Document:

Exhibit
10.6

 

BONANZA
CREEK ENERGY, INC.

THIRD AMENDED AND RESTATED EXECUTIVE CHANGE IN CONTROL

AND SEVERANCE PLAN

 

1.             Purpose
and Effective Date. Bonanza Creek Energy, Inc. (the “Company”) has adopted this Third Amended and Restated
Executive Change in Control and Severance Benefit Plan (this “Plan”) to provide for the payment of severance
or change in control benefits to Eligible Individuals (as defined below). The Plan was approved by the Board of Directors of the
Company (the “Board”) to be effective as of April 28, 2017 (the “Effective Date”).

 

2.             Definitions. For purposes of this Plan, the terms listed below will have the meanings specified herein:

 

(a)           “Accrued Obligations” means (i) payment to an Eligible Individual of all earned but unpaid Base Salary
through the Date of Termination prorated for any partial period of employment; (ii) payment to an Eligible Individual, in accordance
with the terms of the applicable benefit plan of the Company or its Affiliates or to the extent required by law, of any benefits
to which such Eligible Individual has a vested entitlement as of the Date of Termination; (iii) payment to an Eligible Individual
of any accrued unused vacation; and (iv) payment to an Eligible Individual of any approved but not yet reimbursed business expenses
incurred in accordance with applicable policies of the Company and its Affiliates, including this Plan.

 

(b)           “Administrator” means the Board or a person or committee appointed by the Board to administer this Plan.

 

(c)           Affiliate” means (i) with respect to the Company, any person that directly or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with, the Company and any predecessor to any such entity;
provided ̧ however, that a natural person shall not be considered an Affiliate; and (ii) with respect to an Eligible
Individual, any person that directly, or through one or more intermediaries, is controlled by such Eligible Individual or members
of such Eligible Individual’s immediate family.

 

(d)           “Base
Salary” shall mean an Eligible Individual’s annual base salary as of a Notice of Termination (without regard to
any reduction in such Base Salary which constitutes Good Reason).

 

(e)           “Cause” means any of the following:

 

(i)             an Eligible Individual has failed or refused to substantially perform such Eligible Individual’s duties, responsibilities
or authorities (other than any such refusal or failure resulting from such Eligible Individual’s becoming Disabled);

 

(ii)           
any commission by or indictment of by an Eligible Individual of a felony or crime of moral turpitude;

 

    

    

    

(iii)           an
Eligible Individual has engaged in material misconduct in the course and scope of such Eligible Individual’s employment
with the Company, including, but not limited to, gross incompetence, disloyalty, disorderly conduct, insubordination, harassment
of other employees or third parties, chronic abuse of alcohol or unprescribed controlled substances, improper disclosure of confidential
information, chronic and unexcused absenteeism, improper appropriation of a corporate opportunity or any other material violation
of the Company’s personnel policies, rules or codes of conduct or any fiduciary duty owed to the Company or its Affiliates,
or any applicable law or regulation to which the Company or its Affiliates are subject;

 

(iv)           an
Eligible Individual has committed any act of fraud, embezzlement, theft, dishonesty, misrepresentation or falsification of records;
or

 

(v)            an Eligible Individual has engaged in any act or omission that is likely to materially damage the Company’s business,
including, without limitation, damages to the Company’s reputation.

 

(f)           
“Change in Control” means:

 

(i)             the
acquisition by any individual, entity or group (within the meaning of Sections 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”)
of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of either (A) the
then outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (B) the
combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors
(the “Outstanding Company Voting Securities”); provided, however, that the following acquisitions by
a Person shall not constitute a Change in Control: (I) any acquisition directly from the Company; (II) any acquisition by the
Company; (III) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation
controlled by the Company; or (IV) any acquisition by any corporation pursuant to a transaction which complies with clauses (A),
(B), and (C) of Section 1(f)(iii) below;

 

(ii)            the
individuals who, as of the later of the date of the Effective Date or the last amendment to this Plan approved by the Board, constitute
the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board. Any
individual becoming a director subsequent to the later of the Effective Date or the date of the last amendment to this Plan approved
by the Board whose election, or nomination for election by the Company’s stockholders, is approved by the vote of at least
a majority of the directors then comprising the Incumbent Board will be considered a member of the Incumbent Board as of the later
of the Effective Date or the last amendment to the date of this Plan approved by the Board, but any such individual whose initial
assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of
directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Incumbent
Board will not be deemed a member of the Incumbent Board as of the later of the Effective Date or the date of the last amendment
to this Plan approved by the Plan;

 

(iii)           the
consummation of a reorganization, merger, consolidation or sale or other disposition of all or substantially all of the assets
of the Company (a “Business 

 

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Combination”),
unless following such Business Combination: (A) all or substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior
to such Business Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares
of common stock (or, for a non-corporate entity, equivalent securities) and the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from
such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company
or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially
the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding Company Common Stock
and Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding any corporation resulting from such Business
Combination or any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination)
beneficially owns, directly or indirectly, 30% or more of, respectively, the then outstanding shares of common stock (or, for
non- corporate entity, equivalent securities) of the corporation resulting from such Business Combination or the combined voting
power of the then outstanding voting securities of such corporation except to the extent that such ownership existed prior to
the Business Combination and (C) at least a majority of the members of the board of directors of the corporation resulting from
such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the
action of the Board, providing for such Business Combination; or

 

(iv)          the approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.

 

(g)           “CIC
Effective Date” means the date upon which a Change in Control occurs.

 

(h)          
“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended from time to time.

 

(i)            
“Code” means the Internal Revenue Code of 1986, as amended from time to time.

 

(j)             “Date of Termination” means (i) if the Eligible Individual’s employment with the Company and its
Affiliates is terminated by death, the date of such Eligible Individual’s death; (ii) if the Eligible Individual’s
employment is terminated because of the Eligible Individual becoming Disabled, then 30 days after the Notice of Termination is
given; or (iii) if (A) the Eligible Individual’s employment is terminated by the Company or any of its Affiliates with or
without Cause or (B) the Eligible Individual’s employment by the Eligible Individual with or without Good Reason, then,
in each case, the date specified in the Notice of Termination, which shall comply with the applicable notice requirements set
forth herein. Transfer of employment between and among the Company and its Affiliates, by itself, shall not constitute a termination
of employment for purposes of this Plan.

 

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(k)            “Disability” or “Disabled” as it relates to an Eligible Individual means when such
Eligible Individual (i) receives disability benefits under either Social Security or the applicable long- term disability plan
of the Company or its Affiliates, if any, or (ii) the Administrator, upon the written report of a qualified physician designated
by the Administrator or the insurer of the applicable long-term disability plan of the Company or its Affiliates, shall have determined
(after a complete physical examination of the Eligible Individual at any time after he has been absent from employment with the
Company or its Affiliates for 90 or more consecutive calendar days) that such Eligible Individual has become physically and/or
mentally incapable of performing such Eligible Individual’s essential job functions with or without reasonable accommodation
as required by law due to injury, illness, or other incapacity (physical or mental).

 

(l)             “Emergence
Grants” has the meaning assigned to it in the Restructuring Support Agreement.

 

(m)           “Employee Restrictive Covenants, Proprietary Information and Inventions Agreement” means that certain
Employee Restrictive Covenants, Proprietary Information and Inventions Agreement or, with respect to a Tier 5 Key Employee, that
certain Employee Proprietary Information and Inventions Agreement, as applicable, executed by an Eligible Individual.

 

(n)            “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

(o)            “Good Reason” shall exist in the event any of the following actions are taken without an Eligible Individual’s
consent:

 

(i)                
such Eligible Individual’s authority with Company or its Affiliates is, or such Eligible Individual’s duties
or responsibilities based on such Eligible Individual’s job title or job description are, materially diminished relative
to such Eligible Individual’s authority, duties and responsibilities as in effect immediately prior to such change, provided,
however, that in no event shall removal of such Eligible Individual from the position of manager, director or officer of any direct
or indirect Affiliate of the Company in connection with any corporate restructuring constitute Good Reason;

 

(ii)              
a reduction in such Eligible Individual’s annual base salary as in effect immediately prior to reduction in an amount
of 10% or more;

 

(iii)            
a relocation of such Eligible Individual’s primary work location more than 50 miles away from the then-current primary
work location; or

 

(iv)            
any material breach by the Company of any provision of this Plan or other material agreement between the Company and the
Eligible Individual.

 

(p)           “LTIP”
means the Company’s 2017 Long Term Incentive Plan or any successor equity incentive plan maintained by the Company.

 

(q)           “Notice of Termination” means a notice that indicates the specific termination provision in this Plan
relied upon and sets forth in reasonable detail the facts and

 

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circumstances
claimed to provide a basis for termination under the provision so indicated; provided, however, that any failure to provide such
detail shall not delay the effectiveness of the termination.

 

(r)           
“Post Termination Obligations” means any obligations owed by an Eligible Individual to the Company or
any of its Affiliates which survive such Eligible Individual’s employment with the Company or its Affiliates, including,
without limitation, those obligations and restrictive covenants (including covenants not to compete and not to solicit) set forth
in such Eligible Individual’s Employee Restrictive Covenants, Proprietary Information and Invention Agreement.

 

(s)            “Restructuring” has the meaning assigned to it in the Restructuring Support Agreement.

 

(t)           
“Restructuring Support Agreement” means the Restructuring Support and Lock-Up Agreement, dated as of
December 23, 2016, as amended, by and among the Company and each of its subsidiaries, certain holders of the Company’s 5.75%
Senior Notes due 2023 and 6.75% Senior Notes due 2021, NGL Energy Partners LP, and NGL Crude Logistics, LLC.

 

(u)           “Section 409A” means Section 409A of the Code and the regulations and administrative guidance issued
thereunder.

 

(v)           “Section
4999” means Section 4999 of the Code.

 

(w)          “Separation from Service” shall mean a “separation from service” as such term is defined
for purposes of Section 409A.

 

(x)            “Severance
Obligations” means (i) in the Case of a Tier 1 Executive, those Severance Obligations identified in Section 5(b)(i)(1)-(4)
of this Plan; (ii) in the case of a Tier 2 Executive, those Severance Obligations identified in Section 5(b)(ii)(1)-(4) of this
Plan; (iii) in the case of a Tier 3 Executive, those Severance Obligations identified in Section 5(b)(iii)(1)-(4) of this Plan;
(iv) in the case of a Tier 4 Executive, those Severance Obligations identified in Section 5(b)(iv)(1)-(4) of this Plan; and (v)
in the case of a Tier 5 Key Employee, those Severance Obligations identified in Section 5(b)(v)(1)-(4).

 

(y)            “Severance
Obligation Period” means (i) in the case of a Tier 1 Executive, the period beginning on the Date of Termination ending
3 years thereafter; (ii) in the case of a Tier 2 Executive, the period beginning on the Date of Termination and ending 2.5 years
thereafter; (iii) in the case of a Tier 3 Executive, the period beginning on the Date of Termination and ending 2 years thereafter;
(iv) in the case of a Tier 4 Executive, the period beginning on the Date of Termination and ending 1 year thereafter; and (v)
in the case of a Tier 5 Key Employee, the period beginning on the Date of Termination and ending 9 months thereafter.

