Document:

exv10w2

 

Exhibit 10.2

RESOLUTE ENERGY PARTNERS, LP

LONG-TERM INCENTIVE PLAN

     SECTION 1. Purpose of the Plan.

     The Resolute Energy Partners, LP Long-Term Incentive Plan (the “Plan”) has been adopted by
Resolute Energy GP, LLC, a Delaware limited liability company (the “Company”), the general partner
of Resolute Energy Partners, LP, a Delaware limited partnership (the “Partnership”). The Plan is
intended to promote the interests of the Partnership, the Company and their Affiliates by providing
to employees, consultants and directors of the Partnership, the Company and their Affiliates
incentive compensation awards that are based on Units for superior performance. The Plan is also
contemplated to enhance the ability of the Partnership, the Company and their Affiliates to attract
and retain the services of individuals who are essential for the growth and profitability of the
Company, the Partnership and their Affiliates, and to encourage them to devote their best efforts
to advancing the business of the Company, the Partnership and their Affiliates.

     SECTION 2. Definitions.

     As used in the Plan, the following terms shall have the meanings set forth below:

     “Affiliate” means, with respect to any Person, any other Person that directly or indirectly
through one or more intermediaries controls, is controlled by or is under common control with, the
Person in question. As used herein, the term “control” means the possession, direct or indirect,
of the power to direct or cause the direction of the management and policies of a Person, whether
through ownership of voting securities, by contract or otherwise.

     “Award” means an Option, UAR, Restricted Unit, Phantom Unit, Other Unit-Based Award, Unit
Award or Replacement Award, and shall also include any tandem DERs granted with respect to an
Option, UAR or Phantom Unit.

     “Award Agreement” means the written or electronic agreement by which an Award shall be
evidenced.

     “Board” means the Board of Directors of the Company.

     “Change of Control” means, and shall be deemed to have occurred upon the occurrence of, one or
more of the following events:

     (i) any “Person” or “group” within the meaning of those terms as used in Sections 13(d)
and 14(d)(2) of the Exchange Act, other than an Affiliate of the Company or the Partnership,
shall become the direct owner, by way of merger, consolidation, recapitalization,
reorganization or otherwise, of 50% or more of the combined voting power of the equity
interests in the Company or the Partnership;

 

 

     (ii) the limited partners of the Partnership approve, in one or a series of
transactions, a plan of complete liquidation of the Partnership;

     (iii) the sale, lease or other disposition by either the Company or the Partnership of
all or substantially all of its assets in one or more transactions to any Person other than
the Company or an Affiliate of the Company; or

     (iv) a transaction resulting in a Person other than the Company or an Affiliate of the
Company being the general partner of the Partnership.

     Notwithstanding the foregoing, with respect to an Award that is subject to Section 409A of the
Code and with respect to which a Change of Control will accelerate payment, “Change of Control”
shall only include a Change of Control that constitutes a “change of control event” as defined in
the regulations and guidance issued under Section 409A of the Code.

     Further, notwithstanding the foregoing, for purposes of determining whether the vesting of any
Award accelerates, “Change of Control” shall not include any initial public offering of the
Partnership’s equity securities that is registered under the Securities Act of 1933.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Committee” means the Board or such committee of the Board, if any, as may be appointed by the
Board to administer the Plan.

     “Consultant” means an independent contractor, other than a Director, who performs services for
the benefit of the Company or the Partnership or an Affiliate of either of them.

     “DER” or “Distribution Equivalent Right” means a contingent right, granted in tandem with a
specific Option, UAR or Phantom Unit, to receive an amount in cash equal to the cash distributions
made by the Partnership with respect to a Unit during the period such DER is outstanding.

     “Director” means a member of the Board or a board of directors of an Affiliate who is not an
Employee or a Consultant (other than in that individual’s capacity as a Director).

     “Employee” means any employee of the Company, the Partnership or an Affiliate of either of
them who performs services for the benefit of the Company, the Partnership or an Affiliate of
either of them.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Fair Market Value” means the closing sales price of a Unit on the principal national
securities exchange or other market in which trading in Units occurs on the applicable date (or if
there is no trading in the Units on such date, on the next preceding date on which there was
trading) as reported in The Wall Street Journal (or other reporting service approved by the
Committee). In the event Units are not traded on a national securities exchange or other market at
the time a determination of fair market value is required to be made hereunder, the determination
of fair market value shall be made in good faith by the Committee.

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Notwithstanding the foregoing, with respect to an Award granted on the effective date of the
initial public offering of Units, Fair Market Value on such date shall mean the initial offering
price per Unit as stated on the cover page of the S-1 for such offering.

     “Option” means an option to purchase Units granted under the Plan.

     “Other Unit-Based Award” means an award granted pursuant to Section 6(f) of the Plan.

     “Participant” means any Employee, Consultant or Director granted an Award under the Plan.

     “Person” means an individual or a corporation, limited liability company, partnership, joint
venture, trust, unincorporated organization, association, government agency or political
subdivision thereof or other entity.

     “Phantom Unit” means a phantom (notional) unit granted under the Plan which entitles the
Participant to receive an amount of cash equal to the Fair Market Value of one Unit upon vesting of
the Phantom Unit; however, the Committee, in its discretion, may elect to pay such vested Phantom
Unit with a Unit in lieu of cash.

     “Replacement Award” means an Award granted pursuant to Section 6(g) of the Plan.

     “Restricted Period” means the period established by the Committee with respect to an Award
during which the Award remains subject to forfeiture and is either not exercisable by or payable to
the Participant, as the case may be.

     “Restricted Unit” means a Unit granted under the Plan that is subject to a Restricted Period.

     “Rule 16b-3” means Rule 16b-3 promulgated by the SEC under the Exchange Act, or any successor
rule or regulation thereto as in effect from time to time.

     “SEC” means the Securities and Exchange Commission, or any successor thereto.

     “Unit” means a common unit of the Partnership.

     “UAR” or “Unit Appreciation Right” means an Award that, upon exercise, entitles the holder to
receive the excess of the Fair Market Value of a Unit on the exercise date over the exercise price
established for such Unit Appreciation Right. Such excess may be paid in cash, Units or any
combination thereof, as determined by the Committee in its discretion.

     “Unit Award” means the grant of a Unit that is not subject to a Restricted Period.

     “UDR” or “Unit Distribution Right” means a right to receive distributions made by the
Partnership with respect to a Restricted Unit.

     SECTION 3. Administration.

     (a) Governance. The Plan shall be administered by the Committee.

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     (b) Delegation. Subject to the following and applicable law, the Committee, in its
sole discretion, may delegate any or all of its powers and duties under the Plan, including the
power to grant Awards under the Plan, to the Chief Executive Officer of the Company, subject to
such limitations on such delegated powers and duties as the Committee may impose, if any. Upon any
such delegation, all references in the Plan to the “Committee”, other than in Section 7, shall be
deemed to include the Chief Executive Officer; provided, however, that such delegation shall not
limit the Chief Executive Officer’s right to receive Awards under the Plan. Notwithstanding the
foregoing, the Chief Executive Officer may not grant Awards to, or take any action with respect to
any Award previously granted to, a Person who is an officer subject to Rule 16b-3 or a member of
the Board.

     (c) Authority and Powers. Subject to the terms of the Plan and applicable law, and
in addition to other express powers and authorizations conferred on the Committee by the Plan, the
Committee shall have full power and authority to: (i) designate Participants; (ii) determine the
type or types of Awards to be granted to a Participant; (iii) determine the number of Units to be
covered by Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, to
what extent, and under what circumstances Awards may be vested, settled, exercised, canceled, or
forfeited; (vi) interpret and administer the Plan and any instrument or agreement relating to an
Award made under the Plan; (vii) establish, amend, suspend, or waive such rules and regulations and
appoint such agents as it shall deem appropriate for the proper administration of the Plan; and
(viii) make any other determination and take any other action that the Committee deems necessary or
desirable for the administration of the Plan. The Committee may correct any defect, supply any
omission or reconcile any inconsistency in the Plan or an Award Agreement in such manner and to
such extent as the Committee deems necessary or appropriate. Unless otherwise expressly provided
in the Plan, all designations, determinations, interpretations, and other decisions under or with
respect to the Plan or any Award shall be within the sole discretion of the Committee, may be made
at any time and shall be final, conclusive, and binding upon all Persons, including the Company,
the Partnership, any Affiliate, any Participant, and any beneficiary of any Participant.

     SECTION 4. Units.

     (a) Limits on Units Deliverable. Subject to adjustment as provided in Section 4(c),
the number of Units that may be delivered with respect to Awards under the Plan may not exceed
4,400,000 Units; provided, however, if any Award (including Restricted Units) is terminated,
cancelled, forfeited or expires for any reason without the actual delivery of Units covered by such
Award or Units are withheld from an Award to satisfy the exercise price or the employer’s tax
withholding obligation with respect to such Award or previously acquired Units are delivered to the
Company in full or partial payment of the exercise price for the exercise of an Option granted
under the Plan, such Units shall again be available for delivery pursuant to other Awards granted
under the Plan. Notwithstanding the foregoing, (i) there shall not be any limitation on the number
of Awards that may be granted under the Plan and paid in cash, and (ii) any Units allocated to an
Award shall, to the extent such Award is paid in cash, be again available for delivery under the
Plan with respect to other Awards.

     (b) Sources of Units Deliverable Under Awards. Any Units delivered pursuant to an
Award shall consist, in whole or in part, of Units acquired in the open market or from any

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Affiliate, the Partnership or any other Person, or any combination of the foregoing, as
determined by the Committee in its sole discretion.

