Document:

Exhibit

Section 16 Grantee

ELEVATE CREDIT, INC.
2016 OMNIBUS INCENTIVE PLAN
NOTICE OF RESTRICTED STOCK UNIT AWARD
Grantee’s Name and Address:         _______________________________    
_______________________________
_______________________________
        
You (the “Grantee”) have been granted an award of Restricted Stock Units (the “Award”), subject to the terms and conditions of this Notice of Restricted Stock Unit Award (the “Notice”), the Elevate Credit, Inc. 2016 Omnibus Incentive Plan, as amended from time to time (the “Plan”), and the Restricted Stock Unit Agreement (the “Agreement”) attached hereto, as follows.  Unless otherwise provided herein, the terms in this Notice shall have the same meaning as those defined in the Plan. 
Award Number             _______________________________    
Date of Award             _______________________________
Vesting Commencement Date     _______________________________
Total Number of Restricted Stock    _______________________________
Units Awarded (the “Units”)        _______________________________
Vesting Schedule:
[Subject to the Grantee’s Continuous Service and other limitations set forth in this Notice, the Agreement and the Plan, the Units will “vest” in accordance with the following schedule (the “Vesting Schedule”):
[]
In the event of the Grantee’s change in status from Employee to Consultant or Director, the determination of whether such change in status results in a termination of Continuous Service will be determined in accordance with Section 409A of the Code.
During any authorized leave of absence, the vesting of the Units as provided in this schedule shall be suspended (to the extent permitted under Section 409A of the Code) after the leave of absence exceeds a period of three (3) months.  Vesting of the Units shall resume upon the Grantee’s termination of the leave of absence and return to service to the Company or a Related Entity; provided, however, that if the leave of absence exceeds six (6) months, and a return to service upon expiration of such leave is not guaranteed by statute or contract, then (a) the Grantee’s Continuous Service shall be deemed to terminate on the first date following such six-month period and (b) the Grantee will forfeit the Units that are unvested on the date of the Grantee’s termination of Continuous Service.  An authorized leave of absence shall include sick leave, military leave, or other bona fide leave of absence (such as temporary employment by the government).  Notwithstanding the foregoing, with respect to a leave of absence due to any medically determinable physical or mental impairment of the Grantee that can be expected to result in death or can be expected to last for a continuous period of not less than six (6) months, where such impairment causes the Grantee to be unable to perform the duties of the Grantee’s position of employment 

or substantially similar position of employment, a twenty-nine (29) month period of absence shall be substituted for such six (6) month period above.  The Vesting Schedule of the Units shall be extended by the length of the suspension.  
In the event of the Grantee’s change in status from Employee, Director or Consultant to any other status of Employee, Director or Consultant, the Units shall continue to vest in accordance with the Vesting Schedule set forth above.
For purposes of this Notice and the Agreement, the term “vest” shall mean, with respect to any Units, that such Units are no longer subject to forfeiture to the Company.  If the Grantee would become vested in a fraction of a Unit, such Unit shall not vest until the Grantee becomes vested in the entire Unit.
Vesting shall cease upon the date of termination of the Grantee’s Continuous Service for any reason, including death or Disability.  In the event the Grantee’s Continuous Service is terminated for any reason, including death or Disability, any unvested Units held by the Grantee immediately following such termination of Continuous Service shall be forfeited and deemed reconveyed to the Company and the Company shall thereafter be the legal and beneficial owner of the unvested Units and shall have all rights and interest in or related thereto without further action by the Grantee.  
The Award shall be subject to the provisions of Section 11 of the Plan in the event of a Corporate Transaction or Change in Control.]
IN WITNESS WHEREOF, the Company and the Grantee have executed this Notice and agree that the Award is to be governed by the terms and conditions of this Notice, the Plan, and the Agreement.
ELEVATE CREDIT, INC.
a Delaware corporation
By: _______________________________    
Title: _______________________________    
Date: _______________________________    
THE GRANTEE ACKNOWLEDGES AND AGREES THAT THE UNITS SHALL VEST, IF AT ALL, ONLY DURING THE PERIOD OF THE GRANTEE’S CONTINUOUS SERVICE OR AS OTHERWISE SPECIFICALLY PROVIDED HEREIN (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS AWARD OR ACQUIRING SHARES HEREUNDER).  THE GRANTEE FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS NOTICE, THE AGREEMENT, OR THE PLAN SHALL CONFER UPON THE GRANTEE ANY RIGHT WITH RESPECT TO FUTURE AWARDS OR CONTINUATION OF THE GRANTEE’S CONTINUOUS SERVICE, NOR SHALL IT INTERFERE IN ANY WAY WITH THE GRANTEE’S RIGHT OR THE RIGHT OF THE COMPANY OR RELATED ENTITY TO WHICH THE GRANTEE PROVIDES SERVICES TO TERMINATE THE GRANTEE’S CONTINUOUS SERVICE AT ANY TIME, WITH OR WITHOUT CAUSE, AND WITH OR WITHOUT NOTICE.  THE GRANTEE ACKNOWLEDGES THAT UNLESS THE GRANTEE HAS A WRITTEN EMPLOYMENT AGREEMENT WITH THE COMPANY TO THE CONTRARY, THE GRANTEE’S STATUS IS AT WILL.

Grantee Acknowledges and Agrees:
The Grantee acknowledges receipt of a copy of the Plan and the Agreement and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts the Award subject to all of the terms and provisions hereof and thereof.  The Grantee has reviewed this Notice, the Agreement and the Plan in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Notice and fully understands all provisions of this Notice, the Agreement and the Plan.  The Grantee further agrees and acknowledges that this Award is a non-elective arrangement pursuant to Section 409A of the Code. The Grantee hereby agrees that all questions of interpretation and administration relating to this Notice, the Plan and the Agreement shall be resolved by the Administrator in accordance with Section 8 of the Agreement.  The Grantee further agrees to the venue selection [and waiver of a jury trial] in accordance with Section 10 of the Agreement.  The Grantee further agrees to notify the Company upon any change in the residence address indicated in this Notice.
The Grantee further acknowledges that, from time to time, the Company may be in a “blackout period” and/or subject to applicable federal securities laws that could subject the Grantee to liability for engaging in any transaction involving the sale of the Shares.  The Grantee further acknowledges and agrees that, prior to the sale of any Shares acquired under the Award, it is the Grantee’s responsibility to determine whether or not the sale of the Shares will subject the Grantee to liability under insider trading rules or other applicable federal securities laws.
The Company may, in its sole discretion, decide to deliver this Notice, the Agreement, the Plan and the Plan prospectus (collectively, the “Plan Documents”) to the Grantee by electronic means or request the Grantee’s consent to participate in the Plan by electronic means.  The Grantee hereby agrees to Company’s provision to the Grantee of these documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.  
The Grantee acknowledges that the Grantee has access to the Company’s intranet and has either received electronic or paper copies of the Plan Documents.

