Document:

ex_441870.htm

Exhibit 10.17

 

 

 

APPENDIX A

 

HALLADOR ENERGY COMPANY

2022 EXECUTIVE OFFICER PLAN

 

 

	
			The following definitions shall apply for purposes of this Hallador Energy Company 2022 Executive Officer Plan (this “2022 EO Plan”):

			“Cause” means, as determined in the Board’s discretion:

			(i)         The Covered Person’s willful and continued material failure to perform the reasonable duties and responsibilities of his or her position after the Corporation has provided the Covered Person with a written demand for performance that describes the basis for the Corporation’s belief that the Covered Person has not substantially performed his or her duties and the Covered Person has not corrected the failure within thirty (30) days of the written demand;

			(ii)         Any act of personal dishonesty taken by the Covered Person in connection with his or her responsibilities as an employee of the Corporation and intended to result in his or her substantial personal enrichment;

			(iii)         The Covered Person’s conviction of, or plea of nolo contendere to, a felony that the Board reasonably believes has had or will have a material detrimental effect on the Corporation’s reputation or business; or

			(iv)         The Covered Person’s breach of any fiduciary duty owed to the Corporation by the Covered Person that has a material detrimental effect on the Corporation’s reputation or business.

			“Change of Control” means the first to occur, following the Effective Date, of the following events:

			(i)         the acquisition by any person or group of related persons (as determined pursuant to section 13(d)(3) of the Securities Exchange Act of 1934) of beneficial ownership of securities of the Corporation representing fifty percent (50%) or more of the total number of votes that may be cast for the election of Board members; or

			(ii)         stockholder approval of (A) any agreement for a merger or consolidation in which the Corporation will not survive as an independent corporation or other entity, or (B) any sale, exchange or other disposition of all or substantially all of the Corporation’s assets, including, without limitation, the sale, exchange or other disposition of the equity securities or assets of Sunrise Coal, LLC or of Hallador Power Company, LLC.

			 

			Notwithstanding anything herein to the contrary, with respect to any amounts that constitute nonqualified deferred compensation under Code Section 409A and that would be payable in connection with a Change of Control, to the extent required to avoid accelerated or additional taxation under such section, no Change of Control will be deemed to have occurred unless such Change of Control also constitutes a change in the ownership or effective control of the Corporation or a change in the ownership of a substantial portion of the Corporation’s assets within the meaning of Code Section 409A(a)(2)(A)(v).

			“Closing” means the closing date of a transaction that results in a Change of Control, as set forth in the definitive agreement governing such transaction.

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

			“Covered Person” means each of the Corporation’s (i) Chief Executive Officer (also currently serving as the President, Corporate Secretary and Chairman of the Board of the Corporation), and (ii) the Chief Financial Officer.

			“Effective Date” means April 1, 2022, the effective date of this 2022 EO Plan.

			“Good Reason” with respect to a Covered Person, means the occurrence of one or more of the following without the Covered Person’s written consent:

			(i)         A fifteen percent (15%) or more reduction in the Covered Person’s total annual cash compensation opportunity (base salary and target bonus opportunity collectively), as compared to the Covered Person’s total annual cash compensation opportunity immediately prior to the reduction in compensation;

			(ii)         A change in the Covered Person’s principal work location resulting in a new one-way commute that is more than fifty (50) miles greater than the Covered Person’s one-way commute prior to the change in the Covered Person’s principal work location without allowing alternate accommodation (such as remote work), regardless of whether the Covered Person receives an offer of relocation benefits; or

			(iii)         (A) A material reduction in the Covered Person’s authority, duties and/or responsibilities, or (B) in connection with a proposed Change of Control, a proposed material reduction in the Covered Person’s authority, duties and/or responsibility by the acquiring company as compared to the Executive’s authority, duties and/or responsibilities in effect immediately prior to the Closing (for example, but not by way of limitation, this determination will include an analysis of whether the Covered Person will maintain at least the same level, scope and type of duties and responsibilities with respect to the management, strategy, operations and business of the combined entity resulting from such transaction, taking the Corporation, any acquirer and their respective parent corporations, subsidiaries and other affiliates, together as a whole).

			With respect to any termination for Good Reason, the Covered Person shall give the Corporation written notice, which shall identify with reasonable specificity the grounds for the Covered Person’s resignation, and provide the Corporation a period of thirty (30) days from the day such notice is given to cure the alleged grounds for termination for Good Reason contained in the notice. A termination will not be for Good Reason if such notice is given by the Covered Person to the Corporation more than ninety (90) days after the occurrence of the event that the Covered Person alleges is Good Reason for her or her termination.

			Any event or condition shall cease to constitute “Good Reason” if the Corporation cures the event or condition within the thirty (30) day cure period, or, if the Corporation fails to cure the event or condition within such thirty (30) day period, the Covered Person fails to terminate employment within ninety (90) days following the expiration of the thirty (30) day cure period.

			“Payment Date” means the date on which the Corporation pays the Retention Bonus to the Covered Persons, which shall be on the date of the Closing.

			“Release” means a general release, in the form provided by the Corporation, of any and all claims against the Corporation and all related parties with respect to all matters arising out of the Covered Person’s employment by the Corporation and its affiliates and (if applicable) the termination thereof (other than claims for any entitlements under the terms of this 2022 EO Plan or for vested benefits under any employee benefit plans or programs of the Corporation made available to employees of the Corporation and its affiliates generally under which the Covered Person has accrued and is due a benefit), subject to applicable law.

			“RSU Plan” means that certain Amended and Restated 2008 Restricted Stock Unit Plan as adopted by the Corporation in May 2017, as amended and in effect from time to time.

			“Section 280G” means Section 280G of the Code and the final regulations and any guidance promulgated thereunder.

			“Section 409A” means Section 409A of the Code and the final regulations and any guidance promulgated thereunder.

			“Section 4999” means Section 4999 of the Code and the final regulations and any guidance promulgated thereunder.

				 	
			Definitions

			Definitions

			Definitions

			

 

	
			Each of the Covered Persons, along with other employees of the Corporation as determined by the Compensation Committee of the Board, shall be eligible to participate in this 2022 EO Plan, provided that the Covered Person is employed by the Corporation on the date this 2022 EO Plan is adopted by the Board, and is not excluded from this 2022 EO Plan as provided below.

