Document:

EX-10.1

 Exhibit 10.1 

Execution Version 
  

 
 TENTH AMENDMENT TO 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT 

Dated March 14, 2014 

Among 
 RESOLUTE ENERGY
CORPORATION, 
 as Borrower, 

CERTAIN OF ITS SUBSIDIARIES, 

as Guarantors, 
 WELLS
FARGO BANK, NATIONAL ASSOCIATION, 
 as Administrative Agent, 

BANK OF MONTREAL, 
 as
Syndication Agent, 
 BARCLAYS BANK PLC, CITIBANK, N.A. and 

U.S. BANK NATIONAL ASSOCIATION, 

as Co-Documentation Agents, 

and 
 The Lenders Party
Hereto 
 WELLS FARGO SECURITIES, LLC 

and BMO CAPITAL MARKETS 

as Joint Bookrunners and Joint Lead Arrangers 
  

 

 THIS TENTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Tenth
Amendment”), dated as of March 14, 2014, is by and among Resolute Energy Corporation, a Delaware corporation (the “Borrower”), certain of its subsidiaries (collectively, the “Guarantors”), Wells Fargo
Bank, National Association, as Administrative Agent (the “Administrative Agent”) and the lenders party hereto (the “Lenders”). 

Recitals 
 WHEREAS,
the Borrower, the Guarantors, the Administrative Agent and the other lenders party thereto entered into that certain Second Amended and Restated Credit Agreement, dated as of March 30, 2010 (as amended by the First Amendment to Second Amended
and Restated Credit Agreement dated April 18, 2011, the Second Amendment to Second Amended and Restated Credit Agreement dated April 25, 2011, the Third Amendment to Second Amended and Restated Credit Agreement dated as of April 13,
2012, the Fourth Amendment to Second Amended and Restated Credit Agreement dated as of December 7, 2012, the Fifth Amendment to Second Amended and Restated Credit Agreement dated as of December 27, 2012, the Sixth Amendment to Second
Amended and Restated Credit Agreement dated as of March 22, 2013, the Seventh Amendment to Second Amended and Restated Credit Agreement dated as of April 15, 2013, the Eighth Amendment to Second Amended and Restated Credit Agreement dated
as of December 13, 2013 and the Ninth Amendment to Second Amended and Restated Credit Agreement dated as of March 7, 2014, and as the same may be further amended, modified, supplemented or restated from time to time, the “Credit
Agreement”); 
 WHEREAS, the Borrower has requested that the Administrative Agent and the Lenders amend the Credit Agreement
as set forth herein; and 
 WHEREAS, subject to the satisfaction of the conditions set forth herein, the Administrative Agent and the
Lenders are willing to amend the Credit Agreement as provided herein. 
 NOW, THEREFORE, in consideration of the premises and the
mutual covenants contained herein and in the Credit Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

 ARTICLE I 

Definitions 
 Each
capitalized term used in this Tenth Amendment and not defined herein shall have the meaning assigned to such term in the Credit Agreement. Unless otherwise indicated, all section references in this Tenth Amendment refer to sections of the Credit
Agreement. 

  
 1 

 ARTICLE II 

Amendments 
 As of the
Tenth Amendment Effective Date, the Credit Agreement is amended as follows: 
 Section 2.01 Amendments to Section 1.02 of the
Credit Agreement. 
 (a) Section 1.02 of the Credit Agreement is hereby amended by adding the following new definitions in their
proper alphabetical order: 
 “‘Required Hedging Agreement’ has the meaning assigned to such term in
Section 8.18.” 
 “‘Tenth Amendment’ means that certain Tenth Amendment to Second
Amended and Restated Credit Agreement, dated as of March 14, 2014, among the Borrower, the Guarantors, the Administrative Agent and the Lenders party thereto.” 

“‘Tenth Amendment Effective Date’ means the first Business Day on which all of the conditions precedent
set forth in Article III of the Tenth Amendment shall have been satisfied (or waived in accordance with Section 12.02).” 
 (b)
Section 1.02 of the Credit Agreement is hereby amended by deleting each of the following definitions in their entirety and inserting in Section 1.02 the following definitions in lieu thereof: 

“‘Agreement’ means this Second Amended and Restated Credit Agreement, as amended by the First Amendment,
the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth Amendment, the Seventh Amendment, the Eighth Amendment, the Ninth Amendment and the Tenth Amendment, as the same may from time to time be amended,
modified, supplemented or restated.” 
 “‘First Redetermination Date’ means the date on which the
first redetermination of the Borrowing Base after the Tenth Amendment Effective Date becomes effective.” 

“‘Non-Conforming Tranche’ means that portion of the Borrowing Base equal to, (a) prior to the
Non-Conforming Tranche Termination Date, $25,000,000 less any reductions to such amount under Section 2.07(e), and (b) from and after the Non-Conforming Tranche Termination Date, $0.” 

“‘Non-Conforming Tranche Termination Date’ means the earliest to occur of (a) the date on which the
Borrower permanently terminates all of the Non-Conforming Tranche pursuant to Section 2.07(e) and pays in full all outstanding Non-Conforming Tranche Loans, (b) the date on which the Non-Conforming Tranche is reduced to $0 pursuant
to Section 2.07(e) and (c) the First Redetermination Date.” 

  
 2 

 Section 2.02 Amendment to Section 2.07(a). Section 2.07(a) of the Credit
Agreement is hereby amended by deleting it in its entirety and inserting the following in lieu thereof: 
 “(a)
Initial Borrowing Base. For the period from and including the Tenth Amendment Effective Date to but excluding the First Redetermination Date, the amount of the Borrowing Base shall be $425,000,000. Prior to the Non-Conforming Tranche
Termination Date, the Borrowing Base shall consist of two portions: the Conforming Tranche and the Non-Conforming Tranche. The initial amount of the Conforming Tranche shall be $400,000,000, and the initial amount of the Non-Conforming Tranche shall
be $25,000,000. Notwithstanding the foregoing, the Borrowing Base (and, prior to the Non-Conforming Tranche Termination Date, the Conforming Tranche and the Non-Conforming Tranche) may be subject to further adjustments from time to time pursuant to
this Section 2.07 or Section 8.13(d), Section 9.02(f), Section 9.12 or Section 9.19.” 

