Document:

Exhibit 4.1

  

 

KITOV PHARMACEUTICALS HOLDINGS LTD.

 

 

 

 

The Bank of New York Mellon

Depositary Receipts

101 Barclay Street

New York, New York 10286

 

Ladies and Gentlemen:

 

This letter shall serve as an amendment
(the “Amendment”) to that certain Warrant Agent Agreement, dated November 25, 2015 (the "Agreement")
between Kitov Pharmaceuticals Holdings Ltd., a company incorporated under the laws of the State of Israel (the "Company"),
and The Bank of New York Mellon (the "Warrant Agent"). Words used but not defined in this letter that are defined
in the Agreement have the meanings assigned to them in the Agreement.

 

The Company is engaged in a subsequent public
offering (the "Offering") of Units consisting of ADSs and Warrants. Notwithstanding anything to the contrary in
the Agreement, the Company may instruct the Warrant Agent to issue additional Warrants in connection with the Offering.

 

The Company and the Warrant Agent hereby
mutually agree to the following amendments to the Agreement:

 

		1.	Section 3.3.1(b) of the Agreement shall be amended and replaced in its entirety with the following:

 

“(b) If any of (i) the Warrants,
(ii) the Election to Purchase, or (iii) the Deposit Amount therefor (and, if applicable, any taxes or charges due in connection
with the exercise of such Warrants), is received by the Warrant Agent on any date after 5:00 P.M., New York City time, or on a
date that is not a Trading Day, the Warrants with respect thereto will be deemed to have been received and exercised on the Trading
Day next succeeding such date. “Business day” means a day other than a Saturday or Sunday on which commercial Banks
in New York City are open for the general conduct of banking business. The “Exercise Date” will be the date on which
the materials in clauses (i) and (ii) of the foregoing sentence are received by the Warrant Agent (if by 5:00 P.M., New York City
time), or the following Trading Day (if after 5:00 P.M., New York City time), regardless of any earlier date written on the materials.
If the Warrants are received or deemed to be received after the Expiration Date, the exercise thereof will be null and void and
any funds delivered to the Warrant Agent will be returned to the Holder or Participant, as the case may be, as soon as practicable.
In no event will interest accrue on any funds deposited with the Warrant Agent in respect of an exercise or attempted exercise
of Warrants.”

 

     

     

    

 

		2.	Section 3.3.2(b) of the Agreement shall be amended and replaced in its entirety with the following:

 

“(b) The Company shall, by
no later than 5:00 P.M., New York City time, on the third Trading Day following the Exercise Date of any Warrant provided that
the funds in payment of the Exercise Price have cleared into the Company’s bank account at least one Trading Day prior thereto
(such date and time, the “Delivery Time”), cause its registrar to deliver the Warrant Shares issuable upon
that exercise to the Depositary’s Israeli custodian for deposit under the Deposit Agreement and instruct the Depositary
to deliver the Warrant ADSs issuable upon that deposit of Warrant Shares as requested in the Election to Purchase.”

 

		3.	Section 3.3.9 of the Agreement shall be amended and replaced in its entirety with the following:

 

“3.3.9 Share Delivery Failure.
In addition to any other rights available to the Holder, if the Company fails to cause the Depositary to deliver the Warrant ADSs
to the Holder pursuant to Section 3.3.2 on or before 5:00 p.m. (New York City time) after the Delivery Time (the “Share
Delivery Deadline”), and if after such date the beneficial owner is required by its broker to purchase (in an open market
transaction or otherwise) or the beneficial owner’s brokerage firm otherwise purchases, ADSs or Ordinary Shares to deliver
in satisfaction of a sale by the beneficial owner of the Warrant ADSs, which the beneficial owner anticipated receiving upon such
exercise (a “Buy-In”), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x)
the beneficial owner’s total purchase price (including brokerage commissions, if any) for the Warrant ADSs or Warrant Shares
so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant ADSs or Warrant Shares, as applicable, that
the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell
order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of
the Warrant and equivalent number of Warrant ADSs or Warrant Shares, as applicable, for which such exercise was not honored (in
which case such exercise shall be deemed rescinded) or deliver to the Holder the number of Warrant ADSs or Warrant Shares, as applicable,
that would have been issued had the Company timely complied with its delivery obligations. For example, if the beneficial owner
purchases Ordinary Shares having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of Warrant
ADSs with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding
sentence, the Company shall be required to pay the Holder $1,000 for the benefit of the beneficial owner. The Holder shall provide
the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company,
evidence of the amount of such loss. In addition, if the Company fails for any reason to deliver to the Holder the Warrant ADSs
pursuant to Section 3.3.2 by the Share Delivery Deadline, the Company shall pay to the Holder, in cash, as liquidated damages and
not as a penalty, for each $1,000 of Warrant ADSs subject to such exercise (based on the VWAP of the ADSs on the date of the applicable
Exercise Date), $10 per Trading Day (increasing to $20 per Trading Day on the fifth Trading Day after such liquidated damages begin
to accrue) for each Trading Day after such Share Delivery Deadline until such Warrant ADSs are delivered or Holder rescinds such
exercise. Nothing herein shall limit right of a Holder to pursue any other remedies available to it hereunder, at law or in equity
including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure
to timely deliver Warrant ADSs upon exercise of Warrants as required pursuant to the terms hereof.”

 

     

     

    

 

Except as modified
by this Amendment, the terms, provisions and requirements of the Agreement shall remain the same and in full force and effect in
accordance with the terms and provisions thereof.

 

If the foregoing is
in accordance with your understanding, please countersign and return a copy of this letter, whereupon this letter will constitute
an agreement between the Company and the Warrant Agent as of the date first written above.

 

 

 

Very truly yours,

 

KITOV PHARMACEUTICALS HOLDINGS
LTD.

 

 

By: ___________________________

      Name:

      Title:

 

Acknowledged and agreed:

 

the
bank of new york mellon

 

 

By: ________________________________

       Name:

       Title:EX-4.17

 Exhibit 4.17 

 
 

 
  
 REX ENERGY CORPORATION 2016

 LONG-TERM INCENTIVE PLAN 
  

EFFECTIVE MAY 27, 2016 

 TABLE OF CONTENTS 

 

