Document:

Exhibit 10.14

 

INDEPENDENCE CONTRACT DRILLING, INC.

 

FORM OF STOCK APPRECIATION RIGHTS AGREEMENT

 

SHARE SETTLED

 

1.             Grant
of Stock Appreciation Rights. Pursuant to the Independence Contract Drilling, Inc. 2019 Omnibus Incentive Plan (the
 “Plan”), Independence Contract Drilling, Inc., a Delaware corporation (the “Company”),
hereby grants to

 

_______________________________

(the “Participant”)

 

a stock appreciation right relating to the appreciation in [_________]
shares of Common Stock of the Company (the “SAR”) at an exercise price (the “SAR Price”) of $[__________]
per share (which is equal to or greater than the Fair Market Value of a share of Common Stock as of the Date of Grant, as defined below),
all upon and subject to the terms and conditions set forth in this Agreement. Notwithstanding anything contained in this Agreement to
the contrary, no SAR shall vest or become exercisable until approval of an amendment to increase the authorized shares under Plan to _____
(the “Plan Amendment”) by the Company’s stockholders at the Company’s 20__ Annual Meeting of Stockholders, and
if the Plan Amendment shall not be approved at such meeting, the SARs granted hereunder shall be forfeited for no consideration without
any action on the part of the Company or the Grantee]1

 

Annex
A to this Agreement includes certain defined terms used herein. To the extent not otherwise defined in this Agreement, capitalized
terms shall have the meanings set forth in the Plan.

 

2.             Date
of Grant. The date of grant of the SAR is ____ (the “Date of Grant”).

 

3.             Subject
to Plan; Defined Terms. The SAR and this Agreement are subject to the terms and conditions of the Plan, and the terms of the Plan
shall control to the extent not otherwise inconsistent with the provisions of this Agreement. Except as otherwise provided herein, the
capitalized terms used herein that are defined in the Plan shall have the same meanings assigned to them in the Plan. The SAR is subject
to any rules promulgated pursuant to the Plan by the Board or the Committee and communicated to the Participant in writing.

 

4.             Vesting;
Time of Exercise.

 

(a)           Time
Vesting. The Participant shall become vested in installments of the SAR awarded to the Participant and such SAR shall become fully
exercisable in accordance with the following schedule:

 

		(i)	One third of shares of Stock subject to the SAR (rounding down, if applicable, to the nearest whole share of Stock) shall vest and
become exercisable on the first anniversary of the Date of Grant, provided the Participant is employed by the Company or a Subsidiary
on that date;

 

 

 

1
To be included if insufficient shares reserved for issuance under the Plan.

 

     

     

    

 

		(ii)	The remaining shares of Stock subject to the SAR (rounding down, if applicable, to the nearest whole share of Stock shall vest as
follows: [To be inserted]

 

(b)           [Termination
of Employment without Cause or for Good Reason. If Separation of Service occurs by the Company without Cause or by the Participant
for Good Reason, the SAR shall immediately vest in full upon such Separation of Service.]2

 

5.             Term;
Forfeiture. Except as otherwise provided in this Agreement, any unexercised portion of the SAR that is unvested on the date of the
Participant’s Separation of Service shall terminate on that date. Any unexercised portion of the SAR that is vested shall terminate
on the first to occur of the following:

 

(a)           5
p.m. on __________, 20[__] (the period of time extending from the date of this Agreement to such date being referred to herein as
the “SAR Period”);

 

(b)           5
p.m. on the date of Separation of Service, unless [such Separation of Service is by the Company without Cause or by the Participant
for Good Reason, or]3 such Separation of
Service occurs on or following the occurrence of a Change of Control; and

 

(c)           5
p.m. on the date that is three years following Separation of Service, if [such Separation of Service is by the Company without Cause
or by the Participant for Good Reason, or ]4
such Separation of Service occurs on or following the occurrence of a Change of Control.

 

6.             Exercise
and Payment. The Participant may exercise the vested portion of the SAR at any time prior to the termination of the SAR in accordance
with Section 5 above by the delivery of written notice to the Company setting forth the number of SARs which are to be exercised
and the date of exercise thereof (the “Exercise Date”). Upon exercise, the Participant will receive a number of shares
of Common Stock having a Fair Market Value at the time of exercise equal to the product of (A) the excess of the Fair Market Value
of a Share of Common Stock at time of exercise over the Strike Price and (B) the number of shares of Common Stock with respect to
which the SARs are exercised. For purposes of this Section 5, Fair Market Value shall have the meaning assigned in the
Plan. Share issuances shall be settled within 3 business days.

