Document:

EX-10.18

 Exhibit 10.18 
 INDEPENDENCE CONTRACT DRILLING, INC. 
 2012 OMNIBUS INCENTIVE PLAN

 NONQUALIFIED STOCK OPTION AGREEMENT 
 THIS NON QUALIFIED STOCK OPTION AGREEMENT (this “Agreement”) is effective [•] (the “Grant Date”), between Independence Contract
Drilling, Inc., a Delaware corporation (the “Company”), and [•] (the “Holder”). 
 WHEREAS, the Company has established the Independence Contract Drilling, Inc. 2012 Omnibus Incentive Plan (the “Plan”); and 

WHEREAS, the Holder is currently an Employee of the Company or one of its Affiliates, and the Company desires to encourage the
Holder’s continued service and, as an inducement thereto, has determined to grant to the Holder pursuant to the Plan the option provided for herein. 
 NOW, THEREFORE, in consideration of the premises and the covenants and the agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and the Holder hereby agree as follows: 
  

	1.	Definitions. Capitalized terms not otherwise defined in this Option Agreement shall have the meanings given to such terms in the Plan.

  

	2.	Grant. Effective as of the Grant Date, the Company hereby grants to the Holder pursuant to the terms and conditions of the Plan an option (the
“Option’’) to purchase [•] shares of Common Stock at a price of [•] per share (the “Option Price’’). The Option shall be for a term commencing on the Grant Date and ending on the [•]
anniversary of the Grant Date (the “Expiration Date’’) (unless such Option terminates earlier as provided in this Option Agreement or as set forth under the terms of the Plan). The Option is subject to the terms and provisions
of the Plan, which are hereby incorporated herein by reference and the terms and provisions of this Option Agreement. 

  

	3.	Vesting. So long as the Option has not been terminated, the Option shall vest and be exercisable as follows: 

 

	 	(a)	on the Grant Date, the Option shall be vested and be exercisable with respect to [•] of the shares subject to this Option; 

 

	 	(b)	on the first anniversary of the Grant Date, the Option shall be vested and exercisable with respect to an additional [•] shares subject to this Option;

  

	 	(c)	on the second anniversary of the Grant Date, the Option shall be vested and exercisable with respect any additional [•] shares subject to this Option; and

  

	 	(d)	on the third anniversary of the Grant Date, the Option shall be vested and exercisable with respect to an additional [•] shares subject to this Option.

 In addition, all unvested Options shall immediately vest upon a Change of Control.

 “Change in Control” means the occurrence of any of the following events: 

(a) Change in Board Composition. Individuals who constitute the members of the Board as of the date hereof (the
“Incumbent Directors”), cease for any reason to constitute at least a majority of members of the Board; provided that any individual becoming a director of the Company subsequent to the date hereof shall be considered an Incumbent Director
if such individual’s appointment, election or nomination was approved by a vote of at least 50% of the Incumbent Directors; provided further that any such individual whose initial assumption of office is in connection with an actual or
threatened election contest relating to the election of members of the Board or other actual or threatened solicitation of proxies or contests by or on behalf of a “person” (within the meaning of Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)) other than the Board, including by reason of agreement intended to avoid or settle any such actual or threatened contest or solicitation, shall not be considered an Incumbent Director;

 (b) Business Combination. Consummation of (i) a reorganization, merger, consolidation, share
exchange or other business combination involving the Company or any of its subsidiaries or the disposition of all or substantially all the assets of the Company, whether in one or a series of related transactions, or (ii) the acquisition of
assets or stock of another entity by the Company (either, a “Business Combination”), excluding, however, any Business Combination pursuant to which: (A) individuals who were the “beneficial owners” (as such term is defined
in Rule 13d-3 under the Exchange Act), respectively, of the then outstanding shares of common stock of the Company (the “Outstanding Stock”) and the combined voting power of the then outstanding securities entitled to vote generally in the
election of directors of the Company (the “Outstanding Company Voting Securities”) immediately prior to such Business Combination beneficially own, upon consummation of such Business Combination, directly or indirectly, more than 50% of
the then outstanding shares of common stock (or similar securities or interests in the case of an entity other than a corporation) and more than 50% of the combined voting power of the then outstanding securities (or interests) entitled to vote
generally in the election of directors (or in the selection of any other similar governing body in the case of an entity other than a corporation) of the Surviving Corporation (as defined below) in substantially the same proportions as their
ownership of the Outstanding Stock and Outstanding Company Voting Securities, immediately prior to the consummation of such Business Combination (that is, excluding any outstanding voting securities of the Surviving Corporation that such beneficial
owners hold immediately following the consummation of the Business Combination as a result of their ownership prior to such consummation of voting securities of any company or other entity involved in or fanning part of such Business Combination
other than the Company); (B) no person (other than the Company, any subsidiary of the Company, any employee benefit plan of the Company or any of its subsidiaries or any trustee or other fiduciary holding securities under an employee benefit
plan of the Company or any subsidiary of the Company) or group (as such term is defined in Rule 13d-3 under the Exchange Act) becomes the beneficial owner of 20% or more of either (x) the then

