Document:

EX-10.1

 Exhibit 10.1 

Execution Copy 

EMPLOYMENT AGREEMENT 

This Employment Agreement (the “Agreement”) is entered into as of January 3, 2014 (the “Effective
Date”), by and between APPROACH RESOURCES INC., a Delaware corporation (the “Company”), and SERGEI KRYLOV, an individual residing in the State of Texas (“Employee”). 

RECITALS 
 WHEREAS,
the Company desires to employ Employee, and Employee desires to be employed by the Company, subject to the terms and conditions of this Agreement. 

NOW, THEREFORE, in consideration of the mutual promises and covenants contained in this Agreement and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties agree to the following terms: 
 TERMS 

 

	1.	Employment and Position. Effective as of the Effective Date of this Agreement, the Company shall employ Employee as its Executive Vice President and Chief Financial Officer, and Employee shall serve in such
capacities, subject to the terms of this Agreement, and Employee shall report directly to the Company’s President and Chief Executive Officer (the “President”) and/or Board of Directors (the “Board”).

  

	2.	Duties. Employee shall perform in the capacities described in paragraph 1 and shall have such duties, responsibilities, and authorities as may be reasonably assigned by the President and/or Board, in his or its
sole discretion, including without limitation duties, responsibilities, and authorities for the Company’s Affiliates (as defined below). Employee shall devote his full time, best efforts, abilities, knowledge, and experience to the
Company’s business and affairs as necessary to faithfully perform his duties, responsibilities, and authorities under this Agreement. 

  

	3.	Place of Performance. Although Employee shall be expected to work at all Company locations from time to time and travel as necessary to perform his duties, responsibilities, and authorities under this Agreement,
Employee’s primary work location shall be at the Company’s corporate headquarters or within 50 miles from the Company’s corporate headquarters. The Company shall provide without cost to Employee such office space, secretarial, and
administrative services, equipment, furniture, and furnishings as are suitable and appropriate to Employee’s titles and positions. 

  

	4.	Term of Agreement. 

  

	 	(a)	Initial Term. This Agreement shall continue in full force and effect for the initial term described in this subparagraph 4(a) (the “Initial Term”), commencing on the Effective Date and expiring
on January 3, 2016 (the “Expiration Date”), unless terminated before the Expiration Date in accordance with paragraph 6. 

	 	(b)	Renewal Term. Notwithstanding subparagraph 4(a), the effectiveness of this Agreement shall automatically be extended for an additional one-year term on the Expiration Date and on each successive anniversary of
the Expiration Date (each, a “Renewal Date”), unless and until (i) either party gives written notice of non-renewal at least 120 days prior to the Expiration Date or any Renewal Date; or (ii) the Agreement is terminated
earlier in accordance with paragraph 6 (each, a “Renewal Term”). 

  

	 	(c)	Term. The Initial Term and any Renewal Terms shall be referred to below collectively as the “Term” of this Agreement. 

 

	5.	Compensation and Employment Benefits. In consideration for the performance of Employee’s duties, responsibilities, and authorities under this Agreement, the Company shall provide Employee with the following
compensation and employment benefits: 

  

	 	(a)	Base Salary. From the Effective Date until changed as provided in this subparagraph, the Company shall pay Employee an annual base salary of $375,000, less applicable deductions and withholdings (the
“Base Salary”), prorated for any partial period of employment. The Base Salary shall be payable semi-monthly in accordance with the Company’s ordinary payroll policies and procedures for employee compensation. During the Term,
Employee’s Base Salary shall be subject to an annual review and adjustment by the Board in its sole discretion. 

  

	 	(b)	Bonus. 

  

	 	(i)	Performance Plan. In addition to the Base Salary, Employee shall be eligible to participate in the Company Performance Incentive Plan or another bonus plan or program maintained by the Company or an Affiliate,
including, but not limited to, the Short-Term Incentive Plan (collectively a “Performance Plan”) at set levels to be determined annually by the Compensation Committee of the Board in its sole discretion. For purposes of this
Agreement, “Bonus” means any annual bonus payable pursuant to the Performance Plan to Employee. 

  

	 	(ii)	Payout Option. The Bonus may be paid in cash, common stock of the Company, or a combination thereof, as determined by the Compensation Committee in its sole discretion; provided, however, that the
Compensation Committee may offer Employee the option to elect to receive the value of any Bonus in cash, common stock, or a combination thereof, subject to applicable law and such terms, conditions, and limitations as the Compensation Committee may
establish from time to time. 

  

	 	(iii)	 Discretionary Participation Level. The Compensation Committee, in its sole discretion, shall determine Employee’s participation in the

  
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Performance Plan and amount or range of the Bonus available to Employee based on achievement of performance goals during the fiscal year or other performance period. 

 

	 	(iv)	Payment. Any Bonus or other discretionary compensation payments due under this Agreement shall be paid to Employee at the time specified by the Compensation Committee at the time any such Bonus or other
discretionary compensation payment is awarded, but in no event later than 2 1⁄2 months after the end of the taxable year in which any substantial risk of
forfeiture with respect to such Bonus or other payment lapses. Unless otherwise specifically provided for in this Agreement or a plan, policy or program of the Company, Employee must be employed by the Company or an Affiliate on the date the Bonus
or other payment is made to be entitled to receive the Bonus or other payment. 

  

	 	(c)	Employment Benefits. The Company shall provide Employee with the employment benefits that the Company ordinarily provides to its executive-level employees. Such employment benefits shall be governed by the
applicable plan documents, insurance policies, and/or employment policies, and may be modified, suspended, revoked, or terminated in accordance with the terms of the applicable documents or policies without violating this Agreement. In addition to
those benefits, the Company shall provide or cause to provide the following benefits upon satisfaction by Employee of any eligibility requirements, subject to the following limitations: 

 

	 	(i)	Sick-Leave Benefits. To the extent made available to other employees of the Company, and unless this Agreement is terminated pursuant to paragraph 6 in which case no sick-leave benefits shall be payable, Employee
shall be paid sick leave benefits at his then prevailing Base Salary rate during his absence due to illness or other incapacity up to a maximum of 180 days in any one-year period, prorated for any partial year of service. 

 

	 	(ii)	Vacations. The Company shall provide Employee with a minimum of four weeks of paid vacation per calendar year during the Term, prorated for the first calendar year of the Term. Unless the Company has adopted a
plan or policy pursuant to which some or all of such vacation may be rolled over to the next succeeding year in which case only a maximum of four weeks of paid vacation may be carried over, such vacation may not be carried over from calendar year to
calendar year and accrued unused vacation shall be forfeited if not used by the end of the calendar year in which it was granted. The time and duration of any vacation shall be subject to advance notice to the President. The Company shall provide
Employee with all paid holidays ordinarily given by the Company to its employees. Employee shall be paid for any accrued unused vacation should this Agreement terminate pursuant to paragraph 6. 

  
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	 	(d)	Reimbursement of Business Expenses. Employee may incur ordinary, necessary, and reasonable business expenses in connection with the performance of his duties, responsibilities, and authorities under this
Agreement and for the promotion of the Company’s business and activities during the Term, including but not limited to expenses for necessary travel and entertainment and other items of expenses required in the normal and routine course of
Employee’s employment. The Company shall promptly reimburse Employee from time to time for all such business expenses incurred pursuant to and in conformity with this subparagraph and the policies and practices of the Company relative to the
reimbursement of business expenses. Notwithstanding the foregoing, (i) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (ii) the
reimbursement must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred, and (iii) the right to reimbursement shall not be subject to liquidation or exchange for any other benefit.

  

	6.	Termination of Agreement. This Agreement may be terminated as follows; provided, however, that any termination of this Agreement shall also constitute a termination of Employee’s employment with the
Company: 

  

	 	(a)	Death. This Agreement shall terminate immediately upon Employee’s death. 

  

	 	(b)	Permanent Disability. This Agreement shall immediately terminate in the event that Employee becomes Permanently Disabled. For purposes of this Agreement, Employee shall be deemed to have become
“Permanently Disabled” when (i) he receives disability benefits under either Social Security or the Company’s long-term disability plan, if any, (ii) the President and/or the Board, upon the written report of a
qualified physician designated by the President and/or the Board or its insurers, shall have determined (after a complete physical examination of Employee at any time after he has been absent from the Company for a total period of 180 or more
calendar days in any 12-month period) that Employee has become physically and/or mentally incapable of performing his essential job functions with or without reasonable accommodation as required by law, or (iii) Employee is otherwise unable for
a continuous period of 90 calendar days to perform his essential job functions with or without reasonable accommodation as required by law due to injury, illness, or other incapacity (physical or mental). 

 

	 	(c)	With Cause. The Company shall be entitled to terminate this Agreement immediately for any Cause. 

  

	 	(i)	Definition of Cause. For purposes of this Agreement, “Cause” shall be defined as follows: 

  

	 	(A)	the willful and continued failure by Employee substantially to perform his duties, responsibilities, or authorities hereunder (other than any such failure resulting from Employee becoming Permanently Disabled);

  
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	 	(B)	the willful engaging by Employee in misconduct that is materially injurious to the Company; 

  

	 	(C)	any misconduct by Employee in the course and scope of Employee’s employment under this Agreement, including but not limited to dishonesty, disloyalty, disorderly conduct, insubordination, harassment of other
employees or third parties, abuse of alcohol or controlled substances, or other violations of the Company’s personnel policies, rules, or Code of Conduct; 

  

	 	(D)	any material violation by Employee of this Agreement; or 

  

	 	(E)	any violation by Employee of any fiduciary duty owed by Employee to the Company or its Affiliates. 

For purposes of this subparagraph, no act, or failure to act, on Employee’s part shall be considered “willful” unless
done, or omitted to be done, by him not in good faith and without reasonable belief that his action or omission was in the best interest of the Company. 
  

	 	(ii)	Limited Notice and Opportunity to Cure. If the Company determines in its reasonable, good faith discretion that a cure is possible and appropriate, the Company will give Employee written notice of the acts or
omissions constituting Cause and no termination of this Agreement shall be for Cause unless and until Employee fails to cure such acts or omissions within 10 days following receipt of such written notice. If the Company determines in its reasonable,
good faith discretion that a cure is not possible and appropriate, Employee shall have no notice or cure rights before this Agreement is terminated for Cause. 

  

	 	(d)	Without Cause. The Company shall be entitled to terminate this Agreement for any reason other than death, Employee becoming Permanently Disabled, or Cause, at any time by providing 90 days written notice to
Employee that the Company is terminating the Agreement without Cause. 

  

	 	(e)	With Good Reason. Employee shall be permitted to terminate this Agreement for any Good Reason. 

  

	 	(i)	Definition of Good Reason. For purposes of this Agreement, “Good Reason” shall exist in the event any of the following actions are taken without Employee’s consent: 

 

	 	(A)	a material diminution in Employee’s Base Salary, duties, responsibilities, or authorities; 

  
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	 	(B)	a requirement that Employee report to an officer or employee other than the President or the Board (or similar governing body); 

  

	 	(C)	a material relocation of Employee’s primary work location more than 50 miles away from the Company’s corporate headquarters; or 

 

	 	(D)	any other action or inaction by the Company that constitutes a material breach by the Company of its obligations under this Agreement. 

 

	 	(ii)	Notice and Opportunity to Cure. To exercise his right to terminate for Good Reason, Employee must provide written notice to the Company of his belief that Good Reason exists within 90 days of the initial
existence of the condition(s) giving rise to Good Reason, and that notice shall describe the condition(s) believed to constitute Good Reason. The Company shall have 30 days to remedy the Good Reason condition(s). If not remedied within that 30-day
period, Employee may terminate this Agreement; provided, however, that such termination must occur no later than 180 days after the date of the initial existence of the condition(s) giving rise to the Good Reason; otherwise, Employee is
deemed to have accepted the condition(s), or the Company’s correction of such condition(s), that may have given rise to the existence of Good Reason. 

  

	 	(f)	Without Good Reason. Employee shall be entitled to terminate this Agreement without Good Reason at any time by providing 120 days written notice to Company that Employee is terminating the Agreement without Good
Reason. 

  

	 	(g)	Expiration of Term. Either party may terminate this Agreement by providing a proper notice of non-renewal in accordance with subparagraph 4(b). 

 

	7.	Payments and Benefits Due Upon Termination. 

  

	 	(a)	 Accrued Obligations. Upon any termination of this Agreement, the Company shall have no further obligation to Employee under this Agreement or
otherwise, except as expressly provided in this Agreement and except for (i) payment to Employee of all earned but unpaid Base Salary through the Date of Termination, prorated as provided in subparagraph 5(a), (ii) payment to Employee, in
accordance with the terms of the applicable benefit plan of the Company or to the extent required by law, of any benefits to which Employee has a vested entitlement as of the Date of Termination (other than any entitlement to severance or separation
pay, if any), (iii) payment to Employee of any accrued unused vacation; and (iv) payment to Employee of any approved but un-reimbursed 

  
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business expenses incurred in accordance with applicable Company policy and the terms of this Agreement. The payments and benefits described in (i)-(iv) shall be referred to in this
Agreement as the “Accrued Obligations” and shall be paid in accordance with the Company’s plans and policies and applicable law. 

  

	 	(b)	Termination by the Company Due to Death or Permanent Disability. If this Agreement is terminated due to death or Employee becoming Permanently Disabled, then the Company shall have no further obligations to
Employee under this Agreement or otherwise, except the Company shall provide the Accrued Obligations to Employee in accordance with subparagraph 7(a) in addition to the following severance payments and benefits payable to Employee or the personal
representative of Employee’s estate, as applicable: 

  

	 	(i)	on the earliest date between 20 and 60 days following Employee’s Separation from Service when the Release described in subparagraph 10(a) has become fully enforceable and irrevocable, a lump sum in cash equal to
100% of his Base Salary in effect as of such Separation from Service; and 

  

	 	(ii)	on or before the 60th day following Employee’s Separation from Service, a lump sum in cash equal to 100% of the average of any Bonuses received by Employee from the Company in the two years immediately before the
Separation from Service. 