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

  
 A-i

									
	 2.38
	 		 	 “Period of Restriction”
	  	 	A-4	  
	 2.39
	 		 	 “Plan”
	  	 	A-4	  
	 2.40
	 		 	 “Predecessor Plan”
	  	 	A-4	  
	 2.41
	 		 	 “Restricted Stock”
	  	 	A-4	  
	 2.42
	 		 	 “Restricted Stock Award”
	  	 	A-5	  
	 2.43
	 		 	 “RSU”
	  	 	A-5	  
	 2.44
	 		 	 “RSU Award”
	  	 	A-5	  
	 2.45
	 		 	 “SAR”
	  	 	A-5	  
	 2.46
	 		 	 “Section 162(m)”
	  	 	A-5	  
	 2.47
	 		 	 “Section 409A”
	  	 	A-5	  
	 2.48
	 		 	 “Separation from Service” and “Separate from Service”
	  	 	A-5	  
	 2.49
	 		 	 “Specified Employee”
	  	 	A-5	  
	 2.50
	 		 	 “Stock”
	  	 	A-5	  
	 2.51
	 		 	 “Substantial Risk of Forfeiture”
	  	 	A-5	  
	 2.52
	 		 	 “Tandem SAR”
	  	 	A-5	  
	 2.53
	 		 	 “Ten Percent Stockholder”
	  	 	A-5	  
	 2.54
	 		 	 “Termination of Employment”
	  	 	A-6	  
	 2.55
	 		 	 “Third Party Service Provider”
	  	 	A-6	  
	 ARTICLE III ELIGIBILITY
	  	 	A-6	  
	 ARTICLE IV GENERAL PROVISIONS RELATING TO AWARDS
	  	 	A-6	  
	 4.1
	 		 	 Authority to Grant Awards
	  	 	A-6	  
	 4.2
	 		 	 Dedicated Shares; Maximum Awards
	  	 	A-6	  
	 4.3
	 		 	 Non-Transferability
	  	 	A-7	  
	 4.4
	 		 	 Requirements of Law
	  	 	A-8	  
	 4.5
	 		 	 Changes in the Company’s Capital Structure
	  	 	A-8	  
	 4.6
	 		 	 Election Under Section 83(b) of the Code
	  	 	A-10	  
	 4.7
	 		 	 Forfeiture for Cause
	  	 	A-10	  
	 4.8
	 		 	 Forfeiture Events
	  	 	A-10	  
	 4.9
	 		 	 Award Agreements
	  	 	A-11	  
	 4.10
	 		 	 Amendments of Awards
	  	 	A-11	  
	 4.11
	 		 	 Rights as Stockholder
	  	 	A-11	  
	 4.12
	 		 	 Issuance of Shares of Stock
	  	 	A-11	  
	 4.13
	 		 	 Restrictions on Stock Received
	  	 	A-11	  
	 4.14
	 		 	 Predecessor Plan
	  	 	A-11	  
	 4.15
	 		 	 Certain Terminations of Employment, Hardship and Approved Leaves of Absence
	  	 	A-11	  
	 ARTICLE V OPTIONS
	  	 	A-12	  
	 5.1
	 		 	 Authority to Grant Options
	  	 	A-12	  
	 5.2
	 		 	 Option Agreement
	  	 	A-12	  
	 5.3
	 		 	 Option Price
	  	 	A-12	  
	 5.4
	 		 	 Duration of Option
	  	 	A-12	  
	 5.5
	 		 	 Amount Exercisable
	  	 	A-12	  
	 5.6
	 		 	 Exercise of Option
	  	 	A-12	  

  
 A-ii

									
	 5.7
	 		 	 Notification of Disqualifying Disposition
	  	 	A-13	  
	 5.8
	 		 	 $100,000 Limitation on ISOs
	  	 	A-13	  
	 5.9
	 		 	 Transferability – Incentive Stock Options
	  	 	A-13	  
	 ARTICLE VI STOCK APPRECIATION RIGHTS
	  	 	A-13	  
	 6.1
	 		 	 Authority to Grant SAR Awards
	  	 	A-13	  
	 6.2
	 		 	 General Terms
	  	 	A-13	  
	 6.3
	 		 	 SAR Agreement
	  	 	A-13	  
	 6.4
	 		 	 Term of SAR
	  	 	A-14	  
	 6.5
	 		 	 Exercise of SAR
	  	 	A-14	  
	 6.6
	 		 	 Payment of SAR Amount
	  	 	A-14	  
	 6.7
	 		 	 Termination of Employment
	  	 	A-14	  
	 ARTICLE VII RESTRICTED STOCK AWARDS
	  	 	A-14	  
	 7.1
	 		 	 Restricted Stock Awards
	  	 	A-14	  
	 7.2
	 		 	 Restricted Stock Award Agreement
	  	 	A-14	  
	 7.3
	 		 	 Holder’s Rights as Stockholder
	  	 	A-15	  
	 ARTICLE VIII RESTRICTED STOCK UNIT AWARDS
	  	 	A-15	  
	 8.1
	 		 	 Authority to Grant RSU Awards
	  	 	A-15	  
	 8.2
	 		 	 RSU Award
	  	 	A-15	  
	 8.3
	 		 	 RSU Award Agreement
	  	 	A-15	  
	 8.4
	 		 	 Form of Payment Under RSU Award
	  	 	A-15	  
	 8.5
	 		 	 Time of Payment Under RSU Award
	  	 	A-15	  
	 ARTICLE IX PERFORMANCE STOCK AWARDS AND PERFORMANCE UNIT AWARDS
	  	 	A-16	  
	 9.1
	 		 	 Authority to Grant Performance Stock Awards and Performance Unit Awards
	  	 	A-16	  
	 9.2
	 		 	 Performance Goals
	  	 	A-16	  
	 9.3
	 		 	 Time of Establishment of Performance Goals
	  	 	A-17	  
	 9.4
	 		 	 Written Agreement
	  	 	A-17	  
	 9.5
	 		 	 Form of Payment Under Performance Unit Award
	  	 	A-17	  
	 9.6
	 		 	 Time of Payment Under Performance Unit Award
	  	 	A-17	  
	 9.7
	 		 	 Holder’s Rights as Stockholder With Respect to a Performance Stock Award
	  	 	A-17	  
	 9.8
	 		 	 Increases Prohibited
	  	 	A-17	  
	 ARTICLE X DEFERRED SHARES
	  	 	A-18	  
	 10.1
	 		 	 Deferred Compensation
	  	 	A-18	  
	 10.2
	 		 	 Consideration
	  	 	A-18	  
	 10.3
	 		 	 Deferral Period
	  	 	A-18	  
	 10.4
	 		 	 Dividend Equivalents and Other Ownership Rights
	  	 	A-18	  
	 10.5
	 		 	 Performance Objectives
	  	 	A-18	  
	 10.6
	 		 	 Award Agreement
	  	 	A-18	  
	 ARTICLE XI DIVIDEND EQUIVALENTS
	  	 	A-18	  
	 ARTICLE XII ANNUAL INCENTIVE AWARDS
	  	 	A-19	  
	 12.1
	 		 	 Authority to Grant Annual Incentive Awards
	  	 	A-19	  
	 12.2
	 		 	 Performance Goals
	  	 	A-19	  
	 12.3
	 		 	 Time of Establishment of Performance Goals
	  	 	A-20	  