     (c) Anti-Dilution Adjustments. With respect to any “equity restructuring” event that
could result in an additional compensation expense to the Company or the Partnership pursuant to
the provisions of Statement of Financial Accounting Standards No. 123 (“FAS 123R”) if adjustments
to Awards with respect to such event were discretionary, the Committee shall equitably adjust the
number and type of Units covered by each outstanding Award and the terms and conditions, including
the exercise price and performance criteria (if any), of such Award to equitably reflect such
restructuring event and shall adjust the number and type of Units (or other securities or property)
with respect to which Awards may be granted after such event. With respect to any other similar
event that would not result in a FAS 123R accounting charge if the adjustment to Awards with
respect to such event were subject to discretionary action, the Committee shall have complete
discretion to adjust Awards in such manner as it deems appropriate with respect to such other
event. In the event the Committee makes any adjustment pursuant to the foregoing provisions of
this Section 4(c), the Committee shall make a corresponding and proportionate adjustment with
respect to the maximum number of Units that may be delivered with respect to Awards under the Plan
as provided in Section 4(a) and the kind of Units or other securities available for grant under the
Plan.

     SECTION 5. Eligibility.

     Any Employee, Consultant or Director shall be eligible to be designated a Participant and
receive an Award under the Plan.

     SECTION 6. Awards.

     (a) Options. The Committee shall have the authority to determine the Employees,
Consultants and Directors to whom Options shall be granted, the number of Units to be covered by
each Option, whether DERS are granted with respect to such Option, and the conditions and
limitations applicable to the exercise of such Option, including the following terms and conditions
and such additional terms and conditions, as the Committee shall determine, that are not
inconsistent with the provisions of the Plan.

     (i) Exercise Price. The exercise price per Unit under an Option shall be
determined by the Committee at the time the Option is granted and, except with respect to a
Replacement Award, may not be less than its Fair Market Value as of the date of grant.

     (ii) Time and Method of Exercise. The Committee shall determine (A) the time
or times at which an Option may be exercised in whole or in part, which may include, without
limitation, accelerated vesting upon the achievement of specified performance goals or other
events, and (B) in its discretion the method or methods by which payment of the exercise
price with respect thereto may be made or deemed to have been made, which may include,
without limitation, cash, check acceptable to the Company, a “cashless-broker” exercise
through a program approved by the Company, with the consent of the Company, the withholding
of Units that would otherwise be delivered to the Participant upon the exercise of the
Option, other securities or other

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property, or any combination thereof, having a Fair Market Value on the exercise date
equal to the relevant exercise price.

     (iii) Forfeitures. Except as otherwise provided in the terms of the Award
Agreement, upon termination of a Participant’s employment or consulting with the Company,
the Partnership and their Affiliates or membership as a Director, whichever is applicable,
for any reason during the applicable Restricted Period, all Options shall be forfeited by
the Participant. The Committee may, in its discretion, waive in whole or in part such
forfeiture with respect to a Participant’s Options.

     (iv) DERs. To the extent provided by the Committee, in its discretion, a grant
of Options may include a tandem DER grant, which may provide that such DERs shall be paid
directly to the Participant, be credited to a bookkeeping account (with or without interest
in the discretion of the Committee) subject to the same vesting restrictions as the tandem
Award, or be subject to such other provisions or restrictions as determined by the Committee
in its discretion. Absent any provision to the contrary with regard to the DERs in the
Award Agreement, DERs shall be subject to the same vesting restrictions as apply to the
Options with respect to which they were granted. Further, to the extent required by Section
409A of the Code, DERs granted in tandem with Options shall not be directly or indirectly
contingent on the exercise of the Options with respect to which they were granted.

     (b) UARs. The Committee shall have the authority to determine the Employees and
Directors to whom Unit Appreciation Rights shall be granted, the number of Units to be covered by
each grant, whether DERs are granted with respect to such Unit Appreciation Right, the exercise
price therefor and the conditions and limitations applicable to the exercise of the Unit
Appreciation Right, including the following terms and conditions and such additional terms and
conditions, as the Committee shall determine, that are not inconsistent with the provisions of the
Plan.

     (i) Exercise Price. The exercise price per Unit Appreciation Right shall be
determined by the Committee at the time the Unit Appreciation Right is granted but may not
be less than the Fair Market Value of a Unit as of the date of grant.

     (ii) Time of Exercise. The Committee shall determine the Restricted Period,
i.e., the time or times at which a Unit Appreciation Right may be exercised in whole or in
part, which may include, without limitation, accelerated vesting upon the achievement of
specified performance goals.

     (iii) Forfeitures. Except as otherwise provided in the terms of the Award
Agreement, upon termination of a Participant’s employment with the Company and its
Affiliates or membership as a Director, whichever is applicable, for any reason during the
applicable Restricted Period, all outstanding unvested Unit Appreciation Rights awarded the
Participant shall be automatically forfeited on such termination. The Committee may, in its
discretion, waive in whole or in part such forfeiture with respect to a Participant’s Unit
Appreciation Rights.

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     (iv) Unit Appreciation Right DERs. To the extent provided by the Committee, in
its discretion, a grant of Unit Appreciation Rights may include a tandem DER grant, which
may provide that such DERs shall be paid directly to the Participant, be credited to a
bookkeeping account (with or without interest in the discretion of the Committee) subject to
the same vesting restrictions as the tandem Unit Appreciation Rights Award, or be subject to
such other provisions or restrictions as determined by the Committee in its discretion.
Absent any provision to the contrary with regard to the DERs in the Award Agreement, DERs
shall be subject to the same vesting restrictions as apply to the Unit Appreciation Rights
with respect to which they were granted. Further, to the extent required by Section 409A of
the Code, DERs granted in tandem with UARs shall not be directly or indirectly contingent on
the exercise of the UARs with respect to which they were granted.

     (c) Phantom Units. The Committee shall have the authority to determine the Employees,
Consultants, and Directors to whom Phantom Units shall be granted, the number of Phantom Units to
be granted to each such Participant, the Restricted Period, the time or conditions under which the
Phantom Units may become vested or forfeited, which may include, without limitation, the
accelerated vesting upon the achievement of specified performance goals or other events, and such
other terms and conditions as the Committee may establish with respect to such Awards, including
whether DERs are granted with respect to such Phantom Units.

     (i) DERs. To the extent provided by the Committee in its discretion, a grant
of Phantom Units may include a tandem DER grant, which provides that such DERs shall be
credited to a bookkeeping account (without interest) and shall be paid to the Participant in
cash upon the vesting of the tandem Phantom Unit. However, the Committee, in its
discretion, may provide such other terms, including different vesting and payment forms and
mediums and the “investment” of such DERs in additional Phantom Units, as it may choose with
respect to DERs and may also provide that a grant of Phantom Units does not include tandem
DERs. Absent any provision to the contrary on the DERs in the Award Agreement, DERs shall
be subject to the same vesting restrictions as apply to the Phantom Units with respect to
which they were granted and no “investment” requirements shall apply.

     (ii) Forfeitures. Except as otherwise provided in the terms of the Award
Agreement, upon termination of a Participant’s employment or consulting arrangement with the
Company, the Partnership and their Affiliates or membership as a Director, whichever is
applicable, for any reason during the applicable Restricted Period, all outstanding Phantom
Units awarded the Participant, and any outstanding tandem DERs credited to such Participant,
shall be automatically forfeited on such termination. The Committee may, in its discretion,
waive in whole or in part such forfeiture with respect to a Participant’s Phantom Units and
tandem DERs.

     (iii) Lapse of Restrictions. Upon or as soon as reasonably practical following
the vesting of each Phantom Unit, subject to the provisions of Section 8(b), the Participant
shall be entitled to settlement of such Phantom Unit by receiving from the Company cash
equal to the Fair Market Value of one Unit as of the vesting date;

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     however, the Committee, in its discretion, may elect to pay such vested Phantom Unit in
the form of one Unit in lieu of cash.

     (d) Restricted Units. The Committee shall have the authority to determine the
Employees, Consultants and Directors to whom Restricted Units shall be granted, the number of
Restricted Units to be granted to each such Participant, the Restricted Period, the conditions
under which the Restricted Units may become vested or forfeited, which may include, without
limitation, the accelerated vesting upon the achievement of specified performance goals or other
events, and such other terms and conditions as the Committee may establish with respect to such
Awards.

     (i) UDRs. To the extent provided by the Committee, in its discretion, a grant
of Restricted Units may provide that distributions made by the Partnership with respect to
the Restricted Units shall be subject to such forfeiture and other restrictions as the
Committee may choose and, if so restricted, such distributions shall be held, without
interest, until the UDR vests or is forfeited. In addition, the Committee may provide that
such distributions be used to acquire additional Restricted Units for the Participant. Such
additional Restricted Units may be subject to such vesting and other terms as the Committee
may prescribe. Absent any provision to the contrary with regard to the UDRs in the Award
Agreement, UDRs shall be subject to the same vesting restrictions as apply to the Restricted
Units to which they relate.

     (ii) Forfeitures. Except as otherwise provided in the terms of the Award
Agreement, upon termination of a Participant’s employment or consulting with the Company,
the Partnership and their Affiliates or membership as a Director, whichever is applicable,
for any reason during the applicable Restricted Period, all outstanding unvested Restricted
Units awarded the Participant, and any unpaid UDRs credited to the Participant, shall be
automatically forfeited on such termination. The Committee may, in its discretion, waive in
whole or in part such forfeitures with respect to a Participant’s Restricted Units and UDRs.

     (iii) Lapse of Restrictions. Upon or as soon as reasonably practical following
the vesting of each Restricted Unit, subject to the provisions of Section 8(b), the
Participant shall be entitled to have the restrictions removed from his or her Award so that
the Participant then holds an unrestricted Unit.