 

7.             No
Fractional Shares. The SAR may be exercised only with respect to full shares.

 

8.             Who
May Exercise. Subject to the terms and conditions set forth in Sections 4 and 5 above, during the lifetime of the Participant,
the SAR may only be exercised by the Participant or his guardian or legal representative. If the Participant dies prior to the dates specified
in Section 5 above without having exercised all of the portion of his or her then-vested SAR as of his or her date of death, then
the following persons may exercise the exercisable portion of the SAR on behalf of the Participant at any time prior to the earliest of
the dates specified in Section 5 hereof: the personal representative of his or her estate or any person who acquired the right to
exercise the SAR by bequest or inheritance or by reason of the death of the Participant; provided that the SAR shall remain subject to
the other terms of this Agreement, the Plan and all applicable laws, rules, and regulations.

 

 

 

2
[Applicable only to employees with employment agreements].

 

3
[Applicable only to employees with employment agreements] (Same as provided for in Section 4(b)).

 

4
[Applicable only to employees with employment agreements] (Same as provided for in Section 4(b)).

 

    2 

     

    

 

9.             Non-Assignability.
The SAR granted under this Agreement, and any interest in or right associated with such SAR, are not assignable or transferable by the
Participant except by will or by the laws of descent and distribution.

 

10.           Representations,
Etc. Each spouse individually is bound by, and such spouse’s interest, if any, in any SAR is subject to, the terms of this Agreement.
Nothing in this Agreement shall create a community property interest where none otherwise exists.

 

11.           Simultaneous
Death. If the Participant and his or her spouse both suffer a common accident or casualty which results in their respective deaths
within 60 days of each other, it shall be conclusively presumed, for the purpose of this Agreement, that the Participant died first and
the spouse died thereafter.

 

12.           Specific
Performance. The parties acknowledge that remedies at law will be inadequate remedies for breach of this Agreement and consequently
agree that this Agreement shall be enforceable by specific performance. The remedy of specific performance shall be cumulative of all
of the rights and remedies at law or in equity of the parties under this Agreement.

 

13.           No
Rights as Shareholder. The Participant will have no rights as a shareholder of the Company with respect to the SAR.

 

14.           Adjustment
of Number of Shares and Related Matters. The number of shares of Common Stock covered by the SAR, and the SAR Price thereof, shall
be subject to adjustment in accordance with the Plan and Section 22 below.

 

15.           Participant’s
Acknowledgments. The Participant acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms
and provisions thereof, and hereby accepts the SAR subject to all the terms and provisions thereof. The Participant hereby agrees to accept
as binding, conclusive, and final all decisions or interpretations of the Committee or the Board, as appropriate, upon any questions arising
under the Plan or this Agreement.

 

16.           Law
Governing. This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Texas (excluding
any conflict of laws rule or principle of Texas law that might refer the governance, construction, or interpretation of this agreement
to the laws of another state).

 

17.           No
Right to Continue Service or Employment. Nothing herein shall be construed to confer upon the Participant the right to continue in
the employ or to provide services to the Company or any Subsidiary, whether as an Employee or as a consultant or as an outside director,
or interfere with or restrict in any way the right of the Company or any Subsidiary to discharge the Participant as an Employee, consultant
or outside director at any time.

 

18.           Legal
Construction. In the event that any one or more of the terms, provisions, or agreements that are contained in this Agreement shall
be held by a court of competent jurisdiction to be invalid, illegal, or unenforceable in any respect for any reason, the invalid, illegal,
or unenforceable term, provision, or agreement shall not affect any other term, provision, or agreement that is contained in this Agreement
and this Agreement shall be construed in all respects as if the invalid, illegal, or unenforceable term, provision, or agreement had never
been contained herein.

 

    3 

     

    

 

19.           Covenants
and Agreements as Independent Agreements. Each of the covenants and agreements that is set forth in this Agreement shall be construed
as a covenant and agreement independent of any other provision of this Agreement. The existence of any claim or cause of action of the
Participant against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement
by the Company of the covenants and agreements that are set forth in this Agreement.

 

20.           Entire
Agreement. This Agreement together with the Plan supersede any and all other prior understandings and agreements, either oral or in
writing, between the parties with respect to the subject matter hereof and constitute the sole and only agreements between the parties
with respect to the said subject matter. All prior negotiations and agreements between the parties with respect to the subject matter
hereof are merged into this Agreement. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements,
orally or otherwise, have been made by any party or by anyone acting on behalf of any party, which are not embodied in this Agreement
or the Plan and that any agreement, statement or promise that is not contained in this Agreement or the Plan shall not be valid or binding
or of any force or effect.

 

21.           Parties
Bound. The terms, provisions, and agreements that are contained in this Agreement shall apply to, be binding upon, and inure to the
benefit of the parties and their respective heirs, executors, administrators, legal representatives, and permitted successors and assigns,
subject to the limitation on assignment expressly set forth herein.

