Document:

enva-ex1025_459.htm

Exhibit 10.25

EXECUTION VERSION

AMENDMENT NO. 3 AND REVOLVING COMMITMENT INCREASE

THIS AMENDMENT NO. 3 AND REVOLVING COMMITMENT INCREASE, dated as of December 29, 2015 (this “Commitment Increase Agreement”), by and among ENOVA INTERNATIONAL, INC., a Delaware corporation, as borrower (the “Company”), the Guarantors party hereto, the Lender listed on the signature pages hereto (the “Amendment No. 3 Increasing Lender”) and Jefferies Finance LLC, as administrative agent (in such capacity, the “Administrative Agent”).  Capitalized terms used herein but not defined herein shall have the meanings used in the Credit Agreement (as defined below).

RECITALS:

WHEREAS, reference is hereby made to that certain Credit Agreement, dated as of May 14, 2014, among the Company, the Guarantors, the Lenders from time to time party thereto, and the Administrative Agent, as amended by Amendment to Credit Agreement, dated as of March 25, 2015, by and among the Company, the Guarantors, the Required Lenders and the Administrative Agent, and Amendment No. 2 to Credit Agreement, dated as of November 5, 2015, by and among the Company, the Guarantors, the Required Lenders and the Administrative Agent (as amended or modified, the “Credit Agreement”); and

WHEREAS, the Company has requested, pursuant to Section 2.19(a) of the Credit Agreement, to increase the Revolving Committed Amount by an aggregate principal amount not to exceed $15,000,000 (the “Amendment No. 3 Revolving Commitment”), and the Amendment No. 3 Increasing Lender hereby agrees to make revolving loans thereunder (each such loan, an “Amendment No. 3 Revolving Loan”).

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

Section 1.  Aggregate Revolving Commitment Increase.  On the Additional Commitment Effective Date (as defined below) and subject to the terms and conditions set forth herein, the Amendment No. 3 Increasing Lender hereby agrees to provide the Amendment No. 3 Revolving Commitment such that, after giving effect to the Amendment No. 3 Revolving Commitment, the Revolving Committed Amount under the Credit Agreement shall equal $75,000,000.

Section 2.  Concerning the Additional Revolving Commitment.  The Amendment No. 3 Revolving Commitment shall be deemed for all purposes under the Credit Agreement a Revolving Commitment and each Amendment No. 3 Revolving Loan made thereunder shall be deemed for all purposes under the Credit Agreement a Revolving Loan.  The terms and provisions of the Amendment No. 3 Revolving Commitment and 

 

 

the Amendment No. 3 Revolving Loans shall be identical to those set forth in the Credit Agreement for the Revolving Commitment and Revolving Loans, respectively, other than as expressly set forth in this Commitment Increase Agreement.

Section 3.  Amendments.

(a)The following defined terms are hereby added to Section 1.1 of the Credit Agreement in appropriate alphabetical order:

“Amendment No. 3 and Revolving Commitment Increase” shall mean Amendment No. 3 and Revolving Commitment Increase, dated as of December 29, 2015, by and among the Borrower, the Guarantors party thereto, the Lender party thereto and the Administrative Agent.

“Amendment No. 3 Increasing Lender” shall have the meaning set forth in Amendment No. 3 and Revolving Commitment Increase. 

“Amendment No. 3 Repayment Date” means the date that is two Business Days after the Borrower receives proceeds from a Permitted Receivables Financing.

“Amendment No. 3 Revolving Commitment” shall have the meaning set forth in Amendment No. 3 and Revolving Commitment Increase.

“Amendment No. 3 Revolving Loan” shall have the meaning set forth in Amendment No. 3 and Revolving Commitment Increase.