Date: _______________________________            
    
_______________________________
Grantee’s Signature
        
_______________________________
Grantee’s Printed Name

_______________________________            
Address
        
_______________________________    
City, State & Zip

Award Number:  __________________
ELEVATE CREDIT, INC.
2016 OMNIBUS INCENTIVE PLAN 

RESTRICTED STOCK UNIT AGREEMENT
1.Issuance of Units.  Elevate Credit, Inc., a Delaware corporation (the “Company”), hereby issues to the Grantee (the “Grantee”) named in the Notice of Restricted Stock Unit Award (the “Notice”) an award (the “Award”) of the Total Number of Restricted Stock Units Awarded set forth in the Notice (the “Units”), subject to the Notice, this Restricted Stock Unit Agreement (the “Agreement”) and the terms and provisions of the Elevate Credit, Inc. 2016 Omnibus Incentive Plan, as amended from time to time (the “Plan”), which is incorporated herein by reference.  Unless otherwise provided herein, the terms in this Agreement shall have the same meaning as those defined in the Plan.  
2.Transfer Restrictions.  The Units may not be transferred in any manner other than by will or by the laws of descent and distribution.  
3.Conversion of Units and Issuance of Shares.  
(a)General.  Subject to Sections 3(b) and 3(c), one share of Common Stock shall be issuable for each Unit subject to the Award (the “Shares”) upon vesting.  Immediately thereafter, or as soon as administratively feasible, the Company will transfer the appropriate number of Shares to the Grantee after satisfaction of any required tax or other withholding obligations.  Any fractional Unit remaining after the Award is fully vested shall be discarded and shall not be converted into a fractional Share.  Notwithstanding the foregoing, the relevant number of Shares shall be issued no later than sixty (60) days following vesting.  [The Company may however, in its sole discretion, make a cash payment in lieu of the issuance of the Shares in an amount equal to the value of one share of Common Stock multiplied by the number of Units subject to the Award.]
(b)Delay of Conversion.  The conversion of the Units into the Shares under Section 3(a) above, may be delayed in the event the Company reasonably anticipates that the issuance of the Shares would constitute a violation of federal securities laws or other Applicable Law.  If the conversion of the Units into the Shares is delayed by the provisions of this Section 3(b), the conversion of the Units into the Shares shall occur at the earliest date at which the Company reasonably anticipates issuing the Shares will not cause a violation of federal securities laws or other Applicable Law.  For purposes of this Section 3(b), the issuance of Shares that would cause inclusion in gross income or the application of any penalty provision or other provision of the Code is not considered a violation of Applicable Law.
(c)Delay of Issuance of Shares.  The Company shall delay the issuance of any Shares under this Section 3 to the extent necessary to comply with Section 409A(a)(2)(B)(i) of the Code (relating to payments made to certain “specified employees” of certain publicly-traded companies); in such event, any Shares to which the Grantee would otherwise be entitled during the six (6) month period following the date of the Grantee’s termination of Continuous Service will be issuable on the first business day following the expiration of such six (6) month period.
4.Right to Shares.  The Grantee shall not have any right in, to or with respect to any of the Shares (including any voting rights or rights with respect to dividends paid on the Common Stock) issuable under the Award until the Award is settled by the issuance of such Shares to the Grantee.
5.Taxes.  
(a)Tax Liability.  The Grantee is ultimately liable and responsible for all taxes owed by the Grantee in connection with the Award, regardless of any action the Company or any Related Entity takes with respect to any tax withholding obligations that arise in connection with the Award.  Neither the 

Company nor any Related Entity makes any representation or undertaking regarding the treatment of any tax withholding in connection with any aspect of the Award, including the grant, vesting, assignment, release or cancellation of the Units, the delivery of Shares, the subsequent sale of any Shares acquired upon vesting and the receipt of any dividends or dividend equivalents.  The Company and its Related Entities do not commit and are under no obligation to structure the Award to reduce or eliminate the Grantee’s tax liability.
(b)[Payment of Withholding Taxes.  Prior to any event in connection with the Award (e.g., vesting) that the Company determines may result in any tax withholding obligation, whether United States federal, state, local or non-U.S., including any social insurance, employment tax, payment on account or other tax-related obligation (the “Tax Withholding Obligation”), the Grantee must arrange for the satisfaction of the minimum amount of such Tax Withholding Obligation in a manner acceptable to the Company.  At any time not less than five (5) business days (or such fewer number of business days as determined by the Administrator) before any Tax Withholding Obligation arises (e.g., a vesting date), the Grantee may elect to satisfy the Grantee’s Tax Withholding Obligation that the Company determines is sufficient by (i) wire transfer to such account as the Company may direct, (ii) delivery of a certified check payable to the Company, (iii) if permissible under Applicable Law, directing the Company to withhold from those Shares otherwise issuable to the Grantee the whole number of Shares sufficient to satisfy the minimum applicable Tax Withholding Obligation or (iv) such other means as specified from time to time by the Administrator.  With respect to clause (iii) of the immediately preceding sentence, the Grantee acknowledges that the withheld Shares may not be sufficient to satisfy the Grantee’s minimum Tax Withholding Obligation.  Accordingly, the Grantee agrees to pay to the Company or any Related Entity as soon as practicable, including through additional payroll withholding, any amount of the Tax Withholding Obligation that is not satisfied by the withholding of Shares described above. If the Grantee does not make such arrangements, the Company may, at its sole election, satisfy the Grantee’s Tax Withholding Obligation in accordance with clause (i) below.
(i)By Sale of Shares.  The Grantee’s acceptance of this Award constitutes the Grantee’s instruction and authorization to the Company and any brokerage firm determined acceptable to the Company for such purpose to, upon the exercise of Company’s sole discretion, sell on the Grantee’s behalf a whole number of Shares from those Shares issuable to the Grantee as the Company determines to be appropriate to generate cash proceeds sufficient to satisfy the minimum applicable Tax Withholding Obligation.  Such Shares will be sold on the day such Tax Withholding Obligation arises (e.g., a vesting date) or as soon thereafter as practicable.  The Grantee will be responsible for all broker’s fees and other costs of sale, and the Grantee agrees to indemnify and hold the Company harmless from any losses, costs, damages, or expenses relating to any such sale.  To the extent the proceeds of such sale exceed the Grantee’s minimum Tax Withholding Obligation, the Company agrees to pay such excess in cash to the Grantee.  The Grantee acknowledges that the Company or its designee is under no obligation to arrange for such sale at any particular price, and that the proceeds of any such sale may not be sufficient to satisfy the Grantee’s minimum Tax Withholding Obligation.  Accordingly, the Grantee agrees to pay to the Company or any Related Entity as soon as practicable, including through additional payroll withholding, any amount of the Tax Withholding Obligation that is not satisfied by the sale of Shares described above.]
Notwithstanding the foregoing, the Company or a Related Entity also may satisfy any Tax Withholding Obligation by offsetting any amounts (including, but not limited to, salary, bonus and severance payments) payable to the Grantee by the Company and/or a Related Entity.  Furthermore, in the event of any determination that the Company and/or a Related Entity has failed to withhold a sum sufficient to pay all withholding taxes due in connection with the Award, the Grantee agrees to pay the Company and/or the Related Entity the amount of such deficiency in cash within five (5) days after receiving a written demand from the Company and/or the Related Entity to do so, whether or not the Grantee is an employee of the Company and/or the Related Entity at that time.

