Document:

Exhibit

Execution Version

WAIVER TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT
This WAIVER TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT (this “Waiver”), is dated as of June 1, 2020, by and among Valaris plc, an English public limited company (the “Parent”), Pride International LLC, a Delaware limited liability company and indirect wholly-owned Subsidiary of the Parent (collectively, the “Borrowers”), the Guarantors, the Banks and Issuing Banks listed on the signature pages hereto (the “Required Banks”) (which in each case herein, constitute the “Majority Banks” under the Credit Agreement (as defined below)) and Citibank, N.A., as administrative agent (the “Administrative Agent”).
PRELIMINARY STATEMENTS:
WHEREAS, the Borrowers, the Banks, the Administrative Agent and the Issuing Banks are parties to that certain Fourth Amended and Restated Credit Agreement dated as of May 7, 2013 (as amended by the First Amendment dated as of September 30, 2014, the Second Amendment dated as of March 9, 2015, the Third Amendment dated as of July 1, 2016, the Extension Agreement dated as of October 4, 2016, the Fourth Amendment dated as of December 15, 2016, the Commitment Agreement and Fifth Amendment dated as of October 3, 2017 and effective as of October 6, 2017, and the Commitment Increase Agreement and Sixth Amendment to Fourth Amended and Restated Credit Agreement and as the same may be further amended, restated, increased and extended, the “Credit Agreement”). 
WHEREAS, the Borrowers have advised the Required Banks that the Parent and/or one or more of its Subsidiaries, as applicable, have failed or may fail to make all or any part of their required interest payments due on (i) June 1, 2020, with respect to the Parent’s 4.875% Senior Notes due 2022 (the “2022 Notes”) and 5.40% Senior Notes due 2042 (“2042 Notes”) and (ii) on June 15, 2020, with respect to the Parent’s 7.375% Senior Notes due 2025 (the “2025 Notes” and, together with the 2022 Notes and 2042 Notes, the “Notes”). Pursuant to the Credit Agreement, any of the Parent’s or one or more of its Subsidiaries’ failure to make such required interest payments in respect of the Notes results in the existence of a Default under the Credit Agreement and, after giving effect to the applicable grace period afforded under the Notes, results in an Event of Default pursuant to Section 7.01(e) of the Credit Agreement (such Defaults and Events of Default heretofore described, the “Specified Notes Defaults”).
WHEREAS, the Borrowers have requested that the Required Banks waive (a) the Specified Notes Defaults; (b) any misrepresentation that might arise under Section 4.11 of the Credit Agreement solely as a result of the failure of the Parent to pay interest when due in connection with the Specified Notes Defaults; and (c) any requirement to provide notice of the occurrences described in clauses (a) and (b) (clauses (a), (b) and (c), together, the “Specified Defaults”) and the Administrative Agent and the Required Banks have agreed to do so subject to the terms and conditions of this Waiver.
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 hereto agree as follows:
Section 1.    Defined Terms.  Unless otherwise specifically defined herein, each term used herein (including in the recitals above) that is defined in the Credit Agreement has the meaning assigned to such term in the Credit Agreement.

    