     (e) Unit Awards. Unit Awards may be granted under the Plan to such Employees,
Consultants and Directors and in such amounts as the Committee, in its discretion, may select.

     (f) Other Unit-Based Awards. Other Unit-Based Awards may be granted under the Plan to
such Employees, Consultants and Directors as the Committee, in its discretion, may select. An
Other Unit-Based Award shall be an award denominated or payable in, valued in or otherwise based on
or related to Units, in whole or in part. The Committee shall determine the terms and conditions,
if any, of any such Other Unit-Based Award. Upon or as soon as reasonably practicable following
vesting, an Other Unit-Based Award may be settled, as determined by the Committee in its
discretion, in cash, Units (including Restricted Units) or any combination thereof as determined by
the Committee, in its discretion.

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     (g) Replacement Awards. Awards may be granted under the Plan in substitution or
replacement for similar equity or equity appreciation awards cancelled or forfeited by Employees,
Consultants and Directors as a result of a merger or acquisition by the Partnership or an Affiliate
of an entity or the assets of an entity or in connection with or related to the transfer of assets
to the Partnership and its Affiliates as a result of the establishment of the Partnership. Such
Replacement Awards may have such terms and conditions as the Committee may determine and the
exercise price of an Option may be less than the Fair Market Value of a Unit on the date of such
substitution or replacement.

     (h) General.

     (i) Awards May Be Granted Separately or Together. Awards may, in the
discretion of the Committee, be granted either alone or in addition to, in tandem with, or
in substitution for any other Award granted under the Plan or any award granted under any
other plan of the Company, the Partnership or any Affiliate. Awards granted in addition to
or in tandem with other Awards or awards granted under any other plan of the Company, the
Partnership or any Affiliate may be granted either at the same time as or at a different
time from the grant of such other Awards or awards.

     (ii) Limits on Transfer of Awards.

     (A) Except as provided in paragraph (C) below, each Option and Unit
Appreciation Right shall be exercisable only by the Participant during the
Participant’s lifetime, or by the Person to whom the Participant’s rights shall pass
by will or the laws of descent and distribution.

     (B) Except as provided in paragraph (C) below, no Award and no right under any
such Award may be assigned, alienated, pledged, attached, sold or otherwise
transferred or encumbered by a Participant and any such purported assignment,
alienation, pledge, attachment, sale, transfer or encumbrance shall be void and
unenforceable against the Company, the Partnership or any Affiliate.

     (C) To the extent specifically provided by the Committee with respect to an
Award, an Award may be transferred by a Participant without consideration to
immediate family members or related family trusts, limited partnerships or similar
entities on such terms and conditions as the Committee may from time to time
establish.

     (iii) Term of Awards. The term of each Award shall be for such period as may
be determined by the Committee, but shall not exceed 10 years.

     (iv) Issuance of Units. The Units purchased or delivered pursuant to an Award
may be evidenced in any manner deemed appropriate by the Committee in its sole discretion,
including, but not limited to, in the form of a certificate issued in the name of the
Participant or by book entry, electronic or otherwise, subject to such stop transfer orders
and other restrictions as the Committee may deem advisable under the Plan or the rules,
regulations, and other requirements of the SEC, any stock exchange upon which such Units or
other securities are then listed, and any applicable federal or state laws, and

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the Committee may cause a legend or legends to be inscribed on any certificates to make
appropriate reference to such restrictions.

     (v) Consideration for Grants. Awards may be granted for such consideration,
including services, as the Committee determines.

     (vi) Delivery of Units or Other Securities and Payment by Participant of
Consideration. Notwithstanding anything in the Plan or any Award Agreement to the
contrary, if the Company is not reasonably able to obtain Units to deliver pursuant to such
Award without violating the rules or regulations of any applicable law or securities
exchange, no delivery shall occur until such time as the Committee, in good faith,
determines that the delivery of Units may be made without violating applicable law or the
applicable rules or regulations of any governmental agency or securities exchange. No Units
or other securities shall be delivered pursuant to any Award until payment in full of any
amount required to be paid pursuant to the Plan or the applicable Award Agreement
(including, without limitation, any exercise price or tax withholding) is received by the
Company.

     (vii) Change of Control, Similar Events. Upon the occurrence of a Change of
Control, a recapitalization, reorganization, merger, consolidation, combination, exchange or
other relevant change in capitalization of or involving the Partnership, any change in
applicable law or regulation affecting the Plan or Awards thereunder, or any change in
accounting principles affecting the financial statements of the Partnership, the Committee,
in its sole discretion, without the consent of any Participant or holder of the Award, and
on such terms and conditions as it deems appropriate, may take any one or more of the
following actions in order to either prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan or an outstanding Award or
mitigate any unfavorable accounting consequences:

     (A) provide for either (i) the cancellation and termination of any Award in
exchange for an amount of cash, other property or securities, if any, equal to the
amount that would have been attained upon the exercise of such Award or realization
of the Participant’s rights or if the Participant were a unitholder on the
occurrence of such event (and, for the avoidance of doubt, if as of the date of the
occurrence of such transaction or event the Committee determines in good faith that
no amount would have been attained upon the exercise of such Award or realization of
the Participant’s rights, then such Award may be terminated by the Company without
payment) or (ii) the replacement of such Award with or the conversion of such Award
into cash or other securities, other rights or property selected by the Committee in
its sole discretion;

     (B) provide that such Award be assumed by the successor or survivor entity, or
a parent or subsidiary thereof, or be exchanged for similar options, rights or
awards covering the equity of the successor or survivor, or a parent or subsidiary
thereof, with appropriate adjustments as to the number and kind of equity interests
and prices;

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     (C) make adjustments in the number and type of Units (or other securities or
property) subject to outstanding Awards, and in the number and kind of outstanding
Awards or in the terms and conditions of (including the exercise price), and the
vesting and performance criteria included in, outstanding Awards, or both;

     (D) provide that such Award shall be exercisable or payable, notwithstanding
anything to the contrary in the Plan or the applicable Award Agreement; and

     (E) provide that the Award cannot be exercised or become payable after such
event, i.e., that it shall terminate upon such event.

Notwithstanding the foregoing, with respect to an above event that is an “equity
restructuring” event that would be subject to a compensation expense pursuant FAS 123R if a
discretionary change were made, the provisions in Section 4(c) shall control to the extent
they are in conflict with the discretionary provisions of this Section 6.

Further, notwithstanding the foregoing, the Committee shall not take any action pursuant to
this Section 6(h)(vii) that would result in a Participant becoming subject to the adverse
tax consequences imposed by a violation of Section 409A of the Code as a result of such
action.

     SECTION 7. Amendment and Termination. Except to the extent prohibited by applicable
law:

     (a) Amendments to the Plan. Except as required by the rules of the principal
securities exchange or inter-dealer quotation system on which the Units are traded or listed, by
the Code or by the Exchange Act or other applicable law, and subject to Section 7(b) below, the
Board or the Committee may amend, alter, suspend, discontinue, or terminate the Plan in any manner,
including increasing the number of Units available for Awards under the Plan, without the consent
of any partner, Participant, other holder or beneficiary of an Award, or any other Person.
Notwithstanding the foregoing, no amendment, alteration, suspension, discontinuance, or termination
of the Plan will modify the time at which a payment related to an award that provides for the
deferral of compensation within the meaning of Section 409A of the Code shall be made to any
Participant except to the extent such a modification is permitted by, and in compliance with,
Section 409A and the applicable guidance issued thereunder.

     (b) Amendments to Awards. Subject to Section 7(a), the Committee may waive any
conditions or rights under, amend any terms of, or alter any Award theretofore granted, provided no
change, other than pursuant to Section 6(f)(vii) or, as determined by the Committee, in its sole
discretion, as being necessary or appropriate to comply with applicable law, in any Award shall
materially reduce the benefit of a Participant without the consent of such Participant.
Notwithstanding the foregoing, if the terms of an Award would result in the imposition of the
additional tax under Section 409A of the Code, the Award will be reformed, if possible, to avoid
imposition of such tax in a manner that will result in the least adverse economic impact on the

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Participant and, for purposes of the Plan, such reformation shall be deemed not to reduce the
Participant’s rights thereunder and shall not require the Participant’s consent.

     SECTION 8. General Provisions.

     (a) No Rights to Award. No Person shall have any claim to be granted any Award under
the Plan, and there is no obligation for uniformity of treatment of Participants. The terms and
conditions of Awards need not be the same with respect to each Participant.

     (b) Tax Withholding. Unless other arrangements have been made that are acceptable to
the Company, the Company or any Affiliate is authorized to withhold from any Award, from any
payment due or transfer made under any Award or from any compensation or other amount owing to a
Participant the amount (in cash, Units, other securities or property, or Units that would otherwise
be issued or delivered pursuant to such Award) of any applicable taxes payable in respect of the
grant or settlement of an Award, its exercise, the lapse of restrictions thereon, or any payment or
transfer under an Award or under the Plan and to take such other action as may be necessary in the
opinion of the Company to satisfy its withholding obligations for the payment of such taxes.

     (c) No Right to Employment or Services. The grant of an Award shall not be construed
as giving a Participant the right to be retained in the employ of the Company, the Partnership or
any Affiliate or to remain a Director or continue to provide services as a Consultant, as
applicable. Further, the Company, the Partnership or an Affiliate may at any time dismiss a
Participant from employment or services, free from any liability or any claim under the Plan,
unless otherwise expressly provided in the Plan or in any Award Agreement or other agreement.

     (d) Governing Law. The validity, construction, and effect of the Plan and any rules
and regulations relating to the Plan shall be determined in accordance with the laws of the State
of Delaware without regard to its conflicts of laws principles.

