Document:

exv10w1

EXHIBIT 10.1

Execution Version

FIRST AMENDMENT TO CREDIT AGREEMENT

     This FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into as of
March 8, 2010, by and among JOHN B. SANFILIPPO & SON, INC., a Delaware corporation (the
“Borrower”), the lenders identified on the signature pages hereof (such lenders, together
with their respective successors and permitted assigns, are referred to hereinafter each
individually as a “Lender” and collectively as the “Lenders”), and WELLS FARGO
CAPITAL FINANCE, LLC (f/k/a Wells Fargo Foothill, LLC), a Delaware limited liability company, as
administrative agent (in such capacity “Agent”) and as a Lender. Unless otherwise
specified herein, capitalized terms used in this Amendment shall have the meanings ascribed to them
by the Credit Agreement (defined below).

RECITALS

     WHEREAS, the Borrower, Agent, the Lenders and Wachovia Capital Finance Corporation (Central),
an Illinois corporation, as documentation agent, have entered into that certain Credit Agreement,
dated as of February 7, 2008 (as amended, supplemented, restated or otherwise modified from time to
time, the “Credit Agreement”); and

     WHEREAS, on the terms and subject to the conditions set forth herein, the Borrower, Agent and
Lenders have agreed to amend the Credit Agreement as more fully described below;

     NOW THEREFORE, in consideration of the foregoing, mutual agreements contained herein and for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Borrowers, Agent and Lenders hereby agree as follows:

     SECTION 1. Amendment.

     (a) Schedule 1.1 to the Credit Agreement is hereby amended by amending and
restating the following defined terms to read in their entirety as follows:

     “‘Average Excess Availability’ means, as of any relevant date of
determination in any calendar week, Excess Availability determined on a seven
(7)-day average basis for the immediately preceding week for which a Borrowing Base
Certificate has been delivered by Borrower (using weekly adjustments for Accounts
and monthly adjustments for Inventory) in accordance with the Agent’s normal
availability tracking procedures; provided that the amount of such Excess
Availability shall not be limited by the Maximum Revolver Amount or the Inventory
Sublimit.

     ‘Base Rate Margin’ means, as of any date of determination, the
following percentages per annum, based upon Average Margin Availability:

	 	 	 	 	 	 	 
	Level	 	Average Margin Availability	 	Base Rate Margin
	I

	 	< $20,000,000
	 	 	0.50	%
	II

	 	≥ $20,000,000 but < $30,000,000
	 	 	0.25	%
	III

	 	≥ $30,000,000
	 	 	0.00	%

 

			
	***	 	Portions of this exhibit have been omitted under a request for confidential
treatment pursuant to Rule 24b-2 of the Securities and Exchange Act of 1934 and filed separately
with the United States Securities and Exchange Commission.

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     After the First Amendment Effective Date, the Base Rate Margin shall be
adjusted in accordance with the foregoing on the first day of each calendar month.

     ‘EBITDA’ means, with respect to any fiscal period, (a) Borrower’s
consolidated net earnings (or loss), minus (b)(i) extraordinary gains, and (ii)
interest income for such period, plus (c)(i) interest expense, (ii) income taxes,
(iii) depreciation and amortization, (iv) other non-cash expenses, charges and
losses (including, without limitation, stock option expenses, retirement plan
expense, impairment charges and charges and losses arising from accounting
pronouncements), (v) extraordinary or nonrecurring non-cash losses for such period,
and (vi) fees, expenses and prepayment premiums incurred in connection with the
consummation of the financing provided under this Agreement and the Term Loan
Agreement, in each case, determined on a consolidated basis in accordance with GAAP.
For the purposes of calculating EBITDA for any period, (a) if, at any time during
such period, Borrower or any of its Subsidiaries shall have made a Permitted
Acquisition, EBITDA for such period shall be calculated after giving pro forma
effect thereto (including pro forma adjustments arising out of events which are
directly attributable to such Permitted Acquisition, are factually supportable, and
are expected to have a continuing impact, in each case to be mutually and reasonably
agreed upon by Borrower and Agent) as if any such Permitted Acquisition or
adjustment occurred on the first day of such period).