 (c) Termination by the Company for Cause or by Employee Without Good Reason. Upon
termination of this Agreement by (i) the Company for Cause in accordance with subparagraph 6(c) or (ii) Employee without Good Reason in accordance with subparagraph 6(f), the Company shall have no further obligations to Employee under this
Agreement or otherwise, except the Company shall provide the Accrued Obligations to Employee in accordance with subparagraph 7(a). 
  

	 	(d)	Termination by the Company without Cause or by Employee for Good Reason. If this Agreement is terminated by (i) the Company without Cause in accordance with subparagraph 6(d) or (ii) Employee for Good
Reason in accordance with subparagraph 6(e), then the Company shall have no further obligations to Employee under this Agreement or otherwise, except the Company shall provide the Accrued Obligations to Employee in accordance with subparagraph 7(a)
in addition to the following severance payments and benefits: 

  

	 	(i)	on the earliest date between 20 and 60 days following Employee’s Separation from Service when the Release described in subparagraph 10(a) has become fully enforceable and irrevocable, a lump sum in cash equal to
200% of the greater of (A) the then-current Base Salary, and (B) the Base Salary at any time within two years immediately before the Separation from Service; and 

  
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	 	(ii)	on the date that annual bonuses are paid to other executive employees of the Company, but in no event later than 2 1⁄2 months
after the end of the taxable year in which any substantial risk of forfeiture with respect to such bonuses lapses, the Bonus that Employee would have received based on achievement of performance goals under subparagraph 5(b) had this Agreement not
terminated for the year containing the Date of Termination; and 

  

	 	(iii)	during the portion, if any, of the 18-month period commencing on the date of Employee’s Separation from Service (12-month period if Employee terminates for Good Reason) that Employee is eligible to elect and elects
to continue coverage for himself and his eligible dependents under the Company’s or an Affiliate’s group heath plan pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), or similar
state law, the Company shall reimburse Employee on a monthly basis for the difference between the amount Employee pays to effect and continue such coverage and the employee contribution amount that active senior executive employees of the Company
pay for the same or similar coverage. 

  

	 	(e)	Expiration of the Term. If this Agreement is terminated by Employee providing a proper notice of non-renewal in accordance with subparagraph 4(b), the Company shall have no further obligations to Employee under
this Agreement or otherwise, except the Company shall provide the Accrued Obligations to Employee in accordance with subparagraph 7(a). If this Agreement is terminated by the Company providing a proper notice of non-renewal in accordance with
subparagraph 4(b), then the Company shall have no further obligations to Employee under this Agreement or otherwise, except the Company shall provide the Accrued Obligations to Employee in accordance with subparagraph 7(a) in addition to the
following severance payments and benefits: 

  

	 	(i)	on the earliest date between 20 and 60 days following Employee’s Separation from Service when the Release described in subparagraph 10(a) has become fully enforceable and irrevocable, a lump sum in cash equal to
200% of the greater of (A) the then-current Base Salary, and (B) the Base Salary at any time within two years immediately before the Separation from Service; and 

 

	 	(ii)	 on the date that annual bonuses are paid to other executive employees of the Company, but in no event later than
2 1⁄2 months after the end of the taxable year in which any substantial risk of forfeiture with respect to such bonuses lapses, the Bonus that Employee would
have received based on achievement of performance goals under subparagraph 5(b) had this Agreement not terminated for the year containing the Date of Termination multiplied by a fraction, the numerator of which is the number of days

  
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during the period beginning the first day of the performance period containing the Date of Termination and ending on the Date of Termination, and the denominator of which is the number of days in
the applicable performance period; and 

  

	 	(iii)	during the portion, if any, of the 18-month period commencing on the date of Employee’s Separation from Service that Employee is eligible to elect and elects to continue coverage for himself and his eligible
dependents under the Company’s or an Affiliate’s group heath plan pursuant to COBRA or similar state law, the Company shall reimburse Employee on a monthly basis for the difference between the amount Employee pays to effect and continue
such coverage and the employee contribution amount that active senior executive employees of the Company pay for the same or similar coverage. 

  

	8.	Change in Control. The parties acknowledge that Employee has entered into this Agreement based on his confidence in the current stockholders of the Company and the support of the Board. Accordingly, if the
Company should undergo a Change in Control the parties agree as follows: 

  

	 	(a)	Definitions. 

  

	 	(i)	Affiliate: except as otherwise provided in this Agreement, for purposes of this Agreement, Affiliate means, with respect to the Company, any person that directly, or indirectly through one or more intermediaries,
controls, is controlled by, or is under common control with, the Company; provided, however, that a natural person shall not be considered an Affiliate. 

  

	 	(ii)	 Change in Control: a Change in Control means (a) any consolidation or merger of the Company in which the Company is not the continuing or
surviving corporation or pursuant to which shares of the Company’s common stock would be converted into cash, securities or other property, other than a merger of the Company in which the holders of the Company’s common stock immediately
prior to the merger have the same proportionate ownership of common stock of the surviving corporation immediately after the merger, (b) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all
or substantially all, of the assets of the Company and the its subsidiaries to any other person or entity (other than an Affiliate of the Company), (c) the stockholders of the Company approve any plan or proposal for liquidation or dissolution
of the Company, (d) any person or entity (other than Yorktown Energy Partners V, L.P., or any of its affiliated funds), including a “group” as contemplated by Section 13(d)(3) of the Securities Exchange Act of 1934, as
amended, acquires or gains ownership or control (including, without limitation, power to vote) of more than 50% of the outstanding shares of the Company’s voting stock (based upon voting

  
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power) or (e) as a result of or in connection with a contested election of directors, the persons who were directors of the Company before such election shall cease to constitute a majority
of the Board. Notwithstanding the foregoing, a Change of Control shall not include a public offering of the Company’s common stock or a transaction with its sole purpose to change the state of the Company’s incorporation or to create a
holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. Notwithstanding the foregoing, with respect to any compensation that is subject to
Section 409A of the Code and with respect to which a Change in Control will accelerate payment, “Change in Control” shall mean an event that qualifies both as a “change in control” as defined herein as well as a “change
of control event” as defined in the regulations and guidance issued under Section 409A of the Code. 

  

	 	(iii)	CIC Effective Date: means the date upon which a Change of Control occurs. 

  

	 	(iv)	Code: means Internal Revenue Code of 1986, as amended from time to time. 

  

	 	(b)	Change in Control Benefits and Payments. If Employee is employed by the Company on the CIC Effective Date and this Agreement is terminated on or before the first anniversary of the CIC Effective Date by the
Company without Cause in accordance with subparagraph 6(d) or by Employee for Good Reason in accordance with subparagraph 6(e), then the Company shall have no further obligation to Employee under this Agreement or otherwise, except the Company shall
provide Employee with the Accrued Obligations in accordance with subparagraph 7(a) plus the following Change in Control payments and benefits in lieu of any severance payments or benefits that may otherwise be due under subparagraph 7(d):

  

	 	(i)	on the earliest date between 20 and 60 days following Employee’s Separation from Service when the Release described in subparagraph 10(a) has become fully enforceable and irrevocable, a lump sum in cash equal to
200% of the greater of (A) the then-current Base Salary, and (B) the Base Salary at any time within two years immediately before the CIC Effective Date; and 

 

	 	(ii)	 on or before the 60th day following Employee’s Separation from Service, a lump sum in cash equal to 200% of the average of any Bonuses received
by Employee from the Company in the two years before the CIC Effective Date; provided however, that if, as of the CIC Effective Date, Employee has not been employed on two dates on which Bonus payments have been made or would have been made
had Employee been entitled to a Bonus for a given year, the amount payable to Employee under this Section 

  
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8(b)(ii) shall be (x) a lump sum in cash equal to 200% of the target Bonus set by the Compensation Committee for Employee, if any, or (y) if no such target Bonus is set for Employee,
then a lump sum in cash equal to 200% of the target Bonus set by the Compensation Committee for the Chief Operating Officer of the Company; and 

  

	 	(iii)	during the portion, if any, of the 18-month period commencing on the date of Employee’s Separation from Service that Employee is eligible to elect and elects to continue coverage for himself and his eligible
dependents under the Company’s or an Affiliate’s (or a successor of either such entity) group heath plan pursuant to COBRA or similar state law, the Company shall reimburse Employee on a monthly basis for the difference between the amount
Employee pays to effect and continue such coverage and the employee contribution amount that active senior executive employees of the Company pay for the same or similar coverage. 

 

	 	(c)	Effect of a Change in Control Following Date of Termination. Notwithstanding any contrary provision in this Agreement, if this Agreement is terminated by the Company without Cause in accordance with subparagraph
6(d) or by Employee for Good Reason in accordance with subparagraph 6(e), and a CIC Effective Date occurs within 120 days following the Date of Termination, then, in addition to the severance payments and benefits provided to Employee in accordance
with subparagraph 7(d), the Company shall provide Employee (or to Employee’s estate in the event of his death following the Date of Termination) with the following Change in Control payments: 

 

	 	(i)	on or before the 60th day following the CIC Effective Date, a lump sum in cash equal to the excess, if any, of (A) the Change of Control payment that Employee would have been entitled to receive under subparagraph
8(b)(i) if he was employed by the Company or an Affiliate on the CIC Effective Date, over (B) the severance payment payable to Employee in accordance with subparagraph 7(d)(i); and 

 

	 	(ii)	on or before the 60th day following the CIC Effective Date, a lump sum in cash equal to the excess, if any, of (A) the Change of Control payment that Employee would have been entitled to receive under subparagraph
8(b)(ii) if he was employed by the Company or an Affiliate on the CIC Effective Date, over (B) the severance payment payable to Employee in accordance with subparagraph 7(d)(ii). 

 

	9.	 Parachute Payment Limitation. Notwithstanding any contrary provision in this Agreement, if Employee is a “disqualified
individual” (as defined in Section 280G of the Code), and the Change in Control payments and benefits described in paragraph 8, together with any other payments which Employee has the right to receive from the Company, would constitute
a “parachute payment” (as defined in Section 280G of the Code), the payments and benefits provided hereunder shall be either (a) reduced (but not 

  
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below zero) so that the aggregate present value of such payments and benefits received by Employee from the Company shall be $1.00 less than three times Employee’s “base
amount” (as defined in Section 280G of the Code) and so that no portion of such payments received by Employee shall be subject to the excise tax imposed by Section 4999 of the Code, or (b) paid in full, whichever produces the
better net after-tax result for Employee (taking into account any applicable excise tax under Section 4999 of the Code and any applicable income tax). The determination as to whether any such reduction in the amount of the payments and benefits
is necessary shall be made by the Company in good faith and such determination shall be conclusive and binding on Employee. If a reduced payment is made to Employee pursuant to clause (a) above and through error or otherwise that payment, when
aggregated with other payments from the Company (or its affiliates) used in determining if a parachute payment exists, exceeds $1.00 less than three times Employee’s base amount, Employee shall immediately repay such excess to the Company upon
notification that an overpayment has been made. 

  

	10.	Conditions on Receipt of Severance and Change-in-Control Benefits. 

  

	 	(a)	Compliance with Post-Termination Obligations and Execution and Non-Revocation of General Release Agreement. Notwithstanding any other provision in this Agreement, the Company’s payment to Employee of the
severance payments and benefits described in subparagraphs 7(b)(i), 7(d)(i)-(ii), and 7(e)(i) or the Change in Control payments and benefits described in subparagraphs 8(b)(i)-(ii) and 8(c)(i)-(ii) is subject to the condition that he
complies with all applicable covenants under paragraphs 12, 13, 14, and 15 of this Agreement. The Company shall have the right to cease payment of any such payments or benefits, as well as to seek restitution of any such payments or benefits already
paid, if such covenants have been breached by Employee but all other provisions of this Agreement shall remain in full force and effect. The Company’s payment of such payments or benefits to Employee is also subject to the condition that,
within 55 days after the Date of Termination, he execute, deliver to the Company, and not revoke as permitted by applicable law a General Release Agreement in a form reasonably acceptable to the Company that fully and finally releases and waives any
and all claims, demands, actions, and suits whatsoever which he has or may have against the Company and its Affiliates, whether under this Agreement or otherwise, that arose before the General Release Agreement was executed (the
“Release”). For purposes of this Agreement, the Release shall not become fully enforceable and irrevocable until Employee has timely executed the Release and not revoked his acceptance of the Release within seven days after its
execution. 

  

	 	(b)	 Separation from Service Requirement. Notwithstanding any other provision of this Agreement, Employee shall be entitled to the severance or
Change in Control benefits and payments in subparagraphs 7(b), 7(d), 7(e), or 8(b) only if Employee’s termination of employment constitutes a Separation from Service. For purposes of this Agreement, “Separation from Service”
means separation from service (within the meaning of Code Section 409A and the regulations and other guidance promulgated thereunder (“Section 409A”)) with the group of

  
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employers that includes the Company and each of its Affiliates. For this purpose, “Affiliate” means any incorporated or unincorporated trade or business or other entity or
person, other than the Company, that along with the Company is considered a single employer under Code Section 414(b) or Code Section 414(c), but (i) in applying Code Section 1563(a)(1), (2), and (3) for the purposes of
determining a controlled group of corporations under Code Section 414(b), the phrase “at least 50 percent” shall be used instead of the phrase “at least 80 percent” in each place the phrase “at least 80 percent”
appears in Code Section 1563(a)(1), (2), and (3), and (ii) in applying Treasury Regulation Section 1.414(c)-2 for the purposes of determining trades or businesses (whether or not incorporated) that are under common control for the
purposes of Code Section 414(c), the phrase “at least 50 percent” shall be used instead of the phrase “at least 80 percent” in each place the phrase “at least 80 percent” appears in Treasury Regulation
Section 1.414(c)-2. 

  

	11.	Other Provisions Relating to Termination. 

 (a) Notice of Termination. Any
termination of this Agreement by the Company or by Employee (other than termination because of death) shall be communicated by written Notice of Termination to the other party thereto. For purposes of this Agreement, a “Notice of
Termination” shall mean a notice that indicates the specific termination provision in this Agreement relied upon and sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination under the provision
so indicated; provided, however, that any failure to provide such detail shall not delay the effectiveness of the termination. 
 (b)
Date of Termination. For purposes of this Agreement, “Date of Termination” shall mean (i) if Employee’s employment is terminated by death, the date of death; (ii) if Employee’s employment is terminated
because of Employee becoming Permanently Disabled, then 60 days after Notice of Termination is given (provided that Employee shall not have returned to the performance of his duties, responsibilities, and authorities on a full-time basis during such
60-day period); (iii) if (A) Employee’s employment is terminated by the Company with or without Cause or (B) Employee’s employment is terminated by Employee with or without Good Reason, then in each case the date specified
in the Notice of Termination, which shall comply with the applicable notice requirements in paragraph 6; and (iv) if this Agreement is not renewed, the last date of the Initial Term or the Renewal Term as applicable. 

