Document:

Exhibit 10.17

 

	
  

  	
  PowerSupply Coordination® 

  Service Agreement

  Texas

  Fixed Product

  

 

This Agreement is entered into on February 13, 2009 and
is between Direct Energy Business, LLC (“Direct Energy”) and Resaca
Exploitation, Inc. (“Buyer”). Direct Energy and Buyer are sometimes
individually referred to herein as a “Party” or collectively as the “Parties”.

 

1.  Nature of Service:

 

This Agreement shall become effective only upon (i)  execution by Buyer of the Pricing Attachment
and this Agreement; and (ii) the earlier of execution of this Agreement by
Direct Energy or written confirmation by Direct Energy of its acceptance of
this Agreement to Buyer. Upon such effectiveness, Direct Energy will provide
PSC Services and Electricity to meet Buyer’s full usage requirements at Buyer’s
Facility(ies) and Buyer will receive and pay for PSC Services and Electricity
to meet such usage requirements. Direct Energy will deliver Electricity to the
Host Utility for delivery to Buyer’s Facility(ies).

 

2.  Term:

 

Direct
Energy shall use its reasonable efforts to commence service on the
Facility(ies) meter read date in the start month stated on the Pricing
Attachment. However, Buyer acknowledges that  the commencement of service
hereunder is dependent upon confirmation by the Host Utility of the completion
of all required switching and enrollment processes and if such switching and
enrollment processes occur after the Facility(ies) meter read date in the start
month stated on the Pricing Attachment, Buyer’s Facility(ies) shall be enrolled
at the next available meter read date. Direct Energy shall
not be liable for any lost savings or lost opportunity as a result of a delay
in service commencement due to actions or inactions of the Host Utility.

 

Service
shall continue through the Facility(ies) meter read date in the end month as stated on the Pricing
Attachment (the “Term”) unless sooner terminated as provided herein. At the end
of the Term, if not terminated in accordance with Section 13, this
Agreement shall automatically continue on a month-to-month basis (“Monthly
Renewal”) at the market-based costs as set forth in Section 5 if (1) the
Buyer and Direct Energy have not entered into any written modification,
amendment or renewal of this Agreement or (2) Buyer has not arranged to
receive service from, and transitioned to, another supplier

 

3.  Definitions: 

 

As
used herein, unless the context clearly indicates otherwise, the following
terms shall have the meaning set forth below:

 

“Actual Damages”

 

means the total amount of the loss that
the non-defaulting party (or, in the event of a termination without cause, the
non- terminating party) (as applicable,
the “Damaged Party”) would experience as a result of termination. As to
each terminated transaction, Actual Damages shall be deemed to equal the sum of
(x) the positive difference, if any, between (i) the market value of
the Energy for each such terminated transaction, as determined by Direct Energy
in a commercially reasonable manner, and (ii) the contract value of the Energy
for such terminated transaction, plus, as to any termination in which Direct
Energy is the Damaged Party, (y) the fee for PSC Services for the
remaining term multiplied by the anticipated usage for the balance of the Term.

 

“Ancillary Services”

 

means
wholesale electric services and products required to facilitate delivery of
Energy to the Host Utility

 

“Control Area”

 

means
the Electric Reliability Council of Texas which is the electric system that
directly controls its generation to continuously balance its actual generation
interchange and scheduled generation interchange.

 

“Delivery Service”

 

means
all delivery service provided by the Host Utility.

 

“Discretionary Service”

 

means
a service provided by the Host Utility that is related to, but not essential
to, the transmission and distribution of electricity from the point of
interconnection of a generation source or third-party electric grid facilities
to the point of interconnection with a retail customer or other third party
facilities.

 

“Electricity”

 

means
the combination of Energy and Ancillary Services which are provided by Direct
Energy under this Agreement.

 

1

 

“Emergency Interruptible Load Service”

 

means
a special emergency service used by ERCOT during an emergency electric
curtailment plan, step 3 or 4, to
reduce load and assist ERCOT in maintaining or restoring ERCOT system
frequency.

 

“Energy”

 

means
electrical energy, as measured in kilowatt hours (kWh) or megawatt hours (MWh).

 

“ERCOT IO”

 

means
the Electric Reliability Council of Texas Independent Operator.

 

“Event of Default”

 

means:
(a) the failure of a Party to make, when due, any payment that is required
under this Agreement; (b) any representation or warranty
made by a Party that proves to be false or misleading in any material respect; (c) the
failure of a Party to perform its obligations under this Agreement, except to
the extent such failure is excused by a Force Majeure event; (d) Buyer’s
failure to cooperate with Direct Energy as reasonably required in order for
Direct Energy to perform its obligations under this Agreement. If an Event of
Default has occurred, (a) the non-defaulting Party shall have the right to
setoff and net against any undisputed amounts owed by the defaulting Party to
the non-defaulting Party under this Agreement, and (b) Direct Energy shall
additionally have the right to setoff and net against any deposit or security
provided by Customer pursuant to this Agreement any amounts, charges or damages
owed by Buyer to Direct Energy.

 

“Facility (ies)”

 

means
the electric account meter(s) located at the service address(es) for which
Buyer has the authority to purchase Electricity under this Agreement and which
are set forth on the Pricing Attachment.

 

“Firm”

 

means
that Parties may only suspend performance hereunder to the extent that such
performance is prevented for reasons of Force Majeure.

 

“Force
Majeure”

 

means
any “Act of God” or other unexpected and  disruptive event beyond the
reasonable control of either Party that interferes with either Party’s ability
to perform its obligations under this Agreement, except for the obligation to
pay monies due. Any Party which is unable to perform its obligations hereunder
as a result of a Force Majeure event shall provide written notice to the other
Party of the existence of such event and exercise due diligence to remove such
event with all reasonable dispatch, but shall in no event be required to incur
any commercially unreasonable expense in doing so. It is expressly understood
by the Parties that the ability of Direct Energy to sell the services provided
hereunder at a price greater than the Price paid by Buyer shall not constitute
an event of Force Majeure. Conversely, the ability of Buyer to purchase the
products and services provided hereunder for an amount less than the Price
shall not constitute an event of Force Majeure. Buyer acknowledges that while
Direct Energy may take title to Energy provided hereunder, Direct Energy does
not own or operate transmission or distribution systems through which Energy is
delivered to Buyer, and the Parties therefore agree that Direct Energy shall
not be liable for any damages associated with any failure in the delivery of
Energy in connection with the failure of such transmission or distribution
systems.

 

“Host
Utility”

 

means
any investor-owned utility, municipal utility, public utility, or other
provider of electric lines whose system is directly interconnected with and
which provides Delivery Service to Buyer’s Facility(ies).

 

“Point(s) of Delivery”

 

mean
the point(s) where Energy is delivered to  the Host Utility.

 

“PowerSupply
Coordination (PSC) Services”

 

are
the services provided by Direct Energy to match the Facility(ies) load, as
described in this Agreement. As described in Section 5 herein, the fee for
PSC Service is included in the Price to be paid by Buyer.

 

4.  Type of Service: 

 

Firm - subject only to Force Majeure.

 

5.  Price:

 

The
price per kWh to be paid by Buyer for the Services provided hereunder during
the Term of this Agreement (the “Price”) shall be that set forth on the Pricing
Attachment. The Price includes applicable costs for Energy; ERCOT IO
administrative fees; Ancillary Services. Emergency Interruptible Load Service
(EILS) charges; congestion; losses associated with Transmission and Delivery
Service; renewable energy costs, as required; and the fee for PSC Services. Any
sales taxes, transactional taxes or other governmental or regulatory imposed
taxes or surcharges; the public utilities gross receipt assessment fee; and all
costs associated with gross receipts tax are not included in the Price and
shall be passed through, at Direct Energy’s cost, to be paid by Buyer in
addition to the Price. Buyer acknowledges that charges for Delivery Service and
any Discretionary Services are per the Host Utility’s tariff and are not part
of the Price hereunder.

