Document:

Exhibit

Exhibit 10.26

	
		
	DELUXE
CORPORATION
	RESTRICTED STOCK UNIT
AWARD AGREEMENT

	 
	(Non-Employee Director)

	
					
	AWARDED TO
	AWARD DATE
	NUMBER OF CASH COMPENSATION
RSUs
	NUMBER OF EQUITY GRANT
RSUs
	TOTAL NUMBER OF RESTRICTED STOCK
UNITS

	 
	 
	 
	 
	 

		
	1.
	The Award.  

(a)You have elected to receive some or all of (i) your cash compensation earned from Deluxe Corporation, a Minnesota corporation (“Deluxe“), and/or (ii) an equity compensation grant you received from Deluxe, in each case for your service as a non-employee director to Deluxe in the form of a restricted stock unit award.  Deluxe hereby grants to you as of the Award Date the above number of: (x) restricted stock units you have elected to receive in lieu of cash compensation you have earned from Deluxe (“Cash Compensation RSUs”) and (y) restricted stock units you have elected to receive in lieu of an incentive equity grant from Deluxe (“Equity Grant RSUs” and, together with any Cash Compensation RSUs, collectively, the “Units”) on the terms and conditions contained in this Restricted Stock Unit Award Agreement (including the Addendum attached hereto, the “Agreement”).  Each Unit will entitle you to acquire one share of Deluxe common stock, par value $1.00 (“Common Stock”), when the restrictions applicable to each Unit expire or terminate as provided below.

(b)You agree that the Units will be treated as Stock Units (as defined in the Deferral Plan) issued pursuant to Section 4.4 of Deluxe’s Non-Employee Director Stock and Deferral Plan (“Deferral Plan”), which constitutes part of the Company’s 2017 Long Term Incentive Plan (the “LTIP”) and is subject to the terms and conditions of the LTIP.  The Units will be governed by this Agreement, the Deferral Plan and the LTIP.  You acknowledge that copies of each of the Deferral Plan and the LTIP have been provided to you.
 
		
	2.
	Vesting.  The Cash Compensation RSUs, if any, are 100% vested as of the Award Date. Subject to Section 5, the Equity Grant RSUs, if any, will vest on the one year anniversary of the Award Date so long as your service to Deluxe has not previously ended (the “Vesting Date”).  Prior to the Vesting Date, the Equity Grants RSUs will be subject to forfeiture to Deluxe as provided in this Agreement, the Deferral Plan and the LTIP.

		
	3.
	Restricted Period.  The Units are subject to the restrictions contained in Section 4 of this Agreement during the Restricted Period (as defined below).  As used herein, “Restricted Period,” shall mean a period commencing on the Award Date and, subject to Section 5, ending on the earliest of (i) the settlement date of the deferral period indicated on your Unit election form, (ii) a termination of your service to Deluxe and its Affiliates that constitutes a “separation from service” as such term is defined for purposes of Code Section 409A and (iii) the date of consummation of a Change of Control (as defined in the Addendum) (the “Expiration Date”). 

		
	4.
	Restrictions.  

(a)    All Units will be subject to the following restrictions during the Restricted Period: 

(i)The Units may not be sold, assigned, transferred or pledged during the Restricted Period.  You may not transfer the right to receive the Units, other than by will or the laws of descent and distribution, and any such attempted transfer shall be void.

(ii)Shares of Common Stock will not be issued in settlement of the Units until the Restricted Period ends.

(b)    If cash dividends are declared and paid by Deluxe with respect to its Common Stock, then at the same time that dividends are paid to the shareholders you will (i) receive dividend equivalent payments with respect to your Cash Compensation RSUs, if any, as well as your vested Equity Grant RSUs and (ii) have dividend equivalents credited to your account with respect to any portion of your then-unvested Equity Grant RSUs.  Any non-cash dividends or distributions paid or declared with respect to the Units during the Restricted Period shall be held by Deluxe until the end of the Restricted Period, at which time Deluxe will pay you all such dividends and other distributions.  Any dividend equivalent payments paid with respect to any Units shall be paid when, and only to the extent that, the underlying Units are actually vested. If the Units are forfeited, then all rights to such dividend and distribution payments shall also be forfeited. 