6.Lock-Up Agreement.
(a)Agreement.  The Grantee, if requested by the Company and the lead underwriter of any public offering of the Common Stock (the “Lead Underwriter”), hereby irrevocably agrees not to sell, contract to sell, grant any option to purchase, transfer the economic risk of ownership in, make any short sale of, pledge or otherwise transfer or dispose of any interest in any Common Stock or any securities convertible into or exchangeable or exercisable for or any other rights to purchase or acquire Common Stock (except Common Stock included in such public offering or acquired on the public market after such offering) during the 180-day period following the effective date of a registration statement of the Company filed under the Securities Act of 1933, as amended, or such shorter or longer period of time as the Lead Underwriter shall specify.  The Grantee further agrees to sign such documents as may be requested by the Lead Underwriter to effect the foregoing and agrees that the Company may impose stop-transfer instructions with respect to such Common Stock subject to the lock-up period until the end of such period.  The Company and the Grantee acknowledge that each Lead Underwriter of a public offering of the Company’s stock, during the period of such offering and for the lock-up period thereafter, is an intended beneficiary of this Section 6.
(b)No Amendment Without Consent of Underwriter.  During the period from identification of a Lead Underwriter in connection with any public offering of the Company’s Common Stock until the earlier of (i) the expiration of the lock-up period specified in Section 6(a) in connection with such offering or (ii) the abandonment of such offering by the Company and the Lead Underwriter, the provisions of this Section 6 may not be amended or waived except with the consent of the Lead Underwriter.
7.Entire Agreement; Governing Law.  The Notice, the Plan and this Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Grantee with respect to the subject matter hereof, and may not be modified adversely to the Grantee’s interest except by means of a writing signed by the Company and the Grantee.  These agreements are to be construed in accordance with and governed by the internal laws of the State of [] without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of [] to the rights and duties of the parties.  Should any provision of the Notice or this Agreement be determined to be illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable.
8.Construction.  The captions used in the Notice and this Agreement are inserted for convenience and shall not be deemed a part of the Award for construction or interpretation.  Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular.  Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise.
9.Administration and Interpretation.  Any question or dispute regarding the administration or interpretation of the Notice, the Plan or this Agreement shall be submitted by the Grantee or by the Company to the Administrator.  The resolution of such question or dispute by the Administrator shall be final and binding on all persons.  
10.Venue [and Waiver of Jury Trial].  The parties agree that any suit, action, or proceeding arising out of or relating to the Notice, the Plan or this Agreement shall be brought in the United States District Court for [] (or should such court lack jurisdiction to hear such action, suit or proceeding, in a [] state court in []) and that the parties shall submit to the jurisdiction of such court.  The parties irrevocably waive, to the fullest extent permitted by law, any objection the party may have to the laying of venue for any such suit, action or proceeding brought in such court.  [THE PARTIES ALSO EXPRESSLY WAIVE ANY RIGHT THEY HAVE OR MAY HAVE TO A JURY TRIAL OF ANY SUCH SUIT, ACTION OR PROCEEDING.]  If any one or more provisions of this Section 10 shall for any reason be held invalid or unenforceable, it is the specific intent of the parties that such provisions shall be modified to the minimum extent necessary to make it or its application valid and enforceable.

11.Mutual Non-disparagement. The parties agree that neither party will disparage or make negative statements or any unfavorable comments (or induce or encourage others to disparage or make negative statements or unfavorable comments) about the other party, including, without limitation, disparaging the other party in connection with disclosing the facts or circumstances surrounding the termination of the Grantee’s Continuous Service or any aspect of the other party’s business or personal dealings or reputation in any manner. For purposes of this Agreement, the term “disparage” means any comments or statements that would adversely affect in any manner: (i) the conduct of the business of the Company or any Related Entity; or (ii) the business, personal, or professional reputation or relationships of the Company, any Related Entity or the Grantee.
12.Notices.  Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery, upon deposit for delivery by an internationally recognized express mail courier service or upon deposit in the United States mail by certified mail (if the parties are within the United States), with postage and fees prepaid, addressed to the other party at its address as shown in these instruments, or to such other address as such party may designate in writing from time to time to the other party.
13.Language.  If the Grantee has received this Agreement or any other document related to the Plan translated into a language other than English and if the translated version is different than the English version, the English version will control, unless otherwise prescribed by Applicable Law. 
14.    Nature of Award.  In accepting the Award, the Grantee acknowledges and agrees that:
(a)the Plan is established voluntarily by the Company, it is discretionary in nature, and it may be modified, amended, suspended or terminated by the Company at any time, unless otherwise provided in the Plan and this Agreement;
(b)the Award is voluntary and occasional and does not create any contractual or other right to receive future awards, or benefits in lieu of awards, even if awards have been awarded repeatedly in the past;
(c)all decisions with respect to future awards, if any, will be at the sole discretion of the Company;
(d)the Grantee’s participation in the Plan is voluntary;
(e)the Grantee’s participation in the Plan shall not create a right to any employment with the Grantee’s employer and shall not interfere with the ability of the Company or the employer to terminate the Grantee’s employment relationship, if any, at any time;
(f)the Award is not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company or any Related Entity; 
(g)in the event that the Grantee is not an Employee of the Company or any Related Entity, the Award and the Grantee’s participation in the Plan will not be interpreted to form an employment or service contract or relationship with the Company or any Related Entity; 
(h)the future value of the underlying Shares is unknown and cannot be predicted with certainty; 
(i)in consideration of the Award, no claim or entitlement to compensation or damages shall arise from termination of the Award or diminution in value of the Award or Shares acquired upon vesting of the Award, resulting from termination of the Grantee’s Continuous Service by the Company or any Related Entity (for any reason whatsoever and whether or not in breach of local labor laws) and in consideration of the grant of the Award, the Grantee irrevocably releases the Company and any Related Entity from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a 

court of competent jurisdiction to have arisen, then, by signing the Notice, the Grantee shall be deemed irrevocably to have waived his or her right to pursue or seek remedy for any such claim or entitlement;
(j)in the event of termination of the Grantee’s Continuous Service (whether or not in breach of local labor laws), the Grantee’s right to receive Awards under the Plan and to vest in such Awards, if any, will (except as otherwise provided in the Notice or herein) terminate effective as of the date that the Grantee is no longer providing services and will not be extended by any notice period mandated under local law (e.g., providing services would not include a period of “garden leave” or similar period pursuant to local law); furthermore, in the event of termination of the Grantee’s Continuous Service (whether or not in breach of local labor laws), the Administrator shall have the exclusive discretion to determine when the Grantee is no longer providing services for purposes of this Award;
(k)the Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Grantee’s participation in the Plan or the Grantee’s acquisition or sale of the underlying Shares; and
(l)the Grantee is hereby advised to consult with the Grantee’s own personal tax, legal and financial advisers regarding the Grantee’s participation in the Plan before taking any action related to the Plan.
15.    Data Privacy.  
(a)The Grantee hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of the Grantee’s personal data as described in the Notice and this Agreement by and among, as applicable, the Grantee’s employer, the Company and any Related Entity for the exclusive purpose of implementing, administering and managing the Grantee’s participation in the Plan.  
(b)The Grantee understands that the Company and the Grantee’s employer may hold certain personal information about the Grantee, including, but not limited to, the Grantee’s name, home address and telephone number, date of birth, social insurance or other identification number, salary, nationality, job title, any Shares or directorships held in the Company, details of all Awards or any other entitlement to Shares awarded, canceled, vested, unvested or outstanding in the Grantee’s favor, for the exclusive purpose of implementing, administering and managing the Plan (“Data”).  
(c)The Grantee understands that Data will be transferred to any third party assisting the Company with the implementation, administration and management of the Plan.  The Grantee understands that the recipients of the Data may be located in the Grantee’s country, or elsewhere, and that the recipients’ country may have different data privacy laws and protections than the Grantee’s country.  The Grantee understands that the Grantee may request a list with the names and addresses of any potential recipients of the Data by contacting the Grantee’s local human resources representative.  The Grantee authorizes the Company and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing the Grantee’s participation in the Plan.  The Grantee understands that Data will be held only as long as is necessary to implement, administer and manage the Grantee’s participation in the Plan.  The Grantee understands that the Grantee may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing the Grantee’s local human resources representative.  The Grantee understands, however, that refusal or withdrawal of consent may affect the Grantee’s ability to participate in the Plan.  For more information on the consequences of the Grantee’s refusal to consent or withdrawal of consent, the Grantee understands that the Grantee may contact the Grantee’s local human resources representative.
16.Amendment and Delay to Meet the Requirements of Section 409A.  The Grantee acknowledges that the Company, in the exercise of its sole discretion and without the consent of the Grantee, may amend or modify this Agreement in any manner and delay the issuance of any Shares 

