Document:

EX-10.4

 Exhibit 10.4 

FORBES ENERGY SERVICES LTD. 

2017 MANAGEMENT INCENTIVE PLAN 

1. Purpose of the Plan. The purpose of the Plan is to: (i) attract and retain the best available personnel for positions of
substantial responsibility, (ii) provide additional incentive to key Service Providers of the Company, and (iii) promote the success of the Company’s business. The Plan permits the grant of Incentive Stock Options, Nonstatutory Stock
Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Units, Performance Shares, and Other Stock Based Awards. 

2. Definition. As used in this Plan, the following definitions shall apply: 

(a) “Administrator” means the Board or any of its Committees that shall be administering the Plan, in accordance with
Section 4 of the Plan. 
 (b) “Affiliate” shall mean, with respect to any Person or entity, a Person that that,
directly or indirectly controls, is controlled by, or is under common control with such Person or entity. 
 (c) “Applicable
Laws” means the requirements relating to the administration of equity-based awards or equity compensation plans under U.S. federal and state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or
quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Awards are, or shall be, granted under the Plan. 

(d) “Award” means, individually or collectively, a grant under the Plan of Options, SARs, Restricted Stock, Restricted Stock
Units, Performance Units, Performance Shares or Other Stock Based Awards. 
 (e) “Award Agreement” means the written or
electronic agreement setting forth the terms and provisions applicable to each Award granted under the Plan. The Award Agreement is subject to the terms and conditions of the Plan. 

(f) “Awarded Stock” means the Common Stock subject to an Award. 

(g) “Board” means the Board of Directors of the Company. 

(h) “Cause” means the definition of such term, “good cause” or a term of similar import in an employment agreement
between the Participant and the Company. If the Participant is not party to such an Aagreement, then Cause means the occurrence of any of the following: 

(i) the Participant’s failure to substantially perform such Participant’s duties with the Company or any Affiliate as determined by
the Board; 

 (ii) the Participant’s willful failure or refusal to perform specific directives of the
Board or the Company, which directives are consistent with the scope and nature of the Participant’s duties and responsibilities; 

(iii) the Participant’s conviction of a felony; or 

(iv) a breach of the Participant’s fiduciary duty to the Company or any Affiliate or willful violation in the course of performing the
Participant’s duties for the Company or any Affiliate of any policy, rule, or directive of the Company or any Affiliate, or of any law, rule or regulation (other than traffic violations or other minor offenses). No act or failure to act on the
Participant’s part shall be considered willful unless done or omitted to be done in bad faith and without reasonable belief that the action or omission was in the best interest of the Company. 

(i) “Change in Control” means, except as otherwise provided in an Award Agreement, the occurrence of any of the following
events: 
 (i) Any Person, other than a Significant Shareholder, becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the total combined voting power represented by the Company’s then outstanding
voting securities; or 
 (ii) The sale or other disposition of all or substantially all of the assets of the Company to any Person, other
than a Significant Shareholder; 
 provided, however, that no transaction will constitute a Change in Control unless it constitutes a change in the
ownership or effective control of the Company, or in the ownership of a substantial portion of its assets, in each case within meaning of Section 409A of the Code and the Treasury regulations promulgated thereunder. 

(j) “Code” means the Internal Revenue Code of 1986, as amended, and the U.S. Treasury regulations promulgated thereunder.
Any reference to a section of the Code shall be a reference to any successor or amended section of the Code. 
 (k)
“Committee” means a committee of Directors or other individuals satisfying Applicable Laws appointed by the Board in accordance with Section 4 of the Plan. 

(l) “Common Stock” means the Common Stock of the Company, or in the case of Performance Units, Restricted Stock Units, and
certain Other Stock Based Awards, the cash equivalent thereof, as applicable. 
 (m) “Company” means Forbes Energy Services
Ltd., a Delaware corporation, and any successor thereto. 
 (n) “Director” means a member of the Board. 

  
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 (o) “Disability” means total and permanent disability as defined in
Section 22(e)(3) of the Code, provided that in the case of Awards other than Incentive Stock Options, the Administrator in its sole discretion may determine whether a permanent and total disability exists in accordance with uniform and non-discriminatory standards adopted by the Administrator from time to time. 
 (p) “Dividend
Equivalent” means a credit, made at the sole discretion of the Administrator, to the account of a Participant in an amount equal to the value of dividends paid on one (1) Share for each Share represented by an Award held by such
Participant. Under no circumstances shall the payment of a Dividend Equivalent be made contingent on the exercise of an Option or Stock Appreciation Right. 

(q) “Effective Date” means the effective date of the Plan of Reorganization. 

(r) “Employee” means any person, including officers, employed by the Company or any Parent or Subsidiary of the Company.
Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient to constitute “employment” by the Company. 

(s) “Equity Value” means the aggregate value of the Company’s outstanding equity securities at the time of
a Change in Control and shall be equal to the aggregate cash and fair market value of other property received by the Company’s shareholders in the transaction that results in the Change in Control. For this purpose, the fair market value of any
property received by the Company’s shareholders that is not traded on an established securities exchange shall be the value ascribed to such property in the definitive agreement entered into in connection with the Change in Control. Any
(x) proceeds which are not actually received by the Company’s shareholders at the time of the consummation of the Change in Control but are subject to a contingency or future event (including cash proceeds placed in escrow and cash
proceeds subject to an earn out) shall be considered received by the Company’s shareholders only if and when the shareholders actually receive those proceeds, and (y) Company equity securities that shareholders continue to beneficially own
following the Change of Control, shall not be considered to be property received in connection with the Change in Control. 
 (t)
“Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 (u) “Exit Financing” means the
exit financing made available to the Company and its domestic subsidiaries by certain holders of the Company’s 9% senior notes pursuant to the Plan of Reorganization. 

(v) “Exit Financing Termination Date” means the earlier of (i) the date that the Exit Financing ceases to be outstanding
as a result of all obligations being repaid in full in cash and all commitments terminated or (ii) the stated maturity date of the Exit Financing. 

(w) “Fair Market Value” means, as of any date, the value of a share of Common Stock determined as follows: 

(i) If the need for a determination of Fair Market Value arises as a result of a Liquidity Event, Fair Market Value shall be the value
ascribed to a share of Common Stock in such Liquidity Event; 

  
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 (ii) If the Common Stock is listed on any established stock exchange or a national market
system, including without limitation the NASDAQ Global Select Market, the NASDAQ Global Market (formerly the NASDAQ National Market) or the NASDAQ Capital Market (formerly the NASDAQ SmallCap Market) of the NASDAQ Stock Market, the Fair Market Value
shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems
reliable; 
 (iii) If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair
Market Value of a Share of Common Stock shall be the mean between the high bid and low asked prices for the Common Stock for the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;
or 
 (iv) In the absence of a determination under (i), (ii) or (iii) above, Fair Market Value shall be determined in good faith by the
Administrator, provided that if any applicable Participant or Participants advise the Administrator that the same believe the Fair Market Value of such Partipant’s or Participants’ shares applicable to such determination to exceed one
million dollars ($1,000,000), then the Administrator and the applicable Participant(s) shall work in good faith and on an informal basis to agree on the Fair Market Value. If within thirty (30) days following the event that triggered a need to
determine the Fair Market Value, the Administrator and the applicable Participant(s) cannot reach an agreement on the Fair Market Value, the Administrator and such Participant(s) shall jointly agree to appoint an independent business appraiser for
the purpose of determining the Fair Market Value. If the Administrator and Participant(s) are unable to agree upon the appointment of a single independent business appraiser, then (i) the Administrator, on the one hand, and such Participant(s),
on the other hand, each shall appoint one independent business appraiser, (ii) the two independent business appraisers shall mutually appoint a third independent business appraiser and (iii) the third independent business appraiser shall
determine the Fair Market Value. The determination of the Fair Market Value made by such independent business appraiser will, absent manifest error, be final, conclusive, and binding on the Administrator and such Participant(s). Each of the
Company, on the one hand, and such Participant(s), on the other hand, shall pay fifty (50%) percent of the fees and expenses of the independent business appraiser(s) incurred in connection with the determination of the Fair Market Value. 

(x) “Incentive Stock Option” means an Option intended to qualify and receive favorable tax treatment as an incentive stock
option within the meaning of Section 422 of the Code, as designated in the applicable Award Agreement. 
 (y) “Liquidity
Event” means 
 (i) a Change in Control in which (a) Participants receive cash and/or marketable securities as part of the
consideration from such Change in Control directly from the purchaser sufficient to satisfy their withholding income tax obligations or (b) the Company receives cash and/or marketable securities as part of the consideration from such Change in
Control and allocates and distributes an amount of the cash and/or marketable securities to the Participants sufficient to satisfy their withholding income tax obligations; 

  
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 (ii) any other transaction in which the Participants may be involved and which results in the
Participants receiving cash and/or marketable securities sufficient to satisfy their withholding income tax obligations. 
 (z)
“Nonstatutory Stock Option” means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option. 

(aa) “Option” means an option to purchase Common Stock granted pursuant to the Plan. 

(bb) “Other Stock Based Awards” means any other awards not specifically described in the Plan that are valued in whole or in
part by reference to, or are otherwise based on, Shares and are created by the Administrator pursuant to Section 12. 
 (cc)
“Parent” means a “parent corporation” with respect to the Company, whether now or hereafter existing, as defined in Section 424(e) of the Code. 

(dd) “Participant” means a Service Provider who has been granted an Award under the Plan. 

(ee) “Performance Goals” means goals which have been established by the Committee in connection with an Award and are based on
one (1) or more of the following criteria, as determined by the Committee in its absolute and sole discretion: net income; cash flow; cash flow on investment; pre-tax or post-tax profit levels or earnings; operating income or earnings; return on investment; earned value added; expense reduction levels; free cash flow; free cash flow per share; earnings per share; net earnings per
share; net earnings from continuing operations; sales growth; sales volume; economic profit; expense reduction; controlled expenses; return on assets; return on net assets; return on equity; return on capital; return on sales; return on invested
capital; organic revenue; growth in managed assets; total shareholder return; stock price; stock price appreciation; EBIT, adjusted EBIT, EBITA; adjusted EBITA; EBITDA; adjusted EBITDA; EBITDAR; adjusted EBITDAR; return in excess of cost of capital;
operating profits; profit in excess of cost of capital; net operating profit after tax; operating margin; profit margin; adjusted revenue; revenue; net revenue; operating revenue; net cash provided by operating activities; net cash provided by
operating activities per share; cash conversion percentage; new sales; net new sales; cancellations; gross margin; gross margin percentage; revenue before deferral; regulatory body approval for commercialization of a product; implementation or
completion of critical projects; research; in-licensing; out-licensing; product development; government relations; compliance; mergers and acquisitions; or sales of
assets or subsidiaries. 
 (ff) “Performance Period” means the time period during which the Performance Goals or performance
objectives must be met. 
 (gg) “Performance Shares” means Shares issued pursuant to a Performance Share Award under
Section 10 of the Plan. 

  
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 (hh) “Performance Unit” means, pursuant to Section 10 of the Plan, an
unfunded and unsecured promise to deliver Shares, cash or other securities equal to the value set forth in the Award Agreement. 
 (ii)
“Period of Restriction” means the period during which the transfer of Shares of Restricted Stock are subject to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture. Such restrictions may be based
on the passage of time, the achievement of Performance Goals or other target levels of performance, or the occurrence of other events as determined by the Administrator. 

(jj) “Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d)
and 14(d) of the Exchange Act). 
 (kk) “Plan” means this 2017 Management Incentive Plan. 

(ll) “Plan of Reorganization” means the prepackaged joint plan of reorganization of the Company and its domestic subsidiaries
dated December 21, 2016, as amended, modified or supplemented, effective on the Effective Date. 
 (mm) “Reorganized
Company” means the Company as reorganized pursuant to the Plan of Reorganization. 
 (nn) “Restricted Stock” means
Shares issued pursuant to a Restricted Stock Award under Section 8 or issued pursuant to the early exercise of an Option. 
 (oo)
“Restricted Stock Unit” means, pursuant to Sections 4 and 11 of the Plan, an unfunded and unsecured promise to deliver Shares, cash or other securities equal in value to the Fair Market Value of one (1) Share in the
Company on the date of vesting or settlement, or as otherwise set forth in the Award Agreement. 
 (pp)
“Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to
Rule 16b-3, as in effect when discretion is being exercised with respect to the Plan. 
 (qq)
“Service Provider” means an Employee. 
 (rr) “Share” means a share of Common Stock, as adjusted in
accordance with Section 15 of the Plan. 
 (ss) “Significant Shareholder” means (i) any shareholder of the Company
as of the Effective Date who, together with its Affiliates, “beneficially owns” (as defined in Rule 13d-3 of the Exchange Act) as of the Effective Date five percent (5%) or more of the Company’s
outstanding voting securities and (ii) with respect to any shareholder described in clause (i) that is an investment fund, any other investment fund managed by the same or an affiliated investment manager. 