(c) Mitigation. Employee shall not be required to mitigate the amount of any payment or benefits provided for in paragraphs 7 or 8 by
seeking other employment or otherwise, nor shall the amount of any payment or benefit provided for therein be reduced by any compensation earned by Employee as the result of employment by another employer after the Date of Termination, or otherwise.

 (d) Interest. Until paid, all past due amounts required to be paid by the Company under any provision of this Agreement shall bear
interest at 8% per annum compounded daily. 

  
 AMENDED
AND RESTATED EMPLOYMENT AGREEMENT - Page 13 

	12.	Business Opportunities and Intellectual Property. 

  

	 	(a)	Prompt Disclosure Required. Employee shall promptly disclose to the Board in writing all Business Opportunities and Intellectual Property. 

 

	 	(b)	Definition of Business Opportunities. For purposes of this Agreement, “Business Opportunities” shall mean all business ideas, prospects, proposals or other opportunities pertaining to the lease,
acquisition, exploration, production, gathering or marketing of hydrocarbons and related products and the exploration potential of geographical areas on which hydrocarbon exploration prospects are located, that are developed by Employee before or
during the Term or originated by any third party and brought to the attention of Employee before or during the Term, together with information relating thereto (including, without limitation, geological and seismic data and interpretations thereof,
whether in the form of maps, charts, logs, seismographs, calculations, summaries, memoranda, opinions, or other written or charted means). 

  

	 	(c)	Definition of Intellectual Property. For purposes of this Agreement, “Intellectual Property” shall mean all ideas, inventions, discoveries, processes, designs, methods, substances, articles,
computer programs, and improvements (including, without limitation, enhancements to, or further interpretation or processing of, information that was in the possession of Employee prior to the date of this Agreement), whether or not patentable or
copyrightable, that do not fall within the definition of Business Opportunities, that Employee discovers, conceives, invents, creates, or develops, alone or with others, before or during the Term, if such discovery, conception, invention, creation,
or development (i) occurs in the course of Employee’s employment with the Company or its Affiliates or (ii) occurs with the use of any time, materials, or facilities of the Company or its Affiliates. 

 

	13.	Non-Compete Obligations During Term. During the Term and except as provided below or as otherwise permitted by the Company (acting upon the instruction of the Board): 

 

	 	(a)	Employee shall not, other than through the Company or its Affiliates, engage or participate in any manner, whether directly or indirectly through any family member or as an employee, employer, consultant, agent,
principal, partner, more than one percent shareholder, officer, director, licensor, lender, lessor, or in any other individual or representative capacity, in any business or activity that is engaged in leasing, acquiring, exploring, developing or
producing hydrocarbons and related products; and 

  
 AMENDED
AND RESTATED EMPLOYMENT AGREEMENT - Page 14 

	 	(b)	all investments made by Employee (whether in his own name or in the name of any family members or made by Employee’s controlled affiliates), which relate to the lease, acquisition, exploration, development or
production of hydrocarbons and related products shall be made solely through the Company or its Affiliates; and Employee shall not (directly or indirectly through any family members), and shall not permit any of his controlled affiliates to:
(i) invest or otherwise participate alongside the Company or its Affiliates in any Business Opportunities or (ii) invest or otherwise participate in any business or activity relating to a Business Opportunity, regardless of whether the
Company or any of its Affiliates ultimately participates in such business or activity; 

 provided, however, that this
paragraph shall not apply to (x) the existing personal oil and gas investments owned by Employee, his family members, and his controlled affiliates as of the Effective Date of the Original Employment Agreement (the “Existing Personal
Investments”); (y) future expenditures made by Employee and his family members and his controlled affiliates that are required to maintain, but not increase, their respective current ownership interests in the Existing Personal
Investments, excluding however, any expenditure to participate in the acquisition, exploration, or development of any acreage that is not currently included in the Existing Personal Investments as of the Effective Date; and (z) any opportunity
that is first offered to, and subsequently declined by, the Company (acting through the Board); and further provided, however, that this subparagraph shall not preclude Employee from making personal investments in securities of oil and gas
companies that are registered on a national stock exchange, as long as such investments are made in accordance with any applicable insider trading policy of the Company and the aggregate amount owned by Employee and all family members and affiliates
does not exceed 1% of such company’s outstanding securities. 
  

	14.	Confidentiality Obligations. 

  

	 	(a)	Confidentiality and Non-Disclosure Acknowledgments and Obligations. Employee hereby acknowledges that all trade secrets and confidential or proprietary information of the Company and its Affiliates (collectively
referred to herein as “Confidential Information”) constitute valuable, special and unique assets of the business of the Company and its Affiliates, and that access to and knowledge of such Confidential Information is essential to
the performance of Employee’s duties, responsibilities, and authorities under this Agreement. During the Term and the one-year period following the Date of Termination, Employee shall hold the Confidential Information in strict confidence and
shall not publish, disseminate, or otherwise disclose, directly or indirectly, to any person other than the Company and its Affiliates and their respective officers, directors, and employees, any Confidential Information or use any Confidential
Information for Employee’s own personal benefit or for the benefit of anyone other than the Company and its Affiliates. The Company agrees to provide previously undisclosed Confidential Information to Employee in exchange for Employee’s
agreement to keep such Confidential Information, and any Confidential Information to which Employee has already become privy, in strict confidence as provided in this Agreement. 

  
 AMENDED
AND RESTATED EMPLOYMENT AGREEMENT - Page 15 

	 	(b)	Confidential Information Inclusions and Exclusions. For purposes of this Agreement, Confidential Information includes, without limitation, any information heretofore or hereafter acquired, developed, or used by
the Company or its Affiliates relating to Business Opportunities or Intellectual Property or other geological, geophysical, economic, financial, or management aspects of the business, operations, properties, or prospects of the Company or its
Affiliates whether oral or in written form in business records, but shall exclude any information that (i) has become part of common knowledge or understanding in the oil and gas industry or otherwise in the public domain (other than from
disclosure by Employee in violation of this Agreement), or (ii) was rightfully in the possession of Employee, as shown by Employee’s records, prior to the Effective Date (including Employee’s method of selecting, purchasing, and
reworking oil and gas properties, which the Company and Employee may utilize subsequent to the Term (subject to the other limitations contained in this Agreement)); provided, however, that Employee shall provide to the Company copies of all
information described in clause (ii); and provided further, however, that this subparagraph shall not be applicable to the extent Employee is required to testify in a judicial or regulatory proceeding pursuant to the order of a judge or
administrative law judge after Employee requests that such Confidential Information be preserved. 

  

	15.	Obligations After Date of Termination. 

  

	 	(a)	 Non-Compete Obligations. The purposes of paragraph 14 and this paragraph 15 are to protect the Company from unfair loss of goodwill and
business advantage and to shield Employee from pressure to use or disclose Confidential Information or to trade on the goodwill belonging to the Company. Accordingly, during the Post-Termination Non-Compete Term, Employee shall not engage or
participate in any manner, whether directly or indirectly through any family member or as an employee, employer, consultant, agent, principal, partner, shareholder, officer, director, licensor, lender, lessor, or in any other individual or
representative capacity, in any business or activity that is in engaged in leasing, acquiring, exploring, developing or producing hydrocarbons and related products within the boundaries of, or within a four mile radius of the boundaries of, any
mineral property interest of the Company or its Affiliates (including, without limitation, a mineral lease, overriding royalty interest, production payment, net profits interest, mineral fee interest, or option or right to acquire any of the
foregoing, or an area of mutual interest as designated pursuant to contractual agreements between the Company or its Affiliates and any third party) or any other property on which the Company or its Affiliates have an option, right, license, or
authority to conduct or direct exploratory activities, such as three dimensional seismic acquisition or other seismic, geophysical and geochemical activities (but not including any preliminary geological mapping), as of the Date of Termination or as
of the end of the six-month period following such Date of Termination; provided, however, that this subparagraph shall not preclude Employee from making personal investments 

  
 AMENDED
AND RESTATED EMPLOYMENT AGREEMENT - Page 16 

	 	
in securities of oil and gas companies that are registered on a national stock exchange, if the aggregate amount owned by Employee and all family members and affiliates does not exceed 1% of such
company’s outstanding securities. 

  

	 	(b)	Definition of Post-Termination Non-Compete Term. For purposes of this Agreement, the “Post-Termination Non-Compete Term” is the one-year period following the Date of Termination; provided,
however, that the Post-Termination Non-Compete Term shall be reduced to the six-month period following the Date of Termination if this Agreement is terminated on or before the first anniversary of the CIC Effective Date either (i) by the
Company without Cause in accordance with subparagraph 6(d) or (ii) by Employee for Good Reason in accordance with subparagraph 6(e). 

  

	 	(c)	Non-Solicitation Obligations. Employee shall not, during the Post Termination Non-Compete Term, solicit, entice, persuade, or induce, directly or indirectly, any employee (or person who within the preceding 90
days was an employee) of the Company or its Affiliates to (i) terminate his or her employment by such person, (ii) refrain from extending or renewing the same (upon the same or new terms), (iii) refrain from rendering services to or
for such person, (iv) become employed by or to enter into contractual relations with any Persons other than such person, or (v) enter into a relationship with a competitor of the Company or its Affiliates. 

 

	 	(d)	Discretionary Monthly Non-Compete Payments. The Company may, in its sole discretion, elect to continue on the Company’s regularly scheduled paydays Employee’s Base Salary in effect immediately before
the Date of Termination during each month of the Post-Termination Non-Compete Term (the “Monthly Non-Compete Payments”). The Company shall provide written notice to Employee no later than 10 days after the Date of Termination or on
or before the Company’s first regularly scheduled payday following the Date of Termination, whichever is sooner, of its election to make any Monthly Non-Compete Payments. If the Company does elect to make the Monthly Non-Compete Payments, the
Company shall not be obligated to continue making any such Monthly Non-Compete Payments and shall be entitled in its sole discretion to cease making the Monthly Non-Compete Payments at any time and for any reason but only upon at least 30 days’
written notice to Employee, and the Company shall have no further obligation to Employee under this subparagraph. If the Company starts but ceases making the Monthly Non-Compete Payments, then, notwithstanding any contrary provision in this
Agreement, the Post-Termination Non-Compete Term for purpose of subparagraph 15(a) shall expire on the last day of the month in which the final Monthly Non-Compete Payment was made by the Company. 

 

	16.	Common Law Duties. Employee acknowledges and agrees that his restrictive covenants in paragraphs 12, 13, 14, and 15 of this Agreement shall supplement, rather than supplant, his common law duties of
confidentiality and loyalty owed to the Company. 

  
 AMENDED
AND RESTATED EMPLOYMENT AGREEMENT - Page 17 

	17.	Survival of Covenants; Enforcement of Covenants; and Remedies. 

  

	 	(a)	Survival of Covenants. Employee acknowledges and agrees that his covenants in paragraphs 12, 13, 14, and 15 of this Agreement shall survive the termination of this Agreement and shall be construed as agreements
independent of any other provision of this Agreement, and the existence of any Dispute of Employee with or against the Company or its Affiliates whether predicated on this Agreement or otherwise shall not constitute a defense to the enforcement by
the Company of those covenants. 

  

	 	(b)	Enforcement of Covenants. Employee acknowledges and agrees that his covenants in paragraphs 12, 13, 14, and 15 of this Agreement are ancillary to the otherwise enforceable agreements to provide Employee with
Confidential Information and are supported by independent, valuable consideration. Employee further acknowledges and agrees that the limitations as to time, geographical area, and scope of activity to be restrained by those covenants are reasonable
and acceptable to Employee and do not import any greater restraint than is reasonably necessary to protect the Company’s goodwill, Confidential Information, and other legitimate business interests. Employee further agrees that if, at some later
date, a court of competent jurisdiction determines that any of the covenants in paragraphs 12, 13, 14, or 15 are unreasonable, any such covenants shall be reformed by the court and enforced to the maximum extent permitted under the law.

  

	 	(c)	Remedies. In the event of breach or threatened breach by Employee of any of his covenants in paragraphs 12, 13, 14, or 15 of this Agreement, the Company shall be entitled to equitable relief by temporary
restraining order, temporary injunction, or permanent injunction or otherwise, in addition to other legal and equitable relief to which it may be entitled, including any and all monetary damages that the Company may incur as a result of such breach,
violation, or threatened breach or violation. The Company may pursue any remedy available to it concurrently or consecutively in any order as to any breach, violation, or threatened breach or violation, and the pursuit of one of such remedies at any
time shall not be deemed an election of remedies or waiver of the right to pursue any other of such remedies as to such breach, violation, or threatened breach or violation, or as to any other breach, violation, or threatened breach or violation.

  

	18.	Successors and Assigns. This Agreement may not be assigned by the Company to any other person or entity other than an Affiliate of the Company without Employee’s written consent; provided, however,
that in the event of a Change in Control, the Company shall cause the surviving entity in any such transaction to assume the Company’s obligations under paragraphs 7 and 8 to the extent such obligations have not yet been fully performed.
Employee’s duties, responsibilities, authorities, compensation, and benefits under this Agreement are personal to Employee and may not be assigned to any person or entity without written consent from the Board. In the event of Employee’s
death, this Agreement shall be enforceable by Employee’s estate, executors, or legal representatives. This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, legal representatives, successors,
and permitted assigns. 

  
 AMENDED
AND RESTATED EMPLOYMENT AGREEMENT - Page 18 

	19.	Representations of Employee. Employee hereby represents and warrants that he has not previously assumed any obligations inconsistent with those in this Agreement. Employee further represents and warrants that he
has entered into this Agreement pursuant to his own initiative and that the Company did not induce him to execute this Agreement in contravention of any existing commitments. Employee further acknowledges that the Company has entered into this
Agreement in reliance upon the foregoing representations of Employee. 