“Net Cash Proceeds” means, with respect to any event, (a) the cash proceeds received in respect of such event including (i) any cash received in respect of any non-cash proceeds (including any cash payments received by way of deferred payment of principal pursuant to a note or installment receivable or purchase price adjustment receivable or otherwise, but excluding any interest payments), but only as and when received, (ii) in the case of a casualty, cash insurance proceeds and (iii) in the case of a condemnation or similar event, cash condemnation awards and similar cash payments, net of (b) the sum of (i) all reasonable fees, commissions and out-of-pocket expenses paid to third parties (other than Affiliates) in connection with such event, (ii) in the case of a sale, transfer or other disposition of an asset (including a casualty or a condemnation or similar proceeding), the amount of all payments required to be made as a result of such event to repay indebtedness secured by an encumbrance permitted under Section 6.1 on such asset, (iii) the amount of all taxes paid or reasonably estimated to be payable as a result thereof (after taking into account any available tax credits or deductions and any tax sharing arrangements) and (iv) the amount of any reserves established in accordance with GAAP to fund contingent liabilities under any indemnification obligations and any purchase price adjustments associated with a sale, transfer or other disposition of an asset that are directly attributable to such event.

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(b)The Credit Agreement is hereby amended as follows: 

(i)The cover page is amended by deleting the text “$60,000,000” and inserting in its place the text “$75,000,000”.

(ii)Section 2.1(a)(i) is hereby amended by deleting the text “SIXTY MILLION DOLLARS ($60,000,000)” and inserting in its place the text “SEVENTY-FIVE MILLION DOLLARS ($75,000,000)”.  

(iii)The first paragraph of the Recitals is hereby amended by deleting the text “$60,000,000” and inserting in its place the text “$75,000,000”.

(iv)The period at the end of the first sentence of Section 2.1(a)(i) is hereby deleted and replaced with a semicolon, and the following proviso shall be added after the semicolon:

“provided, further, however, that, notwithstanding the foregoing and subject to the terms and conditions of Amendment No. 3 and Revolving Commitment Increase and the terms and conditions of this Agreement, each Revolving Lender severally, but not jointly, agrees to make available to the Borrower: (i) an Amendment No. 3 Revolving Loan on December 28, 2015 only in an amount equal to $5,000,000 and (ii) an Amendment No. 3 Revolving Loan on January 4, 2016 only in an amount equal to $10,000,000.”

(v)Section 2.4 is hereby amended by adding the following clause (d) thereto:

“(d)Amendment No. 3 and Revolving Commitment Increase Upfront Fee.  In consideration for Amendment No. 3 Increasing Lender’s commitment to provide the Amendment No. 3 Revolving Commitment, the Borrower agrees to pay to the Amendment No. 3 Increasing Lender a fee equal to 1.00% of the Amendment No. 3 Revolving Commitment, which shall be paid as described in Amendment No. 3 and Revolving Commitment Increase.”

(vi)Section 2.5 is hereby amended by adding the following clause (f) thereto:

“(f)Certain Commitment Reductions.  (i) On the Amendment No. 3 Repayment Date, the Revolving Committed Amount shall be automatically and permanently reduced to $40,000,000, and, in addition, to the extent the Revolving Committed Amount has not been automatically and permanently reduced to $40,000,000 pursuant to this clause (f)(i), (ii)(A) on January 22, 2016, the Amendment No. 3 Revolving Commitment shall be automatically and permanently terminated and (B) on February 29, 2016, the Revolving Committed Amount shall be automatically and permanently reduced to $40,000,000.”

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(vii)Section 2.6(b)(i) is hereby amended by (a) inserting “(A)” at the beginning of the first paragraph thereof and (b) adding the following clause (B) at the end thereof:   

“(B)In addition, notwithstanding anything to the contrary in this Agreement relating to the application of payments, the Borrower shall repay the Revolving Loans as follows: 

(a)on the Amendment No. 3 Repayment Date, if the Borrower or any Subsidiary has closed a Permitted Receivables Financing that yields Net Cash Proceeds greater than or equal to the aggregate outstanding principal balance of the Revolving Loans at the time of the closing of the Permitted Receivables Financing, the Borrower shall repay the Revolving Loans in full.

(b)on the Amendment No. 3 Repayment Date, if the process that the Borrower or any Subsidiary has undertaken in respect of a contemplated Permitted Receivables Financing has yielded Net Cash Proceeds less than the aggregate outstanding principal balance of the Revolving Loans as of the Amendment No. 3 Repayment Date, the Borrower shall repay the Revolving Loans in an amount equal to the greater of: (i) the Net Cash Proceeds received by the Borrower or a Subsidiary from the Permitted Receivables Financing and (ii) an amount of Revolving Loans necessary to reduce the aggregate outstanding principal balance of Revolving Loans to $40,000,000.