				 	
			Participation in 2022 EO Plan

			

 

	
			Each Covered Person who is employed by the Corporation (or a subsidiary) upon a Change of Control and remains employed by the Corporation through the Closing, shall receive a retention bonus under this 2022 EO Plan (the “Retention Bonus”) and, provided that the conditions for payment of any Retention Bonus set forth in this 2022 EO Plan are satisfied, one-hundred percent (100%) of the Retention Bonus, as specified with respect to the Covered Person in Schedule 1 attached hereto, shall be paid in a lump-sum payment on the Payment Date.

				 	
			Retention Bonus Eligibility and Payment Date

			

 

	
			If, prior to the date of the Closing of a Change of Control, a Covered Person (i) voluntarily terminates his or her employment, or (ii) is terminated for Cause, he or she will not receive a Retention Bonus, and any funds that would have been utilized for that Covered Person’s Retention Bonus will revert to the Corporation and will not be reallocated to any other person, including any person that is a Covered Person under this or a similar compensation plan.

				 	
			Ineligibility to Receive Retention Bonuses

			

 

	
			In the event that, following an announcement by the Corporation of a transaction that would result in a Change of Control, or upon the occurrence of a Change of Control as described in clause (ii) of the definition of Change in Control above, but prior to the Closing relating to such Change of Control, a Covered Person’s employment with the Corporation is terminated without Cause or the Covered Person terminates his or her employment with the Corporation for Good Reason, that Covered Person shall be eligible to receive the Retention Bonus that he or she would otherwise have been entitled to receive had he or she remained employed with the Corporation through the Closing; provided, however, that any Retention Bonus payable to the Covered Person shall be reduced on a dollar for dollar basis, but not below zero, by the amount paid or payable to the Covered Person upon such termination pursuant to any severance agreement between the Covered Person and the Corporation.

				
			Termination Without Cause or Termination for Good Reason

			

 

	
			This 2022 EO Plan shall provide benefits to each Covered Person and his or her respective heirs, representatives, successors, and assigns, and will be binding on all successors and assigns of the Corporation and any acquirer of the Corporation.

				 	
			Benefits to Covered Persons and Their Respective Heirs

			

 

	
			Participation in this 2022 EO Plan will not provide any guarantee or promise of employment or continued service of any Covered Person or any employee of the Corporation or its subsidiaries with the Corporation or any of its subsidiaries, and the Corporation shall retain the right, and its subsidiaries shall retain the right, to terminate the employment of any Covered Person or any other employee of the Corporation or its subsidiaries, as applicable, at any time.

				 	
			No Guarantee of Continued Service

			

 

	
			Notwithstanding anything to the contrary herein, it is a condition to a Covered Person’s entitlement to receive a Retention Bonus under this 2022 EO Plan that a Covered Person shall have executed and delivered to the Corporation a written Release and shall not revoke such Release, such that the Release becomes irrevocable by its terms on or before the date on which such compensation is due to be paid by the Corporation. If a Covered Person fails to execute and deliver a Release, or revokes the Release before it becomes irrevocable, the Covered Person shall have no right to receive any Retention Bonus hereunder.

				 	
			Release

			

 

	
			The Corporation will withhold from any payments under this 2022 EO Plan (including to a beneficiary or estate) any amount required to satisfy all applicable federal, state, local, or foreign income, employment, and other tax withholding obligations.

				 	
			Withholding

			

 

	
			It is intended that Retention Bonuses under this 2022 EO Plan meet the short-term deferral exception under Section 409A (accordingly, notwithstanding anything herein to the contrary, no payments to be made hereunder shall be made later than the fifteenth (15th) day of the third (3rd) month following the last day of the taxable year in which the Closing of a Change of Control is effectuated or otherwise in which the payment right vests) and, if not exempt, the Retention Bonuses payable pursuant to this 2022 EO Plan are intended to comply with Section 409A, to the extent the requirements of Section 409A are applicable hereto. The provisions of this 2022 EO Plan shall be construed and administered in a manner consistent with that intention.

				 	
			Section 409A

			

 

	
			If payment of any amount under this 2022 EO Plan that is subject to Section 409A at the time specified therein would subject such amount to any additional tax under Section 409A, the payment of such amount shall be postponed to the earliest commencement date on which the payment of such amount could be made without incurring such additional tax. In addition, to the extent that any guidance issued under Section 409A would result in the Covered Person being subject to the payment of interest or any additional tax under Section 409A, the Corporation shall, to the extent reasonably possible and as allowed by applicable treasury regulations, amend this 2022 EO Plan in order to avoid the imposition of any such interest or additional tax under Section 409A, which amendment shall have the minimum economic effect necessary and be reasonably determined in good faith by the Corporation.

				 	
			409A Payment Adjustments

			

 

	
			Notwithstanding the foregoing, the Corporation makes no representations that the payments and benefits provided under this 2022 EO Plan comply with Section 409A and in no event will the Corporation be liable or be required to reimburse a Covered Person for all or any portion of any taxes, penalties, interest or other expenses that may be imposed on or incurred by him or her as a result of this 2022 EO Plan being subject to, but not compliant with, Section 409A.

				 	
			No Representation Regarding 409A

			

 

	
			If a Covered Person is deemed to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B), then with regard to any payment or the provisions of any benefit that is required to be delayed pursuant to Code Section 409A(a)(2)(B)(i), such payment or benefit shall not be made or provided prior to the earlier of:

			(i)         the expiration of the six (6) month period measured from the date of the Covered Person’s “separation from service” (as such term is defined in Treasury Regulation Section 1.409A-1(h)); or

			(ii)         the date of the Covered Person’s death (the “Delay Period”);

			and all payments and benefits delayed pursuant to the foregoing (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid to the Covered Person in a lump sum within ten (10) days following the expiration of the Delay Period.

				 	
			409A Delay Payments

			

 

	
			No provision of this 2022 EO Plan will require the Corporation, for the purpose of satisfying any obligations under this 2022 EO Plan, to purchase assets or place any assets in a trust or other entity to which contributions are made or otherwise to segregate any assets, nor will the Corporation maintain separate bank accounts, books, records or other evidence of the existence of a segregated or separately maintained or administered fund for such purposes.

				 	
			No Trust Assets

			

 

	
			Nothing contained in this 2022 EO Plan and no action taken pursuant to the provisions of this 2022 EO Plan will create or be construed to create a trust of any kind.