issuable pursuant to this Agreement to the minimum extent necessary to meet the requirements of Section 409A of the Code as amplified by any Treasury regulations or guidance from the Internal Revenue Service as the Company deems appropriate or advisable.  In addition, the Company makes no representation that the Award will comply with Section 409A of the Code and makes no undertaking to prevent Section 409A of the Code from applying to the Award or to mitigate its effects on any deferrals or payments made in respect of the Units.  The Grantee is encouraged to consult a tax adviser regarding the potential impact of Section 409A of the Code.

END OF AGREEMENTVENDOR
AGREEMENT

 

This
Vendor Agreement (the “Agreement”) is made effective as of the 1st day of April, 2018 (the “Effective Date”),
by and between Baker Hughes Oilfield Operations LLC, a California corporation, with a place of business at 9110 Grogans Mill Road,
The Woodlands, Texas 77380 (“Baker Hughes”) and Superior Drilling Solutions, LLC formerly known as Superior Drilling
Products, LLC, a Utah corporation, with its principal place of business at 1583 South 1700 East, Vernal, Utah 84078 (“Superior”).
Baker Hughes and Superior may be referred to herein collectively as the “Parties” or each singularly as a “Party”.

 

WITNESSETH:

 

WHEREAS,
Superior has certain expertise in the manufacture, repair and reconditioning of earth boring drill bits, core bits, eccentric
or bicenter bits, and concentric bits (the “Tools”) that employ polycrystalline diamond compact (PDC) cutters for
the oil and gas drilling industry (the “Work”);

 

WHEREAS,
Superior desires to continue to perform the Work for Baker Hughes and Baker Hughes desires to have Superior perform the Work;

 

NOW,
THEREFORE, the Parties hereby agree to the following terms and conditions governing the Work hereunder;

 

1.
Baker Hughes Purchases from Superior

 

1.1
Baker Hughes shall maintain a minimum of two hundred forty (240) repair activities per month (the “Minimum Threshold”).
Should activities decline below the Minimum Threshold, on average during any quarter, , the Parties will endeavor to identify
mutually agreeable alternate activities provided, however, that notwithstanding Section 2.1, Superior shall have the right to
terminate this Agreement with three (3) months written notice. Should market conditions deteriorate; the Minimum Threshold may
be reduced due to total repair volume reductions.

 

1.2.
The standard hours of work shall be in accordance with the standard hour schedule posted in SAP and on Exhibit A. Baker Hughes
shall bear all freight charges for shipping the bits to and from the Superior Facility where the Work is performed. Adjustments
to the standard schedule within SAP, outside a five percent (5%) variance, shall be agreed by the Parties.

 

1.3
Superior shall not be responsible for invoicing customers of Baker Hughes for any Work performed hereunder.

 

1.4
Terms of payment to Superior for the Work shall be found in Exhibit B.

 

1.5
Superior shall provide to Baker Hughes a weekly report describing the extent of the repair activity. Contents of the report will
be as defined by Baker Hughes.

 

2.
Term and Termination

 

2.1
The Term of this Agreement shall be for four (4) years from the Effective Date hereof (“Initial Term”). During the
Initial Term or subsequent annual renewals, this Agreement can be terminated by either Party with a six (6) month notice in writing
prior to such termination date.

 

2.2
Notwithstanding any other provision in this Agreement, during the Initial Term of this Agreement and during the term of any subsequent
renewal thereof, should the quality of the Work provided by Superior fall below the quality of Baker Hughes’ standards,
as reasonably determined by Baker Hughes, Baker Hughes shall advise Superior in writing of the problem and make recommendations
to correct the problem. If Superior does not correct the quality problem to Baker Hughes’ satisfaction within thirty (30)
days after notice from Baker Hughes, Baker Hughes shall have the right to immediately terminate this Agreement.

 

2.3
Following termination of this Agreement, for whatever reason, the parties will take such steps to ensure that property and Confidential
information is returned to its rightful owner and that neither Party is unduly disadvantaged. Any disputes arising will be resolved
in accordance with the provisions of Article 15.

 

2.4
Termination of this Agreement does not affect the terms and conditions of Articles 4, 5, 6, 8, 9, 13, 14, 15, 17, 18 and 19 of
this Agreement.

 

    	 	 	 

    	 

    

 

3.
Equipment and Training; Baker Hughes Security Interest

 

3.1
Baker Hughes will provide, at no cost to Superior, training and technical support to qualify and certify personnel of Superior
in Baker Hughes’ processes and shall be able to conduct periodic audits of Superior in order for Superior to maintain such
certification.

 

3.2
Baker Hughes will provide, at no cost to Superior, an inventory of PDC Cutters to be used in the performance of the Work to be
performed by Superior. Baker Hughes will also supply bit boxes and nozzles to Superior. Baker Hughes shall retain title to all
PDC Cutter inventories, new and used, and supply of bit boxes and nozzles. Baker Hughes will contact relevant vendors and request
that those vendors consider extending Baker Hughes’ pricing to Superior. No vendor’s decision regarding what pricing
to extend to Superior shall in any way affect the validity of this Agreement.

 

3.3
At the request of Baker Hughes, Superior will provide any necessary documentation, or assist Baker Hughes, with the filing of
appropriate documentation (e.g., UGC Financing Statements, etc.) required to establish and evidence the Baker Hughes title and
retained interest in the PDC Cutter inventories, new and used, and supply of bit boxes and nozzles inventory.

 

4.
Ownership of Work

 

4.1
Superior agrees all Work performed for Baker Hughes shall be the property of Baker Hughes. Notwithstanding the foregoing, Superior
understands and agrees that Superior is an independent contractor and controls and assumes full responsibility for all Work performed
under the Agreement. Superior further understands and acknowledges that Baker Hughes does not control the Work but is relying
on the skill and expertise of Superior in performing such Work.

 

4.2
Superior agrees that all programs, drawings, tracings, specifications, technical notations, calculations, data, memoranda, cutter
inventories, bit boxes, nozzles, notes and other information or material, including all copies and excerpts thereof, comprising
all or any part of the Work or containing information of the type set forth hereunder which (i) come into the possession and custody
of Superior’s employees or agents, or (ii) are prepared or compiled by Superior or any of its employees or agents at any
time during the term of this Agreement, shall be delivered to Baker Hughes upon request of Baker Hughes.