Rev. 2/18
US.115347828.02

		
	5.
	Acceleration of Vesting / Lapse of Restrictions.  

Except as provided below, prior to the Vesting Date your rights in and to the Equity Grant RSUs shall terminate on the termination date of your service to Deluxe and its Affiliates.  
Prior to the Expiration Date, all restrictions applicable to the Units shall lapse and any Equity Grant RSUs shall vest fully and the shares of Common Stock represented thereby will be issued to you or your heirs, executors, administrators, estate or representatives, as applicable as expeditiously as practicable, but not more than 75 days after (i) a Change of Control or (ii) your service as a director (“Service”) with Deluxe or any successor entity is terminated due to your death, Disability (as defined in the Addendum) or the Deluxe Board of Director’s then current retirement policies Unclear what this means. Is it referring to director being time-barred from serving? If so and he or she “ages out” during a fiscal year and will not be standing for re-election again will substantial risk of forfeiture still exist or will this trigger 409A issues.  Also, confirm whether acceleration would occur upon a director’s voluntary retirement if he or she is of a qualified retirement age., or your involuntarily termination without Cause (as defined in the Addendum) by Deluxe, and such Service termination must, in each case, constitute a “separation from service” as such term is defined for purposes of Code Section 409A. These events mirror what is contained in the form of non-employee director restricted stock award. Confirm they should match.  
Prior to the Expiration Date, all restrictions applicable to the Units shall lapse and any unvested Equity Grant RSUs shall vest fully in and the shares of Common Stock represented thereby will be issued to you, subject to the limitations provided herein, if there shall occur a Change of Control of Deluxe.  Such issuance shall be made as expeditiously as practicable, but not more than 75 days, following the Change of Control, subject to the following.  If as a result of the Change of Control shares of Common Stock are converted into another form of property, such as stock of a company with which Deluxe is merged, or into the right to a cash payment, then in lieu of the shares of Common Stock you will receive the cash or other property that you would have received had you owned the shares of Common Stock immediately prior to the Change of Control.
		
	6.
	Forfeiture.  Subject to the provisions of Section 5, in the event your service to Deluxe is terminated prior to the first-year anniversary of the Award Date, your rights in any and all Equity Grant RSUs subject to this Agreement shall be immediately and irrevocably forfeited.

		
	7.
	Delivery of Shares of Common Stock and Payment of Dividend Equivalents.  Deluxe shall cause to be issued and delivered to you, or to your designated beneficiary or estate in the event of your death, one share of Common Stock in payment and settlement of each Unit subject to this Agreement [as well as any accrued dividend equivalents thereon] as expeditiously as possible, but no later than 75 days after the expiration of the Restricted Period.  Delivery of shares of Common Stock in settlement of a Unit subject to this Agreement shall be effected by an appropriate entry in the stock register maintained by Deluxe’s transfer agent with a notice of issuance provided to you, or by the electronic delivery of the shares of Common Stock to a brokerage account you designate, and shall be subject to compliance with all applicable legal requirements, including compliance with the requirements of applicable federal and state securities laws.

		
	8.
	Rights.  The Units subject to this Award do not entitle you to any rights of a holder of Common Stock.  Except as otherwise provided in Section 4, you will not have any of the rights of a shareholder of Deluxe in connection with the grant of Units subject to this Agreement unless and until shares of Common Stock are issued to you upon settlement of the Units as provided in Section 7. 

		
	9.
	Income Taxes.  You are liable for all federal and state income or other taxes applicable to this grant and the vesting of shares of Common Stock, and you acknowledge that you should consult with your own tax advisor regarding the applicable tax consequences. 

		
	10.
	Terms and Conditions.  This Award Agreement and the award of Units and the issuance of shares of Common Stock hereunder are subject to and governed by the provisions of the LTIP and the Deferral Plan.  In the event there are any inconsistencies between this Award Agreement or those plans, the provisions of the applicable plan shall govern, as it may be amended or interpreted at Deluxe’s discretion, to meet any applicable requirements of Section 409A of the Internal Revenue Code. 