Section 2.03 Amendment to Section 2.07(e). Section 2.07(e) of the Credit Agreement is hereby amended by deleting it in
its entirety and inserting the following in lieu thereof: 
 “(e) Reductions in the Conforming Tranche and the
Non-Conforming Tranche. The Borrower may at any time terminate, or from time to time reduce the Conforming Tranche or the Non-Conforming Tranche; provided that (i) the Borrower shall not reduce the Conforming Tranche unless the
Non-Conforming Tranche is $0, (ii) the Borrower shall not terminate or reduce the Conforming Tranche if, after giving effect to any concurrent prepayment of the Loans in accordance with Section 3.04(c), the total Conforming Tranche
Credit Exposure would exceed the Conforming Tranche, (iii) the Borrower shall not terminate or reduce the Non-Conforming Tranche if, after giving effect to any concurrent prepayment of the Loans in accordance with Section 3.04(c),
the total Non-Conforming Tranche Loans would exceed the Non-Conforming Tranche, and (iv) any reduction of the Conforming Tranche or the Non-Conforming Tranche shall be effected in the same manner in which the Borrower may terminate or reduce
the Aggregate Maximum Credit Amounts pursuant to Section 2.06(b). In addition, the Non-Conforming Tranche shall be reduced immediately (a) to the extent that the Non-Conforming Tranche at any time exceeds 10% of the Conforming
Tranche at any time, (b) by an amount equal to 100% of the net cash proceeds received from (i) any issuance of equity by the Borrower and (ii) any issuance by a Loan Party of unsecured Debt that is permitted under
Section 9.02(f) and (c) by an amount equal to 100% of the net cash proceeds in excess of $5,000,000 in the aggregate received by any Loan Parties upon entering into or in connection with any asset sale (other than any asset sales
pursuant to Section 9.12(a)), farm out, acreage swap or joint venture. Upon the termination or any reduction of the Non-Conforming Tranche, the Borrowing Base will no longer include the amount of the Non-Conforming Tranche that is terminated or
reduced. Once any portion of the Non-Conforming Tranche is terminated or reduced, it will not be reinstated.” 

  
 3 

 Section 2.04 Amendment to Article VIII. Article VIII of the Credit Agreement is
hereby amended by adding the following Section 8.18 to the end thereof: 
 “Section 8.18 Hedging Agreements.
The Borrower shall, or shall cause one or more of its Restricted Subsidiaries to, enter into one or more Hedging Agreements in respect of commodities (the “Required Hedging Agreements”), each with an Approved Counterparty and each
in form and substance reasonably acceptable to the Administrative Agent, such that (a) not less than 5,100 barrels per day in the aggregate are hedged for the fiscal year ending December 31, 2015, and (b) the weighted average price
floor of the Required Hedging Agreements is not less than $84.17 per barrel; provided that (i) Required Hedging Agreements covering at least one-third of the aggregate volumes to be covered by the Required Hedging Agreements are entered
into on or prior to March 13, 2014 and (ii) all remaining Required Hedging Agreements are entered into on or prior to March 31, 2014.” 

Section 2.05 Amendment to Section 9.12(c)(iii). Section 9.12(c)(iii) of the Credit Agreement is hereby amended by
deleting it in its entirety and inserting the following in lieu thereof: 
 “(iii)(A) if such Transfer of any Borrowing
Base Property or Restricted Subsidiary owning Borrowing Base Properties occurs prior to the Non-Conforming Tranche Termination Date and the aggregate net cash proceeds received with respect to all such Transferred properties (together with the net
cash proceeds received upon entering into or in connection with all other asset sales (other than any asset sales pursuant to Section 9.12(a)), farm outs, acreage swaps or joint ventures) exceeds $5,000,000 in the aggregate, then the
Non-Conforming Tranche shall be reduced pursuant to Section 2.07(e) and the Borrowing Base shall no longer include the amount of the Non-Conforming Tranche that is so reduced, and (B) if such Transfer of any Borrowing Base Property
or Restricted Subsidiary owning Borrowing Base Properties included in the most recently delivered Reserve Report during any period between two successive Scheduled Redetermination Dates has a fair market value (together with all other Transfers of
Borrowing Base Properties or Restricted Subsidiaries owning Borrowing Base Properties included in the most recently delivered Reserve Report during such period) in excess of ten percent (10%) of the Borrowing Base then in effect as determined
by the Required Lenders, the Borrowing Base (and, prior to the Non-Conforming Tranche Termination Date, the Conforming Tranche) shall be reduced (without duplication of any reduction in the Borrowing Base (or the Conforming Tranche) pursuant to
clause (A)), effective immediately upon such Transfer, by an amount equal to the value, if any, assigned such Borrowing Base Property (or Borrowing Base Properties) in the most recently delivered Reserve Report and any mandatory prepayments required
by Section 3.04(c)(iii) shall be made concurrently, provided that this Section 9.12(c)(iii) shall not apply to the Transfer of any Borrowing Base Property pursuant to the NNOG Purchase and Sale Agreement, and”

  
 4 

 ARTICLE III 

Conditions Precedent 
 This
Tenth Amendment shall become effective on the first Business Day on which all of the following conditions precedent shall have been satisfied (or waived in accordance with Section 12.02 of the Credit Agreement) (the “Tenth Amendment
Effective Date”): 
 (a) The Administrative Agent shall have received from the Borrower, each of the Guarantors and the Lenders
counterparts (in such number as may be requested by the Administrative Agent) of this Tenth Amendment signed on behalf of such Persons. 

