Document:

Form of Registration Rights Agreement

 Exhibit 4.2 
 REGISTRATION RIGHTS AGREEMENT 
 This REGISTRATION RIGHTS AGREEMENT (the “Agreement”) dated
                    , 2007 (the “Effective Date”) is entered into by and among Rex Energy Corporation, a Delaware corporation
(the “Company”), and each of the undersigned (the “Investors”). 
 RECITALS 
 WHEREAS, the Company has solicited the consent of certain Investors pursuant to the Confidential Consent Solicitation/Offering Memorandum of the Company
dated March 15, 2007 (the “Offering Memorandum”); 
 WHEREAS, subject to the terms and conditions described in the
Offering Memorandum, the Investors shall have the right to receive shares of Common Stock; and 
 WHEREAS, as an inducement to the Investors
to enter into the Transactions, the Company has agreed to provide to the Investors and their direct and indirect transferees the registration rights set forth in this Agreement; 
 NOW, THEREFORE, in consideration of the mutual promises and agreements set forth herein and for other valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows: 
 1. Definitions. For purposes of this Agreement,
capitalized terms used but not defined herein shall have the meanings specified in the Offering Memorandum. As used in this Agreement, the following terms shall have the following meanings: 
 “Affiliate” shall mean, as to any Person, any other Person which directly or indirectly controls, is under common control
with, or is controlled by, such Person. As used in this definition, “control” (including, with it correlative meanings, “controlled by” and “under common control with”) shall mean possession, directly or indirectly, of
power to direct or cause the direction of management or policies (whether through ownership interests, by contract or other otherwise). 
 “Common Stock” means the Company’s Common Stock, par value $.001 per share. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Management
Investors” shall mean Michael Carlson, Benjamin Hulburt, Christopher Hulburt, Andrew Joyner, Jack Shawver, Thomas Shields and Thomas Stabley. 

 “Offering Memorandum” shall have the meaning set forth in the recitals.

 “Person” means an individual, a partnership, a corporation, a limited liability company, an association, a
joint stock company, a trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof. 
 “Registrable Securities” means (a) any Common Stock issued or issuable to an Investor pursuant to the Transactions
and (b) any other Common Stock issued or issuable with respect to the securities referred to in clause (a) by way of a stock dividend or stock split or in connection with an exchange or combination of shares, recapitalization, merger,
consolidation, reorganization or otherwise. As to any particular Registrable Securities, such securities shall cease to be Registrable Securities when they (i) have been distributed to the public pursuant to an offering registered under the
Securities Act or sold to the public through a broker, dealer or market maker in compliance with Rule 144 under the Securities Act (or any similar rule then in force) or (ii) are saleable in a transaction exempt from the registration and
prospectus delivery requirements of the Securities Act under Section 4(1) thereof so that all transfer restrictions and restrictive legends with respect thereto are or could be removed upon the consummation of such sale. 
 “Registration Statement(s)” means a registration statement(s) of the Company under the Securities Act. 
 “Securities Act” means the Securities Act of 1933, as amended. 
 “SEC” means the United States Securities and Exchange Commission or any successor entity. 
 “Shaner Investors” shall mean Lance T. Shaner and The Lance T. Shaner Irrevocable Grandchildren’s Trust II.

 2. Mandatory Registration. 
 (a) The Company shall use commercially reasonable efforts to (i) prepare, and, (ii) on or prior to the date that is three hundred (300) calendar days after the Effective Date, file with the SEC a
Registration Statement on Form S-1 (the “Mandatory Registration”); provided, that, subject to the limitations set forth in Section 2(b), a portion of the shares of Common Stock covered by such Registration
Statement may cover the resale of Registrable Securities; provided, further, that the Company shall not be required to file such Registration Statement if (A) the conditions to the Required Merger Transactions (other than the
effectiveness of the Registration Statement) have not been fulfilled; or (B) the board of directors of the Company determines, in the good faith exercise of its business judgment, that market conditions are not conducive to meeting the
Company’s valuation expectations. 
  

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 (b) Prior to the commencement of the road show related to the Mandatory Registration, the
Company shall provide each Investor with written notice (the “Registration Notice”) of the anticipated price range per share in the offering, the low price in such range being referred to herein as the “Floor.”
Within seven (7) calendar days after the date of the Registration Notice, each Investor may deliver to the Company written notice (the “Sale Notice”) of the percentage of such Investor’s Registrable Securities that such
Investor wishes to sell in the Mandatory Registration, subject to the limitations set forth below. Any Investor that does not timely deliver a Sale Notice shall be deemed to have waived its right to sell Registrable Securities in the Mandatory
Registration. The aggregate number of Registrable Securities that may be included in the Mandatory Registration shall be subject to the following limitations: 
 (i) Subject to Section 2(b)(iii), with respect to each Investor, such Investor may include no more than 40% of such
Investor’s Registrable Securities in the Mandatory Registration; provided, that for each Shaner Investor, such limitation shall be 25%; provided, further, that for each Management Investor, such limitation shall be 10%.

 (ii) If the aggregate number of Registrable Securities to be included in the Mandatory Registration exceeds the product of
0.17, multiplied by the sum of (A) all shares of Common Stock other than Registrable Securities to be registered pursuant to the Registration Statement, plus (B) all shares of Registrable Securities (including Registrable
Securities to be registered pursuant to the Registration Statement) (such product being the “Control Cap”), then the aggregate number of Registrable Securities included in the Mandatory Registration shall be reduced by such excess
pro rata among the respective selling Investors on the basis of the number of Registrable Securities requested to be sold by each such Investor. The Company shall provide written notice to the selling Investors of any such reduction. 
 (iii) If the aggregate number of Registrable Securities to be included in the Registration Statement is less than the Control Cap, then
the Shaner Investors shall have the right, but not the obligation, to increase the percentage of the Shaner Investors’ Registrable Securities to be include in the Mandatory Registration, up to the amount of the available shortfall. 

(iv) If the proposed offering price in the Mandatory Registration is lower than the Floor and the Company has decided to proceed with
the Mandatory Registration, the Company shall provide each selling Investor with written notice (the “Floor Notice”) of the proposed offering price range. Within seven (7) calendar days after the date of the Floor Notice,
notwithstanding any Sale Notice previously delivered by such selling Investor, each such selling Investor may deliver to the Company written notice (the “Withdrawal Notice”) of such selling 

  

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Investor’s desire to withdraw from participation in the Mandatory Registration. Any selling Investor that does not timely deliver a Withdrawal Notice
shall be deemed to have waived its right to withdraw from participation in the Mandatory Registration. Following its receipt of any Withdrawal Notices, the Company shall comply with the provisions of Section 2(b)(iii) if applicable.

 (c) If the managing underwriters of the Mandatory Registration advise the Company in writing that in their opinion the
number of securities requested to be included in such registration exceeds the number which can be sold in an orderly manner in such offering without adversely affecting the marketability of the offering and within a price range acceptable to the
Company, the Company shall include in such registration (i) first, the securities the Company proposes to sell, (ii) second, the Registrable Securities requested to be included in such registration pro rata among the selling Investors on
the basis of the number of Registrable Securities proposed to be sold by each such Investor, and (iii) third, the other securities, if any, requested to be included in such registration not covered by clauses (i) or (ii) of this
Section 2(c) pro rata among the holders of such securities on the basis of the number of shares requested to be registered by such holders or as such holders may otherwise agree in writing. 
 3. Piggyback Registrations. 
 (a) Right to Piggyback. Subject to the terms of this Agreement, at any time and from time to time following 180 days after the effectiveness of the Mandatory Registration, if the Company at any time determines
to file a Registration Statement with respect to any offering of its securities for its own account or for the account of any stockholder who holds its securities (other than (i) a registration on Form S-4 or S-8 or any similar or successor
form to such forms, (ii) a registration of securities solely relating to an offering and sale to employees, directors or consultants of the Company pursuant to any employee stock plan or other employee benefit plan arrangement or (iii) a
registration of non-convertible debt securities) (a “Piggyback Registration”) then, as expeditiously as reasonably possible following such determination, the Company shall give written notice (the “Incidental Registration
Notice”) of its intention to effect such a registration to all Investors, and such notice shall offer the Investors the opportunity to register such number of Registrable Securities as each such Investor may request in writing. Subject to
Sections 3(c) and 3(d), the Company shall include in such Registration Statement all such Registrable Securities which are requested in writing by an Investor (a “Piggyback Participation Notice”) to be included
therein, on the same terms and conditions as the securities otherwise being sold in such registration, such Piggyback Participation Notice to be received within fifteen (15) days after the date of the Incidental Registration Notice. Any
Investor that does not timely deliver a Piggyback Participation Notice shall be deemed to have waived its right to participate in the Piggyback Registration. If an Investor decides not to include all of its Registrable Securities in any Piggyback
Registration, such Investor shall nevertheless continue to have the right to include 

  

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any Registrable Securities in any subsequent Piggyback Registration as may be filed by the Company with respect to offerings of the Company’s
securities, all upon the terms and conditions set forth herein 
 (b) Piggyback Expenses. The Registration Expenses of
the Investors shall be paid by the Company in all Piggyback Registrations. The obligation of the Company to bear, or to pay or reimburse the Investors for, Registration Expenses shall apply irrespective of whether any sales of Registrable Securities
ultimately take place. 
 (c) Priority on Primary Registrations. If a Piggyback Registration is an underwritten primary
registration on behalf of the Company, and the managing underwriters advise the Company in writing that in their opinion the number of securities requested to be included in such registration exceeds the number which can be sold in an orderly manner
in such offering without adversely affecting the marketability of the offering and within a price range acceptable to the Company, the Company shall include in such registration (i) first, the securities the Company proposes to sell,
(ii) second, the Registrable Securities requested to be included in such registration pro rata among the participating Investors on the basis of the number of Registrable Securities owned by each such Investor, and (iii) third, the other
securities, if any, requested to be included in such registration not covered by clauses (i) or (ii) of this Section 3(c) pro rata among the holders of such securities on the basis of the number of shares requested to be
registered by such holders or as such holders may otherwise agree in writing. 
 (d) Priority on Secondary
Registrations. If a Piggyback Registration is an underwritten secondary registration on behalf of holders of the Company’s securities, and the managing underwriters advise the Company in writing that in their opinion the number of
securities requested to be included in such registration exceeds the number which can be sold in an orderly manner in such offering without adversely affecting the marketability of the offering and within a price range acceptable to the holders of a
majority of the Registrable Securities to be included in such registration, the Company shall include in such registration (i) first, the securities the Company proposes to sell, (ii) second, the Registrable Securities requested to be
included in such registration pro rata among the participating Investors on the basis of the number of Registrable Securities owned by each such Investor, and (iii) third, the other securities, if any, requested to be included in such
registration not covered by clauses (i) or (ii) of this Section 3(d) pro rata among the holders of such securities on the basis of the number of shares requested to be registered by such holders or as such holders may otherwise
agree in writing. 
 4. Holdback Agreements. 
 (a) Each holder of Registrable Securities shall not effect, directly or indirectly, any public sale or distribution (including sales
pursuant to Rule 144), short sale, loan, grant of options for the purchase of, or otherwise dispose of, 

  

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equity securities of the Company, or any securities convertible into or exchangeable or exercisable for such securities, during the seven days prior to and
the 180-day period (which period may be extended upon the request of the managing underwriter for an additional period of up to thirty (30) days if the Company issues or proposes to issue an earnings or other public release within fifteen
(15) days of the expiration of the 180-day lock-up period (the “Lock-up Period”)) beginning on the effective date of the Mandatory Registration (if underwritten) or any underwritten Piggyback Registration in which Registrable
Securities are included (except as part of such underwritten registration), unless the underwriters managing the registered public offering otherwise agree. 
 (b) The Company (i) shall not effect, directly or indirectly, any public sale or distribution, short sale, loan, grant of options for
the purchase of (other than Company employee stock options), or otherwise dispose of, its equity securities, or any securities convertible into or exchangeable or exercisable for such securities, during the seven days prior to and during the Lock-up
Period beginning on the effective date of the Mandatory Registration (if underwritten) or any underwritten Piggyback Registration (except as part of such underwritten registration or pursuant to registrations on Form S-8 or any successor form),
unless the underwriters managing the registered public offering otherwise agree, and (ii) shall cause each holder of its Common Stock, or any securities convertible into or exchangeable or exercisable for Common Stock, purchased from the
Company at any time after the date of this Agreement (other than in a registered public offering) to agree not to effect any public sale or distribution of any such securities during such period (except as part of such underwritten registration, if
otherwise permitted), unless the underwriters managing the registered public offering otherwise agree. 
 (c) If the
restrictions of this Section 4 are waived or shortened by the managing underwriter(s) or the Company for any holder of Registrable Securities or any other party bound thereto, such restrictions shall also be waived or shortened for all
holders of Registrable Securities in the same manner on a pro rata basis (calculated including the Registrable Securities held by the party bound by such similar agreement). 
 5. Registration Procedures. Whenever any Registrable Securities are to be registered pursuant to this Agreement, the Company shall use its
commercially reasonable efforts to effect the registration and the sale of such Registrable Securities in accordance with the intended method of disposition thereof, and pursuant thereto the Company shall as expeditiously as possible: 
 (a) prepare and file with the SEC as promptly as practicable a Registration Statement with respect to such Registrable Securities and use
its commercially reasonable efforts to cause such Registration Statement to become effective (provided that before filing a Registration Statement or prospectus or any amendments or supplements thereto, the Company shall furnish to the holders of
the Registrable Securities covered by such Registration Statement, their 

  