 

22.           Modification.
No change or modification of this Agreement shall be valid or binding upon the parties unless the change or modification is in writing
and signed by the parties; provided, however, that the Company may change or modify the terms of this Agreement, including, without limitation,
the SAR Price, without the Participant’s consent or signature if the Company determines, in its sole discretion, that such change
or modification is necessary for purposes of compliance with or exemption from the requirements of Section 409A of the Code or any
regulations or other guidance issued thereunder. Notwithstanding the preceding sentence, the Company may amend the Plan or revoke the
SAR to the extent permitted by the Plan.

 

23.           Headings.
The headings that are used in this Agreement are used for reference and convenience purposes only and do not constitute substantive matters
to be considered in construing the terms and provisions of this Agreement.

 

24.           Gender
and Number. Words of any gender used in this Agreement shall be held and construed to include any other gender, and words in the singular
number shall be held to include the plural, and vice versa, unless the context requires otherwise.

 

25.           Notice.
Any notice required or permitted to be delivered hereunder shall be deemed to be delivered only when actually received by the Company
or by the Participant, as the case may be, at the addresses set forth below, or at such other addresses as they have theretofore specified
by written notice delivered in accordance herewith:

 

		(a)	Notice to the Company shall be addressed and delivered as follows:

 

Independence Contract Drilling, Inc.

20549 Hwy 249, Suite 300 

Houston, Texas 77070

Attn: President & Chief Executive Officer

 

With a copy to: Executive Vice President & Chief
Financial Officer

 

Notice to the Participant shall be addressed and delivered
as set forth on the signature page or if no address is provided, the address on file with the Company’s Human Resource Department.

 

    4 

     

    

 

26.           Tax
Requirements. The Participant is hereby advised to consult immediately with his or her own tax advisor regarding the tax consequences
of this Agreement. The Company or, if applicable, any Subsidiary (for purposes of this Section 26, the term “Company”
shall be deemed to include any applicable Subsidiary), shall have the right to withhold from any payment to the Participant the amount
of any taxes that the Company is required to withhold in connection with the Participant’s income arising with respect to this Award.

 

27.           Forfeiture
and Clawback. The SARs granted and any related payments made by the Company hereunder upon the exercise of any SAR are subject to
all forfeiture and clawback provisions contained in the Plan, as well as any clawback policies in place and approved by the Company’s
Board of Directors or Compensation Committee on the Date of Grant.

 

28.           Restrictive
Covenants and Restrictions on Transfer. As a condition to the award of the SARs hereunder, Participant agrees to the restrictive covenants
contained in Annex B hereto. [The Participant also agrees to abide by the restrictions on transfer set forth on Annex C.]5

 

IN WITNESS WHEREOF, the Company has caused this
Agreement to be executed by its duly authorized officer, and the Participant, to evidence his or her consent and approval of all the terms
hereof, has duly executed this Agreement, as of the ____ day of _________________, 20___.

 

	 	INDEPENDENCE CONTRACT DRILLING, INC.
	 	 
	 	By:	 
	 	 
	 	 
	 	PARTICIPANT
	 	 
	 	By:	 
	 	 
	 	 
	 	Participant’s Address for Notices:
	 	 
	 	 
	 	 
	 	 

 

 

 

5
To be included for executives for which transfer restrictions are applicable.

 

    5 

     

    

 

ANNEX A

 

DEFINED TERMS

 

“Cause” shall mean Participant’s:

 

		(i)	willful and continued failure to comply with the reasonable written directives of the Company for a period
of thirty (30) days after written notice from the Company;

 

		(ii)	willful and persistent inattention to duties for a period of thirty (30) days after written notice from
the Company, or the commission of acts within employment with the Company amounting to gross negligence or willful misconduct;

 

		(iii)	misappropriation of funds or property of the Company or committing any fraud against the Company or against
any other person or entity in the course of employment with the Company;

 

		(iv)	misappropriation of any corporate opportunity, or otherwise obtaining personal profit from any transaction
which is adverse to the interests of the Company or to the benefits of which the Company is entitled;

 

		(v)	conviction of a felony involving moral turpitude;

 

		(vi)	willful failure to comply in any material respect with the terms of this Agreement and such non-compliance
continues uncured after thirty (30) days after written notice from the Company; or

 

		(vii)	chronic substance abuse, including abuse of alcohol, drugs or other substances or use of illegal narcotics
or substances, for which Participant fails to undertake treatment immediately after requested by the Company or to complete such treatment
and which abuse continues or resumes after such treatment period, or possession of illegal narcotics or substances on Company premises
or while performing Participant’s duties and responsibilities.

