Document:

Exhibit
10.1

 

AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

 

THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”), effective as of April 1, 2020 (the “Effective
Date”), by and between BOXLIGHT, INC., a corporation formed in the state of Washington (the “Company”
or the “Employer”); and Daniel Leis, an individual (hereinafter sometimes referred to as the
“Employee”).

 

W
I T N E S S E T H:

 

WHEREAS,
the Employer entered into an employment agreement with the Employee on September 1, 2018 (the “Prior Employment Agreement”);

 

WHEREAS,
the Employee and Employer desire to amend and restate the Prior Employment Agreement; and

 

WHEREAS,
this Agreement supersedes in its entirety the terms of the Prior Employment Agreement; and

 

NOW,
THEREFORE, in consideration of the mutual promises and covenants herein contained, the parties hereto agree as follows:

 

1.
Employment. Subject to the provisions of Section 7, the Employer agrees to employ Employee, and Employee agrees
to accept such employment, upon the terms and subject to the conditions set forth herein.

 

2.
Duties. 

 

2.1
Position. Employee will be employed as the Senior Vice President of Global Sales and Marketing of the Employer. The
Employee shall report to the CEO of the Company and shall have the duties and responsibilities assigned by the CEO of the Company
that may be assigned from time to time. The Employee shall perform faithfully and diligently all duties and responsibilities to
be performed and assigned to him. 

 

2.2
Performance. Within the time parameters discussed in this paragraph below, Employee will expend Employee’s commercially
diligent efforts on behalf of the Employer and will abide by all policies and decisions made by the Employer, as well as all applicable
federal, state and local laws, regulations or ordinances. Employee will act in the best interest of the Employer at all times.
Employee shall provide Employee’s full time business and professional time and efforts to the performance of Employee’s
duties and responsibilities for the Employer. 

 

2.3
Location. Employee will be located in Scottsdale, Arizona. At Employer’s expense, Employee will engage in
such traveling as may be required for the performance of his duties and responsibilities on behalf of the Employer.

 

3.
Duration of Employment; Termination. 

 

3.1
Term. The employment relationship pursuant to this Agreement shall be for a term commencing on and as of the Effective
Date and continuing for the period ending December 31, 2021 (the “Term”), unless sooner terminated in
accordance with Section 7 below. The parties hereto may by mutual consent extend the Term beyond December 31, 2021. Subject
at all times to Section 3.2 below, such Term, as the same may be extended by the Company and the Employee is herein, sometimes
referred to as the “Term”.

 

    	 	1	 

     

    

 

3.2
Severance. If Employer terminates Employee’s employment for any reason other than “Good Cause”,
the provisions of Section 3.5 (Unilateral Termination) shall apply. If Employee terminates his employment for “Good
Reason” (as defined in Section 3.4 below) during the Term, the provisions of Section 3.5 (Unilateral Termination)
shall apply. The Severance Payment shall be paid to the Employee in twelve (12) consecutive monthly installments.

 

The
term Good Cause shall mean Employee’s:

 

(a)
indictment for a felony (other than DUI or other traffic violations); provided, that, if such indictment is lifted or Employee
is found innocent after trial, if then mutually deemed reasonable, the Employee may be reinstated with the Company;

 

(b)
conviction of, a guilty plea with respect to, or a plea of nolo contendere to a crime involving moral turpitude, fraud, theft,
embezzlement, any other crime that results in or is intended to result in personal enrichment at the expense of the Company or
any other summary offense that will, in the good faith opinion of the Company, adversely affect in any material respect the Company’s
prospects or reputation or Employee’s ability to perform his obligations or duties to the Company; or

 

(c)
willfully and continually failing to substantially perform his reasonably assigned duties with the Company (other than a failure
resulting from Employee’s incapacity due to disability);

 

(d)
engaging in conduct which is demonstrably and materially injurious to the Company, including engaging in competitive activities
or misappropriating a business opportunity otherwise available to the Company;

 

(e)
willfully or repeatedly engaging in misconduct or gross negligence in the performance of his duties to the Company that has a
material detrimental effect on the Company; or

 

(f)
committing or cooperating in an act of fraud, theft, or dishonesty against the Company or any act or omission constituting misappropriation
of a corporate opportunity intended to result in the material personal enrichment of Employee in violation of his duty of loyalty
to the Company at the expense, directly or indirectly, of the Company.

 

3.3
Termination by Employer. The parties hereto acknowledge and agree that this Agreement, and the employment of the
Employee with the Employer, may be terminated at any time by the Employer, either (a) for any reason or no reason, in the Employer’s
sole discretion (a “Unilateral Termination”) or (b) for Good Cause, immediately upon delivery by the
Company of written notice of termination to the Employee; provided, that, if a “Good Cause” event set forth in Sections
3.2(c), Section 3.2(d) or Section 3.2(e) of this Agreement shall occur, Employee shall have a reasonable period of time, not to
exceed thirty (30) days, to make any reasonable objection to, and challenge such claim of a Good Cause event has occurred. In
the event of a Unilateral Termination by the Employer, the provisions of Section 3.5 of this Agreement shall be implemented.

 

3.4
Termination by Employee. The parties hereto acknowledge and agree that this Agreement, and the employment of the Employee
with the Employer, may be terminated at any time by the Employee, either (a) for any reason or no reason, in the Employee’s
sole discretion or (b) for Good Reason. The Employee may resign or otherwise terminate this Agreement upon thirty (30) days prior
written notice to the Company as used in this Agreement the term “Good Reason” shall mean and be limited
to:

 

(a)
the Employer’s failure to pay the Employee his Base Salary and any Commission or other benefits provided herein; or

 

(b)
without the Employee’s consent, a material change in Employee’s Location, as defined in Section 2.3; or

 

(c)
without the Employee’s consent, a material change in the nature of the Employee’s duties.

 

    	 	2	 

     

    

 

3.5 Unilateral
Termination. In the event that the Employer shall effect a Unilateral Termination, then and in such event, as sole
and exclusive liquidated damages, the Employee shall be entitled to receive an amount equal to the total of (a) twelve (12)
months of Base Salary, (b) all Commissions Employee has earned calculated to the date of such Unilateral Termination, (c) all
vested stock options granted and earned by Employee, plus any Options that were granted prior to this Agreement, but not yet
vested, will be deemed to be vested upon a Unilateral Termination. Furthermore, upon any such Unilateral Termination, or if
Employee terminates for Good Reason, all non-competition and indemnity provisions (from Employee to Employer or its
Affiliates) will be deemed null and void. For the avoidance of doubt, the provisions of Sections 11, 12 and 13 of this
Agreement shall continue to survive such Unilateral Termination and neither Employer nor Employee shall thereafter disparage
the other.

 

3.6
Agreement to Supersede Prior Agreements. The parties acknowledge that this Agreement shall supersede any and all existing
and/or prior agreements or arrangements (written or oral) relating to the employment or contracting of services by and between
the Employee and the Company.

 

4.
Compensation. During the Term of this Agreement, the Employer shall pay to Employee: 

 

(a)
a base salary at the annual rate of One Hundred and Twenty One Thousand ($121,000) Dollars per year as compensation for
Employee’s performance of Employee’s duties hereunder (the “Base Salary”); which Base
Salary shall be made payable in accordance with the normal payroll practices of the Employer, less required deductions for
state and federal withholding tax, social security and all other employment taxes and payroll deductions; and

 

(b)
an additional commission, calculated as a percentage of total global gross profit, determined by dividing the Employee’s
commission target of One Hundred Twenty Nine Thousand ($129,000) Dollars by the annual total global gross profit target (the “Commission”).
For the year 2020, the global gross profit target will be $11,560,000 and the corresponding commission rate will be 1.12%. After
the global gross profit target is achieved, the commission rate shall double for all gross profit that is in excess of gross profit
target. For the term of this Agreement, the Employee’s commission target shall remain $129,000; however, the gross profit
target and commission rate will reset each calendar year. The Commission shall be payable by the Company to Employee on a monthly
basis in accordance with company policies.