 

The
price per kWh during any Monthly Renewal will include the market-based costs
for Energy as determined by Direct Energy, plus all other taxes, costs, charges
or fees which are set forth in the Price section of this Agreement.

 

Buyer
acknowledges that any costs assessed by the Host Utility or any third party as
a result of Buyer’s switch to or from Direct

 

2

 

Energy,
including but not limited to switching costs, are not included in the Price and
shall be the responsibility of Buyer.

 

6.  Billing and Payment:

 

Payment-in-full
is due twenty (20) days from the date of the invoice. If Buyer fails to remit
payment in full in any month, interest will be assessed on the late
balance at the lower of one-and-one-half (1.5%) percent per month or the
highest rate allowed by law. Buyer may in good faith dispute any
portion of an invoice by providing Direct Energy with a written explanation
specifying the amount in dispute and the reason for the dispute by the payment
due date, Buyer shall remit all invoiced and undisputed amounts by the date
due. In all cases, the Parties shall use good faith efforts to resolve any
dispute. In the event the Parties are unable to resolve the dispute within ten (10) days
of the notice date, either Party may begin legal proceedings to resolve the
dispute. Any amounts determined owed, together with interest thereon as
provided above, shall be paid within three (3) days of the date on which
the dispute is resolved.

 

Buyer
will receive from Direct Energy a monthly invoice following its meter read date
for Direct Energy Services provided under this Agreement as well as the charges
for Delivery Service to be provided by Buyer’s Host Utility and charges for any
Discretionary Services purchased by Buyer from Buyer’s Host Utility. Buyer
acknowledges that charges for Delivery Service and any Discretionary Services
are per the Host Utility’s tariff and are not part of the Power Supply Coordination
Services and Electricity provided hereunder. Buyer shall receive a separate
invoice per Facility unless Buyer selects the Aggregated Billing option on the
Billing Contract Information and Selection Form, which is attached hereto and
made a part hereof. For the purposes of this Agreement, Aggregated
Billing shall mean that Buyer’s Facility(ies) shall be combined into one Direct
Energy invoice (excepting however, that a aggregated invoice may contain
no more than fifty (50) Facilities. If Buyer has more than fifty (50)
Facility(ies), Buyer shall receive more than one aggregated invoice). If Buyer
selects Aggregated Billing, Direct Energy shall choose the day of the month on which
to deliver an invoice to Buyer based upon the Facility(ies) meter read dates.
In the event Buyer desires to discontinue Aggregated Billing and instead
receive a separate invoice for each Facility, Buyer shall submit such request
in writing to Direct Energy and Direct Energy shall separate Buyer’s invoice
provided that the invoice balance(s) on Buyer’s Facility(ies) are zero.

 

If
in any month Direct Energy does not receive the information necessary to
invoice Buyer or uses information obtained from a third party meter reading
service, Direct Energy may use either estimated data or the third party meter
usage data to calculate Buyer’s invoice and, upon receipt of actual data in the
case of an estimated read, reconcile the amount billed on future invoices. If
Buyer’s Facility(ies) have any interval meters, Buyer acknowledges that the
usage information for such meters contained on the Direct Energy invoice may
vary from that contained upon the Host Utility bill as a result of different
billing cycles being utilized for those meter reads.

 

In
no event shall any adjustments or corrections be made to any amount billed
after the lapse of the longer of twenty-four (24) months from the date of the
invoice or the time frame permitted by the Regional Transmission Operator, the
Independent System Operator or the Host Utility’s tariff for adjustments
to consumption information.

 

7.  Credit:

 

Direct
Energy may request that Buyer provide financial information sufficient for
Direct Energy to complete a credit review prior to providing service hereunder.
If, prior to commencing service or at any time during the Term of this
Agreement, Direct Energy has good faith concerns about the creditworthiness of
Buyer or Buyer’s ability to perform hereunder, Direct Energy may require that
Buyer provide reasonable credit assurance(s). in an amount and in a form determined
by Direct Energy in a commercially reasonable manner, including but not limited
to, an escrow account, deposit, letter of credit, or parental guaranty. If such
credit assurance(s) is not provided within seven (7) days of being
requested by Direct Energy, then such failure shall be deemed an Event of
Default under this Agreement and Direct Energy may terminate this Agreement
without any additional notice.

 

8.  Title, Control and Possession: 

 

Title
to, control and possession of Energy shall pass from Direct Energy to Buyer at
the Point of Delivery.

 

9.  Load Change Information:

 

In
order to assist Direct Energy in providing accurate expected usage information to
Buyer’s Host Utility, Buyer shall timely notify Direct Energy of any
anticipated significant changes in its actual usage. Without limiting Buyer’s
obligation to provide such notice, Buyer shall give Direct Energy at least
thirty (30) days’ notice (“Notice of Load Change”) prior to removing a
Facility(ies) from service hereunder as a result of ceasing operations (closing
of the Facility(ies) or sale of the Facility(ies) to an unrelated third
party) at such Facility(ies). To the extent that Direct Energy incurs increased
costs as a result of any such changes (regardless of whether such notification
was provided) or as a result of a change in Buyer’s usage of 25% or more.
Direct Energy may pass through such resulting cost increases to Buyer, or at
its option, elect to terminate this Agreement without any further obligation.
If Direct Energy elects to pass through such costs increased, Direct Energy
will calculate the amount of such costs in a commercially reasonable manner and
submit an invoice to Buyer, along with substantiation of the charges, which
invoice will be due and payable pursuant to the payment terms of this
Agreement.

 

10. Change in Law or Regulation:

 

If
regulatory changes shift costs from the Host Utility or ISO to Direct
Energy or from Direct Energy to the Host Utility or ISO, then such costs or
credits shall be passed through to the buyer. If any laws, orders or
regulations are passed, modified, implemented or  interpreted by
judicial or regulatory order administrative proceeding or legislative
enactment, or if there is a change in rate

 

3

 

class
which applies to Buyer’s facilities, which creates additional costs not
currently included in the Price or increases in the cost components of the
Price (“Incremental Charges”), then Direct Energy shall pass through such
Incremental Charges to be paid by Buyer in addition to the Price and in
accordance with the payment terms in this Agreement.

 

11. Limitation of Liability Disclaimer:

 

LIABILITY IS LIMITED TO ACTUAL DAMAGES (AS DEFINED HEREIN) AS
THE SOLE AND EXCLUSIVE REMEDY AND ALL OTHER REMEDIES OR DAMAGES AT LAW OR IN
EQUITY ARE EXPRESSLY WAIVED. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE
OTHER FOR ANY INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, LOST PROFITS OR
OTHER BUSINESS INTERRUPTION DAMAGES. EACH PARTY AGREES THAT IT HAS A DUTY TO
MITIGATE DAMAGES AND AGREES THAT IT WILL USE COMMERCIALLY REASONABLE EFFORTS TO
MINIMIZE ANY DAMAGES IT MAY INCUR AS A RESULT OF THE OTHER PARTY’S
PERFORMANCE OR NON-PERFORMANCE OF THIS AGREEMENT.

 

TO THE MAXIMUM EXTENT POSSIBLE UNDER LAW, ARTICLE 2 OF THE
UNIFORM COMMERCIAL CODE SHALL APPLY TO ENERGY SOLD HEREUNDER, DIRECT
ENERGY MAKES NO REPRESENTATIONS OR WARRANTIES OTHER THAN THOSE EXPRESSLY SET
FORTH IN THIS AGREEMENT, AND EXPRESSLY DISCLAIMS AND NEGATES ALL OTHER
REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT
LIMITATION, WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

 

12. Right To Rescind:

 

If
the aggregate demand at all of Buyer’s Facility(ies) is less than fifty (50)
kW, Buyer has until midnight of the third (3rd) federal business day following
the date that Buyer executes this Agreement to call Direct Energy at
1-(888)-925-9115 and cancel (rescind) this Agreement..