(tt) “Stock Appreciation Right” or “SAR” means, pursuant to Section 9 of the Plan, an unfunded and
unsecured promise to deliver Shares, cash or other securities equal in value to the difference between the Fair Market Value of a Share as of the date such SAR is exercised/settled and the Fair Market Value of a Share as of the date such SAR was
granted, or as otherwise set forth in the Award Agreement. 

  
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 (uu) “Subsidiary” means a “subsidiary corporation” with respect to the
Company, whether now or hereafter existing, as defined in Section 424(f) of the Code. 
 3. Stock Subject to the Plan. 

(a) Stock Subject to the Plan. Subject to the Section 15 of the Plan, the maximum aggregate number of Shares that may be subject to
Awards under the Plan shall be seven hundred fifty thousand (750,000) (the “Aggregate Share Reserve”) which is equal to twelve and one-half of one percent (12.5%) times the sum of
(i) the number of shares of Common Stock issued to holders of the Company’s 9% senior notes as of the Effective Date and (ii) the number of shares of Common Stock issued or issuable pursuant to the Plan, all of which may be subject to
Incentive Stock Options (the shares of Common Stock issued or issuable in clauses (i) and (ii) being the “Contemplated Shares”). The Aggregate Share Reserve includes three-tenths of one percent (0.3%) of the Contemplated
Shares that are issuable to certain Participants based on how long the Exit Financing remains outstanding, as discussed below in Section 3(a)(iii). The Aggregate Share Reserve shall be divided into five pools. 

(i) Performance-Based Awards Grant Pool. On the Effective Date or reasonably promptly thereafter, Awards in respect of one percent (1%)
of the Contemplated Shares shall be granted to Participants and shall vest upon the achievement of certain performance metrics as provided for in the Award Agreement. 

(ii) Time-Based Awards Grant Pool. On the Effective Date or reasonably promptly thereafter, Awards in respect of seven and two-tenths of one percent (7.2%) of the Contemplated Shares, or four hundred thirty-two thousand (432,000) Shares (the “Time-Based Awards”) shall be
granted to Participants and shall vest as follows: (a) one-fifth (1/5th) shall vest on the later of (i) the Effective Date and (ii) the date
of grant and (b) one-fifth (1/5th) shall vest on each one year anniversary of the Effective Date through the fourth anniversary of the Effective Date.

 (iii) Exit Financing Awards Grant Pool. On the Effective Date or reasonably promptly thereafter, Awards in respect of up to
three-tenths of one percent (0.3%) of the Contemplated Shares, or up to eighteen thousand (18,000) Shares (the “Exit Financing Shares”), shall be granted to Participants in accordance with this Section 3(a)(iii). If the Exit
Financing Termination Date occurs within eighteen (18) months after the effective date of the Exit Financing, then the number of Shares subject to the Awards granted to Participants in accordance with this Section 3(a)(iii) shall be zero (0).
If the Exit Financing Termination Date does not occur within eighteen (18) months after the effective date of the Exit Financing, then the number of Shares subject to the Awards granted to Participants in accordance with this Section 3(a)(iii)
shall be determined by multiplying the Exit Financing Shares by a fraction, (A) the numerator of which is the number of days between (x) eighteen (18) months after the effective date of the Exit Financing and (y) the Exit Financing
Termination Date, and (B) the denominator of which is the number of days between (x) eighteen (18) months after the effective date of the Exit Financing and (y) the stated maturity date of the Exit Financing. The Awards

  
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granted to Participants pursuant to this Section 3(a)(iii) shall (A) vest as follows: (a) two-fifths (2/5ths) shall vest on the first day following the date that is eighteen (18) months after the effective date of the Exit Financing and (b) one-fifth (1/5th) shall vest on each of the second, third and fourth anniversaries of the effective date of the Exit Financing and (B) be allocated ratably on the same basis as the Time-Based Awards to
Participants on the later of (i) the Effective Date and (ii) the date of grant of the Time-Based Awards pursuant to Section 3(a)(ii). 

(iv) Reserved Grant Pool. The remaining four percent (4%) of the Contemplated Shares, or two hundred forty thousand (240,000) Shares
(the “Reserved Grant Pool”), shall be reserved for Awards as determined by the Board of the Reorganized Company in consultation with the Chairman of the Board; provided, however, that if, at the time of a Change in Control,
any Shares remain in the Reserved Grant Pool (the “Unallocated Reserved Shares”), additional grants of Awards shall be made as follows: (x) if the Change in Control is consummated at an Equity Value of at least
$283 million, 50% of the Unallocated Reserved Shares shall be granted in the form of Restricted Stock that will vest immediately prior to but subject to the consummation of the Change in Control and (y) if the Change in Control is
consummated at an Equity Value of at least $354 million, the remaining 50% of the Unallocated Reserved Shares shall be granted in the form of Restricted Stock that will vest immediately prior to but subject to the consummation of the Change in
Control. Any grants made pursuant to the provision in the preceding sentence shall be allocated to Participants who are employed by the Company or one of its Subsidiaries at the time of the Change in Control in proportion to the number of Shares
covered by Awards they then hold. 
 (v) Lapsed Award Grant Pool. If any outstanding Award expires or is terminated or canceled
without having been exercised or settled in full, or if Shares acquired pursuant to an Award subject to forfeiture are forfeited, the Shares allocable to the terminated portion of the Award or the forfeited Shares shall revert to the Plan and be
added to the Lapsed Award Grant Pool, and shall again be available for grant under the Plan as determined by the Compensation Committee of the Reorganized Company in consultation with the Chairman of the Board; provided, however, that no Awards
shall be granted in respect of Shares from the Lapsed Award Grant Pool if there are then Shares available for Awards from the Reserved Grant Pool . 

(vi) The allocation of the Awards made from the pools established pursuant to Section 3(a)(i) and Section 3(a)(ii) shall be as determined by
the Chairman of the Board in consultation with the Board of the Reorganized Company. 
 (b) Share Counting. Upon the granting of an
Award, the number of Shares subject to the Award shall be counted against the Aggregate Share Reserve. 
 (c) Share Reserve. The
Company, during the term of the Plan, shall at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 

  
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 4. Administration of the Plan. 

(a) Procedure. 
 (i)
Multiple Administrative Bodies. Different Committees with respect to different groups of Service Providers may administer the Plan. Other than as provided above, the Plan shall be administered by (A) the Board or (B) a Committee
constituted to satisfy Applicable Laws. 
 (ii) Rule 16b-3. To the extent any transaction
contemplated under the plan is subject to Rule 16b-3 of the Exchange Act, if a transaction is intended to be exempt under Rule 16b-3, it shall be structured to satisfy
the requirements for exemption under Rule 16b-3. 
 (iii) Delegation of Authority for Day-to-Day Administration. Except to the extent prohibited by Applicable Law, the Administrator may delegate to one or more individuals the day-to-day administration of the Plan and any of the functions assigned to it in this Plan. Such delegation may be revoked at any time. 

(b) Powers of the Administrator. Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific duties
delegated by the Board to the Committee, the Administrator shall have the authority, in its discretion to: 
 (i) subject to clause
(iv) of the definition of Fair Market Value, to determine the Fair Market Value of Awards; 
 (ii) select the Service Providers to whom
Awards may be granted under this Plan; 
 (iii) determine the number of Shares to be covered by each Award granted under this Plan; 

(iv) approve forms of Award Agreements for use under the Plan; 

(v) determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted under this Plan, including but not
limited to, the exercise price, the time or times when Awards may be exercised (which may be based on Performance Goals or other performance criteria), any vesting acceleration or waiver of forfeiture or repurchase restrictions, and any restriction
or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine; 

(vi) construe and interpret the terms of the Plan and Awards granted pursuant to the Plan; 

(vii) amend the terms of any outstanding Award, including the discretionary authority to extend the
post-termination exercise period of Awards and accelerate the satisfaction of any vesting criteria or waiver of forfeiture or repurchase restrictions, provided that any amendment that would adversely affect
the Participant’s rights under an outstanding 

  
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Award shall not be made without the Participant’s written consent; however, except as otherwise provided in Section 15, the Administrator shall not, without prior approval of the
Company’s shareholders (i) amend the exercise price of outstanding Options or SARs, (ii) cancel and regrant Options or SARs at a lower exercise price, or (iii) substitute underwater Options for other securities (including buyouts
through issuance of such cash or other means). Notwithstanding the foregoing, an amendment shall not be treated as adversely affecting the rights of the Participant if the amendment causes an Incentive Stock Option to become a Nonstatutory Stock
Option or if the amendment is made to the minimum extent necessary to avoid the adverse tax consequences of Section 409A of the Code. 

(viii) allow Participants to satisfy withholding income tax obligations by (i) payment to the Company of the amount of such withholding
obligation by cash, wire transfer, certified check or bank draft, (ii) electing to have the Company withhold from the Shares or cash to be issued upon exercise or vesting of an Award that number of Shares or cash having a Fair Market Value
equal to or less than the maximum statutory withholding rate for the applicable jurisdiction or (iii) a combination of the above; provided, however, that Participants shall not be entitled to satisfy withholding income tax obligations by having
Shares withheld pursuant to clause (ii) above if the income tax withholding obligations arise in connection with a Liquidity Event or following an initial public offering of the Common Stock (or the securities that are subject to the Award
following an adjustment pursuant to Section 15) to the extent that following the initial public offering there are not, at the time the income tax withholding is due, any legal or contractual restrictions on the ability of the Participants to
sell such Shares in the public market as may be necessary to fund the required withholding income taxes. The Fair Market Value of any Shares to be withheld shall be determined on the date that the amount of income tax to be withheld is to be
determined, and all elections by a Participant to have Shares or cash withheld for this purpose shall be made in such form and under such conditions as the Administrator may deem necessary or advisable; 

(ix) authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award previously granted by
the Administrator; 
 (x) allow a Participant to defer the receipt of the payment of cash or the delivery of Shares that would otherwise be
due to the Participant under an Award; 
 (xi) determine whether Awards shall be settled in Shares, cash or in a combination of Shares and
cash; 
 (xii) create Other Stock Based Awards for issuance under the Plan; 

(xiii) establish a program whereby Service Providers designated by the Administrator can reduce compensation otherwise payable in cash in
exchange for Awards under the Plan; 
 (xiv) establish one or more programs under the Plan to permit selected Participants the opportunity
to elect to defer receipt of consideration upon exercise of an Award, satisfaction of Performance Goals or other performance criteria, or other event that absent the election, would entitle the Participant to payment or receipt of Shares or other
consideration under an Award; and 

  
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 (xv) make all other determinations that the Administrator deems necessary or advisable for
administering the Plan. 
 The express grant in the Plan of any specific power to the Administrator shall not be construed as limiting any power or
authority of the Administrator. However, the Administrator may not exercise any right or power reserved to the Board. 
 (c) Effect of
Administrator’s Decision. The Administrator’s decisions, determinations, actions and interpretations shall be final, conclusive and binding on all persons having an interest in the Plan. 

(d) Indemnification. The Company shall defend and indemnify members of the Board, officers and Employees of the Company or of a Parent
or Subsidiary to whom authority to act for the Board, the Administrator or the Company is delegated (“Indemnitees”) to the maximum extent permitted by law against (i) all reasonable expenses, including reasonable
attorneys’ fees incurred in connection with the defense of any claim, investigation, action, suit or proceeding, or in connection with any appeal therein (collectively, a “Claim”), to which any of them is a party by reason of
any action taken or failure to act in connection with the Plan, or in connection with any Award granted under the Plan; and (ii) all amounts required to be paid by them in settlement the Claim (provided the settlement is approved by the
Company) or required to be paid by them in satisfaction of a judgment in any Claim. However, no person shall be entitled to indemnification to the extent he is determined in such Claim to be liable for gross negligence, bad faith or intentional
misconduct. In addition, to be entitled to indemnification, the Indemnitee must, within thirty (30) days after written notice of the Claim, offer the Company, in writing, the opportunity, at the Company’s expense, to defend the Claim. The
right to indemnification shall be in addition to all other rights of indemnification available to the Indemnitee. 
 5. Eligibility.
Nonstatutory Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Units, Performance Shares, and Other Stock Based Awards may be granted to Service Providers. Incentive Stock Options may be granted only to
Employees. 

  
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 6. $100,000 Limitation for Incentive Stock Options. Each Option shall be designated in the
Award Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by a Participant during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such Options shall be treated as Nonstatutory Stock Options. For purposes of this
Section 6, Incentive Stock Options shall be taken into account in the order in which they were granted. The Fair Market Value of the Shares shall be determined as of the time the Options with respect to such Shares are granted. 

7. Options. 
 (a) Term
of Option. The term of each Option shall be stated in the Award Agreement. In the case of an Incentive Stock Option, the term shall be ten (10) years from the date of grant or such shorter term as may be provided in the Award Agreement.
Moreover, in the case of an Incentive Stock Option granted to a Participant who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the total combined voting power of all classes of stock of the
Company or any Parent or Subsidiary, the term of the Incentive Stock Option shall be five (5) years from the date of grant or such shorter term as may be provided in the Award Agreement. 

(b) Option Exercise Price and Consideration. 

