Document:

Sixth Amendment to Amended and Restated Credit Agreement

 Exhibit 10.5 

SIXTH AMENDMENT TO 

AMENDED AND RESTATED CREDIT AGREEMENT 

THIS SIXTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Sixth Amendment”), dated as of November 3, 2015,
among POWERSECURE INTERNATIONAL, INC., a Delaware corporation (the “Borrower”), the lenders as identified as Lenders on the signature pages hereof (collectively, the “Lenders”) and CITIBANK, N.A., in its capacity as
Administrative Agent (the “Administrative Agent”). 
 BACKGROUND 

A. The Borrower, the Lenders, and the Administrative Agent are parties to that certain Amended and Restated Credit Agreement, dated as of
December 21, 2011 (said Credit Agreement, as amended and restated, the “Credit Agreement”; the terms defined in the Credit Agreement and not otherwise defined herein shall be used herein as defined in the Credit Agreement).

 B. The Borrower, the Lenders and the Administrative Agent desire to make certain amendments to the Credit Agreement and waive an Event of
Default. 
 NOW, THEREFORE, in consideration of the covenants, conditions and agreements hereafter set forth, and for other good and
valuable consideration, the receipt and adequacy of which are all hereby acknowledged, the parties hereto covenant and agree as follows: 

1. AMENDMENTS. 
 (a)
Section 1.01 of the Credit Agreement is hereby amended by adding the following defined terms thereto in proper alphabetical order: 

“New Revolving Lender” has the meaning specified in Section 2.17. 

“Sixth Amendment” means that certain Sixth Amendment to Amended and Restated Credit Agreement, dated as of
November 3, 2015, among the Borrower, the Lenders and the Administrative Agent. 
 “Sixth Amendment Closing
Date” means the date that all conditions to effectiveness of the Sixth Amendment are satisfied. 
 (b) The definition of
“Aggregate Revolving Commitments” set forth in Section 1.01 of the Credit Agreement is hereby amended to read as follows: 

“Aggregate Revolving Commitments” means the Revolving Commitments of all Lenders, which, as of the Sixth
Amendment Closing Date, are $40,000,000. 

 (c) The definition of “Revolving Commitment Increase Effective Date” set forth
in Section 1.01 of the Credit Agreement is hereby amended to read as follows: 
 “Revolving Commitment
Increase Effective Date” has the meaning specified in Section 2.17. 
 (d) The definition of “Revolving
Maturity Date” set forth in Section 1.01 of the Credit Agreement is hereby amended to read as follows: 

“Revolving Maturity Date” means (a) June 30, 2020 or (b) such earlier date as the (i) the
Obligations become due and payable pursuant to this Agreement (whether by acceleration, prepayment in full, scheduled reduction or otherwise) or (ii) there shall exist an Event of Default under Section 8.01(f) of this Agreement.

 (e) The definition of “Term B Maturity Date” set forth in Section 1.01 of the Credit Agreement is hereby
amended to read as follows: 
 “Term B Maturity Date” means (a) June 30, 2020 or (b) such
earlier date as (i) the Obligations become due and payable pursuant to this Agreement (whether by acceleration, prepayment in full, scheduled reduction or otherwise) or (ii) there shall exist an Event of Default under
Section 8.01(f). 
 (f) Section 2.08(c) of the Credit Agreement is hereby amended to read as follows: 

(c) To the extent not otherwise required to be paid earlier as provided herein, the Borrower shall repay the aggregate
principal amount of the Term B Loans outstanding on the following dates in amounts determined by multiplying the percentage set forth opposite such dates times the initial principal amount of the Term B Loans (which amounts may be reduced as a
result of the application of prepayments of the Term B Loans in accordance with the order of priority set forth in Section 2.06): 
  

					
	 Date
	  	% of Initial Aggregate Principal Amount	 
	 March 31, 2012
	  	 	1.667	% 
	 June 30, 2012
	  	 	1.667	% 
	 September 30, 2012
	  	 	1.667	% 
	 December 31, 2012
	  	 	1.667	% 
	 March 31, 2013
	  	 	1.667	% 
	 June 30, 2013
	  	 	1.667	% 
	 September 30, 2013
	  	 	1.667	% 
	 December 31, 2013
	  	 	1.667	% 
	 March 31, 2014
	  	 	1.667	% 
	 June 30, 2014
	  	 	1.667	% 
	 September 30, 2014
	  	 	1.667	% 
	 December 31, 2014
	  	 	1.667	% 

  
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	 Date
	  	% of Initial Aggregate Principal Amount	 
	 March 31, 2015
	  	 	1.667	% 
	 June 30, 2015
	  	 	1.667	% 
	 September 30, 2015
	  	 	1.667	% 
	 December 31, 2015
	  	 	1.667	% 
	 March 31, 2016
	  	 	1.667	% 
	 June 30, 2016
	  	 	1.667	% 
	 September 30, 2016
	  	 	1.667	% 
	 December 31, 2016
	  	 	1.667	% 
	 March 31, 2017
	  	 	1.667	% 
	 June 30, 2017
	  	 	1.667	% 
	 September 30, 2017
	  	 	1.667	% 
	 December 31, 2017
	  	 	1.667	% 
	 March 31, 2018
	  	 	1.667	% 
	 June 30, 2018
	  	 	1.667	% 
	 September 30, 2018
	  	 	1.667	% 
	 December 31, 2018
	  	 	1.667	% 
	 March 31, 2019
	  	 	1.667	% 
	 June 30, 2019
	  	 	1.667	% 
	 September 30, 2019
	  	 	1.667	% 
	 December 31, 2019
	  	 	1.667	% 
	 March 31, 2020
	  	 	1.667	% 
	 June 30, 2020
	  	 
 
 	The aggregate principal amount of all
Term B Loans outstanding on such
date	  
  
  

 (g) Article II of the Credit Agreement is hereby amended by adding the following new
Section 2.17 thereto to read as follows: 
 Section 2.17 Increase in Aggregate Revolving
Commitments. 
 (a) Request for Increase. Provided there exists no Default, upon notice to the Administrative
Agent (which shall promptly notify the Lenders), the Borrower may from time to time, request an increase in the Aggregate Revolving Commitments by an amount not exceeding $20,000,000; provided that any such request shall be in a minimum
amount of $5,000,000 and in whole multiples of $2,000,000 in excess thereof (or, if less, 

  
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 the entire remaining amount of the increase provided for in this
Section 2.17). At the time of sending such notice, the Borrower (in consultation with the Administrative Agent) shall specify the time period within which each Revolving Lender is requested to respond (which shall in no event be less
than ten (10) Business Days from the date of delivery of such notice to the Revolving Lenders). 
 (b) Lender
Elections to Increase. Each Revolving Lender shall notify the Administrative Agent within such time period whether or not it agrees to increase its Revolving Commitment and, if so, whether by an amount equal to, greater than, or less than its
Revolving Pro Rata Share of such requested increase. Any Revolving Lender not responding within such time period shall be deemed to have declined to increase its Revolving Commitment. 

