Document:

Exhibit 10.3

 

AMENDED AND RESTATED
 INVESTMENT TECHNOLOGY GROUP, INC.
 DIRECTORS’ RETAINER FEE SUBPLAN

 

SECTION 1.                            Introduction.

 

This Amended and Restated Investment Technology Group, Inc. Directors’ Retainer Fee Subplan (the “Subplan”) was originally implemented by Investment Technology Group, Inc. (the “Company”) under the Investment Technology Group, Inc. Amended and Restated 1994 Stock Option and Long-term Incentive Plan and was merged with and into the Investment Technology Group, Inc. 2007 Omnibus Equity Compensation Plan (the “2007 Plan”) effective as of May 8, 2007, and is now amended and restated as set forth herein, effective February 7, 2008 (the “Effective Date”).  Effective as of May 8, 2007, the Subplan continued in effect according to the terms set forth herein as a subplan under the 2007 Plan.  The purpose of the Subplan is to provide non-employee directors with an election to receive payment of their annual retainer fees in the form of shares of Company Stock or cash or to defer payment of their annual retainer fees in the form of Deferred Share Units.  The Subplan is intended to encourage qualified individuals to accept nominations as directors of the Company and to strengthen the mutuality of interest between the nonemployee directors and the Company’s other stockholders.  The Subplan is amended and restated herein, effective for deferrals made from annual retainer fees earned for periods on or after the Effective Date.  Deferrals made from annual retainer fees earned prior to the Effective Date shall be governed by the Subplan as in effect prior to this amendment and restatement.

 

SECTION 2.                            Definitions.

 

Capitalized terms used in the Subplan but not defined herein shall have the same meanings as defined in the 2007 Plan.  In addition to such terms and the terms defined in Section 1 hereof, the following terms used in the Subplan shall have the meaning set forth below.

 

(a)                                 “Deferred Share Unit” means a fully vested Stock Unit entitling the holder to receive one share of Company Stock per Stock Unit in accordance with the terms of the Subplan.

 

(b)                                 “Director” means a member of the Board who is not, and has not been during the preceding three months, (i) an employee of the Company or any parent or subsidiary of the Company or (ii) a consultant who has received, during the preceding 12-month period, payments in excess of $150,000 from the Company and its subsidiaries for consulting services.

 

(c)                                  “Subplan Benefits” means the benefits described in Sections 5 and 6 hereof.

 

 

SECTION 3.                            Administration.

 

The Subplan shall be administered by the Committee.  The Committee shall have full authority to construe and interpret the Subplan, and any action of the Committee with respect to the Subplan shall be final, conclusive, and binding on all persons.

 

SECTION 4.                            Cash or Stock Election.

 

Each Director may elect to receive his or her annual retainer fee in the form of cash or fully vested shares of Company Stock.  In addition, each Director may elect to defer receipt of his or her annual retainer fee in the form of Deferred Share Units as provided in Section 5 below.  If a Director elects to receive his or her annual retainer fee in the form of vested shares of Company Stock, the shares will be distributed on the date the annual retainer fee is otherwise payable in accordance with the Company’s regular retainer fee payment practices, and the amount of Company Stock distributed shall be the number of shares of Company Stock having an aggregate Fair Market Value on the payment date equal to the amount of the Director’s annual retainer fee that is otherwise payable on that date.  Fractional shares will be rounded up to the nearest whole share.  A Director’s election to receive his or her annual retainer fee in the form of cash or vested shares of Company Stock shall continue in effect until the Director notifies the Company in writing, in a manner consistent with Section 5 below, that the Director wishes to prospectively change his or her election.  If a Director fails to make any election under the Subplan, the Director’s annual retainer fee shall be paid in cash.

 

SECTION 5.                            Deferred Share Unit Accounts.

 

The Company shall maintain a Deferred Share Unit account (an “Account”) for each Director who has elected to defer his or her annual retainer.  Deferred Share Units will be credited to each such Account as follows:

 

(a)                                 Each Director may make an irrevocable election on or before December 31 by written notice to the Company, to defer payment of all of the compensation otherwise payable as his or her annual retainer fee for service as a Director for the following calendar year.  Notwithstanding the foregoing, a Director may make such an election within 30 days after first becoming eligible to participate in the Subplan, with respect to compensation payable after the effective date of the election.  All compensation which a Director elects to defer pursuant to this Section 5(a) shall be credited in the form of Deferred Share Units to the Director’s Account.  The number of Deferred Share Units so credited will be equal to the number of shares of Company Stock having an aggregate Fair Market Value (on the date the compensation would otherwise have been paid) equal to the amount by which the Director’s compensation was reduced pursuant to the deferral election.  Deferrals of compensation hereunder shall continue until the Director notifies the Company in writing that the Director wishes his or her compensation for the following calendar year, and succeeding periods to be paid on a current basis either in the form of cash or Company Stock.

