SUPERIOR
DRILLING PRODUCTS, INC.


NonSTATUTORY
Stock Option AGREEMENT


 


(Employee,
Consultant)


 


1.
Grant of Stock Option. As of the Grant Date [[GRANTDATE]] Superior Drilling
Products, Inc., a Utah corporation (the “Company”), hereby grants a Nonstatutory Stock Option (the “Option”)
to the Optionee [[FIRSTNAME]] [[LASTNAME]] an [Employee/Consultant] of the Company, to purchase [[SHARESGRANTED]] shares
of the Company’s common stock, $0.001 par value per share (the “Stock”), subject to the terms
and conditions of this agreement (the “Agreement”) and the Superior Drilling Products, Inc. 2015 Long Term
Incentive Plan (the “Plan”) which is hereby incorporated herein in its entirety by reference and is attached
as Exhibit A. 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 specifically
provided herein. The Award Notice sets forth meanings for various capitalized terms used in this Agreement.


 


3.
Option Term. The Option shall commence on the Grant [[GRANTDATE]] and terminate on the date immediately prior to the
tenth (10th) anniversary of the Grant Date. 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 of Stock is [[GRANTPRICE]].


 


5.
Vesting. This Option may be exercised for the total number of shares Stock subject to this Option in accordance with
the Vesting Schedule as follows: 33.3% on the Grant Date, 33.3% on the first anniversary of the Grant Date and 33.4% on the second
anniversary of the Grant Date provided that the Optionee is continuously providing Services to the Company or an Affiliate through
the applicable vesting date. The Stock 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 Stock. 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 an electronic notice to a designated representative of
the Company Maxim Group LLC (“Maxim”), subject to the Maxim Broker agreement by the Optionee, specifying the number
of shares of Stock to be acquired on, and the effective date of, such exercise.


 


7.
Restrictions on Exercise. The Option may not be exercised if the issuance of such Stock or the method of payment of
the consideration for such Stock would constitute a violation of any applicable federal or state securities or other laws or regulations,
including any laws or regulations or Company policies respecting blackout periods, or any rules or regulations of any stock exchange
on which the Stock may be listed.


 




    	 	 	 



    	 



    

 


8.
Termination of Employment/Engagement. Voluntary or involuntary termination of the Optionee as an Employee/Consultant
of the Company and its Affiliates shall affect Optionee’s rights under the Option as follows:


 





	 	a.	Termination for Cause or Breach of Noncompetition or Confidentiality Agreement. The vested and non-vested portions of the Option shall expire on 12:01 a.m. (CST) on the date of termination of employment/engagement or the date of the breach, as applicable and shall not be exercisable to any extent if Optionee’s employment/engagement is terminated for Cause or the Optionee breaches a noncompetition and/or confidentiality agreement between Optionee and the Company or any of its Affiliates at any time.
	 	 	 
	 	b.	Death or Disability. If Optionee’s employment/engagement is terminated by death or Disability (as determined by the Committee at the time of such termination as a member of the Company’s Board of Directors), then the unvested portion of any Award shall be forfeited and terminated and vested portion of an Option may be exercised by the Participant or the applicable of his guardian or legal representative or estate for a period of three (3) months after the date on which the participant’s Service terminated due to Disability or one (1) Year after the date on which the Participant’s Services terminated due to death, respectively, but in any event no later than the date of expiration of the option’s term, which in no event shall exceed ten (10) years from the date of grant, as set forth in the Award Agreement evidencing such Option, except as provided in section 6.2 9a)(i) of the Long Term incentive plan for a Nonstatutory Stock Option or SAR (the “Option Expiration Date”).
	 	 	 
	 	c.	Other Involuntary Termination. If Optionee’s employment with the Company and its Affiliates is terminated by the Company for any reason other than for Cause, death or Disability, then (i) the non-vested portion of the Option shall immediately expire on the date of termination of employment and (ii) the vested portion of the Option shall expire to the extent not exercised six (6) months after the date of such termination of employment/engagement. In no event may the Option be exercised by anyone after the earlier of (i) the expiration of the Option Period or (ii) six (6) months after the date of termination.
	 	 	 