				 	
			No Trust

			

 

	
			No property that may be acquired or invested by the Corporation in connection with this 2022 EO Plan will be deemed security for the obligations to the Covered Persons hereunder, but will be, and continue for all purposes to be, part of the general funds of the Corporation, and the Covered Persons will have no rights under this 2022 EO Plan other than as unsecured general creditors of the Corporation.

				 	
			No Property Will Constitute Security

			

 

	
			This 2022 EO Plan is intended to be a “bonus program” as defined under U.S. Department of Labor Regulation Section 2510.3-2(c) and will be construed and administered in accordance with such intention.

				 	
			Bonus Program

			

 

	
			All questions concerning the construction, validation, and interpretation of this 2022 EO Plan will be governed by the laws of the State of Colorado without regard to its conflict of laws provisions.

				 	
			Choice of Law

			

 

	
			The Corporation reserves the right to amend or terminate this 2022 EO Plan at any time; provided, however, that (i) any such amendment or termination shall be made in writing and approved by resolution of the Compensation Committee or the Board, and (ii) following the Effective Date, the Corporation may not, without a Covered Person’s written consent, amend or terminate this 2022 EO Plan in any way that (x) prevents the Covered Person from becoming eligible for his or her Retention Bonus under this 2022 EO Plan, or (y) reduces the amount of Retention Bonuses payable, or potentially payable to a Covered Person under this 2022 EO Plan.

				 	
			Amendment

			

 

	
			Under this 2022 EO Plan, effective as of April 1, 2022, the salaries (the “2022 EO Plan Annual Base Salary”) of the Covered Persons shall be as specified with respect to each such Covered Person in Schedule 1 attached hereto.

				 	
			2022 EO Plan Annual Base Salaries

			

 

	
			If a Change of Control occurs before March 31, 2024, for purposes of calculating the Retention Bonuses in Schedule 1, the 2022 EO Plan Annual Base Salaries shall be as set forth immediately above.

				 	
			Change of Control Salaries

			

 

	
			As promptly as practical after the adoption of this 2022 EO Plan, the Covered Persons shall be granted restricted stock units in accordance with the RSU Plan and pursuant to award agreements under said RSU Plan approved by the Compensation Committee as specified with respect to each such Covered Person in Schedule 1 attached hereto.

			Such restricted stock units shall vest in amounts and at times as set forth in Schedule 1 attached hereto and in accordance with the terms of the RSU Plan and applicable award agreement with respect thereto.

				 	
			2022 EO Plan Restricted Stock Units

			

 

	
			The Covered Persons shall be entitled to annual performance bonuses for each of the Corporation’s 2022 and 2023 fiscal years, in amounts as the Compensation Committee shall determine in its discretion with respect to each such Covered Person in accordance with the 2022 and 2023 Executive Officer Bonus Performance Plans (“EO Bonus Plans”) as described in Schedule 2 attached hereto, provided that such Covered Person continues in the service of the Corporation (or its subsidiary) through December 31, 2022 (with respect to the performance bonus for the 2022 fiscal year), or December 31, 2023 (with respect to the performance bonus for the 2023 fiscal year).

				 	
			2022 and 2023 EO Bonus Performance Plans

			

 

	
			Upon the closing of the acquisition of Merom Station (the “Merom Closing”) in accordance with that certain Asset Purchase Agreement dated as of February 14, 2022, by and between Hallador Power Company, LLC, a wholly-owned subsidiary of the Corporation, and Hoosier Energy Rural Electric Cooperative, Inc., the Compensation Committee shall grant additional bonuses in an aggregate amount of $500,000 (subject to all applicable withholding for income, employment and other withholding tax purposes) to be allocated, in the Compensation Committee’s sole discretion, between:

			(i)         the Covered Persons in order to compensate such Covered Persons for services performed in connection with the acquisition of Merom Station and the Closing; provided that such persons are serving as officers or employees of the Corporation or one of its subsidiaries through the date on which the Merom Closing occurs and as of the Additional Bonus Payment Date (as defined below); and

			(ii)         those executive officers and certain other employees of the Corporation or its subsidiaries other than the Covered Persons whom the Compensation Committee determines in its sole discretion shall be granted cash bonuses to compensate such persons for services performed in connection with the acquisition of Merom Station and the Merom Closing and who are employed by the Corporation or one of its subsidiaries through the date on which the Merom Closing occurs and as of the Additional Bonus Payment Date.

			One-hundred percent (100%) of the additional bonuses as described above shall be paid in lump-sum payments (subject to all applicable withholding for income, employment and other withholding tax purposes) to the Covered Persons and the other executive officers and employees receiving additional bonuses, on or before the date that is thirty (30) calendar days after the date of the Merom Closing (the “Additional Bonus Payment Date”).

				 	
			Additional Bonuses to Covered Persons and Certain Other Employees

			in Connection with Merom Station Acquisition

			
	 	 	 
	
			To the maximum extent allowed by law, the right of each of the Covered Persons to receive the Retention Bonus due pursuant to this 2022 EO Plan in the event of a Change of Control shall be subject to that Covered Person having entered into an agreement with the party that acquires the Corporation upon such Change of Control whereby that Covered Person shall agree to continue to work for the acquirer or its affiliate or the Corporation, as applicable, for a period of 3 months following the Closing of the Change of Control or such lesser period as determined by the acquirer (the “Post Change of Control Employment Period”); provided, that the foregoing shall not apply to a Covered Person unless: (a) the acquiror desires to engage that Covered Person to continue to work for the acquirer (or its affiliate or the Corporation or its affiliate); (b) the agreement between such Covered Person and the acquiror requires the acquiror to pay the Covered Person a monthly salary equivalent to or greater than the per month amount of the Covered Person’s 2022 EO Plan Annual Base Salary for each month during the Post Change of Control Employment Period; and (c) the agreement between such Covered Person and the acquiror requires the acquiror to pay such Covered Person a retention bonus equivalent to one quarter of the Covered Person’s performance bonus for the most recent completed fiscal year, which payment shall be due and payable within thirty (30) days after the end of the Post Change of Control Employment Period as long as such Covered Person continued to work for the acquirer, its affiliate or the Corporation until the last day of the Post Change of Control Employment Period or the acquirer, its affiliate or the Corporation terminates such agreement with such Covered Person prior to such date; and (d) the Covered Person having been employed by the Corporation or a subsidiary through the Closing of the Change of Control.