 

(b)                                 As of each date on which a cash dividend is paid on Company Stock:

 

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(i)             there shall be credited to each Account that number of Deferred Share Units (including fractional units) determined by (i) multiplying the amount of such dividend (per share) by the number of Deferred Share Units credited to such Account prior to May 19, 2015; and (ii) dividing the total so determined by the Fair Market Value of a share of Company Stock on the date of payment of such cash dividend.  The additions to a Director’s Account pursuant to this Section 5(b) shall continue until the Director’s Subplan Benefit is fully paid in accordance with Section 6 below.

 

(ii)          a Director shall receive a cash amount determined by multiplying the amount of such dividend (per share) by the number of Deferred Share Units credited to a Director’s Account on or after May 19, 2015.

 

SECTION 6.                            Subplan Benefits.

 

(a)                                 Form.  The Subplan Benefit of a Director shall consist of shares of Company Stock equal in number to the Deferred Share Units in the Director’s Account.  Any fractional Deferred Share Units shall be rounded up to the nearest whole Deferred Share Unit.

 

(b)                                 Distribution.

 

(i)             The Subplan Benefit of a Director shall be distributed within 30 days after the date of termination of the Director’s service on the Board.

 

(ii)          In the case of the death of a Director, the Director’s Subplan Benefit shall be distributed within 60 days after the date of the Director’s death to the Director’s estate as beneficiary, unless the Director has requested a different distribution by written notice to the Committee.

 

SECTION 7.                            General.

 

(a)                                 Nontransferabilily.  Except as provided in Section 6(b)(ii), no payment of any Subplan Benefit of a Director shall be anticipated, assigned, attached, garnished, optioned, transferred or made subject to any creditor’s process, whether voluntarily or involuntarily or by operation of law.  Any act in violation of this subsection shall be void.

 

(b)                                 Compliance with Legal and Trading Requirements.  The Subplan shall be subject to all applicable laws, rules and regulations, including, but not limited to, federal and state laws, rules and regulations, and to such approvals by any regulatory or governmental agency as may be required.

 

(c)                                  Amendment.  The Committee may amend, alter, suspend, discontinue, or terminate the Subplan without the consent of stockholders of the Company or individual Directors, except that any such action will be subject to the approval of the Company’s 

 

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stockholders at the next annual meeting of the stockholders having a record date after the date such action was taken if such stockholder approval is required by any federal or state law or regulation or the rules of any automated quotation system or securities exchange on which the Company Stock may be quoted or listed, or if the Committee determines in its discretion to seek such stockholder approval; provided, however, that, without the consent of an affected Director, no amendment, alteration, suspension, discontinuation, or termination of the Subplan may impair or, in any other manner, adversely affect the rights of such Director to accrued Subplan Benefits hereunder.

 

(d)                                 Unfunded Status of Awards.  The Subplan (other than Section 4 hereof) is intended to constitute an “unfunded” plan of deferred compensation.  With respect to any payments not yet made to a Director, nothing contained in the Subplan shall give any such Director any rights that are greater than those of a general creditor of the Company; provided, however, that the Company may authorize the creation of trusts or make other arrangements to meet the Company’s obligations under the Subplan to deliver cash, or other property pursuant to any award, which trusts or other arrangements shall be consistent with the “unfunded” status of the Subplan unless the Company otherwise determines with the consent of each affected Director.

 

(e)                                  Nonexclusivity of the Subplan.  The adoption of the Subplan shall not be construed as creating any limitations on the power of the Board or the Committee to adopt such other compensation arrangements as it may deem desirable, including, without limitation, the granting of Options and other awards otherwise than under the Subplan, and such arrangements may be either applicable generally or only in specific cases.

 

(f)                                   Adjustments.  The adjustment provisions in Section 5(d) of the 2007 Plan are incorporated herein by reference and shall apply in the case of Company Stock and Deferred Share Units granted hereunder.