(c) Notification by Administrative Agent; Additional Revolving Lenders. The Administrative Agent shall notify the
Borrower and each Revolving Lender of the Revolving Lenders’ responses to each request made hereunder. To achieve the full amount of a requested increase, and subject to the approval of the Administrative Agent, the L/C Issuer and the Swing
Line Lender (such approval not to be unreasonably withheld), the Borrower may also invite additional Eligible Assignees to become Revolving Lenders pursuant to a joinder agreement (“New Revolving Lenders”) in form and substance
reasonably satisfactory to the Administrative Agent and its counsel. 
 (d) Effective Date and Allocations. If the
Aggregate Revolving Commitments are increased in accordance with this Section 2.17, the Administrative Agent and the Borrower shall determine the effective date (the “Revolving Commitment Increase Effective Date”) and
the final allocation of such increase. The Administrative Agent shall promptly notify the Borrower and the Revolving Lenders and any New Revolving Lenders of the final allocation of such increase and the Revolving Commitment Increase Effective Date.

 (e) Conditions to Effectiveness of Increase. As a condition precedent to such increase, the Borrower shall deliver
to the Administrative Agent a certificate of the Borrower dated as of the Revolving Commitment Increase Effective Date (in sufficient copies for each Lender) signed by a Responsible Officer of the Borrower (i) certifying and attaching the
resolutions adopted by the Borrower approving or consenting to such increase, and (ii) certifying that, before and after giving effect to such increase, (A) the representations and warranties contained in Article V and the other
Loan Documents (i) that contain a materiality qualification, are true and correct, on and as of the Revolving Commitment Increase Effective Date and (ii) that do not contain a materiality qualification, are true and correct in all material
respects, on and as of the Revolving Commitment Increase Effective Date, and except that for purposes of this Section, the representations and warranties contained in subsections (a) and (b) of Section 5.05 shall be deemed to
refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01, and (B) both before and after giving effect to the increase in the Aggregate Revolving Commitments, no Default
exists. The Borrower shall prepay any Revolving Loans outstanding on the Revolving Commitment Increase Effective Date (and pay any additional amounts required pursuant to Section 3.05) to the extent 

  
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 necessary to keep the outstanding Revolving Loans ratable with any revised Revolving Pro Rata
Shares arising from any non-ratable increase in the Aggregate Revolving Commitments under this Section 2.17. 

(f) Conflicting Provisions. This Section 2.17 shall supersede any provisions in Section 2.13 or
10.01 to the contrary. 
 (h) Section 7.12(b) of the Credit Agreement is hereby amended to read as follows: 

(b) Debt to Capitalization Ratio. Permit the Debt to Capitalization Ratio at the end of any Fiscal Quarter
commencing on and after September 30, 2015 to exceed 0.25 to 1.00 at any time. 
 (i) Schedule 1.01 of the Credit Agreement is
hereby amended to be in the form of Schedule 1.01 attached to this Sixth Amendment. 
 (j) Schedule 2.01 of the Credit
Agreement is hereby amended to be in the form of Schedule 2.01 attached to this Sixth Amendment. 
 (k) Schedule 5.13 of the
Credit Agreement is hereby amended to be in the form of Schedule 5.13 attached to this Sixth Amendment. 
 (l) Exhibit G, the
Compliance Certificate, is hereby amended to be in the form of Exhibit G attached to this Sixth Amendment. 
 2. WAIVER.
Subject to satisfaction of the conditions to effectiveness to this Sixth Amendment set forth in Section 4 hereof, the Lenders hereby waive the Event of Default that occurred under Section 8.01(c) of the Credit Agreement as a
result of the failure of the Borrower to cause 65% of the Equity Interests of PowerSecure Canada Energy Services, Inc., a British Columbia company (“PowerSecure Canada”), to be pledged to secure the Secured Obligations within the
time required by Section 6.14 of the Credit Agreement. 
 3. REPRESENTATIONS AND WARRANTIES. By its execution and
delivery hereof, the Borrower represents and warrants that, as of the date hereof, and after giving effect to the waiver provided in Section 2 hereof: 

(a) the representations and warranties contained in the Credit Agreement and the other Loan Documents are true and correct on and as of
the date hereof as made on and as of such date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except that the representations
contained in subsections (a) and (b) of Section 5.05 of the Credit Agreement shall be deemed to refer to the most recent statements furnish pursuant to subsections (a) and (b), respectively, of Section 6.01 of
the Credit Agreement; 
 (b) no event has occurred and is continuing which constitutes a Default or an Event of Default; 

  
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 (c) (i) the Borrower has full power and authority to execute and deliver this Sixth
Amendment and the Revolving Loan Notes in the principal amount of each Revolving Lender’s Revolving Commitment, as increased by this Sixth Amendment (the “New Revolving Loan Notes”), (ii) this Sixth Amendment and the New
Revolving Loan Notes have been duly executed and delivered by the Borrower, and (iii) this Sixth Amendment, the New Revolving Loan Notes and the Credit Agreement, as amended hereby, constitute the legal, valid and binding obligations of the
Borrower, enforceable in accordance with their respective terms, except as enforceability may be limited by applicable Debtor Relief Laws and by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or
at law) and except as rights to indemnity may be limited by federal or state securities laws; 
 (d) neither the execution, delivery
and performance of this Sixth Amendment, the New Revolving Loan Notes or the Credit Agreement, as amended hereby, nor the consummation of any transactions contemplated herein or therein, will violate any Law or conflict with any Organization
Documents of the Borrower, or any indenture, agreement or other instrument to which the Borrower or any of its property is subject; and 

(e) no authorization, approval, consent, or other action by, notice to, or filing with, any Governmental Authority or other Person not
previously obtained is required for (i) the execution, delivery or performance by the Borrower, of this Sixth Amendment or the New Revolving Loan Notes or (ii) the acknowledgement and reaffirmation by each Guarantor of this Sixth
Amendment. 
 4. CONDITIONS TO EFFECTIVENESS. All provisions of this Sixth Amendment shall be effective upon satisfaction or
completion of the following: 
 (a) the Administrative Agent shall have received counterparts of this Sixth Amendment executed by the
Lenders; 
 (b) the Administrative Agent shall have received counterparts of this Sixth Amendment executed by the Borrower and acknowledged
by each Guarantor; 
 (c) the Administrative Agent shall have received the New Revolving Loan Notes for each Lender executed by the
Borrower; 
 (d) the Administrative Agent shall have received certified resolutions of the Borrower authorizing the execution, delivery and
performance by the Borrower of this Sixth Amendment and the New Revolving Loan Notes; 
 (e) the Administrative Agent shall have received an
original stock certificate evidencing 65% of the Equity Interests of PowerSecure Canada issued in the name of PowerSecure, Inc., together with an undated stock power with respect to such Equity Interests executed by PowerSecure, Inc.; 

(f) the Administrative Agent shall have received in immediately available funds for the account of each Lender an amount equal to the product
of (i) 0.25% and (ii) the Outstanding Amount of the Term B Loans owed to each such Lender as of the date of this Sixth Amendment; 

  
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 (g) the Administrative Agent shall have received in immediately available funds for its own
account such fee as agreed to be paid by the Borrower in a separate letter agreement between Borrower and Administrative Agent in connection with this Sixth Amendment; and 

(h) the Administrative Agent shall have received, in form and substance satisfactory to the Administrative Agent and its counsel, such other
documents, certificates and instruments as the Administrative Agent shall require. 
 5. REFERENCE TO THE CREDIT AGREEMENT. 