  
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outstanding shares of common stock (or similar securities or interests in the case of entity other than a corporation) of the Surviving Corporation, or (y) the combined voting power of the
then outstanding securities (or interests) entitled to vote generally in the election of directors (or in the selection of any other similar governing body in the case of an entity other than a corporation); and (C) individuals who were
Incumbent Directors at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination constitute at least a majority of the members of the board of directors (or of any similar governing body
in the case of an entity other than a corporation) of the Surviving Corporation; where for purposes of this subsection (b), the term “Surviving Corporation” means the entity resulting from a Business Combination or, if such entity is a
direct or indirect subsidiary of another entity, the entity that is the ultimate parent of the entity resulting from such Business Combination; 
 (c) Stock Acquisition. Any person (other than the Company, any subsidiary of the Company, any employee benefit plan of the Company or any of its subsidiaries or any trustee or other fiduciary
holding securities under an employee benefit plan of the Company or any subsidiary of the Company) or group becomes the beneficial owner of 20% or more of either (x) the Outstanding Stock or (y) the Outstanding Company Voting Securities;
provided, however, that for purposes of this subsection (c), no Change of Control shall be deemed to have occurred as a result of any acquisition directly from the Company; or 

(d) Liquidation. Approval by the stockholders of the Company of a complete liquidation or dissolution of the
Company (or, if no such approval is required, the consummation of such a liquidation or dissolution). 
  

	4.	Non-Incentive Stock Option. The Option is not intended to qualify as an “incentive stock option” as defined in Section 422 of the Internal
Revenue Code of 1986, as amended. 

  

	5.	Exercise of Options. The Option may be exercised from time to time as to the total number of shares that may then be issuable upon the exercise thereof or
any portion thereof by the Holder, a Permitted Assignee (as defined in Section 6) with the consent of the Committee, or, in the event of the death or disability of the Holder, the Holder’s executors, administrators, guardian, or legal
representative by giving written notice of such exercise to the Company or its designated agent in substantially the form attached hereto as Exhibit A. 

 

	6.	Assignment. The Option may not be transferred or assigned in any manner by the Holder except by testament or the laws of descent and distribution or
pursuant to a qualified domestic relations order (as defined in Section 401(a)(l3) of the Internal Revenue Code of 1986, as amended, or Section 206(d)(3) of the Employee Retirement Income Security Act of 1974, as amended), and shall be
exercisable during the Holder’s lifetime only by him or her (or, if under a qualified domestic relations order, his or her alternate payee). Notwithstanding the foregoing, a Holder may assign or transfer the Option with the consent of the
Committee (i) for charitable donations; (ii) to the Holder’s spouse, children or grandchildren (including any adopted and stepchildren and grandchildren); or (iii) to a 

  
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trust for the benefit of the Holder or the persons referred to in clause (ii) (each transferee thereof, a “Permitted Assignee’’); provided that such Permitted
Assignee shall be bound by and subject to all of the terms and conditions of the Plan and this Option Agreement and shall execute an agreement satisfactory to the Company evidencing such obligations; and provided further that such Holder
shall remain bound by the terms and conditions of the Plan. Any attempted assignment of the Option in violation of this Section 6 shall be null and void. In the discretion of the Committee, any attempt to transfer the Option other than under
the terms of the Plan and this Option Agreement may terminate the Option. 