  

	20.	Dispute Resolution. The parties agree to the following dispute resolution terms: 

  

	 	(a)	Definition of Dispute. Any controversy, claim, complaint, cause of action, or similar proceeding, whether based on statute, contract, common law, negligence, tort, misrepresentation, or any other legal theory,
arising out of or relating to this Agreement or Employee’s employment with the Company (a “Dispute”), shall be resolved solely in accordance with the terms of this paragraph; provided, however, that the term Dispute
shall not include Employee’s claims for workers’ compensation or unemployment compensation benefits (although any claim asserted under Ch. 451 of the Texas Labor Code shall be considered a Dispute subject to dispute resolution under this
paragraph). 

  

	 	(b)	Mediation. If a Dispute cannot be settled by good faith negotiation between the parties, the parties shall submit the Dispute to nonbinding mediation as soon as reasonably possible after the Dispute arose. If
complete agreement cannot be reached within five calendar days of submission to mediation, either party may file a civil action against the other party in any court of competent jurisdiction permitted under paragraph 26. 

 

	 	(c)	Waiver of Right to Jury Trial. NOTWITHSTANDING ANY OTHER PROVISION IN THIS AGREEMENT, THE PARTIES SHALL, AND HEREBY DO, IRREVOCABLY WAIVE THE RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY DISPUTE. IN ADDITION,
EMPLOYEE SHALL, AND HEREBY DOES, IRREVOCABLY WAIVE THE RIGHT TO PARTICIPATE IN ANY CLASS OR COLLECTIVE ACTION WITH RESPECT TO ANY DISPUTE. 

  

	21.	Attorneys’ Fees and Other Costs. If either party breaches this Agreement, or if a Dispute arises between the parties based on or involving this Agreement, the party that enforces its rights under this
Agreement against the breaching party, or that prevails in the resolution of such Dispute, shall be entitled to recover from the other party its reasonable attorneys’ fees, court costs, and expenses incurred in enforcing such rights or
resolving such Dispute. For purposes of this paragraph, the finder of fact shall be requested to answer affirmatively as to whether a party prevailed in order to recoup attorneys’ fees and other costs pursuant to this paragraph.

  
 AMENDED
AND RESTATED EMPLOYMENT AGREEMENT - Page 19 

	22.	Entire Agreement. This Agreement constitutes the entire agreement between the parties concerning its subject matters and supersedes all prior and contemporaneous agreements and understandings, both written and
oral, between the parties with respect to its subject matters, including without limitation the Original Employment Agreement. Employee agrees that the Company has not made any promise or representation to him concerning this Agreement not expressed
in this Agreement, and that, in signing this Agreement, he is not relying on any prior oral or written statement or representation by the Company but is instead relying solely on his own judgment and his legal and tax advisors, if any.

  

	23.	Amendment of Agreement. This Agreement may not be modified or amended in any respect except by an instrument in writing signed by the party against whom such modification or amendment is sought to be enforced.
Notwithstanding the previous sentence, the Company may modify or amend this Agreement in its sole discretion at any time without the further consent of the Employee in any manner necessary to comply with applicable law and regulations or the listing
or other requirements of any stock exchange upon which the Company is listed. No modification or amendment may be enforced against the Company unless such modification or amendment is in writing and signed by the Board. 

 

	24.	Waiver. The waiver by either party of a breach of any term of this Agreement shall not operate or be construed as a waiver of a subsequent breach of the same provision by either party or of the breach of any
other term or provision of this Agreement. 

  

	25.	Severability. If any provision of this Agreement is held to be illegal, invalid, or unenforceable, (a) this Agreement shall be considered divisible, (b) such provision shall be deemed inoperative to the
extent it is deemed illegal, invalid, or unenforceable, and (c) in all other respects this Agreement shall remain in full force and effect; provided, however, that, if any such provision may be made enforceable by limitation, then such
provision shall be deemed to be so limited and shall be enforceable to the maximum extent permitted by applicable law. 

  

	26.	Governing Law; Venue. This Agreement shall be governed by the laws of the State of Texas, without regard to its conflict-of-laws principles. Employee and the Company hereby irrevocably consent to the binding and
exclusive venue for any Dispute between the parties arising out of or related to this Agreement being in the state or federal court of competent jurisdiction that regularly conducts proceedings in Tarrant County, Texas. Nothing in this Agreement,
however, precludes Employee or the Company from seeking to remove a civil action from any state court to federal court. 

  

	27.	Notices. All notices under this Agreement shall be in writing and shall be deemed to have been delivered on the date personally delivered or three calendar days after the date deposited in a receptacle maintained
by the United States Postal Service for such purpose, postage prepaid, by certified mail, return receipt requested, addressed to the Company at its headquarters or Employee at the address of such person as set forth in the Company’s records.
Either party may designate a different address by providing written notice of such new address to the other party. 

  
 AMENDED
AND RESTATED EMPLOYMENT AGREEMENT - Page 20 

	28.	Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall be considered one and the same agreement. The delivery of this
Agreement in the form of a clearly legible facsimile or electronically scanned version by e-mail shall have the same force and effect as delivery of the originally executed document. 

 

	29.	Code Section 409A. 

  

	 	(a)	Intent. All or a portion of the payments and benefits provided under this Agreement is intended to be exempt from Section 409A and any ambiguous provision will be construed in a manner that is compliant with
or exempt from the application of Section 409A. In particular, such payments and benefits are intended to constitute short-term deferrals described in Treasury Regulation Section 1.409A-1(b)(4) or a payment or benefit described in Treasury
Regulation Section 1.409A-1(b)(9)(v). The provisions of this Agreement shall be interpreted in a manner consistent with this intent. 

  

	 	(b)	Specified Employee Postponement. Notwithstanding subparagraph (a) of this paragraph or any other provision of this Agreement to the contrary, if the Company or an Affiliate that is treated as a
“service recipient” (as defined in Section 409A) is publicly traded on an established securities market (or otherwise) and Employee is a “specified employee” (as defined below) and is entitled to receive a
payment that is subject to Section 409A on account of Employee’s Separation from Service, such payment may not be made earlier than six months following the date of his Separation from Service if required by Section 409A, in which
case, the accumulated postponed amount shall be paid in a lump sum payment on the Section 409A Payment Date. The “Section 409A Payment Date” is the earlier of (i) the date of Employee’s death or (ii) the date
that is six months and one day after Employee’s Separation from Service. If any payment to Employee is delayed pursuant to the foregoing sentence, such amount instead will be paid, with interest at the rate set out in Section 11(d), on the
Section 409A Payment Date. For purposes of Section 409A, each payment amount or benefit due under this Agreement will be considered a separate payment and Employee’s entitlement to a series of payments or benefits under this Agreement
is to be treated as an entitlement to a series of separate payments. The determination of whether Employee is a “specified employee” shall be made in accordance with Section 409A using the default provisions in the Section 409A
unless another permitted method has been prescribed for such purpose by the Company. 

  

	30.	 Right to Consult a Tax Advisor. Notwithstanding any contrary provision in this Agreement, Employee shall be solely responsible for any risk
that the tax treatment of all or part of any payments provided by this Agreement may be affected by Section 409A, which may impose significant adverse tax consequences on him, including accelerated

  
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taxation, a 20% additional tax, and interest. Because of the potential tax consequences, Employee has the right, and is encouraged by this paragraph, to consult with a tax advisor of his choice
before signing this Agreement. 

 [Signature Page Follows] 

  
 AMENDED
AND RESTATED EMPLOYMENT AGREEMENT - Page 22 

 
			
	EMPLOYEE:
	
	 /s/ Sergei Krylov

	Name:	 	Sergei Krylov
	
	COMPANY:
	
	 APPROACH RESOURCES INC.,
 A Delaware
Corporation

		
	By:	 	 /s/ J. Ross Craft

	Name:	 	 J. Ross Craft

	Title:	 	 President and Chief Executive Officer

  
 AMENDED
AND RESTATED EMPLOYMENT AGREEMENT - Page 23EX-10.1

 Exhibit 10.1 
  

 
 MITEL NETWORKS CORPORATION

 2014 Equity Incentive Plan 

March 25, 2014 
  

 

 Mitel Networks Corporation 

2014 Equity Incentive Plan 

ARTICLE 1 
 PURPOSE

  

	1.1	Purpose 

 The purpose of this Plan is to assist the Company in attracting, retaining and motivating key
employees, directors, officers and consultants through performance related incentives, thereby advancing the interests of the Company and its shareholders. 

ARTICLE 2 

INTERPRETATION 
  

	2.1	Definitions 

 When used herein, unless the context otherwise requires, the following terms have the
indicated meanings, respectively: 
 “Affiliate” has the meaning set forth in the Securities Act (Ontario), as
amended from time to time; 
 “Associate” has the meaning set forth in the Securities Act (Ontario), as amended from
time to time; 
 “Award” means any Option, Restricted Share Unit, Deferred Share Unit, Performance Share Unit or Other
Share-Based Award granted under this Plan; 
 “Award Agreement” means a signed, written agreement between a Participant or a
Director Participant and the Company evidencing the terms and conditions on which an Award has been granted under this Plan; 

“Black Out Period” means the period of time during which the Company has imposed trading restrictions on its Insiders; 

“Board” means the board of directors of the Company; 

“Business Day” means a day, other than a Saturday or Sunday, on which the principal commercial banks in the City of Ottawa are
open for commercial business during normal banking hours; 
 “CBCA” means the Canada Business Corporations Act and
the regulations promulgated thereunder, both as amended from time to time; 
 “Change in Control” means the happening of any
of the following events: 

	 	(i)	any transaction at any time and by whatever means pursuant to which (A) the Company goes out of existence by any means, except for any corporate transaction or reorganization in which the proportionate voting power
among holders of securities of the entity resulting from such corporate transaction or reorganization is substantially the same as the proportionate voting power of such holders of Company voting securities immediately prior to such corporate
transaction or reorganization or (B) any Person or any group of two or more Persons acting jointly or in concert (other than the Company, a wholly-owned Subsidiary of the Company, an employee benefit plan of the Company or of any of its
wholly-owned Subsidiaries, including the trustee of any such plan acting as trustee, Dr. Terence H. Matthews and his Associates, or Francisco Partners Management, LLC, its Associates and any funds, entities or successor funds or entities
under common management or control of Francisco Partners Management, LLC) hereafter acquires the direct or indirect “beneficial ownership” (as defined by the CBCA) of, or acquires the right to exercise control or direction over, securities
of the Company representing 50% or more of the then issued and outstanding Common Shares in any manner whatsoever, including, without limitation, as a result of a take-over bid, an exchange of securities, an amalgamation of the Company with any
other entity, an arrangement, a capital reorganization or any other business combination or reorganization; 

  

	 	(ii)	the sale, assignment or other transfer of all or substantially all of the assets of the Company to a Person other than a wholly-owned Subsidiary of the Company; 

 

	 	(iii)	the dissolution or liquidation of the Company except in connection with the distribution of assets of the Company to one or more Persons which were wholly-owned Subsidiaries of the Company immediately prior to such
event; 

  

	 	(iv)	the occurrence of a transaction requiring approval of the Company’s shareholders whereby the Company is acquired through consolidation, merger, exchange of securities, purchase of assets, amalgamation, arrangement
or otherwise by any other Person (other than a short form amalgamation or exchange of securities with a wholly-owned Subsidiary of the Company); or 

  

	 	(v)	the Board passes a resolution to the effect that, for the purposes of some or all of the Award Agreements, an event set forth in (i), (ii), (iii) or (iv) above has occurred; 

provided, however, that a Change in Control shall be deemed not to have occurred if, notwithstanding the definition of Change in Control set
out above, the Board, determines that a Change in Control has not occurred in the particular circumstances. 

  
 - 2 - 

 “Change in Control Price” means the highest price per Common Share paid in any
transaction reported on a stock exchange or paid or offered in any bona fide transaction related to a potential or actual Change in Control of the Company at any time during the five trading days (or if the Common Shares are not listed on any
stock exchange, during the three month period) preceding the Change in Control, as determined by the Board in its sole discretion; 

“Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated under it;

 “Common Shares” means the common shares in the capital of the Company and any other securities of the Company or any
Affiliate or any successor that may be so designated by the Committee; 
 “Committee” has the meaning set forth in
Section 3.2 of this Plan; 
 “Company” means Mitel Networks Corporation; 

“Consultant Participant” means an individual or a consultant company, other than an Employee Participant or a Director
Participant that: 
  

	 	(i)	is engaged to provide services to the Company or a Subsidiary other than services provided in relation to a distribution of securities of the Company or a Subsidiary; 

 

	 	(ii)	provides the services under a written contract with the Company or a Subsidiary; and 

  

	 	(iii)	spends or will spend a significant amount of time and attention on the affairs and business of the Company or a Subsidiary, 

and includes a Consultant Participant’s Permitted Assigns. For the purposes of this definition, “consultant company”
means, with respect to an individual consultant, either (i) a company of which the individual consultant is an employee or shareholder; or (ii) a partnership of which the individual consultant is an employee or partner; 

“Covered Employee” shall have the meaning set forth in Section 162(m)(3) of the Code; 

“Data” has the meaning set forth in Section 12.13 of this Plan; 

“Date of Grant” means, for any Award, the date specified by the Committee at the time it grants the Award (which, for greater
certainty, shall be no earlier than the date on which the Committee meets for the purpose of granting such Award) or if no such date is specified, the date upon which the Award was granted; 

“Deferred Share Unit” or “DSU” means a unit equivalent in value to a Common Share, credited by means of a
bookkeeping entry in the books of the Company in accordance with Article 5; 

  
 - 3 - 

 “Director Participant” means a director of the Company who is not an employee of
the Company or a Subsidiary and includes a Director Participant’s Permitted Assigns; 
 “Director’s Option” means
an Option granted to a Director Participant; 
 “Disabled” or “Disability” means the permanent and total
incapacity of a Participant or a Director Participant as determined in accordance with procedures established by the Committee for purposes of this Plan; 