				 	
			Service Agreements

			

 

 

 

 

 

 

Schedule 1

 

The Covered Person’s total compensation under the 2022 EO Plan shall be as follows:

 

	
			Covered Person Title

				
			2022 EO Plan Annual Base Salary for Period April 1, 2022 through March 31, 2024

			
	
			Chief Executive Officer

				
			$615,000 per year

			
	
			Chief Financial Officer

				
			$400,000 per year

			
	 
	 	
			Retention Bonus Amount

			
	
			Chief Executive Officer

				
			An amount equal to the sum of:

			(1)  $1,230,000 in the event the acquiring company following the Closing of a Change of Control does not engage such Covered Person to continue to work for the acquirer, or $1,076,250 in the event the acquiring company does engage such Covered Person to continue to work for the acquirer pursuant to the requirements of the provisions in the 2022 EO Plan titled “Service Agreements;” plus

			(2) an amount equal to the Covered Person’s performance bonus for the prior fiscal year, pro rated for the period served in the fiscal year in which the Closing occurs through to the date of the Closing.

			
	
			Chief Financial Officer

				
			An amount equal to the sum of:

			(1)  $800,000 in the event the acquiring company following the Closing of a Change of Control does not engage such Covered Person to continue to work for the acquirer, or $700,000 in the event the acquiring company does engage such Covered Person to continue to work for the acquirer pursuant to the requirements of the provisions in the 2022 EO Plan titled “Service Agreements;” plus

			(2) an amount equal to the Covered Person’s performance bonus for the prior fiscal year, pro rated for the period served in the fiscal year in which the Closing occurs through to the date of the Closing.

			
	 	
			Restricted Stock Units

			
	
			Chief Executive Officer

				
			A one-time grant of a total of 267,537 restricted stock units, to be granted under the RSU Plan as promptly as practical after the adoption of this 2022 EO Plan, which shall vest in the amount of 89,179 restricted stock units on March 31st of each of 2023, 2024 and 2025, subject to the Covered Person’s continued Service, as defined in the RSU Plan, through the applicable vesting date, and shall vest in full subject to the Covered Person’s continued Service through to the date of a Change in Control, as defined in the RSU Plan, and otherwise in accordance with the terms of the RSU Plan and the applicable award agreement.

			
	
			Chief Financial Officer

				
			A one-time grant of a total of 173,913 restricted stock units, to be granted under the RSU Plan as promptly as practical after the adoption of this 2022 EO Plan, which shall vest in the amount of 57,971 restricted stock units on March 31st of each of 2023, 2024 and 2025, subject to the Covered Person’s continued Service through the applicable vesting date, and shall vest in full subject to the Covered Person’s continued Service through to the date of a Change in Control, and otherwise in accordance with the terms of the RSU Plan and the applicable award agreement.

			

 

 

 

 

 

Schedule 2

 

 

RESOLUTIONS OF THE COMPENSATION COMMITTEE 

 

Approval of the 2022 Hallador Energy Executive Officer Bonus Performance Plan Performance Goals

 

WHEREAS, Hallador Energy Company (the “Corporation”) desires to establish an annual Executive Officer Bonus Performance Plan (the “EO Bonus Plan”) to reward and motivate certain employees of the Corporation and certain of its subsidiaries to attain certain performance goals for fiscal years 2022 and 2023; and

 

WHEREAS, the Compensation Committee of the Board of Directors of the Corporation (the “Committee”) deems it advisable and in the best interests of the Corporation to establish terms and conditions for EO Bonus Plan awards consistent with the Corporation’s goals for the performance period of January 1, 2022 to December 31, 2022, or January 1, 2023 to December 31, 2023 (as applicable, the “Performance Period”);

 

NOW, THEREFORE, BE IT:

 

RESOLVED, that the Committee hereby approves the Bonus Plan, including the performance goals for each fiscal year as set forth in Exhibit A (the “Performance Goals”) and the Bonus Plan award opportunities for each of the key personnel identified in Exhibit A; and

 

FURTHER RESOLVED, that the Committee reserves the discretion, at any time prior to the final determination of whether the Performance Goals have been attained, to change the Performance Goals to reflect a change in corporate capitalization, such as a stock split, stock dividend, combination of shares or other changes in the Corporation’s corporate structure or shares, or a corporate transaction, such as a merger, consolidation, separation, reorganization or partial or complete liquidation, or to equitably reflect the occurrence of any extraordinary event, any change in applicable accounting rules or principles, any change in the Corporation’s method of accounting, any change in applicable law, or any other change of a similar nature.

 

General Authority

 

RESOLVED, that all such other acts or things which would cause the transactions contemplated by these resolutions to be consummated and performed be, and hereby are, authorized, approved and adopted; and

 

FURTHER RESOLVED, that each officer of the Corporation is hereby authorized to perform such further acts and execute and deliver such further documents or instruments as such officer may deem necessary or desirable to carry out with respect to the Corporation the intents and purposes of the foregoing resolutions.

 

 

 

 

Exhibit A

 

Executive Officer Bonus Performance Plan

Performance Goals and Payouts

 

Chief Executive Officer

 

The chart below sets forth the applicable goals and payouts for the Chief Executive Officer:

 

	
			Area

				
			Goals

				
			Base Points

				
			Threshold Goal 

				
			Target Goal

				
			Maximum Goal 

				
			Payout Does Not Meet Threshold

				
			Payout at Target

				
			Payout at Maximum

			
	
			Safety (Sunrise) Note 1

				
			Severity Measure (National Average)

				
			5

				
			100.00%

				
			89%

				
			78.00%

				
			$0

				
			$23,100

				
			$46,200

			
	 	
			Violations Per Inspection Day (National Average)

				
			5

				
			0.50

				
			0.42

				
			0.34

				
			$0

				
			$23,100

				
			$46,200

			
	
			Safety (Power) Note 2

				
			Incident Rate

				
			5

				
			5.40

				
			4.50

				
			3.60

				
			$0

				
			$23,100

				
			$46,200

			
	 	
			Safety Inspection Rate

				
			5

				
			1

				
			1.25

				
			1.50

				
			$0

				
			$23,100

				
			$46,200

			
	
			Financial

				
			Adjusted EBITDA ($ million)

				
			50

				
			36.0

				
			45.0

				
			54.0

				
			$0

				
			$231,000

				
			$462,000

			
	
			Discretionary

				 	
			30

				 	 	 	
			$0

				
			$138,600

				
			$277,200

			

 

 

 

 

 

 