 

5.
Fringe Benefits. Employee will be eligible for all customary and usual fringe benefits generally available to other
employees of the Employer as are described in the employee handbook of the Company and which may be changed at the Company’s
discretion from time to time. Employee shall be entitled to five (5) weeks paid vacation per calendar year without deduction of
compensation, with the time slot for such vacation in any one or more calendar year to be agreed upon by the CEO of the Employer.
The Employer reserves the right to change or eliminate in its sole discretion fringe benefits on a prospective basis, at any time,
as long as Employer does so for all employees similarly situated to Employee. Notwithstanding any language in this paragraph,
Company shall provide Employee during Employee’s employment with a health insurance plan with the cost of all premiums to
be paid by Employer.

 

6.
Business Expenses. Employee shall be reimbursed by the Employer for any actual out of pocket business expenses incurred
by Employee in connection with Employee’s services on behalf of the Employer in accordance with the Employer’s customary
policies and procedures. Employee will adhere to travel policies and expense submissions. Employer will also provide a cell phone
allowance of $100 per month. The Employer reserves the right to change such policies and procedures on a prospective basis, at
any time, effective upon reasonable notice to Employee. 

 

7.
Company Policies.   The Employee shall at all times abide by the Employer’s policies, rules and standards.
In addition, the Employee shall sign an acknowledgment that he understands the Company’s rules of conduct which are included in
the Company Handbook.

 

    	 	3	 

     

    

 

8.
Stock Options. From time to time, as approved by the Company’s board of directors, Employee shall be entitled
to receive options to purchase shares of voting Class A Common Stock of Boxlight.

 

9.
No Violation of Rights of Third Parties. Employee represents and warrants to the Employer that, to the best of Employee’s
knowledge, Employee is not currently a party, and will not become a party, to any other agreement that is in conflict with, or
will prevent Employee from complying with this Agreement. Employee further represents and warrants to the Employer that, to the
best of Employee’s knowledge, Employee’s performance of all of the terms of this Agreement as an employee of the Employer
does not breach any other agreement or violate any duty which Employee may have to any other person or entity (such as a present
or former employer), including obligations concerning providing services (whether or not competitive) to others, confidentiality
of proprietary information and assignment of inventions, ideas, patents or copyrights, and Employee agrees that he will not do
anything in the performance of services hereunder that would violate any such duty.

 

10.
Other Covenants. Employee hereby makes the following covenants, each of which Employee acknowledges and agrees are
a material part of this Agreement: 

 

10.1 During
Employee’s employment, Employee will not (a) breach any agreement to keep in confidence any confidential or proprietary
information, knowledge or data acquired by Employee prior to Employee’s employment with Employer, or (b) disclose to
the Employer, or use or induce the Employer to use, any confidential or proprietary information or material belonging to any
previous employer or any other third party. Employee acknowledges that the Employer has specifically instructed Employee not
to breach any such agreement or make any such disclosures to the Employer.

 

10.2 During
the Term of Employee’s employment with the Employer and after the termination thereof, Employee and Employer shall
refrain from making any disparaging statements or remarks regarding or towards one another, including and extending to any
subsidiaries and/or affiliate entities of the Employer, its products, services, agents or employees.

 

10.3
During the Employee’s employment with the Employer, Employee will cooperate with and assist Employer in its defense
or prosecution of any disputes, differences, grievances, claims, charges, or complaints between any Employer and any third party,
which arise, which assistance will include testifying at the Employer’s request in connection with any such matter or performing
any other task reasonably requested by Employer in connection therewith.

 

11.
Confidential Information. 

 

(a)
The term “Confidential Information” and “Trade Secrets” is used herein in
its legal sense and means any information in the possession of the Employer, which is kept or intended to be kept as a secret
from others and the secrecy of which provides a measurable commercial benefit to Employer or any of its subsidiaries and/or affiliate
entities. Employee agrees to keep strictly confidential, and to use solely for purposes of performing Employee’s employment-related
duties, any intellectual property or Confidential Information and Trade Secrets disclosed to Employee by Employer or any of its
subsidiaries and/or affiliate entities or its customers and suppliers in the course of Employee’s employment. For the purposes
of this agreement, Confidential Information shall include, without limitation: all of the Employer’s business plans, strategies,
corporate policies, financial information, operation of technical information, marketing information, customer lists and preferences,
current or anticipated customer requirements, price lists, marketing studies, sales analyses, product plans, supplier information,
employee information, organizational structure, employee lists, information regarding labor relations, employee remuneration and
any other confidential information concerning the business and affairs of Employer, any of its subsidiaries and/or affiliate entities
or its customers and suppliers, including information which, though technically not trade secrets, the unauthorized dissemination
or knowledge of which might prove prejudicial to the business interests of Employer or any of its subsidiaries and/or affiliate
entities. Employee understands that both the Confidential Information and intellectual property are proprietary rights that the
Employer or any of its subsidiaries and/or affiliate entities is entitled to protect, and accordingly, Employee agrees not to
disclose such information either during or subsequent to Employee’s employment without the prior written consent of the
Employer, or to make use of such information for Employee’s personal benefit, or for the benefit of any other person, firm,
corporation or entity. In addition, if requested at any time, Employee shall execute a separate Employee Confidentiality Agreement
in the form prescribed by the Employer as a condition of Employee’s continued employment.

 

    	 	4	 

     

    

 

(b)
Notwithstanding Section 11(a) above, Employee will not be required to maintain as confidential any Confidential Information
or Trade Secrets that (i) becomes generally available to the public other than as a result of a disclosure by the Employee or
any of their Affiliates; or (ii) is required to be disclosed pursuant to the terms of a valid subpoena or order by any Governmental
Authority or under any Law or other legal requirement, including applicable federal and state securities laws; and provided, further,
that the Employee may disclose Confidential Information (iii) to their counsel, accountants and agents on a need-to-know basis
(provided that any such person shall be informed of the confidential nature of such information and directed not to disclose or
make public such Confidential Information or Trade Secrets) and (iv) in any action, suit or proceeding between the parties. In
the event that the Employee or any of their Affiliates are requested or required to disclose any Confidential Information or Trade
Secrets pursuant to the preceding clause (ii), the Employee shall provide Employer with prompt written notice of the request or
requirement so that Employer may, at the Employer’s cost, seek a protective order or other appropriate remedy and/or waive
compliance with the provisions of this Section 11.1(b). Employer and Employee shall treat the terms and conditions of this
Agreement as Confidential Information.

 

12.
Non-Solicitation. Employee acknowledges that in the course of Employee’s employment with the Employer, Employee
will serve as a member of the Employer’s management and may become familiar with Employer’s Trade Secrets and with
other confidential and proprietary information and that Employee’s services will be of special, unique and extraordinary
value to Employer. Therefore, in consideration of the foregoing, Employee agrees that, during the Term of this Agreement and for
a period of twenty-four (24) months following the Term, Employee shall not: 

 

(a)
solicit individuals who are employees of Employer to be employees of any other business, other than through general advertising
not specifically targeted to Employer or any of its subsidiaries and/or affiliate entities;

 

(b)
directly or indirectly induce or attempt to induce any employee of Employer to leave the employment of Employer, or in any way
interfere with the relationship between Employer and any employee thereof; or

 

(c)
induce or attempt to induce any customer, supplier, licensee or other business relation of Employer, to cease doing business with,
or modify its business relationship with, Employer, or in any way interfere with or hinder the relationship between any such customer,
supplier, licensee or business relation and Employer.

