Document:

Exhibit
10.8

 

AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

 

This Amended and Restated
Executive Employment Agreement (“Agreement”) is entered into on March 18, 2022 (the “Effective Date”),
by and between Independence Contract Drilling, Inc., a Delaware corporation (the “Company”), and J. Anthony
Gallegos, Jr. (“Executive”). This Agreement amends and restates in its entirety the Prior Agreement (as defined
below) effective as of the Effective Date.

 

W
I T N E S S E T H:

 

WHEREAS,
the Company and Executive entered into an Employment Agreement on July 18, 2018 (the “Prior Agreement”); and

 

WHEREAS,
the Company desires to continue to employ, and Executive desires to continue to be employed by the Company and its subsidiaries and affiliates,
as applicable, on the terms set forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the mutual terms and agreements set forth herein, the parties hereto agree as follows:

 

1.             Employment.
During the Employment Term (as defined below), the Company will employ Executive, subject to the term and conditions of this Agreement,
and Executive hereby agrees to accept employment by the Company or an affiliate subject to the terms and conditions of this Agreement,
during the Employment Term (as defined below).

 

2.             Term.
The “Employment Term” shall mean the period commencing on the Effective Date and ending on the third anniversary
of the Effective Date; provided, however, if neither party shall have provided written notice of termination at least one year
prior to the scheduled expiration of the then current term of this Agreement (each such date by which such notice must be provided, a
 “Renewal Date”), the Employment Term shall automatically be extended for one additional years so as to expire
two years from such Renewal Date, in all cases subject to earlier termination as provided in Section 5. Upon a Change of Control, the
Employment Term shall be automatically extended to the third anniversary of the Change of Control.

 

3.             Position
and Duties.

 

(a)            During the Employment Term, (A) Executive’s position (including status, offices, titles and reporting requirements, authority,
duties and responsibilities) shall be Chief Executive Officer reporting to the Board and (B) Executive’s services shall be performed
at the Company’s executive offices in Houston, Texas or other locations less than 50 miles from such location.

 

(b)           During
the Employment Term and excluding any periods of vacation and sick leave to which Executive is entitled, Executive agrees to devote the
substantial portion of his attention and time during normal business hours to the business and affairs of the Company and, to the extent
necessary to discharge the responsibilities assigned to Executive hereunder or the Board, to use Executive’s reasonable best efforts
to perform faithfully and efficiently such responsibilities. During the Employment Term it shall not be a violation of this Agreement
for Executive to (A) serve on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill speaking engagements
or teach at educational institutions and (C) manage personal investments and business endeavors, so long as such activities do not significantly
interfere with the performance of Executive’s responsibilities as an employee of the Company in accordance with this Agreement.

 

     

     

    

 

4.             Compensation and Related Matters. During the Employment Term, Executive shall be entitled to the following compensation
and benefits:

 

(a)           Salary.
The Company shall pay to Executive a total annual base salary of $485,000 (which salary may be increased (but not decreased) by the Company
in its discretion) (“Base Salary”), payable in accordance with the normal payroll practices of the Company.
During the Employment Term, the Base Salary shall be reviewed by the Board of Directors of the Company (the “Board”)
at least annually; provided, however, that a salary increase shall not necessarily be awarded as a result of such review. Any
increase in Base Salary may not serve to limit or reduce any other obligation to Executive under this Agreement. Base Salary shall not
be reduced after any such increase. The term Base Salary as utilized in this Agreement shall refer to Base Salary as so increased.

 

(b)           Bonus. Executive shall be eligible for an annual bonus and other annual incentive compensation (collectively, the “Annual
Bonus”) for each fiscal year of the Company during the Employment Term, in accordance with the Company’s bonus plan
for senior executives of the Company. The Annual Bonus shall be based upon a target amount of 100% of Base Salary (which target amount
may be increased (but not decreased by the Company in its discretion) (“Target Annual Bonus”), based upon performance
criteria established by the Board in its sole discretion, and notwithstanding the foregoing, shall be payable in the sole discretion of
the Board. Each such Annual Bonus shall be paid no later than March 15 of the year following the year for which the Annual Bonus is earned,
unless Executive shall elect to defer the receipt of such Annual Bonus pursuant to a Company-sponsored deferred compensation plan in effect
or the bonus plan provides for a different payment date.

 

(c)            Expenses. Executive shall be entitled to receive prompt reimbursement for all reasonable and necessary expenses incurred
by Executive in performing services hereunder, including all travel and living expenses while away from home on business or at the request
of and in the service of the Company, provided that such expenses are incurred and accounted for in accordance with the policies and procedures
established by the Company. Notwithstanding any provision of this Agreement to the contrary, the amount of expenses for which Executive
is eligible to receive reimbursement during any given taxable year of Executive shall not affect the amount of expenses for which Executive
is eligible to receive reimbursement during any other taxable year of Executive. Reimbursement of expenses under this Section 4(c) shall
be made within thirty (30) days following submission of a completed expense reimbursement form (but in no event later than the last day
of the calendar year following the calendar year in which the expense was incurred). The right to reimbursement pursuant to this Section 4(c)
is not subject to liquidation or exchange for another benefit.

 

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(d)           Benefits.
Executive shall be eligible to participate in or receive benefits under any group health or other executive benefit plan or arrangement
made available by the Company to its senior executive officers, subject to and on a basis consistent with the terms, conditions and overall
administration of such plans and arrangements.

 

(e)           Vacations.
Executive shall be entitled to a minimum of four weeks paid vacation and holidays in accordance with the policies, programs and practices
of the Company as in effect from time to time.

 

(f)            Restricted
Stock and Options and other Equity Compensation. Upon Execution of this Agreement, Executive will be granted the long-term incentive
awards described on Appendix A to this Agreement. Executive also shall participate in any annual or special equity compensation or long-term
compensation plans and programs made available to the senior executive officers of the Company.

 

(g)           Change
of Control Bonus. Upon Execution of this Agreement, Executive will be eligible for the change of control bonus described in Appendix
C to this Agreement (the “Change of Control Bonus”), subject to and in accordance with the terms and conditions
set forth on Appendix C.

 

5.             Termination.
Executive’s employment hereunder may be terminated during the Employment Term under the following circumstances:

 

(a)            Death. Executive’s employment hereunder shall terminate upon Executive’s death.

 

(b)           Disability. Executive’s status as an executive and employee of the Company may be terminated for “Disability”,
and Executive will be deemed “Disabled”, if Executive shall have been unable to substantially perform Executive’s
duties as an executive of the Company or any subsidiary thereof as a result of sickness or injury, with or without reasonable accommodation,
and shall have remained unable to perform any such duties for a period of more than 120 days in any 12-month period. If the Company determines
that Executive has become Disabled, the Company shall notify Executive of its determination. Executive may then request an accommodation
from the Company to assist in his/her return to work. The Company will determine whether Executive’s request can be accommodated
without undue hardship no later than 30 days after Executive requests an accommodation. In the event Executive’s request cannot
be accommodated, the Company may, by notice given in the manner provided in this Agreement, terminate the status of Executive as an executive
and employee of the Company. Any such termination shall become effective 30 days after such notice of termination is given, unless within
such 30-day period, Executive becomes capable of rendering services of the character contemplated hereby (and a physician chosen by the
Company so certifies in writing) and Executive in fact resumes such services.

 

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(c)           Cause. The Company may terminate Executive’s employment with or without Cause. For purposes of this Agreement, “Cause”
shall mean Executive’s:

 

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

 

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

 

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

 

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

 

(v)            conviction
of a felony involving moral turpitude;

 

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

 

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

 

For purposes of this definition, no act, or failure
to act, by Executive will be considered “willful” if done, or omitted to be done, by Executive in good faith and in the reasonable
belief that the act or omission was in the best interest of the Company or required by applicable law.

 

Any termination during the Employment Term by
the Company for Cause shall be communicated by Notice of Termination to the other party hereto given in accordance with Section 9 of this
Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated and (iii)
if the Date of Termination (as defined below) is other than the date of receipt of such notice, specifies the termination date (which
date shall be not more than 30 days after the giving of such notice). The failure by the Company to set forth in the Notice of Termination
any fact or circumstance which contributes to a showing of Cause shall not waive any right of the Company from asserting such fact or
circumstance in enforcing Executive’s or the Company’s rights hereunder. “Date of Termination” shall
mean the date that employment with the Company and its affiliates is terminated in all respects for any reason.

 

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(d)           Good Reason. Executive may terminate Executive’s employment without Good Reason or for Good Reason. For purposes of
this Agreement, the term “Good Reason” shall mean without the express written consent of Executive, the occurrence
of any of the following:

 

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

 

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

 

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

 

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

 

(v)            in the event a Change of Control (as defined in Section 6(b)(v)) has occurred, the assignment to Executive to any position (including
status, offices, titles and reporting requirements), authority, duties or responsibilities that are not (A) as a senior executive officer
with the ultimate parent company of the entity surviving or resulting from such Change of Control and (B) substantially identical to Executive’s
position (including status, offices, titles and reporting requirements), authority, duties and responsibilities as contemplated by this
Agreement.

 

Notwithstanding anything herein to the contrary,
the interim assignment of Executive’s position, authority, duties, or responsibilities to any person while Executive is absent from
his duties during any of the 120 days set forth under the definition of Disability shall not constitute a Good Reason for Executive to
terminate his employment with the Company. In addition, Executive’s termination of employment shall not constitute Good Reason unless
Executive notifies the Company of the condition or event constituting Good Reason within ninety days (90) days of the condition’s
occurrence (unless unknown to Executive) and the Company fails to cure the conditions, to the extent curable, specified in the notice
within thirty (30) days following such notification, and such termination occurs no later than 60 days following expiration of such cure
period. Any termination during the Employment Term by Executive for Good Reason shall be communicated by Notice of Termination to the
other party hereto given in accordance with Section 9 of the Agreement.

 

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6.             Compensation
Upon Termination. In the event that Executive’s employment under this Agreement terminates during the Employment Term for any
reason, the Company will pay to Executive (a) subject to Section 10 (Compliance with Section 409A of the Code), in a single lump
sum payment, in accordance with the normal payroll practices of the Company (or such earlier date as may be required by applicable law),
the aggregate amount of (i) any earned but unpaid Base Salary and (ii) accrued but unpaid vacation pay through the Date of Termination;
(b) in accordance with Section 4(c) above, any unreimbursed business expenses incurred prior to the Date of Termination that are
reimbursable in accordance with Section 4(c) above, and (c) such employee benefits, if any, as to which Executive may be entitled pursuant
to the terms governing such benefits, payable in accordance with the terms of the applicable plan or other arrangement governing such
benefits (collectively, the “Accrued Obligations”). Payment of the Accrued Obligations shall be the only compensation
paid to Executive under this Agreement in the event of termination of employment due to death or Disability.

 

(a)           For
Cause or Without Good Reason. If Executive’s employment is terminated by the Company for Cause or by Executive without Good
Reason, the Company shall pay Executive the Accrued Obligations, and the Company shall have no further obligations to Executive under
this Agreement.

 

(b)           Without
Cause or For Good Reason Not in Contemplation of a Change of Control. If Executive’s employment is terminated by the Company
without Cause (other than for Disability) or by Executive for Good Reason, and in each case not “in connection with a Change of
Control” (as defined in Section 6(b)(v)), in addition to payment of the Accrued Obligations, Executive shall be entitled to the
following additional benefits (collectively, the “Other Benefits”):

 

(i)             Executive shall be entitled to receive a single lump sum payment of the following, which amount shall be paid at the time provided
in Section 6(d):

 

A.           Any
earned but unpaid Annual Bonus related to the calendar year prior to the calendar year in which the Date of Termination occurs plus;

 

B.           the product of (x) the Target Annual Bonus for the fiscal year during which termination of employment occurs, and (y) a fraction,
the numerator of which is the number of days in the current fiscal year through the Date of Termination, and the denominator of which
is 365.

 

C.           An
amount equal to the Severance Multiple (as defined in Section 6(b)(vi) multiplied by the sum of (1) Executive’s Base Salary (at
the rate in effect as of the Date of Termination) and the Target Annual Bonus for the fiscal year during which termination of employment
occurs.

 

(ii)           All
benefits under the Company’s equity or long-term incentive compensation plan, including all stock options, restricted stock units
and restricted stock held by Executive, not already vested, shall be 100% vested.

 

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(iii)           For a period of 18 months from Executive’s Date of Termination the Company shall continue to provide to Executive and/or
Executive’s dependents the same level of medical and dental benefits equal to those which would have been provided to them in accordance
with the plans, programs, practices and policies described in Section 4(d) of this Agreement if Executive’s employment had not been
terminated and shall reimburse Executive for the premiums Executive pays for such medical and dental benefits for up to 18 months
following the Date of Termination as provided in Section 6(f), and provided further, that if Executive becomes re-employed by another
employer and is eligible to receive medical or dental benefits under another employer provided plan, the medical or dental benefits described
herein shall be secondary to those provided under such other plan during such applicable period of eligibility.

 

(iv)          A
termination shall be deemed to be “in connection with a Change of Control” if such termination occurs during the period beginning
on the date that is (1) twelve (12) months prior to a Change of Control occurring and (2) ending on the second anniversary of the date
of consummation of the Change of Control.