“Distribution Date” means (i) in the case of a Director Participant, the date on which the Director Participant ceases to
be a member of the Board or, in the case of a Participant, the Termination Date (the “Separation Date”); or (ii) such later date as elected by the Participant or Director Participant provided that in no event shall a
Participant or Director Participant be permitted to elect a date which is later than the last Business Day of the calendar year following the calendar year in which the Separation Date occurs. An election for a Distribution Date described in
(ii) above will only be valid if it is delivered to the Corporate Secretary of the Company prior to the Separation Date in the form prescribed for such purposes by the Company, provided that such election may not be made by a Participant or
Director Participant who is a U.S. Taxpayer; 
 “Employee Participant” means a current full-time or part-time employee or
officer of the Company or a Subsidiary (other than a Director Participant or a Consultant Participant) and includes an Employee Participant’s Permitted Assigns; 

“Exchange Act” means the United States Securities Exchange Act of 1934, as amended from time to time; 

“Exercise Notice” means a notice in writing, in the form acceptable to the Company, signed by a Participant or a Director
Participant holding an Option and stating the Participant’s or Director Participant’s intention to exercise a particular Option; 

“Exercise Price” means the price at which a Common Share may be purchased pursuant to the exercise of an Option; 

“Exercise Period” means the period of time during which an Option granted under this Plan may be exercised (provided however
that the Exercise Period may not exceed 10 years from the relevant Date of Grant); 
 “Fair Market Value” means, with
respect to any Common Share at a particular date, the closing price on the Nasdaq Global Market or, if the Common Shares are also listed on the Toronto Stock Exchange, the market or exchange where the majority of the trading volume and value of the
Common Shares occurs on such date (or if such Common Shares did not trade on such exchange on such day, the average of the bid and ask prices of such Common Shares at the close of trading on such day); provided that in the event that such Common
Shares are not then listed on such stock exchange, the Fair Market Value shall be determined based on the closing price of such Common Shares on any stock exchange in Canada or the United States on which such Common Shares are then listed on the
particular date (or if such Common Shares did not trade on such exchange on such day, the average of the bid and ask prices of such Common Shares at the close of trading on 

  
 - 4 - 

 
such day); and further provided that in the event that such Common Shares are not then listed on any stock exchange in Canada or the United States, the Fair Market Value shall be determined by
the Board in its sole discretion; 
 “Incentive Stock Option” means an option granted under Section 4.6 of the Plan
that meets the requirements of Section 422 of the Code or any successor provision and is designated as such in the applicable Award Agreement; 

“Individual Optionee” means an Optionee who is an individual or the individual of which the Optionee is a Permitted Assign, as
the case may be; 
 “Insider” has the meaning set forth in the TSX Rules; 

“NI 45-106” means National Instrument 45-106 Prospectus and Registration Exemptions of the Canadian Securities Administrators,
as amended from time to time; 
 “Non Qualified Stock Option” means an option granted under Article 4 of the Plan that is
not intended to be or does not meet the requirements of an Incentive Stock Option. Any stock option granted by the Committee that is not designated as an Incentive Stock Option in the applicable Award Agreement will be deemed a Non Qualified Stock
Option; 
 “Option” means a right to purchase Common Shares under this Plan; 

“Optionee” means a Participant or a Director Participant who holds one or more Options under this Plan; 

“Optionee’s Employer” means the Company or such Subsidiary as is or, if the Optionee has ceased to be employed by the
Company or such Subsidiary, was the Optionee’s Employer; 
 “Other Share-Based Award” means any right granted under
Section 8.1 of this Plan; 
 “Participant” means an Employee Participant or a Consultant Participant but not a Director
Participant; 
 “Performance Goals” means performance goals based on one or more of the following criteria:
(i) earnings including operating income, earnings before or after taxes, earnings before or after interest, depreciation, amortization, or extraordinary or special items or book value per share (which may exclude nonrecurring items);
(ii) pre-tax income or after-tax income; (iii) earnings per Common Share (basic or diluted); (iv) operating profit; (v) revenue, revenue growth or rate of revenue growth; (vi) return on assets (gross or net), return on
investment, return on capital, or return on equity; (vii) returns on sales or revenues; (viii) operating expenses; (ix) stock price appreciation; (x) cash flow, free cash flow, cash flow return on investment (discounted or
otherwise), net cash provided by operations, or cash flow in excess of cost of capital; (xi) implementation or completion of critical projects or processes; (xii) economic value created; (xiii) cumulative earnings per share growth;
(xiv) operating margin or profit margin; (xv) Common Share price or total shareholder return; (xvi) cost targets, reductions and 

  
 - 5 - 

 
savings, productivity and efficiencies; (xvii) strategic business criteria, consisting of one or more objectives based on meeting specified market penetration, geographic business expansion,
customer satisfaction, employee satisfaction, human resources management, supervision of litigation, information technology, and goals relating to acquisitions, divestitures, joint ventures and similar transactions, and budget comparisons;
(xviii) personal professional objectives, including any of the foregoing performance goals, the implementation of policies and plans, the negotiation of transactions, the development of long term business goals, formation of joint ventures,
research or development collaborations, and the completion of other corporate transactions; and (xix) any combination of, or a specified increase in, any of the foregoing. Where applicable, the Performance Goals may be expressed in terms of
attaining a specified level of the particular criteria or the attainment of a percentage increase or decrease in the particular criteria, and may be applied to one or more of the Company, a Subsidiary, or a division or strategic business unit of the
Company, or may be applied to the performance of the Company relative to a market index, a group of other companies or a combination thereof, all as determined by the Committee. The Performance Goals may include a threshold level of performance
below which no payment will be made (or no vesting will occur), levels of performance at which specified payments will be made (or specified vesting will occur), and a maximum level of performance above which no additional payment will be made (or
at which full vesting will occur). Each of the foregoing Performance Goals shall be determined in accordance with generally accepted accounting principles and shall be subject to certification by the Committee; provided that the Committee shall have
the authority to make equitable adjustments to the Performance Goals in recognition of unusual or non-recurring events affecting the Company or any Subsidiary or the financial statements of the Company or any Subsidiary, in response to changes in
applicable laws or regulations, or to account for items of gain, loss or expense determined to be extraordinary or unusual in nature or infrequent in occurrence or related to the disposal of a segment of a business or related to a change in
accounting principles; 
 “Performance Share Unit” means any right granted under Section 7.1 of the Plan; 

“Permitted Assign” has the meaning assigned to that term in NI 45-106; 

“Person” includes an individual, sole proprietorship, partnership, unincorporated association, unincorporated syndicate,
unincorporated organization, trust, body corporate, and a natural person in his or her capacity as trustee, executor, administrator or other legal representative; 

“Plan” means this Mitel Networks Corporation 2014 Equity Incentive Plan, as amended from time to time; 

“Restricted Share Unit” or “RSU” means a right to receive cash or a Common Share granted, as determined by
the Committee, under Section 6.1 of this Plan; 
 “Retirement” means retirement from active employment with the Company
or a Subsidiary in accordance with the policies of the Company in place from time to time or, with the consent for purposes of the Plan of such officer of the Company as may be 

  
 - 6 - 

 
designated by the Committee, at or after such earlier age and upon the completion of such years of service as the Committee may specify; 

“Securities Act” means the United States Securities Act of 1933, as amended from time to time; 

“Security Based Compensation Arrangement” has the meaning given to that term in the TSX Rules; 

“Termination Date” means, in the case of a Participant or Director Participant whose employment or term of office or
engagement with the Company or an Affiliate terminates: 
  

	 	(i)	by reason of the Participant’s or Director Participant’s death, the date of death; or 

  

	 	(ii)	for any reason whatsoever other than death, the later of: 

 (A) in the case of a Participant,
the last day of the minimum statutory notice period, if any, to which that Participant is entitled upon such termination pursuant to applicable employment and/or labour standards legislation; 

(B) the date designated by the Company or the Affiliate, as the case may be, as the last day of the Participant’s or Director
Participant’s employment or term of office or engagement with the Company or the Affiliate, as the case may be; and 
 provided that in
the case of termination by reason of voluntary resignation by the Participant or Director Participant, such date shall not be earlier than the date that notice of resignation was received from such Participant or Director Participant; 

and “Termination Date” in any such case specifically does not mean the date on which any period of contractual or common law
notice, reasonable notice, salary continuation or deemed employment that the Company or the Affiliate, as the case may be, may be required at law to provide to a Participant would expire; 

“TSX Rules” means Part VI of the Company Manual of the Toronto Stock Exchange, as amended from time to time; and 

“U.S. Taxpayer” shall mean a Participant or Director Participant who is a U.S. citizen, U.S. permanent resident or U.S. tax
resident for purposes of the Code. 
  

	2.2	Interpretation 

  

	 	(a)	Whenever the Board or, where applicable, the Committee is to exercise discretion in the administration of this Plan, the term “discretion” means the sole and absolute discretion of the Board or the Committee,
as the case may be. 

  
 - 7 - 

	 	(b)	As used herein, the terms “Article”, “Section”, “Subsection” and “clause” mean and refer to the specified Article, Section, Subsection and clause of this Plan, respectively.

  

	 	(c)	Words importing the singular include the plural and vice versa and words importing any gender include any other gender. 

  

	 	(d)	Whenever any payment is to be made or action is to be taken on a day which is not a Business Day, such payment shall be made or such action shall be taken on the next following Business Day. 

 

	 	(e)	In this Plan, a Person is considered to be a “Subsidiary” of another Person if: 

  

	 	(i)	it is controlled by, 

  

	 	(A)	that other, or 

  

	 	(B)	that other and one or more Persons, each of which is controlled by that other, or 

  

	 	(C)	two or more Persons, each of which is controlled by that other; or 

  

	 	(ii)	it is a Subsidiary of a Person that is that other’s Subsidiary. 

  

	 	(f)	In this Plan, a Person is considered to be “controlled” by a Person if: 

  

	 	(i)	in the case of a Person, 

  

	 	(A)	voting securities of the first-mentioned Person carrying more than 50% of the votes for the election of directors are held, directly or indirectly, otherwise than by way of
security only, by or for the benefit of the other Person; and 

  

	 	(B)	the votes carried by the securities are entitled, if exercised, to elect a majority of the directors of the first-mentioned Person; 

 

	 	(ii)	in the case of a partnership that does not have directors, other than a limited partnership, the second-mentioned Person holds more than 50% of the interests in the partnership;
or 

  

	 	(iii)	in the case of a limited partnership, the general partner is the second-mentioned Person. 

  

	 	(g)	Unless otherwise specified, all references to money amounts are to Canadian currency. 

  
 - 8 - 

 ARTICLE 3 

ADMINISTRATION 
  

	3.1	Administration 

 Subject to Section 3.2, this Plan will be administered by the Board and the Board
has sole and complete authority, in its discretion, to: 
  

	 	(a)	determine the individuals to whom grants under the Plan may be made; 

  

	 	(b)	make grants of Awards under the Plan relating to the issuance of Common Shares (including any combination of Options, Deferred Share Units, Restricted Share Units, Performance Share Units or Other Share-Based Awards) in
such amounts, to such Persons and, subject to the provisions of this Plan, on such terms and conditions as it determines including without limitation: 

  

	 	(i)	the time or times at which Awards may be granted; 

  

	 	(ii)	the conditions under which: 

  

	 	(A)	Awards may be granted to Participants or Director Participants; or 

  

	 	(B)	other Awards may be forfeited to the Company, 

 including any conditions relating to the
attainment of specified Performance Goals; 
  

	 	(iii)	the Exercise Price, and/or price to be paid by a Participant or Director Participant in connection with the granting of Awards; 

  

	 	(iv)	the time or times when each Option becomes exercisable and, subject to Section 4.3, the duration of the Exercise Period; 

  

	 	(v)	whether restrictions or limitations are to be imposed on the Common Shares issuable pursuant to grants of Awards, and the nature of such restrictions or limitations, if any; and 

 

	 	(vi)	any acceleration of exercisability or vesting, or waiver of termination regarding any Award, based on such factors as the Board may determine; 

 

	 	(c)	interpret this Plan and adopt, amend and rescind administrative guidelines and other rules and regulations relating to this Plan; and 

 

	 	(d)	make all other determinations and take all other actions necessary or advisable for the implementation and administration of this Plan. 

The Board’s determinations and actions within its authority under this Plan are conclusive and binding on the Company and all other Persons. The
day-to-day administration of the Plan may be delegated to such officers and employees of the Company or of a Subsidiary as the Board determines. 

  
 - 9 - 

	3.2	Delegation to Committee 

 To the extent permitted by applicable law and the Company’s articles, the
Board may, from time to time, delegate to a committee (the “Committee”) of the Board all or any of the powers conferred on the Board under the Plan. In connection with such delegation, the Committee will exercise the powers
delegated to it by the Board in the manner and on the terms authorized by the Board. Any decision made or action taken by the Committee arising out of or in connection with the administration or interpretation of this Plan in this context is final
and conclusive. Notwithstanding any such delegation or any reference to the Committee in this Plan, the Board may also take any action and exercise any powers that the Committee is authorized to take or has power to exercise under this Plan. To the
extent applicable in respect of certain Awards granted to a Participant who is a Covered Employee, such Committee shall be composed of not less than two directors of the Company, neither of whom shall be employees of the Company or its Affiliates
and each of whom shall otherwise be “outside directors” for the purposes of Section 162(m) of the Code. To the extent the Company is no longer a “foreign private issuer” as defined in Exchange Act Rule 3b-4 and wishes to
have a “Qualified Plan” as defined in Rule 16b-3(b)(4), such Committee shall be composed of not less than two directors of the Company, each of whom are “non-employee directors” for purposes of Section 16 of the Exchange Act
and Rule 16b-3 thereunder. 
  

	3.3	Eligibility 

 All Participants and Director Participants are eligible to participate in the Plan, subject
to subsections 9.1(e) and 9.2(g). Eligibility to participate does not confer upon any Participant or Director Participant any right to receive any grant of an Award pursuant to the Plan. The extent to which any Participant or Director Participant is
entitled to receive a grant of an Award pursuant to the Plan will be determined in the sole and absolute discretion of the Committee, provided however that the following restrictions shall also apply to this Plan, together with all other Security
Based Compensation Arrangements of the Company: 
  

	 	(a)	the number of Common Shares issuable to Insiders, at any time, under all Security Based Compensation Arrangements, shall not exceed 10% of issued and outstanding Common Shares; and 

 

	 	(b)	the number of Common Shares issued to Insiders, within any one year period, under all Security Based Compensation Arrangements, shall not exceed 10% of issued and outstanding Common Shares. 