 

For purposes of this definition, no act, or failure to act,
by Participant will be considered “willful” if done, or omitted to be done, by Participant in good faith and in the reasonable
belief that the act or omission was in the best interest of the Company or required by applicable law. Any termination by the Company
for Cause shall be communicated by Notice of Termination to the other party. For purposes of this Agreement, a “Notice of Termination”
means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent
applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Participant's
employment under the provision so indicated and (iii) if the Date of Termination (as defined below) is other than the date of receipt
of such notice, specifies the termination date (which date shall be not more than 30 days after the giving of such notice). The failure
by the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Cause shall not waive
any right of the Company from asserting such fact or circumstance in enforcing the Participant's or the Company's rights hereunder. “Date
of Termination” shall mean the date that employment with the Company and its affiliates is terminated in all respects for any
reason.

 

    6 

     

    

 

“Change of Control” shall mean:

 

		(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 (the “Exchange Act”)) (a “Person”)
of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50 percent or more of either (A) the
then-outstanding shares of common stock or membership interests 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 or managers (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this
subsection A, the following acquisitions shall not constitute a Change of Control: (1) any acquisition directly from the Company
or any acquisition by the Company; or (2) any acquisition by any employee benefit plan (or related trust) sponsored or maintained
by the Company or any corporation controlled by the Company; or (3) any acquisition by any corporation pursuant to a transaction
that complies with clauses (1), (2) and (3) of subsection C of this definition; or

 

		(ii)	Individuals, who, as of the date hereof or at the time of consummation of the transactions contemplated
by the Contribution Agreement, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least
a majority of the Board; provided, however, (1) that any individual becoming a director subsequent to the date hereof whose election
by the Company's stockholders or members was approved by a vote of the stockholders or members described in Section 3 of the Registration
Rights Agreement attached as Exhibit F to the Contribution Agreement shall be considered as though such individual was a member of
the Incumbent Board, and (2) that any individual becoming a director subsequent to the date hereof whose election, or nomination
for election by the Company's stockholders or members, was approved by a vote of at least a majority of the directors then comprising
the Incumbent Board shall be considered as though such individual was a member of the Incumbent Board, but excluding, for purpose of this
paragraph (ii), 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 Board; or

 

		(iii)	Consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially
all of the assets of the Company (a “Corporate Transaction”) in each case, unless, following such Corporate Transaction,
(1) 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 Corporate Transaction beneficially own, directly or indirectly,
more than 60 percent of, respectively, the then outstanding shares of common stock 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
Corporate Transaction (including, without limitation, a corporation that 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 Corporate Transaction, of the Outstanding Company Common Stock and the Outstanding Company Voting Securities,
as the case may be, (2) no Person (excluding any corporation resulting from such Corporate Transaction or any employee benefit plan
(or related trust) of the Company or such corporation resulting from such Corporate Transaction) beneficially owns, directly or indirectly,
20 percent or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Corporate Transaction
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 Corporate Transaction and (3) at least a majority of the members of the board of directors of the corporation resulting
from such Corporate Transaction 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 Corporate Transaction; or

 

    7 

     

    

 

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

 

“Good Reason” shall mean without
the express written consent of Participant, the occurrence of any of the following:

 

		(v)	any action or inaction that constitutes a material breach by the Company of this Agreement and such action
or inaction continues uncured after thirty (30) days following written notice from the Participant;

 

		(vi)	the assignment to the Participant of any duties inconsistent in any respect with the Participant's position
(including status, offices, titles and reporting requirements), authority, duties or responsibilities as contemplated by Section 3(a) of
this Agreement, or any other action by the Company which results in a diminution in such position, authority, duties or responsibilities,
excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company
within 30 days of receipt of written notice thereof given by the Participant;

 

		(vii)	any failure by the Company to comply with the provisions of Section 4 of this Agreement, other than
an isolated, insubstantial and inadvertent failure not occurring in bad faith and which is remedied by the Company as soon as reasonable
possible, but no later than 30 days after receipt of written notice thereof given by the Participant;

 

		(viii)	a change in the geographic location at which Participant must perform services to a location more than
fifty (50) miles from Houston, Texas or the location at which Participant normally performs such services as of the Effective Date; or

 

		(ix)	in the event a Change of Control has occurred, the assignment to the Participant to any position (including
status, offices, titles and reporting requirements), authority, duties or responsibilities that are not (A) as a senior Participant
officer with the ultimate parent company of the entity surviving or resulting from such Change of Control and (B) substantially identical
to the Participant's position (including status, offices, titles and reporting requirements), authority, duties and responsibilities as
contemplated by this Agreement.

 

The Participant’s termination of employment shall not
constitute Good Reason unless Participant notifies the Company of the condition or event constituting Good Reason within ninety days (90) days
of the condition’s occurrence (unless unknown to Participant) and the Company fails to cure the conditions, to the extent curable,
specified in the notice within thirty (30) days following such notification. Any termination during the Employment Term by the Participant
for Good Reason shall be communicated by Notice of Termination to the other party hereto.

