Document:

Exhibit 10.221

 

RESACA EXPLOITATION, INC.

 

NONQUALIFIED STOCK OPTION AGREEMENT

 

 

Optionee:  Keith
Turner

 

1.             Grant of
Stock Option.  As of the Grant
Date (identified in Section 18 below), Resaca
Exploitation, Inc., a Texas corporation (the “Company”) hereby grants a Nonqualified Stock Option (the “Option”) to the Optionee (identified above), an Employee of the Company, to purchase the number of shares of
the Company’s common stock, $0.01 par value per share (the “Common Stock”), identified in Section 18
below (the “Shares”), subject to
the terms and conditions of this agreement (the “Agreement”) and the Resaca Exploitation, Inc. 2008 Stock
Incentive Plan (the “Plan”).  The Plan is hereby incorporated herein in its
entirety by reference.  The Shares, when
issued to Optionee upon the exercise of the Option, shall be fully paid and
nonassessable.  The Option is not an “incentive
stock option” as defined in Section 422 of the Internal Revenue Code.

 

2.             Definitions.  All capitalized
terms used herein shall have the meanings set forth in the Plan unless
otherwise provided herein. Section 18 sets forth meanings for
certain of the capitalized terms used in this Agreement.

 

3.             Option Term.  The Option shall commence on
the Grant Date (identified in Section 18 below) and terminate on
the eighth (8th) anniversary of the Grant Date as specified in Section 18.
The period during which the Option is in effect and may be exercised is
referred to herein as the “Option Period”.

 

4.             Option
Price. 
The Option Price per Share is identified in Section 18.

 

5.             Vesting.  The total number of Shares
subject to this Option shall vest in accordance with the Vesting Schedule (described in Section 18).  The Shares may be purchased at any time after
they become vested, in whole or in part, during the Option Period; provided,
however, the Option may only be exercisable to acquire whole Shares.  The right of exercise provided herein shall
be cumulative so that if the Option is not exercised to the maximum extent
permissible after vesting, the vested portion of the Option shall be
exercisable, in whole or in part, at any time during the Option Period.

 

6.             Method of
Exercise.  The Option is exercisable by delivery of a
written notice to the Secretary of the Company, signed by the Optionee,
specifying the number of Shares to be acquired on, and the effective date of,
such exercise.  The Optionee may withdraw
notice of exercise of this Option, in writing, at any time prior to the close
of business on the business day that immediately precedes the proposed exercise
date.

 

7.             Method of
Payment.  Subject to applicable provisions of the Plan,
the Option Price upon exercise of the Option shall be payable to the Company in
full either: (i) in cash or its equivalent; (ii) subject to prior
approval by the Committee in its discretion, by tendering previously acquired
Shares having an aggregate Fair Market Value (as defined in the Plan) at the
time of exercise equal to the total Option Price; (iii) subject to prior
approval by the Committee 

 

 

in its discretion, by withholding Shares
which otherwise would be acquired on exercise having an aggregate Fair Market
Value at the time of exercise equal to the total Option Price; or (iv) any
other permitted method pursuant to the applicable terms and conditions of the Plan.

 

As soon as practicable after receipt of a
written notification of exercise and full payment, the Company shall deliver to
or on behalf of the Optionee, in the name of the Optionee or other appropriate
recipient, Share certificates or other evidence of ownership for the number of
Shares purchased under the Option.

 

8.             Restrictions
on Exercise. 
The Option may not be exercised if the issuance of such Shares or the
method of payment of the consideration for such Shares would constitute a
violation of any applicable federal or state securities or other laws or
regulations, or any rules or regulations of any stock exchange on which
the Common Stock is listed.  In addition,
Optionee understands and agrees that the Option cannot be exercised if the
Company determines that such exercise, at the time of such exercise, will be in
violation of the Company’s insider trading policy.