  
 A-iii

									
	 12.4
	 		 	 Written Agreement
	  	 	A-20	  
	 12.5
	 		 	 Form of Payment Under Annual Incentive Award
	  	 	A-20	  
	 12.6
	 		 	 Time of Payment Under Annual Incentive Award
	  	 	A-20	  
	 12.7
	 		 	 Increases Prohibited
	  	 	A-20	  
	 ARTICLE XIII OTHER STOCK-BASED AWARDS
	  	 	A-20	  
	 13.1
	 		 	 Authority to Grant Other Stock-Based Awards
	  	 	A-20	  
	 13.2
	 		 	 Value of Other Stock-Based Award
	  	 	A-20	  
	 13.3
	 		 	 Payment of Other Stock-Based Award
	  	 	A-20	  
	 13.4
	 		 	 Termination of Employment
	  	 	A-20	  
	 ARTICLE XIV CASH-BASED AWARDS
	  	 	A-21	  
	 14.1
	 		 	 Authority to Grant Cash-Based Awards
	  	 	A-21	  
	 14.2
	 		 	 Value of Cash-Based Award
	  	 	A-21	  
	 14.3
	 		 	 Payment of Cash-Based Award
	  	 	A-21	  
	 14.4
	 		 	 Termination of Employment
	  	 	A-21	  
	 ARTICLE XV SUBSTITUTION AWARDS
	  	 	A-21	  
	 ARTICLE XVI CHANGE IN CONTROL OF THE COMPANY
	  	 	A-21	  
	 16.1
	 		 	Change in Control of the Company	  	 	A-21	  
	 ARTICLE XVII ADMINISTRATION
	  	 	A-23	  
	 17.1
	 		 	Awards	  	 	A-23	  
	 17.2
	 		 	Authority of the Committee	  	 	A-23	  
	 17.3
	 		 	Decisions Binding	  	 	A-24	  
	 17.4
	 		 	No Liability	  	 	A-24	  
	 ARTICLE XVIII AMENDMENT OR TERMINATION OF PLAN
	  	 	A-24	  
	 18.1
	 		 	Amendment, Modification, Suspension, and Termination	  	 	A-24	  
	 18.2
	 		 	Awards Previously Granted	  	 	A-24	  
	 ARTICLE XIX MISCELLANEOUS
	  	 	A-24	  
	 19.1
	 		 	Unfunded Plan/No Establishment of a Trust Fund	  	 	A-24	  
	 19.2
	 		 	No Employment Obligation	  	 	A-25	  
	 19.3
	 		 	Tax Withholding	  	 	A-25	  
	 19.4
	 		 	Gender and Number	  	 	A-25	  
	 19.5
	 		 	Severability	  	 	A-25	  
	 19.6
	 		 	Headings	  	 	A-26	  
	 19.7
	 		 	Other Compensation Plans	  	 	A-26	  
	 19.8
	 		 	Retirement and Welfare Plans	  	 	A-26	  
	 19.9
	 		 	Other Awards	  	 	A-26	  
	 19.10
	 		 	Successors	  	 	A-26	  
	 19.11
	 		 	Law Limitations/Governmental Approvals	  	 	A-26	  
	 19.12
	 		 	Delivery of Title	  	 	A-26	  
	 19.13
	 		 	Inability to Obtain Authority	  	 	A-26	  
	 19.14
	 		 	Investment Representations	  	 	A-26	  
	 19.15
	 		 	Persons Residing Outside of the United States	  	 	A-26	  
	 19.16
	 		 	Arbitration of Disputes	  	 	A-27	  

  
 A-iv

									
	 19.17
	 		 	Governing Law	  	 	A-27	  
	 19.18
	 		 	Section 409A	  	 	A-27	  
	 19.19
	 		 	Delegation of Authority	  	 	A-28	  
	 19.20
	 		 	Clawback	  	 	A-28	  
	 19.21
	 		 	Retention Requirements	  	 	A-28	  

  
 A-v

 ARTICLE I 
 PURPOSE AND DURATION 
 1.1 Purpose of the Plan. The Plan is
intended to advance the best interests of the Company, its Affiliates and its stockholders by providing those persons who have substantial responsibility for the management and growth of the Company and its Affiliates with additional performance
incentives and an opportunity to obtain or increase their proprietary interest in the Company, thereby encouraging them to continue in their employment or affiliation with the Company or its Affiliates. 

1.2 Duration of Plan. Unless sooner terminated as provided herein, the Plan shall terminate on May 27, 2026. After the Plan
is terminated, no Awards may be granted but Awards previously granted shall remain outstanding in accordance with their applicable terms and conditions and the Plan’s terms and conditions. Notwithstanding the foregoing, no Incentive Stock
Options may be granted more than ten years after the earlier of (a) adoption of the Plan by the Board, and (b) May 27, 2026. 
 ARTICLE II 
 DEFINITIONS 

The words and phrases defined in this Article shall have the meaning set out below throughout the Plan, unless the context in which any
such word or phrase appears reasonably requires a broader, narrower or different meaning. 
 2.1
“Affiliate” means any corporation, partnership, limited liability company or association, trust or other entity or organization which, directly or indirectly, controls, is controlled by, or is under common control with, the
Company, including any such entity that becomes an Affiliate after the adoption of the Plan; provided, however, with respect to an Incentive Stock Option, an Affiliate shall mean any corporation which is a subsidiary corporation of the Company, as
that term is defined in Section 424(f) of the Code. For purposes of the preceding sentence, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as used with
respect to any entity or organization, shall mean the possession, directly or indirectly, of the power (a) to vote more than fifty percent (50%) of the securities having ordinary voting power for the election of directors of the controlled
entity or organization, or (ii) to direct or cause the direction of the management and policies of the controlled entity or organization, whether through the ownership of voting securities or by contract or otherwise. 

2.2 “Annual Incentive Award” means an Award granted to a Holder pursuant to Article XII. 

2.3 “Award” means, individually or collectively, a grant under the Plan of Incentive Stock Options, Nonqualified
Stock Options, SARs, Restricted Stock, Deferred Shares, RSUs, Performance Stock Awards, Performance Unit Awards, Annual Incentive Awards, Other Stock-Based Awards, Dividend Equivalents and Cash-Based Awards, in each case subject to the terms and
provisions of the Plan. 
 2.4 “Award Agreement” means an agreement that sets forth the terms and
conditions applicable to an Award granted under the Plan. 
 2.5 “Beneficial Owner” or “Beneficial
Ownership” shall have the meaning ascribed to such term in Rule 13d-3 of the General Rules and Regulations under the Exchange Act. 
 2.6 “Board” means the board of directors of the Company. 

2.7 “Cash-Based Award” means an Award granted pursuant to Article XIV. 

  
 A-1

 2.8 “Change in Control of the Company” means the occurrence of any
of the following the Effective Date: 
 (a) The acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended from time to time) (the “Exchange Act”) (a “Covered Person”), of beneficial ownership (within the meaning of rule
13d-3 promulgated under the Exchange Act) of 30% or more of either (i) the then outstanding shares of the common stock of the Company (the “Outstanding Company Common Stock”), or (ii) the combined voting power of
the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this
subsection (a) of this Section 2.8, the following acquisitions shall not constitute a Change in Control of the Company: (1) any acquisition directly from the Company, (2) any acquisition by the Company, (3) any acquisition
by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company, or (4) any acquisition by any corporation pursuant to a transaction which complies with clauses (1), (2) and
(3) of subsection (c) of this Section 2.8; or 
 (b) Individuals who, as of the Effective Date, constitute the
Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or
nomination for election by the Company’s shareholders, was approved by a vote of at least two-thirds of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of
proxies or consents by or on behalf of a Covered Person other than the Board; or 
 (c) Consummation of (xx) a
reorganization, merger or consolidation or sale of the Company or any subsidiary of the Company, or (yy) a disposition of all or substantially all of the assets of the Company (a “Business Combination”), in each case, unless,
following such Business Combination, (1) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior
to such Business Combination beneficially own, direct or indirectly, more than 50% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in
the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the
Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Common Stock and Outstanding Company Voting
Securities, as the case may be, (2) no Covered Person (excluding any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 30% or more
of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation, except to the extent that such
ownership existed prior to the Business Combination, and (3) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the
execution of the initial agreement, or of the action of the Board of Directors, providing for such Business Combination. 