(a) Upon the effectiveness of this Sixth Amendment, each reference in the Credit Agreement to “this Agreement”,
“hereunder”, or words of like import shall mean and be a reference to the Credit Agreement, as affected and amended hereby. 
 (b)
The Credit Agreement, as amended by the amendments referred to above, shall remain in full force and effect and is hereby ratified and confirmed. 

6. COSTS, EXPENSES AND TAXES. The Borrower agrees to pay on demand all costs and expenses of the Administrative Agent in connection
with the preparation, reproduction, execution and delivery of this Sixth Amendment and the other instruments and documents to be delivered hereunder (including the reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent
with respect thereto). 
 7. GUARANTOR’S ACKNOWLEDGMENT. By signing below, each Guarantor (a) acknowledges, consents and
agrees to the execution, delivery and performance by the Borrower of this Sixth Amendment, (b) acknowledges and agrees that its obligations in respect of its Guaranty (i) are not released, diminished, waived, modified, impaired or affected
in any manner by this Sixth Amendment or any of the provisions contemplated herein and (ii) cover the Guarantied Obligations (as defined in its Guaranty) as increased by this Sixth Amendment, (c) ratifies and confirms its obligations under
its Guaranty, and (d) acknowledges and agrees that it has no claims or offsets against, or defenses or counterclaims to, its Guaranty. 

8. REAFFIRMATION. By signing below, each Loan Party, (a) affirms that each of the Liens granted in or pursuant to the Collateral
Documents to which it is a party are valid and subsisting and (b) agrees that (i) this Sixth Amendment shall in no manner impair or otherwise adversely affect any of the Liens granted in or pursuant to the Collateral Documents and
(ii) the Collateral Documents secure the Secured Obligations as increased by this Sixth Amendment. 
 9. EXECUTION IN
COUNTERPARTS. This Sixth Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which when taken
together shall constitute but one and the same instrument. For purposes of this Sixth Amendment, a counterpart hereof (or signature page thereto) signed and transmitted by any Person party hereto to the Administrative Agent (or its counsel) by
facsimile machine, telecopier or electronic mail is to be treated as an original. The signature of such Person thereon, for purposes hereof, is to be considered as an original signature, and the counterpart (or signature page thereto) so transmitted
is to be considered to have the same binding effect as an original signature on an original document. 

  
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 10. GOVERNING LAW; BINDING EFFECT. This Sixth Amendment shall be governed by and construed
in accordance with the laws of the State of New York applicable to agreements made and to be performed entirely within such state, provided that each party shall retain all rights arising under federal law, and shall be binding upon the parties
hereto and their respective successors and assigns; provided, however, that the Borrower may not assign any of its rights arising from this Sixth Amendment or any other Loan Document, and any prohibited assignment shall be null and
void. 
 11. HEADINGS. Section headings in this Sixth Amendment are included herein for convenience of reference only and shall not
constitute a part of this Sixth Amendment for any other purpose. 
 12. ENTIRE AGREEMENT. THE CREDIT AGREEMENT, AS AMENDED BY THIS
SIXTH AMENDMENT, AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES. 
 REMAINDER OF PAGE LEFT INTENTIONALLY BLANK 

  
 8 

 IN WITNESS WHEREOF, the parties hereto have executed this Sixth Amendment as of the date first
above written. 
  

			
	POWERSECURE INTERNATIONAL, INC.
		
	By:	 	 /s/ Eric Dupont

		 	Eric Dupont
		 	Chief Financial Officer

 Signature Page – Sixth Amendment 

 
			
	CITIBANK, N.A., as Administrative Agent and Lender
		
	By:	 	 /s/ Gary D. Pitcock

		 	Gary D. Pitcock
		 	Senior Vice President

 Signature Page – Sixth Amendment 

 
			
	BRANCH BANKING AND TRUST COMPANY, as Lender
		
	By:	 	 /s/ Steven G. Bullard

		 	Name: Steven G. Bullard
		 	Title: Senior Vice President

 Signature Page – Sixth Amendment 

 ACKNOWLEDGED AND AGREED: 

POWERSECURE, INC. 
 POWERSERVICES, INC. 

ENERGYLITE, INC. 
 UTILITYENGINEERING, INC. 

UTILITYDESIGN, INC. 
 REID’S TRAILER, INC. 

INNOVATION ENERGIES, LLC 
 POWERSECURE SOLAR, LLC 

SOLAIS LIGHTING, INC. 
 POWERSECURE LIGHTING, LLC 

 

			
	By:	 	 /s/ Eric Dupont

		 	Eric Dupont
		 	Chief Financial Officer for all

 Signature Page – Sixth Amendment 

 SCHEDULE 1.01 

INACTIVE SUBSIDIARIES 
 PowerPackages, LLC
(Delaware limited liability company) 
 PowerSecure Haiti USA, Inc. (Delaware corporation) 

WaterSecure Holdings, Inc. (Colorado corporation) 

Schedule 1.01 – Sixth Amendment 

 SCHEDULE 2.01 

REVOLVING COMMITMENTS 

AND REVOLVING PRO RATA SHARES 
  

									
	 Lender
	  	Revolving
Commitment	 	  	Revolving
Pro Rata Share	 
	 Citibank, N.A.
	  	$	28,000,000	  	  	 	70.00	% 
	 Branch Banking and Trust Company
	  	$	12,000,000	  	  	 	30.00	% 
			
	 Total
	  	$	40,000,000	  	  	 	100.00	% 

 Schedule 2.01 – Sixth Amendment 

 SCHEDULE 5.13 

SUBSIDIARIES AND OTHER EQUITY INVESTMENTS 
  

							
	Part (a): Subsidiaries 	  		  	
			
	PowerSecure, Inc.	  	-	  	100% owned
		 	UtilityEngineering, Inc.	  	-	  	100% owned
		 	PowerServices, Inc.	  	-	  	100% owned
		 	EnergyLite, Inc.	  	-	  	100% owned
		 	Reid’s Trailer, Inc.	  	-	  	100% owned
		 	UtilityDesign, Inc.	  	-	  	100% owned
		 	Innovation Energies, LLC	  	-	  	100% owned
		 	PowerSecure Solar, LLC	  	-	  	100% owned
		 	Solais Lighting, Inc.	  	-	  	100% owned
		 	PowerSecure Lighting, LLC	  	-	  	100% owned

 Note: Does not include Inactive Subsidiaries listed on Schedule 1.01 

Part (b): Other Equity Investments 
 None. 