(c)without duplication of clauses (a) and (b) above, if the Amendment No. 3 Revolving Loans are still outstanding on January 22, 2016, the Borrower shall repay the Amendment No. 3 Revolving Loans in full on such date.  

(d)without duplication of clauses (a) through (c) above, if the aggregate outstanding principal balance of the Revolving Loans exceeds $40,000,000 on February 29, 2016, the Borrower shall repay the Revolving Loans on such date in an amount necessary to reduce the aggregate outstanding principal balance of the Revolving Loans to $40,000,000.” 

Section 4  Representations and Warranties.  To induce the other parties hereto to enter into this Commitment Increase Agreement, the Company represents and warrants to each other party hereto that as of the date hereof and as of the Additional Commitment Effective Date:

(a)The execution, delivery and performance by the Company of this Commitment Increase Agreement are (i) within the Company’s corporate powers, (ii) have been duly authorized by all necessary corporate action, and (iii) do not and will not (A) contravene the terms of any of the Company’s Organization Documents, (B) materially conflict with or result in any breach or contravention of, or the creation of any Lien under (other than as permitted by the Credit Agreement), or require any payment to be made under any Contractual Obligation to which the Company is a party or affecting the Company or the properties of the Company or any of its Subsidiaries or any order, 

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injunction, writ or decree, of or with any Governmental Authority to which the Company or its Property is subject; or (C) violate, in any material respect, any Law. 

(b)This Commitment Increase Agreement has been duly executed and delivered by the Company.  This Commitment Increase Agreement constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other Laws affecting creditors’ rights generally and by general principles of equity, whether applied by a court of law or equity.

(c)The representations and warranties of each Credit Party set forth in Article III of the Credit Agreement and in the other Credit Documents that are qualified by materiality are true and correct, and the representations and warranties that are not so qualified are true and correct in all material respects, in each case on and as of the date hereof (other than with respect to any representation and warranty that expressly relates to an earlier date, in which case such representation and warranty is true and correct in all material respects as of such earlier date), other than, with respect to The Business Backer LLC and Headway Capital, LLC, Section 3.14(b) of the Credit Agreement.

(d)Immediately after giving effect to this Commitment Increase Agreement and the transactions contemplated hereby, no Default has occurred and is continuing.

(e)The execution and delivery by the Company and the Guarantors of this Commitment Increase Agreement, the performance by such parties of this Commitment Increase Agreement and the borrowing of any Amendment No. 3 Revolving Loan by the Company are permitted under the Senior Note Documents, and will not result in a violation of, or result in the creation of any lien upon or security interest in any of such Person’s properties pursuant to the terms of, any Senior Note Document. 

Section 5.  Conditions to Effectiveness of this Commitment Increase Agreement.  The effectiveness of this Commitment Increase Agreement is subject to the satisfaction of the following conditions precedent (the date on which all of such conditions shall first be satisfied (or waived), the “Additional Commitment Effective Date”):

(a)The Administrative Agent shall have received counterparts of this Commitment Increase Agreement executed by the Amendment No. 3 Increasing Lender, the Company and each Guarantor.

(b)The conditions set forth in Sections 2.19(b) and 4.2 of the Credit Agreement shall be satisfied on and as of the Additional Commitment Effective Date, and the Administrative Agent shall have received a certificate dated as of the Additional Commitment Effective Date, and signed by a Responsible Officer of the Company, to such effect.  The Administrative Agent hereby requests the items set forth in Clause (I) of Section 2.19(b).

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(c)The Company shall have paid the Amendment No. 3 Increasing Lender a fee equal to 1.00% of the Amendment No. 3 Revolving Commitment. 

(d)To the extent invoiced prior to or on the Additional Commitment Effective Date, the Company shall have paid all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent and its Affiliates (including the reasonable and documented out-of-pocket fees, charges and disbursements of counsel for the Administrative Agent) in connection with the preparation, negotiation, execution and delivery of this Commitment Increase Agreement and any other documents related thereto.

Section 6  Effect of Amendment. On and after the Additional Commitment Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of like import, and each reference to the Credit Agreement in any other Credit Document shall be deemed a reference to the Credit Agreement as amended hereby.  This Commitment Increase Agreement shall constitute a “Credit Document” for all purposes of the Credit Agreement and the other Credit Documents.