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underwriters, if any, and their respective counsel and accountants, within a reasonable time prior to the filing thereof, copies of all such documents
proposed to be filed, and such holders shall have the reasonable opportunity to object to any information pertaining to such holders that is contained therein and the Company will make the corrections reasonably requested by such holders with
respect to such information prior to filing any Registration Statement or prospectus); 
 (b) notify each holder of
Registrable Securities of the effectiveness of each Registration Statement filed hereunder and prepare and file with the SEC such amendments and supplements to such Registration Statement and the prospectus used in connection therewith as may be
necessary to keep such Registration Statement effective for a period of not less than the Lock-up Period and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such Registration Statement
during such period in accordance with the intended methods of disposition by the sellers thereof set forth in such Registration Statement; 
 (c) furnish, without charge, to each seller of Registrable Securities such number of copies of such Registration Statement, each amendment and supplement thereto (in each case including all exhibits and all documents
incorporated therein by reference), the prospectus included in such Registration Statement (including each preliminary prospectus) and such other documents as such seller may reasonably request in order to facilitate the disposition of the
Registrable Securities owned by such seller; 
 (d) use its commercially reasonable efforts to register or qualify such
Registrable Securities and other securities covered by such Registration Statement under such securities laws or blue sky laws of such jurisdictions as any seller reasonably requests, and do any and all other acts and things which may be reasonably
necessary or advisable to enable such seller to consummate the disposition in such jurisdictions of the Registrable Securities owned by such seller (provided that the Company shall not be required to (i) qualify generally to do business in any
jurisdiction where it would not otherwise be required to qualify but for this subparagraph, (ii) subject itself to taxation in any such jurisdiction or (iii) consent to general service of process in any such jurisdiction); 
 (e) notify each seller of such Registrable Securities, at any time when a prospectus relating thereto is required to be delivered under
the Securities Act, of the happening of any event as a result of which the prospectus included in such Registration Statement contains an untrue statement of a material fact or omits any material fact required to be stated therein or necessary to
make the statements therein not misleading, and, at the request of any such seller, the Company shall prepare a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of such Registrable Securities, such
prospectus shall not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading; 
  

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 (f) cause all such Registrable Securities to be listed on each securities exchange on
which similar securities issued by the Company are then listed and, if not so listed, to be listed on the Nasdaq Global Market or other national securities exchange if the securities qualify to be so listed; 
 (g) provide a transfer agent and registrar for all such Registrable Securities not later than the effective date of such Registration
Statement; 
 (h) enter into such customary agreements (including underwriting agreements in customary form) and take all such
other actions as the holders of a majority of the Registrable Securities being sold or the underwriters, if any, reasonably request in order to expedite or facilitate the disposition of such Registrable Securities (including effecting a stock split
or a combination of shares); 
 (i) make available for inspection by any seller of Registrable Securities, any underwriter
participating in any disposition pursuant to such Registration Statement and any attorney, accountant or other agent retained by any such seller or underwriter, all financial and other records, pertinent corporate documents and properties of the
Company, and cause the Company’s officers, directors, employees and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney, accountant or agent in connection with such Registration
Statement; 
 (j) otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the
SEC, and make available to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least twelve months beginning with the first day of the Company’s first full calendar quarter after the
effective date of the Registration Statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder; 
 (k) permit any holder of Registrable Securities, which holder, in its sole and exclusive judgment, might be deemed to be an underwriter or
a controlling person of the Company, to participate in the preparation of such registration or comparable statement and to require the insertion therein of material, furnished to the Company in writing, which in the reasonable judgment of such
holder and its counsel should be included; 
 (l) in the event of the issuance of any stop order suspending the effectiveness
of a Registration Statement, or of any order suspending or preventing the use of any related prospectus or suspending the qualification of any common stock included in such Registration Statement for sale in any jurisdiction, the Company shall use
its commercially reasonable efforts promptly to obtain the withdrawal of such order; 
  

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 (m) notify the sellers of Registrable Securities and the underwriters, if any, as
promptly as practicable: 
 (i) of any request by the SEC for amendments or supplements to the Registration Statement or the
prospectus or for additional information; 
 (ii) of the issuance by the SEC of any stop order suspending the effectiveness of
the Registration Statement or the initiation or threat of any proceedings by any Person for such purpose; and 
 (iii) of the
receipt by the Company of any notification with respect to the suspension of the qualification of any Registrable Securities for sale under the securities or blue sky laws of any jurisdiction or the initiation or threat of any proceeding for such
purpose; 
 (n) furnish for delivery in connection with the closing of any offering of Registrable Securities unlegended
certificates representing ownership of the Registrable Securities being sold in such denominations as shall be requested by the sellers or the underwriters; 
 (o) promptly respond to any and all comments received from the SEC, with a view towards causing each Registration Statement or any
amendment thereto to be declared effective by the Commission as soon as practicable and shall file an acceleration request, if necessary, as soon as practicable following the resolution or clearance of all SEC comments or, if applicable, following
notification by the SEC that any such Registration Statement or any amendment thereto shall not be subject to review; 
 (p)
use its commercially reasonable efforts to cause such Registrable Securities covered by such Registration Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to enable the sellers
thereof to consummate the disposition of such Registrable Securities; and 
 (q) obtain a cold comfort letter from the
Company’s independent public accountants in customary form and covering such matters of the type customarily covered by cold comfort letters as the holders of a majority of the Registrable Securities being sold reasonably request (provided that
such Registrable Securities constitute at least 10% of the securities covered by such Registration Statement). 
 6. Investor
Obligations. 
 (a) It shall be a condition precedent to the obligations of the Company to complete the registration
pursuant to this Agreement with respect to the Registrable Securities of a particular Investor that such Investor shall furnish to the Company such information regarding itself, the Registrable Securities held by 

  

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it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required to effect the registration of such
Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably request. At least ten (10) days prior to the first anticipated filing date of the Registration Statement, the Company
shall notify each Investor of the information the Company requires from each such Investor. 
 (b) Each Investor, by such
Investor’s execution of this Agreement, agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of the Registration Statements hereunder, unless such Investor has notified the
Company in writing of such Investor’s election to exclude all of such Investor’s Registrable Securities from the Registration Statements. 
 (c) If the services of an underwriter are engaged, each Investor agrees to enter into and perform such Investor’s obligations under an underwriting agreement, in usual and customary form, including, without
limitation, customary indemnification and contribution obligations, with the managing underwriter of such offering and take such other actions as are reasonably required in order to expedite or facilitate the disposition of the Registrable
Securities, unless such Investor has notified the Company in writing of such Investor’s election to exclude all of such Investor’s Registrable Securities from such Registration Statement. 
 (d) Each Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in
Section 6(e) or 6(l), such Investor will immediately discontinue disposition of Registrable Securities pursuant to the Registration Statement covering such Registrable Securities until such Investor’s receipt of the copies of
the supplemented or amended prospectus contemplated by Section 6(e) or 6(l) and, if so directed by the Company, such Investor shall deliver to the Company or destroy all copies in such Investor’s possession, of the prospectus
covering such Registrable Securities current at the time of receipt of such notice. 
 (e) No Investor may participate in any
underwritten registration hereunder unless such Investor (i) agrees to sell such Investor’s Registrable Securities on the basis provided in any underwriting arrangements in usual and customary form entered into by the Company,
(ii) completes and executes all questionnaires, powers of attorney, indemnities, customary lockup arrangements, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements, and
(iii) agrees to pay its pro rata share of all underwriting discounts and commissions and any expenses in excess of those payable by the Company pursuant to Section 7 below. 
 (f) The Investors shall comply with all applicable laws related to a Registration Statement and offering and sale of securities and all
applicable rules and regulations of governmental authorities in connection therewith (including without limitation the Securities Act and the Exchange Act (as defined below) and the rules and regulations promulgated by the SEC). 
  

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 7. Registration Expenses. 
 (a) All reasonable expenses incident to the Company’s performance of or compliance with this Agreement, including without limitation,
in each case to the extent reasonable, all registration and filing fees, all fees and expenses of compliance with securities or blue sky laws, transfer agent’s and registrar’s fees, all word processing, duplicating and printing expenses,
all messenger, delivery, mailing and distribution expenses, any transfer taxes, the fees and disbursements of custodians, the fees and disbursements of counsel for the Company and all independent certified public accountants, underwriters (excluding
discounts and commissions) and other Persons retained by the Company including the expenses of any special audits or “cold comfort” letters required by or incident to such performance and compliance (all such expenses being herein called
“Registration Expenses”), shall be borne as provided in this Agreement, except that the Company shall, in any event, pay its internal expenses (including, without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expense of any annual audit or quarterly review, the expense of any liability insurance and the expenses and fees for listing the securities to be registered on each securities exchange on which similar
securities issued by the Company are then listed. 
 (b) In connection with the Mandatory Registration and each Piggyback
Registration, the Company shall reimburse the holders of Registrable Securities included in such registration for the reasonable fees and disbursements of one counsel chosen by the holders of a majority of the Registrable Securities included in such
registration and for the reasonable fees and disbursements of each additional counsel retained by any holder of Registrable Securities for the purpose of rendering a legal opinion on behalf of such holder in connection with the Mandatory
Registration or any underwritten Piggyback Registration. 
 (c) To the extent Registration Expenses are not required to be
paid by the Company, each holder of securities included in any registration hereunder shall pay those Registration Expenses allocable to the registration of such holder’s securities so included, and any Registration Expenses not so allocable
shall be borne by all sellers of securities included in such registration in proportion to the aggregate selling price of the securities to be so registered. 
 8. Indemnification. 
 (a) In connection with any Registration Statement in
which a holder of Registrable Securities is participating, the Company agrees to indemnify and hold harmless, to the fullest extent permitted by law, each holder of Registrable Securities and its directors, officers, stockholders, employees,
members, partners, Affiliates, agents and representatives, each Person who controls each such holder 

  

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of Registrable Securities (within the meaning of the Securities Act), and the directors, officers, stockholders, employees, members, partners, Affiliates,
agents and representatives of each such controlling Person, from and against any and all losses, claims, damages, liabilities, costs, expenses (including attorney fees), actions and proceedings (whether commenced or threatened)
(“Losses”) caused by, arising out of, based upon, resulting from, or in connection with, any untrue or alleged untrue statement of material fact contained in any Registration Statement, prospectus, free writing prospectus or
preliminary prospectus or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading (whether in the light of the
circumstances under which made or otherwise), except insofar as the same are caused by or contained in any information furnished in writing to the Company by such holder expressly for use therein or by such holder’s failure to deliver a copy of
the Registration Statement or prospectus or any amendments or supplements thereto after the Company has furnished such holder with a sufficient number of copies of the same. In connection with an underwritten offering, the Company shall indemnify
such underwriters, their directors, officers, stockholders, employees, members, partners, Affiliates, agents and representatives, each Person who controls each such underwriter (within the meaning of the Securities Act), and the directors, officers,
stockholders, employees, members, partners, Affiliates, agents and representatives of each such controlling Person, to the same extent as provided above with respect to the indemnification of the holders of Registrable Securities. The Company shall
promptly reimburse each such holder of Registrable Securities, and any such underwriter, for any out-of-pocket legal or any other expenses actually and reasonably incurred by it in connection with investigating or defending such Losses. 

(b) In connection with any Registration Statement in which a holder of Registrable Securities is participating, each such holder shall
furnish to the Company in writing such information and affidavits as the Company reasonably requests for use in connection with any such Registration Statement or prospectus and, to the fullest extent permitted by law, shall indemnify and hold
harmless the Company, and its directors, officers, stockholders, employees, agents and representatives, each Person who controls the Company (within the meaning of the Securities Act), and the directors, officers, stockholders, employees, agents and
representatives of each such controlling Person, from and against any and all Losses caused by, arising out of, based upon, resulting from, or in connection with any untrue statement of material fact contained in the Registration Statement,
prospectus, free writing prospectus or preliminary prospectus or any amendment thereof or supplement thereto or any omission of a material fact required to be stated therein or necessary to make the statements therein not misleading (whether in the
light of the circumstances under which made or otherwise), but only to the extent that such untrue statement or omission is contained in any information or affidavit so furnished in writing by such holder; provided that the obligation to indemnify
shall be individual, not joint and several, for each holder and shall be limited to the net amount of proceeds received by such holder from the sale of 

  

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Registrable Securities pursuant to such Registration Statement. The holders of Registrable Securities shall reimburse the Company for any out-of-pocket legal
or any other expenses actually and reasonably incurred by it in connection with investigating or defending such Losses. 
 (c)
Any Person entitled to indemnification pursuant to this Section 8 shall (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification (provided that the failure to give prompt
notice shall not impair any Person’s right to indemnification hereunder to the extent such failure has not prejudiced the indemnifying party) and (ii) unless in such indemnified party’s reasonable judgment a conflict of interest
between such indemnified and indemnifying parties may exist with respect to such claim, permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such defense is assumed, the
indemnifying party shall not be subject to any liability for any settlement made by the indemnified party without its consent (but such consent shall not be unreasonably withheld or delayed). An indemnifying party who is not entitled to, or elects
not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any
indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim. 
 (d) The indemnification provided for under this Section 8 shall remain operative and in full force and effect regardless of any investigation made or omitted by or on behalf of the indemnified party or any
officer, director or controlling Person of such indemnified party and shall survive the transfer of securities held by any such party. The Company also agrees to make such provisions, as are reasonably requested by any indemnified party, for
contribution to such party in the event the Company’s indemnification is unavailable for any reason. Such provisions shall provide that the liability amongst the various Persons shall be allocated in such proportion as is appropriate to reflect
the relative fault of the such Persons in connection with the statements or omissions which resulted in Losses (the relative fault being determined by reference to, among other things, which Person supplied the information giving rise to untrue
statement or omission and each Person’s relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission) and, only if such allocation is not respected at law, would other equitable
considerations, such as the relative benefit received by each Person from the sale of the securities, be taken into consideration. 
 9.
Miscellaneous. 
 (a) No Inconsistent Agreements. The Company shall not hereafter enter into any
agreement with respect to its securities which is inconsistent with or violates the rights granted to the holders of Registrable Securities in this Agreement, or otherwise conflicts with the provisions hereof. 
  

 13 

 (b) Adjustments Affecting Registrable Securities. The Company shall not take any
action, or permit any change to occur, with respect to its securities which would adversely affect the ability of the holders of Registrable Securities to include such Registrable Securities in a registration undertaken pursuant to this Agreement or
which would adversely affect the marketability of such Registrable Securities in any such registration (including, without limitation, effecting a stock split or a combination of shares). 
 (c) Remedies. The Company and the Investors shall be entitled to enforce their rights under this Agreement specifically, to recover
damages by reason of any breach of any provision of this Agreement and to exercise all other rights existing in their favor. The parties hereto agree and acknowledge that a breach of this Agreement would cause irreparable harm and money damages
would not be an adequate remedy for any such breach and that, in addition to other rights and remedies hereunder, the Company and any Investor shall be entitled to specific performance and/or injunctive or other equitable relief (without posting a
bond or other security) from any court of law or equity of competent jurisdiction in order to enforce or prevent any violation of the provisions of this Agreement. 
 (d) Amendments and Waivers. Except as otherwise provided herein, no modification, amendment or waiver of any provision of this
Agreement shall be effective against the Company or the Investors unless such modification, amendment or waiver is approved in writing by the Company and the holders of a majority of the Registrable Securities. The failure of any party to enforce
any of the provisions of this Agreement shall in no way be construed as a waiver of such provisions and shall not affect the right of such party thereafter to enforce each and every provision of this Agreement in accordance with its terms.