Chief Financial Officer

 

The chart below sets forth the applicable goals and payouts for the Chief Financial Officer:

 

	
			Area

				
			Goals

				
			Base Points

				
			Threshold Goal 

				
			Target Goal

				
			Maximum Goal 

				
			Payout Does Not Meet Threshold

				
			Payout at Target

				
			Payout at Maximum

			
	
			Safety (Sunrise) Note 1

				
			Severity Measure (National Average)

				
			5

				
			100.00%

				
			89%

				
			78.00%

				
			$0

				
			$15,000

				
			$30,000

			
	 	
			Violations Per Inspection Day (National Average)

				
			5

				
			0.50

				
			0.42

				
			0.34

				
			$0

				
			$15,000

				
			$30,000

			
	
			 Safety (Power) Note 2

				
			Incident Rate

				
			5

				
			5.40

				
			4.50

				
			3.60

				
			$0

				
			$15,000

				
			$30,000

			
	 	
			Safety Inspection Rate

				
			5

				
			1

				
			1.25

				
			1.50

				
			$0

				
			$15,000

				
			$30,000

			
	
			Financial

				
			Adjusted EBITDA ($ million)

				
			50

				
			36.0

				
			45.0

				
			54.0

				
			$0

				
			$150,000

				
			$300,000

			
	
			Discretionary

				 	
			30

				 	 	 	
			$0

				
			$90,000

				
			$180,000

			

 

 

Note 1:         Safety (Sunrise) is based on Sunrise Coal’s performance percentage relative to the national average for underground coal mines over the preceding 4 years. For the 2022 Performance Period, safety will be determined relative to the 2018 – 2021 period. For the 2023 Performance Period, safety will be determined relative to the 2019 – 2022 period. Actual results for each safety measure will be calculated by Sunrise Coal management with final results available.

 

 

 

 

Note 2:         If Hallador Power Company does not complete the pending acquisition of the Merom Station power generating facility by August 1, 2022, the Safety (Power) goal will not apply for 2022 and the Safety (Power) payout amounts will be added to the Safety (Sunrise) payout amounts (i.e., $23,100 or $15,000, as applicable, additional will be added to each Safety (Sunrise) goal Payout at Target amount, with corresponding changes to Payout at Maximum amounts). If Hallador Power Company does not complete the pending acquisition of the Merom Station power generating facility by June 30, 2023, the Safety (Power) goal will not apply for 2023 and the Safety (Power) payout amounts will be added to the Safety (Sunrise) payout amounts (i.e., $23,100 or $15,000, as applicable, additional will be added to each Safety (Sunrise) goal Payout at Target amount, with corresponding changes to Payout at Maximum amounts). If applicable, Safety (Power) is based on Hallador Power’s performance percentage relative to the national average for coal-fired power generating facilities over the preceding 4 years. For the 2022 Performance Period, safety will be determined relative to the 2018 – 2021 period. For the 2023 Performance Period, safety will be determined relative to the 2019 – 2022 period. Actual results for each safety measure will be calculated by Hallador Power management with final results available.

 

 

 

 

The charts above set forth the Performance Goals for each performance measure for each of the 2022 and 2023 Performance Periods and the associated payouts for the Chief Executive Officer and Chief Financial Officer.

 

For the Chief Executive Officer, the target bonus is $462,000 for each of the 2022 and the 2023 Performance Periods. For the Chief Financial Officer, the target bonus is $300,000 for each of the 2022 and the 2023 Performance Periods. A portion of the target bonus is allocated to each performance measure in proportion to the base points allocated to the performance measure. Performance against each Performance Goal and the corresponding payout are measured separately. The attained performance against a Performance Goal shall not affect the performance bonus amount payable with respect to any other Performance Goal.

 

No payout is available with respect to a performance measure if performance is at or below the threshold level.

 

The payout for performance above the threshold level but below the target level shall be determined by straight line interpolation between zero and the target payout amount.

 

The payout for performance above the target level but below the maximum level shall be determined by straight line interpolation between the target payout amount and the maximum payout amount.

 

Performance in excess of the maximum Performance Goal does not result in a payout in excess of the maximum payout amount.

 

Performance bonus amounts, if any, will be paid in a lump sum net of applicable withholding, after audit completion, in March 2023 with respect to the 2022 Performance Period and in March 2024 with respect to the 2023 Performance Period, contingent on the Chief Executive Officer’s or Chief Financial Officer’s continued service with the Corporation or its affiliates through to December 31, 2022, with respect to the 2022 Performance Period, and through to December 31, 2023, with respect to the 2023 Performance Period.

 

 

 

 

 

Example 1 - CEO:

 

By way of example, if, for the 2022 Performance Period, Severity Measure (National Average) is 99%, the threshold Performance Goal for Violations per Inspection Day, Incident Rate and Safety Inspection Rate are not exceeded, and the adjusted EBITDA is $50.0 million, the Chief Executive Officer shall be entitled to a receive a performance bonus for the 2022 Performance Period calculated as follows:

 

Severity Measure (National Average): $23,100 * (100 - 99)/(100 - 89) = $2,100

EBITDA: $231,000 + ($231,000 * (50 - 45)/(54 - 45)) = $231,000 + $128,333.33 = $359,333.33

 

TOTAL: $361,433.33

 

Example 2 - CFO:

 

By way of example, if, for the 2022 Performance Period, Severity Measure (National Average) is 99%, the threshold Performance Goal for Violations per Inspection Day, Incident Rate and Safety Inspection Rate are not exceeded, and the adjusted EBITDA is $50.0 million, the Chief Financial Officer shall be entitled to a receive a performance bonus for the 2022 Performance Period calculated as follows:

 

Severity Measure (National Average): $15,000 * (100 - 99)/(100 - 89) = $1,363.63

EBITDA: $150,000 + ($150,000 * (50 - 45)/(54 - 45)) = $150,000 + $83,333.33 = $233,333.33

 

TOTAL: $234,696.94

 

In addition to the safety and financial performance goals described in the above chart: (i) the Chief Executive Officer may also be entitled to receive a discretionary bonus amount for each of the 2022 Performance Period and 2023 Performance Period, as determined by the Board or the compensation committee, as applicable, of up to $277,200; and (ii) the Chief Financial Officer may also be entitled to receive a discretionary bonus amount for each of the 2022 Performance Period and 2023 Performance Period, as determined by the Board or the compensation committee, as applicable, of up to $180,000.EX-10.1

 Exhibit 10.1 

STOCK PURCHASE AGREEMENT 

THIS STOCK PURCHASE AGREEMENT (this “Agreement”) is entered into as of November 10, 2022, by and among HF
Sinclair Corporation, a Delaware corporation (the “Company”), on the one hand, and REH Company (the “Selling Stockholder”), on the other hand. 