(i) Exercise Price. The per Share exercise price for the Shares to be issued pursuant to exercise of an Option shall be determined by
the Administrator, subject to the following: 
 (1) In the case of an Incentive Stock Option 

(A) granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the
total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than one hundred and ten percent (110%) of the Fair Market Value per Share on the date of grant. 

(B) granted to any Employee other than an Employee described in paragraph (A) immediately above, the per Share exercise price shall be no
less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant. 
 (2) In the case of a Nonstatutory Stock
Option, the per Share exercise price shall be determined by the Administrator, but shall not be less than Fair Market Value per Share on the date of grant. 

(3) Notwithstanding the foregoing, Incentive Stock Options may be granted with a per Share exercise price of less than one hundred percent
(100%) of the Fair Market Value per Share on the date of grant pursuant to a transaction described in, and in a manner consistent with, Section 424(a) of the Code. 

  
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 (ii) Waiting Period and Exercise Dates. At the time an Option is granted, the
Administrator shall fix the period within which the Option may be exercised and shall determine any conditions that must be satisfied before the Option may be exercised. The Administrator, in its sole discretion, may accelerate the satisfaction of
such conditions at any time. 
 (c) Form of Consideration. The Administrator shall determine the acceptable form of consideration for
exercising an Option, including the method of payment. In the case of an Incentive Stock Option, the Administrator shall determine the acceptable form of consideration at the time of grant. Such consideration, to the extent permitted by Applicable
Laws, may consist entirely of: 
 (i) cash; 

(ii) check; 
 (iii) other Shares
which meet the conditions established by the Administrator to avoid adverse accounting consequences (as determined by the Administrator); 

(iv) consideration received by the Company under a cashless exercise program implemented by the Company in connection with the Plan; 

(v) a reduction in the amount of any Company liability to the Participant, including any liability attributable to the Participant’s
participation in any Company-sponsored deferred compensation program or arrangement; 
 (vi) any combination of the foregoing methods of
payment; or 
 (vii) any other consideration and method of payment for the issuance of Shares permitted by Applicable Laws. 

(d) Exercise of Option. 

(i) Procedure for Exercise; Rights as a Shareholder. Any Option granted under this Plan shall be exercisable according to the terms of
the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Award Agreement. An Option shall be deemed exercised when the Company receives: (x) written or electronic notice of exercise (in
accordance with the Award Agreement) from the person entitled to exercise the Option, and (y) full payment for the Shares with respect to which the Option is exercised (including provision for any applicable tax withholding). Full payment may
consist of any consideration and method of payment authorized by the Administrator and permitted by the Award Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the name of the Participant or, if requested by the
Participant, in the name of the Participant and his spouse. Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends
or any other rights as a shareholder shall exist with respect to the Awarded Stock, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment shall
be made for a dividend 

  
 13 

 
or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 15 of the Plan or the applicable Award Agreement. Exercising an Option in
any manner shall decrease the number of Shares thereafter available for sale under the Option, by the number of Shares as to which the Option is exercised. 

(ii) Termination of Relationship as a Service Provider. If a Participant ceases to be a Service Provider, other than upon the
Participant’s death or Disability, the Participant may exercise his Option within such period of time as is specified in the Award Agreement to the extent that the Option is vested on the date of termination pursuant to the terms of the Award
Agreement (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option shall remain exercisable for three (3) months following
the Participant’s termination after which the Option shall terminate. Unless otherwise provided by the Award Agreement, if on the date of termination the Participant is not vested as to his entire Option, the Shares covered by the unvested
portion of the Option shall revert to the Plan as provided in Section 3(c). If the Participant does not exercise his Option as to all of the vested Shares within the time specified by the Award Agreement, the Option shall terminate, and the
remaining Shares covered by the Option shall revert to the Plan as provided in Section 3(c). 
 (iii) Disability of Participant. If a
Participant ceases to be a Service Provider as a result of his Disability, the Participant may exercise his Option, to the extent vested, within the time specified in the Award Agreement (but in no event later than the expiration of the term of the
Option as set forth in the Award Agreement). If no time for exercise of the Option on Disability is specified in the Award Agreement, the Option shall remain exercisable for twelve (12) months following the Participant’s termination for
Disability. Unless otherwise provided by the Administrator, on the date of termination for Disability, the unvested portion of the Option shall revert to the Plan. If after termination for Disability, the Participant does not exercise his Option as
to all of the vested Shares within the time specified by the Award Agreement, the Option shall terminate and the remaining Shares covered by such Option shall revert to the Plan as provided in Section 3(c). 

(iv) Death of Participant. If a Participant dies while a Service Provider, the Option, to the extent vested, may be exercised within
the time specified in the Award Agreement (but in no event may the Option be exercised later than the expiration of the term of the Option as set forth in the Award Agreement), by the beneficiary designated by the Participant prior to his death;
provided that such designation must be acceptable to the Administrator. If no beneficiary has been designated by the Participant, then the Option may be exercised by the personal representative of the Participant’s estate, or by the persons to
whom the Option is transferred pursuant to the Participant’s will or in accordance with the laws of descent and distribution. If the Award Agreement does not specify a time within which the Option must be exercised following a
Participant’s death, it shall be exercisable for twelve (12) months following his death. Unless otherwise provided by the Administrator, if at the time of death, the Participant is not vested as to his entire Option, the Shares covered by
the unvested portion of the Option shall immediately vest. If the Option is not exercised as to all of the vested Shares within the time specified by the Administrator, the Option shall terminate, and the remaining Shares covered by such Option
shall revert to the Plan as provided in Section 3(c). 

  
 14 

 8. Restricted Stock. 

(a) Grant of Restricted Stock. Subject to the terms and provisions of the Plan, the Administrator, at any time and from time to time,
may grant Shares of Restricted Stock to Service Providers in such amounts as the Administrator, in its sole discretion, shall determine. 

(b) Restricted Stock Agreement. Each Award of Restricted Stock shall be evidenced by an Award Agreement that shall specify the Period of
Restriction, the number of Shares granted, and such other terms and conditions as the Administrator, in its sole discretion, shall determine. Unless the Administrator determines otherwise, Shares of Restricted Stock shall be held by the Company as
escrow agent until the restrictions on the Shares have lapsed. 
 (c) Removal of Restrictions. Except as otherwise provided in this
Section 8, Shares of Restricted Stock covered by each Award made under the Plan shall be released from escrow as soon as practical after the last day of the Period of Restriction. The Administrator, in its sole discretion, may accelerate the
time at which any restrictions shall lapse or be removed. 
 (d) Voting Rights. During the Period of Restriction, Service Providers
holding Shares of Restricted Stock may exercise full voting rights with respect to those Shares, unless the Award Agreement provides otherwise. 

(e) Dividends and Other Distributions. During the Period of Restriction, Service Providers holding Shares of Restricted Stock shall be
entitled to receive all dividends and other distributions paid with respect to such Shares unless otherwise provided in the Award Agreement. If any dividends or distributions are paid in Shares, the Shares shall be subject to the same restrictions
on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid. 
 (f) Return of Restricted
Stock to Company. On the date set forth in the Award Agreement, the Restricted Stock for which restrictions have not lapsed shall revert to the Plan as provided in Section 3(c). 

9. Stock Appreciation Rights 

(a) Grant of SARs. Subject to the terms and conditions of the Plan, a SAR may be granted to Service Providers at any time and from time
to time as shall be determined by the Administrator, in its sole discretion. The Administrator shall have complete discretion to determine the number of SARs granted to any Service Provider. The Administrator, subject to the provisions of the Plan,
shall have complete discretion to determine the terms and conditions of SARs granted under the Plan, including the sole discretion to accelerate exercisability at any time. 

(b) SAR Agreement. Each SAR grant shall be evidenced by an Award Agreement that shall specify the exercise price, the term, the
conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion, shall determine. 
 (c)
Expiration of SARs. A SAR granted under the Plan shall expire upon the date determined by the Administrator, in its sole discretion, as set forth in the Award Agreement. 

  
 15 

 Notwithstanding the foregoing, the rules of Sections 7(d)(ii), 7(d)(iii) and 7(d)(iv) shall also apply to
SARs. 
 (d) Payment of SAR Amount. Upon exercise of a SAR, a Participant shall be entitled to receive payment from the Company in an
amount determined by multiplying: 
 (i) The difference between the Fair Market Value of a Share on the date of exercise over the exercise
price; times 
 (ii) The number of Shares with respect to which the SAR is exercised. 

At the sole discretion of the Administrator, the payment upon the exercise of a SAR may be in cash, in Shares of equivalent value, or in some combination
thereof, unless the Award Agreement provides otherwise. 
 10. Performance Units and Performance Shares. 

(a) Grant of Performance Units and Performance Shares. Subject to the terms and conditions of the Plan, Performance Units and
Performance Shares may be granted to Service Providers at any time and from time to time, as shall be determined by the Administrator in its sole discretion. The Administrator shall have complete discretion in determining the number of Performance
Units and Performance Shares granted to each Service Provider. 
 (b) Value of Performance Units and Performance Shares. Each
Performance Unit shall have an initial value established by the Administrator on or before the date of grant. Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on the date of grant. 

(c) Performance Objectives and Other Terms. The Administrator shall set Performance Goals or other performance objectives in its sole
discretion which, depending on the extent to which they are met, shall determine the number or value of Performance Units and Performance Shares that shall be paid out to the Participant. Each award of Performance Units or Performance Shares shall
be evidenced by an Award Agreement that shall specify the Performance Period and such other terms and conditions as the Administrator in its sole discretion shall determine. The Administrator may set Performance Goals or performance objectives based
upon the achievement of Company-wide, divisional, or individual goals, applicable federal or state securities laws, or any other basis determined by the Administrator in its sole discretion. 

(d) Earning of Performance Units and Performance Shares. After the applicable Performance Period has ended, the holder of Performance
Units or Performance Shares shall be entitled to receive a payout of the number of Performance Units or Performance Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding
Performance Goals or performance objectives have been achieved. After the grant of Performance Units or Performance Shares, the Administrator, in its sole discretion, may reduce or waive any performance objectives for the Performance Unit or
Performance Share. 

  
 16 

 (e) Form and Timing of Payment of Performance Units and Performance Shares. Payment of
earned Performance Units and Performance Shares shall be made after the expiration of the applicable Performance Period at the time determined by the Administrator. The Administrator, in its sole discretion, may pay earned Performance Units and
Performance Shares in the form of cash, in Shares (which have an aggregate Fair Market Value equal to the value of the earned Performance Units or Performance Shares, as applicable, at the close of the applicable Performance Period) or in a
combination of cash and Shares. 
 (f) Cancellation of Performance Units or Performance Shares. On the date set forth in the Award
Agreement, all unearned or unvested Performance Units and Performance Shares shall be forfeited and the Shares subject to the Award shall revert to the Plan as provided in Section 3(c). 

11. Restricted Stock Units. Restricted Stock Units shall represent the right of a Participant to receive a payment upon vesting of the
Restricted Stock Unit (or on any later date specified by the Administrator and set forth in the Award Agreement at the time of grant) equal to the Fair Market Value of a Share as of the date the Restricted Stock Unit vests or such other date as
determined by the Administrator at the time the Restricted Stock Unit was granted. The Administrator, in its sole discretion, may pay earned Restricted Stock Units in the form of cash, in Shares (which have an aggregate Fair Market Value equal to
the payment to which the Participant has become entitled) or in a combination of cash and Shares. Upon the forfeiture or other termination of Restricted Stock Units without payment therefore, Shares subject to the Award shall revert to the Plan as
provided in Section 3(c). 
 12. Other Stock Based Awards. Other Stock Based Awards may be granted either alone, in addition to, or in
tandem with, other Awards granted under the Plan and/or cash awards made outside of the Plan. The Administrator shall have authority to determine the Service Providers to whom and the time or times at which Other Stock Based Awards shall be made,
the amount of such Other Stock Based Awards, and all other conditions of the Other Stock Based Awards, including any dividend or voting rights and whether the Award should be paid in cash. 

13. Leaves of Absence. Unless the Administrator provides otherwise, vesting of Awards granted under this Plan shall be suspended during
any unpaid leave of absence and shall resume on the date the Participant returns to work on a regular schedule as determined by the Company; provided, however, that no vesting credit shall be awarded for the time vesting has been suspended during
such leave of absence. A Service Provider shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its Parent, or any
Subsidiary. For purposes of Incentive Stock Options, no leave of absence may exceed ninety (90) days, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence
approved by the Company is not guaranteed by statute or contract, then at the end of three (3) months following the expiration of the leave of absence, any Incentive Stock Option held by the Participant shall cease to be treated as an Incentive
Stock Option and shall be treated for tax purposes as a Nonstatutory Stock Option. 

  
 17 

 14. Non-Transferability of Awards. Unless
determined otherwise by the Administrator, an Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by the laws of descent, distribution or pursuant to a qualifed domestic relations order, and
may be exercised, during the lifetime of the Participant, only by the Participant. If the Administrator makes an Award transferable, such Award shall contain such additional terms and conditions as the Administrator deems appropriate. 