     (e) Compliance with Section 409A. Compliance with Section 409A. Nothing in the Plan
or any Award Agreement shall operate or be construed to cause the Plan or an Award, to the extent
subject to Section 409A, to fail to comply with the requirements of Section 409A of the Code. With
respect to any Award that is subject to Section 409A of the Code, the applicable provisions of
Section 409A the Code and the regulations thereunder are hereby incorporated by reference and shall
control over any provision of the Plan or any Award Agreement that is in conflict therewith. For
purposes of such compliance, in the event that an Award that is subject to Section 409A of the Code
is payable in connection with a Participant’s termination of service as an Employee, Consultant or
Director, such payments shall be made only in connection with a “separation from service” within
the meaning of Section 409A of the Code and the regulations thereunder (a “Separation from
Service”). Further, notwithstanding anything to the contrary in this Plan, in the event an Award
issued under the Plan is subject to Section 409A of the Code, if upon a Participant’s Separation
from Service, the Participant is a “specified employee” within the meaning of Section 409A of the
Code, and the deferral of any amounts or benefits otherwise payable or to be provided under any
Award made pursuant to this Plan as a result of the Participant’s Separation from Service is
necessary in order to prevent any accelerated or

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additional tax to the Participant under Section 409A of the Code, then the Company will delay
the payment of any such amounts or the provision of any such benefits hereunder until the earliest
of (x) the date that is six (6) months following the date of the Participant’s Separation from
Service and (y) the date of the Participant’s death following such Separation from Service. Upon
the expiration of the applicable deferral period, any delayed amounts will be paid to the
Participant in a single lump sum, with interest from the date otherwise payable, at the prime rate
as published in The Wall Street Journal on the Participant’s Separation from Service, and any
delayed benefits will be provided on such date.

     (f) Severability. If any provision of the Plan or any Award is or becomes or is
deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award,
or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such
provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot
be construed or deemed amended without, in the determination of the Committee, materially altering
the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction,
Person or Award and the remainder of the Plan and any such Award shall remain in full force and
effect.

     (g) Other Laws. The Committee may refuse to issue or transfer any Units or other
consideration under an Award if, in its sole discretion, it determines that the issuance or
transfer of such Units or such other consideration might violate any applicable law or regulation,
the rules of the principal securities exchange on which the Units are then traded, or result in
recoverable short-swing profits under Section 16(b) of the Exchange Act, and any payment tendered
to the Company by a Participant, other holder or beneficiary in connection with the exercise of
such Award shall be promptly refunded to the relevant Participant, holder or beneficiary.

     (h) No Trust or Fund Created. Neither the Plan nor any Award shall create or be
construed to create a trust or separate fund of any kind or a fiduciary relationship between the
Company or any participating Affiliate and a Participant or any other Person. To the extent that
any Person acquires a right to receive payments from the Company or any participating Affiliate
pursuant to an Award, such right shall be no greater than the right of any general unsecured
creditor of the Company or any participating Affiliate.

     (i) No Fractional Units. No fractional Units shall be issued or delivered pursuant to
the Plan or any Award, and the Committee shall determine, in its sole discretion, whether cash,
other securities, or other property shall be paid or transferred in lieu of any fractional Units or
whether such fractional Units or any rights thereto shall be canceled, terminated, or otherwise
eliminated, with or without consideration.

     (j) Headings. Headings are given to the Sections and subsections of the Plan solely
as a convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the Plan or any provision thereof.

     (k) Facility Payment. Any amounts payable hereunder to any Person under legal
disability or who, in the judgment of the Committee, is unable to properly manage his or her
financial affairs, may be paid to the legal representative of such Person, or may be applied for
the

-13-

 

benefit of such Person in any manner which the Committee may select, and the Company shall be
relieved of any further liability for payment of such amounts.

     (l) Participation by Affiliates. In making Awards to Employees employed by an entity
other than the Company, the Committee shall be acting on behalf of the Affiliate, and to the extent
the Partnership has an obligation to reimburse the Company for compensation paid for services
rendered for the benefit of the Partnership, such payments or reimbursement payments may be made by
the Partnership directly to the Affiliate, and, if made to the Company, shall be received by the
Company as agent for the Affiliate.

     (m) Gender and Number. Words in the masculine gender shall include the feminine
gender, the plural shall include the singular and the singular shall include the plural.

     SECTION 9. Term of the Plan.

     The Plan shall become effective on the date of its approval by the Board and shall terminate
on, and no Awards may be granted after, the earliest of (i) the date established by the Board or
the Committee, (ii) the 10th anniversary of the date the Plan was adopted by the Company
(or such earlier anniversary, if any, required by the rules of the exchange on which Units are
traded) or (iii) the date Units are no longer available for delivery pursuant to Awards under the
Plan. Unless otherwise expressly provided in the Plan or in an applicable Award Agreement, any
Award granted prior to any Plan termination, and the authority of the Board or the Committee to
amend, alter, adjust, suspend, discontinue, or terminate any such Award or to waive any conditions
or rights under such Award, shall extend beyond such termination date.

[SIGNATURES ON NEXT PAGE]

-14-

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be executed as of
______, 2008 by its Chief Executive Officer pursuant to prior action taken by the
Board.

	 	 	 	 	 
	 	RESOLUTE ENERGY GP, LLC

 	 
	 	By:  	 	 
	 	 	Nicholas J. Sutton, Chief Executive Officer 	 
	 	 	 	 
	 

ATTEST:

	 	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	 

	 	James M. Piccone, Secretaryexv10w4

 

Exhibit 10.4

 

 

ADMINISTRATIVE SERVICES AGREEMENT

AMONG

RESOLUTE ENERGY GP, LLC,

RESOLUTE ENERGY PARTNERS LP,

RESOLUTE ENERGY OPERATING LLC,

AND

RESOLUTE NATURAL RESOURCES COMPANY

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE I

	 
	 	 	 	 	 	 
	DEFINITIONS

	 
	 	 	 	 	 	 
	Section 1.1
	 	Definitions.	 	 	1	 
	Section 1.2
	 	Construction.	 	 	4	 
	 
	 	 	 	 	 	 
	ARTICLE II

	 
	 	 	 	 	 	 
	RETENTION OF RNRC; SCOPE OF SERVICES

	 
	 	 	 	 	 	 
	Section 2.1
	 	Retention of RNRC.	 	 	5	 
	Section 2.2
	 	Scope of Services.	 	 	5	 
	Section 2.3
	 	Exclusion of Services.	 	 	5	 
	Section 2.4
	 	Performance of Services by Affiliates and Third Parties.	 	 	5	 
	Section 2.5
	 	Intellectual Property.	 	 	5	 
	Section 2.6
	 	Appointment of Independent Accounting Firm and Independent Petroleum Engineer.	 	 	6	 
	 
	 	 	 	 	 	 
	ARTICLE III

	 
	 	 	 	 	 	 
	BOOKS, RECORDS AND REPORTING

	 
	 	 	 	 	 	 
	Section 3.1
	 	Books and Records.	 	 	6	 
	Section 3.2
	 	Audits.	 	 	6	 
	Section 3.3
	 	Reports.	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE IV

	 
	 	 	 	 	 	 
	PAYMENT AMOUNT

	 
	 	 	 	 	 	 
	Section 4.1
	 	Payment Amount.	 	 	7	 
	Section 4.2
	 	Payment of Payment Amount.	 	 	7	 
	Section 4.3
	 	Disputed Charges.	 	 	8	 
	Section 4.4
	 	Set Off.	 	 	8	 
	Section 4.5
	 	RNRC’s Employees.	 	 	8	 
	Section 4.6
	 	Approval of Expenses.	 	 	9	 
	 
	 	 	 	 	 	 
	ARTICLE V

	 
	 	 	 	 	 	 
	FORCE MAJEURE

	 
	 	 	 	 	 	 
	Section 5.1
	 	Force Majeure.	 	 	9	 

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	ARTICLE VI

	 
	 	 	 	 	 	 
	ASSIGNMENTS AND SUBCONTRACTS

	 
	 	 	 	 	 	 
	Section 6.1
	 	Assignments.	 	 	9	 
	Section 6.2
	 	Other Requirements.	 	 	9	 
	 
	 	 	 	 	 	 
	ARTICLE VII

	 
	 	 	 	 	 	 
	TERMINATION

	 
	 	 	 	 	 	 
	Section 7.1
	 	Termination by the Partnership on behalf of the Partnership Group.	 	 	10	 
	Section 7.2
	 	Termination by RNRC.	 	 	11	 
	Section 7.3
	 	Effect of Termination.	 	 	11	 
	 
	 	 	 	 	 	 
	ARTICLE VIII

	 
	 	 	 	 	 	 
	CONFIDENTIAL INFORMATION

	 
	 	 	 	 	 	 
	Section 8.1
	 	Nondisclosure.	 	 	11	 
	Section 8.2
	 	Permitted Disclosure.	 	 	11	 
	 
	 	 	 	 	 	 
	ARTICLE IX

	 
	 	 	 	 	 	 
	LIMITATION OF LIABILITY; INDEMNIFICATION

	 
	 	 	 	 	 	 
	Section 9.1
	 	Liabilities and Indemnification.	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE X

	 
	 	 	 	 	 	 
	DISPUTE RESOLUTION

	 
	 	 	 	 	 	 
	ARTICLE XI

	 
	 	 	 	 	 	 
	GENERAL PROVISIONS

	 
	 	 	 	 	 	 
	Section 11.1
	 	Notices.	 	 	14	 
	Section 11.2
	 	Further Action.	 	 	15	 
	Section 11.3
	 	Binding Effect.	 	 	15	 
	Section 11.4
	 	Integration.	 	 	15	 
	Section 11.5
	 	Creditors.	 	 	15	 
	Section 11.6
	 	Waiver.	 	 	15	 
	Section 11.7
	 	Counterparts.	 	 	15	 
	Section 11.8
	 	Applicable Law.	 	 	15	 
	Section 11.9
	 	Invalidity of Provisions.	 	 	16	 

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	Section 11.10
	 	Amendment or Restatement.	 	 	16	 
	Section 11.11
	 	Directly or Indirectly.	 	 	16	 

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ADMINISTRATIVE SERVICES AGREEMENT

          
THIS ADMINISTRATIVE SERVICES AGREEMENT is entered into on, and effective as of [ ] [•],
2008 (the “Effective Date”), among Resolute Energy Partners LP, a Delaware limited partnership (the
“Partnership”), Resolute Energy GP, LLC, a Delaware limited liability company and general partner
of the Partnership (the “General Partner”), Resolute Energy Operating LLC, a Delaware limited
liability company (the “Operating Company”), and Resolute Natural Resources Company, a Delaware
corporation (“RNRC,” and collectively with the General Partner, the Partnership and the Operating
Company, the “Parties” and each, a “Party”).

