Document:

Exhibit 10.1

 

SEPARATION AGREEMENT AND RELEASE

 

This SEPARATION AGREEMENT
AND RELEASE (this “Agreement”) is entered into by and between ProPetro Holding Corp., a Delaware corporation
(the “Company”), and Darin G. Holderness (“Holderness”). Holderness and the
Company are sometimes referred to herein individually as a “Party” and collectively as the “Parties.”

 

WHEREAS, Holderness
has resigned from his position as the Company’s Chief Financial Officer and an executive officer of the Company, effective
as of October 23, 2020 (the “Resignation Date”) and will resign his employment with the Company effective
as of October 30, 2020 provided, however, that either the Company or Holderness may elect an earlier separation date
(the actual date on which Holderness experiences a separation from service with the Company, the “Separation Date”);

 

WHEREAS, the Parties
wish for Holderness to receive certain compensation in connection with his separation as set forth in this Agreement, which compensation
is conditioned upon Holderness’s timely execution of and compliance with the terms of this Agreement and Holderness’s
timely execution and delivery of the Confirming Release (as defined below); and

 

WHEREAS, the Parties
wish to resolve any and all claims or causes of action that the Parties have or may have against each other, including any claims
or causes of action that Holderness may have arising out of Holderness’s employment or end of such employment.

 

NOW, THEREFORE, in
consideration of the promises and benefits set forth herein, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged by Holderness and the Company, the Parties agree as follows:

 

1.                 
Transition Assistance, Separation from Employment; Deemed Resignations.

 

(a)              
Between the Resignation Date and the Separation Date, Holderness shall (i) remain employed by the Company and (ii) continue
to receive his base salary and be eligible for other benefits for which he is eligible as of the Resignation Date. Notwithstanding
anything in the foregoing sentence to the contrary, Holderness shall be removed as a participant in the ProPetro Services, Inc.
Amended and Restated Executive Severance Plan (the “Executive Severance Plan”), effective as of the Resignation
Date.

 

(b)              
Between the Resignation Date and the Separation Date, Holderness will perform reduced or otherwise modified duties as may
be requested by the Company’s Chief Executive Officer and Chairman of the board of directors of the Company (the “Board”)
or the Chief Financial Officer of the Company. During such time, Holderness shall serve as the Special Advisor to the Chief Financial
Officer and assist the Company in transitioning his duties and knowledge regarding the business and operations of the Company or
any other Company Party (as defined below) to the Company’s Chief Financial Officer.

 

(c)               The
Parties acknowledge and agree that as of the Separation Date, Holderness will no longer be employed by the Company or any
other Company Party. The Parties further acknowledge and agree that, as of the Resignation Date, Holderness will
automatically be deemed to have resigned, to the extent applicable, (i) as an officer of the Company and each of its
Affiliates (as defined below) for which Holderness served as an officer, (ii) from the board of directors or board of
managers (or similar governing body) of the Company and each of its Affiliates for which Holderness served as a director or
manager, and (iii) from the board of directors or board of managers (or similar governing body) of any corporation, limited
liability entity, unlimited liability entity, or other entity in which the Company or any of its Affiliates holds an equity
interest and with respect to which board of directors or board of managers (or similar governing body) Holderness served as
the Company’s or such other subsidiary’s member’s designee or other representative.

 

     

     

    

 

2.                 
Separation Payment. Provided that Holderness (x) executes this Agreement and returns a signed copy of it to
the Company, care of Newton W. “Trey” Wilson III, ProPetro Holding Corp., 1706 S. Midkiff, Bldg. B, Midland, Texas
79701 (e-mail: trey.wilson@propetroservices.com), so that it is received no earlier than the Resignation Date and no later than
the close of business on October 30, 2020, and it is not subsequently revoked by Holderness in accordance with Section 5 and (y)
in accordance with Section 22, returns to the Company a copy of the Confirming Release that has been signed by him no earlier than
the Separation Date and no later than the close of business on the date that is twenty-one (21) days after Holderness receives
this Agreement and the Confirming Release, and it is not subsequently revoked by Holderness in accordance with Section 7 of the
Confirming Release, and (z) satisfies the other terms and conditions set forth in this Agreement, Holderness shall receive the
following consideration:

 

(a)              
As of the Separation Date, (i) all restricted stock units granted on October 7, 2019 that remain outstanding and unvested
as of the Separation Date (9,702 restricted stock units) and all 41,797 restricted stock units granted on February 11, 2020, in
each case, to Holderness under the ProPetro Holding Corp. 2017 Incentive Award Plan (the “Incentive Plan”)
and outstanding as of the Separation Date (collectively, the “RSUs”) will become immediately fully vested
and will be settled upon the earlier to occur of (x) the six month anniversary of the Separation Date and (y) Holderness’
death and (ii) the 14,552 target number of performance restricted stock units originally granted on October 7, 2019 and cancelled
and regranted on June 4, 2020 and the 62,695 target number of performance restricted stock units originally granted on February
11, 2020 and cancelled and regranted on June 4, 2020, in each case, to Holderness under the Incentive Plan and outstanding as of
the Separation Date (collectively, the “PSUs”) will become immediately fully vested with respect to the
service component of the vesting requirement for such awards but will remain outstanding and the number of PSUs that actually vest
(i.e., between 0% and 200% of such target number) will be determined based on the Company’s actual performance as compared
to the performance metrics outlined in the applicable award agreement over the relevant performance period and such vested PSUs,
if any, shall be settled at the time originally specified in the applicable award agreement.

 

Holderness acknowledges
and agrees that the consideration described in this Section 2 represents the entirety of the amounts Holderness is eligible to
receive as severance pay from the Company or any other Company Party, including under the Incentive Plan and the Executive Severance
Plan. Holderness acknowledges that he is aware of the ongoing obligations he may have under the Company’s Insider Trading
Policy, applicable securities laws and any other applicable requirements related to any trading in the Company’s securities.

 

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3.                 
Complete Release of Claims.

 

(a)              
In exchange for the consideration received by Holderness herein, a portion of which consideration Holderness was not entitled
to but for Holderness’s entry into this Agreement and the Confirming Release, Holderness hereby releases, discharges and
forever acquits the Company and its Affiliates (as defined below) and subsidiaries, and each of the foregoing entities’ respective
past, present and future members, partners (including general partners and limited partners), directors, trustees, officers, managers,
employees, agents, attorneys, heirs, legal representatives, insurers, benefit plans (and their fiduciaries, administrators and
trustees), and the successors and assigns of the foregoing, in their personal and representative capacities (collectively, the
 “Company Parties”), from liability for, and hereby waives, any and all claims, damages, or causes of
action of any kind related to Holderness’ ownership of any interest in any Company Party, Holderness’s employment with
any Company Party, the termination of such employment, and any other acts or omissions related to any matter occurring on or prior
to the date that Holderness executes this Agreement, including (i) any alleged violation through such date of: (A) any federal,
state or local anti-discrimination law or anti-retaliation law, regulation or ordinance including Title VII of the Civil Rights
Act of 1964, as amended, the Civil Rights Act of 1991, Sections 1981 through 1988 of Title 42 of the United States Code, as amended
and the Americans with Disabilities Act of 1990, as amended; (B) the Employee Retirement Income Security Act of 1974, as amended;
(C) the Immigration Reform Control Act, as amended; (D) the National Labor Relations Act, as amended; (E) the Occupational Safety
and Health Act, as amended; (F) the Family and Medical Leave Act of 1993; (G) the Texas Labor Code (specifically including the
Texas Payday Law, the Texas Anti-Retaliation Act, Chapter 21 of the Texas Labor Code, and the Texas Whistleblower Act); (H) any
federal, state or local wage and hour law; (I) the Age Discrimination in Employment Act of 1967, as amended; (J) any other local,
state or federal law, regulation or ordinance; or (K) any public policy, contract, tort, or common law claim; (ii) any allegation
for costs, fees, or other expenses including attorneys’ fees incurred in or with respect to a Released Claim; (iii) any and
all rights, benefits or claims Holderness may have under any employment contract, severance plan, incentive compensation plan,
or equity based plan with any Company Party (including any award agreement) or to any ownership interest in any Company Party;
and (iv) any claim for compensation or benefits of any kind not expressly set forth in this Agreement (collectively, the “Released
Claims”). This Agreement is not intended to indicate that any such claims exist or that, if they do exist, they are
meritorious. Rather, Holderness is simply agreeing that, in exchange for any consideration received by him pursuant to Section
2, any and all potential claims of this nature that Holderness may have against the Company Parties, regardless of whether they
actually exist, are expressly settled, compromised and waived. Notwithstanding the foregoing, the Released Claims do not include
(I) any rights to indemnification, advancement of expenses incurred in connection with the same, or directors’ and officers’
liability insurance coverage that Holderness has under Delaware law, the charter, bylaws, other organizational documents and insurance
policies of any Company Party or any agreement with any Company Party; and (II) any rights to enforce the terms of this Agreement,
including those in Section 2(a) of this Agreement related to incentive compensation and equity. THIS RELEASE INCLUDES MATTERS
ATTRIBUTABLE TO THE SOLE OR PARTIAL NEGLIGENCE (WHETHER GROSS OR SIMPLE) OR OTHER FAULT, INCLUDING STRICT LIABILITY, OF ANY OF
THE COMPANY PARTIES.

 

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For purposes of this
Agreement, “Affiliate” shall mean, with respect to any Person (as defined below), any other Person directly
or indirectly controlling, controlled by, or under common control with, such Person where “control” shall have the
meaning given such term under Rule 405 of the Securities Act of 1933, as amended from time to time. For purposes of this Agreement,
 “Person” shall mean any individual, natural person, corporation (including any non-profit corporation),
general partnership, limited partnership, limited liability partnership, joint venture, estate, trust, company (including any company
limited by shares, limited liability company, or joint stock company), incorporated or unincorporated association, governmental
authority, firm, society or other enterprise, organization, or other entity of any nature.

 

(b)              
Notwithstanding this release of liability, nothing in this Agreement prevents Holderness from filing any non-legally waivable
claim (including a challenge to the validity of this Agreement) with the Equal Employment Opportunity Commission (“EEOC”)
or comparable state or local agency or participating in (or cooperating with) any investigation or proceeding conducted by the
EEOC or comparable state or local agency or cooperating in any such investigation or proceeding; however, Holderness understands
and agrees that Holderness is waiving any and all rights to recover any monetary or personal relief or recovery from a Company
Party as a result of such EEOC or comparable state or local agency or proceeding or subsequent legal actions. Further, nothing
in this Agreement prohibits or restricts Holderness from filing a charge or complaint with, or cooperating in any investigation
with, the Securities and Exchange Commission, the Financial Industry Regulatory Authority, or any other securities regulatory agency
or authority (each, a “Government Agency”). This Agreement does not limit Holderness’s right to
receive an award for information provided to a Government Agency. Further, in no event shall the Released Claims include (i) any
claim which arises after the date that this Agreement is executed by Holderness or (ii) any claim to vested benefits under an employee
benefit plan. Finally, the Released Claims shall not include the Company’s obligations or Holderness’s rights under
the Indemnification Agreement dated October 4, 2019 between the Company and Holderness, which shall continue in full force and
effect notwithstanding the execution of this Agreement.

 

(c)              
Holderness hereby represents and warrants that, as of the time Holderness executes this Agreement, Holderness has not brought
or joined any lawsuit or filed any charge or claim against any of the Company Parties in any court or before any Government Agency
or arbitrator for or with respect to a matter, claim, or incident that occurred or arose out of one or more occurrences that took
place on or prior to the time at which Holderness signs this Agreement. Holderness warrants and represents that (i) he is the sole
owner of each and every claim, cause of action, and right compromised, settled, released or assigned pursuant to Section 3 of this
Agreement and has not previously assigned, sold, transferred, conveyed, or encumbered same; (ii) he has the full right, power,
capacity, and authority to enter into and execute this Agreement; and (iii) he fully understands this Agreement releases any and
all past claims regardless of whether he is now aware of such claims.

 

4.                 
Holderness’s Representations.

 

(a)              
Holderness represents that Holderness has received all leaves (paid and unpaid) that Holderness was owed or could be owed
by the Company as of the date that Holderness executes this Agreement.