By your acceptance of this restricted stock unit award, you agree to all of the terms and conditions contained in this Agreement and in the LTIP and the Deferral Plan documents.  You acknowledge that you have received and reviewed these documents and that they set forth the entire agreement between you and Deluxe regarding the Units.                        

DELUXE CORPORATION

By: ___________________________________

Rev. 2/18
US.115347828.02

ADDENDUM TO
RESTRICTED STOCK UNIT AWARD AGREEMENT

For the purposes hereof, the terms used herein shall have the following meanings:

“Affiliate” shall mean a company controlled directly or indirectly by Deluxe, where “control” shall mean the right, either directly or indirectly, to elect a majority of the directors thereof without the consent or acquiescence of any third party.

"Cause" shall mean (i) you have breached your obligations of confidentiality to Deluxe or its Affiliates; (ii) you have otherwise failed to perform your duties and do not cure such failure within thirty (30) days after receipt of written notice thereof;  (iii) you commit an act, or omit to take action, in bad faith which results in material detriment to Deluxe or its Affiliates; (iv) you have committed fraud, misappropriation, embezzlement or other act of dishonesty in connection with Deluxe or its Affiliates or its businesses; (v) you have been convicted or have pleaded guilty or nolo contendere to criminal misconduct constituting a felony or a gross misdemeanor, which gross misdemeanor involves a breach of ethics, moral turpitude, or immoral or other conduct reflecting adversely upon the reputation or interest of Deluxe or its Affiliates; (vi) your use of narcotics, liquor or illicit drugs has had a detrimental effect on your performance; or (vii) you are in material default under any agreement between you and Deluxe or its Affiliates following any applicable notice and cure period.

A “Change of Control” shall be deemed to have occurred upon the completion of any transaction or series of transactions that results in a “change in control event” as defined in Section 409A of the Internal Revenue Code and the regulations thereunder.  
“Disability” shall mean you are unable to perform the material duties of a director of Deluxe due to a physical or mental illness or an injury causing accidental loss or bodily harm. 

Rev. 2/18
US.115347828.02Exhibit

EXHIBIT 10.1#

LAREDO PETROLEUM, INC.
OMNIBUS EQUITY INCENTIVE PLAN
Performance Share Unit Award Agreement

This Performance Share Unit Award Agreement (“Agreement”) is made as of February 16, 2018 (the “Grant Date”) by and between Laredo Petroleum, Inc. (the “Company”) and _____________ (the “Participant”).
W I T N E S S E T H :
WHEREAS, the Participant is currently an employee of the Company, and the Company desires to have the Participant remain in such capacity and to afford the Participant the opportunity to participate in the potential increase in value of the Company over the Performance Period (as defined below).
NOW, THEREFORE, in consideration of the covenants and agreements herein contained, the parties hereto agree as follows:
1.    Grant of Performance Share Units.  Subject to the restrictions, terms and conditions set forth herein and in the Company’s Omnibus Equity Incentive Plan (the “Plan”), the Company hereby grants to the Participant _____________ performance share units (the “Performance Share Units”, or the “Award”). The provisions of the Plan are incorporated herein by reference, and all capitalized terms not otherwise defined herein shall have the same meaning as set forth in the Plan. In the event of any inconsistency between the provisions of the Plan and this Agreement, the provisions of this Agreement shall govern and control. 
The Performance Share Units will be payable, if at all, solely in common stock of the Company (“Stock”), based upon the achievement by the Company of the Performance Goals as described on Exhibit A, over a three-year period commencing January 1, 2018 and ending on December 31, 2020 (the “Performance Period”). The date on which the Performance Period ends either (i) on account of the end of the Performance Period or, if earlier, (ii) due to the Participant’s termination as set forth in Section 4(b) of this Agreement is referred to herein as the “Maturity Date.” The Participant’s right in the Performance Share Units shall vest on February 16, 2021 (the “Vest Date”); provided, however that if the Maturity Date is on or prior to December 31, 2020, then such Maturity Date shall be considered the Vest Date. 
The specific Performance Goals described on Exhibit A were established by the Compensation Committee of the Company. Subject to the other terms and conditions of this Agreement and the Plan, payment of the Performance Share Units will only be made if the Administrator (as of the date of this Agreement, the Company’s Board of Directors has appointed the Compensation Committee of the Company’s Board of Directors as the Administrator) certifies, following the close of the Performance Period, that the pre-established threshold Performance Goals have been satisfied or exceeded in whole or in part on the Maturity Date and that the Participant is still employed by the Company on the Vest Date, and then only to the extent of the level of performance so certified as having been achieved.