(b) The Administrative Agent shall have received from the Borrower in immediately available funds (i) for the account of each Lender, an
increase fee in an amount equal to 0.40% of the portion of such Lender’s Commitment on the Tenth Amendment Effective Date that is in excess of the portion of such Lender’s Commitment that is in effect both immediately prior to and on the
Tenth Amendment Effective Date, and (ii) all other fees and amounts due and payable on or prior to the Tenth Amendment Effective Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses required to be
reimbursed or paid by the Borrower hereunder. 
 (c) The Administrative Agent shall have received from each party thereto duly executed
counterparts (in such number as may be requested by the Administrative Agent) of additional Mortgages, supplements and amendments to existing Mortgages (including any curative documents with respect thereto), and amendments to other Security
Instruments as reasonably requested by the Administrative Agent. In connection with the execution and delivery of such Security Instruments and applicable amendments, the Administrative Agent shall be reasonably satisfied that the Security
Instruments create first priority, perfected Liens (subject only to Excepted Liens, but subject to the proviso at the end of such definition) on proved Oil and Gas Properties constituting, in the aggregate, at least eighty percent (80%) of the
total value of the proved Oil and Gas Properties evaluated in the most recently delivered Reserve Report. 
 (d) The Administrative Agent
shall be reasonably satisfied with title to the proved Oil and Gas Properties of the Loan Parties reflecting at least 80% of the total value of the proved oil and gas properties evaluated by the most recently delivered Reserve Report. 

(e) The Administrative Agent shall have received such other documents as the Administrative Agent or its special counsel may reasonably
request. 
 ARTICLE IV 

Representations and Warranties 

Each Loan Party hereby represents and warrants to each Lender that: 

(a) Each of the representations and warranties made by it under the Credit Agreement and each other Loan Document is true and correct on and
as of the actual date of its execution of this Tenth Amendment, as if made on and as of such date, except for any representations and warranties made as of a specified date, which are true and correct as of such specified date. 

(b) Immediately after giving effect to, this Tenth Amendment, no Default has occurred and is continuing. 

  
 5 

 (c) The execution, delivery and performance by it of this Tenth Amendment have been duly
authorized by it. 
 (d) This Tenth Amendment constitutes its legal, valid and binding obligation, enforceable against it in accordance with
its terms. 
 (e) The execution, delivery and performance by it of this Tenth Amendment (i) does not require any consent or approval
of, registration or filing with, or any other action by, any Governmental Authority or any other third Person (including shareholders or any class of directors, whether interested or disinterested, of it or any other Person), nor is any such
consent, approval, registration, filing or other action necessary for the validity or enforceability of this Tenth Amendment or any Loan Document or the consummation of the transactions contemplated thereby, except such as have been obtained or made
and are in full force and effect other than those third party approvals or consents which, if not made or obtained, would not cause a Default hereunder, could not reasonably be expected to have a Material Adverse Effect or do not have an adverse
effect on the enforceability of the Loan Documents, (ii) will not violate any applicable law or regulation or the charter, by-laws or other organizational documents of it or any Restricted Subsidiary or any order of any Governmental Authority,
(iii) will not violate or result in a default under any indenture, agreement or other instrument binding upon it or any Restricted Subsidiary or its Properties, or give rise to a right thereunder to require any payment to be made by the it or
such Restricted Subsidiary and (iv) will not result in the creation or imposition of any Lien on any Property of any Loan Party or any Restricted Subsidiary (other than the Liens created by this Tenth Amendment or the Loan Documents). 

ARTICLE V 
 Assignment
and Assumption 
 Section 5.01 For an agreed consideration, each Lender (individually an “Assignor” and
collectively, the “Assignors”) hereby irrevocably sells and assigns, severally and not jointly, (i) all of such Assignor’s rights and obligations in its capacity as Lender under the Credit Agreement and any other documents
or instruments delivered pursuant thereto to the extent related to its Commitment and Credit Exposure, as the case may be, identified in Annex II attached hereto and (ii) to the extent permitted to be assigned under applicable law, all
claims, suits, causes of action and any other right of such Assignor (in its capacity as Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered
pursuant thereto or the transactions governed thereby or in any way based on or related to any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the
rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively for all Assignors as the
“Assigned Interests”) to the Lenders (individually, an “Assignee” and, collectively, the “Assignees”) set forth on Annex I to this Tenth Amendment (which shall replace the existing Annex
I to the Credit Agreement as of the Tenth Amendment Effective Date), and each Assignee hereby irrevocably purchases and assumes from each Assignor such Assignee’s percentage (as set forth on Annex I to this Tenth Amendment) of the
Assigned Interests, subject to and in accordance with the Credit Agreement and this Tenth Amendment, as of the Tenth Amendment Effective Date. Such sale and assignment is without recourse to the Assignors and, except as expressly provided in this
Tenth Amendment, without representation or warranty by the Assignors. 

  
 6 

 Section 5.02 From and after the Tenth Amendment Effective Date, the Administrative Agent
shall distribute all payments in respect of the Assigned Interests (including payments of principal, interest, fees and other amounts) to the appropriate Assignors for amounts which have accrued to but excluding the Tenth Amendment Effective Date
and to the appropriate Assignees for amounts which have accrued from and after the Tenth Amendment Effective Date. 
 Section 5.03 Each
Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the percentage of the Assigned Interest set forth on Annex II attached hereto, (ii) such Assigned Interest is free and clear of any lien,
encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this assignment and to consummate the transactions contemplated by this Article V; and (b) assumes no
responsibility with respect to (i) any statements, warranties or representations made by any other Person in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of their Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or
(iv) the performance or observance by the Borrower, any of their Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document. 

Section 5.04 Each Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action
necessary, to execute and deliver this assignment and to consummate the transactions contemplated hereby, (ii) it satisfies the requirements specified in the Credit Agreement and this Tenth Amendment that are required to be satisfied by it in
order to acquire the percentage of the Assigned Interests set forth in Annex I to this Tenth Amendment, (iii) from and after the Tenth Amendment Effective Date, it shall have the obligations of a Lender thereunder to the extent of its
percentage (as set forth on Annex I to this Tenth Amendment) of the Assigned Interests, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant thereto, and
such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Tenth Amendment and to purchase its percentage of the Assigned Interests on the basis of which it has made such
analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and (v) if it is a Foreign Lender, it has supplied to the Administrative Agent any documentation required to be delivered by it pursuant
to the terms of the Credit Agreement, duly completed and executed by such Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, any Assignor or any other Lender, and based on such
documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the
obligations which by the terms of the Loan Documents are required to be performed by it as a Lender. 