 

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(b)              
 By executing and delivering this Agreement, Holderness expressly acknowledges that:

 

(i)             Holderness has carefully read this Agreement;

 

(ii)            No material changes have been made to this Agreement since it was first provided to Holderness and Holderness has had at
least 21 days to consider this Agreement before the execution and delivery hereof to Company;

 

(iii)           Holderness is receiving, pursuant to this Agreement, consideration in addition to anything of value to which he is already
entitled, and Holderness is not otherwise entitled to such additional consideration as set forth in this Agreement, but for his
entry into this Agreement and his entry into the Confirming Release;

 

(iv)           Holderness
has been advised, and hereby is advised in writing, to discuss this Agreement with an attorney of Holderness’s choice and
Holderness has had an adequate opportunity to do so prior to executing this Agreement;

 

(v)            Holderness fully understands the final and binding effect of this Agreement; the only promises made to Holderness to sign
this Agreement are those stated herein; and Holderness is signing this Agreement knowingly, voluntarily and of Holderness’s
own free will, and that Holderness understands and agrees to each of the terms of this Agreement;

 

(vi)           The only matters relied upon by Holderness and causing Holderness to sign this Agreement are the provisions set forth in
writing within the four corners of this Agreement; and

 

(vii)          No Company Party has provided any tax or legal advice regarding this Agreement and Holderness has had an adequate opportunity
to receive sufficient tax and legal advice from advisors of Holderness’s own choosing such that Holderness enters into this
Agreement with full understanding of the tax and legal implications thereof.

 

(c)              
Other than matters previously disclosed to the Board and outside auditors, Holderness is not aware of any material act or
omission on the part of any Company employee (including Holderness), director or agent that may have violated any applicable law
or regulation or otherwise exposed the Company or any other Company Party to any liability, whether criminal or civil, whether
to any government, individual, shareholder or other entity.

 

5.                  Revocation
Right.Notwithstanding the initial effectiveness of this Agreement, Holderness may revoke the delivery (and
therefore the effectiveness) of this Agreement within the seven-day period beginning on the date Holderness executes this
Agreement (such seven day period being referred to herein as the “Release Revocation Period”). To
be effective, such revocation must be in writing signed by Holderness and must be received by the Company, care of Newton W.
 “Trey” Wilson III, ProPetro Holding Corp., 1706 S. Midkiff, Bldg. B, Midland, Texas 79701 (e-mail:
trey.wilson@propetroservices.com) before 11:59 p.m., central time, on the last day of the Release Revocation Period. If an
effective revocation is delivered in the foregoing manner and timeframe, the release of claims set forth in Section 3 above
will be of no force or effect, Holderness will not receive the consideration set forth in Section 2 above, and the remainder
of this Agreement will be in full force and effect.

 

    5 

     

    

 

6.                  Affirmation of Restrictive Covenants.Holderness acknowledges and agrees that he has continuing obligations
to the Company and each of its Affiliates, including obligations with respect to confidentiality, non-competition, non-solicitation,
and non-disparagement, pursuant to the award agreements documenting each of the RSUs and PSUs. In entering into this Agreement,
Holderness specifically acknowledges the validity, binding effect, and enforceability of (a) Article III of the award agreements
documenting the RSUs and (b) Article IV of the award agreements documenting the PSUs, in each case, pursuant to which awards were
granted to Holderness under the Incentive Plan as clarified by the following sentence. The Company acknowledges and agrees that
the only business activities restricted by the non-competition covenants set forth in the award agreements documenting the RSUs
and the PSUs are those activities relating to pressure pumping, cementing and coil tubing in the oilfield services industry (the
 “Restricted Services”). For the avoidance of doubt, Holderness’ involvement with any exploration
and production company or other oilfield services company that does not provide such Restricted Services shall not constitute a
violation of any continuing obligations.

 

7.                  Non-Disparagement. Holderness shall refrain from publishing any oral or written statements about the Company
or any Company Party that (a) are slanderous, libelous, or defamatory, (b) disclose confidential information of or regarding the
Company’s or any Company Party’s business affairs, directors, officers, managers, members, employees, consultants,
agents, or representatives, or (c) place the Company, any Company Party, or any of their respective directors, officers, managers,
members, employees, consultants, agents, or representatives in a false light before the public. Nothing herein limits Holderness
from cooperating with any investigation by any Government Agency or from making any disclosure required by applicable law or legal
process. Conversely, the Company will instruct its officers and directors to refrain from publishing any oral or written statements
about Holderness that (i) are slanderous, libelous or defamatory, (ii) are otherwise likely to damage the personal or professional
reputation of Holderness, or (iii) place him in a false light before the public. Nothing herein limits the Company from cooperating
with any investigation by any Government Agency, from making any disclosure necessary or appropriate under applicable securities
laws or from making any disclosure required by applicable law or legal process.

 

8.                  No Waiver. No failure by any Party hereto at any time to give notice of any breach by any other Party of,
or to require compliance with, any condition or provision of this Agreement or the Confirming Release shall be deemed a waiver
of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.

 

9.                  Applicable Law. This Agreement and the Confirming Release are entered into under, and shall be governed for
all purposes by, the laws of the State of Texas without reference to the principles of conflicts of law thereof.

 

10.                Severability.
To the extent permitted by applicable law, the Parties agree that any term or provision (or part thereof) of this Agreement
or the Confirming Release that renders such term or provision (or part thereof) or any other term or provision of this
Agreement or the Confirming Release (or part thereof) invalid or unenforceable in any respect shall be modified to the extent
necessary to avoid rendering such term or provision (or part thereof) invalid or unenforceable, and such modification shall
be accomplished in the manner that most nearly preserves the benefit of the Parties’ bargain hereunder.

 

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11.                Withholding of Taxes and Other Employee Deductions. The Company may withhold from any payments made pursuant
to Section 2 hereof all federal, state, local, and other taxes and withholdings as may be required pursuant to any law or governmental
regulation or ruling.

 

12.                Arbitration. Any dispute or controversy based on, arising under or relating to this Agreement shall be settled
exclusively by final and binding arbitration, conducted before a single neutral arbitrator in Houston, Texas in accordance with
the Employment Arbitration Rules and Mediation Procedures of the American Arbitration Association (the “AAA”)
then in effect. Arbitration may be compelled, and judgment may be entered on the arbitration award in any court having jurisdiction;
provided, however, that the Company shall be entitled to seek a restraining order or injunction in any court of competent
jurisdiction to prevent any continuation of any violation of the provisions of (a) Article III of the award agreements documenting
the RSUs, (b) Article IV of the award agreements documenting the PSUs, in each case of clauses (a) and (b), pursuant to which awards
were granted to Holderness under the Incentive Plan, or (c) Section 7 of this Agreement, and Holderness hereby consents that such
restraining order or injunction may be granted without requiring the Company to post a bond. Only individuals who are (i) lawyers
engaged full-time in the practice of law and (ii) on the AAA roster of arbitrators shall be selected as an arbitrator. Within 20
days of the conclusion of the arbitration hearing, the arbitrator shall prepare written findings of fact and conclusions of law.
Each party shall bear its own costs and attorneys’ fees in connection with an arbitration; provided that the Company shall
bear the cost of the arbitrator and the AAA’s administrative fees.

 

13.                Continued Cooperation. Following the Separation Date, Holderness will provide the Company and, as applicable,
the other Company Parties, with assistance, when reasonably requested by the Company, with respect to any matters related to Holderness’s
job responsibilities and otherwise providing information Holderness obtained during the provision of the duties Holderness performed
for the Company and the other Company Parties, subject to compensation at a rate of $400 per hour and reimbursement of Holderness’s
reasonable expenses incurred in complying with such requests for assistance. In no event, however, shall Holderness be required
to provide more than twenty percent (20%) of the services he provided prior to the Separation Date.

 

14.                Reasonable Assistance with Claims. Holderness shall provide reasonable assistance to the Company and any other
Company Party and its counsel in any litigation or accounting matters in which such Holderness may be a witness or potential witness
or with respect to which such Holderness may have knowledge of relevant facts or evidence, subject to compensation at a rate of
$400 per hour and reimbursement of Holderness’s reasonable expenses incurred in complying with such requests for assistance.

 

15.                Counterparts. This Agreement may be executed in one or more counterparts (including portable document format
(.pdf) and facsimile counterparts), each of which shall be deemed to be an original, but all of which together will constitute
one and the same Agreement.

 

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16.             Third-Party Beneficiaries. This Agreement and the Confirming Release shall be binding upon and inure to the
benefit of the Company and each other Company Party that is not a signatory hereto, as each other Company Party that is not a signatory
hereto shall be a third-party beneficiary of Holderness’s release of claims, representations and covenants set forth in this
Agreement and the Confirming Release.

 

17.            Section 409A. Notwithstanding anything herein to the contrary: (a) Holderness’s termination of employment
on the Separation Date is intended to constitute a “separation from service” within the meaning of Section 1.409A-1(h)
of the Department of Treasury Regulations and (b) it is the intent of the Parties that the amounts deliverable pursuant to Section
2 of this Agreement constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Internal
Revenue Code of 1986, as amended, and the applicable Treasury regulations and administrative guidance issued thereunder (collectively,
 “Section 409A”) or will otherwise be settled in a manner compliant with Section 409A. Notwithstanding
the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement are compliant
with Section 409A, and in no event shall Holderness be reimbursed by the Company for all or any portion of any taxes, penalties,
interest, or other expenses that may be incurred by Holderness on account of non-compliance with Section 409A.

 

18.            Amendment; Entire Agreement. This Agreement may not be changed orally but only by an agreement in writing
agreed to and signed by Holderness and the Company. This Agreement and the Confirming Release, constitute the entire agreement
of the Parties with regard to the subject matters hereof. Notwithstanding the foregoing, this Agreement and the Confirming Release
complement (and do not supersede or replace) any other agreements between the Company or any of its Affiliates and Holderness that
impose restrictions on Holderness with regard to confidentiality, non-competition, non-solicitation, or non-disparagement (including
the award agreements referenced in Section 6 above).

 

There are no oral agreements
between Holderness and the Company. No promises or inducements have been offered except as set forth in this Agreement or the Confirming
Release. Holderness and the Company acknowledge that, in executing this Agreement, neither Party has relied upon any representations
or warranties of any other Party. No promise or agreement which is not expressed in this Agreement and the Confirming Release has
been made by the Company to Holderness or by Holderness to the Company in executing this Agreement. Each Party agrees that any
omissions of fact concerning the matters covered by this Agreement and the Confirming Release are of no consequence in the decision
to execute this Agreement and the Confirming Release.

 

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19.             Interpretation.
The section headings in this Agreement and the Confirming Release have been inserted for purposes of convenience and shall
not be used for interpretive purposes. The words “herein”, “hereof”, “hereunder,” and
words of similar import, when used in this Agreement and the Confirming Release shall refer to this Agreement and the
Confirming Release as a whole and not to any particular provision of this Agreement or the Confirming Release. 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. The word
 “or” as used herein is not exclusive and is deemed to have the meaning “and/or.” References in this
Agreement and in the Confirming Release to any agreement, instrument, or other document mean such agreement, instrument, or
other document as amended, supplemented, and modified from time to time to the extent permitted by the provisions thereof and
not prohibited by this Agreement. No provision, uncertainty or ambiguity in or with respect to this Agreement or the
Confirming Release shall be construed or resolved against any Party hereto, whether under any rule of construction or
otherwise. On the contrary, this Agreement and the Confirming Release has been reviewed by each of the Parties hereto and
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 Parties.

 

20.            Return of Property. Holderness acknowledges and agrees that he will return to the Company all documents, files
(including electronically stored information), and other materials constituting or reflecting confidential or proprietary information
of the Company or any other Company Party, and any other property belonging to the Company or any other Company Party, including
all computer files, electronically stored information, and other materials, and Holderness shall not maintain a copy of any such
materials in any form.

 

21.            Assignment. This Agreement is personal to Holderness and may not be assigned by Holderness. The Company may
assign its rights and obligations under this Agreement and the Confirming Release without Holderness’s consent, including
to any other Company Party and to any successor (whether by merger, purchase, or otherwise) to all or substantially all of the
equity, assets, or businesses of the Company.

 

22.            Reaffirmation of Release. Holderness shall execute the Confirming Release Agreement that is attached as Exhibit
A (the “Confirming Release”) return the executed Confirming Release to the Company, care of Newton W.
 “Trey” Wilson III, ProPetro Holding Corp., 1706 S. Midkiff, Bldg. B, Midland, Texas 79701 (e-mail: trey.wilson@propetroservices.com),
so that it is received no later than the close of business on the date that is 21 days after Holderness received this Agreement
and the Confirming Release.