 

(v)           “Change
of Control” shall mean:

 

A.          The
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50 percent or more of either (A) the then outstanding shares of common
stock or membership interests of the Company (the “Outstanding Company Common Stock”) or (B) the combined voting
power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors or managers (the
 “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection A, the following
acquisitions shall not constitute a Change of Control: (1) any acquisition directly from the Company or any acquisition by the Company;
or (2) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled
by the Company; or (3) any acquisition by any corporation pursuant to a transaction that complies with clauses (1), (2) and (3) of subsection
C of this definition; or

 

B.           Individuals, who, as of the Effective Date (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 stockholders or members, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be considered as though such individual was a member of the Incumbent Board, but excluding,
for purpose of this Section 6(b)(v)(B)(2), any such individual whose initial assumption of office occurs as a result of an actual
or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies
or consents by or on behalf of a Person other than the Board; or

 

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C.           Consummation
of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company (a
 “Corporate Transaction”) in each case, unless, following such Corporate Transaction, (1) all or substantially
all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such Corporate Transaction beneficially own, directly or indirectly, more than 60 percent
of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Corporate Transaction
(including, without limitation, a corporation that as a result of such transaction owns the Company or all or substantially all of the
Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Corporate Transaction, of the Outstanding Company Common Stock and the Outstanding Company Voting Securities,
as the case may be, (2) no Person (excluding any corporation resulting from such Corporate Transaction or any employee benefit plan (or
related trust) of the Company or such corporation resulting from such Corporate Transaction) beneficially owns, directly or indirectly,
20 percent or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Corporate Transaction
or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership existed
prior to the Corporate Transaction and (3) at least a majority of the members of the board of directors of the corporation resulting
from such Corporate Transaction were members of the Incumbent Board at the time of the execution of the initial agreement, or of the
action of the Board, providing for such Corporate Transaction; or

 

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

 

(vi)          “Severance Multiple”, for purposes of calculating the Other Benefits due under this Section 6(b), shall
be two (2) times, and for purposes of calculating the Other Benefits due under Section 6(c) shall be two and one half (2.5) times. In
addition, target Annual Bonus for purpose of calculating the Other Benefits due under Section 6(c) shall mean the target Annual Bonus
for the fiscal year in which termination of employment occurred.

 

(c)            Without
Cause or For Good Reason in Contemplation of a Change of Control. If Executive’s employment is terminated by the Company without
Cause or by Executive for Good Reason, and in each case “in connection with a Change of Control”, in addition to the payment
of the Accrued Obligations, Company shall pay to Executive the Other Benefits (based on the Severance Multiple specified in Section 6(b)(vi)).

 

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(d)            Release of Claims. Notwithstanding any other provisions of this Agreement to the contrary, in consideration for receiving
the severance benefits described in Section 6(b) or (c), Executive hereby agrees to execute (and not revoke) a release in substantially
the form attached hereto as Appendix B (the “Release”). If Executive is not a “specified employee”
within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and Final Department
of Treasury Regulations issued thereunder (collectively, “Section 409A”) at the time of termination of Executive’s
employment (“Specified Employee”), and Executive has timely signed and delivered to the Company, by the deadline
established by the Company, the Release, which has become irrevocable by the time set forth below, the Company shall pay Executive the
lump sum cash severance benefits described in Section 6(b) or (c) on the date that is sixty (60) days following the date of Executive’s
 “separation from service” within the meaning of Section 409A (“Separation From Service”). In the
event that Executive is a Specified Employee and Executive has timely signed and delivered to the Company, by the deadline established
by the Company, the Release, which has become irrevocable by the time set forth below, the Company shall pay Executive the lump sum cash
severance benefits described in Section 6(b) or (c) on the date that is sixty (60) days following the date of Executive’s Separation
From Service (or, with respect to the portion thereof, if any, that the Company reasonably determines would be subject to Section 409A
under the terms of the Prior Agreement or this Agreement, payable on the date that is six (6) months following the date of Executive’s
Separation From Service). Whether Executive is or is not a Specified Employee, Executive will not be paid the lump sum cash severance
benefits described in Section 6(b) or (c) or entitled to the benefits described in Section 6(b)(ii) or (iii) (except for Executive’s
rights under section 4980B of the Code and the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”))
and Executive shall forfeit any right to such payments and benefits, unless (i) Executive has signed and delivered to the Company
the Release and (ii) the period for revoking the Release shall have expired (in the case of both clauses (i) and (ii)) prior to the date
that is 60 days following the date of Executive’s Separation From Service. If Executive fails to properly execute and deliver such
release (or revokes the Release), Executive agrees that Executive shall not be entitled to receive the severance benefits described in
Section 6(b) or (c) or entitled to the benefits described in Section 6(b)(ii) or (iii) (other than COBRA benefits). For purposes
of this Agreement, a Release shall be considered to have been executed by Executive if it is signed by Executive’s legal representative,
in the case of Executive’s Disability or on behalf of Executive’s estate in the case of Executive’s death.

 

(e)            Termination
of Offices and Directorships. Upon termination of Executive’s employment for any reason, unless otherwise specified in a written
agreement between Executive and the Company, Executive shall be deemed to have resigned from all offices, directorships, and other employment
positions then held with the Company or its affiliates, if any, and shall take all actions reasonably requested by the Company to effectuate
the foregoing.

 

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(f)            Reimbursement of Premiums. During the period that the Company is required to continue coverage in the Company’s group
medical plan and the Company’s group dental plan (collectively, the “Group Plan”) as provided in Section 6(b)(iii)
and Executive continues and pays the premium for such coverage to continue Executive’s and any qualifying dependent’s Group
Plan coverage (“Coverage”) the Company will reimburse Executive the amount of the cost of the Coverage for up
to 18 months Executive maintains such Coverage. Any reimbursements by the Company to Executive required under this Section 6(f) shall
be made on the last day of each month Executive pays the amount required for such Coverage, for up to the first 18 months of Coverage.
If Executive is a Specified Employee at the time of termination and the benefits specified in this Section 6(f) are taxable to Executive
and not otherwise exempt from Section 409A then any amounts to which Executive would otherwise be entitled under this Section 6(f)
during the first six months following the date of Executive’s Separation From Service shall be accumulated and paid to Executive
on the date that is six months following the date of Executive’s Separation From Service. Except for any reimbursements under the
applicable Group Plan that are subject to a limitation on reimbursements during a specified period, the amount of expenses eligible for
reimbursement under this Section 6(f), or in-kind benefits provided, during Executive’s taxable year shall not affect the expenses
eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year of Executive. Executive’s right to reimbursement
or in-kind benefits pursuant to this Section 6(f) shall not be subject to liquidation or exchange for another benefit.

 

7.             Nondisclosure and Noncompetition.

 

(a)           Certain Definitions. For purposes of this Agreement, the following terms shall have the following meanings:

 

(i)             “Confidential Information” means any information, knowledge or data of any nature and in any form (including
information that is electronically transmitted or stored on any form of magnetic or electronic storage media) relating to the past, current
or prospective business or operations of the Company, that is not generally known to persons engaged in a business similar to that conducted
by the Company, whether produced by the Company or any of its consultants, agents or independent contractors or by Executive, and whether
or not marked confidential. Confidential information does not include information that (1) at the time of disclosure is, or thereafter
becomes, generally available to the public, (2) prior to or at the time of disclosure was already in the possession of Executive, (3)
is obtained by Executive from a third party not in violation of any contractual, legal or fiduciary obligation to the Company with respect
to that information or (3) is independently developed by Executive, but not including the confidential information provided by the Company.

 

(ii)           “Restricted Business” means the oil and natural gas land contract drilling business conducted in
the United States of America.

 

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

 

(c)            Covenant Not to Compete. In consideration of the provision of the Confidential Information during the term of this Agreement
and the stock options, restricted stock and restricted stock unit awards and other compensation provided herein, Executive agrees that
during the period of his employment by the Company and, if Executive’s employment is terminated hereunder for any reason prior to
expiration of the Employment Term, during the twenty-four (24) month period following the Date of Termination:

 

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

 

(ii)           Executive shall not, directly or indirectly (other than in the performance of Executive’s duties under this Agreement) (A)
solicit any individual, who, at the time of time of such solicitation is an executive of the Company or its affiliates, to leave such
employment or hire, employ or otherwise engage any such individual (other than employees of the Company or its affiliates who respond
to general advertisements for employment in newspapers or other periodicals of general circulation (including trade journals)), or (B) cause,
induce or encourage any material actual or prospective client, customer, supplier, landlord, lessor or licensor of the Company or its
affiliates to terminate or modify any such actual or prospective contractual relationship that exists on the Date of Termination.

 

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(d)           Injunctive Relief; Remedies. The covenants and undertakings contained in this Section 7 relate to matters which are of a
special, unique and extraordinary character and a violation of any of the terms of this Section 7 will cause irreparable injury to the
Company, the amount of which will be impossible to estimate or determine and which cannot be adequately compensated. Accordingly, the
remedy at law for any breach of this Section 7 may be inadequate. Therefore, notwithstanding anything to the contrary, the Company will
be entitled to an injunction, restraining order or other equitable relief from any court of competent jurisdiction in the event of any
breach of any provision of this Section 7 without the necessity of proving actual damages or posting any bond whatsoever. The rights and
remedies provided by this Section 7 are cumulative and in addition to any other rights and remedies which the Company may have hereunder
or at law or in equity. The parties hereto further agree that, if any court of competent jurisdiction in a final nonappealable judgment
determines that a time period, a specified business limitation or any other relevant feature of this Section 7 is unreasonable, arbitrary
or against public policy, then a lesser time period, geographical area, business limitation or other relevant feature which is determined
by such court to be reasonable, not arbitrary and not against public policy may be enforced against the applicable party.

 

(e)           Governing
Law of this Section 7; Consent to Jurisdiction. Any dispute regarding the reasonableness of the covenants and agreements set forth
in this Section 7, or the territorial scope or duration thereof, or the remedies available to the Company upon any breach of such covenants
and agreements, shall be governed by and interpreted in accordance with the laws of the state in which the prohibited competing activity
or disclosure occurs, and, with respect to each such dispute, the Company and Executive each hereby irrevocably consent to the exclusive
jurisdiction of the State of Texas for resolution of such dispute, and further agree that service of process may be made upon Executive
in any legal proceeding relating to this Section 7 by any means allowed under the laws of such state.

 

(f)            Executive’s
Understanding of this Section. Executive hereby represents to the Company that Executive has read and understands, and agrees to
be bound by, the terms of this Section 7. Executive acknowledges that the geographic scope and duration of the covenants contained in
Section 7(c) are the result of arm’s-length bargaining and are fair and reasonable in light of (i) the importance of the functions
performed by Executive and the length of time it would take the Company to find and train a suitable replacement, (ii) the nature
and wide geographic scope of the operations of the Company, (iii) Executive’s level of control over and contact with the Company’s
business and operations in all jurisdictions where they are located, and (iv) the fact that the Restricted Business is conducted throughout
the geographic area where competition is restricted by this Agreement. It is the desire and intent of the parties that the provisions
of this Agreement be enforced to the fullest extent permitted under applicable law, whether now or hereafter in effect and therefore,
to the extent permitted by applicable law, the parties hereto waive any provision of applicable law that would render any provision of
this Section 7 invalid or unenforceable.

 

    12 

     

    

 

8.             
Certain Tax Matters.

 

(a)            Notwithstanding any other provision of this Agreement to the contrary and except as otherwise provided in Appendix C, if any portion
of the payments or benefits provided to or for the benefit of Executive under this Agreement or which Executive otherwise receives or
is entitled to receive from the Company or any successor would be subject to the excise tax imposed by Section 4999 of the Code,
or any interest, penalties or additions to tax with respect to such excise tax (such excise tax, together with any interest, penalties
or additions to tax with respect to such excise tax, is herein collectively referred to as the “Excise Tax”),
all such payments and benefits being collectively referred to herein as the “Total Payments”, then, except as
otherwise provided in Section 8(b), the Total Payments shall be reduced (but not below zero) or eliminated (as further provided for
in Section 8(c)) to the extent the Independent Tax Advisor (as hereinafter defined) shall reasonably determine is necessary so that no
portion of the Total Payments shall be subject to the Excise Tax.

 

(b)           Notwithstanding
the provisions of Section 8(a) and except as otherwise provided in Appendix C, if the Independent Tax Advisor reasonably determines that
Executive would receive, in the aggregate, a greater amount of the Total Payments on an after-tax basis (after including and taking into
account all applicable federal, state, and local income, employment and other applicable taxes and the Excise Tax) if the Total Payments
were not reduced or eliminated pursuant to Section 8(a), then no such reduction or elimination shall be made notwithstanding that
all or any portion of the Total Payments may be subject to the Excise Tax.

 

(c)            For
purposes of determining which of Section 8(a) and Section 8(b) shall be given effect, the determination of which of the Total Payments
shall be reduced or eliminated to avoid the Excise Tax shall be made by the Independent Tax Advisor, provided that the Independent Tax
Advisor shall reduce or eliminate, as the case may be, the Total Payments in the following order (and within the category described in
each of the following Sections 8(c)(i) through 8(c)(v), in reverse order beginning with the Total Payments which are to be paid farthest
in time except as otherwise provided in Section 8(c):

 

(i)             by first reducing or eliminating the portion of the Total Payments otherwise due and which are not payable in cash (other than
that portion of the Total Payments subject to Sections 8(c)(iv) and 8(c)(v));

 

(ii)            then by reducing or eliminating the portion of the Total Payments otherwise due and which are payable in cash (other than that
portion of the Total Payments subject to Sections 8(c)(iii);

 

(iii)           then by reducing or eliminating the portion of the Total Payments otherwise due to or for the benefit of Executive pursuant to
the terms of this Agreement and which are payable in cash;

 

(iv)           then
by reducing or eliminating the portion of the Total Payments otherwise due that represent equity-based compensation, such reduction or
elimination to be made in reverse chronological order with the most recent equity-based compensation awards reduced first; and

 

(v)           then
by reducing or eliminating the portion of the Total Payments otherwise due to or for the benefit of Executive pursuant to the terms of
this Agreement and which are not payable in cash.

 

    13 

     

    

 

(d)           The
Independent Tax Advisor shall provide its determinations, together with detailed supporting calculations and documentation, to the Company
and Executive for their review as requested by the Company or Executive. The determinations of the Independent Tax Advisor under this
Section 8 shall, after due consideration of the Company’s and Executive’s comments with respect to such determinations and
the interpretation and application of this Section 8, be final and binding on all parties hereto absent manifest error. The Company and
Executive shall furnish to the Independent Tax Advisor such information and documents as the Independent Tax Advisor may reasonably request
in order to make the determinations required under this Section 8.

 

(e)            For
purposes of this Section 8 and Appendix C, “Independent Tax Advisor” shall mean a lawyer with a nationally
recognized law firm, a certified public accountant with a nationally recognized accounting firm, or a compensation consultant with a
nationally recognized actuarial and benefits consulting firm, in each case with expertise in the area of executive compensation tax law,
who shall be selected by the Company and shall be acceptable to Executive (Executive’s acceptance not to be unreasonably withheld),
and all of whose fees and disbursements shall be paid by the Company.

 

9.             Notice.
All notices hereunder must be in writing and shall be deemed to have been given when personally delivered to the designated individual,
or (unless otherwise specified) mailed or sent by (a) United States certified or registered mail, postage prepaid, return receipt
requested, (c) a nationally recognized overnight courier service with confirmation of receipt or (d) facsimile transmission with confirmation
of receipt.

 

All such notices must be addressed
as follows or to such other address as to which any party hereto may have notified the other in writing.

 

To the Company:

 

20475 Hwy 249, Suite 300

Houston, Texas 77070

Attn: Chairman of the Board

 

Copy: General Counsel

 

To Executive:

 

At Executive’s then current address
shown in the Company’s records.

 

or to such other address as any party may have
furnished to the others in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

 

    14 

     

    

 

10.           Compliance with Section 409A of the Code.

 

(a)            Notwithstanding
anything to the contrary in this Agreement, no compensation or benefits, including without limitation the severance payments and benefits
under Section 6 will be paid to Executive if Executive is a Specified Employee until the six-month anniversary of Executive’s Separation
From Service to the extent that paying such amounts at the time or times indicated in this Agreement would result in a prohibited distribution
under Section 409A(a)(2)(B)(i) of the Code.

 

(b)           To
the extent applicable, this Agreement shall be interpreted and applied consistent and in accordance with Section 409A. The parties agree
to act in good faith in complying with the requirements of Section 409A. For purposes of this Agreement, all references to “termination”,
 “termination of employment”, Date of Termination and correlative phrases shall mean a Separation From Service. In the event
additional regulations or other guidance are issued under Section 409A or a court of competent jurisdiction provides additional authority
concerning the application of Section 409A with respect to the payments described in this Agreement, then the parties agree to act in
good faith to amend the provisions of this Agreement to permit such payments to be made at the earliest time permitted under such additional
regulations, guidance or authority that as closely as practicable achieves the original intent of this Agreement. Each payment under
this Agreement as a result of a Separation From Service shall be considered a separate payment for purposes of Section 409A.

 

(c)            To
the extent permitted under Section 409A, any separate payment or benefit under this Agreement or otherwise shall not be deemed “nonqualified
deferred compensation” subject to Section 409A to the extent provided in the exceptions in Treasury Regulation §1.409A-1(b)(9)
or any other applicable exception or provision of Section 409A.

 

(d)           To
the extent that any payments or reimbursements provided to Executive under this Agreement are deemed to constitute compensation to which
Treasury Regulation §1.409A-3(i)(1)(iv) would apply, such amounts shall be paid or reimbursed to Executive reasonably promptly,
but not later than December 31 of the year following the year in which the expense was incurred. The amounts of any such payments eligible
for reimbursement in one year shall not affect the payments or expenses that are eligible for payment or reimbursement in any other taxable
year, and Executive’s right to such payments or reimbursement shall not be subject to liquidation or exchange for any other benefit.

 

11.           Miscellaneous.

 

(a)           Withholding. All amounts payable under this Agreement will be subject to reduction to reflect such federal, state, local
or foreign taxes as will be required to be withheld pursuant to any applicable law or regulation.

 

(b)           Successors; Binding Agreement. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon
the parties hereto and their respective successors and permitted assigns, including Executive’s estate and legal representatives.
Neither this Agreement nor any rights, interests or obligations hereunder may be assigned by any party hereto without the prior written
consent of the other parties hereto; provided that the Company may assign any rights, interests or obligations hereunder to any successor
(whether direct or indirect, by merger, purchase, consolidation or otherwise) to all or substantially all of the business and/or assets
of the Company. The Company agrees to require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the
same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in
this Agreement, “Company” shall mean the Company as hereinbefore defined any successor to its business and/or assets as aforesaid
which assume and agrees to perform this Agreement by operation of law or otherwise.

 

    15 

     

    

 

(c)           Waiver.
No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing
signed by Executive and an authorized representative of the Company. No waiver by either party hereto at any time of any breach by the
other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations,
oral or otherwise express or implied, with respect to the subject matter hereof have been made by either party which are not set forth
expressly in this Agreement.

 

(d)           Validity. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity
or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

 

(e)           Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original,
but all of which together shall constitute one and the same instrument.

 

(f)            Entire
Agreement. This Agreement sets forth the entire agreement of the parties hereto in respect of the subject matter contained herein
and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or
written, by any officer, Executive or representative of any party hereto; and any prior agreement of the parties hereto in respect of
the subject matter contained herein is hereby terminated and canceled.

 

(g)           Governing Law. This Agreement has been made and entered into and shall be governed by the internal laws of the State of
Texas without regard to principles of conflict of laws, except as expressly provided in Section 7(e) above with respect to the resolution
of disputes arising under, or the Company’s enforcement of, Section 7.

 

(h)           Jurisdiction.
If any party commences a lawsuit or other proceeding related to or arising from this Agreement, the parties hereto agree that the State
District Court in Houston, Harris County Texas shall have sole and exclusive jurisdiction over any such proceeding. The State District
Court shall be the proper venue for any such lawsuit or judicial proceeding and the parties hereto waive any objection to such venue.
The parties consent to and agree to submit to the jurisdiction of the court specified herein and agree to accept service of process to
vest personal jurisdiction over them in the State District Court of Harris County Texas.

 

(i)            Severability.
The invalidity or unenforceability of any provision or provisions of this Agreement will not affect the validity or enforceability of
any other provision of this Agreement, which will remain in full force and effect.

 

(j)            Amendment. It is understood and agreed that, upon the Effective Date, this Employment Agreement amends and restates and
supersedes in its entirety any prior Employment Agreement between the Company, its affiliates and predecessors and Executive, including
the Prior Agreement.

 

[Signature page follows]

 

    16 

     

    

 

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

 

	 	 	COMPANY:
	 	 	 
	 	 	INDEPENDENCE CONTRACT DRILLING, INC.
	 	 	 
	Date: 	March 18, 2022	 	By: 	/s/ Philip A. Choyce
	 	 	Name: Philip A. Choyce
	 	 	Title: Executive Vice President & Chief Financial Officer
	 	 	 
	 	 	EXECUTIVE:
	 	 	 
	Date:	March 18, 2022	 	/s/ J. Anthony Gallegos, Jr.
	 	 	J. Anthony Gallegos, Jr.

 

    17 

     

    

 

APPENDIX A

 

EQUITY COMPENSATION AWARDED ON EFFECTIVE
DATE

 

654,001 Restricted Stock Units: 1/3 vesting on
1st anniversary, 1/3 12/31/23, 1/3 12/31/24

 

227,478 Stock Appreciation Rights with $5.19 Strike
Price, 1/3 vesting on 1st anniversary, remaining 2/3 vesting in quarterly increments over final two-year vesting period

 

25% lockup until fourth anniversary, unless change
of control, or termination without cause or for good reason

 

    18 

     

    

 

APPENDIX
B

AGREEMENT AND RELEASE

 

This Agreement and Release
(“Release”) is entered into between you, the undersigned employee, and Independence Contract Drilling, Inc. (the “Company”).
You have [__] days to consider this Release, which you agree is a reasonable amount of time. While you may sign this Release prior
to the expiration of this [___]-day period, you are not to sign it prior to the date of your termination of employment with the
Company.

 

1.             
Definitions.

 

(a)           “Released
Parties” means the Company and its past, present and future parents, subsidiaries, divisions, successors, predecessors, employee
benefit plans and affiliated or related companies, and also each of the foregoing entities’ past, present and future owners, officers,
directors, stockholders, investors, partners, managers, principals, members, committees, administrators, sponsors, executors, trustees,
fiduciaries, employees, agents, assigns, representatives and attorneys, in their personal and representative capacities. Each of the
Released Parties is an intended beneficiary of this Release.

 

(b)           “Claims”
means all theories of recovery of whatever nature, whether known or unknown, recognized by the law or equity of any jurisdiction. It
includes but is not limited to any and all actions, causes of action, lawsuits, claims, complaints, petitions, charges, demands, liabilities,
indebtedness, losses, damages, rights and judgments in which you have had or may have an interest. It also includes but is not limited
to any claim for wages, benefits or other compensation. It also includes but is not limited to claims asserted by you or on your behalf
by some other person, entity or government agency.

 

2.             
Consideration. The Company agrees to pay you the consideration set forth in sections 6 and 8 of Executive Employment Agreement
between you and the Company dated as of [_________] (the “Employment Agreement”). The Company will make
such payments to you at the times set forth in the Employment Agreement. You acknowledge that the payment that the Company will make to
you in consideration for this Release is in addition to anything else of value to which you are entitled and that the Company is not otherwise
obligated to make this payment to you.

 

3.             
Release of Claims.

 

(a)           You
 – on behalf of yourself and your heirs, executors, administrators, legal representatives, successors, beneficiaries, and assigns
 – unconditionally release and forever discharge the Released Parties from, and waive, any and all Claims that you have or may have
against any of the Released Parties arising from your employment with the Company, the termination thereof, and any other acts or omissions
occurring on or before the date you sign this Release; provided, however, that this Agreement shall not operate to release any
Claims that you may have to payments or benefits under Section 6 of the Employment Agreement, including Appendix C, or any rights you
may have to indemnification under any indemnification agreement between you and the Company or any of its affiliates, or the bylaws or
any directors and officers liability insurance policy of the Company or any of its affiliates (collectively, the “Unreleased Claims”).

 

    19 

     

    

 

(b)           The
release set forth in Paragraph 3(a) includes, but is not limited to, any and all Claims under (i) the common law (tort, contract or other)
of any jurisdiction; (ii) the Rehabilitation Act of 1973, the Age Discrimination in Employment Act, the Americans with Disabilities Act,
Title VII of the Civil Rights Act of 1964, and any other federal, state and local statutes, ordinances, executive orders and regulations
prohibiting discrimination or retaliation upon the basis of age, race, sex, national original, religion, disability, or other unlawful
factor; (iii) the National Labor Relations Act; (iv) the Employee Retirement Income Security Act; (v) the Family and Medical Leave Act;
(vi) the Fair Labor Standards Act; (vii) the Equal Pay Act; (viii) the Worker Adjustment and Retraining Notification Act; and (ix) any
other federal, state or local law.

 

(c)            In
furtherance of this Release, you promise not to bring any Claims (other than Unreleased Claims) against any of the Released Parties in
or before any court or arbitral authority.

 

4.             
Confidentiality. You agree that you will not reveal, or cause to be revealed, this Release or its terms to any third party
(other than your attorney, tax advisor, or spouse), except as required by law.

 

5.             
Acknowledgment. You acknowledge that, by entering into this Release, the Company does not admit to any wrongdoing in connection
with your employment or termination, and that this Release is intended as a compromise of any Claims you have or may have against the
Released Parties. You further acknowledge that you have carefully read this Release and understand its final and binding effect, have
had a reasonable amount of time to consider it, and are entering this Release voluntarily. You acknowledge that the Company has advised
you in writing to seek the advice of legal counsel prior to executing this release, and that you have had the opportunity to seek legal
counsel of your choosing.

 

6.             
Applicable Law. This Release shall be construed and interpreted pursuant to the laws of Texas without regard to its choice
of law rules.

 

7.             
Severability. Each part, term, or provision of this Release is severable from the others. Notwithstanding any possible future
finding by a duly constituted authority that a particular part, term, or provision is invalid, void, or unenforceable, this Release has
been made with the clear intention that the validity and enforceability of the remaining parts, terms and provisions shall not be affected
thereby. If any part, term, or provision is so found invalid, void or unenforceable, the applicability of any such part, term, or provision
shall be modified to the minimum extent necessary to make it or its application valid and enforceable.

 

8.             
Effective Date. You acknowledge that you have seven (7) days after execution to revoke this Release, and that this
Release shall not become final and binding until the expiration of seven (7) days after execution.

 

    20 

     

    

 

IN
WITNESS WHEREOF, the parties have executed this Release on the date set forth below.

 

	EXECUTIVE:	 	 
	 	 	 	 
	 	 	Date: [_______________, 20___]
	J. Anthony Gallegos, Jr.	 	 
	 	 	 	 
	COMPANY:	 	 
	 	 	 	 
	INDEPENDENCE CONTRACT DRILLING, INC.	 	 
	 	 	 	 
	Date: [_______________, 20___]	 	 
	 	 	 	 
	By:	                         	 	 
	Name:	 	 	 
	Title:	 	 	 

 

    21 

     

    

 

APPENDIX C

 

CHANGE OF CONTROL BONUS

 

Executive shall be entitled
to receive a cash bonus (a “Change of Control Bonus”), determined by reference to a specified number of shares
of Company common stock, in connection with a Qualified Change of Control (as defined below) with respect to which the Determination Date
(as defined below) occurs during a Performance Period (as defined below), subject to the terms and conditions of this Appendix C and the
Agreement. Any capitalized terms that are used but not defined in this Appendix C shall have the meanings ascribed to such terms in the
Agreement.

 

		1.	Definitions.

 

(a)            “Change of Control Closing Date” means the date that a Qualified Change of Control is consummated.

 

(b)           “Definitive
Agreement” means a binding merger, purchase or sale agreement (or other similar definitive document) that is approved by
the Board, pursuant to which the Company agrees to consummate a transaction that would constitute a Qualified Change of Control.

 

(c)            “Determination
Date” means the date upon which the Company enters into a Definitive Agreement; provided, however, that the
consummation of such transaction may be subject to ordinary and customary closing conditions and contingencies, including, without limitation,
antitrust and other legal approvals, shareholder approvals, third party consents, fiduciary outs, and financing and market contingencies;
provided further, that in the event the Determination Date is being determined in connection with a Qualified Change of Control
occurring as a result of a Tender Offer, the Determination Date shall mean the date upon which such Tender Offer commences; and provided
further, in the event of any Qualified Change of Control in connection with which the Company does not enter into a Definitive Agreement
relating thereto, or a Tender Offer, the Determination Date shall be the date on which such Qualified Change of Control is consummated.