 

13. Termination:

 

This
Agreement may be terminated at any time after the date hereof (i) by
mutual consent in writing by the Parties, (ii) by either Party if there
has been an Event of Default that is not cured within fifteen (15) calendar
days of the defaulting Party’s receipt of written notice from the
non-defaulting Party, (iii) by Direct Energy if Buyer fails to provide the
credit assurance requested, pursuant to Section 7, within seven (7) days
of being requested by Direct Energy; or (iv) during a Monthly Renewal
pursuant to Section 2, by either Party upon providing the other Party with
thirty (30) days prior written notice.

 

In
the event Direct Energy terminates this Agreement pursuant to (ii) above
due to non-payment by Buyer, Direct Energy may, in accordance with Texas PUC
regulations disconnect Buyer’s service hereunder, or if the Facility(ies) to be
terminated are critical care facility(ies), then Direct Energy shall comply
with the TDSP and the Texas PUC regulations prior to disconnecting service
hereunder.

 

Upon
the termination of this Agreement or the expiration of the Term, if Direct Energy
has not disconnected service, Buyer must: (1) arrange to receive service
from, and transitioned to, another supplier or (2) pay the market based
costs for a Monthly Renewal(s).

 

14. Effect of Termination:

 

In
the event of termination as provided in this Agreement, all further obligations
of the Parties under this Agreement shall terminate without further liability
of the Parties, except for the payment by the owing Party of any sums due and
owing to the other Party for services rendered prior to  the termination
date, any Actual Damages, any indemnification or confidentiality obligation of
either Party which has arisen hereunder and any other obligation hereunder
which by its nature survives the termination of this Agreement.

 

In
the event this Agreement expires or is terminated and Buyer is still receiving
Services from Direct Energy, Buyer shall continue to pay Direct Energy the
Monthly Renewal rates defined in this Agreement until the Facility(ies) are no
longer being served by Direct Energy.

 

15. Applicable Law:

 

As
to all mailers of construction and interpretation, this Agreement shall be
construed, interpreted, and governed under and by the laws of the State of
Texas, without regard to its choice of law provisions.
If the aggregate demand at all of Buyer’s Facility(ies) is greater than fifty
(50) kW, then both Parties agree that it is their intention to agree to terms
and conditions different from those set forth in the “Customer Protection Rules for
Retail Electric Service” as amended, or as may be amended in the future (the
“Customer Rules”) currently beginning with Section 25.471 of the Public
Utility Commission of Texas Substantive Rules Applicable to Electric
Service Providers. In the event that there is any conflict between the terms
contained in this Agreement and the Customer Rules, this Agreement shall
control. The Parties expressly acknowledge that certain terms and conditions
addressed in the Customer Rules may not be provided for or referred to in
this Agreement, and, in such event, it is the intent of the Parties that,
except for Section 25.483 pertaining to termination and disconnection of
service, such terms and conditions are not applicable to the Parties.

 

16. Parties, Assignment:

 

This
Agreement shall inure to and benefit the Parties hereto and their permitted
successors and assigns. Neither Party may

 

4

 

assign
this Agreement without the prior written consent of the other Party, which
consent shall not  be unreasonably withheld,
conditioned or delayed. Notwithstanding the above, Direct Energy may, without
the consent of Buyer, assign this Agreement and its rights and obligations
hereunder to any third party for the limited purpose of securing credit and
financing or to any person or entity succeeding to all or substantially all of
the assets of Direct Energy. Further, either Party may,  without the need for consent
from the other Party transfer or assign this Agreement to an Affiliate of such
Party provided that such Affiliate has equivalent financial capability to that
of the assigning Party and agrees to be bound by the terms and conditions
hereof. Buyer expressly agrees that if necessary Buyer will execute any
documents necessary to effectuate such assignment including, but not limited
to, a letter of agency. As used herein, “Affiliate” shall mean with respect to
any person, any other person (other than an individual) that, directly or
indirectly, through one or more intermediaries, controls, or is controlled by,
or is under common control with, such person. For purposes of the foregoing
definitions. “control” means the direct or indirect ownership of more than
fifty percent (50%) of the outstanding capital stock or other equity interests
having ordinary voting power.

 

17. Notices and Correspondence:

 

Any
notice or other document to be given or served hereunder or under any document
or instrument executed pursuant hereto, including without limitation any
termination or disconnection notices, shall be in writing and shall be
delivered to either the address specified below or the address to which bills
are sent to Buyer. Notice sent by facsimile or other electronic means shall be
deemed to have been received by the close of the business day on which it was
transmitted or such earlier time as is confirmed by the receiving Party. Notice
delivered by courier shall be deemed to have been received on the business day
after it was sent or such earlier time as is confirmed by the receiving Party.
Notice delivered by mail shall be deemed to have been received at the end of
the third business day after the date of mailing by prepaid first class mail,
except that when there is a strike affecting delivery of mail, all notices
shall be delivered by courier or by facsimile
or other electronic means.

 

	
  Direct Energy

  	
   

  	
  Resaca Exploitation, Inc.

  
	
  Attn:
  Customer Service Manager

  	
   

  	
  Attn:
  Randy Ziebarth

  
	
  Two
  Gateway Center

  	
   

  	
  1331 Lamar

  
	
  Pittsburgh,
  PA 15222

  	
   

  	
  Suite 1450

  
	
  Phone:
  (888) 925-9115

  	
   

  	
  Houston,
  TX 77010

  
	
  Fax:
  (412)394-3388

  	
   

  	
  Phone:
  (713) 756-1620

  
	
  Email:
  CustomerRelations@directenergy.com

  	
   

  	
  Fax:

  
	
   

  	
   

  	
   

  
	
  With
  a copy to:

  	
   

  	
   

  
	
  Legal
  Department

  	
   

  	
   

  
	
  Two
  Gateway Center, 5th Flr.

  	
   

  	
   

  
	
  Pittsburgh,
  PA 15222

  	
   

  	
   

  

 

Monday through Thursday from 7:00AM  to 7:00PM
Eastern Time and Friday 7:00AM to 6:00PM Eastern Time

 

18. Confidentiality:

 

Neither
Party will disclose the terms of this Agreement, or any information of the
other Party which it knows or reasonably should know to be confidential or
proprietary (other than to the Party’s employees, lenders, counsel,
consultants, agents or accountants who have agreed to keep such terms
confidential) except when disclosure may be required by law, is required to
carry out the terms of this Agreement or a Party has obtained written consent
from the other Party. Direct Energy agrees that such confidential treatment
shall extend to Buyer’s usage and consumption data which is not otherwise in
the public domain and which will not be disclosed except as appropriate to
carry out the terms of this Agreement or as requested in writing by the Buyer.
The Parties shall be entitled to all remedies available at law or in equity to
enforce, or seek relief in connection with this confidentiality obligation.
This provision shall survive  the termination of this
Agreement for a period of two (2) years.

 

19. Representations and Warranties:

 

As
a material inducement to entering into this Agreement, each Party, with respect
to itself, hereby represents and warrants to the other Party as follows:

 

(a) it is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its formation and is qualified to conduct
its business in those jurisdictions necessary to perform this Agreement;

 

(b) the
execution and delivery of this Agreement are within its powers, have
been duly authorized by all necessary actions and/or board approvals, and do
not violate any of the terms or conditions in its governing documents or any
contract to which it is a Party or any law applicable to it;

 

(c) as of the date of service commencement hereunder, it shall have
all regulatory authorizations necessary for it to legally perform its
operations;

 

(d) this Agreement constitutes a legal, valid and binding
obligation of such Party enforceable against it in accordance with its

 

5

 

terms,
subject to bankruptcy, insolvency, reorganization, and other laws affecting
creditors’ rights generally and with regard to equitable remedies, subject to
the discretion of the court before which proceedings to obtain same may be
pending;

 

(e) there
are no bankruptcy, insolvency, reorganization, receivership or other similar
proceedings pending or being contemplated by it or, to its knowledge,
threatened against it;

 

(f) if
a broker has been involved in this transaction, such broker is an agent of
Buyer in this transaction and may receive a commission to be paid by Direct
Energy from payments received from Buyer under this Agreement;

 

(g) if it is a property management company acting on behalf of the
owner of the Facility(ies), it has the authority to execute and bind the
Facility(ies) to this Agreement for the Term stated in the Pricing Attachment and
that the term of its property management agreement with the owner of the
Facility(ies) is equal to or greater than the Term of this Agreement; and

 

(h) the Facility(ies) to be provided the services described herein
are not contractually bound by another agreement for Electricity services that
will overlap with the Term stated in the Pricing Attachment.