Notwithstanding the foregoing or any provision of this Plan to the contrary, if an Award is subject to Section 409A (and not
excepted therefrom) and a Change in Control is a distribution event for purposes of an Award, the foregoing definition of Change in Control shall be interpreted, administered and construed in manner necessary to ensure that the occurrence of any
such event shall result in a Change in Control only if such event qualifies as a change in the ownership or effective control of the Company, or a change in the ownership of a substantial portion of the assets of the Company, as applicable, within
the meaning of Treas. Reg. §1.409A-3(i)(5) or any successor provision. 

  
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 2.9 “Code” means the United States Internal Revenue Code of 1986, as
amended from time to time. 
 2.10 “Committee” means the Compensation Committee of the Board, or any
successor committee appointed by the Board. 
 2.11 “Company” means Rex Energy Corporation, a Delaware
corporation, or any successor (by reincorporation, merger or otherwise). 
 2.12 “Corporate Change”
shall have the meaning ascribed to that term in Section 4.5(c). 
 2.13 “Covered Employee” means an
Employee who is a “covered employee,” as defined in section 162(m) of the Code and the regulations promulgated under section 162(m) of the Code, or any successor statute. 

2.14 “Deferral Period” means the period of time during which Deferred Shares are subject to deferral limitations
under Article X. 
 2.15 “Deferred Shares” means an Award pursuant to Article X of the right to receive
Stock at the end of a specified Deferral Period. 
 2.16 “Director” means a director of the Company or
an Affiliate who is not an Employee. 
 2.17 “Director Award” means any NQSO, SAR, or Full Value Award
granted to a Director pursuant to such applicable terms, conditions, and limitations as the Board or Committee may establish in accordance with this Plan. 
 2.18 “Disability” means as determined by the Committee in its discretion exercised in good faith, a physical or mental condition of the Holder that would entitle him to payment of
disability income payments under the Company’s long-term disability insurance policy or plan for Employees as then in effect; or in the event that the Holder is not covered, for whatever reason, under the Company’s long-term disability
insurance policy or plan for Employees or in the event the Company does not maintain such a long-term disability insurance policy, “Disability” means a permanent and total disability as defined in section 22(e)(3) of the Code. A
determination of Disability may be made by a physician selected or approved by the Committee and, in this respect, the Holder shall submit to an examination by such physician upon request by the Committee. 

2.19 “Dividend Equivalent” means a payment equivalent in amount to dividends paid to the Company’s
stockholders. 
 2.20 “Employee” means a person employed by the Company or any Affiliate (including,
without limitation, a parent or subsidiary of the Company) as a common law employee. 
 2.21 “Fair Market
Value” of the Stock as of any particular date means (1) if the Stock is traded on a stock exchange, the closing sale price of the Stock on that date as reported on the principal securities exchange on which the Stock is traded, or
(2) if the Stock is traded in the over-the-counter market, the average between the high bid and low asked price on that date as reported in such over-the-counter market; provided that (a) if the Stock is not so traded, (b) if no
closing price or bid and asked prices for the stock was so reported on that date or (c) if, in the discretion of the Committee, another means of determining the fair market value of a share of Stock at such date shall be necessary or advisable,
the Committee may provide for another means for determining such fair market value. 
 2.22 “Fiscal
Year” means the calendar year. 
 2.23 “Freestanding SAR” means an SAR that is granted
independently of any Options, as described in Article VI. 

  
 A-3

 2.24 “Full Value Award” means an Award other than in the form of an
ISO, NQSO, or SAR, and which is settled by the issuance of shares of Stock. 
 2.25 “Holder” means a
person who has been granted an Award or any person who is entitled to receive shares of Stock or cash under an Award. 
 2.26
“Incentive Stock Option” or “ISO” means an option to purchase Stock granted pursuant to Article V that is designated as an Incentive Stock Option and that is intended to satisfy the requirements of section 422 of
the Code. 
 2.27 “Insider” shall mean an individual who is, on the relevant date, an officer, a
Director, or more than ten percent (10%) Beneficial Owner of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act, as determined by the Board in accordance with Section 16 of
the Exchange Act. 
 2.28 “Minimum Statutory Tax Withholding Obligation” means, with respect to an
Award, the amount the Company or an Affiliate is required to withhold for federal, state and local taxes based upon the applicable minimum statutory withholding rates required by the relevant tax authorities. 

2.29 “Nonqualified Stock Option” or “NQSO” means a “nonqualified stock option” to purchase
Stock granted pursuant to Article V that does not satisfy the requirements of section 422 of the Code. 
 2.30
“Option” means an Incentive Stock Option or a Nonqualified Stock Option. 
 2.31 “Option
Price” shall have the meaning ascribed to that term in Section 5.3. 
 2.32 “Other Stock-Based
Award” means an equity-based or equity-related Award not otherwise described by the terms and provisions of the Plan that is granted pursuant to Article XIII. 
 2.33 “Participant” means any eligible person as set forth in Article III to whom an Award is granted. 
 2.34 “Performance-Based Compensation” means compensation under an Award that satisfies the requirements of Section 162(m) for deductibility of remuneration paid to Covered
Employees. 
 2.35 “Performance Goals” means one or more of the criteria described in Section 9.2
on which the performance goals applicable to an Award are based. 
 2.36 “Performance Stock Award” means
an Award designated as a performance stock award granted to a Holder pursuant to Article IX. 
 2.37 “Performance
Unit Award” means an Award designated as a performance unit award granted to a Holder pursuant to Article IX. 

2.38 “Period of Restriction” means the period during which Restricted Stock is subject to a substantial risk of
forfeiture (based on the passage of time, the achievement of performance goals, or upon the occurrence of other events as determined by the Committee, in its discretion), as provided in Article VII. 

2.39 “Plan” means the Rex Energy Corporation 2016 Long-Term Incentive Plan, as it may be amended from time to
time. 
 2.40 “Predecessor Plan” means the Company’s 2007 Long Term Incentive Plan, as amended and
restated. 
 2.41 “Restricted Stock” means shares of restricted Stock issued or granted under the Plan
pursuant to Article VII. 