 

(d)           “Effective
Date” means March 18, 2022.

 

(e)           “Performance Period” means each of Performance Period 1 and Performance Period 2.

 

(f)            “Performance Period 1” means the 18-month period commencing on the Effective Date (subject to adjustment
as set forth below).

 

(g)           “Performance
Period 2” means the 18-month period immediately following the completion of Performance Period 1 (subject to adjustment
as set forth below).

 

    22 

     

    

 

(h)           “Qualified Change of Control” means the occurrence of any of the following, in each case within five
years following the Effective Date:

 

(i)             any
 “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934
(the “Exchange Act”), but excluding any employee benefit plan of such person or its subsidiaries, and any person
or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan), other than the Permitted Holders
(as defined in the Indenture, dated as of March 18, 2022, by and among U.S. Bank Trust Company, National Association, as trustee and
collateral agent, the Company and the guarantor named therein(the “Indenture”)), becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a person or group shall be deemed to have “beneficial
ownership” of all securities that such person or group has the right to acquire, whether such right is exercisable immediately
or only after the passage of time (such right, an “option right”)), directly or indirectly, of more than a majority of the
equity securities of the Company entitled to vote for members of the Board or equivalent governing body of the Company on a fully-diluted
basis (and taking into account all such securities that such person or group has the right to acquire pursuant to any option right)(for
purposes of clarification, “on a fully-diluted basis” shall exclude any equity securities issuable pursuant to rights to
acquire such equity securities that do not entitle such holders to acquire such equity securities of the Company entitled to vote for
members of the Board or equivalent governing body of the Company within 60 days, including the Notes and Pre-Funded Warrants (each as
defined in the Indenture)); or

 

(ii)            the passage of thirty (30) days from the date upon which any Person (as defined in the Indenture) or two or more Persons acting
in concert, other than the Permitted Holders, shall have acquired by contract or otherwise, or shall have entered into a contract or arrangement
that, upon consummation thereof, will result in its or their acquisition of the power to exercise, directly or indirectly, a controlling
influence over the management or policies of the Company, or control over the equity securities of the Company entitled to vote for members
of the Board or equivalent governing body of the Company on a fully-diluted basis (and taking into account all such securities that such
Person or group has the right to acquire pursuant to any option right) representing more than a majority of the combined voting power
of such securities (for purposes of clarification, “on a fully-diluted basis” shall exclude any equity securities issuable
pursuant to rights to acquire such equity securities that do not entitle such holders to acquire such equity securities of the Company
entitled to vote for members of the Board or equivalent governing body of the Company within 60 days, including the Notes and Pre-Funded
Warrants).

 

For the avoidance
of doubt, the occurrence of any of the events described in clauses (i) or (ii) above following the five-year anniversary of the Effective
Date shall not constitute a Qualified Change of Control and, therefore, shall not result in the payment of a Change of Control Bonus.

 

    23 

     

    

 

(i)             “Sale Price” means the total consideration (whether in cash, stock or any other form of property) that
a holder of one share of common stock of the Company would be entitled to receive on account of such Qualified Change of Control, valued
as of the Determination Date; provided, however, that if the Sale Price is being determined in connection with a Qualified
Change of Control resulting from a Tender Offer, the Sales Price shall be equal to the highest price paid per share of Company common
stock in such Tender Offer. Notwithstanding anything herein to the contrary, the Board, in its good faith discretion, shall have the authority
to make all determinations with respect to valuation of applicable consideration and determining the applicable Sale Price, and such determinations
shall be final and binding.

 

(j)             “Superior Offer” means an offer or indication of interest to consummate a transaction with the Company
that would constitute a Qualified Change of Control that is received following the Company’s entering into a separate Definitive
Agreement and that the Board, in its good faith discretion, determines to be superior or otherwise more favorable to the Company and its
shareholders as compared to the terms of the then-effective Definitive Agreement.

 

(k)            “Target Share Number” means 334,109 shares of common stock of the Company.

 

(l)             “Tender Offer” means a tender or exchange offer for a majority of the common stock of the Company on
a fully-diluted basis.

 

2.             Payment
of the Change of Control Bonus. In the event that a Determination Date occurs during a Performance Period and, following such Determination
Date, a Qualified Change of Control is consummated, the Company shall pay to Executive the Change of Control Bonus (calculated as set
forth below), less applicable tax withholding, subject to Executive remaining continuously employed by the Company and its affiliates
through the Change of Control Closing Date. To the extent the Change of Control Bonus becomes payable, it shall be paid no later than
the second regularly-scheduled payroll date immediately following the Change of Control Closing Date (and in no event later than 30 days
following the Change of Control Closing Date). The amount of the Change of Control Bonus shall be equal to (i) the product of the Target
Share Number and the applicable Sale Price, multiplied by (ii) the applicable Change of Control Payout Multiplier determined according
to the table below (which, for the avoidance of doubt, shall be a function of the applicable Performance Period during which the Determination
Date occurs and the applicable Sale Price). For a Sale Price that falls between two Sale Prices in the table below, the Change of Control
Payout Multiplier will be determined through linear interpolation.

 

	Performance Period 1	 	 	Performance Period 2	 
	Sale Price	 	 	Change of Control 

Payout Multiplier	 	 	Sale Price	 	 	Change of Control 

Payout Multiplier	 
	 	Below $4.75	 	 	 	0	%	 	 	Below $5.50	 	 	 	0	%
	$	4.75	 	 	 	100	%	 	$	5.50	 	 	 	50	%
	$	5.00	 	 	 	110	%	 	$	5.75	 	 	 	60	%
	$	5.25	 	 	 	120	%	 	$	6.00	 	 	 	70	%
	$	5.50	 	 	 	130	%	 	$	6.25	 	 	 	80	%
	$	5.75	 	 	 	140	%	 	$	6.50	 	 	 	90	%
	$	6.00	 	 	 	150	%	 	$	6.75	 	 	 	100	%
	$	6.25	 	 	 	160	%	 	$	7.00	 	 	 	110	%
	$	6.50	 	 	 	170	%	 	$	7.25	 	 	 	120	%
	$	6.75	 	 	 	180	%	 	$	7.50	 	 	 	130	%
	$	7.00	 	 	 	190	%	 	$	7.75	 	 	 	140	%
	$	7.25 or above	 	 	 	200	%	 	$	8.00 or above	 	 	 	150	%

 

    24 

     

    

 

Notwithstanding anything herein
to the contrary, if Executive’s employment is terminated by the Company without Cause or Executive voluntarily resigns from employment
with the Company for Good Reason (each, a “Qualifying Termination”), and such Qualifying Termination occurs
within six months prior to, or after, a Determination Date (pursuant to which a Qualified Change of Control is ultimately consummated),
then Executive shall remain eligible to receive a Change of Control Bonus, if any, in connection with such Qualified Change of Control;
provided, however, that the Company may condition payment of such Change of Control Bonus on Executive executing and returning
a waiver and release of claims for the benefit of the Company and its affiliates in a form consistent with the Company’s standard
form of release agreement.

 

3.             
Impact of Certain Events and Superior Offers.

 

		(a)	Extension of Performance Period. In the event the Company enters into a Definitive Agreement and,
subsequently, such Definitive Agreement is terminated for any reason by the Company (the date of such termination, the “Termination
Date”), then the applicable Performance Period during which the Definitive Agreement was originally entered into by the
Company shall be extended for a period equal to the number of days from the date the Company entered into the such Definitive Agreement
through (and including) the Termination Date.

 

		(b)	Determination Date for Superior Offer. In the event a Definitive Agreement is terminated as a result
of the Board receiving a Superior Offer (such terminated Definitive Agreement, a “Terminated Agreement”) and
the Company subsequently executes another Definitive Agreement in respect of such Superior Offer, the Determination Date for purposes
of determining the applicable Performance Period pursuant to Section 2 above shall be deemed to be the date the Company entered into the
original Definitive Agreement in respect of the Terminated Agreement.

 

		(c)	Adjustments. Notwithstanding anything herein to the contrary, the Board shall make or provide for
such adjustments to the Target Share Number or the applicable Sale Price targets as the Board may determine is equitably required to prevent
dilution or enlargement of Executive’s bonus opportunity that otherwise would result from (i) any stock dividend, stock split, stock
combination, recapitalization, or other change in the capital structure of the Company, (ii) any merger, amalgamation, consolidation,
spin-off, split-off, spin-out, split-up, reorganization, partial or complete liquidation, or other distribution of assets or issuance
of rights or warrants to purchase securities, or (iii) any other corporate transaction or event having an effect similar to any of the
foregoing. The Board may also make adjustments of the type described in this Section 3(c) in connection with any other event if the Board
determines in good faith that such adjustments are appropriate to avoid economic distortion in the administration of this Appendix C or
the Change of Control Bonus hereunder or an adverse impact to Executive in any material respect.

 

    25 

     

    

 

4.             
Certain Additional Payments by the Company.

 

		(a)	Notwithstanding any other provision of the Agreement (including without limitation Section 8 of the Agreement),
this Appendix C or any other plan, arrangement or agreement to the contrary, in the event that Executive becomes entitled to a Change
of Control Bonus with respect to a Qualified Change of Control and any of the payments or benefits provided or to be provided by the Company
or its affiliates to Executive or for Executive’s benefit pursuant to the terms of this Appendix C (including the Change of Control
Bonus), the Agreement or otherwise (“Covered Payments”) constitute parachute payments (“Parachute
Payments”) within the meaning of Section 280G of the Code with respect to such Qualified Change of Control and will be subject
to any Excise Tax, then the Company shall pay to Executive, no later than the time the Excise Tax is required to be paid by Executive
or withheld by the Company, an additional amount (the “Gross-up Payment”) equal to the sum of the Excise Tax
payable by Executive, plus the amount necessary to put the Executive in the same after-tax position (taking into account any and all applicable
federal, state, local and foreign income, employment and excise taxes (including the Excise Tax and any income and employment taxes imposed
on the Gross-up Payment)) that Executive would have been in if Executive had not incurred any tax liability under Section 4999 of the
Code.

 

(b)           Notwithstanding the foregoing Section 4(a), if it is determined that Executive is entitled to a Gross-Up Payment, but that Executive,
after taking into account the Parachute Payments and the Gross-Up Payment, would not receive a net after-tax benefit of at least $50,000
(taking into account both income taxes and any Excise Tax) as compared to the net after-tax proceeds to Executive resulting from an elimination
of the Gross-Up Payment and a reduction of the Covered Payments, in the aggregate, to an amount (the “Reduced Amount”)
such that the receipt of Covered Payments would not give rise to any Excise Tax, then no Gross-Up Payment shall be made to Executive and
the Covered Payments, in the aggregate, shall be reduced to the Reduced Amount.

 

(c)           To the extent that the Covered Payments must be reduced pursuant to the foregoing Section 4(b), then such reduction shall be made
in accordance with Section 8(c) of the Agreement.

 

(d)           Any
determination required under this Section 4 shall be made in writing in good faith by an Independent Tax Advisor. The Independent Tax
Advisor shall provide its determinations, together with detailed supporting calculations and documentation, to the Company and Executive
for their review as requested by the Company or Executive. The determinations of the Independent Tax Advisor under this Section 4 shall,
after due consideration of the Company’s and Executive’s comments with respect to such determinations and the interpretation
and application of this Section 4, be final and binding on all parties hereto absent manifest error. The Company and Executive shall
furnish to the Independent Tax Advisor such information and documents as the Independent Tax Advisor may reasonably request in order
to make the determinations required under this Section 4. The Company shall be responsible for all fees and expenses incurred by the
Independent Tax Advisors in connection with the calculations required by this Section 4.

 

    26 

     

    

 

(e)           In
light of the uncertainty in applying Section 4999 of the Code, if Executive receives the Gross-up Payment and it is subsequently determined
that the Gross-up Payment is not sufficient to put Executive in the same after-tax position (taking into account any and all applicable
federal, state, local and foreign income, employment and excise taxes (including the Excise Tax and such taxes imposed on the Gross-up
Payment)) that Executive would have been in if Executive had not incurred the Excise Tax, then the Company shall promptly pay to or for
the benefit of Executive such additional amounts necessary to put Executive in the same after-tax position that Executive would have
been in if the Excise Tax had not been imposed. In the event that a written ruling of the Internal Revenue Service (“IRS”)
is obtained by or on behalf of the Company or Executive, which provides that Executive is not required to pay, or is entitled to a refund
with respect to, all or a portion of the Excise Tax, then Executive shall reimburse the Company in an amount equal to the Gross-up Payment,
less any amounts which remain payable by or are not refunded to Executive, within 30 days following the date of the IRS determination
or the date Executive receives the refund, as applicable. Executive and the Company shall reasonably cooperate with each other in connection
with any administrative or judicial proceedings concerning the existence or amount of liability for the Excise Tax.

 

(f)            For the avoidance of doubt, if Executive does not become entitled to a Change of Control Bonus pursuant to this Appendix C, this
Section 4 shall not apply for any purpose under the Agreement.

 

		5.	Section 409A. Payment of the Change of Control Bonus pursuant to this Appendix C is intended to
be exempt from Section 409A of the Code as a short-term deferral pursuant to Treasury regulation §1.409A-1(b)(4), and this Appendix
C shall be interpreted and construed consistent with such intent. In the event the terms of this Appendix C would subject Executive to
taxes, penalties or interest under Section 409A of the Code (“409A Penalties”), the Company may (in its discretion
but without an obligation to do so) amend the terms of this Appendix C to avoid such 409A Penalties, to the extent possible; provided,
however, that in no event shall the Company or any of its affiliates be responsible for any 409A Penalties that arise in connection
with this Appendix C.

 

    27Exhibit 10.9

 

AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

 

This Amended and Restated
Executive Employment Agreement (“Agreement”) is entered into on March 18, 2022 (the “Effective Date”),
by and between Independence Contract Drilling, Inc., a Delaware corporation (the “Company”), and Philip A. Choyce
(“Executive”). This Agreement amends and restates in its entirety the Prior Agreement (as defined below) effective
as of the Effective Date.