  
 7 

 ARTICLE VI 

Miscellaneous 

Section 6.01 Credit Agreement in Full Force and Effect as Amended. Except as specifically amended hereby, the Credit Agreement and
other Loan Documents shall remain in full force and effect. Each of the Loan Parties hereby agrees that its liabilities under the Credit Agreement, the Guaranty and Collateral Agreement and the other Loan Documents, in each case as amended, to which
it is a party, shall remain enforceable against such Loan Party in accordance with the terms thereof and shall not be reduced, altered, limited, lessened or in any way affected by the execution and delivery of this Tenth Amendment, and each Loan
Party hereby confirms and ratifies its liabilities under the Loan Documents (as so amended) to which it is a party in all respects. Except as expressly set forth herein, this Tenth Amendment shall not be deemed to be a waiver, amendment or
modification of any provisions of the Credit Agreement or any other Loan Document or any right, power or remedy of the Administrative Agent or Lenders, or constitute a waiver of any provision of the Credit Agreement or any other Loan Document, or
any other document, instrument and/or agreement executed or delivered in connection therewith or of any Default or Event of Default under any of the foregoing, in each case whether arising before or after the date hereof or as a result of
performance hereunder or thereunder. This Tenth Amendment also shall not preclude the future exercise of any right, remedy, power, or privilege available to the Administrative Agent and/or Lenders whether under the Credit Agreement, the other Loan
Documents, at law or otherwise. The parties hereto agree to be bound by the terms and conditions of the Credit Agreement and Loan Documents as amended by this Tenth Amendment, as though such terms and conditions were set forth herein. Each reference
in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of similar import shall mean and be a reference to the Credit Agreement as amended by this Tenth Amendment, and each
reference herein or in any other Loan Documents to the “Credit Agreement” shall mean and be a reference to the Credit Agreement as amended and modified by this Tenth Amendment. 

Section 6.02 GOVERNING LAW. THIS TENTH AMENDMENT, AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER, SHALL BE
CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. 
 Section 6.03 Descriptive Headings,
Etc. The descriptive headings of the sections of this Tenth Amendment are inserted for convenience only and shall not be deemed to affect the meaning or construction of any of the provisions hereof. The statements made and the terms defined in
the recitals to this Tenth Amendment are hereby incorporated into this Tenth Amendment in their entirety. 
 Section 6.04 Payment of Fees
and Expenses. In addition to paying to the Administrative Agent for the account of the Lenders the fees described in clause (b)(i) of Article III above, the Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable
out-of-pocket costs and expenses incurred in connection with this Tenth Amendment, the Loan Documents and any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable
fees and disbursements of counsel to the Administrative Agent. The agreement set forth in this Section 6.04 shall survive the termination of this Tenth Amendment and the Credit Agreement. Lenders who are Lenders as of the date hereof (or
assignees of such Lenders) shall charge future upfront fees in connection with any increase in the Borrowing Base only with respect to the amount by which such increased Borrowing Base exceeds $425,000,000. 

  
 8 

 Section 6.05 Entire Agreement. This Tenth Amendment and the documents referred to
herein represent the entire understanding of the parties hereto regarding the subject matter hereof and supersede all prior and contemporaneous oral and written agreements of the parties hereto with respect to the subject matter hereof. This Tenth
Amendment is a Loan Document executed under the Credit Agreement. 
 Section 6.06 Counterparts. This Tenth Amendment may be
executed in any number of counterparts and by different parties on separate counterparts, each of which shall constitute an original but all of which when taken together shall constitute but one agreement. Delivery of an executed counterpart of the
signature page of this Tenth Amendment by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart thereof. 

Section 6.07 Successors. The execution and delivery of this Tenth Amendment by any Lender shall be binding upon each of its
successors and assigns. 
 Section 6.08 Scheduled Redetermination of the Borrowing Base. The adjustments to the Borrowing Base
set forth herein shall constitute the Scheduled Redetermination of the Borrowing Base under the Credit Agreement scheduled to occur on April 1, 2014. 

[Signatures Begin on Next Page] 

  
 9 

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

 

					
		 	RESOLUTE ENERGY CORPORATION
			
		 	By:	 	 /s/ Theodore Gazulis

		 		 	Theodore Gazulis
		 		 	Executive Vice President and
		 		 	Chief Financial Officer
		
	GUARANTORS:	 	HICKS ACQUISITION COMPANY I, INC.
		
		 	RESOLUTE ANETH, LLC
		
		 	RESOLUTE WYOMING, INC. (f/k/a Primary Natural Resources, Inc.)
		
		 	RESOLUTE NATURAL RESOURCES COMPANY, LLC (f/k/a Resolute Natural Resources Company)
		
		 	BWNR, LLC
		
		 	WYNR, LLC
		
		 	RESOLUTE NORTHERN ROCKIES, LLC
		
		 	RESOLUTE NATURAL RESOURCES
		 	SOUTHWEST, LLC
			
		 	By:	 	 /s/ Theodore Gazulis

		 		 	Theodore Gazulis
		 		 	Executive Vice President and
		 		 	Chief Financial Officer

 Signature Page to 

Tenth Amendment to Second Amended and Restated Credit Agreement 

					
	ADMINISTRATIVE AGENT	 	
	AND LENDER:	 	 WELLS FARGO BANK, NATIONAL ASSOCIATION, successor-by-merger to Wachovia Bank, National Association,

as Administrative Agent and a Lender

			
		 	By:	 	 /s/ Suzanne Ridenhour

		 	Name:	 	Suzanne Ridenhour
		 	Title:	 	Director

  

					
	LENDER:	 	WELLS FARGO BANK, NATIONAL ASSOCIATION
			
		 	By:	 	 /s/ Suzanne Ridenhour

		 	Name:	 	Suzanne Ridenhour
		 	Title:	 	Director

  
 Signature Page to 

Tenth Amendment to Second Amended and Restated Credit Agreement 

							
	LENDER:	 		 	BANK OF MONTREAL
				
		 		 	By:	 	 /s/ James V. Ducote

		 		 	Name:	 	James V. Ducote
		 		 	Title:	 	Managing Director

  
 Signature Page to 

Tenth Amendment to Second Amended and Restated Credit Agreement 

							
	LENDER:	 		 	BARCLAYS BANK PLC
				
		 		 	By:	 	 /s/ Vanessa Kurbatskiy

		 		 	Name:	 	Vanessa Kurbatskiy
		 		 	Title:	 	Vice President

  
 Signature Page to 

Tenth Amendment to Second Amended and Restated Credit Agreement 

							
	LENDER:	 		 	CITIBANK, N.A.
				