If the Company repurchases Common Shares for cancellation such that the tests in Section 3.3(a) or (b) are not met following such repurchase, this
shall not constitute non-compliance under the Plan for any Awards then outstanding. 
  

	3.4	Total Common Shares Available 

  

	 	(a)	 The aggregate number of Common Shares that may be issued for all purposes pursuant to the Plan must not exceed 8,900,000 Common Shares. No grant may
be made under the Plan if such grant would result in the issuance of Common Shares in excess of the above-noted limit. In addition, the aggregate number of 

  
 - 10 - 

	 	
Common Shares that may be issued for purposes of the grant of Incentive Stock Options pursuant to the Plan must not exceed 8,900,000 Common Shares. 

 

	 	(b)	For purposes of computing the total number of Common Shares available for grant under the Plan, Common Shares subject to any Award (or any portion thereof) that has expired or is forfeited, surrendered, cancelled or
otherwise terminated prior to the issuance or transfer of such Common Shares and Common Shares subject to an Award (or portion thereof) that is settled in cash in lieu of settlement in Common Shares shall again be available for grant under the Plan.

  

	3.5	Award Agreements 

 All grants of Awards under this Plan will be evidenced by Award Agreements. Award
Agreements will be subject to the applicable provisions of this Plan and will contain such provisions as are required by this Plan and any other provisions that the Committee may direct. Any one officer of the Company is authorized and empowered to
execute and deliver, for and on behalf of the Company, an Award Agreement to each Participant or Director Participant granted an Award pursuant to this Plan. 
  

	3.6	Conditions of Grant 

 Each Participant or Director Participant will, when requested by the Company, sign
and deliver all such documents relating to the granting of Awards or exercise of Options which the Company deems necessary or desirable. 
  

	3.7	Non-transferability of Awards 

 Subject to Section 9.1, Awards granted under this Plan may only be
exercised during the lifetime of the Participant or Director Participant by such Participant or Director Participant personally. No assignment or transfer of Awards, whether voluntary, involuntary, by operation of law or otherwise, vests any
interest or right in such Awards whatsoever in any assignee or transferee (except that a Participant or Director Participant may transfer Awards (other than Incentive Stock Options) to Permitted Assigns in a manner consistent with applicable tax and
securities laws) and immediately upon any assignment or transfer, or any attempt to make the same, such Awards will terminate and be of no further force or effect. Further, an Incentive Stock Option shall not be transferrable other than by will or
by the law of descent and distribution and shall be exercisable during the life time of the Participant, only by the Participant. If any Participant or Director Participant has transferred Awards to a corporation pursuant to this Section 3.7,
such Awards will terminate and be of no further force or effect if at any time the transferor should cease to own all of the issued shares of such corporation. 

ARTICLE 4 
 GRANT OF
OPTIONS 
  

	4.1	Grant of Options 

 The Committee may, from time to time, subject to the provisions of this Plan and such
other terms and conditions as the Committee may prescribe, grant Options to any Participant or any Director Participant. 

  
 - 11 - 

	4.2	Exercise Price 

 The Exercise Price will be as determined by the Committee but in any event will be no
less than the Fair Market Value on the Date of Grant. 
  

	4.3	Term of Options 

 Subject to any accelerated termination as permitted by the Committee or as otherwise
set forth in this Plan, each Option, unless otherwise specified by the Committee, expires on the seventh (7th) anniversary of the Date of Grant (provided that if such expiry would otherwise
be during or immediately after a Black Out Period, then the expiry shall be extended until ten (10) Business Days following the expiration of the Black Out Period); provided that in no event will the Exercise Period of an Option exceed ten
(10) years from its Date of Grant. 
 The Committee shall have the authority to condition the grant or vesting of Options upon the attainment of
specified Performance Goals, or such other factors (which may vary as between Options) as the Committee may determine in its sole discretion. 
  

	4.4	Exercise of Options 

 Unless otherwise specified by the Committee at the time of granting an Option and
except as otherwise provided in this Plan, each Option will vest and be exercisable as to one-sixteenth of the Common Shares which are subject to such Option, beginning on the date which is three (3) months after the Date of Grant and,
thereafter, one-sixteenth of such Common Shares will vest quarterly on each subsequent three-month anniversary of the Date of Grant, the final one-sixteenth of such Common Shares to vest on the fourth
(4th) anniversary of the Date of Grant. 
 Once an instalment vests and becomes exercisable, it
remains exercisable until expiration or termination of the Option, unless otherwise specified by the Committee in connection with the grant of such Option or otherwise as specified herein. Each Option may be exercised at any time or from time to
time, in whole or in part, for up to the total number of Common Shares with respect to which it is then exercisable. The Committee has the right to accelerate the date upon which any instalment of any Option becomes exercisable. 

Subject to the provisions of this Plan and any Award Agreement, Options shall be exercised by means of a fully completed Exercise Notice delivered to the
Company. 
  

	4.5	Payment of Exercise Price 

 The Exercise Notice must be accompanied by payment in full of the Exercise
Price in respect of the Common Shares to be purchased. The Exercise Price must be fully paid by cash, certified cheque, bank draft or money order payable to the Company. No Common Shares will be issued or transferred until full payment therefor has
been received by the Company. As soon as practicable after receipt of any Exercise Notice and full payment of the Exercise Price, the Company will deliver to the Participant or Director Participant, as the case may be, a certificate or certificates
representing the acquired Common Shares. 

  
 - 12 - 

	4.6	Incentive Stock Options 

 The following provisions will apply only to Incentive Stock Options granted
under the Plan: 
  

	 	(a)	No Incentive Stock Option may be granted to any Employee Participant who, at the time such Option is granted, (i) is not an employee of the Company or a Subsidiary or (ii) owns securities possessing more than
ten percent (10%) of the total combined voting power of all classes of securities of the Company or of any Subsidiary, except that with respect to provision (ii) hereof such an Option may be granted to such an Employee if, at the time the
Option is granted, the exercise price is at least one hundred ten percent (110%) of the Fair Market Value of the Common Shares subject to the Option, and the Option by its terms is not exercisable after the expiration of five (5) years
from the Date of Grant; and 

  

	 	(b)	To the extent that the aggregate Fair Market Value of the Common Shares with respect to which Incentive Stock Options (without regard to this subsection) are exercisable for the first time by any individual during any
calendar year (under all plans of the Company and its Affiliates) exceeds U.S. $100,000, such Options will be treated as Non Qualified Stock Options. This subsection will be applied by taking Options into account in the order in which they were
granted. If some but not all Options granted on any one day are subject to this subsection, then such Options will be apportioned between Incentive Stock Option and Non Qualified Stock Option treatment in such manner as the Committee will determine.
The maximum number of Common Shares that may be issued under Incentive Stock Options granted under the Plan shall be equal to the number of Common Shares issued and outstanding as of the effective date of the Plan. 

 

	4.7	Special Rule Applicable to U.S. Taxpayers 

 With respect to Options granted to Participants or Director
Participants who are U.S. Taxpayers, Common Shares shall constitute “stock of the service recipient” within the meaning of Section 409A of the Code if such Participant or Director Participant performs services for any Affiliate that
is at least fifty percent (50%) owned by the Company. 
 ARTICLE 5 

GRANT OF DEFERRED SHARE UNITS 
  

	5.1	Number of Deferred Share Units 

 The Committee may, from time to time, subject to the provisions of this
Plan and such other terms and conditions as the Committee may prescribe, grant Deferred Share Units to any Participant or Director Participant. 
 All
Deferred Share Units received by a Participant or Director Participant shall be credited to an account maintained for the Participant or the Director Participant on the books of the Company, as of the Date of Grant. The award of Deferred Share Units
for a calendar year to a Participant or Director Participant shall be evidenced by an Award Agreement. 

  
 - 13 - 

	5.2	Distribution of Deferred Share Units 

 A Participant or Director Participant shall receive, on the
Distribution Date, a lump sum payment in cash equal to the number of Deferred Share Units recorded in the Participant’s or Director Participant’s account on the Distribution Date multiplied by the Fair Market Value, less any applicable
withholding taxes. At the option of the Committee, the Company may settle the Deferred Share Units in Common Shares. Upon payment in full of the value of the Deferred Share Units, whether in cash or in Common Shares, the Deferred Share Units shall
be cancelled. 
  

	5.3	Death of Participant Prior to Distribution 

 Upon the death of a Participant or Director Participant
prior to the distribution of the Deferred Share Units credited to the account of such Participant or Director Participant under the Plan, a cash payment shall be made to the estate of such Participant or Director Participant on or about the
thirtieth (30th) day after the Company is notified of the death of the Participant or Director Participant or on a later date elected by the Participant’s or Director Participant’s
estate, in the form prescribed for such purposes by the Company and delivered to the Corporate Secretary no later than twenty (20) days after the Company is notified of the death of the Participant or Director Participant, provided that such
date is no later than the last Business Day of the calendar year following the calendar year in which the Participant or Director Participant dies. Notwithstanding the foregoing, and to the extent necessary to comply with the requirements of
Section 409A of the Code, upon the death of a Participant or a Director Participant who is a U.S. Taxpayer, such cash payment shall be made on the thirtieth (30th) day after such
Participant’s or Director Participant’s death or as soon as practicable thereafter and no subsequent deferral of the payment may be made. Such cash payment shall be equivalent to the amount which would have been paid to the Participant or
Director Participant pursuant to and subject to Section 5.2, calculated on the basis that the day on which the Participant or Director Participant dies, or the date elected by the estate, as applicable, is the Distribution Date. Upon payment in
full of the value of all of the Deferred Share Units that become payable under this Section 5.3, the Deferred Share Units shall be cancelled. 

ARTICLE 6 
 GRANT OF
RESTRICTED SHARE UNITS 
  

	6.1	Grant of RSUs 

 The Committee may, from time to time, subject to the provisions of this Plan and such
other terms and conditions as the Committee may prescribe, grant RSUs to any Participant or any Director Participant. 
  

	6.2	Terms of RSUs 

 The Committee shall have the authority to condition the grant of RSUs upon the attainment
of specified Performance Goals, or such other factors (which may vary as between awards of RSUs) as the Committee may determine in its sole discretion. 
  

	6.3	Vesting of RSUs 

 The Committee shall have the authority to determine at the time of grant, in its sole
discretion, 

  
 - 14 - 

 
the duration of the vesting period and other vesting terms applicable to the grant of RSUs, which terms shall be set out in the applicable Award Agreement. 

 

	6.4	Share Certificates 

 Unless otherwise specified in the Award Agreement, as soon as practicable following
the expiry of the applicable vesting period, or at such later date as may be determined by the Committee in its sole discretion, a share certificate representing the Common Shares issuable pursuant to the RSUs shall be registered in the name of the
Participant or Director Participant, or as the Participant or Director Participant may direct, subject to applicable securities laws. 

ARTICLE 7 
 PERFORMANCE
SHARE UNITS 
  

	7.1	Grant of Performance Share Units 

 The Committee may, from time to time, subject to the provisions of
this Plan and such other terms and conditions as the Committee may prescribe, grant Performance Share Units to any Participant. Each Performance Share Unit will consist of a right, (i) denominated or payable in cash, Common Shares, other
securities or other property, and (ii) which will confer on the holder thereof rights valued as determined by the Committee and payable to, or exercisable by, the holder of the Performance Share Unit, in whole or in part, upon the achievement
of such Performance Goals during such performance periods as the Committee will establish. 
  

	7.2	Value of Performance Share Units 

 The initial value of a Performance Share Unit will be established by
the Committee at the Date of Grant and, to the extent related to Common Shares, other securities or other property will initially be equal to 100% of the Fair Market Value of a Common Share or the fair market value (as determined by the Board) of
such other security or such other property on the Date of Grant. 
  

	7.3	Terms of Performance Share Units 

 Subject to the terms of the Plan and any applicable Award Agreement,
the Performance Goals to be achieved during any performance period, the length of any performance period, the amount of any Performance Share Unit granted, the termination of a Participant’s employment and the amount of any payment or transfer
to be made pursuant to any Performance Share Unit will be determined by the Committee and by the other terms and conditions of any Performance Share Unit. 
  

	7.4	Performance Goals 

 The Committee will issue Performance Goals prior to the commencement of the
performance period to which such Performance Goals pertain. The Performance Goals may be based upon the achievement of Company-wide, divisional or individual goals, or any other basis determined by the Committee. The Committee may modify the
Performance Goals as necessary to align them with the Company’s corporate objectives if there is a subsequent material change in the Company’s business, operations or capital or corporate structure. Notwithstanding the foregoing, to the
extent deemed desirable by the Committee, in the case of a Covered Employee, 

  
 - 15 - 

 
the Performance Goals set forth in Section 2.1 shall apply. 
 ARTICLE 8

 OTHER SHARE-BASED AWARDS 
  

	8.1	Other Share-Based Awards 

 The Committee may, from time to time, subject to the provisions of this Plan
and such other terms and conditions as the Committee may prescribe, grant Other Share-Based Awards to any Participant. Each Other Share-Based Award will consist of a right (1) which is other than an Award or right described in Article 4, 5, 6
or 7 above and (2) which is denominated or payable in, valued in whole or in part by reference to, or otherwise based on or related to, Common Shares (including, without limitation, securities convertible into Common Shares) as are deemed by
the Committee to be consistent with the purposes of the Plan; provided, however, that such right will comply with applicable law. Subject to the terms of the Plan and any applicable Award Agreement, the Committee will determine the terms and
conditions of Other Share-Based Awards. Common Shares or other securities delivered pursuant to a purchase right granted under this Section 8.1 will be purchased for such consideration, which may be paid by such method or methods and in such
form or forms, including, without limitation, cash, Common Shares, other securities, other Awards, other property, or any combination thereof, as the Committee will determine. 