 

Each
Party covenants that it shall cause its respective representations and
warranties to remain true and correct throughout the Term of this Agreement.

 

20. Waiver:

 

No
waiver by either Party of any default or defaults by the other Party under this
Agreement shall operate as a waiver of any future default or defaults, whether
of a like or different character or nature. No delay or failure by Direct
Energy in enforcing any part of this Agreement shall be deemed a waiver of any
of its rights or remedies.

 

21. Severability

 

The
various provisions of this Agreement are severable. The invalidity, illegality
or unenforceability of any portion or provision shall not affect the validity,
legality or enforceability of any other portion or provision of this Agreement.

 

22. Entire Agreement:

 

This
Agreement may be executed in one or more than one counterpart and each executed
counterpart shall be considered an original, provided that such counterpart is
delivered to the other Party by facsimile, mail, courier or electronic mail,
all of which together shall constitute one and the same Agreement.

 

 

IN
WITNESS WHEREOF, the Parties have caused this Agreement to be duly
executed.

 

 

	
  DIRECT
  ENERGY BUSINESS LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  RESACA EXPLOITATION, INC.

  
	
  BY

  	
  /s/
  Michael R. Young

  	
   

  	
  BY

  	
  /s/
  Randy Ziebarth

  
	
  Print
  Name:

  	
  MICHAEL
  R. YOUNG

  	
   

  	
  Print
  Name:

  	
  RANDY
  ZIEBARTH

  
	
  Title:

  	
  EVP,
  SALES

  	
   

  	
  Title:

  	
  Vice
  President

  
	
  Date:

  	
  February,
  17 2009

  	
   

  	
  Date:

  	
  2-13-09

  

 

6

 

	
  DE
  Proprietary

  	
  DE Proprietary

  

 

Notice: Buyer’s execution and submission of this
Pricing Attachment to Direct Energy shall constitute an offer by Buyer to
Direct Energy to purchase Electricity on the terms set forth in the the
Agreement. The Agreement (including this Pricing Attachment) shall become
effective only upon (i) such execution by Buyer of the Pricing Attachment
and the Agreement; and (ii) the earlier of execution of the Agreement by
Direct Energy or written confirmation by Direct Energy of its acceptance of the
Agreement to Buyer.

 

PRICING ATTACHMENT TO POWERSUPPLY COORDINATION SERVICES
AGREEMENT

 

dated February 13, 2009 between

DIRECT ENERGY BUSINESS LLC

and

Resaca Exploitation, Inc.

from the meter read(s) May, 2009 to the meter read(s) May, 2010

ERCOT_CI_FPR_25MAC_TX

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
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  Utility Rate

  	
   

  	
  Price

  	
   

  	
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  Location

  	
   

  	
  Host Utility

  	
   

  	
  Account Number

  	
   

  	
  Class

  	
   

  	
  (cents/kWh)

  	
   

  	
  Usage

  	
   

  
	
  7360 CRANE

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049722514390

  	
   

  	
  841

  	
   

  	
  5.353

  	
   

  	
  1,489

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7340 CRANE

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049766889910

  	
   

  	
  841

  	
   

  	
  5.353

  	
   

  	
  74,625

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7350 CRANE

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049730419350

  	
   

  	
  841

  	
   

  	
  5,353

  	
   

  	
  107,744

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7330 CRANE

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049729027960

  	
   

  	
  841

  	
   

  	
  5.353

  	
   

  	
  135,250

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7320 CRANE OILWELL

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049714082170

  	
   

  	
  836

  	
   

  	
  5.353

  	
   

  	
  116,725

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19750 BAKERSFIELD

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049712545700

  	
   

  	
  836

  	
   

  	
  5.353

  	
   

  	
  24,324

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19910 BAKERSFIELD UNIT

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049791186111

  	
   

  	
  836

  	
   

  	
  5.353

  	
   

  	
  57,851

  	
   

  
	
  RSVLT#1

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BAKERSFIELD UNIT WW#1612

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049724282340

  	
   

  	
  829

  	
   

  	
  5.353

  	
   

  	
  1,196

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19890 BAKERSFIELD

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049721887750

  	
   

  	
  836

  	
   

  	
  5.353

  	
   

  	
  60,926

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BAKERSFIELD UNIT W#1701

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049759686480

  	
   

  	
  836

  	
   

  	
  5.353

  	
   

  	
  50,960

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19760 BAKERSFIELD

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049763074401

  	
   

  	
  841

  	
   

  	
  5.353

  	
   

  	
  12,150

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19740 BAKERSFIELD

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049787517730

  	
   

  	
  829

  	
   

  	
  5.353

  	
   

  	
  6,632

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19930 BAKERSFIELD

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049756332070

  	
   

  	
  841

  	
   

  	
  5.353

  	
   

  	
  40,144

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19960 BAKERSFIELD

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049739533492

  	
   

  	
  841

  	
   

  	
  5.353

  	
   

  	
  605,724

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19720 BAKERSFIELD

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049787071390

  	
   

  	
  829

  	
   

  	
  5.353

  	
   

  	
  26,322

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19830 BAKERSFIELD

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049776127610

  	
   

  	
  829

  	
   

  	
  5.353

  	
   

  	
  46,950

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19730 BAKERSFIELD

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049763010540

  	
   

  	
  836

  	
   

  	
  5.353

  	
   

  	
  51,560

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19840 BAKERSFIELD

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049756048720

  	
   

  	
  836

  	
   

  	
  5.353

  	
   

  	
  35,412

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19880 BAKERSFIELD

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049771594901

  	
   

  	
  836

  	
   

  	
  5.353

  	
   

  	
  35,970

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19970 BAKERSFIELD

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049741184652

  	
   

  	
  836

  	
   

  	
  5.353

  	
   

  	
  85,733

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

	
  19900 BAKERSFIELD

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049700917960

  	
   

  	
  836

  	
   

  	
  5.353

  	
   

  	
  97,981

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19710 BAKERSFIELD

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049719636600

  	
   

  	
  829

  	
   

  	
  5.353

  	
   

  	
  8,989

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19850 BAKERSFIELD

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049742532051

  	
   

  	
  836

  	
   

  	
  5.353

  	
   

  	
  70,828

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19940 BAKERSFIELD UNIT

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049776367012

  	
   

  	
  836

  	
   

  	
  5.353

  	
   

  	
  120,096

  	
   

  
	
  RSVLT#5

  ( PREMISE ) 

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  bakersfield

  	
   

  	
  AEP Texas North

  	
   

  	
  10204049736614931

  	
   

  	
  841

  	
   

  	
  5.353

  	
   

  	
  1,203

  	
   

  
	
  ( Torch Energy )

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  This Attachment is based on a Weighted Average Price.
  Any strikeouts of any of the accounts provided with a Weighted Average Price
  will render pricing for the accounts assigned with a Weighted Average Price,
  null and void.