 

23.            Legal
Fees. The Company agrees to pay all reasonable legal costs incurred by Holderness in the negotiation of this
Agreement and the Confirming Release upon receipt of any invoice for the same.

 

[Signatures begin on the following page]

 

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IN WITNESS WHEREOF,
the Parties have executed this Agreement as of the date(s) set forth beneath their signatures below.

 

	 	PROPETRO HOLDING CORP.
	 	 
		By:	/s/ Phillip
                                         A. Gobe
		Name:	Phillip
                                         A. Gobe
		Title:	Chairman
                                         and Chief Executive Officer

 

		Date:	October
                                         23, 2020

 

	 	DARIN G. HOLDERNESS
	 	  
	 	/s/ Darin G. Holderness
	 	Darin G. Holderness
	 	 
	 	Date:	October 23, 2020

 

Signature
Page to 

Separation and General Release Agreement

 

     

     

    

 

EXHIBIT
A

 

CONFIRMING
RELEASE AGREEMENT

 

This Confirming Release
Agreement (the “Confirming Release”) is that certain Confirming Release referenced in Section 22 of the
Separation and General Release Agreement (the “Separation Agreement”), entered into by and between ProPetro
Holding Corp., a Delaware corporation (the “Company”), and Darin G. Holderness (“Holderness”).
This Confirming Release becomes effective on the day Holderness signs it. Capitalized terms used herein that are not otherwise
defined have the meanings assigned to them in the Separation Agreement. In signing below, Holderness agrees as follows:

 

1.                 
Complete Release of Claims.

 

(a)               For
good and valuable consideration, including the consideration set forth in Section 2 of the Separation Agreement (and any
portion thereof), which consideration Holderness was not entitled to but for Holderness’s entry into this Confirming
Release, Holderness hereby releases, discharges and forever acquits the Company and its Affiliates and subsidiaries, and each
of the foregoing entities’ respective past, present and future members, partners (including general partners and
limited partners), directors, trustees, officers, managers, employees, agents, attorneys, heirs, legal representatives,
insurers, benefit plans (and their fiduciaries, administrators and trustees), and the successors and assigns of the
foregoing, in their personal and representative capacities (collectively, the “Confirming Release Company
Parties”), from liability for, and hereby waives, any and all claims, damages, or causes of action of any kind
related to Holderness’s Holderness’s ownership of any interest in any Confirming Release Company Party,
employment with any Confirming Release Company Party, the termination of such employment, and any other acts or omissions
related to any matter occurring on or prior to the date that Holderness executes this Confirming Release, including (i) any
alleged violation through such date of: (A) any federal, state or local anti-discrimination law or anti-retaliation law,
regulation or ordinance including Title VII of the Civil Rights Act of 1964, as amended, the Civil Rights Act of 1991,
Sections 1981 through 1988 of Title 42 of the United States Code, as amended and the Americans with Disabilities Act of 1990,
as amended; (B) the Employee Retirement Income Security Act of 1974, as amended; (C) the Immigration Reform Control Act, as
amended; (D) the National Labor Relations Act, as amended; (E) the Occupational Safety and Health Act, as amended; (F) the
Family and Medical Leave Act of 1993; (G) the Texas Labor Code (specifically including the Texas Payday Law, the Texas
Anti-Retaliation Act, Chapter 21 of the Texas Labor Code, and the Texas Whistleblower Act); (H) any federal, state or local
wage and hour law; (I) the Age Discrimination in Employment Act of 1967, as amended; (J) any other local, state or federal
law, regulation or ordinance; or (K) any public policy, contract, tort, or common law claim; (ii) any allegation for costs,
fees, or other expenses including attorneys’ fees incurred in or with respect to a Released Claim; (iii) any and all
rights, benefits or claims Holderness may have under any employment contract, severance plan, incentive compensation plan, or
equity based plan with any Confirming Release Company Party (including any award agreement) or to any ownership interest in
any Confirming Release Company Party; and (iv) any claim for compensation or benefits of any kind not expressly set forth in
the Separation Agreement or this Confirming Release (collectively, the “Further Released Claims”).
This Confirming Release is not intended to indicate that any such claims exist or that, if they do exist, they are
meritorious. Rather, Holderness is simply agreeing that, in exchange for any consideration received by him pursuant to
Section 2 of the Separation Agreement, any and all potential claims of this nature that Holderness may have against the
Confirming Release Company Parties, regardless of whether they actually exist, are expressly settled, compromised and waived.
Notwithstanding the foregoing, the Further Released Claims do not include (I) any rights to indemnification, advancement of
expenses incurred in connection with the same, or directors’ and officers’ liability insurance coverage that
Holderness has under Delaware law, the charter, bylaws, other organizational documents and insurance policies of any
Confirming Release Company Party or any agreement with any Confirming Release Company Party; and (II) any rights to enforce
the terms of the Separation Agreement, including those in Section 2(a) of the Separation Agreement related to incentive
compensation and equity, or this Confirming Release. THIS RELEASE INCLUDES MATTERS ATTRIBUTABLE TO THE SOLE OR PARTIAL
NEGLIGENCE (WHETHER GROSS OR SIMPLE) OR OTHER FAULT, INCLUDING STRICT LIABILITY, OF ANY OF THE CONFIRMING RELEASE COMPANY
PARTIES.

 

    Exhibit A

     

    

 

(b)              
Notwithstanding this release of liability, nothing in this Confirming Release prevents Holderness from filing any non-legally
waivable claim (including a challenge to the validity of this Confirming Release) with the EEOC or comparable state or local agency
or participating in (or cooperating with) any investigation or proceeding conducted by the EEOC or comparable state or local agency
or cooperating in any such investigation or proceeding; however, Holderness understands and agrees that Holderness is waiving any
and all rights to recover any monetary or personal relief or recovery from a Company Party as a result of such EEOC or comparable
state or local agency or proceeding or subsequent legal actions. Further, nothing in this Confirming Release prohibits or restricts
Holderness from filing a charge or complaint with, or cooperating in any investigation with a Government Agency. This Confirming
Release does not limit Holderness’s right to receive an award for information provided to a Government Agency. Further, in
no event shall the Further Released Claims include (i) any claim which arises after the date that this Confirming Release is executed
by Holderness or (ii) any claim to vested benefits under an employee benefit plan.

 

2.             
Representations and Warranties Regarding Claims. Holderness hereby represents and warrants that, as of the
date on which Holderness signs this Confirming Release, Holderness has not filed any claims, complaints, charges, or lawsuits against
any of the Confirming Released Parties with any governmental agency or with any state or federal court or arbitrator for, or with
respect to, a matter, claim, or incident that occurred or arose out of one or more occurrences that took place on or prior to the
date on which Holderness signs this Confirming Release. Holderness hereby further represents and warrants that Holderness has not
made any assignment, sale, delivery, transfer, or conveyance of any rights Holderness has asserted or may have against any of the
Confirming Released Parties with respect to any Further Released Claim.

 

3.                 
Holderness’s Acknowledgements. Holderness acknowledges that:

 

(a)              
Holderness has received all leaves (paid and unpaid) that Holderness was owed or could be owed by the Company and each of
the other Company Parties and Holderness has received all salary and other compensation that Holderness is owed by the Company
Parties as of the date that Holderness executes this Confirming Release (which amount does not include the consideration described
in Section 2 of the Separation Agreement).

 

    Exhibit A

     

    

 

(b)              
 By executing and delivering this Confirming Release, Holderness expressly acknowledges that:

 

(i)              
Holderness has carefully read this Confirming Release;

 

(ii)             No
material changes have been made to the Separation Agreement or this Confirming Release since it was first provided to
Holderness and Holderness has had at least 21 days to consider the Separation Agreement and this Confirming Release before
the execution and delivery hereof to Company;

 

(iii)           
Holderness is receiving, pursuant to the Separation Agreement, consideration in addition to anything of value to which he
is already entitled, and Holderness is not otherwise entitled to such additional consideration as set forth in the Separation Agreement,
but for his entry into the Separation Agreement and this Confirming Release;

 

(iv)           
Holderness has been advised, and hereby is advised in writing, to discuss this Confirming Release with an attorney of Holderness’s
choice and Holderness has had an adequate opportunity to do so prior to executing this Confirming Release;

 

(v)            
Holderness fully understands the final and binding effect of this Confirming Release; the only promises made to Holderness
to sign this Confirming Release are those stated herein and in the Separation Agreement; and Holderness is signing this Confirming
Release knowingly, voluntarily and of Holderness’s own free will, and that Holderness understands and agrees to each of the
terms of this Confirming Release and the Separation Agreement;

 

(vi)           
The only matters relied upon by Holderness and causing Holderness to sign this Confirming Release are the provisions set
forth in writing within the four corners of this Confirming Release and the Separation Agreement; and

 

(vii)          
No Company Party has provided any tax or legal advice regarding this Confirming Release or the Separation Agreement and
Holderness has had an adequate opportunity to receive sufficient tax and legal advice from advisors of Holderness’s own choosing
such that Holderness enters into this Confirming Release with full understanding of the tax and legal implications thereof.

 

(c)              
Other than matters previously disclosed to the Board and outside auditors, Holderness is not aware of any material act or
omission on the part of any Company employee (including Holderness), director or agent that may have violated any applicable law
or regulation or otherwise exposed the Company or any other Company Party to any liability, whether criminal or civil, whether
to any government, individual, shareholder or other entity.

 

    Exhibit A

     

    

 

4.                  Arbitration.
Any dispute or controversy based on, arising under or relating to this Confirming Release shall be settled exclusively by
final and binding arbitration, conducted before a single neutral arbitrator in Houston, Texas in accordance with the
Employment Arbitration Rules and Mediation Procedures of the AAA then in effect. Arbitration may be compelled, and judgment
may be entered on the arbitration award in any court having jurisdiction; provided, however, that the Company
shall be entitled to seek a restraining order or injunction in any court of competent jurisdiction to prevent any
continuation of any violation of the provisions of (a) Article III of the award agreements documenting the RSUs, (b) Article
IV of the award agreements documenting the PSUs, in each case of clauses (a) and (b), pursuant to which awards were granted
to Holderness under the Incentive Plan, or (c) Section 7 of the Separation Agreement, and Holderness hereby consents that
such restraining order or injunction may be granted without requiring the Company to post a bond. Only individuals who are
(i) lawyers engaged full-time in the practice of law and (ii) on the AAA roster of arbitrators shall be selected as an
arbitrator. Within 20 days of the conclusion of the arbitration hearing, the arbitrator shall prepare written findings of
fact and conclusions of law. Each party shall bear its own costs and attorneys’ fees in connection with an arbitration;
provided that the Company shall bear the cost of the arbitrator and the AAA’s administrative fees.

 

5.                 
Amendment; Entire Agreement. This Confirming Release may not be changed orally but only by an agreement in
writing agreed to and signed by Holderness and the Company. The Separation Agreement and this Confirming Release, constitute the
entire agreement of the Parties with regard to the subject matters hereof. Notwithstanding the foregoing, the Separation Agreement
and this Confirming Release complement (and do not supersede or replace) any other agreements between the Company or any of its
Affiliates and Holderness that impose restrictions on Holderness with regard to confidentiality, non-competition, non-solicitation,
or non-disparagement (including the award agreements referenced in Section 6 of the Separation Agreement).

 

There are no oral agreements
between Holderness and the Company. No promises or inducements have been offered except as set forth in the Separation Agreement
and this Confirming Release. Holderness and the Company acknowledge that, in executing this Confirming Release, neither Party has
relied upon any representations or warranties of any other Party. No promise or agreement which is not expressed in the Separation
Agreement and this Confirming Release has been made by the Company to Holderness or by Holderness to the Company in executing this
Confirming Release. Each Party agrees that any omissions of fact concerning the matters covered by this the Separation Agreement
and this Confirming Release are of no consequence in the decision to execute this Confirming Release.

 

6.                 
Return of Property. Holderness represents and warrants that Holderness has returned to the Company all property
belonging to the Company and any other Confirming Released Party, including all computer files and other electronically stored
information, client materials, electronically stored information, and other materials provided to Holderness by the Company or
any other Confirming Released Party in the course of Holderness’s employment and Holderness further represents and warrants
that Holderness has not maintained a copy of any such materials in any form.