  

	7.	Changes in the Company’s Capital Structure. The existence of the Option shall not affect in any way the right or power of the Company (or any company
the stock of which is awarded pursuant to this Option Agreement) or its stockholders to make or authorize any adjustment, recapitalization, reorganization or other changes in its capital structure or its business, engage in any merger or
consolidation, issue any debt or equity securities, dissolve or liquidate, or sell, lease, exchange or otherwise dispose of all or any part of its assets or business, or engage in any other corporate act or proceeding, whether of a similar character
or otherwise. 

  

	8.	Requirements of Law. The Company shall not be required to sell or issue any shares on the exercise of the Option if the issuance of such shares shall
constitute a violation by the Holder or the Company of any provisions of any law or regulation of any governmental authority. Regarding any applicable statute or regulation relating to the registration of securities, upon exercise of the Option, the
Company shall not be required to issue any shares of Stock unless the Committee has received evidence satisfactory to it to the effect that the Holder will not transfer the shares of Stock except in accordance with applicable law, including receipt
of an opinion of counsel satisfactory to the Company to the effect that any proposed transfer complies with applicable law. The determination by the Committee on this matter shall be [mal, binding, and conclusive. The Company may, but shall in no
event be obligated to, register any shares of Stock covered by the Plan pursuant to applicable securities laws of any country or any political subdivision. In the event the shares of Stock issuable on exercise of the Option are not registered, the
Company may imprint on the certificate evidencing the shares of Stock the following legend or any other legend that counsel for the Company considers necessary or advisable to comply with applicable law: 

THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR UNDER THE SECURITIES LAWS
OF ANY STATE AND MAY NOT BE SOLD OR TRANSFERRED EXCEPT UPON SUCH REGISTRATION OR UPON RECEIPT BY THE CORPORATION OF AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION, IN FORM AND SUBSTANCE SATISFACTORY TO THE CORPORATION, THAT REGISTRATION IS
NOT REQUIRED FOR SUCH SALE OR TRANSFER. 

  
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 Should the shares of Stock be represented by book or electronic entry rather than by
certificate, the Company may take such steps to restrict transfer of the shares of Stock as counsel for the Company considers necessary or advisable to comply with applicable law. The Company shall not be obligated to take any other affirmative
action to cause the exercise of the Option or the issuance of shares pursuant thereto to comply with any law or regulation of any governmental authority. 
  

	9.	Termination. The Option, to the extent it shall not previously have been exercised, shall terminate on the earlier of the (i) Expiration Date,
(ii) as provided in Section 4.7 of the Plan or other provisions of the Plan or (iii) as provided in the Plan upon Separation from Service, unless the Committee extends the term of this Option in writing to a period not extending
beyond the Expiration Date. 

 In addition, notwithstanding anything in this Option any vested and unexercised
Options shall terminate on the first anniversary following Separation from Service unless such Separation of Service occurs as a result of termination of employment for “Good Reason” or “Cause” or such Separation from Service
occurs within six months from a Change of Control, in which case any vested Options shall survive until the Expiration Date. 
  

	10.	Forfeitures. This Option shall be subject to the forfeiture provisions set forth in the Plan, including, subject to anything in this Agreement or any
written employment agreement with the Company to the contrary, that in the event the Holder’s employment with the Company and its Affiliates terminates, any unvested portion of this Option shall immediately be forfeited to the Company without
any consideration and shall cease to be outstanding. 

  

	11.	No Rights as a Stockholder. The Holder shall not have any rights as a stockholder with respect to any shares issuable upon the exercise of the Option
until the date of issuance of the stock certificate or certificates representing such shares following the Holder’s exercise of the Option pursuant to its terms and conditions and payment for such shares and the acceptance by the Company of an
instrument of accession to the stockholders agreement of the Company then in effect executed by the Holder. Except as otherwise provided in the Plan, no adjustment shall be made for dividends or other distributions made with respect to the Common
Stock the record date for the payment of which is prior to the date of issuance of the stock certificate or certificates representing such shares following the Holder’s exercise of the Option. 