  
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 2.42 “Restricted Stock Award” means an authorization by the
Committee to issue or transfer Restricted Stock to a Holder. 
 2.43 “RSU” means a restricted stock unit
credited to a Holder’s ledger account maintained by the Company pursuant to Article VIII. 
 2.44 “RSU
Award” means an Award granted pursuant to Article VIII. 
 2.45 “SAR” means a stock
appreciation right granted under the Plan pursuant to Article VI. 
 2.46 “Section 162(m)” means
Section 162(m) of the Code, the regulations and other binding guidance promulgated thereunder, as they may now exist or may be amended from time to time, or any successor to such section. 

2.47 “Section 409A” means section 409A of the Code and Department of Treasury or Internal Revenue Service rules,
regulations or guidance issued thereunder. 
 2.48 “Separation from Service” and “Separate from
Service” shall mean the Participant’s death, retirement or other termination of employment or service with the Company (including all persons treated as a single employer under Section 414(b) and 414(c) of the Code) that
constitutes a “separation from service” (within the meaning of Section 409A). For purposes hereof, the determination of controlled group members shall be made pursuant to the provisions of Section 414(b) and 414(c) of the Code;
provided that the language “at least 50 percent” shall be used instead of “at least 80 percent” in each place it appears in Section 1563(a)(1),(2) and (3) of the Code and Treas. Reg. § 1.414(c)-2; provided,
further, where legitimate business reasons exist (within the meaning of Treas. Reg. § 1.409A-1(h)(3)), the language “at least 20 percent” shall be used instead of “at least 80 percent” in each place it appears. Whether a
Participant has Separated from Service will be determined based on all of the facts and circumstances and, to the extent applicable to any Award or benefit, in accordance with the guidance issued under Section 409A. A Participant will be
presumed to have experienced a Separation from Service when the level of bona fide services performed permanently decreases to a level less than twenty percent (20%) of the average level of bona fide services performed during the
immediately preceding thirty-six (36) month period or such other applicable period as provided by Section 409A.2.33. 

2.49 “Specified Employee” means a key employee (as defined in Section 416(i) of the Code without regard to
paragraph (5) thereof) of the Company, as determined in accordance with the regulations issued under Section 409A and the procedures established by the Company. 
 2.50 “Stock” means the common stock of the Company, $0.001 par value per share (or such other par value as may be designated by act of the Company’s stockholders). 

2.51 “Substantial Risk of Forfeiture” shall have the meaning ascribed to that term in Section 409A.

 2.52 “Tandem SAR” means an SAR that is granted in connection with a related Option pursuant to
Article VI herein, the exercise of which shall require forfeiture of the right to purchase a share of Stock under the related Option (and when a share of Stock is purchased under the Option, the Tandem SAR shall similarly be canceled). 

2.53 “Ten Percent Stockholder” means an individual, who, at the time the applicable Option is granted, owns stock
possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Affiliate. An individual shall be considered as owning the stock owned, directly or indirectly, by or for his brothers and
sisters, spouse, ancestors, and lineal descendants; and stock owned, directly or indirectly, by or for a corporation, partnership, estate, or trust, shall be considered as being owned proportionately by or for its stockholders, partners, or
beneficiaries. 

  
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 2.54 “Termination of Employment” means the termination of the Award
recipient’s employment relationship with the Company and all Affiliates. 
 2.55 “Third Party Service
Provider” means any consultant, agent, representative, advisor, or independent contractor who renders services to the Company or an Affiliate that (a) are not in connection with the offer and sale of the Company’s securities
in a capital raising transaction, and (b) do not directly or indirectly promote or maintain a market for the Company’s securities. 
 ARTICLE III 
 ELIGIBILITY 

The persons who are eligible to receive Awards under the Plan are Employees, Directors and Third Party Service Providers. The persons who
are eligible to receive Annual Incentive Awards under the Plan are Employees who, by the nature and scope of their positions, regularly directly make or influence policy decisions which significantly impact the overall results or success of the
Company. Directors and Third Party Service Providers are only eligible to receive NQSO, SAR or Full Value Awards. 
 ARTICLE
IV 
 GENERAL PROVISIONS RELATING TO AWARDS 

4.1 Authority to Grant Awards. The Committee may grant Awards to those Employees, Directors and Third Party Service Providers as
the Committee shall from time to time determine, under the terms and conditions of the Plan. Subject only to any applicable limitations set out in the Plan, the number of shares of Stock or other value to be covered by any Award to be granted under
the Plan shall be as determined by the Committee in its sole discretion. All Awards to Directors shall be determined by the Board or Committee, subject to the limits set forth in Section 4.2. 

4.2 Dedicated Shares; Maximum Awards. 
 (a) Number of Shares of Stock Dedicated under the Plan for Awards. The aggregate number of shares of Stock with respect to which Awards, including Incentive Stock Options, may be granted under the
Plan is (i) 2,819,256 plus (ii) shares added to the Plan pursuant to Section 4.14 plus (iii) 211,850 shares remaining available for issuance under the Predecessor Plan as of the effective date of this Plan (the
“Aggregate Limit”). 
 (b) Annual Award Limits. Unless and until the Committee determines that an
Award to a Covered Employee shall not be designed to qualify as Performance-Based Compensation, the following limits (each an “Annual Award Limit” and, collectively, “Annual Award Limits”) shall apply
to grants of such Awards under the Plan: 
 (i) The maximum number of shares of Stock with respect to which SARs may be granted
to a Participant, other than a Director, during a Fiscal Year is 10% of the Aggregate Limit. The maximum aggregate value of SARs that may be granted to a Director during a Fiscal Year (determined as of the date of the Award using an appropriate
valuation method determined by the Committee) is $300,000. 
 (ii) The maximum number of shares of Stock with respect to which
Options may be granted to a Participant, other than a Director, during a Fiscal Year is 10% of the Aggregate Limit. The maximum aggregate value of Options that may be granted to a Director during a Fiscal Year (determined as of the date of the Award
using an appropriate valuation method determined by the Committee) is $300,000. 

  
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 (iii) The maximum aggregate value of Full Value Awards that may be granted to a Director
during a Fiscal Year (determined based on the Fair Market Value of Stock on the date of the Award) is $300,000. 
 (iv) The
maximum number of shares of Stock with respect to which Performance Stock Awards may be granted to an Employee during a Fiscal Year is 10% of the Aggregate Limit. 
 (v) The maximum number of shares of Stock with respect to which Performance Unit Awards payable in Stock may be granted to an Employee during a Fiscal Year is 10% of the Aggregate Limit. 