 

13.
Rights to Intellectual Property. Employee acknowledges and agrees that any and all trademarks, copyrights, letters
patent, patent applications, and other intellectual property rights and design, software, firmware and related documentation,
and works of authorship, that are created by Employee during the period of Employee’s employment and arise from Employee’s
employment duties with the Employer, shall belong to the Employer. There shall be no obligation on the Employer or any of its
direct or indirect licensees to designate Employee as author of any such design, software, form ware or related documentation
when distributed, publicly or otherwise, nor to make any distribution. Employee hereby waives and releases all of Employee’s
rights to the foregoing. 

 

14.
General Provisions.

 

14.1
  Successors and Assigns. The rights and obligations of Employer under this Agreement shall
inure to the benefit of and shall be binding upon the successors and assigns of Employer. Employee shall not be entitled to assign
any of Employee’s rights or obligations under this Agreement. 

 

14.2
  Waiver. Either party’s failure to enforce any provision of this Agreement shall not
in any way be construed as a waiver of any such provision or prevent that party thereafter from enforcing each and every other
provision of this Agreement. 

 

    	 	5	 

     

    

 

14.3
  Severability. In the event any provision of this Agreement is found to be unenforceable
by a court of competent jurisdiction, such provision shall be deemed modified to the extent necessary to allow enforceability
of the provision as so limited, it being intended that the parties shall receive the benefit contemplated herein to the fullest
extent permitted by law. If a deemed modification is not satisfactory in the judgment of such court, the unenforceable provision
shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not be affected thereby. 

 

14.4
  Interpretation; Construction. The headings set forth in this Agreement are for convenience
only and shall not be used in interpreting this Agreement. This Agreement has been drafted by legal counsel representing Employer,
but Employee has participated in the negotiation of its terms. Furthermore, Employee acknowledges that Employee has had an opportunity
to review and revise the Agreement and have it reviewed by legal counsel, if desired, and, therefore, the normal rule of construction
to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of
this Agreement. 

 

14.5
  Dispute Resolution. In the event of any dispute or claim relating to or arising out
of the employment relationship described herein, Employee and Employer agree that (i) any and all disputes between Employee and
Employer shall be fully and finally resolved by binding arbitration in accordance with the then binding procedures of the American
Arbitration Association located in the state of Washington, (ii) the Employee hereby waives any and all rights to a jury trial
but the award of the arbitrators may be enforced in any federal or state court referred to in Section 15.7 below, (iii) the arbitration
shall provide for adequate discovery, and (v) the losing party shall pay all but the first $125 of the arbitration fees. 

 

14.6
  Governing Law; Forum. This Agreement will be governed by and construed in accordance with
the laws of the state of Washington. Each party consents to the jurisdiction and venue of the courts in the state of Washington,
if applicable, in any action, suit, or proceeding arising out of or relating to this Agreement, and agrees that the courts in
the state of Washington shall have exclusive jurisdiction over any dispute arising between the parties related to this Agreement
or Employee’s employment with the Employer. 

 

14.7
  Notices. Any notice required or permitted by this Agreement shall be in writing and shall
be delivered as follows with notice deemed given as indicated: (a) by personal delivery when delivered personally; (b) by overnight
courier upon written verification of receipt; (c) by telecopy or facsimile transmission upon acknowledgment of receipt of electronic
transmission; or (d) by certified or registered mail, return receipt requested, upon verification of receipt. Notice shall be
sent to the addresses set forth under the signatures below, or such other address as either party may specify in writing. 

 

14.8
  Survival. Section 3 (“Duration of Employment”), Section 9 (“Other
Covenants”), Section 10 (“Confidentiality Information”), Section 11 (“Non-Solicitation”),
Section 12 (“Rights to Intellectual Property”), Section 13 (“Injunctive Relief”),
Section 14 (“General Provisions”), and Section 15 (“Entire Agreement”) of
this Agreement shall survive termination of Employee’s employment with the Employer. 

 

15
Entire Agreement. This Agreement constitutes the entire agreement between the parties relating to this subject matter
and supersedes all prior or simultaneous representations, discussions, negotiations, and agreements, whether written or oral.
This Agreement may be amended or modified only with the written consent of Employee and the Employer. No oral waiver, amendment
or modification will be effective under any circumstances whatsoever. 

 

[signature
page follows] 

 

    	 	6	 

     

    

 

IN
WITNESS WHEREOF, THE PARTIES TO THIS EMPLOYMENT AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND
EVERY PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS EMPLOYMENTAGREEMENT ON THE FIRST DATE WRITTEN ABOVE.

 

	 	EMPLOYEE
	 	 
	 	/s/
    Daniel Leis
	 	Daniel
    Leis
	 	 
	 	COMPANY
	 	BOXLIGHT,
    INC.
	 	 
	 	/s/
    Michael Pope
	 	Michael
    Pope, CEO

 

    	 	7Exhibit 10.1

 

PROPETRO SERVICES, INC.

AMENDED AND RESTATED EXECUTIVE SEVERANCE
PLAN 

 

1.                 
Purpose. ProPetro Services, Inc. (the “Company”), has adopted the ProPetro Services,
Inc. Amended and Restated Executive Severance Plan (the “Plan”) to provide severance pay to Eligible
Executives (as defined below) who experience a Qualifying Termination (as defined below) on or after April 10, 2020 (the “Effective
Date”). The Plan is intended to be maintained primarily for the purposes of providing benefits for a select group
of management or highly compensated employees and is intended to be a top hat welfare benefit plan under ERISA.

 

2.                 
Definitions. For purposes of the Plan, the following terms shall have the respective meanings set forth below:

 

(a)              
“Accrued Amounts” means (i) all accrued and unpaid Base Salary through the Date of Termination
and all paid time off accrued but unused as of the Date of Termination, which shall be paid within seven business days following
the Date of Termination (or earlier if required by applicable law); (ii) reimbursement for all incurred but unreimbursed expenses
for which an Eligible Executive is entitled to reimbursement in accordance with the expense reimbursement policies of the Company
in effect as of the Date of Termination; and (iii) benefits to which an Eligible Executive may be entitled pursuant to the terms
of any plan or policy sponsored by the Company or any of its Affiliates as in effect from time to time.

 

(b)              
“Affiliate” means with respect to any person, any other person that directly or indirectly through
one or more intermediaries controls, is controlled by or is under common control with, the person in question. As used herein,
the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management
and policies of a person, whether through ownership of voting securities, by contract or otherwise.

 

(c)              
“Applicable March 15” means March 15 of the calendar year following the calendar year in which
the Date of Termination occurs.

 

(d)              
“Applicable Severance Multiple” means (i) with respect to each Tier 1 Executive, 2.0; (ii) with
respect to each Tier 2 Executive, 1.5; and (iii) with respect to each Tier 3 Executive, 1.0.

 

(e)              
“Applicable CIC Severance Multiple” (i) with respect to each Tier 1 Executive, 3.0; (ii) with
respect to each Tier 2 Executive, 2.0; and (iii) with respect to each Tier 3 Executive, 1.5.

 

(f)               
 “Base Salary” means the amount an Eligible Executive is entitled to receive as base salary on
an annualized basis, calculated as of the Date of Termination, including any amounts that an Eligible Executive could have received
in cash had he not elected to contribute to an employee benefit plan maintained by the Company, but excluding all annual cash incentive
awards, bonuses, equity awards, and incentive compensation payable by the Company as consideration for an Eligible Executive’s
services.

 

(g)             
“Board” means the Board of Directors of ProPetro Holding Corp.