Schedule 5.13 – Sixth Amendment 

 EXHIBIT G 

FORM OF COMPLIANCE CERTIFICATE 

Financial Statement
Date:                     
 To: Citibank, N.A.,
as Administrative Agent under the Agreement defined below 
 Ladies and Gentlemen: 

Reference is made to that certain Amended and Restated Credit Agreement, dated as of December 21, 2011 (as amended, extended,
supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among PowerSecure International, Inc. (the “Borrower”), the Lenders
from time to time party thereto, and Citibank, N.A., as Administrative Agent. 
 The undersigned Responsible Officer hereby certifies as of
the date hereof that                                  he/she is the of the
Borrower, that, as such, he/she is authorized to execute and deliver this Certificate to the Administrative Agent on the behalf of the Borrower, and that: 

[Use following for Fiscal Year-end financial statements] 

1. Attached hereto as Schedule 1 are the Fiscal Year end audited financial statements required by Section 6.01(a) of
the Agreement for the Fiscal Year of the Borrower ended as of the date set forth above as the Financial Statement Date, together with the report and opinion of an independent certified public accountant required by such section. Such financial
statements fairly present in all material respects when considered in relation to the consolidated financial statements of the Borrower and its Subsidiaries. 

[Use following for Fiscal Quarter-end financial statements] 

1. Attached hereto as Schedule 1 are the unaudited financial statements required by Section 6.01(b) of the Agreement
for the Fiscal Quarter of the Borrower ended as of the date set forth above as the Financial Statement Date. Such financial statements fairly present in all material respects when considered in relation to the consolidated financial statements of
the Borrower and its Subsidiaries. 
 2. The undersigned has reviewed and is familiar with the terms of the Agreement and has made, or has
caused to be made under his/her supervision, a detailed review of the transactions and condition (financial or otherwise) of the Borrower during the accounting period covered by the attached financial statements. 

3. A review of the activities of the Borrower during such fiscal period has been made under the supervision of the undersigned with a view to
determining whether during such fiscal period the Borrower performed and observed all its Obligations under the Loan Documents [add, if applicable: except as hereinafter listed], and to the best knowledge of the undersigned as of the date
hereof no Default or Event of Default under the Agreement has occurred and is continuing as of the date hereof [add, if applicable: except the following list of each Default or Event of Default under the Agreement, and its nature and status,
that has occurred and is continuing as of the date of this Certificate.] 

  
 Exhibit G - Page 1 

 4. The financial covenant analyses and information set forth on Schedule 2 attached
hereto are true and accurate on and as of the date set forth above as the Financial Statement Date. 

  
 Exhibit G - Page 2 

 IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
                    . 
  

			
	 POWERSECURE INTERNATIONAL, INC.

		
	 By:
	 	  

		 	 Name:

		 	 Title:

  
 Exhibit G – Page 3

 For the Fiscal Quarter/Year ended
                    (“Financial Statement Date”) 

SCHEDULE 2 
 to the
Compliance Certificate 
 ($ in 000’s) 
  

									
	I.	 	Section 7.12(a) – Fixed Charge Coverage Ratio [To be calculated for each Fiscal Quarter in which there is no Excess Cash]1.
				
		 	A.	 	Consolidated EBITDA:	 	
					
		 		 	1.	 	Consolidated Net Income for Subject Period:	 	$            
					
		 		 	2.	 	To the extent involved in calculating such Consolidated Net Income and without duplication, Consolidated Interest Charges:	 	$            
					
		 		 	3.	 	To the extent included in calculating such Consolidated Net Income and without duplication, amount of taxes, based on or measured by income, deducted in determining such Consolidated Net Income for Subject Period:	 	$            
					
		 		 	4.	 	To the extent included in calculating such Consolidated Net Income and without duplication, depreciation and amortization expense deducted in determining such Consolidated Net Income for Subject Period:	 	$            
					
		 		 	5.	 	To the extent included in calculating such Consolidated Net Income and without duplication, all non-cash charges or losses which do not represent a cash charge or loss for Subject Period or in a future period:	 	$            
					
		 		 	6.	 	To the extent included in calculating such Consolidated Net Income, Federal, state, local and foreign income tax credits of the Borrower and its Subsidiaries for Subject Period:	 	$            
					
		 		 	7.	 	To the extent included in calculating such Consolidated Net Income, Consolidated Interest Income for Subject Period:	 	$            
					
		 		 	8.	 	To the extent included in calculating such Consolidated Net Income, all non-cash items increasing Consolidated Net Income for Subject Period:	 	$            

  

	1 	(i) For the Fiscal Quarter ending September 30, 2014, the components of the Fixed Charge Coverage Ratio shall be calculated only for such Fiscal Quarter ending on such date, (ii) for the Fiscal Quarter ending
December 31, 2014, the components of the Fixed Charge Coverage Ratio shall be calculated for the period of two consecutive Fiscal Quarters ending on such date and (iii) for the Fiscal Quarter ending March 31, 2015, the components of
the Fixed Charge Coverage Ratio shall be calculated for the period of three consecutive Fiscal Quarters ending on such date. 

  
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		 		 	9.	 	Consolidated EBITDA (Lines I.A.1. + 2. + 3. + 4. + 5. - 6. - 7. - 8.):	 	$            
				
		 	B.	 	Consolidated Lease Expense for Subject Period:	 	$            
				
		 	C.	 	Taxes based on income and paid in cash (net of tax refunds) for Subject Period but excluding cash taxes paid in respect of the Southern Flow Disposition and the WaterSecure Disposition:	 	$            
				
		 	D.	 	Consolidated Interest Charges (excluding, to the extent included in Consolidated Lease Expense, the interest component of Capital Leases) for Subject Period:	 	$            
				
		 	E.	 	Scheduled payments of principal of Consolidated Funded Indebtedness (excluding, to the extent included in Consolidated Lease Expense, the principal component of Capital Leases) for Subject Period:	 	$            
				
		 	F.	 	Consolidated Lease Expense for Subject Period:	 	$            
				
		 	G.	 	Restricted Payments (excluding repurchases of common Equity Interests pursuant to Stock Repurchase Program) for Subject Period:	 	$            
				
		 	H.	 	During Revolving Availability Period, an amount equal to the product of (x) 0.20 and (y) the amount by which Total Revolving Outstandings exceeds $15,000,000 on the Financial Statement Date:	 	$            
				
		 	I.	 	Fixed Charge Coverage Ratio ((Line I.A.9. + I.B. – I.C.) ÷ (Lines I.D. + I.E. + I.F. + I.G. + I.H., if applicable)):	 	         to 1.00
			
		 	Minimum permitted – See Section 7.12(a) of the Agreement	 	1.25 to 1.00
		
	II.	 	Leverage Ratio [For purposes of determining Applicable Rate].
			
		 	A.	 	Consolidated Funded Indebtedness at Financial Statement Date:
					
		 		 	1.	 	all obligations for borrowed money and all obligations evidenced by bonds, debentures, notes, loan agreements or other similar instruments:	 	$            
					
		 		 	2.	 	Non-contingent obligations outstanding in respect of letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds or other similar instruments:	 	$            

  
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		 		 	3.	 	all obligations to pay the deferred purchase price of property or services (other than trade accounts payable in the ordinary course of business):	 	$            
					