15. Adjustments; Dissolution or Liquidation; Change in Control. 

(a) Adjustments. In the event that (a) the outstanding Shares are changed into or exchanged for a different number or kind of
shares of stock or other securities or other equity interests of the Company or another corporation or entity, whether through merger, consolidation, reorganization, recapitalization, stock dividend, stock split, reverse stock split, substitution,
exchange or other similar corporate event or transaction or (b) there is an extraordinary dividend or distribution by the Company or an Affiliate in respect of its Shares, an equitable adjustment shall be made, in order to prevent dilution or
enlargement of the benefits or potential benefits intended to be made available under the Plan. Such adjustment may include an adjustment to the maximum number and kind of shares of stock or other securities or other equity interests as to which
Awards may be granted under the Plan, the number and kind of shares of stock or other securities or other equity interests subject to outstanding Awards and the exercise price thereof, if applicable, and the numerical limits in Section 3.
Notwithstanding the preceding, the number of Shares subject to any Award always shall be a whole number. 
 (b) Dissolution or
Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator shall notify each Participant as soon as practical prior to the effective date of the proposed transaction. The Administrator will provide for
a Participant to have the right to exercise his Award, to the extent applicable, until ten (10) days prior to the transaction as to all of the Awarded Stock covered thereby, including Shares as to which the Award would not otherwise be
exercisable. In addition, the Administrator may provide that any Company repurchase option or forfeiture rights applicable to any Award shall lapse one hundred percent (100%), and that any Award vesting shall accelerate one hundred percent (100%),
provided the proposed dissolution or liquidation takes place at the time and in the manner contemplated. To the extent it has not been previously exercised or vested, an Award shall terminate immediately prior to the consummation of such proposed
action. 
 (c) Change in Control. This Section 15(c) shall apply except to the extent otherwise provided in the Award Agreement
or the employment agreement between a Participant and the Company or a Subsidiary of the Company. 
 (i) Stock Options and SARs. In
the event of a Change in Control that results in ownership by a successor corporation, each outstanding Option and SAR shall be assumed or an equivalent option or SAR substituted by the successor corporation or a Parent or Subsidiary of the
successor corporation. Unless determined otherwise by the Administrator, if the successor corporation refuses to assume or substitute for the Option or SAR, the Participant shall fully vest in and have the right to exercise the Option or SAR as to
all of the Awarded Stock, including Shares as to which it would not otherwise be vested or exercisable. If an Option or SAR is not assumed or substituted on the Change in Control, the Administrator shall notify the Participant in writing or
electronically that the Option or SAR shall be exercisable, to the extent vested, for a period of at least ninety (90) days prior to the Change in Control (the any 

  
 18 

 
exercise of an Option or SAR that was not otherwise exercisable bing subject to the Change in Control actually occurring), and the Option or SAR shall terminate upon the the occurrence of the
Change in Control. For the purposes of this Section 15(c)(i), the Option or SAR shall be considered assumed if, following the Change in Control, the option or SAR confers the right to purchase or receive, for each Share of Awarded Stock subject
to the Option or SAR immediately prior to the Change in Control, the consideration (whether securities, cash, or property) received in the Change in Control by holders of Common Stock for each Share held on the effective date of the transaction (and
if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares). However, if the consideration received in the Change in Control is not solely common stock of the successor
corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Option or SAR, for each share of Awarded Stock subject to the Option or SAR, to be
solely common stock of the successor corporation or its Parent equal in Fair Market Value to the per share consideration received by holders of Common Stock in the Change in Control. Notwithstanding anything in this Plan to the contrary, an Award
that vests, is earned, or is paid-out upon the satisfaction of one or more performance objectives shall not be considered assumed if the Company or its successor modifies any of the performance objectives
without the Participant’s consent; provided, however, a modification to performance objectives only to reflect the successor corporation’s post-Change in Control corporate structure shall not be
deemed to invalidate an otherwise valid Award assumption. 
 (ii) Restricted Stock, Performance Shares, Performance Units, Restricted
Stock Units and Other Stock Based Awards. In the event of a Change in Control, each outstanding Award of Restricted Stock, Restricted Stock Unit, Performance Share, Performance Unit, and Other Stock Based Award shall be assumed or an equivalent
Restricted Stock, Restricted Stock Unit, Performance Share, Performance Unit, and Other Stock Based Award shall be substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. Unless determined otherwise by the
Administrator, if the successor corporation refuses to assume or substitute for the Award, the Participant shall fully vest in the Award, including as to Shares or Units that would not otherwise be vested, all applicable restrictions shall lapse,
and all performance objectives and other vesting criteria shall be deemed achieved at targeted levels. For the purposes of this Section 15(c)(ii), an Award of Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units, and
Other Stock Based Awards shall be considered assumed if, following the Change in Control, the award confers the right to purchase or receive, for each Share subject to the Award immediately prior to the Change in Control (and if a Restricted Stock
Unit or Performance Unit, for each Share as determined based on the then current value of the unit), the consideration (whether stock, cash, or other securities or property) received in the Change in Control by holders of Common Stock for each Share
held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares). However, if the consideration received in the Change in
Control is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide that the consideration to be received for each Share (and if a Restricted Stock Unit or
Performance Unit, for each Share as determined based on the then current value of the unit) be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common
Stock in the 

  
 19 

 
Change in Control. Notwithstanding anything in this Plan to the contrary, an Award that vests, is earned, or is paid-out upon the satisfaction of one or
more performance objectives shall not be considered assumed if the Company or its successor modifies any of the performance objectives without the Participant’s consent; provided, however, a modification to the performance objectives only to
reflect the successor corporation’s post-Change in Control corporate structure shall not be deemed to invalidate an otherwise valid Award assumption. 

16. Date of Grant. The date of grant of an Award shall be, for all purposes, the date on which the Administrator makes the determination
granting such Award, or a later date as is determined by the Administrator. Notice of the determination shall be provided to each Participant within a reasonable time after the date of such grant. 

17. Term of Plan. The Plan became effective on the Effective Date and thereafter shall continue in effect for a term of ten
(10) years unless terminated earlier under Section 18 of the Plan. 
 18. Amendment and Termination of the Plan. 

(a) Amendment and Termination. The Board may at any time amend, alter, suspend or terminate the Plan. The Plan shall terminate upon the
occurrence of a Change in Control and no Awards may be granted following a Change in Control. 
 (b) Shareholder Approval. The Company
shall obtain shareholder approval of any Plan amendment to the extent necessary to comply with Applicable Laws. 
 (c) Effect of Amendment
or Termination. No amendment, alteration, suspension, or termination of the Plan shall materially or adversely impair the rights of any Participant, unless otherwise mutually agreed upon by the Participant and the Administrator, which agreement
must be in writing and signed by the Participant and the Company. Termination of the Plan shall not affect the Administrator’s ability to exercise the powers granted to it under this Plan with respect to Awards granted under the Plan prior to
the date of termination. 
 19. Conditions upon issuance of shares. 

(a) Legal Compliance. Shares shall not be issued pursuant to the exercise of an Award unless the exercise of the Award and the issuance
and delivery of such Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance. 

(b) Investment Representations. As a condition to the exercise or receipt of an Award, the Company may require the person exercising or
receiving the Award to represent and warrant at the time of any such exercise or receipt that the Shares are being purchased only for investment and without any present intention to sell or distribute the Shares if, in the opinion of counsel for the
Company, such a representation is required. 

  
 20 

 (c) Taxes. No Shares shall be delivered under the Plan to any Participant or other person
until the Participant or other person has made arrangements acceptable to the Administrator for the satisfaction of any non-U.S., U.S.-federal, U.S.-state, or local income and employment tax withholding obligations, including, without limitation, obligations incident to the receipt of Shares. Upon exercise or vesting of an Award, the Company shall withhold
or collect from the Participant an amount sufficient to satisfy such tax obligations, including, but not limited to, by surrender of a whole number of Shares covered by the Award sufficient to satisfy the minimum applicable tax withholding
obligations incident to the exercise or vesting of the Award. 
 20. Severability. Notwithstanding any provision of the Plan or an
Award to the contrary, if any one or more of the provisions (or any part thereof) of this Plan or the Awards shall be held invalid, illegal, or unenforceable in any respect, such provision shall be modified so as to make it valid, legal, and
enforceable, and the validity, legality, and enforceability of the remaining provisions (or any part thereof) of the Plan or Award, as applicable, shall not in any way be affected or impaired thereby. 

21. Inability to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained. 
 22. No Rights to Awards. No eligible Service Provider or other person shall have any claim
to be granted any Award pursuant to the Plan, and neither the Company nor the Administrator shall be obligated to treat Participants or any other person uniformly. 

23. No Shareholder Rights. Except as otherwise provided in an Award Agreement, a Participant shall have none of the rights of a
shareholder with respect to Shares covered by an Award until the Participant becomes the owner of the Shares. 
 24. Fractional
Shares. No fractional Shares shall be issued and the Administrator shall determine, in its sole discretion, whether cash shall be given in lieu of fractional Shares or whether such fractional Shares shall be eliminated by rounding up or down as
appropriate. 
 25. Governing Law. The Plan, all Award Agreements, and all related matters, shall be governed by the laws of the State
of Texas, without regard to choice of law principles that direct the application of the laws of another state. 
 26. No Effect on Terms
of Employment or Consulting Relationship. The Plan shall not confer upon any Participant any right as a Service Provider, nor shall it interfere in any way with his right or the right of the Company or a Parent or Subsidiary to terminate the
Participant’s service at any time, with or without cause, and with or without notice. There is no obligation for uniformity of treatment of any Service Provider of the Company or any Participant. 

27. Unfunded Obligation. Participants shall have the status of general unsecured creditors of the Company. Any amounts payable to
Participants pursuant to the Plan shall be unfunded and unsecured obligations for all purposes, including, without limitation, Title I of the Employee Retirement Income Security Act of 1974, as amended. Neither the Company nor any Parent or
Subsidiary shall be required to segregate any monies from its general funds, or to 

  
 21 

 
create any trusts, or establish any special accounts with respect to such obligations. The Company shall retain at all times beneficial ownership of any investments, including trust investments,
which the Company may make to fulfill its payment obligations under this Plan. Any investments or the creation or maintenance of any trust for any Participant account shall not create or constitute a trust or fiduciary relationship between the
Administrator, the Company or any Parent or Subsidiary and Participant, or otherwise create any vested or beneficial interest in any Participant or the Participant’s creditors in any assets of the Company or Parent or Subsidiary. The
Participants shall have no claim against the Company or any Parent or Subsidiary for any changes in the value of any assets that may be invested or reinvested by the Company with respect to the Plan. 

28. Section 409A. It is the intention of the Company that no Award shall be “deferred compensation” subject
to Section 409A of the Code, unless and to the extent that the Administrator specifically determines otherwise, and the Plan and the terms and conditions of all Awards shall be interpreted accordingly. The following rules shall apply to Awards
intended to be subject to Section 409A of the Code (“409A Awards”): 
 (a) Any distribution of a
409A Award following a separation from service that would be subject to Section 409A(a)(2)(A)(i) of the Code as a distribution following a separation from service of a “specified employee” (as defined under
Section 409A(a)(2)(B)(i) of the Code) shall occur no earlier than the expiration of the six (6) month period following such separation from service. 

(b) In the case of a 409A Award providing for distribution or settlement upon vesting or lapse of a risk of forfeiture, if the time of
such distribution or settlement is not otherwise specified in the Plan or Award Agreement or other governing document, the distribution or settlement shall be made no later than March 15 of the calendar year following the calendar year in which
such 409A Award vested or the risk of forfeiture lapsed. 
 (c) In the case of any distribution of any other 409A Award, if the
timing of such distribution is not otherwise specified in the Plan or Award Agreement or other governing document, the distribution shall be made not later than the end of the calendar year during which the settlement of the 409A Award is
specified to occur. 
 29. Construction. Headings in this Plan are included for convenience and shall not be considered in the
interpretation of the Plan. References to sections are to Sections of this Plan unless otherwise indicated. Pronouns shall be construed to include the masculine, feminine, neutral, singular or plural as the identity of the antecedent may require.
This Plan shall be construed according to its fair meaning and shall not be strictly construed against the Company. 

*    *    *    *    * 

  
 22EX-10.5

 Exhibit 10.5 

AMENDED AND RESTATED 

EMPLOYMENT AGREEMENT 
 THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of the April 13, 2017, but is effective as of the Commencement Date (as hereinafter defined), by and between Forbes Energy Services LLC, a
Delaware limited liability company (the “Employer”), and John E. Crisp, residing at 588 County Road 101, George West, Texas 78022 (the “Employee”). 