     ‘Fixed Charges’ means, with respect to any fiscal period and with
respect to Borrower determined on a consolidated basis in accordance with GAAP, the
sum, without duplication, of (a) Interest Expense paid in cash during such period,
(b) regularly scheduled principal payments of Indebtedness during such period and
(c) earnout payments made during such period on Indebtedness permitted pursuant to
Section 6.1(h).

     ‘Fixed Charge Coverage Ratio’ means, with respect to Borrower for any
period, the ratio of (i) EBITDA for such period, minus Capital Expenditures not
financed with the proceeds of Indebtedness and made (to the extent not already
incurred in a prior period) or incurred during such period, minus all federal,
state, and local income taxes paid in cash during such period, plus, to the extent
not already included in EBITDA, cash tax refunds and receipts for such period to
(ii) Fixed Charges for such period.

     ‘Indebtedness’ means (a) all obligations for borrowed money, (b) all
obligations evidenced by bonds, debentures, notes, or other similar instruments and
all reimbursement or other obligations in respect of letters of credit, bankers
acceptances, or other financial products, (c) all obligations as a lessee under
Capital Leases, (d) all obligations or liabilities of others secured by a Lien on
any asset of a Person or its Subsidiaries, irrespective of whether such obligation
or liability is assumed, (e) earnouts and all other obligations to pay the deferred
purchase price of assets (other than trade payables incurred in the ordinary course
of business and repayable in accordance with customary trade practices), (f) all
obligations owing under Hedge Agreements, and (g) any obligation guaranteeing or
intended to guarantee (whether directly or indirectly guaranteed, endorsed, co-made,
discounted, or sold with recourse) any obligation of any other Person that
constitutes Indebtedness under any of clauses (a) through (f) above.

     ‘L/C Margin’ means, as of any date of determination, the following
percentages per annum, based upon Average Margin Availability:

	 	 	 	 	 	 	 
	Level	 	Average Margin Availability	 	L/C Margin
	I

	 	< $20,000,000
	 	 	2.50	%
	II

	 	≥ $20,000,000 but < $30,000,000
	 	 	2.25	%
	III

	 	≥ $30,000,000
	 	 	2.00	%

 

			
	***	 	Portions of this exhibit have been omitted under a request for confidential
treatment pursuant to Rule 24b-2 of the Securities and Exchange Act of 1934 and filed separately
with the United States Securities and Exchange Commission.

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     After the First Amendment Effective Date, the L/C Margin shall be adjusted in
accordance with the foregoing on the first day of each calendar month.

     ‘LIBOR Rate Margin’ means, as of any date of determination, the
following percentages per annum, based upon Average Margin Availability:

	 	 	 	 	 	 	 
	Level	 	Average Margin Availability	 	LIBOR Rate Margin
	I

	 	< $20,000,000
	 	 	3.00	%
	II

	 	≥ $20,000,000 but < $30,000,000
	 	 	2.75	%
	III

	 	≥ $30,000,000
	 	 	2.50	%

     After the First Amendment Effective Date, the LIBOR Rate Margin shall be
adjusted in accordance with the foregoing on the first day of each calendar month.

     ‘Term Loan’ means, collectively, (a) the term loans made to Borrower
pursuant to the Term Loan Agreement on the Closing Date in an aggregate outstanding
principal amount not to exceed $45,000,000 and (b) additional term loans made to the
Borrower pursuant to the Term Loan Agreement on or after the First Amendment
Effective Date in an aggregate principal amount not to exceed $20,000,000.”

     (b) Clause (e)(iii) of the definition of “Borrowing Base” contained in
Schedule 1.1 to the Credit Agreement is hereby amended and restated to read in its
entirety as follows:

     “(iii) (A) at any time during the months of January, February, March, October,
November and December, $100,000,000 and, (B) at all other times, $92,500,000 (in
each case, the “Inventory Sublimit”), plus”

     (c) Clause (i) of the definition of “Eligible Accounts” contained in
Schedule 1.1 to the Credit Agreement is hereby amended and restated to read in its
entirety as follows:

     “(i) Accounts with respect to an Account Debtor whose total obligations owing
to Borrower exceed 10%, or with respect to (i) Wal-Mart Stores, Inc. (and its
subsidiaries and affiliates), 25%, (ii) Costco Wholesale Corporation or Safeway,
Inc. (and their respective subsidiaries and affiliates), 15%, or (iii) Target
Corporation (and its subsidiaries and affiliates), only so long as it has a rating
of Baa3 or higher from Moody’s or BBB- or higher from S&P, 20% (each such
percentage, as applied to a particular Account Debtor, being subject to reduction by
Agent in its Permitted Discretion if the creditworthiness of such Account Debtor
deteriorates), of all Eligible Accounts, to the extent of the obligations owing by
such Account Debtor in excess of such percentage; provided, however,
that, in each case, the amount of Eligible Accounts that are excluded because they
exceed the foregoing
percentage shall be determined by Agent based on all of the otherwise Eligible
Accounts prior to giving effect to any eliminations based upon the foregoing
concentration limit,”

     (d) The definition of “Eligible Equipment” set forth in Schedule 1.1 to the
Credit Agreement is hereby amended by deleting the word “or” at the end of clause
(c) thereof, deleting the

 

			
	***	 	Portions of this exhibit have been omitted under a request for confidential
treatment pursuant to Rule 24b-2 of the Securities and Exchange Act of 1934 and filed separately
with the United States Securities and Exchange Commission.

3

 

“.” at the end of clause (d) thereof and replacing it with “;
or” and inserting a new clause (e) to read in its entirety as follows:

     “(e) it was acquired in connection with a Permitted Acquisition, until the
completion of an appraisal and field examination of such Equipment, in each case,
reasonably satisfactory to Agent (which appraisal and field examination may be
conducted prior to the closing of such Permitted Acquisition).”

     (e) The definition of “Eligible Inventory” set forth in Schedule 1.1 to the
Credit Agreement is hereby amended by deleting the word “or” at the end of clause
(f) thereof, deleting the “.” at the end of clause (g) thereof and replacing it
with “; or” and inserting a new clause (h) to read in its entirety as follows:

     “(h) it was acquired in connection with a Permitted Acquisition, until the
completion of a field examination (and, if required by the Lenders, an appraisal;
provided that [***]) of such Inventory, in each case, reasonably
satisfactory to Agent (which field examination (and, if applicable, appraisal) may
be conducted prior to the closing of such Permitted Acquisition).”

     (f) The definition of “Permitted Dispositions” set forth in Schedule 1.1 to the
Credit Agreement is hereby amended by deleting the word “and” at the end of clause (d)
thereof and inserting “,” in its place, deleting the “.” at the end of clause (e) thereof
and replacing it with “; and” and inserting a new clause (f) to read in its entirety as
follows:

     “(f) dispositions of assets acquired by Borrower or its Subsidiaries pursuant
to a Permitted Acquisition consummated within 12 months of the date of the proposed
Disposition (the “Subject Permitted Acquisition”) so long as (i) the
consideration received for the assets to be so disposed is at least equal to the
fair market value thereof, (ii) the assets to be so disposed are not necessary or
economically desirable in connection with the business of Borrower and its
Subsidiaries, and (iii) the assets to be so disposed are readily identifiable as
assets acquired pursuant to the Subject Permitted Acquisition.”

     (g) The definition of “Permitted Investments” set forth in Schedule 1.1 to the
Credit Agreement is hereby amended by deleting the word “and” at the end of clause
(c) thereof, deleting the “.” at the end of clause (d) thereof and replacing it
with “;” and inserting new clauses (e) and (f) to read in their entirety as
follows:

     “(e) Permitted Acquisitions; and (f) Investments held by a Person acquired in a
Permitted Acquisition to the extent that such Investments were not made in
contemplation of or in connection with such Permitted Acquisition and were in
existence on the date of such Permitted Acquisition.”

     (h) The definition of “Permitted Liens” set forth in Schedule 1.1 to the Credit
Agreement is hereby amended by deleting the word “and” at the end of clause (n)
thereof, deleting the “.” at the end of clause (o) thereof and replacing it with “;”
and inserting new clauses (p) and (q) to read in their entirety as follows:

     “(p) Liens solely on any cash earnest money deposits made by Borrower or any of
its Subsidiaries in connection with any letter of intent or purchase agreement with
respect to a Permitted Acquisition; and

 

			
	***	 	Portions of this exhibit have been omitted under a request for confidential
treatment pursuant to Rule 24b-2 of the Securities and Exchange Act of 1934 and filed separately
with the United States Securities and Exchange Commission.