		 		 	By:	 	 /s/ Eamon Baqui

		 		 	Name:	 	Eamon Baqui
		 		 	Title:	 	Vice President

  
 Signature Page to 

Tenth Amendment to Second Amended and Restated Credit Agreement 

							
	LENDER:	 		 	U.S. BANK NATIONAL ASSOCIATION
				
		 		 	By:	 	 /s/ Jonathan H. Lee

		 		 	Name:	 	Jonathan H. Lee
		 		 	Title:	 	Vice President

  
 Signature Page to 

Tenth Amendment to Second Amended and Restated Credit Agreement 

							
	LENDER:	 		 	UNION BANK, N.A.
				
		 		 	By:	 	 /s/ Rachel Bowman

		 		 	Name:	 	Rachel Bowman
		 		 	Title:	 	Vice President

  
 Signature Page to 

Tenth Amendment to Second Amended and Restated Credit Agreement 

							
	LENDER:	 		 	BRANCH BANKING AND TRUST COMPANY
				
		 		 	By:	 	 /s/ James Giordano

		 		 	Name:	 	James Giordano
		 		 	Title:	 	Vice President

  
 Signature Page to 

Tenth Amendment to Second Amended and Restated Credit Agreement 

							
	LENDER:	 		 	CAPITAL ONE, NATIONAL ASSOCIATION
				
		 		 	By:	 	 /s/ Kristin N. Oswald

		 		 	Name:	 	Kristin N. Oswald
		 		 	Title:	 	Vice President

  
 Signature Page to 

Tenth Amendment to Second Amended and Restated Credit Agreement 

							
	LENDER:	 		 	COMERICA BANK
				
		 		 	By:	 	 /s/ Ekaterina V. Esveev

		 		 	Name:	 	Ekaterina E. Esveev
		 		 	Title:	 	Assistant Vice President

  
 Signature Page to 

Tenth Amendment to Second Amended and Restated Credit Agreement 

							
	LENDER:	 		 	SUNTRUST BANK
				
		 		 	By:	 	 /s/ Yann Pirio

		 		 	Name:	 	Yann Pirio
		 		 	Title:	 	Director

  
 Signature Page to 

Tenth Amendment to Second Amended and Restated Credit Agreement 

							
	LENDER:	 		 	ING CAPITAL LLC
				
		 		 	By:	 	 /s/ Juli Bieser

		 		 	Name:	 	Juli Bieser
		 		 	Title:	 	Director
				
		 		 	By:	 	 /s/ Michael Price

		 		 	Name:	 	Michael Price
		 		 	Title:	 	Director

  
 Signature Page to 

Tenth Amendment to Second Amended and Restated Credit Agreement 

							
	LENDER:	 		 	KEY BANK NATIONAL ASSOCIATION
				
		 		 	By:	 	 /s/ Paul J. Pace

		 		 	Name:	 	Paul J. Pace
		 		 	Title:	 	Senior Vice President

  
 Signature Page to 

Tenth Amendment to Second Amended and Restated Credit Agreement 

							
	LENDER:	 		 	ASSOCIATED BANK, N.A.
				
		 		 	By:	 	 /s/ Kyle Lewis

		 		 	Name:	 	Kyle Lewis
		 		 	Title:	 	AVP

  
 Signature Page to 

Tenth Amendment to Second Amended and Restated Credit Agreement 

							
	LENDER:	 		 	CADENCE BANK, N.A.
				
		 		 	By:	 	 /s/ Colby Kramer

		 		 	Name:	 	Colby Kramer
		 		 	Title:	 	Vice President

  
 Signature Page to 

Tenth Amendment to Second Amended and Restated Credit Agreement 

							
	LENDER:	 		 	GUARANTY BANK AND TRUST COMPANY
				
		 		 	By:	 	 /s/ Gail J. Nofsinger

		 		 	Name:	 	Gail J. Nofsinger
		 		 	Title:	 	Senior Vice President

  
 Signature Page to 

Tenth Amendment to Second Amended and Restated Credit Agreement 

 ANNEX I 

MAXIMUM CREDIT AMOUNTS 

(as of the Tenth Amendment Effective Date) 
  

					
	 Lender
	  	Maximum Credit Amount	 
	 Wells Fargo Bank, National Association
	  	$	113,292,904.80	  
	 Bank of Montreal
	  	$	113,292,904.80	  
	 Barclays Bank PLC
	  	$	82,474,226.80	  
	 Citibank, N.A.
	  	$	82,474,226.80	  
	 U.S. Bank National Association
	  	$	82,474,226.80	  
	 Union Bank, N.A.
	  	$	76,506,973.93	  
	 Branch Banking & Trust
	  	$	61,855,670.10	  
	 Capital One, National Association
	  	$	61,855,670.10	  
	 Comerica Bank
	  	$	61,855,670.10	  
	 SunTrust Bank
	  	$	61,855,670.10	  
	 ING Capital LLC
	  	$	47,422,680.41	  
	 KeyBank National Association
	  	$	47,422,680.41	  
	 Associated Bank, N.A.
	  	$	40,206,185.57	  
	 Cadence Bank, N.A.
	  	$	40,206,185.57	  
	 Guaranty Bank and Trust Company
	  	$	26,804,123.71	  
	 Total:
	  	$	1,000,000,000.00	  

  
 Annex I 

 ANNEX II 

MAXIMUM CREDIT AMOUNTS 

(immediately prior to the Tenth Amendment Effective Date) 
  

					
	 Lender
	  	Maximum Credit Amount	 
	 Wells Fargo Bank, National Association
	  	$	112,371,134.03	  
	 Bank of Montreal
	  	$	112,371,134.03	  
	 Barclays Bank PLC
	  	$	82,474,226.80	  
	 Citibank, N.A.
	  	$	82,474,226.80	  
	 U.S. Bank National Association
	  	$	82,474,226.80	  
	 Union Bank, N.A.
	  	$	78,350,515.47	  
	 Branch Banking & Trust
	  	$	61,855,670.10	  
	 Capital One, National Association
	  	$	61,855,670.10	  
	 Comerica Bank
	  	$	61,855,670.10	  
	 SunTrust Bank
	  	$	61,855,670.10	  
	 ING Capital LLC
	  	$	47,422,680.41	  
	 KeyBank National Association
	  	$	47,422,680.41	  
	 Associated Bank, N.A.
	  	$	40,206,185.57	  
	 Cadence Bank, N.A.
	  	$	40,206,185.57	  
	 Guaranty Bank and Trust Company
	  	$	26,804,123.71	  
	 Total:
	  	$	1,000,000,000.00	  

  
 Annex IIEX-10.20

 Exhibit 10.20 

GLOBAL BRASS AND COPPER HOLDINGS, INC. 