	 	d.	Other Voluntary Termination. If Optionee’s employment with the Company and its Affiliates is terminated by the Optionee for any reason other than for death or Disability, then (i) the non-vested portion of the Option shall immediately expire on the date of termination of employment and (ii) the vested portion of the Option shall expire to the extent not exercised three (3) months after the date of such termination of employment/engagement. In no event may the Option be exercised by anyone after the earlier of (i) the expiration of the Option Period or (ii) three (3) months after the date of termination.
	 	 	 
	 	e.	Change in Control. Notwithstanding the vesting provisions in this Agreement, in the event of a “Change in Control” of the Company, vesting of the Option shall be accelerated and the entire Option shall automatically become 100% vested as of the day of the Change in Control date and the Option shall otherwise be affected as provided in the Plan.




 




    	 	 	 



    	 



    

 


9.
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 Stock acquired thereby.


 


10.
No Rights in Stock. Subject to the terms of the Plan, Optionee shall have no rights as a stockholder until the Optionee
becomes the record holder of such Stock, or upon a Change in Control, with respect to the Stock.


 


11.
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 Stock
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 Stock hereunder to comply with any law, rule or regulation that applies to the Stock subject to the Option.


 


12.
No Guarantee of Employment, Engagement or Services. The Option shall not confer upon Optionee any right to continued
employment, engagement or Services with the Company or any Affiliate.


 


13.
Withholding of Taxes. The Option is subject to and the Company shall have the right to take any action as may be necessary
or appropriate to satisfy any federal, state, or local (foreign and domestic) tax and withholding obligations upon exercise of
the Option.


 


14.
General.


 


(a)
Notices. All notices under this Agreement shall be delivered electronically to the parties at their respective e-mail
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. Notices shall be effective upon receipt.


 


(b)
Nontransferability of Option. The Option granted pursuant to this Agreement is not transferable other than by will
or by the laws of descent and distribution or by a qualified domestic relations order (as defined in Section 4l4(p) of the Internal
Revenue Code). The Option will be exercisable during Optionee’s lifetime only by Optionee or by Optionee’s legal representative
in the event of Optionee’s Disability. No right or benefit hereunder shall in any manner be liable for or subject to any
debts, contracts, liabilities, obligations or torts of Optionee.


 


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


 


(d)
No Guarantee of Tax Consequences, Legal Consult. The Company and the Committee make no commitment or guarantee that
any federal or state tax treatment will apply or be available to any person eligible for benefits under the Option. The Optionee
has been advised and been provided the opportunity to obtain independent legal and tax advice regarding this Award including,
without limitation, with respect to the grant and exercise of the Option and the disposition of any Stock acquired thereby.


 


(e)
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.


 


(f)
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.


 


15.
Counterparts: This Agreement may be executed in multiple original counterparts, each of which shall be deemed an original,
but all of which together shall constitute but one and the same instrument.


 


[SIGNATURE
PAGE FOLLOWS]


 




    	 	 	 



    	 



    

 


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.


 


	 	SUPERIOR DRILLING PRODUCTS, INC.
	 	 	 
	 	By:	(Signature
    on File)
	 	Name: 	Annette
    Meier
	 	Title:	Chief
    Operating Officer


 


	 	Address
    for Notices:
	 	 
	 	[[RESADDR1]]
    [[RESADDR2]]
	 	[[RESCITY]]
    [[RESSTATEORPROV]]
	 	[[RESPOSTALCODE]]
    [[RESCOUNTRYCODE]]


 


	 	Attention:	[[FIRSTNAME]]
[[LASTNAME]]


 


	 	OPTIONEE:
	 	 
	 	[[SIGNATURE]]
	 	Signature
	 	 
	 	 
	 	[[FIRSTNAME]]
    [[LASTNAME]]





	 	Address: