Document:

Employment Agreement

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 THIS AGREEMENT is entered into as of the 6th
day of December, 2011, by and between Heritage Bank (“Bank”) and P. Michael Foley III (the “Employee”). 

WHEREAS, the Employee has agreed to serve in a position of substantial authority; and 

WHEREAS, the Bank desires to ensure the Employee’s services for the term of this Agreement; and 

WHEREAS, the Employee is willing to serve in the employ of the Bank on the terms and conditions set forth below, and the Board of
Directors of the Bank (the “Board”) has determined that such terms and conditions are reasonable and in the best interests of the Bank. 
 NOW, THEREFORE, it is AGREED as follows: 
 1. Employment. Effective
December 15, 2011 (“Effective Date”) the Employee is hereby employed by the Bank as its Vice President, Chief Credit Officer. Except to the extent that the President and Chief Executive Officer of the Bank shall have delegated a
portion of such authority to one or more other officers, as Senior Vice President, Chief Credit Officer of the Bank the Employee shall perform such administrative and management services for the Bank as are currently rendered and as are customarily
performed by persons situated in a similar executive capacity, and as described in the Chief Credit Officer job description attached as Exhibit A. The parties recognize that the job description may not be an exhaustive list of all duties of
Employee. Assignment of different or additional duties shall not be construed as a breach of this Agreement by the Bank. The Employee shall also promote by entertainment or otherwise, as and to the extent permitted by law, the business of the Bank.

 2. Base Compensation. The Bank agrees to pay the Employee as Vice President, Chief Credit Officer during the term of
this Agreement a salary (the “Base Salary”) at the rate of $170,000.00 per annum, payable in cash not less frequently than monthly. The Board shall review, not less often than annually, the rate of the Employee’s Base Salary, and in
its sole discretion may decide to increase his Base Salary. 
 3. Discretionary Bonuses. The Employee shall participate
in an equitable manner with all other senior management employees of the Bank in discretionary bonuses that the Board may award from time to time to the Bank’s senior management employees. No other compensation provided for in this Agreement
shall be deemed a substitute for the Employee’s right to participate in such discretionary bonuses. Any annual bonus awarded to the Employee will be paid to him no later than March 15 following the fiscal year in which the bonus was
earned. 
 4. Relocation Expense Reimbursement. The Bank agrees to deliver to the Employee a one-time relocation expense
reimbursement in the amount of $15,000.00 (“Expense Reimbursement”) which shall be paid in full no later than December 15, 2011. Provided, in the event the Employee ceases employment with the Bank at any time prior to
December 14, 2014, resulting from any reason other than death, disability or change in control (under Section 12), then the Employee shall be required to repay the Bank an amount equivalent to 1/36 of the Expense Reimbursement for each
full month remaining from the date of termination of employment to December 14, 2014. Such repayment shall be due and payable immediately, and the Bank shall be entitled to set off any amount due hereunder from any compensation which may
otherwise be due from Heritage to Employee. 

 5. (a) Participation in Retirement, Medical and Other Plans. The Employee shall be
entitled to participate in any plan that the Bank maintains for the benefit of its employees if the plan relates to (i) pension, profit-sharing, or other retirement benefits, (ii) medical insurance or the reimbursement of medical or
dependent care expenses, or (iii) other group benefits, including disability and life insurance plans. 
 (b) Employee
Benefits. The Employee shall participate in any fringe benefits that are or may become available to the Bank’s senior management employees, including, for example: any stock option or incentive compensation plans and any other benefits that
are commensurate with the responsibilities and functions to be performed by the Employee under this Agreement. 
 (c)
Expenses. The employee shall be reimbursed for all reasonable out-of-pocket business expenses that he shall incur in connection with his services under this Agreement upon substantiation of such expenses in accordance with the policies of the
Bank. 
 6. Term. The Bank hereby employs the Employee, and the Employee hereby accepts such employment under this
Agreement, for the period commencing on the Effective Date hereof and ending December 14, 2014 (or such earlier date as is determined in accordance with Section 10 hereof). Additionally, on each annual anniversary date from the Effective
Date, the Employee’s term of employment may be extended for an additional one-year-period beyond the then effective expiration date; provided, however, that the Board of Directors of the Bank determines in a duly adopted resolution that the
performance of the Employee has met the Board’s requirements and standards and that this Agreement shall be extended. 
 7.
Loyalty, Full Time and Attention. 
 (a) During the period of his employment hereunder and except for illness, reasonable
vacation periods, and reasonable leaves of absence, the Employee shall devote all his full business time, attention, skill, and efforts to the faithful performance of this duties hereunder; provided that, from time to time, the Employee may serve on
the board of directors of, and hold any other offices or positions in, companies or organizations, that will not present any conflict of interest with the Bank or any of its subsidiaries or affiliates, or unfavorably affect the performance of
employee’s duties pursuant to this Agreement, or will not violate any applicable statute or regulation. “Full business time” is hereby defined as that amount of time usually devoted to like companies by similarly situated executive
officers. During the term of his employment under this Agreement, the Employee shall not engage in any business or activity contrary to the business affairs or interest of the Bank, or be gainfully employed in any other position or job other than as
provided above. 
 (b) Nothing contained in this Section 7 shall be deemed to prevent or limit the Employee’s right to
invest in capital stock or other securities of any business dissimilar from that of the Bank, or, solely as a passive or minority investor, in any business not in direct or indirect competition with the Bank. 

8. Standards. The Employee shall perform his duties under this Agreement in accordance with such reasonable standards as the Board
may establish from time to time. The Bank will provide the Employee with the working facilities and staff customary for similar executive officers and necessary for him to perform his duties. 

  
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 9. Vacation and Sick Leave. The Employee shall be entitled, without loss of pay, to
absent himself voluntarily from the performance of his duties under this Agreement in accordance with the terms set forth below, all such voluntary absences to count as vacation time, provided that: 

(a) The Employee shall be entitled to three (3) weeks of annual vacation in accordance with the policies periodically established by
the Board for senior management employees at the Bank. 
 (b) The Employee shall not receive any additional compensation from
the Bank on account of his failure to take a vacation, and the Employee shall not accumulate unused vacation from one fiscal year to the next, except in either case to the extent authorized by the Board. 

(c) In addition to the aforesaid paid vacations, the Employee shall be entitled without loss of pay, to absent himself voluntarily from
the performance of his employment obligations with the Bank for such additional periods of time and for such valid and legitimate reasons as the Board may in its discretion approve. Further, the Board may grant to the Employee a leave or leaves of
absence, with or without pay, at such time or times and upon such terms and conditions as the Board in its discretion may determine. 
 (d) In addition, the Employee shall be entitled to an annual sick leave benefit as established by the Board. 
 10. Termination and Termination Pay. Subject to Section 12 hereof, the Employee’s employment hereunder may be terminated under the following circumstances: 

(a) Death. The Employee’s employment under this Agreement shall terminate upon his death during the term of this Agreement,
in which event the Employee’s estate shall be entitled to receive the compensation due the Employee for the remaining term of the contract, paid on the payroll date that such installment would have been paid had it constituted base salary to an
active employee rather than a death benefit to the Employee’s estate. In addition, the Employee’s estate shall receive any accrued and unpaid discretionary bonus due the Employee at the time of his death, payable in a lump sum amount
within 30 days of the Employee’s death. 
 (b) Disability. The Bank may terminate the Employee’s employment
after having established, through a determination by the Board, the Employee’s Disability. For purposes of this Agreement, “Disability” means a physical or mental infirmity that impairs the Employee’s ability to substantially
perform his duties under this Agreement and that results in the Employee becoming eligible for long-term disability benefits under the Bank’s long-term disability plan (or, if the Bank has no such plan in effect, that impairs the
Employee’s ability to substantially perform his duties under this Agreement for a period of 180 consecutive days). The Employee shall be entitled to the compensation and benefits provided for under this Agreement for (i) any period during
the term of this Agreement and prior to the establishment of the Employee’s Disability during which the Employee is unable to work due to the physical or mental infirmity or (ii) any period of disability that is prior to the
Employee’s termination of employment pursuant to this Section 10(b); provided, however, that any benefits paid pursuant to the Bank’s long-term disability plan will continue as provided in such plan. Any compensation provided to
Employee under this Section 10(b) shall be paid on the payroll date that such installment would have been paid had such installment constituted base salary to an active employee. 

(c) For Just Cause. The Board may, by written notice to the Employee, immediately terminate his employment at any time, for Just
Cause. The Employee shall have no right to receive compensation or other benefits for any period after termination for Just Cause. Termination for “Just 

  
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Cause” shall mean termination because of, in the good faith determination of the Board, the Employee’s personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty
involving personal profit, intentional failure to perform stated duties, willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or final cease-and desist order, or material breach of any provision of
this Agreement. Notwithstanding the foregoing, the Employee shall not be deemed to have been terminated for Just Cause unless there shall have been delivered to the Employee a copy of a resolution duly adopted by the affirmative vote of not less
than a majority of the entire membership of the Board (excluding the Employee if a member of the Board) at a meeting of the Board called and held for that purpose (after reasonable notice to the Employee and an opportunity for the Employee to be
heard before the Board), finding that in the good faith opinion of the Board the Employee was guilty of conduct set forth above in the second sentence of this Section 10(c) and specifying the particulars thereof in detail. 

(d) Without Just Cause. The Board may, by written notice to the Employee, immediately terminate his employment at any time for any
reason; provided that, if such termination is for any reason other than pursuant to Sections 10(a), (b) or (c) above, the Employee shall be entitled to receive the salary provided pursuant to Section 2 hereof, up to the date of
expiration of the term of this Agreement. Said sum shall be paid in one lump sum within 10 days of such termination. Any payments due Employee under this Section 10(d) are subject to the terms and conditions of Section 19 including, if
applicable, any six-month delay in payment. 
 (e) Termination or Suspension Under Federal Law. 

(1) If the Employee is removed and/or permanently prohibited from participating in the conduct of the Bank’s affairs by an order
issued under Sections 8(e)(4) or 8(g)(1) of the Federal Deposit Insurance Act (“FDIA”) (12 U.S.C. §1818(e)(4) or (g)(1)), all obligations of the Bank under this Agreement shall terminate as of the effective date of the order, but
vested rights of the parties shall not be affected. 
 (2) If the Bank is in default (as defined in Section 3(x)(1) of
FDIA), all obligations under this Agreement shall terminate as of the date of default, but this Paragraph 10(e)(2) shall not affect the vested rights of the parties. 
 (3) All obligations under this Agreement shall terminate, except to the extent that continuation of this Agreement is necessary of the continued operation of the Bank: (A) by the Comptroller of the
Currency (“Comptroller”), or his or her designee, at the time that the Federal Deposit Insurance Corporation (“FDIC”) enters into an agreement to provide assistance to or on behalf of the Bank under the authority contained in
Section 13(c) of the FDIA; or (B) by the Comptroller, or his or her designee, at the time that the Comptroller, or his or her designee, approves a supervisory merger to resolve problems related to operation of the Bank or when the Bank is
determined by the Comptroller to be in an unsafe or unsound condition. Such action shall not affect any vested rights of the parties. 
 (4) If the Employee is suspended and/or temporarily prohibited from participating in the conduct of the Bank’s affairs by a notice served under Section 8(e)(3) or (g)(1) of the FDIA (12 U.S.C.
§1818(e)(3) and (g)(1)), the Bank’s obligations under this Agreement shall be suspended as of the date of such service unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Bank may in its discretion
(A) pay the Employee all or part of the compensation withheld while its contract obligations were suspended, and (B) reinstate (in whole or in part) any of its obligations which were suspended. 