2013 OMNIBUS EQUITY INCENTIVE PLAN 

PERFORMANCE SHARE AWARD AGREEMENT  

THIS PERFORMANCE SHARE AWARD AGREEMENT (the “Agreement”), effective as of
[            ], 2013 (the “Date of Grant”), is made by and between Global Brass and Copper Holdings, Inc., a Delaware corporation (the “Company”), and
[            ] (the “Participant”). Any capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in the Plan. 

WHEREAS, the Company has adopted the Global Brass and Copper Holdings, Inc. 2013 Omnibus Equity Incentive Plan (the “Plan”),
pursuant to which Performance Shares may be granted; and 
 WHEREAS, the Compensation Committee of the Board of Directors of the Company
(the “Committee”) has determined that it is in the best interests of the Company and its stockholders to grant the Performance Shares provided for herein to the Participant subject to the terms set forth herein. 

NOW, THEREFORE, for and in consideration of the promises and the covenants of the parties contained in this Agreement, and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows: 

1. Grant of Performance Shares. 
 (a)
Grant. Subject to the terms and conditions set forth in this Agreement and as otherwise provided in the Plan, the Company grants the Participant [1,000]1 performance shares (the
“Performance Shares”). The Performance Shares shall be credited to a separate book-entry account maintained for the Participant on the books of the Company. Shares of Common Stock underlying the Performance Shares, to the extent
earned in accordance with Exhibit A, shall be issued and delivered to the Participant as follows: One third shall vest and be issued on or within 30 days following the determination in 2014 by the Board or an appropriate committee thereof that
Performance Shares have been earned by the Participant (the “Initial Vesting Date”), one third shall vest and be issued on the first anniversary of the Initial Vesting Date and one-third shall vest and be issued on the second anniversary
of the Initial Vesting Date (collectively, the “Vesting Dates”) provided that, except as provided in Section 3 hereof, the Participant is in the employ of the Company or its subsidiaries on each applicable Vesting Date. 

(b) Incorporation by Reference, Etc. The provisions of the Plan are hereby incorporated herein by reference. Except as otherwise
expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any interpretations, amendments, rules and regulations promulgated by the Committee from time to time pursuant to the Plan. Any
capitalized terms not otherwise defined in this Agreement shall have the meaning as set forth in the Plan. In the event of a conflict between the Plan and this Agreement, the terms and conditions of the Plan shall govern. The Committee shall have
final authority to interpret and construe the Plan and this Agreement and to make any and all determinations under them, and its decision shall be binding and conclusive upon the Participant and his legal representative in respect of any questions
arising under the Plan or this Agreement. 
  

	1 	Actual number to be updated and inserted 

 (c) Acceptance of Agreement. The Participant will be bound by the terms of the Agreement
and the Plan. By accepting this Agreement, the Participant consents to the electronic delivery of prospectuses, annual reports and other information required to be delivered by Securities and Exchange Commission rules (which consent may be revoked
in writing by the Participant at any time upon three business days’ notice to the Company, in which case subsequent prospectuses, annual reports and other information will be delivered in hard copy to the Participant). 

2. Dividend Equivalents. Each Performance Share shall be credited with Dividend Equivalents, which shall be withheld by the Company for the
Participant’s account. Dividend Equivalents credited to the Participant’s account and attributable to a Performance Share shall be distributed (without interest) to the Participant at the same time as the underlying Common Stock is
delivered upon settlement of such Performance Share and, if such Performance Share is forfeited, the Participant shall have no right to such Dividend Equivalents. 

3. Termination of Employment; Change of Control. Except as provided in this Section 3, if the Participant’s employment with the Company or
any Affiliate, as applicable, terminates for any reason, then all unvested Performance Shares shall be cancelled immediately and the Participant shall immediately forfeit any rights to such Performance Shares. In the event of (w) the
termination of the Participant’s employment or service by the Company without Cause or by the Participant for Good Reason (as defined in the Participant’s employment, severance protection agreement or similar agreement, provided that if no
such agreement exists or no definition of Good Reason is provided therein, then Good Reason shall not exist), in each case following a Change in Control, (x) the termination of the Participant’s employment or service by the Company as a
result of the Participant’s Disability, (y) by the Company as a result of the Participant’s death or (z) by the Participant’s retirement on or after the date he has both attained age sixty (60) and completed at least
five (5) years of employment with or services to the Company or its Affiliates, then the Participant shall receive payment in respect of the Performance Shares based on (1) actual performance through the date of termination as determined
by the Committee, or (2) if the Committee determines that measurement of actual performance cannot be reasonably assessed, the assumed achievement of target performance as determined by the Committee (but not to the extent that application of
this clause (2) would cause Section 162(m) of the Code to result in the loss of the deduction of the compensation payable in respect of such Performance Shares for any Participant reasonably expected to be a “covered employee”
within the meaning of Section 162(m) of the Code), in each case prorated based on the time elapsed from the Date of Grant to the date of termination of employment or service. 

4. Rights as a Stockholder. The Participant shall not be deemed for any purpose to be the owner of any shares of Common Stock underlying the
Performance Shares unless, until and to the extent that (i) the Company shall have issued and delivered to the Participant the shares of Common Stock underlying the Performance Shares and (ii) the Participant’s name shall have been
entered as a stockholder of record with respect to such shares on the books of the Company. 
 5. Compliance with Legal Requirements. 