(vi) The maximum value of cash with respect to which Performance Unit Awards payable in cash may be granted to an Employee during a
Fiscal Year, determined as of the grant date of the Performance Unit Awards, is $3,000,000. 
 (vii) The maximum amount that
may be paid to an Employee under Annual Incentive Award(s) granted to an Employee during a Fiscal Year is $3,000,000. 
 (c)
Share Usage. Each of the foregoing numerical limits stated in this Section 4.2 shall be subject to adjustment in accordance with the provisions of Section 4.5, but only to the extent that any such adjustment will not affect the
status of: (i) any Award intended to qualify as performance-based compensation under Section 162(m) of the Code, (ii) any Award intended to qualify as an Incentive Stock Option; or (iii) any Award intended to comply with, or
qualify for an exception to, Section 409A. The number of shares of Stock stated in this Section 4.2 shall also be increased by such number of shares of Stock as become subject to substitute Awards granted pursuant to Article XV;
provided, however, that such increase shall be conditioned upon the approval of the stockholders of the Company to the extent stockholder approval is required by applicable law or applicable stock exchange rules. If shares of Stock
otherwise issuable under the Plan are withheld by the Company in satisfaction of the withholding taxes incurred in connection with the exercise of an Option, SAR or issuance of fully-vested shares of Stock under another type of Award, then the
number of shares available for issuance under the Plan will be reduced by the gross number of shares issuable under the exercised Option or SAR or the gross number of fully-vested Shares issuable under another type of Award, calculated in each
instance prior to any such share withholding. If shares of Stock are tendered in payment of the Option Price of an Option or proceeds received from the exercise of such Option are used to repurchase shares of Stock, such shares of Stock will not be
added to the aggregate number of shares of Stock with respect to which Awards may be granted under the Plan. To the extent that any outstanding Award is forfeited or cancelled for any reason or is settled in cash in lieu of shares of Stock, or any
shares of Stock subject to an Award are repurchased by the Company, at a price per share not greater than the original issue price paid per share, pursuant to the Company’s repurchase rights under the Plan or the applicable Award Agreement, the
shares of Stock allocable to such portion of the Award may again be subject to an Award granted under the Plan. When a SAR is settled in shares of Stock, the number of shares of Stock subject to the SAR under the SAR Award Agreement will be counted
against the aggregate number of shares of Stock with respect to which Awards may be granted under the Plan as one share for every share subject to the SAR, regardless of the number of shares used to settle the SAR upon exercise. The maximum number
of shares of Stock available for issuance under the Plan shall not be reduced to reflect any dividends or Dividend Equivalents that are reinvested into additional shares of Stock or credited as additional Restricted Stock, Restricted Stock Units,
Performance Shares, or other Stock-Based Awards. In the case of any Award granted in substitution for an award of a company or business acquired by the Company or an Affiliate, shares of Stock issued or issuable in connection with such substitution
will not be counted against the number of shares reserved under the Plan, but will be available under the Plan by virtue of the Company’s assumption of the plan or arrangement of the acquired company or business. 

4.3 Non-Transferability. Except as specified in the applicable Award Agreements or in domestic relations court orders, an Award
shall not be transferable by the Holder other than by will or under the laws of descent and distribution, and shall be exercisable, during the Holder’s lifetime, only by him or her. Any attempted assignment, alienation, garnishment, pledge,
attachment, or levy with respect to an Award in violation of this 

  
 A-7

 
Section shall be null and void. In the discretion of the Committee, any attempt to transfer an Award other than under the terms of the Plan and the applicable Award Agreement may terminate the
Award. 
 4.4 Requirements of Law. The Company shall not be required to sell or issue any shares of Stock under any Award
if issuing those shares of Stock would constitute or result in a violation by the Holder or the Company of any provision of any law, statute or regulation of any governmental authority. Specifically, in connection with any applicable statute or
regulation relating to the registration of securities, upon exercise of any Option or pursuant to any other Award, the Company shall not be required to issue any shares of Stock unless the Committee has received evidence satisfactory to it to the
effect that the Holder will not transfer the shares of Stock except in accordance with applicable law, including receipt of an opinion of counsel satisfactory to the Company to the effect that any proposed transfer complies with applicable law. The
determination by the Committee on this matter shall be final, binding and conclusive. The Company may, but shall in no event be obligated to, register any shares of Stock covered by the Plan pursuant to applicable securities laws of any country or
any political subdivision. In the event the shares of Stock issuable on exercise of an Option or pursuant to any other Award are not registered, the Company may imprint on the certificate evidencing the shares of Stock any legend that counsel for
the Company considers necessary or advisable to comply with applicable law, or, should the shares of Stock be represented by book or electronic entry rather than a certificate, the Company may take such steps to restrict transfer of the shares of
Stock as counsel for the Company considers necessary or advisable to comply with applicable law. The Company shall not be obligated to take any other affirmative action in order to cause or enable the exercise of an Option or any other Award, or the
issuance of shares of Stock pursuant thereto, to comply with any law or regulation of any governmental authority. It is the intent of the Company that the grant of any Awards to or other transaction by a Participant who is subject to section 16 of
the Exchange Act shall be exempt from section 16 pursuant to an applicable exemption (except for transactions acknowledged in writing to be non-exempt by such Participant). Accordingly, if any provision of this Plan or any Award agreement does not
comply with the requirements of Rule 16b-3 as then applicable to any such transaction, such provision shall be construed or deemed amended to the extent necessary to conform to the applicable requirements of Rule 16b-3 so that such Participant shall
avoid liability under section 16(b) of the Exchange Act. 
 4.5 Changes in the Company’s Capital Structure.

 (a) The existence of outstanding Awards shall not affect in any way the right or power of the Company or its stockholders to
make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure or its business, any merger or consolidation of the Company, any issue of bonds, debentures, preferred or prior
preference shares ahead of or affecting the Stock or Stock rights, the dissolution or liquidation of the Company, any sale or transfer of all or any part of its assets or business or any other corporate act or proceeding, whether of a similar
character or otherwise. 
 (b) If the Company shall effect a subdivision or consolidation of Stock or other capital
readjustment, the payment of a Stock dividend, or other increase or reduction of the number of shares of Stock outstanding, without receiving compensation therefor in money, services or property, then (1) the number, class or series and per
share price of Stock subject to outstanding Options or other Awards under the Plan shall be appropriately adjusted in such a manner as to entitle a Holder to receive upon exercise of an Option or other Award, for the same aggregate cash
consideration, the equivalent total number and class or series of Stock the Holder would have received had the Holder exercised his or her Option or other Award in full immediately prior to the event requiring the adjustment, and (2) the number
and class or series of Stock then reserved to be issued under the Plan shall be adjusted by substituting for the total number and class or series of Stock then reserved, that number and class or series of Stock that would have been received by the
owner of an equal number of outstanding shares of Stock of each class or series of Stock as the result of the event requiring the adjustment. 
 (c) If while unexercised Options or other Awards remain outstanding under the Plan (1) the Company shall not be the surviving entity in any merger, consolidation or other reorganization (or survives
only as a 