WITNESSETH: 
 WHEREAS, Employee
is presently employed with Employer pursuant to that certain Employment Agreement entered into as of May 1, 2008 (the “Original Agreement”), as amended by that certain First Amendment to Employment Agreement effective as of
July 30, 2015 (the “Amendment” and together with the Original Agreement, the “Existing Employment Agreement”); 

WHEREAS, Employer and Employee desire to amend and restate the Existing Employment Agreement in order to make certain changes thereto; and

 WHEREAS, Employer and Employee agree that this Agreement shall amend and restate the Existing Employment Agreement in its entirety,
commencing on the Commencement Date, and that the Existing Employment Agreement shall terminate in its entirety. 
 NOW, THEREFORE, in
consideration of the mutual covenants herein contained and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

1. Employment. Employer has employed and hereby continues to employ Employee, and Employee hereby accepts such continued employment,
upon the terms and subject to the conditions set forth in this Agreement. Employee shall be employed by Employer but may serve (and if requested by Employer shall serve) as an officer and/or director of its parent, Forbes Energy Services Ltd.
(“Parent”), or any subsidiary or affiliate of Employer or Parent. 
 2. Term. The term of employment under this
Agreement shall commence on April 13, 2017 (the “Commencement Date”) and shall continue for four (4) years thereafter (such four year period, the “Initial Term”); provided, however, that, unless terminated as
contemplated herein, beginning on the first day after the Initial Term and on every anniversary of such date thereafter (each a “Renewal Date”), the then-existing term of this Agreement shall automatically be extended one additional year
unless either party gives the other written notice of termination between one hundred eighty (180) and two hundred forty (240) days prior to any such Renewal Date. For the avoidance of doubt, notice of termination of this Agreement given
any time other than between the one hundred eighty (180) and two hundred forty (240) days prior to a Renewal Date shall be void and ineffective. Written notice by Employer shall be solely pursuant to a duly adopted resolution of
Employer’s or Parent’s board of directors. Following the date of termination of employment, Employee shall have no further rights, including but not limited to rights under Section 8, or obligations hereunder, except obligations set
forth in Sections 10 and 11. 

  
 1 

 3. Compensation and Benefits. 

(a) Employer shall pay to Employee as compensation for all services rendered by Employee a basic annualized salary of $650,000.00 per year
during the Initial Term, or such other sums as the parties may agree on from time to time, payable semi-monthly or in other more frequent installments, as determined by the Board (as hereinafter defined). The board of directors of Parent or, if the
same is established, the compensation committee of the board of directors of Parent (the “Compensation Committee”), by providing direction through the board of directors of Employer (collectively, the board of directors of Parent, the
Compensation Committee and the board of directors of Employer are referred to as the “Board”) shall have the right to increase Employee’s compensation from time to time and Employee shall be entitled to an annual review thereof or
more frequently as determined by the Board. In addition, the Board, in its discretion, may, with respect to any year during the term hereof, award a bonus or bonuses to Employee; provided, however, Employer shall annually provide Employee
with a bonus based on the terms to be determined by the Compensation Committee or the Board. Such terms shall be more particularly described in Appendix “A” to be attached hereto. Appendix “A” may be modified, supplemented, or
replaced from time to time as determined by the Compensation Committee and established by written agreement between Employer and Employee for the purpose of defining the then current bonus calculation methodologies from the applicable year(s). The
compensation provided for in this Section 3(a) shall be in addition to any pension or profit sharing payments set aside or allocated for the benefit of Employee in either a tax qualified plan or otherwise. 

It is the intention of the parties that an Appendix “B” will be approved by the Board and signed by the Chairman of the Compensation
Committee or a non-management representative of the Board and the Employee no later than June 30 of each calendar year (or portion thereof) covered by this Agreement, as amended. In the absence of an approval by the Compensation Committee or
the Board of such an Appendix “B” for any year (or portion thereof), the Appendix “B” for the prior year will remain in full force and effect. 

(b) Employer shall reimburse Employee for all reasonable expenses incurred by Employee in the performance of his duties under this Agreement,
in accordance with the Employer’s expense reimbursement policy; provided, however, that Employee must furnish to Employer an itemized account, in form satisfactory to Employer, in substantiation of such expenditures. 

(c) Employee shall be entitled to such fringe benefits including, but not limited to, medical and family insurance benefits as may be provided
from time to time by Employer to other senior officers of Employer and on an economic basis consistent with past practices and policies of Employer; provided, however, that any health insurance shall not provide for a preexisting condition
limitation, and, provided further, that during the term of this Agreement, the aggregate annual cost for such fringe benefits shall not exceed $36,000. 

  
 2 

 (d) To the extent permitted by applicable law and terms of the benefit plans, Employer shall
include in Employee’s credited service, in any case where credited service is relevant in determining eligibility for or benefits under any employee benefits plan, the Employee’s service for any parent, subsidiary or affiliate of Employer
or for any predecessor thereof and time served at prior employers. 
 (e) Employer shall provide Employee with a vehicle or auto allowance
during the term of the Agreement as approved by the President and Chief Executive Officer. Employer will also pay for auto insurance, maintenance and fuel, unless such auto allowance is set to cover insurance and maintenance. Employee may use the
automobile for personal use and will pay all taxes related to such personal use. 
 (f) The amount of expenses eligible for reimbursement or
in-kind benefits provided during a calendar year may not affect the expenses eligible for reimbursement to be provided in any other calendar year. Reimbursement of eligible expenses will be made on or before the last day of the calendar year
following the calendar year in which the expense was incurred and the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit. 

(g) 
 (i) Employee
shall be eligible to participate in such incentive compensation and stock option plans that have been approved or may in the future be approved by the shareholders of Parent or Employer and administered by the Board. 

(ii) Employee and Employer agree that in connection with the Reorganization (as hereinafter defined), Parent shall establish a
customary management incentive plan (the “MIP”) under which shares of new common stock of Parent equal to twelve and one-half of one percent (12.5%) times the sum of (a) the number of shares of new common stock of Parent issued
to holders of Parent’s 9% senior notes as of the effective date of the Reorganization and (b) the number of shares of new common stock issuable under the MIP will be reserved for grants made from time to time to the officers and other key
employees of Employer or Parent, including Employee (the “MIP Aggregate Equity”). Employer and Employee agree that the MIP shall provide for grants of eight and one half of one percent (8.5%) of the MIP Aggregate Equity on the
effective date of the Reorganization or reasonably promptly thereafter, the distribution (including the distribution to the Employee) of which shall be determined by the Chairman of the Board in consultation with the Board, subject to the following:
(i) one percent (1%) of the MIP Aggregate Equity will vest upon the achievement of certain performance metrics based on the business plan of Employer approved by the Board, (ii) seven and two-tenths of one percent (7.2%) of the
MIP Aggregate Equity shall vest as follows: one-fifth (1/5th) shall vest on the later of (i) effective date of the Reorganization and (ii) the date of grant and one-fifth (1/5th) shall vest on each one year anniversary through the fourth anniversary of the effective date of the Reorganization, and (iii) if Exit Financing Termination Date (as defined in the MIP)
does not occur within eighteen (18) months following the Commencement Date, an additional number of shares shall be allocated (the “Exit Financing Awards”), such number determined by multiplying the product of three-tenths

  
 3 

 
of one percent (0.3%) of the MIP Aggregate Equity times a fraction, (A) the numerator of which is the number of days between (x) eighteen (18) months after the Commencement Date
and (y) the Exit Financing Termination Date, and (B) the denominator of which is the number of days between (x) eighteen (18) months after the Commencement Date and (y) the stated maturity date of the Exit Financing. The
Exit Facility Awards, if any, shall be allocated ratably on the same basis as the seven and two-tenths of one percent (7.2%) of the MIP Aggregate Equity and shall vest as follows: (i) two-fifths (2/5ths) shall vest on the first day
following the date that is eighteen (18) months after the Commencement Date and (ii) one-fifth (1/5th) shall vest on each of the second, third and fourth anniversaries of the
Commencement Date. The remaining pool of four percent (4%) of the MIP Aggregate Equity under the MIP shall be reserved for distribution as determined by the Board in consultation with the Chairman of the Board or, in the event of a Change in
Control, shall be granted and allocated as set forth in the MIP. 
 4. Duties. Employee is engaged and shall serve as President and
Chief Executive Officer of (i) Parent, (ii) Employer and (iii) any other direct or indirect subsidiaries of Parent that may be formed or acquired. Furthermore, Employee shall be Chairman of the Board so long as Employee is the
President and Chief Executive Officer of Parent. In addition, Employee shall have such other duties and hold such other offices as may from time to time be reasonably assigned to him by the Board. These services shall be provided from offices
located in Alice, Texas or such other location as may be mutually agreed. 
 5. Extent of Services; Vacations and Days Off. 

(a) During the term of his employment under this Agreement, Employee shall devote substantially his full business time, energy and attention to
the benefit and business of Employer as may be necessary in performing his duties pursuant to this Agreement, subject to the following sentence. Employee shall not provide services of a business nature to any other person except that the Employee
may engage in the Permitted Activities (as defined in Section 11(e)) provided that such activities do not significantly interfere with the Employee’s performance of his duties hereunder. In order to maximize Employee’s efficiency and
effectiveness for Employer, Employee may utilize the services of his executive assistant to assist Employee with de minimis personal matters. 

(b) Employee shall be entitled to vacations and holidays with pay and to such personal and sick leave with pay in accordance with the policy
of Employer as may be established from time to time by Employer and applied to other senior officers of Employer; provided, however, that Employee shall annually be entitled to the maximum number of vacation days and holidays afforded to any
other officer of Employer or Parent. 
 6. Facilities. Employer shall provide Employee with a fully furnished office of no less
stature, type, and size than was provided as of the Commencement Date, and the facilities of Employer shall be generally available to Employee in the performance of his duties pursuant to this Agreement; it being understood and contemplated by the
parties that all equipment, supplies and office personnel required for Employee’s performance of duties under this Agreement shall be supplied by Employer. 

  
 4 

 7. Illness or Incapacity, Termination on Death. 

(a) If during the term of his employment Employee becomes permanently disabled, as defined below, or dies, Employer shall pay to the Employee
or his estate compensation through the date of death or determination of permanent disability, including salary, any prior year bonus compensation earned but not yet paid and the pro-rated portion of any current year bonus as and when determined in
the ordinary course of the calculation of current year bonus due to other executive officers of Employer. Employer shall continue to provide medical insurance and other benefits to which Employee’s dependents would otherwise have been entitled
for one year following the date of death or determination of permanent disability. Effective upon the date of death or determination of permanent disability, any and all options, rights or awards granted in conjunction with Parent’s or
Employer’s incentive compensation and stock option plans shall immediately vest. Except for the benefits set forth in the preceding sentences and any life insurance benefits included in the benefit package provided at such time by Employer to
Employee, Employer shall have no additional financial obligation under this Agreement to Employee or his estate. After receiving the payments and health insurance benefits provided in this subparagraph (a), Employee and his estate shall have no
further rights under this Agreement. 
 (b) 

(i) During any period of disability, illness or incapacity during the term of this Agreement that renders Employee at least
temporarily unable to perform the services required under this Agreement for a period that shall not equal or exceed ninety (90) continuous days (provided that a return to full work status of less than five full days shall be deemed not to
interrupt the calculation of such 90 days), Employee shall receive the compensation payable under Section 3(a) of this Agreement plus any bonus compensation earned through the last day of such ninety (90) day period but not yet paid, less
any benefits received by him under any disability insurance carried by or provided by Employer. All rights of Employee under this Agreement (other than rights already accrued) shall terminate as provided below upon Employee’s permanent
disability (as defined below), although Employee shall continue to receive any disability benefits to which he may be entitled under any disability income insurance that may be carried by or provided by Employer from time to time; Employer hereby
agrees to provide such insurance on a same occupation basis. 
 (ii) The terms “permanently disabled” and
“permanent disability” as used in this Agreement shall mean that Employee is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period
of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under any long term disability plan maintained by Employer that covers Employee. In the absence of such a long term
disability plan, “permanently disabled” and “permanent disability” shall mean that Employee is unable to engage in any substantial gainful activity for a period of at least ninety (90) days in any one-year period by reason
of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months. In the event Employee becomes “permanently
disabled,” the Board may terminate Employee’s 

  
 5 

 
employment under this Agreement upon ten (10) days’ prior written notice. If any determination with respect to “permanent disability” is disputed by Employee, the parties
hereto agree to abide by the determination with respect to “permanent disability” of a panel of three physicians. Employee and the Board shall each appoint one member, and the third member of the panel shall be appointed by the other two
members. Employee agrees to make himself available for and submit to examinations by such physicians as may be directed by the Board. Failure to submit to any such examination shall constitute a breach of a material part of this Agreement. 