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2.    Form of Payment.  The Award earned by reason of the Administrator’s certification as described above will be payable in Stock to the Participant (or the Participant’s beneficiary, or personal administrator in the case of your death or Disability) in the calendar year following the Maturity Date sometime following the Vest Date and on or before March 15 of such calendar year. The amount of Stock to be paid will be determined by multiplying the number of Performance Share Units set forth in paragraph 1 by the Performance Multiple and, as applicable, rounded to the nearest whole number (such resulting number, the “Award Amount”). The Participant shall receive a number of shares of Stock equal to the Award Amount. 
3.    Transferability.  This Award shall not be transferable otherwise than by will or the laws of descent and distribution. Any attempt by the Participant (or in the case of the Participant’s death or Disability, the Participant’s beneficiary or personal administrator) to assign or transfer the Award, either voluntarily or involuntarily, contrary to the provisions hereof, shall be null and void and without effect and shall render the Award itself null and void.
4.    Forfeiture Provisions.  The following forfeiture provisions shall apply to the Performance Share Units:
(a)    If the Participant’s employment with the Company or any if its Subsidiaries is terminated by the Company or such Subsidiary for any reason, with or without Cause, or the Participant resigns (in either case, other than as set forth in Section 4(b) below) prior to the Vest Date, then no amount shall be paid in respect of the Award.
(b)    If the Participant’s employment with the Company or any Subsidiary is terminated (i) by reason of the Participant’s death or (ii) because the Participant is determined by the Board or the Administrator to be subject to a Disability, then the Participant shall be eligible to receive a pro-rated Award, taking into account the time that the Participant was employed during the Performance Period prior to the date of such termination. Any amount payable pursuant to this paragraph 4 shall be paid in accordance with Sections 1 and 2.
5.    Compliance with Section 162(m).  The Administrator shall exercise its discretion with respect to this Award in all cases so as to preserve the deductibility of payments under the Award against disallowance by reason of Section 162(m) of the Code.
6.    Withholding.  The Company shall be obligated to withhold amounts sufficient to satisfy any tax withholding or similar withholding obligations to which the Company or its Subsidiaries may be subject by reason of payment under this Award. The Participant expressly acknowledges and agrees that the Participant’s rights hereunder are subject to this obligation of the Company regarding any applicable taxes required to be withheld in connection with the Award, in a form and manner satisfactory to the Company.
7.    No Right to Continued Employment.  This Agreement does not confer upon the Participant any right to continuance of employment by the Company, nor shall it interfere in any way with the right of the Company to terminate the Participant’s employment at any time.

