue of any Lien granted upon, transfer of, agreement to transfer or grant of, any option or right with respect to any property, assets or Equity Interests not otherwise prohibited under this Agreement;
(3)provisions restricting assignments, subletting or other transfers contained in leases, subleases, licenses, sublicenses, joint venture agreements and similar agreements entered into by the Borrower or any Subsidiary in the ordinary course of business;
(4)customary provisions restricting assignment of, or the pledge of rights under, any agreement entered into by the Borrower or any Subsidiary in the ordinary course of business; 
(5)restrictions and conditions contained in any agreement relating to the Disposition of any property pending the consummation of such Disposition; provided that (i) such restrictions and conditions apply only to the property to be Disposed and (ii) such Disposition is permitted hereunder;
(6)any agreement in effect at the time such Subsidiary becomes a Subsidiary of the Borrower, so long as such agreement was not entered into in connection with or in contemplation of such person becoming a Subsidiary of the Borrower;
(7)any encumbrances or restrictions imposed by any amendments or refinancings that are otherwise permitted by the Loan Documents of the contracts, instruments or obligations referred to in clause (f) above; provided that such amendments or refinancings are no more restrictive, taken as a whole, with respect to such encumbrances and restrictions than those prior to such amendment or refinancing;
(8)provisions restricting the Disposition of Intellectual Property or the assignment of licenses thereof contained in licenses entered into the ordinary course of business and in accordance with the terms hereof;
(9)any encumbrance or restriction with respect to an interest in or Restricted Payments, Investments or Dispositions by such joint venture, limited liability company, partnership or similar Person imposed by any joint venture agreement, limited liability company agreement, partnership agreement or similar organizational agreement or the Indebtedness of any joint venture, limited liability company, partnership or similar Person maintained in accordance with Section 6.04; 
(10)(i) any encumbrance or restrictions pursuant to the documentation governing any Indebtedness of any Subsidiary that is not a Loan Party permitted hereunder and (ii) any encumbrance or restrictions pursuant to the documentation governing any Indebtedness permitted hereunder; provided that, in the case of this clause (ii), such restrictions are no more onerous than those contained in this Agreement; 
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(11)in provisions in agreements or instruments which prohibit the payment of dividends or the making of other distributions with respect to any class of Equity Interests of a Person other than on a pro rata basis;
(12)imposed by customary provisions to maintain cash or other deposits or minimum net worth imposed by any Person under any contract entered into by the Borrower or any Subsidiary in the ordinary course of business or for whose benefit such cash or other deposits or restrictions exist;
(13)customary net worth or similar provisions contained in real property leases entered into by the Borrower or any Subsidiary in the ordinary course of business so long as the Borrower has reasonably determined in good faith that such net worth or similar provisions could not reasonably be expected to impair the ability of the Borrower or any Subsidiary to meet its ongoing obligations under the Loan Documents; 
(14)those arising under or as a result of any Requirement of Law or the terms of any license, authorization, concession or permit provided by any Governmental Authority; 
(15)those arising in any Swap Agreement not prohibited hereunder;
(16)restrictions and conditions existing on the Fourth Amendment Effective Date identified on Schedule 6.08 (but shall apply to any extension or renewal of, or any amendment or modification materially expanding the scope of, any such restriction or condition);
(17)customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending such sale, provided such restrictions and conditions apply only to the Subsidiary that is to be sold and such sale is permitted hereunder; and
(18)those imposed by any amendment, modification, restatement, renewal, supplement, refunding, replacement or refinancing of any contract, instrument or obligation referred to in clauses (a) through (q) above; provided that such amendment, modification, restatement, renewal, supplement, refunding, replacement or refinancing is, in the reasonable good faith judgment of the Borrower, no more restrictive with respect to such restrictions taken as a whole than those in existence prior to such amendment, modification, restatement, renewal, supplement, refunding, replacement or refinancing.
SECTION 1.0aq.[Reserved].
j.Amendments to Certain Agreements.  The Borrower will not, and will not permit any of its Subsidiaries to, amend, supplement or otherwise modify (a) the Master Alliance Agreement or its articles of incorporation, charter, certificate of formation, operating agreement, by-laws or other organizational document (including all LLC Agreements) in any manner materially adverse to the Lenders other than pursuant to the Permitted SPAC Transaction, (b) the Permitted SPAC Transaction Documents in any manner materially adverse to the Lenders or (c) any instrument or agreement evidencing or relating to any Subordinated Debt (other than (i) any intercompany Indebtedness or (ii) on subordination terms thereof as otherwise agreed to by the Administrative Agent) if the effect of such amendment, supplement or modification is materially adverse to the Lenders or would not be permitted under the applicable Subordination Agreement, it being understood and agreed that no refinancing, refunding, extension, defeasance, discharge, renewal or replacement meeting the Refinancing Indebtedness Requirements would materially and adversely affect the interests of the Lenders.
k.Prepayment of Indebtedness; Subordinated Debt.  The Borrower will not, and will not permit any of its Subsidiaries to, (x) purchase, redeem, defease, prepay or otherwise satisfy 
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more than twelve (12) months prior to the scheduled maturity thereof any principal of, any Subordinated Debt, (y) set apart any property for such purpose, whether to a sinking fund, a similar fund or otherwise or (z) make any payment in violation of any subordination terms of such Subordinated Debt; provided, however, that the Borrower and its Subsidiaries may (a) incur Permitted Refinancing Indebtedness in respect of Subordinated Debt that is otherwise permitted under this Agreement, (b) make regularly scheduled or otherwise required repayments or redemptions of Subordinated Debt to the extent permitted by the subordination provisions applicable thereto and (c) take such action to the extent necessary to prevent such Indebtedness from being an “applicable high yield discount obligation” within the meaning of Section 163(i) of the Code.
l.[Reserved].  
m.Financial Covenants.  The Borrower will not:
(1)Net Leverage Ratio.  Permit or suffer the Net Leverage Ratio as of the last day of any Fiscal Quarter to exceed (i) 4.25 to 1.0 as of the end of any Fiscal Quarter ending prior to December 31, 2023, (ii) 3.75 to 1.0 as of the end of any Fiscal Quarter ending on or after December 31, 2023 but prior to June 30, 2024, (iii) 3.00 to 1.0 as of the end of any Fiscal Quarter ending on or after June 30, 2024.
(2)Fixed Charge Coverage Ratio.  Permit or suffer the Fixed Charge Coverage Ratio to be less than 1.20 to 1.0 as of the last day of any Fiscal Quarter.
o.Permitted SPAC Transaction.  Notwithstanding anything to the contrary contained in this Article VI, the Credit Parties acknowledge and agree that the Permitted SPAC Transaction is permitted under this Agreement and the other Loan Documents.
ARTICLE 7
EVENTS OF DEFAULT
SECTION 1.0ar.Events of Default.  If any of the following events (“Events of Default”) shall occur:
(22)the Borrower shall fail to pay any principal of any Loan or any reimbursement obligation in respect of any LC Disbursement, when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise;
(23)the Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to in clause (a) of this Section 7.01) payable under this Agreement or any other Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of five (5) Business Days;
(24)any representation or warranty made or deemed made by or on behalf of any Loan Party or any Subsidiary in connection with any Loan Document or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this Agreement or any other Loan Document, shall prove to have been materially incorrect when made or deemed made;
(25)any Loan Party shall fail to observe or perform any covenant, condition or agreement contained in Section 5.02(a), 5.03(a)(i) (in respect of the existence of the Borrower only), or Section 5.08 or in Article VI;
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(26)any Loan Party shall fail to observe or perform any covenant, condition or agreement contained in this Agreement or any other Loan Document (other than those specified in clause (a), (b) or (d) of this Section 7.01), and such failure shall continue unremedied for a period of (i) 5 days after the earlier of any Loan Party’s knowledge of such breach or notice thereof from the Administrative Agent if such breach relates to terms or provisions of Section 5.01, 5.02 (other than Section 5.02(a)), 5.03 (other than Section 5.03(a)(i)) through 5.07, or 5.12 of this Agreement or (ii) thirty (30) days after the earlier of any Loan Party’s knowledge of such breach or written notice thereof from the Administrative Agent to the Borrower (which notice will be given at the request of any Lender);
(27)any Loan Party or any Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) beyond any applicable grace period in respect of any Material Indebtedness, when and as the same shall become due and payable;
(28)(1) any other event or condition occurs that results in any Material Indebtedness (other than Indebtedness under Swap Agreements) becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Indebtedness (other than Indebtedness under Swap Agreements) or any trustee or agent on its or their behalf to cause any Material Indebtedness (other than Indebtedness under Swap Agreements) to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity or (2) any Borrower or Subsidiary fails to observe or perform any other agreement or condition relating to any Material Indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the effect of which default or other event is to cause, or to permit the holder or holders of such Material Indebtedness (or a trustee or agent on behalf of such holder or holders) to cause, after the expiration of any applicable grace or cure period relating thereto, with the giving of notice if required, such Material Indebtedness to be demanded or to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity; provided that this clause (g) shall not apply to (i) secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness (including as a result of a casualty or condemnation event), (ii) guarantees of Indebtedness that are satisfied promptly on demand, or (iii) with respect to Indebtedness incurred under any Swap Agreement, termination events or equivalent events pursuant to the terms of the relevant Swap Agreement which are not the result of any default thereunder by any Loan Party;
(29)an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Borrower or any Subsidiary (other than any Immaterial Subsidiary) or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or Subsidiary (other than any Immaterial Subsidiary) or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered;
(30)the Borrower or any Subsidiary (other than any Immaterial Subsidiary) shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (h) of this Section 7.01, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Subsidiary (other than any Immaterial Subsidiary) or 
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for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing;
(31)the Borrower or any Subsidiary (other than any Immaterial Subsidiary) shall become unable, admit in writing its inability or fail generally to pay its debts as they become due;
(32)one or more final judgments for the payment of money in an aggregate amount in excess of $5,000,000 (to the extent not covered by insurance or indemnity as to which the insurer or indemnitor has not denied coverage) shall be rendered against the Borrower or any Subsidiary or any combination thereof and the same shall remain undischarged for a period of forty-five (45) consecutive days during which execution shall not be effectively stayed, or any action shall be legally taken by a judgment creditor to attach or levy upon any material assets of the Borrower and its Subsidiaries, taken as a whole, to enforce any such judgment or any Loan Party or any Subsidiary shall fail within forty-five (45) days to discharge one or more non-monetary judgments or orders which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, which judgments or orders, in any such case, are not stayed on appeal or otherwise being appropriately contested in good faith by proper proceedings diligently pursued;
(33)an ERISA Event shall have occurred that, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Effect;
(34)a Change in Control shall occur;
(35)any Collateral Document shall fail to remain in full force or effect or any Loan Party contests in writing the validity or enforceability of any Collateral Document, or any Collateral Document granting a Lien shall for any reason fail to create a valid and perfected first priority (subject to Liens permitted under the Loan Documents) security interest in any Collateral purported to be covered thereby or subordination to be created thereunder, except as permitted by the terms of this Agreement or any Collateral Document; or
(36)any material provision of any other Loan Document for any reason ceases to be valid, binding and enforceable against any Loan Party in accordance with its terms (or any Loan Party shall challenge in writing the enforceability of any Loan Document or shall assert in writing, or engage in any action or inaction based on any such written assertion, that any provision of any of the Loan Documents has ceased to be or otherwise is not valid, binding and enforceable against such Loan Party in accordance with its terms), in each case other than as permitted by this Agreement;
then, and in every such event (other than an event with respect to the Borrower described in clause (h) or (i) of this Section 7.01), and at any time thereafter during the continuance of such event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to the Borrower, take either or both of the following actions, at the same or different times:  (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately, (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower; and in case of any event with respect to the Borrower described in clause (h) or (i) of this Section 7.01, the 
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Commitments shall automatically terminate and the principal of the Loans then outstanding, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower and (iii) exercise any rights and remedies provided to the Administrative Agent under the Loan Documents or at law or equity, including all remedies provided under the UCC.
SECTION 1.0as.Equity Cure.  Notwithstanding anything to the contrary contained in this Article VII, in the event that the Borrower fails to comply with the requirements of Section 6.13 as of the end of any relevant period, until the date that is fifteen (15) days after the date the Compliance Certificate with respect to such period are required to be delivered pursuant to Section 5.01(c) (the “Cure Period”), Borrower shall have the right to obtain a common equity investment in cash or otherwise obtain cash common equity contribution proceeds from any Holdco Entity (the “Cure Right”), and upon receipt by the Borrower of such cash contributions (the “Cure Amount”), the Borrower’s compliance with Section 6.13 shall be recalculated giving effect to the following pro forma adjustments: (i) Consolidated EBITDA shall be increased, solely for the purposes of determining compliance with Section 6.13, including determining compliance with Section 6.13 as of the end of such period and applicable subsequent periods that include the fiscal quarter for which the Cure Right is exercised, by an amount equal to the Cure Amount; and (ii) if, after giving effect to the foregoing calculations (but not, for the avoidance of doubt, giving pro forma effect to any repayment of Indebtedness in connection therewith for the fiscal quarter for which cure was made), the requirements of Section 6.13 shall be satisfied, then the requirements of Section 6.13 shall be deemed satisfied as of the end of the relevant period with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of Section 6.13 that had occurred shall be deemed cured for the purposes of this Agreement. Notwithstanding anything herein to the contrary, (A) the Cure Right shall not be exercised more than four times, (B) in each consecutive four (4) fiscal quarter period, there shall be a period of at least two (2) fiscal quarters in which the Cure Right is not exercised, (C) the Cure Amount shall be no greater than the amount required for purposes of complying with Section 6.13, (D) the Cure Amount shall be disregarded for purposes of determining compliance with any other provision of this Agreement (including the determination of the Applicable Margin or any provision that requires compliance with Section 6.13 on a pro forma basis) and (E) to the extent that the proceeds of the Cure Amount are used to repay Indebtedness, such Indebtedness shall not be deemed to have been repaid for purposes of calculating the financial covenants set forth in Section 6.13 for the fiscal quarter with respect to which such Cure Right was made.  Neither the Administrative Agent nor any Lender shall have the right to terminate the Commitments, declare all or any portion of the unpaid principal amount of any outstanding Loans, interest accrued and unpaid thereof, and all amounts owing or payable hereunder or under any other Loan Document to be due and payable and/or exercise any other rights and remedies available under the Loan Documents or applicable law (including, without limitation, any right to foreclose on or take possession of Collateral) solely on the basis of an allegation of an Event of Default having occurred and continuing as a result of the Borrower’s non-compliance with Section 6.13 with respect to any period after delivery to the Administrative Agent of written notice by the Borrower of its intention to exercise its cure rights under Section 6.13 until the Cure Period has elapsed; provided that neither the Lenders nor the Issuing Bank shall have any obligation to make Revolving Loans or issue Letters of Credit, as applicable, pending actual receipt in immediately available funds of the Cure Amount.
ARTICLE 8
THE ADMINISTRATIVE AGENT
SECTION 1.0at.Authorization and Action.
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1.Each Lender, on behalf of itself and any of its Affiliates that are Secured Parties and each Issuing Bank hereby irrevocably appoints the entity named as Administrative Agent in the heading of this Agreement and its successors and permitted assigns to serve as the administrative agent and collateral agent under the Loan Documents and each Lender and each Issuing Bank authorizes the Administrative Agent to take such actions as agent on its behalf and to exercise such powers under this Agreement and the other Loan Documents as are delegated to the Administrative Agent under such agreements and to exercise such powers as are reasonably incidental thereto.  In addition, to the extent required under the laws of any jurisdiction other than within the United States, each Lender and each Issuing Bank hereby grants to the Administrative Agent any required powers of attorney to execute and enforce any Collateral Document governed by the laws of such jurisdiction on such Lender’s or such Issuing Bank’s behalf.  Without limiting the foregoing, each Lender and each Issuing Bank hereby authorizes the Administrative Agent to execute and deliver, and to perform its obligations under, each of the Loan Documents to which the Administrative Agent is a party, and to exercise all rights, powers and remedies that the Administrative Agent may have under such Loan Documents.