 

    8 

     

    

 

ANNEX B

 

Restrictive Covenants

 

1.             Restrictive
Covenants. In consideration for the SARs granted under this Agreement, which are expected to vest during Participant’s employment
with the Company Group, as well as the protection of the Company Group’s goodwill and Confidential Information, Participant agrees
to the following:

 

(a)           Nondisclosure
of Confidential Information. Participant shall hold in a fiduciary capacity for the benefit of the Company Group all Confidential
Information which shall have been obtained by Participant during Participant’s employment and shall not use such Confidential Information
other than within the scope of Participant’s employment with and for the exclusive benefit of the Company Group. Following any termination
of employment with the Company Group, Participant agrees (i) not to communicate, divulge or make available to any person or entity
(other than the Company Group) any such Confidential Information, except (A) upon the prior written authorization of the Company
Group, (B) as may be required by law or legal process, (C) as reasonably necessary in connection with the enforcement of any
right or remedy related to this Agreement, or (D) unless no longer Confidential Information, and (ii) to deliver promptly to
the Company Group any Confidential Information in Participant’s possession, including any duplicates thereof and any notes or other
records Participant has prepared with respect thereto. In the event that the provisions of any applicable law or the order of any court
would require Participant to disclose or otherwise make available any Confidential Information then Participant shall, to the extent practicable,
give the Company prior written notice of such required disclosure and an opportunity to contest the requirement of such disclosure or
apply for a protective order with respect to such Confidential Information by appropriate proceedings.

 

(b)           Limited
Covenant Not to Compete. In the event Participant’s employment is terminated [for any reason][without cause]6,
Participant agrees that during the period beginning on the date of such termination and ending on the twelve (12) month anniversary of
the date of such termination:

 

		(i)	Participant shall not, directly or indirectly, for himself or others, own, manage, operate, control or participate in the ownership,
management, operation or control of any business, whether in corporate, proprietorship or partnership form or otherwise, that is engaged,
directly or indirectly, in the United States in the Restricted Business; provided, however, that the restrictions contained herein shall
not restrict (A) the acquisition by Participant of less than 2% of the outstanding capital stock of any publicly traded company engaged
in a Restricted Business or (B) Participant from being employed by an entity in which the majority of such entity’s revenues
on a consolidated basis determined in accordance with generally accepted accounting principles are from activities and businesses that
do not constitute a Restricted Business and provided that Participant is only employed by and engaged with divisions and units of such
entity that are not engaged in the Restricted Business; and

 

 

 

6
Based upon employee classification.

 

    9 

     

    

 

		(ii)	Participant shall not, directly or indirectly (A) solicit any individual, who, at the time of time of such solicitation is an
employee of the Company Group, to leave such employment or hire, employ or otherwise engage any such individual (other than employees
of the Company Group who respond to general advertisements for employment in newspapers or other periodicals of general circulation (including
trade journals)), or (B) cause, induce or encourage any material actual or prospective client, customer, supplier, landlord, lessor
or licensor of the Company Group to terminate or modify any such actual or prospective contractual relationship that exists on the date
of termination of employment.

 

(c)           Injunctive
Relief; Remedies. The covenants and undertakings contained in this Annex B relate to matters which are of a special, unique and extraordinary
character and a violation of any of the terms of this Annex B will cause irreparable injury to the Company Group, the amount of which
will be impossible to estimate or determine and which cannot be adequately compensated. Accordingly, the remedy at law for any breach
of this Annex B may be inadequate. Therefore, notwithstanding anything to the contrary, the Company will be entitled to an injunction,
restraining order or other equitable relief from any court of competent jurisdiction in the event of any breach of any provision of this
Annex B without the necessity of proving actual damages or posting any bond whatsoever. The rights and remedies provided by this Annex
B are cumulative and in addition to any other rights and remedies which the Company Group may have hereunder or at law or in equity. The
parties hereto further agree that, if any court of competent jurisdiction in a final nonappealable judgment determines that a time period,
a specified business limitation or any other relevant feature of this Annex B is unreasonable, arbitrary or against public policy, then
a lesser time period, geographical area, business limitation or other relevant feature which is determined by such court to be reasonable,
not arbitrary and not against public policy may be enforced against the applicable party.

 

(d)           Governing
Law of this Annex B; Consent to Jurisdiction. Any dispute regarding the reasonableness of the covenants and agreements set forth in
this Annex B, or the territorial scope or duration thereof, or the remedies available to the Company upon any breach of such covenants
and agreements, shall be governed by and interpreted in accordance with the laws of the state of Texas, without regard to conflict of
law provisions thereof, and, with respect to each such dispute, the Company and Participant each hereby irrevocably consent to the exclusive
jurisdiction of the State of Texas for resolution of such dispute, and further agree that service of process may be made upon Participant
in any legal proceeding relating to this Annex B by any means allowed under the laws of such state.