8. Other Terminations. 

(a) 
 (i) Employee
may terminate his employment hereunder for any reason whatsoever upon giving at least thirty (30) days’ prior written notice. In addition, Employee shall have the right to terminate his employment hereunder (a) at any time for
“good reason” or (b) on the conditions provided for in Sections 8(d)(i)(1), 8(d)(i)(2) or 8(d)(i)(3) of this Agreement following a Change in Control. As used herein, “good reason” means the occurrence of any of the
following: (1) the relocation of Employee’s office to a location outside the State of Texas, (2) Employee no longer holds the principal executive office held by Employee on the Commencement Date, or (3) a change in reporting
structure of Employer or Parent where Employee is required to report to someone holding a title or position different than the title or position of the person (or the Board in the case of the President and Chief Executive Officer) that Employee was
required to report to on the Commencement Date. 
 (ii) If Employee gives notice pursuant to the first sentence of
Section 8(a)(i) but not based on the second sentence of Section 8(a)(i) above, Employer shall have the right to relieve Employee, in whole or in part, of his duties under this Agreement (without reduction in compensation through the
termination date). 
 (iii) If Employee terminates his employment hereunder pursuant to clause (a) of the second
sentence of Section 8(a)(i) above, then (a) any and all options, rights or awards granted in conjunction with Parent’s or Employer’s incentive compensation and stock option plans (other than awards subject to performance criteria
(“Performance Awards”)) shall immediately vest and a “pro rata portion” of each Performance Award shall remain outstanding until the end of the applicable performance period (or, if earlier, until the occurrence of a Change in
Control) and shall vest or not based on the actual performance for the performance period or, if applicable, upon the Change in Control as provided in Section 8(d)(i), and (b) Employee shall continue to receive the salary, bonus and other
compensation and benefits specified in Section 3 for the remainder of the Initial Term or any then applicable Extension Period, in each case in the amount and kind and at the time provided for in Section 3 (provided, however, that if such
benefits are not available under Employer’s benefit plans or applicable law, Employer shall be responsible for the cost of providing equivalent benefits); provided that, bonuses for each calendar year until the termination of this
Agreement shall be paid based on the greater of (x) the amount equal to the total bonus paid for the last completed year for which 

  
 6 

 
bonuses have been paid or (y) the amount equal to the bonuses that would have been payable for the then current year (or, in the case of a date of termination of employment that occurs
between January 1 of any year and the date that bonuses are paid based on the previous year, such previous year), determined on a basis consistent with the last completed year for which bonuses have been paid but using the projected bonus
amounts for the then current year (or, in the case of a date of termination of this Agreement that occurs between January 1 of any year and the date that bonuses are paid based on the previous year, such previous year) determined by
extrapolating the information as of the date of termination of this Agreement based on the best information available at the time of the calculation; provided further that, notwithstanding the termination of this Agreement, Employee’s
covenants set forth in Sections 10 and 11 shall remain in full force and effect. If Employee shall violate any of the provisions of Sections 10 or 11 at any time prior to the termination of this Agreement, then, in addition to its other
rights and remedies, Employer shall have the right to terminate all further payments of compensation or benefits to Employee, and shall have no further obligation therefor. 

For purposes of this Agreement, the “pro rata portion” of a Performance Award shall be the amount calculated by multiplying the full
amount determined based on the Employer’s achievement of the performance criteria for the full performance period specified in the applicable award agreement between Employer and Employee by a fraction, the numerator of which is the number of
days of the performance period through Employee’s termination of employment and the denominator of which is the number of days of the performance period. 

For purposes of this Agreement, the term “Extension Period” shall mean the period from a Renewal Date to the day immediately
preceding the first anniversary of such Renewal Date. 
 (b) 

(i) Except as otherwise provided in this Agreement, Employer may terminate the employment of Employee hereunder only for
“good cause” (as defined below) and upon written notice. 
 (ii) As used herein, “good cause” shall mean:

 (1) Employee’s conviction of either a felony involving moral turpitude or any crime in connection with his employment
by Employer that causes Employer a substantial detriment, but specifically shall not include traffic offenses; 
 (2) actions
or inactions by Employee that clearly are contrary to the best interests of Employer; 
 (3) Employee’s willful failure
to take actions permitted by law and necessary to implement policies of the Board that the Board has communicated to him in writing, provided that such policies that are reflected in minutes of a Board meeting attended in its entirety by Employee
shall be deemed communicated to Employee; 

  
 7 

 (4) Employee’s continued failure to devote substantially his full business
time, energy and attention to his duties as an executive officer of Employer or its affiliates as contemplated in Section 5(a) above, following written notice from the Board to Employee of such failure; or 

(5) any condition that either resulted from Employee’s current substantial dependence on alcohol, or any narcotic drug or
other controlled or illegal substance. If any determination of substantial dependence is disputed by Employee, the parties hereto agree to abide by the decision of a panel of three physicians appointed in the manner specified in
Section 7(b)(ii) of this Agreement. 
 (6) With respect to (ii) through (v) above, such circumstances shall
not constitute “good cause” unless Employee has failed to cure such circumstances within ten (10) business days following written notice thereof from the Board identifying in reasonable detail the manner in which the Employer believes
that Employee has not performed such duties and indicating the steps Employer requires to cure such circumstances. 
 (iii)
Termination of the employment of Employee for reasons other than those expressly specified in this Agreement as good cause shall be deemed to be a termination of employment “without good cause.” 

(c) 
 (i) If
Employer shall terminate the employment of Employee without good cause effective on a date earlier than the end of the Initial Term or any then applicable Extension Period, Employee shall continue to receive the salary, bonus and other compensation
and benefits specified in Section 3 for the remainder of the Initial Term or any then applicable Extension Period, in each case in the amount and kind and at the time provided for in Section 3 (provided, however, that if such benefits are
not available under Employer’s benefit plans or applicable law, Employer shall be responsible for the cost of providing equivalent benefits); provided that, bonuses for each calendar year until the termination of employment shall be paid
based on the greater of (x) the amount equal to the total bonus paid for the last completed year for which bonuses have been paid or (y) the amount equal to the bonuses that would have been payable for the then current year (or, in the
case of a date of termination of employment that occurs between January 1 of any year and the date that bonuses are paid based on the previous year, such previous year), determined on a basis consistent with the last completed year for which
bonuses have been paid but using the projected bonus amounts for the then current year (or, in the case of a date of termination of employment that occurs between January 1 of any year and the date that bonuses are paid based on the previous
year, such previous year) determined by extrapolating the information as of the date of termination of employment based on the best information available at the time of the calculation; provided further that, notwithstanding such termination
of employment, Employee’s covenants set forth in Sections 10 and 11 shall remain in full force and effect. If Employee shall violate any of the provisions of Sections 10 or 11 at any time prior to the expiration of the Initial Term or
the applicable Extension Period, then, in addition to its other rights and remedies, Employer shall have the right to terminate all further payments of compensation or benefits to Employee, and shall have no further obligation therefor. 

  
 8 

 (ii) If Employer shall terminate the employment of Employee without good cause
effective on a date earlier than the end of the Initial Term or any then applicable Extension Period, any and all options, rights or awards granted in conjunction with Parent’s or Employer’s incentive compensation and stock option plans
(other than Performance Awards) shall immediately vest and a “pro rata portion” of each Performance Award shall remain outstanding until the end of the applicable performance period (or, if earlier, until the occurrence of a Change in
Control) and shall vest or not based on the actual performance for the performance period or, if applicable, upon the Change in Control as provided in Section 8(d)(i). 

(iii) The parties agree that, because there can be no exact measure of the damages that would occur to Employee as a result of
a termination by Employer of Employee’s employment without good cause, the payments and benefits paid and provided pursuant to Section 8 shall be deemed to constitute liquidated damages and not a penalty for Employer’s termination of
Employee’s employment without good cause, and Employer agrees that Employee shall not be required to mitigate his damages. 
 (d) 

(i) If a Change in Control (as defined in the MIP as in effect on the Commencement Date) of Parent shall occur, then any and
all options, rights or awards (including restricted stock awards and restricted stock unit awards) granted to Employee in conjunction with the Parent’s or Employer’s incentive compensation or equity incentive compensation plans shall be
deemed to have vested immediately prior to such Change in Control; provided that, with respect to the immediate vesting of any and all Performance Awards, such awards shall immediately vest if and to the extent determined by the Board at the
time of grant and set forth in the applicable award agreement between Employee and Employer. Further, if a Change in Control of Parent shall occur, and 

(1) Employee shall voluntarily terminate his employment following such Change in Control in the event that the Employer: 

(A) has after the Change in Control reduced Employee’s annual base salary or potential bonus level or any incentive
compensation or equity incentive compensation plan benefit (as in effect immediately before such Change in Control); 
 (B)
has relocated Employee’s office to a location that is more than 10 miles from the location in which Employee principally works for Employer or Parent immediately before such Change in Control; 

(C) has relocated the principal executive office of Parent, Employer or the office of Employer’s operating group for
which Employee performed the majority of his services for Employer during the year before the Change in Control to a location that is more than 10 miles from the location of such office immediately before such Change in Control; 

  
 9 

 (D) has required Employee, in order to perform duties of substantially equal
status to those duties Employee performed immediately before the Change in Control, to travel on Employer’s business to a substantially greater extent than is consistent with Employee’s travel obligations immediately before such Change in
Control; 
 (E) has failed to continue to provide Employee with benefits substantially equivalent to those enjoyed by
Employee under any of Employer’s life insurance, medical, health and accident or disability plans and incentive compensation or equity incentive compensation plans in which Employee was participating immediately before the Change in Control;

 (F) has taken any action that would directly or indirectly materially reduce any of such benefits or deprive Employee of
any material fringe benefit enjoyed by Employee immediately before the Change in Control; 
 (G) has failed to provide
Employee with at least the number of paid vacation days to which Employee is entitled on the basis of years of service under Employer’s normal vacation policy in effect immediately before the Change in Control giving credit for time served at
Employer or Parent; 
 (2) Employee shall voluntarily terminate his employment following such Change in Control in the event
that, as a result of the Change in Control and a change in circumstances thereafter significantly affecting his position other than those listed in Section 8(d)(i)(1) above, he no longer has the authorities, powers, functions or duties attached
to his position as an executive officer of Employer, Parent or any of their affiliates; 
 (3) Employee shall voluntarily
terminate his employment following such Change in Control, in the event that there has been a substantial diminution of his duties, responsibilities, status, title or position as an executive officer of Employer, Parent or any of their affiliates;
or 
 (4) Employee shall have his employment terminated by Employer for reasons other than those specified in
Section 8(b)(ii) following such Change in Control; 
 then in any of the above four cases, Employee shall be entitled to receive the
salary, bonus and other compensation and benefits specified in Section 8(a)(iii) for the periods specified in such section. 

  
 10 

 (ii) Employee acknowledges and agrees that the reorganization of Parent (the
“Reorganization”) pursuant to which this Agreement is entered into shall not be deemed a Change in Control (or phrase having a similar import) for purposes of this Agreement, the Prior Agreement or any other agreement, plan or arrangement
to which Employee is a party or in which Employee has any interest. 
 (e) If the employment of Employee is terminated for good cause under
Section 8(b)(ii) of this Agreement, or if Employee voluntarily terminates his employment by written notice to Employer under Section 8(a) of this Agreement without reliance on Section 8(d), Employer shall pay to Employee any
compensation earned but not paid to Employee prior to the effective date of such termination. Under such circumstances, such payment shall be in full and complete discharge of any and all liabilities or obligations of Employer to Employee hereunder,
and Employee shall be entitled to no further benefits under this Agreement. Employee must, however, still comply with the obligations set forth in Sections 10 and 11 of this Agreement. 

(f) Employer’s obligations to provide the compensation and benefits (the “Severance Benefits”) under Sections 8(a)(iii), 8(c) or
8(d), as applicable, shall be conditioned upon Employee having executed and delivered to Employer the release of claims substantially in the form attached hereto as Appendix C (the “Release”) and the period (if any) during which the
Release can be revoked having expired within the 45-day period following the Employee’s date of termination; provided, that, if such 45-day period spans two (2) calendar years, no Severance Benefits shall be paid or commenced to be paid
until the second year, with the first payment including any amount that would have been paid during such forty-five (45) day period but for this sentence being made promptly following such forty-five (45) day period. Employer and Employee
agree that, should Employer fail to provide the Severance Benefits to Employee, the Release shall be void ab initio. 
 9.
Inventions and Other Intellectual Property. Employee agrees that during the term of his employment by Employer, he will disclose to Employer (and no one else) all ideas, methods, plans, developments or improvements known by him which relate
directly or indirectly to the business of Employer, whether acquired by Employee before or during his employment by Employer. Nothing in this Section 9 shall be construed as requiring any such communication where the idea, plan, method or
development is lawfully protected from disclosure as a trade secret of a third party or by any other lawful prohibition against such communication. 