 

5.
Confidential information

 

5.1
The following is a definition of confidential information as used in the Agreement (“Confidential information”):

 

Confidential
information is highly sensitive, confidential information or other proprietary information, either written or oral, of Baker Hughes
or Superior. Such information may include, but is not limited to, ideas, concepts, research or development, development plans
for new or improved products or processes, data, formulae, techniques, designs, sketches know-how, photographs, plans, cutters,
cutter designs, nozzles, drawings, facts or knowledge concerning the processes, specifications, samples, test specimens, report.,
scientific studies or analyses, details of training methods, new products or new uses for old products, refining technology, merchandising
and selling techniques, contracts and licenses, purchasing, accounting, business systems and computer programs, long-range planning,
financial plans and results, pricing or price lists, and customer lists, findings, studies, inventions, designs, costs, strategic
and industry analyses, advertising and marketing plans and other information relating to the business of Baker Hughes or Superior
that is not generally available to the public. This list is merely illustrative and Confidential Information is not limited to
these illustrations.

 

5.2
Either Baker Hughes or Superior may disclose or exchange Confidential Information to the other Party (hereinafter the disclosing
Party is sometimes referred to as the “Discloser”). Either Baker Hughes or Superior may receive Confidential Information
from the other Party (hereinafter the receiving Party is sometimes referred to as the “Receiver”).

 

5.3
The Receiver hereby covenants and agrees that it shall not (either directly or indirectly) reveal or disclose or allow any Confidential
Information to be obtained by any other third party person, partnership, association, or corporation; it shall not use such information
for any purpose whatsoever without the prior written consent of Discloser, except as expressly contemplated by this Agreement;
it shall treat all such Confidential Information received from the Discloser as a trade secret proprietary in nature to the Discloser
and will use its best efforts to safeguard the secrecy of the Confidential Information.

 

    	 	 	 

    	 

    

 

5.4
Property in all Confidential Information shall remain vested in the Discloser and nothing in this Agreement shall be construed
as granting any rights of license to use or deal with the Confidential Information in any way other than permitted by this Agreement.
The Confidential Information and all copies or notes relating thereto will be returned by the Receiver immediately on the request
of the Discloser.

 

5.5
Nothing herein above contained shall deprive the Receiver the right to use or disclose any information:

 

	 	(a)	which
    is, at the time of disclosure, known to the trade or the public;
	 	 	 
	 	(b)	which
    becomes at a later date known to the trade or the public through no fault of the Receiver and then only after said later date;
	 	 	 
	 	(c)	which
    is possessed by the Receiver, as evidenced by written records, before receipt thereof from the Discloser;
	 	 	 
	 	(d)	which
    is disclosed to the Receiver in good faith by a third party who has an independent right to such information.
	 	 	 
	 	(e)	which
    is developed by employees of Receiver independently of any knowledge of the Confidential Information of Discloser.

 

5.6
Each Party hereto agrees that all Confidential Information furnished by the Discloser to the Receiver or which is developed by
one Party for the other whether taking place before, after or in contemplation of a Work Order or Purchase Order, will be Confidential
Information.

 

5.7
Upon termination, the Receiver shall remain obligated under the provisions of this Paragraph 5 to maintain the Confidential Information
of the Discloser and not use same for their own benefit or the benefit of third parties.

 

5.8
In the event that the Receiver or any of its Affiliates or Representatives become legally compelled (by deposition, interrogatory,
request for document, subpoena, civil investigative demand or similar process) to disclose any of such Confidential Information,
the Receiver shall provide the Discloser with prompt prior written notice of such requirement so that the Discloser may seek a
protective order or other appropriate remedy or waive compliance with the terms of this Agreement. In the event that such protective
order or other remedy is not obtained, or that the Discloser waives compliance with the provisions hereof, the Receiver agrees
to furnish only that portion of such Confidential Information that the Receiver is advised by written opinion of counsel is legally
required and to exercise its best efforts to obtain assurance that confidential treatment will be accorded such Confidential Information.

 

5.9
The Receiver of Confidential Information understands and agrees that the unauthorized use or disclosure of any Confidential Information
by Receiver and its employees or agents in violation of this Agreement may cause severe and irreparable damage to the Discloser
and agrees that money damages would not be a sufficient remedy for any breach of this Agreement. The Receiver understands and
agrees further that the Discloser is entitled and authorized, in the event of any breach of this Agreement, to seek a restraining
order and/or injunction from any competent court of equity to enjoin and restrain Receiver and its employees or agents from any
disclosure of proprietary and Confidential Information of the Discloser without the necessity of complying with the provisions
of Article 15 regarding resolution of disputes. Such equitable remedies shall be in addition to and not in lieu of any damages
to which the Discloser may be entitled by law. The Receiver shall notify the Discloser immediately, and cooperate with the Discloser,
upon the Receiver’s discovery of any loss or compromise of the Discloser’s Confidential Information.

 

6.
Patents, Trademarks, Copyrights and other Intellectual Property

 

6.1
Superior shall promptly and freely disclose to Baker Hughes any and all intellectual property, including conceptions, inventions,
improvements, suggestions for improvements and valuable discoveries, whether patentable or not, which are conceived or made by
Superior solely or jointly with another or others during the term of this Agreement and which are a derivative of Superior’s
Work on a Tool for Baker Hughes specifically under this Agreement or which Superior conceives solely as a result of the Work rendered
to Baker Hughes, and Superior hereby assigns, and agrees to assign, all interests and related rights therein to Baker Hughes or
its nominee. Superior understands and agrees that all copyrights, patents, trademarks, trade secrets or other intellectual property
rights associated with any ideas, concepts, techniques, inventions, processes, or works of authorship developed or created by
Superior or its personnel exclusively in or as a result of performing the Work for Baker Hughes’s shall belong exclusively
to Baker Hughes. Nothing herein contained shall be construed as granting or implying any right to Supplier under any intellectual
property rights of Baker Hughes, including Confidential Information, Letters Patent or trademark or copyright rights, or to use
any Confidential Information, any invention, mark or copyrighted work covered thereby except as expressly contemplated by this
Agreement.

 

    	 	 	 

    	 

    

 

6.2
Superior automatically assigns and shall cause his personnel automatically to assign, at the time of creation of the Work, without
any requirement of further consideration, any rights, title, or interest it or they may have in such intellectual property, including
any patents, copyrights, or any other intellectual property rights pertaining thereto. Upon request above by Baker Hughes, Superior
shall take such further actions, and shall cause its personnel to take such further actions, including execution and delivery
of instruments of conveyance which Baker Hughes shall deem necessary to be executed in order to apply for and obtain patents,
copyrights, or other intellectual property protection in the United States or any foreign country, or to protect otherwise Baker
Hughes’s interest therein

 

7.
Warranties

 

In
the event that Superior’s Work fails to conform to the specifications of Baker Hughes set forth in the relevant scope of
work document, then as Baker Hughes’ sole remedy for such nonconformance, Superior shall repair or replace such defective
Work brought to Superior’s attention by Baker Hughes within a period of six (6) months from delivery of any equipment or
date of first use, whichever is earlier. Except as otherwise provided in this Paragraph, Superior makes no warranty, either express
or implied (including without limitation, implied warranties of merchantability or fitness for a particular purpose). Notwithstanding
anything to the contrary in the Agreement, Superior’s warranty obligations are strictly limited to the reperformance of
any Work once any defective or non-conforming Tool has been delivered to Superior’s designated facility.