  
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 (5) If any of the provisions of this Paragraph 10(e) conflict with 12 C.F.R. §
163.39(b), the latter shall prevail. 
 (f) Voluntary Termination by Employee. The Employee may voluntarily terminate
employment with the Bank during the term of this Agreement, upon at least 60 days’ prior written notice to the Board, in which case the Employee shall receive only his compensation, vested rights and employee benefits accrued up to the date of
his termination. 
 (g) Limitation by Section 18(k) of the FDIA. Any payments made to the employee pursuant to this
Agreement, or otherwise, are subject to and conditioned upon their compliance with 12 U.S.C. § 1828(k) and FDIC regulation 12 CFR Part 359, Golden Parachute and Indemnification Payments. 

11. No Mitigation. The Employee shall not be required to mitigate the amount of any payment provided for in this Agreement by
seeking other employment or otherwise, and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to the Employee in any subsequent employment. 

12. Change in Control. 
 (a) Notwithstanding any provision herein to the contrary, if the Employee’s employment under this Agreement is terminated by the Bank, without the Employee’s prior written consent and for a
reason other than for Just Cause, death or disability, or the Employee resigns for Good Reason, in connection with or within 12 months after any change in control of the Bank or HopFed Bancorp, Inc. (the “Company”), the Employee shall be
paid the Employee’s Base Salary from the date of termination to the date of expiration of the term. Said sum shall be paid in one lump sum within 10 days of such termination, and shall be paid in lieu of the payment of any benefits under
Section 10 hereof. The term “change in control” shall mean (1) a change in the ownership, holding or power to vote more than 25% of the voting stock of the Bank or of the Company, (2) a change in the ownership or possession
of the ability to control the election of a majority of the Bank’s or the Company’s directors, or (3) a change in the ownership or possession of the ability to exercise a controlling influence over the management or policies of the
Bank or the Company by any person or by persons acting as a “group” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934), except that, in the case of (1), (2) and (3) hereof, ownership or control of
the Bank or its directors by the Company itself shall not constitute a change in control. The term “person” means an individual other than the Employee, or a corporation, partnership, trust, association, joint venture, pool, syndicate,
sole proprietorship, unincorporated organization or any other form of entity not specifically listed herein. Termination by the Employee for “Good Reason” as used herein shall mean, termination by the Employee based on: (1) without
the Employee’s express written consent, a material reduction by the Bank of the Employee’s Base Salary as the same may be increased from time to time; (2) without the Employee’s express written consent, a material diminution in
the Employee’s authority, duties, or responsibilities; (3) a material condition in the authority, duties or responsibilities of the supervisor to whom the Employee is required to report; (4) the principal executive office of the Bank
is relocated more than thirty (30) miles from Hopkinsville, Kentucky, or the Bank requires the Employee to be based anywhere other than an area in which the Bank’s principal executive office is located, except for reasonably required
travel on behalf of the business of the Bank; or (5) the failure by the Bank to obtain the assumption of and agreement to perform this Agreement by any successor as contemplated in Section 14(a) hereof. The Employee must provide written
notice to the Bank or its successor of the existence of the condition that constitutes Good Reason within 90 days of the initial existence of such condition. The Bank shall have 30 days after receipt of such notice to remedy the condition, and, if
remedied, the Employee shall not be entitled to be paid the benefits described in this Section 12 in connection with the Employee’s termination of employment. 

  
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 (b) The sum of the amount payable under Section 12(a) hereof and any other
“parachute payment” as defined under Section 280G(b)(2) of the Internal Revenue Code of 1986, as amended from time to time (the “Code”), shall not exceed 2.99 times the Employee’s “base amount” as defined in
Section 280G(b)(3) of the Code. 
 (c) Any payments due the Employee under this Section 12 are subject to the terms
and conditions of Section 19 including, if applicable, any six-month delay in payment. 
 (d) In the event that any dispute
arises between the Employee and the Bank as to the terms or interpretation of this Agreement, including this Section 12, whether instituted by formal legal proceedings or otherwise, including an action that the Employee takes to enforce the
terms of this Section 12 or to defend against any action taken by Bank, the Employee shall be reimbursed for all costs and expenses, including reasonable attorneys’ fees, arising from such disputes or proceedings, provided that the
Employee shall have obtained a final judgment by a court of competent jurisdiction in his favor. Such reimbursement shall be paid within 10 days of the Employee’s providing the Bank with written evidence, which may be in the form, among others,
of a canceled check or receipt, of any costs or expenses incurred by the Employee. 
 13. Non-Competition. Upon
termination of employment other than in connection with or within 12 months after any change in control of the Bank or the Company (as defined in Section 12(a)), the Employee agrees that the Employee will not engage (as an employee, associate,
manager, partner, sole proprietor, owner, shareholder, director, officer, consultant, member, or in any other capacity) in the business of banking, residential mortgage or consumer lending, commercial or agricultural lending, mortgage brokerage or
any substantially similar activity which competes, either directly or indirectly, against or with the Bank, within a radius of fifty (50) miles from any office of the Bank, for a period of one (1) year from such termination. The Employee
agrees that this non-competition section is necessary to protect the Bank’s business and that the Employee’s violation of this section would result in irreparable harm to the Bank. If the Employee breaches this section, the Bank shall be
entitled to injunctive relief in addition to any other remedies legally available. This section shall survive termination of this Agreement. 
 14. Successors and Assigns. 
 (a) This Agreement shall inure to the benefit
of and be binding upon any corporate or other successor of the Bank that shall acquire, directly or indirectly, by merger, consolidation, purchase or otherwise, all or substantially all of the assets or stock of the corporation. 

(b) Since the Bank is contracting for the unique and personal skills of the Employee, the Employee shall be precluded from assigning or
delegating his rights or duties hereunder without first obtaining the written consent of the Bank. 
 15. Amendments. No
amendments or additions to this Agreement shall be binding unless made in writing and signed by all of the parties, except as herein otherwise specifically provided. 
 16. Applicable Law. This Agreement shall be governed in all respects, whether as to its validity, construction, capacity, performance or otherwise, by the laws of the Commonwealth of Kentucky,
except to the extent that Federal Law shall be deemed to apply. 

  
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 17. Severability. The provisions of this Agreement shall be deemed severable and the
invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. 

18. Entire Agreement. This Agreement, together with any understanding or modification hereof as agreed to in writing by the
parties, shall constitute the entire agreement between the parties hereto. 
 19. Compliance with Section 409A of the
Internal Revenue Code. 
 (a) This Agreement shall be interpreted to avoid any penalty sanctions under Section 409A of
the Internal Revenue Code of 1986, as amended, and applicable Treasury Regulations and guidance thereunder (“Section 409A”). The timing of any payment provided hereunder that is subject to Section 409A may not be accelerated unless
permitted under Section 409A. 
 (b) No payments or benefits provided under this Agreement intended to be paid upon
termination of employment shall be paid, unless such termination of employment also constitutes a “separation from service” within the meaning of Section 409A. If the Employee is a “specified employee” under
Section 409A on the date of separation from service, any cash payment to him, not including reimbursement for benefits and not otherwise exempt from Section 409A, shall be made on the first business day of the seventh month following
separation from service. If the Employee is a “specified employee” under Section 409A on the date of separation from service and if any benefits provided to the Employee under Section 10 or 12 are taxable to the Employee, then,
with the exception of medical insurance benefits, the value of the aggregate amount of such taxable benefits provided to the Employee pursuant to Section 10 or 12 during the six-month period following his separation from service shall be
limited to the amount specified by Code Section 402(g)(1)(B) for the year of the separation from service. The Employee shall pay the cost of any benefits exceeding the amount specified in the prior sentence during the six-month period following
his separation from service, and shall be reimbursed by the Employer during the seventh month following the separation from service. 
 (c) All reimbursements and in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A, including, where applicable, the requirement
that (i) any reimbursement is for expenses incurred during the Employee’s lifetime (or during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided,
during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the calendar
year following the year in which the expense is incurred, and (iv) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit. In no event shall the Employee, directly or indirectly, designate
the calendar year of payment. 
 20. The Employee acknowledges receipt and review of the Employee Handbook. 

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

							
	ATTEST:	 		 	HERITAGE BANK
				
	  
	 		 	By:	 	  

	Secretary	 		 		 	John E. Peck, President and
		 		 		 	Chief Executive Officer
			
	WITNESS:	 		 	EMPLOYEE
			
	  
	 		 	  

  
 8Long Term Incentive Plan

 Exhibit 10.3 
 SANCHEZ ENERGY CORPORATION 
 2011 LONG TERM INCENTIVE PLAN 

SECTION 1. Purpose of the Plan. 
 The Sanchez Energy Corporation 2011 Long Term Incentive Plan (the “Plan”) has been adopted by Sanchez Energy Corporation, a Delaware corporation (the
“Company”). The Plan is intended to promote the interests of the Company by providing to Employees, consultants and Directors incentive compensation awards based on Common Shares to encourage superior performance. The Plan is
also contemplated to enhance the ability of the Company and its Affiliates and Subsidiaries to attract and retain the services of individuals who are essential for the growth and profitability of the Company and to encourage them to devote their
best efforts to advancing the business of the Company. 
 SECTION 2. Definitions. 

As used in the Plan, the following terms shall have the meanings set forth below: 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more
intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management
and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 

“Award” means an Option, Stock Appreciation Right, share of Restricted Stock, share of Phantom Stock, Other
Stock-Based Award, or a Stock Award granted under the Plan. 
 “Award Agreement” means the written or
electronic agreement by which an Award shall be evidenced. 
 “Board” means the Board of Directors of
the Company. 
 “Change of Control” means, and shall be deemed to have occurred upon one or more of the
following events: 
 (i) any “person” or “group” within the meaning of those terms as used in
Sections 13(d) and 14(d)(2) of the Exchange Act, other than a Sanchez Group Member, shall become the beneficial owner, by way of merger, consolidation, recapitalization, reorganization or otherwise, of 50% or more of the combined voting power of the
equity interests in the Company; 
 (ii) the shareholders of the Company approve and implement, in one or a
series of transactions, a plan of complete liquidation of the Company; or 
 (iii) the sale or other disposition
by the Company of all or substantially all of its assets in one or more transactions to any Person other than a Sanchez Group Member. 

 Notwithstanding the foregoing, with respect to an Award that is subject to Section 409A
of the Internal Revenue Code of 1986, as amended, “Change of Control” shall mean a “change of control event” as defined in the regulations and guidance issued under Section 409A. 