10. Confidential Information and Trade Secrets. 

(a) For purposes of this Agreement, the term “Forbes’s Business” shall mean any business in which the Company or any of its
subsidiaries are engaged, including, without limitation, the business of providing oilfield services relating to, among other things, fluid handling, well servicing and workovers, and tubing testing in the Restricted Area (as defined below). In this
business, Employer generates a tremendous volume of Confidential Information and Trade Secrets which it hereby agrees to share with Employee, and which Employee will have access to and knowledge of through or as a result of Employee’s
employment with the Employer. “Confidential Information and Trade Secrets” includes any information, data or compilation of information or data developed, acquired or generated by Employer, or its employees (including information and
materials conceived, originating, discovered, or developed in whole or in part by 

  
 11 

 
Employee at the request of or for the benefit of Employer or while employed by Employer), which is not generally known to persons who are not employees of Employer, and which Employer generally
does not share other than with its employees, or with its customers and suppliers on an individual transactional basis. “Confidential Information and Trade Secrets” may be written, verbal or recorded by electronic, magnetic or other
methods, whether or not expressly identified as “Confidential” by Employer. 
 (b) “Confidential Information and Trade
Secrets” includes, but is not limited to, the following information and materials: 
 (i) Financial information, of any
kind, pertaining to Employer, including, without limitation, information about the profit margins, profitability, income and expenses of Employer or any of its divisions or lines of business; 

(ii) Names and all other information about, and all communications received from, sent to or exchanged between, Employer and
any person or entity which has purchased, contracted, hired, chartered equipment, vessels, personnel or services, or otherwise entered into a transaction with Employer regarding Forbes’s Business, or to which Employer has made a proposal with
respect to Forbes’s Business (such person or entity being hereinafter referred to as “Customer” or “Customers”); 

(iii) Names and other information about Employer’s employees, including their experience, backgrounds, resumes,
compensation, sales or performance records or any other information about them; 
 (iv) Any and all information and records
relating to Employer’s contracts, transactions, charges, prices, or sales to its Customers, including invoices, proposals, confirmations, statements, accounting records, bids, payment records or any other information regarding transactions
between Employer and any of its Customers; 
 (v) All information about the employees, agents or representatives of Customers
who are involved in evaluating, providing information for, deciding upon, or committing to purchase, sell or otherwise enter into a transaction relating to Forbes’s Business (each such individual being hereinafter referred to as a
“Customer Representative”) including, without limitation, with respect to any such individual, his name, address, telephone and facsimile numbers, email addresses, titles, positions, duties, and all records of communications to, from or
with any such Customer Representative; 
 (vi) Any and all information or records relating to Employer’s contracts or
transaction with, or prices or purchases from any person or entity from which Employer has purchased or otherwise acquired goods or services of any kind used in connection with Forbes’s Business (each such person or entity being hereinafter
referred to as a “Supplier”), including invoices, proposals, confirmations, statements, accounting records, bids, payment records or any other information documents regarding amounts charged by or paid to suppliers for products or
services; 

  
 12 

 (vii) All information about the employees, agents or representatives of Suppliers
who are involved in evaluating, providing information for, deciding upon, or committing to purchase, sell or otherwise enter into a transaction relating to Forbes’s Business (each such individual being hereinafter referred to as “Supplier
Representative”) including, without limitation, with respect to any such individual, his name, address, telephone and facsimile numbers, email addresses, titles, positions, duties, and all records of communications to, from or with any such
Supplier Representative; 
 (viii) Employer’s marketing, business and strategic growth plans, methods of operation,
methods of doing business, cost and pricing data, and other compilations of information relating to the operations of Employer. 
 (c)
Employee acknowledges that all notes, data, forms, reference and training materials, leads, memoranda, computer programs, computer print-outs, disks and the information contained in any computer, and any other records which contain, reflect or
describe any Confidential Information and Trade Secrets, belong exclusively to Employer. Employee shall promptly return such materials and all copies thereof in Employee’s possession to Employer upon termination of his employment, regardless of
the reasons therefor (such date being hereinafter referred to as the “Termination Date”). 
 (d) During Employee’s employment
with Employer and thereafter, Employee will not copy, publish, convey, transfer, disclose or use, directly or indirectly, for Employee’s own benefit or for the benefit of any other person or entity (except Employer) any Confidential Information
and Trade Secrets. Employee’s obligation shall continue in full force and effect until the later of the final day of any period of non-competition or eighteen (18) months after the termination of Employer’s employment. Employee will
abide by all rules, guidelines, policies and procedures relating to Confidential Information and Trade Secrets implemented and/or amended from time to time by Employer. 

Employee acknowledges that any actual or threatened breach of the covenants contained herein will cause Employer irreparable harm and that
money damages would not provide an adequate remedy to Employer for any such breach. For these reasons, and because of the unique nature of the Confidential Information and Trade Secrets and the necessity to preserve such Confidential Information and
Trade Secrets in order to protect Employer’s property rights in the event of a breach or threatened breach of any of the provisions herein, Employer, in addition to any other remedies available to it at law or in equity, shall be entitled to
immediate injunctive relief against Employee to enforce the provisions of this Agreement and shall be entitled to recover from Employee its reasonable attorney’s fees and other expenses incurred in connection with such proceedings. 

Notwithstanding anything herein to the contrary, or in any agreement or communication between Employer and Employee, (a) the
confidentiality and nondisclosure obligations herein shall not prohibit or restrict Employee from initiating communications directly with, or responding to any inquiry from, or providing testimony before, the SEC, any other governmental agency, any
self-regulatory organization or any other state or federal regulatory authority, regarding any possible securities law violations, and (b) Employer shall not enforce or threaten to enforce, any confidentiality agreement or other similar
agreement, nor take or threaten to take any other action against Employee for engaging in the types of communications described in (a) above. 

  
 13 

 11. Noncompetition and Nonsolicitation. 

(a) During the term of Employee’s employment, Employer agrees to provide, and to continue to provide Employee, on a daily, weekly, monthly
and continual basis, access to, and the use of, its “Confidential Information and Trade Secrets” concerning Forbes’s Business, and Employer’s employees, Customers and Customer Representatives, Suppliers and Supplier
Representatives and Employer’s transactional histories with all of them, as well as information about the logistics, details, revenues and expenses of Forbes’s Business, in order to allow Employee to perform Employee’s duties under
this Agreement, and to develop or continue to solidify relationships with Customers, Customer Representatives, Suppliers and Supplier Representatives. Employee acknowledges that new and additional Confidential Information and Trade Secrets regarding
each of these matters is developed by Employer as a part of its continuing operations, and Employer hereby agrees to provide Employee access to and use of all such new, additional and continuing Confidential Information and Trade Secrets, and
Employee acknowledges that access to such new, additional and continuing Confidential Information and Trade Secrets is essential for Employee to be able to perform, and continue to perform, Employee’s duties under this Agreement. In addition,
Employer agrees to provide, and continue to provide, training, education, direction and development to Employee with respect to all of Employer’s business methods, processes, procedures, software and information, including newly developed and
newly discovered information, in order to ensure Employee can perform Employee’s duties hereunder and participate in Forbes’s business. 

(b) In consideration of Employer’s agreement to provide Employee with access to and use of its Confidential Information and Trade Secrets,
including new, additional and continuing Confidential Information and Trade Secrets, and to provide training, Employee agrees to refrain from competing with Employer, or otherwise engaging in Restricted Activities within the Restricted Area, each as
defined herein, during the Restricted Period. 
 (c) Restricted Period. Employee agrees that during the term of his employment with
Employer, and thereafter until the later of (i) the end of the Initial Term or any then applicable Extension Period and (ii) one (1) year following termination of Employee’s employment following a notice of non-renewal,
regardless of the date or cause of such termination of employment (the “Restricted Period”), and regardless of whether the termination of employment occurs with or without cause, and regardless of who terminates such employment, Employee
will not, directly or indirectly, engage in any of the Restricted Activities within the Restricted Area. 
 (d) Restricted Activities.
Restricted Activities shall mean and include all of the following: 
 (i) directly or indirectly, owning, managing,
operating, joining, controlling, being employed by, or participating in the ownership, management, operation or control of, or be connected in any manner with, including, without limitation, holding any position as an employee, officer, director,
agent, independent contractor, recruiter, consultant, partner, shareholder, investor, lender, underwriter or in any other individual or representative capacity in any person, entity or business that is engaged in Forbes’s Business (a
“Restricted Enterprise”). The restrictions of this section shall not be violated by (i) the ownership of no more than 5% of the outstanding securities of any company 

  
 14 

 
whose stock is publicly traded or (ii) following the termination of his employment with Employer, his employment by a certified public accounting firm or a commercial or investment bank that
may have as a client or customer: (A) a Competitor to Employer or (B) any of the clients or customers of Employer with whom Employer did business during the term of Employee’s employment, so long as Employee does not directly or
indirectly serve, advise or consult in any way such Competitor to Employer or client or customer of Employer, respectively, during the Restricted Period. 

(ii) Recruiting, hiring or attempting to recruit or hire, either directly or by assisting others, any other employee of
Employer, or any of its customers or suppliers in connection with Forbes’s Business. For purposes of this covenant, “any other employee” shall include employees, consultants, independent contractors or others who are still actively
employed by, or doing business with, Employer, its Customers or Suppliers, at the time of the attempted recruiting or hiring, or were so employed or doing business at any time within six months prior to the date of such attempted recruiting or
hiring; 
 (iii) Communicating, by any means, soliciting or offering to solicit the purchase, performance, sale, furnishing,
or providing of any equipment, services, or product which constitute any part of Forbes’s Business to, for or with any Customer, Customer Representative, Supplier or Supplier Representative; and 

(iv) Using, disclosing, publishing, copying, distributing or communicating any Confidential Information and Trade Secrets to or
for the use or benefit of Employee or any other person or entity other than Employer. 
 (e) Permitted Activities. Subject to
Section 5(a) and Section 11, no provision of this Agreement shall prohibit (i) Employee’s continued officer positions, board memberships and service with board committees and/or investments in the entities listed on Schedule 1
attached hereto (the “Scheduled Entities”) provided that (A) the Employee’s role or amount of time spent with respect to any of the Scheduled Entities does not expand or increase from that in effect on December 1, 2016 and
(B) the nature and scope of the services and/or products provided by the Scheduled Entities does not change from that in effect on December 1, 2016 or (ii) such other activities as may be approved by the Board at any time after the
Commencement Date (collectively, the “Permitted Activities”). 
 (f) Restricted Area. The Restricted Area shall mean and
include anywhere in the continental United States. 
 (g) Agreement Ancillary to Other Agreements. This covenant not to compete is
ancillary to and part of other agreements between Employer and Employee, including, without limitation, Employer’s agreement to disclose, and continue to disclose, its Confidential Information and Trade Secrets, and its agreement to provide,
and continue to provide, training, education and development to Employee. 

  
 15 

 (h) Independent Agreements. The parties hereto agree that the foregoing restrictive
covenants set forth herein are essential elements of this Agreement, and that, but for the agreement of Employee to comply with such covenants, Employer would not have agreed to enter into this Agreement. Such covenants by Employee shall be
construed as agreements independent of any other provision in this Agreement. The existence of any claim or cause of action of Employee against Employer, whether predicated on this Agreement, or otherwise, shall not constitute a defense to the
enforcement by Employer of such covenants. 
 (i) Equitable Reformation. The parties hereto agree that if any portion of the covenants
set forth herein are held to be illegal, invalid, unreasonable, arbitrary or against public policy, then such portion of such covenants shall be considered divisible both as to time and geographical area. Employer and Employee agree that, if any
court of competent jurisdiction determines the specified time period or the specified geographical area applicable herein to be illegal, invalid, unreasonable, arbitrary or against public policy, a lesser time period or geographical area which is
determined to be reasonable, non-arbitrary and not illegal or against public policy may be enforced against Employee. Employer and Employee agree that the foregoing covenants are appropriate and reasonable when considered in light of the nature and
extent of the business conducted by Employer and the Confidential Information and Trade Secrets and training provided by Employer to Employee. 

12. Injunctive Relief. Employee agrees that damages at law will be an insufficient remedy to Employer if Employee violates or attempts
or threatens to violate the terms of Sections 9, 10 or 11 of this Agreement and that Employer would suffer irreparable damage as a result of such violation or attempted or threatened violation. Accordingly, it is agreed that Employer shall be
entitled, upon application to a court of competent jurisdiction, to obtain injunctive relief to enforce the provisions of such Sections, which injunctive relief shall be in addition to any other rights or remedies available to Employer, at law or in
equity. In the event either party commences legal action relating to the enforcement of the terms of Sections 9, 10 or 11 of this Agreement, the prevailing party in such action shall be entitled to recover from the other party all of the costs
and expenses in connection therewith, including reasonable fees and disbursements of counsel (both at trial and in appellate proceedings). 

13. Compliance with Other Agreements. Employee represents and warrants that the execution of this Agreement by him and his performance
of his obligations hereunder will not conflict with, result in the breach of any provision of or the termination of or constitute a default under any agreement to which Employee is a party or by which Employee is or may be bound. 

14. Waiver of Breach. The waiver by Employer of a breach of any of the provisions of this Agreement by Employee shall not be construed
as a waiver of any subsequent breach by Employee. 
 15. Binding Effect; Assignment. 

(a) Employer is a subsidiary of Forbes Energy Services Ltd. (the Parent), and Forbes’s Business, as defined in Section 10, is carried
on by, and the Confidential Information and Trade Secrets as defined in Section 10 has been, and will continue to be, developed by Employer, Parent and each of Parent’s or Employer’s subsidiaries and affiliates, all of which shall be
included within the meaning of the word “Employer” as that term is used in Sections 9, 10, 11 and 12 of this Agreement. This Agreement shall inure to the benefit of, and be enforceable by, Employer, Parent, and each of the
subsidiaries and affiliates included within the definition of the word “Employer” as used in Sections 9, 10, 11 and 12. 

  
 16 

 (b) The rights and obligations of Employer under this Agreement shall inure to the benefit of and
shall be binding upon the successors and assigns of Employer. This Agreement is a personal employment contract and the rights, obligations and interests of Employee hereunder may not be sold, assigned, transferred, pledged or hypothecated. 