Section 2.        Waiver.  
Effective as of the Waiver Effective Date (as defined below), subject to the terms and conditions of this Waiver and in reliance upon the representations and warranties of the Loan Parties set forth in Section 4 below, the Required Banks hereby waive the Specified Defaults (provided, that the foregoing waiver shall only be effective as to any such Specified Defaults for so long as the applicable series of Notes with respect to such Specified Defaults has not been accelerated by the holders thereof in accordance with the terms thereof). This is a limited, one-time waiver and, except as expressly set forth herein, shall not be deemed to: (x) constitute a waiver of any other Default, Event of Default or any other breach of the Credit Agreement or any of the other Loan Documents, whether now existing or hereafter arising, (y) constitute a waiver of any right or remedy of any of the Administrative Agent, Banks or Issuing Banks under the Loan Documents which does not arise as a result of the Specified Defaults (all such rights and remedies being expressly reserved by the Administrative Agent, Banks and Issuing Banks) or (z) establish a custom or course of dealing or conduct between the Administrative Agent, Banks and Issuing Banks, on the one hand, and the Borrowers, the Guarantors or any other Loan Party on the other hand.  The foregoing waiver shall not be deemed to constitute a consent of any other act, omission or any breach of the Credit Agreement or any of the other Loan Documents.
Section 3.        Reaffirmation of Guaranty.  Each Guarantor hereby ratifies, confirms, acknowledges and agrees that its Obligations under the Guaranty to which it is a party are in full force and effect and that such Guarantor continues to unconditionally and irrevocably guarantee the full and punctual payment, when due, whether at stated maturity or earlier by acceleration or otherwise, all of the Obligations in accordance with the terms of such Guaranty and its execution and delivery of this Waiver does not indicate or establish an approval or consent requirement by such Guarantor under such Guaranty in connection with the execution and delivery of amendments, consents or waivers to the Credit Agreement, the Notes or any of the other Loan Documents.
Section 4.        Representations True; No Default. Each of the Loan Parties represents that:
(a)            this Waiver has been duly authorized, executed and delivered on its behalf, and the Credit Agreement and the other Loan Documents to which it is a party, constitute the legal, valid and binding obligations of such Loan Party, enforceable against such Loan Party in accordance with their terms, except as such enforceability may be limited by any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally and by general principles of equity;
(b)            after giving effect to this Waiver, the representations and warranties of such Loan Party contained in Article IV of the Credit Agreement and in the other Loan Documents to which it is a party are true and correct in all material respects on and as of the date hereof as though made on and as of the date hereof (other than (i) those representations and warranties that expressly relate to a specific earlier date, which representations and warranties were true and correct in all material respects as of such earlier date and (ii) those representations and warranties that are by their terms subject to a materiality qualifier, which representations and warranties are true and correct in all respects); and
(c)            after giving effect to this Waiver, no Default or Event of Default under the Credit Agreement has occurred and is continuing.
Section 5.        Signing.  The date that each of the conditions precedent set forth in this Section 5 is satisfied shall be the “Signing Date” as such term is used in this Waiver: 

    

(a)            the Administrative Agent (or its counsel) shall have received counterparts of this Waiver duly and validly executed and delivered by duly authorized officers of:
(i)        each Loan Party;
(ii)        the Administrative Agent; and
(iii)        the Required Banks;
(b)            after giving effect to this Waiver, the representations and warranties of such Loan Party contained in Article IV of the Credit Agreement and in the other Loan Documents to which it is a party shall be true and correct in all material respects on and as of the date hereof as though made on and as of the date hereof (other than (i) those representations and warranties that expressly relate to a specific earlier date, which representations and warranties shall be true and correct in all material respects as of such earlier date and (ii) those representations and warranties that are by their terms subject to a materiality qualifier, which representations and warranties shall be true and correct in all respects);
(c)            after giving effect to this Waiver, no Event of Default under the Credit Agreement shall have occurred and be continuing; and
(d)            the Borrowers shall have paid all reasonable and documented fees and out-of-pocket expenses of counsel and advisors for the Administrative Agent which are payable pursuant to Section 9.04 of the Credit Agreement, to the extent invoiced at least one Business Day prior to the Signing Date.
Section 6.        Effectiveness.  This Waiver shall become effective as of the first date (the “Waiver Effective Date”) upon which the Signing Date shall have occurred.
Section 7.        Miscellaneous Provisions.
(a)            From and after the execution, delivery, and effectiveness of this Waiver as set forth in Sections 5 and 6 above, the Credit Agreement shall continue in full force and effect.  Each Loan Party hereby agrees and acknowledges that the Administrative Agent, the Issuing Banks, and the Banks require and will require strict performance by such Loan Party of all of its respective obligations, agreements and covenants contained in the Credit Agreement, and the other Loan Documents to which it is a party (including any action or circumstance which is prohibited or limited during the existence of a Default or Event of Default), and no inaction or action by the Administrative Agent, any Issuing Bank, or any Bank regarding any Default or Event of Default is intended to be or shall be a waiver thereof (other than as set forth herein).  Each Loan Party hereby also agrees and acknowledges that no course of dealing and no delay in exercising any right, power, or remedy conferred to the Administrative Agent, any Issuing Bank, or any Bank in the Credit Agreement or in any other Loan Documents or now or hereafter existing at law, in equity, by statute, or otherwise shall operate as a waiver of (other than as set forth herein) or otherwise prejudice any such right, power, or remedy.
(b)            The Administrative Agent, the Issuing Banks, and the Banks hereby expressly reserve all of their rights, remedies, and claims under the Loan Documents.  Nothing in this Waiver shall constitute a waiver (other than as set forth herein) or relinquishment of (i) any Default or Event of Default under any of the Loan Documents, (ii) any of the agreements, terms or conditions contained in any of the Loan Documents, (iii) any rights or remedies of the Administrative Agent, any Issuing Bank, or any Bank 