 (e) Successors and Assigns. Except as otherwise provided herein, this Agreement shall bind and inure to the benefit
of and be enforceable by the Company and its successors and assigns, the Investors and the respective successors and assigns of each of them. In addition, whether or not any express assignment has been made, the provisions of this Agreement which
are for the benefit of purchasers or holders of Registrable Securities are also for the benefit of, and enforceable by, any subsequent holder of Registrable Securities. 
 (f) Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and
valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect
the validity, legality or enforceability of any other provision of this Agreement in such jurisdiction or affect the validity, legality or enforceability of any provision 

  

 14 

 
in any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable
provision had never been contained herein. 
 (g) Entire Agreement. Except as otherwise expressly set forth herein,
this Agreement embodies the complete agreement and understanding among the parties hereto with respect to the subject matter hereof and supersedes and preempts 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. 
 (h) Counterparts. This Agreement may be
executed in multiple counterparts (including by facsimile or portable document format (.pdf)), each of which shall be an original and all of which taken together shall constitute one and the same agreement. 
 (i) Interpretation. 
 (i) The descriptive headings of this Agreement are inserted for convenience only and do not constitute a part of this Agreement. 
 (ii) All definitions of terms apply equally to both the singular and plural forms of the terms defined. 
 (iii) The words “include,” “includes” and “including” are deemed to be followed by the phrase “without
limitation.” The words “herein,” “hereof,” “hereto” and “hereunder” and words of similar import refer to this Agreement in its entirety and are not limited to any part hereof unless the context shall
otherwise require. The word “or” is not exclusive and means “and/or.” 
 (iv) Unless otherwise specified,
all references in this Agreement to Sections are references to Sections of this Agreement. 
 (j) Governing Law. The
law of the State of Delaware, other than the law of conflicts, shall govern all issues concerning the relative rights of the Company and its stockholders and all other questions concerning the construction, validity and interpretation of this
Agreement. 
 (k) Consent to Jurisdiction. EACH OF THE PARTIES IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF
THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE, FOR THE PURPOSES OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT, ANY RELATED AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY. EACH OF THE PARTIES
HERETO FURTHER AGREES THAT SERVICE OF ANY PROCESS, SUMMONS, NOTICE OR DOCUMENT BY U.S. REGISTERED MAIL TO SUCH PARTY’S RESPECTIVE ADDRESS SET 

  

 15 

 
FORTH BELOW SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY ACTION, SUIT OR PROCEEDING WITH RESPECT TO ANY MATTERS TO WHICH IT HAS SUBMITTED TO JURISDICTION IN
THIS SECTION 9. EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY OBJECTION TO THE LAYING OF VENUE OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF THIS AGREEMENT, ANY RELATED DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY AND
THEREBY IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE, AND HEREBY AND THEREBY FURTHER IRREVOCABLY AND UNCONDITIONALLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION, SUIT OR PROCEEDING BROUGHT IN
ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. 
 (l) WAIVER OF JURY TRIAL. AS A SPECIFICALLY BARGAINED FOR
INDUCEMENT FOR EACH OF THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT (AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL), EACH PARTY HERETO EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING RELATING TO OR ARISING IN ANY
WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY. 
 (m) Notices. Any notice provided for in this Agreement
shall be in writing and shall be delivered personally, via telecopier, mailed first class mail (postage prepaid, return receipt requested), or sent by reputable overnight courier service (charges prepaid) to (i) the Company at its address set
forth below, (ii) the Investors at their respective addresses indicated on the signature pages attached hereto, and (iii) to any subsequent party subject to this Agreement at such address as indicated by the Company’s records, or at
such address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party. Notices shall be deemed to have been given hereunder when delivered personally or via telecopier, three days
after deposit in the U.S. mail and one day after deposit with a reputable overnight courier service. 
 If to the Company: 
 Rex Energy Corporation 
 1975 Waddle Road

 State College, Pennsylvania 16803 
 Attention: Christopher K. Hulburt 
 Fax.: (814) 278-7286 
  

 16 

 with a copy to: 
 Fulbright & Jaworski L.L.P. 
 Fulbright Tower 
 1301 McKinney, Suite 5100 
 Houston, Texas
77010 
 Attention: Charles L. Strauss 
 Fax: (713) 651-5246 
 [Remainder of Page Intentionally Left Blank] 
  

 17 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first
written above. 
  

			
	REX ENERGY CORPORATION
		
	By:	 	  

		 	Benjamin W. Hulburt
		 	Chief Executive Officer

 [Company Signature Page to Registration Rights Agreement] 

									
	Corporation or Trust:	 		 		 	Address:
				
	  
	 		 		 	  

	(name of entity)	 		 		 	  

		 		 		 	  

					
	By:	 	  
	 		 		 	  

	Print Name:	 	  
	 		 		 	Taxpayer I.D. No.
	Title:	 	  
	 		 		 	
		 		 		 		 	  

		 		 		 		 	(fax#)
				
	Partnership:	 		 		 	Address:
				
	  
	 		 		 	  

	(name of partnership)	 		 		 	  

		 		 		 	  

					
	By:	 	  
	 		 		 	  

		 	(name of general partner)	 		 		 	Taxpayer I.D. No.
					
		 		 		 		 	  

	By:	 	  
	 		 		 	(fax#)
	Print Name:	 	  
	 		 		 	
	Title:	 	  
	 		 		 	
				
	Individual(s):	 		 		 	Address:
	 (indicate style of ownership if more than one
 (1) individual (e.g. JTWROS)
	 		 		 	  

		 		 		 	  

		 		 		 	  

				
	  
	 		 		 	  

	Print Name:	 	  
	 		 		 	Social Security No.
					
		 		 		 		 	  

		 		 		 	(fax#)
				
	  
	 		 		 	  

	Print Name:	 	  
	 		 		 	Social Security No.
	Style of Ownership:	 	  
	 		 		 	
					
		 		 		 		 	  

		 		 		 		 	(fax #)

 [Investor Signature Page to Registration Rights Agreement]Form of Rex Energy Corporation 2007 Long-Term Incentive Plan

 Exhibit 10.1 
 

 
  
  
 REX ENERGY CORPORATION 
 2007 LONG-TERM INCENTIVE PLAN 
  

					
	 ARTICLE I
	  	ESTABLISHMENT, PURPOSE AND DURATION	  	1
	 1.1  
	  	Establishment	  	1
	 1.2  
	  	Purpose of the Plan	  	1
	 1.3  
	  	Duration of Plan	  	1
			
	 ARTICLE II
	  	DEFINITIONS	  	1
			
	 2.1  
	  	“Affiliate”	  	1
	 2.2  
	  	“Annual Incentive Award”	  	1
	 2.3  
	  	“Award”	  	1
	 2.4  
	  	“Award Agreement”	  	1
	 2.5  
	  	“Beneficial Owner” or “Beneficial Ownership”	  	2
	 2.6  
	  	“Board”	  	2
	 2.7  
	  	“Cash-Based Award”	  	2
	 2.8  
	  	“Change in Control of the Company”	  	2
	 2.9  
	  	“Code”	  	3
	 2.10
	  	“Committee”	  	3
	 2.11
	  	“Company”	  	3
	 2.12
	  	“Corporate Change”	  	3
	 2.13
	  	“Covered Employee”	  	3
	 2.14
	  	“Director”	  	3
	 2.15
	  	“Director Award”	  	3
	 2.16
	  	“Disability”	  	3
	 2.17
	  	“Dividend Equivalent”	  	3
	 2.18
	  	“Employee”	  	3
	 2.19
	  	“Fair Market Value”	  	3
	 2.20
	  	“Fiscal Year”	  	3
	 2.21
	  	“Freestanding SAR”	  	3
	 2.22
	  	“Full Value Award”	  	4
	 2.23
	  	“Holder”	  	4
	 2.24
	  	“Incentive Stock Option” or “ISO”	  	4
	 2.25
	  	“Insider”	  	4
	 2.26
	  	“Minimum Statutory Tax Withholding Obligation”	  	4
	 2.27
	  	“Nonqualified Stock Option” or “NQSO”	  	4
	 2.28
	  	“Option”	  	4
	 2.29
	  	“Option Price”	  	4
	 2.30
	  	“Other Stock-Based Award”	  	4
	 2.31
	  	“Participant”	  	4
	 2.32
	  	“Performance-Based Compensation”	  	4
	 2.33
	  	“Performance Goals”	  	4
	 2.34
	  	“Performance Stock Award”	  	4
	 2.35
	  	“Performance Unit Award”	  	4
	 2.36
	  	“Period of Restriction”	  	4
	 2.37
	  	“Plan”	  	4
	 2.38
	  	“Restricted Stock”	  	5
	 2.39
	  	“Restricted Stock Award”	  	5
	 2.40
	  	“RSU”	  	5
	 2.41
	  	“RSU Award”	  	5
	 2.42
	  	“SAR”	  	5
	 2.43
	  	“Section 409A”	  	5
	 2.44
	  	“Stock”	  	5
	 2.45
	  	“Substantial Risk of Forfeiture”	  	5

  

 i 

					
	 2.46
	  	“Tandem SAR”	  	5
	 2.47
	  	“Ten Percent Stockholder”	  	5
	 2.48
	  	“Termination of Employment”	  	5
	 2.49
	  	“Third Party Service Provider”	  	5
			
	 ARTICLE III
	  	ELIGIBILITY	  	5
			
	 ARTICLE IV
	  	GENERAL PROVISIONS RELATING TO AWARDS	  	6
			
	 4.1  
	  	Authority to Grant Awards	  	6
	 4.2  
	  	Dedicated Shares; Maximum Awards	  	6
	 4.3  
	  	Non-Transferability	  	7
	 4.4  
	  	Requirements of Law	  	7
	 4.5  
	  	Changes in the Company’s Capital Structure	  	7
	 4.6  
	  	Election Under Section 83(b) of the Code	  	10
	 4.7  
	  	Forfeiture for Cause	  	10
	 4.8  
	  	Forfeiture Events	  	10
	 4.9  
	  	Award Agreements	  	10
	 4.10
	  	Amendments of Award Agreements	  	10
	 4.11
	  	Rights as Stockholder	  	11
	 4.12
	  	Issuance of Shares of Stock	  	11
	 4.13
	  	Restrictions on Stock Received	  	11
	 4.14
	  	Compliance With Section 409A	  	11
			
	 ARTICLE V
	  	OPTIONS	  	11
			
	 5.1  
	  	Authority to Grant Options	  	11
	 5.2  
	  	Option Agreement	  	11
	 5.3  
	  	Option Price	  	11
	 5.4  
	  	Duration of Option	  	11
	 5.5  
	  	Amount Exercisable	  	11
	 5.6  
	  	Exercise of Option	  	11
	 5.7  
	  	Transferability–Incentive Stock Options	  	12
	 5.8  
	  	Notification of Disqualifying Disposition	  	12
	 5.9  
	  	$100,000 Limitation on ISOs	  	12
			
	 ARTICLE VI
	  	STOCK APPRECIATION RIGHTS	  	12
			
	 6.1  
	  	Authority to Grant SAR Awards	  	12
	 6.2  
	  	General Terms	  	13
	 6.3  
	  	SAR Agreement	  	13
	 6.4  
	  	Term of SAR	  	13
	 6.5  
	  	Exercise of SAR	  	13
	 6.6  
	  	Payment of SAR Amount	  	13
	 6.7  
	  	Termination of Employment	  	13
			
	 ARTICLE VII
	  	RESTRICTED STOCK AWARDS	  	13
			
	 7.1  
	  	Restricted Stock Awards	  	13
	 7.2  
	  	Restricted Stock Award Agreement	  	14
	 7.3  
	  	Holder’s Rights as Stockholder	  	14
			
	 ARTICLE VIII
	  	RESTRICTED STOCK UNIT AWARDS	  	14
			
	 8.1  
	  	Authority to Grant RSU Awards	  	14

  

 ii 

					
	 8.2  
	  	RSU Award	  	14
	 8.3  
	  	RSU Award Agreement	  	14
	 8.4  
	  	Form of Payment Under RSU Award	  	14
	 8.5  
	  	Time of Payment Under RSU Award	  	14
			
	 ARTICLE IX
	  	PERFORMANCE STOCK AWARDS AND PERFORMANCE UNIT AWARDS	  	15
			
	 9.1  
	  	Authority to Grant Performance Stock Awards and Performance Unit Awards	  	15
	 9.2  
	  	Performance Goals	  	15
	 9.3  
	  	Time of Establishment of Performance Goals	  	15
	 9.4  
	  	Written Agreement	  	15
	 9.5  
	  	Form of Payment Under Performance Unit Award	  	16
	 9.6  
	  	Time of Payment Under Performance Unit Award	  	16
	 9.7  
	  	Holder’s Rights as Stockholder With Respect to a Performance Stock Award	  	16
	 9.8  
	  	Increases Prohibited	  	16
	 9.9  
	  	Stockholder Approval	  	16
			
	 ARTICLE X
	  	DIRECTOR AWARDS	  	16
			
	 ARTICLE XI
	  	DIVIDEND EQUIVALENTS	  	16
			
	 ARTICLE XII
	  	ANNUAL INCENTIVE AWARDS	  	16
			
	 12.1
	  	Authority to Grant Annual Incentive Awards	  	16
	 12.2
	  	Performance Goals	  	17
	 12.3
	  	Time of Establishment of Performance Goals	  	17
	 12.4
	  	Written Agreement	  	17
	 12.5
	  	Form of Payment Under Annual Incentive Award	  	17
	 12.6
	  	Time of Payment Under Annual Incentive Award	  	17
	 12.7
	  	Increases Prohibited	  	17
	 12.8
	  	Stockholder Approval	  	17
			
	 ARTICLE XIII
	  	OTHER STOCK-BASED AWARDS	  	18
			
	 13.1
	  	Authority to Grant Other Stock-Based Awards	  	18
	 13.2
	  	Value of Other Stock-Based Award	  	18
	 13.3
	  	Payment of Other Stock-Based Award	  	18
	 13.4
	  	Termination of Employment	  	18
			
	 ARTICLE XIV
	  	CASH-BASED AWARDS	  	18
			
	 14.1
	  	Authority to Grant Cash-Based Awards	  	18
	 14.2
	  	Value of Cash-Based Award	  	18
	 14.3
	  	Payment of Cash-Based Award	  	18
	 14.4
	  	Termination of Employment	  	18
			
	 ARTICLE XV
	  	SUBSTITUTION AWARDS	  	18
			
	 ARTICLE XVI
	  	CHANGE IN CONTROL OF THE COMPANY	  	19
			
	 16.1
	  	Change in Control of the Company	  	19
			
	 ARTICLE XVII
	  	ADMINISTRATION	  	20
			
	 17.1
	  	Awards	  	20
	 17.2
	  	Authority of the Committee	  	20

  

 iii 

					
	 17.3  
	  	Decisions Binding	  	21
	 17.4  
	  	No Liability	  	21
			
	 ARTICLE XVIII
	  	AMENDMENT OR TERMINATION OF PLAN	  	21
			
	 18.1  
	  	Amendment, Modification, Suspension, and Termination	  	21
	 18.2  
	  	Awards Previously Granted	  	21
			
	 ARTICLE XIX
	  	MISCELLANEOUS	  	22
			
	 19.1  
	  	Unfunded Plan/No Establishment of a Trust Fund	  	22
	 19.2  
	  	No Employment Obligation	  	22
	 19.3  
	  	Tax Withholding	  	22
	 19.4  
	  	Gender and Number	  	23
	 19.5  
	  	Severability	  	23
	 19.6  
	  	Headings	  	23
	 19.7  
	  	Other Compensation Plans	  	23
	 19.8  
	  	Retirement and Welfare Plans	  	23
	 19.9  
	  	Other Awards	  	23
	 19.10
	  	Successors	  	23
	 19.11
	  	Law Limitations/Governmental Approvals	  	23
	 19.12
	  	Delivery of Title	  	23
	 19.13
	  	Inability to Obtain Authority	  	23
	 19.14
	  	Investment Representations	  	24
	 19.15
	  	Persons Residing Outside of the United States	  	24
	 19.16
	  	Arbitration of Disputes	  	24
	 19.17
	  	Governing Law	  	24

  

 iv 

 ARTICLE I 
 ESTABLISHMENT, PURPOSE AND DURATION 
 1.1 Establishment. The Company hereby establishes an
incentive compensation plan, to be known as the “Rex Energy Corporation 2007 Long-Term Incentive Plan,” as set forth in this document. The Plan permits the grant of Incentive Stock Options, Nonqualified Stock Options, SARs,
Restricted Stock, RSUs, Performance Stock Awards, Performance Unit Awards, Annual Incentive Awards, Dividend Equivalents, Cash-Based Awards and Other Stock-Based Awards. Subject to approval by the Company’s shareholders, the Plan will become
effective as of the completion of the Company’s initial public offering as reflected on the Company’s first effective registration statement filed under the Securities Act of 1933, as amended (the “Effective Date”).

 1.2 Purpose of the Plan. The Plan is intended to advance the best interests of the Company, its Affiliates and its stockholders by
providing those persons who have substantial responsibility for the management and growth of the Company and its Affiliates with additional performance incentives and an opportunity to obtain or increase their proprietary interest in the Company,
thereby encouraging them to continue in their employment or affiliation with the Company or its Affiliates. 
 1.3 Duration of Plan.
Unless sooner terminated as provided herein, the Plan shall terminate ten years from the Effective Date. After the Plan is terminated, no Awards may be granted but Awards previously granted shall remain outstanding in accordance with their
applicable terms and conditions and the Plan’s terms and conditions. Notwithstanding the foregoing, no Incentive Stock Options may be granted more than ten years after the earlier of (a) adoption of the Plan by the Board, and (b) the
Effective Date. 
 ARTICLE II 
 DEFINITIONS 
 The words and phrases defined in this Article shall have the meaning set out below throughout the Plan,
unless the context in which any such word or phrase appears reasonably requires a broader, narrower or different meaning. 
 2.1
“Affiliate” means any corporation, partnership, limited liability company or association, trust or other entity or organization which, directly or indirectly, controls, is controlled by, or is under common control with, the
Company. For purposes of the preceding sentence, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any entity or organization, shall
mean the possession, directly or indirectly, of the power (a) to vote more than fifty percent (50%) of the securities having ordinary voting power for the election of directors of the controlled entity or organization, or (ii) to
direct or cause the direction of the management and policies of the controlled entity or organization, whether through the ownership of voting securities or by contract or otherwise. 
 2.2 “Annual Incentive Award” means an Award granted to a Holder pursuant to Article X. 
 2.3 “Award” means, individually or collectively, a grant under the Plan of Incentive Stock Options, Nonqualified Stock Options,
SARs, Restricted Stock, RSUs, Performance Stock Awards, Performance Unit Awards, Annual Incentive Awards, Other Stock-Based Awards, Dividend Equivalents and Cash-Based Awards, in each case subject to the terms and provisions of the Plan. 

2.4 “Award Agreement” means an agreement that sets forth the terms and conditions applicable to an Award granted under the
Plan. 
  

 1 

 2.5 “Beneficial Owner” or “Beneficial Ownership” shall
have the meaning ascribed to such term in Rule 13d-3 of the General Rules and Regulations under the Exchange Act. 
 2.6
“Board” means the board of directors of the Company. 
 2.7 “Cash-Based Award” means an Award
granted pursuant to Article XIV. 
 2.8 “Change in Control of the Company” means the occurrence of any of the
following the Effective Date: 
 (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 from time to time, (the “Exchange Act”) (a “Covered Person”) of beneficial ownership (within the meaning of rule
13d-3 promulgated under the Exchange Act) of 30% or more of either (i) the then outstanding shares of the common stock of the Company (the “Outstanding Company Common Stock”), or (ii) the combined voting power of
the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this
subsection (a) of this Section 2.8, the following acquisitions shall not constitute a Change in Control of the Company: (1) any acquisition directly from the Company, (2) any acquisition by the Company, (3) any acquisition
by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company, or (4) any acquisition by any corporation pursuant to a transaction which complies with clauses (1), (2) and
(3) of subsection (c) of this Section 2.8; or 
 (b) Individuals who, as of the Effective Date, 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 Effective Date whose election, or
nomination for election by the Company’s shareholders, was approved by a vote of at least two-thirds of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, 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 Covered Person other than the Board; or 
 (c) Consummation of (xx) a
reorganization, merger or consolidation or sale of the Company or any subsidiary of the Company, or (yy) a disposition of all or substantially all of the assets of the Company (a “Business Combination”), in each case,
unless, following such Business Combination, (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 Business Combination beneficially own, direct or indirectly, more than 50% 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 Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially
all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Common Stock and Outstanding
Company Voting Securities, as the case may be, (2) no Covered Person (excluding any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly,
30% or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation, except to the extent
that such ownership existed prior to the Business Combination, and (3) at least a majority of the members of the 

  

 2 

 
board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the
initial agreement, or of the action of the Board of Directors, providing for such Business Combination. 
 2.9 “Code”
means the United States Internal Revenue Code of 1986, as amended from time to time. 
 2.10 “Committee” means the
Compensation Committee of the Board. 
 2.11 “Company” means Rex Energy Corporation, a Delaware corporation, or any
successor (by reincorporation, merger or otherwise). 
 2.12 “Corporate Change” shall have the meaning ascribed to
that term in Section 4.5(c). 
 2.13 “Covered Employee” means an Employee who is a “covered employee,”
as defined in section 162(m) of the Code and the regulations promulgated under section 162(m) of the Code, or any successor statute. 
 2.14 “Director” means a director of the Company or an Affiliate who is not an Employee. 
 2.15
“Director Award” means any NQSO, SAR, or Full Value Award granted to a Director pursuant to such applicable terms, conditions, and limitations as the Board or Committee may establish in accordance with this Plan. 

2.16 “Disability” means as determined by the Committee in its discretion exercised in good faith, a physical or mental
condition of the Holder that would entitle him to payment of disability income payments under the Company’s long-term disability insurance policy or plan for Employees as then in effect; or in the event that the Holder is not covered, for
whatever reason, under the Company’s long-term disability insurance policy or plan for Employees or in the event the Company does not maintain such a long-term disability insurance policy, “Disability” means a permanent and total
disability as defined in section 22(e)(3) of the Code. A determination of Disability may be made by a physician selected or approved by the Committee and, in this respect, the Holder shall submit to an examination by such physician upon request
by the Committee. 
 2.17 “Dividend Equivalent” means a payment equivalent in amount to dividends paid to the
Company’s stockholders. 
 2.18 “Employee” means a person employed by the Company or any Affiliate (including,
without limitation, a parent or subsidiary of the Company) as a common law employee. 
 2.19 “Fair Market Value” of
the Stock as of any particular date means (1) if the Stock is traded on a stock exchange, the closing sale price of the Stock on that date as reported on the principal securities exchange on which the Stock is traded, or (2) if the Stock
is traded in the over-the-counter market, the average between the high bid and low asked price on that date as reported in such over-the-counter market; provided that (a) if the Stock is not so traded, (b) if no closing price or bid and
asked prices for the stock was so reported on that date or (c) if, in the discretion of the Committee, another means of determining the fair market value of a share of Stock at such date shall be necessary or advisable, the Committee may
provide for another means for determining such fair market value. 
 2.20 “Fiscal Year” means the calendar year.

 2.21 “Freestanding SAR” means an SAR that is granted independently of any Options, as described in
Article VI. 
  

 3 

 2.22 “Full Value Award” means an Award other than in the form of an ISO,
NQSO, or SAR, and which is settled by the issuance of shares of stock. 
 2.23 “Holder” means a person who has been
granted an Award or any person who is entitled to receive shares of Stock or cash under an Award. 
 2.24 “Incentive Stock
Option” or “ISO” means an option to purchase Stock granted pursuant to Article V that is designated as an Incentive Stock Option and that is intended to satisfy the requirements of section 422 of the
Code. 
 2.25 “Insider” shall mean an individual who is, on the relevant date, an officer, a Director, or more than
ten percent (10%) Beneficial Owner of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act, as determined by the Board in accordance with Section 16 of the Exchange Act.

 2.26 “Minimum Statutory Tax Withholding Obligation” means, with respect to an Award, the amount the Company or an
Affiliate is required to withhold for federal, state and local taxes based upon the applicable minimum statutory withholding rates required by the relevant tax authorities. 
 2.27 “Nonqualified Stock Option” or “NQSO” means a “nonqualified stock option” to purchase
Stock granted pursuant to Article V that does not satisfy the requirements of section 422 of the Code. 
 2.28
“Option” means an Incentive Stock Option or a Nonqualified Stock Option. 
 2.29 “Option
Price” shall have the meaning ascribed to that term in Section 5.3. 
 2.30 “Other Stock-Based
Award” means an equity-based or equity-related Award not otherwise described by the terms and provisions of the Plan that is granted pursuant to Article XIII. 
 2.31 “Participant” means any eligible person as set forth in Article III to whom an Award is granted. 
 2.32 “Performance-Based Compensation” means compensation under an Award that satisfies the requirements of section 162(m) of
the Code for deductibility of remuneration paid to Covered Employees. 
 2.33 “Performance Goals” means one or more
of the criteria described in Section 9.2 on which the performance goals applicable to an Award are based. 
 2.34
“Performance Stock Award” means an Award designated as a performance stock award granted to a Holder pursuant to Article IX. 
 2.35 “Performance Unit Award” means an Award designated as a performance unit award granted to a Holder pursuant to Article IX. 
 2.36 “Period of Restriction” means the period during which Restricted Stock is subject to a substantial risk of forfeiture (based
on the passage of time, the achievement of performance goals, or upon the occurrence of other events as determined by the Committee, in its discretion), as provided in Article VII. 
 2.37 “Plan” means the Rex Energy Corporation 2007 Long-Term Incentive Plan, as set forth in this document as it may be amended
from time to time. 
  

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 2.38 “Restricted Stock” means shares of restricted Stock issued or granted under
the Plan pursuant to Article VII. 
 2.39 “Restricted Stock Award” means an authorization by the Committee to
issue or transfer Restricted Stock to a Holder. 
 2.40 “RSU” means a restricted stock unit credited to a
Holder’s ledger account maintained by the Company pursuant to Article VIII. 
 2.41 “RSU Award” means an
Award granted pursuant to Article VIII. 
 2.42 “SAR” means a stock appreciation right granted under the Plan
pursuant to Article VI. 
 2.43 “Section 409A” means section 409A of the Code and Department of
Treasury rules and regulations issued thereunder. 
 2.44 “Stock” means the common stock of the Company, $0.001 par
value per share (or such other par value as may be designated by act of the Company’s stockholders). 
 2.45 “Substantial
Risk of Forfeiture” shall have the meaning ascribed to that term in section 409A of the Code and Department of Treasury guidance issued thereunder. 
 2.46 “Tandem SAR” means an SAR that is granted in connection with a related Option pursuant to Article VI herein, the exercise of which shall require forfeiture of the right to purchase a
share of Stock under the related Option (and when a share of Stock is purchased under the Option, the Tandem SAR shall similarly be canceled). 
 2.47 “Ten Percent Stockholder” means an individual, who, at the time the applicable Option is granted, owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock
of the Company or any Affiliate. An individual shall be considered as owning the stock owned, directly or indirectly, by or for his brothers and sisters (whether by the whole or half blood), spouse, ancestors, and lineal descendants; and stock
owned, directly or indirectly, by or for a corporation, partnership, estate, or trust, shall be considered as being owned proportionately by or for its stockholders, partners, or beneficiaries. 
 2.48 “Termination of Employment” means the termination of the Award recipient’s employment relationship with the Company and
all Affiliates. 
 2.49 “Third Party Service Provider” means any consultant, agent, representative, advisor, or
independent contractor who renders services to the Company or an Affiliate that (a) are not in connection with the offer and sale of the Company’s securities in a capital raising transaction, and (b) do not directly or indirectly
promote or maintain a market for the Company’s securities. 
 ARTICLE III 
 ELIGIBILITY 
 The persons who are eligible to receive Awards under the Plan are
Employees, Directors and Third Party Service Providers. The persons who are eligible to receive Annual Incentive Awards under the Plan are Employees who, by the nature and scope of their positions, regularly directly make or influence policy
decisions which significantly impact the overall results or success of the Company. Directors and Third Party Service Providers are only eligible to receive NQSO, SAR or Full Value Awards. 
  