  
 A-8

 
subsidiary of an entity other than an entity that was wholly-owned by the Company immediately prior to such merger, consolidation or other reorganization), (2) the Company sells, leases or
exchanges or agrees to sell, lease or exchange all or substantially all of its assets to any other person or entity (other than an entity wholly-owned by the Company), (3) the Company is to be dissolved or (4) the Company is a party to any
other corporate transaction (as defined under section 424(a) of the Code and applicable Department of Treasury regulations) that is not described in clauses (1), (2) or (3) of this sentence (each such event is referred to herein as a
“Corporate Change”), then, except as otherwise provided in an Award Agreement or another agreement between the Holder and the Company (provided that such exceptions shall not apply in the case of a reincorporation merger), or
as a result of the Committee’s effectuation of one or more of the alternatives described below, or except as otherwise provided in Article XVI hereof, there shall be no acceleration of the time at which any Award then outstanding may be
exercised, and no later than ten days after the approval by the stockholders of the Company of such Corporate Change, the Committee, acting in its sole and absolute discretion without the consent or approval of any Holder, shall act to effect one or
more of the following alternatives, which may vary among individual Holders and which may vary among Awards held by any individual Holder (provided that, with respect to a reincorporation merger in which Holders of the Company’s shares will
receive one share of the successor corporation for each share of the Company, none of such alternatives shall apply and, without Committee action, each Award shall automatically convert into a similar award of the successor corporation exercisable
for the same number of shares of the successor as the Award was exercisable for shares of Stock of the Company): 
 (i)
accelerate the time at which some or all of the Awards then outstanding may be exercised so that such Awards may be exercised in full for a limited period of time on or before a specified date (before or after such Corporate Change) fixed by the
Committee, after which specified date all such Awards that remain unexercised and all rights of Holders thereunder shall terminate; 
 (ii) require the mandatory surrender to the Company by all or selected Holders of some or all of the then outstanding Awards held by such Holders (irrespective of whether such Awards are then exercisable
under the provisions of the Plan or the applicable Award Agreement evidencing such Award) as of a date, before or after such Corporate Change, specified by the Committee, in which event the Committee shall thereupon cancel such Award and the Company
shall pay to each such Holder an amount of cash per share equal to the excess, if any, of the per share price offered to stockholders of the Company in connection with such Corporate Change over the exercise prices under such Award for such shares;

 (iii) with respect to all or selected Holders, have some or all of their then outstanding Awards (whether vested or
unvested) assumed or have a new award of a similar nature substituted for some or all of their then outstanding Awards under the Plan (whether vested or unvested) by an entity which is a party to the transaction resulting in such Corporate Change
and which is then employing such Holder or which is affiliated or associated with such Holder in the same or a substantially similar manner as the Company prior to the Corporate Change, or a parent or subsidiary of such entity, provided that
(A) such assumption or substitution is on a basis where the excess of the aggregate fair market value of the Stock subject to the Award immediately after the assumption or substitution over the aggregate exercise price of such Stock is equal to
the excess of the aggregate fair market value of all Stock subject to the Award immediately before such assumption or substitution over the aggregate exercise price of such Stock, and (B) the assumed rights under such existing Award or the
substituted rights under such new Award, as the case may be, will have the same terms and conditions as the rights under the existing Award assumed or substituted for, as the case may be; 

(iv) provide that the number and class or series of Stock covered by an Award (whether vested or unvested) theretofore granted shall be
adjusted so that such Award when exercised shall thereafter cover the number and class or series of Stock or other securities or property (including, without limitation, cash) to which the Holder would have been entitled pursuant to the terms of the
agreement or plan relating to such Corporate Change if, immediately prior to such Corporate Change, the Holder had been the holder of record of the number of shares of Stock then covered by such Award; or 

  
 A-9

 (v) make such adjustments to Awards then outstanding as the Committee deems appropriate to
reflect such Corporate Change (provided, however, that the Committee may determine in its sole and absolute discretion that no such adjustment is necessary). 
 Any adjustment effected by the Committee under Section 4.5 shall be designed to provide the Holder with the intrinsic value of his or her Award, as determined prior to the Corporate Change, or, if
applicable, equalize the Fair Market Value of the Award before and after the Corporate Change. 
 In effecting one or more of
the alternatives set out in paragraphs (iii), (iv) or (v) immediately above, and except as otherwise may be provided in an Award Agreement, the Committee, in its sole and absolute discretion and without the consent or approval of any
Holder, may accelerate the time at which some or all Awards then outstanding may be exercised. 
 (d) In the event of changes in
the outstanding Stock by reason of recapitalizations, reorganizations, mergers, consolidations, combinations, exchanges or other relevant changes in capitalization occurring after the date of the grant of any Award and not otherwise provided for by
this Section 4.5, any outstanding Award and any Award Agreement evidencing such Award shall be subject to adjustment by the Committee in its sole and absolute discretion as to the number and price of Stock or other consideration subject to such
Award. In the event of any such change in the outstanding Stock, the aggregate number of shares of Stock available under the Plan may be appropriately adjusted by the Committee, whose determination shall be conclusive. 

(e) The issuance by the Company of stock of any class or series, or securities convertible into, or exchangeable for, stock of any class
or series, for cash or property, or for labor or services either upon direct sale or upon the exercise of rights or warrants to subscribe for them, or upon conversion or exchange of stock or obligations of the Company convertible into, or
exchangeable for, stock or other securities, shall not affect, and no adjustment by reason of such issuance shall be made with respect to, the number, class or series, or price of shares of Stock then subject to outstanding Options or other Awards.

 (f) After a merger of one or more corporations into the Company or after a consolidation of the Company and one or more
corporations in which the Company shall be the surviving corporation, each Holder shall be entitled to have his Restricted Stock appropriately adjusted based on the manner in which the shares of Stock were adjusted under the terms of the agreement
of merger or consolidation. 
 4.6 Election Under Section 83(b) of the Code. No Holder shall exercise the election
permitted under section 83(b) of the Code with respect to any Award without the written approval of the General Counsel or Chief Financial Officer of the Company. Any Holder who makes an election under section 83(b) of the Code with respect to any
Award without the written approval of the Chief Financial Officer or General Counsel of the Company shall forfeit any or all Awards granted to him or her under the Plan. 
 4.7 Forfeiture for Cause. Notwithstanding any other provision of the Plan or an Award Agreement, if the Committee finds by a majority vote that a Holder, before or after his Termination of
Employment (a) committed fraud, embezzlement, theft, felony or an act of dishonesty in the course of his employment by the Company or an Affiliate which conduct damaged the Company or an Affiliate or (b) disclosed trade secrets or other
confidential information of the Company or an Affiliate, then as of the date the Committee makes its finding, any Awards awarded to the Holder that have not been exercised by the Holder (including all Awards that have not yet vested) will be
forfeited to the Company. The findings and decision of the Committee with respect to such matter, including those regarding the acts of the Holder and the damage done to the Company, will be final for all purposes. No decision of the Committee,
however, will affect the finality of the discharge of the individual by the Company or an Affiliate. 
 4.8 Forfeiture
Events. The Committee may specify in an Award Agreement that the Holder’s rights, payments, and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture, or