RECITALS

          
A. The Partnership is the owner, directly or indirectly, of interests in the Business (as
hereinafter defined);

          
B. The Partnership Group (as hereinafter defined) requires certain services to operate the
Business and to fulfill other general and administrative functions relating to the Business; and

          
C. The Partnership Group desires that RNRC provide such services, and RNRC is willing to
undertake such engagement, subject to the terms and conditions of this Agreement;

          
NOW, THEREFORE, the Partnership and RNRC agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.1 Definitions.

          
The following definitions shall be for all purposes, unless otherwise clearly indicated to the
contrary, applied to the terms used in this Agreement.

          
“Action” is defined in Section 9.2.

          
“Affiliate” means, with respect to any Person, any other Person that directly or indirectly
through one or more intermediaries controls, is controlled by or is under common control with, the
Person in question. As used herein, the term “control” means the possession, direct or indirect, of
the power to direct or cause the direction of the management and policies of a Person, whether
through ownership of voting securities, by contract or otherwise.

          
“Agreement” means this Administrative Services Agreement, as it may be amended, supplemented
or restated from time to time.

          
“Business” means the business of the Partnership Group.

          
“Business Day” means Monday through Friday of each week, except that a legal holiday
recognized as such by the government of the United States of America or the State of Colorado shall
not be regarded as a Business Day.

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“Bankrupt” with respect to any Person means such Person shall generally be unable to pay its
debts as such debts become due, or shall so admit in writing or shall make a general assignment for
the benefit of creditors; or any proceeding shall be instituted by or against such Person seeking
to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief, or composition of it or its debts under any law
relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of
an order for relief or the appointment of a receiver, trustee, or other similar official for it or
for any substantial part of its property and, in the case of any such proceeding instituted against
it (but not instituted by it), shall remain undismissed or unstayed for a period of 30 days; or
such Person shall take any action to authorize any of the actions set forth above.

          
“Cash Advance Notice” is defined in Section 4.2(a).

          
“Confidential Information” means non-public information about the disclosing Party’s or any of
its Affiliates’ business or activities that is proprietary and confidential, which shall include,
without limitation, all business, financial, technical and other information, including software
(source and object code) and programming code, of a Party or its Affiliates marked or designated
“confidential” or “proprietary” or by its nature or the circumstances surrounding its disclosure it
should reasonably be regarded as confidential. Confidential Information includes not only written
or other tangible information, but also information transferred orally, visually, electronically or
by any other means. Confidential Information does not include information that (i) is in or enters
the public domain without breach of this Agreement, or (ii) the receiving Party lawfully receives
from a third party without restriction on disclosure and to the receiving Party’s knowledge without
breach of a nondisclosure obligation.

          
“Damages” is defined in Section 9.1(a).

          
“Default Rate” means an interest rate (which shall in no event be higher than the rate
permitted by applicable law) equal to the prime interest rate of the Operating Company’s principal
lender.

          
“Effective Date” is defined in the introductory paragraph.

          
“Environmental Law” means current local, county, state, federal, and/or foreign law (including
common law), statute, code, ordinance, rule, order, judgment, decree, regulation or other legal
obligation relating to the protection of health, safety or the environment or natural resources,
including, without limitation, the Comprehensive Environmental Response Compensation and Liability
Act (42 U.S.C. section 9601 et seq.), as amended, the Resource Conservation and Recovery Act (42
U.S.C. section 6901 et seq.), as amended, the Federal Water Pollution Control Act (33 U.S.C.
section 1251 et seq.), as amended, the Clean Air Act (42 U.S.C. section 7401 et seq.), as amended,
the Toxic Substances Control Act (15 U.S.C. section 2601 et seq.), as amended, the Occupational
Safety and Health Act (29 U.S.C. section 651 et seq.), as amended, the Safe Drinking Water Act (42
U.S.C. section 300(f) et seq.), as amended, analogous state, tribal or local laws, and any similar,
implementing or successor law, and any amendment,

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rule, regulation, or directive issued thereunder, including any determination by, or
interpretation of any of the foregoing by any Governmental Authority that has the force of law.

          
“Force Majeure” means any cause beyond the reasonable control of a Party, including the
following causes (unless they are within such Party’s reasonable control): acts of God, strikes,
lockouts, acts of the public enemy, wars or warlike action (whether actual or impending), arrests
and other restraints of government (civil or military), blockades, embargoes, insurrections, riots,
epidemics, landslides, lightning, earthquakes, fires, sabotage, tornadoes, named tropical storms
and hurricanes, and floods, civil disturbances, terrorism, mechanical breakdown of machinery or
equipment, explosions, confiscation or seizure by any government or other public authority, any
order of any court of competent jurisdiction, regulatory agency or governmental body having
jurisdiction.

          
“General Partner” is defined in the introductory paragraph.

          
“Governmental Approval” means any material consent, authorization, certificate, permit,
right-of-way grant or approval of any Governmental Authority that is necessary for the
construction, ownership and operation of the Assets in accordance with applicable Laws.

          
“Governmental Authority” means any court or tribunal in any jurisdiction or any federal,
state, tribal, municipal or local government or other governmental body, agency, authority,
department, commission, board, bureau, instrumentality, arbitrator or arbitral body or any
quasi-governmental or private body lawfully exercising any regulatory or taxing authority.

          
“Laws” means any applicable statute, Environmental Law, common law, rule, regulation,
judgment, order, ordinance, writ, injunction or decree issued or promulgated by any Governmental
Authority.

          
“Limited Partners” is defined in the Partnership Agreement.

          
“Parties” is defined in the introductory paragraph.

          
“Partnership” is defined in the introductory paragraph.

          
“Partnership Agreement” means the First Amended and Restated Agreement of Limited Partnership
of the Partnership, as may be amended or restated from time to time.

          
“Partnership Expense” is defined in Section 4.1.

          
“Partnership Expense Reconciling Invoice” is defined in Section 4.2(b).

          
“Partnership Group” means the General Partner, the Partnership, the Operating Company and all
of their respective Subsidiaries.

          
“Partnership Group Indemnified Party” is defined in Section 9.1(c).

          
“Payment Default” means (i) the failure of the Partnership to pay any amount requested by RNRC
pursuant to a Cash Advance Notice on or before the 5th  Business Day following

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receipt of such Cash Advance Notice or (ii) the failure of the Partnership to pay any amount
set forth on a Partnership Expense Reconciling Invoice on or before the 45th day
following the receipt of such Partnership Expense Reconciling Invoice.

          
“Person” means an individual or a corporation, limited liability company, partnership, joint
venture, trust, unincorporated organization, association, government agency or political
subdivision thereof or other entity.

          
“Resolute Holdings” means Resolute Holdings, LLC, a Delaware limited liability company.

          
“RNRC” is defined in the introductory paragraph.

          
“RNRC Indemnified Party” is defined in Section 9.1(b).

          
“Services” is defined in Section 2.2.

          
“Service Standard” means, with respect to the performance of the Services, the good faith
undertaking, on a commercially reasonable basis, to perform the Services in all material respects
in compliance with applicable material Governmental Approvals and Laws and prudent industry
practices.

          
“Subsidiary” means, with respect to any Person, (a) a corporation of which more than 50% of
the voting power of shares entitled (without regard to the occurrence of any contingency) to vote
in the election of directors or other governing body of such corporation is owned, directly or
indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such
Person or a combination thereof, (b) a partnership (whether general or limited) in which such
Person or a Subsidiary of such Person is, at the date of determination, a general or limited
partner of such partnership, but only if more than 50% of the partnership interests of such
partnership (considering all of the partnership interests of the partnership as a single class) is
owned, directly or indirectly, at the date of determination, by such Person, by one or more
Subsidiaries of such Person, or a combination thereof, or (c) any other Person (other than a
corporation or a partnership) in which such Person, one or more Subsidiaries of such Person, or a
combination thereof, directly or indirectly, at the date of determination, has (i) at least a
majority ownership interest or (ii) the power to elect or direct the election of a majority of the
directors or other governing body of such Person.

          
Other terms defined herein have the meanings so given them.

     Section 1.2 Construction.