 

(z)            “STIP” means the Company’s Short Term Incentive Program.

 

(aa)          “Tier 1 Executive” means an Eligible Individual identified as a “Tier 1 Executive” in accordance
with Exhibit A attached hereto.

 

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(bb)         “Tier
2 Executive” means an Eligible Individual identified as a “Tier 2 Executive” in accordance with Exhibit
A attached hereto.

 

(cc)          “Tier
3 Executive” means an Eligible Individual identified as a “Tier 3 Executive” in accordance with Exhibit
A attached hereto.

 

(dd)        
“Tier 4 Executive” means an Eligible Individual identified as a “Tier 4 Executive” in accordance
with Exhibit A attached hereto.

 

(ee)          “Tier 5 Key Employee” means an Eligible Individual identified as a “Tier 5 Key Employee”
in accordance with Exhibit A attached hereto.

 

(ff)           “Tier”
means the level at which an Eligible Individual is identified immediately prior to the Eligible Individual’s termination
of employment (without regard to any reduction in such Tier which constitutes Good Reason).

 

3.             Administration
of the Plan.

 

(a)               
Authority of the Administrator. This Plan will be administered by the Administrator. Subject to the express provisions
of this Plan and applicable law, the Administrator will have the authority, in its sole and absolute discretion, to: (i) adopt,
amend, and rescind administrative and interpretive rules and regulations related to this Plan, (ii) delegate its duties under
this Plan to such agents as it may appoint from time to time, and (iii) make all other determinations, perform all other acts
and exercise all other powers and authority necessary or advisable for administering this Plan, including the delegation of those
ministerial acts and responsibilities as the Administrator deems appropriate. The Administrator shall have complete discretion
and authority with respect to this Plan and its application except to the extent that discretion is expressly limited by this
Plan. The Administrator may correct any defect, supply any omission, or reconcile any inconsistency in this Plan in any manner
and to the extent it deems necessary or desirable to carry this Plan into effect, and the Administrator will be the sole and final
judge of that necessity or desirability. The determinations of the Administrator on the matters referred to in this Section 3(a)
will be final and conclusive.

 

(b)              
Manner of Exercise of Authority. Any action of, or determination by, the Administrator will be final, conclusive
and binding on all persons, including the Company, the Company’s Affiliates, the Board, the stockholders of the Company,
each Eligible Individual, or other persons claiming rights from or through an Eligible Individual. The express grant of any specific
power to the Administrator, and the taking of any action by the Administrator, will not be construed as limiting any power or
authority of the Administrator. The Administrator may delegate to officers of the Company, or committees thereof, the authority,
subject to such terms as the Administrator will determine, to perform such functions, including administrative functions, as the
Administrator may determine. The Administrator may appoint agents to assist it in administering this Plan.

 

(c)               
Limitation of Liability. The Administrator will be entitled to, in good faith, rely or act upon any report or other
information furnished to the Administrator by any officer or employee of the Company or any of its Affiliates, the Company’s
legal counsel, independent auditors, consultants or any other agents assisting in the administration of this Plan.

 

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The
Administrator and any officer or employee of the Company or any of its Affiliates acting at the direction or on behalf of the
Administrator will not be personally liable for any action or determination taken or made in good faith with respect to the Plan
and will, to the fullest extent permitted by law, be indemnified and held harmless by the Company with respect to any such action
or determination.

 

4.             Eligibility.
Each employee of the Company or any of its Affiliates eligible to receive the benefits described in this Plan as designated by
the Administrator (collectively the “Eligible Individuals” and each an “Eligible Individual”);
provided, that any individual who is entitled to severance or change in control benefits pursuant to a separate written agreement
between the Company (or one of its Affiliates) and the individual shall not be an Eligible Individual.

 

5.             Plan
Benefits.

 

(a)           Payment
of Accrued Obligations. In the event an Eligible Individual’s Date of Termination occurs for any reason, such Eligible
Individual shall be entitled to receive the Accrued Obligations. Participation in all benefit plans of the Company and its Affiliates
will terminate upon an Eligible Individual’s Date of Termination except as otherwise specifically provided in the applicable
plan.

 

(b)           Severance
Obligations. In the event an Eligible Individual’s employment with the Company and its Affiliates is terminated by death,
for Disability, by the Company or one of its Affiliates without Cause or by such Eligible Individual resigning such Eligible Individual’s
employment for Good Reason, the Company (or the Affiliate of the Company that is the employer of the Eligible Individual immediately
prior to termination) shall provide Severance Obligations set forth below, provided that the conditions of Sections 5(c) and 8
of this Plan have been fulfilled. Notwithstanding the foregoing, in the event that an Eligible Individual’s Date of Termination
occurs by reason of the Eligible Individual’s refusal to accept an offer of employment (including continued employment with
the Company or any of its Affiliates) in connection with a Change in Control or other corporate transaction and if such offer
of employment would not constitute a basis for a Good Reason termination, then the Eligible Individual shall not be entitled to
Severance Obligations under the Plan.

 

(i)             Tier 1 Executives. The Severance Obligations to a Tier 1 Executive shall be as follows:

 

(1)              
on the first business day 60 days after the Date of Termination, payment of a lump sum cash payment equal to 3 years of
such Tier 1 Executive’s then current Base Salary as of the Date of Termination, subject to applicable taxes and withholdings;

 

(2)              
on the first business day 60 days after the Date of Termination, payment of a lump sum cash payment equal to 300% of the
greater of (A) the annual average of any bonuses received by such Tier 1 Executive from the Company pursuant to the STIP in the
2 calendar years immediately before the Date of Termination

 

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and
(B) such Tier 1 Executive’s current “target” bonus amount, subject to applicable taxes and withholdings;

 

(3)              
immediately prior to the Date of Termination, immediate vesting of all equity incentives then held by such Tier 1 Executive
pursuant to the LTIP or otherwise, with payment of such equity incentives payable in accordance with the applicable award agreement;
provided that any such equity incentives that vest or are earned based on both continued employment and the achievement of performance
goals shall continue to vest or be earned upon achievement of such performance goals, notwithstanding the Date of Termination;
and

 

(4)              
if and to the extent permitted under applicable law and without additional cost or penalty to the Company or the Tier 1
Executive, during the portion, if any, of the 18- month period, commencing as of the date such Tier 1 Executive is eligible to
elect and timely elects to continue coverage for such Tier I Executive and such Tier 1 Executive’s eligible dependents under
the Company’s or an Affiliate’s group health plan pursuant to COBRA or similar state law, the Company (or the Affiliate
of the Company that is the Eligible Individual’s employer immediately prior to termination) shall reimburse such Tier 1
Executive for the difference between the amount such Tier 1 Executive pays to effect and continue such coverage and the employee
contribution amount that active senior executive employees of the Company or its applicable Affiliate pay for the same or similar
coverage, with any such reimbursement payable for the 60 day period immediately following the Date of Termination being payable
on the first business day 60 days following the Date of Termination and any other such reimbursement payable being paid on a monthly
basis thereafter.

 

(ii)            Tier
2 Executives. The Severance Obligations to a Tier 2 Executive shall be as follows:

 

(1)              
on the first business day 60 days after the Date of Termination, payment of a lump sum cash payment equal to 2.5 years
of such Tier 2 Executive’s then current Base Salary as of the Date of Termination, subject to applicable taxes and withholdings;

 

(2)              
on the first business day 60 days after the Date of Termination, payment of a lump sum cash payment equal to 250% of the
greater of (A) the annual average of any bonuses received by such Tier 2 Executive from the Company pursuant to the STIP in the
2 calendar years immediately before the Date of Termination and (B) such Tier 2 Executive’s current “target”
bonus amount, subject to applicable taxes and withholdings;

 

(3)              
immediately prior to the Date of Termination, immediate vesting of all equity incentives then held by such Tier 2 Executive
pursuant to the LTIP or otherwise, with payment of such equity incentives payable in accordance with the applicable award agreement;
provided that any such equity incentives that vest or are earned based on both continued employment and the achievement of performance
goals

 

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shall
continue to vest or be earned upon achievement of such performance goals, notwithstanding the Date of Termination; and

 

(4)              
if and to the extent permitted under applicable law and without additional cost or penalty to the Company or the Tier 2
Executive, during the portion, if any, of the 18- month period, commencing as of the date such Tier 2 Executive is eligible to
elect and timely elects to continue coverage for such Tier 2 Executive and such Tier 2 Executive’s eligible dependents under
the Company’s or an Affiliate’s group health plan pursuant to COBRA or similar state law, the Company (or the Affiliate
of the Company that is the Eligible Individual’s employer immediately prior to termination) shall reimburse such Tier 2
Executive on a monthly basis for the difference between the amount such Tier 2 Executive pays to effect and continue such coverage
and the employee contribution amount that active senior executive employees of the Company or the applicable Affiliate pay for
the same or similar coverage, with any such reimbursement payable for the 60 day period immediately following the Date of Termination
being payable on the first business day 60 days following the Date of Termination and any other such reimbursement payable being
paid on a monthly basis thereafter.

 

(iii)           Tier
3 Executives. The Severance Obligations to a Tier 3 Executive shall be as follows:

 

(1)              
on the first business day 60 days after the Date of Termination, payment of a lump sum cash payment equal to 2 years of
such Tier 3 Executive’s then current Base Salary as of the Date of Termination;

 

(2)              
on the first business day 60 days after the Date of Termination, payment of a lump sum cash payment equal to 200% of the
greater of (A) the annual average of any bonuses received by such Tier 3 Executive from the Company pursuant to the STIP in the
2 calendar years immediately before the Date of Termination and (B) such Tier 3 Executive’s current “target”
bonus amount, subject to applicable taxes and withholdings;

 

(3)              
immediately prior to the Date of Termination, immediate vesting of all equity incentives then held by such Tier 3 Executive
pursuant to the LTIP or otherwise, with payment of such equity incentives payable in accordance with the applicable award agreement;
provided that any such equity incentives that vest or are earned based on both continued employment and the achievement of performance
goals shall continue to vest or be earned upon achievement of such performance goals, notwithstanding the Date of Termination;
and

 

(4)              
if and to the extent permitted under applicable law and without additional cost or penalty to the Company or the Tier 3
Executive, during the portion, if any, of the 18- month period, commencing as of the date such Tier 3 Executive is eligible to
elect and timely elects to continue coverage for such Tier 3 Executive and such Tier 3 Executive’s eligible dependents under
the Company’s or an Affiliate’s group health plan pursuant to COBRA or similar state law, the Company (or the Affiliate
of the

 

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Company
that is the Eligible Individual’s employer immediately prior to termination) shall reimburse such Tier 3 Executive on a
monthly basis for the difference between the amount such Tier 3 Executive pays to effect and continue such coverage and the employee
contribution amount that active senior executive employees of the Company or its applicable Affiliate pay for the same or similar
coverage, with any such reimbursement payable for the 60 day period immediately following the Date of Termination being payable
on the first business day 60 days following the Date of Termination and any other such reimbursement payable being paid on a monthly
basis thereafter.