 

W I T N E S S E T H:

 

WHEREAS, the Company
and Executive entered into an Amended and Restated Employment Agreement on August 13, 2014 (the “Prior Agreement”);
and

 

WHEREAS, the Company
desires to continue to employ, and Executive desires to continue to be employed by the Company and its subsidiaries and affiliates, as
applicable, on the terms set forth in this Agreement.

 

NOW, THEREFORE, in
consideration of the mutual terms and agreements set forth herein, the parties hereto agree as follows:

 

1.                 
Employment. During the Employment Term (as defined below), the Company will employ Executive, subject to the term and conditions
of this Agreement, and Executive hereby agrees to accept employment by the Company or an affiliate subject to the terms and conditions
of this Agreement, during the Employment Term (as defined below).

 

2.                 
Term. The “Employment Term” shall mean the period commencing on the Effective Date and ending
on the third anniversary of the Effective Date; provided, however, if neither party shall have provided written notice of termination
at least one year prior to the scheduled expiration of the then current term of this Agreement (each such date by which such notice must
be provided, a “Renewal Date”), the Employment Term shall automatically be extended for one additional years
so as to expire two years from such Renewal Date, in all cases subject to earlier termination as provided in Section 5. Upon a Change
of Control, the Employment Term shall be automatically extended to the third anniversary of the Change of Control.

 

3.                 
Position and Duties.

 

(a)              
During the Employment Term, (A) Executive’s position (including status, offices, titles and reporting requirements, authority,
duties and responsibilities) shall be Executive Vice President & Chief Financial Officer reporting to the Board and (B) Executive’s
services shall be performed at the Company’s executive offices in Houston, Texas or other locations less than 50 miles from such
location.

 

(b)              
During the Employment Term and excluding any periods of vacation and sick leave to which Executive is entitled, Executive agrees
to devote the substantial portion of his attention and time during normal business hours to the business and affairs of the Company and,
to the extent necessary to discharge the responsibilities assigned to Executive hereunder or the Board, to use Executive’s reasonable
best efforts to perform faithfully and efficiently such responsibilities. During the Employment Term it shall not be a violation of this
Agreement for Executive to (A) serve on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill speaking engagements
or teach at educational institutions and (C) manage personal investments and business endeavors, so long as such activities do not significantly
interfere with the performance of Executive’s responsibilities as an employee of the Company in accordance with this Agreement.

 

     

     

    

 

4.           
Compensation and Related Matters. During the Employment Term, Executive shall be entitled to the following compensation
and benefits:

 

(a)              
Salary. The Company shall pay to Executive a total annual base salary of $385,000 (which salary may be increased (but not
decreased) by the Company in its discretion) (“Base Salary”), payable in accordance with the normal payroll
practices of the Company. During the Employment Term, the Base Salary shall be reviewed by the Board of Directors of the Company (the
 “Board”) at least annually; provided, however, that a salary increase shall not necessarily be awarded
as a result of such review. Any increase in Base Salary may not serve to limit or reduce any other obligation to Executive under this
Agreement. Base Salary shall not be reduced after any such increase. The term Base Salary as utilized in this Agreement shall refer to
Base Salary as so increased.

 

(b)              
Bonus. Executive shall be eligible for an annual bonus and other annual incentive compensation (collectively, the “Annual
Bonus”) for each fiscal year of the Company during the Employment Term, in accordance with the Company’s bonus plan
for senior executives of the Company. The Annual Bonus shall be based upon a target amount of 80% of Base Salary (which target amount
may be increased (but not decreased by the Company in its discretion) (“Target Annual Bonus”), based upon performance
criteria established by the Board in its sole discretion, and notwithstanding the foregoing, shall be payable in the sole discretion of
the Board. Each such Annual Bonus shall be paid no later than March 15 of the year following the year for which the Annual Bonus is earned,
unless Executive shall elect to defer the receipt of such Annual Bonus pursuant to a Company-sponsored deferred compensation plan in effect
or the bonus plan provides for a different payment date.

 

(c)              
Expenses. Executive shall be entitled to receive prompt reimbursement for all reasonable and necessary expenses incurred
by Executive in performing services hereunder, including all travel and living expenses while away from home on business or at the request
of and in the service of the Company, provided that such expenses are incurred and accounted for in accordance with the policies and procedures
established by the Company. Notwithstanding any provision of this Agreement to the contrary, the amount of expenses for which Executive
is eligible to receive reimbursement during any given taxable year of Executive shall not affect the amount of expenses for which Executive
is eligible to receive reimbursement during any other taxable year of Executive. Reimbursement of expenses under this Section 4(c) shall
be made within thirty (30) days following submission of a completed expense reimbursement form (but in no event later than the last day
of the calendar year following the calendar year in which the expense was incurred). The right to reimbursement pursuant to this Section 4(c)
is not subject to liquidation or exchange for another benefit.

 

    2

     

    

 

(d)              
Benefits. Executive shall be eligible to participate in or receive benefits under any group health or other executive benefit
plan or arrangement made available by the Company to its senior executive officers, subject to and on a basis consistent with the terms,
conditions and overall administration of such plans and arrangements.

 

(e)              
Vacations. Executive shall be entitled to a minimum of four weeks paid vacation and holidays in accordance with the policies,
programs and practices of the Company as in effect from time to time.

 

(f)               
Restricted Stock and Options and other Equity Compensation. Upon Execution of this Agreement, Executive will be granted
the long-term incentive awards described on Appendix A to this Agreement. Executive also shall participate in any annual or special equity
compensation or long-term compensation plans and programs made available to the senior executive officers of the Company.

 

(g)              
Change of Control Bonus. Upon Execution of this Agreement, Executive will be eligible for the change of control bonus described
in Appendix C to this Agreement (the “Change of Control Bonus”), subject to and in accordance with the terms
and conditions set forth on Appendix C.

 

5.                 
Termination. Executive’s employment hereunder may be terminated during the Employment Term under the following circumstances:

 

(a)              
Death. Executive’s employment hereunder shall terminate upon Executive’s death.

 

(b)              
Disability. Executive’s status as an executive and employee of the Company may be terminated for “Disability”,
and Executive will be deemed “Disabled”, if Executive shall have been unable to substantially perform Executive’s
duties as an executive of the Company or any subsidiary thereof as a result of sickness or injury, with or without reasonable accommodation,
and shall have remained unable to perform any such duties for a period of more than 120 days in any 12-month period. If the Company determines
that Executive has become Disabled, the Company shall notify Executive of its determination. Executive may then request an accommodation
from the Company to assist in his/her return to work. The Company will determine whether Executive’s request can be accommodated
without undue hardship no later than 30 days after Executive requests an accommodation. In the event Executive’s request cannot
be accommodated, the Company may, by notice given in the manner provided in this Agreement, terminate the status of Executive as an executive
and employee of the Company. Any such termination shall become effective 30 days after such notice of termination is given, unless within
such 30-day period, Executive becomes capable of rendering services of the character contemplated hereby (and a physician chosen by the
Company so certifies in writing) and Executive in fact resumes such services.

 

    3

     

    

 

(c)              
Cause. The Company may terminate Executive’s employment with or without Cause. For purposes of this Agreement, “Cause”
shall mean Executive’s:

 

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

 

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

 

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

 

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

 

(v)              
conviction of a felony involving moral turpitude;

 

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

 

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

 

For purposes of this definition, no act, or failure
to act, by Executive will be considered “willful” if done, or omitted to be done, by Executive in good faith and in the reasonable
belief that the act or omission was in the best interest of the Company or required by applicable law.

 

Any termination during the Employment Term by
the Company for Cause shall be communicated by Notice of Termination to the other party hereto given in accordance with Section 9 of this
Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated and (iii)
if the Date of Termination (as defined below) is other than the date of receipt of such notice, specifies the termination date (which
date shall be not more than 30 days after the giving of such notice). The failure by the Company to set forth in the Notice of Termination
any fact or circumstance which contributes to a showing of Cause shall not waive any right of the Company from asserting such fact or
circumstance in enforcing Executive’s or the Company’s rights hereunder. “Date of Termination” shall
mean the date that employment with the Company and its affiliates is terminated in all respects for any reason.

 

    4

     

    

 

(d)              
Good Reason. Executive may terminate Executive’s employment without Good Reason or for Good Reason. For purposes of
this Agreement, the term “Good Reason” shall mean without the express written consent of Executive, the occurrence
of any of the following:

 

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

 

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

 

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

 

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

 

(v)              
in the event a Change of Control (as defined in Section 6(b)(v)) has occurred, the assignment to Executive to any position (including
status, offices, titles and reporting requirements), authority, duties or responsibilities that are not (A) as a senior executive officer
with the ultimate parent company of the entity surviving or resulting from such Change of Control and (B) substantially identical to Executive’s
position (including status, offices, titles and reporting requirements), authority, duties and responsibilities as contemplated by this
Agreement.

 

Notwithstanding anything herein to the contrary,
the interim assignment of Executive’s position, authority, duties, or responsibilities to any person while Executive is absent from
his duties during any of the 120 days set forth under the definition of Disability shall not constitute a Good Reason for Executive to
terminate his employment with the Company. In addition, Executive’s termination of employment shall not constitute Good Reason unless
Executive notifies the Company of the condition or event constituting Good Reason within ninety days (90) days of the condition’s
occurrence (unless unknown to Executive) and the Company fails to cure the conditions, to the extent curable, specified in the notice
within thirty (30) days following such notification, and such termination occurs no later than 60 days following expiration of such cure
period. Any termination during the Employment Term by Executive for Good Reason shall be communicated by Notice of Termination to the
other party hereto given in accordance with Section 9 of the Agreement.

 

    5

     

    

 

6.                 
Compensation Upon Termination. In the event that Executive’s employment under this Agreement terminates during the
Employment Term for any reason, the Company will pay to Executive (a) subject to Section 10 (Compliance with Section 409A of the
Code), in a single lump sum payment, in accordance with the normal payroll practices of the Company (or such earlier date as may be required
by applicable law), the aggregate amount of (i) any earned but unpaid Base Salary and (ii) accrued but unpaid vacation pay through the
Date of Termination; (b) in accordance with Section 4(c) above, any unreimbursed business expenses incurred prior to the Date of
Termination that are reimbursable in accordance with Section 4(c) above, and (c) such employee benefits, if any, as to which Executive
may be entitled pursuant to the terms governing such benefits, payable in accordance with the terms of the applicable plan or other arrangement
governing such benefits (collectively, the “Accrued Obligations”). Payment of the Accrued Obligations shall
be the only compensation paid to Executive under this Agreement in the event of termination of employment due to death or Disability.

 

(a)              
For Cause or Without Good Reason. If Executive’s employment is terminated by the Company for Cause or by Executive
without Good Reason, the Company shall pay Executive the Accrued Obligations, and the Company shall have no further obligations to Executive
under this Agreement.

 

(b)              
Without Cause or For Good Reason Not in Contemplation of a Change of Control. If Executive’s employment is terminated
by the Company without Cause (other than for Disability) or by Executive for Good Reason, and in each case not “in connection with
a Change of Control” (as defined in Section 6(b)(v)), in addition to payment of the Accrued Obligations, Executive shall be entitled
to the following additional benefits (collectively, the “Other Benefits”):

 

(i)                
Executive shall be entitled to receive a single lump sum payment of the following, which amount shall be paid at the time provided
in Section 6(d):

 

A.               
Any earned but unpaid Annual Bonus related to the calendar year prior to the calendar year in which the Date of Termination occurs
plus;

 

B.                
the product of (x) the Target Annual Bonus for the fiscal year during which termination of employment occurs, and (y) a fraction,
the numerator of which is the number of days in the current fiscal year through the Date of Termination, and the denominator of which
is 365.

 

C.                
An amount equal to the Severance Multiple (as defined in Section 6(b)(vi) multiplied by the sum of (1) Executive’s Base Salary
(at the rate in effect as of the Date of Termination) and the Target Annual Bonus for the fiscal year during which termination of employment
occurs.

 

(ii)             
All benefits under the Company’s equity or long-term incentive compensation plan, including all stock options, restricted
stock units and restricted stock held by Executive, not already vested, shall be 100% vested.

 

    6

     

    

 

(iii)           
For a period of 18 months from Executive’s Date of Termination the Company shall continue to provide to Executive and/or
Executive’s dependents the same level of medical and dental benefits equal to those which would have been provided to them in accordance
with the plans, programs, practices and policies described in Section 4(d) of this Agreement if Executive’s employment had not been
terminated and shall reimburse Executive for the premiums Executive pays for such medical and dental benefits for up to 18 months
following the Date of Termination as provided in Section 6(f), and provided further, that if Executive becomes re-employed by another
employer and is eligible to receive medical or dental benefits under another employer provided plan, the medical or dental benefits described
herein shall be secondary to those provided under such other plan during such applicable period of eligibility.

 

(iv)            
A termination shall be deemed to be “in connection with a Change of Control” if such termination occurs during the
period beginning on the date that is (1) twelve (12) months prior to a Change of Control occurring and (2) ending on the second anniversary
of the date of consummation of the Change of Control.