Recitals 
 WHEREAS,
the Selling Stockholder beneficially owns an aggregate of 47,472,927 shares of the Company’s outstanding common stock, par value $0.01 per share (the “Common Stock”), constituting approximately 23.65% of the outstanding
Common Stock; and 
 WHEREAS, the Selling Stockholder desires to sell to the Company, and the Company desires to repurchase from the Selling
Stockholder, an aggregate of 1,650,165 shares of Common Stock (the “Shares”) at a price of $60.60 per Share, for an aggregate price of $99,999,999 for the Shares (such aggregate purchase price, the “Purchase
Price”), upon the terms and subject to the conditions set forth in this Agreement. 
 NOW, THEREFORE, in consideration of the
mutual covenants herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned hereby agree as follows: 

Agreement 
 1.
Repurchase. 
 (a) Purchase and Sale. Upon the terms and subject to the conditions of this Agreement, the Company
hereby agrees to purchase from the Selling Stockholder, and the Selling Stockholder hereby agrees to sell, convey, assign, transfer and deliver, or cause to be delivered, to the Company, the Shares for an aggregate purchase price equal to the
Purchase Price, free and clear of any and all mortgages, pledges, encumbrances, liens, security interests, options, charges, claims, deeds of trust, deeds to secure debt, title retention agreements, rights of first refusal or offer, limitations on
voting rights, proxies, voting agreements, limitations on transfer or other agreements or claims of any kind or nature whatsoever, other than restrictions on transfer under applicable securities laws (collectively, “Liens”).

 (b) Closing. Subject to the terms and conditions of this Agreement and the delivery of the deliverables contemplated by
Section 1(c) of this Agreement, the closing of the purchase and sale of the Shares contemplated hereby (the “Closing”) will take place on or around the third business day following the date hereof,
at a time and place mutually agreed by the parties. 
 (c) Closing Deliveries and Actions. 

(i) At the Closing, the Selling Stockholder shall (A) provide an instruction letter to the Company’s transfer agent directing the
transfer agent to transfer the Shares to one or more accounts designated by the Company, sufficient to convey to the Company good, valid and marketable title in and to the Shares, free and clear of any and all Liens and (B) deliver to the
Company a properly completed and duly executed IRS Form W-9 (or other applicable IRS tax form). 

 (ii) At the Closing, the Company shall (A) deliver to the Selling Stockholder by wire
transfer to the account to be designated by the Selling Stockholder (such account to be designated by the Selling Stockholder in writing concurrently with or promptly after the execution and delivery of this Agreement) immediately available funds in
U.S. dollars in an amount equal to the Purchase Price and (B) provide an instruction letter to the Company’s transfer agent directing the transfer agent to transfer the Shares to one or more accounts designated by the Company. 

(d) Conditions of the Selling Stockholder’s Obligations at Closing. The obligation of the Selling Stockholder to sell the Shares
is subject to the fulfillment, on or before the Closing, of each of the following conditions, unless otherwise waived: 
  

	 	(i)	 The representations and warranties contained in Section 3 shall be true and correct
in all respects as of the Closing. 

  

	 	(ii)	 The Company shall have performed and complied with all covenants, agreements, obligations and conditions
contained in this Agreement that are required to be performed or complied with by the Company on or before the Closing. 

  

	 	(iii)	 There shall be no pending suit, action or proceeding by any federal, state, local or foreign court,
administrative agency or governmental or regulatory authority or body (each, an “Authority”) to which the Company or any of its properties is subject, seeking to challenge, restrain, preclude, enjoin or prohibit the
transactions contemplated by this Agreement. 

 (e) Conditions of the Company’s Obligations at Closing. The
obligation of the Company to purchase the Shares is subject to the fulfillment, on or before the Closing, of each of the following conditions, unless otherwise waived: 
  

	 	(i)	 The representations and warranties contained in Section 2 shall be true and correct
in all respects as of the Closing. 

  

	 	(ii)	 The Selling Stockholder shall have performed and complied with all covenants, agreements, obligations and
conditions contained in this Agreement that are required to be performed or complied with by the Selling Stockholder on or before the Closing. 

  

	 	(iii)	 There shall be no pending suit, action or proceeding by any Authority to which the Company or any of its
properties is subject, seeking to challenge, restrain, preclude, enjoin or prohibit the transactions contemplated by this Agreement. 

  
 2 

 (f) Withholding Rights. The Company shall be entitled to deduct and withhold from the
Purchase Price such amounts as it may be required to deduct and withhold with respect to the making of such payment under the U.S. Internal Revenue Code of 1986, as amended, or any provision of foreign, state or local tax law; provided that, so long
as the Selling Stockholder delivers a IRS Form W-9 pursuant to Section 1(c)(i) confirming the Selling Stockholder is exempt from backup withholding, the parties agree that no
deduction or withholding is required with respect to any amounts payable to the Selling Stockholder pursuant to this Agreement. To the extent that amounts are so withheld by the Company and paid over to the applicable Authority, such withheld
amounts shall be treated for all purposes of this Agreement as having been paid to the Selling Stockholder. 
 2. Representations of
the Company. The Company represents and warrants to the Selling Stockholder that, as of the date hereof and at the Closing: 
 (a)
The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. 
 (b) The
Company has the full power and authority to execute, deliver and carry out the terms and provisions of this Agreement and to consummate the transactions contemplated hereby, and has taken all necessary action to authorize the execution, delivery and
performance of this Agreement. 
 (c) This Agreement has been duly and validly authorized, executed and delivered by the Company and
constitutes a legal, valid and binding obligation of the Company, enforceable in accordance with its terms, except to the extent that (i) such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws relating to or affecting creditors’ rights generally and (ii) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to certain equitable defenses and to the discretion of the court before
which any proceedings may be brought. Inasmuch as the transactions contemplated by this Agreement would be an Interested Transaction with a Related Person as such terms are defined in the Company’s Related Party Transaction Policy, the Audit
Committee of the Company has approved this Agreement and the transactions contemplated hereby and the Company has otherwise taken all other actions necessary to approve and effect this Agreement that are necessitated as a result of this Agreement
involving an Interested Transaction. 
 (d) The execution and delivery of this Agreement and the consummation of the transactions
contemplated hereby will not conflict with, result in the breach of any of the terms or conditions of, constitute a default under or violate, accelerate or permit the acceleration of any other similar right of any other party under the Amended and
Restated Certificate of Incorporation or Amended and Restated By-Laws of the Company, any law, rule or regulation or any agreement, lease, mortgage, note, bond, indenture, license or other document or
undertaking to which the Company is a party or by which the Company or its properties may be bound, nor will such execution, delivery and consummation violate any order, writ, injunction or decree of any Authority to which the Company or any of its
properties is subject, the effect of any of which, either individually or in the aggregate, would have, or reasonably be expected to have, a material adverse effect on the consolidated financial position, stockholders’ equity or results of
operations of the Company and its subsidiaries, taken as a whole, or materially impact the Company’s ability 