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8.    Terms of Issuance.  The Participant acknowledges being subject to all terms, conditions and policies contained in the Company’s Employee Manual, as the same may be amended or modified from time-to-time at the sole discretion of the Company.
9.    Notice. Every notice or other communication relating to this Agreement shall be in writing, and shall be mailed to or delivered to the party for whom it is intended at such address as may from time to time be designated in a notice mailed or delivered to the other party as provided herein; provided that, unless and until some other address be so designated, all notices or communications by the Participant to the Company shall be mailed or delivered to the Company at its Tulsa, Oklahoma, office and all notices or communications by the Company to the Participant may be given to the Participant personally or mailed to the Participant’s home address as reflected on the books of the Company.
10.    Administration.  This Agreement and the issuance of Stock contemplated hereunder shall be administered by Board or a committee of one or more members of the Board appointed by the Board to administer this Agreement and such issuance (the “Administrator”). Subject to applicable law, the Administrator shall have the sole and plenary authority to: (i) interpret, administer, reconcile any inconsistency in, correct any defect in and/or supply any omission in this Agreement; (ii) establish, amend, suspend, or waive any rules and regulations and appoint such agents as the Administrator shall deem appropriate for the proper administration of this Agreement; (iii) accelerate the lapse of restrictions on Stock and/or modify the Maturity Date; and (iv) make any other determination and take any other action that the Administrator deems necessary or desirable for the administration of this Agreement. The Administrator may delegate to one or more officers of the Company the authority to act on behalf of the Administrator with respect to any matter, right, obligation, or election that is the responsibility of or that is allocated to the Administrator herein, and that may be so delegated as a matter of law. For the avoidance of doubt, in the event of a Change of Control (as defined in the Plan) the provisions of the Plan shall apply, including, without limitation, the authority and discretion granted to the Administrator with regard to the vesting of Performance Share Units, payment amount and payment timing.
11.    Governing Law.  THIS AGREEMENT IS GOVERNED BY AND SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES OF SUCH STATE. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.
12.    Miscellaneous.
(a)    Amendment and Waiver.  The provisions of this Agreement may be amended, modified or waived only with the prior written consent of the Company and the Participant, and no course of conduct or failure or delay in enforcing the provisions of this Agreement shall be construed as a waiver of such provisions or affect the validity, binding effect or enforceability of this Agreement or any provision hereof.

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(b)    Severability.  Any provision in this Agreement which is prohibited or unenforceable in any jurisdiction by reason of applicable law shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating or affecting the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
(c)    Entire Agreement and Effectiveness.  This Agreement embodies the complete agreement and understanding among the parties hereto with respect to the subject matter hereof and supersede and preempt any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way.
(d)    Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same Agreement.
(e)    Headings.  The paragraph headings have been inserted for purposes of convenience and shall not be used for interpretive purposes.
(f)    Gender and Plurals.  Whenever the context may require, any pronouns used herein shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural and vice versa.
(g)    Successors and Assigns.  This Agreement shall bind and inure to the benefit of and be enforceable by and against the Participant, the Company and their respective successors, allowable assigns, heirs, representatives and estates, as the case may be.
(h)    Construction.  Where specific language is used to clarify by example a general statement contained herein, such specific language shall not be deemed to modify, limit or restrict in any manner the construction of the general statement to which it relates. The language used in this Agreement shall be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction shall be applied against any party.
(i)    Survival of Representations, Warranties and Agreements.  All representations, warranties and agreements contained herein shall survive the consummation of the transactions contemplated hereby and the termination of this Agreement.
(j)    WAIVER OF PUNITIVE AND EXEMPLARY DAMAGE CLAIMS.  EACH PARTY, BY EXECUTING THIS AGREEMENT, WAIVES, TO THE FULLEST EXTENT ALLOWED BY LAW, ANY CLAIMS TO RECOVER PUNITIVE, EXEMPLARY OR SIMILAR DAMAGES NOT MEASURED BY THE PREVAILING PARTY’S ACTUAL DAMAGES IN ANY DISPUTE OR CONTROVERSY ARISING UNDER, RELATING TO OR IN CONNECTION WITH THIS AGREEMENT.
(k)    Delivery of Laredo Petroleum, Inc. Prospectus dated May 25, 2016 Participant acknowledges that Participant has been provided a copy of the Company’s prospectus related to 