 

(g)                                  No Right to Remain on the Board.  Neither the Subplan nor the crediting of Deferred Share Units under the Subplan shall be deemed to give any individual a right to remain a director of the Company or create any obligation on the part of the Board to nominate any Director for reelection by the stockholders of the Company.

 

(h)                                 Section 409A .  It is intended that this Subplan and awards issued hereunder will comply with Section 409A of the Code (and any regulations and guidelines issued thereunder) to the extent the awards are subject thereto, and this Subplan and such awards shall be interpreted on a basis consistent with such intent.  All payments to be made upon a termination of service under this Subplan may only be made upon a “separation from service” under Section 409A of the Code.  In no event shall a Director, directly or indirectly, designate the calendar year of payment.  This Subplan and any award agreements issued thereunder may be amended in any respect deemed by the Committee to be necessary in order to preserve compliance with Section 409A of the Code.

 

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(i)                                     Governing Law.  The validity, construction, and effect of the Subplan shall be determined in accordance with the laws of the State of Delaware without giving effect to principles of conflict of laws.

 

(j)                                    Titles and Headings.  The titles and headings of the Sections in the Subplan are for convenience of reference only.  In the event of any conflict, the text of the Subplan, rather than such titles or headings, shall control.

 

(k)                                 Effective Date.  This Subplan, as amended and restated herein shall become effective as of the Effective Date.

 

	
Amended and restated by   the Committee effective:
    	
 
    	
May 8, 2007
    
	
Amended and restated by the Committee effective:
    	
 
    	
February 7, 2008
    
	
Amended and restated by the Committee effective:
    	
 
    	
May 19, 2015
    

 

5ren-ex101_177.htm

Exhibit 10.1

AMENDMENT NO. 2
TO THE
RESOLUTE ENERGY CORPORATION 2009 PERFORMANCE INCENTIVE PLAN 

The Resolute Energy Corporation 2009 Performance Incentive Plan (the “Plan”) is hereby amended (the “Amendment”) as set forth below, such Amendment to be effective upon approval by the Company’s stockholders:

 

1.Section 4.2 is hereby deleted and replaced with the following:

 

“4.2Share Limit.  The maximum number of shares of Common Stock that may be delivered pursuant to awards granted to Eligible Persons under this Plan is 12,257,744 (the “Share Limit”) (which shall represent the sum of the 2,657,744 shares originally authorized under the Plan, plus the additional 6,500,000 shares under Amendment No. 1 to the Plan approved by the Board on April 15, 2011, and the shareholders on June 2, 2011, plus the additional 3,100,000 shares under Amendment No. 2 to the Plan approved by the Board on April 29, 2015, and by the shareholders on June 8, 2015).  The foregoing numerical limit is subject to adjustment as contemplated by Section 4.3, Section 7.1 and Section 8.10.”

 

2.Section 4.3 is hereby deleted and replaced with the following:

 

“4.3Awards Settled in Cash, Reissue of Awards and Shares.  To the extent that an award is settled in cash or a form other than shares of Common Stock, the shares that would have been delivered had there been no such cash or other settlements shall not be counted against the shares available for issuance under this Plan.  Shares that are subject to or underlie awards which expire or for any reason are cancelled or terminated, are forfeited, fail to vest, or for any other reason are not paid or delivered under this Plan shall again be available for subsequent awards under this Plan.  Notwithstanding the foregoing, (i) upon exercise of an SAR, the number of shares of stock underlying the exercised portion of the SAR shall count against the share limit of Section 4.2, regardless of the actual number of shares of stock that are issued upon settlement of the exercised SAR, and (ii) if the exercise price of stock options or the tax withholding obligations related to any awards under the Plan are satisfied by tendering shares of stock to the Company (by either actual delivery or attestation) or by withholding shares of stock otherwise deliverable under an award, the number of shares of stock that would otherwise be delivered under the award without reduction for shares withheld or tendered shall be counted against the share limit of Section 4.2.   The foregoing adjustments to the share limit of this Plan are subject to any applicable limitations under Section 162(m) of the Code with respect to awards intended as performance-based compensation thereunder.”