 

(iv)           Tier
4 Executives. The Severance Obligations to a Tier 4 Executive shall be as follows:

 

(1)              
on the first business day 60 days after the Date of Termination, payment of a lump sum cash payment equal to 1 year of
such Tier 4 Executive’s then current Base Salary as of the Date of Termination;

 

(2)              
on the first business day 60 days after the Date of Termination, payment of a lump sum cash payment equal to 100% of the
greater of (A) the annual average of any bonuses received by such Tier 4 Executive from the Company pursuant to the STIP in the
2 calendar years immediately before the Date of Termination and (B) such Tier 4 Executive’s current “target”
bonus amount, subject to applicable taxes and withholdings;

 

(3)              
immediately prior to the Date of Termination, immediate vesting of all equity incentives then held by such Tier 4 Executive
pursuant to the LTIP or otherwise, with payment of such equity incentives payable in accordance with the applicable award agreement;
provided that any such equity incentives that vest or are earned based on both continued employment and the achievement of performance
goals shall continue to vest or be earned upon achievement of such performance goals, notwithstanding the Date of Termination;
and

 

(4)              
if and to the extent permitted under applicable law and without additional cost or penalty to the Company or the Tier 4
Executive, during the portion, if any, of the 12- month period, commencing as of the date such Tier 4 Executive is eligible to
elect and timely elects to continue coverage for the Tier 4 Executive and such Tier 4 Executive’s eligible dependents under
the Company’s or an Affiliate’s group health plan pursuant to COBRA or similar state law, the Company (or the Affiliate
of the Company that is the Eligible Individual’s employer immediately prior to termination) shall reimburse such Tier 4
Executive on a monthly basis for the difference between the amount such Tier 4 Executive pays to effect and continue such coverage
and the employee contribution amount that active senior executive employees of the Company or its applicable Affiliate pay for
the same or similar coverage, with any such reimbursement payable for the 60 day period immediately following the Date of Termination
being payable on the first business day 60 days following the Date of Termination and any other such reimbursement payable being
paid on a monthly basis thereafter.

 

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(v)       Tier
5 Key Employees. The Severance Obligations to a Tier 5 Key Employee shall be as follows:

 

(1)              
on the first business day 60 days after the Date of Termination, payment of a lump sum cash payment equal to 9 months of
such Tier 5 Key Employee’s then current Base Salary as of the Date of Termination;

 

(2)              
on the first business day 60 days after the Date of Termination, payment of a lump sum cash payment equal to 75% of the
greater of (A) the annual average of any bonuses received by such Tier 5 Key Employee from the Company pursuant to the STIP in
the 2 calendar years immediately before the Date of Termination and (B) such Tier 5 Key Employee’s current “target”
bonus amount, subject to applicable taxes and withholdings;

 

(3)              
immediately prior to the Date of Termination, immediate vesting of all equity incentives then held by such Tier 5 Key Employee
pursuant to the LTIP or otherwise, with payment of such equity incentives payable in accordance with the applicable award agreement;
provided that any such equity incentives that vest or are earned based on both continued employment and the achievement of performance
goals shall continue to vest or be earned upon achievement of such performance goals, notwithstanding the Date of Termination;
and

 

(4)              
if and to the extent permitted under applicable law and without additional cost or penalty to the Company or the Tier 5
Key Employee, during the portion, if any, of the 9-month period, commencing as of the date such Tier 5 Key Employee is eligible
to elect and timely elects to continue coverage for the Tier 5 Key Employee and such Tier 5 Key Employee’s eligible dependents
under the Company’s or an Affiliate’s group health plan pursuant to COBRA or similar state law, the Company (or the
Affiliate of the Company that is the Eligible Individual’s employer immediately prior to termination) shall reimburse such
Tier 5 Key Employee on a monthly basis for the difference between the amount such Tier 5 Key Employee pays to effect and continue
such coverage and the employee contribution amount that active senior executive employees of the Company or its applicable Affiliate
pay for the same or similar coverage, with any such reimbursement payable for the 60 day period immediately following the Date
of Termination being payable on the first business day 60 days following the Date of Termination and any other such reimbursement
payable being paid on a monthly basis thereafter.

 

(c)               
Conditions to Severance Obligations. Notwithstanding Section 5(b) of this Plan, in no event shall an Eligible Individual
be entitled to the Severance Obligations unless such Eligible Individual (i) tenders their resignation as a member of the Board
and of the board of directors of any Affiliate (in each case, to the extent applicable) effective as of the Date of Termination
(the “Resignation”), and (ii) executes a General Release in a form and substance approved by the Administrator
(the “Release”) substantially similar to the Release attached hereto as Exhibit B, with any additional
customary terms as the Administrator may deem appropriate in the circumstances, and such Release is not revoked. The Eligible
Individual shall be eligible for the Severance Obligations only if the executed Release is returned to the

 

    -11-

    

    

Company
and becomes irrevocable within 60 days after the Date of Termination. Until the Release has become irrevocable, any such Severance
Obligations shall not be provided by the Company or any of its Affiliates. If an Eligible Individual fails to return the Resignation
so that it would, if accepted, be effective upon the Date of Termination, or fails to return the Release to the Company in sufficient
time so that the Release becomes irrevocable within 60 days after the Date of Termination, such Eligible Individual’s rights
to Severance Obligations shall be forfeited.

 

6.                 
Change in Control Benefits. Notwithstanding anything to the contrary that may be set forth in the LTIP or in any
grant agreement thereunder, if an Eligible Individual is employed by the Company or one of its Affiliates on the CIC Effective
Date and such Eligible Individual (a) resigns such Eligible Individual’s employment with the Company and its Affiliates
for Good Reason or (b) is terminated by the Company and its Affiliates without Cause, in each case, at any time within the eighteen-month
period following the CIC Effective Date, then such Eligible Individual shall be entitled to receive the Accrued Obligations and
Severance Obligations in accordance with Section 5 hereof.

 

7.                 
Parachute Payment Limitations. Notwithstanding any contrary provision in this Plan, if an Eligible Individual is
a “disqualified individual” (as defined in Section 280G of the Code), and the Severance Obligations that would
otherwise be paid to such Eligible Individual under this Plan together with any other payments or benefits that such Eligible
Individual has a right to receive from the Company (and affiliated entities required to be aggregated in accordance with Q/A-10
and Q/A-46 of Treas. Reg. §1.280G-1) (collectively, the “Payments”) would constitute a “parachute
payment” (as defined in Section 280G of the Code), the Payments shall be either (a) reduced (but not below zero) so
that the aggregate present value of such Payments and benefits received by the Eligible Individual from the Company and its Affiliates
shall be $1.00 less than three times such Eligible Individual’s “base amount” (as defined in Section
280G of the Code) (the “Safe Harbor Amount”) and so that no portion of such Payments received by such Eligible
Individual shall be subject to the excise tax imposed by Section 4999; or (b) paid in full, whichever produces the better net
after-tax result for such Eligible Individual (taking into account any applicable excise tax under Section 4999 and any applicable
federal, state and local income and employment taxes). The determination as to whether any such reduction in the amount of the
Payments is necessary shall be made by the Company in good faith and such determination shall be conclusive and binding on such
Eligible Individual. If reduced Payments are made to the Eligible Individual pursuant to this Section 7 and through error or otherwise
those Payments exceed the Safe Harbor Amount, the Eligible Individual shall immediately repay such excess to the Company or its
applicable Affiliate upon notification that an overpayment has been made.

 

The
reduction of Payments, if applicable, shall be made by reducing, first, Severance Obligations to be paid in cash hereunder in
the order in which such payments would be paid or provided (beginning with such payment or benefit that would be made last in
time and continuing, to the extent necessary, through to such payment or benefit that would be made first in time) and second,
by reducing any other cash payments that would be payable to the Eligible Individual outside of this Plan which are valued in
full for purposes of Code Section 280G in a similar order (last to first), any third, by reducing any equity acceleration hereunder
of awards which are valued in full for purposes of Section 280G of the Code in a similar order (last to first),

 

    -12-

    

    

and
finally, by reducing any other payments or benefit provided hereunder in a similar order (last to first).

 

8.             Conditions to Receipt of Severance Obligations.

 

(a)               
Compliance with Post-Termination Obligations. Notwithstanding anything contained in this Plan to the contrary, the
Company and its Affiliates shall have the right to cease providing any part of the Severance Obligations, and the Eligible Individual
shall be required to immediately repay the Company and its Affiliates for any Severance Obligations already provided, but all
other provisions of this Plan shall remain in full force and effect, if such Eligible Individual has been determined, pursuant
to the dispute resolution provisions hereof, not to have fully complied with such Eligible Individual’s Post-Termination
Obligations during the Severance Obligation Period or longer, as may be the case.

 

(b)              
Separation from Service Required. Notwithstanding anything contained in this Plan to the contrary, the Eligible
Individual shall be entitled to Severance Obligations only if such Eligible Individual’s termination of employment constitutes
a Separation from Service.

 

9.             Termination.

 

(a)               
Notice of Termination. Any termination of an Eligible Individual’s employment with the Company and its Affiliates
(other than termination as a result of death) shall be communicated by written Notice of Termination to, (i) in the case of termination
by an Eligible Individual, the Company or one of its Affiliates and (ii) in the case of termination by the Company and its Affiliates,
the Eligible Individual.

 

(b)              
Death. An Eligible Individual’s employment with the Company and its Affiliates shall terminate immediately
upon such Eligible Individual’s death.

 

(c)              
Disability. An Eligible Individual’s employment with the Company and its Affiliates shall terminate 30 days
after Notice of Termination is given by the Company or its Affiliates.

 

(d)              
For Cause.

 

(i)                
Subject to Section 9(d)(ii), the Company and its Affiliates shall be entitled to terminate an Eligible Individual’s
employment with the Company and its Affiliates immediately for any Cause.

 

(ii)              
If the Company or one of its Affiliates determines, in its sole discretion, that a cure is possible and appropriate, the
Company or the applicable Affiliate will give an Eligible Individual being terminated for Cause written notice of the acts or
omissions constituting Cause and no termination of such Eligible Individual’s employment with the Company and its Affiliates
for Cause shall occur unless and until such Eligible Individual fails to cure such acts or omissions within 10 days following
the receipt of such written notice. If the Company or one of its Affiliates determines, in its sole discretion, that a cure is
not possible or appropriate, an Eligible Individual being terminated for Cause shall have no notice or cure rights

 

    -13-

    

    

before
such Eligible Individual’s employment with the Company and its Affiliates is terminated for Cause.

 

(e)           Without Cause. The Company and its Affiliates shall be entitled to terminate an Eligible Individual’s employment
with the Company for any reason other than death, Disability or Cause, at any time by providing written notice to such Eligible
Individual that the Company and its Affiliates is terminating such Eligible Individual’s employment with the Company and
its Affiliates without Cause.