 

(e)           Participant’s
Understanding of this Section. Participant hereby represents to the Company that Participant has read and understands, and agrees
to be bound by, the terms of this Annex B. Participant acknowledges that the geographic scope and duration of the covenants contained
in this Annex B are the result of arm’s-length bargaining and are fair and reasonable in light of (i) the importance of the
functions performed by Participant and the length of time it would take the Company Group to find and train a suitable replacement, (ii) the
nature and wide geographic scope of the operations of the Company Group, (iii) Participant’s level of control over and contact
with the Company Group’s business and operations in all jurisdictions where they are located, and (iv) the fact that the Restricted
Business is potentially conducted throughout the geographic area where competition is restricted by this Agreement. It is the desire and
intent of the parties that the provisions of this Agreement be enforced to the fullest extent permitted under applicable law, whether
now or hereafter in effect and therefore, to the extent permitted by applicable law, the parties hereto waive any provision of applicable
law that would render any provision of this Annex B invalid or unenforceable.

 

    10 

     

    

 

[ANNEX C

 

The Participant agrees, with respect to 25% of SARS that vest under
this Agreement (the “Restricted SARS”), Participant will not sell or transfer the shares of common stock received upon the
exercise of such Restricted SARS, until the earlier to occur of a Change of Control of the Company, the fourth anniversary of the Date
of Grant, or their termination of employment without Cause or for Good Reason.]7

 

 

 

7
For applicable executive employees

 

    11Exhibit 10.15

 

INDEPENDENCE CONTRACT DRILLING, INC.

 

OUTSIDE DIRECTOR RESTRICTED STOCK UNIT AWARD
AGREEMENT

 

(TIME VESTING / 1/3 CASH SETTLEMENT OPTION)

 

(Shareholder Approval Contingency)

 

Director Grantee:

 

1.            Grant
of Restricted Stock Unit Award.

 

(a)           As
of ________, 202_, the date of this agreement (this “Agreement”), Independence Contract Drilling, Inc.,
a Delaware corporation (the “Company”), hereby grants to the Grantee (identified above) ______ restricted
stock units (the “RSUs”) pursuant to the 2019 Omnibus Incentive Plan, as may be amended from time to time (the
 “Plan”) [provided, however, in the event there are insufficient shares reserved for issuance under
the Plan the grant of RSUs contemplated herein shall be subject to the approval of an amendment (the "Plan Amendment") to increase
the authorized shares to________under Plan by the Company’s stockholders at the Company’s ___ Annual Meeting of Stockholders
and if the Plan Amendment shall not be approved at such meeting, the RSUs granted hereunder shall be forfeited for no consideration
without any action on the part of the Company or the Grantee]1.
Each RSU represents the opportunity to receive one share of Common Stock of the Company, or for a portion of the RSUs the value of
one share of Common Stock of the Company, as set forth in Section 5(b) below, based upon satisfaction of the vesting
requirement contained herein. The Plan is hereby incorporated in this Agreement in its entirety by reference. In the event of a
conflict between the terms of the Plan and the terms of this Agreement, the terms of the Plan shall control.

 

2.            Definitions.
All capitalized terms used herein shall have the meanings set forth in the Plan unless otherwise provided herein. Exhibit A
sets forth meanings for certain of the capitalized terms used in this Agreement.

 

3.            Vesting
and Forfeiture. Except as otherwise provided in Exhibit C, all unvested RSUs
will be forfeited automatically by the Grantee for no consideration upon termination for any reason of Grantee’s directorship with
the Company or its affiliates (the “Company Group”) prior to the Vesting Date. To the extent not previously forfeited,
the number of RSUs vesting shall, to the extent not vesting earlier pursuant to Exhibit B, vest entirely on the one-year anniversary
of the date of grant set forth above (the “Vesting Date”).

 

4.            Purchase
Price. No consideration shall be payable by the Grantee to the Company for the RSUs.

 

 

1
To be included if insufficient shares reserved for issuance under the Plan.

 

    1

     

    

 

5.            Restrictions
on RSUs and Settlement of Vested RSUs.

 

(a)           No
Dividend Equivalents are granted with to any RSUs.

 

(b)           The
Company shall settle all vested RSUs within 30 days of the date such RSUs vest as follows: (i) one third (rounded down in the case
of partial a partial share) of the total number of RSUs subject to this Award shall be settled in cash and with respect to each such cash-settled
RSU, the Company shall pay to the Grantee an amount equal to the Fair Market Value of one share of Common Stock as of the Vesting Date;
and (ii) all or the remaining number of RSUs subject to this Award shall be settled in shares of Common Stock and with respect to
each such share-settled RSU, the Company shall issue to the Grantee one share of Common Stock.