 

9.             Termination
of Employment. 
Voluntary or involuntary termination of Employment shall affect
Optionee’s rights under the Option as follows:

 

(a)           Termination for Cause.  The non-vested portion of the Option shall
expire and terminate on the date of termination of Employment and shall not be
exercisable to any extent if Optionee’s Employment is terminated for Cause (as
defined in the Plan at the time of such termination of Employment).  The vested portion of the Option shall expire
on the thirty (30) day anniversary of the termination of Employment to the
extent not previously exercised by Optionee. 
In no event may the Option be exercised after the earlier of (i) the
expiration of the Option Period or (ii) the thirty (30) day anniversary of
the date of termination of Employment for Cause.

 

(b)           Voluntary Termination or
Retirement.  If Optionee’s Employment
is voluntarily terminated by Optionee or terminated for Retirement, then (i) the
non-vested portion of the Option shall immediately expire on the termination
date and (ii) the vested portion of the Option shall expire to the extent
not previously exercised before the one
(1) year anniversary of the date of such termination of
Employment.  In no event may the Option
be exercised after the earlier of (i) the expiration of the Option Period
or (ii) the one (1) year
anniversary of the date of termination of Employment due to voluntary
termination or Retirement.

 

(c)           Death or Disability.  If Optionee’s Employment is terminated due to
death or Disability (as defined in the Plan at the time of such termination),
then (i) the Option shall immediately become fully vested on the
termination of Employment date and  (ii) the
vested portion of the Option shall expire on the one (1) year anniversary
date of the termination of Employment date to the extent not previously
exercised by Optionee or, in the case of death, by the person or persons to
whom Optionee’s rights under the Option have passed by will or by the laws of
descent and distribution or, in the case of Disability, by Optionee or Optionee’s
legal representative.  In no event may
the Option be exercised 

 

2

 

by anyone on or after the
earlier of (i) the expiration of the Option Period or (ii) one (1) year
after the date of termination of Employment due to Optionee’s death or
Disability.

 

(d)           Other Involuntary Termination.  If Optionee’s Employment is terminated for
any reason other than for Cause, Retirement, death or Disability, or voluntary
termination, then (i) the Option shall immediately become fully vested on
the termination of Employment date and (ii) the vested portion of the
Option shall expire to the extent not previously exercised within one (1) year  after such termination date.  In no event may the Option be exercised by
anyone after the earlier of (i) the expiration of the Option Period or (ii) one
(1) year after the termination of Employment date even if Optionee becomes
deceased during such period.  The
termination of Employment of Optionee due to or as a result of the termination
or expiration of the Co-Employer Agreement, dated July 11, 2008, by and
between the Company and Torch Energy Advisors Incorporated shall be considered
an involuntary termination of Optionee’s Employment for purposes of this
Agreement.

 

10.          Independent
Legal and Tax Advice.  Optionee acknowledges that the Company has
advised Optionee to obtain independent legal and tax advice regarding the grant
and exercise of the Option and the disposition of any Shares acquired thereby.

 

11.          Reorganization
of Company.  The existence of the Option shall not
affect  in any way the right or power of
the Company or its shareholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in Company’s capital
structure or its business, or any merger or consolidation of the Company, or
any issue of bonds, debentures, preferred or prior preference stock ahead of or
affecting the Shares or the rights thereof, or the dissolution or liquidation
of the Company, or any sale or transfer of all or any part of its assets or
business, or any other corporate act or proceeding, whether of a similar character
or otherwise.

 

12.          Adjustment
of Shares. 
In the event of stock dividends, spin-offs of assets or other
extraordinary dividends, stock splits, combinations of shares,
recapitalizations, mergers, consolidations, reorganizations, liquidations,
issuances of rights or warrants and similar transactions or events involving
Company, appropriate adjustments shall be made to the terms and provisions of
the Option as provided in the Plan.

 

13.          No Rights
in Shares. 
Optionee shall have no rights as a shareholder in respect of the Shares
until the Optionee becomes the record holder of such Shares.

 

14.          Investment
Representation.  Optionee will enter into
such written representations, warranties and agreements as Company may
reasonably request in order to comply with any federal or state securities
law.  Moreover, any stock certificate for
any Shares issued to Optionee hereunder may contain a legend restricting their
transferability as determined by the Company in its discretion.  Optionee agrees that Company shall not be
obligated to take any affirmative action in order to cause the issuance or
transfer of Shares hereunder to comply with any law, rule or regulation
that applies to the Shares subject to the Option.