 

	12.	Tax Withholding. To the extent that the grant, exercise, or vesting of the Option results in income to the Holder for federal, state, local or foreign
income, employment, excise or other tax purposes with respect to which the Company or an Affiliate has a withholding obligation, the Company or Affiliate may deduct from other compensation payable to the Holder any sums required by federal, state,
local, or foreign tax law to be withheld with respect to the grant, exercise, or vesting of the Option. In the alternative, the Company or Affiliate may require the Holder (or other person validly exercising the Option) to pay such sums for taxes
directly to the Company or Affiliate, as the case may be, in cash or by check within one day after the date of grant, vesting or exercise. In the discretion of the Committee, and with the consent of the Holder, the Company may reduce the number of
shares of Stock issued to the Holder upon the Holder’s exercise of the Option to satisfy the tax withholding obligations of the Company or an Affiliate; provided that the Fair Market Value of the shares of Stock held back shall not
exceed the Company’s or the Affiliate’s Minimum Statutory Tax Withholding Obligation. 

  
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 The Company shall have no obligation upon grant, vesting, or exercise of the Option to issue
any shares of Stock hereunder until the Company or an Affiliate has received payment sufficient to cover the Minimum Statutory Tax Withholding Obligation with respect to that grant, vesting, .or exercise. Neither the Company nor any Affiliate shall
be obligated to advise the Holder of the existence of the tax or the amount which it will be required to withhold. 
  

	13.	No Fractional Shares. All provisions of this Option Agreement concern whole shares. Notwithstanding anything contained in this Option Agreement to the
contrary, if the application of any provision of this Option Agreement would yield a fractional share, such fractional share shall be rounded down to the next whole share. 

 

	14.	Notices. Any notice, instruction, authorization, request, or demand required hereunder shall be in writing, and shall be delivered either by personal
delivery, by telegram, telex, telecopy or similar facsimile means, by certified or registered mail, return receipt requested, by facsimile transmission, or by courier or delivery service to the Company at 11601 N. Galayda Drive, Houston, Texas
77086, Attention: Chief Financial Officer, and to the Holder at the Holder’s address and facsimile number (if applicable) indicated beneath the Holder’s signature on the execution page of this Option Agreement, or at such other address and
facsimile number as a party shall have previously designated by written notice given to the other party in the manner hereinabove set forth. Notices shall be deemed given when received, if sent by facsimile means (confirmation of such receipt by
confirmed facsimile transmission being deemed receipt of communications sent by facsimile means); and when delivered (or upon the date of attempted delivery where delivery is refused), if hand-delivered, sent by express courier or delivery service,
or sent by certified or registered mail, return receipt requested. 

  

	15.	No Employment Obligation. This Option Agreement is not an employment contract, express or implied, and no provision of this Option Agreement shall impose
upon the Company or any Affiliate any obligation to employ or continue to employ, or utilize the services of, the Holder. The right of the Company or any Affiliate to terminate the employment of the Holder shall not be diminished or affected by
reason of the fact that the Option has been granted to the Holder, and nothing in the Plan or this Option Agreement shall interfere with or limit in any way the right of the Company or its Affiliates to terminate any employee’s employment at
any time or for any reason not prohibited by law. 

  

	16.	Successors and Assigns. Except as otherwise provided to the contrary in this Option Agreement or in the Plan, this Option Agreement shall bind, be
enforceable by and inure to the benefit of the Company, its Affiliates, and their successors and assigns, and to the Holder, the Holder’s Permitted Assignees, executors, administrators, agents, and legal and personal representatives.

  
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	17.	Grant Subject to Terms of Plan and this Option Agreement. The Holder acknowledges and agrees that the grant of the Option hereunder is made pursuant to
and governed by the terms of the Plan and this Option Agreement, ratifies and consents to any action taken by the Company, the Board of Directors or the Committee concerning the Plan and agrees that the grant of the Option pursuant to this Option
Agreement is subject in all respects to the more detailed provisions of the Plan. 

  

	18.	Amendment and Waiver. Subject to the Plan, this Option Agreement may be amended, modified, or superseded by written instrument executed by the Company and
the Holder. Only a written instrument executed and delivered by the party waiving compliance hereof shall make any waiver of the terms or conditions effective. Any waiver granted by the Company shall be effective only if executed and delivered by a
duly authorized executive officer of the Company. 

 IN WITNESS WHEREOF, this Option Agreement has been
duly executed and delivered as of the day and year first above mentioned. 
  