 5 

 ARTICLE IV 
 GENERAL PROVISIONS RELATING TO AWARDS 
 4.1 Authority to Grant Awards. The Committee may grant
Awards to those Employees, Directors and Third Party Service Providers as the Committee shall from time to time determine, under the terms and conditions of the Plan. Subject only to any applicable limitations set out in the Plan, the number of
shares of Stock or other value to be covered by any Award to be granted under the Plan shall be as determined by the Committee in its sole discretion. 
 4.2 Dedicated Shares; Maximum Awards. 
 (a) Number of Shares of Stock
Dedicated under the Plan for Awards. 
 (i) The aggregate number of shares of Stock with respect to which Awards may be
granted under the Plan is [10% of the number of shares of Stock authorized, issued and outstanding immediately following the completion of the Company’s initial public offering as reflected on the Company’s first effective registration
statement filed under the Securities Act of 1933, as amended] (the “Aggregate Limit”). 
 (ii) The
aggregate number of shares of Stock with respect to which Full Value Awards may be granted under the Plan is 50% of the Aggregate Limit. 
 (b) Annual Award Limits. Unless and until the Committee determines that an Award to a Covered Employee shall not be designed to qualify as Performance-Based Compensation, the following limits (each an
“Annual Award Limit” and, collectively, “Annual Award Limits”) shall apply to grants of such Awards under the Plan: 
 (i) The maximum number of shares of Stock with respect to which Options may be granted to a Participant during a Fiscal Year is 5% of the
Aggregate Limit, plus the amount of the Participant’s unused applicable Annual Award Limit for Options as of the close of the previous Plan Year. 
 (ii) The maximum number of shares of Stock with respect to which SARs may be granted to a Participant during a Fiscal Year is 5% of the Aggregate Limit, plus the amount of the Participant’s unused applicable
Annual Award Limit for Options as of the close of the previous Plan Year. 
 (iii) The maximum number of shares of Stock with
respect to which Full Value Awards may be granted to a Participant during a Fiscal Year is 5% of the Aggregate Limit, plus the amount of the Participant’s unused applicable Annual Award Limit for Full Value Awards as of the close of the
previous Plan Year. 
 (iv) The maximum number of shares of Stock with respect to which Performance Stock Awards may be
granted to an Employee during a Fiscal Year is 2.5% of the Aggregate Limit. 
 (v) The maximum number of shares of Stock with
respect to which Performance Unit Awards payable in Stock may be granted to an Employee during a Fiscal Year is 2.5% of the Aggregate Limit. 
  

 6 

 (vi) The maximum value of cash with respect to which Performance Unit Awards payable in
cash may be granted to an Employee during a Fiscal Year, determined as of the dates of Grants of the Performance Unit Awards, is $2,000,000. 
 (vii) The maximum amount that may be paid to an Employee under Annual Incentive Award(s) granted to an Employee during a Fiscal Year is $2,000,000. 
 (c) Share Usage. Each of the foregoing numerical limits stated in this Section 4.2 shall be subject to adjustment in
accordance with the provisions of Section 4.5. The number of shares of Stock stated in this Section 4.2 shall also be increased by such number of shares of Stock as become subject to substitute Awards granted pursuant to Article XV;
provided, however, that such increase shall be conditioned upon the approval of the stockholders of the Company to the extent stockholder approval is required by law or applicable stock exchange rules. If shares of Stock are withheld from
payment of an Award to satisfy tax obligations with respect to the Award, such shares of Stock will count against the aggregate number of shares of Stock with respect to which Awards may be granted under the Plan. If shares of Stock are tendered in
payment of an Option Price of an Option, such shares of Stock will not be added to the aggregate number of shares of Stock with respect to which Awards may be granted under the Plan. To the extent that any outstanding Award is forfeited or cancelled
for any reason or is settled in cash in lieu of shares of Stock, the shares of Stock allocable to such portion of the Award may again be subject to an Award granted under the Plan. When a SAR is settled in shares of Stock, the number of shares of
Stock subject to the SAR under the SAR Award Agreement will be counted against the aggregate number of shares of Stock with respect to which Awards may be granted under the Plan as one share for every share subject to the SAR, regardless of the
number of shares used to settle the SAR upon exercise. The maximum number of shares of Stock available for issuance under the Plan shall not be reduced to reflect any dividends or Dividend Equivalents that are reinvested into additional shares of
Stock or credited as additional Restricted Stock, Restricted Stock Units, Performance Shares, or other Stock-Based Awards. 
 4.3
Non-Transferability. Except as specified in the applicable Award Agreements or in domestic relations court orders, an Award shall not be transferable by the Holder other than by will or under the laws of descent and
distribution, and shall be exercisable, during the Holder’s lifetime, only by him or her. Any attempted assignment of an Award in violation of this Section shall be null and void. In the discretion of the Committee, any attempt to transfer an
Award other than under the terms of the Plan and the applicable Award Agreement may terminate the Award. 
 4.4 Requirements of Law.
The Company shall not be required to sell or issue any shares of Stock under any Award if issuing those shares of Stock would constitute or result in a violation by the Holder or the Company of any provision of any law, statute or regulation of
any governmental authority. Specifically, in connection with any applicable statute or regulation relating to the registration of securities, upon exercise of any Option or pursuant to any other Award, 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 final, 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 an Option or pursuant to any other Award are not registered, the Company may
imprint on the certificate evidencing the shares of Stock any legend that counsel for the Company considers necessary or advisable to comply with applicable law, or, should the shares of Stock be represented by book or electronic entry rather than a
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 in order 

  

 7 

 
to cause or enable the exercise of an Option or any other Award, or the issuance of shares of Stock pursuant thereto, to comply with any law or regulation of
any governmental authority. 
 4.5 Changes in the Company’s Capital Structure. 
 (a) The existence of outstanding Awards 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, any merger or consolidation of the Company, any issue of bonds, debentures, preferred or prior preference
shares ahead of or affecting the Stock or Stock rights, the dissolution or liquidation of the Company, 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. 
 (b) If the Company shall effect a subdivision or consolidation of Stock or other capital readjustment, the
payment of a Stock dividend, or other increase or reduction of the number of shares of Stock outstanding, without receiving compensation therefor in money, services or property, then (1) the number, class or series and per share price of Stock
subject to outstanding Options or other Awards under the Plan shall be appropriately adjusted in such a manner as to entitle a Holder to receive upon exercise of an Option or other Award, for the same aggregate cash consideration, the equivalent
total number and class or series of Stock the Holder would have received had the Holder exercised his or her Option or other Award in full immediately prior to the event requiring the adjustment, and (2) the number and class or series of Stock
then reserved to be issued under the Plan shall be adjusted by substituting for the total number and class or series of Stock then reserved, that number and class or series of Stock that would have been received by the owner of an equal number of
outstanding shares of Stock of each class or series of Stock as the result of the event requiring the adjustment. 
 (c) If
while unexercised Options or other Awards remain outstanding under the Plan (1) the Company shall not be the surviving entity in any merger, consolidation or other reorganization (or survives only as a subsidiary of an entity other than an
entity that was wholly-owned by the Company immediately prior to such merger, consolidation or other reorganization), (2) the Company sells, leases or exchanges or agrees to sell, lease or exchange all or substantially all of its assets to any
other person or entity (other than an entity wholly-owned by the Company), (3) the Company is to be dissolved or (4) the Company is a party to any other corporate transaction (as defined under section 424(a) of the Code and applicable
Department of Treasury regulations) that is not described in clauses (1), (2) or (3) of this sentence (each such event is referred to herein as a “Corporate Change”), then, except as otherwise provided in an Award
Agreement or another agreement between the Holder and the Company (provided that such exceptions shall not apply in the case of a reincorporation merger), or as a result of the Committee’s effectuation of one or more of the alternatives
described below, there shall be no acceleration of the time at which any Award then outstanding may be exercised, and no later than ten days after the approval by the stockholders of the Company of such Corporate Change, the Committee, acting in its
sole and absolute discretion without the consent or approval of any Holder, shall act to effect one or more of the following alternatives, which may vary among individual Holders and which may vary among Awards held by any individual Holder
(provided that, with respect to a reincorporation merger in which Holders of the Company’s ordinary shares will receive one ordinary share of the successor corporation for each ordinary share of the Company, none of such alternatives shall
apply and, without Committee action, each Award shall automatically convert into a similar award of the successor corporation exercisable for the same number of ordinary shares of the successor as the Award was exercisable for ordinary shares of
Stock of the Company): 
 (1) accelerate the time at which some or all of the Awards then outstanding may be exercised so that
such Awards may be exercised in full for a limited period of 

  

 8 

 
time on or before a specified date (before or after such Corporate Change) fixed by the Committee, after which specified date all such Awards that remain
unexercised and all rights of Holders thereunder shall terminate; 
 (2) require the mandatory surrender to the Company by all
or selected Holders of some or all of the then outstanding Awards held by such Holders (irrespective of whether such Awards are then exercisable under the provisions of the Plan or the applicable Award Agreement evidencing such Award) as of a date,
before or after such Corporate Change, specified by the Committee, in which event the Committee shall thereupon cancel such Award and the Company shall pay to each such Holder an amount of cash per share equal to the excess, if any, of the per share
price offered to stockholders of the Company in connection with such Corporate Change over the exercise prices under such Award for such shares; 
 (3) with respect to all or selected Holders, have some or all of their then outstanding Awards (whether vested or unvested) assumed or have a new award of a similar nature substituted for some or all of their then
outstanding Awards under the Plan (whether vested or unvested) by an entity which is a party to the transaction resulting in such Corporate Change and which is then employing such Holder or which is affiliated or associated with such Holder in the
same or a substantially similar manner as the Company prior to the Corporate Change, or a parent or subsidiary of such entity, provided that (A) such assumption or substitution is on a basis where the excess of the aggregate fair market value
of the Stock subject to the Award immediately after the assumption or substitution over the aggregate exercise price of such Stock is equal to the excess of the aggregate fair market value of all Stock subject to the Award immediately before such
assumption or substitution over the aggregate exercise price of such Stock, and (B) the assumed rights under such existing Award or the substituted rights under such new Award, as the case may be, will have the same terms and conditions as the
rights under the existing Award assumed or substituted for, as the case may be; 
 (4) provide that the number and class or
series of Stock covered by an Award (whether vested or unvested) theretofore granted shall be adjusted so that such Award when exercised shall thereafter cover the number and class or series of Stock or other securities or property (including,
without limitation, cash) to which the Holder would have been entitled pursuant to the terms of the agreement or plan relating to such Corporate Change if, immediately prior to such Corporate Change, the Holder had been the holder of record of the
number of shares of Stock then covered by such Award; or 
 (5) make such adjustments to Awards then outstanding as the
Committee deems appropriate to reflect such Corporate Change (provided, however, that the Committee may determine in its sole and absolute discretion that no such adjustment is necessary). 
 Any adjustment effected by the Committee under Section 4.5 shall be designed to provide the Holder with the intrinsic value of his or
her Award, as determined prior to the Corporate Change, or, if applicable, equalize the Fair Market Value of the Award before and after the Corporate Change. 
 In effecting one or more of the alternatives set out in paragraphs (3), (4) or (5) immediately above, and except as
otherwise may be provided in an Award Agreement, the Committee, in its sole and absolute discretion and without the consent or approval of any Holder, may accelerate the time at which some or all Awards then outstanding may be exercised. 

 

 9 

 (d) In the event of changes in the outstanding Stock by reason of recapitalizations,
reorganizations, mergers, consolidations, combinations, exchanges or other relevant changes in capitalization occurring after the date of the grant of any Award and not otherwise provided for by this Section 4.5, any outstanding Award and any
Award Agreement evidencing such Award shall be subject to adjustment by the Committee in its sole and absolute discretion as to the number and price of Stock or other consideration subject to such Award. In the event of any such change in the
outstanding Stock, the aggregate number of shares of Stock available under the Plan may be appropriately adjusted by the Committee, whose determination shall be conclusive. 
 (e) After a merger of one or more corporations into the Company or after a consolidation of the Company and one or more corporations in
which the Company shall be the surviving corporation, each Holder shall be entitled to have his Restricted Stock appropriately adjusted based on the manner in which the shares of Stock were adjusted under the terms of the agreement of merger or
consolidation. 
 (f) The issuance by the Company of stock of any class or series, or securities convertible into, or
exchangeable for, stock of any class or series, for cash or property, or for labor or services either upon direct sale or upon the exercise of rights or warrants to subscribe for them, or upon conversion or exchange of stock or obligations of the
Company convertible into, or exchangeable for, stock or other securities, shall not affect, and no adjustment by reason of such issuance shall be made with respect to, the number, class or series, or price of shares of Stock then subject to
outstanding Options or other Awards. 
 4.6 Election Under Section 83(b) of the Code. No Holder shall exercise the election
permitted under section 83(b) of the Code with respect to any Award without the written approval of the Chief Financial Officer or General Counsel of the Company. Any Holder who makes an election under section 83(b) of the Code with
respect to any Award without the written approval of the Chief Financial Officer or General Counsel of the Company shall forfeit any or all Awards granted to him or her under the Plan. 
 4.7 Forfeiture for Cause. Notwithstanding any other provision of the Plan or an Award Agreement, if the Committee finds by a majority vote that a
Holder, before or after his Termination of Employment (a) committed fraud, embezzlement, theft, felony or an act of dishonesty in the course of his employment by the Company or an Affiliate which conduct damaged the Company or an Affiliate or
(b) disclosed trade secrets of the Company or an Affiliate, then as of the date the Committee makes its finding, any Awards awarded to the Holder that have not been exercised by the Holder (including all Awards that have not yet vested) will be
forfeited to the Company. The findings and decision of the Committee with respect to such matter, including those regarding the acts of the Holder and the damage done to the Company, will be final for all purposes. No decision of the Committee,
however, will affect the finality of the discharge of the individual by the Company or an Affiliate. 
 4.8 Forfeiture Events. The
Committee may specify in an Award Agreement that the Holder’s rights, payments, and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of certain specified events, in
addition to any otherwise applicable vesting or performance conditions of an Award. Such events may include, but shall not be limited to, Termination of Employment for cause, termination of the Holder’s provision of services to the Company or
its Affiliates, violation of material policies of the Company and its Affiliates, breach of noncompetition, confidentiality, or other restrictive covenants that may apply to the Holder, or other conduct by the Holder that is detrimental to the
business or reputation of the Company and its Affiliates. 
 4.9 Award Agreements. Each Award shall be embodied in a written agreement
that shall be subject to the terms and conditions of the Plan. The Award Agreement shall be signed by an executive officer of the Company, other than the Holder, on behalf of the Company, and may be signed by the Holder to the extent 

  

 10 

 
required by the Committee. The Award Agreement may contain any other provisions that the Committee in its discretion shall deem advisable which are not
inconsistent with the terms and provisions of the Plan. 
 4.10 Amendments of Award Agreements. The terms of any outstanding Award
under the Plan may be amended from time to time by the Committee in its discretion in any manner that it deems appropriate and that is consistent with the terms of the Plan. However, no such amendment shall adversely affect in a material manner any
right of a Holder without his or her written consent. Except as specified in Section 4.5(b), the Committee may not directly or indirectly lower the exercise price of a previously granted Option or the grant price of a previously granted SAR.