 

7.                 
Revocation Right.Notwithstanding the initial effectiveness of this Confirming Release, Holderness
may revoke the delivery (and therefore the effectiveness) of this Confirming Release within the seven-day period beginning on
the date Holderness executes this Confirming Release (such seven day period being referred to herein as the “Confirming
Release Revocation Period”). To be effective, such revocation must be in writing signed by Holderness and must be
received by the Company, care of Trey Wilson, ProPetro Holding Corp., 1706 S. Midkiff, Bldg. B, Midland, Texas 79701 (e-mail:
trey.wilson@propetroservices.com) before 11:59 p.m., central time, on the last day of the Confirming Release Revocation Period.
If an effective revocation is delivered in the foregoing manner and timeframe, the release of claims set forth in Section 1 of
this Confirming Release above will be of no force or effect, Holderness will not receive the consideration set forth in Section
2 of the Separation Agreement, and the remainder of this Confirming Release will be in full force and effect.

 

    Exhibit A

     

    

 

HOLDERNESS HAS CAREFULLY READ THIS CONFIRMING
RELEASE, FULLY UNDERSTANDS HIS AGREEMENT, AND SIGNS IT AS HIS OWN FREE ACT.

 

 

	 	DARIN
    G. HOLDERNESS
	 	 
	 	 
	 	Darin G. Holderness
	 	 
	 	Date:

 

    Exhibit AExhibit 10.3

 

ProPetro
HOLDING CORP.

 

2020
LONG TERM INCENTIVE PLAN

 

1.                 
Purpose. The purpose of the ProPetro Holding Corp. 2020 Long Term Incentive Plan (the “Plan”)
is to provide a means through which (a) ProPetro Holding Corp., a Delaware corporation (the “Company”),
and the Affiliates may attract, retain and motivate qualified persons as employees, directors and consultants, thereby enhancing
the profitable growth of the Company and the Affiliates and (b) persons upon whom the responsibilities of the successful administration
and management of the Company and the Affiliates rest, and whose present and potential contributions to the Company and the Affiliates
are of importance, can acquire and maintain stock ownership or awards the value of which is tied to the performance of the Company,
thereby strengthening their concern for the Company and the Affiliates. Accordingly, the Plan provides for the grant of Options,
SARs, Restricted Stock, Restricted Stock Units, Stock Awards, Dividend Equivalents, Other Stock-Based Awards, Cash Awards, Substitute
Awards, or any combination of the foregoing, as determined by the Committee in its sole discretion.

 

2.                 
Definitions. For purposes of the Plan, the following terms shall be defined as set forth below:

 

(a)              
“Affiliate” means any corporation, partnership, limited liability company, limited liability partnership,
association, trust or other organization that, directly or indirectly, controls, is controlled by, or is under common control with,
the Company. For purposes of the preceding sentence, “control” (including, with correlative meanings, the terms “controlled
by” and “under common control with”), as used with respect to any entity or organization, shall mean the possession,
directly or indirectly, of the power (i) to vote more than 50% of the securities having ordinary voting power for the election
of directors of the controlled entity or organization or (ii) to direct or cause the direction of the management and policies of
the controlled entity or organization, whether through the ownership of voting securities, by contract, or otherwise.

 

(b)              
“ASC Topic 718” means the Financial Accounting Standards Board Accounting Standards Codification
Topic 718, Compensation – Stock Compensation, as amended or any successor accounting standard.

 

(c)              
“Award” means any Option, SAR, Restricted Stock, Restricted Stock Unit, Stock Award, Dividend
Equivalent, Other Stock-Based Award, Cash Award, or Substitute Award, together with any other right or interest, granted under
the Plan.

 

(d)              
“Award Agreement” means any written instrument (including any employment, severance or change
in control agreement) that sets forth the terms, conditions, restrictions and/or limitations applicable to an Award, in addition
to those set forth under the Plan.

 

(e)              
“Board” means the Board of Directors of the Company.

 

(f)               
“Cash Award” means an Award denominated in cash granted under Section 6(i).

 

     

     

    

 

(g)              
 “Change in Control” means, except as otherwise provided in an Award Agreement, each of the following:

 

(i)                
A transaction or series of transactions (other than an offering of Stock to the general public through a registration statement
filed with the SEC) whereby any Person directly or indirectly acquires beneficial ownership (within the meaning of Rules 13d-3
and 13d-5 under the Exchange Act) of securities of the Company possessing more than 30% of the total combined voting power of the
Company’s securities outstanding immediately after such acquisition; provided, however, that the following acquisitions
shall not constitute a Change in Control:

 

(A)            
any acquisition by the Company or any of its Subsidiaries;

 

(B)             
any acquisition by an employee benefit plan maintained by the Company or any of its Subsidiaries;

 

(C)             
any acquisition which complies with Sections 2(g)(iii)(A), 2(g)(iii)(B), and 2(g)(iii)(C); or

 

(D)            
in respect of an Award held by a particular Participant, any acquisition by the Participant or any group of Persons including
the Participant (or any entity controlled by the Participant or any group of Persons including the Participant); or

 

(ii)             
The Incumbent Directors cease for any reason to constitute a majority of the Board;

 

(iii)            
The consummation by the Company (whether directly involving the Company or indirectly involving the Company through one
or more intermediaries) of (x) a merger, consolidation, reorganization, or business combination, (y) a sale or other disposition
of all or substantially all of the Company’s assets in any single transaction or series of related transactions or (z) the
acquisition of assets or stock of another entity, in each case other than a transaction:

 

(A)            
which results in the Company’s voting securities outstanding immediately before the transaction continuing to represent
(either by remaining outstanding or by being converted into voting securities of the Company or the Person that, as a result of
the transaction, controls, directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of the
Company’s assets or otherwise succeeds to the business of the Company (the Company or such Person, the “Successor
Entity”)) at least a majority of the combined voting power of the Successor
Entity’s outstanding voting securities immediately after the transaction, and

 

(B)             
after which no Person beneficially owns voting securities representing 50% or more of the combined voting power of the Successor
Entity; provided, however, that no Person shall be treated for purposes of this Section 2(g)(iii) as beneficially
owning 50% or more of the combined voting power of the Successor Entity solely as a result of the voting power held in the Company
prior to the consummation of the transaction; and

 

    2

     

    

 

(C)             
 after which at least a majority of the members of the board of directors (or the analogous governing body) of the Successor
Entity were Board members at the time of the Board’s approval of the execution of the initial agreement providing for such
transaction; or

 

(iv)            
The date which is 10 business days prior to the completion of a liquidation or dissolution of the Company.

 

Notwithstanding the foregoing,
if a Change in Control constitutes a payment event with respect to any Award (or any portion of an Award) that provides for the
deferral of compensation that is subject to the Nonqualified Deferred Compensation Rules, to the extent required to avoid the imposition
of additional taxes under such rules, the transaction or event described in subsection (i), (ii), (iii) or (iv) with respect to
such Award (or portion thereof) shall only constitute a Change in Control for purposes of the payment timing of such Award if such
transaction also constitutes a “change in control event,” as defined in Treasury Regulation § 1.409A-3(i)(5).

 

The Board shall have
full and final authority, which shall be exercised in its sole discretion, to determine conclusively whether a Change in Control
has occurred pursuant to the above definition, the date of the occurrence of such Change in Control and any incidental matters
relating thereto; provided that any exercise of authority in conjunction with a determination of whether a Change in Control is
a “change in control event” as defined in Treasury Regulation Section 1.409A-3(i)(5) shall be consistent with such
regulation.

 

(h)              
“Code” means the Internal Revenue Code of 1986, as amended from time to time, including the guidance
and regulations promulgated thereunder and successor provisions, guidance and regulations thereto.

 

(i)                
“Committee” means a committee of two or more directors designated by the Board to administer the
Plan; provided, however, that, unless otherwise determined by the Board, the Committee shall consist solely of two
or more Qualified Members.

 

(j)                
“Dividend Equivalent” means a right, granted to an Eligible Person under Section 6(g),
to receive cash, Stock, other Awards or other property equal in value to dividends paid with respect to a specified number of shares
of Stock.

 

(k)              
“Effective Date” means October 22, 2020.

 

(l)                
“Eligible Person” means any individual who, as of the date of grant of an Award, is an officer
or employee of the Company or of any Affiliate, and any other person who provides services to the Company or any Affiliate, including
directors of the Company; provided, however, that, any such individual must be an “employee” of the Company
or any of its parents or subsidiaries within the meaning of General Instruction A.1(a) to Form S-8 if such individual is granted
an Award that may be settled in Stock. An employee on leave of absence may be an Eligible Person.

 

(m)            
“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, including
the guidance, rules and regulations promulgated thereunder and successor provisions, guidance, rules and regulations thereto.

 

    3

     

    

 

(n)              
 “Fair Market Value” of a share of Stock means, as of any specified date, (i) if the Stock is
listed on a national securities exchange, the closing sales price of the Stock, as reported on the stock exchange composite tape
on that date (or if no sales occur on such date, on the last preceding date on which such sales of the Stock are so reported);
(ii) if the Stock is not traded on a national securities exchange but is traded over the counter on such date, the average between
the reported high and low bid and asked prices of Stock on the most recent date on which Stock was publicly traded on or preceding
the specified date; or (iii) in the event Stock is not publicly traded at the time a determination of its value is required to
be made under the Plan, the amount determined by the Committee in its discretion in such manner as it deems appropriate, taking
into account all factors the Committee deems appropriate, including the Nonqualified Deferred Compensation Rules. Notwithstanding
this definition of Fair Market Value, with respect to one or more Award types, or for any other purpose for which the Committee
must determine the Fair Market Value under the Plan, the Committee may elect to choose a different measurement date or methodology
for determining Fair Market Value so long as the determination is consistent with the Nonqualified Deferred Compensation Rules
and all other applicable laws and regulations.

 

(o)              
“Incumbent Directors” shall mean for any period of 12 consecutive
months, individuals who, at the beginning of such period, constitute the Board together with any new members of the Board (other
than a member of the Board designated by a Person who shall have entered into an agreement with the Company to effect a transaction
described in Section 2(g)(i) or 2(g)(iii)) whose election or nomination for election to the Board was approved by a vote of at
least a majority (either by a specific vote or by approval of the proxy statement of the Company in which such Person is named
as a nominee for member of the Board without objection to such nomination) of the members of the Board then still in office who
either were members of the Board at the beginning of the 12-month period or whose election or nomination for election was previously
so approved.  No individual initially elected or nominated as a member of the Board of the Company as a result of an actual
or threatened election contest with respect to members of the Board or as a result of any other actual or threatened solicitation
of proxies by or on behalf of any Person other than the Board shall be an Incumbent Director.

 

(p)              
“ISO” means an Option intended to be and designated as an “incentive stock option”
within the meaning of Section 422 of the Code.

 

(q)              
“Nonqualified Deferred Compensation Rules” means the limitations and requirements of Section 409A
of the Code, as amended from time to time, including the guidance and regulations promulgated thereunder and successor provisions,
guidance and regulations thereto.

 

(r)               
“Nonstatutory Option” means an Option that is not an ISO.

 

(s)               
“Option” means a right, granted to an Eligible Person under Section 6(b), to purchase Stock
at a specified price during specified time periods, which may either be an ISO or a Nonstatutory Option.

 

(t)                
“Other Stock-Based Award” means an Award granted to an Eligible Person under Section 6(h).

 

    4

     

    

 

(u)              
 “Participant” means a person who has been granted an Award under the Plan that remains outstanding,
including a person who is no longer an Eligible Person.

 

(v)              
“Person” means any individual, entity or group within the meaning of Section 13(d)(3) or 14(d)(2)
of the Exchange Act.

 

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

 

(x)              
“Qualified Member” means a member of the Board who is (i) a “non-employee director”
within the meaning of Rule 16b-3(b)(3), and (ii) “independent” under the listing standards or rules of the securities
exchange upon which the Stock is traded, but only to the extent such independence is required in order to take the action at issue
pursuant to such standards or rules.

 

(y)              
“Restricted Stock” means Stock granted to an Eligible Person under Section 6(d) that is
subject to certain restrictions and to a risk of forfeiture.

 

(z)              
“Restricted Stock Unit” means a right, granted to an Eligible Person under Section 6(e),
to receive Stock, cash or a combination thereof at the end of a specified period (which may or may not be coterminous with the
vesting schedule of the Award).

 

(aa)           
“Rule 16b-3” means Rule 16b-3, promulgated by the SEC under Section 16 of the Exchange Act.