		 		 	4.	 	indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or being purchased (including indebtedness arising under conditional sales or other title retention agreements), whether or not such indebtedness
shall have been assumed or is limited in recourse:	 	$            
					
		 		 	5.	 	Attributable Indebtedness in respect of Capital Leases and Synthetic Lease Obligations:	 	$            
					
		 		 	6.	 	Guarantees of Indebtedness of types specified in Lines II.A.1., II.A.2., II.A.3., II.A.4. and II.A.5. above:	 	$            
					
		 		 	7.	 	Consolidated Funded Indebtedness	 	$            
					
		 		 		 	(Lines II.A.1. + 2. + 3. + 4. + 5. + 6.):	 	
				
		 	B.	 	Amount, if any, by which unrestricted cash and Cash Equivalents at Financial Statement Date exceeds $5,000,000:	 	$            
				
		 	C.	 	Line II.A.7. – Line II.B.	 	$            
			
		 	D.	 	Consolidated EBITDA for Subject Period:
					
		 		 	1.	 	Consolidated EBITDA for Subject Period (See Line I.A.9.):	 	$            
				
		 	E.	 	Leverage Ratio (Line II.C. ÷ Line II.D.1.):	 	         to 1.00
		
	III.	 	Section 7.12(b) – Debt to Capitalization Ratio.
				
		 	A.	 	Consolidated Funded Indebtedness at Financial Statement Date (Line II.A.7.):	 	$            
			
		 	B.	 	Total Capitalization:
					
		 		 	1.	 	Consolidated Funded Indebtedness at Financial Statement Date (Line II.A.7.):	 	$            
					
		 		 	2.	 	Shareholders’ Equity at Financial Statement Date:	 	$            
					
		 		 	3.	 	Total Capitalization (Lines III.B.1. + III.B.2.):	 	$            

  
 6 

									
		 	C.	 	Debt to Capitalization Ratio (Line III.A. ÷ Line III.B.3.):	 	         to 1.00
			
		 	Maximum permitted – See Section 7.12(b) of the Agreement	 	0.25 to 1.00
		
	IV.	 	Section 7.12(c) – Consolidated Net Worth.
				
		 	A.	 	Consolidated Net Worth:	 	$            
				
		 	B.	 	Minimum Consolidated Net Worth:	 	
					
		 		 	1.	 	$142,066,409:	 	$            
					
		 		 	2.	 	50% of Consolidated Net Income for each Fiscal Year beginning with each Fiscal Year commencing with Fiscal Year ending December 31, 2014 (with no reduction for any net loss in any such Fiscal Year):	 	$            
					
		 		 	3.	 	90% of the aggregate increases in Shareholders’ Equity after Fourth Amendment Effective Date by reason of issuance and sale of Equity Interests of the Borrower or any Subsidiary (other than issuances to the Borrower or a
wholly-owned Subsidiary):	 	$            
					
		 		 	4.	 	Non-cash charges or losses after Fourth Amendment Effective Date which do not subsequently represent a cash charge or loss:	 	$            
					
		 		 	5.	 	Minimum Consolidated Net Worth (Lines IV.B.1. + 2. + 3. - 4.:	 	$            
	
	For purposes hereof, “Subject Period” is the period of four consecutive Fiscal Quarters ending on the Financial Statement Date.

  
 7xec_EX 102

		

			Exhibit 10.2

		

		
			SUCCESSION AGREEMENT 
		

		
			This SUCCESSION AGREEMENT (the “Agreement”) is made and entered into as of the 17th day of August 2015 (the “Effective Date”), by and between Cimarex Energy Co., a Delaware corporation (the “Company”), and Paul Korus (“Executive”). 
		

		
			WHEREAS, Executive is a founder of the Company and its Chief Financial Officer; and
		

		
			WHEREAS, Executive has decided to retire effective September 1, 2015; and
		

		
			WHEREAS,  Executive and the Company now desire to enter into a mutually satisfactory arrangement concerning Executive’s separation from service with the Company and related matters;  
		

		
			NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements contained herein, Executive and the Company agree as follows: 
		

		
			1.Separation.  Executive’s employment with the Company shall terminate on September 1, 2015 (“Separation Date”), and Executive hereby resigns all positions with the Company and any affiliates thereof as of the Separation Date.  Until the termination of Executive’s employment, Executive shall be employed at will at the salary level in effect on the date of this Agreement and may continue to participate in all benefit plans and programs on the same basis as other Company executives, subject to the eligibility requirements of such plans and programs.  The parties agree that Executive’s separation is a voluntary resignation and has been made without “good reason” (or other term of similar meaning) for purposes of any agreement, plan, policy or program employing such term.  
		

		
			2. Separation Payments and Benefits. In consideration of Executive’s service to the Company and Executive’s agreement to comply with the terms of this Agreement, specifically including without limitation the restrictive covenants in Section 3 of this Agreement and the requirement of a release as described in Section 5 of this Agreement, Executive shall be entitled to the payments and benefits set forth below on or following the Separation Date.  
		

		
			(a) Accrued Obligations.  On the Company’s first regularly-scheduled payday after the Separation Date, the Company shall pay Executive any base salary and vacation pay earned but unpaid as of the Separation Date.  
		

		
			(b) Discretionary Bonus.  Provided that Executive has complied with Sections 3 and 5 of this Agreement, the Company shall pay Executive the sum of $324,107, representing a pro-rata payment of Executive’s target bonus for 2015, such payment to be made in a lump sum on the Separation Date. If Executive fails to comply with Section 5 of this Agreement, Executive agrees to repay to the Company the bonus described in this Section 2(b) promptly upon the Company’s request.      
		

		
			(c) Performance Share Awards.  The parties agree that Executive currently holds performance share awards totaling 70,477 shares, consisting of 35,000 performance shares awarded in 2013 (“2013 Award”) pursuant to the Company’s 2011 Equity Incentive Plan (the “2011 Plan”) that are scheduled to vest on December 12, 2016, and 35,477 performance shares awarded in 2014 (“2014 Award”) pursuant to the Company’s 2014 Equity Incentive Plan (the “2014 Plan” and, together with the 2011 Plan, the “Plans”) that are scheduled to vest on December 10, 2017.  The parties agree that the shares awarded in the 2013 Award and 2014 Award shall vest as follows, and the award agreement with respect to each of the 2013 Award and the 2014 Awards, respectively, is hereby amended to provide for such vesting:    
		

		
			(i) Shares That Vest on Separation Date.  A total of 21,905 shares shall vest upon the Separation Date, consisting of 12,738 shares from the 2013 Award and 9,167 from the 2014 Award.    If Executive fails to comply with Section 5 of this Agreement, Executive agrees to return to the Company the shares described in this Section 2(c)(i) promptly upon the Company’s request and to execute all documents reasonably requested by the Company to effect such return.
		

		
			

		 

 

(ii)Shares That May Vest on December 12,  2016.  Provided that Executive has complied with Sections 3 and 5 of this Agreement, up to 12,738 of the shares awarded in the 2013 Award shall vest on December 12, 2016, in accordance with the terms of the 2013 Award and provided that the performance criteria described therein have been met.
		