ARTICLE 9 
 TERMINATION
OF EMPLOYMENT 
  

	9.1	Retirement, Death or Disability 

 Subject to Section 5.3, if a Participant or Director Participant
dies or becomes Disabled while an employee, officer or director of or consultant to the Company or an Affiliate or if the employment or term of office or engagement of a Participant with the Company or an Affiliate terminates due to Retirement: 

 

	 	(a)	the executor or administrator of the Participant’s or Director Participant’s estate or the Participant or Director Participant, as the case may be, may exercise Options of the Participant or Director
Participant. The number of Options exercisable shall equal: 

  

	 	(i)	the number of Options that were exercisable at the Termination Date; plus 

  

	 	(ii)	a portion of the next instalment of the Options due to vest equal to the number of Options next due to vest multiplied by a fraction the numerator of which is the number of days elapsed since the date of vesting of the
last instalment of the Options (or if none have vested, the Date of Grant) to the Termination Date and the denominator of which is the number of days between the date of vesting of the last instalment of the Option (or if none have vested, the Date
of Grant) and the date of vesting of the next instalment of the Option; 

  
 - 16 - 

	 	(b)	the right to exercise such Options terminates on the earlier of: (i) the date that is twelve months after the Termination Date (except that in the case of Retirement of a U.S. Taxpayer, any Incentive Stock Option
shall expire on the date that is three months after the Termination Date); and (ii) the date on which the Exercise Period of the particular Option expires. Subject to subsection (a), any Options held by the Participant or Director Participant
that are not yet exercisable at the Termination Date immediately expire and are cancelled on the Termination Date; 

  

	 	(c)	a portion of the next instalment of any other Awards due to vest shall immediately vest, such portion to equal the number of Awards next due to vest multiplied by a fraction the numerator of which is the number of days
elapsed since the date of vesting of the last instalment of the Awards (or if none have vested, the Date of Grant) to the Termination Date and the denominator of which is the number of days between the date of vesting of the last instalment of the
Awards (or if none have vested, the Date of Grant) and the date of vesting of the next instalment of the Awards; 

  

	 	(d)	subject to subsection (c), any other Awards held by the Participant or Director Participant that are not yet vested at the Termination Date are immediately forfeited to the Company on the Termination Date; and

  

	 	(e)	such Participant’s or Director Participant’s eligibility to receive further grants of Awards under the Plan ceases as of the Termination Date. 

 

	9.2	Termination of Employment or Services 

  

	 	(a)	Where a Participant’s or Director Participant’s employment or term of office or engagement with the Company or an Affiliate terminates by reason of the Participant’s death, Disability or Retirement or, in
the case of a Director Participant, the Director Participant’s death or Disability, then the provisions of Section 9.1 will apply. 

  

	 	(b)	Where a Participant’s employment or term of office or engagement terminates by reason of a Participant’s resignation, then any Options held by the Participant that are exercisable at the Termination Date
continue to be exercisable by the Participant until the earlier of: (A) the date that is 30 days after the Termination Date; and (B) the date on which the Exercise Period of the particular Option expires. Any Options held by the
Participant that are not yet exercisable at the Termination Date immediately expire and are cancelled on the Termination Date, and any other Awards held by the Participant that are not yet vested at the Termination Date are immediately forfeited to
the Company on the Termination Date. 

  

	 	(c)	 Where a Participant’s employment or term of office or engagement terminates by reason of termination by the Company or an Affiliate without cause
(as determined by the Committee in its sole discretion) (whether such termination occurs with or without any or adequate notice or reasonable notice, or with or without any or adequate compensation in lieu of such notice), then, unless otherwise
specified in the Award Agreement, any Options held by the Participant 

  
 - 17 - 

	 	
that are exercisable at the Termination Date continue to be exercisable by the Participant until the earlier of: (A) the date that is 90 days after the Termination Date; and (B) the
date on which the Exercise Period of the particular Option expires. Any Options held by the Participant that are not yet exercisable at the Termination Date immediately expire and are cancelled on the Termination Date, and any other Awards held by
the Participant that are not yet vested at the Termination Date are immediately forfeited to the Company on the Termination Date. 

  

	 	(d)	Where a Participant’s employment or term of office or engagement is terminated by the Company or an Affiliate for cause (as determined by the Committee in its sole discretion), or, in the case of a Consultant
Participant, for breach of contract (as determined by the Committee in its sole discretion), then any Options held by the Participant at the Termination Date (whether or not exercisable) immediately expire and are cancelled on the Termination Date,
and any other Awards held by the Participant at the Termination Date (whether or not vested) are immediately forfeited to the Company on the Termination Date. 

  

	 	(e)	Where a Director Participant’s term of office is terminated for breach by the Director Participant of his or her fiduciary duty to the Company (as determined by the Committee in its sole discretion), then any
Options held by the Director Participant at the Termination Date (whether or not exercisable) immediately expire and are cancelled on the Termination Date, and any other Awards held by the Director Participant at the Termination Date (whether or not
vested) are immediately forfeited to the Company on the Termination Date. 

  

	 	(f)	Where a Director Participant’s term of office terminates for any reason other than death or Disability of the Director Participant or a breach by the Director Participant of his or her fiduciary duty to the Company
(as determined by the Committee in its sole discretion), the Committee or the Board may, in its sole discretion, at any time prior to or following the Termination Date, (A) permit the exercise of any or all Options held by the Director
Participant, whether or not exercisable at the Termination Date, in the manner and on the terms authorized by the Board, provided that neither the Committee nor the Board shall, in any case, authorize the exercise of an Option pursuant to this
Section beyond the date on which the Exercise Period of the particular Option expires; and (B) provide for the vesting of any or all other Awards held by a Director Participant on the Termination Date. 

 

	 	(g)	The eligibility of a Participant or Director Participant to receive further grants under the Plan ceases as of the date that the Company or an Affiliate, as the case may be, provides the Participant or Director
Participant with written notification that the Participant’s employment or term of office, or the Director Participant’s term of office, as the case may be, is terminated, notwithstanding that such date may be prior to the Termination
Date. 

  

	 	(h)	 Unless the Committee, in its sole discretion, otherwise determines, at any time and from time to time, Awards are not affected by a change of
employment 

  
 - 18 - 

	 	
arrangement within or among the Company or a Subsidiary for so long as the Participant continues to be an employee of the Company or a Subsidiary, including without limitation a change in the
employment arrangement of a Participant whereby such Participant becomes a Director Participant. 

  

	9.3	Discretion to Permit Exercise 

 Notwithstanding the provisions of Sections 9.1 and 9.2, the Committee
may, in its discretion, at any time prior to or following the events contemplated in such Sections, permit the exercise of any or all Options held by a Participant or Director Participant or permit the acceleration of vesting of any or all RSUs or
other Awards, all in the manner and on the terms as may be authorized by the Committee, provided that the Committee will not, in any case, authorize the exercise of an Option pursuant to this Section beyond the expiration of the Exercise Period of
the particular Option. 
  

	9.4	Incentive Stock Options 

 Notwithstanding anything to the contrary in this Article 9, in the case of an
Incentive Stock Option, any Incentive Stock Options held by a U.S. Taxpayer that are exercisable at the Termination Date continue to be exercisable by the U.S. Taxpayer until the earlier of: (A) the date that is three months after the
Termination Date; (B) the date on which the Exercise Period of the particular Incentive Stock Option expires; or (C) any shorter post-Termination Date exercise period as is set forth in this Article 9 or in the U.S. Taxpayer’s Award
Agreement. 
 ARTICLE 10 

CHANGE IN CONTROL 
  

	10.1	Change in Control 

  

	 	(a)	 Unless otherwise determined by the Committee or the Board at or after the Date of Grant, and notwithstanding Section 12.7(b), any Options
outstanding immediately prior to the occurrence of a Change in Control, but which are not then exercisable, shall terminate and be cancelled upon the occurrence of the Change in Control and shall be of no further force or effect. Unless otherwise
determined by the Committee or the Board at or after the Date of Grant, all outstanding vested Options shall be cashed out at the Change in Control Price, less the applicable Exercise Price for such Options, as of the date such Change in Control is
determined to have occurred, or as of such other date as the Committee or the Board may determine prior to the Change in Control. Outstanding Options may only be cashed out, as described above, if the Change in Control Price is higher than the
Exercise Price for such outstanding Options. If the Change in Control Price is equal to or lower than the Exercise Price for such outstanding Options, the Committee or the Board may terminate such outstanding Options and such outstanding Options
shall be of no further force or effect. Further, the Committee or the Board shall have the right to provide, in respect of any Options outstanding immediately prior to a Change in Control, but which are not then exercisable, for the acceleration of
vesting of such Options upon the occurrence of the Change in Control or to provide for the conversion or exchange of any 

  
 - 19 - 

	 	
outstanding Options into or for options, rights or other securities in any entity participating in or resulting from the Change in Control. 

 

	 	(b)	Unless otherwise determined by the Committee or the Board at or after the Date of Grant, and notwithstanding Section 12.7(b), any unvested or unearned Restricted Share Units, Deferred Share Units, Performance Share
Units or Other Share-Based Awards outstanding immediately prior to the occurrence of a Change in Control shall terminate and be cancelled upon the occurrence of the Change in Control and shall be of no further force or effect. Notwithstanding the
foregoing sentence, the Committee or the Board shall have the right to determine that any unvested or unearned Restricted Share Units, Deferred Share Units, Performance Share Units or Other Share-Based Awards outstanding immediately prior to the
occurrence of a Change in Control shall become fully vested or earned upon the occurrence of such Change in Control. The Committee or the Board may also determine that any vested or earned Restricted Share Units, Deferred Share Units, Performance
Share Units or Other Share-Based Awards shall be cashed out at the Change in Control Price as of the date such Change in Control is deemed to have occurred, or as of such other date as the Committee or the Board may determine prior to the Change in
Control. Further, the Committee or the Board shall have the right to provide for the conversion or exchange of any Restricted Share Unit, Deferred Share Unit, Performance Share Unit or Other Share-Based Award into or for rights or other securities
in any entity participating in or resulting from the Change in Control. 

  

	10.2	Parachute Payments 

 If a Participant or Director Participant is entitled to receive payments that would
qualify as excess “parachute payments” under Section 280G of the Code, those payments shall be reduced by the necessary amount so that the Participant or Director Participant is not subject to excise tax under Section 4999 of the
Code if such reduction would result in the Participant or Director Participant receiving a greater after-tax payment. 
 ARTICLE 11

 SHARE CAPITAL ADJUSTMENTS 
  

	11.1	General 

 The existence of any Awards does not affect in any way the right or power of the Company or its
shareholders to make, authorize or determine any adjustment, recapitalization, reorganization or any other change in the Company’s capital structure or its business, or any amalgamation, combination, arrangement, merger or consolidation
involving the Company, to create or issue any bonds, debentures, Common Shares or other securities of the Company or to determine the rights and conditions attaching thereto, to effect the dissolution or liquidation of the Company or any sale or
transfer of all or any part of its assets or business, or to effect any other corporate act or proceeding, whether of a similar character or otherwise, whether or not any such action referred to in this Section would have an adverse effect on this
Plan or on any Award granted hereunder. 

  
 - 20 - 

	11.2	Reorganization of Company’s Capital 

 Should the Company effect a subdivision or consolidation of
Common Shares or any similar capital reorganization or a payment of a stock dividend (other than a stock dividend that is in lieu of a cash dividend), or should any other change be made in the capitalization of the Company that does not constitute a
Change in Control and that would warrant the amendment or replacement of any existing Awards in order to adjust: (a) the number of Common Shares that may be acquired on the vesting of outstanding Awards or the exercise of any outstanding
Options; and/or (b) the Exercise Price of any outstanding Options; and/or (c) the terms of any other Award in order to preserve proportionately the rights and obligations of the Participants or Director Participants holding such Awards,
the Board will authorize such steps to be taken as it may consider to be equitable and appropriate to that end. 
  

	11.3	Other Events Affecting the Company 

 In the event of an amalgamation, combination, arrangement, merger or
other transaction or reorganization involving the Company and occurring by exchange of Common Shares, by sale or lease of assets or otherwise, that does not constitute a Change in Control and that warrants the amendment or replacement of any
existing Awards in order to adjust: (a) the number of Common Shares that may be acquired on the vesting of outstanding Awards or the exercise of any outstanding Options; or (b) the Exercise Price of any outstanding Options; and/or
(c) the terms of any other Award in order to preserve proportionately the rights and obligations of the Participants or Director Participants holding such Awards, the Board will authorize such steps to be taken as it may consider to be
equitable and appropriate to that end. 
  

	11.4	Immediate Exercise of Awards 

 Where the Board determines that the steps provided in Sections 11.2 and
11.3 would not preserve proportionately the rights, value and obligations of the Participants or Director Participants holding such Awards in the circumstances or otherwise determines that it is appropriate: 

 

	 	(a)	the Board may permit the immediate exercise of any outstanding Options that are not otherwise exercisable, and the immediate vesting of any unvested Awards; and 

 

	 	(b)	if the Board takes the step contemplated in (a) above, the Board may also authorize the Company, to the extent permitted under applicable laws, to: 

 

	 	(i)	offer to purchase any Options from any Participant or Director Participants for a price equal to the difference between the Fair Market Value of the underlying Common Shares and the Exercise Price of the Options; or

  

	 	(ii)	lend to Participants an amount equal to the aggregate Exercise Price for those Options of the Participant which have an Exercise Price which is less than the Fair Market Value of the underlying Common Shares at a rate
of interest equal to the current prime rate plus one percent provided that the Participant irrevocably: 

  
 - 21 - 

	 	(A)	agrees to exercise all such Options of the Participant; and 

  

	 	(B)	authorizes the Company to sell, dispose of or deposit in acceptance of an outstanding take-over bid the Common Shares issuable upon the exercise of such Options, to deduct from the proceeds of sale of such Common Shares
an amount equal to the outstanding balance of the loan plus accrued interest in payment of such loan, to mail a cheque payable to the Participant for the balance of the proceeds of sale and to execute and deliver on behalf of the Participant all
transfers, consents or other documents necessary to give effect to the foregoing. 

  

	11.5	Issue by Company of Additional Shares 

 Except as expressly provided in this Article 11, neither the
issue by the Company of shares of any class or securities convertible into or exchangeable for shares of any class, nor the conversion or exchange of such shares or securities, affects, and no adjustment by reason thereof is to be made with respect
to: (a) the number of Common Shares that may be acquired as a result of a grant of Awards or upon the exercise of any outstanding Options; or (b) the Exercise Price of any outstanding Options. 