 

15.          No
Guarantee of Employment.  The Option shall not confer upon Optionee any
right to continued employment with the Company or any affiliate thereof.

 

3

 

16.          Withholding
of Taxes.  The Company shall have the right to (a) make
deductions from the number of Shares otherwise deliverable upon exercise of the
Option in an amount sufficient to satisfy withholding of any federal, state or
local taxes required by law, or (b) take such other action as may be
necessary or appropriate to satisfy any such tax withholding obligations.

 

17.          General.

 

(a)           Notices.  All notices under this Agreement shall be
mailed or delivered by hand to the parties at their respective addresses set
forth beneath their signatures below or at such other address as may be
designated in writing by either of the parties to one another, or to their
permitted transferees if applicable. 
Notices shall be effective upon receipt.

 

(b)           Shares Reserved.  The Company shall at all times during the
Option Period reserve and keep available under the Plan such number of Shares
as shall be sufficient to satisfy the requirements of this Option.

 

(c)           Transferability of Option.  The Option is transferable only to the extent
permitted under the Plan at the time of transfer (i) by will or by the
laws of descent and distribution, (ii) by a qualified domestic relations
order (as defined in Section 414(p) of the Internal Revenue Code), or
(iii) to Optionee’s Immediate Family or entities established for the
benefit of, or solely owned by, the Optionee’s Immediate Family, but only to
the extent permitted under the Plan.  No
right or benefit hereunder shall in any manner be liable for or subject to any
debts, contracts, liabilities, obligations or torts of Optionee or any
permitted transferee thereof.

 

(d)           Amendment and Termination.  No amendment, modification or termination of
this Agreement shall be made at any time without the written consent of
Optionee and Company.

 

(e)           No Guarantee of Tax Consequences.  The Company makes no commitment or guarantee
that any tax treatment will apply or be available to Optionee or any other
person.  The Optionee has been advised,
and provided with the opportunity, to obtain independent legal and tax advice
regarding the grant and exercise of the Option and the disposition of any
Shares acquired thereby.

 

(f)            Severability.  In the event that any provision of this
Agreement shall be held illegal, invalid, or unenforceable for any reason, such
provision shall be fully severable, but shall not affect the remaining
provisions of the Agreement, and the Agreement shall be construed and enforced
as if the illegal, invalid, or unenforceable provision had not been included
herein.

 

(g)           Supersedes Prior Agreements.  This Agreement shall supersede and replace
all prior agreements and understandings, oral or written, between the Company
and the Optionee regarding the grant of the Options covered hereby.

 

4

 

(h)           Governing Law.  This Agreement shall be construed in
accordance with the laws of the State of Texas, without regard to its conflict
of law provisions, to the extent federal law does not supersede and preempt
Texas law.

 

18.          Definitions
and Other Terms.  The following capitalized
terms shall have those meanings set forth opposite them:

 

	
  (a)

  	
   

  	
  Optionee:

  	
   

  	
  Keith Turner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Grant Date:

  	
   

  	
  November 16, 2009

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Shares:

  	
   

  	
  Two Hundred Thousand (200,000) Shares of the Company’s Common Stock.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  Option Price:

  	
   

  	
  46.5 pence per Share

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  Option Period:

  	
   

  	
  November 16, 2009 through November 16, 2017 (until
  5:00 p.m. CST).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (f)

  	
   

  	
  Vesting Schedule:  Options covered by this Option Agreement
  shall become vested, provided that, subject to Section 9,
  Optionee is then, and continuously from the Grant Date has been, an Employee of the Company, in accordance
  with the following schedule:

  

 

	
  Vesting Date

  	
   

  	
  Vested %

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  First Anniversary of the
  Grant Date

  	
   

  	
  33 1/3

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Second Anniversary of the
  Grant Date

  	
   

  	
  33 1/3

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Third Anniversary of the
  Grant Date

  	
   

  	
  33 1/3

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  100

  	
  %

  

 

Notwithstanding the above vesting schedule,
in the event of a “Change in Control” of the Company (as defined in the Plan at
the time of such event), the non-vested portion of the Option shall become
immediately 100% vested as of the Change in Control date.