		
			(iii)Shares That May Vest on December 10, 2017.  Provided that Executive has complied with Sections 3 and 5 of this Agreement, up to 9,167 of the shares awarded in the 2014 Award shall vest on December 10, 2017, in accordance with the terms of the 2014 Award and provided that the performance criteria described therein have been met.
		

		
			(iv)Shares Forfeited.  26,667 shares are forfeited effective as of the Separation Date, consisting of 9,524 shares awarded in the 2013 Award and 17,143 shares awarded in the 2014 Award.  In addition, and for the avoidance of doubt, if Executive violates any provision of Section 3 of this Agreement, all shares that have not yet vested as of the date of such violation shall be forfeited.
		

		
			(d)  401(k) Plan.  Executive shall be entitled to a distribution of his account balance in the Company’s 401(k) Plan in accordance with the terms thereof.  Executive shall not be eligible for an employer profit sharing payment with respect to the Company’s 401(k) plan for any portion of 2015.  
		

		
			(e)Deferred Compensation Plan.  Any payments made to Executive under the Cimarex Energy Co. Supplemental Savings Plan shall be made in accordance with the terms of such plan.
		

		
			(f)Change-in-Control Benefits.  Executive’s eligibility for benefits under the Company’s Change in Control Severance Policy, and any other policy, plan or agreement providing benefits upon a change in control of the Company, shall cease as of the Separation Date, and Executive shall not be entitled to any benefits resulting from a change in control of the Company occurring after the Separation Date.
		

		
			(g)  Effect of Payments on Compensatory Arrangements. The payments and benefits provided under this Section 2 shall be in full satisfaction of the Company’s obligations to Executive under this Agreement or any other plan, agreement, policy or arrangement of the Company upon his termination of employment, and in no event shall Executive be entitled to severance pay or benefits beyond those specified in this Section 2. 
		

		
			3.Restrictive Covenants.
		

		
			(a)Nondisclosure of Confidential Information.
		

		
			(i) The Company and Executive agree that, during the course of Executive’s employment with the Company, Executive has had and will continue to have access to, and has gained and will continue to gain knowledge with respect to, Confidential Information (defined below). Executive agrees that he shall not, without the prior written consent of the Company, during the period of Executive’s employment with the Company and thereafter for so long as it remains Confidential Information, use or disclose or permit any unauthorized person to gain access to any Confidential Information; provided,  however, that Executive may disclose Confidential Information to the extent required by law or court order, provided that Executive shall promptly notify the Company in writing of such requirement prior to such disclosure and shall assist the Company (at the Company’s expense) in lawfully opposing such requirement. As requested by the Company from time to time and upon the Separation Date,  Executive shall promptly deliver to the Company all copies and embodiments, in whatever form (including electronic), of all Confidential Information in Executive’s possession or control and, if requested by the Company, shall provide the Company with written confirmation that all such materials have been delivered to the Company. 
		

		
			(ii) As used in this Agreement, “Confidential Information” means information and data regarding the business of the Company or any of its affiliates that is not generally known to the public 

		 

		

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(other than through Executive’s breach of this Agreement or other duty of confidentiality), including but not limited to trade secrets; technical information or reports; unwritten knowledge and “know-how”; geologic concepts; exploration plans; operating instructions; training manuals; customer lists; customer buying records and habits; product sales records and documents, and product development, marketing and sales strategies; market surveys; marketing plans; profitability analyses; product cost; long-range plans; information relating to pricing, competitive strategies and new product development; information relating to any forms of compensation or other personnel-related information; contracts; and supplier lists.    Confidential Information shall not include such information known to Executive prior to Executive’s involvement with the Company or any of its affiliates or information generally known to the public other than through Executive’s breath of this Agreement or other duty of confidentiality). 
		

		
			(b)Noncompetition and Nonsolicitation.    
		

		
			(i) From the date of this Agreement through December 10, 2017 (the “Restricted Period”), and within the United States, Executive shall not, directly or indirectly, without the prior written consent of the Company,  engage in or invest as an owner, partner, stockholder, licensor, lender, director, officer, agent or consultant for, or become employed by, any person that conducts a business that competes with a business then conducted by the Company or any of its affiliates in any geographic area in which the Company was engaged in operations or exploration activities as of the Separation Date; provided, however, that this provision shall not prevent Executive from (A) passively investing as a less than two percent stockholder in the securities of any company listed on a national securities exchange or quoted on an automated quotation system,  or (B) serving on the board of another oil and gas exploration and production company with the written consent of the Company’s Chief Executive Officer, which consent may be conditioned on Executive’s recusal of himself from discussions that may be competitive with the Company or other similar restrictions.
		

		
			(ii)During the Restricted Period, Executive shall not, directly or indirectly, without the prior written consent of the Company, solicit, recruit or hire any person who is at such time, or who at any time during the three-month period prior to such solicitation or hiring had been, a director, officer, or employee of the Company or any of its affiliates, or encourage any such person to terminate or reduce his or her relationship with the Company or its affiliates; provided,  however, that this provision shall not prevent Executive from making general employment solicitations not targeted at personnel of the Company or its affiliates, such as job postings on websites or in newspapers or magazines of general circulation.
		

		
			(iii)In the event that a court of competent jurisdiction determines that any provision of this Section 3(b) is invalid or more restrictive than permitted under the governing law of such jurisdiction, then, only as to enforcement of this Section 3(b) within the jurisdiction of such court, such provision shall be interpreted and enforced as if it provided for the maximum restriction permitted under such governing law. 
		

		
			(c) Nondisparagement. From and following the Effective Date, Executive shall not make, either directly or by or through another person, any oral or written negative, disparaging or adverse statements or representations of or concerning the Company or its affiliates, any of their customers or businesses or any of their current or former officers, directors or employees; provided,  however, that nothing herein shall prohibit (i) confidential, critical communications between Executive and the Company or its representatives in connection with Executive’s employment or (ii) Executive from disclosing truthful information if legally required (whether by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process). 
		

		
			

		 

		

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(d) Return of Property.  Executive acknowledges that all documents, records, files, lists, equipment, computer, software or other property (including intellectual property) relating to the businesses of the Company or any of its affiliates, in whatever form (including electronic), and all copies thereof, that have been or are received or created by Executive while an employee of the Company or any of its affiliates (including Confidential Information) are and shall remain the property of the Company and its affiliates, and Executive shall immediately return such property to the Company upon the termination of Executive’s employment and, in any event, at the Company’s request; provided,  however,  Executive shall be permitted to retain his Company-issued cell phone and iPad, subject to the Company’s removal of all Company data stored on such cell phone and iPad.  Executive further agrees that any property situated on the premises of, and owned by, the Company or any of its affiliates, including disks and other storage media, filing cabinets or other work areas, is subject to inspection by the Company’s personnel at any time with or without notice. 
		