 

8.
Indemnity

 

8.1
SUPERIOR HEREBY INDEMNIFIES, DEFENDS AND AGREES TO HOLD BAKER HUGHES, AND BAKER HUGHES’S PARENT, SUBSIDIARY AND AFFILIATED
COMPANIES, AND ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, REPRESENTATIVES OR INVITEES (COLLECTIVELY, “BAKER
HUGHES GROUP”) HARMLESS AGAINST ANY AND ALL CLAIMS, JUDGMENTS, SETTLEMENTS, FINES, PENALTIES, EXPENSES (INCLUDING BUT NOT
LIMITED TO ATTORNEY FEES AND COURT COSTS), COSTS AND LIABILITIES AS A RESULT OF OR RELATING TO PERSONAL INJURY, BODILY INJURY,
ILLNESS, DEATH OR DESTRUCTION OR LOSS OF PROPERTY OR ANY OTHER THEORY OF LOSS OR LIABILITY (COLLECTIVELY, “CLAIMS”)
ARISING FROM OR RELATING TO THE NEGLIGENCE, ACTIONS, OMISSIONS, STRICT LIABILITY, PRODUCTS LIABILITY OR OTHER FAULT OR RESPONSIBILITY
OF SUPERIOR, OR ARISING FROM OR RELATING TO, DIRECTLY OR INDIRECTLY FROM, SUPERIOR’S PERFORMANCE, THE SUBJECT MATTER OR
BREACH OF THIS AGREEMENT, OR FROM ANY CLAIMS RELATING TO INFRINGEMENT, THEFT OR UNAUTHORIZED USE OF ANY PATENTS, COPYRIGHTS, TRADEMARKS,
TRADE SECRETS OR INTELLECTUAL PROPERTY OR PROPRIETARY RIGHTS OF ANY PERSON. IN ADDITION, SUPERIOR SHALL INDEMNIFY, RELEASE, DEFEND
AND HOLD BAKER HUGHES AND THE OTHER MEMBERS OF THE BAKER HUGHES GROUP HARMLESS FROM ANY CLAIMS (AS DEFINED ABOVE) ASSERTED BY
(ON BEHALF OF), ARISING IN FAVOR OF OR RELATING TO ANY EMPLOYEES, AGENTS, REPRESENTATIVES OR INVITEES OF SUPERIOR, (AND RELATING
TO BAKER HUGHES, WITH REGARD TO SUPERIOR’S OWN PROPERTY OR LOSSES), REGARDLESS OF THE NEGLIGENCE, STRICT LIABILITY, BREACH
OF CONTRACT, PREMISES LIABILITY, PRODUCTS LIABILITY OR OTHER FAULT OR RESPONSIBILITY OF SUPERIOR, BAKER HUGHES, ANY OTHER MEMBER
OF BAKER HUGHES GROUP OR ANY OTHER PERSON OR PARTY. THIS INDEMNITY SHALL BE BINDING UPON THE SUCCESSORS, ASSIGNS AND HEIRS OF
SUPERIOR.

 

8.2
BAKER HUGHES HEREBY INDEMNIFIES, DEFENDS AND AGREES TO HOLD SUPERIOR, AND SUPERIOR’S PARENT, SUBSIDIARY AND AFFILIATED COMPANIES,
AND ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, REPRESENTATIVES OR INVITEES (COLLECTIVELY, “SUPERIOR
GROUP”) HARMLESS AGAINST ANY AND ALL CLAIMS, JUDGMENTS, SETTLEMENTS, FINES, PENALTIES, EXPENSES (INCLUDING BUT NOT LIMITED
TO ATTORNEY FEES AND COURT COSTS), COSTS AND LIABILITIES AS A RESULT OF OR RELATING TO PERSONAL INJURY, BODILY INJURY, ILLNESS,
DEATH OR DESTRUCTION OR LOSS OF PROPERTY OR ANY OTHER THEORY OF LOSS OR LIABILITY (COLLECTIVELY, “CLAIMS”) ARISING
FROM OR RELATING TO THE NEGLIGENCE, ACTIONS, OMISSIONS, STRICT LIABILITY, PRODUCTS LIABILITY OR OTHER FAULT OR RESPONSIBILITY
OF BAKER HUGHES, OR ARISING FROM OR RELATING TO, DIRECTLY OR INDIRECTLY FROM, BAKER HUGHES’S PERFORMANCE, THE SUBJECT MATTER
OR BREACH OF THIS AGREEMENT, OR FROM ANY CLAIMS RELATING TO INFRINGEMENT, THEFT OR UNAUTHORIZED USE OF ANY PATENTS, COPYRIGHTS,
TRADEMARKS, TRADE SECRETS OR INTELLECTUAL PROPERTY OR PROPRIETARY RIGHTS OF ANY PERSON. IN ADDITION, BAKER HUGHES SHALL INDEMNIFY,
RELEASE, DEFEND AND HOLD SUPERIOR AND THE OTHER MEMBERS OF THE SUPERIOR GROUP HARMLESS FROM ANY CLAIMS (AS DEFINED ABOVE) ASSERTED
BY (ON BEHALF OF), ARISING IN FAVOR OF OR RELATING TO ANY EMPLOYEES, AGENTS, REPRESENTATIVES OR INVITEES OF BAKER HUGHES, (AND
RELATING TO SUPERIOR, WITH REGARD TO BAKER HUGHES’S OWN PROPERTY OR LOSSES), REGARDLESS OF THE NEGLIGENCE, STRICT LIABILITY,
BREACH OF CONTRACT, PREMISES LIABILITY, PRODUCTS LIABILITY OR OTHER FAULT OR RESPONSIBILITY OF BAKER HUGHES, SUPERIOR, ANY OTHER
MEMBER OF SUPERIOR GROUP OR ANY OTHER PERSON OR PARTY, THIS INDEMNITY SHALL BE BINDING UPON THE SUCCESSORS, ASSIGNS AND HEIRS
OF BAKER HUGHES.

 

    	 	 	 

    	 

    

 

9.
Non-competition

 

9.1
Superior agrees that during the term of this Agreement, Superior will not perform the Work for any party other than Baker Hughes.

 

9.2
Superior may engage in other activity not related to or in competition with the business of Baker Hughes to the extent that such
other activity shall not be considered a breach of this Agreement. If Superior is already in a line of business or developing
products that Baker Hughes is also in or Baker Hughes later enters, Superior shall be permitted to operate such business line
without any restriction. If a court of competent jurisdiction concludes that the parameters of this restrictive covenant are over-broad
and thereby unenforceable, the parties agree that the court may reform the parameters so as to make the agreement enforceable.

 

10.
Insurance

 

10.1
At all times when Superior is performing Work pursuant to this Agreement, Superior agrees to procure and maintain and Superior
agrees to have its agents, contractors or subcontractors maintain, the following insurance coverages:

 

	 	(a)	Commercial
    General Liability covering bodily injury and property damage with a limit of not less than $2,000,000 for each occurrence;
	 	 	 
	 	(b)	Workers’
    Compensation insurance (or maintenance of a legally permitted and governmentally approved program of self-insurance) covering
    Superior’s employees pursuant to applicable state workers’ compensation laws for work related injuries suffered
    by employees of Superior; and
	 	 	 
	 	(c)	Employers
    Liability insurance with limits of not less than $1,000,000 for each accident.

 

10.2
Superior agrees to provide Baker Hughes with a Certificate of Insurance evidencing that the above coverages are in full force
and effect.