          
Unless the context requires otherwise: (a) any pronoun used in this Agreement shall include
the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and
verbs shall include the plural and vice versa; (b) references to Articles and Sections refer to
Articles and Sections of this Agreement; (c) references to Exhibits refer to the Exhibits attached
to this Agreement, each of which is made a part hereof for all purposes; (d) the terms “include”,
“includes”, “including” and words of like import shall be deemed to be

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followed by the words “without limitation”; (e) the terms “hereof,” “herein” and “hereunder”
refer to this Agreement as a whole and not to any particular provision of this Agreement; and (f)
references to money refer to legal currency of the United States of America. The table of contents
and headings contained in this Agreement are for reference purposes only, and shall not affect in
any way the meaning or interpretation of this Agreement.

ARTICLE II

RETENTION OF RNRC; SCOPE OF SERVICES

     Section 2.1 Retention of RNRC.

          
The Partnership hereby engages RNRC to perform the Services in accordance with the Service
Standard, as directed by the General Partner, and to provide all personnel and any facilities,
goods and equipment not otherwise provided by the Partnership Group necessary to perform the
Services in accordance with the Service Standard. RNRC hereby accepts such engagement and agrees
to perform the Services requested by the General Partner and to provide any personnel, facilities,
goods and equipment not otherwise provided by the Partnership Group, and to provide all employees
as may be reasonable and necessary to perform the Services in accordance with the Service Standard.
RNRC hereby covenants and warrants that all Services will be performed in accordance with the
Service Standard.

     Section 2.2 Scope of Services.

          
The “Services” shall consist of such services the General Partner determines may be reasonable
and necessary to operate the Business, including, without limitation those services described on
Schedule I hereto.

     Section 2.3 Exclusion of Services.

          
The General Partner may temporarily or permanently exclude any particular service from the
scope of the Services upon 60 days’ notice to RNRC.

     Section 2.4 Performance of Services by Affiliates and Third Parties.

          
The Parties hereby agree that in discharging its obligations hereunder, RNRC may engage any of
its Affiliates or any qualified third party to perform the Services (or any part of the Services)
on its behalf and that the performance of the Services (or any part of the Services) by any such
Affiliate or third party shall be treated as if RNRC performed such Services itself.
Notwithstanding the foregoing, nothing contained herein shall relieve RNRC of its obligations
hereunder.

     Section 2.5 Intellectual Property.

          
          
(a) Any (i) inventions, whether patentable or not, developed or invented, or (ii)
copyrightable material (and the intangible rights of copyright therein) developed, by RNRC, its
Affiliates or its or their employees in connection with the performance of the Services shall be

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the property of RNRC; provided, however, that the Partnership Group shall be granted an
irrevocable, royalty-free, non-exclusive and non-transferable right and license to use such
inventions or material; and further provided, however, that the Partnership Group shall only be
granted such a right and license to the extent such grant does not conflict with, or result in a
breach, default, or violation of a right or license to use such inventions or material granted to
RNRC by any Person other than an Affiliate of RNRC. Notwithstanding the foregoing, RNRC will use
all commercially reasonable efforts to grant such right and license to the Partnership Group.

          
          
(b) The General Partner and the Partnership and the Operating Company hereby grant to RNRC and
its Affiliates an irrevocable, royalty-free, non-exclusive and non-transferable right and license
to use, during the term of this Agreement, any intellectual property provided by the Partnership
Group to RNRC or its Affiliates, but only to the extent such use is necessary for the performance
of the Services. RNRC agrees that it and its Affiliates will utilize such intellectual property
solely in connection with the performance of the Services.

          
Section 2.6 Appointment of Independent Accounting Firm and Independent Petroleum Engineer.

          
Notwithstanding anything to the contrary in this Agreement, the Parties hereby recognize and
agree that the General Partner shall have the exclusive authority to appoint an independent
accounting firm to audit the financial statements of the Partnership and an independent petroleum
engineer to provide reports to the Partnership relating to estimates of proved reserves for
Securities and Exchange Commission and other reporting purposes.

ARTICLE III

BOOKS, RECORDS AND REPORTING

     Section 3.1 Books and Records.

          
RNRC shall maintain accurate books and records regarding the performance of the Services and
its calculation of the Partnership Expenses, and shall maintain such books and records for the
period required by applicable accounting practices or law.

     Section 3.2 Audits.

          
The Partnership shall have the right, upon reasonable notice, and at all reasonable times
during usual business hours, to audit, examine and make copies of the books and records referred to
in Section 3.1. Such right may be exercised through any agent or employee of the Partnership Group
designated in writing by it or by an independent public accountant, engineer, attorney or other
agent so designated. The Partnership shall bear all costs and expenses incurred in any inspection,
examination or audit. RNRC shall review and respond in a timely manner to any claims or inquiries
made by the Partnership regarding matters revealed by any such inspection, examination or audit.

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     Section 3.3 Reports.

          
RNRC shall prepare and deliver to the Partnership any reports provided for in this Agreement
and such other reports as the Partnership may reasonably request from time to time regarding the
performance of the Services.

ARTICLE IV

PARTNERSHIP EXPENSES

     Section 4.1 Partnership Expenses.

          
The Partnership shall reimburse or provide a cash advance to RNRC for all direct and indirect
expenses RNRC incurs, or payments it makes on behalf of the Partnership Group or expenses allocated
to RNRC by its Affiliates, in each case in connection with the performance by RNRC or its
Affiliates of the Services (including, subject to Section 4.5, salary, bonus, incentive
compensation and other amounts paid to any Person to perform the Services) (each such expense, a
“Partnership Expense”). RNRC shall charge the Partnership for personnel related expenses based on
RNRC’s good-faith determination or reasonable estimate of the actual time or proportion of time
spent by its personnel performing the Services, plus an allocation of expenses other than personnel
related expenses based on systematic and rational allocations as determined by RNRC.
Notwithstanding the foregoing, the Partnership shall be obligated to reimburse RNRC for a portion
of the cost of the existing benefit plans and incentive compensation plans of RNRC. The amount of
the reimbursement shall be determined by RNRC on any basis that it deems to be reasonable and need
not be based on the amount of services performed for the Partnership.

     Section 4.2 Payment of Partnership Expenses.

          
          
(a) RNRC may at any time send a notice to the Partnership requesting a cash advance to provide
necessary funds to pay any Partnership Expense (each such notice, a “Cash Advance Notice”), and the
Partnership, subject to the terms and conditions hereof, shall make a payment to RNRC in the amount
requested on the Cash Advance Notice within [1] business day of receipt of such Cash Advance
Notice; provided, however, that RNRC may not send more than
two such Cash Advance Notices in any calendar month. Each Cash Advance Notice shall specify in reasonable detail the Services provided and
charges assessed in connection with the provision of such Services. RNRC shall have the authority
to withdraw any Cash Advance Notice at any time prior to the time that funding is provided
thereunder.

          
          
(b) RNRC shall invoice the Partnership on or before the end of each month for an amount equal
to the total Partnership Expenses for the preceding month (calculated on the basis of actual cost
of the Services provided hereunder), minus any amounts paid with respect to such Partnership
Expenses pursuant to a Cash Advance Notice, plus or minus any adjustment necessary to correct prior
estimated expenses as set forth on any Cash Advance Notice to actual expenses (the “Partnership
Expense Reconciling Invoice”),. RNRC will provide supporting documentation with respect to the
actual costs of Services provided hereunder for the time period to which the Partnership Expense
Reconciling Invoice relates, as agreed upon from time to time by the Parties hereto. Subject to
Section 4.3, all Partnership Expense Reconciling Invoices shall

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be due and
payable, in immediately available funds, on or before the 5th day after
receipt of such Partnership Expense Reconciling Invoice. In the event that RNRC owes the
Partnership any amount pursuant to a Partnership Expense Reconciling Invoice, RNRC will credit such
amount against the Partnership Expenses incurred after the receipt of such Partnership Expense
Reconciling Invoice.

     Section 4.3 Disputed Charges.

          
THE PARTNERSHIP MAY, WITHIN 120 DAYS AFTER RECEIPT OF A CHARGE FROM RNRC, TAKE WRITTEN
EXCEPTION TO SUCH CHARGE, ON THE GROUND THAT THE SAME WAS NOT A REASONABLE COST INCURRED BY RNRC OR
ITS AFFILIATES IN CONNECTION WITH THE SERVICES. THE PARTNERSHIP SHALL NEVERTHELESS ADVANCE OR PAY
RNRC IN FULL WHEN DUE THE FULL ADVANCE OR AMOUNT OWED TO RNRC PURSUANT TO THIS ARTICLE IV. SUCH
ADVANCE OR PAYMENT SHALL NOT BE DEEMED A WAIVER OF THE RIGHT OF THE PARTNERSHIP TO RECOUP ANY
CONTESTED PORTION OF ANY AMOUNT SO PAID. HOWEVER, IF THE AMOUNT AS TO WHICH SUCH WRITTEN EXCEPTION
IS TAKEN, OR ANY PART THEREOF, IS ULTIMATELY DETERMINED NOT TO BE A REASONABLE COST INCURRED BY
RNRC OR ITS AFFILIATES IN CONNECTION WITH ITS PROVIDING THE SERVICES HEREUNDER, SUCH AMOUNT OR
PORTION THEREOF (AS THE CASE MAY BE) SHALL BE REFUNDED BY RNRC TO THE PARTNERSHIP TOGETHER WITH
INTEREST THEREON AT THE DEFAULT RATE DURING THE PERIOD FROM THE DATE OF PAYMENT BY THE PARTNERSHIP
TO THE DATE OF REFUND BY RNRC.

     Section 4.4 Set Off.

          
In the event that RNRC or the Partnership owes the other party a sum certain in an uncontested
amount under any other agreement, then any such amounts may be aggregated and the Partnership or
RNRC may discharge their obligations by netting those amounts against any amounts owed by one party
to the other under this Agreement.

     Section 4.5 RNRC’s Employees.