 4.11 Rights as Stockholder. A Holder shall not have any rights as a stockholder with respect to Stock covered by an Option, a SAR,
an RSU, a Performance Stock Unit, or an Other Stock-Based Award until the date, if any, such Stock is issued by the Company; and, except as otherwise provided in Section 4.5, no adjustment for dividends, or otherwise, shall be made if the
record date therefor is prior to the date of issuance of such Stock. 
 4.12 Issuance of Shares of Stock. Shares of Stock, when
issued, may be represented by a certificate or by book or electronic entry. 
 4.13 Restrictions on Stock Received. The Committee may
impose such conditions and/or restrictions on any shares of Stock issued pursuant to an Award as it may deem advisable or desirable. These restrictions may include, but shall not be limited to, a requirement that the Holder hold the shares of Stock
for a specified period of time. 
 4.14 Compliance With Section 409A. Awards shall be designed and operated in such a manner that
they are either exempt from the application of, or comply with, the requirements of Section 409A. 
 ARTICLE V 
 OPTIONS 
 5.1 Authority to Grant
Options. Subject to the terms and provisions of the Plan, the Committee, at any time, and from time to time, may grant Options under the Plan to eligible persons in such number and upon such terms as the Committee shall determine;
provided that ISOs may be granted only to eligible Employees of the Company or of any parent or subsidiary corporation (as permitted by section 422 of the Code and the regulations thereunder). 
 5.2 Option Agreement. Each Option grant under the Plan shall be evidenced by an Award Agreement that shall specify (a) the Option Price,
(b) the duration of the Option, (c) the number of shares of Stock to which the Option pertains, (d) the exercise restrictions, if any, applicable to the Option and (e) such other provisions as the Committee shall determine that
are not inconsistent with the terms and provisions of the Plan. The Award Agreement also shall specify whether the Option is intended to be an ISO or a NQSO. 
 5.3 Option Price. The price at which shares of Stock may be purchased under an Option (the “Option Price”) shall not be less than one hundred percent (100%) of the Fair Market Value
of the shares of Stock on the date the Option is granted; provided, however, if the Option is an ISO granted to a Ten Percent Stockholder, the Option Price must not be less than one hundred ten percent (110%) of the Fair Market Value of
the shares of stock on the date of grant. Subject to the limitations set forth in the preceding sentences of this Section 5.3, the Committee shall determine the Option Price for each grant of an Option under the Plan. 
 5.4 Duration of Option. An Option shall not be exercisable after the earlier of (i) the general term of the Option specified in the
applicable Award Agreement (which shall not exceed ten years, or, in the case of a 

  

 11 

 
Ten Percent Stockholder, no ISO shall be exercisable later than the fifth (5th) anniversary of the date of its grant) or (ii) the period of time specified in the applicable Award Agreement that follows the Holder’s
Termination of Employment or severance of affiliation relationship with the Company. 
 5.5 Amount Exercisable. Each Option may be
exercised at the time, in the manner and subject to the conditions the Committee specifies in the Award Agreement in its sole discretion. 
 5.6 Exercise of Option. 
 (a) General Method of Exercise. Subject to the terms and provisions of the
Plan and the applicable Award Agreement, Options may be exercised in whole or in part from time to time by the delivery of written notice in the manner designated by the Committee stating (1) that the Holder wishes to exercise such Option on
the date such notice is so delivered, (2) the number of shares of Stock with respect to which the Option is to be exercised and (3) the address to which any certificate representing such shares of Stock should be mailed. Except in the case
of exercise by a third party broker as provided below, in order for the notice to be effective the notice must be accompanied by payment of the Option Price by any combination of the following: (a) cash, certified check, bank draft or postal or
express money order for an amount equal to the Option Price under the Option, (b) an election to make a cashless exercise through a registered broker-dealer (if approved in advance by the Committee or an executive officer of the Company) or
(c) any other form of payment which is acceptable to the Committee. 
 (b) Exercise Through Third-Party Broker.
The Committee may permit a Holder to elect to pay the Option Price and any applicable tax withholding resulting from such exercise by authorizing a third-party broker to sell all or a portion of the shares of Stock acquired upon exercise of the
Option and remit to the Company a sufficient portion of the sale proceeds to pay the Option Price and any applicable tax withholding resulting from such exercise. 
 5.7 Transferability–Incentive Stock Options. Notwithstanding anything in the Plan or an Award Agreement to the contrary, no ISO granted under the Plan may be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution, and all ISOs granted to an Employee under this Article V shall be exercisable during his or her lifetime only by such Employee. 
 5.8 Notification of Disqualifying Disposition. If any Employee shall make any disposition of shares of Stock issued pursuant to the exercise of an
ISO under the circumstances described in section 421(b) of the Code (relating to certain disqualifying dispositions), such Employee shall notify the Company of such disposition within ten (10) days thereof. 
 5.9 $100,000 Limitation on ISOs. To the extent that the aggregate Fair Market Value of shares of Stock with respect to which ISOs first become
exercisable by a Holder in any calendar year exceeds $100,000, taking into account both shares of Stock subject to ISOs under the Plan and Stock subject to ISOs under all other plans of the Company, such Options shall be treated as NQSOs. For this
purpose, the “Fair Market Value” of the shares of Stock subject to Options shall be determined as of the date the Options were awarded. In reducing the number of Options treated as ISOs to meet the $100,000 limit, the most recently granted
Options shall be reduced first. To the extent a reduction of simultaneously granted Options is necessary to meet the $100,000 limit, the Committee may, in the manner and to the extent permitted by law, designate which shares of Stock are to be
treated as shares acquired pursuant to the exercise of an ISO. 
  

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 ARTICLE VI 
 STOCK APPRECIATION RIGHTS 
 6.1 Authority to Grant SAR Awards. Subject to the terms and
provisions of the Plan, the Committee, at any time, and from time to time, may grant SARs under the Plan to eligible persons in such number and upon such terms as the Committee shall determine. Subject to the terms and conditions of the Plan, the
Committee shall have complete discretion in determining the number of SARs granted to each Holder and, consistent with the provisions of the Plan, in determining the terms and conditions pertaining to such SARs. The Committee may grant Freestanding
SARs, Tandem SARs, or any combination of these forms of SARs. 
 6.2 General Terms. Subject to the terms and conditions of the Plan, a
SAR granted under the Plan shall confer on the recipient a right to receive, upon exercise thereof, an amount equal to the excess of (a) the Fair Market Value of one share of the Stock on the date of exercise over (b) the grant price of
the SAR, which shall not be less than one hundred percent (100%) of the Fair Market Value of one share of the Stock on the date of grant of the SAR. The grant price of Tandem SARs shall be equal to the Option Price of the related Option.

 6.3 SAR Agreement. Each Award of SARs granted under the Plan shall be evidenced by an Award Agreement that shall specify
(a) the grant price of the SAR, (b) the term of the SAR, (c) the vesting and termination provisions of the SAR and (d) such other provisions as the Committee shall determine that are not inconsistent with the terms and provisions
of the Plan. The Committee may impose such additional conditions or restrictions on the exercise of any SAR as it may deem appropriate. 
 6.4 Term of SAR. The term of a SAR granted under the Plan shall be determined by the Committee, in its sole discretion; provided that no SAR shall be exercisable on or after the tenth anniversary date of its grant. Notwithstanding
any other provision of this Plan to the contrary, with respect to a Tandem SAR granted in connection with an ISO: (a) the Tandem SAR will expire no later than the expiration of the underlying ISO; (b) the value of the payout with respect
to the Tandem SAR may be for no more than one hundred percent (100%) of the excess of the Fair Market Value of the shares of Stock subject to the underlying ISO at the time the Tandem SAR is exercised over the Option Price of the
underlying ISO; and (c) the Tandem SAR may be exercised only when the Fair Market Value of the shares of Stock subject to the ISO exceeds the Option Price of the ISO. 
 6.5 Exercise of SAR. A SAR may be exercised upon whatever terms and conditions the Committee, in its sole discretion, imposes; provided,
however, that Tandem SARs may be exercised for all or part of the shares of stock subject to the related Option upon the surrender of the right to exercise the equivalent portion of the related Option and may be exercised only with respect to
the shares of Stock for which its related Option is then exercisable. 
 6.6 Payment of SAR Amount. Upon the exercise of a SAR, a
Holder shall be entitled to receive payment from the Company in an amount determined by multiplying the excess of the Fair Market Value of a share of Stock on the date of exercise over the grant price of the SAR by the number of shares of Stock with
respect to which the SAR is exercised. At the discretion of the Committee, the payment upon SAR exercise may be in cash, in Stock of equivalent value, in some combination thereof or in any other manner approved by the Committee in its sole
discretion. The Committee’s determination regarding the form of SAR payout shall be set forth in the Award Agreement pertaining to the grant of the SAR. 
 6.7 Termination of Employment. Each Award Agreement shall set forth the extent to which the Holder of a SAR shall have the right to exercise the SAR following the Holder’s Termination of Employment. Such
provisions shall be determined in the sole discretion of the Committee, may be included in the Award Agreement entered into with the Holder, need not be uniform among all SARs issued pursuant to the Plan, and may reflect distinctions based on the
reasons for termination. 
  

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 ARTICLE VII 
 RESTRICTED STOCK AWARDS 
 7.1 Restricted Stock Awards. The Committee may make
Awards of Restricted Stock to eligible persons selected by it. The amount of, the vesting and the transferability restrictions applicable to any Restricted Stock Award shall be determined by the Committee in its sole discretion. If the Committee
imposes vesting or transferability restrictions on a Holder’s rights with respect to Restricted Stock, the Committee may issue such instructions to the Company’s share transfer agent in connection therewith as it deems appropriate. The
Committee may also cause the certificate for shares of Stock issued pursuant to a Restricted Stock Award to be imprinted with any legend which counsel for the Company considers advisable with respect to the restrictions or, should the shares of
Stock be represented by book or electronic entry rather than a 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.

 7.2 Restricted Stock Award Agreement. Each Restricted Stock Award shall be evidenced by an Award Agreement that contains any
vesting, transferability restrictions and other provisions not inconsistent with the Plan as the Committee may specify. 
 7.3
Holder’s Rights as Stockholder. Subject to the terms and conditions of the Plan, each recipient of a Restricted Stock Award shall have all the rights of a stockholder with respect to the shares of Restricted Stock included in the
Restricted Stock Award during the Period of Restriction established for the Restricted Stock Award. Dividends paid with respect to Restricted Stock in cash or property other than shares of Stock or rights to acquire shares of Stock shall be paid to
the recipient of the Restricted Stock Award currently. Dividends paid in shares of Stock or rights to acquire shares of Stock shall be added to and become a part of the Restricted Stock. During the Period of Restriction, certificates representing
the Restricted Stock shall be registered in the Holder’s name and bear a restrictive legend to the effect that ownership of such Restricted Stock, and the enjoyment of all rights appurtenant thereto, are subject to the restrictions, terms, and
conditions provided in the Plan and the applicable Award Agreement. Such certificates shall be deposited by the recipient with the Secretary of the Company or such other officer of the Company as may be designated by the Committee, together with all
stock powers or other instruments of assignment, each endorsed in blank, which will permit transfer to the Company of all or any portion of the Restricted Stock which shall be forfeited in accordance with the Plan and the applicable Award Agreement.

 ARTICLE VIII 
 RESTRICTED STOCK UNIT AWARDS 
 8.1 Authority to Grant RSU Awards. Subject to the terms and provisions of the Plan,
the Committee, at any time, and from time to time, may grant RSU Awards under the Plan to eligible persons in such amounts and upon such terms as the Committee shall determine. The amount of, the vesting and the transferability restrictions
applicable to any RSU Award shall be determined by the Committee in its sole discretion. The Committee shall maintain a bookkeeping ledger account which reflects the number of RSUs credited under the Plan for the benefit of a Holder. 
 8.2 RSU Award. An RSU Award shall be similar in nature to a Restricted Stock Award except that no shares of Stock are actually transferred to the
Holder until a later date specified in the applicable Award Agreement. Each RSU shall have a value equal to the Fair Market Value of a share of Stock. 
  