 

(f)            With Good Reason.

 

(i)                
Subject to Section 9(f)(ii), an Eligible Individual shall be permitted to terminate such Eligible Individual’s employment
with the Company and its Affiliates for any Good Reason.

 

(ii)              
To exercise an Eligible Individual’s right to terminate such Eligible Individual’s employment for Good Reason,
such Eligible Individual must provide written notice to the Company or one of its Affiliates of such Eligible Individual’s
belief that Good Reason exists within 90 days of the initial existence of the condition(s) giving rise to such Good Reason, and
such notice shall describe the conditions believed to constitute Good Reason. The Company and its Affiliates shall have 30 days
to remedy the Good Reason condition(s). If the condition(s) are not remedied during such 30-day period, such Eligible Individual
may terminate such Eligible Individual’s employment with the Company and its Affiliates for Good Reason by delivering a
Notice of Termination to the Company; provided, however, that such termination must occur no later than 180 days after
the date of the initial existence of the condition(s) giving rise to such Good Reason; otherwise, such Eligible Individual is
deemed to have accepted the condition(s), or the Company’s and its Affiliates correction of such condition(s), that may
have given rise to the existence of such Good Reason.

 

(g)         Without
Good Reason. An Eligible Individual shall be entitled to terminate such Eligible Individual’s employment with the Company
and its Affiliates at any time by providing 30 days written Notice of Termination to the Company or one of its Affiliates and
stating that such termination is without Good Reason, provided, however, that notwithstanding anything to the contrary
contained herein, the Company and its Affiliates shall be under no obligation to continue to employ such Eligible Individual for
such 30 day period.

 

(h)          Suspension
of Duties. Notwithstanding the foregoing provisions of this Section 9, the Company and its Affiliates may, to the extent doing
so would not result in the Eligible Individual’s Separation from Service, suspend an Eligible Individual from performing
such Eligible Individual’s duties, responsibilities, and authorities (including, without limitation, such Eligible Individual’s
duties, responsibilities and authorities as a member of the Board or the board of directors of any Affiliate) following the delivery
by such Eligible Individual of a Notice of Termination providing for such Eligible Individual’s resignation, or following
delivery by the Company or one of its Affiliates of a Notice of Termination providing for the termination of such Eligible Individual’s
employment for any reason; provided, however, that during the period of suspension (which shall end on or before
the Date of Termination), and subject to the legal rules applicable to any Company benefit plans under Section 401(a) of the Code
and the rules

 

    -14-

    

    

applicable
to nonqualified deferred compensation plans under Section 409A, such Eligible Individual shall continue to be treated as employed
by the Company and its Affiliates for other purposes, and such Eligible Individual’s rights to compensation or benefits
shall not be reduced by reason of the suspension; and provided, further, that any such suspension shall not affect the
determination of whether the resignation was for Good Reason or without Good Reason or whether the termination was for Cause or
without Cause. The Company and its Affiliates may suspend an Eligible Individual with pay pending an investigation authorized
by the Company or any of its Affiliates or a governmental authority in order to determine whether such Eligible Individual has
engaged in acts or omissions constituting Cause, and in such case the paid suspension shall not constitute a termination of such
Eligible Individual’s employment with the Company and its Affiliates; provided, however, that such suspension
shall not continue past the time that the Eligible Individual would incur a Separation from Service (at such point, the Company
shall either terminate the Eligible Individual in accordance with this Plan or have the Eligible Individual return to active employment).

 

10.           General
Provisions.

 

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

 

(b)              
Offsets and Substitutions. Pursuant to Reg. § 1.409A-3(j)(4)(xiii), the Company and its Affiliates may set
off against, and each Eligible Individual authorizes the Company and its Affiliates to deduct from, any payments due to such Eligible
Individual, or to such Eligible Individual’s estate, heirs, legal representatives or successors, any amounts which may be
due and owing to the Company or an Affiliate by such Eligible Individual, arising in the ordinary course of business whether under
this Plan or otherwise; provided that no such deduction may exceed $5,000 and the deduction is made at the same time and in the
same amount as the amount otherwise would have been due and collected from such Eligible Individual. Such Eligible Individual
shall pay to the Company and its Affiliates all other obligations to the Company and its Affiliates. To the extent that any amounts
would otherwise be payable (or benefits would otherwise be provided) to an Eligible Individual under another plan of the Company
or its Affiliates or an agreement with the Eligible Individual and the Company or its Affiliates, including a change in control
plan or agreement, an offer letter or letter agreement, or to the extent that an Eligible Individual moves between Tiers, and
to the extent that such other payments or benefits or the Severance Obligations provided under this Plan are subject to Section
409A, the Plan shall be administered to ensure that no payment or benefit under the Plan will be (i) accelerated in violation
of Section 409A or (ii) further deferred in violation of Section 409A.

 

(c)            Term
of this Plan; Amendment and Termination.

 

(i)             Prior to a Change in Control, this Plan may be amended or modified in any respect, and may be terminated, in any such case,
by resolution adopted by the

 

    -15-

    

    

Administrator
and at least two-thirds (2/3) of the Board; provided, however, that no such amendment, modification or termination that
is adopted within one (1) year prior to a Change in Control that would adversely affect the benefits or protections hereunder
of any Eligible Individual as of the date such amendment, modification or termination is adopted shall be effective as it relates
to such Eligible Individual; provided, further, however, that this Plan may not be amended, modified or terminated, (A)
at the request of a third party who has indicated an intention or taken steps to effect a Change in Control and who effectuates
a Change in Control, or (B) otherwise in connection with, or in anticipation of, a Change in Control that actually occurs; any
such attempted amendment, modification or termination being null and void ab initio. Any action taken to amend, modify
or terminate this Plan which is taken subsequent to the execution of an agreement providing for a transaction or transactions
which, if consummated, would constitute a Change in Control shall conclusively be presumed to have been taken in connection with
a Change in Control. For a period of two (2) years following the occurrence of a Change in Control, this Plan may not be amended
or modified in any manner that would in any way adversely affect the benefits or protections provided hereunder to any Eligible
Individual under this Plan on the date the Change in Control occurs.

 

(ii)              
Notwithstanding the provisions of paragraph (i), the Company may terminate and liquidate the Plan in accordance with the
provisions of Section 409A.

 

(iii)            
Notwithstanding the foregoing, no amendment, modification or termination of this Plan shall adversely affect any Eligible
Individual’s entitlement to payments under this Plan prior to such amendment, modification or termination (other than as
required to permit termination of the Plan in accordance with Section 409A), nor shall such amendment, modification or termination
relieve the Company of its obligation to pay benefits to Eligible Individuals as otherwise set forth herein, except as otherwise
consented to by such Eligible Individual.

 

(iv)            
Notwithstanding the foregoing or any other provision of this Plan, (A) the Restructuring and any associated organizational
changes that occurred prior to the Effective Date shall not constitute a Change in Control or serve as a basis to trigger payments
under this Plan, and (B) this Plan (including without limitation Sections 2(e), 2(f), 2(o), 5(b)(i)(3), 5(b)(ii)(3), 5(b)(iii)(3),
5(b)(iv)(3) or 5(b)(v)(3)) may not be amended or modified in any manner that would impair vesting (including accelerated vesting)
of the Emergence Grants.

 

(d)           Successors.
This Plan shall bind and inure to the benefit of and be enforceable by any Eligible Individual and the Company and their respective
successors, permitted assigns, heirs and personal representatives and estates, as the case may be. Neither this Plan nor any right
or obligation hereunder of the Company, any of its Affiliates or any Eligible Individual may be assigned or delegated without
the prior written consent of the other party; provided, however, that the Company may assign this Plan to any of its Affiliates
and an Eligible Individual may direct payment of any benefits that will accrue upon death. An Eligible Individual shall not have
any right to pledge, hypothecate, anticipate or in any way create a lien upon any payments or other benefits provided under this
Plan; and no benefits payable under this Plan shall be assignable in anticipation of payment either by voluntary or involuntary
acts, or by operation of law, except by will or pursuant to the laws of descent and distribution. This Plan

 

    -16-

    

    

shall
not confer any rights or remedies upon any person or legal entity other than the Company, its Affiliates and Eligible Individuals
and their respective successors and permitted assigns.

 

(e)               
Unfunded Obligation. All benefits due an Eligible Individual under this Plan are unfunded and unsecured and are
payable out of the general funds of the Company and its Affiliates.

 

(f)               
Directed Payments. If any Eligible Individual is determined by the Administrator to be Disabled, the Administrator
may cause the payment or payments becoming due to such Eligible Individual to be made to another person for such person’s
benefit without responsibility on the part of the Administrator or the Company and its Affiliates to follow the application of
such funds.

 

(g)              
Limitation on Rights Conferred Under Plan. Neither this Plan nor any action taken hereunder will be construed as
(i) giving an Eligible Individual the right to continue 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 an Eligible Individual’s employment or service at
any time; or (iii) giving an Eligible Individual any claim to be treated uniformly with other employees of the Company or any
of its Affiliates. The provisions of this document supersede any oral statements made by any employee, officer, or Board member
of the Company or any of its Affiliates regarding eligibility, severance payments and benefits.

 

(h)              
Governing Law. All questions arising with respect to the provisions of the Plan and payments due hereunder will
be determined by application of the laws of the State of Colorado, without giving effect to any conflict of law provisions thereof,
except to the extent Colorado law is preempted by federal law.

 

(i)                
Dispute Resolution. Any and all disputes, claims or controversies arising out of or relating to this Plan that are
not resolved by their mutual agreement (A) shall be brought by an Eligible Individual in such Eligible Individual’s individual
capacity, and not as a plaintiff or class member in any purported class or representative proceeding and (B) shall be submitted
to final and binding arbitration before Judicial Arbiter Group (“JAG”), or its successor. The arbitration process
shall be commenced by filing a written demand for arbitration with JAG, with a copy to the Company. The arbitration will be conducted
in accordance with the provisions of JAG’s arbitration rules and procedures in effect at the time of filing of the demand
for arbitration. The Company and such Eligible Individual will cooperate with JAG and with one another in selecting a single arbitrator
from JAG’s panel of neutrals, and in scheduling the arbitration proceedings, which shall take place in Denver, Colorado.
The provisions of this section 10(i) may be enforced by any Court of competent jurisdiction.

 

(j)                
Severability. The invalidity or unenforceability of any provision of the Plan will not affect the validity or enforceability
of any other provision of the Plan, which will remain in full force and effect, and any prohibition or unenforceability in any
jurisdiction will not invalidate that provision, or render it unenforceable, in any other jurisdiction.

 

    -17-

    

    

(k)            Section
409A.

 

(i)                
This Plan is intended to comply with Section 409A and shall be construed and operated accordingly. The Company may amend
this Plan at any time to the extent necessary to comply with Section 409A. Any Eligible Employee shall perform any act, or refrain
from performing any act, as reasonably requested by the Company to comply with any correction procedure promulgated pursuant to
Section 409A.