2.As to any matters not expressly provided for herein and in the other Loan Documents (including enforcement or collection), the Administrative Agent shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the written instructions of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, pursuant to the terms in the Loan Documents), and, unless and until revoked in writing, such instructions shall be binding upon each Lender and each Issuing Bank; provided, however, that the Administrative Agent shall not be required to take any action that (i) the Administrative Agent in good faith believes exposes it to liability unless the Administrative Agent receives an indemnification and is exculpated in a manner satisfactory to it from the Lenders and the Issuing Banks with respect to such action or (ii) is contrary to this Agreement or any other Loan Document or applicable law, including any action that may be in violation of the automatic stay under any Requirement of Law relating to bankruptcy, insolvency or reorganization or relief of debtors or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Requirement of Law relating to bankruptcy, insolvency or reorganization or relief of debtors; provided, further, that the Administrative Agent may seek clarification or direction from the Required Lenders prior to the exercise of any such instructed action and may refrain from acting until such clarification or direction has been provided.  Except as expressly set forth in the Loan Documents, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower, any other Loan Party, any Subsidiary or any Affiliate of any of the foregoing that is communicated to or obtained by the Person serving as Administrative Agent or any of its Affiliates in any capacity.  Nothing in this Agreement shall require the Administrative Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.
3.In performing its functions and duties hereunder and under the other Loan Documents, the Administrative Agent is acting solely on behalf of the Lenders and the Issuing Banks (except in limited circumstances expressly provided for herein relating to the maintenance of the Register and limited discretionary powers as contemplated in this Agreement), and its duties are entirely mechanical and administrative in nature.  Without limiting the generality of the foregoing:
(a)the Administrative Agent does not assume and shall not be deemed to have assumed any obligation or duty or any other relationship as the agent, fiduciary or trustee of or for any Lender, Issuing Bank, any other Secured Party or holder of any other 
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obligation regardless of whether a Default or an Event of Default has occurred and is continuing (and it is understood and agreed that the use of the term “agent” (or any similar term) herein or in any other Loan Document with reference to the Administrative Agent is not intended to connote any fiduciary duty or other implied (or express) obligations arising under agency doctrine of any applicable law, and that such term is used as a matter of market custom and is intended to create or reflect only an administrative relationship between contracting parties); additionally, each Lender agrees that it will not assert any claim against the Administrative Agent based on an alleged breach of fiduciary duty by the Administrative Agent in connection with this Agreement and/or the transactions contemplated hereby; and
(b)nothing in this Agreement or any Loan Document shall require the Administrative Agent to account to any Lender for any sum or the profit element of any sum received by the Administrative Agent for its own account;
(1)The Administrative Agent may perform any of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such sub-agent may perform any of their respective duties and exercise their respective rights and powers through their respective Related Parties.  The exculpatory provisions of this Article VIII shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities pursuant to this Agreement.  The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agent except to the extent that a court of competent jurisdiction determines in a final and non-appealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agent.
(2)None of any Syndication Agent, any Co-Documentation Agent or any Arranger shall have obligations or duties whatsoever in such capacity under this Agreement or any other Loan Document and shall incur no liability hereunder or thereunder in such capacity, but all such persons shall have the benefit of the indemnities provided for hereunder.
(3)In case of the pendency of any proceeding with respect to any Loan Party under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, the Administrative Agent (irrespective of whether the principal of any Loan or any reimbursement obligation in respect of any LC Disbursement shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:
(c)to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, LC Disbursements and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders, the Issuing Banks and the Administrative Agent (including any claim under Sections 2.11, 2.12, 2.14, 2.16 and 9.03) allowed in such judicial proceeding; and
(d)to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such proceeding is hereby authorized by each Lender, each Issuing Bank and each other Secured Party to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, the 
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Issuing Banks or the other Secured Parties, to pay to the Administrative Agent any amount due to it, in its capacity as the Administrative Agent, under the Loan Documents (including under Section 9.03).  Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender or Issuing Bank any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or Issuing Bank or to authorize the Administrative Agent to vote in respect of the claim of any Lender or Issuing Bank in any such proceeding.
(19)The provisions of this Article VIII (other than in the case of Section 8.01(a), (d)  and (f) and Sections 8.03 through 8.09)  are solely for the benefit of the Administrative Agent, the Lenders and the Issuing Banks, and, except solely to the extent of the Borrower’s rights to consent pursuant to and subject to the conditions set forth in this Article VIII, none of the Borrower or any Subsidiary, or any of their respective Affiliates, shall have any rights as a third party beneficiary under any such provisions (other than in the case of Section 8.01(a), (d) and (f) and Sections 8.03 through 8.09).  Each Secured Party, whether or not a party hereto, will be deemed, by its acceptance of the benefits of the Collateral and of the guarantees of the Secured Obligations provided under the Loan Documents, to have agreed to the provisions of this Article VIII.
SECTION 1.0au.Administrative Agent’s Reliance, Indemnification, Etc.
(4)Neither the Administrative Agent nor any of its Related Parties shall be (i) liable  for any action taken or omitted to be taken by such party, the Administrative Agent or any of its Related Parties under or in connection with this Agreement or the other Loan Documents (x) with the consent of or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith to be necessary, under the circumstances as provided in the Loan Documents) or (y) in the absence of its own gross negligence or willful misconduct (such absence to be presumed unless otherwise determined by a court of competent jurisdiction by a final and non-appealable judgment) or (ii) responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties made by any Loan Party or any officer thereof contained in this Agreement or any other Loan Document or in any certificate, report, statement or other document referred to or provided for in, or received by the Administrative Agent under or in connection with, this Agreement or any other Loan Document or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document (including, for the avoidance of doubt, in connection with the Administrative Agent’s reliance on any Electronic Signature transmitted by telecopy, emailed pdf.  or any other electronic means that reproduces an image of an actual executed signature page) or for any failure of any Loan Party to perform its obligations hereunder or thereunder.
(5)The Administrative Agent shall be deemed not to have knowledge of any (i) notice of any of the events or circumstances set forth or described in Section 5.02 unless and until written notice thereof stating that it is a “notice under Section 5.02” in respect of this Agreement and identifying the specific clause under said Section is given to the Administrative Agent by the Borrower, or (ii) notice of any Default or Event of Default unless and until written notice thereof (stating that it is a “notice of Default” or a “notice of an Event of Default”) is given to the Administrative Agent by the Borrower, a Lender or an Issuing Bank.  Further, the Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with any Loan Document, (ii) the contents of any certificate, report or other document delivered thereunder or in connection therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth in any Loan Document or the occurrence of any Default or Event of Default, (iv) the sufficiency, validity, enforceability, effectiveness or genuineness of any Loan Document or any other agreement, instrument or document, (v) the satisfaction of any condition 
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set forth in Article IV or elsewhere in any Loan Document, other than to confirm receipt of items (which on their face purport to be such items) expressly required to be delivered to the Administrative Agent or satisfaction of any condition that expressly refers to the matters described therein being acceptable or satisfactory to the Administrative Agent, (vi) the creation, perfection or priority of Liens on the Collateral.
(6)Without limiting the foregoing, the Administrative Agent (i) may treat the payee of any promissory note as its holder until such promissory note has been assigned in accordance with Section 9.04, (ii) may rely on the Register to the extent set forth in Section 9.04(b), (iii) may consult with legal counsel (including counsel to the Borrower), independent public accountants and other experts selected by it, and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts, (iv) makes no warranty or representation to any Lender or Issuing Bank and shall not be responsible to any Lender or Issuing Bank for any statements, warranties or representations made by or on behalf of any Loan Party in connection with this Agreement or any other Loan Document, (v) in determining compliance with any condition hereunder to the making of a Loan, or the issuance of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or an Issuing Bank, may presume that such condition is satisfactory to such Lender or Issuing Bank unless the Administrative Agent shall have received notice to the contrary from such Lender or Issuing Bank sufficiently in advance of the making of such Loan or the issuance of such Letter of Credit and (vi) shall be entitled to rely on, and shall incur no liability under or in respect of this Agreement or any other Loan Document by acting upon, any notice, consent, certificate or other instrument or writing (which writing may be a fax, any electronic message, Internet or intranet website posting or other distribution) or any statement made to it orally or by telephone and believed by it to be genuine and signed or sent or otherwise authenticated by the proper party or parties (whether or not such Person in fact meets the requirements set forth in the Loan Documents for being the maker thereof).
SECTION 1.0av.Posting of Communications.
4.The Borrower agrees that the Administrative Agent may, but shall not be obligated to, make any Communications available to the Lenders and the Issuing Banks by posting the Communications on IntraLinksTM, DebtDomain, SyndTrak, ClearPar or any other electronic system chosen by the Administrative Agent to be its electronic transmission system (the “Approved Electronic Platform”).
5.Although the Approved Electronic Platform and its primary web portal are secured with generally-applicable security procedures and policies implemented or modified by the Administrative Agent from time to time (including, as of the Effective Date, a user ID/password authorization system) and the Approved Electronic Platform is secured through a per-deal authorization method whereby each user may access the Approved Electronic Platform only on a deal-by-deal basis, each of the Lenders, each of the Issuing Banks and the Borrower acknowledges and agrees that the distribution of material through an electronic medium is not necessarily secure, that the Administrative Agent is not responsible for approving or vetting the representatives or contacts of any Lender that are added to the Approved Electronic Platform, and that there may be confidentiality and other risks associated with such distribution.  Each of the Lenders, each of the Issuing Banks and the Borrower hereby approves distribution of the Communications through the Approved Electronic Platform and understands and assumes the risks of such distribution.
6.THE APPROVED ELECTRONIC PLATFORM AND THE COMMUNICATIONS ARE PROVIDED “AS IS” AND “AS AVAILABLE”.  THE APPLICABLE PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE 
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APPROVED ELECTRONIC PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE APPROVED ELECTRONIC PLATFORM AND THE COMMUNICATIONS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE APPLICABLE PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE APPROVED ELECTRONIC PLATFORM.  IN NO EVENT SHALL THE ADMINISTRATIVE AGENT, ANY ARRANGER, ANY CO-DOCUMENTATION AGENT, ANY SYNDICATION AGENT OR ANY OF THEIR RESPECTIVE RELATED PARTIES (COLLECTIVELY, “APPLICABLE PARTIES”) HAVE ANY LIABILITY TO ANY LOAN PARTY, ANY LENDER, ANY ISSUING BANK OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF ANY LOAN PARTY’S OR THE ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET OR THE APPROVED ELECTRONIC PLATFORM.
“Communications” means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of any Loan Party pursuant to any Loan Document or the transactions contemplated therein which is distributed by the Administrative Agent, any Lender or any Issuing Bank by means of electronic communications pursuant to this Section 8.03(c), including through an Approved Electronic Platform.
7.Each Lender and each Issuing Bank agrees that notice to it (as provided in the next sentence) specifying that Communications have been posted to the Approved Electronic Platform shall constitute effective delivery of the Communications to such Lender for purposes of the Loan Documents.  Each Lender and Issuing Bank agrees (i) to notify the Administrative Agent in writing (which could be in the form of electronic communication) from time to time of such Lender’s or Issuing Bank’s (as applicable) email address to which the foregoing notice may be sent by electronic transmission and (ii) that the foregoing notice may be sent to such email address.
8.Each of the Lenders, each of the Issuing Banks and the Borrower agrees that the Administrative Agent may, but (except as may be required by applicable law) shall not be obligated to, store the Communications on the Approved Electronic Platform in accordance with the Administrative Agent’s generally applicable document retention procedures and policies.
9.Nothing herein shall prejudice the right of the Administrative Agent, any Lender or any Issuing Bank to give any notice or other communication pursuant to any Loan Document in any other manner specified in such Loan Document.
SECTION 1.0aw.The Administrative Agent Individually.  With respect to its Commitment, Loans (including Swingline Loans) and Letters of Credit, the Person serving as the Administrative Agent shall have and may exercise the same rights and powers hereunder and is subject to the same obligations and liabilities as and to the extent set forth herein for any other Lender or Issuing Bank, as the case may be.  The terms “Issuing Banks”, “Lenders”, “Required Lenders” and any similar terms shall, unless the context clearly otherwise indicates, include the Administrative Agent in its individual capacity as a Lender, Issuing Bank or as one of the Required Lenders, as applicable.  The Person serving as the Administrative Agent and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of banking, trust or other business with, any Loan Party, any Subsidiary or any Affiliate of any of the foregoing as if such 
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Person was not acting as the Administrative Agent and without any duty to account therefor to the Lenders or the Issuing Banks.
SECTION 1.0ax.Successor Administrative Agent.
(7)The Administrative Agent may resign at any time by giving thirty (30) days’ prior written notice thereof to the Lenders, the Issuing Banks and the Borrower, whether or not a successor Administrative Agent has been appointed.  Upon any such resignation, the Required Lenders shall have the right to appoint a successor Administrative Agent, which may not be a Disqualified Lender.  If no successor Administrative Agent shall have been so appointed by the Required Lenders, and shall have accepted such appointment, within thirty (30) days after the retiring Administrative Agent’s giving of notice of resignation, then the retiring Administrative Agent may, on behalf of the Lenders and the Issuing Banks, appoint a successor Administrative Agent, which shall be a bank with an office in New York, New York or an Affiliate of any such bank.  In either case, such appointment shall be subject to the prior written approval of the Borrower (which approval may not be unreasonably withheld and shall not be required while a Specified Event of Default has occurred and is continuing but may not, in any event, be a Disqualified Lender).  Upon the acceptance of any appointment as Administrative Agent by a successor Administrative Agent, such successor Administrative Agent shall succeed to, and become vested with, all the rights, powers, privileges and duties of the retiring Administrative Agent.  Upon the acceptance of appointment as Administrative Agent by a successor Administrative Agent, the retiring Administrative Agent shall be discharged from its duties and obligations under this Agreement and the other Loan Documents.  Prior to any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the retiring Administrative Agent shall take such action as may be reasonably necessary to assign to the successor Administrative Agent its rights as Administrative Agent under the Loan Documents.
(8)Notwithstanding paragraph (a) of this Section 8.05, in the event no successor Administrative Agent shall have been so appointed and shall have accepted such appointment within thirty (30) days after the retiring Administrative Agent gives notice of its intent to resign, the retiring Administrative Agent may give notice of the effectiveness of its resignation to the Lenders, the Issuing Banks and the Borrower, whereupon, on the date of effectiveness of such resignation stated in such notice, (i) the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents; provided that, solely for purposes of maintaining any security interest granted to the Administrative Agent under any Collateral Document for the benefit of the Secured Parties, the retiring Administrative Agent shall continue to be vested with such security interest as collateral agent for the benefit of the Secured Parties, and continue to be entitled to the rights set forth in such Collateral Document and Loan Document, and, in the case of any Collateral in the possession of the Administrative Agent, shall continue to hold such Collateral, in each case until such time as a successor Administrative Agent is appointed and accepts such appointment in accordance with this Section 8.05 (it being understood and agreed that the retiring Administrative Agent shall have no duty or obligation to take any further action under any Security Document, including any action required to maintain the perfection of any such security interest),  and (ii) the Required Lenders shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent; provided that (A) all payments required to be made hereunder or under any other Loan Document to the Administrative Agent for the account of any Person other than the Administrative Agent shall be made directly to such Person and (B) all notices and other communications required or contemplated to be given or made to the Administrative Agent shall directly be given or made to each Lender and each Issuing Bank.  Following the effectiveness of the Administrative Agent’s resignation from its capacity as such, the provisions of this Article VIII, Section 2.17(d) and Section 9.03, as well as any exculpatory, reimbursement and indemnification provisions set forth in any other Loan Document, shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties 