“Committee” means the Board, the Compensation Committee of the Board or such other committee as may be appointed
by the Board to administer the Plan. 
 “Common Shares” means the Company’s common
stock, par value $0.01. 
 “Company IPO” means an initial public offering of the Company’s equity
securities that is registered under the Securities Act of 1933, as amended. 
 “Director” means a member
of the board of directors of the Company. 
 “Disability” means, unless provided otherwise in the Award
Agreement, an illness or injury that lasts at least six continuous months, is expected to be permanent and renders the Participant unable to carry out his or her duties to the Board, the Company or a Sanchez Group Member, as the case may be.

 “Employee” means an employee of the Company, a Subsidiary of the Company or a Sanchez Group Member.

 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Fair Market Value” means the closing sales price of a Common Share on the principal national securities exchange
or other market in which trading in Common Shares occurs on the applicable date (or, if there is no trading in the Common Shares on such date, on the next preceding date on which there was trading) as reported in The Wall Street Journal (or
other reporting service approved by the Committee). If Common Shares are not traded on a national securities exchange or other market at the time a determination of fair market value is required to be made hereunder, the determination of fair market
value shall be made in good faith by the Committee. 
 “Option” means an option to purchase Common
Shares granted under the Plan. 
 “Other Stock-Based Award” means an Award granted pursuant to
Section 6(d). 
 “Participant” means an Employee, consultant or Director granted an Award under the
Plan. 
 “Person” means an individual or a corporation, limited liability company, partnership, joint
venture, trust, unincorporated organization, association, governmental agency or political subdivision thereof or other entity. 

“Phantom Stock” means notional shares granted under the Plan that upon vesting entitle the Participant to receive
Common Shares or an amount of cash equal to the Fair Market Value of such Common Shares, as determined by the Committee in its discretion. 

  
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 “Restricted Period” means the period established by the Committee
with respect to an Award during which the Award remains subject to forfeiture and is either not exercisable by or payable to the Participant, as the case may be. 
 “Restricted Stock” means Common Shares granted under the Plan that are subject to a Restricted Period. 
 “Rule 16b-3” means Rule 16b-3 promulgated by the SEC under the Exchange Act or any successor rule or regulation thereto as in effect from time to time. 

“Sanchez Group Member” means Sanchez Oil & Gas Corporation, a Delaware corporation, Sanchez Energy
Partners I, LP, a Delaware limited partnership, and their Affiliates (other than the Company). 
 “SDR”
means a dividend paid by the Company with respect to a share of Restricted Stock. 
 “SEC” means the
Securities and Exchange Commission, or any successor thereto. 
 “Stock Appreciation Right” or
“SAR” means a contingent right that entitles the holder to receive all or part of the excess of the Fair Market Value of a Common Share on the exercise date of the SAR over the exercise price of the SAR. Such excess shall be
paid in Common Shares, cash or any combination thereof, in the discretion of the Committee. 
 “Stock
Award” means a grant of a Common Share that is not subject to a Restricted Period. 

“Subsidiary” means any entity (i) in which, at the relevant time, the Company owns or controls, directly or
indirectly, not less than 50% of the total combined voting power represented by all classes of equity interests issued by such entity, (ii) as to which, at the relevant time, the Company has the right, directly or indirectly, to appoint or
designate, either independently or jointly with another Person, 50% or more of the members of the board of directors or (iii) as to which at the relevant time, the Company, directly or indirectly, (A) owns or controls, directly or
indirectly, not less than 50% of the total combined voting power represented by classes of equity interests issued by the general partner or managing member of such entity or (B) has the right, directly or indirectly, to appoint or designate,
either independently or jointly with another Person, 50% or more of the members of the board of directors of the general partner or managing member thereof. 
 SECTION 3. Administration. 
 The Plan shall be administered by the
Committee. A majority of the Committee shall constitute a quorum, and the acts of the members of the Committee who are present at any meeting thereof at which a quorum is present, or acts unanimously approved by the members of the Committee in
writing, shall be the acts of the Committee. Subject to the following and applicable law, the Committee, in its sole discretion, may delegate any or all of its powers and duties under the Plan, including the power to grant Awards under the Plan, to
the Chief Executive Officer of the Company, subject to such limitations on such delegated powers and duties as the 

  
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Committee may impose, if any. Upon any such delegation, all references in the Plan to the “Committee,” other than in Section 7, shall be deemed to include the Chief Executive
Officer; provided, however, that such delegation shall not limit the Chief Executive Officer’s right to receive Awards under the Plan. Notwithstanding the foregoing, the Chief Executive Officer may not grant Awards to, or take any action with
respect to any Award previously granted to, a Person who is an officer subject to Rule 16b-3 or a member of the Board. Subject to the terms of the Plan and applicable law, and in addition to other express powers and authorizations conferred on the
Committee by the Plan, the Committee shall have full power and authority to: (i) designate Participants; (ii) determine the type or types of Awards to be granted to a Participant; (iii) determine the number of Common Shares to be
covered by Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, to what extent, and under what circumstances Awards may be settled, exercised, canceled, or forfeited; (vi) interpret and administer the
Plan and any instrument or agreement relating to an Award made under the Plan; (vii) establish, amend, suspend, or waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan;
and (viii) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan. The Committee may correct any defect or supply any omission or reconcile any inconsistency in
the Plan or an Award Agreement in such manner and to such extent as the Committee deems necessary or appropriate. Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions under or with
respect to the Plan or any Award shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive, and binding upon all Persons, including the Company, any Affiliate of the Company, any Participant, and
any beneficiary of any Award. 
 SECTION 4. Common Shares. 

(a) Limits on Common Shares Deliverable. Subject to adjustment as provided in Section 4(c), the maximum number of Common
Shares that may be delivered with respect to Awards under the Plan shall be (i) until and up to a Company IPO, 12% of the aggregate number of issued and outstanding Common Shares as of the date of the adoption of the Plan and (ii) from and
after a Company IPO, that greater number of Common Shares (which will subsume and include all Common Shares described in Section 4(a)(i), as adjusted to give effect to any split in the Common Shares effected in connection with a Company IPO) as
is equal to 12% of the aggregate number of shares of stock of the Company that will be issued and outstanding immediately following the closing of a Company IPO, plus, upon the issuance of additional Common Shares from time to time, an automatic
increase equal to the lesser of (A) 12% of the aggregate number of shares of stock of the Company issued and outstanding immediately following such issuance of additional Common Shares and (B) such lesser number of Common Shares as
determined by the Committee; provided, however, that Common Shares withheld from an Award to either satisfy the Company’s or any Affiliate of the Company’s tax withholding obligations with respect to the Award or pay the exercise price of
an Award shall not be considered to be Common Shares delivered under the Plan for this purpose. If any Award is forfeited, cancelled, exercised, paid, or otherwise terminates or expires without the actual delivery of Common Shares pursuant to such
Award (the grant of Restricted Stock is not a delivery of Common Shares for this purpose), the Common Shares subject to such Award shall again be available for Awards under the Plan. There shall not be any limitation on the number of Awards that may
be paid in cash. 

  
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 (b) Sources of Common Shares Deliverable Under Awards. Any Common Shares delivered
pursuant to an Award shall consist, in whole or in part, of Common Shares newly issued by the Company, Common Shares acquired in the open market, from any Affiliate of the Company or from any other Person, or any combination of the foregoing, as
determined by the Committee in its discretion. 
 (c) Anti-dilution Adjustments. With respect to any “equity
restructuring” event that could result in an additional compensation expense to the Company pursuant to the provisions of Financial Accounting Standards Board Accounting Standards Codification Topic 718 – Stock Compensation
(“FASB ASC Topic 718”), if adjustments to Awards with respect to such event were discretionary, the Committee shall equitably adjust the number and type of Common Shares covered by each outstanding Award and the terms and
conditions, including the exercise price and performance criteria (if any), of such Award to equitably reflect such restructuring event and shall adjust the number and type of Common Shares (or other securities or property) with respect to which
Awards may be granted after such event. With respect to any other similar event that would not result in a FASB ASC Topic 718 accounting charge if the adjustment to Awards with respect to such event were subject to discretionary action, the
Committee shall have complete discretion to adjust Awards in such manner as it deems appropriate with respect to such other event. 
 SECTION
5. Eligibility. 
 Any Employee, consultant or Director shall be eligible to be designated a Participant by the
Committee and receive an Award under the Plan. 
 SECTION 6. Awards. 

(a) Options and SARs. The Committee shall have the authority to determine the Employees, consultants and Directors to whom Options
and/or SARs shall be granted, the number of Common Shares to be covered by each Option or SAR, the exercise price therefor, the Restricted Period and other conditions and limitations applicable to the exercise of the Option or SAR, including the
following terms and conditions and such additional terms and conditions, as the Committee shall determine, that are not inconsistent with the provisions of the Plan. 
 (i) Exercise Price. The exercise price per Common Share purchasable under an Option or subject to a SAR shall be determined by the Committee at the time the Option or SAR is granted but may not be
less than the Fair Market Value of a Common Share as of the date of grant of the Option or SAR. 
 (ii) Time and Method of
Exercise. The Committee shall determine the exercise terms and the Restricted Period with respect to an Option or SAR grant, which may include, without limitation, (A) a provision for accelerated vesting upon the death or Disability of a
Participant, the achievement of specified performance goals or such other events as the Committee may provide, and (B) the method or methods by which payment of the exercise price with respect to an Option may be made or deemed to have been
made, which may include, without limitation, cash, check acceptable to the Committee, withholding Common Shares from the Award, a “cashless-broker” exercise through procedures approved by the Committee, or any combination of the above
methods, having a Fair Market Value on the exercise date equal to the relevant exercise price. 

  
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 (iii) Forfeitures. Except as otherwise provided in the terms of the Option or SAR
Award Agreement, upon termination of a Participant’s employment with or consulting services to the Company and its Affiliates or membership on the Board, whichever is applicable, for any reason during the applicable Restricted Period, all
outstanding unvested Options and SARs awarded to the Participant shall be automatically forfeited on such termination. The Committee may, in its discretion, waive in whole or in part such forfeiture with respect to a Participant’s Options or
SARs. 
 (b) Restricted Stock and Phantom Stock. The Committee shall have the authority to determine the Employees,
consultants and Directors to whom Restricted Stock and Phantom Stock shall be granted, the number of shares of Restricted Stock or Phantom Stock to be granted to each such Participant, the Restricted Period, the conditions under which the Restricted
Stock or Phantom Stock may become vested or forfeited and such other terms and conditions as the Committee may establish with respect to such Awards which may include, without limitation, a provision for accelerated vesting upon the death or
Disability of a Participant, the achievement of specified performance goals or such other events as the Committee may provide. 