    

with respect to the Loan Documents, or (iv) the rights of the Administrative Agent, any Issuing Bank, or any Bank to collect the full amounts owing to them under the Loan Documents.
(c)        The Credit Agreement and this Waiver shall be read and construed as one and the same instrument; provided that no provision of this Waiver may be waived or modified without the consent of all the parties hereto.
(d)        Any reference in any of the Loan Documents to the Credit Agreement shall be a reference to the Credit Agreement as modified by this Waiver.
(e)        This Waiver is a Loan Document for purposes of the provisions of the other Loan Documents. Without limiting the foregoing, any breach of the representations, warranties, and covenants under this Waiver may be a Default or an Event of Default under the Loan Documents.
(f)        This Waiver shall be construed in accordance with and governed by the laws of the State of New York.
(g)        This Waiver may be signed in any number of counterparts and by different parties in separate counterparts and may be in original or facsimile form, each of which shall be deemed an original but all of which together constitute one and the same instrument.  The words “executed,” “execution,” “signed,” “signature” and words of like import in this Waiver shall be deemed to include electronic signatures or the keeping of electronic records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.
(h)        The headings herein shall be accorded no significant in interpreting this Waiver.
Section 8.        Binding Effect.  This Waiver shall be binding upon and inure to the benefit of the Loan Parties, the Banks, the Issuing Banks and the Administrative Agent and their respective successors and assigns, except that the Loan Parties shall not have the right to assign their rights hereunder or any interest herein.
[Signature Pages Follow.]

    

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to be duly executed by their respective officers thereunto duly authorized, as of the date first above written.
BORROWERS:

                                                                 	
		
	 
	VALARIS PLC

	 
	 

	By:
	/s/ Darin Gibbins

	 
	Name : Darin Gibbins

	 
	Title : An Authorized Signatory

	 
	 

	 
	PRIDE INTERNATIONAL LLC

	 
	 

	 
	/s/ Derek Sample

	 
	Name : Derek Sample

	 
	Title : An Authorized Signatory

GUARANTORS:

                                                                 	
		
	 
	ENSCO JERSEY FINANCE LIMITED

	 
	 

	By:
	/s/ Jonathan P. Cross

	 
	Name : Jonathan P. Cross

	 
	Title : An Authorized Signatory

                                                                 	
		
	 
	ALPHA ACHIEVER COMPANY

	 
	ENSCO OCEAN 2 COMPANY

	 
	ENSCO OFFSHORE INTERNATIONAL COMPANY

	 
	ENSCO OVERSEAS LIMITED

	 
	ENSCO MANAGEMENT CORP.

	 
	PRIDE GLOBAL II LTD.

	 
	 

	By:
	/s/ Derek Sangster

	 
	Name : Derek A. Sangster

	 
	Title : An Authorized Signatory

Signature Page to Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

                                                                  	
		
	 
	ENSCO GLOBAL GMBH

	 
	ENSCO INTERCONTINENTAL GMBH

	 
	ENSCO WORLDWIDE GMBH

	 
	 

	By:
	/s/ Derek Sangster

	 
	Name : Derek A. Sangster

	 
	Title : An Authorized Signatory

Signature Page to Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

                                                 	
		
	 
	ROWAN OFFSHORE LUXEMBOURG S.A.R.L. 
ROWAN RIGS S.A.R.L.

	 
	 

	By:
	/s/ Derek Sangster

	 
	Name : Derek A. Sangster

	 
	Title : An Authorized Signatory

ADMINISTRATIVE AGENT:

                                               	
		
	 
	CITIBANK, N.A., as Administrative Agent

	 
	 

	By:
	/s/ Derrick Lenz

	 
	Name : Derrick Lenz

	 
	Title : Vice President

REQUIRED BANKS:

                                             	
		
	 
	CITIBANK, N.A., as a Bank and an Issuing Bank

	 
	 

	By:
	/s/ Derrick Lenz

	 
	Name : Derrick Lenz

	 
	Title : Vice President

Signature Page to Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

                                                               	
		
	 
	Bank of America, N.A., as a Bank

	 
	 

	By:
	/s/ C. Mark Hedrick

	 
	Name : C. Mark Hedrick

	 
	Title : Managing Director

Signature Page to Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

                                                              	
		