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in respect of any actions taken or omitted to be taken by any of them while the retiring Administrative Agent was acting as Administrative Agent and in respect of the matters referred to in the proviso under clause (a) above. 
SECTION 1.0ay.Acknowledgements of Lenders and Issuing Banks.
(9)Each Lender and each Issuing Bank represents and warrants that (i) the Loan Documents set forth the terms of a commercial lending facility, (ii) it is engaged in making, acquiring or holding commercial loans and in providing other facilities set forth herein as may be applicable to such Lender or Issuing Bank, in each case in the ordinary course of business, and not for the purpose of purchasing, acquiring or holding any other type of financial instrument (and each Lender and each Issuing Bank agrees not to assert a claim in contravention of the foregoing),(iii) it has, independently and without reliance upon the Administrative Agent, any Arranger, any Syndication Agent, any Co-Documentation Agent, or any other Lender or Issuing Bank, or any of the Related Parties of any of the foregoing, and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement as a Lender, and to make, acquire or hold Loans hereunder and (iv) it is sophisticated with respect to decisions to make, acquire and/or hold commercial loans and to provide other facilities set forth herein, as may be applicable to such Lender or such Issuing Bank, and either it, or the Person exercising discretion in making its decision to make, acquire and/or hold such commercial loans or to provide such other facilities, is experienced in making, acquiring or holding such commercial loans or providing such other facilities.  Each Lender and each Issuing Bank also acknowledges that it will, independently and without reliance upon the Administrative Agent, any Arranger, any Syndication Agent, any Co-Documentation Agent, or any other Lender or Issuing Bank, or any of the Related Parties of any of the foregoing, and based on such documents and information (which may contain material, non-public information within the meaning of the United States securities laws concerning the Borrower and its Affiliates) as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.
(10)Each Lender, by delivering its signature page to this Agreement on the Effective Date, or delivering its signature page to an Assignment and Assumption or any other Loan Document pursuant to which it shall become a Lender hereunder, shall be deemed to have acknowledged receipt of, and consented to and approved, each Loan Document and each other document required to be delivered to, or be approved by or satisfactory to, the Administrative Agent or the Lenders on the Effective Date or the effective date of any such Assignment and Assumption or any other Loan Document pursuant to which it shall have become a Lender hereunder.
(11)(i) Each Lender hereby agrees that (x) if the Administrative Agent notifies such Lender that the Administrative Agent has determined in its sole discretion that any funds received by such Lender from the Administrative Agent or any of its Affiliates (whether as a payment, prepayment or repayment of principal, interest, fees or otherwise; individually and collectively, a “Payment”) were erroneously transmitted to such Lender (whether or not known to such Lender), and demands the return of such Payment (or a portion thereof), such Lender shall promptly, but in no event later than one Business Day thereafter, return to the Administrative Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in same day funds, together with interest thereon in respect of each day from and including the date such Payment (or portion thereof) was received by such Lender to the date such amount is repaid to the Administrative Agent at the greater of the NYFRB Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect, and (y) to the extent permitted by applicable law, such Lender shall not assert, and hereby waives, as to the Administrative Agent, any claim, 
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counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Payments received, including without limitation any defense based on “discharge for value” or any similar doctrine.  A notice of the Administrative Agent to any Lender under this Section 8.06(c) shall be conclusive, absent manifest error.
(a)Each Lender hereby further agrees that if it receives a Payment from the Administrative Agent or any of its Affiliates (x) that is in a different amount than, or on a different date from, that specified in a notice of payment sent by the Administrative Agent (or any of its Affiliates) with respect to such Payment (a “Payment Notice”) or (y) that was not preceded or accompanied by a Payment Notice, it shall be on notice, in each such case, that an error has been made with respect to such Payment.  Each Lender agrees that, in each such case, or if it otherwise becomes aware a Payment (or portion thereof) may have been sent in error, such Lender shall promptly notify the Administrative Agent of such occurrence and, upon demand from the Administrative Agent, it shall promptly, but in no event later than one (1) Business Day thereafter, return to the Administrative Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in same day funds, together with interest thereon in respect of each day from and including the date such Payment (or portion thereof) was received by such Lender to the date such amount is repaid to the Administrative Agent at the greater of the NYFRB Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect.
(b)The Borrower hereby agrees that in the event an erroneous Payment (or portion thereof) is not recovered from any Lender or Issuing Bank that has received such erroneous Payment (or portion thereof) for any reason, (x) the Administrative Agent shall be subrogated to all the rights of such Lender or Issuing Bank with respect to such amount (if any) under this Agreement and the Loan Documents and (y) the receipt of an erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Borrower, except, in each case, to the extent such erroneous Payment is, and solely with respect to the amount of such erroneous Payment that is, comprised of funds of the Borrower or any Loan Party received by the Administrative Agent from or at the direction of the Borrower or any Loan Party for the purpose of making such payment.  To the extent any such erroneous Payment is comprised of funds taken from an account of the Borrower or any Subsidiary without the Borrower’s or such Subsidiary’s authorization or as otherwise permitted pursuant to any Loan Document or applicable law, any such funds shall be immediately returned by the applicable Lender to the Borrower or the relevant Subsidiary and nothing contained in this Agreement or any other Loan Document shall prejudice the rights of the Borrower or any Subsidiary with respect to such unauthorized debit or conversion of its funds.
(c)Each party’s obligations under this Section 8.06(c) shall survive the resignation or replacement of the Administrative Agent or any transfer of rights or obligations by, or the replacement of, a Lender, the termination of the Commitments or the repayment, satisfaction or discharge of all Obligations under any Loan Document.
(9)Each Lender hereby agrees that (i) it has requested a copy of each Report prepared by or on behalf of the Administrative Agent; (ii) the Administrative Agent (A) makes no representation or warranty, express or implied, as to the completeness or accuracy of any Report or any of the information contained therein or any inaccuracy or omission contained in or relating to a Report and (B) shall not be liable for any information contained in any Report; (iii) the Reports are not comprehensive audits or examinations, and that any Person performing any field examination will inspect only specific information regarding the Loan Parties and will rely significantly upon the Loan Parties’ books and records, as well as on representations of the Loan 
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Parties’ personnel and that the Administrative Agent undertakes no obligation to update, correct or supplement the Reports; (iv) it will keep all Reports confidential and strictly for its internal use, not share the Report with any Loan Party or any other Person except as otherwise permitted pursuant to this Agreement; and (v) without limiting the generality of any other indemnification provision contained in this Agreement, (A) it will hold the Administrative Agent and any such other Person preparing a Report harmless from any action the indemnifying Lender may take or conclusion the indemnifying Lender may reach or draw from any Report in connection with any extension of credit that the indemnifying Lender has made or may make to the Borrower, or the indemnifying Lender’s participation in, or the indemnifying Lender’s purchase of, a Loan or Loans; and (B) it will pay and protect, and indemnify, defend, and hold the Administrative Agent and any such other Person preparing a Report harmless from and against, the claims, actions, proceedings, damages, costs, expenses, and other amounts (including reasonable attorneys’ fees) incurred by the Administrative Agent or any such other Person as the direct or indirect result of any third parties who might obtain all or part of any Report through the indemnifying Lender.
SECTION 1.0az.Collateral Matters.
10.Except with respect to the exercise of setoff rights in accordance with Section 9.08 or with respect to a Secured Party’s right to file a proof of claim in an insolvency proceeding, no Secured Party shall have any right individually to realize upon any of the Collateral or to enforce any guarantee of the Secured Obligations, it being understood and agreed that all powers, rights and remedies under the Loan Documents may be exercised solely by the Administrative Agent on behalf of the Secured Parties in accordance with the terms thereof.  In its capacity, the Administrative Agent is a “representative” of the Secured Parties within the meaning of the term “secured party” as defined in the UCC.  In the event that any Collateral is hereafter pledged by any Person as collateral security for the Secured Obligations, the Administrative Agent is hereby authorized, and hereby granted a power of attorney, to execute and deliver on behalf of the Secured Parties any Loan Documents necessary or appropriate to grant and perfect a Lien on such Collateral in favor of the Administrative Agent on behalf of the Secured Parties.
11.In furtherance of the foregoing and not in limitation thereof, no arrangements in respect of Banking Services the obligations under which constitute Secured Obligations and no Swap Agreement the obligations under which constitute Secured Obligations, will create (or be deemed to create) in favor of any Secured Party that is a party thereto any rights in connection with the management or release of any Collateral or of the obligations of any Loan Party under any Loan Document.  By accepting the benefits of the Collateral, each Secured Party that is a party to any such arrangement in respect of Banking Services or Swap Agreement, as applicable, shall be deemed to have appointed the Administrative Agent to serve as administrative agent and collateral agent under the Loan Documents and agreed to be bound by the Loan Documents as a Secured Party thereunder, subject to the limitations set forth in this paragraph.
12.The Secured Parties irrevocably authorize the Administrative Agent, without any consent or further agreement of any Secured Party to, to subordinate any Lien on any property granted to or held by the Administrative Agent under any Loan Document to the holder of any Lien on such property that is permitted by Section 6.02; provided that any subordination of Liens on property in reliance on Section 6.02(c) shall be limited to property which may secure Indebtedness of the type specified in Section 6.01(e).  The Administrative Agent shall not be responsible for or have a duty to ascertain or inquire into any representation or warranty regarding the existence, value or collectability of the Collateral, the existence, priority or perfection of the Administrative Agent’s Lien thereon or any certificate prepared by any Loan Party in connection therewith, nor shall the Administrative Agent be responsible or liable to the Lenders or any other Secured Party for any failure to monitor or maintain any portion of the Collateral.
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SECTION 1.0ba.Credit Bidding.  The Secured Parties hereby irrevocably authorize the Administrative Agent, at the direction of the Required Lenders, to credit bid all or any portion of the Obligations (including by accepting some or all of the Collateral in satisfaction of some or all of the Obligations pursuant to a deed in lieu of foreclosure or otherwise) and in such manner purchase (either directly or through one or more acquisition vehicles) all or any portion of the Collateral (a) at any sale thereof conducted under the provisions of the Bankruptcy Code, including under Sections 363, 1123 or 1129 of the Bankruptcy Code, or any similar laws in any other jurisdictions to which a Loan Party is subject, or (b) at any other sale, foreclosure or acceptance of collateral in lieu of debt conducted by (or with the consent or at the direction of) the Administrative Agent (whether by judicial action or otherwise) in accordance with any applicable law.  In connection with any such credit bid and purchase, the Obligations owed to the Secured Parties shall be entitled to be, and shall be, credit bid by the Administrative Agent at the direction of the Required Lenders on a ratable basis (with Obligations with respect to contingent or unliquidated claims receiving contingent interests in the acquired assets on a ratable basis that shall vest upon the liquidation of such claims in an amount proportional to the liquidated portion of the contingent claim amount used in allocating the contingent interests) for  the asset or assets so purchased (or for the equity interests or debt instruments of the acquisition vehicle or vehicles that are issued in connection with such purchase).  In connection with any such bid (i) the Administrative Agent shall be authorized to form one or more acquisition vehicles and to assign any successful credit bid to such acquisition vehicle or vehicles (ii) each of the Secured Parties’ ratable interests in the Obligations which were credit bid shall be deemed without any further action under this Agreement to be assigned to such vehicle or vehicles for the purpose of closing such sale, (iii) the Administrative Agent shall be authorized to adopt documents providing for the governance of the acquisition vehicle or vehicles (provided that any actions by the Administrative Agent with respect to such acquisition vehicle or vehicles, including any Disposition of the assets or equity interests thereof, shall be governed, directly or indirectly, by, and the governing documents shall provide for, control by the vote of the Required Lenders or their permitted assignees under the terms of this Agreement or the governing documents of the applicable acquisition vehicle or vehicles, as the case may be, irrespective of the termination of this Agreement and without giving effect to the limitations on actions by the Required Lenders contained in Section 9.02 of this Agreement), (iv) the Administrative Agent on behalf of such acquisition vehicle or vehicles shall be authorized to issue to each of the Secured Parties, ratably on account of the relevant Obligations which were credit bid, interests, whether as equity, partnership interests, limited partnership interests or membership interests, in any such acquisition vehicle  and/or debt instruments issued by such acquisition vehicle, all without the need for any Secured Party or acquisition vehicle to take any further action, and (v) to the extent that Obligations that are assigned to an acquisition vehicle are not used to acquire Collateral for any reason (as a result of another bid being higher or better, because the amount of Obligations assigned to the acquisition vehicle exceeds the amount of Obligations credit bid by the acquisition vehicle or otherwise), such Obligations shall automatically be reassigned to the Secured Parties pro rata with their original interest in such Obligations and the equity interests and/or debt instruments issued by any acquisition vehicle on account of such Obligations shall automatically be cancelled, without the need for any Secured Party or any acquisition vehicle to take any further action.  Notwithstanding that the ratable portion of the Obligations of each Secured Party are deemed assigned to the acquisition vehicle or vehicles as set forth in clause (ii) above, each Secured Party shall execute such documents and provide such information regarding the Secured Party (and/or any designee of the Secured Party which will receive interests in or debt instruments issued by such acquisition vehicle) as the Administrative Agent may reasonably request in connection with the formation of any acquisition vehicle, the formulation or submission of any credit bid or the consummation of the transactions contemplated by such credit bid.
SECTION 1.0bb.Certain ERISA Matters.
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(10)Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and its Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that at least one of the following is and will be true:
(a)such Lender is not using “plan assets” (within the meaning of the Plan Asset Regulations) of one or more Benefit Plans in connection with the Loans, the Letters of Credit or the Commitments,
(b)the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement,
(c)(A) such Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement, or
(d)such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.
(20)In addition, unless sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or such Lender has not provided another representation, warranty and covenant as provided in sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and its Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that none of the Administrative Agent, or any Arranger, any Syndication Agent, any Co-Documentation Agent or any of their respective Affiliates is a fiduciary with respect to the Collateral or the assets of such Lender (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related to hereto or thereto).
(21)The Administrative Agent, any Arranger, Syndication Agent and Co-Documentation Agent hereby informs the Lenders that each such person is not undertaking to provide investment advice or to give advice in a fiduciary capacity, in connection with the transactions contemplated hereby, and that such Person has a financial interest in the transactions contemplated hereby in that such Person or an Affiliate thereof (i) may receive interest or other 
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payments with respect to the Loans, the Letters of Credit, the Commitments, this Agreement and any other Loan Documents (ii) may recognize a gain if it extended the Loans, the Letters of Credit or the Commitments for an amount less than the amount being paid for an interest in the Loans, the Letters of Credit or the Commitments by such Lender or (iii) may receive fees or other payments in connection with the transactions contemplated hereby, the Loan Documents or otherwise, including structuring fees, commitment fees, arrangement fees, facility fees, upfront fees, underwriting fees, ticking fees, agency fees, administrative agent or collateral agent fees, utilization fees, minimum usage fees, letter of credit fees, fronting fees, deal-away or alternate transaction fees, amendment fees, processing fees, term out premiums, banker’s acceptance fees, breakage or other early termination fees or fees similar to the foregoing.
j.Flood Laws.  JPMCB has adopted internal policies and procedures that address requirements placed on federally regulated lenders under the National Flood Insurance Reform Act of 1994 and related legislation (the “Flood Laws”).  JPMCB, as administrative agent or collateral agent on a syndicated facility, will post on the applicable electronic platform (or otherwise distribute to each Lender in the syndicate) documents that it receives in connection with the Flood Laws.  However, JPMCB reminds each Lender and Participant in the facility that, pursuant to the Flood Laws, each federally regulated Lender (whether acting as a Lender or Participant in the facility) is responsible for assuring its own compliance with the flood insurance requirements.