 

(c)           Nothing
in this Agreement or the Plan shall be construed to:

 

(i)            give
the Grantee any right to be awarded any further RSUs or any other Award in the future, even if RSUs or other Awards are granted on a regular
or repeated basis, as grants of RSUs and other Awards are completely voluntary and made solely in the discretion of the Committee;

 

(ii)           give
the Grantee or any other person any interest in any fund or in any specified asset or assets of the Company or any Affiliate; or

 

(iii)          confer
upon the Grantee the right to continue in the employment or service of the Company or any Affiliate, or affect the right of the Company
or any Affiliate to terminate the employment or service of the Grantee at any time or for any reason.

 

(d)            The
Grantee shall not have any voting rights with respect to the RSUs.

 

6.            Independent
Legal and Tax Advice. Grantee acknowledges that the Company has advised Grantee to obtain
independent legal and tax advice regarding the grant, holding, vesting and settlement of the RSUs in accordance with this Agreement and
any disposition of any such Awards or the shares of Common Stock issued with respect thereto.

 

7.            Reorganization
of Company. The existence of this Agreement shall not affect in any way the right or power
of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in
the Company’s capital structure or its business, or any merger or consolidation of the Company, or any issue or bonds, debentures,
preferred stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of
its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise. Except as otherwise provided
herein, in the event of a Corporate Change as defined in the Plan, Section 4.5 of the Plan shall be applicable.

 

8.            Investment
Representation. Grantee will enter into such written representations, warranties and agreements
as the Company may reasonably request in order to comply with any federal or state securities law. Moreover, any stock certificate for
any shares of stock issued to Grantee hereunder may contain a legend restricting their transferability as determined by the Company in
its discretion. Grantee agrees that the Company shall not be obligated to take any affirmative action in order to cause the issuance or
transfer of shares of Stock hereunder to comply with any law, rule or regulation that applies to the shares subject to this Agreement.

 

    2

     

    

 

9.            No
Guarantee of Employment. This Agreement shall not confer upon Grantee any right to continued
employment with the Company or any Affiliate thereof.

 

10.            Withholding
of Taxes. The Company or an Affiliate shall be entitled to satisfy, pursuant to Section 16.3
of the Plan, any and all tax withholding requirements with respect to RSUs.

 

11.            General.

 

(a)           Notices.
All notices under this Agreement shall be mailed or delivered by hand to the parties at their respective addresses set forth beneath their
signatures below or at such other address as may be designated in writing by either of the parties to one another, or to their permitted
transferees if applicable. Notices shall be effective upon receipt.

 

(b)           Transferability
of Award. The rights of the Grantee pursuant to this Agreement are not transferable by Grantee. No right or benefit hereunder shall
in any manner be liable for or subject to any debts, contracts, liabilities, obligations or torts of Grantee or any permitted transferee
thereof. Any purported assignment, alienation, pledge, attachment, sale, transfer or other encumbrance of the RSUs, prior to the lapse
of restrictions, that does not satisfy the requirements hereunder shall be void and unenforceable against the Company.

 

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

 

(d)           No
Guarantee of Tax Consequences. The Company and the Committee make no commitment or guarantee that any federal, state, local or other
tax treatment will (or will not) apply or be available to any person eligible for compensation or benefits under this Agreement. The Grantee
has been advised and been provided the opportunity to obtain independent legal and tax advice regarding the granting, vesting and settlement
of RSUs pursuant to the Plan and this Agreement and the disposition of any Common Stock acquired thereby.

 

(e)           Section 409A.
The award of RSUs hereunder is intended to either comply with or be exempt from Section 409A, and the provisions of this Agreement
shall be administered, interpreted and construed accordingly. If the Grantee is a “specified employee” within the meaning
of Section 409A(a)(2)(B)(i) of the Code on the date on which the Grantee has a “separation from service” (other
than due to death) within the meaning of Section 1.409A-1(h) of the Treasury Regulations, notwithstanding the provisions of
this Agreement, any transfer of shares or other compensation payable on account of Grantee’s separation from service that constitute
deferred compensation under Section 409A shall take place on the earlier of (i) the first business day following the expiration
of six months from the Grantee’s separation from service, or (ii) such earlier date as complies with the requirements of Section 409A.
To the extent required under Section 409A, the Grantee shall be considered to have terminated employment with the Company or its
affiliates (the “Company Group”) when the Grantee incurs a “separation from service” with respect to the Company
Group within the meaning of Section 409A(a)(2)(A)(i) of the Code.