 

(ii)              
To the extent required to avoid the imposition of penalties or interest under Section 409A, any payment or benefit to be
paid or provided on account of an Eligible Individual’s Separation from Service to an Eligible Individual who is a specified
employee (within the meaning of Section 409A(a)(2)(B) of the Code) that would be paid or provided prior to the first day of the
seventh month following the Eligible Individual’s Separation from Service shall be paid or provided on the first day of
the seventh month following the Eligible Individual’s Separation from Service or, if earlier, the date of the Eligible Individual’s
death.

 

(iii)            
Each payment to be made under this Plan is a separately identifiable or designated amount for purposes of Section 409A.

 

(l)             PHSA
§ 2716. Notwithstanding anything to the contrary in this Plan, in the event that the Company or any of its Affiliates
is subject to the sanctions imposed pursuant to § 2716 of the Public Health Service Act by reason of this Plan, the
Company may amend this Plan at any time with the goal of giving Employee the economic benefits described herein in a manner that
does not result in such sanctions being imposed.

 

[Signature
Page Follows]

 

    -18-

    

    

IN
WITNESS WHEREOF, the Company has adopted this Third Amended and Restated Executive Change in Control and Severance Plan as of
the Effective Date.

 

 

 

	 	Bonanza Creek Energy, Inc.
	 	 	 
	 	By: 	/s/ CYRUS D. MARTER IV
	 	Name:     	Cyrus D. Marter IV
	 	Title:	Senior Vice President, General Counsel & Secretary

 

    

    

    

Exhibit
A

Executive and Key Employee Tiers

 

	Tier	Position
	Tier
    1	President
    and Chief Executive Officer
	Tier
    2	Executive
    Vice President
	Tier
    3	Senior
    Vice President
	Tier
    4	Vice
    President
	Tier
    5	Director,
    Senior Manager, Manager, and other key employee designated by the Administrator

    A-1

    

    

Exhibit
b

Form of General Release

 

1.       The
undersigned (“Employee”), on Employee’s own behalf and on behalf of Employee’s heirs, agents, representatives,
attorneys, assigns, executors and/or anyone acting on Employee’s behalf, and in consideration of the promises, assurances,
and covenants set forth in the Executive Change In Control And Severance Plan, under which Employee is an Eligible Individual,
but to which Employee is not automatically entitled, including, but not limited to, the payment of any severance thereunder, hereby
fully releases Bonanza Creek Energy, Inc. and its successors or affiliates (the “Company”), its parents, subsidiaries,
officers, shareholders, partners, members, individual employees, agents, representatives, directors, employees, attorneys, successors,
and anyone acting on its behalf, known or unknown, from all claims and causes of action by reason of any injuries and/or damages
or losses, known or unknown, foreseen or unforeseen, patent or latent which Employee has sustained or which may be sustained as
a result of any facts and circumstances arising out of or in any way related to Employee’s employment by the Company or
the termination of that employment, and to any other disputes, claims, disagreements, or controversies between Employee and the
Company up to and including the date this release is signed by Employee. Employee’s release includes, but is not limited
to, any contract benefits, claims for quantum meruit, claims for wages, bonuses, employment benefits, moving expenses, stock options,
profits units, or damages of any kind whatsoever, arising out of any contracts, express or implied, any covenant of good faith
and fair dealing, express or implied, any theory of unlawful discharge, torts and related damages (including, but not limited
to, emotional distress, loss of consortium, and defamation) any legal restriction on the Company’s right to terminate Employee’s
employment and/or services, or any federal, state or other governmental statute or ordinance, including, without limitation, Title
VII of the Civil Rights Act of 1964 (as amended), the federal Age Discrimination in Employment Act of 1967 (29 U.S.C. § 21,
et seq.) (as amended) (“ADEA”), the federal Americans with Disabilities Act of 1990, any state laws concerning
discrimination or harassment including the Fair Employment and Housing Act, or any other legal limitation on contractual or employment
relationships, and any and all claims for any loss, cost, damage, or expense with respect to Employee’s liability for taxes,
penalties, interest or additions to tax on or with respect to any amount received from the Company or otherwise includible in
Employee’s gross income, including, but not limited to, any liability for taxes, penalties, interest or additions to tax
arising from the failure of this Agreement, or any other employment, severance, profit sharing, bonus, equity incentive or other
compensatory plan to which Employee and the Company are or were parties, to comply with, or to be operated in compliance with
the Internal Revenue Code of 1986, as amended, including, but not limited to, Section 409A thereof, or any provision of state
or local income tax law; provided, however, that notwithstanding the foregoing, the release set forth in this Section shall
not extend to: (a) any rights to payments, including severance, arising under Employee’s Employment Agreement; (b) any vested
rights under any pension, retirement, profit sharing or similar plan; or (c) Employee’s rights, if any, to indemnification
or defense under the Company’s certificate of incorporation, bylaws and/or policy or procedure, any indemnification agreement
with Employee or under any insurance contract, in connection with Employee’s acts or omissions within the course and scope
of Employee’s employment with the Company (this “Release”).

 

    B-1

    

    

2.       [Employee
acknowledges that Employee is knowingly and voluntarily waiving and releasing any rights Employee may have under the ADEA. Employee
also acknowledges that the consideration given for the waiver and release hereunder is in addition to anything of value to which
Employee is already entitled. Employee further acknowledges that Employee has been advised by this writing, as required by the
ADEA, that: (a) Employee’s waiver and release hereunder do not apply to any rights or claims that may arise after the execution
date of this release; (b) Employee has been advised hereby that Employee has the right to consult with an attorney prior to executing
this release; (c) Employee has twenty-one (21) days to consider this release (although Employee may choose to voluntarily execute
this release earlier); (d) Employee has seven (7) days following the execution of this Release to revoke this Release; and (e)
this Release will not be effective until the date upon which the revocation period has expired, which will be the eighth (8th)
day after this Release is executed by Employee (the “Effective Date”).]

 

3.       Excluded
from this Release are any claims which by law cannot be waived in a private agreement between an employer and employee. Moreover,
this Release does not prohibit Employee from filing a charge with the Equal Employment Opportunity Commission (the “EEOC”)
or equivalent state agency in Employee’s state or participating in an EEOC or state agency investigation; provided, however,
Employee hereby agrees to waive Employee’s right to monetary or other recovery should any claim be pursued with the EEOC,
state agency, or any other federal, state or local administrative agency arising out of or related to Employee’s employment
with and/or separation from the Company.

 

4.       Employee
acknowledges that Employee executed an [Employee Restrictive Covenants, Proprietary Information and Inventions Agreement] or
[Employee Proprietary Information and Inventions Agreement] under which Employee assumed certain obligations relating to the
Company’s confidential and proprietary business information and trade secrets and containing certain covenants relating
to competition, solicitation and assignment of invention (“Employee Proprietary Information and Inventions Agreement”).
Employee agrees that, notwithstanding any other provision of this Release, the Employee Proprietary Information and Inventions
Agreement shall by its terms survive the execution of this Release and that the parties’ rights and duties thereunder shall
not in any way be affected by this Release. Employee also warrants and represents that Employee has returned any and all documents
and other property of the Company constituting a trade secret or other confidential research, development or commercial information
in Employee’s possession, custody or control, and represents and warrants that Employee has not retained any copies or originals
of any such property of the Company. Employee further warrants and represents that Employee has never violated the Employee Proprietary
Information and Inventions Agreement, and will not do so in the future.

 

5.       Employee
acknowledges that because of Employee’s position with the Company, Employee may possess information that may be relevant
to or discoverable in connection with claims, litigation or judicial, arbitral or investigative proceedings initiated by a private
party or by a regulator, governmental entity, or self-regulatory organization, that relates to or arises from matters with which
Employee was involved during Employee’s employment with the Company, or that concern matters of which Employee has information
or knowledge (collectively, a “Proceeding”). Employee agrees that Employee shall testify truthfully in connection
with any such Proceeding, shall cooperate with the Company in connection with every such Proceeding, and that Employee’s
duty of cooperation shall include an obligation to meet with the Company

 

    B-2

    

    

representatives
and/or counsel concerning all such Proceedings for such purposes, and at such times and places, as the Company reasonably requests,
and to appear for deposition and/or testimony upon the Company’s request and without a subpoena. The Company shall reimburse
Employee for reasonable out-of-pocket expenses that Employee incurs in honoring Employee’s obligation of cooperation under
this Section.

 

6.       Employee
and the Company understand and agree that it is in their mutual best interest to minimize the effect of Employee’s separation
upon the Company’s business and upon Employee’s professional reputation. Accordingly, Employee agrees to take all
actions reasonably requested of Employee by the Company in order to accomplish that objective. To this end, Employee shall consult
with the Company concerning business matters on an as-needed and as-requested basis, the Company shall exercise reasonable efforts
to avoid conflicts between such consulting and Employee’s personal and other business commitments, and Employee shall exercise
reasonable efforts to fulfill the Company’s consulting requests in a timely manner.

 

7.       Employee
covenants never to disparage or speak ill of the Company or any the Company product or service, or of any past or present employee,
officer or director of the Company, nor shall Employee at any time harass or behave unprofessionally toward any past, present
or future the Company employee, officer or director.

 

8.       Release
of Unknown Claims. It is the intention of Employee that this Release is a general release which shall be effective as a bar
to each and every claim, demand, or cause of action it releases. Employee recognizes that Employee may have some claim, demand,
or cause of action against the Company of which Employee is totally unaware and unsuspecting which Employee is giving up by execution
of this release. It is the intention of Employee in executing this Release that it will deprive Employee of each such claim, demand
or cause of action and prevent Employee from asserting it against the released parties.

 

	 	[Employee Name]
	 	 	 
	 	By:	 
	 	 	 

 

 

 

    B-3Exhibit 10.7

  

 

INDEMNITY
AGREEMENT

 

This
Agreement made and entered into as of April 28, 2017, by and between Bonanza Creek Energy, Inc., a Delaware corporation (the
“Company”), and                         (“Indemnitee”), who is currently serving the Company in the capacity
of director.