 

(bb)          
“SAR” means a stock appreciation right granted to an Eligible Person under Section 6(c).

 

(cc)           
“SEC” means the Securities and Exchange Commission.

 

(dd)          
“Securities Act” means the Securities Act of 1933, as amended from time to time, including the
guidance, rules and regulations promulgated thereunder and successor provisions, guidance, rules and regulations thereto.

 

(ee)           
“Stock” means the Company’s Common Stock, par value $0.001 per share, and such other securities
as may be substituted (or re-substituted) for Stock pursuant to Section 8.

 

(ff)             
“Stock Award” means unrestricted shares of Stock granted to an Eligible Person under Section
6(f).

 

(gg)          
“Subsidiary” shall mean any entity (other than the Company),
whether domestic or foreign, in an unbroken chain of entities beginning with the Company if each of the entities other than the
last entity in the unbroken chain beneficially owns, at the time of the determination, securities or interests representing at
least fifty percent (50%) of the total combined voting power of all classes of securities or interests in one of the other entities
in such chain.

 

(hh)          
“Substitute Award” means an Award granted under Section 6(j).

 

    5

     

    

 

3.                 
 Administration.

 

(a)              
Authority of the Committee. The Plan shall be administered by the Committee except to the extent the Board elects
to administer the Plan, in which case references herein to the “Committee” shall be deemed to include references to
the “Board.” Subject to the express provisions of the Plan, Rule 16b-3 and other applicable laws, the Committee shall
have the authority, in its sole and absolute discretion, to:

 

(i)            designate Eligible Persons as Participants;

 

(ii)           determine the type or types of Awards to be granted to an Eligible Person;

 

(iii)          determine the number of shares of Stock or amount of cash to be covered by Awards;

 

(iv)          determine the terms and conditions of any Award, including whether, to what extent and under what circumstances Awards may
be vested, settled, exercised, cancelled or forfeited (including conditions based on continued employment or service requirements
or the achievement of one or more performance goals);

 

(v)           modify,
waive or adjust any term or condition of an Award that has been granted, which may include the acceleration of vesting, waiver
of forfeiture restrictions, modification of the form of settlement of the Award (for example, from cash to Stock or vice versa),
early termination of a performance period, or modification of any other condition or limitation regarding an Award;

 

(vi)          determine
the treatment of an Award upon a termination of employment or other service relationship;

 

(vii)         impose a holding period with respect to an Award or the shares of Stock received in connection with an Award;

 

(viii)       
interpret and administer the Plan and any Award Agreement;

 

(ix)           correct any defect, supply any omission or reconcile any inconsistency in the Plan, in any Award, or in any Award Agreement;
and

 

(x)            make any other determination and take any other action that the Committee deems necessary or desirable for the administration
of the Plan.

 

The express grant of
any specific power to the Committee, and the taking of any action by the Committee, shall not be construed as limiting any power
or authority of the Committee. Any action of the Committee shall be final, conclusive and binding on all persons, including the
Company, Affiliates, stockholders, Participants, beneficiaries, and permitted transferees under Section 7(a) or other persons
claiming rights from or through a Participant.

 

    6

     

    

 

(b)              
 Exercise of Committee Authority. At any time that a member of the Committee is not a Qualified Member, any action
of the Committee relating to an Award granted or to be granted to an Eligible Person who is then subject to Section 16 of the Exchange
Act in respect of the Company where such action is not taken by the full Board may be taken either (i) by a subcommittee, designated
by the Committee, composed solely of two or more Qualified Members, or (ii) by the Committee but with each such member who is not
a Qualified Member abstaining or recusing himself or herself from such action; provided, however, that upon such
abstention or recusal, the Committee remains composed solely of two or more Qualified Members. Such action, authorized by such
a subcommittee or by the Committee upon the abstention or recusal of such non-Qualified Member(s), shall be the action of the Committee
for purposes of the Plan. For the avoidance of doubt, the full Board may take any action relating to an Award granted or to be
granted to an Eligible Person who is then subject to Section 16 of the Exchange Act in respect of the Company.

 

(c)              
Delegation of Authority. The Committee may delegate any or all of its powers and duties under the Plan to a subcommittee
of directors or to any officer of the Company, including the power to perform administrative functions and grant Awards; provided,
that such delegation does not (i) violate state or corporate law, or (ii) result in the loss of an exemption under Rule 16b-3(d)(1)
for Awards granted to Participants subject to Section 16 of the Exchange Act in respect of the Company. Upon any such delegation,
all references in the Plan to the “Committee,” other than in Section 8, shall be deemed to include any subcommittee
or officer of the Company to whom such powers have been delegated by the Committee. Any such delegation shall not limit the right
of such subcommittee members or such an officer to receive Awards; provided, however, that such subcommittee members
and any such officer may not grant Awards to himself or herself, a member of the Board, or any executive officer of the Company
or an Affiliate, or take any action with respect to any Award previously granted to himself or herself, a member of the Board,
or any executive officer of the Company or an Affiliate. The Committee may also appoint agents who are not executive officers of
the Company or members of the Board to assist in administering the Plan, provided, however, that such individuals
may not be delegated the authority to grant or modify any Awards that will, or may, be settled in Stock.

 

(d)              
Limitation of Liability. The Committee and each member thereof shall be entitled to, in good faith, rely or act upon
any report or other information furnished to him or her by any officer or employee of the Company or any Affiliate, the Company’s
legal counsel, independent auditors, consultants or any other agents assisting in the administration of the Plan. Members of the
Committee and any officer or employee of the Company or any Affiliate acting at the direction or on behalf of the Committee shall
not be personally liable for any action or determination taken or made in good faith with respect to the Plan, and shall, to the
fullest extent permitted by law, be indemnified and held harmless by the Company with respect to any such action or determination.

 

(e)              
Participants in Non-U.S. Jurisdictions. Notwithstanding any provision of the Plan to the contrary, to comply with
applicable laws in countries other than the United States in which the Company or any Affiliate operates or has employees, directors
or other service providers from time to time, or to ensure that the Company complies with any applicable requirements of foreign
securities exchanges, the Committee, in its sole discretion, shall have the power and authority to: (i) determine which of the
Affiliates shall be covered by the Plan; (ii) determine which Eligible Persons outside the United States are eligible to participate
in the Plan; (iii) modify the terms and conditions of any Award granted to Eligible Persons outside the United States to comply
with applicable foreign laws or listing requirements of any foreign exchange; (iv) establish sub-plans and modify exercise procedures
and other terms and procedures, to the extent such actions may be necessary or advisable (any such sub-plans and/or modifications
shall be attached to the Plan as appendices), provided, however, that no such sub-plans and/or modifications shall
increase the share limitations contained in Section 4(a); and (v) take any action, before or after an Award is granted,
that it deems advisable to comply with any applicable governmental regulatory exemptions or approval or listing requirements of
any such foreign securities exchange. For purposes of the Plan, all references to foreign laws, rules, regulations or taxes shall
be references to the laws, rules, regulations and taxes of any applicable jurisdiction other than the United States or a political
subdivision thereof.

 

    7

     

    

 

4.                 
Stock Subject to the Plan.

 

(a)              
Number of Shares Available for Delivery. Subject to adjustment in a manner consistent with Section 8, (i)
4,650,000 shares of Stock are reserved and available for delivery with respect to Awards, and such total shall be available for
the issuance of shares upon the exercise of ISOs, plus (ii) the number of shares of Stock that become available for Awards
under this Plan pursuant to Section 4(d) below.

 

(b)              
Application of Limitation to Grants of Awards. Subject to Section 4(c), no Award may be granted if the
number of shares of Stock that may be delivered in connection with such Award exceeds the number of shares of Stock remaining available
under the Plan minus the number of shares of Stock issuable in settlement of or relating to then-outstanding Awards. The Committee
may adopt reasonable counting procedures to ensure appropriate counting, avoid double counting (as, for example, in the case of
tandem or Substitute Awards) and make adjustments if the number of shares of Stock actually delivered differs from the number of
shares previously counted in connection with an Award.

 

(c)              
Availability of Shares Not Delivered under Awards. Shares of Stock subject to an Award under the Plan that expires
or is cancelled, forfeited, exchanged, settled in cash or otherwise terminated without the actual delivery of shares will again
be available for Awards. For the avoidance of doubt, Awards of Restricted Stock shall not be considered “delivered shares”
for this purpose until vesting. Notwithstanding the foregoing, (i) the number of shares tendered or withheld in payment of any
exercise or purchase price of an Option or an SAR or taxes relating to an Option or an SAR, including shares that were subject
to an Option or an SAR but were not issued or delivered as a result of the net settlement or net exercise of such Option or SAR
and (ii) shares repurchased on the open market with the proceeds of an Option’s exercise price, will be considered “delivered
shares” and will not, in each case, be again available for Awards. The number of shares of Stock withheld in payment of the
tax withholding obligation related an Award other than an Option or an SAR will be again available for Awards under the Plan. For
the avoidance of doubt, if an Award may be settled only in cash, such Award need not ever be counted against any share limit under
this Section 4.

 

(d)              
Shares Available Under the Prior Plan. In addition, shares of Stock subject to an award granted under the Prior
Plan and outstanding as of the Effective Date (a “Prior Award”) that are forfeited or expire, are converted
to shares of another Person in connection with a spin-off or other similar event, or if such Prior Award is settled for cash (in
whole or in part) (including shares repurchased by the Company under Section 8.4 of the Prior Plan at the same price paid by the
holder of such Prior Award), the shares of Stock subject to such Prior Award shall, to the extent of such forfeiture, expiration,
conversion or cash settlement, become available for future grants of Awards under the Plan. For the avoidance of doubt, a number
of shares of Stock equal to the difference between (i) the maximum number of shares of Stock that could have been settled pursuant
to performance-based Prior Awards, and (ii) the actual number of shares of Stock delivered upon settlement of performance-based
Prior Awards, shall become available for future grants of Awards under the Plan. Notwithstanding
anything to the contrary contained herein, the following shares of Stock subject to Prior Awards shall not be added to the shares
of Stock authorized for grant under Section 4(a) and shall not be available for future grants of Awards: (i) shares tendered
by a Holder (as such term is defined in the Prior Plan) or withheld by the Company in payment of the exercise price of a stock
option; (ii) shares of Stock tendered by the Holder or withheld by the Company to satisfy any tax withholding obligation with
respect to a Prior Award; (iii) shares of Stock subject to a stock appreciation right that are not issued in connection with the
stock settlement of the stock appreciation right on exercise thereof; and (iv) shares of Stock purchased on the open market by
the Company with the cash proceeds received from the exercise of stock options. For the avoidance of doubt, no awards will be
granted under the Prior Plan on or following the Effective Date.

 

    8

     

    

 

(e)              
Shares Available Following Certain Transactions. Substitute Awards granted in accordance with applicable stock exchange
requirements and in substitution or exchange for awards previously granted by a company acquired by the Company or any Subsidiary
or with which the Company or any Subsidiary combines shall not reduce the shares authorized for issuance under the Plan or the
limitations on grants to non-employee members of the Board under Section 5(b), nor shall shares subject to such Substitute
Awards be added to the shares available for issuance under the Plan as provided above (whether or not such Substitute Awards are
later cancelled, forfeited or otherwise terminated).

 

(f)               
Stock Offered. The shares of Stock to be delivered under the Plan shall be made available from (i) authorized
but unissued shares of Stock, (ii) Stock held in the treasury of the Company, or (iii) previously issued shares of Stock reacquired
by the Company, including shares purchased on the open market.

 

5.                 
Eligibility; Award Limitations for Non-Employee Members of the Board.

 

(a)              
Awards may be granted under the Plan only to Eligible Persons.

 

(b)              
In each calendar year during any part of which the Plan is in effect, a non-employee member of the Board may not be paid
compensation, whether denominated in cash or Awards, for such individual’s service on the Board in excess of $500,000; provided,
however, that for any calendar year in which a member of the Board (i) first commences service on the Board, (ii) serves on a
special committee of the Board, (iii) serves as lead director, or (iv) serves as non-executive Chairman of the Board, additional
compensation, whether denominated in cash or Awards may be paid. For purposes of this Section 5(b), the value of Awards
shall be determined, if applicable, pursuant to ASC Topic 718 on the date of grant and attributed to the compensation limit for
the year in which the Award is granted. For the avoidance of doubt, the limits set forth in this Section 5(b) shall be without
regard to grants of Awards or other payments, if any, made to a non-employee member of the Board during any period in which such
individual was an employee of the Company or of any of its Affiliates or was otherwise providing services to the Company or to
any of its Affiliates other than in the capacity as a director of the Company. For the avoidance of doubt, any cash compensation
that is deferred shall be counted toward this limit for the year in which it was first earned, and not when paid or settled, if
later.