							
	INDEPENDENCE CONTRACT DRILLING, INC.	  		  	HOLDER
				
	By	 	  
	  		  	  

		 	        Philip A. Choyce	  		  	            [•]
		 	        Senior Vice President & Chief Financial Officer	  		  	            [•]

  
 - 7 -EX-10.19

 Exhibit 10.19 

INDEPENDENCE CONTRACT DRILLING, INC. 

PERFORMANCE UNIT AWARD AGREEMENT 

TOTAL SHAREHOLDER RETURN 

Grantee:                     

 1. Grant of Performance Unit Award. 

(a) As of the effective date of this agreement (this “Agreement”), Independence Contract Drilling, Inc., a Delaware
corporation (the “Company”), hereby grants to the Grantee (identified above)             1 restricted stock
units (the “RSUs”) pursuant to the Amended and Restated Independence Contract Drilling, Inc. 2012 Omnibus Incentive Plan, as amended (the “Plan”). The RSUs represent the opportunity to receive a number of shares of
Common Stock of the Company based upon satisfaction of certain EBITDA targets and the “Payout Multiplier” as defined in Exhibit A, subject to Exhibit C. The actual number of shares of Common Stock that may be issued pursuant to the
terms of this Agreement will be between 0% and 200% of the number of Target RSUs. 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. 
 (b) To determine the number, if any, of RSUs that shall vest, the methodology on Exhibit A
shall be followed, subject to Exhibit C. For purposes of this Agreement, the “Performance Period” shall be deemed to begin on             , 2014, (the “Effective
Date”) and end on the third anniversary of the Effective Date (the “Determination Date”). 
 2.
Definitions. All capitalized terms used herein shall have the meanings set forth in the Plan unless otherwise provided herein. Exhibits A, B and C set 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 employment with the Company or its affiliates (the “Company Group”) prior to the Determination Date. To the extent not forfeited prior to the
Determination Date, the number of RSUs vesting shall, to the extent not vesting earlier pursuant to Exhibit C, be determined pursuant to the methodology on Exhibit A. 

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

5. Restrictions on RSUs and Settlement of Vested RSUs.  

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

 

	1 	Insert the number of RSUs that would vest if the maximum performance metric were achieved. 

 (b) The Company shall settle vested RSUs within 30 days of the date such RSUs vest. Each vested
RSU shall entitle the Grantee to receive 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. 
 9. No Guarantee of Employment. This Agreement shall not confer upon Grantee any right to
continued employment with the Company or any Affiliate thereof. 

  
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 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. 

  
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 (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. 
 (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 or the [Employment Agreement/Change of Control 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 same date, to be effective as of [            ], 2014. 

 

					
	INDEPENDENCE CONTRACT DRILLING, INC.
			
		 	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

		
		 	 Address for Notices:
  

Independence Contract Drilling, Inc.
 11601 North Galayda
Street
 Houston, Texas 77086
 Fax: [•]

Attn: [Chief Executive Officer]

		
		 	GRANTEE
			
		 	By:	 	  

		 	Name:	 	  

		
		 	Address for Notices:
		 	  

		 	  

		 	  

		 	Fax:	 	  

  
 5 

 Exhibit A 

Methodology for Calculating Vested RSUs 

1. Definitions. For purposes of determining the number of RSUs that vest, the following definitions shall apply: 

(a) Target RSUs means             .2 
 (b) Peer Group means the following eight companies to the extent such entities or
their successors are in existence and publicly traded as of the Performance End Date: Helmerich & Payne, Inc. (NYSE: HP), Nabors Industries, Inc. (NYSE: NBR), Patterson-UTI Energy, Inc. (NYSE: PTEN), Precision Drilling Corporation (NYSE:
PDC), Pioneer Energy Services Corp. (NYSE: PES), Trinidad Drilling, Inc. (TOR: TDG.TO), Basic Energy Services, Inc. (NYSE: BAS), and C&J Energy Services, Inc. (NYSE: CJES). 

(c) Total Shareholder Return or TSR means shall be defined and calculated as follows, where “Beginning Price” is
(1) with respect to the Company, the initial price to public in the Company’s initial public offering on the date hereto, and (2) with respect to members of the Peer Group, the average closing price on the New York Stock Exchange
(“NYSE”) for the last 20 NYSE trading days prior to and including the date of this Agreement, and “Ending Price” is the average closing price on the NYSE for the last 20 NYSE trading prior to and including the
Determination Date, in each case as applied to the applicable equity security: 
 TSR = (Ending Price – Beginning Price + cash
dividends (if any) per share paid*) 
 Beginning Price 
  

	*	Stock dividends paid in securities rather than cash in which there is a distribution of less than 25 percent of the outstanding shares (as calculated prior to the distribution) shall be treated as cash for purposes of
this calculation. 