(i) SDRs. To the extent provided by the Committee, in its discretion, a grant of Restricted Stock may provide that the dividends
paid by the Company with respect to the Restricted Stock shall be subject to the same forfeiture and other restrictions as the Restricted Stock and, if restricted, such dividends shall be held, without interest, until the Restricted Stock vests or
is forfeited with the SDR being paid or forfeited at the same time, as the case may be. In addition, the Committee may provide that such dividends be used to acquire additional Restricted Stock for the Participant. Such additional Restricted Stock
may be subject to such vesting and other terms as the Committee may proscribe. Absent such a restriction on the SDRs in the Award Agreement, upon a dividend with respect to Restricted Stock, such dividend shall be paid promptly to the holder of the
Restricted Stock without vesting restrictions. 
 (ii) Forfeitures. Except as otherwise provided in the terms of the
Restricted Stock or Phantom Stock Award Agreement, upon termination of a Participant’s employment with or consulting services to the Company and its Affiliates or membership on the Board, whichever is applicable, for any reason during the
applicable Restricted Period, all outstanding, unvested Restricted Stock and Phantom Stock awarded to the Participant shall be automatically forfeited on such termination. The Committee may, in its discretion, waive in whole or in part such
forfeiture with respect to a Participant’s Restricted Stock and/or Phantom Stock. 

  
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 (iii) Lapse of Restrictions. 

(A) Phantom Stock. Upon or as soon as reasonably practical following the vesting of each share of Phantom Stock, subject to
satisfying the tax withholding obligations of Section 8(b), the Participant shall be entitled to receive from the Company one Common Share or cash equal to the Fair Market Value of a Common Share, as determined by the Committee in its
discretion. 
 (B) Restricted Stock. Upon or as soon as reasonably practical following the vesting of each share of
Restricted Stock, subject to satisfying the tax withholding obligations of Section 8(b), the Participant shall be entitled to have the restrictions removed from his or her share certificate so that the Participant then holds an unrestricted
Common Share. 
 (c) Stock Awards. Stock Awards may be granted under the Plan to such Employees, consultants and/or
Directors and in such amounts as the Committee, in its discretion, may select. 
 (d) Other Stock-Based Awards. Other
Stock-Based Awards may be granted under the Plan to such Employees, consultants and/or Directors and in such amounts as the Committee, in its discretion, may select. An Other Stock-Based Award shall be an award denominated or payable in, valued in
or otherwise based on or related to Common Shares, in whole or in part. The Committee shall determine the terms and conditions of any such Other Stock-Based Award. Upon vesting, an Other Stock-Based Award may be paid in cash, Common Shares
(including Restricted Stock) or any combination thereof as provided in the Award Agreement. 
 (e) General. 

(i) Awards May Be Granted Separately or Together. Awards may, in the discretion of the Committee, be granted either alone or in
addition to, in tandem with, or in substitution for any other Award granted under the Plan or any award granted under any other plan of the Company or any of its Affiliates. Awards granted in addition to or in tandem with other Awards or awards
granted under any other plan of the Company or any of its Affiliates may be granted either at the same time as or at a different time from the grant of such other Awards or awards. 

(ii) Limits on Transfer of Awards. 
 (A) Except as provided in Section 6(e)(ii)(C), each Option and SAR shall be exercisable only by the Participant during the Participant’s lifetime, or by the Person to whom the Participant’s
rights shall pass by will or the laws of descent and distribution. 
 (B) Except as provided in Section 6(e)(ii)(C), no
Award and no right under any such Award may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance
shall be void and unenforceable against the Company or any of its Affiliates. 

  
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 (C) To the extent specifically provided by the Committee with respect to an Option or SAR,
an Option or SAR may be transferred by a Participant without consideration to immediate family members or related family trusts, limited partnerships or similar entities or on such terms and conditions as the Committee may from time to time
establish. 
 (iii) Term of Awards. The term of each Award shall be for such period as may be determined by the Committee.

 (iv) Stock Certificates. All certificates for Common Shares or other securities of the Company delivered under the Plan
pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the SEC, any stock exchange
upon which such Common Shares or other securities are then listed, and any applicable federal or state laws, and the Committee may cause a legend or legends to be inscribed on any such certificates to make appropriate reference to such restrictions.

 (v) Consideration for Grants. Awards may be granted for such consideration, including services, as the Committee shall
determine. 
 (vi) Delivery of Common Shares or other Securities and Payment by Participant of Consideration.
Notwithstanding anything in the Plan or any Award Agreement to the contrary, delivery of Common Shares pursuant to the exercise or vesting of an Award may be deferred for any period during which, in the good faith determination of the Committee, the
Company is not reasonably able to obtain Common Shares to deliver pursuant to such Award without violating applicable law or the applicable rules or regulations of any governmental agency or authority or securities exchange. No Common Shares or
other securities shall be delivered pursuant to any Award until payment in full of any amount required to be paid pursuant to the Plan or the applicable Award Agreement (including, without limitation, any exercise price or tax withholding) is
received by the Company. 
 SECTION 7. Amendment and Termination. 

Except to the extent prohibited by applicable law: 
 (a) Amendments to the Plan. Except as required by the rules of the principal securities exchange on which the Common Shares are traded and subject to Section 7(b), the Committee may amend,
alter, suspend, discontinue, or terminate the Plan in any manner, including increasing the number of Common Shares available for Awards under the Plan, without the consent of any Participant, other holder or beneficiary of an Award, or any other
Person. 
 (b) Amendments to Awards. Subject to Section 7(a), the Committee may waive any conditions or rights
under, amend any terms of, or alter any Award theretofore granted, provided no change, other than pursuant to Section 7(c), in any Award shall materially reduce the rights or benefits of a Participant with respect to an Award without the
consent of such Participant. 
 (c) Actions Upon the Occurrence of Certain Events. Upon the occurrence of a Change of
Control, any change in applicable law or regulation affecting the Plan or Awards thereunder, or any change in accounting principles affecting the financial statements of the Company, the Committee, in its sole discretion, without the consent of any
Participant or holder 