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the Company’s Omnibus Equity Incentive Plan through such prospectus’ availability on the Company’s shared network drive, at S:\Omnibus Equity Incentive Plan Prospectus. A copy will also be provided to Participant, upon Participant’s written request to the Company
13.    Section 409A.  Notwithstanding any of the foregoing, it is intended that this Agreement comply with, or be exempt from, the provisions of Section 409A of the Code and that this Award not result in unfavorable tax consequences to the Participant under Section 409A of the Code. This Agreement will be administered and interpreted in a manner consistent with such intent. Notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, the Participant shall not be considered to have terminated employment with Company for purposes of this Agreement and no payments shall be due to him or her under this Agreement which are payable upon his or her termination of employment until he or she would be considered to have incurred a “separation from service” from the Company within the meaning of Section 409A of the Code.  To the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided to a “specified employee” pursuant to this Agreement during the six-month period immediately following the Participant’s termination of employment shall instead be paid within 30 days following the first business day after the date that is six months following his or her termination of employment (or upon his death, if earlier). In addition, for purposes of this Agreement, each amount to be paid or benefit to be provided to the Participant pursuant to this Agreement shall be construed as a separate identified payment for purposes of Section 409A of the Code. Notwithstanding any of the foregoing to the contrary, the Company and its respective officers, directors, employees, or agents make no guarantee that the terms of this Agreement as written comply with, or are exempt from, the provisions of Section 409A of the Code, and none of the foregoing shall have any liability for the failure of the terms of this Agreement as written to comply with, or be exempt from, the provisions of Section 409A of the Code.
14.    Clawback.  The Participant acknowledges and agrees that payments made under this Agreement are subject to clawback if such payments are made (i) on account of fraud or misconduct by the Participant, (ii) following an accounting restatement under certain circumstances (as referenced in the Company’s Omnibus Equity Incentive Plan) or (iii) as may be required by any other policy of the Company which may now exist or hereafter be adopted regarding repayment of incentive-based compensation, as may be in effect from time to time. 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written.

COMPANY:
LAREDO PETROLEUM, INC.

By:    ______________________________
Name:    ______________________________
Title:    ______________________________

PARTICIPANT:
By:    ______________________________
Name:    ______________________________

            

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Exhibit A
Performance Goals
The Performance Goals established by the Compensation Committee of the Company are based on three criteria (i) relative three-year total shareholder return comparing the Company’s shareholder return to the shareholder return of the peer group identified below (“RTSR Performance Percentage”), (ii) absolute three-year total shareholder return (“ATSR Appreciation”) and (iii) three-year return on average capital employed (“ROACE Percentage”). The RTSR Performance Percentage, ATSR Appreciation and ROACE Percentage will be used to identify the RTSR Factor, the ATSR Factor and ROACE Factor, respectively, as stated below. The RTSR Factor, the ASTR Factor and the ROACE Factor shall be used to compute the Performance Multiple. The Performance Multiple shall be used to determine the final number of shares associated with each Performance Share Unit granted at the Maturity Date (with all partial shares rounded, as appropriate). 
In computing the Performance Multiple, each of the RTSTR Factor, the ATSR Factor and the ROACE Factor shall be weighted as follows:
RTSR Factor - 25%
ATSR Factor - 25%
ROACE Factor - 50%
such that the Performance Multiple is calculated as follows:
Performance Multiple = (.25) RTSR Factor + (.25) ATSR Factor + (.5) ROACE Factor
By way of example, if the RTSR Factor is 100%, the ATSR Factor is 65% and the ROACE Factor is 0%, then the Performance Multiple would be .25(1.0) + .25(.65) + .5(0) = 0.4125. With a Performance Multiple of 0.4125, each Performance Share Unit would be settled for 0.4125 shares such that a holder of 600 Performance Share Units would receive 248 shares.   
Notwithstanding anything in this Exhibit A to the contrary, if in the Administrator’s discretion there is a need to adjust the Performance Multiple to more accurately reflect the Company’s performance than is calculated by using the criteria included on this Exhibit A due to the occurrence of extraordinary, nonrecurring and/or significant corporate events, then the Administrator may make any such adjustments to the Performance Multiple as it deems advisable.

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RTSR Factor is calculated on the basis of the following formula:
RTSR Performance Percentage =
 End Average Stock Price plus Dividends*  - Start Average Stock Price
         Start Average Stock Price

with the Start Average Stock Price being the average closing stock price for the 30 trading days immediately preceding the Grant Date and the End Average Stock Price being the average closing stock price for the 30 trading days immediately preceding the Maturity Date, as reported on the stock exchange on which such shares are listed. 

