Document:

EXTR 8K 050814 EX 10.1

May 2, 2014

Dear Ken,

We are pleased to offer you a position with Extreme Networks, Inc. (the “Company”) as SVP, Chief Financial Officer, reporting to Chuck Berger. Should you decide to join Extreme Networks, you will receive a semi-monthly salary of $15,417 (which would equal $370,000 on an annualized basis), less applicable taxes and withholdings, in accordance with the Company’s normal payroll procedures.
 
Executive Incentive Plan

Commencing on your Hire Date (on a pro rata basis for the quarter in progress), you will be eligible to participate in the Executive Incentive Plan (“EIP”) with an annual target of 70% of your annual base salary.  

Equity Compensation

As a Company employee, you are also eligible to receive certain employee benefits including stock options.  Subject to the approval of the Board or the Compensation Committee, we are pleased to offer you a one-time option to acquire 268,000 shares of common stock (the “Options”). Generally, grants are reviewed for approval once a quarter, and are awarded at an exercise price equal to the closing price of the Company’s common stock on the second business day after we publicly announce our financial results for the quarter. One-fourth (1/4) of these shares will vest one year from your first date of employment, provided that you are still employed by the Company at that time. The remaining shares will vest monthly over the following three years, at a rate of 1/48th of the entire option each month, so long as your employment with the Company continues.  In addition you will receive a grant of 117,000 shares of restricted stock that will vest in three installments of one-third of the shares on your first anniversary, one-third on your second anniversary of employment, and one-third on your third anniversary of employment.  All vesting and rights to exercise under any Options or Restricted Stock offered hereunder will also be subject to your continued employment with the Company at the time of vesting. Your equity awards are also subject to the terms of our Executive Change in Control Severance Plan.

You may exercise any Options no later than the ninetieth day following the cessation of your service to the Company.  Your Option grant and any Restricted Stock grant are each further conditioned on your execution of the Company’s standard form of employee stock option and restricted stock agreement, respectively, and will be governed by and subject to the terms of those agreements. 

Executive Change in Control Severance
The Company also has a policy of providing a Change in Control Severance Plan for its executive officers in the event of an acquisition of the Company. Those provisions will be set forth in your Executive Change in Control Severance Agreement and will be the same as those standard terms currently in effect for the other executive officers of the Company with your benefit including a payment equal to 12 months of salary.  A copy of the Change in Control Severance Plan and related Participation Agreement is enclosed for your information. 
Termination Other than for Cause
If your employment is terminated by the Company other than for Cause not related to a Change in Control, you will be entitled to receive a severance payment equal to 12 months of your base salary as of your date of termination and up to 12 months of COBRA subsidy.  Such consideration shall be conditioned in its entirety upon your release of claims against the Company Group.  Your release of claims document must be executed and become irrevocable 