  
 8 

 
of the Award, and on such terms and conditions as it deems appropriate, may take any one or more of the following actions in order to prevent dilution or enlargement of the benefits or potential
benefits intended to be made available under the Plan or an outstanding Award: 
 (i) provide for either (A) the termination
of any Award in exchange for an amount of cash, if any, equal to the amount that would have been attained upon the exercise of such Award or realization of the Participant’s rights at such time (and, for the avoidance of doubt, if as of the
date of the occurrence of such transaction or event the Committee determines in good faith that no amount would have been attained upon the exercise of such Award or realization of the Participant’s rights, then such Award may be terminated by
the Committee without payment) or (B) the replacement of such Award with other rights or property selected by the Committee in its sole discretion; 
 (ii) provide that such Award be assumed by the successor or survivor entity, or a parent or subsidiary thereof, or be exchanged for similar options, rights or awards covering the equity of the successor
or survivor, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of equity interests and prices; 
 (iii) make adjustments in the number and type of Common Shares (or other securities or property) subject to outstanding Awards, and in the number and kind of outstanding Awards or in the terms and
conditions of (including the exercise price), and the vesting and performance criteria included in, outstanding Awards, or both; 

(iv) provide that such Award shall be exercisable or payable, notwithstanding anything to the contrary in the Plan or the applicable Award
Agreement; and 
 (v) provide that the Award cannot be exercised or become payable after such event, i.e., shall terminate upon
such event. 
 Notwithstanding the foregoing, with respect to an above event that is an “equity restructuring” event
that would be subject to a compensation expense pursuant FASB ASC Topic 718, the provisions in Section 4(c) shall control to the extent they are in conflict with the discretionary provisions of this Section 7. 

SECTION 8. General Provisions. 
 (a) No Rights to Award. No Person shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of Participants. The terms and conditions of
Awards need not be the same with respect to each recipient. 
 (b) Tax Withholding. Unless other arrangements have been
made that are acceptable to the Committee, the Company or any of its Affiliates is authorized to withhold from any Award, from any payment due or transfer made under any Award or from any compensation or other amount owing to a Participant the
amount (in cash, Common Shares, Common Shares that would otherwise be issued pursuant to such Award or other property) of any applicable taxes payable in respect of the grant of an Award, its exercise, the lapse of restrictions thereon, or any
payment or transfer under an Award or under the Plan and to take such other action as may be necessary in the opinion of the Committee to satisfy the withholding obligations for the payment of such taxes. 

  
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 (c) No Right to Employment or Services. The grant of an Award shall not be construed
as giving a Participant the right to be retained in the employ of the Company or any of its Affiliates, to continue consulting services or to remain on the Board, as applicable. Furthermore, the Company or any of its Affiliates may at any time
dismiss a Participant from employment free from any liability or any claim under the Plan, unless otherwise expressly provided in the Plan, any Award Agreement or other agreement. 

(d) Governing Law. The validity, construction, and effect of the Plan and any rules and regulations relating to the Plan shall be
determined in accordance with the laws of the State of Delaware without regard to its conflicts of laws principles. 
 (e)
Severability. If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed
applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable law or, if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the
Plan or the Award, such provision shall be stricken as to such jurisdiction, Person or Award and the remainder of the Plan and any such Award shall remain in full force and effect. 

(f) Other Laws. The Committee may refuse to issue or transfer any Common Shares or other consideration under an Award if, in its
sole discretion, it determines that the issuance or transfer of such Common Shares or such other consideration might violate any applicable law or regulation, the rules of the principal securities exchange on which the Common Shares are then traded,
or entitle the Company or any of its Affiliates to recover the same under Section 16(b) of the Exchange Act, and any payment tendered to the Company by a Participant, other holder or beneficiary in connection with the exercise of such Award
shall be promptly refunded to such Participant, holder or beneficiary. 
 (g) No Trust or Fund Created. Neither the Plan
nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any participating Affiliate of the Company and a Participant or any other Person. To the extent that any
Person acquires a right to receive payments from the Company or any participating Affiliate of the Company pursuant to an Award, such right shall be no greater than the right of any general unsecured creditor of the Company or any participating
Affiliate of the Company. 
 (h) No Fractional Common Shares. No fractional Common Shares shall be issued or delivered
pursuant to the Plan or any Award, and the Committee shall determine whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional Common Shares or whether such fractional Common Shares or any rights
thereto shall be canceled, terminated, or otherwise eliminated. 

  
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 (i) Headings. Headings are given to the Sections and subsections of the Plan solely
as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof. 

(j) Facility Payment. Any amounts payable hereunder to any Person under legal disability or who, in the judgment of the Committee,
is unable to manage properly his or her financial affairs, may be paid to the legal representative of such Person, or may be applied for the benefit of such Person in any manner that the Committee may select, and the Company shall be relieved of any
further liability for payment of such amounts. 
 (k) Gender and Number. Words in the masculine gender shall include the
feminine gender, the plural shall include the singular and the singular shall include the plural. 
 SECTION 9. Term of the Plan.

 The Plan shall be effective on the date it is approved by the shareholders of the Company, if such approval is required by the
rules of the principal securities exchange on which the Common Shares are traded or, if such approval is not required, then on the date the Plan is adopted by the Company and shall continue until the earliest of (i) the date it is terminated by
the Board, (ii) all Common Shares available under the Plan have been paid to Participants, or (iii) the 10th anniversary of the date the Plan is approved as provided above. However, any Award granted prior to such termination, and the
authority of the Committee to amend, alter, adjust, suspend, discontinue, or terminate any such Award or to waive any conditions or rights under such Award, shall extend beyond such termination date. 

  
 11

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