 

     

     

    

 

(h)             
“Cause” means (i) an Eligible Executive’s material breach of the Plan or any written agreement
between such Eligible Executive and any member of the Company Group, including such Eligible Executive’s material breach
of any representation, warranty, or covenant made under any such agreement; (ii) an Eligible Executive’s material breach
of any policy or code of conduct established by any member of the Company Group and applicable to such Eligible Executive; (iii)
an Eligible Executive’s violation of any law applicable to the workplace (including any law regarding anti-harassment, anti-discrimination,
or anti-retaliation); (iv) an Eligible Executive’s gross negligence, material misconduct reflecting negatively on the Company,
breach of fiduciary duty, fraud, theft, or embezzlement; (v) the conviction by a court of competent jurisdiction of an Eligible
Executive for, or plea of nolo contendere by an Eligible Executive to, any felony (or state law equivalent) or any crime
involving moral turpitude; (vi) an Eligible Executive’s material failure or refusal, other than due to Disability, to perform
such Eligible Executive’s duties or to follow any lawful directive from the Board or an officer of the Company, as determined
by the Committee; (vii) an Eligible Executive’s unlawful use (including being under the influence) or possession of illegal
drugs on the Company’s premises or while performing Employee’s duties and responsibilities hereunder; (viii) failure
of an Eligible Executive, in connection with his or her work on behalf of the Company Group, to exercise that degree of care, skill,
and diligence as employees of ordinary skill and knowledge commonly possess and exercise; or (ix) the failure of an Eligible Executive
to act with undivided loyalty on behalf of the Company Group. For items (i), (vi) and (viii) above, such item will not be considered
a breach unless the Company provides an Eligible Executive written notice of the existence of such condition(s) within 30 days
after the Committee becomes aware of such condition(s) and the condition(s) specified in such notice are not corrected for 15 days
following such Eligible Executive’s receipt of such written notice; provided, however, that an Eligible Executive
shall not be provided with an opportunity to correct such condition(s) if the Committee determines, in its sole and absolute discretion,
that such condition(s) cannot be corrected.

 

(i)               
“Change in Control” has the meaning assigned to such term in the Incentive Plan, as in effect
from time to time.

 

(j)               
“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

 

(k)              
“COBRA Continuation Period” means the period beginning on the first day of the first calendar
month following such Eligible Executive’s Date of Termination and continuing until the earliest to occur of: (i)(a) 18 months
following the Date of Termination for a Tier 1 Executive and (b) 12 months following the Date of Termination for a Tier 2 Executive
and a Tier 3 Executive; (ii) the time such Eligible Executive becomes eligible to be covered under a group health plan sponsored
by another employer (and such Eligible Executive shall promptly notify the Company in the event that such Eligible Executive becomes
so eligible) and (iii) the date such Eligible Executive is no longer eligible to receive COBRA continuation coverage.

 

(l)               
“Code” means the Internal Revenue Code of 1986.

 

(m)            
“Committee” means the Compensation Committee of the Board or such other committee designated by
the Board to administer the Plan.

 

    2

     

    

 

(n)             
“Company Group” means ProPetro Holding Corp., the Company, and each of their respective direct
and indirect subsidiaries as may exist from time to time.

 

(o)             
“Date of Termination” means the effective date of the termination of an Eligible Executive’s
employment with the Company and its Affiliates, as applicable, such that the Eligible Executive is no longer employed by the Company
or any of its Affiliates.

 

(p)             
“Disability” means an Eligible Executive is unable to perform the essential functions of such
Eligible Executive’s position (after accounting for reasonable accommodation, if applicable and required by applicable law),
due to physical or mental impairment or other incapacity that continues, or can reasonably be expected to continue, for a period
in excess of 120 consecutive days or 180 days, whether or not consecutive (or for any longer period as may be required by applicable
law), in any 12-month period.  The determination of whether an Eligible Executive has incurred a Disability shall be made
in good faith by the Board.

 

(q)             
“Eligible Executive” means any employee of the Company or an Affiliate of the Company who (i)
is designated by the Committee as an “Eligible Executive” who is eligible to participate in the Plan; (ii) has executed
and returned a Participation Agreement to the Company; (iii) is not covered under any other severance plan, policy, program
or arrangement sponsored or maintained by the Company or any of its Affiliates; and (iv) is not a party to an employment or severance
agreement with the Company or any of its Affiliates pursuant to which such employee is eligible for severance payments or benefits.
The Committee shall have the sole discretion to determine whether an employee is an Eligible Executive. Eligible Executives shall
be limited to a select group of management or highly compensated employees within the meaning of Sections 201, 301 and 401 of ERISA.

 

(r)               
“ERISA” means the Employee Retirement Income Security Act of 1974.

 

(s)               “Good
Reason” means (i) a material diminution in an Eligible Executive’s Base Salary or authority, duties, and
responsibilities with the Company or its subsidiaries, including his or her removal as an officer of the Company; provided,
however, that if the Eligible Executive is serving as an officer or member of the board of directors (or similar
governing body) of any member of the Company Group, in no event shall the removal of the Eligible Executive as an officer or
board member of such member of the Company Group, other than the Company, regardless of the reason for such removal,
constitute Good Reason; provided, further, that a reduction in an Eligible Executive’s Base Salary in connection
with a general reduction in base salaries that affects all similarly situated employees of the Company in substantially the
same proportions will not constitute Good Reason; provided, further, that a temporary reduction in an Eligible
Executive’s authority, duties, and responsibilities in connection with any internal investigation by the Company,
including an investigation into whether circumstances constituting Cause exist, shall not constitute Good Reason; (ii) a
material breach by the Company of any of its obligations under the Plan; or (iii) the relocation of the geographic location
of an Eligible Executive’s principal place of employment by more than 50 miles from the location of such Eligible
Executive’s principal place of employment as of the Effective Date. Notwithstanding the foregoing clauses (i), (ii) and
(iii), any assertion by an Eligible Executive of a termination for Good Reason shall not be effective unless all of the
following conditions are satisfied: (A) the condition described in clauses (i), (ii) or (iii) giving rise to such
Eligible Executive’s termination of employment must have arisen without such Eligible Executive’s consent; (B)
such Eligible Executive must provide written notice to the Committee of the existence of such condition(s) within 30 days
after the initial occurrence of such condition(s); (C) the condition(s) specified in such notice must remain uncorrected
for 30 days following the Committee’s receipt of such written notice; and (D) the date of such Eligible
Executive’s termination of employment must occur within 75 days after the initial occurrence of the condition(s)
specified in such notice.

 

    3

     

    

 

(t)              
“Incentive Plan” means the ProPetro Holding Corp. 2017 Incentive Award Plan.

 

(u)             
“Participation Agreement” means the participation agreement delivered to each Eligible Executive
by the Committee prior to his or her entry into the Plan evidencing the Eligible Executive’s agreement to participate in
the Plan and to comply with all terms, conditions and restrictions within the Plan.

 

(v)             
 “Prior Year Annual Bonus” means the amount of the annual cash bonus, if any, that an Eligible
Executive earned for the fiscal year of the Company immediately preceding the year in which the Date of Termination occurs.

 

(w)            
“Pro-Rata Annual Bonus” means an amount equal to an Eligible Executive’s Target Annual Bonus
multiplied by a fraction, the numerator of which is the number of days in such fiscal year during which such Eligible Executive
was employed by the Company and its Affiliates, and the denominator of which is 365; provided, however, the calculation
of the Pro-Rata Annual Bonus shall not take into account any temporary reduction in such Eligible Executive’s annualized
base salary in connection with a general reduction in base salaries that affects all similarly situated employees of the Company
in substantially the same proportions, as determined by the Committee in its sole discretion.

 

(x)              
“Qualifying Termination” means the termination of an Eligible Executive’s employment (i)
by the Company without Cause (which, for the avoidance of doubt, does not include a termination of employment due to death or Disability)
or (ii) due to an Eligible Executive’s resignation for Good Reason.

 

(y)              
“Release Consideration Period” means the period of 21 days or 45 days, as applicable, following
the date the Company provides the Eligible Executive with a general release of claims before the Eligible Executive must execute
such release of claims to fulfill the Release Requirement.