  
 3 

 
to consummate the transactions contemplated by this Agreement (a “Material Adverse Effect”); and no consent, approval, authorization, order, registration or qualification
of or with any such Authority is required for the consummation by the Company of the transactions contemplated by this Agreement, except such consents, approvals, authorizations and orders as would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect. 
 (e) The Company acknowledges that it has not relied upon any express or implied
representations or warranties of any nature made by or on behalf of the Selling Stockholder, whether or not any such representations, warranties or statements were made in writing or orally, except as expressly set forth for the benefit of the
Company in this Agreement. 
 (f) No agent, broker, financial advisor, or other intermediary acting on behalf of the Company is, or will be,
entitled to, any broker’s commission, finder’s fees, or similar payment from any of the parties, or from any affiliate of any of the parties, in connection with the transactions contemplated by this Agreement. 

3. Representations of the Selling Stockholder . The Selling Stockholder represents and warrants to the Company that, as of the
date hereof and at the Closing: 
 (a) The Selling Stockholder is duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization. 
 (b) The Selling Stockholder has the full power and authority to execute, deliver and carry out the
terms and provisions of this Agreement and consummate the transactions contemplated hereby, and has taken all necessary action to authorize the execution, delivery and performance of this Agreement. 

(c) This Agreement has been duly and validly authorized, executed and delivered by the Selling Stockholder, and constitutes a legal, valid and
binding obligation of the Selling Stockholder, enforceable in accordance with its terms, except to the extent that (i) such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or
affecting creditors’ rights generally and (ii) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to certain equitable defenses and to the discretion of the court before which any
proceedings may be brought. 
 (d) The sale of the Shares to be sold by the Selling Stockholder hereunder and the execution and delivery of
this Agreement and the consummation of the transactions contemplated hereby will not conflict with, result in the breach of any of the terms or conditions of, constitute a default under or violate, accelerate or permit the acceleration of any other
similar right of any other party under the governing organizational documents of the Selling Stockholder, any law, rule or regulation, or any agreement, lease, mortgage, note, bond, indenture, license or other document or undertaking, to which the
Selling Stockholder is a party or by which the Selling Stockholder or its properties may be bound, nor will such execution, delivery and consummation violate any order, writ, injunction or decree of any Authority to which the Selling Stockholder or
any of its properties is subject, the effect of any of which, either individually or in the aggregate, would affect the validity of the Shares to be sold by the Selling Stockholder or reasonably be expected to materially impact the Selling
Stockholder’s ability to perform its obligations under 

  
 4 

 
this Agreement; and no consent, approval, authorization, order, registration or qualification of or with any such Authority is required for the performance by the Selling Stockholder of its
obligations under this Agreement and the consummation by the Selling Stockholder of the transactions contemplated by this Agreement in connection with the Shares to be sold by the Selling Stockholder hereunder, except such consents, approvals,
authorizations and orders as would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the Selling Stockholder’s ability to consummate the transactions contemplated by this Agreement. 

(e) The transfer of Shares made by the Selling Stockholder at the Closing will be valid and binding obligations of the Selling Stockholder,
enforceable in accordance with their respective terms, except to the extent that (i) such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting creditors’ rights
generally and (ii) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to certain equitable defenses and to the discretion of the court before which any proceedings may be brought, and will vest
in the Company good, valid and marketable title to all Shares purchased by the Company, free and clear of any and all Liens. 
 (f) The
Selling Stockholder (either alone or together with its advisors) has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the sale of the Shares and it has made an independent
decision to sell the Shares to the Company based on the Selling Stockholder’s knowledge about the Company and its business and other information available to the Selling Stockholder. The Selling Stockholder has received all of the information
concerning the business and financial condition of the Company that the Selling Stockholder considers necessary or appropriate for making an informed decision whether to enter into, execute and deliver this Agreement and perform the obligations set
forth herein. The Selling Stockholder hereby represents and warrants that it has had an opportunity to ask questions and receive answers from the Company as the Selling Stockholder has requested. The Selling Stockholder acknowledges that it has not
relied upon any express or implied representations or warranties of any nature made by or on behalf of the Company, whether or not any such representations, warranties or statements were made in writing or orally, except as expressly set forth for
the benefit of the Selling Stockholder in this Agreement. The Selling Stockholder acknowledges that the Company and its affiliates, officers and directors may possess material non-public information not known
to such Seller regarding or relating to the Company, including information concerning the business, financial condition, results of operations or prospects of the Company. The Selling Stockholder has carefully reviewed the Company’s filings
with U.S. Securities and Exchange Commission, and hereby confirms that the Selling Stockholder is relying on no other information, whether delivered by the Company or any other person, in making its decision to sell the Shares. 

(g) With respect to legal, tax, accounting, financial and other considerations involved in the transactions contemplated by this Agreement,
including the sale of the Shares, the Selling Stockholder is not relying on the Company (or any agent or representative thereof). The Selling Stockholder has carefully considered and, to the extent it believes such discussion is necessary, discussed
with professional legal, tax, accounting, financial and other advisors the suitability of the transactions contemplated by this Agreement, including the sale of the Shares. 