          
The obligations under Sections 4.1 and 4.2, to the extent they relate to Services provided by
employees of RNRC or its Affiliates, shall be limited to payment to RNRC for expenses in connection
with its or its Affiliates’ employees engaged in the provision of Services hereunder, and the
Partnership shall not be obligated to pay to RNRC’s or its Affiliates’ employees directly any
compensation, salaries, wages, bonuses, benefits, social security taxes, workers’ compensation
insurance, retirement and insurance benefits, training and other such expenses; provided, however,
that the Partnership may, at its option, compensate such employees under one or more equity-based
or related incentive compensation plans for the provision of Services hereunder; and provided
further, however, that if RNRC fails to pay any employee, with the exception of employee claims for
amounts owed that RNRC disputes in good faith, within 30 days of the date such employee’s payment
is due:

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(a) The Partnership may pay such employee directly or employ such employee directly; and

          
          
(b) RNRC shall reimburse the Partnership, as the case may be, the amount the Partnership paid
to RNRC for employee services that RNRC did not pay to any such employee and the amount of any
expense incurred by the Partnership for employee benefits for such employee.

     Section 4.6 Approval of Expenses.

          
RNRC acknowledges that all charges for Services assessed by RNRC and included in the
Partnership Expenses must be approved by the persons authorized to approve such Partnership
Expenses pursuant to the Partnership’s governance and delegation-of-authority process.
Additionally, RNRC acknowledges that the Audit Committee of the General Partner’s Board of
Directors may at any time review the Partnership Expenses and the levels of Services and, as a
result, may direct the Partnership to decrease the level of Services pursuant to Section 2.3 or to
dispute a prior invoice pursuant to Section 4.3. In addition to the information RNRC is obligated
to provide pursuant to Section 4.2, RNRC shall provide such other information as reasonably
necessary to determine the veracity or appropriateness of any Partnership Expense hereunder.

ARTICLE V

FORCE MAJEURE

     Section 5.1 Force Majeure.

          
A Party’s obligation under this Agreement shall be excused when and to the extent its
performance of that obligation is prevented due to Force Majeure; provided, however, that a Party
shall not be excused by Force Majeure from any obligation to pay money. The Party that is
prevented from performing its obligation by reason of Force Majeure shall promptly notify the other
Parties of that fact and shall exercise due diligence to end its inability to perform as promptly
as practicable. Notwithstanding the foregoing, a Party is not required to settle any strike,
lockout or other labor dispute in which it may be involved; provided, however, that, in the event
of a strike, lockout or other labor dispute affecting RNRC, RNRC shall use reasonable efforts to
continue to perform all obligations hereunder by utilizing its management personnel and that of its
Affiliates.

ARTICLE VI

ASSIGNMENTS AND SUBCONTRACTS

     Section 6.1 Assignments.

          
          
(a) Without the prior consent of RNRC, none of the Partnership or the other members or the
Partnership Group may sell, assign, transfer or convey any of its rights, or delegate any of its
obligations, under this Agreement to any Person.

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(b) Without the prior consent of the Partnership, RNRC may not sell, assign, transfer or
convey any of its rights, or delegate any of its obligations, under this Agreement to any Person,
other than the delegation of performance of Services to an Affiliate of RNRC or a qualified third
party as permitted by Section 2.4 and the sale, assignment, transfer or conveyance of its rights
hereunder to any such Affiliate.

          
          
(c) Notwithstanding the foregoing, a merger shall not be deemed to be an assignment and a
transfer of the rights and an assumption of the obligations under this Agreement in connection with
the transfer of all or substantially all of the assets of a Party shall not be deemed an assignment
of such rights or obligations of such Party to this Agreement.

     Section 6.2 Other Requirements.

          
Subject to the other provisions hereof:

          
          
(a) All materials and workmanship used or provided in performing the Services shall be in
accordance with the Service Standard and applicable specifications and standards.

          
          
(b) RNRC shall exercise reasonable diligence to obtain the most favorable terms or warranties
available from vendors, suppliers and other third parties, and where appropriate, RNRC shall assign
such warranties to the Partnership.

          
          
(c) In rendering the Services, RNRC shall not discriminate against any employee or applicant
for employment because of race, creed, color, religion, sex, national origin, age or handicap, and
shall comply with all applicable provisions of Executive Order 11246 of September 24, 1965, and any
successor order thereto. Subject to the above, RNRC shall, to the extent practicable, engage
employees who reside in or whose businesses are located in the local area or state where the
Services are performed.

          
          
(d) RNRC agrees to exercise reasonable diligence to ensure that, during the term of this
Agreement, it shall not employ unauthorized aliens as defined in the Immigration Reform and Control
Act of 1986, or any successor law.

ARTICLE VII

TERMINATION

     Section 7.1 Termination by the Partnership on behalf of the Partnership Group.

          
          
(a) Upon the occurrence of any of the following events, the General Partner, on behalf of the
Partnership Group, may terminate this Agreement by giving written notice of such termination to
RNRC:

                              (i) RNRC becomes Bankrupt;

                              (ii) RNRC dissolves and commences liquidation or winding-up; or

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                              (iii) RNRC ceases to be an Affiliate of the Partnership.

Any termination under this Section 7.1(a) shall become effective immediately upon delivery of the
notice first described in this Section 7.1(a), or such later time (not to exceed the first
anniversary of the delivery of such notice) as may be specified by the Partnership.

          
          
(b) In addition to the rights under Section 7.1(a), if at any time the General Partner
determines that RNRC has not performed the Services in accordance with the Service Standard, the
Partnership may give written notice of termination to RNRC, which notice shall set forth in
reasonable detail the Services in question and the related deficiency in such Services as compared
to the Service Standard. RNRC shall have 90 days following the date of such notice in which to
reperform such Services in accordance with the Service Standard or otherwise cure such deficiency
to the reasonable satisfaction of the General Partner. If RNRC fails to reperform such Services or
otherwise cure such deficiency in accordance with the immediately preceding sentence, then
termination under this Section 7.1(b) shall become effective on the 90th day after the
date of such notice, or such later time (not to exceed the firth anniversary of the delivery of
such notice) as may be specified in such notice.

     Section 7.2 Termination by RNRC.

          
          
(a) RNRC may terminate this Agreement by giving written notice of such termination to the
Partnership in the event that RNRC ceases to be an Affiliate of the Partnership. Any termination
under this Section 7.2(a) shall become effective 90 days after delivery of such notice.

          
          
(b) In addition to the rights under Section 7.2(a), if at any time a Payment Default has
occurred and is continuing for a period of more than 30 days, RNRC may give written notice of
termination to the Partnership, which notice shall set forth in reasonable detail the Payment
Default. The Partnership shall have 15 days following the date of such notice in which to cure
such Payment Default. If the Partnership fails to cure such Payment Default in accordance with the
immediately preceding sentence, then termination under Section 7.1(b) shall become effective on the
30th day after the date of such notice, or such later time (not to exceed the first
anniversary of the delivery of such notice) as may be specified in such notice.

     Section 7.3 Effect of Termination.

          
If this Agreement is terminated in accordance with Section 7.1 or 7.2, all rights and
obligations under this Agreement shall cease except for (a) obligations that expressly survive
termination of this Agreement; (b) liabilities and obligations that have accrued prior to such
termination, including the obligation to pay any amounts that have become due and payable prior to
such termination, and (c) the obligation to pay any Partnership Expenses that has accrued prior to
such termination, even if such portion has not become due and payable at that time.

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ARTICLE VIII

CONFIDENTIAL INFORMATION

     Section 8.1 Nondisclosure.

          
Each of RNRC and the Partnership Group agrees that (i) it will not disclose to any third party
or use any Confidential Information disclosed to it by the other except as expressly permitted in
this Agreement, and (ii) it will take all reasonable measures to maintain the confidentiality of
all Confidential Information of the other Party in its possession or control, which will in no
event be less than the measures it uses to maintain the confidentiality of its own information of
similar type and importance.

     Section 8.2 Permitted Disclosure.

          
Notwithstanding the foregoing, each Party may disclose Confidential Information (i) to the
extent required by a court of competent jurisdiction or other governmental authority or otherwise
as required by law, including without limitation disclosure obligations imposed under the federal
securities laws, provided that such Party has given the other Party prior notice of such
requirement when legally permissible to permit the other Party to take such legal action to prevent
the disclosure as it deems reasonable, appropriate or necessary, or (ii) to its consultants, legal
counsel, Affiliates, accountants, banks and other financing sources and their advisors.

ARTICLE IX

LIMITATION OF LIABILITY; INDEMNIFICATION

     Section 9.1 Liabilities and Indemnification.

          
          
(a) IN NO EVENT, OTHER THAN FOR LIABILITY ARISING FROM THE BAD FAITH OR WILLFUL MISCONDUCT OF
RNRC, SHALL RNRC BE LIABLE TO THE PARTNERSHIP GROUP, DIRECTLY OR INDIRECTLY, FOR ANY CLAIMS,
DEMANDS, SUITS, LOSSES, LIABILITIES, OBLIGATIONS, PAYMENTS, COSTS, EXPENSES OR DAMAGES, WHETHER
DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL OR PUNITIVE, OR ANY LOST REVENUES OR PROFITS
(COLLECTIVELY, “DAMAGES”), RESULTING FROM RNRC’S PERFORMANCE OR FAILURE TO PERFORM UNDER THIS
AGREEMENT, OR THE FURNISHING, PERFORMANCE OR USE OF SERVICES PROVIDED HEREUNDER, WHETHER DUE TO
BREACH OF CONTRACT, BREACH OF WARRANTY, NEGLIGENCE OR OTHERWISE, REGARDLESS OF WHETHER OR NOT RNRC
WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES IN ADVANCE. WITHOUT LIMITING THE GENERALITY OF THE
FOREGOING IN ANY RESPECT, RNRC SHALL FURTHERMORE NOT BE RESPONSIBLE OR LIABLE TO THE PARTNERSHIP
GROUP FOR ANY DAMAGES RESULTING OR ARISING FROM ANY ACTUAL OR ALLEGED INFRINGEMENT OF ANY THIRD
PARTY INTELLECTUAL PROPERTY (INCLUDING, WITHOUT LIMITATION, SERVICES, SOFTWARE, HARDWARE OR
EQUIPMENT) USED TO PROVIDE SERVICES.