4

 

     (q) Liens on Equipment and/or Real Property to the extent securing Indebtedness
(other than earnout obligations) permitted pursuant to Section 6.1(h);
provided that (i) any such Lien is not incurred in connection with or in
anticipation of the related Permitted Acquisition and (ii) such Lien attaches solely
to the Equipment or Real Property acquired in such Permitted Acquisition and the
proceeds thereof.”

     (i) Schedule 1.1 to the Credit Agreement is hereby amended by inserting the
following defined terms in alphabetical order:

     “‘Acquisition’ means (a) the purchase or other acquisition by a Person
or its Subsidiaries of all or substantially all of the assets of (or any division or
business line of) any other Person, or (b) the purchase or other acquisition
(whether by means of a merger, consolidation, or otherwise) by a Person or its
Subsidiaries of all or substantially all of the Stock of any other Person.

     ‘First Amendment’ means the certain First Amendment to Credit
Agreement, dated as of March 8, 2010, by and among the Borrower, the Agent and each
Lender party thereto.

     ‘First Amendment Effective Date’ means March 8, 2010.

     [***]

     ‘Permitted Acquisition’ means any Acquisition so long as:

     (a) no Default or Event of Default shall have occurred and be continuing or
would result from the consummation of the proposed Acquisition and the proposed
Acquisition is consensual,

     (b) no Indebtedness will be incurred, assumed, or would exist with respect to
Borrower or its Subsidiaries as a result of such Acquisition, other than
Indebtedness permitted under clause (c), (f), (g) or
(h) of Section 6.1 and no Liens will be incurred, assumed, or would
exist with respect to the assets of Borrower or its Subsidiaries as a result or such
Acquisition other than Permitted Liens,

     (c) Borrower has provided Agent with written confirmation, supported by
reasonably detailed calculations, that on a pro forma basis (including pro forma
adjustments arising out of events which are directly attributable to such proposed
Acquisition, are factually supportable, and are expected to have a continuing
impact, in each case, determined as if the combination had been accomplished at the
beginning of the relevant period; such eliminations and inclusions to be mutually
and reasonably agreed upon by Borrower and Agent) created by adding the historical
combined financial statements of Borrower (including the combined financial
statements of any other Person or assets that were the subject of a prior Permitted
Acquisition during the relevant period) to the historical consolidated financial
statements of the Person to be acquired (or the historical financial statements
related to the assets to be acquired) pursuant to the proposed Acquisition, Borrower
and its Subsidiaries would have been in compliance with the financial covenants in
Section 6.16 of the Agreement for the 4 fiscal quarter period ended
immediately prior to the proposed date of consummation of such proposed Acquisition,

     (d) Borrower has provided Agent with such due diligence information as
requested by Agent, including, without limitation, forecasted balance sheets, profit
and loss statements, and cash flow statements of the Person or assets to be acquired
for the remainder

 

			
	***	 	Portions of this exhibit have been omitted under a request for confidential
treatment pursuant to Rule 24b-2 of the Securities and Exchange Act of 1934 and filed separately
with the United States Securities and Exchange Commission.

5

 

of the fiscal year in which the proposed Acquisition is
consummated for such Person or related to such assets, all prepared on a basis
consistent with such Person’s (or assets’) historical financial statements, together
with appropriate supporting details and a statement of underlying assumptions, on a
quarter by quarter basis, in form and substance (including as to scope and
underlying assumptions) reasonably satisfactory to Agent,

     (e) Borrower shall have Availability plus Qualified Cash in an amount equal to
or greater than $20,000,000 after giving effect to the consummation of the proposed
Acquisition; provided, that, for purposes of this clause (e), the
calculation of Availability shall include Accounts, Inventory and Equipment acquired
by the Borrower pursuant to such Acquisition only to the extent that such Accounts,
Inventory and Equipment constitute Eligible Accounts, Eligible Inventory and
Eligible Equipment, respectively,

     (f) Borrower has provided Agent with written notice of the proposed Acquisition
at least 15 Business Days prior to the anticipated closing date of the proposed
Acquisition and, not later than 5 Business Days prior to the anticipated closing
date of the proposed Acquisition, copies of the acquisition agreement and other
material documents relative to the proposed Acquisition, which agreement and
documents must be reasonably acceptable to Agent,

     (g) the assets being acquired (other than a de minimis amount of assets in
relation to Borrower’s and its Subsidiaries’ total assets), or the Person whose
Stock is being acquired, are useful in or engaged in, as applicable, the business of
Borrower and its Subsidiaries or a business reasonably related thereto,