 

    9

     

    

 

6.                 
Specific Terms of Awards.

 

(a)              
General.

 

(i)                
Awards may be granted on the terms and conditions set forth in this Section 6. Awards granted under the Plan may,
in the discretion of the Committee, be granted either alone, in addition to, or in tandem with any other Award. In addition, the
Committee may impose on any Award or the exercise thereof, at the date of grant or thereafter (subject to Section 10), such
additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall determine, including
subjecting such awards to service- or performance-based vesting conditions. Except as otherwise provided in an Award Agreement,
the Committee may exercise its discretion to reduce or increase the amounts payable under any Award.

 

(ii)             
Without limiting the scope of Section 6(a)(i), with respect to any performance-based conditions, (i) the Committee may use
one or more business criteria or other measures of performance as it may deem appropriate in establishing any performance goals
applicable to an Award, (ii) any such performance goals may relate to the performance of the Participant, the Company (on a consolidated
basis), or to specified Subsidiaries, business or geographical units or operating areas of the Company, (iii) the performance period
or periods over which performance goals will be measured shall be established by the Committee, and (iv) any such performance goals
and performance periods may differ among Awards granted to any one Participant or to different Participants. 

 

(iii)           
Subject to Section 8(e) of the Plan, any Award (or portion thereof) granted
under the Plan shall vest no earlier than the first anniversary of the date the Award is granted; provided, however,
that, notwithstanding the foregoing, Awards that result in the issuance of an aggregate of up to 5% of the shares of Stock available
pursuant to Section 4 may be granted to any one or more Eligible Persons without respect to and/or administered without regard
for this minimum vesting provision. For the avoidance of doubt, the grant of Stock Awards will count against the 5% limit described
in the immediately preceding sentence. No Award Agreement shall be permitted to reduce or eliminate the requirements of this Section
6(a)(iii). Nothing in this Section 6(a)(iii) shall preclude the Committee from taking action, in its sole discretion, to accelerate
the vesting of any Award for any reason. 

 

(b)              
Options. The Committee is authorized to grant Options, which may be designated as either ISOs or Nonstatutory Options,
to Eligible Persons on the following terms and conditions:

 

    10

     

    

 

(i)                
 Exercise Price. Each Award Agreement evidencing an Option shall state the exercise price per share of Stock (the
 “Exercise Price”) established by the Committee; provided, however, that except as provided
in Section 6(j) or in Section 8, the Exercise Price of an Option shall not be less than the greater of (A) the par
value per share of the Stock or (B) 100% of the Fair Market Value per share of the Stock as of the date of grant of the Option
(or in the case of an ISO granted to an individual who owns stock possessing more than 10% of the total combined voting power of
all classes of stock of the Company or its parent or any of its Subsidiaries, 110% of the Fair Market Value per share of the Stock
on the date of grant).

 

(ii)             
Time and Method of Exercise; Other Terms. The Committee shall determine the methods by which the Exercise Price may
be paid or deemed to be paid, the form of such payment, including cash or cash equivalents, Stock (including previously owned shares
or through a cashless exercise, i.e., “net settlement”, a broker-assisted exercise, or other reduction of the amount
of shares otherwise issuable pursuant to the Option), other Awards or awards granted under other plans of the Company or any Affiliate,
other property, or any other legal consideration the Committee deems appropriate, the methods by or forms in which Stock will be
delivered or deemed to be delivered to Participants, including the delivery of Restricted Stock subject to Section 6(d),
and any other terms and conditions of any Option. In the case of an exercise whereby the Exercise Price is paid with Stock, such
Stock shall be valued based on the Stock’s Fair Market Value as of the date of exercise. No Option may be exercisable for
a period of more than ten years following the date of grant of the Option (or in the case of an ISO granted to an individual who
owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or its parent or
any of its Subsidiaries, for a period of more than five years following the date of grant of the ISO).

 

(iii)           
ISOs. The terms of any ISO granted under the Plan shall comply in all respects with the provisions of Section 422
of the Code. ISOs may only be granted to Eligible Persons who are employees of the Company or employees of a parent or any Subsidiary
corporation of the Company. Except as otherwise provided in Section 8, no term of the Plan relating to ISOs (including any
SAR in tandem therewith) shall be interpreted, amended or altered, nor shall any discretion or authority granted under the Plan
be exercised, so as to disqualify either the Plan or any ISO under Section 422 of the Code, unless notice has been provided to
the Participant that such change will result in such disqualification. ISOs shall not be granted more than ten years after the
earlier of the adoption of the Plan or the approval of the Plan by the Company’s stockholders. Notwithstanding the foregoing,
to the extent that the aggregate Fair Market Value of shares of Stock subject to an ISO and the aggregate Fair Market Value of
shares of stock of any parent or Subsidiary corporation (within the meaning of Sections 424(e) and (f) of the Code) subject to
any other incentive stock options of the Company or a parent or Subsidiary corporation (within the meaning of Sections 424(e) and
(f) of the Code) that are exercisable for the first time by a Participant during any calendar year exceeds $100,000, or such other
amount as may be prescribed under Section 422 of the Code, such excess shall be treated as Nonstatutory Options in accordance with
the Code. As used in the previous sentence, Fair Market Value shall be determined as of the date the ISO is granted. If a Participant
shall make any disposition of shares of Stock issued pursuant to an ISO under the circumstances described in Section 421(b) of
the Code (relating to disqualifying dispositions), the Participant shall notify the Company of such disposition within the time
provided to do so in the applicable award agreement.

 

    11

     

    

 

(c)              
 SARs. The Committee is authorized to grant SARs to Eligible Persons on the following terms and conditions:

 

(i)                
Right to Payment. An SAR is a right to receive, upon exercise thereof, the excess of (A) the Fair Market Value of
one share of Stock on the date of exercise over (B) the grant price of the SAR as determined by the Committee.

 

(ii)             
Grant Price. Each Award Agreement evidencing an SAR shall state the grant price per share of Stock established by
the Committee; provided, however, that except as provided in Section 6(j) or in Section 8, the grant
price per share of Stock subject to an SAR shall not be less than the greater of (A) the par value per share of the Stock or (B)
100% of the Fair Market Value per share of the Stock as of the date of grant of the SAR.

 

(iii)           
Method of Exercise and Settlement; Other Terms. The Committee shall determine the form of consideration payable upon
settlement, the method by or forms in which Stock (if any) will be delivered or deemed to be delivered to Participants, and any
other terms and conditions of any SAR. SARs may be either free-standing or granted in tandem with other Awards. No SAR may be exercisable
for a period of more than ten years following the date of grant of the SAR.

 

(iv)            
Rights Related to Options. An SAR granted in connection with an Option shall entitle a Participant, upon exercise,
to surrender that Option or any portion thereof, to the extent unexercised, and to receive payment of an amount determined by multiplying
(A) the difference obtained by subtracting the Exercise Price with respect to a share of Stock specified in the related Option
from the Fair Market Value of a share of Stock on the date of exercise of the SAR, by (B) the number of shares as to which that
SAR has been exercised. The Option shall then cease to be exercisable to the extent surrendered. SARs granted in connection with
an Option shall be subject to the terms and conditions of the Award Agreement governing the Option, which shall provide that the
SAR is exercisable only at such time or times and only to the extent that the related Option is exercisable and shall not be transferable
except to the extent that the related Option is transferrable.

 

(d)              
Restricted Stock. The Committee is authorized to grant Restricted Stock to Eligible Persons on the following terms
and conditions:

 

(i)                
Restrictions. Restricted Stock shall be subject to such restrictions on transferability, risk of forfeiture and other
restrictions, if any, as the Committee may impose. Except as provided in Section 7(a)(iii) and Section 7(a)(iv),
during the restricted period applicable to the Restricted Stock, the Restricted Stock may not be sold, transferred, pledged, hedged,
hypothecated, margined or otherwise encumbered by the Participant. Except as otherwise provided in the applicable Award Agreement
and this Section 6(d), the holder of a Restricted Stock Award will generally have the same rights as a stockholder,
including the right to vote the Stock subject to the Restricted Stock Award and to receive dividends on the Stock subject to the
Restricted Stock Award during the restriction period (subject, in all cases, to the limitations on payment of dividends on unvested
Awards, as described in Section 6(d)(ii) below).

 

    12

     

    

 

(ii)             
 Dividends and Splits. As a condition to the grant of an Award of Restricted Stock, the Committee may allow a Participant
to elect, or may require, that any cash dividends paid on a share of Restricted Stock be automatically reinvested in additional
shares of Restricted Stock, applied to the purchase of additional Awards or deferred without interest to the date of vesting of
the associated Award of Restricted Stock, provided that in all events such cash dividends shall be subject to restrictions and
a risk of forfeiture to the same extent as the Restricted Stock with respect to which such dividends were paid and shall not be
paid unless and until such Restricted Stock has vested and been earned. Stock distributed in connection with a Stock split or Stock
dividend, and other property (other than cash) distributed as a dividend, shall be subject to restrictions and a risk of forfeiture
to the same extent as the Restricted Stock with respect to which such Stock or other property has been distributed and shall not
be delivered unless and until such Restricted Stock has vested and been earned.

 

(e)              
Restricted Stock Units. The Committee is authorized to grant Restricted Stock Units to Eligible Persons on the following
terms and conditions:

 

(i)                
Award and Restrictions. Restricted Stock Units shall be subject to such restrictions (which may include a risk of
forfeiture) as the Committee may impose.

 

(ii)             
Settlement. Settlement of vested Restricted Stock Units shall occur upon vesting or upon expiration of the deferral
period specified for such Restricted Stock Units by the Committee (or, if permitted by the Committee, as elected by the Participant).
Restricted Stock Units shall be settled by delivery of (A) a number of shares of Stock equal to the number of Restricted Stock
Units for which settlement is due, or (B) cash in an amount equal to the Fair Market Value of the specified number of shares of
Stock equal to the number of Restricted Stock Units for which settlement is due, or a combination thereof, as determined by the
Committee at the date of grant or thereafter.

 

(f)               
Stock Awards. The Committee is authorized to grant Stock Awards to Eligible Persons as a bonus, as additional compensation,
or in lieu of cash compensation any such Eligible Person is otherwise entitled to receive, in such amounts and subject to such
other terms as the Committee in its discretion determines to be appropriate.

 

(g)              
Dividend Equivalents. The Committee is authorized to grant Dividend Equivalents to Eligible Persons, entitling any
such Eligible Person to receive cash, Stock, other Awards, or other property equal in value to dividends or other distributions
paid with respect to a specified number of shares of Stock. Dividend Equivalents may be awarded in connection with another Award
(other than an Award of Restricted Stock or Stock Award). Dividend Equivalents shall be subject to restrictions and a risk of forfeiture
to the same extent as the Award with respect to which such dividends accrue and shall not be paid unless and until such Award has
vested and been earned.

 

    13

     

    

 

(h)              
Other Stock-Based Awards. The Committee is authorized, subject to limitations under applicable law, to grant to
Eligible Persons such other Awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise
based on, or related to, Stock, as deemed by the Committee to be consistent with the purposes of the Plan, including convertible
or exchangeable debt securities, other rights convertible or exchangeable into Stock, purchase rights for Stock, Awards with value
and payment contingent upon performance of the Company or any other factors designated by the Committee, and Awards valued by
reference to the book value of Stock or the value of securities of, or the performance of, specified Affiliates. The Committee
shall determine the terms and conditions of such Other Stock-Based Awards. Stock delivered pursuant to an Other-Stock Based Award
in the nature of a purchase right granted under this Section 6(h) shall be purchased for such consideration, paid for at
such times, by such methods, and in such forms, including cash, Stock, other Awards, or other property, as the Committee shall
determine.

 

(i)                
Cash Awards. The Committee is authorized to grant Cash Awards, on a free-standing basis or as an element of, a supplement
to, or in lieu of any other Award under the Plan to Eligible Persons in such amounts and subject to such other terms as the Committee
in its discretion determines to be appropriate, including for purposes of any annual or short-term incentive or other bonus program.