 

[Signature page follows]

 

5

 

IN WITNESS
WHEREOF, the Company, as of the Grant Date, has caused this Agreement to be
executed on its behalf by its duly authorized officer and Optionee has hereunto
executed this Agreement as of the same date.

 

	
   

  	
  RESACA EXPLOITATION, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mary Lou Fry

  
	
   

  	
  Name:

  	
  Mary Lou Fry

  
	
   

  	
  Title: 

  	
  Vice President and General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  	
   

  
	
   

  	
  Resaca Exploitation, Inc.

  
	
   

  	
  1331 Lamar Street, Suite 1450

  
	
   

  	
  Houston, TX 77010

  
	
   

  	
  Attn: General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OPTIONEE

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ R. Keith Turner

  
	
   

  	
  KEITH TURNER

  
	
   

  	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  3302 McMahon Lane

  
	
   

  	
  Missouri City, Texas 77459

  

 

6Exhibit 10.2

 

PORTIONS OF
THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF
THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

IN CONFIDENCE

 

AMENDMENT
NO. 06 TO CONTRACT #678650

 

Whereas; British
Telecommunications plc (registered in England and Wales under Company Number:
1800000) whose registered office is 81 Newgate Street, London, EC1A 7AJ (“BT”)
and Virtusa UK Limited (registered in England under Company Number 05640127
whose registered office is 1 Callaghan Square Cardiff CF10 5BT (“the Supplier”)
entered into a Contract for the Provision of IT Services to IT dated as of 29 March 2007
No. 678650, as amended (the “Contract”);

 

Whereas; BT and
Supplier now seek to amend the Contract as further set forth herein;

 

NOW THEREFORE, for
valuable consideration, the sufficiency of which is hereby acknowledged and
confirmed by both parties hereto, the parties agree as follows:

 

1.                                       Capitalized terms used herein but not
defined herein shall have the meanings set forth in the Contract.

 

2.                                       Effective as of October 1, 2009, (a) the
rate card attached as Exhibit A hereto (the “Rate Card”) is in
effect under the Contract for those services performed on or after October 1,
2009 for BT under the Contract, and (b) such Rate Card replaces in its
entirety any other rate card issued by the Supplier to BT under the Contract,
including under any prior amendment to the Contract.  Such Rate Card is in effect commencing for
the period commencing October 1, 2009, subject to the terms on Exhibit A
and the terms herein. For the avoidance of doubt, however, the rate card agreed
to between BT and Supplier under the management consulting services agreement
whereby Supplier was appointed to be a global preferred supplier for management
consulting services to BT shall remain in effect.  All fees billed under such management
consulting services agreement are excluded from the discounts under the
Contract and hereunder.

 

3.                                       BT shall [**************] as a
[*************] partner (or [*******************] if the name changes) (“[****************]”)
within a reasonable period after the date hereof, but not later than December 1,
2009, subject only to the Supplier and BT agreeing to mutually agreeable terms
on any agreements which the Supplier and BT must execute to grant the
[**************]. The parties shall use all reasonable endeavours and good
faith efforts to negotiate and finalize the [***********] agreement.

 

4.                                       The Discount Table in Section 1.7.2 of
Schedule 6 of Appendix 1 of the Contract (as amended to by Amendment No. 3
and the Fifth Amendment to the Contract dated as of March 31, 2009 by and
between BT and the Supplier (the “Fifth Amendment”)) is hereby deleted in its
entirety and replaced, effective as of October 1, 2009, with the discount
table on Exhibit B hereto (the “Discount Table”). For the avoidance
of doubt, all examples in Section 1.7.2 of the Contract shall be
correspondingly modified by the Discount Table (and per discount levels and
numbers therein), but the manner and application of the discount remains as set
forth in the Contract, except that the Supplier shall have 80 days following
any Annual Period to calculate and pay any Annual Total Volume Discount owed to
BT.