within sixty (60) days of your termination and the payment due to you shall be paid within 30 days following the date the release has become irrevocable.   “Cause” means the occurrence of any of the following: 
(1) your theft, dishonesty, misconduct, breach of fiduciary duty for personal profit, or falsification of any documents or records of the Company and each present or future parent and subsidiary corporation or other business entity thereof (a “Company Group”); 
(2) your material failure to abide by the code of conduct or other policies (including, without limitation, policies relating to confidentiality and reasonable workplace conduct) of any member of the Company Group; 
(3) your misconduct within the scope of Section 304 of the Sarbanes-Oxley Act of 2002 as a result of which of the Company is required to prepare an accounting restatement; 
(4) your unauthorized use, misappropriation, destruction or diversion of any tangible or intangible asset or corporate opportunity of a member of the Company Group (including, without limitation, your improper use or disclosure of the confidential or proprietary information of a member of the Company Group); 
(5) any intentional act by you which has a material detrimental effect on reputation or business of a member of the Company Group; 
(6) your repeated failure or inability to perform any reasonable assigned duties after written notice from a member of the Company Group of such failure or inability; 
(7) any material breach by you of any employment, non-disclosure, non-competition, non-solicitation or other similar agreement between you and a member of the Company Group, which breach is not cured pursuant to the terms of such agreement or as provided herein; or 
(8) your conviction (including any plea of guilty or nolo contendere) of any criminal act involving fraud, dishonesty, misappropriation or moral turpitude, or which impairs your ability to perform your duties with a member of the Company Group, 
provided, however, that prior to any determination that “Cause” has occurred with regard to clauses (1) through (7) above, the Company shall (i) provide to you written notice specifying the particular event or actions giving rise to such determination and (ii) provide you an opportunity to be heard within 15 days of such notice and (iii) provide you with a 15 days to cure such event or actions giving rise to a determination of “Cause”, if curable. 
Notwithstanding anything in this agreement to the contrary, the severance payments discussed in this agreement (to the extent that they constitute “deferred compensation” under Section 409A of the Internal Revenue Code (the “Code”) and applicable regulations), and any other amount or benefit that would constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code and that would otherwise be payable hereunder by reason of your termination of employment, will not be payable to you by reason of such circumstance unless the circumstances giving rise to such termination of employment meet any description or definition of “separation from service” in Section 409A of the Code and applicable regulations (without giving effect to any elective provisions that may be available under such definition).  This provision does not prohibit the vesting or the determination of the amounts owed to you due to such termination, and if this provision prevents the payment of any amount or benefit to you, such payment shall be made on the date, on which an event occurs that constitutes a Section 409A “separation from service”.
Additional Benefits
In addition to the foregoing benefits, you will be eligible to participate in various other Company benefit plans, including its group health, short-term disability, long-term disability, and life insurance plans, as well as its 401(k) and employee stock purchase plans. Your participation in the Company’s benefit plans will be subject to the terms and conditions of the specific benefit plans. As a Senior Vice President of the Company, you are not eligible to participate in the Company’s Paid Time Off (“PTO”) program, and you will not accrue any PTO hours. You will, 

however, be eligible to take paid time off from time-to-time as reasonably necessary for vacation, sick time, or other personal purposes, subject to the needs of your position and the approval of your manager. 
Employment at Will
If you choose to accept this offer, your employment with the Company will be voluntarily entered into and will be for no specified period. As a result, you will be free to resign at any time, for any reason or for no reason, as you deem appropriate. The Company will have a similar right and may conclude its employment relationship with you at any time, with or without cause.  
Hire Date and Outside Activities
You agree to terminate any other consulting or similar engagement you may now have by your hire date of June 2nd, 2014 (“Hire Date”).  You further agree to limit your outside board positions to no more than two companies, which positions will be cleared with the General Counsel of the Company before committed to.
Arbitration
In the event of any dispute or claim relating to or arising out of this agreement, our employment relationship, or the termination of our employment relationship (including, but not limited to, any claims of wrongful termination or age, gender, disability, race or other discrimination or harassment), you and the Company agree that all such disputes shall be fully, finally and exclusively resolved by binding arbitration conducted by the American Arbitration Association (“AAA”) in Santa Clara County, California, and we waive our rights to have such disputes tried by a court or jury. The arbitration will be conducted by a single arbitrator appointed by the AAA pursuant to the AAA’s then-current rules for the resolution of employment disputes, which can be reviewed at www.adr.org. 
Background Check and Employee Innovations and Proprietary Rights Assignment Agreement 
This offer is contingent upon the completion of a customary background check with the results being satisfactory to the Company, your signing the enclosed Employee Innovations and Proprietary Rights Assignment Agreement, and upon your ability to provide to the Company documentary evidence of your identity and eligibility for employment in the United States.  Please bring this documentation, such as a passport or driver’s license and an original social security card, to your Employee Orientation. Such documentation must be provided to us within three (3) business days of your date of hire, or our employment relationship with you may be terminated. 
Acceptance
To indicate your acceptance of the Company’s offer, please sign and date this letter in the space provided below and return to Kelley Steven-Waiss, Senior Vice President of Human Resources at Extreme Networks, Inc. at 145 Rio Robles, San Jose, CA 95134. 
This offer of employment, if not accepted, will expire in 5 business days. 
All new employees receive a benefits package from the Human Resources Department. If you have any benefit related questions, please contact Kelley Steven-Waiss 408-579-2603 or kswaiss@extremenetworks.com. 
This agreement, along with any agreements referenced above, constitute the entire agreement between you and the Company concerning the terms and conditions of your employment with the Company. This agreement cannot be modified or amended except by a subsequent written agreement signed by you and the Company; provided, however, that the Company may, in its sole discretion, elect to modify your title, compensation, duties, or benefits without any further agreement from you. 