 

10.3
To the extent of the indemnity and release obligations expressly assumed by Superior hereunder, Superior agrees that all insurance
policies it carries: (i) will be primary to Baker Hughes Group’s insurance, (ii) will name Baker Hughes Group as an additional
insured party (only on the Commercial General Liability policy described above), and (iii) be endorsed to waive subrogation against
Baker Hughes Group.

 

11.
Compliance with Laws

 

Each
Party represents, warrants and covenants that all work performed hereunder shall be conducted in accordance with all applicable
governmental safety regulations, standards, procedures and precautions, and that in connection therewith it employs all necessary
or required protective equipment and devices. Each Party agrees to abide by and be bound under the other Party’s policies
governing the conduct and safety of personnel having access to the other Party’s facilities or its customers facilities,
including without limitation, the other Party’s policies regarding illegal and unauthorized articles, and drug and alcohol
policies, but shall have no responsibility for the adequacy of such policies; provided that only such policies of a Party provided
to the other Party in writing shall be applicable to the other Party, and in the absence of such written policies, the other Party
shall be required to comply with its own policies and the highest industry and HSE standards governing the matters listed above.
Without limiting the generality of the foregoing, Superior agrees to notify Baker Hughes in writing in the event that Superior
discovers any hazardous materials in connection with performing the Work hereunder

 

    	 	 	 

    	 

    

 

12.
Notices

 

All
notices, authorizations and requests in connection with this Agreement shall be deemed given on the day they are (i) deposited
in the mail, postage prepaid, certified or registered, return receipt requested; (ii) sent by air express courier (e.g., DHL,
Federal Express or Airborne), charges prepaid, return receipt requested, and addressed as set forth below or (iii) on the business
day after delivery if notice is given by email of a PDF document (with confirmation of transmission):

 

	Superior:	Superior
    Drilling Products, LLC
	 	P.O.
    Box 1656
	 	Vernal,
    UT 84078
	 	telephone:
    435.789.0594
	 	e-mail:
    annette@teamsdp.com
	 	Attn:
    Annette Meier, President
	 	 
	Baker
    Hughes:	Baker
    Hughes Oilfield Operations LLC 
	 	9110
    Grogans Mill Road
	 	The
    Woodlands, TX 77380 
	 	telephone:
    281.363.6934
	 	e-mail:
    doug.brewer@bakerhughes.com
	 	Attn:
    Doug Brewer, AMO Manager

 

13.
Consequential Damages and Maximum Liability

 

13.1
Consequential Damages. EXCEPT WITH REGARD TO A BREACH BY SUPERIOR OR BAKER HUGHES WITH RESPECT TO PARAGRAPHS 5 OR 6 BUT NOTWITHSTANDING
ANYTHING CONTAINED IN THIS AGREEMENT TO THE CONTRARY, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR AND EACH PARTY HEREBY AGREES
TO RELEASE, INDEMNIFY, DEFEND, AND HOLD HARMLESS THE OTHER PARTY’S GROUP (AS DEFINED IN ARTICLE 8) FROM AND AGAINST ANY
AND ALL CLAIMS ASSERTED BY OR IN FAVOR OF ANY MEMBER OF THE INDEMNIFYING PARTY’S GROUP FOR INDIRECT, SPECIAL, PUNITIVE,
EXEMPLARY OR CONSEQUENTIAL DAMAGES, INCLUDING, BUT NOT LIMITED TO, DAMAGES FOR LOST PRODUCTION, LOST REVENUE, LOST PRODUCT, LOST
PROFITS OR LOST BUSINESS OR BUSINESS INTERRUPTIONS, FROM ANY CAUSE WHATSOEVER, INCLUDING, BUT NOT LIMITED TO, THE NEGLIGENCE OR
BREACH OF DUTY (STATUTORY OR OTHERWISE), STRICT LIABILITY, PRODUCT LIABILITY OR OTHER FAULT OR RESPONSIBILITY OF EITHER PARTY
OR ANY MEMBER OF ITS GROUP, AND EACH PARTY HEREBY RELEASES THE OTHER IN THIS REGARD.

 

13.2
Maximum Liability. EXCEPT FOR OBLIGATIONS TO MAKE PAYMENT UNDER THIS AGREEMENT, LIABILITY FOR INDEMNIFICATION IN SECTIONS 8 OR
13.1, LIABILITY FOR BREACH OF CONFIDENTIALITY, OR LIABILITY FOR INFRINGEMENT OR MISAPPROPRIATION OF INTELLECTUAL PROPERTY RIGHTS,
IN NO EVENT SHALL CONTRACTOR’S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO ANY ORDER ISSUED PURSUANT TO THIS AGREEMENT,
WHETHER ARISING OUT OF OR RELATED TO BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE OF ANY KIND) OR OTHERWISE, EXCEED $1,000,000
USD.

 

14.
Ancillary Provisions

 

14.1
No waiver, modification or amendment of any term, condition or provision of this Agreement nor any addition thereto shall be valid
or of any force or effect unless made in writing and signed by an authorized representative of the Parties.

 

14.2
Superior shall not assign this Agreement without prior written approval of Baker Hughes. Any attempt to so assign shall be void.
Assignment without such approval shall not operate to relieve Superior of any of its obligations under this Agreement.

 

14.3
Superior is and shall remain an independent contractor in its performance of this Agreement. Notwithstanding anything herein that
may be construed to the contrary, this Agreement shall not constitute, create, or in any way be interpreted as, a joint venture,
partnership or formal business organization of any kind and nothing contained in this Agreement shall be construed as establishing
any joint obligations between the parties. Each Party hereto retains the right to conduct its own business as it sees fit and
each Party shall act as an independent contractor of the other and shall not, except as specifically authorized hereunder, act
as an agent or representative of the other Party for any purpose whatsoever. Except as expressly provided herein, (a) no Party
shall have the authority to bind the other Party or make any commitment or incur any costs or expenses for or in the name of the
other Party, and (b) no Party hereto shall be responsible in any way for any obligation or liability incurred or assumed by any
other Party. None of the parties’ employees shall be deemed to be the employees or servants of the other Party for any purpose.
No Party shall have any fiduciary duty to the other, no special relationship between the parties shall be deemed to exist, and
no duties not specifically set forth in this Agreement shall exist.

 

14.4
This Agreement shall be interpreted under the laws of the State of Texas, excluding conflicts of law and choice of law statutes.

 

    	 	 	 

    	 

    

 

14.5
If any provision of this Agreement shall be held by a court of competent jurisdiction to be illegal, invalid or unenforceable,
the remaining provisions shall remain in full force and effect. No waiver of any breach of any provision of this Agreement shall
constitute a waiver of any other breach of the same or any other provisions hereof, and no waiver shall be effective unless made
in wilting and signed by an authorized representative of the waiving Party.

 

14.6
Neither Party shall be responsible for any failure or delay in complying with the terms of this Agreement where such failure or
delay is due to causes beyond its reasonable control. These causes shall include, but not be restricted to, fire, storm, flood,
earthquake, explosion, accident, acts of the public enemy, war, rebellion, insurrection, sabotage, epidemic, quarantine restrictions,
labor disputes, labor shortages, transportation embargoes or failures or delays in transportation, inability to secure necessary
raw materials or machinery, acts of God, acts of any government, whether national, municipal or otherwise, or any agency thereof,
and judicial action. The Party so affected by the force majeure shall notify the other Party as soon as practicable of its existence.
The parties shall then meet and endeavor to alleviate the effect and extent thereof. If the force majeure persists for a period
in excess of 180 days either Party may terminate this Agreement by giving the other Party 90 days’ written notice thereof.