(a) Generally. The granting and settlement of the Performance Shares, and any other obligations of the Company under this Agreement,
shall be subject to all applicable federal, provincial, state, local and foreign laws, rules and regulations and to such approvals by any regulatory or governmental agency as may be required. The Committee shall have the right to impose such
restrictions on the Performance Shares as it deems necessary or advisable under applicable federal securities laws, the rules and regulations of any stock exchange or market upon which such Performance Shares are then listed or traded, and/or any
blue sky or state securities laws applicable to such Performance Shares. It is expressly understood that the Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and
this Agreement, all of which shall be binding upon the Participant. The Participant agrees to take all steps the Committee or the Company determines are necessary to comply with all applicable provisions of federal and state securities law in
exercising his or her rights under this Agreement. 

  
 2 

 (b) Tax Withholding. Vesting and settlement of the Performance Shares shall be subject to
the Participant satisfying any applicable federal, state, local and foreign tax withholding obligations. The Company shall have the power and the right to deduct or withhold from all amounts payable to the Participant in connection with the
Performance Shares or otherwise, or require the Participant to remit to the Company, an amount sufficient to satisfy any applicable taxes required by law. Further, the Company may permit or require the Participant to satisfy, in whole or in part,
the tax obligations by withholding shares of Common Stock upon vesting and settlement of the Performance Shares. 
 6. Clawback. Notwithstanding
anything to the contrary contained herein, the Committee may, in its sole discretion, cancel this Performance Share award if the Participant, without the consent of the Company, while employed by or providing services to the Company or any Affiliate
or after termination of such employment or service, violates a non-competition, non-solicitation, non-disparagement or non-disclosure covenant or agreement, or otherwise has engaged in or engages in activity that is in conflict with or adverse to
the interest of the Company or any Affiliate, including fraud or conduct contributing to any financial restatements or irregularities, as determined by the Committee in its sole discretion. Further, if the Participant otherwise has engaged in or
engages in any activity referred to in the preceding sentence, the Participant shall forfeit any compensation, gain or other value realized thereafter on the vesting or settlement of this Performance Share award, the sale or other transfer of this
Performance Share award, or the sale of shares of Common Stock acquired in respect of this Performance Share award, and must promptly repay such amounts to the Company. In addition, if the Participant receives any amount in excess of what the
Participant should have received under the terms of this Performance Share award for any reason (including without limitation by reason of a financial restatement, mistake in calculations or other administrative error), all as determined by the
Committee in its sole discretion, then the Participant shall be required to promptly repay any such excess amount to the Company. To the extent required by applicable law (including without limitation Section 304 of the Sarbanes-Oxley Act and
Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act) and/or the rules and regulations of NYSE or other securities exchange or inter-dealer quotation system on which the Common Stock is listed or quoted, or if so
required pursuant to a written policy adopted by the Company, this Performance Share award shall be subject (including on a retroactive basis) to clawback, forfeiture or similar requirements (and such requirements shall be deemed incorporated by
reference into this Agreement). 
 7. Miscellaneous. 

(a) Transferability. The Performance Shares may not be assigned, alienated, pledged, attached, sold, gifted, loaned or otherwise
transferred or encumbered by the Participant other than by will or by the laws of descent and distribution, pursuant to a qualified domestic relations order or as otherwise permitted under Section 15(b) of the Plan. In addition, the Participant
agrees to comply with any written holding requirement policy adopted by the Company for employees. 
 (b) Waiver. Any right of the
Company contained in this Agreement may be waived in writing by the Committee. No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent occasion for
its exercise, or as a waiver of any right to damages. No waiver by any party of any breach of this Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach. 

  
 3 

 (c) Section 409A. The Performance Shares are intended to be exempt from, or compliant
with, Section 409A of the Code. Notwithstanding the foregoing or any provision of the Plan or this Agreement, if any provision of the Plan or this Agreement contravenes Section 409A of the Code or could cause the Participant to incur any
tax, interest or penalties under Section 409A of the Code, the Committee may, in its sole discretion and without the Participant’s consent, modify such provision to (i) comply with, or avoid being subject to, Section 409A of the
Code, or to avoid the incurrence of taxes, interest and penalties under Section 409A of the Code, and/or (ii) maintain, to the maximum extent practicable, the original intent and economic benefit to the Participant of the applicable
provision without materially increasing the cost to the Company or contravening the provisions of Section 409A of the Code. This Section 7(c) does not create an obligation on the part of the Company to modify the Plan or this Agreement and
does not guarantee that the Performance Shares will not be subject to interest and penalties under Section 409A. 
 (d) General
Assets. All amounts credited in respect of the Performance Shares to the book-entry account under this Agreement shall continue for all purposes to be part of the general assets of the Company. The Participant’s interest in such account
shall make the Participant only a general, unsecured creditor of the Company. 
 (e) Notices. Any written notices provided for in this
Agreement or the Plan shall be in writing and shall be deemed sufficiently given if either hand delivered or if sent by fax, pdf/email or overnight courier, or by postage paid first class mail. Notices sent by mail shall be deemed received three
business days after mailing but in no event later than the date of actual receipt. Notices shall be directed, if to the Participant, at the Participant’s address indicated by the Company’s records, or if to the Company, to the attention of
the General Counsel at the Company’s principal executive office. 
 (f) Severability. The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law. 

(g) No Rights to Employment. Nothing contained in this Agreement shall be construed as giving the Participant any right to be retained,
in any position, as an employee, consultant or director of the Company or its Affiliates or shall interfere with or restrict in any way the rights of the Company or its Affiliates, which are hereby expressly reserved, to remove, terminate or
discharge the Participant at any time for any reason whatsoever. 
 (h) Fractional Shares. In lieu of issuing a fraction of a share of
Common Stock resulting from an adjustment of the Performance Shares pursuant to Section 12 of the Plan or otherwise, the Company shall be entitled to pay to the Participant an amount equal to the Fair Market Value of such fractional share. 