 

WITNESSETH:

 

WHEREAS,
the Company and Indemnitee recognize that the interpretation of ambiguous statutes, regulations and court opinions and of the
Third Amended and Restated Certificate of Incorporation of the Company (the “Certificate of Incorporation”)
and the Fourth Amended and Restated Bylaws of the Company (the “Bylaws”), and the vagaries of public policy,
are too uncertain to provide the directors and executive officers of the Company with adequate or reliable advance knowledge or
guidance with respect to the legal risks and potential liabilities to which they become personally exposed as a result of performing
their duties in good faith for the Company;

 

WHEREAS,
competent and experienced individuals are reluctant to serve as members of the board of directors or executive officers of a corporation
unless they are provided with adequate protection through insurance or indemnification against the risks of claims and actions
against them arising out of such service;

 

WHEREAS,
Section 145 of the General Corporation Law of the State of Delaware and the Certificate of Incorporation, which set forth certain
provisions relating to the mandatory and permissive indemnification of, and advancement of expenses to, officers and directors
(among others) of a Delaware corporation by such corporation, are specifically not exclusive of other rights to which those indemnified
thereunder may be entitled under any bylaw, agreement, vote of stockholders or disinterested directors or otherwise;

 

WHEREAS,
after due consideration and investigation of the terms and provisions of this Agreement and the various other options available
to the Company and the Indemnitee in lieu thereof, the Board of Directors of the Company (the “Board of Directors”)
has determined that the following Agreement is not only reasonable and prudent but necessary to promote and ensure the best interests
of the Company and its stockholders; and

 

WHEREAS,
the Company desires to have Indemnitee to serve or continue to serve as a director or executive officer of the Company, free from
undue concern for unpredictable, inappropriate or unreasonable legal risks and personal liabilities by reason of his acting in
good faith in the performance of his duty to the Company; and Indemnitee desires to serve (provided that he is furnished the indemnity
provided for hereinafter), in such capacity;

 

NOW,
THEREFORE, in consideration of the premises and the mutual agreements herein set forth and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and Indemnitee, intending to be legally bound, do hereby
agree as follows:

 

1.                 
Agreement to Serve. Indemnitee agrees to serve or continue to serve as a director or executive officer of the Company
for so long as he is duly appointed and qualified in accordance with the provisions of the General Corporation Law of the State
of Delaware and the Certificate of Incorporation and the Bylaws or until such time as he tenders his resignation. The Company
acknowledges that the Indemnitee is relying on this Agreement in so serving as a director or executive officer.

 

     

     

    

2.                 
Definitions. As used in this Agreement:

 

(a)               
“Change in Control” means the occurrence of any of the following:

 

(i)                
the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of 30% or more of either (A) the then outstanding shares of common stock of the Company (the “Outstanding
Company Common Stock”) or (B) the combined voting power of the then outstanding voting securities of the Company entitled
to vote generally in the election of directors (the “Outstanding Company Voting Securities”). For purposes
of this Section 2(a), the following acquisitions by a Person will not constitute a Change of Control: (1) any acquisition directly
from the Company; (2) any acquisition by the Company; (3) any acquisition by any employee benefit plan (or related trust) sponsored
or maintained by the Company or any corporation controlled by the Company; or (4) any acquisition by any corporation pursuant
to a transaction which complies with clauses (A), (B) and (C) of paragraph (iii) below;

 

(ii)              
the individuals who, as of the later of the date hereof or the last amendment to this Agreement approved by the Board of
Directors, constitute the board of directors (the “Incumbent Board”) cease for any reason to constitute at least a
majority of the board of directors. Any individual becoming a director subsequent to the later of the date hereof or the last
amendment to this Agreement approved by the Board of Directors whose election, or nomination for election by the Company’s
stockholders, is approved by a vote of at least a majority of the directors then comprising the Incumbent Board of Directors will
be considered a member of the Incumbent Board as of the later of the date hereof or the last amendment to this Agreement approved
by the Board of Directors, but any such individual whose initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Incumbent Board of Directors will not be deemed a member of the Incumbent
Board as of the later of the date hereof or the last amendment to this Agreement approved by the Board of Directors;

 

(iii)            
the consummation of a reorganization, merger, consolidation or sale or other disposition of all or substantially all of
the assets of the Company (a “Business Combination”), unless following such Business Combination: (A) all or
substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common
Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly,
more than 60% of, respectively, the then outstanding shares of common stock (or, for a non-corporate entity, equivalent securities)
and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors,
as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation
which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly
or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business
Combination of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (B) no Person
(excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of the Company
or such corporation resulting from such Business 

 

     2

     

    

Combination)
beneficially owns, directly or indirectly, 30% or more of, respectively, the then outstanding shares of common stock (or, for
a non-corporate entity, equivalent securities) of the corporation resulting from such Business Combination or the combined voting
power of the then outstanding voting securities of such corporation except to the extent that such ownership existed prior to
the Business Combination and (C) at least a majority of the members of the board of directors of the corporation resulting from
such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the
action of the Board of Directors, providing for such Business Combination; or

 

(iv)            
the approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.

 

(b)              
“Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding
in respect of which indemnification is sought by Indemnitee.

 

(c)               
“Enterprise” shall mean any other corporation, limited liability company, partnership, joint venture,
trust, employee benefit plan, organization or other enterprise of which Indemnitee is or was serving at the request of the Company
as a director, officer, trustee, general partner, managing member, fiduciary, employee or agent.

 

(d)              
The term “Expenses” includes, without limitation, all reasonable attorneys’ fees, retainers, court
costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone
charges, postage, delivery service fees and all other disbursements or expenses of the types customarily incurred in connection
with prosecuting, defending, preparing to prosecute or defend, investigating, or being or preparing to be a witness in, or otherwise
involved in, a Proceeding. Should any payments by the Company under this Agreement be determined to be subject to any federal,
state or local income or excise tax, Expenses will also include such amounts as are necessary to place Indemnitee in the same
after-tax position, after giving effect to all applicable taxes, Indemnitee would have been in had such tax not have been determined
to apply to those payments. Expenses also shall include (i) Expenses incurred in connection with any appeal resulting from any
Proceeding, including, without limitation, the premium, security for, and other costs relating to any cost bond, supersedeas bond,
or other appeal bond or its equivalent and (ii) Expenses incurred by Indemnitee in connection with the interpretation, enforcement
or defense of Indemnitee’s rights under this Agreement, by litigation or otherwise, but shall not include the amount of
judgments, fines or penalties actually levied against Indemnitee.

 

(e)               
“Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of
corporation law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee
in any matter material to either such party (other than with respect to matters concerning the Indemnitee under this Agreement,
or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a
claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include
any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing
either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. The Company agrees
to pay the reasonable fees and expenses of the Independent Counsel referred to above and to fully indemnify such counsel against
any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant
hereto.

 

     3

     

    

(f)               
“Proceeding” shall mean any threatened, pending or completed action, suit, or proceeding, whether civil,
criminal, administrative, arbitrative or investigative, any appeal in such an action, suit, or proceeding, and any inquiry or
investigation that could lead to such an action, suit or proceeding irrespective of the initiator thereof. The final disposition
of a Proceeding shall be as determined by a settlement or the judgment of a court or other investigative or administrative body.
The Board of Directors shall not make a determination as to the final disposition of a Proceeding.

 

(g)               
References to “fines” shall include any (i) excise taxes assessed with respect to any employee benefit
plan and (ii) penalties; references to “serving at the request of the Company” shall include any service as a director,
officer, trustee, general partner, managing member, fiduciary, employee or agent which imposes duties on, or involves services
by, such director, officer, trustee, general partner, managing member, fiduciary, employee or agent with respect to an Enterprise;
and a person who acts in good faith and in a manner he reasonably believed to be in the interest of the Enterprise shall be deemed
to have acted in a manner “not opposed to the best interests of the Company” as referred to in this Agreement.

 

3.                 
Indemnity in Third Party Proceedings. The Company shall indemnify Indemnitee in accordance with the provisions of this
Section 3 if Indemnitee is a party to or is threatened to be made a party to or is otherwise involved in any Proceeding (other
than a Proceeding by or in the right of the Company to procure a judgment in its favor) by reason of the fact that Indemnitee
is or was a director or executive officer of the Company, or was serving at the request of the Company as a director, officer,
trustee, general partner, managing member, fiduciary, employee or agent of an Enterprise, against all Expenses, judgments, fines
and amounts paid in settlement actually and reasonably incurred by Indemnitee (or on his behalf) in connection with such Proceeding
or any claim, issue or matter therein, provided it is determined pursuant to Section 8 of this Agreement or by the court having
jurisdiction in the matter, that Indemnitee acted in good faith and in a manner that he reasonably believed to be in or not opposed
to the best interests of the Company, and, with respect to any criminal Proceeding, had no reasonable cause to believe his conduct
was unlawful. The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction,
or upon a plea of nolo contendere or its equivalent, shall not, of itself, adversely affect the right of Indemnitee to indemnification
or create a presumption that Indemnitee did not act in good faith and in a manner that he reasonably believed to be in or not
opposed to the best interests of the Company, or, with respect to any criminal Proceeding, had reasonable cause to believe that
his conduct was unlawful.

 

4.                 
Indemnity in Proceedings By or In the Right of the Company. The Company shall indemnify Indemnitee in accordance with
the provisions of this Section 4 if Indemnitee is a party to or is threatened to be made a party to or otherwise involved in any
Proceeding by or in the right of the Company to procure a judgment in its favor by reason of the fact that Indemnitee is or was
a director or executive officer of the Company, or is or was serving at the request of the Company as a director, officer, trustee,
general partner, managing member, fiduciary, employee or agent of an Enterprise, against all Expenses actually and reasonably
incurred by Indemnitee (or on his behalf) in connection with such Proceeding provided it is determined pursuant to Section 8 of
this Agreement or by the court having jurisdiction in the matter, that Indemnitee acted in good faith and in a manner that he
reasonably believed to be in or not opposed to the best interests of the Company, except that no indemnification shall be made
under this Section 4 in respect of any claim, issue or matter as to which Indemnitee shall have been adjudged to be liable to
the Company unless and only to the extent that the Delaware Court of Chancery or the court in which such Proceeding was brought
or is pending, shall determine upon application that, despite the adjudication of liability but in view of all the circumstances
of the case, Indemnitee is fairly and reasonably entitled to indemnity for such Expenses as the Delaware Court of Chancery or
such other court shall deem proper.

 

 

     4

     

    

 

5.                 
Indemnification for Expenses of a Witness. Notwithstanding any other provision of this Agreement, to the extent that
Indemnitee is, by reason of the fact that Indemnitee is or was a director or executive officer of the Company, or is or was serving
at the request of the Company as a director, officer, trustee, general partner, managing member, fiduciary, employee or agent
of an Enterprise, a witness in any Proceeding to which Indemnitee is not a party, he shall be indemnified against all Expenses
actually and reasonably incurred by Indemnitee (or on his behalf) in connection therewith.

 

6.                 
Indemnification for Expenses of Successful Party. Notwithstanding any other provision of this Agreement to the contrary,
to the extent that Indemnitee has been successful on the merits or otherwise in defense of any Proceeding referred to in Sections
3 and/or 4 of this Agreement, or in defense of any claim, issue or matter therein, including dismissal with or without prejudice,
Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by Indemnitee (or on his behalf) in connection
therewith. If Indemnitee is not wholly successful in any Proceeding referred to in Sections 3 and/or 4 of this Agreement, but
is successful on the merits or otherwise (including dismissal with or without prejudice) as to one or more, but less than all
claims, issues or matters therein, including dismissal without prejudice, Indemnitee shall be indemnified against all Expenses
actually and reasonably incurred by Indemnitee (or on his behalf) in connection with each successfully resolved claim, issue or
matter. For purposes of this Section 6, and without limitation, the termination of any claim, issue or matter in any Proceeding
referred to in Sections 3 and/or 4 of this Agreement by dismissal, with or without prejudice, shall be deemed to be a successful
result as to such claim, issue or matter.