		
			(e) Remedies and Injunctive Relief.  Executive acknowledges that a violation by Executive of any of the covenants contained in this Agreement would cause irreparable damage to the Company and its affiliates in an amount that would be material but not readily ascertainable, and that any remedy at law (including the payment of damages) would be inadequate. Accordingly, Executive agrees that, notwithstanding any provision of this Agreement to the contrary, the Company shall be entitled (without the necessity of showing economic loss or other actual damage) to (i) refrain from paying the Discretionary Bonus or recoup such payment if already made in the event of any breach of the covenants set forth in this Section 3, and (ii) injunctive relief (including temporary restraining orders, preliminary injunctions and permanent injunctions), without posting a bond, for any breach or threatened breach of any of the covenants set forth in this Section 3, in addition to any other legal or equitable remedies it may have, including any right the Company may have to recover monetary damages.  
		

		
			(f)Acknowledgment.  Executive acknowledges and agrees that the covenants contained in this Section 3 are reasonable and properly required for the adequate protection of the Company’s Confidential Information, business and goodwill. Executive further acknowledges that he is retiring from employment generally and, therefore, the covenants contained in this Section 3 will not affect his ability to earn a living.
		

		
			4. Cooperation. In consideration of the payments and benefits set forth in this Agreement, Executive agrees that he shall remain reasonably available to the Company during the Restricted Period to provide information or other assistance as needed from time to time in connection with any audit, investigation or judicial, administrative or arbitral proceeding involving matters within the scope of his duties and responsibilities to the Company during his employment with the Company. In the event that the Company requires Executive’s assistance in accordance with this Section  4, the Company shall reimburse Executive for reasonable out-of-pocket expenses (including travel, lodging and meals) incurred by Executive in connection with such assistance, subject to reasonable documentation and compliance with the Company’s standard expense reimbursement policy. 
		

		
			5. General Release.  
		

		
			(a)Requirement.  The separation payments and benefits described in Section 2(b) and 2(c) of this Agreement are conditioned on Executive signing and returning to the Company within 21 days after the Separation Date, and not revoking, a general release of all claims against the Company and related parties in the form attached hereto as Exhibit A (the “Release”).
		

		
			(b)Invalidity.  If any provision of Section 5 of this Agreement or the Release is held to be invalid or unenforceable and Executive is permitted to and does assert any Released Claim against a Releasee (both terms as defined in the Release), the Company shall be entitled to an immediate refund the Discretionary Bonus described in Section 2(b) in addition to any other remedy available to the Company under law or equity; provided, however, that this provision shall not apply to claims under the ADEA except to the extent ordered by a court of law.
		

		
			

		 

		

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6.No Mitigation; No Offset.  Executive shall not be obligated to seek other employment or take any other action by way of mitigation with respect to the separation payments and benefits provided in this Agreement, and such payments and benefits shall not be reduced whether or not Executive obtains other employment. 
		

		
			7. Tax Withholding. The Company shall be entitled to withhold from the benefits and payments described herein all income and employment taxes required to be withheld by applicable law. 
		

		
			8. Notices. All notices, requests, demands or other communications under this Agreement shall be in writing and shall be deemed to have been duly given when delivered in person or deposited in the United States mail, postage prepaid, by registered or certified mail, return receipt requested, to the party to whom such notice is being given as follows: 
		

		
			As to Executive:Executive’s last home address on the books and records of the Company.
		

		
			 
		

		
			As to the Company:Cimarex Energy Co.
		

		
			1700 Lincoln Street, Suite 3700
		

		
			Denver, CO 80203
		

		
			ATT: Francis B. Barron, Senior Vice President - General Counsel
		

		
			 
		

		
			Any party may change his or its address or the name of the person to whose attention the notice or other communication shall be directed from time to time by serving notice thereof upon the other party as provided herein. 
		

		
			9. Successors. This Agreement shall inure to the benefit of and be enforceable by Executive’s legal representatives. This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. As used in this Agreement, “Company” means the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise. 
		

		
			10.Section 409A.  
		

		
			(a) General. It is intended that payments and benefits made or provided under this Agreement shall not result in penalty taxes or accelerated taxation pursuant to Section 409A of the Code. Any payments that qualify for the “short-term deferral” exception, the separation pay exception or another exception under Section 409A of the Code shall be paid under the applicable exception. For purposes of the limitations on nonqualified deferred compensation under Section 409A of the Code, each payment of compensation under this Agreement shall be treated as a separate payment of compensation for purposes of applying the exclusion under Section 409A of the Code for short-term deferral amounts, the separation pay exception or any other exception or exclusion under Section 409A of the Code. All payments to be made upon a termination of employment under this Agreement may only be made upon a “separation from service” under Section 409A of the Code to the extent necessary in order to avoid the imposition of penalty taxes on Executive pursuant to Section 409A of the Code. In no event may Executive, directly or indirectly, designate the calendar year of any payment under this Agreement. 
		

		
			(b) Reimbursements and In-Kind Benefits. Notwithstanding anything to the contrary in this Agreement, all reimbursements and in-kind benefits provided under this Agreement that are subject to Section 409A of the Code shall be made in accordance with the requirements of Section 409A of the Code, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during Executive’s lifetime (or during a shorter period of time specified in this Agreement); (ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year; (iii) the reimbursement of an eligible expense will be made no later than the last day of the 

		 

		

			5 of 9

		

		

			 

		

 

calendar year following the year in which the expense is incurred; and (iv) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit. 
		

		
			(c) Delay of Payments. Notwithstanding any other provision of this Agreement to the contrary, if Executive is considered a “specified employee” for purposes of Section 409A of the Code (as determined in accordance with the methodology established by the Company as in effect on the Separation Date), any payment that constitutes nonqualified deferred compensation within the meaning of Section 409A of the Code that is otherwise due to Executive under this Agreement during the six-month period immediately following Executive’s separation from service (as determined in accordance with Section 409A of the Code) on account of Executive’s separation from service shall be accumulated and paid to Executive on the first business day of the seventh month following his separation from service (the “Delayed Payment Date”). If Executive dies during the postponement period, the amounts and entitlements delayed on account of Section 409A of the Code shall be paid to the personal representative of his estate on the first to occur of the Delayed Payment Date or 30 calendar days after the date of Executive’s death. 
		

		
			(d) Separation from Service. Despite any contrary provision of this Agreement, any references to termination of employment or date of termination shall mean and refer to the date of Executive’s “separation from service,” as that term is defined in Section 409A of the Code and Treasury regulation Section 1.409A-1(h). 
		

		
			11.Miscellaneous.
		

		
			(a) Governing Law; Dispute Resolution. This Agreement, and the rights and obligations of the parties hereto, shall be governed by and construed in accordance with applicable federal law and the laws of the State of Delaware, without respect to its principles of conflicts of laws, and shall be construed according to its fair meaning and not for or against any party.  With respect to any claim arising out of or relating to this Agreement, each party hereto: (i) agrees that such claim shall be brought only in the federal or state courts in or for Denver County, Colorado; (ii) irrevocably submits to the jurisdiction of such courts and irrevocably waives all objections to proceeding in such courts, including but not limited to objections based on lack of personal jurisdiction, improper venue, or inconvenience of the forum; and (iii) irrevocably waives, to the fullest extent permitted by law, any right it may have to a trial by jury with respect to such claim.  Each party hereto (x) certifies that no representative of the other party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waivers, and (y) acknowledges that it and the other party  have been induced to enter into this Agreement by, among other things, the mutual waivers and certifications contained in this Section 11(a). 
		