 

14.7
This Agreement, including any and all Schedules attached hereto, constitute the entire agreement between the parties with respect
to the subject matter of this Agreement and supersede all previous agreements and understandings, whether oral or written, express
or implied. The Parties specifically intend to replace and supersede the previous Vendor Agreement between Baker Hughes and Superior,
dated October 28, 2013 as amended by that certain Amendment No. 1 to the Vendor Agreement dated effective as of September 28,
2015 and terminated effective as of the Effective Date. To the extent the terms and conditions of this Agreement are in conflict
with any terms or conditions in any Schedule, Confidentiality Agreement, work order, proposal, purchase order, invoice or other
terms and conditions in any other document, the terms and conditions of this Agreement shall control. This Agreement may not be
altered, amended, or modified except by written instrument signed by the duly authorized representatives of all parties. The terms
on any Work Order, Purchase Order or other form submitted by Superior to Baker Hughes shall not apply to this Agreement.

 

15.
Conciliation/Arbitration

 

15.1
Any disputes, claims or controversies connected with, arising out of, or related to, this Agreement and the rights and obligations
created herein, or the breach, validity, existence or termination hereof (the ‘Dispute”), shall first be submitted
to the respective representatives of the parties for resolution. If those designated representatives are unable to resolve such
dispute, claim or controversy within thirty (30) days of such submission, the dispute, claim or controversy shall then be submitted
to the Presidents of the respective parties for resolution. If the respective Presidents of the parties are unable to resolve
such dispute, claim or controversy within thirty (30) days of submission, the dispute, claim or controversy shall then be submitted
to mandatory, binding arbitration in accordance with Clause 15.2 below.

 

15.2
Any Dispute arising out of or connected with this Agreement which cannot be resolved utilizing the procedures set forth In Clause
15.1 above, shall be referred to and finally resolved by arbitration. Upon notice by either Party to the other, all disputes,
claims, questions, or differences (including issues relating to the formation of the agreement and the validity of this arbitration
clause) shall be finally settled by binding arbitration administered by the American Arbitration Association (“AAA”)
in accordance with the provisions of its Commercial Arbitration Rules, as well as the Federal Rules of Civil Procedure and the
Federal Rules of Evidence, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction
thereof.

 

15.3
The arbitration Panel shall consist of a single arbitrator, unless otherwise agreed to by the parties. The place of arbitration
shall be Houston, Texas. If the parties are not able to decide upon a neutral third party arbitrator within thirty (30) days of
the request for arbitration, then the AAA shall select an arbitrator having at least twenty (20) years of experience in intellectual
property matters. All proceedings will be conducted in English.

 

The
parties agree to hold the entirety of the arbitration proceedings, including knowledge of the existence of any dispute or controversy,
completely confidential except for such disclosures as might be required by law

 

This
arbitration agreement does not limit or affect the right of either Party to seek from any court having jurisdiction any interim,
interlocutory, or provisional relief that is necessary to protect the rights or property of that Party. Alternatively, either
Party may apply to the AAA pursuant to the AAA Optional Rules for Emergency Measures seeking injunctive relief until the arbitration
award is rendered or the controversy is otherwise resolved.

 

    	 	 	 

    	 

    

 

16.
Power and Authority

 

Each
Party hereto represents that it has full power and authority (corporate or otherwise) to execute this Agreement and bind the Party
on whose behalf it is signing.

 

17.
Multiple Counterparts

 

This
Agreement may be executed in any number of counterparts (including by electronic delivery of signed signature pages) and by different
Parties in separate counterparts, each of which counterparts, when so executed and delivered, will be deemed to be an original
and all of which counterparts, taken together, will constitute but one and the same agreement.

 

18.
Drafting

 

Both
Parties hereto acknowledge that each Party was actively involved in the negotiation and drafting of this Agreement and that no
law or rule of construction shall be raised or used in which the provisions of this Agreement shall be construed in favor or against
either Party hereto because one is deemed to be the author thereof.

 

19.
Prevailing Party

 

If
any legal action or other proceeding is brought for the enforcement of this Agreement or any document executed in connection with,
or because of an alleged dispute, breach, default or misrepresentation in connection with any of the provisions of this Agreement
or any document, instrument or agreement executed in connection herewith, the successful prevailing Party shall be entitled to
recover reasonable attorney’s fees, court costs and all other costs and expenses incurred in that action or proceeding from
the non-prevailing Party.

 

SIGNATURES
ON FOLLOWING PAGE

 

    	 	 	 

    	 

    

 

IN
WITNESS WHEREOF, this Agreement has been executed on behalf of each Party as of the day and year set forth at its beginning.

 

	 	SUPERIOR
    DRILLING PRODUCTS, LLC
	 	 	 
	 	By	/s/
    Annette Meier
	 	Title	President
	 	 	 
	 	BAKER
    HUGHES OILFIELD OPERATIONS LLC
	 	 	 
	 	By	/s/
    Scott Schmidt
	 	Title	Vice
    President – Drill Bits

 

    	 	 	 

    	 

    

 

EXHIBIT
A

 

Superior’s
hourly rate will be $+++.

 

The
Baker Hughes USL standard hour rate is adjusted based on a balance sheet calculation maintaining a cost neutral P&L for USL
AMO. 

 

Repair
Charge Example

 

	Inspection Fee:	 	All Sized	 	$+++	 	+++ Hours
	 	 	 	 	 	 	 
	Setup Charges:	 	‹ 9”	 	$+++	 	+++ Hours
	 	 	‹ 13”	 	$+++	 	+++ Hours
	 	 	‹ 18”	 	$+++	 	+++ Hours
	 	 	 	 	 	 	 
	Cutter Rotation:	 	3/8	 	$+++	 	+++ Hours
	 	 	1/2	 	$+++	 	+++ Hours
	 	 	5/8 & 3/4	 	$+++	 	+++ Hours
	 	 	 	 	 	 	 
	Cutter Replacement:	 	3/8	 	$+++	 	+++ Hours
	 	 	1/2	 	$+++	 	+++ Hours
	 	 	5/8 & 3/4	 	$+++	 	+++ Hours
	 	 	 	 	 	 	 
	Pocket Repair:	 	3/8	 	$+++	 	+++ Hours
	 	 	1/2	 	$+++	 	+++ Hours
	 	 	5/8 & 3/4	 	$+++	 	+++ Hours
	 	 	 	 	 	 	 
	Box Prep:	 	 	 	$+++	 	+++ Hours
	 	 	 	 	 	 	 
	Used Reclaimed Nozzles:	 	 	 	All sizes	 	$+++/each
	 	 	 	 	 	 	 
	Used Reclaimed Cutters:	 	 	 	All Sizes	 	$+++/each
	 	 	 	 	 	 	 
	Shop Rate:	 	Per Hour	 	$ +++	 	 

 

+++
This information has been omitted in reliance upon Rule 24b-2 under the Securities Exchange Act of 1934, as amended, and has been
filed separately with the Securities and Exchange Commission.

 

    	 	 	 

    	 

    

 

EXHIBIT
B

 

Terms
of payment to Superior for the Work shall be the GE Accelerated Payment Program with details found in Addendum to Purchase Orders
with Superior Drilling Solutions, LLC.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00283-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00283-of-00352.parquet"}]]