 

5.                                       The Liquidated Damage Table in Section 1.7.2(e) of
Schedule 6 of Appendix 1 of the Contract is hereby deleted and replaced with
the Liquidated Damage Table in 

 

1

 

 

PORTIONS OF
THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF
THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

IN CONFIDENCE

 

Exhibit C hereto (“Amended Liquidated
Damages Table”) provided that any liquidated damages owing to the Supplier
under the Contract for any Annual Period shall be calculated on an annual basis
but not actually applied against BT until after the annual period ending March 31,
2013, based on the aggregate minimum commitment for the Annual Periods
commencing April 1, 2009 through the Amendment Term (“Amended Minimum
Commitment”) as set forth in Exhibit B hereto and BT’s achievement
of cumulative Eligible Annual Fees through March 31, 2013.   For
the avoidance of doubt, however, while the loss of discount provisions shall
apply per the Contract, the application of liquidated damages shall only be
applied based on the aggregate Amended Minimum Commitment as set forth in Exhibit B
hereto and BT’s achievement of cumulative Eligible Annual Fees through March 31,
2013 (although the amounts will be calculated on an annual basis).  See Exhibit C-1 for an example of
the liquidated damage calculation.

 

6.                                       In addition, the Amendment No. 3 to
the Contract by and between BT and the Supplier dated as of March 31, 2008
(“Amendment No. 3”)  is hereby
deleted in its entirety except that with respect [****************  **************  ****************************************************************************]
pursuant to the terms of Amendment No. 3 and the Contract (the “Pre-Paid
Discount Balance”), such Pre-Paid Discount Balance shall be offset and reduced
as follows:

 

i.      The Annual Total Volume Discount (as amended by this Amendment) amount
earned by BT for the Annual Period ending March 31, 2009 and still
outstanding [******************  **************  ***********]; and

 

ii.   Effective
as of October 1, 2009, BT shall earn, in addition to the Annual Total
Volume Discount set forth on Exhibit B, an additional discount of
the percent listed on Exhibit D hereto on each GBP of Eligible
Annual Fees billed by the Supplier to BT under the Contact from October 1,
2009 until the expiration of the Amendment Term (“New Business Discount”). For
the avoidance of doubt, the New Business Discount continues until the
expiration of the Amendment Term even if the [*********************] is [**********************************].

 

Notwithstanding
anything to the contrary herein, if there remains any Pre-Paid Discount Balance
not earned by BT under the terms herein, by the date of the expiration of the
Amendment Term. BT shall pay to the Supplier an amount in cash equal to the
outstanding Pre-Paid Discount Balance as of the expiration of the Amendment
Term.

 

7.                                       The term of this Amendment shall begin on October 1,
2009 (“Effective Date”) and shall continue until 31 March 2013 (the
“Amendment Term”).

 

8.                                       Except as other wise modified herein, all
terms of the Contract remain in full force and effect.

 

The parties
have executed this Amendment by their authorized signatories as of the date
first written below.

 

2

 

PORTIONS OF
THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF
THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

IN CONFIDENCE

 

	
  SIGNED for and on behalf of SUPPLIER

  Virtusa UK Limited

  	
  SIGNED for and on behalf of BT

  
	
  Signature

  	
  /s/
  Clayton Locke

  	
   

  	
  Signature

  	
  /s/
  Lisa Coles

  
	
  Name

  	
  Clayton
  Locke

  	
  Name

  	
  Lisa
  Coles

  
	
  Position
  Company

  	
  MD
  Europe

  	
  Position
  Company

  	
  CM IT
  Services & BPO Procurement

  
	
  Date

  	
  30
  October 2009

  	
  Date

  	
  30/10/09

  
					

 

3

 

PORTIONS OF
THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF
THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

IN CONFIDENCE

 

Exhibit A

 

[***]

 

4

 

PORTIONS OF
THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF
THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

IN CONFIDENCE

 

Exhibit B

 

[***]

 

5

 

PORTIONS OF
THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF
THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

IN CONFIDENCE

 

Exhibit C

 

[***]

 

6

 

PORTIONS OF
THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF
THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

IN CONFIDENCE

 

Exhibit C-1

 

[***]

 

7

 

PORTIONS OF
THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF
THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

IN CONFIDENCE

 

Exhibit D

 

[***]

 

8

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