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 8.3 RSU Award Agreement. Each RSU Award shall be evidenced by an Award Agreement that contains any
Substantial Risk of Forfeiture, transferability restrictions, form and time of payment provisions and other provisions not inconsistent with the Plan as the Committee may specify. 
 8.4 Form of Payment Under RSU Award. Payment under an RSU Award shall be made in either cash or shares of Stock as specified in the applicable
Award Agreement. 
 8.5 Time of Payment Under RSU Award. A Holder’s payment under an RSU Award shall be made at such time as is
specified in the applicable Award Agreement. The Award Agreement shall specify that the payment will be made (1) by a date that is no later than the date that is two and one-half (2 1/2) months after the end of the Fiscal Year in which the RSU
Award payment is no longer subject to a Substantial Risk of Forfeiture or (2) at a time that is permissible under Section 409A. 
 ARTICLE IX 
 PERFORMANCE STOCK AWARDS AND PERFORMANCE UNIT AWARDS 
 9.1 Authority to Grant Performance Stock Awards and Performance Unit Awards. Subject to the terms and provisions of the Plan, the Committee, at
any time, and from time to time, may grant Performance Stock Awards and Performance Unit Awards under the Plan to eligible persons in such amounts and upon such terms as the Committee shall determine. The amount of, the vesting and the
transferability restrictions applicable to any Performance Stock Award or Performance Unit Award shall be based upon the attainment of such Performance Goals as the Committee may determine. If the Committee imposes vesting or transferability
restrictions on a Holder’s rights with respect to Performance Stock or Performance Unit Awards, the Committee may issue such instructions to the Company’s share transfer agent in connection therewith as it deems appropriate. The Committee
may also cause the certificate for shares of Stock issued pursuant to a Performance Stock or Performance Unit Award to be imprinted with any legend which counsel for the Company considers advisable with respect to the restrictions or, should the
shares of Stock be represented by book or electronic entry rather than a 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. 
 9.2 Performance Goals. Unless and until the Committee proposes for shareholder vote and the shareholders approve a change in
the general Performance Goals set forth in this Article IX, the Performance Goals upon which the payment or vesting of an Award to a Covered Employee that is intended to qualify as Performance-Based Compensation shall be limited to one or more
of the following Performance Goals, which may be based on one or more business criteria that apply to the Holder, one or more business units of the Company, or the Company as a whole: earnings per share, total shareholder return, cash return on
capitalization, increased revenue, revenue ratios (per employee or per customer), net income, stock price, market share, return on equity, return on assets, return on capital, return on capital compared to cost of capital, return on capital
employed, return on invested capital, shareholder value, net cash flow, operating income, earnings before interest and taxes, cash flow, cash flow from operations, cost reductions and cost ratios (per employee or per customer). Goals may also be
based on performance relative to a peer group of companies. 
 Unless otherwise stated, such a Performance Goal need not be based upon an
increase or positive result under a particular business criterion and could include, for example, maintaining the status quo or limiting economic losses (measured, in each case, by reference to specific business criteria). In interpreting Plan
provisions applicable to Performance Goals and Performance Stock or Performance Unit Awards, it is intended that the Plan will conform with the standards of section 162(m) of the Code and Treasury Regulations § 1.162-27(e)(2)(i), and
the Committee in establishing such goals and interpreting the Plan shall be guided by such provisions. Prior to the payment of any compensation based on the achievement of Performance Goals, the Committee must certify in writing that applicable
Performance Goals and any of the material terms thereof were, 

  

 15 

 
in fact, satisfied. Subject to the foregoing provisions, the terms, conditions and limitations applicable to any Performance Stock or Performance Unit Awards
made pursuant to the Plan shall be determined by the Committee. 
 9.3 Time of Establishment of Performance Goals. With respect to a
Covered Employee, a Performance Goal for a particular Performance Stock Award or Performance Unit Award must be established by the Committee prior to the earlier to occur of (a) 90 days after the commencement of the period of service to which
the Performance Goal relates or (b) the lapse of 25 percent of the period of service, and in any event while the outcome is substantially uncertain. 
 9.4 Written Agreement. Each Performance Stock Award or Performance Unit Award shall be evidenced by an Award Agreement that contains any vesting, transferability restrictions and other provisions not
inconsistent with the Plan as the Committee may specify. 
 9.5 Form of Payment Under Performance Unit Award. Payment under a
Performance Unit Award shall be made in cash and/or shares of Stock as specified in the Holder’s Award Agreement. 
 9.6 Time of
Payment Under Performance Unit Award. A Holder’s payment under a Performance Unit Award shall be made at such time as is specified in the applicable Award Agreement. The Award Agreement shall specify that the payment will be made
(1) by a date that is no later than the date that is two and one-half (2 1/2) months after the end of the calendar year in which the Performance Unit Award payment is no longer subject to a Substantial Risk of Forfeiture or (2) at a time
that is permissible under Section 409A. 
 9.7 Holder’s Rights as Stockholder With Respect to a Performance Stock
Award. Subject to the terms and conditions of the Plan, each Holder of a Performance Stock Award shall have all the rights of a stockholder with respect to the shares of Stock issued to the Holder pursuant to the Award during any
period in which such issued shares of Stock are subject to forfeiture and restrictions on transfer, including without limitation, the right to vote such shares of Stock. 
 9.8 Increases Prohibited. None of the Committee or the Board may increase the amount of compensation payable under a Performance Stock or Performance Unit Award. If the time at which a Performance Stock or
Performance Unit Award will vest or be paid is accelerated for any reason, the number of shares of Stock subject to, or the amount payable under, the Performance Stock or Performance Unit Award shall be reduced pursuant to Department of Treasury
Regulation section 1.162-27(e)(2)(iii) to reasonably reflect the time value of money. 
 9.9 Stockholder Approval. No payments of
Stock or cash will be made to a Covered Employee pursuant to this Article IX unless the stockholder approval requirements of Department of Treasury Regulation section 1.162-27(e)(4) are satisfied. 
 ARTICLE X 
 DIRECTOR AWARDS

 All Awards to Directors shall be determined by the Board or Committee. 
  

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 ARTICLE XI 
 DIVIDEND EQUIVALENTS 
 Any eligible person selected by the Committee may be granted Dividend
Equivalents based on the dividends declared on shares of Stock that are subject to any Award, to be credited as of dividend payment dates, during the period between the date the Award is granted and the date the Award is exercised, vests or expires,
as determined by the Committee. Such Dividend Equivalents shall be converted to cash or additional shares by such formula and at such time and subject to such limitations as may be determined by the Committee. 
 ARTICLE XII 
 ANNUAL INCENTIVE AWARDS

 12.1 Authority to Grant Annual Incentive Awards. Subject to the terms and provisions of the Plan, the Committee, at any time,
and from time to time, may grant Annual Incentive Awards under the Plan to Employees who, by the nature and scope of their positions, regularly directly make or influence policy decisions which significantly impact the overall results or success of
the Company in such amounts and upon such terms as the Committee shall determine. The amount of any Annual Incentive Awards shall be based on the attainment of such Performance Goals as the Committee may determine. 
 12.2 Performance Goals. A Performance Goal must be objective such that a third party having knowledge of the relevant facts could determine
whether the goal is met. Such a Performance Goal may be based on one or more business criteria that apply to the Holder, one or more business units of the Company, or the Company as a whole, with reference to one or more of the following: earnings
per share, total shareholder return, cash return on capitalization, increased revenue, revenue ratios (per employee or per customer), net income, stock price, market share, return on equity, return on assets, return on capital, return on capital
compared to cost of capital, return on capital employed, return on invested capital, shareholder value, net cash flow, operating income, earnings before interest and taxes, cash flow, cash flow from operations, cost reductions and cost ratios (per
employee or per customer). Goals may also be based on performance relative to a peer group of companies. Unless otherwise stated, such a Performance Goal need not be based upon an increase or positive result under a particular business criterion and
could include, for example, maintaining the status quo or limiting economic losses (measured, in each case, by reference to specific business criteria). In interpreting Plan provisions applicable to Performance Goals and Performance Stock or
Performance Unit Awards, it is intended that the Plan will conform with the standards of section 162(m) of the Code and Treasury Regulations § 1.162-27(e)(2)(i), and the Committee in establishing such goals and interpreting the Plan
shall be guided by such provisions. Prior to the payment of any compensation based on the achievement of Performance Goals, the Committee must certify in writing that applicable Performance Goals and any of the material terms thereof were, in fact,
satisfied. Subject to the foregoing provisions, the terms, conditions and limitations applicable to any Annual Incentive Awards made pursuant to the Plan shall be determined by the Committee. 
 12.3 Time of Establishment of Performance Goals. A Performance Goal for a particular Annual Incentive Award must be established by the Committee
prior to the earlier to occur of (a) 90 days after the commencement of the period of service to which the Performance Goal relates or (b) the lapse of 25 percent of the period of service, and in any event while the outcome is
substantially uncertain. 
 12.4 Written Agreement. Each Annual Incentive Award shall be evidenced by an Award Agreement that contains
any vesting, transferability restrictions and other provisions not inconsistent with the Plan as the Committee may specify. 
  

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 12.5 Form of Payment Under Annual Incentive Award. Payment under an Annual Incentive Award shall
be made in cash. 
 12.6 Time of Payment Under Annual Incentive Award. A Holder’s payment under an Annual Incentive Award shall
be made at such time as is specified in the applicable Award Agreement. The Award Agreement shall specify that the payment will be made (1) by a date that is no later than the date that is two and one-half (2 1/2) months after the end of the
calendar year in which the Annual Incentive Award payment is no longer subject to a Substantial Risk of Forfeiture or (2) at a time that is permissible under Section 409A. 
 12.7 Increases Prohibited. None of the Committee or the Board may increase the amount of compensation payable under an Annual Incentive Award. If
the time at which an Annual Incentive Award will be paid is accelerated for any reason, the amount payable under the Annual Incentive Award shall be reduced pursuant to Department of Treasury Regulation section 1.162-27(e)(2)(iii) to reasonably
reflect the time value of money. 
 12.8 Stockholder Approval. No payments of cash will be made pursuant to this Article X unless
the stockholder approval requirements of Department of Treasury Regulation section 1.162-27(e)(4) are satisfied. 
 ARTICLE XIII

 OTHER STOCK-BASED AWARDS 
 13.1 Authority to Grant Other Stock-Based Awards. The Committee may grant to eligible persons other types of equity-based or equity-related Awards not otherwise described by the terms and provisions of the Plan (including the
grant or offer for sale of unrestricted shares of Stock) in such amounts and subject to such terms and conditions, as the Committee shall determine. Such Awards may involve the transfer of actual shares of Stock to Holders, or payment in cash or
otherwise of amounts based on the value of shares of Stock and may include, without limitation, Awards designed to comply with or take advantage of the applicable local laws of jurisdictions other than the United States. 
 13.2 Value of Other Stock-Based Award. Each Other Stock-Based Award shall be expressed in terms of shares of Stock or units based on shares
of Stock, as determined by the Committee. 
 13.3 Payment of Other Stock-Based Award. Payment, if any, with respect to an Other
Stock-Based Award shall be made in accordance with the terms of the Award, in cash or shares of Stock as the Committee determines. 
 13.4
Termination of Employment. The Committee shall determine the extent to which a Holder’s rights with respect to Other Stock-Based Awards shall be affected by the Holder’s Termination of Employment. Such provisions shall be
determined in the sole discretion of the Committee and need not be uniform among all Other Stock-Based Awards issued pursuant to the Plan. 
 ARTICLE XIV 
 CASH-BASED AWARDS 
 14.1 Authority to Grant Cash-Based Awards. Subject to the terms and provisions of the Plan, the Committee, at any time, and from time to time, may grant Cash-Based Awards under the Plan to eligible
persons in such amounts and upon such terms as the Committee shall determine. 
  

 18 

 14.2 Value of Cash-Based Award. Each Cash-Based Award shall specify a payment amount or
payment range as determined by the Committee. 
 14.3 Payment of Cash-Based Award. Payment, if any, with respect to a
Cash-Based Award shall be made in accordance with the terms of the Award, in cash. 
 14.4 Termination of Employment. The
Committee shall determine the extent to which a Holder’s rights with respect to Cash-Based Awards shall be affected by the Holder’s Termination of Employment. Such provisions shall be determined in the sole discretion of the Committee and
need not be uniform among all Cash-Based Awards issued pursuant to the Plan. 
 ARTICLE XV 
 SUBSTITUTION AWARDS 
 Awards may be
granted under the Plan from time to time in substitution for stock options and other awards held by employees of other entities who are about to become Employees, or whose employer is about to become an Affiliate as the result of a merger or
consolidation of the Company with another corporation, or the acquisition by the Company of substantially all the assets of another corporation, or the acquisition by the Company of at least fifty percent (50%) of the issued and outstanding
stock of another corporation as the result of which such other corporation will become a subsidiary of the Company. The terms and conditions of the substitute Awards so granted may vary from the terms and conditions set forth in the Plan to such
extent as the Board at the time of grant may deem appropriate to conform, in whole or in part, to the provisions of the Award in substitution for which they are granted. 
 ARTICLE XVI 
 CHANGE IN CONTROL OF THE COMPANY 
 16.1 Change in Control of the Company. Upon the occurrence of a Change in Control of the Company, unless otherwise specifically
prohibited under applicable laws or by the rules and regulations of any governing governmental agencies or national securities exchanges, or unless the Committee shall determine otherwise in the Award Agreement: 
 (a) Any and all Options and SARs granted hereunder shall become immediately vested and exercisable to the extent that their Option Price
or grant price, as adjusted pursuant to Section 4.5 is less than the Fair Market Value of a share of stock on such date and the Participant shall have until the earlier of: (i) twelve (12) months following such termination date, or
(ii) the expiration of the Option or SAR term, to exercise any such Option or SAR; 
 (b) any Period of Restriction and
restrictions imposed on Restricted Stock or Restricted Stock Units shall lapse; 
 (c) the target payout opportunities
attainable under all outstanding Awards of performance-based Restricted Stock, performance-based Restricted Stock Units, Performance Units, and Performance Shares, shall be deemed to have been fully earned based on targeted performance being
attained as of the effective date of the Change in Control of the Company; 
 (i) The vesting of all Awards denominated in
shares of Stock shall be accelerated as of the effective date of the Change in Control of the Company, and shall be paid out to Participants within thirty (30) days following the effective date of the Change in Control of the 

  