 

(z)               “Release
Requirement” means the requirement that an Eligible Executive execute and deliver to the Company a general
release of claims, in a form acceptable to the Company, on or prior to the date that is 21 days following the date upon which
the Company delivers the release to an Eligible Executive (which shall occur no later than seven days following the Date of
Termination) or, in the event that such termination of employment is “in connection with an exit incentive or other
employment termination program” (as such phrase is defined in the Age Discrimination in Employment Act of 1967), the
date that is 45 days following such delivery date. Notwithstanding the foregoing or any other provision in the Plan to the
contrary, the Release Requirement shall not be considered satisfied if the release described in the preceding sentence is
revoked by the Eligible Executive within any time provided by the Company for such revocation.

 

    4

     

    

 

(aa)           
“Section 409A” means Section 409A of the Code and the U.S. Department of Treasury regulations
and other interpretive guidance issued thereunder.

 

(bb)          
“Severance Amount” means, with respect to an Eligible Executive, an amount equal to the product
of (i) the Applicable Severance Multiple or, in the event of a Qualifying Termination that occurs within the 12-month period following
a Change of Control, the Applicable CIC Severance Multiple and (ii) the sum of such Eligible Executive’s (A) Base Salary
and (B) Target Annual Bonus; provided, however, that for purposes of calculating the Severance Amount, neither the Base
Salary nor the Target Annual Bonus shall take into account any temporary reduction in such Eligible Executive’s annualized
base salary in connection with a general reduction in base salaries that affects all similarly situated employees of the Company
in substantially the same proportions, as determined by the Committee in its sole discretion.

 

(cc)           
“Target Annual Bonus” means the target amount of an Eligible Executive’s annual cash bonus
immediately prior to the Date of Termination, unless such Date of Termination occurs during the 12 months following a Change in
Control, in which case the Target Annual Bonus shall equal the target amount of an Eligible Executive’s annual cash bonus
immediately prior to the Change in Control.

 

(dd)          
“Tier” means an “Executive Tier” used for purposes of determining the level of severance
benefits an Eligible Executive is eligible to receive. Each Eligible Executive shall be designated by the Committee as a Tier 1
Executive, Tier 2 Executive or a Tier 3 Executive.

 

3.                 
Administration of the Plan.

 

(a)              
Administration by the Committee. The Committee shall be responsible for the management and control of the operation
and the administration of the Plan, including interpretation of the Plan, decisions pertaining to eligibility to participate in
the Plan, computation of severance payments, granting or denial of severance claims and review of claims denials. The Committee
has absolute discretion in the exercise of its powers and responsibilities. For this purpose, the Committee’s powers shall
include the following authority, in addition to all other powers provided by the Plan:

 

(i)                
to make and enforce such rules and regulations as it deems necessary or proper for the efficient administration of the Plan;

 

(ii)               
to interpret the Plan, the Committee’s interpretation thereof to be final and conclusive on all persons claiming payments
under the Plan;

 

(iii)              
to decide all questions concerning the Plan and the eligibility of any person to participate in the Plan;

 

(iv)             
to make a determination as to the right of any person to a payment under the Plan (including to determine whether and when
there has been a termination of an Eligible Executive’s employment and the cause of such termination);

 

    5

     

    

 

(v)              
to appoint such agents, counsel, accountants, consultants, claims administrator and other persons as may be required to
assist in administering the Plan;

 

(vi)            
to allocate and delegate its responsibilities under the Plan and to designate other persons to carry out any of its responsibilities
under the Plan, any such allocation, delegation or designation to be in writing;

 

(vii)            
to sue or cause suit to be brought in the name of the Plan; and

 

(viii)       
     to obtain from the Company, its Affiliates and from Eligible Executives such information as is necessary for the proper
administration of the Plan.

 

(b)              
Indemnification of the Committee. The Company shall, without limiting any rights that the Committee may have under
the Company’s charter or bylaws, applicable law or otherwise, indemnify and hold harmless the Committee and each member thereof
(and any other individual acting on behalf of the Committee or any member thereof) against any and all expenses and liabilities
arising out of such person’s administrative functions or fiduciary responsibilities, excepting only expenses and liabilities
arising out of the person’s own gross negligence or willful misconduct. Expenses against which such person shall be indemnified
hereunder include the amounts of any settlement, judgment, attorneys’ fees, costs of court, and any other related charges
reasonably incurred in connection with a claim, proceeding, settlement, or other action under the Plan.

 

(c)              
Compensation and Expenses. The Committee shall not receive additional compensation with respect to services for the
Plan. To the extent required by applicable law, but not otherwise, the Committee shall furnish bond or security for the performance
of their duties hereunder. Any expenses properly incurred by the Committee incident to the administration, termination or protection
of the Plan, including the cost of furnishing bond, shall be paid by the Company.

 

4.                 
Eligibility. Only individuals who are Eligible Executives may participate in the Plan. The Committee has full
and absolute discretion to determine which employees of the Company and its Affiliates are Eligible Executives. Once an employee
has been designated as an Eligible Executive, he or she shall automatically continue to be an Eligible Executive until he or she
ceases to be an employee or is removed as an Eligible Executive by the Committee; provided, however, that if an employee
is an Eligible Executive as of the date of a Change in Control, then he or she may not be removed as an Eligible Executive by the
Committee during the 12-month period following the date of such Change in Control. For the avoidance of doubt, the Committee may
determine that an employee who was previously designated as an Eligible Executive shall no longer be an Eligible Executive any
time prior to a Change in Control or any time after the one-year anniversary of a Change in Control. The Plan shall supersede all
prior practices, policies, agreements, procedures and plans relating to severance payments from the Company and its Affiliates
with respect to the Eligible Executives; provided, however, that the terms and provisions of the Incentive Plan, the ProPetro
Holding Corp. 2013 Stock Option Plan, and the award agreements under each such plan shall continue to govern the equity-based awards
granted under such plans to an Eligible Executive following such Eligible Executive’s termination of employment.

 

    6

     

    

 

5.                 
Plan Benefits.

 

(a)              
Qualifying Termination. If an Eligible Executive’s employment with the Company and, as applicable, each of
its Affiliates, ends due to a Qualifying Termination, then such Eligible Executive shall be entitled to receive the Accrued Amounts,
and so long as such Eligible Executive satisfies the Release Requirement, abides by the terms of Section 7 below and continues
to abide by the terms of all other written agreements between such Eligible Executive and any member of the Company Group, including
the restrictive covenants set forth in the award agreements entered into between the Company and such Eligible Executive pursuant
to the Incentive Plan, such Eligible Executive shall also be entitled to receive:

 

(i)                
A cash payment equal to the Severance Amount payable in a lump-sum on or prior to the Company’s first regularly scheduled
pay date that occurs on or after the 14th day following the Release Consideration Period, but in no event later than 75 days following
the Date of Termination;

 

(ii)             
 If the Prior Year Annual Bonus has not yet been paid to the Eligible Executive, the Prior Year Annual Bonus, payable in
a lump sum at the time annual bonuses for such prior fiscal year of are paid to executives of the Company, but in no event later
than the Applicable March 15; and

 

(iii)           
If such Eligible Executive timely and properly elects to continue coverage for such Eligible Executive and such Eligible
Executive’s spouse and eligible dependents, if any, under the Company’s group health plans pursuant to COBRA, then
the Company shall promptly reimburse the Eligible Executive for the amount by which the premiums paid to effectuate such coverage
during the COBRA Continuation Period exceeds the amount of the employee contribution that active executive employees of the Company
pay for the same or similar coverage under such group health plans during the same period, less applicable taxes and withholdings
(the “COBRA Benefit”). Each payment of the COBRA Benefit shall be paid to the Eligible Executive on the
Company’s first regularly scheduled pay date in the calendar month immediately following the calendar month in which the
Eligible Executive submits to the Company documentation of the applicable premium payment having been paid by the Eligible Executive,
which documentation shall be submitted by the Eligible Executive to the Company within 30 days following the date on which the
applicable premium payment is paid. Notwithstanding anything in the preceding provisions of this Section 5(a)(iii) to the
contrary, (A) the election of COBRA continuation coverage and the payment of any premiums due with respect to such COBRA continuation
coverage will remain such Eligible Executive’s sole responsibility, and the Company will assume no obligation for payment
of any such premiums relating to such COBRA continuation coverage and (B) if the provision of the benefit described in this
Section 5(a)(iii) cannot be provided in the manner described above without penalty, tax, or other adverse impact on the
Company, then the Company and such Eligible Executive shall negotiate in good faith to determine an alternative manner in which
the Company may provide a substantially equivalent benefit to such Eligible Executive without such adverse impact on the Company.