	 
	BARCLAYS BANK, N.A., as a Bank

	 
	 

	By:
	/s/ Sydney G. Dennis

	 
	Name : Sydney G. Dennis

	 
	Title : Director

Signature Page to Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

                                                       	
		
	 
	BNB PARIBAS, as a Bank

	 
	 

	By:
	/s/ Sriram Chandrasekaran

	 
	Name : Sriram Chandrasekaran

	 
	Title : Director

	 
	 

	By:
	/s/ Amy Kirschner

	 
	Name: Amy Kirschner

	 
	Title : Managing Director

	 
	 

Signature Page to Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

                                                        	
		
	 
	CITICORP NORTH AMERICA, INC., as a Bank

	 
	 

	By:
	/s/ Allister Chan

	 
	Name : Allister Chan

	 
	Title : Vice President

Signature Page to Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

                                               	
		
	 
	DEUTSCHE BANK AG NEW YORK BRANCH, as a Bank and an Issuing Bank

	 
	 

	By:
	/s/ Annie Chung

	 
	Name : Annie Chung

	 
	Title : Director

	 
	 

	By:
	/s/ Ming K. Chu

	 
	Name: Ming K. Chu

	 
	Title : Director

	 
	 

Signature Page to Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

                                                    	
		
	 
	DNB Capital LLC, as a Bank

	 
	 

	By:
	/s/ Samantha Stone

	 
	Name : Samantha Stone

	 
	Title : Vice President

	 
	 

	By:
	/s/ Mita Zalavadia

	 
	Name: Mita Zalavadia

	 
	Title : Assistant Vice President

	 
	 

                                                   	
		
	 
	DNB Bank ASA, New York Branch, as an Issuing Bank

	 
	 

	By:
	/s/ Samantha Stone

	 
	Name : Samantha Stone

	 
	Title : Vice President

	 
	 

	By:
	/s/ Mita Zalavadia

	 
	Name: Mita Zalavadia

	 
	Title : Assistant Vice President

	 
	 

Signature Page to Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

                                                         	
		
	 
	HSBC Bank USA, NA, as a Bank and an Issuing Bank

	 
	 

	By:
	/s/ Temesgen Haile

	 
	Name : Temesgen Haile

	 
	Title : Vice President

  

Signature Page to Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

        
	
		
	 
	Morgan Stanley Senior Funding, Inc., as a Bank

	 
	 

	By:
	/s/ Kevin J. Newman

	 
	Name : Kevin Newman

	 
	Title : Vice President

        

Signature Page to Waiver to Fourth Amended and Restated Credit Agreement (Valaris)ex_188500.htm

Exhibit 10.1

 

 

May 31, 2020

 

Michael Bauer

[Address]

 

RE:     Amended and Restated Retention Bonus Letter Agreement

 

Dear Mike:

 

As mutually agreed by you and Libbey Inc. (the “Company” or “we,” and together with its subsidiaries, collectively “Libbey”) this letter agreement amends and restates our prior retention bonus letter agreement, dated May 19, 2020, pursuant to which Libbey offered and paid to you on May 22, 2020 a retention bonus in the gross amount of $900,000 (the “Retention Bonus”) (less required withholdings) pursuant to which you agree to add additional conditions on your ability to earn and retain the Retention Bonus.

 

You agree that you will not earn and you will repay the Retention Bonus (or a portion thereof) to the Company in full if you resign without Good Reason (as defined below) or are terminated by a Libbey entity for Cause as follows:

 

	 	
			(i)

				
			if such resignation or termination occurs on or prior to July 3, 2020, then you will repay 100% of the Retention Bonus, and

			

 

	 	
			(ii)

				
			if such resignation or termination occurs after July 3, 2020 but prior to the earlier of (x) October 2, 2020, and (y) the effective date of a Plan of Reorganization (as will be defined in the Debtor-In-Possession Credit Agreement, to be entered into by and among Libbey Glass Inc., Libbey Europe B.V., the Company, JP Morgan Chase Bank, N.A, as Administrative Agent and J.P. Morgan Securities LLC as Lead Arranger, and the other Loan Parties and Lender Parties thereto) (the “DIP Agreement”), then you will repay 50% of the Retention Bonus.