 

(v)              
“Change of Control” shall mean:

 

A.               
The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50 percent or more of either (A) the then outstanding shares
of common stock or membership interests of the Company (the “Outstanding Company Common Stock”) or (B) the combined
voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors or managers
(the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection A, the
following acquisitions shall not constitute a Change of Control: (1) any acquisition directly from the Company or any acquisition by the
Company; or (2) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation
controlled by the Company; or (3) any acquisition by any corporation pursuant to a transaction that complies with clauses (1), (2) and
(3) of subsection C of this definition; or

 

B.                
Individuals, who, as of the Effective Date (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 stockholders or members, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be considered as though such individual was a member of the Incumbent Board, but excluding,
for purpose of this Section 6(b)(v)(B)(2), any such individual whose initial assumption of office occurs as a result of an actual
or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies
or consents by or on behalf of a Person other than the Board; or

 

    7

     

    

 

C.                
Consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets
of the Company (a “Corporate Transaction”) in each case, unless, following such Corporate Transaction, (1) all
or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock
and Outstanding Company Voting Securities immediately prior to such Corporate Transaction beneficially own, directly or indirectly, more
than 60 percent of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Corporate
Transaction (including, without limitation, a corporation that as a result of such transaction owns the Company or all or substantially
all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their
ownership, immediately prior to such Corporate Transaction, of the Outstanding Company Common Stock and the Outstanding Company Voting
Securities, as the case may be, (2) no Person (excluding any corporation resulting from such Corporate Transaction or any employee benefit
plan (or related trust) of the Company or such corporation resulting from such Corporate Transaction) beneficially owns, directly or indirectly,
20 percent or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Corporate Transaction
or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership existed
prior to the Corporate Transaction and (3) at least a majority of the members of the board of directors of the corporation resulting from
such Corporate Transaction were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action
of the Board, providing for such Corporate Transaction; or

 

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

 

(vi)            
“Severance Multiple”, for purposes of calculating the Other Benefits due under this Section 6(b), shall
be two (2) times, and for purposes of calculating the Other Benefits due under Section 6(c) shall be two and one half (2.5) times. In
addition, target Annual Bonus for purpose of calculating the Other Benefits due under Section 6(c) shall mean the target Annual Bonus
for the fiscal year in which termination of employment occurred.

 

(c)              
Without Cause or For Good Reason in Contemplation of a Change of Control. If Executive’s employment is terminated
by the Company without Cause or by Executive for Good Reason, and in each case “in connection with a Change of Control”, in
addition to the payment of the Accrued Obligations, Company shall pay to Executive the Other Benefits (based on the Severance Multiple
specified in Section 6(b)(vi)).

 

    8

     

    

 

(d)              
Release of Claims. Notwithstanding any other provisions of this Agreement to the contrary, in consideration for receiving
the severance benefits described in Section 6(b) or (c), Executive hereby agrees to execute (and not revoke) a release in substantially
the form attached hereto as Appendix B (the “Release”). If Executive is not a “specified employee”
within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and Final Department
of Treasury Regulations issued thereunder (collectively, “Section 409A”) at the time of termination of Executive’s
employment (“Specified Employee”), and Executive has timely signed and delivered to the Company, by the deadline
established by the Company, the Release, which has become irrevocable by the time set forth below, the Company shall pay Executive the
lump sum cash severance benefits described in Section 6(b) or (c) on the date that is sixty (60) days following the date of Executive’s
 “separation from service” within the meaning of Section 409A (“Separation From Service”). In the
event that Executive is a Specified Employee and Executive has timely signed and delivered to the Company, by the deadline established
by the Company, the Release, which has become irrevocable by the time set forth below, the Company shall pay Executive the lump sum cash
severance benefits described in Section 6(b) or (c) on the date that is sixty (60) days following the date of Executive’s Separation
From Service (or, with respect to the portion thereof, if any, that the Company reasonably determines would be subject to Section 409A
under the terms of the Prior Agreement or this Agreement, payable on the date that is six (6) months following the date of Executive’s
Separation From Service). Whether Executive is or is not a Specified Employee, Executive will not be paid the lump sum cash severance
benefits described in Section 6(b) or (c) or entitled to the benefits described in Section 6(b)(ii) or (iii) (except for Executive’s
rights under section 4980B of the Code and the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”))
and Executive shall forfeit any right to such payments and benefits, unless (i) Executive has signed and delivered to the Company
the Release and (ii) the period for revoking the Release shall have expired (in the case of both clauses (i) and (ii)) prior to the date
that is 60 days following the date of Executive’s Separation From Service. If Executive fails to properly execute and deliver such
release (or revokes the Release), Executive agrees that Executive shall not be entitled to receive the severance benefits described in
Section 6(b) or (c) or entitled to the benefits described in Section 6(b)(ii) or (iii) (other than COBRA benefits). For purposes
of this Agreement, a Release shall be considered to have been executed by Executive if it is signed by Executive’s legal representative,
in the case of Executive’s Disability or on behalf of Executive’s estate in the case of Executive’s death.

 

(e)              
Termination of Offices and Directorships. Upon termination of Executive’s employment for any reason, unless otherwise
specified in a written agreement between Executive and the Company, Executive shall be deemed to have resigned from all offices, directorships,
and other employment positions then held with the Company or its affiliates, if any, and shall take all actions reasonably requested by
the Company to effectuate the foregoing.

 

    9

     

    

 

(f)               
Reimbursement of Premiums. During the period that the Company is required to continue coverage in the Company’s group
medical plan and the Company’s group dental plan (collectively, the “Group Plan”) as provided in Section 6(b)(iii)
and Executive continues and pays the premium for such coverage to continue Executive’s and any qualifying dependent’s Group
Plan coverage (“Coverage”) the Company will reimburse Executive the amount of the cost of the Coverage for up
to 18 months Executive maintains such Coverage. Any reimbursements by the Company to Executive required under this Section 6(f) shall
be made on the last day of each month Executive pays the amount required for such Coverage, for up to the first 18 months of Coverage.
If Executive is a Specified Employee at the time of termination and the benefits specified in this Section 6(f) are taxable to Executive
and not otherwise exempt from Section 409A then any amounts to which Executive would otherwise be entitled under this Section 6(f)
during the first six months following the date of Executive’s Separation From Service shall be accumulated and paid to Executive
on the date that is six months following the date of Executive’s Separation From Service. Except for any reimbursements under the
applicable Group Plan that are subject to a limitation on reimbursements during a specified period, the amount of expenses eligible for
reimbursement under this Section 6(f), or in-kind benefits provided, during Executive’s taxable year shall not affect the expenses
eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year of Executive. Executive’s right to reimbursement
or in-kind benefits pursuant to this Section 6(f) shall not be subject to liquidation or exchange for another benefit.

 

7.                 
Nondisclosure and Noncompetition.

 

(a)              
Certain Definitions. For purposes of this Agreement, the following terms shall have the following meanings:

 

(i)                
“Confidential Information” means any information, knowledge or data of any nature and in any form (including
information that is electronically transmitted or stored on any form of magnetic or electronic storage media) relating to the past, current
or prospective business or operations of the Company, that is not generally known to persons engaged in a business similar to that conducted
by the Company, whether produced by the Company or any of its consultants, agents or independent contractors or by Executive, and whether
or not marked confidential. Confidential information does not include information that (1) at the time of disclosure is, or thereafter
becomes, generally available to the public, (2) prior to or at the time of disclosure was already in the possession of Executive, (3)
is obtained by Executive from a third party not in violation of any contractual, legal or fiduciary obligation to the Company with respect
to that information or (3) is independently developed by Executive, but not including the confidential information provided by the Company.

 

(ii)             
“Restricted Business” means the oil and natural gas land contract drilling business conducted in
the United States of America.

 

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

 

    10

     

    

 

(c)              
Covenant Not to Compete. In consideration of the provision of the Confidential Information during the term of this Agreement
and the stock options, restricted stock and restricted stock unit awards and other compensation provided herein, Executive agrees that
during the period of his employment by the Company and, if Executive’s employment is terminated hereunder for any reason prior to
expiration of the Employment Term, during the twenty-four (24) month period following the Date of Termination:

 

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

 

(ii)             
Executive shall not, directly or indirectly (other than in the performance of Executive’s duties under this Agreement) (A)
solicit any individual, who, at the time of time of such solicitation is an executive of the Company or its affiliates, to leave such
employment or hire, employ or otherwise engage any such individual (other than employees of the Company or its affiliates who respond
to general advertisements for employment in newspapers or other periodicals of general circulation (including trade journals)), or (B) cause,
induce or encourage any material actual or prospective client, customer, supplier, landlord, lessor or licensor of the Company or its
affiliates to terminate or modify any such actual or prospective contractual relationship that exists on the Date of Termination.

 

    11

     

    

 

(d)              
Injunctive Relief; Remedies. The covenants and undertakings contained in this Section 7 relate to matters which are of a
special, unique and extraordinary character and a violation of any of the terms of this Section 7 will cause irreparable injury to the
Company, the amount of which will be impossible to estimate or determine and which cannot be adequately compensated. Accordingly, the
remedy at law for any breach of this Section 7 may be inadequate. Therefore, notwithstanding anything to the contrary, the Company will
be entitled to an injunction, restraining order or other equitable relief from any court of competent jurisdiction in the event of any
breach of any provision of this Section 7 without the necessity of proving actual damages or posting any bond whatsoever. The rights and
remedies provided by this Section 7 are cumulative and in addition to any other rights and remedies which the Company may have hereunder
or at law or in equity. The parties hereto further agree that, if any court of competent jurisdiction in a final nonappealable judgment
determines that a time period, a specified business limitation or any other relevant feature of this Section 7 is unreasonable, arbitrary
or against public policy, then a lesser time period, geographical area, business limitation or other relevant feature which is determined
by such court to be reasonable, not arbitrary and not against public policy may be enforced against the applicable party.

 

(e)              
Governing Law of this Section 7; Consent to Jurisdiction. Any dispute regarding the reasonableness of the covenants and
agreements set forth in this Section 7, or the territorial scope or duration thereof, or the remedies available to the Company upon any
breach of such covenants and agreements, shall be governed by and interpreted in accordance with the laws of the state in which the prohibited
competing activity or disclosure occurs, and, with respect to each such dispute, the Company and Executive each hereby irrevocably consent
to the exclusive jurisdiction of the State of Texas for resolution of such dispute, and further agree that service of process may be made
upon Executive in any legal proceeding relating to this Section 7 by any means allowed under the laws of such state.

 

(f)               
Executive’s Understanding of this Section. Executive hereby represents to the Company that Executive has read and
understands, and agrees to be bound by, the terms of this Section 7. Executive acknowledges that the geographic scope and duration of
the covenants contained in Section 7(c) are the result of arm’s-length bargaining and are fair and reasonable in light of (i) the
importance of the functions performed by Executive and the length of time it would take the Company to find and train a suitable replacement,
(ii) the nature and wide geographic scope of the operations of the Company, (iii) Executive’s level of control over and
contact with the Company’s business and operations in all jurisdictions where they are located, and (iv) the fact that the Restricted
Business is conducted throughout the geographic area where competition is restricted by this Agreement. It is the desire and intent of
the parties that the provisions of this Agreement be enforced to the fullest extent permitted under applicable law, whether now or hereafter
in effect and therefore, to the extent permitted by applicable law, the parties hereto waive any provision of applicable law that would
render any provision of this Section 7 invalid or unenforceable.

 

    12

     

    

 

8.                 
Certain Tax Matters.

 

(a)              
Notwithstanding any other provision of this Agreement to the contrary and except as otherwise provided in Appendix C, if any portion
of the payments or benefits provided to or for the benefit of Executive under this Agreement or which Executive otherwise receives or
is entitled to receive from the Company or any successor would be subject to the excise tax imposed by Section 4999 of the Code,
or any interest, penalties or additions to tax with respect to such excise tax (such excise tax, together with any interest, penalties
or additions to tax with respect to such excise tax, is herein collectively referred to as the “Excise Tax”),
all such payments and benefits being collectively referred to herein as the “Total Payments”, then, except as
otherwise provided in Section 8(b), the Total Payments shall be reduced (but not below zero) or eliminated (as further provided for
in Section 8(c)) to the extent the Independent Tax Advisor (as hereinafter defined) shall reasonably determine is necessary so that no
portion of the Total Payments shall be subject to the Excise Tax.

 

(b)              
Notwithstanding the provisions of Section 8(a) and except as otherwise provided in Appendix C, if the Independent Tax Advisor reasonably
determines that Executive would receive, in the aggregate, a greater amount of the Total Payments on an after-tax basis (after including
and taking into account all applicable federal, state, and local income, employment and other applicable taxes and the Excise Tax) if
the Total Payments were not reduced or eliminated pursuant to Section 8(a), then no such reduction or elimination shall be made notwithstanding
that all or any portion of the Total Payments may be subject to the Excise Tax.

 

(c)              
For purposes of determining which of Section 8(a) and Section 8(b) shall be given effect, the determination of which of the Total
Payments shall be reduced or eliminated to avoid the Excise Tax shall be made by the Independent Tax Advisor, provided that the Independent
Tax Advisor shall reduce or eliminate, as the case may be, the Total Payments in the following order (and within the category described
in each of the following Sections 8(c)(i) through 8(c)(v), in reverse order beginning with the Total Payments which are to be paid farthest
in time except as otherwise provided in Section 8(c):

 

(i)                
by first reducing or eliminating the portion of the Total Payments otherwise due and which are not payable in cash (other than
that portion of the Total Payments subject to Sections 8(c)(iv) and 8(c)(v));

 

(ii)             
then by reducing or eliminating the portion of the Total Payments otherwise due and which are payable in cash (other than that
portion of the Total Payments subject to Sections 8(c)(iii);

 

(iii)           
then by reducing or eliminating the portion of the Total Payments otherwise due to or for the benefit of Executive pursuant to
the terms of this Agreement and which are payable in cash;

 

(iv)            
then by reducing or eliminating the portion of the Total Payments otherwise due that represent equity-based compensation, such
reduction or elimination to be made in reverse chronological order with the most recent equity-based compensation awards reduced first;
and

 

    13

     

    

 

(v)              
then by reducing or eliminating the portion of the Total Payments otherwise due to or for the benefit of Executive pursuant to
the terms of this Agreement and which are not payable in cash.

 

(d)              
The Independent Tax Advisor shall provide its determinations, together with detailed supporting calculations and documentation,
to the Company and Executive for their review as requested by the Company or Executive. The determinations of the Independent Tax Advisor
under this Section 8 shall, after due consideration of the Company’s and Executive’s comments with respect to such determinations
and the interpretation and application of this Section 8, be final and binding on all parties hereto absent manifest error. The Company
and Executive shall furnish to the Independent Tax Advisor such information and documents as the Independent Tax Advisor may reasonably
request in order to make the determinations required under this Section 8.