 

    7

     

    

 

(b)               Qualifying
Termination Following a Change in Control. If an Eligible Executive’s employment with the Company and, as
applicable, each of its Affiliates, ends due to a Qualifying Termination within 12 months following a Change in Control, then
such Eligible Executive shall be entitled to receive the Accrued Amounts, and so long as such Eligible Executive satisfies
the Release Requirement, abides by the terms of Section 7 below and continues to abide by the terms of all other
written agreements between such Eligible Executive and any member of the Company Group, such Eligible Executive shall also be
entitled to receive:

 

(i)                
A cash payment equal to the Severance Amount payable in a lump-sum on or prior to the Company’s first regularly scheduled
pay date that occurs on or after the 14th day following the Release Consideration Period, but in no event later than 75 days following
the Date of Termination;

 

(ii)               
 If the Prior Year Annual Bonus has not yet been paid to the Eligible Executive, the Prior Year Annual Bonus, payable in
a lump sum at the time annual bonuses for such prior fiscal year of are paid to executives of the Company, but in no event later
than the Applicable March 15;

 

(iii)             
The Pro-Rata Annual Bonus for the fiscal year of the Company in which the Date of Termination occurs, payable in a lump
sum on or prior to the Company’s first regularly scheduled pay date that occurs on or after the 14th day following the Release
Consideration Period, but in no event later than 75 days following the Date of Termination; and

 

(iv)             
If such Eligible Executive timely and properly elects to continue coverage for such Eligible Executive and such Eligible
Executive’s spouse and eligible dependents, if any, under the Company’s group health plans pursuant to COBRA, then
the Company shall promptly reimburse the Eligible Executive for the full amount of the premiums paid to effectuate such coverage
during the COBRA Continuation Period, less applicable taxes and withholdings (the “CIC COBRA Benefit”).
Each payment of the CIC COBRA Benefit shall be paid to the Eligible Executive on the Company’s first regularly scheduled
pay date in the calendar month immediately following the calendar month in which the Eligible Executive submits to the Company
documentation of the applicable premium payment having been paid by the Eligible Executive, which documentation shall be submitted
by the Eligible Executive to the Company within 30 days following the date on which the applicable premium payment is paid. Notwithstanding
anything in the preceding provisions of this Section 5(b)(iv) to the contrary, (A) the election of COBRA continuation
coverage and the payment of any premiums due with respect to such COBRA continuation coverage will remain such Eligible Executive’s
sole responsibility, and the Company will assume no obligation for payment of any such premiums relating to such COBRA continuation
coverage and (B) if the provision of the benefit described in this Section 5(b)(iv) cannot be provided in the manner
described above without penalty, tax, or other adverse impact on the Company, then the Company and such Eligible Executive shall
negotiate in good faith to determine an alternative manner in which the Company may provide a substantially equivalent benefit
to such Eligible Executive without such adverse impact on the Company.

 

(c)               Termination
as a Result of Death or Disability. In the event an Eligible Executive’s employment with the Company and, as
applicable, each of its Affiliates, ends due to such Eligible Executive’s death or Disability, such Eligible Executive
shall be entitled to receive the Accrued Amounts, and so long as such Eligible Executive satisfies the Release Requirement,
abides by the terms of Section 7 below and continues to abide by the terms of all other written agreements between
such Eligible Executive and any member of the Company Group, such Eligible Executive shall also be entitled to receive:

 

    8

     

    

 

(i)                
If the Prior Year Annual Bonus has not yet been paid to the Eligible Executive, the Prior Year Annual Bonus, payable in
a lump sum at the time annual bonuses for such prior fiscal year of are paid to executives of the Company, but in no event later
than the Applicable March 15; and

 

(ii)              
A Pro-Rata Annual Bonus for the fiscal year of the Company in which the Date of Termination occurs, payable in a lump sum
on or prior to the Company’s first regularly scheduled pay date that occurs on or after the 14th day following the Release
Consideration Period, but in no event later than 75 days following the Date of Termination.

 

(d)              
Other Non-Qualifying Terminations of Employment. If an Eligible Executive’s employment with the Company and
each of its Affiliates terminates other than pursuant to a Qualifying Termination or due to the Eligible Executive’s death
or Disability, then all compensation and benefits to such Eligible Executive shall terminate contemporaneously with such termination
of employment, except that such Eligible Executive shall be entitled to the Accrued Amounts.

 

(e)              
After-Acquired Evidence. Notwithstanding any provision of the Plan to the contrary, in the event that the Company
determines that an Eligible Executive is eligible to receive the payments or benefits other than the Accrued Obligations pursuant
to Section 5 but, after such determination, the Company subsequently acquires evidence or determines that: (i) such Eligible
Executive has failed to abide by the terms Section 7 below or the terms of any other written agreement between such Eligible
Executive and any member of the Company Group; or (ii) a Cause condition existed prior to the Date of Termination that, had the
Company been fully aware of such condition, would have given the Company the right to terminate such Eligible Executive’s
employment for Cause, then the Company shall have no obligation to pay any amount in excess of the Accrued Obligations, and such
Eligible Executive shall promptly return to the Company any payment in excess of the Accrued Obligations received by such Eligible
Executive prior to the date that the Company determines that the conditions of this Section 5(c) have been satisfied.

 

6.                  Certain
Excise Taxes. Notwithstanding anything to the contrary in the Plan, if an Eligible Executive is a “disqualified
individual” (as defined in Section 280G(c) of the Code), and the payments provided for in the Plan, together with any
other payments and benefits which such Eligible Executive has the right to receive from the Company or any of its Affiliates,
would constitute a “parachute payment” (as defined in Section 280G(b)(2) of the Code), then the payments provided
for in the Plan shall be either (a) reduced (but not below zero) so that the present value of such total amounts and
benefits received by such Eligible Executive from the Company and its Affiliates will be one dollar less than three times
such Eligible Executive’s “base amount” (as defined in Section 280G(b)(3) of the Code) and so that no
portion of such amounts and benefits received by such Eligible Executive shall be subject to the excise tax imposed by
Section 4999 of the Code or (b) paid in full, whichever produces the better net after-tax position to such Eligible
Executive (taking into account any applicable excise tax under Section 4999 of the Code and any other applicable taxes). The
determination as to whether any such reduction in the amount of the payments provided hereunder is necessary shall be made by
the Company in good faith. If a reduced payment is made and through error or otherwise that payment, when aggregated with
other payments and benefits from the Company (or its Affiliates) used in determining if a “parachute payment”
exists, exceeds one dollar less than three times such Eligible Executive’s base amount, then such Eligible Executive
shall immediately repay such excess to the Company upon notification that an overpayment has been made. Nothing in this Section 6
shall require the Company to be responsible for, or have any liability or obligation with respect to, such Eligible
Executives’ excise tax liabilities under Section 4999 of the Code.

 

    9

     

    

 

7.                 
Defense and Pursuit of Claims. An Eligible Executive shall, following the termination of his or her employment,
cooperate with the Company Group and its counsel in any litigation or human resources matters in which such Eligible Executive
may be a witness or potential witness or with respect to which such Eligible Executive may have knowledge of relevant facts or
evidence. The Company shall reimburse such Eligible Executive for reasonable and necessary expenses incurred in the course of complying
with this Section provided that the Eligible Executive provides reasonable documentation of the same and obtains the Company’s
prior approval for incurring such expenses.