Section 7.  Governing Law.  THIS COMMITMENT INCREASE AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

Section 8.  Costs and Expenses.  In each case subject to the limitations on reimbursement of costs and expenses set forth in Section 9.5 of the Credit Agreement, the Company agrees to reimburse the Administrative Agent for its reasonable and documented out-of-pocket expenses in connection with this Commitment Increase Agreement, including the reasonable fees, charges and disbursements of Davis Polk & Wardwell LLP, counsel for the Administrative Agent.

Section 9.  Miscellaneous.  This Commitment Increase Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Delivery by facsimile or other electronic imaging means of an executed counterpart of a signature page to this Commitment Increase Agreement shall be effective as delivery of an original executed counterpart of this Commitment Increase Agreement.

Section 10.  Headings.  Section headings herein are included for convenience of reference only and shall not affect the interpretation of this Commitment Increase Agreement.

[Remainder of page intentionally blank]

 

 

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IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute and deliver this Commitment Increase Agreement as of the day and year first above written.

 

	
Jefferies Group LLC, as Amendment No. 3 Increasing Lender

	
 
	
 

	
By:
	
/s/ MARK SAHLER

	
 
	
Name: Mark Sahler

	
 
	
Title: Managing Director

 

 

 

COMPANY: 

 

	
ENOVA INTERNATIONAL, INC.,
a Delaware corporation

	
 
	
 

	
By:
	
/s/ DAVID A. FISHER

	
 
	
Name: David A. Fisher

	
 
	
Title: President

 

GUARANTORS:

 

	
	
ENOVA ONLINE SERVICES, INC.
CNU DOLLARSDIRECT INC.
CNU DOLLARSDIRECT LENDING INC.
MOBILE LEASING GROUP, INC.
ENOVA FINANCIAL HOLDINGS, LLC
CNU ONLINE HOLDINGS, LLC
DEBIT PLUS, LLC
BILLERS ACCEPTANCE GROUP, LLC

 

	
By:
	
/s/ DAVID A. FISHER

	
 
	
Name: David A. Fisher

	
 
	
Title: President of each of the foregoing

 

	
DP LABOR HOLDINGS, LLC

	
 
	
 

	
By:
	
/s/ DAVID A. FISHER

	
 
	
Name: David A. Fisher

	
 
	
Title: President

 

 

 

	
CNU OF ALABAMA, LLC
CNU OF ALASKA, LLC

CNU OF ARIZONA, LLC
CNU OF CALIFORNIA, LLC
CNU OF COLORADO, LLC
CNU OF DELAWARE

CNU OF FLORIDA, LLC

CASHNETUSA OF FLORIDA, LLC

CNU OF HAWAII, LLC

CNU OF IDAHO, LLC

CNU OF ILLINOIS, LLC

CNU OF INDIANA, LLC

CNU OF KANSAS, LLC

CNU OF LOUISIANA, LLC

CNU OF MAINE, LLC

CASHNET CSO OF MARYLAND, LLC

CNU OF MICHIGAN, LLC

CNU OF MINNESOTA, LLC

CNU OF MISSISSIPPI, LLC

CNU OF MISSOURI, LLC

CNU OF MONTANA, LLC

CNU OF NEVADA, LLC

CNU OF NEW HAMPSHIRE, LLC

CNU OF NEW MEXICO, LLC

	
 

	
By:
	
CNU Online Holdings, LLC,

The sole member of each of the foregoing entities

	
 
	
 

	
By:
	
/s/ DAVID A. FISHER

	
 
	
Name: David A. Fisher

	
 
	
Title: President

 

 

 

 