 To the extent a security of the Company or any member of the Peer Group is not listed or traded on the
NYSE, “NYSE” as used above shall mean the principal national securities exchange or quotation service on which the security is listed or quoted. TSR of the Company or of any member of the Peer Group shall be equitably adjusted, as
determined by the Committee, to reflect any spin-off, stock split, reverse stock split, stock dividend, recapitalization, reclassification or other similar change in the number of outstanding shares of common stock. 

2. Committee Methodology. Subject to Exhibit C, for purposes of determining the number of RSUs that vest, the Committee shall:

  

	2 	Insert number of Target RSUs (i.e., the number of RSUs that would vest if the Payout Multiplier were 1.0). 

  
 6 

 (a) Calculate the Total Shareholder Return for the Company and each member of the Peer Group for
the Performance Period. 
 (b) Rank the Company and each member of the Peer Group based on Total Shareholder Return with the entity having
the highest Total Shareholder Return ranking in the first position and the entity with the lowest Total Shareholder Return ranking in the ninth position. 

(c) Determine the Payout Multiplier to be utilized in determining the number of RSUs that vest, and thus the number of shares of Common Stock
to be issued to the Grantee based on the Payout Schedule below: 
  

			
	 Eight Company Payout Schedule

	 Company Ranking
	  	Payout Multiplier
	 1
	  	2.00
	 2
	  	2.00
	 3
	  	2.00
	 4
	  	1.50
	 5
	  	1.00
	 6
	  	0.75
	 7
	  	0.50
	 8
	  	0.25
	 9
	  	0.00

 (d) Determine the number of RSUs that vest, and thus the number of shares of Common Stock to be issued to
Grantee, by multiplying the number of Target RSUs by the Payout Multiplier. 
 (e) If any calculation with respect to the number of RSUs that
vest, and thus the number of shares of Common Stock to be issued hereunder would result in a fractional share, the number of shares of Common Stock to be issued shall be rounded down to the nearest whole share. 

3. Peer Group Changes. If, as a result of merger, acquisition or a similar corporate transaction, a member of the Peer Group ceases to
be a member of the Peer Group (an “Affected Peer Company”), the Affected Peer Company shall not be included in the Payout Schedule and the following alternative Payout Schedules shall be used in its place in determining the Payout
Multiple: 

  
 7 

			
	 Seven Company Peer Group Payout Schedule

	 Company Ranking
	  	Payout Multiplier
	 1
	  	2.00
	 2
	  	2.00
	 3
	  	2.00
	 4
	  	1.50
	 5
	  	1.00
	 6
	  	0.75
	 7
	  	0.50
	 8
	  	0.00

  

			
	 Six Company Peer Group Payout Schedule

	 Company Ranking
	  	Payout Multiplier
	 1
	  	2.00
	 2
	  	2.00
	 3
	  	1.50
	 4
	  	1.00
	 5
	  	0.67
	 6
	  	0.33
	 7
	  	0.00

 If a member of the Peer Group declares bankruptcy, or ceases to be publicly traded as a result of bankruptcy,
it shall not be deemed an Affected Peer Company and shall be deemed to remain in the Peer Group until the expiration of the Performance Period and shall occupy the lowest ranking in the Payout Schedule. If, as a result of merger, acquisition or a
similar corporate transaction, there are three or more Affected Peer Companies, the Committee may in its sole discretion revise the makeup of the Peer Group and make adjustments to the Payout Multipliers in a manner consistent with the methodologies
contained herein as determined by the Committee in its reasonable discretion. 

  
 8 

 Exhibit B 

Certain Definitions. 

1. Cause shall mean Grantee’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 Grantee 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 Grantee’s duties and responsibilities. 

Any termination of employment by the Company for Cause shall be communicated by Notice of Termination to the Grantee given in
accordance with Section 11(a) of this Agreement. 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 Grantee’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 Grantee’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. 