     (h) the assets being acquired (other than a de minimis amount of assets in
relation to Borrower’s and its Subsidiaries’ total assets) are located within the
United States or the Person whose Stock is being acquired is organized in a
jurisdiction located within the United States,

     (i) the subject assets or Stock, as applicable, are being acquired directly by
a Borrower or one of its Subsidiaries that is a Loan Party, and, in connection
therewith, Borrower or the applicable Loan Party shall have complied with
Section 5.16 or 5.17, as applicable, of the Agreement and, in the
case of an acquisition of Stock, Borrower or the applicable Loan Party shall have
demonstrated to Agent that the new Loan Parties have received consideration
sufficient to make the joinder documents binding and enforceable against such new
Loan Parties, and

     (j) the cash consideration payable at closing in respect of all Permitted
Acquisitions (including the proposed Acquisition) shall not exceed $50,000,000 in
the aggregate.”

     (j) Section 6.1 of the Credit Agreement is hereby amended by deleting the word “and”
at the end of clause (e) thereof, replacing the “.” at the end of clause (f) thereof with “;” and
inserting the following new clauses (g), (h) and (i) at the end thereof to
read in their entirety as follows:

     “(g) contingent liabilities in respect of any indemnification obligation,
adjustment of purchase price, non-compete, or similar obligation of Borrower or the
applicable Loan Party incurred in connection with the consummation of one or more
Permitted Acquisitions;

     (h) [***]; and

 

			
	***	 	Portions of this exhibit have been omitted under a request for confidential
treatment pursuant to Rule 24b-2 of the Securities and Exchange Act of 1934 and filed separately
with the United States Securities and Exchange Commission.

6

 

     (i) in addition to the Indebtedness set forth in the first row of the table set
forth in Schedule 4.19, Indebtedness under the Term Loan Documents in an
aggregate amount not to exceed $20,000,000; provided that at the time of, and
immediately after giving effect to, the incurrence of any such Indebtedness, no
Event of Default shall have occurred and be continuing.”

     (k) Section 6.3 of the Credit Agreement is hereby amended by inserting the phrase
“Other than in order to consummate a Permitted Acquisition:” immediately prior to clause
(a) thereof.

     (l) The first paragraph of Section 6.16(a) of the Credit Agreement is hereby amended
and restated to read in its entirety as follows:

     “(a) Fixed Charge Coverage Ratio. Have, on any date on which Average
Excess Availability is less than $25,000,000, a Fixed Charge Coverage Ratio,
measured on a trailing 12-month-end basis on the last day of each fiscal month of
the Borrower, less than the required amount set forth in the following table for the
applicable period set forth opposite thereto:

	 	 	 
	Applicable Ratio	 	Applicable Period
	 
	 	 
	1.0:1.0

	 	For the trailing 12 months ending on the last day of the
then most-recently ended fiscal month of the Borrower and
the last day of each fiscal month thereafter until such
time as Average Excess Availability is equal to or
greater than $25,000,000 for three consecutive fiscal
months

     SECTION 2. Conditions. This Amendment shall become effective when (i) the Agent shall
have received duly executed counterparts of this Amendment from the Borrower and the Required
Lenders and the Agent shall have executed and delivered its counterpart to this Amendment, (ii) the
Agent shall have received from Borrower duly executed counterparts to the amended and restated Fee
Letter executed and executed and delivered its signed counterpart to the Borrower, and (iii) the
Agent shall have received in immediately available funds all fees owing under the amended and
restated Fee Letter.

     SECTION 3. Reference to and Effect Upon the Credit Agreement.

     (a) Except as specifically set forth herein, the Credit Agreement and the other Loan
Documents shall remain in full force and effect and are hereby ratified and confirmed; and

     (b) The amendment set forth herein is effective solely for the purpose set forth herein
and shall be limited precisely as written, and shall not be deemed to (i) be a consent to
any amendment, waiver of or modification of any other term or condition of the Credit
Agreement or any other Loan Document, (ii) operate as a waiver of or otherwise prejudice any
right, power or remedy that Agent or Lenders may now have or may have in the future under or
in connection with the Credit Agreement or any other Loan Document or (iii) constitute an
amendment or waiver of any provision of the Credit Agreement or any Loan Document, except as
specifically set forth herein. Upon the effectiveness of this Amendment, each reference in
the Credit Agreement to “this Agreement”, “herein”, “hereof” and words of like import and
each reference in the Credit Agreement and the Loan
Documents to the Credit Agreement shall mean the Credit Agreement as amended hereby.
This Amendment shall be construed in connection with and as part of the Credit Agreement.