  
	
  Accepted
  and Agreed to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Randy Ziebarth

  	
   

  	
  Date:

  	
  2-13-2009

  
					

 

2

 

Notice: Buyer’s execution and submission of this
Pricing Attachment to Direct Energy shall constitute an offer by Buyer to
Direct Energy to purchase Electricity on the terms set forth in the the
Agreement. The Agreement (including this Pricing Attachment) shall become
effective only upon (i) such execution by Buyer of the Pricing Attachment
and the Agreement; and (ii) the earlier of execution of the Agreement by
Direct Energy or written confirmation by Direct Energy of its acceptance of the
Agreement to Buyer.

 

PRICING ATTACHMENT TO POWERSUPPLY COORDINATION SERVICES
AGREEMENT

 

dated February 13, 2009 between

DIRECT ENERGY BUSINESS LLC

and

Resaca Exploitation, Inc.

from the meter read(s) May, 2009 to the meter read(s) May, 2010

ERCOT_CI_FPR_25MAC_TX

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Historical

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Utility Rate

  	
   

  	
  Price

  	
   

  	
  Annual

  	
   

  
	
  Location

  	
   

  	
  Host Utility

  	
   

  	
  Account Number

  	
   

  	
  Class

  	
   

  	
  (cents/kWh)

  	
   

  	
  Usage

  	
   

  
	
  401 S CEDAR ST

  	
   

  	
  Texas New

  	
   

  	
  10400513059540001

  	
   

  	
  SLT5

  	
   

  	
  5.353

  	
   

  	
  305

  	
   

  
	
  ( TORCH ENERGY SERVICES

  	
   

  	
  Mexico Power

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INC )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SEALY LSE UNIT #47-1

  	
   

  	
  Texas New

  	
   

  	
  10400513586780001

  	
   

  	
  SSGN

  	
   

  	
  5.353

  	
   

  	
  13,163

  	
   

  
	
  ( TORCH ENERGY SERVICES

  	
   

  	
  Mexico Power

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INC )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  RAY CLAPP LSE UNIT NO 4

  	
   

  	
  Texas New

  	
   

  	
  10400513378510001

  	
   

  	
  SLT5

  	
   

  	
  5.353

  	
   

  	
  11,115

  	
   

  
	
  ( TORCH ENERGY SERVICES

  	
   

  	
  Mexico Power

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INC )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  S HWY 115 UNIT 3 SPAN

  	
   

  	
  Texas New

  	
   

  	
  10400513072830001

  	
   

  	
  PSGN

  	
   

  	
  5.353

  	
   

  	
  276,762

  	
   

  
	
  ( TORCH ENERGY SERVICES

  	
   

  	
  Mexico Power

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INC )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HENDERICK B LSE

  	
   

  	
  Texas Now

  	
   

  	
  10400513069850001

  	
   

  	
  SSGN

  	
   

  	
  5.353

  	
   

  	
  22,568

  	
   

  
	
  ( TORCH ENERGY SERVICES

  	
   

  	
  Mexico Power

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INC )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OSCAR CLAPP LSE PUMP

  	
   

  	
  Texas New

  	
   

  	
  10400513069010001

  	
   

  	
  PSGN

  	
   

  	
  5.353

  	
   

  	
  211,411

  	
   

  
	
  ( TORCH ENERGY SERVICES

  	
   

  	
  Mexico Power

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INC )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MCCURDY-MCCUTCHN UNIT 1

  	
   

  	
  Texas New

  	
   

  	
  10400513070010001

  	
   

  	
  SSGN

  	
   

  	
  5.353

  	
   

  	
  46,871

  	
   

  
	
  ( TORCH ENERGY SERVICES

  	
   

  	
  Mexico Power

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INC )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MURKO LSE UNIT H MEN

  	
   

  	
  Texas New

  	
   

  	
  10400513071830001

  	
   

  	
  SSGN

  	
   

  	
  5.353

  	
   

  	
  103

  	
   

  
	
  ( TORCH ENERGY SERVICES

  	
   

  	
  Mexico Power

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INC )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SEALY LSE UNIT #47

  	
   

  	
  Texas New

  	
   

  	
  10400513395180001

  	
   

  	
  SSGN

  	
   

  	
  5.353

  	
   

  	
  22,879

  	
   

  
	
  ( TORCH ENERGY SERVICES

  	
   

  	
  Mexico Power

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INC )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOBE MORTON LSE PUMP

  	
   

  	
  Texas New

  	
   

  	
  10400513072320001

  	
   

  	
  SSGN

  	
   

  	
  5.353

  	
   

  	
  1,203

  	
   

  
	
  ( TORCH ENERGY SERVICES

  	
   

  	
  Mexico Power

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INC )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  This Attachment is based on a Weighted Average Price.
  Any strikeouts of any of the accounts provided with a Weighted Average Price
  will render pricing for the accounts assigned with a Weighted Average Price,
  null and void.

  
	
  Accepted
  and Agreed to:

  	
   

  	
   

  

 

3

 

	
  By:

  	
  /s/
  Randy Ziebarth

  	
   

  	
  Date:

  	
  2-13-2009

  

 

4

 

Notice: Buyer’s execution and submission
of this Pricing Attachment to Direct Energy shall
constitute an offer by Buyer to Direct Energy to purchase Electricity on the
terms set forth in the the Agreement. The Agreement (including this Pricing
Attachment) shall become effective only upon (i) such execution by Buyer
of the Pricing Attachment and the Agreement; and (ii) the earlier of
execution of the Agreement by Direct Energy or written confirmation by Direct
Energy of its acceptance of the Agreement to Buyer.

 

PRICING ATTACHMENT TO POWERSUPPLY COORDINATION SERVICES
AGREEMENT

 

dated February 13, 2009 between

DIRECT ENERGY BUSINESS LLC

and

Resaca Exploitation, Inc.

from the meter read(s) May, 2009 to the meter read(s) May, 2010

ERCOT_CI_FPR_25MAC_TX

 

	
  Location

  	
   

  	
  Host Utility

  	
   

  	
  Account Number

  	
   

  	
  Utility Rate

  Class

  	
   

  	
  Price

  (cents/kWh)

  	
   

  	
  Historical

  Annual

  Usage

  	
   

  
	
  00000 @BLK
  43,TWP2S SEC

  	
   

  	
  TXU Electric

  	
   

  	
  10443720002483361

  	
   

  	
  31

  	
   

  	
  5.353

  	
   

  	
  101,146

  	
   

  
	
  35 ECTOR

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 @BLK 26, SEC 26

  	
   

  	
  TXU Electric

  	
   

  	
  10443720006100347

  	
   

  	
  31

  	
   

  	
  5.353

  	
   

  	
  49,260

  	
   

  
	
  WINKLER CO

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 @BLK 26, SEC 35

  	
   

  	
  TXU Electric

  	
   

  	
  10443720004413699

  	
   

  	
  31

  	
   

  	
  5.353

  	
   

  	
  73,664

  	
   

  
	
  WINKLER CO

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 @BLK B-2, SEC 16

  	
   

  	
  TXU Electric

  	
   

  	
  10443720006943578

  	
   

  	
  11

  	
   

  	
  5.353

  	
   

  	
  12,391

  	
   

  
	
  WINKLER C

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 BLK 26 SEC 26

  	
   

  	
  TXU Electric

  	
   

  	
  10443720006533045

  	
   

  	
  31

  	
   

  	
  5,353

  	
   

  	
  72,778

  	
   

  
	
  WINKLER

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 @BLK 26, SEC 38

  	
   

  	
  TXU Electric

  	
   

  	
  10443720004413606

  	
   

  	
  31

  	
   

  	
  5.353

  	
   

  	
  298,617

  	
   

  
	
  WINKLER CO

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 @BLK30 T1N S43 N/4

  	
   

  	
  TXU Electric

  	
   

  	
  10443720001471923

  	
   

  	
  31

  	
   

  	
  5.353

  	
   

  	
  33,208

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 @BLK30 T1N S48 N/4

  	
   

  	
  TXU Electric

  	
   

  	
  10443720001471830

  	
   

  	
  30

  	
   

  	
  5.353

  	
   

  	
  334,024

  	
   

  
	