 

8.                 
Enforcement. Money damages would not be a sufficient remedy for any breach of Section 7 or any breach
of the terms of any other written agreement between an Eligible Executive and any member of the Company Group, in each case, by
such Eligible Executive, and any member of the Company Group shall be entitled to enforce the provisions of Section 7 and
the terms of such other written agreements as may be applicable by terminating payments or additional benefits then owing to the
Eligible Executive and to specific performance, injunctive relief and other equitable relief, without bond, as remedies for such
breach or any threatened breach. In addition, in the event of a breach by an Eligible Executive of Section 7 or the terms
of any other written agreement between such Eligible Executive and any member of the Company Group, the Eligible Executive shall
repay to the Company any and all payments received or paid or deemed paid by the Company for the benefit of the Eligible Executive
pursuant to the Plan. Such remedies shall not be deemed the exclusive remedies for a breach of Section 7 or the terms of
such other written agreements as may be applicable, but shall be in addition to all remedies available at law or in equity, including
the recovery of damages from the Eligible Executive and the Eligible Executive’s agents. This Section 8, Section
7 and the terms of any other written agreements between the Eligible Executive and any member of the Company Group, and each
provision and portion thereof, are severable and separate, and the unenforceability of any specific Section or provision (or portion
thereof) shall not affect the enforceability of any other Section or provision (or portion thereof).

 

9.                 
Claims Procedure and Review.

 

(a)               Filing
a Claim. Any Eligible Executive that the Committee determines is entitled to payment of severance benefits under the Plan
is not required to file a claim for such benefit. Any employee (i) who is not paid severance benefits hereunder and who
believes that he or she is entitled to severance benefits hereunder or (ii) who has been paid severance benefits hereunder
and believes that he or she is entitled to greater benefits hereunder may file a written claim for severance benefits under
the Plan with the Committee setting forth the facts and arguments for Committee consideration within 90 days after such
employee knew or reasonably should have known of the principal facts upon which his or her claim is based.

 

    10

     

    

 

(b)              
Initial Determination of a Claim. Within 90 days of the date the Committee receives a claim, the claimant will receive
(i) a decision or (ii) a written notice describing special circumstances requiring a specified amount of additional time (up to
90 additional days) to reach a decision and the date by which it expects to reach a decision. If a claim for severance benefits
hereunder is wholly or partially denied, the Committee shall, within a reasonable period of time but no later than 90 days after
receipt of the claim (or 180 days after receipt of the claim if special circumstances require an extension of time for processing
the claim), notify the claimant of the denial. Such notice shall (A) be in writing, (B) be written in a manner calculated to be
understood by the claimant, (C) contain the specific reason or reasons for denial of the claim, (D) refer specifically to
the pertinent Plan provisions upon which the denial is based, (E) describe any additional material or information necessary for
the claimant to perfect the claim (and explain why such material or information is necessary), and (F) describe the Plan’s
claim review procedures and time limits applicable to such procedures, including a statement of the claimant’s right to bring
a civil action under Section 502(a) of ERISA following an adverse benefit determination on review.

 

(c)              
Appeal of a Denied Claim. Within 60 days of the receipt by the claimant of the notice that the claim was denied,
the claimant may file a written appeal with the Committee. In connection with the appeal, the claimant may review Plan documents
and may submit written issues and comments. Within 60 days of the date the Committee receives an appeal, the claimant will receive
(i) a decision or (ii) a written notice describing special circumstances requiring a specified amount of additional time (up to
60 additional days) to reach a decision and the date by which it expects to reach a decision. The Committee shall deliver to the
claimant a written decision on the appeal promptly, but not later than 60 days after the receipt of the claimant’s appeal
(or 120 days after receipt of the claimant’s appeal if there are special circumstances which require an extension of time
for processing). Such decision shall (A) be in writing, (B) be written in a manner calculated to be understood by the claimant,
(C) include specific reasons for the decision, (D) refer specifically to the Plan provisions upon which the decision is based,
(E) state that the claimant is entitled to receive, on request and free of charge, reasonable access to and copies of all documents,
records, and other information relevant to the claimant’s claim for benefits, and (F) a statement of the Eligible Executive’s
right to bring an action under Section 502(a) of ERISA. If special circumstances require an extension of up to 180 days for an
initial claim or 120 days for an appeal, whichever applies, the Committee shall send written notice of the extension. This notice
shall indicate the special circumstances requiring the extension and state when the Committee expects to render the decision.

 

(d)               Additional
Information for a Claim on Review. If the Committee determines it needs further information to complete its review of a
claim, the claimant will receive a written notice describing the additional information necessary to make the decision. The
claimant will then have 60 days from the date the claimant receives the notice to provide the requested information to the
Committee. The time between the date the Committee sends its information request to the claimant and the date the Committee
receives the requested information from the claimant does not count against the 60-day period in which the Committee has to
decide the claim on review. If the Committee does not receive a response to its request for additional information from the
claimant, then the period by which the Committee must reach its decision shall be extended by the 60-day period that was
provided to the claimant to submit the additional information. If special circumstances exist, this period may be further
extended.

 

    11

     

    

 

(e)              
In General. The Committee will make all decisions on claims and review of denied claims. The Committee has the sole
discretion, authority and responsibility to decide all factual and legal questions under the Plan, including interpreting and construing
the Plan and any ambiguous or unclear terms, and determining whether a claimant is eligible for benefits and the amount of benefits,
if any, a claimant is entitled to receive. The Committee may hold hearings and reserves the right to delegate its authority to
make decisions. The Committee may rely on any applicable statute of limitations as a basis to deny a claim. The Committee’s
decisions are conclusive and binding on all Parties. The claimant may, at his or her own expense, have an attorney or representative
act on his or her behalf, but the Committee reserves the right to require a written authorization for a person to act on the claimant’s
behalf.

 

(f)               
Time Periods. The time period for the Committee to decide a claim begins to run on the date the Committee receives
a claimant’s written claim. If a claimant files a timely request for review of a denied claim, the time period for the Committee
to decide begins to run on the date the Committee receives the written request. In both cases, the time period begins to run whether
or not the claimant submits comments or information that he or she would like considered by the Committee.

 

(g)              
Limitations Period. If a claimant files a claim within the required time, completes the entire claims procedure and
the Committee denies such claim after the claimant requests a review, the claimant may sue over the claim (unless he or she has
executed a release of such claim). The claimant must commence this lawsuit within six months after the claims process is completed.
Regardless of when the claimant files the claim, the claimant may not, under any circumstances, commence a lawsuit more than 30
months after he or she knew or should have known the facts supporting the claim. Before commencing legal action to recover benefits
or to enforce or clarify rights, the claimant must complete all of the Plan’s claim procedures.

 

(h)             
The benefits claim procedure provided in this Section 9 is intended to comply with the provisions of 29 C.F.R. §2560.503-1.
All provisions of this Section 9 shall be interpreted, construed, and limited in accordance with such intent.

 

10.             
General Provisions.

 

(a)              
Taxes. The Company and its Affiliates are authorized to withhold from all payments made hereunder amounts of withholding
and other taxes due or potentially payable in connection therewith, and to take such other action as the Company may deem advisable
to enable the Company and its Affiliates and the Eligible Executive to satisfy obligations for the payment of withholding taxes
and other tax obligations relating to any payments made under the Plan.

 

(b)               Offset.
The Company may set off against, and each Eligible Executive authorizes the Company to deduct from, any payments due to the
Eligible Executive, or to his or her estate, heirs, legal representatives, or successors, any amounts which may be due and
owing to the Company or an Affiliate of the Company by the Eligible Executive, whether arising under the Plan or otherwise; provided,
however, that any such offset must be compliant with applicable law and no such offset may be made with respect to
amounts payable that are subject to the requirements of Section 409A unless the offset would not result in a violation of the
requirements of Section 409A.