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Company. The Committee has the authority to pay all or any portion of the value of the shares of stock in cash; 
 (ii) Awards denominated in cash shall be paid to Participants in cash within thirty (30) days following the effective date of the
Change in Control of the Company; and 
 (d) unless otherwise specifically provided in a written agreement entered into
between the Participant and the Company, the Committee shall pay out all Other Stock-Based Awards. 
 (e) Subject to the
acceleration of vesting of outstanding Options, the Committee, in its discretion, may provide that in the event of a Change in Control of the Company pursuant to Section 2.8(b) or (c), no later than ten (10) days after the approval by the
shareholders of the Company of such merger, consolidation, reorganization, sale, lease, or exchange or assets or dissolution or such election of directors, or in the event of a Change in Control of the Company pursuant to Section 2.8(a), no
later than thirty (30) days after the occurrence of such Change in Control of the Company, that (i) Options may be exercised in full only for a limited period of time on or before a specified date (before or after such Change in Control of
the Company) fixed by the Committee, after which specified date all unexercised Options and all rights of the Participants thereunder shall terminate, or (ii) require the mandatory surrender to the Company by selected Participants of some or
all of the outstanding Options held by such Participants as of a date, before or after such Change in Control of the Company, specified by the Committee, in which event the Committee shall thereupon cancel such Options and the Company shall pay to
each Participant an amount of cash per share of stock equal to the excess, if any of the “Change in Control of the Company Value” of the shares of stock subject to such Option over the Option Price(s) under such Options for
such shares of stock. 
 For the purpose of this Section 16.1(e), “Change in Control of the Company
Value” shall equal the amount determined in clause (i), (ii), or (iii), whichever is applicable, as follows: (i) the per share price of the Stock offered to shareholders of the Company in any such merger, consolidation,
reorganization, sale of assets, or dissolution transaction, (ii) the per share price of the Stock offered to shareholders of the Company in any tender offer or exchange offer whereby a Change in Control of the Company takes place, or
(iii) if such Change in Control of the Company occurs other than pursuant to a tender or exchange offer, the Fair Market Value per share of the shares in which such Options being surrendered are exercisable, as determined by the Committee as of
the date determined by the Committee to be the date of cancellation and surrender of such Options. In the event that the consideration offered to shareholders of the Company in any transaction consists of anything other than cash, the Committee
shall determine the fair cash equivalent of the portion of the consideration offered which is other than cash. 
 ARTICLE XVII

 ADMINISTRATION 
 17.1 Awards. The Plan shall be administered by the Committee or, in the absence of the Committee, the Plan shall be administered by the Board. The members of the Committee shall serve at the discretion of the Board. The Committee
shall have full and exclusive power and authority to administer the Plan and to take all actions that the Plan expressly contemplates or are necessary or appropriate in connection with the administration of the Plan with respect to Awards granted
under the Plan. 
 17.2 Authority of the Committee. The Committee shall have full and exclusive power to interpret and apply the terms
and provisions of the Plan and Awards made under the Plan, and to adopt such rules, regulations and guidelines for implementing the Plan as the Committee may deem necessary or proper, all of which powers shall be exercised in the best interests of
the Company and in keeping with the objectives of the 

  

 20 

 
Plan. A majority of the members of the Committee shall constitute a quorum for the transaction of business relating to the Plan or Awards made under the
Plan, and the vote of a majority of those members present at any meeting shall decide any question brought before that meeting. Any decision or determination reduced to writing and signed by a majority of the members shall be as effective as if it
had been made by a majority vote at a meeting properly called and held. All questions of interpretation and application of the Plan, or as to Awards granted under the Plan, shall be subject to the determination, which shall be final and binding, of
a majority of the whole Committee. No member of the Committee shall be liable for any act or omission of any other member of the Committee or for any act or omission on his own part, including but not limited to the exercise of any power or
discretion given to him under the Plan, except those resulting from his own gross negligence or willful misconduct. In carrying out its authority under the Plan, the Committee shall have full and final authority and discretion, including but not
limited to the following rights, powers and authorities to (a) determine the persons to whom and the time or times at which Awards will be made; (b) determine the number and exercise price of shares of Stock covered in each Award subject
to the terms and provisions of the Plan; (c) determine the terms, provisions and conditions of each Award, which need not be identical and need not match the default terms set forth in the Plan; (d) accelerate the time at which any
outstanding Award will vest; (e) prescribe, amend and rescind rules and regulations relating to administration of the Plan; and (f) make all other determinations and take all other actions deemed necessary, appropriate or advisable for the
proper administration of the Plan. 
 The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan
or in any Award to a Holder in the manner and to the extent the Committee deems necessary or desirable to further the Plan’s objectives. Further, the Committee shall make all other determinations that may be necessary or advisable for the
administration of the Plan. As permitted by law and the terms and provisions of the Plan, the Committee may delegate to one or more of its members or to one or more officers of the Company, and/or its Affiliates or to one or more agents or advisors
such administrative duties or powers as it may deem advisable, and the Committee or any person to whom it has delegated duties or powers as aforesaid may employ one or more persons to render advice with respect to any responsibility the Committee or
such person may have under the Plan. The Committee may, by resolution, authorize one or more officers of the Company to do one or both of the following on the same basis as can the Committee: (a) designate Employees, Directors or Third Party
Service Providers to be recipients of Awards; (b) designate Third Party Service Providers to be recipients of Awards; and (c) determine the size of any such Awards; provided, however, (i) the Committee shall not delegate such
responsibilities to any such officer for Awards granted to an Employee that is considered an Insider; (ii) the resolution providing such authorization sets forth the total number of Awards such officer(s) may grant; and (iii) the
officer(s) shall report periodically to the Committee regarding the nature and scope of the Awards granted pursuant to the authority delegated. The Committee may employ attorneys, consultants, accountants, agents, and other persons, any of whom may
be an Employee, and the Committee, the Company, and its officers and Board shall be entitled to rely upon the advice, opinions, or valuations of any such persons. 
 17.3 Decisions Binding. All determinations and decisions made by the Committee or the Board, as the case may be, pursuant to the provisions of the Plan and all related orders and resolutions of the Committee or
the Board, as the case may be, shall be final, conclusive and binding on all persons, including the Company, its Affiliates, its stockholders, Holders and the estates and beneficiaries of Holders. 
 17.4 No Liability. Under no circumstances shall the Company, its Affiliates, the Board or the Committee incur liability for any indirect,
incidental, consequential or special damages (including lost profits) of any form incurred by any person, whether or not foreseeable and regardless of the form of the act in which such a claim may be brought, with respect to the Plan or the
Company’s, its Affiliates’, the Committee’s or the Board’s roles in connection with the Plan. 
  

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 ARTICLE XVIII 
 AMENDMENT OR TERMINATION OF PLAN 
 18.1 Amendment, Modification, Suspension, and
Termination. Subject to Section 18.2, the Committee may, at any time and from time to time, alter, amend, modify, suspend, or terminate the Plan and any Award Agreement in whole or in part; provided, however, that, without the prior
approval of the Company’s stockholders and except as provided in Section 4.5, the Committee shall not directly or indirectly lower the Option Price of a previously granted Option, and no amendment of the Plan shall be made without
stockholder approval if stockholder approval is required by applicable law or stock exchange rules. 
 18.2 Awards Previously
Granted. Notwithstanding any other provision of the Plan to the contrary, no termination, amendment, suspension, or modification of the Plan or an Award Agreement shall adversely affect in any material way any Award previously granted
under the Plan, without the written consent of the Holder holding such Award. 
 ARTICLE XIX 
 MISCELLANEOUS 
 19.1 Unfunded
Plan/No Establishment of a Trust Fund. Holders shall have no right, title, or interest whatsoever in or to any investments that the Company or any of its Affiliates may make to aid in meeting obligations under the Plan. Nothing contained in the
Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any Holder, beneficiary, legal representative, or any other person. To the extent
that any person acquires a right to receive payments from the Company under the Plan, such right shall be no greater than the right of an unsecured general creditor of the Company. All payments to be made hereunder shall be paid from the general
funds of the Company and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts, except as expressly set forth in the Plan. No property shall be set aside nor shall a trust fund
of any kind be established to secure the rights of any Holder under the Plan. The Plan is not intended to be subject to the Employee Retirement Income Security Act of 1974, as amended. 
 19.2 No Employment Obligation. The granting of any Award shall not constitute an employment contract, express or implied, nor impose upon the
Company or any Affiliate any obligation to employ or continue to employ, or utilize the services of, any Holder. The right of the Company or any Affiliate to terminate the employment of any person shall not be diminished or affected by reason of the
fact that an Award has been granted to him, and nothing in the Plan or an Award Agreement shall interfere with or limit in any way the right of the Company or its Affiliates to terminate any Holder’s employment at any time or for any reason not
prohibited by law. 
 19.3 Tax Withholding. The Company or any Affiliate shall be entitled to deduct from other compensation payable
to each Holder any sums required by federal, state or local tax law to be withheld with respect to the vesting or exercise of an Award or lapse of restrictions on an Award. In the alternative, the Company may require the Holder (or other person
validly exercising the Award) to pay such sums for taxes directly to the Company or any Affiliate in cash or by check within one day after the date of vesting, exercise or lapse of restrictions. 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 such Holder’s exercise of an 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 Committee may, in its discretion, permit a Holder to satisfy any Minimum Statutory Tax Withholding
Obligation arising upon the vesting of an Award by delivering to the Holder a reduced number of shares of Stock in the manner specified herein. If permitted by the Committee and acceptable to the Holder, at the time of vesting of shares under the
Award, the Company shall (a) calculate the amount of the Company’s or an Affiliate’s Minimum Statutory Tax Withholding Obligation on the assumption that all such shares of Stock vested under the Award are made available for delivery,
(b) reduce the number of such shares of Stock made available for delivery so that the Fair Market Value of the shares of Stock withheld on the vesting date approximates the Company’s or an Affiliate’s Minimum Statutory Tax Withholding
Obligation and (c) in lieu of the withheld shares of Stock, remit cash to the United States Treasury and/or other applicable governmental authorities, on behalf of the Holder, in the amount of the Minimum Statutory Tax Withholding Obligation.
The Company shall withhold only whole shares of Stock to satisfy its Minimum Statutory Tax Withholding Obligation. Where the Fair Market Value of the withheld shares of Stock does not equal the amount of the Minimum Statutory Tax Withholding
Obligation, the Company shall withhold shares of Stock with a Fair Market Value slightly less than the amount of the Minimum Statutory Tax Withholding Obligation and the Holder must satisfy the remaining minimum withholding obligation in some other
manner permitted under this Section 19.3. The withheld shares of Stock not made available for delivery by the Company shall be retained as treasury shares or will be cancelled and the Holder’s right, title and interest in such shares of
Stock shall terminate. 
 The Company shall have no obligation upon vesting or exercise of any Award or lapse of restrictions on an Award
until the Company or an Affiliate has received payment sufficient to cover the Minimum Statutory Tax Withholding Obligation with respect to that vesting, exercise or lapse of restrictions. Neither the Company nor any Affiliate shall be obligated to
advise a Holder of the existence of the tax or the amount which it will be required to withhold. 
 19.4 Gender and Number. If the
context requires, words of one gender when used in the Plan shall include the other and words used in the singular or plural shall include the other. 
 19.5 Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the
Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 
 19.6 Headings. Headings of
Articles and Sections are included for convenience of reference only and do not constitute part of the Plan and shall not be used in construing the terms and provisions of the Plan. 
 19.7 Other Compensation Plans. The adoption of the Plan shall not affect any other option, incentive or other compensation or benefit plans in
effect for the Company or any Affiliate, nor shall the Plan preclude the Company from establishing any other forms of incentive compensation arrangements for Employees, Directors or Third Party Service Providers. 
 19.8 Retirement and Welfare Plans. Neither Awards made under the Plan nor shares of Stock or cash paid pursuant to such Awards, may be
included as “compensation” for purposes of computing the benefits payable to any Participant under the Company’s or any Affiliate’s retirement plans (both qualified and non-qualified) or welfare benefit plans unless such other
plan expressly provides that such compensation shall be taken into account in computing a participant’s benefit. 
 19.9 Other
Awards. The grant of an Award shall not confer upon the Holder the right to receive any future or other Awards under the Plan, whether or not Awards may be granted to similarly situated Holders, or the right to receive future Awards upon the
same terms or conditions as previously granted. 
 19.10 Successors. All obligations of the Company under the Plan with respect to
Awards granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result 

  

 23 

 
of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. 

19.11 Law Limitations/Governmental Approvals. The granting of Awards and the issuance of shares of Stock under the Plan shall be subject
to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 
 19.12 Delivery of Title. The Company shall have no obligation to issue or deliver evidence of title for shares of Stock issued under the Plan prior to (a) obtaining any approvals from governmental
agencies that the Company determines are necessary or advisable; and (b) completion of any registration or other qualification of the Stock under any applicable national or foreign law or ruling of any governmental body that the Company
determines to be necessary or advisable. 
 19.13 Inability to Obtain Authority. The inability of the Company to obtain
authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any shares of Stock hereunder, shall relieve the Company of any liability in respect
of the failure to issue or sell such shares of Stock as to which such requisite authority shall not have been obtained. 
 19.14
Investment Representations. The Committee may require any person receiving Stock pursuant to an Award under the Plan to represent and warrant in writing that the person is acquiring the shares of Stock for investment and without
any present intention to sell or distribute such Stock. 
 19.15 Persons Residing Outside of the United States. Notwithstanding any
provision of the Plan to the contrary, in order to comply with the laws in other countries in which the Company or any of its Affiliates operates or has Employees, the Committee, in its sole discretion, shall have the power and authority to
(a) determine which Affiliates shall be covered by the Plan; (b) determine which persons employed outside the United States are eligible to participate in the Plan; (c) amend or vary the terms and provisions of the Plan and the terms
and conditions of any Award granted to persons who reside outside the United States; (d) establish subplans and modify exercise procedures and other terms and procedures to the extent such actions may be necessary or advisable — any
subplans and modifications to Plan terms and procedures established under this Section 19.15 by the Committee shall be attached to the Plan document as Appendices; and (e) take any action, before or after an Award is made, that it deems
advisable to obtain or comply with any necessary local government regulatory exemptions or approvals. Notwithstanding the above, the Committee may not take any actions hereunder, and no Awards shall be granted, that would violate the Securities
Exchange Act of 1934, as amended, the Code, any securities law or governing statute or any other applicable law. 
 19.16 Arbitration of
Disputes. Any controversy arising out of or relating to the Plan or an Award Agreement shall be resolved by arbitration conducted pursuant to the arbitration rules of the American Arbitration Association. The arbitration shall be final and
binding on the parties. 
 19.17 Governing Law. The provisions of the Plan and the rights of all persons claiming thereunder shall be
construed, administered and governed under the laws of the State of Delaware, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan to the substantive law of another
jurisdiction. Unless otherwise provided in the Award Agreement, recipients of an Award under the Plan are deemed to submit to the exclusive jurisdiction and venue of the federal or state courts of Pennsylvania, to resolve any and all issues that may
arise out of or relate to the Plan or any related Award Agreement. 
  

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