ARTICLE 9
MISCELLANEOUS
SECTION 1.0bc.Notices.
(1)Except in the case of notices and other communications expressly permitted to be given by telephone or Electronic Systems (and subject in each case to paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy or email, as follows:
(a)if to any Loan Party:
141 River’s Edge Drive, Suite 200 
Traverse City, Michigan 49684
Attention:  Mr. Frederick J. Turcotte, Chief Financial Officer 
Facsimile No.: (231) 922-8829
Email: fturcotte@hagerty.com; 
Telephone No.: (231) 922-8876
 
with copies of any notices of any Default also sent to:  
141 River’s Edge Drive, Suite 200
Traverse City, Michigan 49684
Attention:  Ms. Barbara Matthews, General Counsel 
Facsimile No.: (231) 922-8876
Email: bmatthews@hagerty.com
Telephone No.: (231) 922-8826

(b)if to the Administrative Agent or Swingline Lender:
JPMorgan Chase Bank, N.A.  
10 South Dearborn, Floor L2 
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Suite IL1-0480
Chicago, IL 60603-2300
Attention:  Michaela Grgantov 
Telephone No.: (312) 954-0037 
Email: michaela.grgantov@chase.com  

with copy(s) to: 

JPMorgan Chase Bank, N.A. 
Middle Market Servicing
10 South Dearborn, Floor L2 
Suite IL1-0480
Chicago, IL 60603-2300
Attention: Commercial Banking Group 
Facsimile No.: (844) 490-5663 
Email: jpm.agency.cri@jpmorgan.com
Jpm.agency.servicing.1@jpmorgan.com

Agency Withholding Tax Inquiries:
Email: agency.tax.reporting@jpmorgan.com;

Agency Compliance/Financials/Intralinks 
Email: covenant.compliance@jpmchase.com

(c)If to Issuing Bank:
JPMorgan Chase Bank, N.A.
10 South Dearborn, Floor L2
Suite IL1-0480
Chicago, IL, 60603-2300
Attention: LC Agency Team
Tel: 800-364-1969
Fax: 856-294-5267
Email: chicago.lc.agency.activity.team@jpmchase.com

with a copy to:

JPMorgan Chase Bank, N.A.
10 South Dearborn, Floor L2
Suite IL1-0480
Chicago, IL, 60603-2300
Attention: Loan & Agency Services Group
Phone No: (312) 954-0037
Email: michaela.grgantov@chase.com