 

			
	***	 	Portions of this exhibit have been omitted under a request for confidential
treatment pursuant to Rule 24b-2 of the Securities and Exchange Act of 1934 and filed separately
with the United States Securities and Exchange Commission.

7

 

     SECTION 4. Costs and Expenses. As provided in Section 17.10 of the Credit
Agreement, the Borrower shall pay all costs and expenses incurred by or on behalf of Agent and
Lenders arising from or relating to this Amendment constituting Lender Group Expenses.

     SECTION 5. GOVERNING LAW. THE VALIDITY OF THIS AMENDMENT, THE CONSTRUCTION,
INTERPRETATION, AND ENFORCEMENT HEREOF, AND THE RIGHTS OF THE PARTIES HERETO WITH RESPECT TO ALL
MATTERS ARISING HEREUNDER OR RELATED HERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS.

     SECTION 6. Headings. Section headings in this Amendment are included herein for
convenience of reference only and shall not constitute part of this Amendment for any other
purposes.

     SECTION 7. Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed an original, but all such counterparts
shall constitute one and the same instrument.

(signature pages follow)

 

			
	***	 	Portions of this exhibit have been omitted under a request for confidential
treatment pursuant to Rule 24b-2 of the Securities and Exchange Act of 1934 and filed separately
with the United States Securities and Exchange Commission.

8

 

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

	 	 	 	 	 
	 	JOHN B. SANFILIPPO & SON, INC.

a Delaware corporation

 	 
	 	By:  	/s/ Michael J. Valentine
 	 
	 	 	Title:  Chief Financial Officer 	 
	 	 	 	 
	 
	 	WELLS FARGO CAPITAL FINANCE, LLC (f/k/a Wells Fargo
Foothill, LLC), a Delaware limited liability company,
as Agent and as a Lender

 	 
	 	By:  	/s/ Matt Mouledous
 	 
	 	 	Title:  Vice President 	 
	 	 	 	 
	 
	 	BURDALE FINANCIAL LIMITED,

a United Kingdom corporation, as a Lender

 	 
	 	By:  	/s/ Steve Sanicola
 	 
	 	 	Title:  Duly Authorized Signatory 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	                                              /s/ Antimo Barbieri
 	 
	 	 	Title:  Duly Authorized Signatory 	 
	 	 	 	 
	 

[SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT]exv10w12

Exhibit 10.12

RESTRICTED STOCK AGREEMENT

This RESTRICTED STOCK AGREEMENT (the “Agreement”) is made effective as of
<award_date>, by and between DELTA PETROLEUM CORPORATION, a Delaware corporation
(the “Company”), and <first_name> <last_name> (the “Participant”).

W I T N E S S E T H:

WHEREAS, the Company has adopted the Delta Petroleum Corporation 2009 Performance and Equity
Incentive Plan, as amended (the “Plan”), which authorizes the Company to award restricted shares of
its common stock, $0.01 par value per share, to selected employees and directors of the Company and
its Subsidiaries; and

WHEREAS, the Company desires to grant to the Participant a Restricted Stock Award in contemplation
of receipt of future services by the Participant; and

WHEREAS, the Company and Participant wish to confirm the terms and conditions of such Restricted
Stock Award to Participant effective as of <award_date> (the “Issue Date”);

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it
is agreed between the parties hereto as follows:

1. Definitions. Except as provided in this Agreement, or unless the context otherwise requires, the
terms used herein shall have the same meaning as in the Plan.

2. Award of Restricted Stock. Upon and subject to the terms, restrictions, limitations and
conditions stated herein, the Company hereby awards to Participant
<shares_awarded> shares of Restricted Stock of the Company (the “Restricted
Stock”), in consideration of the Participant’s future services for the Company. Such Restricted
Stock will vest in accordance with Paragraph 3 of this Agreement below, but in no event earlier
than services upon which this grant is based have been performed by the Participant.