	
CNU OF NORTH DAKOTA, LLC

CNU OF OHIO, LLC

OHIO CONSUMER FINANCIAL SOLUTIONS, LLC

CNU OF OKLAHOMA, LLC

CNU OF OREGON, LLC

CNU OF RHODE ISLAND, LLC

CNU OF SOUTH CAROLINA, LLC

CNU OF SOUTH DAKOTA, LLC

CNU OF TENNESSEE, LLC

CNU OF TEXAS, LLC

CNU OF UTAH, LLC

CNU OF VIRGINIA, LLC

CNU OF WASHINGTON, LLC

CNU OF WISCONSIN, LLC

CNU OF WYOMING, LLC

DOLLARSDIRECT, LLC

CNU TECHNOLOGIES OF IOWA, LLC

HEADWAY CAPITAL, LLC

CASHEURONET UK, LLC

EURONETCASH, LLC

ENOVA BRAZIL, LLC

AEL NET MARKETING, LLC

ENOVA INTERNATIONAL GEC, LLC

AEL NET OF MISSOURI, LLC

NC FINANCIAL SOLUTIONS, LLC

TENNESSEE CNU, LLC

ENOVA LENDING SERVICES, LLC

NETCREDIT FINANCE, LLC

ENOVA FINANCE 2, LLC

ENOVA FINANCE 3, LLC

ENOVA FINANCE 4, LLC

 

	
By:
	
CNU Online Holdings, LLC,

The sole member of each of the foregoing entities

	
 
	
 

	
By:
	
/s/ DAVID A. FISHER

	
 
	
Name: David A. Fisher

	
 
	
Title: President

 

 

 

	
NC FINANCIAL SOLUTIONS OF ALABAMA, LLC

NC FINANCIAL SOLUTIONS OF ARIZONA, LLC

NC FINANCIAL SOLUTIONS OF CALIFORNIA, LLC

CREDITME, LLC

NC FINANCIAL SOLUTIONS OF DELAWARE, LLC

NC FINANCIAL SOLUTIONS OF FLORIDA, LLC

NC FINANCIAL SOLUTIONS OF GEORGIA, LLC

NC FINANCIAL SOLUTIONS OF IDAHO, LLC

NC FINANCIAL SOLUTIONS OF ILLINOIS, LLC

NC FINANCIAL SOLUTIONS OF INDIANA, LLC

NC FINANCIAL SOLUTIONS OF KANSAS, LLC

NC FINANCIAL SOLUTIONS OF LOUISIANA, LLC

NC FINANCIAL SOLUTIONS OF MARYLAND, LLC

NC FINANCIAL SOLUTIONS OF MISSISSIPPI, LLC

NC FINANCIAL SOLUTIONS OF MISSOURI, LLC

NC FINANCIAL SOLUTIONS OF MONTANA, LLC

NC FINANCIAL SOLUTIONS OF NEVADA, LLC

NC FINANCIAL SOLUTIONS OF NEW HAMPSHIRE, LLC

NC FINANCIAL SOLUTIONS OF NEW JERSEY, LLC

NC FINANCIAL SOLUTIONS OF NEW MEXICO, LLC

NC FINANCIAL SOLUTIONS OF NORTH DAKOTA, LLC

NC FINANCIAL SOLUTIONS OF OHIO, LLC

NC FINANCIAL SOLUTIONS OF OREGON, LLC

NC FINANCIAL SOLUTIONS OF RHODE ISLAND, LLC

NC FINANCIAL SOLUTIONS OF SOUTH CAROLINA, LLC

NC FINANCIAL SOLUTIONS OF SOUTH DAKOTA, LLC

NC FINANCIAL SOLUTIONS OF TENNESSEE, LLC

NC FINANCIAL SOLUTIONS OF TEXAS, LLC

NC FINANCIAL SOLUTIONS OF UTAH, LLC

NC FINANCIAL SOLUTIONS OF VIRGINIA, LLC

NC FINANCIAL SOLUTIONS OF WISCONSIN, LLC

 

	
By:
	
NC Financial Solutions, LLC

The sole member of each of the foregoing entities

	
 
	
 

	
By:
	
/s/ DAVID A. FISHER

	
 
	
Name: David A. Fisher

	
 
	
Title: Manager of Sole Member

 

 

 

 

	
DEBIT PLUS TECHNOLOGIES, LLC

DEBIT PLUS SERVICES, LLC

DEBIT PLUS PAYMENT SOLUTIONS, LLC

	
 

	
By:
	
Debit Plus, LLC,

The sole member of each of the foregoing entities

	
 
	
 

	
By:
	
/s/ DAVID A. FISHER

	
 
	
Name: David A. Fisher

	
 
	
Title: President

 

 

 

 

	
CASHNETUSA CO LLC

CASHNETUSA OR LLC

THE CHECK GIANT NM LLC

	
 
	
 

	
By:
	
CNU of New Mexico, LLC,

Manager of each of the foregoing entities

	
By:
	
CNU Online Holdings, LLC,

The sole member of each of the foregoing entities

 

	
By:
	
/s/ DAVID A. FISHER

	
 
	
Name:David A. Fisher

	
 
	
Title:President

 

	
ENOVALYTICS, LLC

ENOVACO, LLC

ENOVA BUSINESS, LLC

	
By:
	
/s/ DAVID A. FISHER

	
 
	
Name:David A. Fisher

	
 
	
Title:President

 

	
 
	
THE BUSINESS BACKER, LLC

	
By:
	
CNU Online Holdings, LLC,

Manager of the foregoing entity

	
 
	
 

	
By:
	
/s/ DAVID A. FISHER

	
 
	
Name:David A. Fisher

	
 
	
Title:President

 

 

 

	
Consented to by:

	
 

	
JEFFERIES FINANCE LLC, as Administrative Agent

 

	
By:
	
/s/ J. PAUL MCDONNELL

	
 
	
Name: J. Paul McDonnell

	
 
	
Title: Managing Directorren-ex1033_1112.htm

Exhibit 10.33

FORM OF

RESOLUTE ENERGY CORPORATION

CASH-SETTLED STOCK APPRECIATION RIGHT GRANT AGREEMENT 

(Non-Employee Directors)

 

This Cash-Settled Stock Appreciation Right Grant Agreement (Non-Employee Directors) (this “Agreement”) between RESOLUTE ENERGY CORPORATION (the “Corporation”) and [__] (“Participant”) is dated as of _______________, 20__ (the “Date of Grant”). 

 

RECITALS

 

A.The Corporation has adopted the Resolute Energy Corporation 2009 Performance Incentive Plan, as amended (the “Plan”);

B.The Plan provides for the granting of incentive awards to eligible persons as determined by the Administrator;

C.The Administrator has determined that Participant is a person eligible to receive a cash-settled stock appreciation right award under the Plan and has determined that it would be in the best interests of the Corporation to grant the award provided for herein.

AGREEMENT

1.Grant of Stock Appreciation Rights.

(a)Grant.  The Corporation hereby grants to Participant cash-settled stock appreciation rights covering [__] shares of the Corporation’s common stock (the “Common Stock”), subject to the conditions of the Plan and this Agreement (the “Stock Appreciation Rights”).  A Stock Appreciation Right is a right to receive an amount in cash equal to the excess, if any, of the Fair Market Value of a share of Common Stock on the date on which a Stock Appreciation Right is exercised over its Base Price (such amount, the “Spread”).  The base price for the Stock Appreciation Rights granted hereby is $____ per share of Common Stock, which is the Fair Market Value of a share of Common Stock on the Date of Grant (the “Base Price”).

(b)Definition of Fair Market Value.  For purposes of this Agreement, “Fair Market Value” shall mean the last sale price for a share of Common Stock as quoted on the New York Stock Exchange (“NYSE”) or other principal stock exchange on which the Common Stock is then listed for the date in question or, if no sales of Common Stock were reported by the NYSE or other such exchange on that date, the last price for a share of Common Stock as furnished by the NYSE or other such exchange for the next preceding day on which sales of Common Stock were reported by the NYSE.  If the Common Stock is no longer listed or is no longer actively traded on the NYSE or listed 

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on a principal stock exchange as of the applicable date, the Fair Market Value of the Common Stock shall be the value as reasonably determined by the Administrator for purposes of the award in the circumstances. 

(c)Plan Incorporated.  Participant acknowledges receipt of a copy of the Plan, and agrees that, except as contemplated by Section 14 below, this award of Stock Appreciation Rights shall be subject to all of the terms and conditions set forth in the Plan, including future amendments thereto, if any, pursuant to the terms thereof, which Plan is incorporated herein by reference as a part of this Agreement.  Except as defined herein, capitalized terms shall have the same meanings ascribed to them under the Plan.

2.Vesting and Forfeiture.  

Vesting Date.  The Stock Appreciation Rights shall vest and become exercisable on the first anniversary date of grant, provided Participant continues to serve on the Corporation’s Board from the Date of Grant through the vesting date (the “Vesting Date”).  The Stock Appreciation Rights that have vested in accordance with this Section 2 are referred to herein in as “Vested SARs.”  Vesting shall be cumulative, so that once any portion of the Stock Appreciation Rights becomes vested and exercisable, it shall continue to be vested and exercisable in whole or in part, as elected by Participant from time to time, until the Stock Appreciation Rights expire in accordance with Sections 4 or 5 below, as applicable.

 

3.Exercise of Stock Appreciation Rights.  

(a)Procedure for Exercise.  If electing to exercise all or part of the Stock Appreciation Rights, Participant shall give written notice to the Corporation of such election and of the number of Stock Appreciation Rights he or she has elected to exercise, in such form as the Administrator shall have prescribed or approved.

(b)Payment.  On the exercise of each Vested SAR, the Corporation shall deliver to Participant an amount of cash in United States Dollars equal to the Spread for each Vested SAR exercised.

4.Termination of Stock Appreciation Rights.  Each Stock Appreciation Right and all rights and privileges thereunder shall terminate and may no longer be exercised at 11:59 P.M. E.T. on ______________, 20___ (the “Expiration Date”), or, if earlier, upon the earlier to occur of (i) the forfeiture or expiration of the Stock Appreciation Right pursuant to Section 5 hereof, or (ii) the exercise of such Stock Appreciation Right pursuant to Section 3 hereof.

5.Termination of Board Service.

(a)Continuing Board Service.  Except as provided below, vesting of Stock Appreciation Rights pursuant to the foregoing schedule shall occur on a Vesting Date only if Participant continues to serve on the Corporation’s Board from the Date of Grant to such Vesting Date.  If the Participant ceases to serve on the Corporation’s Board at any time prior to the final Vesting Date, for any reason or no reason, with or without cause, 

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except as provided below, all unvested Stock Appreciation Rights shall be forfeited immediately and automatically on the date that Participant's Board service is terminated, without payment of any consideration to Participant, and the Participant shall have no further rights with respect to such Stock Appreciation Rights.   

(b)Termination for Cause. Upon termination of Participant’s Board service for “cause,” any Stock Appreciation Rights that are outstanding as of the date of such termination of employment or service (whether vested and exercisable or not) shall terminate upon the date of such termination of employment or service.  ”Cause” shall be determined in good faith by the Administrator.

(c)Death or Disability.  Notwithstanding the foregoing, all outstanding and unvested Stock Appreciation Rights shall vest effective immediately upon (i) the death of Participant or (ii) the Administrator’s determination that Participant suffers from a Disability (as defined below).  All outstanding Stock Appreciation Rights as of the date of termination of Board service shall remain exercisable for a period of one (1) year from the date of termination, and shall terminate thereafter.  For purposes of this Agreement, “Disability” means mean a physical or mental infirmity which impairs the Participant’s ability to substantially perform his or her duties on the Board for a period of 180 consecutive days.

(d)Termination other than for Cause, Death or Disability.  Upon termination of Participant’s Board service for any reason not set forth in subsections (b) or (c), any Stock Appreciation Rights that are outstanding and vested and exercisable as of the date of termination shall remain exercisable for a period of ninety (90) days from the date of termination and shall terminate thereafter. Any Stock Appreciation Rights which are not vested and exercisable as of the date of such termination of Board service shall terminate upon the date of such termination of Board service.

(e)Death Following Termination of Board Service. In the event Participant dies after terminating Board service but prior to the expiration of the applicable post-termination exercise period described in subsection (c) or (d) above, then Participant’s heirs or beneficiary(ies) as determined pursuant to Section 7 below shall be entitled to exercise the then-outstanding Stock Appreciation Rights for a period of one (1) year following the date of death.

(f)No Extension Beyond Expiration Date. Notwithstanding anything above to the contrary, neither Participant nor any person claiming under or through Participant shall be permitted to exercise any portion of the Stock Appreciation Rights after the Expiration Date.

 

6.Change in Control Event.  The provisions of Section 7.3 of the Plan shall apply upon the occurrence of a Change in Control Event.