			

 

Additionally, you agree that you will forfeit, repay and will not earn a portion of the Retention Bonus as follows:

 

(i) you will forfeit, repay and not earn 50% of the Retention Bonus if Libbey does not achieve at least Operating Cash Flow (calculated consistent with that line item as set forth on the Initial Approved Budget, as will be defined in the DIP Agreement) (“Operating Cash Flow”) of $(21,154,078) between May 30, 2020 and July 3, 2020(the “First Testing Date”), and

 

 

 

 

 

 

May 31, 2020

Page 2

 

(ii) you will forfeit, repay and not earn 50% of the Retention Bonus if, between May 30, 2020 and the earlier of (x) October 2, 2020, and (y) the effective date of a Plan of Reorganization (the “Second Testing Date”), Libbey does not achieve at least the threshold amount of Operating Cash Flow as shown in the following schedule:

 

	
			Week Ending

				 	
			Cumulative 

			Operating 

			Cash Flow

				 	 	
			20% Cushion

				 	 	
			Threshold for 

			Retention Agreement

				 
	
			6/5/2020

				 	 	$	(3,123,122	)	 	$	(624,624	)	 	$	(3,747,747	)
	
			6/12/2020

				 	 	$	(7,509,705	)	 	$	(1,501,941	)	 	$	(9,011,646	)
	
			6/19/2020

				 	 	$	(10,083,153	)	 	$	(2,016,631	)	 	$	(12,099,783	)
	
			6/26/2020

				 	 	$	(13,381,559	)	 	$	(2,676,312	)	 	$	(16,057,871	)
	
			7/3/2020

				 	 	$	(17,628,398	)	 	$	(3,525,680	)	 	$	(21,154,078	)
	
			7/10/2020

				 	 	$	(19,273,075	)	 	$	(3,854,615	)	 	$	(23,127,690	)
	
			7/17/2020

				 	 	$	(22,459,117	)	 	$	(4,491,823	)	 	$	(26,950,940	)
	
			7/24/2020

				 	 	$	(24,125,964	)	 	$	(4,825,193	)	 	$	(28,951,157	)
	
			7/31/2020

				 	 	$	(26,936,968	)	 	$	(5,387,394	)	 	$	(32,324,361	)
	
			8/7/2020

				 	 	$	(28,864,697	)	 	$	(5,722,939	)	 	$	(34,637,637	)
	
			8/14/2020

				 	 	$	(32,126,473	)	 	$	(6,425,295	)	 	$	(38,551,767	)
	
			8/21/2020

				 	 	$	(32,823,744	)	 	$	(6,564,749	)	 	$	(39,388,493	)
	
			8/28/2020

				 	 	$	(34,632,571	)	 	$	(6,926,514	)	 	$	(41,559,085	)
	
			9/4/2020

				 	 	$	(34,058,108	)	 	$	(6,811,622	)	 	$	(40,869,729	)
	
			9/11/2020

				 	 	$	(35,345,903	)	 	$	(7,069,181	)	 	$	(42,415,084	)
	
			9/18/2020

				 	 	$	(32,600,729	)	 	$	(6,520,146	)	 	$	(39,120,875	)
	
			9/25/2020

				 	 	$	(29,491,571	)	 	$	(5,898,314	)	 	$	(35,389,885	)
	
			10/2/2020

				 	 	$	(29,166,976	)	 	$	(5,833,395	)	 	$	(35,000,371	)

 

In the event that Libbey does not achieve the foregoing required Operating Cash Flow on either the First Testing Date or the Second Testing Date in accordance with (i) and (ii) of the above, you will be required to repay the forfeited and unearned portion of the Retention Bonus within fifteen (15) days following your receipt of written notice of your obligation to repay due to failure to achieve the required Operating Cash Flow.

 

However, if your employment is terminated by a Libbey entity without Cause or as a result of your resignation for Good Reason or you die or become disabled prior to the earlier of (x) October 2, 2020, and (y) the effective date of a Plan of Reorganization, and you (or your estate in the case of death) sign and do not revoke a general release of claims in a form satisfactory to the Company within forty-five (45) days of your termination, you will be deemed to have earned 100% of the Retention Bonus (regardless of whether the Operating Cash flow metrics are met in clauses (i) or (ii) above are met); provided, that if you fail to return the required release within forty-five (45) days of your termination or revoke the release, then you will forfeit and will not have earned the Retention Bonus and will be required to repay the full gross amount. Note, you will be considered to have been terminated without Cause if your employment with all Libbey entities is terminated in connection with a sale of assets, even if you accept employment with and are immediately rehired by a buyer.