3. Rights; Vesting; Forfeiture. Except as otherwise provided herein, Participant shall have full
right, title and interest in the Restricted Stock to the extent such Restricted Stock has vested in
accordance with subparagraph (iii) below.

(i) During the Vesting Period (as defined below) and prior to the vesting of the Restricted
Stock, the Restricted Stock may not be sold, assigned, transferred, pledged or otherwise
encumbered by Participant. Certificates issued with respect to the Restricted Stock shall
be registered in the name of Participant and deposited by Participant with the Company, and
any such certificates shall bear an appropriate legend disclosing the restrictions imposed
on the Restricted Stock hereunder and by the Plan. Upon the lapse of the restrictions
applicable to the Restricted Stock, the Company shall deliver such certificates to
Participant or Participant’s legal representative, as the case may be.

(ii) During the Vesting Period, the Participant shall have no rights to vote on the
Restricted Stock or have any other rights of a stockholder in the Company with regards to
such Restricted Stock, unless otherwise provided herein. If as a result of a stock
dividend, stock split, recapitalization or other adjustment in the capital stock or stated
capital of the Company, or as the result of a merger, consolidation, or other
reorganization, the Common Stock is increased, reduced or otherwise changed by

1

 

virtue thereof, Participant shall be entitled to new or additional or different shares,
with such new or additional shares being subject to the same terms, conditions and
restrictions as applicable to the Restricted Stock.

(iii) The Restricted Stock shall vest as follows:

<vesting_schedule>

provided that Participant is employed by the Company or a Subsidiary (the
“Employer”) at all times following the Issue Date and prior to and on each of the Vest
Dates set forth above (the “Vesting Period”). If, at any time during the Vesting Period,
Participant’s employment with Employer is terminated for any reason other than as a result
of the death or Disability of Participant or retirement by Participant as specified in the
following sentence, all of the Restricted Stock held by such Participant which has not
previously vested shall immediately and automatically be forfeited without monetary
consideration to the Company and shall be automatically canceled and retired. If (i)
Participant shall die while in the employ or service of the Employer, (ii) Participant’s
employment or service with the Employer shall terminate by reason of Disability, (iii) the
Participant retires from employment following 30 years of consecutive service with the
Company or (iv) there occurs a Change in Control, then in any such case all Restricted
Stock shall become immediately vested and non-forfeitable. For the purposes of this
Agreement, a Change in Control shall be deemed to have occurred if any “person” or “group”
(as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act) other
than an entity owned or controlled by Kirk Kerkorian shall become, or obtain rights
(whether by means of warrants, options or otherwise) to become, the “beneficial owner” (as
defined in Rules 13(d)-3 and 13(d)-5 under the Securities Exchange Act), directly or
indirectly, of more than 50%, on a fully diluted basis, of the outstanding capital stock of
the Company. For the purposes of this Agreement, Disability shall mean a participant’s
total and permanent disability that prevents the Participant from performing the normal
duties of his or her position, as determined by the Company.

4. Withholding Taxes. The Participant may be required to pay to the Company an amount required to
be withheld with respect to the vesting of the Restricted Stock for any federal, state, local, or
employment taxes which are required by law to be withheld with respect to such payments. At the
request of the Participant, or as required by law, such sums as may be required for the payment of
any estimated or accrued income tax liability may be withheld and paid over to the governmental
entity entitled to receive the same. Notwithstanding the foregoing, the Participant may satisfy
such obligation, if any, in whole or in part, and any other local, state or federal income tax
obligations relating to such Restricted Stock, by electing (the “Election”) to pay to the Company
the amount of any such obligation (i) in cash or by certified or bank cashier’s check or by
personal check (subject to collection); (ii) by delivery (by either actual delivery or attestation)
of shares of Common Stock owned by the Participant at the time of vesting and otherwise acceptable
to the Company, provided that no securities may be surrendered in payment of such obligation if
such action would cause the Company to recognize compensation expense (or additional compensation
expense) with respect to the Restricted Stock for financial reporting purposes; or (iii) a
combination of the foregoing methods. The value of the shares tendered in payment of such
obligation shall be the closing sales price per share of the Company’s Common Stock on the Nasdaq
National Market on the date that the Restricted Shares for which the payment is being made vested,
or, if there is no transaction on such date, then on the trading date nearest preceding the date
such shares are tendered to the Company for which closing price information is available, and the

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number of shares to be tendered shall, when aggregated with the value of any other permitted form
of payment provided by the Participant, approximate as nearly as possible (but not exceed) the
amount of such obligation being satisfied. Each Election must be made in writing to the Company in
accordance with election procedures established by the Company.