3.Section 5.2.2 is hereby deleted and replaced with the following:

 

“5.2.2Performance Goals.  The specific performance goals for Performance‐Based Awards (other than Qualifying Options and Qualifying SARs) shall be, on a relative or absolute basis, established based on such business criteria as selected by the Administrator in its sole discretion (“Business Criteria”) from the following: (1) total shareholder return; (2) net revenues; (3) return on total stockholders’ equity; (4) earnings per share of our common stock; (5) net income (before or after taxes); (6) return on assets; (7) return on investment; (8) return on capital; (9) economic value added; (10) operating budget or margin; (11) contribution margin; (12) earnings from continuing operations; (13) levels of expense, cost or liability; (14) earnings before all or any interest, taxes, depreciation, amortization and/or exploration expense (EBIT, EBITA, EBITDA or EBITDAX); (15) debt reduction; (16) reserve growth; (17) reserve replacement; (18) production growth; (19) lease operating expense (total or per Boe); (20) captured prospects; (21) operated prospects matured to drill ready; (22) drilling programs commenced; (23) drillable prospects, capabilities and critical path items established; (24) third-party capital sourcing; (25) captured net risked resource potential; (26) acquisition cost efficiency; (27) stock price; (28) acquisitions of oil and gas interests; (29) increases in proved, probable or possible reserves or resource potential; (30) finding and development costs; (31) overhead costs; (32) general and administration expense (total or per Boe); (33) cash flow or free cash flow; (34) any combination of, or a specified increase or decrease of, one or more of the foregoing over a specified period; (35) such other criteria as the stockholders of the Company may approve; in each case as applicable, as determined in accordance with generally accepted accounting principles; and (36) any combination of the foregoing.  To qualify awards as performance‐based under Section 162(m), the 

 

 

applicable Business Criterion (or Business Criteria, as the case may be) and specific performance goal or goals (“targets”) must be established and approved by the Administrator during the first 90 days of the performance period (and, in the case of performance periods of less than one year, in no event after 25% or more of the performance period has elapsed) and while performance relating to such target(s) remains substantially uncertain within the meaning of Section 162(m) of the Code. Performance targets shall be adjusted to mitigate the unbudgeted impact of material, unusual or nonrecurring gains and losses, accounting changes or other extraordinary events not foreseen at the time the targets were set unless the Administrator provides otherwise at the time of establishing the targets; provided that the Administrator may not make any adjustment to the extent it would adversely affect the qualification of any compensation payable under such performance targets as “performance‐based compensation” under Section 162(m) of Code. The applicable performance measurement period may not be less than 3 months nor more than 10 years.”

4.Section 5.2.6 is hereby deleted and replaced with the following:

 

“5.2.6Expiration of Grant Authority.  As required pursuant to Section 162(m) of the Code and the regulations promulgated thereunder, the Administrator’s authority to grant new awards that are intended to qualify as performance-based compensation within the meaning of Section 162(m) of the Code (other than Qualifying Options and Qualifying SARs) shall terminate upon the first meeting of the Corporation’s stockholders that occurs in the fifth year following the year in which the Corporation’s stockholders last approved the Plan.”

 

5.A new Section 5.2.7 is hereby added and shall read as follows:

 

“5.2.7Compensation Limitations.  The maximum aggregate number of shares of Common Stock that may be issued to any Eligible Person from June 8, 2015 through the remaining term of this Plan pursuant to Qualifying Options and Qualifying SARs may not exceed 3,000,000 shares of Common Stock.  The maximum aggregate number of shares of Common Stock that may be issued to any Eligible Person pursuant to Performance-Based Awards granted during the period set forth in Section 5.2.6 (other than cash awards granted pursuant to Section 5.1.6 and Qualifying Options and Qualifying SARs) may not exceed 2,500,000 shares of Common Stock.  The maximum amount that may be paid to any Eligible Person pursuant to Performance Based Awards granted pursuant to Section 5.1.6 during the period set forth in Section 5.2.6 shall not exceed $20,000,000.” 

 

6.A new Section 6.7 is hereby added and shall read as follows:

 

“6.7Minimum Vesting Schedule.  Except as otherwise set forth herein, a vesting period of at least one (1) year shall apply to all awards issued under the Plan; provided, however, that up to 5% of the shares of Common Stock reserved for issuance under the Plan as of the June 8, 2015 may be issued pursuant to awards that do not comply with such minimum one (1) year vesting period.”

 

7.Section 7.2 shall be renamed “Acceleration of Non-Continuing Awards.”

 

	
8.
	
Capitalized terms as used in this Amendment and not otherwise defined in this Amendment shall have the meanings assigned to them in the Plan.  The Plan shall otherwise be unchanged by this Amendment.  This Amendment will be governed by and construed in accordance with the laws of the State of Delaware.

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