 

7.                 
Advances of Expenses; Notification and Defense of Claim.

 

(a)               
To the fullest extent permitted by applicable law, the Expenses incurred by Indemnitee pursuant to Sections 3 and/or 4
of this Agreement in connection with any Proceeding or any claim, issue or matter therein shall be paid by the Company currently
and in advance of the final disposition of such Proceeding or any claim, issue or matter therein no later than 20 days after receipt
by the Company of a request for an Expense advancement with appropriate documentation (which shall include invoices received by
Indemnitee in connection with such expenses but, in the case of invoices in connection with legal services, any references to
legal work performed or to expenditures made that would cause Indemnitee to waive any privilege accorded by applicable law shall
not be included with the invoice); provided, however, that Indemnitee shall deliver such request for an Expense advancement to
the Company within 60 days after the Indemnitee receives appropriate documentation with regard to such Expense. The undersigned
Indemnitee hereby undertakes to repay the advanced Expenses to the Company to the extent that it is ultimately determined pursuant
to Section 8, or, in the event the Indemnitee elects to pursue other remedies pursuant to Section 10, that the undersigned Indemnitee
is not entitled to be indemnified therefor by the Company. This agreement of Indemnitee to repay is unsecured and interest free.

 

(b)              
Promptly after receipt by Indemnitee of notice of the commencement of any Proceeding, Indemnitee shall, if a claim thereof
is to be made against the Company hereunder, notify the Company of the commencement thereof. The failure to promptly notify the
Company of the commencement of the Proceeding, or Indemnitee’s request for indemnification, will not relieve the Company
from any liability that it may have to Indemnitee hereunder, except to the extent that the Company is prejudiced in its defense
of such Proceeding as a result of such failure.

 

(c)               
In the event the Company shall be obligated to pay the expenses of Indemnitee with respect to an action, suit or proceeding,
as provided in this Agreement, the Company, if appropriate, shall be entitled to assume the defense of such Proceeding, with counsel
reasonably acceptable to Indemnitee, upon the delivery to Indemnitee of written notice of its election to do 

 

     5

     

    

so.
After delivery of such notice, the approval of such counsel by Indemnitee and the retention of such counsel by the Company, the
Company will not be liable to Indemnitee under this Agreement for any fees of counsel subsequently incurred by Indemnitee with
respect to the same Proceeding, provided that (1) Indemnitee shall have the right to employ Indemnitee’s own counsel in
such Proceeding at Indemnitee’s expense and (2) if (i) the employment of counsel by Indemnitee has been previously authorized
in writing by the Company, (ii) counsel to the Company or Indemnitee shall have reasonably concluded that there may be a conflict
of interest or position, or reasonably believes that a conflict is likely to arise, on any significant issue between the Company
and Indemnitee in the conduct of any such defense or (iii) the Company shall not, in fact, have employed counsel to assume the
defense of such Proceeding, then the fees and expenses of Indemnitee’s counsel shall be at the expense of the Company, except
as otherwise expressly provided by this Agreement. The Company shall not be entitled, without the consent of Indemnitee, to assume
the defense of any claim brought by or in the right of the Company or as to which counsel for the Company or Indemnitee shall
have reasonably made the conclusion provided for in clause (ii) above.

 

8.                 
Procedure for Determination of Entitlement to Indemnification.

 

(a)               
To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request.

 

(b)              
Upon written request by Indemnitee for indemnification pursuant to Section 8(a) hereof, a determination, if required by
applicable law, with respect to Indemnitee’s entitlement thereto shall be made in the specific case: (i) if a Change in
Control shall have occurred, the Disinterested Directors shall direct Independent Counsel to make such determination in a written
opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee; or (ii) if a Change in Control shall not
have occurred, (A) by a majority vote of the Disinterested Directors, even though less than a quorum of the Board of Directors,
or (B) by a committee of the Disinterested Directors designated by a majority vote of Disinterested Directors, even though less
than a quorum, or (C) if there are no Disinterested Directors or, if the Disinterested Directors so direct, by Independent Counsel
in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee; and, if it is so determined
that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within 20 days after such determination. Any
costs or expenses (including attorneys’ fees and disbursements) incurred in connection with successfully establishing Indemnitee’s
right to indemnification, in whole or in part, by Indemnitee in cooperating with the person, persons or entity making the determination
discussed in this Section 8(b) with respect to Indemnitee’s entitlement to indemnification, shall be borne by the Company
and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

 

(c)               
In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section
8(b) hereof, the Independent Counsel shall be selected as provided in this Section 8(c). If a Change in Control shall not have
occurred, the Independent Counsel shall be selected by the Board of Directors, and the Company shall give written notice to Indemnitee
advising him of the identity of the Independent Counsel so selected. If a Change in Control shall have occurred, the Independent
Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Board of Directors,
in which event the preceding sentence shall apply), and Indemnitee shall give written notice to the Company advising it of the
identity of the Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be, may, within 10
days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be,
a written objection 

 

     6

     

    

to
such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected
does not meet the requirements of “Independent Counsel” as defined in this Agreement, and the objection shall set
forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall
act as Independent Counsel. If such written objection is so made and substantiated, the Independent Counsel so selected may not
serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without
merit. If, within 20 days after submission by Indemnitee of a written request for indemnification pursuant to Section 8(b) hereof,
no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition the Delaware
Court of Chancery or other court of competent jurisdiction for resolution of any objection which shall have been made by the Company
or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person
selected by the Court or by such other person as the Court shall designate, and the person with respect to whom all objections
are so resolved or the person so appointed shall act as Independent Counsel under Section 8(a) hereof.

 

(d)              
Indemnitee will be deemed a party to a Proceeding for all purposes hereof if Indemnitee is named as a defendant or respondent
in a complaint or petition for relief in that Proceeding, regardless of whether Indemnitee is ever served with process or makes
an appearance in that Proceeding.

 

9.                 
Presumptions and Effect of Certain Provisions.

 

(a)               
In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making
such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted
a request for indemnification in accordance with Section 8(a) of this Agreement, and the Company shall have the burden of proof
in overcoming such presumption by clear and convincing evidence. Neither the failure of the Company (including its Board of Directors
or independent legal counsel) to have made a determination prior to the commencement of such action pursuant to this Agreement
that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual
determination by the Company (including its Board of Directors or independent legal counsel) that Indemnitee has not met such
applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable
standard of conduct.

 

(b)              
If the person, persons or entity empowered or selected under Section 8 of this Agreement to determine whether Indemnitee
is entitled to indemnification shall not have made a determination within 30 days after receipt by the Company therefor, the requisite
determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification,
absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification
under applicable law; provided, however, that such 30-day period may be extended for a reasonable time, not to exceed an additional
15 days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith
requires such additional time for the obtaining or evaluating of documentation and/or information relating thereto.

 

(c)               
For purposes of any determination of whether Indemnitee acted in good faith and in a manner reasonably believed to be in
or not opposed to the best interests of the Company, and, with respect to any criminal Proceeding, Indemnitee had no reasonable
cause to believe his 

 

     7

     

    

conduct
was unlawful (collectively, “Good Faith”), Indemnitee shall be deemed to have acted in Good Faith if Indemnitee’s
action is based on the records or books of account of the Company and any other Enterprise of which Indemnitee is or was serving
at the request of the Company as a director, officer, trustee, general partner, managing member, fiduciary, employee or agent
or information, opinions, reports or statements, including financial statements and other financial information, concerning the
Company and any other Enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, trustee,
general partner, managing member, fiduciary, employee or agent or any other person which were prepared or supplied to Indemnitee
by: (i) one or more officers or employees of the Company and any Enterprise of which Indemnitee is or was serving at the request
of the Company as a director, officer, trustee, general partner, managing member, fiduciary, employee or agent; (ii) appraisers,
engineers, investment bankers, legal counsel or other persons as to matters Indemnitee reasonably believed were within the professional
or expert competence of those persons; and (iii) any committee of the Board of Directors or equivalent managing body of the Company
and any other Enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, trustee,
general partner, managing member, fiduciary, employee or agent of which Indemnitee is or was, at the relevant time, not a member.
The provisions of this Section 9(c) shall not be deemed to be exclusive or to limit in any way the other circumstances in which
the Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement.

 

(d)              
The knowledge and/or actions, or failure to act, of any director, officer, agent or employee of the Company and any other
Enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, trustee, general partner,
managing member, fiduciary, employee or agent shall not be imputed to Indemnitee for purposes of determining the right to indemnification
under this Agreement.

 

10.                 
Remedies of Indemnitee.

 

(a)               
In the event that (i) a determination is made pursuant to Section 8(b) of this Agreement that Indemnitee is not entitled
to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 7 of this Agreement,
(iii) no determination of entitlement to indemnification shall have been made pursuant to Section 8(b) of this Agreement within
the time period provided in Section 9(b) after receipt by the Company of the request for indemnification, (iv) payment of indemnification
is not made pursuant to Section 5, Section 6, the last sentence of Section 8(b), or the last sentence of Section 2(d) of this
Agreement within 20 days after receipt by the Company of a written request therefor, or (v) payment of indemnification pursuant
to Section 3 or Section 4 of this Agreement is not made within 20 days after a determination has been made that Indemnitee is
entitled to indemnification, Indemnitee shall be entitled to an adjudication by the Delaware Court of Chancery of his entitlement
to such indemnification or advancement of Expenses and appeals therefrom, concluding in a final and unappealable judgment by the
Delaware Supreme Court. The Board of Directors shall not make a determination as to the final disposition of such adjudication.
The Company shall not oppose Indemnitee’s right to seek any such adjudication.

 

(b)              
In the event that a determination shall have been made pursuant to Section 8(b) of this Agreement that Indemnitee is not
entitled to indemnification, any judicial proceeding commenced pursuant to this Section 10 shall be conducted in all respects
as a de novo trial on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination.

 

(c)               
If a determination shall have been made pursuant to Section 8(b) of this Agreement that Indemnitee is entitled to indemnification,
the Company shall be bound by such 

 

     8

     

    

determination
in any judicial proceeding commenced pursuant to this Section 10, absent (i) a misstatement by Indemnitee of a material fact,
or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with
the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.

 

(d)              
In the event that Indemnitee, pursuant to this Section 10, seeks a judicial adjudication of his rights under, or to recover
damages for breach of, this Agreement, if such judicial adjudication determines that Indemnitee shall be entitled to recover from
the Company, Indemnitee shall be indemnified by the Company against, any and all expenses (of the types described in the definition
of Expenses in Section 2(d) of this Agreement) actually and reasonably incurred by him in such judicial adjudication.

 

(e)               
The Company shall be precluded from asserting in any judicial proceeding commenced pursuant to this Section 10 that the
procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court that
the Company is bound by all the provisions of this Agreement.