16. Indemnification. Employee shall be entitled throughout the term of this Agreement and thereafter to indemnification by Parent and
Employer in respect of any actions or omissions as an employee, officer or director of Parent, Employer (or any successor thereof) to the fullest extent permitted by law. The parties acknowledge that Employee is also entitled to the benefits of a
separate Indemnification Agreement between Employee and Parent and that this section shall be read as complimentary with and not in conflict with or substitution for such Indemnification Agreement. Parent and Employer also agree to obtain directors
and officers (D&O) insurance in a reasonable amount determined by the Board and to maintain such insurance during the term of this Agreement (as such Agreement may be extended from time to time) and for a period of twelve (12) months
following the termination of this Agreement, as so extended. 
 17. Entire Agreement. This Agreement (including
Appendix “A” and Appendix “B”, as either may be amended from time to time) contains the entire agreement and supersedes all prior agreements and understandings, oral or written, with respect to the subject matter
hereof, including without limitation the Existing Employment Agreement. This Agreement may be changed only by an agreement in writing signed by the party against whom any waiver, change, amendment, modification or discharge is sought. 

18. Construction and Interpretation. 

(a) The Board shall have the sole and absolute discretion to construe and interpret the terms of this Agreement, unless another individual or
entity is charged with such responsibility. 
 (b) This Agreement shall be construed pursuant to and governed by the laws of the State of
Texas (but any provision of Texas law shall not apply if the application of such provision would result in the application of the law of a state or jurisdiction other than Texas). 

(c) The headings of the various sections in this Agreement are inserted for convenience of the parties and shall not affect the meaning,
construction or interpretation of this Agreement. 
 (d) Consistent with Section 11(i), the following sentences of this
Section 18(d) shall apply. Any provision of this Agreement that is determined by a court of competent jurisdiction to be prohibited, unenforceable or not authorized in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such prohibition, unenforceability or non-authorization without invalidating the remaining provisions hereof or affecting the validity, enforceability or legality of such provision in any other
jurisdiction. In any such case, such determination shall not affect any other provision of this Agreement, and the remaining provisions of this Agreement shall remain in full force and effect. If any provision or term of this Agreement is
susceptible to two or more constructions or interpretations, one or more of which would render the provision or term void or unenforceable, the parties agree that a construction or interpretation that renders the term or provision valid shall be
favored. 

  
 17 

 (e) This Agreement shall be construed to the extent necessary to comply with the provisions of
Section 409A of the Code and any Treasury Regulations and other guidance issued thereunder 
 19. Notice. All notices that are
required or may be given under this Agreement shall be in writing and shall be deemed to have been duly given when received if personally delivered; when transmitted if transmitted by telecopy or similar electronic transmission method; one working
day after it is sent, if sent by recognized expedited delivery service; and five days after it is sent, if mailed, first class mail, certified mail, return receipt requested, with postage prepaid. In each case notice shall be sent to: 

 

					
	To Employer:	  	Forbes Energy Services LLC	  	
		  	Attention: John E. Crisp, President and Chief Executive Officer	  	
		  	3000 South Business Highway 281	  	
		  	Alice, Texas 78332	  	
		  	Fax: (713) 481-8344	  	
			
	To Employee:	  	John E. Crisp	  	
		  	588 County Road 101	  	
		  	George West, Texas 78022	  	

 20. Venue; Process. The parties agree that all obligations payable and performable under this Agreement
are payable and performable at the offices of Employer in Alice, Jim Wells County, Texas. The parties to this Agreement agree that jurisdiction and venue in any action brought pursuant to this Agreement to enforce its terms or otherwise with respect
to the relationships between the parties shall properly lie in the Judicial District Court for Jim Wells County or in the United States District Court for the Southern District of Texas, Corpus Christi Division, Corpus Christi Office. 

21. Six-Month Delay. Notwithstanding any provision of this Agreement to the contrary, if, at the time of Employee’s termination of
employment with Employer, he is a “specified employee” as defined in Section 409A of the Code, and one or more of the payments or benefits received or to be received by Employee pursuant to this Agreement would constitute deferred
compensation subject to Section 409A of the Code, no such payment or benefit will be provided under this Agreement until the earlier of (a) the date that is six (6) months following Employee’s termination of employment with
Employer, or (b) the Employee’s death. The provisions of this Section 21 shall only apply to the extent required to avoid Employee’s incurrence of any penalty tax or interest under Section 409A of the Code or any Treasury
Regulations and other guidance issued thereunder 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 18 

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

			
	EMPLOYER:
	
	FORBES ENERGY SERVICES LLC
		
	By:	 	/s/ L. Melvin Cooper
	L. Melvin Cooper
	Senior Vice President and Chief Financial Officer
	
	EMPLOYEE:
	
	 /s/ John E. Crisp

	 John E. Crisp

 ACKNOWLEDGED AND AGREED TO FOR 

PURPOSES OF GUARANTEEING THE 
 FINANCIAL OBLIGATIONS OF
EMPLOYER 
 TO EMPLOYEE: 
 FORBES ENERGY SERVICES
LTD. 

			
		
	By:	 	/s/ L. Melvin Cooper
	L. Melvin Cooper
	Senior Vice President and Chief Financial Officer

 Signature Page – Employment Agreement 

 APPENDIX A 

[TBD] 

 APPENDIX B 

[TBD] 

 APPENDIX C 

YOU SHOULD CONSULT WITH AN ATTORNEY
BEFORE SIGNING THIS RELEASE OF CLAIMS. 

RELEASE 
 1. In
consideration of the payments and benefits to be made under the Employment Agreement, dated as of April 13, 2017 (the “Employment Agreement”), by and between John E. Crisp (the “Employee”) and Forbes Energy
Services LLC (the “Employer”) (each of the Employee and the Employer, a “Party” and collectively, the “Parties”), the sufficiency of which the Employee acknowledges, the Employee, with the intention
of binding the Employee and the Employee’s heirs, executors, administrators and assigns, does hereby release, remise, acquit and forever discharge the Employer and each of its subsidiaries and affiliates (the “Employer Affiliated
Group”), their present and former officers, directors, Employees, shareholders, agents, attorneys, employees and employee benefit plans (and the fiduciaries thereof), and the successors, predecessors and assigns of each of the foregoing
(collectively, the “Employer Released Parties”), of and from any and all claims, actions, causes of action, complaints, charges, demands, rights, damages, debts, sums of money, accounts, financial obligations, suits, expenses,
attorneys’ fees and liabilities of whatever kind or nature in law, equity or otherwise, whether accrued, absolute, contingent, unliquidated or otherwise and whether now known or unknown, suspected or unsuspected, which the Employee,
individually or as a member of a class, now has, owns or holds, or has at any time heretofore had, owned or held, arising on or prior to the date hereof, against any Employer Released Party that arises out of, or relates to, the Employment
Agreement, the Employee’s employment with the Employer or any of its subsidiaries and affiliates, or any termination of such employment, including claims (i) for severance or vacation benefits, unpaid wages, salary or incentive payments,
(ii) for breach of contract, wrongful discharge, impairment of economic opportunity, defamation, intentional infliction of emotional harm or other tort, (iii) for any violation of applicable state and local labor and employment laws
(including, without limitation, all laws concerning unlawful and unfair labor and employment practices) and (iv) for employment discrimination under any applicable federal, state or local statute, provision, order or regulation, and including,
without limitation, any claim under Title VII of the Civil Rights Act of 1964 (“Title VII”), the Civil Rights Act of 1988, the Fair Labor Standards Act, the Americans with Disabilities Act (“ADA”), the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”), the Age Discrimination in Employment Act (“ADEA”), and any similar or analogous state statute, excepting only: 

 

	 	A.	rights and entitlements Employee may have under the Employment Agreement, including any payments that are due to be made subject to execution and delivery of this Release; 

 

	 	B.	rights Employee may have under the Company’s Management Incentive Plan and any awards granted to Employee thereunder; 

  

	 	C.	claims for benefits under any health, disability, retirement, life insurance or other, similar employee benefit plan (within the meaning of Section 3(3) of ERISA) of the Employer Affiliated Group; and

	 	D.	rights to indemnification the Employee has or may have under the by-laws or certificate of incorporation of any member of the Employer Affiliated Group or as an insured under any director’s and officer’s
liability insurance policy now or previously in force; 

 2. The Employee acknowledges and agrees that this Release is not to
be construed in any way as an admission of any liability whatsoever by any Employer Released Party, any such liability being expressly denied. 

3. This Release applies to any relief no matter how called, including, without limitation, wages, back pay, front pay, compensatory damages,
liquidated damages, punitive damages, damages for pain or suffering, costs, and attorneys’ fees and expenses. 
 4. The Employee
specifically acknowledges that the Employee’s acceptance of the terms of this Release is, among other things, a specific waiver of the Employee’s rights, claims and causes of action under Title VII, ADEA, ADA and any state or local law or
regulation in respect of discrimination of any kind; provided, however, that nothing herein shall be deemed, nor does anything contained herein purport, to be a waiver of any right or claim or cause of action which by law the Employee
is not permitted to waive. 
 5. The Employee acknowledges that the Employee has been given a period of forty-five (45) days to consider
whether to execute this Release. If the Employee accepts the terms hereof and executes this Release, the Employee may thereafter, for a period of seven (7) days following (and not including) the date of execution, revoke this Release. If no
such revocation occurs, this Release shall become irrevocable in its entirety, and binding and enforceable against the Employee, on the day next following the day on which the foregoing seven-day period has elapsed. If such a revocation occurs, the
Employee shall irrevocably forfeit any right to payment of the Severance Benefits (as defined in the Employment Agreement), but the remainder of the Employment Agreement shall continue in full force. 

6. The Employee acknowledges and agrees that the Employee has not, with respect to any transaction or state of facts existing prior to the date
hereof, filed any complaints, charges or lawsuits against any Employer Released Party with any governmental agency, court or tribunal. 
 7.
The Employee acknowledges that the Employee has been advised to seek, and has had the opportunity to seek, the advice and assistance of an attorney with regard to this Release, and has been given a sufficient period within which to consider this
Release. 
 8. The Employee acknowledges that this Release relates only to claims that exist as of the date of this Release. 

9. The Employee acknowledges that the Severance Benefits the Employee is receiving in connection with this Release and the Employee’s
obligations under this Release are in addition to anything of value to which the Employee is entitled from the Employer. 
 10. Each
provision hereof is severable from this Release, and if one or more provisions hereof are declared invalid, the remaining provisions shall nevertheless remain in full force and effect. If any provision of this Release is so broad, in scope, or
duration or otherwise, as to be unenforceable, such provision shall be interpreted to be only so broad as is enforceable. 

 11. This Release constitutes the complete agreement of the Parties in respect of the subject
matter hereof and shall supersede all prior agreements between the Parties in respect of the subject matter hereof except to the extent set forth herein. For the avoidance of doubt, however, nothing in this Release shall constitute a waiver of any
Employer Released Party’s right to enforce any obligations of the Employee under the Employment Agreement that survive the Employment Agreement’s termination, including without limitation, any non-competition covenant, non-solicitation
covenant or any other restrictive covenants contained therein. 
 12. The failure to enforce at any time any of the provisions of this
Release or to require at any time performance by another party of any of the provisions hereof shall in no way be construed to be a waiver of such provisions or to affect the validity of this Release, or any part hereof, or the right of any party
thereafter to enforce each and every such provision in accordance with the terms of this Release. 
 13. Notwithstanding anything to the
contrary herein, this Release shall be void ab initio if Employer fails to provide the Severance Benefits (as defined in the Employment Agreement) to Employee. 

14. This Release may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together shall
constitute one and the same instrument. Signatures delivered by facsimile shall be deemed effective for all purposes. 
 15. This Release
shall be binding upon any and all successors and assigns of the Employee and the Employer. 
 16. Except for issues or matters as to which
federal law is applicable, this Release shall be governed by and construed and enforced in accordance with the laws of the State of Texas without giving effect to the conflicts of law principles thereof. 

[signature page follows] 

 IN WITNESS WHEREOF, this Release has been signed of
            , 20    . 
  

	
	 
	  

	 John E. Crisp

 SCHEDULE 1 

PERMITTED ACTIVITIES 
  

	1.	Board member and investor in Texas Champion Bank 

  

	2.	Board member and investor in Brush Country Bank 

  

	3.	Investment in JRC Gauges, LLC 

  

	4.	Investment in Texas Quality Gate Guard Services, LLC 

  

	5.	Investment in Texas Quality Matt, LLC. 

  

	6.	Investment in Alice Environmental Holdings, LLC 

  

	7.	Investment in Alice Environmental Services, LP 

  

	8.	Investment in Alice Environmental West Texas, LLC 

  

	9.	Investment in FCJ Management, LLC 

  

	10.	Investment in CJW Group, LLC 

  

	11.	Investment in SB Factoring LLC 

  

	12.	Investment in Echelon Realty Investments, LLC 

 The average amount of time per month spent on the Permitted
Activities by Employee is ten (10) hours.

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