RTSR Factor shall be calculated on the following basis:

	
		
	RTSR Performance Percentage Thresholds
	RTSR Factor 

	Below 30th Percentile 
	0%

	30th Percentile
	50%

	60th Percentile 
	100%

	90th Percentile 
	200%

The Committee will interpolate all points between the RTST Performance Percentage Thresholds and adjust the RTSR Factor accordingly. 

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The Peer Group consists of the following companies:** 
	
			
	Callon Petroleum Company
	Carrizo Oil & Gas, Inc.
	Centennial Resource Development

	Diamondback Energy, Inc.
	Eclipse Resources Corp
	Energen Corporation

	EP Energy Corp.
	Extraction Oil & Gas
	Jagged Peak Energy

	Matador Resources Company
	Newfield Exploration
	Oasis Petroleum

	Parsley Energy, Inc.
	PDC Energy, Inc.
	QEP Resources, Inc.

	Range Resources Corp
	RSP Permian, Inc.
	Sanchez Energy Corp

	SM Energy Company
	SRC Energy Inc.
	Resolute Energy Corporate

	Whiting Petroleum Corp
	Wildhorse Resource Development
	WPX Energy, Inc.

* Dividends shall be assumed to be reinvested, as applicable
** the Board, Committee or Administrator may, in its good faith, substitute or set a specific applicable price in the event of a liquidation, bankruptcy, dissolution, merger, acquisition or similar event affecting any peer company in accordance with then current policy.

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ATSR Factor is calculated on the basis of the following formula:

      End Average Stock Price plus Dividends*  - Start Average Stock Price
ATSR Appreciation  =                      Start Average Stock Price

with the Start Average Stock Price being the average closing stock price for the 30 trading days immediately preceding the Grant Date and the End Average Stock Price being the average closing stock price for the 30 trading days immediately preceding the Maturity Date, as reported on the stock exchange on which such shares are listed. 

ATSR Factor shall be calculated on the following basis:

	
		
	ATSR Appreciation Thresholds
	ATSR Factor 

	Below 10% 
	0%

	10%
	25%

	35% 
	100%

	60% and above
	200%

The Committee will interpolate all points between the Share Appreciation Thresholds and adjust the ATSR Factor accordingly.  

* Dividends shall be assumed to be reinvested, as applicable

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ROACE Factor is calculated on the basis of the following formula:

ROACE Percentage = Average EBITDA divided by Average Company Capital

Average EBITDA = Total Adjusted EBITDA* from January 1, 2018 through December 31, 2020** divided by 3*** 

Average Company Capital = The total market value of outstanding capital stock plus the value of the net debt at December 31, 2017 plus the Time-Weighted Average Adjustments

Time-Weighted Average Adjustments = For the period between January 1, 2018 and December 31, 2020**, the total value received by the Company for any equity issuances plus the total value of additional debt borrowings minus the total value of any debt reductions minus the total value of any equity repurchases; with each such addition or subtraction individually being multiplied by its respective Weighting Factor

Weighting Factor = for each individual transaction, a fraction, the numerator of which is the number of fiscal quarters remaining until the Maturity Date from the quarter in which such transaction occurs and the denominator of which is 12**** 

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By way of example:

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ROACE Factor shall be calculated on the following basis:

	
		
	ROACE Percentage Thresholds 
	ROACE Factor 

	10% and below
	0%

	20%
	100%

	30% and above
	200%

The Committee will interpolate all points between the ROACE Percentage Thresholds and adjust the ROACE Factor accordingly. 

* Total Adjusted EBITDA shall be defined as in the Company’s 2017 Annual Report on Form 10-K filed on February 15, 2018
** Unless the Maturity Date is prior to December 31, 2020, in which case the Maturity Date shall be used instead of December 31, 2020
*** Unless the Maturity Date is prior to December 31, 2020, in which case instead of 3, the calculation shall use the number that represents the number of years (rounded to the nearest 1/12th) between December 31, 2017 and the Maturity Date
**** Unless the Maturity Date is prior to December 31, 2020, in which case instead of 12, the calculation shall use the number that represents the number of fiscal quarters between December 31, 2017 and the Maturity Date

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