  N/2

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 @BLK B-3, SEC 25

  	
   

  	
  TXU Electric

  	
   

  	
  10443720004407933

  	
   

  	
  31

  	
   

  	
  5.353

  	
   

  	
  172,069

  	
   

  
	
  WINKLER C

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 BLK 26 SEC 12

  	
   

  	
  TXU Electric

  	
   

  	
  10443720004408522

  	
   

  	
  11

  	
   

  	
  5,353

  	
   

  	
  51,957

  	
   

  
	
  WINKLER MAIN

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 BLK 26 SEC/11

  	
   

  	
  TXU Electric

  	
   

  	
  10443720004408460

  	
   

  	
  11

  	
   

  	
  5.353

  	
   

  	
  43,911

  	
   

  
	
  WINKLER

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 BLK 26 SEC 12

  	
   

  	
  TXU Electric

  	
   

  	
  10443720004408181

  	
   

  	
  31

  	
   

  	
  5.353

  	
   

  	
  125,028

  	
   

  
	
  WINKLER 3

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 BLK 26 SEC 11

  	
   

  	
  TXU Electric

  	
   

  	
  10443720004407220

  	
   

  	
  31

  	
   

  	
  5.353

  	
   

  	
  36,297

  	
   

  
	
  WINKLER MAIN

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 BLK 26 SEC 12

  	
   

  	
  TXU Electric

  	
   

  	
  10443720004408274

  	
   

  	
  31

  	
   

  	
  5.353

  	
   

  	
  120,274

  	
   

  
	
  WINKLER 2

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

5

 

	
  00000 BLK 26 SEC

  	
   

  	
  TXU Electric

  	
   

  	
  10443720004408305

  	
   

  	
  31

  	
   

  	
  5.353

  	
   

  	
  129,794

  	
   

  
	
  11 /WINKLER

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 BLK 26 SEC 12

  	
   

  	
  TXU Electric

  	
   

  	
  10443720004408615

  	
   

  	
  31

  	
   

  	
  5.353

  	
   

  	
  61,359

  	
   

  
	
  WINKLER 5

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 @BLK 26, SEC 37

  	
   

  	
  TXU Electric

  	
   

  	
  10443720004404740

  	
   

  	
  31

  	
   

  	
  5.353

  	
   

  	
  146,111

  	
   

  
	
  WINKLER CO

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 BLK 26 SEC 38

  	
   

  	
  TXU Electric

  	
   

  	
  10443720004404771

  	
   

  	
  11

  	
   

  	
  5.353

  	
   

  	
  6,658

  	
   

  
	
  WINKLER MAIN

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 @BLK 35, S/2 NW/4

  	
   

  	
  TXU Electric

  	
   

  	
  10443720002967612

  	
   

  	
  31

  	
   

  	
  5.353

  	
   

  	
  279,242

  	
   

  
	
  SEC 9 ECT

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 BLK B 12 SEC 14

  	
   

  	
  TXU Electric

  	
   

  	
  10443720004400276

  	
   

  	
  31

  	
   

  	
  5.353

  	
   

  	
  79,795

  	
   

  
	
  WINKLE MAIN

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 @BLK B-23, CN/L SEC

  	
   

  	
  TXU Electric

  	
   

  	
  10443720002968542

  	
   

  	
  31

  	
   

  	
  5.353

  	
   

  	
  789,464

  	
   

  
	
  2 CRANE

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 @BLK B-5, SEC 28

  	
   

  	
  TXU Electric

  	
   

  	
  10443720004400865

  	
   

  	
  11

  	
   

  	
  5.353

  	
   

  	
  1,197

  	
   

  
	
  WINKLER C

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 BLK B 12 SEC 14

  	
   

  	
  TXU Electric

  	
   

  	
  10443720004400245

  	
   

  	
  05

  	
   

  	
  5.353

  	
   

  	
  23,103

  	
   

  
	
  WINKLE 3

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 BLK 74 SEC 18

  	
   

  	
  TXU Electric

  	
   

  	
  10443720004410072

  	
   

  	
  05

  	
   

  	
  5,353

  	
   

  	
  1,196

  	
   

  
	
  WINKLER MAIN

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 @BLK B-12, SEC 12

  	
   

  	
  TXU Electric

  	
   

  	
  10443720004399873

  	
   

  	
  31

  	
   

  	
  5.353

  	
   

  	
  604,812

  	
   

  
	
  WINKLER

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 @BLK 35, SW/4 SEC 13

  	
   

  	
  TXU Electric

  	
   

  	
  10443720002968294

  	
   

  	
  31

  	
   

  	
  5.353

  	
   

  	
  2,756,200

  	
   

  
	
  ECTOR

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 BLK B3 SEC 8 WINKLER

  	
   

  	
  TXU Electric

  	
   

  	
  10443720006486545

  	
   

  	
  31

  	
   

  	
  5.353

  	
   

  	
  84,854

  	
   

  
	
  C

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 BLK B3 SEC 8 WINKLER

  	
   

  	
  TXU Electric

  	
   

  	
  10443720006486676

  	
   

  	
  11

  	
   

  	
  5.353

  	
   

  	
  23,375

  	
   

  
	
  C MAIN

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 BLK B3 SEC 8 WINKLER

  	
   

  	
  TXU Electric

  	
   

  	
  10443720006486638

  	
   

  	
  31

  	
   

  	
  5.353

  	
   

  	
  76,824

  	
   

  
	
  C3

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00000 BLK 43 T2S SEC 34

  	
   

  	
  TXU Electric

  	
   

  	
  10443720003476105

  	
   

  	
  31

  	
   

  	
  5.353

  	
   

  	
  375,516

  	
   

  
	
  ( PREMISE )

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02600 W INTERSTATE 20

  	
   

  	
  TXU Electric

  	
   

  	
  10443720002463397

  	
   

  	
  05

  	
   

  	
  5.353

  	
   

  	
  475

  	
   

  
	
  WELL

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02600 W INTERSTATE 20

  	
   

  	
  TXU Electric

  	
   

  	
  10443720002463428

  	
   

  	
  17

  	
   

  	
  5.353

  	
   

  	
  49,200

  	
   

  
	
  BLDG

  	
   

  	
  Delivery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ( PREMISE )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  This Attachment is based on a Weighted Average Price.
  Any strikeouts of any of the accounts provided with a Weighted Average Price
  will render pricing for the accounts assigned with a Weighted Average Price,
  null and void.

  
	
  Accepted
  and Agreed to:

  	
   

  	
   

  

 

6

 

	
  By:

  	
  /s/
  Randy Ziebarth

  	
   

  	
  Date:

  	
  2-13-2009

  

 

7Exhibit 10.18

 

RESACA
EXPLOITATION, INC.

 

NONQUALIFIED STOCK OPTION AGREEMENT

(UK ELIGIBLE OPTIONEE)

 

Optionee: John William Sharp Bentley

 

1.             Grant
of Stock Option.   As of the Grant Date (identified in Section 20 below), Resaca
Exploitation, Inc., a Texas corporation (the “Company”) hereby
grants a Nonqualified Stock Option (the “Option”) to the Optionee (identified above), a citizen of the United Kingdom,
and an Outside Director of the Company, to purchase the number of shares of the
Company’s common stock, $0.01 par value per share (the “Common Stock”), identified in Section 20 below (the “Shares”), subject to the terms and conditions of this agreement (the “Agreement”)  and the Resaca
Exploitation, Inc. 2008 Stock Incentive Plan (the “Plan”). The Plan is hereby incorporated herein in its entirety by
reference. The Shares, when issued to Optionee upon the exercise of the Option,
shall be fully paid and nonassessable. The Option is not an “incentive stock
option” as defined in Section 422 of the U.S. Internal Revenue Code.

 

2.             Definitions.   All capitalized terms used herein shall have the meanings set forth in the
Plan unless otherwise provided herein. Section 20 sets forth
meanings for certain of the capitalized terms used in this Agreement.