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(b) The Partnership Group shall jointly and severally indemnify and hold harmless RNRC, its
subsidiaries and affiliates and their employees, officers, directors, managers, members,
representatives and agents (each, an “RNRC Indemnified Party”) from and against any and all (i)
third party claims for Damages, as incurred by any RNRC Indemnified Party, relating to or arising
out of the provision of Services by RNRC pursuant to this Agreement, or (ii) a reasonable
allocation of Damages suffered by an RNRC Indemnified Party in the conduct of its business to the
extent such Damages are not the sole result of activity for the benefit of a party or parties other
than the Partnership Group, in either case, except to the extent that it is finally judicially
determined that such Damages resulted from the bad faith or willful misconduct of such RNRC
Indemnified Party. The Partnership shall also reimburse each RNRC Indemnified Party promptly upon
request for all reasonable expenses (including reasonable attorneys’ fees and expenses) as they are
incurred in connection with the investigation of, preparation for, defense of, or providing
evidence in, any action, claim, suit, proceeding or investigation (each and collectively, an
“Action”), directly or indirectly, arising out of, or relating to, this Agreement or the Services,
as related to any matter with respect to which indemnification applies under this Agreement,
whether or not pending or threatened and whether or not any RNRC Indemnified Party is a party to
such Action.

          
          
(c) RNRC shall indemnify and hold harmless each member of the Partnership Group, its
subsidiaries and affiliates and their employees, officers, directors , managers, members,
representatives and agents (each, a “Partnership Group Indemnified Party”) from and against any all
third party claims for Damages, as incurred by any Partnership Group Indemnified Party, relating to
or arising out of the bad faith or willful misconduct of RNRC in the provision of Services by RNRC
pursuant to this Agreement. RNRC shall also reimburse each Partnership Group Indemnified Party
promptly upon request for all reasonable expenses (including reasonable attorneys’ fees and
expenses) as they are incurred in connection with the investigation of, preparation for, defense
of, or providing evidence in, any Action, directly or indirectly, arising out of, or relating to,
the bad faith or willful misconduct of RNRC under this Agreement or the Services, as related to any
matter with respect to which indemnification applies under this Agreement, whether or not pending
or threatened and whether or not any Partnership Group Indemnified Party is a party to such Action.
The Partnership Group Indemnified Party to whom any such reasonable expenses are paid shall
reimburse RNRC for any such expenses immediately upon the settlement or final judicial
determination of the matter unless it there is a final judicial determination that the claim arose
as a result of the bad faith or willful misconduct of RNRC.

ARTICLE X

DISPUTE RESOLUTION

          
If the Parties are unable to resolve any dispute regarding the validity or terms of this
Agreement or its termination, service or performance issues, there is a material breach of this
Agreement that has not been corrected within thirty (30) days of receipt of notice of such breach
or any other dispute between the parties related to this Agreement, either party hereto may refer
the matter to an arbitrator selected in accordance with the rules of [•] as the exclusive remedy
for

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any such dispute, and in lieu of any court action, which is hereby waived. The only exception
shall be a claim by either Party for injunctive relief pending arbitration.

ARTICLE XI

GENERAL PROVISIONS

     Section 11.1 Notices.

          
All notices or other communications required or permitted under, or otherwise in connection
with, this Agreement must be in writing and must be given by depositing same in the mail, addressed
to the Person to be notified, postpaid and registered or certified with return receipt requested or
by transmitting by national overnight courier or by transmitting by national overnight courier or
by delivering such notice in person or by facsimile to such Party. Notice given by mail, national
overnight courier or personal delivery shall be effective upon actual receipt. Notice given by
facsimile shall be effective upon confirmation of receipt when transmitted by facsimile if
transmitted during the recipient’s normal business hours or at the beginning of the recipient’s
next business day after receipt if not transmitted during the recipient’s normal business hours.
All notices to be sent to a Party pursuant to this Agreement shall be sent to or made at the
address, in each case as follows:

if to the General Partner:

Resolute Energy GP, LLC

1675 Broadway, Suite 1950

Denver, Colorado 80202

Attention: James M. Piccone

Fax: (303)-623-3628

if to the Partnership:

Resolute Energy Partners LP

1675 Broadway, Suite 1950

Denver, Colorado 80202

Attention: James M. Piccone

Fax: (303)-623-3628

if to the Operating Company:

Resolute Energy Operating LLC

1675 Broadway, Suite 1950

Denver, Colorado 80202

Attention: James M. Piccone

Fax: (303)-623-3628

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if to RNRC:

Resolute Natural Resources Company

1675 Broadway, Suite 1950

Denver, Colorado 80202

Attention: James M. Piccone

Fax: (303)-623-3628

     Section 11.2 Further Action.

          
The Parties shall execute and deliver all documents, provide all information and take or
refrain from taking action as may be necessary or appropriate to achieve the purposes of this
Agreement.

     Section 11.3 Binding Effect.

          
This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their
heirs, executors, administrators, successors, legal representatives and permitted assigns.

     Section 11.4 Integration.

          
This Agreement constitutes the entire Agreement among the Parties hereto pertaining to the
subject matter hereof and supersedes all prior agreements and understandings pertaining thereto.

     Section 11.5 Creditors.

          
None of the provisions of this Agreement shall be for the benefit of, or shall be enforceable
by, any creditor of the Partnership.

     Section 11.6 Waiver.

          
No failure by any party to insist upon the strict performance of any covenant, duty, agreement
or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof
shall constitute waiver of any such breach of any other covenant, duty, agreement or condition.

     Section 11.7 Counterparts.

          
This Agreement may be executed in counterparts, all of which together shall constitute an
agreement binding on all the Parties hereto, notwithstanding that all such Parties are not
signatories to the original or the same counterpart. Each Party shall become bound by this
Agreement immediately upon affixing its signature hereto.

     Section 11.8 Applicable Law.

          
This Agreement shall be construed in accordance with and governed by the laws of the State of
Delaware, without regard to the principles of conflicts of law.

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     Section 11.9 Invalidity of Provisions.

          
If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions contained herein
shall not be affected thereby.

     Section 11.10 Amendment or Restatement.

          
This Agreement may be amended or modified from time to time only by the written agreement of
all the Parties hereto; provided, however, that if at the time of such amendment or modification
the limited partner interests of the Partnership are listed or traded on an “exchange” as defined
in Section 3(a)(1) of the Securities Exchange Act of 1934, as amended, such amendment or
modification must be approved by the Conflicts Committee unless the General Partner determines in
good faith that such amendment or modification will not adversely affect the Limited Partners in
any material respect. The Parties hereto agree that, for purposes of this Section 11.10, any
material change in the nature, quantity or duration of the Services to be provided under this
Agreement shall constitute a modification of this Agreement.

     Section 11.11 Directly or Indirectly.

          
Where any provision of this Agreement refers to action to be taken by any Party, or which such
Party is prohibited from taking, such provision shall be applicable whether such action is taken
directly or indirectly by such Party, including actions taken by or on behalf of any Affiliate of
such Party.

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IN WITNESS WHEREOF, the Parties have executed this Agreement on, and effective as of, the
Effective Date.

	 	 	 	 	 
	 	RESOLUTE ENERGY GP, LLC

 	 
	 	By:  	
 	 
	 	 	Name:  	Nicholas J. Sutton 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

	 	 	 	 	 	 	 
	 	RESOLUTE ENERGY PARTNERS LP

 	 
	 	By:  	Resolute Energy GP LLC, its General Partner 	 
	 	 	 	 
	 
	 	 	 	By:  	 	 
	 	 	 	 	Name:  	Nicholas J. Sutton 	 
	 	 	 	 	Title:  	Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	RESOLUTE ENERGY OPERATING LLC

 	 
	 	By:  	 	 
	 	 	Name:  	Nicholas J. Sutton 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	RESOLUTE NATURAL RESOURCES COMPANY

 	 
	 	By:  	
 	 
	 	 	Name:  	Nicholas J. Sutton 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

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SCHEDULE I

Services Provided By RNRC

to Partnership

	1.	 	Accounting
	 
	2.	 	Information Technology
	 
	3.	 	Real Property, Land
	 
	4.	 	Legal
	 
	5.	 	Securities and Exchange Commission and Stock Exchange Reporting and Compliance
	 
	6.	 	Operations/Reservoir Engineering/Geology/Geophysics
	 
	7.	 	Administrative Services
	 
	8.	 	Financial Services
	 
	9.	 	Insurance Service
	 
	10.	 	Risk Management
	 
	11.	 	Corporate Development
	 
	12.	 	Commercial and Marketing
	 
	13.	 	Treasury
	 
	14.	 	Tax
	 
	15.	 	Audit
	 
	16.	 	SOX
	 
	17.	 	Investor Relations
	 
	18.	 	Environmental, Health and Safety
	 
	19.	 	Data Retention and Destruction
	 
	20.	 	Planning, Budget and Executive Function
	 
	21.	 	Hedging, Derivatives and Risk Management

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