 

11.                 
Exclusivity; Survival of Rights. The rights of indemnification and to receive advancement of Expenses as provided by
this Agreement shall be in addition to and not limited by any other rights to which Indemnitee may be entitled under the Certificate
of Incorporation or the Bylaws, any other agreement, any vote of stockholders or disinterested directors, the General Corporation
Law of the State of Delaware or otherwise; provided this Agreement shall supersede the indemnification and advancement of Expenses
provisions of any employment agreement entered into between the Indemnitee and the Company prior to the date of this Agreement.
No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee
under this Agreement in respect of any action taken or omitted by such Indemnitee prior to such amendment, alteration or repeal.
To the extent that a change in the General Corporation Law of the State of Delaware, whether by statute or judicial decision,
permits greater indemnification or advancement of Expenses than would be afforded currently under the Certificate of Incorporation
and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits
so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and
every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not
prevent the concurrent assertion or employment of any other right or remedy.

 

12.                 
Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification or to receive
advancement by the Company for a portion of the Expenses, judgments, fines, penalties or amounts paid in settlement actually and
reasonably incurred by Indemnitee (or on his behalf) in connection with such Proceeding, or any claim, issue or matter therein,
but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to
which Indemnitee is entitled.

 

13.                 
Rights Continued. The rights of indemnification and to receive advancement of Expenses as provided by this Agreement
shall continue as to Indemnitee even though Indemnitee may have ceased to be a director or officer of the Company and shall inure
to the benefit of Indemnitee’s personal or legal representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees.

 

14.             
No Construction as an Employment Agreement or Any Other Commitment. Nothing contained in this Agreement shall be construed
as giving Indemnitee any right to be retained in 

 

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the
employ or as an officer of the Company or any of its subsidiaries, if Indemnitee currently serves as an officer of the Company,
or to be renominated or reelected as a director of the Company, if Indemnitee currently serves as a director of the Company.

 

15.             
Liability Insurance. To the extent the Company maintains an insurance policy or policies providing liability insurance
for directors, officers, trustees, general partners, managing members, fiduciaries, employees or agents of the Company or any
other Enterprise which such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies
in accordance with its or their terms, to the maximum extent of the coverage available for any director, officer, trustee, general
partner, managing member, fiduciary, employee or agent under such policy or policies.

 

16.             
No Duplication of Payments. The Company shall not be liable under this Agreement to make any payment of amounts otherwise
indemnifiable under this Agreement if, and to the extent that, Indemnitee has otherwise actually received such payment under any
contract, agreement or insurance policy, the Certificate of Incorporation or the Bylaws, or otherwise.

 

17.             
Subrogation. In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment
to all the rights of recovery of Indemnitee, who shall execute all papers required and shall do everything that may be necessary
to secure such rights, including without limitation the execution of such documents as may be necessary to enable the Company
effectively to bring suit to enforce such rights.

 

18.             
Exceptions. Notwithstanding any other provision in this Agreement, the Company shall not be obligated pursuant to the
terms of this Agreement, to:

 

(a)               
indemnify or advance Expenses to Indemnitee with respect to any Proceeding initiated, brought or made by Indemnitee, including
by way of cross-claim, counter claim or the like, except with respect to a Proceeding brought to establish or enforce a right
to indemnification, unless Proceeding was authorized or consented to by the Board of Directors;

 

(b)              
indemnify Indemnitee with respect to any Proceeding in which final judgment is rendered against Indemnitee for an accounting
of profits made from the purchase and sale or the sale and purchase by Indemnitee of securities of the Company pursuant to the
provisions of Section 16(b) of the Act; or

 

(c)               
indemnify Indemnitee for any expenses incurred by Indemnitee with respect to any Proceeding instituted by Indemnitee to
enforce or interpret this Agreement, unless Indemnitee is successful in establishing Indemnitee’s right to indemnification
in such Proceeding, in whole or in part, or unless and to the extent that the court in such Proceeding shall determine that, despite
Indemnitee’s failure to establish his right to indemnification, Indemnitee is entitled to indemnity for such expenses; provided,
however that nothing in this Section 18(c) is intended to limit the Company’s obligation with respect to the advancement
of expenses to Indemnitee in connection with any Proceeding instituted by Indemnitee to enforce or interpret this Agreement, as
provided in Section 7 of this Agreement.

 

Notwithstanding
any other provision of this Agreement to the contrary, with respect to any reimbursements hereunder that are taxable as compensation
to an Indemnitee, the amount of the Expenses that are eligible for reimbursement during one calendar year may not affect the amount
of reimbursements to be provided in any subsequent calendar year, the reimbursement of an eligible expense shall be made on or
before the last day of the calendar year following the calendar year in which the expense was

 

     10

     

    

incurred,
and the right to reimbursement of the expenses shall not be subject to liquidation or exchange for any other benefit.

 

19.             
Settlements. The Company shall not be required to indemnify Indemnitee under this Agreement for any amounts paid in
settlement of any action or Proceeding effected without its written consent. The Company shall not settle any action or claim
in any manner which would impose any penalty or limitation on Indemnitee without Indemnitee’s written consent. Neither the
Company nor Indemnitee may unreasonably withhold its consent to any proposed settlement.

 

20.             
Notices. Any notice or other communication required or permitted to be given or made to the Company or Indemnitee pursuant
to this Agreement shall be given if made in writing and deposited in the United States mail, with postage thereon prepaid, addressed
to the person to whom such notice or communication is directed at the address of such person on the records of the Company, and
such notice or communication shall be deemed given or made at the time when the same shall be so deposited in the United States
mail. Any such notice or communication to the Company shall be addressed to the Secretary of the Company.

 

21.             
Contractual Rights. The right to be indemnified or to receive advancement of Expenses under this Agreement (i) is a
contract right based upon good and valuable consideration, pursuant to which Indemnitee may sue, (ii) is and is intended to be
retroactive and shall be available as to events occurring prior to the date of this Agreement and (iii) shall continue after any
rescission or restrictive modification of this Agreement as to events occurring prior thereto.

 

22.             
Severability. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable
for any reason whatsoever, the validity, legality and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby; to the fullest extent possible, the provisions of this Agreement shall be construed so as to give effect
to the intent manifested by the provisions held invalid, illegal or unenforceable; and those provision or provisions held to be
invalid, illegal or unenforceable for any reason whatsoever shall be deemed reformed to the extent necessary to conform to applicable
law and to give the maximum effect to the intent of the parties hereto.

 

23.             
Successors; Binding Agreement. The Company shall require and cause any successor (whether direct or indirect), by purchase,
merger, consolidation or otherwise, to all or substantially all of the business or assets of the Company, by written agreement
in form and substance reasonably satisfactory to Indemnitee, to expressly assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform if no such succession had taken place. As used in
this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or
assets as aforesaid that executes and delivers the agreement provided for in this Section 23 or that otherwise becomes bound by
the terms and provisions of this Agreement by operation of law. This Agreement shall be binding upon the Company and its successors
and assigns (including, without limitation, any direct or indirect successor by purchase, merger, consolidation or otherwise to
all or substantially all of the business or assets of the Company) and will inure to the benefit of Indemnitee (and Indemnitee’s
spouse, if Indemnitee resides in Texas or another community property state), heirs, executors and administrators.

 

24.             
Counterparts, Modification, Headings, Gender.

 

(a)               
This Agreement may be executed in counterparts, each of which shall constitute one and the same instrument, and either
party hereto may execute this Agreement by signing any such counterpart. Any such counterpart delivered by facsimile or other
electronic means shall constitute an original signature for all purposes hereunder.

 

     11

     

    

(b)              
No provisions of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing and signed by Indemnitee and an appropriate officer of the Company. No waiver by any party at any time of
any breach by any other party of, or compliance with, any condition or provision of this Agreement to be performed by any other
party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same time or at any prior or subsequent
time.

 

(c)               
Section headings are not to be considered part of this Agreement, are solely for convenience of reference, and shall not
affect the meaning or interpretation of this Agreement or any provision set forth herein.

 

(d)              
Pronouns in masculine, feminine and neuter genders shall be construed to include any other gender, and words in the singular
form shall be construed to include the plural and vice versa, unless the context otherwise requires.

 

25.             
Exclusive Jurisdiction; Governing Law. The Company and Indemnitee agree that all disputes in any way relating to or
arising under this Agreement, including, without limitation, any action for advancement of Expenses or indemnification, shall
be litigated, if at all, exclusively in the Delaware Court of Chancery, and if necessary, the corresponding appellate courts.
This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware applicable
to contracts made and to be performed in such state without giving effect to the principles of conflicts of laws. The Company
and Indemnitee (i) expressly submit themselves to the personal jurisdiction of the Delaware Court of Chancery for purposes of
any action or proceeding arising out of or in connection with this Agreement, (ii) irrevocably appoint, to the extent such party
is not a resident of the State of Delaware, The Corporation Trust Company, 1209 Orange Street, Wilmington, Delaware 19801 as its
agent in the State of Delaware as such party’s agent for acceptance of legal process in connection with any such action
or proceeding against such party with the same legal force and validity as if served upon such party personally within the State
of Delaware, (iii) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court of Chancery,
and (iv) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court
of Chancery has been brought in an improper or otherwise inconvenient forum.

 

26.             
Duration of Agreement. This Agreement shall continue until and terminate upon the later of: (a) 10 years after the
date that Indemnitee shall cease to serve as a director or executive officer of the Company or a director, officer, trustee, general
partner, managing member, fiduciary, employee or agent of any other Enterprise which Indemnitee served at the request of the Company;
or (b) one year after the final, nonappealable termination of any Proceeding then pending in respect of which Indemnitee is granted
rights of indemnification or advancement of Expenses hereunder and of any proceeding commenced by Indemnitee pursuant to Section
10 of this Agreement relating thereto.

 

27.             
Contribution. If it is established, under Section 8 or otherwise, that Indemnitee has the right to be indemnified under
this Agreement in respect of any claim, but that right is unenforceable by reason of applicable law or public policy, then, to
the fullest extent applicable law permits, the Company, in lieu of indemnifying or causing the indemnification of Indemnitee under
this Agreement, will contribute to the amount Indemnitee has incurred, whether for judgments, fines, penalties, excise taxes,
amounts paid or to be paid in settlement or for Expenses reasonably incurred, in connection with that Proceeding, in such proportion
as is deemed fair and reasonable in light of all the circumstances of that Proceeding in order to reflect:

 

     12

     

    

(a)               
the relative benefits Indemnitee and the Company have received as a result of the event(s) or transactions(s) giving rise
to that Proceeding; or

 

(b)              
the relative fault of Indemnitee and of the Company and its other functionaries in connection with those event(s) or transaction(s).

 

 

 

     13

     

    

 

 

IN
WITNESS WHEREOF, the Company and Indemnitee have executed this Agreement as of the date and year first above written.

 

	BONANZA CREEK ENERGY, INC.
	 
	 
	By:	 
	 	Name:
	 	Title:

 

 

	 

 

	INDEMNITEE:
	 
	 
	By:	 
	 	Name:
	 	Title:

 

 

 

	 

 

 

     14

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