 

3.             Option
Term.   The Option
shall commence on the Grant Date (identified in Section 20 below) and
terminate on the eighth (8th) anniversary of the Grant Date as specified in Section 20. The period
during which the Option is in effect and may be exercised is referred to herein
as the “Option Period”.

 

4.             Option
Price.   The Option
Price per Share is identified in Section 20.

 

5.             Vesting.   The total number of Shares subject to this
Option shall vest in accordance with the Vesting
Schedule (described in Section 20). The Shares may
be purchased at any time after they become vested, in whole or in part, during
the Option Period; provided, however, the Option may only be exercisable to
acquire whole Shares. The right of exercise provided herein shall be cumulative
so that if the Option is not exercised to the maximum extent permissible after
vesting, the vested portion of the Option shall be exercisable, in whole or in
part, at any time during the Option Period.

 

6.             Method
of Exercise.   The Option
is exercisable by delivery of a written notice to the Secretary of the Company,
signed by the Optionee, specifying the number of Shares to be acquired on, and
the effective date of, such exercise. The Optionee may withdraw notice of
exercise of this Option, in writing, at any time prior to the close of business
on the business day that immediately precedes the proposed exercise date.

 

7.             Method
of Payment.   Subject to
applicable provisions of the Plan, the Option Price upon exercise of the Option
shall be payable to the Company in full either: (i) in cash or its
equivalent; (ii) subject to prior approval by the Committee in its
discretion, by tendering previously acquired Shares having an aggregate Fair
Market Value (as defined in the Plan) at the

 

 

time
of exercise equal to the total Option Price; (iii) subject to prior
approval by the Committee in its discretion, by withholding Shares which
otherwise would be acquired on exercise having an aggregate Fair Market Value
at the time of exercise equal to the total Option Price; or (iv) any other
permitted method pursuant to the applicable terms and conditions of the Plan.

 

As
soon as practicable after receipt of a written notification of exercise and
full payment, the Company shall deliver to or on behalf of the Optionee, in the
name of the Optionee or other appropriate recipient, Share certificates or
other evidence of ownership for the number of Shares purchased under the
Option.

 

8.             Restrictions on Exercise.   The Option may not be exercised if the
issuance of such Shares or the method of payment of the consideration for such
Shares would constitute a violation of any applicable federal or state
securities or other laws or regulations, or any rules or regulations of
any stock exchange on which the Common Stock is listed. In addition, Optionee
understands and agrees that the Option cannot be exercised if the Company
determines that such exercise, at the time of such exercise, will be in
violation of the Company’s insider trading policy.

 

9.             Termination of Employment.   Voluntary or involuntary termination of
Employment shall affect Optionee’s rights under the Option as follows:

 

(a)           Termination for
Cause or Removal from the Board.   The non-vested portion of the Option shall
expire and terminate on the date of termination of Employment and shall not be
exercisable to any extent if Optionee’s Employment is terminated for Cause (as
defined in the Plan at the time of such termination of Employment) or if
Optionee’s Employment is terminated as a result of Optionee’s removal from the Board in any manner except upon
the failure to be re-elected to the Board by the Company’s shareholders. The
vested portion of the Option shall expire on the thirty (30) day anniversary of
the termination of Employment to the extent not previously exercised by Optionee.
In no event may the Option be exercised after the earlier of (i) the
expiration of the Option Period or (ii) the thirty (30) day anniversary of
the date of termination of Employment for Cause or as a result of Optionee’s
removal from the Board in any manner except upon the failure to be re-elected
to the Board by the Company’s shareholders.

 

(b)           Voluntary
Termination.   If
Optionee’s Employment is voluntarily terminated, then (i) the non-vested
portion of the Option shall immediately expire on the termination date and
(ii) the vested portion of the Option shall expire to the extent not
previously exercised within one (1) year after such termination date. In
no event may the Option be exercised by anyone after the earlier of
(i) the expiration of the Option Period or (ii) one (1) year
after the termination of Employment date even if Optionee becomes deceased
during such period.

 

(c)           Death or
Disability.   If
Optionee’s Employment is terminated due to death or Disability (as defined in
the Plan at the time of such termination), then (i) the Option shall
immediately become fully vested on the termination of Employment date and
(ii) the vested portion of the Option shall expire on the one
(1) year anniversary date of the

 

2

 

termination
of Employment date to the extent not previously exercised by Optionee or, in
the case of death, by the person or persons to whom Optionee’s rights under the
Option have passed by will or by the laws of
descent and distribution or, in the case of Disability, by Optionee or
Optionee’s legal representative. In no event may the Option be exercised by
anyone on or after the earlier of (i) the expiration of the Option Period
or (ii) one (1) year after the date of
termination of Employment due to Optionee’s death or Disability.

 

(d)           Other Involuntary
Termination. If Optionee’s Employment is terminated for any reason other
than for Cause, removal from the Board in any manner except upon the failure to
be re-elected to the Board by the Company’s shareholders, death, Disability, or
voluntary termination, then (i) the non-vested portion of the Option shall
immediately become fully vested on the termination of Employment date and
(ii) the vested portion of the Option shall expire to the extent not
previously exercised within one (1) year after such termination date. In
no event may the Option be exercised by anyone after the earlier of
(i) the expiration of the Option Period or (ii) one (1) year
after the termination of Employment date even if Optionee becomes deceased
during such period.

 

10.          Independent Legal and Tax Advice.   Optionee acknowledges that the Company has
advised Optionee to obtain independent legal and tax advice regarding the grant
and exercise of the Option and the disposition of any Shares acquired thereby.

 

11.          Reorganization of Company.   The existence of the Option shall  not affect in
any way the right or power of the Company or its shareholders to make or
authorize any or all adjustments,
recapitalizations, reorganizations or other changes in Company’s capital
structure or its business, or any merger or consolidation of the Company, or
any issue of bonds, debentures, preferred or prior preference stock ahead of or
affecting the Shares or the rights thereof, or the dissolution or liquidation
of the Company, or any sale or transfer of all or any part of its assets or
business, or any other corporate act or proceeding, whether of a similar
character or otherwise.

 

12.          Adjustment of Shares.   In
the  event of stock dividends, spin-offs
of assets or other extraordinary dividends, stock splits, combinations of
shares, recapitalizations, mergers, consolidations, reorganizations,
liquidations, issuances of rights or warrants and similar transactions or
events involving Company, appropriate adjustments shall be made to the terms
and provisions of the Option as provided in the Plan.

 

13.          No Rights in Shares.   Optionee shall have no rights as a shareholder
in respect of the Shares until the Optionee becomes the record holder of such
Shares.

 

14.          Investment Representation.   Optionee will enter into such written representations,
warranties and agreements as Company may reasonably request in order to
comply with any federal or state securities law. Moreover, any stock
certificate for any Shares issued to Optionee hereunder may contain a legend
restricting their transferability as determined by the Company in its
discretion. Optionee agrees that Company shall not be obligated to take any
affirmative action in order to cause the issuance or transfer of Shares
hereunder to comply with any law, rule or regulation that applies to the
Shares subject to the Option.

 

3

 

15.          No Guarantee of Employment.   The Option shall not confer upon Optionee any
right to continued Employment with the Company or any affiliate thereof. If an
Optionee shall cease for any reason to be an Outside Director of the Company
the Optionee shall not be entitled, by way of compensation for loss of office
or otherwise howsoever, to any sum or any benefit to compensate the Optionee for the loss of any right or benefit
accrued or in prospect under the Plan.

 

16.          Withholding of Taxes.   The Company shall have the right to
(a) make deductions from the number of Shares otherwise deliverable upon
exercise of the Option in an amount sufficient to satisfy withholding of any
federal, state, local or foreign taxes required by law, or (b) take such
other action as may be necessary or appropriate to satisfy any such tax
withholding obligations. The provisions of Section 17 shall also
apply.