  
 5 

 (h) No agent, broker, financial advisor, or other intermediary acting on behalf of the
Selling Stockholder is, or will be, entitled to, any broker’s commission, finder’s fees, or similar payment from any of the parties, or from any affiliate of any of the parties, in connection with the transactions contemplated by this
Agreement. 
 4. Stock Transfer or Similar Taxes. The Selling Stockholder shall be responsible for the payment of any stock
transfer or similar taxes in connection with the transaction contemplated by this Agreement. 
 5. Publicity. Prior to the six-month anniversary of the Closing, the Selling Stockholder agrees that it shall not, and that it shall cause its affiliates and representatives not to, publish, release or file any press release or other public
statement or announcement relating to the transactions contemplated by this Agreement without prior written consent of the Company; provided, however, that nothing in this Section 5 shall restrict the ability
of the Selling Stockholder (i) to file a Form 4 or an amendment to its Schedule 13D, in each case relating to the transactions contemplated by this Agreement, without further review or consent from the Company, (ii) to take any other
action required by law, or (iii) to make any public statement or announcement if the Company has publicly disclosed the transactions contemplated hereby, including, without limitation, in any document filed or furnished to the Securities and
Exchange Commission (the “SEC”) in accordance with the Securities Exchange Act of 1934, as amended, or the rules and regulations of the SEC promulgated thereunder; provided, further, that the Selling Stockholder
and its affiliates and representatives shall provide the Company and its counsel a meaningful opportunity to review and comment on any such press release or other public statement or announcement relating to the transactions contemplated by this
Agreement. 
 6. Notices. All notices, requests, claims, demands or other communications to be given or delivered under or by
reason of the provisions of this Agreement will be in writing and will be deemed to have been given when delivered personally, mailed by certified or registered mail (return receipt requested and postage prepaid), sent via a nationally recognized
overnight courier, or sent via email (receipt of which is confirmed) to the recipient. Such notices, demands and other communications shall be sent as follows: 

If to the Selling Stockholder: 

REH Company 
 550 East South
Temple 
 Salt Lake City, Utah 84102 

Attention: General Counsel 

Email: [________] 
 If to the
Company: 
 HF Sinclair Corp. 

2828 N. Harwood, Suite 1300 

Dallas, Texas 75201 
 Attention:
Chief Executive Officer 
 Email: [________] 

  
 6 

 with a copy (which shall not constitute notice): 

HF Sinclair Corp. 
 2828 N.
Harwood, Suite 1300 
 Dallas, Texas 75201 

Attention: General Counsel 

Email: [________] 
 or such other address or to
the attention of such other person as the recipient party shall have specified by prior written notice to the sending party. 
  

	 	7.	 Miscellaneous. 

(a) Survival of Representations and Warranties. All representations and warranties contained herein or made in writing by any party in
connection herewith shall survive the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby until the expiration of the applicable statute of limitations. 

(b) Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement is held to be invalid, illegal, or unenforceable in any respect under any applicable law or rule in any jurisdiction, the remainder of the terms, provisions, covenants and restrictions of
this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 
 (c) Complete
Agreement. This Agreement supersedes all prior agreements and understandings (whether written or oral) between the Company and the Selling Stockholder with respect to the subject matter hereof. 

(d) Counterparts. This Agreement may be executed by any one or more of the parties hereto in counterparts, each of which shall be
deemed to be an original, but all such counterparts shall together constitute one and the same instrument. This Agreement, and any and all agreements and instruments executed and delivered in accordance herewith, to the extent signed and delivered
by means of facsimile or other electronic format or signature (including email, “pdf,” “tif,” “jpg,” DocuSign and Adobe Sign), shall be treated in all manner and respects and for all purposes as an original signature
and an original agreement or instrument and shall be considered to have the same legal effect, validity and enforceability as if it were the original signed version thereof delivered in person. 

(e) Further Assurances. Subject to the other terms of this Agreement, the parties hereto agree to execute and deliver such other
instruments and perform such acts, in addition to the matters herein specified, as may be reasonably appropriate or necessary, from time to time, to effectuate the transactions contemplated by this Agreement. 

(f) Successors and Assigns. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned, in
whole or in part, by either party without the prior written consent of the other party. Except as otherwise provided herein, this Agreement shall bind and inure to the benefit of and be enforceable by the Selling Stockholder and the Company and
their respective successors and assigns. 

  
 7 

 (g) No Third Party Beneficiaries or Other Rights. This Agreement is for the sole
benefit of the parties and their successors and permitted assigns and nothing herein express or implied shall give or shall be construed to confer any legal or equitable rights or remedies to any person other than the parties to this Agreement and
such successors and permitted assigns. 
 (h) Governing Law. THIS AGREEMENT AND ANY MATTERS RELATED TO THIS TRANSACTION SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF. The Company and the Selling Stockholder each agrees that any suit or proceeding arising in respect of this
Agreement will be tried exclusively in the Delaware Court of Chancery in and for New Castle County, but in the event that such court does not have subject matter jurisdiction, the United States District Court for the District of Delaware, and
the Company and the Selling Stockholder each agrees to submit to the jurisdiction of, and to venue in, such courts. 
 (i) Waiver of Jury
Trial. The Company and the Selling Stockholder each hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby. 
 (j) Mutuality of Drafting. The parties have participated jointly in the negotiation and drafting
of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as jointly drafted by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provision of the Agreement. 
 (k) Remedies. Each of the parties hereto agree and acknowledge that
money damages may not be an adequate remedy for any breach of the provisions of this Agreement and that any party may in its sole discretion apply to any court of law or equity of competent jurisdiction (without posting any bond or deposit) for
specific performance or other injunctive relief in order to enforce, or prevent any violations of, the provisions of this Agreement. 
 (l)
Amendment and Waiver. No modification of or amendment to this Agreement shall be effective unless in a writing signed by the parties to this Agreement, and no waiver of any rights under this Agreement shall be effective unless in a writing
signed by the waiving party. 
 (m) Expenses. Each of the Company and the Selling Stockholder shall bear its own costs and expenses
in connection with the drafting, negotiation, execution and delivery of this Agreement and the consummation of the transactions contemplated hereby. 

[Signatures appear on the following page.] 
  

  
 8 

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

			
	COMPANY:
	
	HF SINCLAIR CORPORATION
		
	By:	 	 /s/ Michael C. Jennings

	Name:	 	Michael C. Jennings
	Title:	 	Chief Executive Officer
	
	SELLING STOCKHOLDER:
	
	REH COMPANY
		
	By:	 	 /s/ Ross B. Matthews

	Name:	 	Ross B. Matthews
	Title:	 	Chief Operating Officer

 [Signature Page to Stock Purchase Agreement]

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