 

(e)              
For purposes of this Section 8 and Appendix C, “Independent Tax Advisor” shall mean a lawyer with a nationally
recognized law firm, a certified public accountant with a nationally recognized accounting firm, or a compensation consultant with a nationally
recognized actuarial and benefits consulting firm, in each case with expertise in the area of executive compensation tax law, who shall
be selected by the Company and shall be acceptable to Executive (Executive’s acceptance not to be unreasonably withheld), and all
of whose fees and disbursements shall be paid by the Company.

 

9.                 
Notice. All notices hereunder must be in writing and shall be deemed to have been given when personally delivered to the
designated individual, or (unless otherwise specified) mailed or sent by (a) United States certified or registered mail, postage
prepaid, return receipt requested, (c) a nationally recognized overnight courier service with confirmation of receipt or (d) facsimile
transmission with confirmation of receipt.

 

All such notices must be addressed
as follows or to such other address as to which any party hereto may have notified the other in writing.

 

To the Company:

 

20475 Hwy 249, Suite 300

Houston, Texas 77070

Attn: Chairman of the Board

 

Copy: General Counsel

 

To Executive:

 

At Executive’s then current address
shown in the Company’s records.

 

or to such other address as any party may have
furnished to the others in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

 

    14

     

    

 

10.             
Compliance with Section 409A of the Code.

 

(a)              
Notwithstanding anything to the contrary in this Agreement, no compensation or benefits, including without limitation the severance
payments and benefits under Section 6 will be paid to Executive if Executive is a Specified Employee until the six-month anniversary of
Executive’s Separation From Service to the extent that paying such amounts at the time or times indicated in this Agreement would
result in a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code.

 

(b)              
To the extent applicable, this Agreement shall be interpreted and applied consistent and in accordance with Section 409A. The parties
agree to act in good faith in complying with the requirements of Section 409A. For purposes of this Agreement, all references to “termination”,
 “termination of employment”, Date of Termination and correlative phrases shall mean a Separation From Service. In the event
additional regulations or other guidance are issued under Section 409A or a court of competent jurisdiction provides additional authority
concerning the application of Section 409A with respect to the payments described in this Agreement, then the parties agree to act in
good faith to amend the provisions of this Agreement to permit such payments to be made at the earliest time permitted under such additional
regulations, guidance or authority that as closely as practicable achieves the original intent of this Agreement. Each payment under this
Agreement as a result of a Separation From Service shall be considered a separate payment for purposes of Section 409A.

 

(c)              
To the extent permitted under Section 409A, any separate payment or benefit under this Agreement or otherwise shall not be deemed
 “nonqualified deferred compensation” subject to Section 409A to the extent provided in the exceptions in Treasury Regulation
 §1.409A-1(b)(9) or any other applicable exception or provision of Section 409A.

 

(d)              
To the extent that any payments or reimbursements provided to Executive under this Agreement are deemed to constitute compensation
to which Treasury Regulation §1.409A-3(i)(1)(iv) would apply, such amounts shall be paid or reimbursed to Executive reasonably promptly,
but not later than December 31 of the year following the year in which the expense was incurred. The amounts of any such payments eligible
for reimbursement in one year shall not affect the payments or expenses that are eligible for payment or reimbursement in any other taxable
year, and Executive’s right to such payments or reimbursement shall not be subject to liquidation or exchange for any other benefit.

 

11.             
Miscellaneous.

 

(a)              
Withholding. All amounts payable under this Agreement will be subject to reduction to reflect such federal, state, local
or foreign taxes as will be required to be withheld pursuant to any applicable law or regulation.

 

(b)              
Successors; Binding Agreement. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon
the parties hereto and their respective successors and permitted assigns, including Executive’s estate and legal representatives.
Neither this Agreement nor any rights, interests or obligations hereunder may be assigned by any party hereto without the prior written
consent of the other parties hereto; provided that the Company may assign any rights, interests or obligations hereunder to any successor
(whether direct or indirect, by merger, purchase, consolidation or otherwise) to all or substantially all of the business and/or assets
of the Company. The Company agrees to require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the
same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in
this Agreement, “Company” shall mean the Company as hereinbefore defined any successor to its business and/or assets as aforesaid
which assume and agrees to perform this Agreement by operation of law or otherwise.

 

    15

     

    

 

(c)              
Waiver. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge
is agreed to in writing signed by Executive and an authorized representative of the Company. No waiver by either party hereto at any time
of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other
party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements
or representations, oral or otherwise express or implied, with respect to the subject matter hereof have been made by either party which
are not set forth expressly in this Agreement.

 

(d)              
Validity. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity
or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

 

(e)              
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original,
but all of which together shall constitute one and the same instrument.

 

(f)               
Entire Agreement. This Agreement sets forth the entire agreement of the parties hereto in respect of the subject matter
contained herein and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties,
whether oral or written, by any officer, Executive or representative of any party hereto; and any prior agreement of the parties hereto
in respect of the subject matter contained herein is hereby terminated and canceled.

 

(g)              
Governing Law. This Agreement has been made and entered into and shall be governed by the internal laws of the State of
Texas without regard to principles of conflict of laws, except as expressly provided in Section 7(e) above with respect to the resolution
of disputes arising under, or the Company’s enforcement of, Section 7.

 

    16

     

    

 

(h)              
Jurisdiction. If any party commences a lawsuit or other proceeding related to or arising from this Agreement, the parties
hereto agree that the State District Court in Houston, Harris County Texas shall have sole and exclusive jurisdiction over any such proceeding.
The State District Court shall be the proper venue for any such lawsuit or judicial proceeding and the parties hereto waive any objection
to such venue. The parties consent to and agree to submit to the jurisdiction of the court specified herein and agree to accept service
of process to vest personal jurisdiction over them in the State District Court of Harris County Texas.

 

(i)                
Severability. The invalidity or unenforceability of any provision or provisions of this Agreement will not affect the validity
or enforceability of any other provision of this Agreement, which will remain in full force and effect.

 

(j)                
Amendment. It is understood and agreed that, upon the Effective Date, this Employment Agreement amends and restates and
supersedes in its entirety any prior Employment Agreement between the Company, its affiliates and predecessors and Executive, including
the Prior Agreement.

 

[Signature page follows]

 

    17

     

    

 

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

 

	 	 	COMPANY:
	 	 	 
	 	 	INDEPENDENCE CONTRACT DRILLING, INC.
	 	 	 
	Date:	March 18, 2022	 	By:	 /s/ J. Anthony Gallegos
	 	 	Name: J. Anthony Gallegos
	 	 	Title: President & Chief Executive Officer
	 	 	 
	 	 	EXECUTIVE:
	 	 	 
	Date:	March 18, 2022	 	/s/ Philip A. Choyce
	 	 	Philip A. Choyce

 

    18

     

    

 

APPENDIX A

 

EQUITY COMPENSATION AWARDED ON EFFECTIVE
DATE

 

227,478 Restricted Stock Units: 1/3 vesting on
1st anniversary, 1/3 12/31/23, 1/3 12/31/24

 

263,022 Stock Appreciation Rights with $5.19 Strike
Price, 1/3 vesting on 1st anniversary, remaining 2/3 vesting in quarterly increments over final two-year vesting period

 

25% lockup until fourth anniversary, unless change
of control, or termination without cause or for good reason

 

    19

     

    

 

APPENDIX B

AGREEMENT AND RELEASE

 

This Agreement and Release
(“Release”) is entered into between you, the undersigned employee, and Independence Contract Drilling, Inc. (the “Company”).
You have [__] days to consider this Release, which you agree is a reasonable amount of time. While you may sign this Release prior
to the expiration of this [___]-day period, you are not to sign it prior to the date of your termination of employment with the
Company.

 

1.                 
Definitions.

 

(a)              
 “Released Parties” means the Company and its past, present and future parents, subsidiaries, divisions, successors,
predecessors, employee benefit plans and affiliated or related companies, and also each of the foregoing entities’ past, present
and future owners, officers, directors, stockholders, investors, partners, managers, principals, members, committees, administrators,
sponsors, executors, trustees, fiduciaries, employees, agents, assigns, representatives and attorneys, in their personal and representative
capacities. Each of the Released Parties is an intended beneficiary of this Release.

 

(b)              
 “Claims” means all theories of recovery of whatever nature, whether known or unknown, recognized by the law or equity
of any jurisdiction. It includes but is not limited to any and all actions, causes of action, lawsuits, claims, complaints, petitions,
charges, demands, liabilities, indebtedness, losses, damages, rights and judgments in which you have had or may have an interest. It also
includes but is not limited to any claim for wages, benefits or other compensation. It also includes but is not limited to claims asserted
by you or on your behalf by some other person, entity or government agency.

 

2.                 
Consideration. The Company agrees to pay you the consideration set forth in sections 6 and 8 of Executive Employment Agreement
between you and the Company dated as of [_________] (the “Employment Agreement”). The Company will make
such payments to you at the times set forth in the Employment Agreement. You acknowledge that the payment that the Company will make to
you in consideration for this Release is in addition to anything else of value to which you are entitled and that the Company is not otherwise
obligated to make this payment to you.

 

3.                 
Release of Claims.

 

(a)              
You – on behalf of yourself and your heirs, executors, administrators, legal representatives, successors, beneficiaries,
and assigns – unconditionally release and forever discharge the Released Parties from, and waive, any and all Claims that you have
or may have against any of the Released Parties arising from your employment with the Company, the termination thereof, and any other
acts or omissions occurring on or before the date you sign this Release; provided, however, that this Agreement shall not operate
to release any Claims that you may have to payments or benefits under Section 6 of the Employment Agreement, including Appendix C, or
any rights you may have to indemnification under any indemnification agreement between you and the Company or any of its affiliates, or
the bylaws or any directors and officers liability insurance policy of the Company or any of its affiliates (collectively, the “Unreleased
Claims”).

 

    20

     

    

 

(b)              
The release set forth in Paragraph 3(a) includes, but is not limited to, any and all Claims under (i) the common law (tort, contract
or other) of any jurisdiction; (ii) the Rehabilitation Act of 1973, the Age Discrimination in Employment Act, the Americans with Disabilities
Act, Title VII of the Civil Rights Act of 1964, and any other federal, state and local statutes, ordinances, executive orders and regulations
prohibiting discrimination or retaliation upon the basis of age, race, sex, national original, religion, disability, or other unlawful
factor; (iii) the National Labor Relations Act; (iv) the Employee Retirement Income Security Act; (v) the Family and Medical Leave Act;
(vi) the Fair Labor Standards Act; (vii) the Equal Pay Act; (viii) the Worker Adjustment and Retraining Notification Act; and (ix) any
other federal, state or local law.

 

(c)              
In furtherance of this Release, you promise not to bring any Claims (other than Unreleased Claims) against any of the Released
Parties in or before any court or arbitral authority.

 

4.                 
Confidentiality. You agree that you will not reveal, or cause to be revealed, this Release or its terms to any third party
(other than your attorney, tax advisor, or spouse), except as required by law.

 

5.                 
Acknowledgment. You acknowledge that, by entering into this Release, the Company does not admit to any wrongdoing in connection
with your employment or termination, and that this Release is intended as a compromise of any Claims you have or may have against the
Released Parties. You further acknowledge that you have carefully read this Release and understand its final and binding effect, have
had a reasonable amount of time to consider it, and are entering this Release voluntarily. You acknowledge that the Company has advised
you in writing to seek the advice of legal counsel prior to executing this release, and that you have had the opportunity to seek legal
counsel of your choosing.

 

6.                 
Applicable Law. This Release shall be construed and interpreted pursuant to the laws of Texas without regard to its choice
of law rules.

 

7.                 
Severability. Each part, term, or provision of this Release is severable from the others. Notwithstanding any possible future
finding by a duly constituted authority that a particular part, term, or provision is invalid, void, or unenforceable, this Release has
been made with the clear intention that the validity and enforceability of the remaining parts, terms and provisions shall not be affected
thereby. If any part, term, or provision is so found invalid, void or unenforceable, the applicability of any such part, term, or provision
shall be modified to the minimum extent necessary to make it or its application valid and enforceable.

 

8.                 
Effective Date. You acknowledge that you have seven (7) days after execution to revoke this Release, and that this
Release shall not become final and binding until the expiration of seven (7) days after execution.

 

    21

     

    

 

IN WITNESS WHEREOF,
the parties have executed this Release on the date set forth below.

 

	EXECUTIVE:	 	 
	 	 	 	 
	 	 	Date: [_______________, 20___]
	J. Anthony Gallegos, Jr.	 	 
	 	 	 	 
	COMPANY:	 	 
	 	 	 	 
	INDEPENDENCE CONTRACT DRILLING, INC.	 	 
	 	 	 	 
	Date: [_______________, 20___]	 	 
	 	 	 	 
	By:	                         	 	 
	Name:	 	 	 
	Title:	 	 	 

 

    22

     

    

 

APPENDIX C

 

CHANGE OF CONTROL BONUS

 

Executive shall be entitled
to receive a cash bonus (a “Change of Control Bonus”), determined by reference to a specified number of shares
of Company common stock, in connection with a Qualified Change of Control (as defined below) with respect to which the Determination Date
(as defined below) occurs during a Performance Period (as defined below), subject to the terms and conditions of this Appendix C and the
Agreement. Any capitalized terms that are used but not defined in this Appendix C shall have the meanings ascribed to such terms in the
Agreement.

 

		1.	Definitions.

 

(a)              
“Change of Control Closing Date” means the date that a Qualified Change of Control is consummated.

 

(b)              
“Definitive Agreement” means a binding merger, purchase or sale agreement (or other similar definitive
document) that is approved by the Board, pursuant to which the Company agrees to consummate a transaction that would constitute a Qualified
Change of Control.