 

(f)            Severability.
In the event that any provision of this Agreement shall be held illegal, invalid or unenforceable for any reason, such provision shall
be fully severable, but shall not affect the remaining provisions of the Agreement, and the Agreement shall be construed and enforced
as if the illegal, invalid or unenforceable provision had not been included therein.

 

    3

     

    

 

(g)           Supersedes
Prior Agreements. This Agreement shall supersede and replace all prior agreements and understandings, oral or written, between the
Company and the Grantee regarding the grant of the RSUs covered hereby.

 

(h)           Governing
Law. This Agreement shall be construed in accordance with the laws of the State of Delaware without regard to its conflict of law
provisions, to the extent federal law does not supersede and preempt Delaware law.

 

(i)            No
Trust or Fund Created. This Agreement shall not create or be construed to create a trust or separate fund of any kind or a fiduciary
relationship between the Company or any Affiliate and a Grantee or any other Person. To the extent that any Person acquires a right to
receive payments from the Company or any Affiliates pursuant to this Agreement, such right shall be no greater than the right of any general
unsecured creditor of the Company or any Affiliate.

 

(j)            Clawback
Provisions. Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based compensation, or any other
compensation, payable pursuant to this Agreement or any other agreement or arrangement with the Company or an affiliate which is subject
to recovery under any law, government regulation or stock exchange listing requirement, will be subject to such deductions and clawback
as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement (or any policy adopted
by the Company or an affiliate pursuant to such law, government regulation or stock exchange listing requirement.)

 

(k)           Other
Laws. The Company retains the right to refuse to issue or transfer any Stock if it determines that the issuance or transfer of such
shares might violate any applicable law or regulation or entitle the Company to recover under Section 16(b) of the Securities
Exchange Act of 1934.

 

(l)            Binding
Effect. This Agreement shall be binding upon and inure to the benefit of any successors to the Company and all persons lawfully claiming
under the Grantee.

 

    4

     

    

 

IN WITNESS WHEREOF, the Company
has caused this Agreement to be executed on its behalf by its duly authorized officer and Grantee has hereunto executed this Agreement
as of the date set forth above.

 

		INDEPENDENCE CONTRACT DRILLING, INC.
	 	 
	 	By:	 
	 	Name:	J. Anthony Gallegos
	 	Title:	President & Chief Executive Officer
	 	 
	 	Address for Notices:
	 	 
	 	Independence Contract Drilling, Inc.
	 	20475 Hwy 249, Suite 300
	 	Houston, Texas 77070
	 	Attn: Chief Executive Officer
	 	 
	 	GRANTEE
	 	 
	 	 
	 	 
	 	 
	 	Address for Notices:
	 	 
	 	Director’s then current address shown in the Company’s
records.

 

    5

     

    

 

Exhibit A

 

Certain Definitions.

 

“Change of Control”
shall mean:

 

(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 (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) of 50 percent or more of either (A) the then outstanding shares of common
stock or membership interests 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 or managers (the
 “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection A, the following
acquisitions shall not constitute a Change of Control: (1) any acquisition directly from the Company or any acquisition by the Company;
or (2) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation
controlled by the Company; or (3) any acquisition by any corporation pursuant to a transaction that complies with clauses (1), (2) and
(3) of subsection (i) of this definition; or

 

(i)            individuals,
who, as of the date hereof constitute the Board (the "Incumbent Board") cease for any reason to constitute at least a
majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination
for election by the Company’s stockholders or members, was approved by a vote of at least a majority of the directors then comprising
the Incumbent Board shall be considered as though such individual was a member of the Incumbent Board, but excluding, for purpose of this
subsection (ii), 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 Board;

 

(ii)            consummation
of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company (a
 "Corporate Transaction") in each case, unless, following such Corporate Transaction, (1) 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 Corporate Transaction beneficially own, directly or indirectly, more than 60 percent
of, respectively, the then outstanding shares of common stock 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 Corporate Transaction
(including, without limitation, a corporation that 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 Corporate Transaction, of the Outstanding Company Common Stock and the Outstanding Company Voting Securities,
as the case may be, (2) no Person (excluding any corporation resulting from such Corporate Transaction or any employee benefit plan
(or related trust) of the Company or such corporation resulting from such Corporate Transaction) beneficially owns, directly or indirectly,
20 percent or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Corporate Transaction
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 Corporate Transaction and (3) at least a majority of the members of the board of directors of the corporation resulting
from such Corporate Transaction 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 Corporate Transaction; or

 

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

 

    6

     

    

 

Exhibit B

 

Change
of Control. Notwithstanding any other provision of this Agreement to the contrary, if, prior to the scheduled Vesting Date,
a Change of Control occurs, then any unvested RSUs shall immediately vest upon the occurrence of the Change of Control.

 

    7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00342-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00342-of-00352.parquet"}]]