		
			(b) Severability. If any provision hereof is unenforceable, such provision shall be fully severable, and this Agreement shall be construed and enforced as if such unenforceable provision had never comprised a part hereof, the remaining provisions hereof shall remain in full force and effect, and the court construing the Agreement shall add as a part hereof a provision as similar in terms and effect to such unenforceable provision as may be enforceable, in lieu of the unenforceable provision. 
		

		
			(c) Headings and Captions. The headings and captions of this Agreement are not part of the provisions hereof and shall have no force or effect. 
		

		
			(d) Amendments. This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives. 
		

		
			(e) Interpretation. As used in this Agreement, the term (a) “affiliate” means an entity controlled by, controlling or under common control with the Company, and (b) “including” does not limit the preceding words or terms. 
		

		
			(f)No Admission.  This Agreement is not, and shall not be construed as, an admission by either party of any violation of law or other wrongdoing of any kind.
		

		
			

		 

		

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(g)Attorney Fees and Costs.   Except for suit to challenge the validity of a release of claims under the ADEA, in any litigation, arbitration or other proceeding arising out of or relating to this Agreement, the prevailing party shall be entitled to recover such party’s reasonable attorney fees and costs to the extent permitted by law.
		

		
			(h)  Complete Agreement.  This Agreement is the entire agreement between the parties regarding the matters addressed herein, and it and supersedes and replaces all prior agreements, representations, negotiations or discussions between the parties regarding such matters, whether written or oral.  This Agreement may be executed in counterparts, including fax counterparts, and all counterparts together shall constitute one fully-executed agreement.
		

		
			 
		

		
			IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the date first written above.
		

		
			 
		

		
			EXECUTIVETHE COMPANY:
		

		
			CIMAREX ENERGY CO.
		

		
			 
		

		
			/s/ Paul KorusBy:/s/ Thomas E. Jorden
		

		
			Paul Korus Thomas E. Jorden
		

		
			 
		

		
			Its:Chief Executive Officer and President
		

		
			 
		

		
			
		

		
			

		 

		

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GENERAL RELEASE 
		

		
			In exchange for the promises described in the Succession Agreement dated August __, 2015, (“Agreement”) between myself and Cimarex Energy Co. (the “Company”), I, for myself and my heirs, assigns and personal representatives, fully and completely release the Company and its parent, subsidiary and affiliated entities and all predecessors and successors thereto, and all benefit plans thereof, and all of their shareholders, members, partners, directors, officers, managers, employees, attorneys, administrators and agents (each a “Releasee” and collectively the “Releasees”) from any and all claims or causes of action that I may have against the Releasees, known or unknown, including claims or causes of action that relate in any way to my employment with any Releasee or the termination thereof, from the beginning of time through the date of execution of this General Release (“Released Claims”), including but not limited to the following: 
		

		
			 
		

		
			(a) claims arising under any constitution or any federal, state or local statute, regulation or ordinance, including but not limited to the Age Discrimination in Employment Act (“ADEA”), Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Family and Medical Leave Act, the Employee Retirement Income Security Act, the Equal Pay Act, the Fair Labor Standards Act, the National Labor Relations Act, and the Colorado Antidiscrimination Act (C.R.S. 24-34-301 et seq. and 24-34-401 et seq.); and 
		

		
			 
		

		
			(b) claims arising under any common law theory, including but not limited to breach of contract, promissory estoppel, unjust enrichment, wrongful discharge, outrageous conduct, defamation, fraud or misrepresentation, tortious interference, invasion of privacy, or any other claims based in contract, tort or equity. 
		

		
			 
		

		
			I understand that this General Release does not include claims for breach of the Agreement, claims that arise after I sign this General Release, claims for vested pension benefits, claims for workers’ compensation benefits or unemployment compensation benefits, and any other claims that cannot by law be released by private agreement.  I also understand that this General Release does not prevent me from: (a) filing a lawsuit to challenge my release of age discrimination claims under the ADEA; or (b) filing a charge with an administrative agency, but I am waiving my right to recover any monetary or injunctive relief pursuant to such charge.
		

		
			 
		

		
			By signing this General Release, I am releasing all known and unknown claims and waive the benefits of any statute purporting to prevent me from releasing unknown claims, including, but not limited to protection of Cal. Civ. Code Section 1542, which states:
		

		
			 
		

		
			A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.
		

		
			 
		

		
			By signing this General Release, I represent and warrant that: 
		

		
			 
		

		
			(a) I have no Released Claims pending against the Company or any other Releasee and have not assigned or transferred any Released Claim to anyone; 
		

		
			 
		

		
			(b) I have been timely paid all compensation owed for services rendered through the date of my separation from employment with the Company, including all salary, wages, bonuses, and payment for accrued but unused vacation; and  
		

		
			

		 

		

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(c) Except to the extent previously disclosed by me to the Company in writing (i) I have not suffered any work-related injury or illness as an employee of the Company or any other Releasee, (ii) I am not aware of any facts or circumstances that would give rise to a workers’ compensation claim by me against the Company or any other Releasee, and (iii) I agree that I am not entitled to any workers’ compensation benefits arising out of or relating to my employment with the Company or any other Releasee.
		

		
			 
		

		
			By signing this General Release, I acknowledge and agree: 
		

		
			 
		

		
			(a) that the consideration described in Sections 2(b) and 2(c) of the Agreement is consideration to which I would not otherwise be entitled, but for the execution of this General Release; 
		

		
			 
		

		
			(b) that I have been advised to consult with legal counsel about this General Release and have been given an opportunity to do so; 
		

		
			 
		

		
			(c) that I have been given twenty-one (21) calendar days in which to consider this General Release before signing it but understand that I may sign it in less than 21 days if I wish to do so; 
		

		
			 
		

		
			(d) that I have not relied on any promises or representations of any kind, except those set forth in the Agreement; and 
		

		
			 
		

		
			(e) that I have executed this General Release voluntarily, of my own free will, and without any threat, intimidation or coercion.
		

		
			 
		

		
			I understand that I may revoke this General Release by delivering written notice of revocation to the Company by fax or U.S. Mail addressed as follows, which notice must be postmarked or received not later than the seventh (7th) calendar day following my execution of this General Release, and this General Release shall not become effective until the seven-day revocation period has expired without revocation by me:
		

		
			 
		

		
			Cimarex Energy Co.
		

		
			1700 Lincoln Street, Suite 3700
		

		
			Denver, CO 80203
		

		
			Fax: (720) 403-9383
		

		
			ATT: Francis B. Barron, Senior Vice President - General Counsel.
		

		
			 
		

		
			 
		

		
			 
		

		
			
		

		
			Paul Korus
		

		
			 
		

		
			
		

		
			Date
		

		 

		

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