Ken, we look forward to welcoming you to Extreme Networks and we believe you will make an important contribution to the company, in what should be a rich and rewarding experience. If you have any questions, please feel free to contact me. 

Sincerely, 
 
	
	
	/s/ Charles W. Berger

	EXTREME NETWORKS, INC.
Charles W. Berger
CEO

I agree to and accept employment with Extreme Networks, Inc. on the terms set forth in this agreement. 
 
	
					
	/s/ Ken Arola
	 
	 
	 
	May 2, 2014

	Ken Arola
	 
	 
	  
	DateExhibit 10.17 First Amendment to First Amended and Restated Revolver Loan Agreement

Exhibit 10.17

FIRST AMENDMENT TO FIRST AMENDED AND RESTATED

REVOLVER LOAN AGREEMENT

THIS FIRST AMENDMENT TO FIRST AMENDED AND RESTATED REVOLVER LOAN AGREEMENT dated effective as of May 1, 2014 (this "First Amendment"), is made and entered into between RING ENERGY, INC., a Nevada corporation ("Borrower"), and PROSPERITY BANK, a Texas banking association, successor by merger to The F&M Bank & Trust Company (the "Bank").

WITNESSETH:

WHEREAS, the Borrower and the Bank are parties to that certain First Amended and Restated Revolver Loan Agreement dated as of October 30, 2013 (the "Existing Loan Agreement"), pursuant to which the Bank established a revolving line of credit in favor of the Borrower in the current maximum principal amount of Thirty Million Five Hundred Thousand and No/100 Dollars ($30,000,000.00), subject to the existing Revolver Commitment Amount ($10,000,000.00) until the Revolver Final Maturity Date (October 30, 2015 (the "Existing Revolver Commitment"); and

WHEREAS, the Borrower has requested the Bank to increase the Existing Revolver Commitment to the increased maximum principal amount of Fifty Million Dollars ($50,000,000.00), subject to the Revolver Commitment Amount and the Collateral Borrowing Base (each to be initially increased to $25,000,000); and

WHEREAS, subject to the terms, provisions and conditions hereinafter set forth, the Bank is willing to increase the Existing Revolver Commitment until the existing Revolver Final Maturity Date in the increased maximum principal amount of Fifty Million and No/100 Dollars ($50,000,000.00), subject to the Revolver Commitment Amount and the Collateral Borrowing Base.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, receipt of which is acknowledged by the parties hereto, the parties agree to amend the Existing Loan Agreement as follows:

1.

Definitions.  Any capitalized term used herein (including in the recitals hereto) but not otherwise defined shall have the meaning given to such term in the Existing Loan Agreement.  In addition, the following definitions in Article I of the Existing Loan Agreement are hereby replaced in their entirety, respectively:

"Base Rate" means the rate of interest published in the "Bonds, Rates and Yields" section of the money rates column of the Wall Street Journal (Southwest Edition) as its prime rate or base rate  on corporate loans at large U.S. money center banks or a similar rate if such rate ceases to be published or announced, in which event the Bank may select as the alternate rate such other announced and/or published prime rate or base rate for corporate loans of a New York, New York money center bank that the Bank deems in its sole discretion to be most comparable to the no longer announced or published prime or base rate. The Base Rate is not necessarily the best or lowest rate charged by the Bank from time to time.