  
 9 

 2. [Change of Control Agreement shall mean the Change of Control Agreement entered into
effective [            ], by and between the Company and the Grantee, as amended.]3 

3. [Employment Agreement shall mean the [            ] entered into
effective [            ], by and between the Company and the Grantee, as amended.]4 

4. Good Reason shall mean without the express written consent of Grantee, the occurrence of any of the following: 

(i) any action or inaction that constitutes a material breach by the Company of the [Employment Agreement/Change of Control
Agreement] and such action or inaction continues uncured after thirty (30) days following written notice from the Grantee; 

(ii) the assignment to the Grantee of any duties resulting in a material diminution of the Grantee’s position (including
status, offices, titles and reporting requirements), authority, duties or responsibilities as contemplated by the Employment Agreement, or any other action by the Company which results in a material 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 Grantee; or 

(iii) a change in the geographic location of Grantee’s principal office location to a location more than fifty
(50) miles from Houston, Texas. 
 Notwithstanding anything herein to the contrary, the interim assignment of Grantee’s position,
authority, duties, or responsibilities to any person while Grantee is absent from his duties shall not constitute a Good Reason for Grantee to terminate his employment with the Company. In addition, the Grantee’s termination of employment shall
not constitute Good Reason unless Grantee notifies the Company in writing of the condition or event constituting Good Reason within ninety (90) days of the condition’s initial occurrence and the Company fails to cure the conditions, to the
extent curable, specified in the notice within thirty (30) days following such notification. Further, the Grantee’s termination of employment shall not constitute termination for Good Reason unless Grantee terminates his employment with
the Company within thirty (30) days following the end of the Company’s 30-day cure period. Any termination during the Employment Term by the Grantee for Good Reason shall be communicated by Notice of Termination to the Company given in
accordance with Section 11(a) of the Agreement. 
  

	3 	Include reference to existing change of control agreement if applicable. 

	4 	Include reference to existing employment agreement if applicable. 

  
 10 

 Exhibit C 

1. Termination of Employment. If prior to the Determination Date, the Grantee’s employment with the Company Group is
terminated: 
 (i) by the Company without Cause, or 

(ii) by the Grantee for Good Reason; 
 then,
notwithstanding any other provision of this Agreement or the [Employment Agreement/Change of Control Agreement], the RSUs shall vest on a pro rata basis determined by multiplying the number of Target RSUs granted hereunder by a fraction (not greater
than 1.0), the numerator of which is the number of months (not including any partial months) that have elapsed since the Effective Date to the date of the Grantee’s termination of employment, and the denominator of which is the total number of
months in the period beginning on the Effective Date and ending on the third anniversary of the Effective Date. All remaining unvested RSUs shall be immediately forfeited. 

2 Change in Control. Notwithstanding any other provision of this Agreement or the [Employment Agreement/Change of Control
Agreement], if a Change in Control occurs prior to the Determination Date and the Grantee has remained continuously employed by the Company Group from the Effective Date to the date upon which such Change in Control occurs, the RSUs shall vest on a
pro rata basis determined by multiplying the number of Target RSUs granted hereunder by a fraction (not greater than 1.0), the numerator of which is the number of months (not including any partial months) that have elapsed since the Effective Date
to the date of the Change in Control, and the denominator of which is the total number of months in the period beginning on the Effective Date and ending on the third anniversary of the Effective Date. All remaining unvested RSUs shall be forfeited.
All remaining RSUs shall automatically be immediately forfeited. 
 For purposes of this Agreement, “Change of
Control” shall mean: 
 A. 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 

  
 11 

 B. 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 B, 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 
 C. 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 

D. Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. 

Notwithstanding the foregoing, however, in any circumstance or transaction in which compensation would be subject to the income tax under
Section 409A if the foregoing definition of “Change of Control” were to apply, but would not be so subject if the term “Change of Control” were defined herein to mean a “change in control event” within the meaning
of Treasury Regulation Section 1.409A-3(i)(5), then “Change of Control” means, but only to the extent necessary to prevent such compensation from becoming subject to the income tax under Section 409A, a transaction or
circumstance that satisfies the requirements of both (1) a Change of Control under the applicable clauses (A) through (D) above, as applicable, and (2) a “change in control event” within the meaning of Treasury
Regulation Section 1.409A-3(i)(5). 

  
 12

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