 

17.          Collection of Tax and National Insurance Contributions.

 

(a)           Where the Company is liable
to account to any tax authority (including HM Revenue & Customs or its
equivalent in an overseas jurisdiction) for any tax (including income tax and
national insurance contributions or their equivalent in an overseas
jurisdiction) payable by the Optionee in respect of or in connection with any
benefit or payments receivable by the Optionee pursuant to this Option (including,
for the avoidance of doubt, as a consequence of the exercise of the Option or
the issue or transfer of the Shares pursuant to exercise) and/or is liable for
any secondary class 1  national insurance contributions in
respect of any such benefits or payments (together, the “Option Tax
Liability”), the Optionee shall make a payment to the Company for an amount
equal to such Option Tax Liability, on demand. The Company shall have the right
to set-off against any amount payable by the Company any amount payable by the
Optionee to the Company under this Option and the Optionee consents to such
set-off.

 

(b)           In relation to the exercise
of the Option or the issue or transfer of any Shares to the Optionee pursuant
to such exercise, the Optionee shall, before the date of exercise of the
Option:

 

(i)            pay
to the Company an amount equal to the Option Tax Liability arising on or in
connection with that event;

 

(ii)           enter
into an agreement with the Company by which the board of directors of the
Company may require that, following the exercise of the Option or any part
thereof, the Shares are allotted or transferred into the name of a nominee for
the Optionee on terms that the nominee is unconditionally required to sell
sufficient Shares and use the sale proceeds (net of expenses) to meet any
obligations of the Company. For the avoidance of doubt, if, for any reason, the
nominee is unable to sell sufficient Shares the Optionee will remain liable
under the indemnity set out in this Section 17 and shall meet that
liability by payment made within 30 days of the Shares being allotted or
transferred;

 

4

 

(iii)          enter
into other arrangements with the Company which shall ensure that an amount
equal to such Option Tax Liability will become payable to the Company within a
period determined by the Company in its absolute discretion; and/or

 

(iv)          if
so required by the Company, enter into an election pursuant to paragraph 3B of
Schedule 1 to the United Kingdom Social Security Contributions and Benefits Act
1992.

 

(c)           The obligations of the
Optionee under Section 17(b) shall be
treated as conditions which must be fulfilled before the Option may be
exercised and the Company shall not be obliged to allot and issue or procure
the transfer of any Shares or any interest in Shares until the Optionee has
complied with such obligations.

 

18.          Personal Data

 

(a)           The Optionee hereby agrees
and consents to:

 

(i)            the
collection, use and processing by the Company of his personal data (which has
the meaning it bears for the purposes of the United Kingdom Data Protection Act
1998) (“Personal Data”), for all purposes reasonably connected with the
administration of this Option and the subsequent registration of the Optionee
or any other person as a holder of Common Stock acquired pursuant to the
exercise of this Option;

 

(ii)           the
Company transferring his Personal Data to or between any of the organisations
forming the Company in any country for all purposes reasonably connected with
the administration of this Option;

 

(iii)          the
use of his Personal Data by any of the organisations forming the Company for
such purposes; and

 

(iv)          the
transfer to and retention of his Personal Data by any third party for such
purposes.

 

(b)           The Company shall handle all
of the Optionee’s records in accordance with the Company’s code of good
practice, although the Optionee may not have rights under data protection law.

 

19.          General.

 

(a)           Notices.   All notices under this Agreement shall be
mailed or delivered by hand to the parties at their respective addresses set
forth beneath their signatures below or at such other address as may be
designated in writing by either of the parties to one another, or to their
permitted transferees if applicable. Notices shall be effective upon receipt.

 

5

 

(b)           Shares Reserved.   The Company shall at all times during the
Option Period reserve and keep available under the Plan such number of Shares
as shall be sufficient to satisfy the requirements of this Option.

 

(c)           Transferability of Option.   The Option is transferable only to the extent
permitted under the Plan at the time of transfer (i) by will or by the
laws of descent and distribution, (ii) by a qualified domestic relations
order (as defined in Section 414(p) of the Internal Revenue Code), or
(iii) to Optionee’s Immediate Family or entities established for the
benefit of, or solely owned by, the Optionee’s Immediate Family, but only to
the extent permitted under the Plan. No right or benefit hereunder shall in any
manner be liable for or subject to any debts, contracts, liabilities,
obligations or torts of Optionee or any permitted transferee thereof.

 

(d)           Amendment and Termination.   No amendment, modification
or termination of this Agreement shall be made at any time without the written
consent of Optionee and Company.

 

(e)           No Guarantee of Tax
Consequences.   The
Company makes no commitment or guarantee that any tax treatment will apply or
be available to Optionee or any other person. The Optionee has been advised,
and provided with the opportunity, to obtain independent legal and tax advice
regarding the grant and exercise of the Option and the disposition of any
Shares acquired thereby.

 

(f)            Severability.   In the event that any provision of this Agreement
shall be held illegal, invalid, or unenforceable for any reason, such provision
shall be fully severable, but shall not affect the remaining provisions of the
Agreement, and the Agreement shall be construed and enforced as if the illegal,
invalid, or unenforceable provision had not been included herein.

 

(g)           Supersedes Prior
Agreements.   This
Agreement shall supersede and replace all prior agreements and understandings,
oral or written, between the Company and the Optionee regarding the grant of the
Options covered hereby.

 

(h)           Governing Law.   This Agreement shall be construed in
accordance with the laws of the State of Texas, without regard to its conflict
of law provisions, to the extent federal law does not supersede and preempt
Texas law.

 

20.          Definitions and Other
Terms.   The following
capitalized terms shall have those meanings set forth opposite them:

 

	
  (a)

  	
   

  	
  Optionee:

  	
  John
  William Sharp Bentley

  
	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Grant
  Date:

  	
  July 17,
  2008

  
	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Shares:

  	
  Three
  Hundred Thousand Nine Hundred Six (322,906) Shares of the Company’s Common
  Stock.

  
	
   

  	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  Option
  Price:

  	
  £1.30
  per Share.

  

 

6

 

	
  (e)

  	
   

  	
  Option
  Period:

  	
  July 17,
  2008 through July 17, 2016 (until 5:00 p.m. CST).

  
	
   

  	
   

  	
   

  	
   

  
	
  (f)

  	
   

  	
  Vesting
  Schedule:

  	
  Options
  covered by this Option Agreement shall become vested, provided that, 

  
	
   

  	
   

  	
  subject
  to Section 9, Optionee is then, and
  continuously from the Grant Date has been, an Outside Director of the
  Company, in accordance with the following schedule:

  

 

	
   

  	
  Vesting Date

  	
   

  	
  Vested %

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  First Anniversary of the
  Grant Date

  	
   

  	
  33 1/3

  	
  %

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Second Anniversary of the
  Grant Date

  	
   

  	
  33 1/3

  	
  %

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Third Anniversary of the
  Grant Date

  	
   

  	
  33 1/3

  	
  %

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Total

  	
   

  	
  100

  	
  %

  	
   

  	
   

  

 

Notwithstanding the above vesting schedule, in the
event of a “Change in Control” of the Company (as defined in the Plan at the
time of such event), the non-vested portion of the Option shall become
immediately 100% vested as of the Change in Control date.

 

[Signature page follows.]

 

7

 

IN WITNESS WHEREOF, the Company, as
of the Grant Date, has caused this Agreement to be executed on its behalf by
its duly authorized officer and Optionee has hereunto executed this Agreement
as of the same date.

 

	
   

  	
  RESACA EXPLOITATION, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Lendrum, III

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  John J. Lendrum, III

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address
  for Notices:

  
	
   

  	
   

  
	
   

  	
  Resaca
  Exploitation, Inc.

  
	
   

  	
  1331 Lamar Street,
  Suite 1450

  Houston, TX 77010 USA

  Attn: General Counsel

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  OPTIONEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ John William Sharp
  Bentley

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
  Address
  for Notices:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

8

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