"Revolver Commitment Amount" shall be the maximum outstanding principal amount plus Letter of Credit Exposures the Bank agrees from time to time to make available under the Revolver Commitment (currently stipulated to be equal to $25,000,000.00).

Revolver Commitment.  The Revolver Commitment is hereby increased to the maximum principal amount of $50,000,000.00 until the Revolver Final Maturity Date, subject to the restrictions contained in the Existing Loan Agreement, as amended by this First Amendment (as amended, the "Loan Agreement"), including the Collateral Borrowing Base and the Revolver Commitment Amount (each stipulated to initially be adjusted to the amount of $25,000,000.00).

2.

Replacement Revolver Note.  Section 2.2 of the Existing Loan Agreement is hereby amended to provide that the Borrower's obligation to repay the Revolver Loan advances made under the Revolver Commitment, together with interest accruing thereon, shall be evidenced by the Borrower's promissory note dated as of even date herewith, made payable to the order of the Bank in the face principal amount of $50,000,000, in form, content and substance acceptable to the Bank (the "Replacement Revolver Note").  All references in the Existing Loan Agreement to "Revolver Note" shall hereafter mean the Replacement Revolver Note.

3.

Third Party Reserve Report.  Section 4.1 (Semiannual Engineering Reports) of the Existing Loan Agreement is amended and modified to provide that the reserve report submitted to the Bank by each March 31, commencing March 31, 2015, shall be a third party engineering report from an individual or firm of reputable independent petroleum engineers reasonably acceptable to the Bank 

4.

Ratification.  The remaining terms, provisions and conditions set forth in the Existing Loan Agreement shall remain in full force and effect for all purposes and are incorporated herein by reference. The Borrower restates, confirms, adopts and ratifies the warranties, covenants and representations set forth therein and further represents to the Bank that, as of the date hereof, no Default or Event of Default exists under the Loan Agreement (including this First Amendment).  The Borrower further confirms, grants and re-grants, pledges and re-pledges to the Bank a continuing and continuous, first priority security interest in and pledge of all of the items and types of Collateral more particularly described in Article III of the Existing Loan Agreement and in the Security Instruments as continuing security and collateral for the Revolver Commitment and the Indebtedness created pursuant thereto and as evidenced by the Replacement Revolver Note. 

5.

Closing.  The Borrower shall execute and deliver, or cause to be executed and delivered to the Bank, each of the following as express conditions precedent to the effectiveness of the amendments and modifications contemplated by this First Amendment:

(a)

This First Amendment;

(b)

The Replacement Revolver Note;

(c)

The additional twenty five basis points (0.25%) fully earned and non-refundable loan origination fee owed by the Borrower to the Bank pursuant to Section 2.4 of the Loan Agreement on the increased amount ($15,000,000.00) of the Revolver Commitment Amount in immediately available U. S. Dollars ($37,5000.00);

(d)

Any amendments, modifications or supplements of the existing Security Instruments as deemed necessary or appropriate by the Bank to secure the Revolver Commitment and the Indebtedness as described and defined in the Loan Agreement; and

(e)

Closing certificate of the Borrower in form, scope and content acceptable to the Bank.

6.

SUBMISSION TO JURISDICTION.  BORROWER HEREBY CONSENTS TO THE JURISDICTION OF ANY OF THE LOCAL, STATE, AND FEDERAL COURTS LOCATED WITHIN TULSA COUNTY, OKLAHOMA AND WAIVES ANY OBJECTION WHICH BORROWER MAY HAVE BASED ON IMPROPER VENUE OR FORUM NON CONVENIENS TO THE CONDUCT OF ANY PROCEEDING IN ANY SUCH COURT REGARDING THE LOAN AGREEMENT (INCLUDING THIS FIRST AMENDMENT), THE REPLACEMENT REVOLVER NOTE, AND THE OTHER LOAN DOCUMENTS (INCLUDING SECURITY INSTRUMENTS).