(i) Bound by Plan. By signing this Agreement, the Participant acknowledges that he or she has received a copy of the Plan and has had an
opportunity to review the Plan and agrees to be bound by all the terms and provisions of the Plan. 
 (j) Beneficiary. The Participant
may file with the Committee a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, amend or revoke such designation. Any notice should be made to the attention of the General Counsel of
the Company at the Company’s principal executive office. If no designated beneficiary survives the Participant, the Participant’s estate shall be deemed to be the Participant’s beneficiary. 

  
 4 

 (k) Successors. The terms of this Agreement shall be binding upon and inure to the
benefit of the Company and its successors and assigns, and of the Participant and the beneficiaries, executors, administrators, heirs and successors of the Participant.  

(l) Securities Laws. The Participant agrees that the obligation of the Company to issue Performance Shares shall also be subject,
as conditions precedent, to compliance with applicable provisions of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, state securities or corporation laws, rules and regulations under any of the foregoing and
applicable requirements of any securities exchange upon which the Company’s securities shall be listed. 
 (m)
Performance Compensation Award. The Performance Shares granted under this Agreement shall be a Performance Compensation Award intended to qualify as “performance-based compensation” under Section 162(m) of the Code, to the
extent Section 162(m) of the Code is reasonably expected to apply. 
 (n) Entire Agreement. This Agreement and the
Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto. No change, modification or
waiver of any provision of this Agreement shall be valid unless the same be in writing and signed by the parties hereto, except for any changes permitted without consent under Section 12 of the Plan.  

(o) Governing Law. This Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware without
regard to principles of conflicts of law thereof, or principles of conflicts of laws of any other jurisdiction which could cause the application of the laws of any jurisdiction other than the State of Delaware.  

(p) Headings. The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for
interpretation or construction, and shall not constitute a part, of this Agreement.  
 (q) Signature in Counterparts.
This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 

  
 5 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as set forth below. 

 

			
	GLOBAL BRASS AND COPPER HOLDINGS, INC.
		
	 By:
	 	 
	Name:	 	
	Title:	 	
	
	 
	 [insert name of Participant]

 SCHEDULE A 

Subject to the terms and conditions of the Agreement, the Participant shall be granted [1,000] Performance Shares, subject to the achievement of RONA
(as further set forth below) for the Plan Year. The number of Performance Shares that are earned by the Participant shall be based on the RONA achievement as set forth in the chart below, and such earned Performance Shares (if any) shall be settled
in Shares of Common Stock and delivered to the Participant in equal annual installments over a three year period as set forth in Section 1(a) of the Agreement. 
  

									
	 RONA achieved for

the Plan Year
	  	% of
Performance
Shares
Earned	 	 	Number of
Performance
Shares
Earned	 
	 < or = 13.2
	  	 	0	% 	 	 	0	  
	 13.3%
	  	 	10	% 	 	 	100	  
	 13.4%
	  	 	20.0	% 	 	 	200	  
	 13.5%
	  	 	30.0	% 	 	 	300	  
	 13.6%
	  	 	40.0	% 	 	 	400	  
	 13.7%
	  	 	50.0	% 	 	 	500	  
	 13.8%
	  	 	60.0	% 	 	 	600	  
	 13.9%
	  	 	70.0	% 	 	 	700	  
	 14.0%
	  	 	80.0	% 	 	 	800	  
	 14.1%
	  	 	90.0	% 	 	 	900	  
	 14.2%
	  	 	100	% 	 	 	1,000	  
	 14.3%
	  	 	115.0	% 	 	 	1,150	  
	 14.4%
	  	 	130.0	% 	 	 	1,300	  
	 14.5%
	  	 	145.0	% 	 	 	1,450	  
	 14.6%
	  	 	160.0	% 	 	 	1,600	  
	 14.7%
	  	 	175.0	% 	 	 	1,750	  
	 14.8%
	  	 	190.0	% 	 	 	1,900	  
	 14.9% or greater
	  	 	205.0	% 	 	 	2,050	  

 For the avoidance of doubt, if RONA is less than or equal to 13.2% at the end of the Plan Year, then all Performance Shares
shall be forfeited. 
 DEFINITIONS 
 “Plan
Year” means the 12 month period ending December 31, 2013. 
 “RONA” means for the Plan Year, the Company’s
return on net assets employed, as calculated by the Company’s Chief Financial Officer and approved by the Board, on the basis of the following formula: Consolidated Adjusted EBITDA less tax (at an estimated rate of 38%), divided by Adjusted Net
Asset Investment; provided that, the Board shall have the authority, in its sole discretion to adjust the Company’s return on net assets or RONA figures in the event of extraordinary or non-recurring events (subject to the Plan). The RONA
calculation is based on a trailing twelve month basis as of the end of the Plan Year. 

  
 7 

 “Consolidated Adjusted EBITDA” means EBITDA, defined as GAAP net income (loss) adjusted
to exclude interest expense, provision for (benefit from) income taxes and depreciation and amortization expense, further adjusted to exclude items which the Company do not reflect the on-going run-rate performance of the business. These adjustments
currently include (a) unrealized gains and losses on derivative contracts in support of our balanced book approach, (b) unrealized gains and losses associated with derivative contracts related to electricity and natural gas costs,
(c) non-cash gains and losses due to lower of cost or market adjustments to inventory and non-cash LIFO-based gains and losses due to the depletion of a LIFO layer of metal inventory with lower base year costs, (d) non-cash compensation
expense related to payments made to members of the Company’s management by the Company’s parent, Halkos, (e) non-cash income accretion related to the Company’s joint venture in Japan with Dowa, (f) management fees to KPS
Capital Partners, (g) restructuring and other business transformation charges,(h) certain legal expenses, and (i) other unusual and non-recurring income or expense. 

“Adjusted Net Asset Investment” means total assets less cash, less total liabilities, less long-term debt from the GAAP basis balance
sheet adjusted to: a) increase LIFO based GAAP inventory to market values based on current metal prices consistent with our borrowing base calculations; b) add the estimated net book value of fixed assets that were appraised in 2007 as part of the
sale of the business, but were not recorded as part of the opening balance sheet due to the bargain purchase price allocation; and c) adjust for unusual and\or non-recurring assets or liabilities. 

  
 8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00228-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00228-of-00352.parquet"}]]