 

    12

     

    

 

(c)              
Amendment and Termination. Prior to a Change in Control, the Plan may be amended or modified in any respect and may
be terminated by the Board; provided, however, that the Plan may not be amended, modified or terminated in any manner that
would in any way adversely affect the benefits or protections provided hereunder to any individual who is an Eligible Executive
under the Plan at such time, (i) at the request of a third party who has indicated an intention or taken steps to effect a Change
in Control and who effectuates a Change in Control, or (ii) otherwise in connection with, or in anticipation of, a Change in Control
that actually occurs, and any such attempted amendment, modification or termination shall be null and void ab initio. Any
action taken to amend, modify or terminate the Plan which is taken subsequent to the execution of an agreement providing for a
transaction or transactions which, if consummated, would constitute a Change in Control shall conclusively be presumed to have
been taken in connection with a Change in Control. For the duration of the 12-month period following a Change in Control, the Plan
may not be amended or modified in any manner that would in any way adversely affect the benefits or protections provided hereunder
to any individual who is an Eligible Executive under the Plan on the date a Change in Control occurs.

 

(d)              
Successors. The Plan will be binding upon any successor to the Company, its assets, its businesses or its interest
(whether as a result of the occurrence of a Change in Control or otherwise), in the same manner and to the same extent that the
Company would be obligated under the Plan if no succession had taken place. All payments and benefits that become due to an Eligible
Executive under the Plan will inure to the benefit of his or her heirs, assigns, designees or legal representatives.

 

(e)              
Transfer and Assignment. Neither an Eligible Executive nor any other person shall have any right to sell, assign,
transfer, pledge, anticipate or otherwise encumber, transfer, hypothecate or convey any amounts payable under the Plan prior to
the date that such amounts are paid.

 

(f)               
Unfunded Obligation. All benefits due an Eligible Executive under the Plan are unfunded and unsecured and are payable
out of the general assets of the Company. The Company is not required to segregate any monies or other assets from its general
funds with respect to these obligations. Eligible Executives shall not have any preference or security interest in any assets of
the Company other than as a general unsecured creditor.

 

(g)              
Severability. If any provision of the Plan (or portion thereof) is held to be illegal or invalid for any reason,
the illegality or invalidity of such provision (or portion thereof) will not affect the remaining provisions (or portions thereof)
of the Plan, but such provision (or portion thereof) will be fully severable and the Plan will be construed and enforced as if
the illegal or invalid provision (or portion thereof) had never been included herein.

 

    13

     

    

 

(h)               Section
409A. The Plan is intended to comply with Section 409A or an exemption thereunder and shall be construed and administered
in accordance with Section 409A. Notwithstanding any other provision of the Plan, payments provided under the Plan may only
be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any payments under the Plan
that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a
short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each
installment payment provided under the Plan shall be treated as a separate payment. Any payments to be made under the Plan
upon the termination of an Eligible Executive’s employment shall only be made if such termination of employment
constitutes a “separation from service” under Section 409A. Notwithstanding any provision in the Plan to the
contrary, if any payment or benefit provided for herein would be subject to additional taxes and interest under Section 409A
if an Eligible Executive’s receipt of such payment or benefit is not delayed until the earlier of (i) the date of such
Eligible Executive’s death or (ii) the date that is six months after such Eligible Executive’s Date of
Termination (such date, the “Section 409A Payment Date”), then such payment or benefit shall not be
provided to such Eligible Executive (or such Eligible Executive’s estate, if applicable) until the Section 409A Payment
Date. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under the
Plan are exempt from, or compliant with, Section 409A and in no event shall the Company or any of its Affiliates be liable
for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by any Eligible Executive on
account of non-compliance with Section 409A.

 

(i)               
Governing Law; Submission to Jurisdiction. All questions arising with respect to the provisions of the Plan and payments
due hereunder will be determined by application of the laws of the State of Texas, without giving effect to any conflict of law
provisions thereof, except to the extent preempted by federal law (including ERISA, which is the federal law that governs the Plan,
the administration of the Plan and any claims made under the Plan). Any action to obtain emergency, temporary or preliminary injunctive
relief as permitted by Section 7 will be brought only in the state and federal courts residing in, or with jurisdiction
over, Midland County, Texas. The Eligible Executives recognize that such forum and venue is convenient.

 

(j)              
Third-Party Beneficiaries. Each Affiliate of the Company shall be a third-party beneficiary of the Eligible Executive’s
covenants and obligations under Section 7 and the terms and provisions of any other written agreement between such Eligible
Executive and the Company and shall be entitled to enforce such obligations as if a party hereto.

 

(k)             
No Right to Continued Employment. The adoption and maintenance of the Plan shall not be deemed to be a contract of
employment between the Company or any of its Affiliates and any person, or to have any impact whatsoever on the at-will employment
relationship between the Company or any of its Affiliates and the Eligible Executives. Nothing in the Plan shall be deemed to give
any person the right to be retained in the employ of the Company or any of its Affiliates for any period of time or to restrict
the right of the Company or any of its Affiliates to terminate the employment of any person at any time.

 

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(l)                Title
and Headings; Construction. Titles and headings to Sections hereof are for the purpose of reference only and shall in no
way limit, define or otherwise affect the provisions hereof. Unless the context requires otherwise, all references to laws,
regulations, contracts, documents, agreements and instruments refer to such laws, regulations, contracts, agreements and
instruments as they may be amended from time to time, and references to particular provisions of laws or regulations include
a reference to the corresponding provisions of any succeeding law or regulation. The word “or” as used herein is
not exclusive and is deemed to have the meaning “and/or.” The words “herein”, “hereof”,
 “hereunder” and other compounds of the word “here” shall refer to the entire Plan, and not to any
particular provision hereof. Wherever the context so requires, the masculine gender includes the feminine or neuter, and the
singular number includes the plural and conversely. The use herein of the word “including” following any general
statement, term or matter shall not be construed to limit such statement, term or matter to the specific items or matters set
forth immediately following such word or to similar items or matters, whether or not non-limiting language (such as
 “without limitation”, “but not limited to”, or words of similar import) is used with reference
thereto, but rather shall be deemed to refer to all other items or matters that could reasonably fall within the broadest
possible scope of such general statement, term or matter. Neither the Plan nor any uncertainty or ambiguity herein shall be
construed or resolved against any party hereto, whether under any rule of construction or otherwise. On the contrary, the
Plan shall be construed and interpreted according to the ordinary meaning of the words used so as to fairly accomplish the
purposes and intentions of the Company.

 

(m)            
Overpayment. If, due to mistake or any other reason, a person receives severance payments under the Plan in excess
of what the Plan provides, such person shall repay the overpayment to the Company in a lump sum within 30 days of notice of the
amount of overpayment. If such person fails to so repay the overpayment, then without limiting any other remedies available to
the Company, the Company may deduct the amount of the overpayment from any other amounts which become payable to such person under
the Plan or otherwise.

 

(n)              
Clawback. Any amounts payable under the Plan are subject to any policy (whether in existence as of the Effective
Date or later adopted) established by the Company providing for clawback or recovery of amounts that were paid to the Eligible
Executive; provided, however, that the establishment or modification of any clawback policy by the Company on or after the date
of a Change in Control shall only apply to amounts payable under the Plan to the extent required by applicable law. The Company
will make any determination for clawback or recovery in its sole discretion and in accordance with applicable laws, regulations,
and securities exchange listing standards.

 

(o)              
Agent for Service of Legal Process. Legal process may be served on the Committee, which is the plan administrator,
at the following address: Compensation Committee of the Board of Directors, c/o ProPetro Holding Corp., 1706 Midkiff Road, Bldg.
B, Midland, Texas 79107.

 

    15

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