(d)in the case of a notification of, or in respect of, the DQ List, also to JPMDQ_Contact@jpmorgan.com; and
(e)if to any other Lender, to it at its address (or email or telecopy number) set forth in its Administrative Questionnaire.
All such notices and other communications (i) sent by hand or overnight courier service, or mailed by certified or registered mail shall be deemed to have been given when received, (ii) sent by fax shall be deemed to have been given when sent, provided that if not given during normal 
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business hours for the recipient, such notice or communication shall be deemed to have been given at the opening of business on the next Business Day of the recipient, or (iii) delivered through Electronic Systems or Approved Electronic Platforms, as applicable, to the extent provided in paragraph (b) below shall be effective as provided in such paragraph.
(37)Notices and other communications to the Borrower, any Loan Party, the Lenders and the Issuing Banks hereunder may be delivered or furnished by using Electronic Systems or Approved Electronic Platforms, as applicable, or pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to Article II or to Compliance Certificates unless otherwise agreed by the Administrative Agent and the applicable Lender.  Each of the Administrative Agent and the Borrower (on behalf of the Loan Parties) may, in its discretion, agree to accept notices and other communications to it hereunder by using Electronic Systems or Approved Electronic Platforms, as applicable, pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.  Unless the Administrative Agent otherwise proscribes, all such notices and other communications (i) sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), provided that if not given during the normal business hours of the recipient, such notice or communication shall be deemed to have been given at the opening of business on the next Business Day for the recipient, and (ii) posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, e-mail or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next Business Day of the recipient.
(38)Any party hereto may change its address, facsimile number or e-mail address for notices and other communications hereunder by notice to the other parties hereto.
SECTION 1.0bd.Waivers; Amendments.  (a) No failure or delay by the Administrative Agent, the Issuing Bank or any Lender in exercising any right or power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Administrative Agent, the Issuing Bank and the Lenders hereunder and under any other Loan Document are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of any Loan Document or consent to any departure by any Loan Party therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section 9.02, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.  Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent, any Lender or the Issuing Bank may have had notice or knowledge of such Default at the time.
(2)Subject to Section 2.13(b), (c), (d), and (e), and this Section 9.02, neither this Agreement nor any other Loan Document nor any provision hereof or thereof may be waived, amended or modified except (i) in the case of this Agreement, pursuant to an agreement or agreements in writing entered into by the Borrower and the Required Lenders or (ii) in the case of any other Loan Document, pursuant to an agreement or agreements in writing entered into by the Administrative Agent and the Loan Party or Loan Parties that are parties thereto, with the consent of the Required Lenders; provided that no such agreement shall (i) increase the 
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Commitment of any Lender, without the written consent of such Lender (including any such Lender that is a Defaulting Lender) (it being understood that a waiver of any condition precedent in Section 4.02 or the waiver of any Default, Event of Default or mandatory reduction of the Commitments shall not be an increase of a Commitment of any Lender), (ii) reduce or forgive the principal amount of any Loan or LC Disbursement or reduce or forgive the rate of interest thereon (other than interest accruing pursuant to Section 2.12(c) or a waiver thereof), or reduce or forgive any fees or other amounts payable hereunder, without the written consent of each Lender (including any such Lender that is a Defaulting Lender) directly affected thereby (except that any amendment or modification of the financial covenants in this Agreement (or defined terms used in the financial covenants in this Agreement) shall not constitute a reduction in the rate of interest or fees for purposes of this clause (ii)), or (iii) postpone any scheduled date of payment of the principal amount of any Loan or LC Disbursement, or any date for the payment of any interest, fees or other Obligations payable hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date of expiration of any Commitment (it being understood that a waiver of any condition precedent in Section 4.02 or the waiver of any Default or Event of Default or mandatory reduction of the Commitments shall not be an extension of a Commitment of any Lender), without the written consent of each Lender directly affected thereby, (iv) change Section 2.17(b) or (c) in a manner that would alter the manner in which payments are shared, without the written consent of each Lender (including any such Lender that is a Defaulting Lender), (v) change any of the provisions of this Section 9.02 or the definition of “Required Lenders”, “Required Lenders” or any other provision of any Loan Document specifying the number or percentage of Lenders (or Lenders of any Class) required to waive, amend or modify any rights thereunder or make any determination or grant any consent thereunder, without the written consent of each Lender, (vi) release all or substantially all of the Guarantors from their obligation under the Subsidiary Guaranty (except as otherwise permitted herein or in the other Loan Documents), without the written consent of each Lender (other than any Defaulting Lender), or (vii) except as provided in clause (d) of this Section 9.02 or in any Collateral Document, release or subordinate all or substantially all of the Collateral, without the written consent of each Lender (other than any Defaulting Lender); provided further that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent, the Issuing Bank or the Swingline Lender hereunder without the prior written consent of the Administrative Agent, the Issuing Bank or the Swingline Lender, as the case may be. The Administrative Agent may also amend the Commitment Schedule to reflect assignments entered into pursuant to Section 9.04 or Section 2.04.
(3)The Lenders hereby irrevocably authorize the Administrative Agent to, and the Administrative Agent hereby agrees with the Borrower that it shall, release any Liens granted to the Administrative Agent by the Loan Parties on any Collateral (i) upon the Payment in Full of all Secured Obligations (other than Unliquidated Obligations) and the cash collateralization of all Unliquidated Obligations in a manner reasonably satisfactory to the Administrative Agent, (ii) constituting property being sold or Disposed of if the Borrower certifies to the Administrative Agent that the sale or Disposition is made in compliance with the terms of this Agreement (and the Administrative Agent may rely conclusively on any such certificate, without further inquiry), (iii) constituting property leased to the Borrower or any Subsidiary under a lease which has expired or been terminated in a transaction permitted under this Agreement, or (iv) as required to effect any sale or other Disposition of such Collateral in connection with any exercise of remedies of the Administrative Agent and the Lenders pursuant to Article VII.  Any such release shall not in any manner discharge, affect, or impair the Obligations or any Liens (other than those expressly being released) upon (or obligations of the Loan Parties in respect of) all interests retained by the Loan Parties, including the proceeds of any sale, all of which shall continue to constitute part of the Collateral and the Administrative Agent shall not be required to execute any such release on terms which, in the Administrative Agent’s reasonable opinion, would expose the Administrative Agent to liability or create any obligation or entail any consequence other than the release of such Liens without recourse or warranty.
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(4)Notwithstanding anything to the contrary herein:
(a)this Agreement and the other Loan Documents may be amended to effect an incremental facility pursuant to Section 2.08(e) (and the Administrative Agent, the Borrower and any Lender providing Loans under such incremental facility may effect such amendments to this Agreement and the other Loan Documents without the consent of any other party as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent, the Borrower and such Lender, to effect the terms of any such incremental facility);
(b)the Administrative Agent may, with the consent of the Borrower only, amend, modify or supplement this Agreement or any of the other Loan Documents to cure any ambiguity, omission, mistake, defect or inconsistency; and
(c)guarantees, Collateral Documents and related documents executed by the Loan Parties in connection with this Agreement may be in a form reasonably determined by the Administrative Agent and may be, together with any other Loan Document, entered into, amended, supplemented or waived, without the consent of any other Person, by the applicable Loan Party or Loan Parties and the Administrative Agent, to (A) effect the granting, perfection, protection, expansion or enhancement of any security interest in any Collateral or additional property to become Collateral for the benefit of the Secured Parties or (B) as required by local law to give effect to, or protect any security interest for the benefit of the Secured Parties, in any property or so that the security interests therein comply with applicable requirements of law.
SECTION 1.0c.Expenses; Indemnity; Damage Waiver.  (a) The Borrower shall pay (i) all reasonable and documented out-of-pocket expenses incurred by each of the Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements of one (1) primary counsel for the Administrative Agent and one (1) local counsel to the Administrative Agent in each relevant jurisdiction (excluding in-house counsel), if necessary, in connection with the syndication and distribution (including, without limitation, via the internet or through an Electronic System or Approved Electronic Platform) of the credit facilities provided for herein, the preparation and administration of the Loan Documents or any amendments, modifications or waivers of the provisions of the Loan Documents (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable and documented out-of-pocket expenses incurred by the Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent, the Issuing Bank or any Lender, including the fees, charges and disbursements of any counsel for the Administrative Agent, the Issuing Bank or any Lender (limited to, in the case of legal expenses, the fees, charges and disbursements of one (1) primary counsel for the Lenders, taken as a whole, and solely in the event of an actual or reasonably perceived conflict of interest and after written notice to the Borrower regarding such actual or perceived conflict of interest, one (1) additional counsel for the Lenders, taken as a whole), in connection with the enforcement, collection or protection of its rights in connection with the Loan Documents, including its rights under this Section 9.03, or in connection with the Loans made or Letters of Credit issued hereunder, including all such reasonable and documented out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.
(1)To the extent permitted by applicable law (i) neither the Borrower nor any Loan Party shall assert any claim against any Indemnitee for any Liabilities arising from the use by others of information or other materials (including, without limitation, any personal data) obtained through telecommunications, electronic or other information transmission systems 
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(including the Internet), and (ii) no party hereto shall assert any Liabilities against any other party hereto, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof; provided that, nothing in this Section 9.03(b) shall relieve the Borrower or any Loan Party of any obligation it may have to indemnify an Indemnitee, as provided in Section 9.03(c), against any special, indirect, consequential or punitive damages asserted against such Indemnitee by a third party.
(2)The Borrower shall indemnify the Administrative Agent, each Arranger, each Syndication Agent, each Co-Documentation Agent, each Issuing Bank and each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all Liabilities and related expenses (limited to, in the case of legal expenses, the fees, charges and disbursements of one (1) primary counsel for the Indemnitees, taken as a whole, one (1) local counsel in each jurisdiction where Collateral is located or proceedings are held, and solely in the event of an actual or reasonably perceived conflict of interest and after written notice to the Borrower regarding such actual or perceived conflict of interest, one (1) additional counsel for the Indemnitees, taken as a whole) for such Indemnitee incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution and delivery of the Loan Documents and any agreement or instrument contemplated thereby, (ii) the funding of any Loan or the issuance of any Letter of Credit or the use of the proceeds therefrom (including any refusal by an Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any act or omission of the Administrative Agent in connection with the administration of the Loan Documents, (iv) any actual or alleged presence or Release of Hazardous Materials on or from any property owned or operated by a Loan Party or a Subsidiary, or any Environmental Liability related in any way to a Loan Party or a Subsidiary prior to foreclosure of such property, (v) the manufacture, purchase, acceptance, rejection, ownership, delivery, lease, possession, use, operation, condition, sale, return or other disposition of any Collateral (including, without limitation, latent and other defects, whether or not discoverable by the Administrative Agent or the Lenders or each Loan Party, and any claim for patent, trademark or copyright infringement) prior to foreclosure of such Collateral, or (vi) any actual or prospective Proceeding relating to any of the foregoing, whether or not such Proceeding is brought by any Loan Party or their respective equity holders, Affiliates, creditors or any other third Person and whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such Liabilities or related expenses are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted primarily from (x) the bad faith, gross negligence or willful misconduct of such Indemnitee, (y) a material breach of the Loan Documents by an Indemnitee, or (z) any dispute that does not involve an act or omission by the Borrower, any Subsidiary of any of their Affiliates and that is between and among Indemnitees (other than an Indemnitee in its capacity of Lead Arranger/Lead Bookrunner or the Administrative Agent or any other similar role with respect to the Loan Documents).  This Section 9.03(c) shall not apply with respect to Taxes other than any Taxes that represent losses or damages arising from any non-Tax claim.
(3)Each Lender severally agrees to pay any amount required to be paid by any Loan Party under paragraphs (a), (b) or (c) of this Section 9.03 to the Administrative Agent, the Swingline Lender and each Issuing Bank, and each Related Party of any of the foregoing Persons (each, an “Agent-Related Person”) (to the extent not reimbursed by the Loan Parties and without limiting the obligation of any Loan Party to do so), ratably according to their respective Applicable Percentage in effect on the date on which such payment is sought under this Section 9.03 (or, if such payment is sought after the date upon which the Commitments shall 
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have terminated and the Loans shall have been paid in full, ratably in accordance with such Applicable Percentage immediately prior to such date), from and against any and all Liabilities and related expenses, including the fees, charges and disbursements of any kind whatsoever that may at any time (whether before or after the payment of the Loans) be imposed on, incurred by or asserted against such Agent-Related Person in any way relating to or arising out of the Commitments, this Agreement, any of the other Loan Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by such Agent-Related Person under or in connection with any of the foregoing; provided that the unreimbursed expense or Liability or related expense, as the case may be, was incurred by or asserted against such Agent-Related Person in its capacity as such; provided, further, that no Lender shall be liable for the payment of any portion of such Liabilities, costs, expenses or disbursements that are found by a final and non-appealable decision of a court of competent jurisdiction to have resulted primarily from such Agent-Related Person’s gross negligence or willful misconduct.  The agreements in this Section 9.03 shall survive the termination of this Agreement and the Payment in Full of the Obligations.
(4)Payments.  All amounts due under this Section 9.03 shall be payable within thirty (30) days after receipt of a written invoice therefor with reasonably detailed backup.
SECTION 1.0c.Successors and Assigns.  (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby (including any Affiliate of the Issuing Bank that issues any Letter of Credit), except that (i) the Borrower not may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this Section 9.04.  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby (including any Affiliate of the Issuing Bank that issues any Letter of Credit), Participants (to the extent provided in paragraph (c) of this Section 9.04) and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the Issuing Bank and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.
(5)(i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more Persons (other than an Ineligible Institution or a Disqualified Lender) all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment, participations in Letters of Credit and the Loans at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld) of:
(i)the Borrower; provided that, the Borrower shall be deemed to have consented to an assignment unless it shall object thereto by written notice to the Administrative Agent within ten (10) Business Days after having received notice thereof, and provided, further, that no consent of the Borrower shall be required for an assignment to a Lender or, if a Specified Event of Default has occurred and is continuing, any other Eligible Assignee;
(ii)the Administrative Agent; provided that no consent of the Administrative Agent shall be required for an assignment of all or any portion of, an Affiliate of a Lender or an Approved Fund; and
(iii)the Issuing Bank and the Swingline Lender.
(a)Assignments shall be subject to the following additional conditions:
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(i)except in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund or an assignment of the entire remaining amount of the assigning Lender’s Commitment or Loans of any Class, the amount of the Commitment or Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than $10,000,000, unless each of the Borrower and the Administrative Agent otherwise consent; provided that no such consent of the Borrower shall be required if a Specified Event of Default has occurred and is continuing;
(ii)each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement; provided that this clause shall not be construed to prohibit the assignment of a proportionate part of all the assigning Lender’s rights and obligations in respect of one Class of Commitments or Loans;
(iii)the parties to each assignment shall execute and deliver to the Administrative Agent (x) an Assignment and Assumption or (y) to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and the parties to the Assignment and Assumption are participants, together with a processing and recordation fee of $3,500; and
(iv)the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire in which the assignee designates one or more credit contacts to whom all syndicate-level information (which may contain material non-public information about the Borrower and its affiliates, the Loan Parties and their related parties or their respective securities) will be made available and who may receive such information in accordance with the assignee’s compliance procedures and applicable laws, including Federal and state securities laws.
For the purposes of this Section 9.04(b), the terms “Approved Fund” and “Ineligible Institution” have the following meanings:
(b)“Approved Fund” means any Person (other than a natural person) that is engaged in making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course of its business and that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.
a.“Ineligible Institution” means a (a) natural person, (b) a Defaulting Lender or its Lender Parent, (c) holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person or relative(s) thereof; provided that, with respect to clause (c), such holding company, investment vehicle or trust shall not constitute an Ineligible Institution if it (x) has not been established for the primary purpose of acquiring any Loans or Commitments, (y) is managed by a professional advisor, who is not such natural person or a relative thereof, having significant experience in the business of making or purchasing commercial loans, and (z) has assets greater than $25,000,000 and a significant part of its activities consist of making or purchasing commercial loans and similar extensions of credit in the ordinary course of its business; (d) a Loan Party or a Subsidiary or other Affiliate of a Loan Party or (e) any Person that is a Disqualified Lender.
b.Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this Section 9.04, from and after the effective date specified in each Assignment and 
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Assumption the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 2.14, 2.15, 2.16 and 9.03).  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 9.04 shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (c) of this Section 9.04.
c.The Administrative Agent, acting for this purpose as an agent of the Borrower, shall maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal amount of the Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent, the Issuing Bank and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for inspection by the Borrower, the Issuing Bank and any Lender, at any reasonable time and from time to time upon reasonable prior notice.
d.Upon its receipt of (x) a duly completed Assignment and Assumption executed by an assigning Lender and an assignee or (y) to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and the parties to the Assignment and Assumption are participants, the assignee’s completed Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph (b) of this Section 9.04 and any written consent to such assignment required by paragraph (b) of this Section 9.04, the Administrative Agent shall accept such Assignment and Assumption and record the information contained therein in the Register; provided that if either the assigning Lender or the assignee shall have failed to make any payment required to be made by it pursuant to Section 2.04(c), 2.05(d) or (e), 2.06(b), 2.17(c) or 9.03(c), the Administrative Agent shall have no obligation to accept such Assignment and Assumption and record the information therein in the Register unless and until such payment shall have been made in full, together with all accrued interest thereon.  No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph.
(6)(i) Any Lender may, without the consent of, or notice to, the Borrower, the Administrative Agent, the Issuing Bank or the Swingline Lender, sell participations to one or more banks or other entities other than an Ineligible Institution (a “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans owing to it); provided that (A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (C) the Borrower, the Administrative Agent, the Issuing Bank and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided 
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that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the first proviso to Section 9.02(b) that affects such Participant.  Subject to paragraph (c)(ii) of this Section 9.04, the Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.14, 2.15 and 2.16 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section 9.04 provided that such Participant (A) agrees to be subject to the provisions of Sections 2.17 and 2.18 as if it were an assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under Sections 2.14 or 2.16 with respect to any participation than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation.
        Each Lender that sells a participation agrees, at the Borrower’s request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 2.19(b) with respect to any Participant.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as though it were a Lender; provided such Participant agrees to be subject to Section 2.17(c) as though it were a Lender.
(a)A Participant shall not be entitled to receive any greater payment under Section 2.14 or 2.16 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written consent.  A Participant shall not be entitled to the benefits of Section 2.16 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees to comply with Section 2.16 as though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under this Agreement or any other Loan Document (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any Commitments, Loans, Letters of Credit or its other obligations under this Agreement or any other Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such Commitment, Loan, Letter of Credit or other obligation is in registered form under Section 5f.103 1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.
(7)Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including without limitation any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section 9.04 shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.
(8)Disqualified Lenders.
e.Except as otherwise provided in this Agreement, no assignment or participation shall be made to any Person that was a Disqualified Lender as of the date 
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(the “Trade Date”) on which the assigning or participating, as applicable, Lender entered into a binding agreement to sell and assign or grant a participation in all or a portion of its rights and obligations under this Agreement to such Person (unless the Borrower has consented to such assignment or participation in writing in its sole and absolute discretion, in which case such Person will not be considered a Disqualified Lender for the purpose of such assignment or participation). For the avoidance of doubt, with respect to any assignee or Participant that becomes a Disqualified Lender after the applicable Trade Date (including as a result of the delivery of a written supplement to the list of “Disqualified Lenders” referred to in, the definition of “Disqualified Lender”), (x) such assignee or Participant shall not retroactively be disqualified from becoming a Lender or Participant and (y) the execution by the Borrower of an Assignment and Assumption with respect to such assignee will not by itself result in such assignee no longer being considered a Disqualified Lender. Any assignment or participation in violation of this clause (e) shall not be void, but the other provisions of this clause (e) shall apply. 
f.If any assignment or participation is made to any Disqualified Lender without the Borrower’s prior written consent in violation of clause (i) above or its Affiliates, or if any Person becomes a Disqualified Lender or an Affiliate thereof after the applicable Trade Date, the Borrower may, at its sole expense and effort, upon notice to the applicable Disqualified Lender or Affiliate, as applicable, and the Administrative Agent, (A) terminate any Commitment of such Disqualified Lender or Affiliate, as applicable, and repay all obligations of the Borrower owing to such Disqualified Lender or Affiliate, as applicable, in connection with such Commitment and/or (B) require such Disqualified Lender or Affiliate, as applicable, to assign, without recourse (in accordance with and subject to the restrictions contained in this Section 9.04), all of its interest, rights and obligations under this Agreement to one or more Persons (other than an Ineligible Institution) at the lesser of (x) the par value of the principal amount thereof and (y) the amount that such Disqualified Lender or its Affiliates, as applicable, paid to acquire such interests, rights and obligations, in each case plus accrued interest, accrued fees and all other amounts (other than principal amounts) payable to it hereunder; provided that if any Lender (including any Disqualified Lender or Affiliate thereof that becomes a Lender) does not execute and deliver an Assignment and Assumption to the Administrative Agent within one (1) Business Day after having received a request therefor, such Lender (including any Disqualified Lender or Affiliate thereof that becomes a Lender) hereby grants to the Administrative Agent an irrevocable power of attorney (which power is coupled with an interest) to execute and deliver, on behalf of such Lender, as assignor, any Assignment and Assumption necessary to effectuate any assignment in full of such Lender’s interests hereunder.  
g.Notwithstanding anything to the contrary contained in this Agreement, Disqualified Lenders or any of their Affiliates to whom an assignment or participation is made in violation of clause (i) above (A) will not have the right to (x) receive information, reports or other materials provided to Lenders by the Borrower or any Subsidiary, the Administrative Agent or any other Lender, (y) attend or participate in meetings attended by the Lenders and the Administrative Agent, or (z) access any electronic site (including any E-Systems or other Electronic Transmissions) established for the Lenders, the Borrower or any Subsidiary or confidential communications from counsel to or financial advisors of the Administrative Agent, the Lenders, the Borrower or any Subsidiary and (B)(x) for purposes of any consent to any amendment, waiver or modification of, or any action under, and for the purpose of any direction to the Administrative Agent or any Lender to undertake any action (or refrain from taking any action) under this Agreement or any other Loan Document, each Disqualified Lender or its Affiliates, as applicable, will be deemed to have consented in the same proportion as the Lenders that are not Disqualified Lenders consented to such matter, and (y) for 
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purposes of voting on any plan of reorganization or plan of liquidation including under any Bankruptcy Event, each Disqualified Lender or its Affiliates, as applicable, party hereto hereby agrees (1) not to vote on such plan of reorganization or plan of liquidation, (2) if such Disqualified Lender or its Affiliates, as applicable, does vote on such plan of reorganization or plan of liquidation notwithstanding the restriction in the foregoing clause (1), such vote will be deemed not to be in good faith and shall be “designated” pursuant to Section 1126(e) of the Bankruptcy Code (or any similar provision in any other bankruptcy, insolvency or reorganization or relief of debtors or seeking the entry of an order for relief or the appointment of a custodian, receiver, trustee, conservator, liquidating agent, liquidator, other similar official or other official with similar powers or other applicable laws), and such vote shall not be counted in determining whether the applicable class has accepted or rejected such plan of reorganization in accordance with Section 1126(c) of the Bankruptcy Code (or any similar provision in any other U.S. Federal, state or foreign debtor relief laws or other applicable laws) and (3) not to contest any request by any party for a determination by a U.S. federal bankruptcy court (or other applicable court of competent jurisdiction) effectuating the foregoing clause (2).
h.The Administrative Agent shall have the right (but not the obligation), and the Borrower hereby expressly authorizes the Administrative Agent, to provide the list of Disqualified Lenders provided by the Borrower and any updates thereto from time to time (collectively, the “DQ List”) to each Lender or potential Lender requesting the same.  The Administrative Agent and the Lenders shall be entitled to rely on a representation from any assignee or participant (or prospective assignee or participant) that such Person is not a Disqualified Lender.  Except as set forth in the immediately preceding sentence, in no event shall the Administrative Agent be obligated to ascertain, inquire into or monitor as to whether any Lender or prospective assignee is a Disqualified Lender or enforce compliance with the provisions hereof relating to Disqualified Lenders.
i.The Administrative Agent and the Lenders shall not be responsible or have any liability for, or have any duty to ascertain, inquire into, monitor or enforce, compliance with the provisions hereof relating to Disqualified Lenders, other than to deliver to the Borrower the relevant assignment documentation upon the request of the Borrower. Without limiting the generality of the foregoing, neither the Administrative Agent nor any Lender shall (x) be obligated to ascertain, monitor or inquire as to whether any other Lender or Participant or prospective Lender or Participant is a Disqualified Lender or (y) have any liability with respect to or arising out of any assignment or participation of Loans, or disclosure of confidential information, by any other Person to any Disqualified Lender.
SECTION 1.0be.Survival.  All covenants, agreements, representations and warranties made by the Loan Parties in the Loan Documents and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of the Loan Documents and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent, the Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated.  The provisions of Sections 2.14, 2.15, 2.16 and 9.03 and Article VIII shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the 
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expiration or termination of the Letters of Credit and the Commitments or the termination of this Agreement or any other Loan Document or any provision hereof or thereof.
SECTION 1.0bf.Counterparts; Integration; Effectiveness.  (a) This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement, the other Loan Documents and any separate letter agreements with respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 4.01, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
(39)Delivery of an executed counterpart of a signature page of (x) this Agreement, (y) any other Loan Document and/or (z) any document, amendment, approval, consent, information, notice (including, for the avoidance of doubt, any notice delivered pursuant to Section 9.01), certificate, request, statement, disclosure or authorization related to this Agreement, any other Loan Document and/or the transactions contemplated hereby and/or thereby (each an “Ancillary Document”) that is an Electronic Signature transmitted by telecopy, emailed pdf.  or any other electronic means that reproduces an image of an actual executed signature page shall be effective as delivery of a manually executed counterpart of this Agreement, such other Loan Document or such Ancillary Document, as applicable.  The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to this Agreement, any other Loan Document and/or any Ancillary Document shall be deemed to include Electronic Signatures, deliveries or the keeping of records in any electronic form (including deliveries by telecopy, emailed pdf.  or any other electronic means that reproduces an image of an actual executed signature page), each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be; provided that nothing herein shall require the Administrative Agent to accept Electronic Signatures in any form or format without its prior written consent and pursuant to procedures approved by it; provided, further, without limiting the foregoing, (i) to the extent the Administrative Agent has agreed to accept any Electronic Signature, the Administrative Agent and each of the Lenders shall be entitled to rely on such Electronic Signature purportedly given by or on behalf of the Borrower or any other Loan Party without further verification thereof and without any obligation to review the appearance or form of any such Electronic Signature and (ii) upon the request of the Administrative Agent or any Lender, any Electronic Signature shall be promptly followed by a manually executed counterpart.  Without limiting the generality of the foregoing, the Borrower and each Loan Party hereby (A) agrees that, for all purposes, including without limitation, in connection with any workout, restructuring, enforcement of remedies, bankruptcy proceedings or litigation among the Administrative Agent, the Lenders, the Borrower and the Loan Parties, Electronic Signatures transmitted by telecopy, emailed pdf.  or any other electronic means that reproduces an image of an actual executed signature page and/or any electronic images of this Agreement,  any other Loan Document and/or any Ancillary Document shall have the same legal effect, validity and enforceability as any paper original, (B) the Administrative Agent and each of the Lenders may, at its option, create one or more copies of this Agreement, any other Loan Document and/or any Ancillary Document in the form of an imaged electronic record in any format, which shall be deemed created in the ordinary course of such Person’s business, and destroy the original paper document (and all such electronic records shall be considered an original for all purposes and shall have the same legal effect, validity and enforceability as a paper record), (C) waives any argument, defense or right to contest the legal effect, validity or enforceability of this Agreement, any other Loan Document and/or any 
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Ancillary Document based solely on the lack of paper original copies of this Agreement, such other Loan Document and/or such Ancillary Document, respectively, including with respect to any signature pages thereto and (D) waives any claim against any Lender-Related Person for any Liabilities arising solely from the Administrative Agent’s and/or any Lender’s reliance on or use of Electronic Signatures and/or transmissions by telecopy, emailed pdf.  or any other electronic means that reproduces an image of an actual executed signature page, including any Liabilities arising as a result of the failure of the Borrower and/or any Loan Party to use any available security measures in connection with the execution, delivery or transmission of any Electronic Signature.
SECTION 1.0bg.Severability.  Any provision of any Loan Document held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.
SECTION 1.0bh.Right of Setoff.  If an Event of Default shall have occurred and be continuing, each Lender, each Issuing Bank, and each of their respective Affiliates is hereby authorized at any time and from time to time, upon the receipt of the written consent of the Administrative Agent, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held, and other obligations at any time owing, by such Lender, such Issuing Bank or any such Affiliate, to or for the credit or the account of any Loan Party against any and all of the Obligations owing to such Lender or such Issuing Bank or their respective Affiliates, irrespective of whether or not such Lender, Issuing Bank or Affiliate shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Loan Parties may be contingent or unmatured or are owed to a branch office or Affiliate of such Lender or such Issuing Bank different from the branch office or Affiliate holding such deposit or obligated on such indebtedness; provided that in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 2.20 and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent, the Issuing Banks, and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Secured Obligations owing to such Defaulting Lender as to which it exercised such right of setoff.  The applicable Lender, the Issuing Bank or such Affiliate shall notify the Borrower and the Administrative Agent of such setoff or application; provided that the failure to give such notice shall not affect the validity of such setoff or application under this Section 9.08.  The rights of each Lender, each Issuing Bank and their respective Affiliates under this Section 9.08 are in addition to other rights and remedies (including other rights of setoff) that such Lender, such Issuing Bank or their respective Affiliates may have.
SECTION 1.0bi.Governing Law; Jurisdiction; Consent to Service of Process.  (a) The Loan Documents (other than those containing a contrary express choice of law provision) shall be governed by and construed in accordance with the laws of the State of New York, but giving effect to federal laws applicable to national banks.
(5)EACH LENDER, EACH LOAN PARTY AND THE ADMINISTRATIVE AGENT HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF ANY FEDERAL OR STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENT (EXCLUDING THE ENFORCEMENT OF THE SECURITY DOCUMENTS TO THE 
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EXTENT SUCH SECURITY DOCUMENTS EXPRESSLY PROVIDE OTHERWISE), OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF SUCH PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT.  EACH OF SUCH PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. 
(6)Each Loan Party hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in paragraph (b) of this Section 9.09.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.
(7)Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 9.01.  Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process in any other manner permitted by law.
j.WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE OR OTHER AGENT (INCLUDING ANY ATTORNEY) OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.10.
k.Headings.  Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.
l.Confidentiality.  Each of the Administrative Agent, the Issuing Bank and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Related Parties, including accountants, legal counsel and other advisors on a “need-to-know” basis (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential and the Administrative Agent, the Issuing Bank and the Lenders shall be responsible for the compliance with this paragraph by its Related Parties), (b) to the extent requested by any Governmental Authority (including any self-regulatory authority, such as the National Association of Insurance Commissioners) (in which case, to the extent permitted by law, the party in receipt of such request shall promptly inform the Borrower in advance other than in connection with any examination of the financial condition or other routine examination of such Lender), (c) as may be compelled in a judicial or administrative proceeding or to the extent required by any Requirement of Law or by any subpoena or similar legal process 
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(in which case, to the extent permitted by applicable law, the party in receipt of such request shall promptly inform the Borrower in advance), (d) to any other party to this Agreement, (e) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section 9.12, to (i) any Eligible Assignee of or Participant in, or any prospective Eligible Assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower, its Subsidiaries and their obligations, (g) with the prior written consent of the Borrower or (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section 9.12 or (ii) becomes available to the Administrative Agent, the Issuing Bank or any Lender on a non-confidential basis from a source other than the Borrower or any Person who is known to the Administrative Agent, the Issuing Bank or any Lender to have confidentiality obligations to the Borrower.  For the purposes of this Section 9.12, “Information” means all information received from any Loan Party with respect to the Borrower or any of its Subsidiaries or any of its or their business, other than any such information that is available to the Administrative Agent, the Issuing Bank or any Lender on a non-confidential basis prior to disclosure by the Borrower or any of its Subsidiaries and other than information pertaining to this Agreement provided by arrangers to data service providers, including league table providers, that serve the lending industry  Any Person required to maintain the confidentiality of Information as provided in this Section 9.12 shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.  EACH LENDER ACKNOWLEDGES THAT INFORMATION AS DEFINED IN THIS SECTION 9.12 FURNISHED TO IT PURSUANT TO THIS AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION CONCERNING THE LOAN PARTIES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.  ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE BORROWER OR THE ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE LOAN PARTIES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES.  ACCORDINGLY, EACH LENDER REPRESENTS TO THE BORROWER AND THE ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW.  Notwithstanding anything in this Section 9.12 to the contrary, (x) to the extent any legal counsel, independent auditors, professionals and other experts or agents of a Lender receives any Information, such legal counsel, independent auditors, professionals and other experts or agents shall sign an undertaking that they will treat such Information as confidential (subject to certain customary exceptions) unless there are established and enforceable codes of professional conduct governing the confidential treatment of such Information so received and (y) in no event shall any disclosure of any Information be made to a Person that is a Disqualified Lender at the time of disclosure.
m.Several Obligations; Nonreliance; Violation of Law.  The respective obligations of the Lenders hereunder are several and not joint and the failure of any Lender to make any Loan or perform any of its obligations hereunder shall not relieve any other Lender from any of its obligations hereunder.  Each Lender hereby represents that it is not relying on or looking to 
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any margin stock (as defined in Regulation U of the Federal Reserve Board) for the repayment of the Borrowings provided for herein.  Anything contained in this Agreement to the contrary notwithstanding, neither the Issuing Bank nor any Lender shall be obligated to extend credit to the Borrower in violation of any Requirement of Law.
n.USA PATRIOT Act.  Each Lender that is subject to the requirements of the USA PATRIOT Act hereby notifies each Loan Party that pursuant to the requirements of the USA PATRIOT Act, it is required to obtain, verify and record information that identifies such Loan Party, which information includes the name and address of such Loan Party and other information that will allow such Lender to identify such Loan Party in accordance with the USA PATRIOT Act.
o.Interest Rate Limitation.  Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law (collectively the “Interest Rate Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder, together with all Interest Rate Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Interest Rate Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section 9.15 shall be cumulated and the interest and Interest Rate Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the NYFRB Rate to the date of repayment, shall have been received by such Lender.
p.Disclosure.  The Borrower and each Lender hereby acknowledges and agrees that the Administrative Agent and/or its Affiliates from time to time may hold investments in, make other loans to or have other relationships with any of the Borrower, its Subsidiaries and their respective Affiliates.
q.Amendment and Restatement.  This Agreement amends and restates the Existing Credit Agreement in its entirety as of the date hereof.  As of the Effective Date, (a) all Revolving Loans (as such terms are defined in the Existing Credit Agreement) outstanding under the Existing Credit Agreement shall constitute Revolving Loans outstanding under, and subject to the terms of, this Agreement, (b) all existing letters of credit issued under the Existing Credit Agreement shall constitute Letters of Credit issued and in existence under, and subject to the terms of, this Agreement, and (c) all other amounts owing under the Existing Credit Agreement shall be deemed outstanding hereunder.  Accordingly, the Loans, Letters of Credit and other obligations pursuant hereto are issued in exchange and replacement for the loans, letters of credit and other obligations under the Existing Credit Agreement, shall not be a novation or satisfaction thereof and shall be entitled to and secured by the same collateral with the same priority, as in effect prior to the date hereof.
r.Acknowledgement and Consent to Bail-In of Affected Financial Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Affected Financial Institution arising under any Loan Document may be subject to the write-down and conversion powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:
(1)the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an Affected Financial Institution; and
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(2)the effects of any Bail-In Action on any such liability, including, if applicable:
a.a reduction in full or in part or cancellation of any such liability;
b.a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or
c.the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of the applicable Resolution Authority.
SECTION 1.b.Acknowledgement Regarding Any Supported QFCs.  (a) To the extent that the Loan Documents provide support, through a guarantee or otherwise, for Swap Agreements or any other agreement or instrument that is a QFC (such support “QFC Credit Support” and each such QFC a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States).
(3)In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States.  In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States.  Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.
Each Lender hereby appoints each other Lender as its agent for the purpose of perfecting Liens, for the benefit of the Administrative Agent and the Secured Parties, in assets which, in accordance with Article 9 of the UCC or any other applicable law can be perfected only by possession or control.  Should any Lender (other than the Administrative Agent) obtain possession or control of any such Collateral, such Lender shall notify the Administrative Agent thereof, and, promptly upon the Administrative Agent’s request therefor shall deliver such Collateral to the Administrative Agent or otherwise deal with such Collateral in accordance with the Administrative Agent’s instructions.
k.No Fiduciary Duty, etc.
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(4)The Borrower acknowledges and agrees, and acknowledges its Subsidiaries’ understanding, that no Credit Party will have any obligations under the Loan Documents except those obligations expressly set forth herein and in the other Loan Documents and each Credit Party is acting solely in the capacity of an arm’s length contractual counterparty to the Borrower with respect to the Loan Documents and the transactions contemplated herein and therein and not as a financial advisor or a fiduciary to, or an agent of, the Borrower or any other person.  The Borrower agrees that it will not assert any claim against any Credit Party based on an alleged breach of fiduciary duty by such Credit Party in connection with this Agreement and the transactions contemplated hereby.  Additionally, the Borrower acknowledges and agrees that no Credit Party is advising the Borrower as to any legal, tax, investment, accounting, regulatory or any other matters in any jurisdiction.  The Borrower shall consult with its own advisors concerning such matters and shall be responsible for making its own independent investigation and appraisal of the transactions contemplated herein or in the other Loan Documents, and the Credit Parties shall have no responsibility or liability to the Borrower with respect thereto.
(5)The Borrower further acknowledges and agrees, and acknowledges its Subsidiaries’ understanding, that each Credit Party, together with its Affiliates, is a full service securities or banking firm engaged in securities trading and brokerage activities as well as providing investment banking and other financial services.  In the ordinary course of business, any Credit Party may provide investment banking and other financial services to, and/or acquire, hold or sell, for its own accounts and the accounts of customers, equity, debt and other securities and financial instruments (including bank loans and other obligations) of, the Borrower and other companies with which the Borrower may have commercial or other relationships.  With respect to any securities and/or financial instruments so held by any Credit Party or any of its customers, all rights in respect of such securities and financial instruments, including any voting rights, will be exercised by the holder of the rights, in its sole discretion.
(6)In addition, the Borrower acknowledges and agrees, and acknowledges its Subsidiaries’ understanding, that each Credit Party and its affiliates may be providing debt financing, equity capital or other services (including financial advisory services) to other companies in respect of which the Borrower may have conflicting interests regarding the transactions described herein and otherwise.  No Credit Party will use confidential information obtained from the Borrower by virtue of the transactions contemplated by the Loan Documents or its other relationships with the Borrower in connection with the performance by such Credit Party of services for other companies, and no Credit Party will furnish any such information to other companies.  The Borrower also acknowledges that no Credit Party has any obligation to use in connection with the transactions contemplated by the Loan Documents, or to furnish to the Borrower, confidential information obtained from other companies.
s.Marketing Consent.  The Borrower hereby authorizes JPMCB and its affiliates (collectively, the “JPMCB Parties”), at their respective sole expense, and without any prior approval by the Borrower, to include the Borrower’s name and logo in advertising, marketing, tombstones, case studies and training materials, and to give such other publicity to this Agreement as JPMCB Parties may from time to time determine in their sole discretion; provided that no JPMCB Party shall use any information that is not publicly available in any such advertising, marketing, tombstones, case studies and training materials or other publicity. The foregoing authorization shall remain in effect unless (and solely until) the Borrower notifies JPMCB in writing that such authorization is revoked.
t.No Conflict.  Notwithstanding anything to the contrary contained in this Agreement or any other Loan Document, in the event of a conflict between the terms and conditions of (a) this Agreement and any other Loan Document (other than a Subordination Agreement), the terms and conditions of this Agreement shall control and (b) this Agreement and 
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a Subordination Agreement, the terms and conditions of the Subordination Agreement shall control.
[Signature Pages Follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.
						
		THE HAGERTY GROUP, LLC
By:      
Name:  
Title:  

		JPMORGAN CHASE BANK, N.A., individually and as Administrative Agent
By      
Name:  Nathan Wright
Title:  Authorized Officer

		CITIZENS BANK, N.A.
By      
Name:  
Title:  

		KEY BANK, NATIONAL ASSOCIATION
By      
Name:  
Title:  

[Signature Page to Amended and Restated Credit Agreement]

Commitment Schedule
Commitments
						
	Lender	Commitment as of the Fourth Amendment Effective Date
	JPMorgan Chase Bank, N.A.	$90,000,000
	Citizens Bank, N.A.	$75,000,000
	KeyBank National Association	$65,000,000
	Total:	$230,000,000

Commitment Schedule 

Schedule 3.05 - Subsidiaries and Joint Ventures
Domestic Subsidiaries executing Subsidiary Guaranties as of the Third Amendment Effective Date:
1)    Hagerty Insurance Agency, LLC
2)    Hagerty Management, LLC
3)    Hagerty Drivers Club, LLC f/k/a HagertyPlus, LLC
4)    Hagerty Asset Management, LLC
5)    Hagerty Classic Marine Insurance Agency, LLC
6)    Hagerty Media Properties, LLC
7)    Hagerty Canada, LLC
8)    Hagerty DriveShare LLC
9)    Hagerty Motorsports, LLC
10)    Hagerty Classic Analytics, LLC
11)    Hagerty Drivers Club Canada, LLC
12)    Historic Vehicle Association, LLC
13)    Historic Vehicle Association Canada, LLC
14)    Hagerty Wellness Center, LLC
15)    Cavallino Cafe, LLC
16)    Hagerty Ventures, LLC
17)    Speed Digital, LLC 
18)     Hagerty RADwood, Inc. 
19)     Broad Arrow Group, Inc. 
20)     Broad Arrow Licenses LLC 
21)     Broad Arrow Auctions LLC 
22)     Broad Arrow Capital LLC 
23)     Broad Arrow Private Sales LLC 
24)    Hagerty Events, LLC

Immaterial Subsidiaries not executing Subsidiary Guaranties as of the Fourth Amendment Effective Date:
1)    Hagerty Financial Services, LLC
2)    Hagerty Air, LLC
3)    Hagerty Insurance Holdings Inc.
4)    Member Hubs Hospitality LLC
5)    Member Hubs Miami, LLC
6)    Hagerty Garage and Social Services, LLC
7)    Member Hubs Seattle, LLC
8)     Member Hubs Palm Beach, LLC
9)    Member Hubs Culver City, LLC
10)    Member Hubs Haskell, LLC

Permitted Joint-Ventures as of the Fourth Amendment Effective Date:
Member Hubs Holdings, LLC 
Foreign Subsidiaries as of the Fourth Amendment Effective Date:
1)    Hagerty International Holdings Limited
2)    Hagerty Reinsurance Limited
3)    Hagerty International Limited
Schedule 3.05 - 1

4)    Classic Car Analytics GmbH
5)    Hagerty Enthusiast Limited
6)    Member Hubs Canada ULC
7)    1000022443 Ontario Inc.
8)     Broad Arrow Group UK Limited 
9)    Broad Arrow Capital Limited
10)    Broad Arrow Capital Europe Limited 
Schedule 3.05 - 2

Schedule 3.06 - Disclosed Matters
None.
Schedule 3.06 - 1

Schedule 3.17 - Subordinated Debt Documents

None.
Schedule 3.17 - 1

Schedule 6.01 - Existing Indebtedness
Indebtedness to Third Parties:
1.Master Installment Payment Agreement, dated as of December 19, 2016, by and between Hagerty Management, LLC and De Lage Laden Financial Services, Inc., together with Cross Corporate Guaranty made by Hagerty Insurance Agency, LLC in favor of De Lage Financial Services, Inc.
2.Asset Purchase Agreement, executed as of June 23, 2021, by and between Hagerty Events, LLC and McCall Events, Inc., together with Bill of Sale made and entered into as of August 12, 2021 by and between Hagerty Events, LLC and McCall Events Inc.
3.Asset Purchase Agreement, dated as of March 21, 2019, by and among Hagerty Motorsports, LLC, Pukka Software, Brian Ghidinelli, and Jennifer Ghidinelli, as amended by Amendment No. 1 to the Asset Purchase Agreement, made and entered into effective February 25, 2020, by and among Hagerty Motorsports, LLC, Pukka Software, Brian Ghidinelli, and Jennifer Ghidinelli.
4.To the extent constituting a Conversion Bonus thereunder, payments under that certain Business Transition Agreement, dated as of July 8, 2019, made by and between Hagerty Insurance Agency, LLC and Infinity Insurance Company.
5.Personal Lines Agency Agreement, effective January 1, 2013, by and among Hagerty Insurance Agency, LLC, Hagerty Classic Marine Insurance Agency, LLC and Essentia Insurance Company, as amended by Amendment No. 1, effective January 1, 2013, Amendment No. 1 to Underwriting Guidelines, dated January 1, 2013, Amendment No. 2 Indiana Special Amendment, dated March 14, 2017, Amendment No. 3 Pennsylvania Special Amendment, dated May 4, 2017, Amendment No. 4, dated May 4, 2017, Amendment No. 5, dated August 1, 2018, Amendment No. 6, effective January 1, 2019 and Amendment No. 7, effective July 1, 2020. 
6.Asset Purchase Agreement dated March 1, 2020 between Wayfarer Insurance Brokers Limited and Hagerty Canada, LLC.
7.Membership Interest Purchase Agreement dated as of April 12, 2022 by and among The Hagerty Group, LLC, RK Collection LLC and Mr. Robert Kauffman. 

8.Broad Arrow Group, Inc. is the borrower under a credit card with Capital One, with a current balance of $121,769.83 as of the Fourth Amendment Effective Date. 

Intercompany Indebtedness:
1.Indebtedness of Hagerty International Limited in favor of Hagerty International Holdings Limited in an outstanding principal amount of £702,714.14 as of the Fourth Amendment Effective Date.
2.Indebtedness of Hagerty International Limited in favor of Hagerty Management, LLC in an outstanding principal amount of £6,710,148.78 as of the Fourth Amendment Effective Date.  This indebtedness amount has increased in the amount of £954,201.14 since October 27, 2021. 
Schedule 6.01 - 1

3.Indebtedness of Hagerty International Limited in favor of Hagerty Insurance Agency, LLC in an outstanding principal amount of £226,864.30 as of the Fourth Amendment Effective Date.
4.Indebtedness of Hagerty International Limited in favor of The Hagerty Group, LLC in an outstanding principal amount of £614,595.00 as of the Fourth Amendment Effective Date.
5.Indebtedness of Hagerty International Holdings Limited in favor of Hagerty Insurance Agency, LLC in an outstanding principal amount of £125,800.00 as of the Fourth Amendment Effective Date.
6.Indebtedness of Hagerty International Holdings Limited in favor of The Hagerty Group, LLC in an outstanding principal amount of £1,058,382.00 as of the Fourth Amendment Effective Date.
7.Multiple Advance Promissory Note, dated as of July 12, 2022, made by Broad Arrow Group, Inc. in favor of The Hagerty Group, LLC in the original principal amount of $5,000,000.00. 
8.Promissory Note No. 2, dated as of August 1, 2022, made by Broad Arrow Group, Inc. in favor of The Hagerty Group, in the original principal amount of $1,500,000.00. 
9.Promissory Note No. 3, dated as of August 1, 2022, made by Broad Arrow Group, Inc. in favor of The Hagerty Group, LLC, in the original principal amount of $500,000.00. 
10.Shareholder Loan Agreement, dated March 25, 2022, made by Broad Arrow Group UK Limited in favor of Broad Arrow Group Inc. (original principal amount of GBP 50,000).
11.Shareholder Loan Agreement, dated April 1, 2022, made by Broad Arrow Capital Europe Limited in favor of Broad Arrow Capital LLC (original principal amount of GBP 40,080.98).
12.Shareholder Loan Agreement, dated July 21, 2022, made by Broad Arrow Capital UK Limited and Broad Arrow Capital LLC (outstanding balance of GBP 499,240.80).
13.Loan Agreement, effective March 31, 2022, made by Broad Arrow Capital Europe Limited in favor of Broad Arrow Capital LLC (EUR 1,700,000).

14.Loan Agreement, effective July 15, 2022, made by Broad Arrow Capital Europe Limited in favor of Broad Arrow Capital LLC (USD 251,900).

15.Loan Agreement, effective March 31, 2022, made by Broad Arrow Capital UK Limited in favor of Broad Arrow Capital LLC (375,000 pounds).

16.Loan Agreement, dated July 15, 2022, made by Broad Arrow Capital UK Limited in favor of Broad Arrow Capital LLC (625,000 pounds). 

17.Loan Agreement, dated April 4, 2022, made by Broad Arrow Capital UK Limited in favor of Broad Arrow Capital LLC (original principal amount of 1,750,000).
Schedule 6.01 - 2

18.Loan Agreement, undated, made by Broad Arrow Capital UK Limited in favor of Broad Arrow Capital LLC (100,000 pounds).

19.Loans from Broad Arrow Group, Inc. to Broad Arrow Capital LLC: 

Schedule 6.01 - 3

Schedule 6.02 - Existing Liens
												
	Debtor	Secured Party	Collateral	Financing Statement
	Hagerty Insurance Agency, LLC	De Lage Landen Financial Services, Inc.	The collateral described in Schedule A to Delaware Department of State Financing Statement No. 20167957960, together with all components, additions, upgrades, attachments, accessions, substitutions, replacements and proceeds of such collateral.	20167957960, filed in Delaware on December 22, 2016
	Hagerty Management, LLC	De Lage Landen Financial Services, Inc.	The collateral described in Schedule A to Delaware Department of State Financing Statement No. 20167957911, together with all components, additions, upgrades, attachments, accessions, substitutions, replacements and proceeds of such collateral.	20167957911, filed in Delaware on December 22, 2016

Schedule 6.02 - 1

Schedule 6.04 - Investments, Loans, Advances, Guarantees, and Acquisitions
Investments Consisting of and in Subsidiaries in Connection with Acquisitions prior to the Third Amendment Effective Date:
1.Investment in Align Technologies, Corp. by The Hagerty Group, LLC with Series A Preferred Stock existing as of the Fourth Amendment Effective Date. 

2.Acquisition of “MotorsportReg” from Pukka Software by Hagerty Motorsports, LLC on March 21, 2019. 

3.Acquisition of “California Mille” from Amici Americani della Mille Miglia by Hagerty Events, LLC on October 16, 2020. 

4.Acquisition of “Concours d’Elegance of Greenwich” from Wennerstrom Group LLC by Hagerty Events, LLC on August 30, 2019. 

5.Acquisition of “Concours d’Elegance of America” from Concours d’Elegance of America by Hagerty Events, LLC on March 19, 2021. 

6.Acquisition of “The Amelia Concours d’Elegance” from The Amelia Island Concours d’Elegance Foundation Inc. by Hagerty Events, LLC on June 17, 2021. 

7.Acquisition of “McCalls Motorworks Revival” from McCall Events, Inc. by Hagerty Events, LLC on August 12, 2021. 