5. Restricted Stock Subject to Plan. The Restricted Stock Award represented by this Agreement and
the Restricted Stock shall be subject to, and the Company and Participant agree to be bound by, all
of the terms and conditions of the Plan, as the same shall be amended from time to time in
accordance with the terms thereof.

6. Covenants and Representations of Participant. Participant represents, warrants, covenants and
agrees with the Company as follows:

(i) The Restricted Stock cannot be offered for sale, sold or transferred by Participant
other than pursuant to: (A) an effective registration under applicable state securities
laws or in a transaction which is otherwise in compliance with such laws; (B) an effective
registration under the Securities Act of 1933, as amended (the “1933 Act”), or in a
transaction otherwise in compliance with the 1933 Act; and (C) evidence satisfactory to the
Company of compliance with the securities laws of all applicable jurisdictions. The Company
shall be entitled to rely upon an opinion of counsel satisfactory to it with respect to
compliance with the foregoing laws;

(ii) The Company will be under no obligation to register (or maintain the registration of)
the Restricted Stock or to comply with any exemption available for sale of the Restricted
Stock without registration. The Company is under no obligation to act in any manner so as
to make Rule 144 promulgated under the 1933 Act available with respect to sales of the
Restricted Stock; and

(iii) If applicable, a legend indicating that the Restricted Stock has not been registered
under the applicable state securities laws and referring to any applicable restrictions on
transferability and sale of the Restricted Stock may be placed on the certificate or
certificates delivered to Participant, and any transfer agent of the Company may be
instructed to require compliance therewith.

7. Governing Law. This Agreement shall be construed, administered and enforced according to the
laws of the State of Colorado, without regard to the conflicts of laws provisions thereof.

8. Successors. This Agreement shall be binding upon and inure to the benefit of the heirs, legal
representatives, successors and permitted assigns of the parties.

9. Notice. Except as otherwise specified herein, all notices and other communications under this
Agreement shall be in writing and shall be deemed to have been given if personally delivered or if
sent by registered or certified United States mail, return receipt requested, postage prepaid,
addressed to the proposed Participant at the last known address of such Participant. Any party may
designate any other address to which notices shall be sent by giving notice of such address to the
other parties in the same manner provided herein.

10. Severability. In the event that any one or more of the provisions or portion thereof contained
in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any
respect, the same shall not invalidate or otherwise affect any other provisions of this

3

 

Agreement and this Agreement shall be construed as if such invalid, illegal or unenforceable
provision or portion thereof had never been contained herein.

11. Entire Agreement. Subject to the terms and conditions of the Plan, this Agreement expresses
the entire understanding and agreement of the parties hereto with respect to such terms,
restrictions and limitations. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which shall constitute one and the same instrument.

12. Violation. Any transfer, pledge, sale, assignment or hypothecation of the Restricted Stock
except in accordance with this Agreement shall be a violation of the terms hereof and shall be void
and without effect.

13. Headings. Section headings used herein are for convenience of reference only and shall not be
considered in interpreting this Agreement.

14. Specific Performance. In the event of any actual or threatened default in, or breach of, any
of the terms, conditions and provisions of this Agreement, the party or parties who are thereby
aggrieved shall have the right to specific performance and injunction in addition to any and all
other rights and remedies at law or in equity, and all such rights and remedies shall be
cumulative.

15. Counterparts. This Agreement may be executed by the signatures of each of the parties hereto,
or to a counterpart of this Agreement, and all such counterparts shall collectively constitute one
Agreement. Facsimile signatures shall constitute original signatures for purposes of this
Agreement.

IN WITNESS WHEREOF, the parties have executed and sealed this Agreement on the day and year first
set forth above.

	 	 	 	 	 
	 	DELTA PETROLEUM CORPORATION

 	 
	 	By:  	/s/ Kevin K. Nanke 	 
	 	 	Name:  	Kevin K. Nanke                            	 
	 	 	Title:  	Treasurer and Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	PARTICIPANT:

 	 
	 	Signature: 	
 	 
	 	 	 	 	 
	 	Name (printed): 	 	 

4

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