7.Issuance and Limits on Transferability.  Participant’s rights hereunder shall not be transferable except by will or the laws of descent and distribution or pursuant to a beneficiary designation, or as otherwise permitted by Section 5.7 of the Plan.  No right or 

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benefit hereunder shall in any manner be liable for or subject to any debts, contracts, liabilities, or torts of Participant.  Any purported assignment, alienation, pledge, attachment, sale, transfer or other encumbrance that does not satisfy the requirements of this Agreement and the Plan shall be void and unenforceable against the Corporation. 

8.No Rights.  The Stock Appreciation Rights evidenced by this Agreement shall be unfunded and unsecured obligations of the Company.  In no event shall the Participant have the right to any specific assets of the Company, and Participant shall be treated as a general, unsecured creditor of the Company with respect to any amount that may be earned by Participant hereunder. 

9.[Reserved.]

10.Authority of Administrator.  In making any decisions or taking any actions with respect to the matters covered by this Agreement, the Administrator shall have all of the authority and discretion, and shall be subject to all of the protections, provided for in the Plan.  All decisions and actions by the Administrator with respect to this Agreement, including the determination of Fair Market Value, shall be made in the Administrator’s discretion and shall be final and binding on the Participant.

11.Binding Effect.  This Agreement shall bind Participant and the Corporation and their beneficiaries, survivors, executors, administrators and transferees. 

12.No Right to Continued Board Service.  The Participant acknowledges and agrees that, notwithstanding the fact that the vesting of the Stock Appreciation Rights is contingent upon his or her continued service on the Corporation’s Board, this Agreement does not constitute an express or implied promise of continued Board service or confer upon the Participant any rights with respect to continued Board service to the Corporation.  

13.Applicable Law.  This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware without regard to conflict of law principles thereunder.

14.Conflicts and Interpretation.  In the event of any conflict between this Agreement and the Plan, this Agreement shall control.  In the event of any ambiguity in this Agreement, or any matters as to which this Agreement is silent, the Plan shall govern including, without limitation, the provisions thereof pursuant to which the Administrator has the power, among others, to (i) interpret the Plan, (ii) prescribe, amend and rescind rules and regulations relating to the Plan and (iii) make all other determinations deemed necessary or advisable for the administration of the Plan. 

15.Amendment.  The Corporation may modify, amend or waive the terms of the Stock Appreciation Right award, prospectively or retroactively, but no such modification, amendment or waiver shall impair the rights of Participant without his or her consent, except as required by applicable law, NYSE or stock exchange rules, tax rules or accounting rules.  Prior to the effectiveness of any modification, amendment or waiver required by tax or accounting rules, the Corporation will provide notice to Participant and 

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the opportunity for Participant to consult with the Corporation regarding such modification, amendment or waiver.  The waiver by either party of compliance with any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by such party of a provision of this Agreement. 

16.Code Section 409A.  It is the intent of the parties that this Agreement be exempt from the requirements of Section 409A of the Code, and this Agreement shall be interpreted accordingly.  

17.Participant’s Acknowledgments.  The Participant acknowledges that he or she has read this Agreement, has received and read the Plan and the Prospectus captioned Resolute Energy Corporation 2009 Performance Incentive Plan (“Information”), and understands the terms and conditions of this Agreement, the Plan and the Information.

18.Rights as a Stockholder.  Neither Participant nor any person claiming under or through Participant shall be, or have any of the rights or privileges of, a stockholder of the Corporation with respect to the Stock Appreciation Rights. 

19.Notice.  Any notice to be given to the Corporation under the terms of this Agreement shall be addressed to the Corporation, in care of the Secretary, at 1700 Lincoln, Suite 2800, Denver, Colorado 80203, or at such other address as the Corporation may designate in writing to Participant.  Any notice to be given to Participant shall be addressed to Participant at the address set forth beneath his signature below, or at any other address as Participant may designate in writing to the Corporation.

 

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IN WITNESS WHEREOF, the parties have executed this Cash-Settled Stock Appreciation Right Grant Agreement (Non-Employee Directors) as of the date first written above.

	
 
	
RESOLUTE ENERGY CORPORATION

	
 
	
 

	
 
	
By:                                                                  

	
 
	
   Name: James M. Piccone

	
 
	
   Title: President

	
 
	
   

	
 
	
 

 

	
 
	
PARTICIPANT

	
 
	
 

	
 
	
                                                                  

	
 
	
[    ]

	
 
	
 

	
 
	
 

	
 
	
 

 

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