 

If you are required to repay the Retention Bonus (or any portion thereof) under this letter agreement, then you agree to do so promptly, but in no event more than fifteen (15) days following the date(s) you first become obligated to repay the Retention Bonus (or any portion thereof). You acknowledge and agree that Libbey may offset and reduce any other compensation owed to you (including, but not limited to, any leave or paid time off required to be paid to you, earned and unpaid wages, unreimbursed business expenses you may be entitled to, earned and unpaid commissions, deferred compensation and/or any severance payments you are or may become entitled to), by the amount of the Retention Bonus which is not earned and subject to repayment under this agreement. However, no compensation will be reduced if doing so would violate applicable law or would result in penalty taxes under Section 409A of the Internal Revenue Code of 1986 and the rules and regulations thereunder. We reserve all other rights and remedies available to recoup the full amount of the Retention Bonus advanced, including the right to file a legal claim in court.

 

 

 

 

May 31, 2020

Page 3

 

This letter does not confer upon you any right to continue in the employment of Libbey for any period or interfere with or otherwise restrict in any way the rights of your employer or you to terminate your employment at any time for any reason whatsoever, with or without Cause.

 

For purposes of this agreement:

 

“Cause” means: (i) your willful and continuous failure (other than as a result of your incapacity due to physical or mental illness) to substantially perform your duties with Libbey after Libbey has delivered to you a written demand for substantial performance that specifically identifies the manner in which Libbey believes you have not substantially performed your duties; (ii) your willful and continuous failure (other than as a result of your incapacity due to physical or mental illness) to substantially follow and comply with the specific and lawful directives of Libbey, after Libbey has delivered to you a written demand for substantial performance that specifically identifies the manner in which Libbey believes you have not substantially followed or complied with the directives of the Company; (iii) your commission of an act of fraud or dishonesty that causes harm to Libbey; (iv) your failure to comply with a material Libbey policy or code of conduct; (v) your material breach of any material obligation under any written agreement between you and Libbey; (vi) your illegal conduct or gross misconduct that causes harm to Libbey; (vii) your conviction of a misdemeanor or felony that (A) is directly related to the position that you occupy with Libbey or (B) indicates that you are unsuitable for the position that you occupy with Libbey. The Compensation Committee of the Board of Directors of the Company has the sole authority and discretion to determine whether any termination is for Cause and such determination will be final and binding on you and the Company.

 

“Good Reason” means the occurrence of any of the following circumstances without your consent: (i) Libbey’s reduction of your annual base salary and the reduction in not applied in the same or similar manner to similarly situated employees; (ii) Libbey’s relocation of your principal place of employment by more than 50 miles; or (iii) Libbey’s material breach of any written agreement between Libbey and you and Libbey do not remedy it within sixty (60) days after receiving from you written notice of the breach. If you do not deliver to Libbey, within ninety (90) days after the date on which you knew or should have known of the Good Reason event, written notice specifying in reasonable detail the particulars giving rise to the Good Reason event, you will be deemed conclusively to have waived that particular Good Reason event (but not any subsequent Good Reason event) even if your failure to give timely notice of the Good Reason event is a result of your incapacity due to physical or mental illness. In all events, Libbey will be given a thirty (30)-day period to cure or remedy the condition giving rise to your notice.

 

 

 

 

May 31, 2020

Page 4

 

This agreement will in all respects be governed by, and construed in accordance with, the laws of the State of Ohio, without reference to conflicts of law principles thereunder. Any litigation arising out of this agreement shall be brought exclusively in the federal or state courts sitting in Toledo, Ohio, to which jurisdiction you and the Company hereby submit with respect to litigation arising out of this agreement, and both you and the Company hereby knowingly and willingly waive their rights to a jury trial in any such litigation.

 

You should be aware that in addition to your obligation to repay the Retention Bonus under this letter agreement, the Retention Bonus could also be subject to recoupment in the event the Company files for bankruptcy in the future.

 

Please indicate your acceptance of the provisions of the revised terms of your Retention Bonus as set forth in this agreement by signing the enclosed copy of this letter agreement and returning it to me by the end of the day on May 31, 2020.

 

	 	
			Very truly yours,

			 

			LIBBEY INC.

			 

			 

			 

			Jennifer M. Jaffee

			Senior Vice President, General Counsel & Secretary

			

 

 

Agreed and Accepted:

 

 

	 	 
	Michael P. Bauer	 
	 	 
	Date

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