7.

Expenses.  The Borrower agrees to pay to the Bank on demand all reasonable and documented costs, fees and expenses (including without limitation reasonable attorneys fees and legal expenses) incurred or accrued by the Bank in connection with the negotiation, preparation, execution, delivery, filing, recording and administration of the Loan Agreement (including this First Amendment), the Replacement Revolver Note, the Security Instruments and the other Loan Documents, or any amendment, waiver, consent or modification thereto or thereof, or any enforcement thereof.  The Borrower further agrees that all such fees and expenses shall be paid regardless of whether or not the transactions provided for in this First Amendment are eventually closed and regardless of whether or not any or all sums evidenced by the Replacement Revolver Note are advanced to the Borrower by the Bank.  Upon the Borrower's failure to pay all such costs and expenses within fifteen (15) days of the Bank's submission of invoices therefore, the Bank shall pay such costs and expenses by debit to the general account of the Borrower without further notice to the Borrower. In any action to enforce or construe the provisions of the Loan Agreement or any of the Loan Documents, the prevailing party shall be entitled to recover its reasonable attorneys' fees and all costs and expenses related thereto.

8.

Counterparts.  This First Amendment may be executed in multiple counterparts, each of which, when so executed, shall constitute an original copy.  Transmission by facsimile of an executed counterpart of this First Amendment by any party shall be deemed to constitute due and sufficient delivery of such counterpart and such facsimile shall be deemed to be an original counterpart of this First Amendment.

9.

WAIVER OF SPECIAL DAMAGES.  BORROWER WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT BORROWER MAY HAVE TO CLAIM OR RECOVER FROM THE BANK IN ANY LEGAL ACTION OR PROCEEDING ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.

10.

WAIVER OF JURY TRIALBORROWER FULLY, VOLUNTARILY AND EXPRESSLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THE LOAN AGREEMENT (INCLUDING THIS FIRST AMENDMENT), THE REPLACEMENT REVOLVER NOTE, THE SECURITY INSTRUMENTS OR UNDER ANY AMENDMENT, SUPPLEMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED (OR WHICH MAY IN THE FUTURE BE DELIVERED) IN CONNECTION HEREWITH OR ARISING FROM ANY BANKING RELATIONSHIP EXISTING IN CONNECTION WITH THE LOAN AGREEMENT (INCLUDING THIS FIRST AMENDMENT).  BORROWER AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.  BORROWER ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTERING INTO THIS FIRST AMENDMENT, THAT BANK HAS RELIED ON THIS WAIVER IN ENTERING INTO THIS FIRST AMENDMENT AND THAT BANK WILL CONTINUE TO RELY ON THIS WAIVER OF JURY TRIAL IN THIS AND RELATED FUTURE TRANSACTIONS.  BORROWER FURTHER WARRANTS AND REPRESENTS THAT IT HAS HAD OPPORTUNITY TO REVIEW THIS JURY TRIAL WAIVER WITH LEGAL COUNSEL, AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS.

11.

Release.  In consideration of the amendments contained herein, Borrower hereby waives and releases the Bank from any and all claims and defenses, known or unknown, as of the effective date of this First Amendment, with respect to the Loan Agreement and the Loan Documents and the transactions contemplated thereby.

[Signature Page Follows]

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed and delivered in Tulsa, Oklahoma, effective as of the day and year first above written.

RING ENERGY, INC.,

a Nevada corporation

By /s/ William R. Broaddrick

William R. Broaddrick, 

Chief Financial Officer

"Borrower"

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed and delivered in Tulsa, Oklahoma, effective as of the day and year first above written.

PROSPERITY BANK, successor by merger to

The F&M Bank & Trust Company

By /s/ Henry Smith

Henry Smith, 

Vice President

"Bank"

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