 

(j)                
Substitute Awards; No Repricing. Awards may be granted in substitution or exchange for any other Award granted under
the Plan or under another plan of the Company or an Affiliate or any other right of an Eligible Person to receive payment from
the Company or an Affiliate. Awards may also be granted under the Plan in substitution for awards held by individuals who become
Eligible Persons as a result of a merger, consolidation or acquisition of another entity or the assets of another entity by or
with the Company or an Affiliate. Such Substitute Awards referred to in the immediately preceding sentence that are Options or
SARs may have an exercise price that is less than the Fair Market Value of a share of Stock on the date of the substitution if
such substitution complies with the Nonqualified Deferred Compensation Rules and other applicable laws and exchange rules. Except
as provided in this Section 6(j) or in Section 8, without the approval of the stockholders of the Company, the terms
of outstanding Awards may not be amended to (i) reduce the Exercise Price or grant price of an outstanding Option or SAR, (ii)
grant a new Option, SAR or other Award in substitution for, or upon the cancellation of, any previously granted Option or SAR that
has the effect of reducing the Exercise Price or grant price thereof, (iii) exchange any Option or SAR for Stock, cash or other
consideration when the Exercise Price or grant price per share of Stock under such Option or SAR exceeds the Fair Market Value
of a share of Stock or (iv) take any other action that would be considered a “repricing” of an Option or SAR under
the applicable listing standards of the national securities exchange on which the Stock is listed (if any).

 

7.                 
Certain Provisions Applicable to Awards.

 

(a)              
Limit on Transfer of Awards.

 

(i)                
Except as provided in Sections 7(a)(iii) and (iv), each Option and SAR shall be exercisable only by the Participant
during the Participant’s lifetime, or by the person to whom the Participant’s rights shall pass by will or the laws
of descent and distribution. Notwithstanding anything to the contrary in this Section 7(a), an ISO shall not be transferable
other than by will or the laws of descent and distribution.

 

    14

     

    

 

(ii)             
Except as provided in Sections 7(a)(i), (iii) and (iv), no Award, other than a Stock Award, and no
right under any such Award, may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant
and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable
against the Company or any Affiliate.

 

(iii)           
To the extent specifically provided by the Committee and permitted pursuant to Form S-8 and the instructions thereto, an
Award may be transferred by a Participant on such terms and conditions as the Committee may from time to time establish; provided,
however, that no Award (other than a Stock Award) may be transferred to a third-party financial institution for value.

 

(iv)            
An Award may be transferred pursuant to a domestic relations order entered or approved by a court of competent jurisdiction
upon delivery to the Company of a written request for such transfer and a certified copy of such order.

 

(b)              
Form and Timing of Payment under Awards; Deferrals. Subject to the terms of the Plan and any applicable Award Agreement,
payments to be made by the Company or any Affiliates upon the exercise or settlement of an Award may be made in such forms as the
Committee shall determine in its discretion, including cash, Stock, other Awards or other property, and may be made in a single
payment or transfer, in installments, or on a deferred basis (which may be required by the Committee or permitted at the election
of the Participant on terms and conditions established by the Committee); provided, however, that any such deferred
or installment payments will be set forth in the Award Agreement. Payments may include, without limitation, provisions for the
payment or crediting of reasonable interest on installment or deferred payments or the grant or crediting of Dividend Equivalents
or other amounts in respect of installment or deferred payments denominated in Stock.

 

(c)              
Evidencing Stock. The Stock or other securities of the Company delivered pursuant to an Award may be evidenced in
any manner deemed appropriate by the Committee in its sole discretion, including in the form of a certificate issued in the name
of the Participant or by book entry, electronic or otherwise, and shall be subject to such stop transfer orders and other restrictions
as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the SEC, any stock exchange
upon which such Stock or other securities are then listed, and any applicable federal, state or other laws, and the Committee may
cause a legend or legends to be inscribed on any such certificates to make appropriate reference to such restrictions. Further,
if certificates representing Restricted Stock are registered in the name of the Participant, the Company may retain physical possession
of the certificates and may require that the Participant deliver a stock power to the Company, endorsed in blank, related to the
Restricted Stock.

 

(d)              
Consideration for Grants. Awards may be granted for such consideration, including services, as the Committee shall
determine, but shall not be granted for less than the minimum lawful consideration.

 

    15

     

    

 

(e)              
Additional Agreements. Each Eligible Person to whom an Award is granted under the Plan may be required to agree
in writing, as a condition to the grant of such Award or otherwise, to subject an Award that is exercised or settled following
such Eligible Person’s termination of employment or service to a general release of claims and/or a noncompetition or other
restricted covenant agreement in favor of the Company and the Affiliates, with the terms and conditions of such agreement(s) to
be determined in good faith by the Committee.

 

(f)               
Dividends and Dividend Equivalents Subject to Forfeiture. Any dividend or Dividend Equivalent credited with respect
to any Award (except for dividends paid following the grant of a Stock Award, which is an Award of unrestricted (i.e., fully vested)
shares of Stock) shall be subject to restrictions and a risk of forfeiture to the same extent as the Award with respect to which
such Stock or other property has been distributed and shall not be delivered unless and until such Award has vested and been earned.

 

8.                 
Subdivision or Consolidation; Recapitalization; Change in Control; Reorganization.

 

(a)              
Existence of Plans and Awards. The existence of the Plan and the Awards granted hereunder shall not affect in any
way the right or power of the Company, the Board or the stockholders of the Company to make or authorize any adjustment, recapitalization,
reorganization or other change in the Company’s capital structure or its business, any merger or consolidation of the Company,
any issue of debt or equity securities ahead of or affecting Stock or the rights thereof, the dissolution or liquidation of the
Company or any sale, lease, exchange or other disposition of all or any part of its assets or business or any other corporate act
or proceeding.

 

(b)              
Additional Issuances. Except as expressly provided herein, the issuance by the Company of shares of stock of any
class, including upon conversion of shares or obligations of the Company convertible into such shares or other securities, and
in any case whether or not for fair value, shall not affect, and no adjustment by reason thereof shall be made with respect to,
the number of shares of Stock subject to Awards theretofore granted or the purchase price per share of Stock, if applicable.

 

(c)              
Subdivision or Consolidation of Shares. The terms of an Award and the share limitations under the Plan shall be subject
to adjustment by the Committee from time to time, in accordance with the following provisions:

 

(i)                
If at any time, or from time to time, the Company shall subdivide as a whole (by reclassification, by a Stock split, by
the issuance of a distribution on Stock payable in Stock, or otherwise) the number of shares of Stock then outstanding into a
greater number of shares of Stock or in the event the Company distributes an extraordinary cash dividend, then, as appropriate
(A) the maximum number of shares of Stock available for delivery with respect to Awards and applicable limitations with respect
to Awards provided in Section 4 and Section 5 (other than cash limits) shall be increased proportionately, and the
kind of shares or other securities available for the Plan shall be appropriately adjusted, (B) the number of shares of Stock (or
other kind of shares or securities) that may be acquired under any then-outstanding Award shall be increased proportionately,
and (C) the price (including the Exercise Price or grant price) for each share of Stock (or other kind of shares or securities)
subject to then-outstanding Awards shall be reduced proportionately, without changing the aggregate purchase price or value as
to which outstanding Awards remain exercisable or subject to restrictions; provided, however, that in the case of
an extraordinary cash dividend that is not an Adjustment Event, the adjustment to the number of shares of Stock and the Exercise
Price or grant price, as applicable, with respect to an outstanding Option or SAR may be made in such other manner as the Committee
may determine that is permitted pursuant to applicable tax and other laws, rules and regulations. Notwithstanding the foregoing,
Awards that already have a right to receive extraordinary cash dividends as a result of Dividend Equivalents or other dividend
rights will not be adjusted as a result of an extraordinary cash dividend.

 

    16

     

    

 

(ii)             
If at any time, or from time to time, the Company shall consolidate as a whole (by reclassification, by reverse Stock split,
or otherwise) the number of shares of Stock then outstanding into a lesser number of shares of Stock, then, as appropriate (A)
the maximum number of shares of Stock available for delivery with respect to Awards and applicable limitations with respect to
Awards provided in Section 4 and Section 5 (other than cash limits) shall be decreased proportionately, and the kind
of shares or other securities available for the Plan shall be appropriately adjusted, (B) the number of shares of Stock (or other
kind of shares or securities) that may be acquired under any then-outstanding Award shall be decreased proportionately, and (C)
the price (including the Exercise Price or grant price) for each share of Stock (or other kind of shares or securities) subject
to then-outstanding Awards shall be increased proportionately, without changing the aggregate purchase price or value as to which
outstanding Awards remain exercisable or subject to restrictions.

 

(d)              
Recapitalization. In the event of any change in the capital structure or business of the Company or other corporate
transaction or event that would be considered an “equity restructuring” within the meaning of ASC Topic 718 and, in
each case, that would result in an additional compensation expense to the Company pursuant to the provisions of ASC Topic 718,
if adjustments to Awards with respect to such event were discretionary or otherwise not required (each such an event, an “Adjustment
Event”), then the Committee shall equitably adjust (i) the aggregate number or kind of shares that thereafter may
be delivered under the Plan, (ii) the number or kind of shares or other property (including cash) subject to an Award, (iii) the
terms and conditions of Awards, including the purchase price or Exercise Price of Awards and performance goals, as applicable,
and (iv) the applicable limitations with respect to Awards provided in Section 4 and Section 5 (other than cash limits)
to equitably reflect such Adjustment Event (“Equitable Adjustments”). In the event of any change in the
capital structure or business of the Company or other corporate transaction or event that would not be considered an Adjustment
Event, and is not otherwise addressed in this Section 8, the Committee shall have complete discretion to make Equitable
Adjustments (if any) in such manner as it deems appropriate with respect to such other event.

 

(e)              
Change in Control and Other Events.

 

(i)                
Treatment of Awards Assumed or Substituted by a Successor Entity.

 

(A)            
Except as otherwise provided in an Award Agreement, in the event of a Change in Control, in which any successor entity assumes
outstanding Awards or substitutes similar awards under the successor entity’s equity compensation plan for outstanding Awards
on the same terms and conditions as the original Awards, such Awards that are assumed or substituted shall not vest solely with
respect to the occurrence of the Change in Control.

 

    17

     

    

 

(B)             
 Except as otherwise provided in an Award Agreement, if, in connection with or within twelve (12) months following a Change
in Control, a Participant’s service, consulting relationship, or employment with the Company, an Affiliate, and the Successor
Entity and its affiliates is terminated without cause (as defined in the Award Agreement evidencing such Award or substitute award),
the vesting and exercisability of all Awards, including substitute awards, then held by such Participant will be accelerated in
full and be settled, as applicable, no later than sixty (60) days following the conclusion
of the service or employment relationship (unless the Nonqualified Deferred Compensation Rules would prohibit such acceleration
of settlement, in which case such Awards shall vest but will be settled at date(s) of settlement specified in the applicable Award
Agreement) and the expiration date of any Options shall be the day three months following the date the Participant ceases to be
an employee or service provider to the Company, an Affiliate of the Company and the Successor Entity and its affiliates. For
Awards that vest based on performance, the number of performance Awards that shall vest and be settled in accordance with this Section
8(e)(i)(B), notwithstanding the terms of the applicable Award Agreement, shall be calculated assuming the attainment of the
target level of performance as set forth in a performance Award.

 

(ii)             
Treatment of Awards not Assumed or Substituted. Unless otherwise provided in an Award Agreement, if, upon a Change
in Control, the successor entity does not assume outstanding Awards or substitute similar awards under the successor entity’s
equity compensation plan for outstanding Awards on the same terms and conditions as the original Awards, then the vesting of all
outstanding Awards will be accelerated in full with effect immediately prior to the occurrence of the Change in Control and
shall be settled, as applicable, no later than sixty (60) days following the Change in Control (unless the Nonqualified Deferred
Compensation Rules would prohibit such acceleration of settlement, in which case such Awards will be settled at the originally
specified date(s) of settlement). The Participant shall be permitted to conditionally redeem or exercise any or all Options,
as applicable, effective immediately prior to the completion of any such transaction for the sole purpose of participating in such
transaction. For Awards that vest based on performance, for the purpose of determining the achievement performance criteria, as
set forth in the particular Award Agreement,  and calculating the number of performance Awards that shall vest in accordance
with this Section 8(e)(ii), notwithstanding the terms of the Award Agreement, and unless otherwise provided by the
Committee, such performance Awards shall be settled at the greater of (A) the target level of performance as set forth in the performance
Award, and (B) the actual performance achieved, measured and calculated as of the date of the Change in Control pursuant to shortened
performance period ending on the occurrence of the Change in Control.