 

	11.6	Fractions 

 No fractional Common Shares will be issued on the exercise of an Option or the grant of an
Award. Accordingly, if, as a result of any adjustment under Section 11.2 or 11.3, a Participant or Director Participant would become entitled to a fractional Common Share, the Participant or Director Participant has the right to acquire only
the adjusted number of full Common Shares and no payment or other adjustment will be made with respect to the fractional Common Shares which shall be disregarded. 

ARTICLE 12 

MISCELLANEOUS PROVISIONS 
  

	12.1	Legal Requirement 

 The Company is not obligated to grant any Awards, issue any Common Shares or other
securities, make any payments or take any other action if, in the opinion of the Board, in its sole discretion, such action would constitute a violation by a Participant, Director Participant or the Company of any provision of any applicable
statutory or regulatory enactment of any government or government agency or the requirements of any stock exchange upon which the Common Shares may then be listed. 
  

	12.2	Participants’ Entitlement 

 Except as otherwise provided in this Plan, Options (whether or not
exercisable) and other Awards previously granted under this Plan are not affected by any change in the relationship between, or ownership of, the Company and an Affiliate. For greater certainty, all grants of Awards remain valid and all Options
remain valid and exercisable in accordance with the terms 

  
 - 22 - 

 
and conditions of this Plan and are not affected by reason only that, at any time, an Affiliate ceases to be an Affiliate. 

 

	12.3	Withholding Taxes 

 The granting or vesting of each Award and exercise of each Option granted under this
Plan is subject to the condition that if at any time the Committee determines, in its discretion, that the satisfaction of withholding tax or other withholding liabilities is necessary or desirable in respect of such grant, vesting or exercise, such
exercise is not effective unless such withholding has been effected to the satisfaction of the Committee. In such circumstances, the Committee may require that the withholding tax obligation be satisfied by any of the following methods or by a
combination of such methods: 
  

	 	(a)	the tendering by the Participant or Director Participant of cash payment to the Company in an amount less than or equal to the total withholding tax obligation; or 

 

	 	(b)	permitting the Participant to direct the Company to withhold from the Common Shares otherwise due to the Participant or Director Participant such number of Common Shares having a Fair Market Value, determined as of the
date the withholding tax obligation arises, less than or equal to the amount of the total withholding tax obligation; or 

  

	 	(c)	the withholding by the Company from any cash payment otherwise due to the Participant or Director Participant such amount of cash as is less than or equal to the amount of the total withholding tax obligation;

 provided, however, that the sum of any cash so paid or withheld and the Fair Market Value of any Common Shares so withheld is sufficient to
satisfy the total withholding tax obligation. Any such additional payment is due no later than the date on which any amount with respect to the Award or exercised Option is required to be remitted to the relevant tax authority by the Company or an
Affiliate, as the case may be. 
  

	12.4	Rights of Participant 

 No Participant or Director Participant has any claim or right to be granted an
Award (including, without limitation, an Option granted in substitution for any Option that has expired pursuant to the terms of this Plan) and the granting of any Award is not to be construed as giving a Participant or Director Participant a right
to remain as an employee, consultant or director of the Company or an Affiliate. No Participant or Director Participant has any rights as a shareholder of the Company in respect of Common Shares issuable on the exercise of any Option or issuable
pursuant to any other Award until the allotment and issuance to such Participant or Director Participant of certificates representing such Common Shares. 
  

	12.5	Other Incentive Awards 

 The Committee shall have the right to grant other incentive awards based upon
Common Shares under this Plan to Participants or Director Participants in accordance with applicable laws and regulations and subject to regulatory approval, including without limitation the approval of the

  
 - 23 - 

 
Toronto Stock Exchange and Nasdaq (to the extent the Company has any securities listed on the particular exchange), having such terms and conditions as the Committee may determine, including
without limitation the grant of Common Shares based upon certain conditions and the grant of securities convertible into Common Shares. 
  

	12.6	Termination 

 The Plan will terminate on the earliest of: (i) the date upon which no further Common
Shares remain available for issuance under the Plan and no Options or other Awards remain outstanding; and (ii) the acceleration of the vesting of Options and other Awards pursuant to Section 10.1 upon the occurrence of a Change in
Control, unless renewed for such further period and upon such terms and conditions as the Committee may determine, but in all events the Plan will automatically terminate on March 25, 2024, being the tenth anniversary of the effective date of
the Plan. 
  

	12.7	Amendment 

  

	 	(a)	Subject to the rules and policies of any stock exchange on which the Common Shares are listed and applicable law, the Board may, without notice or shareholder approval, at any time or from time to time, amend the Plan
for the purposes of: 

  

	 	(i)	making any amendments to the general vesting provisions of each Option, RSU or other Award; 

  

	 	(ii)	making any amendments to the general term of each Option provided that no Option held by an Insider may be extended beyond its original expiry date and no Option may be exercised after the tenth (10th) anniversary
of the Date of Grant; 

  

	 	(iii)	making any amendments to the provisions set out in Article 9; 

  

	 	(iv)	making any amendments to add covenants of the Company for the protection of Participants or Director Participants, as the case may be, provided that the Board shall be of the good faith opinion that such additions will
not be prejudicial to the rights or interests of the Participants or Director Participants, as the case may be; 

  

	 	(v)	making any amendments not inconsistent with the Plan as may be necessary or desirable with respect to matters or questions which, in the good faith opinion of the Board, having in mind the best interests of the
Participants and Director Participants, it may be expedient to make, including amendments that are desirable as a result of changes in law in any jurisdiction where a Participant or Director Participant resides, provided that the Board shall be of
the opinion that such amendments and modifications will not be prejudicial to the interests of the Participants and Director Participants; or 

  
 - 24 - 

	 	(vi)	making such changes or corrections which, on the advice of counsel to the Company, are required for the purpose of curing or correcting any ambiguity or defect or inconsistent provision or clerical omission or mistake
or manifest error, provided that the Board shall be of the opinion that such changes or corrections will not be prejudicial to the rights and interests of the Participants or Director Participants. 

 

	 	(b)	Subject to Section 10.1, the Board shall not alter or impair any rights or increase any obligations with respect to an Award previously granted under the Plan without the consent of the Participant or Director
Participant, as the case may be. 

  

	 	(c)	Notwithstanding any other provision of this Plan, none of the following amendments shall be made to this Plan without approval of the Toronto Stock Exchange and Nasdaq (to the extent such consent is required and the
Company has any securities listed on the particular exchange) and the approval of shareholders in accordance with the requirements of such exchange(s): 

  

	 	(i)	amendments to the Plan which would increase the number of Common Shares issuable under the Plan, except in connection with a Change in Control or pursuant to the provisions in the Plan, including Sections 11.2 and
11.3, which permit the Board to make adjustments in the event of transactions affecting the Company or its capital; 

  

	 	(ii)	amendments to the Plan which would increase the number of Common Shares issuable to Insiders, except in connection with a Change in Control or pursuant to the provisions in the Plan, including Sections 11.2 and
11.3, which permit the Board to make adjustments in the event of transactions affecting the Company or its capital; 

  

	 	(iii)	amendments to the Plan which would increase the number of Common Shares issuable to Director Participants under the Plan, otherwise than in accordance with the terms of this Plan; 

 

	 	(iv)	amendments that would extend the Exercise Period of any Options held by Insiders, beyond the Exercise Period otherwise determined in accordance with this Plan (except the automatic extension of Options which otherwise
would expire during or immediately after a Blackout Period as provided in this Plan); 

  

	 	(v)	amendments that would extend the expiry of an Option to be beyond ten years from its date of grant; 

  

	 	(vi)	 amendments that would reduce the Exercise Price of any Options held by Insiders (for this purpose, a cancellation or termination of an Option of a
Participant or Director Participant prior to its expiry date for the purpose of reissuing an Option to the same Participant or Director Participant within three (3) months of such cancellation or termination with a lower exercise price shall be
treated as an amendment to reduce the exercise price of an Option), except for the purpose of maintaining Option value in 

  
 - 25 - 

	 	
connection with a Change in Control or pursuant to the provisions in the Plan, including Sections 11.2 and 11.3, which permit the Board to make adjustments in the event of transactions affecting
the Company or its capital; 

  

	 	(vii)	the addition of any form of financial assistance to a Participant or Director Participant; 

  

	 	(viii)	amendments that would permit Options or rights under the Plan to be transferred other than for normal estate settlement purposes; 

  

	 	(ix)	amendments to this Section 12.7; and 

  

	 	(x)	amendments for which the applicable exchange rules require shareholder approval. 

 Any amendment that
would cause an Award held by a U.S. Taxpayer to fail to comply with Section 409A of the Code shall be null and void ab initio. 
  

	12.8	Section 409A of the Code 

 This Plan will be construed and interpreted to comply with
Section 409A of the Code to the extent required to preserve the intended tax consequences of this Plan. The Company reserves the right to amend this Plan to the extent it reasonably determines is necessary in order to preserve the intended tax
consequences of this Plan in light of Section 409A of the Code and any regulations or guidance under that section. In no event will the Company be responsible if Awards under this Plan result in adverse tax consequences to a U.S. Taxpayer under
Section 409A of the Code. Notwithstanding any provisions of the Plan to the contrary, in the case of any “specified employee” within the meaning of Section 409A of the Code who is a U.S. Taxpayer, distributions of non-qualified
deferred compensation under Section 409A of the Code made in connection with a “separation from service” within the meaning set forth in Section 409A of the Code may not be made prior to the date which is six months after the
date of separation from service (or, if earlier, the date of death of the U.S. Taxpayer). Any amounts subject to a delay in payment pursuant to the preceding sentence shall be paid as soon practicable following such six-month anniversary of such
separation from service. 
  

	12.9	Requirement of Notification of Election Under Section 83(b) of the Code 

 If a Participant or
Director Participant, in connection with the acquisition of Common Shares under the Plan, is permitted under the terms of the Award Agreement to make the election permitted under Section 83(b) of the Code (i.e., an election to include in gross
income in the year of transfer the amounts specified in Section 83(b) of the Code notwithstanding the continuing transfer restrictions) and the Participant or Director Participant makes such an election, the Participant or Director Participant
shall notify the Company of such election within ten (10) days of filing notice of the election with the Internal Revenue Service, in addition to any filing and notification required pursuant to regulations issued under Section 83(b) of
the Code. 

  
 - 26 - 

	12.10	Requirement of Notification Upon Disqualifying Disposition Under Section 421(b) of the Code 

 If any
Participant shall make any disposition of Common Shares issued pursuant to the exercise of an Incentive Stock Option under the circumstances described in Section 421(b) of the Code (relating to certain disqualifying dispositions), such
Participant shall notify the Company of such disposition within ten (10) days thereof. 
  

	12.11	Indemnification 

 Every member of the Board will at all times be indemnified and saved harmless by the
Company from and against all costs, charges and expenses whatsoever including any income tax liability arising from any such indemnification, that such member may sustain or incur by reason of any action, suit or proceeding, taken or threatened
against the member, otherwise than by the Company, for or in respect of any act done or omitted by the member in respect of this Plan, such costs, charges and expenses to include any amount paid to settle such action, suit or proceeding or in
satisfaction of any judgment rendered therein. 
  

	12.12	Participation in the Plan 

 The participation of any Participant or Director Participant in the Plan is
entirely voluntary and not obligatory and shall not be interpreted as conferring upon such Participant or Director Participant any rights or privileges other than those rights and privileges expressly provided in the Plan. In particular,
participation in the Plan does not constitute a condition of employment or engagement nor a commitment on the part of the Company to ensure the continued employment or engagement of such Participant or Director Participant. The Plan does not provide
any guarantee against any loss which may result from fluctuations in the market value of the Common Shares. The Company does not assume responsibility for the income or other tax consequences for the Participants and Director Participants and they
are advised to consult with their own tax advisors. 
  

	12.13	Participant Information and Consent to Data Transfer 

 Each Participant shall provide the Company with
all information (including personal information) required by the Company in order to administer the Plan. By participating in the Plan, the Participant explicitly and unambiguously consents to the collection, use and transfer, in electronic or other
form, of the Participant’s personal data by and among, as applicable, the Company, any Affiliate and any third party administrator retained by the Company for the exclusive purpose of implementing, administering and managing the Plan and all
entitlements under the Plan. The Participant understands that the Company and/or Affiliates hold certain personal information, including, but not limited to, the Participant’s name, home address and telephone number, date of birth, social
insurance number or other identification number, salary, nationality, job title, any shares or directorships held in the Company, the Affiliates and details of any entitlements under the Plan, for the purpose of implementing, administering and
managing the Plan (collectively, “Data”). The Participant understands that Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located
in the Participant’s country or elsewhere, and that the recipient’s country may have different data privacy laws and protections from the Participant’s country. The Participant understands that he or she may have the right, if
residing in 

  
 - 27 - 

 
a particular jurisdiction to request a list with the names and addresses of any potential recipients of the Data by contacting the local human resources representative. The Participant authorizes
the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the awards granted under the Plan. The Participant understands that Data will be held
only as long as is necessary to implement, administer and manage the Participant’s entitlements under the Plan and comply with applicable laws. The Participant understands that he or she may have the right, if residing in a particular
jurisdiction, at any time, to view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing
his or her local human resources representative. The Participant understands, however, that refusing or withdrawing his or her consent may affect the Participant’s ability to participate in the Plan. For more information on the consequences of
the Participant’s refusal to consent or withdrawal of consent, the Participant understands that he or she may contact the applicable local human resources representative. 

 

	12.14	International Participants 

 With respect to Participants or Director Participants who reside or work
outside Canada and the United States, the Board may, in its sole discretion, amend, or otherwise modify, without shareholder approval, the terms of the Plan or Awards with respect to such Participants or Director Participants in order to conform
such terms with the provisions of local law, and the Committee may, where appropriate, establish one or more sub-plans to reflect such amended or otherwise modified provisions. 

 

	12.15	Effective Date 

 This Plan becomes effective on a date to be determined by the Board. 

 

	12.16	Governing Law 

 This Plan is created under and is to be governed, construed and administered in
accordance with the laws of the Province of Ontario and the laws of Canada applicable therein. 
 MITEL NETWORKS CORPORATION 

  
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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00230-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00230-of-00352.parquet"}]]