 

(c)              
“Determination Date” means the date upon which the Company enters into a Definitive Agreement; provided,
however, that the consummation of such transaction may be subject to ordinary and customary closing conditions and contingencies,
including, without limitation, antitrust and other legal approvals, shareholder approvals, third party consents, fiduciary outs, and financing
and market contingencies; provided further, that in the event the Determination Date is being determined in connection with a Qualified
Change of Control occurring as a result of a Tender Offer, the Determination Date shall mean the date upon which such Tender Offer commences;
and provided further, in the event of any Qualified Change of Control in connection with which the Company does not enter into
a Definitive Agreement relating thereto, or a Tender Offer, the Determination Date shall be the date on which such Qualified Change of
Control is consummated.

 

 (d)               “Effective Date” means March 18, 2022.

 

(e)              
“Performance Period” means each of Performance Period 1 and Performance Period 2.

 

(f)               
“Performance Period 1” means the 18-month period commencing on the Effective Date (subject to adjustment
as set forth below).

 

(g)              
“Performance Period 2” means the 18-month period immediately following the completion of Performance
Period 1 (subject to adjustment as set forth below).

 

    23 

     

    

 

(h)              
“Qualified Change of Control” means the occurrence of any of the following, in each case within five
years following the Effective Date:

 

(i)                
any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934 (the “Exchange Act”), but excluding any employee benefit plan of such person or its subsidiaries,
and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan), other than the
Permitted Holders (as defined in the Indenture, dated as of March 18, 2022, by and among U.S. Bank Trust Company, National Association,
as trustee and collateral agent, the Company and the guarantor named therein(the “Indenture”)), becomes the
 “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a person or group shall be deemed
to have “beneficial ownership” of all securities that such person or group has the right to acquire, whether such right is
exercisable immediately or only after the passage of time (such right, an “option right”)), directly or indirectly, of more
than a majority of the equity securities of the Company entitled to vote for members of the Board or equivalent governing body of the
Company on a fully-diluted basis (and taking into account all such securities that such person or group has the right to acquire pursuant
to any option right)(for purposes of clarification, “on a fully-diluted basis” shall exclude any equity securities issuable
pursuant to rights to acquire such equity securities that do not entitle such holders to acquire such equity securities of the Company
entitled to vote for members of the Board or equivalent governing body of the Company within 60 days, including the Notes and Pre-Funded
Warrants (each as defined in the Indenture)); or

 

(ii)             
the passage of thirty (30) days from the date upon which any Person (as defined in the Indenture) or two or more Persons acting
in concert, other than the Permitted Holders, shall have acquired by contract or otherwise, or shall have entered into a contract or arrangement
that, upon consummation thereof, will result in its or their acquisition of the power to exercise, directly or indirectly, a controlling
influence over the management or policies of the Company, or control over the equity securities of the Company entitled to vote for members
of the Board or equivalent governing body of the Company on a fully-diluted basis (and taking into account all such securities that such
Person or group has the right to acquire pursuant to any option right) representing more than a majority of the combined voting power
of such securities (for purposes of clarification, “on a fully-diluted basis” shall exclude any equity securities issuable
pursuant to rights to acquire such equity securities that do not entitle such holders to acquire such equity securities of the Company
entitled to vote for members of the Board or equivalent governing body of the Company within 60 days, including the Notes and Pre-Funded
Warrants).

 

For the avoidance
of doubt, the occurrence of any of the events described in clauses (i) or (ii) above following the five-year anniversary of the Effective
Date shall not constitute a Qualified Change of Control and, therefore, shall not result in the payment of a Change of Control Bonus.

 

    24 

     

    

 

(i)                
“Sale Price” means the total consideration (whether in cash, stock or any other form of property) that
a holder of one share of common stock of the Company would be entitled to receive on account of such Qualified Change of Control, valued
as of the Determination Date; provided, however, that if the Sale Price is being determined in connection with a Qualified
Change of Control resulting from a Tender Offer, the Sales Price shall be equal to the highest price paid per share of Company common
stock in such Tender Offer. Notwithstanding anything herein to the contrary, the Board, in its good faith discretion, shall have the authority
to make all determinations with respect to valuation of applicable consideration and determining the applicable Sale Price, and such determinations
shall be final and binding.

 

(j)                
“Superior Offer” means an offer or indication of interest to consummate a transaction with the Company
that would constitute a Qualified Change of Control that is received following the Company’s entering into a separate Definitive
Agreement and that the Board, in its good faith discretion, determines to be superior or otherwise more favorable to the Company and its
shareholders as compared to the terms of the then-effective Definitive Agreement.

 

(k)              
“Target Share Number” means 140,397 shares of common stock of the Company.

 

(l)                
“Tender Offer” means a tender or exchange offer for a majority of the common stock of the Company on
a fully-diluted basis.

 

2.                 
Payment of the Change of Control Bonus. In the event that a Determination Date occurs during a Performance Period and, following
such Determination Date, a Qualified Change of Control is consummated, the Company shall pay to Executive the Change of Control Bonus
(calculated as set forth below), less applicable tax withholding, subject to Executive remaining continuously employed by the Company
and its affiliates through the Change of Control Closing Date. To the extent the Change of Control Bonus becomes payable, it shall be
paid no later than the second regularly-scheduled payroll date immediately following the Change of Control Closing Date (and in no event
later than 30 days following the Change of Control Closing Date). The amount of the Change of Control Bonus shall be equal to (i) the
product of the Target Share Number and the applicable Sale Price, multiplied by (ii) the applicable Change of Control Payout Multiplier
determined according to the table below (which, for the avoidance of doubt, shall be a function of the applicable Performance Period during
which the Determination Date occurs and the applicable Sale Price). For a Sale Price that falls between two Sale Prices in the table below,
the Change of Control Payout Multiplier will be determined through linear interpolation.

 

	Performance Period 1	 	 	Performance Period 2	 
	Sale Price	 	 	Change of Control 

Payout Multiplier	 	 	Sale Price	 	 	Change of Control 

Payout Multiplier	 
	 	Below $4.75	 	 	 	0	%	 	 	Below $5.50	 	 	 	0	%
	$	4.75	 	 	 	100	%	 	$	5.50	 	 	 	50	%
	$	5.00	 	 	 	110	%	 	$	5.75	 	 	 	60	%
	$	5.25	 	 	 	120	%	 	$	6.00	 	 	 	70	%
	$	5.50	 	 	 	130	%	 	$	6.25	 	 	 	80	%
	$	5.75	 	 	 	140	%	 	$	6.50	 	 	 	90	%
	$	6.00	 	 	 	150	%	 	$	6.75	 	 	 	100	%
	$	6.25	 	 	 	160	%	 	$	7.00	 	 	 	110	%
	$	6.50	 	 	 	170	%	 	$	7.25	 	 	 	120	%
	$	6.75	 	 	 	180	%	 	$	7.50	 	 	 	130	%
	$	7.00	 	 	 	190	%	 	$	7.75	 	 	 	140	%
	$	7.25 or above	 	 	 	200	%	 	$	8.00 or above	 	 	 	150	%

 

    25 

     

    

 

Notwithstanding anything herein
to the contrary, if Executive’s employment is terminated by the Company without Cause or Executive voluntarily resigns from employment
with the Company for Good Reason (each, a “Qualifying Termination”), and such Qualifying Termination occurs
within six months prior to, or after, a Determination Date (pursuant to which a Qualified Change of Control is ultimately consummated),
then Executive shall remain eligible to receive a Change of Control Bonus, if any, in connection with such Qualified Change of Control;
provided, however, that the Company may condition payment of such Change of Control Bonus on Executive executing and returning
a waiver and release of claims for the benefit of the Company and its affiliates in a form consistent with the Company’s standard
form of release agreement.

 

3.                 
Impact of Certain Events and Superior Offers.

 

		(a)	Extension of Performance Period. In the event the Company enters into a Definitive Agreement and,
subsequently, such Definitive Agreement is terminated for any reason by the Company (the date of such termination, the “Termination
Date”), then the applicable Performance Period during which the Definitive Agreement was originally entered into by the
Company shall be extended for a period equal to the number of days from the date the Company entered into the such Definitive Agreement
through (and including) the Termination Date.

 

		(b)	Determination Date for Superior Offer. In the event a Definitive Agreement is terminated as a result
of the Board receiving a Superior Offer (such terminated Definitive Agreement, a “Terminated Agreement”) and
the Company subsequently executes another Definitive Agreement in respect of such Superior Offer, the Determination Date for purposes
of determining the applicable Performance Period pursuant to Section 2 above shall be deemed to be the date the Company entered into the
original Definitive Agreement in respect of the Terminated Agreement.

 

		(c)	Adjustments. Notwithstanding anything herein to the contrary, the Board shall make or provide for
such adjustments to the Target Share Number or the applicable Sale Price targets as the Board may determine is equitably required to prevent
dilution or enlargement of Executive’s bonus opportunity that otherwise would result from (i) any stock dividend, stock split, stock
combination, recapitalization, or other change in the capital structure of the Company, (ii) any merger, amalgamation, consolidation,
spin-off, split-off, spin-out, split-up, reorganization, partial or complete liquidation, or other distribution of assets or issuance
of rights or warrants to purchase securities, or (iii) any other corporate transaction or event having an effect similar to any of the
foregoing. The Board may also make adjustments of the type described in this Section 3(c) in connection with any other event if the Board
determines in good faith that such adjustments are appropriate to avoid economic distortion in the administration of this Appendix C or
the Change of Control Bonus hereunder or an adverse impact to Executive in any material respect.

 

    26 

     

    

 

4.                 
Certain Additional Payments by the Company.

 

		(a)	Notwithstanding any other provision of the Agreement (including without limitation Section 8 of the Agreement),
this Appendix C or any other plan, arrangement or agreement to the contrary, in the event that Executive becomes entitled to a Change
of Control Bonus with respect to a Qualified Change of Control and any of the payments or benefits provided or to be provided by the Company
or its affiliates to Executive or for Executive’s benefit pursuant to the terms of this Appendix C (including the Change of Control
Bonus), the Agreement or otherwise (“Covered Payments”) constitute parachute payments (“Parachute
Payments”) within the meaning of Section 280G of the Code with respect to such Qualified Change of Control and will be subject
to any Excise Tax, then the Company shall pay to Executive, no later than the time the Excise Tax is required to be paid by Executive
or withheld by the Company, an additional amount (the “Gross-up Payment”) equal to the sum of the Excise Tax
payable by Executive, plus the amount necessary to put the Executive in the same after-tax position (taking into account any and all applicable
federal, state, local and foreign income, employment and excise taxes (including the Excise Tax and any income and employment taxes imposed
on the Gross-up Payment)) that Executive would have been in if Executive had not incurred any tax liability under Section 4999 of the
Code.

 

(b)              
Notwithstanding the foregoing Section 4(a), if it is determined that Executive is entitled to a Gross-Up Payment, but that Executive,
after taking into account the Parachute Payments and the Gross-Up Payment, would not receive a net after-tax benefit of at least $50,000
(taking into account both income taxes and any Excise Tax) as compared to the net after-tax proceeds to Executive resulting from an elimination
of the Gross-Up Payment and a reduction of the Covered Payments, in the aggregate, to an amount (the “Reduced Amount”)
such that the receipt of Covered Payments would not give rise to any Excise Tax, then no Gross-Up Payment shall be made to Executive and
the Covered Payments, in the aggregate, shall be reduced to the Reduced Amount.

 

(c)              
To the extent that the Covered Payments must be reduced pursuant to the foregoing Section 4(b), then such reduction shall be made
in accordance with Section 8(c) of the Agreement.

 

(d)              
Any determination required under this Section 4 shall be made in writing in good faith by an Independent Tax Advisor. The Independent
Tax Advisor shall provide its determinations, together with detailed supporting calculations and documentation, to the Company and Executive
for their review as requested by the Company or Executive. The determinations of the Independent Tax Advisor under this Section 4 shall,
after due consideration of the Company’s and Executive’s comments with respect to such determinations and the interpretation
and application of this Section 4, be final and binding on all parties hereto absent manifest error. The Company and Executive shall furnish
to the Independent Tax Advisor such information and documents as the Independent Tax Advisor may reasonably request in order to make the
determinations required under this Section 4. The Company shall be responsible for all fees and expenses incurred by the Independent Tax
Advisors in connection with the calculations required by this Section 4.

 

    27 

     

    

 

(e)              
In light of the uncertainty in applying Section 4999 of the Code, if Executive receives the Gross-up Payment and it is subsequently
determined that the Gross-up Payment is not sufficient to put Executive in the same after-tax position (taking into account any and all
applicable federal, state, local and foreign income, employment and excise taxes (including the Excise Tax and such taxes imposed on the
Gross-up Payment)) that Executive would have been in if Executive had not incurred the Excise Tax, then the Company shall promptly pay
to or for the benefit of Executive such additional amounts necessary to put Executive in the same after-tax position that Executive would
have been in if the Excise Tax had not been imposed. In the event that a written ruling of the Internal Revenue Service (“IRS”)
is obtained by or on behalf of the Company or Executive, which provides that Executive is not required to pay, or is entitled to a refund
with respect to, all or a portion of the Excise Tax, then Executive shall reimburse the Company in an amount equal to the Gross-up Payment,
less any amounts which remain payable by or are not refunded to Executive, within 30 days following the date of the IRS determination
or the date Executive receives the refund, as applicable. Executive and the Company shall reasonably cooperate with each other in connection
with any administrative or judicial proceedings concerning the existence or amount of liability for the Excise Tax.

 

(f)               
For the avoidance of doubt, if Executive does not become entitled to a Change of Control Bonus pursuant to this Appendix C, this
Section 4 shall not apply for any purpose under the Agreement.

 

		5.	Section 409A. Payment of the Change of Control Bonus pursuant to this Appendix C is intended to
be exempt from Section 409A of the Code as a short-term deferral pursuant to Treasury regulation §1.409A-1(b)(4), and this Appendix
C shall be interpreted and construed consistent with such intent. In the event the terms of this Appendix C would subject Executive to
taxes, penalties or interest under Section 409A of the Code (“409A Penalties”), the Company may (in its discretion
but without an obligation to do so) amend the terms of this Appendix C to avoid such 409A Penalties, to the extent possible; provided,
however, that in no event shall the Company or any of its affiliates be responsible for any 409A Penalties that arise in connection
with this Appendix C.

 

    28

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