 

If an Adjustment Event
occurs, this Section 8(e) shall only apply to the extent it is not in conflict with Section 8(d).

 

9.                 
General Provisions.

 

(a)              
Tax Withholding. The Company and any Affiliate are authorized to withhold from any Award granted, or any payment
relating to an Award, including from a distribution of Stock, taxes due or potentially payable in connection with any transaction
involving an Award, and to take such other action as the Committee may deem advisable to enable the Company, the Affiliates and
Participants to satisfy the payment of withholding taxes and other tax obligations relating to any Award in such amounts as may
be determined by the Committee. The Committee shall determine, in its sole discretion, the form of payment acceptable for such
tax withholding obligations, including the delivery of cash or cash equivalents, Stock (including through delivery of previously
owned shares, net settlement, a broker-assisted sale, or other cashless withholding or reduction of the amount of shares otherwise
issuable or delivered pursuant to the Award), other property, or any other legal consideration the Committee deems appropriate.
Any determination made by the Committee to allow a Participant who is subject to Rule 16b-3 to pay taxes with shares of Stock
through net settlement or previously owned shares shall be approved by either a committee made up of solely two or more Qualified
Members or the full Board. If such tax withholding amounts are satisfied through net settlement or previously owned shares, the
maximum number of shares of Stock that may be so withheld or surrendered shall be the number of shares of Stock that have an aggregate
Fair Market Value on the date of withholding or surrender equal to the aggregate amount of such tax liabilities determined based
on the greatest withholding rates for federal, state, foreign and/or local tax purposes, including payroll taxes, that may be
utilized without creating adverse accounting treatment for the Company with respect to such Award, as determined by the Committee.

 

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(b)              
Limitation on Rights Conferred under Plan. Neither the Plan nor any action taken hereunder shall be construed as
(i) giving any Eligible Person or Participant the right to continue as an Eligible Person or Participant or in the employ or service
of the Company or any Affiliate, (ii) interfering in any way with the right of the Company or any Affiliate to terminate any Eligible
Person’s or Participant’s employment or service relationship at any time, (iii) giving an Eligible Person or Participant
any claim to be granted any Award under the Plan or to be treated uniformly with other Participants and/or employees and/or other
service providers, or (iv) conferring on a Participant any of the rights of a stockholder of the Company unless and until
the Participant is duly issued or transferred shares of Stock in accordance with the terms of an Award.

 

(c)              
Governing Law; Submission to Jurisdiction. All questions arising with respect to the provisions of the Plan and Awards
shall be determined by application of the laws of the State of Delaware, without giving effect to any conflict of law provisions
thereof, except to the extent Delaware law is preempted by federal law. The obligation of the Company to sell and deliver Stock
hereunder is subject to applicable federal and state laws and to the approval of any governmental authority required in connection
with the authorization, issuance, sale, or delivery of such Stock. With respect to any claim or dispute related to or arising under
the Plan, the Company and each Participant who accepts an Award hereby consent to the exclusive jurisdiction, forum and venue of
the state and federal courts located in Houston, Texas.

 

(d)              
Severability and Reformation. If any provision of the Plan or any Award is or becomes or is deemed to be invalid,
illegal, or unenforceable in any jurisdiction or as to any person or Award, or would disqualify the Plan or any Award under any
law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable law or,
if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of
the Plan or the Award, such provision shall be stricken as to such jurisdiction, person or Award and the remainder of the Plan
and any such Award shall remain in full force and effect. If any of the terms or provisions of the Plan or any Award Agreement
conflict with the requirements of Rule 16b-3 (as those terms or provisions are applied to Eligible Persons who are subject to
Section 16 of the Exchange Act) or Section 422 of the Code (with respect to ISOs), then those conflicting terms or provisions
shall be deemed inoperative to the extent they so conflict with the requirements of Rule 16b-3 (unless the Board or the Committee,
as appropriate, has expressly determined that the Plan or such Award should not comply with Rule 16b-3) or Section 422 of the
Code, in each case, only to the extent Rule 16b-3 and Section 422 of the Code are applicable. With respect to ISOs, if the Plan
does not contain any provision required to be included herein under Section 422 of the Code, that provision shall be deemed to
be incorporated herein with the same force and effect as if that provision had been set out at length herein; provided,
further, that, to the extent any Option that is intended to qualify as an ISO cannot so qualify, that Option (to that extent)
shall be deemed a Nonstatutory Option for all purposes of the Plan.

 

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(e)              
Unfunded Status of Awards; No Trust or Fund Created. The Plan is intended to constitute an “unfunded”
plan for certain incentive awards. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund
of any kind or a fiduciary relationship between the Company or any Affiliate and a Participant or any other person. To the extent
that any person acquires a right to receive payments from the Company or any Affiliate pursuant to an Award, such right shall be
no greater than the right of any general unsecured creditor of the Company or such Affiliate.

 

(f)               
Nonexclusivity of the Plan. Neither the adoption of the Plan by the Board nor its submission to the stockholders
of the Company for approval shall be construed as creating any limitations on the power of the Board or a committee thereof to
adopt such other incentive arrangements as it may deem desirable. Nothing contained in the Plan shall be construed to prevent the
Company or any Affiliate from taking any corporate action which is deemed by the Company or such Affiliate to be appropriate or
in its best interest, whether or not such action would have an adverse effect on the Plan or any Award made under the Plan. No
employee, beneficiary or other person shall have any claim against the Company or any Affiliate as a result of any such action.

 

(g)              
Fractional Shares. No fractional shares of Stock shall be issued or delivered pursuant to the Plan or any Award,
and the Committee shall determine in its sole discretion whether cash, other securities, or other property shall be paid or transferred
in lieu of any fractional shares of Stock or whether such fractional shares of Stock or any rights thereto shall be cancelled,
terminated, or otherwise eliminated with or without consideration.

 

(h)              
Interpretation. Headings are given to the Sections and subsections of the Plan solely as a convenience to facilitate
reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan
or any provision thereof. Words in the masculine gender shall include the feminine gender, and, where appropriate, the plural
shall include the singular and the singular shall include the plural. In the event of any conflict between the terms and conditions
of an Award Agreement and the Plan, the provisions of the Plan shall control. 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. References herein to any agreement, instrument or other document means such agreement,
instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions
thereof and not prohibited by the Plan.

 

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(i)                
Facility of Payment. Any amounts payable hereunder to any individual under legal disability or who, in the judgment
of the Committee, is unable to manage properly his financial affairs, may be paid to the legal representative of such individual,
or may be applied for the benefit of such individual in any manner that the Committee may select, and the Company shall be relieved
of any further liability for payment of such amounts.

 

(j)                
Conditions to Delivery of Stock. Nothing herein or in any Award Agreement shall require the Company to issue any
shares with respect to any Award if that issuance would, in the opinion of counsel for the Company, constitute a violation of the
Securities Act, any other applicable statute or regulation, or the rules of any applicable securities exchange or securities association,
as then in effect. In addition, each Participant who receives an Award under the Plan shall not sell or otherwise dispose of Stock
that is acquired upon grant, exercise or vesting of an Award in any manner that would constitute a violation of any applicable
federal or state securities laws, the Plan or the rules, regulations or other requirements of the SEC or any stock exchange upon
which the Stock is then listed. At the time of any exercise of an Option or SAR, or at the time of any grant of any other Award,
the Company may, as a condition precedent to the exercise of such Option or SAR or settlement of any other Award, require from
the Participant (or in the event of his or her death, his or her legal representatives, heirs, legatees, or distributees) such
written representations, if any, concerning the holder’s intentions with regard to the retention or disposition of the shares
of Stock being acquired pursuant to the Award and such written covenants and agreements, if any, as to the manner of disposal of
such shares as, in the opinion of counsel to the Company, may be necessary to ensure that any disposition by that holder (or in
the event of the holder’s death, his or her legal representatives, heirs, legatees, or distributees) will not involve a violation
of the Securities Act, any other applicable state or federal statute or regulation, or any rule of any applicable securities exchange
or securities association, as then in effect. Stock or other securities shall not be delivered pursuant to any Award until payment
in full of any amount required to be paid pursuant to the Plan or the applicable Award Agreement (including any Exercise Price,
grant price, or tax withholding) is received by the Company.

 

(k)              
Section 409A of the Code. It is the general intention, but not the obligation, of the Committee to design Awards
to comply with or to be exempt from the Nonqualified Deferred Compensation Rules, and Awards will be operated and construed accordingly.
Neither this Section 9(k) nor any other provision of the Plan is or contains a representation to any Participant regarding
the tax consequences of the grant, vesting, exercise, settlement, or sale of any Award (or the Stock underlying such Award) granted
hereunder, and should not be interpreted as such. In no event shall the Company be liable for all or any portion of any taxes,
penalties, interest or other expenses that may be incurred by the Participant on account of non-compliance with the Nonqualified
Deferred Compensation Rules. Notwithstanding any provision in the Plan or an Award Agreement to the contrary, in the event that
a “specified employee” (as defined under the Nonqualified Deferred Compensation Rules) becomes entitled to a payment
under an Award that would be subject to additional taxes and interest under the Nonqualified Deferred Compensation Rules if the
Participant’s receipt of such payment or benefits is not delayed until the earlier of (i) the date of the Participant’s
death, or (ii) the date that is six months after the Participant’s “separation from service,” as defined under
the Nonqualified Deferred Compensation Rules (such date, the “Section 409A Payment Date”), then such
payment or benefit shall not be provided to the Participant until the Section 409A Payment Date. Any amounts subject to the preceding
sentence that would otherwise be payable prior to the Section 409A Payment Date will be aggregated and paid in a lump sum without
interest on the Section 409A Payment Date. The applicable provisions of the Nonqualified Deferred Compensation Rules are hereby
incorporated by reference and shall control over any Plan or Award Agreement provision in conflict therewith.

 

    21

     

    

 

(l)                
Clawback. The Plan and all Awards granted hereunder are subject to any written clawback policies that the Company,
with the approval of the Board or an authorized committee thereof, may adopt either prior to or following the Effective Date, including
any policy adopted to conform to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and rules promulgated thereunder
by the SEC and that the Company determines should apply to Awards. Any such policy may subject a Participant’s Awards and
amounts paid or realized with respect to Awards to reduction, cancelation, forfeiture or recoupment if certain specified events
or wrongful conduct occur, including an accounting restatement due to the Company’s material noncompliance with financial
reporting regulations or other events or wrongful conduct specified in any such clawback policy.

 

(m)            
Status under ERISA. The Plan shall not constitute an “employee benefit plan” for purposes of Section
3(3) of the Employee Retirement Income Security Act of 1974, as amended.

 

(n)              
Plan Effective Date and Term. The Plan was adopted by the Board to be effective on the Effective Date. No Awards
may be granted under the Plan on and after the tenth anniversary of the Effective Date, which is October 22, 2030. However, any
Award granted prior to such termination (or any earlier termination pursuant to Section 10), and the authority of the Board
or Committee to amend, alter, adjust, suspend, discontinue, or terminate any such Award or to waive any conditions or rights under
such Award in accordance with the terms of the Plan, shall extend beyond such termination until the final disposition of such Award.

 

10.             
Amendments to the Plan and Awards. The Committee may amend, alter, suspend, discontinue or terminate any Award or
Award Agreement, the Plan or the Committee’s authority to grant Awards without the consent of stockholders or Participants,
except that any amendment or alteration to the Plan, including any increase in any share limitation, shall be subject to the approval
of the Company’s stockholders not later than the annual meeting next following such Committee action if such stockholder
approval is required by any federal or state law or regulation or the rules of any stock exchange or automated quotation system
on which the Stock may then be listed or quoted, and the Committee may otherwise, in its discretion, determine to submit other
changes to the Plan to stockholders for approval; provided, that, without the consent of an affected Participant, no such
Committee action may materially and adversely affect the rights of such Participant under any previously granted and outstanding
Award. For purposes of clarity, any adjustments made to Awards pursuant to Section 8 will be deemed not to materially and
adversely affect the rights of any Participant under any previously granted and outstanding Award and therefore may be made without
the consent of affected Participants.

 

    22

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