8.Acquisition of “Infinity Insurance Company” from Infinity Insurance Company by Hagerty Insurance Agency, LLC on July 8, 2019. 

9.Acquisition of the stock of Classics & Exotics Inc. by The Hagerty Group, LLC on June 9, 2017. 

10.Hagerty International Holdings Limited subscribed to common voting stock in Hothouse Publishing Limited on October 19, 2020. 

11.Investment by The Hagerty Group, LLC in Griffin Gaming Partners II, L.P. fund. 

Intercompany Investments: 

1.Investment in Hagerty Insurance Holdings Inc. by The Hagerty Group, LLC existing as of the Fourth Amendment Effective Date.

2.Investment in Hagerty International Holdings Limited by The Hagerty Group, LLC existing as of the Fourth Amendment Effective Date. This investment was a change in Hagerty International Holdings Limited from The Hagerty Group, LLC and includes an additional investment in Hagerty Enthusiast Limited through Hagerty International Holdings Limited.

Investments in Permitted Joint Ventures:

1.Investment in Member Hubs Holdings LLC by Hagerty Ventures, LLC and HGS Hub Holdings LLC existing as of the Third Amendment Effective Date. 

Schedule 6.04 - 1

Schedule 6.04 - 2

Schedule 6.07 – Transactions with Affiliates
1.Employment Agreement, dated as of January 1, 2018, by and between The Hagerty Group, LLC and McKeel Hagerty (as amended by Compensation Amendment dated January 25, 2021). 
2.Third Amended and Restated Master Alliance Agreement, dated June 20, 2019, between The Hagerty Group, LLC and Markel Corporation.
3.Hagerty Reinsurance Limited Quota Share Reinsurance Agreement, effective January 1, 2017, by and between Evanston Insurance Company and Hagerty Reinsurance Limited, as amended by Addendum No. 1, effective January 1, 2017, Addendum No. 2, effective January 1, 2018, Addendum No. 3, effective January 1, 2019, and by Addendum No. 4, effective January 1, 2019. 
4.Claims Services and Management Agreement, dated as of January 1, 2013, by and between Markel Service, Incorporated and Hagerty Insurance Agency, LLC, as amended by Amendment No. 1, effective January 1, 2013, Amendment No. 2, effective January 1, 2013, Amendment No. 3, dated May 17, 2016, Amendment No. 4, effective August 1, 2018. 
5.Personal Lines Agency Agreement, effective January 1, 2013, by and among Hagerty Insurance Agency, LLC, Hagerty Classic Marine Insurance Agency, LLC and Essentia Insurance Company, as amended by Amendment No. 1, effective January 1, 2013, Amendment No. 1 to Underwriting Guidelines, dated January 1, 2013, Amendment No. 2 Indiana Special Amendment, dated March 14, 2017, Amendment No. 3 Pennsylvania Special Amendment, dated May 4, 2017, Amendment No. 4, dated May 4, 2017, Amendment No. 5, dated August 1, 2018, Amendment No. 6, effective January 1, 2019 and Amendment No. 7, effective July 1, 2020. 
6.Producer Agreement dated February 15, 2012, between Hagerty Insurance Agency, LLC and American Underwriting Managers Agency, Inc. (now Markel Service, Inc.). 
7.Profit Sharing Agreement, effective January 1, 2019, between Markel Service, Inc. and Hagerty Insurance Agency, LLC. 
8.Producer Agreement, effective as of September 1, 2011, by and between Markel Insurance Company, Markel American Insurance Company, Deerfield Insurance Company and Hagerty Insurance Agency, LLC. 
9.Agreements evidencing the indebtedness of Hagerty International Limited in favor of Hagerty International Holdings Limited existing as of the Fourth Amendment Effective Date.
10.Agreements evidencing the indebtedness of Hagerty International Limited in favor of Hagerty Management, LLC existing as of the Fourth Amendment Effective Date.
11.Agreements evidencing the indebtedness of Hagerty International Limited in favor of Hagerty Insurance Agency, LLC existing as of the Fourth Amendment Effective Date.
12.Agreements evidencing the indebtedness of Hagerty International Limited in favor of The Hagerty Group, LLC existing as of the Fourth Amendment Effective Date.
13.Agreements evidencing the indebtedness of Hagerty International Holdings Limited in favor of Hagerty Insurance Agency, LLC existing as of the Fourth Amendment Effective Date.
Schedule 6.07 - 1

14.Agreements evidencing the indebtedness of Hagerty International Holdings Limited in favor of The Hagerty Group, LLC existing as of the Fourth Amendment Effective Date.
Schedule 6.07 - 2

Schedule 6.08 - Restrictive Agreements
None.

    
Schedule 6.08 - 1

EXHIBIT A
ASSIGNMENT AND ASSUMPTION
This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”).  Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as amended, the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.
For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s rights and obligations in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below (including any letters of credit, guarantees, and swingline loans included in such facilities) and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as the “Assigned Interest”).  Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor.
Exhibit A-1

																		
	1.	Assignor:	______________________________
	2.	Assignee:	______________________________ [and is an Affiliate/Approved Fund of [identify Lender]]1

	3.	Borrower(s):	THE HAGERTY GROUP, LLC
	4.	Administrative Agent:	JPMORGAN CHASE BANK, N.A., as the administrative agent under the Credit Agreement
	5.	Credit Agreement:	The Amended and Restated Credit Agreement dated as of December 12, 2018 among THE HAGERTY GROUP, LLC, the Lenders party thereto, JPMORGAN CHASE BANK, N.A., as Administrative Agent
	6.	Assigned Interest:	
	Facility Assigned	Aggregate Amount of Commitment/Loans for all Lenders	Amount of Commitment/Loans Assigned	Percentage Assigned of Commitment/Loans2
	Commitment	$	$	%

Effective Date:  _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]
The Assignee agrees to deliver to the Administrative Agent a completed Administrative Questionnaire in which the Assignee designates one or more credit contacts to whom all syndicate-level information  (which may contain material non-public information about the Borrower and its Related Parties or their respective securities) will be made available and who may receive such information in accordance with the Assignee’s compliance procedures and applicable laws, including Federal and state securities laws.
THE ASSIGNEE REPRESENTS AND WARRANTS THAT IT IS NOT A DISQUALIFIED LENDER OR AN AFFILIATE OF A DISQUALIFIED LENDER AND OTHERWISE MEETS ALL THE REQUIREMENTS OF AN ASSIGNEE UNDER THE CREDIT AGREEMENT.
The terms set forth in this Assignment and Assumption are hereby agreed to:

1 Select as applicable.
2 Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.
Exhibit A-2

						
		ASSIGNOR
[NAME OF ASSIGNOR]
By:      
Title:  

		

ASSIGNEE
[NAME OF ASSIGNEE]
By:      
Title:  

	[Consented to and] Accepted:
JPMORGAN CHASE BANK, N.A., as Administrative Agent, Swingline Lender and Issuing Bank
By      
Title:  3
	
	[Consented to:]
THE HAGERTY GROUP, LLC
By      
Title:  4
	

3 To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement.
4 To be added only if the consent of the Borrower and/or other parties (e.g. Swingline Lender, Issuing Bank) is required by the terms of the Credit Agreement.
Exhibit A-3

ANNEX 1
STANDARD TERMS AND CONDITIONS FOR
ASSIGNMENT AND ASSUMPTION
1.Representations and Warranties.
1.aAssignor.  The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.
1.bAssignee.  The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it satisfies the requirements, if any, specified in the Credit Agreement that are required to be satisfied by it in order to acquire the Assigned Interest and become a Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, (v) it is not a Disqualified Lender or an Affiliate of a Disqualified Lender and satisfies all requirements of an assignee under the Credit Agreement and (vi) if it is a Foreign Lender, attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.
2.Payments.  From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date.
3.General Provisions.  This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns.  This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument.  Delivery of an executed counterpart of a signature page of this 
Annex 1-1

Assignment and Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption.  This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of New York.

Annex 1-2

EXHIBIT B
COMPLIANCE CERTIFICATE
To:    The Lenders party to the
    Credit Agreement described below

This Compliance Certificate (“Certificate”), for the period ended [_______ __], 20[__],  is furnished pursuant to that certain Amended and Restated Credit Agreement dated as of December 12, 2018 (as amended, restated, amended and restated, supplemented, modified, renewed or extended from time to time, the “Agreement”) among The Hagerty Group, LLC (the “Borrower”), the Lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent for the Lenders.  Unless otherwise defined herein, capitalized terms used in this Certificate have the meanings ascribed thereto in the Agreement.
THE UNDERSIGNED HEREBY CERTIFIES, ON BEHALF OF THE BORROWER AND NOT INDIVIDUALLY, THAT:
1.    I am the [_________________]5 of the Borrower and I am authorized to deliver this Certificate on behalf of the Borrower;
2.    I have reviewed the terms of the Agreement and I have made, or have caused to be made under my supervision, a detailed review of the compliance of the Borrower and its Subsidiaries with the Agreement during the accounting period covered by the attached financial statements (the “Relevant Period”);
3.    The attached financial statements of the Borrower and, as applicable, its Subsidiaries and/or Affiliates for the Relevant Period: (a) to the extent that the attached financial statements are the Borrower’s annual Fiscal Year-end financial statements, are reported on by Deloitte & Touche LLP, or other independent public accountants of recognized national standing (without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of such audit (other than a qualification, exception or explanation resulting solely from any upcoming maturity date of any Indebtedness occurring within one year from the time such opinion is delivered or actual or prospective anticipated defaults under any financial covenants under any such Indebtedness)) to the effect that such financial statements present fairly in all material respects the financial condition and results of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP and (b) to the extent that the attached financial statements are not the Borrower’s annual Fiscal Year-end financial statements, present fairly in all material respects the financial condition and results of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes;
4.    [Except as described in the disclosure below, the] [The] examinations described in paragraph 2 did not disclose, and I have no knowledge of, (a) the existence of any condition or event, which has not been previously disclosed or cured, which constitutes a Default under the Agreement or any other Loan Document during or at the end of the Relevant Period or as of the date of this Certificate or (b) any change in GAAP or in the application thereof that has occurred since the date of the annual financial statements delivered to the Administrative Agent in connection with the closing of the Agreement or subsequently delivered as required in the Agreement. [Described below are the 

5 To conform to Financial Officer.

exceptions referred to in this paragraph 4 listing, in detail, the (i) nature of the condition or event, the period during which it has existed and the action which the Borrower has taken, is taking, or proposes to take with respect to each such condition or event or (ii) change in the Accounting Method or the application thereof and the effect of such change on the attached financial statements]6;
5.    I hereby certify that, except as set forth below, no Loan Party has changed (i) its name, (ii) its chief executive office, (iii) its principal place of business, (iv) the type of entity it is or (v) its state of incorporation or organization except as set forth below:
[__________________________________________________________________________
__________________________________________________________________________];

6.    Schedule I attached hereto sets forth financial data and computations7 demonstrating the Borrower’s compliance with the financial covenants set forth in Section 6.13 of the Agreement.
The foregoing certifications, together with the computations set forth in Schedule I hereto and the financial statements delivered with this Certificate in support hereof, are made and delivered this [___] day of [__________, ____].
        

By:        
Name:        
Title:        

6 To be included if relevant.
7 Schedule I must include reasonably detailed calculation tables for all components of the financial covenant calculations.

Schedule I to Compliance Certificate
Compliance as of _________, ____ with
Section 6.13 of the Agreement

EXHIBIT C-1
[FORM OF]
U.S. TAX COMPLIANCE CERTIFICATE
(For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)
Reference is hereby made to the Amended and Restated Credit Agreement dated as of December 12, 2018 (as amended, restated, amended and restated, supplemented, modified, renewed or extended from time to time, the “Credit Agreement”), among The Hagerty Group, LLC (the “Borrower”), the Lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent for the Lenders.
Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any promissory note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.
The undersigned has furnished the Administrative Agent and the Borrower with a certificate of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent, and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate prior to the first payment to be made to the undersigned, or in either of the two calendar years preceding such payments.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.
[NAME OF LENDER]
By:      
Name:      
Title:      
Date: ________ __, 20[  ]

EXHIBIT C-2
[FORM OF]
U.S. TAX COMPLIANCE CERTIFICATE
(For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)
Reference is hereby made to the Amended and Restated Credit Agreement dated as of December 12, 2018 (as amended, restated, amended and restated, supplemented, modified, renewed or extended from time to time, the “Credit Agreement”), among The Hagerty Group, LLC (the “Borrower”), the Lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent for the Lenders.
Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.
The undersigned has furnished its participating Lender with a certificate of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender in writing, and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate prior to the first payment to be made to the undersigned, or in either of the two calendar years preceding such payments.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.
[NAME OF PARTICIPANT]
By:      
Name:      
Title:      
Date: [________ __], 20[  ]

EXHIBIT C-3
[FORM OF]
U.S. TAX COMPLIANCE CERTIFICATE
(For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)
Reference is hereby made to the Amended and Restated Credit Agreement dated as of December 12, 2018 (as amended, restated, amended and restated, supplemented, modified, renewed or extended from time to time, the “Credit Agreement”), among The Hagerty Group, LLC (the “Borrower”), the Lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent for the Lenders.
Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such participation, (iii) with respect such participation, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.
The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, or (ii) an IRS Form W-8IMY accompanied by a withholding statement together with an IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate prior to the first payment to be made to the undersigned, or in either of the two calendar years preceding such payments.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.
[NAME OF PARTICIPANT]
By:      
Name:      
Title:      
Date: [________ __], 20[__]

EXHIBIT C-4
[FORM OF]
U.S. TAX COMPLIANCE CERTIFICATE
(For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)
Reference is hereby made to the Amended and Restated Credit Agreement dated as of December 12, 2018 (as amended, restated, amended and restated, supplemented, modified, renewed or extended from time to time, the “Credit Agreement”), among The Hagerty Group, LLC (the “Borrower”), the Lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent for the Lenders.
Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any promissory note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such Loan(s) (as well as any promissory note(s) evidencing such Loan(s)), (iii) with respect to the extension of credit pursuant to this Credit Agreement or any other Loan Document, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.
The undersigned has furnished the Administrative Agent and the Borrower with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, or (ii) an IRS Form W-8IMY accompanied by a withholding statement together with an IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent, and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate prior to the first payment to be made to the undersigned, or in either of the two calendar years preceding such payments.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.
[NAME OF LENDER]
By:      
Name:      
Title:      
Date:  [________ __], 20[__]

4831-7741-1059 v26 [7-4344]

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