  
 A-10

 
recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events may include, but shall not be
limited to, Termination of Employment for cause, termination of the Holder’s provision of services to the Company or its Affiliates, violation of material policies of the Company and its Affiliates, breach of noncompetition, confidentiality, or
other restrictive covenants that may apply to the Holder, or other conduct by the Holder that is detrimental to the business or reputation of the Company and its Affiliates. 
 4.9 Award Agreements. Each Award shall be embodied in a written agreement and shall be subject to the terms and conditions of the Plan. The Award Agreement may contain any other provisions that the
Committee in its discretion shall deem advisable which are not inconsistent with the terms and provisions of the Plan. Award Agreements may be accepted electronically or in any other manner that the Committee deems appropriate. Acceptance of an
Award shall constitute agreement to its terms. 
 4.10 Amendments of Awards. The terms of any outstanding Award under the
Plan may be amended from time to time by the Committee in its discretion in any manner that it deems appropriate and that is consistent with the terms of the Plan. However, no such amendment shall adversely affect in a material manner any vested
right of a Holder without his or her written consent. Other than in connection with a change in the Company’s capital structure as described in Section 4.5, neither an Option nor an SAR may be amended to reduce the exercise price or in any
other manner that would constitute a direct or indirect re-pricing (including cancelling previously awarded Options or SARs and re-granting them with a lower Option Price or grant price, cancelling previously awarded Options or SARs with Option
Prices or grant prices per share in excess of the then current Fair Market Value per share for consideration payable in cash, equity securities of the Company or in the form of any other Award under the Plan, or taking any other action with respect
to an Option or SAR that would be treated as a re-pricing under the rules and regulations of the principal securities exchange on which the Company’s Stock is traded). 
 4.11 Rights as Stockholder. A Holder shall not have any rights as a stockholder with respect to Stock covered by an Option, a SAR, an RSU, a Performance Stock Unit, or an Other Stock-Based Award
until the date, if any, such Stock is issued by the Company; and, except as otherwise provided in Section 4.5, no adjustment for dividends, or otherwise, shall be made if the record date therefor is prior to the date of issuance of such Stock.

 4.12 Issuance of Shares of Stock. Shares of Stock, when issued, may be represented by a certificate or by book or
electronic entry. Such shares of Stock may be shares of original issuance, shares held in treasury, or shares that have been reacquired by the Company. 
 4.13 Restrictions on Stock Received. The Committee may impose such conditions and/or restrictions on any shares of Stock issued pursuant to an Award as it may deem advisable or desirable. These
restrictions may include, but shall not be limited to, a requirement that the Holder hold the shares of Stock for a specified period of time. 
 4.14 Predecessor Plan. Upon the effectiveness of this Plan, no additional options or other awards shall be made pursuant to a Predecessor Plan. To the extent that any award granted under a
Predecessor Plan, which are outstanding as of the Effective Date, shall expire or terminate without being exercised, the Stock covered thereby shall remain available under or be added to the Plan, as the case may be. 

4.15 Certain Terminations of Employment, Hardship and Approved Leaves of Absence. Notwithstanding any other provision of this Plan
to the contrary, in the event of Termination of Employment or service by reason of death, disability, normal retirement, early retirement with the consent of the Company or leave of absence approved by the Company, or in the event of hardship or
other special circumstances, of a Participant who holds an Option or SAR that is not immediately and fully exercisable, any Restricted Stock or RSU as to which the substantial risk of forfeiture or the prohibition or restriction on transfer has not
lapsed, any Deferred Shares as to which the Deferral Period is not complete, any Performance Stock Award or Performance Unit Award that have 

  
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not been fully earned, any Stock that is subject to any transfer restriction pursuant to this Plan, or any Cash-Based Award or Annual Incentive Award that has not been fully earned, the Committee
may in its sole discretion take any action that it deems to be equitable under the circumstances or in the best interests of the Company, including, without limitation, waiving or modifying any limitation or requirement with respect to any Award
under this Plan. 
 ARTICLE V 
 OPTIONS 
 5.1 Authority to Grant Options. Subject to the
terms and provisions of the Plan, the Committee, at any time, and from time to time, may grant Options under the Plan to eligible persons in such number and upon such terms as the Committee shall determine; provided that ISOs may be granted only to
eligible Employees of the Company or of any parent or subsidiary corporation (as permitted by section 422 of the Code and the regulations thereunder). 
 5.2 Option Agreement. Each Option grant under the Plan shall be evidenced by an Award Agreement that shall specify (a) the Option Price, (b) the duration of the Option, (c) the
number of shares of Stock to which the Option pertains, (d) the exercise restrictions, if any, applicable to the Option and (e) such other provisions as the Committee shall determine that are not inconsistent with the terms and provisions
of the Plan. The Award Agreement also shall specify whether the Option is intended to be an ISO or a NQSO. Unless the vesting of such Option otherwsie accelerates in accordance with this Plan or the Award Agreement, each Option granted under the
Plan shall have a minimum vesting period of at least one (1) year. 
 5.3 Option Price. The price at which shares of
Stock may be purchased under an Option (the “Option Price”) shall not be less than one hundred percent (100%) of the Fair Market Value of the shares of Stock on the date the Option is granted; provided,
however, if the Option is an ISO granted to a Ten Percent Stockholder, the Option Price must not be less than one hundred ten percent (110%) of the Fair Market Value of the shares of stock on the date of grant. Subject to the limitations
set forth in the preceding sentences of this Section 5.3, the Committee shall determine the Option Price for each grant of an Option under the Plan. 
 5.4 Duration of Option. An Option shall not be exercisable after the earlier of (i) the general term of the Option specified in the applicable Award Agreement (which shall not exceed ten
years, or, in the case of a Ten Percent Stockholder, no ISO shall be exercisable later than the fifth (5th) anniversary of the date of its grant) or (ii) the period of time specified in the applicable Award Agreement that follows the
Holder’s Termination of Employment or severance of affiliation relationship with the Company. 
 5.5 Amount
Exercisable. Each Option may be exercised at the time, in the manner and subject to the conditions the Committee specifies in the Award Agreement in its sole discretion. 
 5.6 Exercise of Option.  
 (a) General Method of
Exercise. Subject to the terms and provisions of the Plan and the applicable Award Agreement, Options may be exercised in whole or in part from time to time by the delivery of written notice in the manner designated by the Committee stating
(1) that the Holder wishes to exercise such Option on the date such notice is so delivered, (2) the number of shares of Stock with respect to which the Option is to be exercised and (3) the address to which any certificate
representing such shares of Stock should be mailed. Except in the case of exercise by a third party broker as provided below, in order for the notice to be effective the notice must be accompanied by payment of the Option Price by any combination of
the following: (a) cash, certified check, bank draft or postal or express money order for an amount equal to the Option Price under the Option, or (b) any other form of payment which is acceptable to the Committee. 

(b) Exercise Through Third-Party Broker; Net Exercise. The Committee may permit a Holder to elect to pay the Option Price and any
applicable tax withholding resulting from such exercise by authorizing a third-

  
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party broker to sell all or a portion of the shares of Stock acquired upon exercise of the Option and remit to the Company a sufficient portion of the sale proceeds to pay the Option Price and
any applicable tax withholding resulting from such exercise. The Committee may also permit a Holder to elect to pay the Option Price and any applicable tax withholding resulting from such exercise by instructing the Committee to withhold a number of
Shares otherwise deliverable to the Holder pursuant to the Option having an aggregate Fair Market Value on the date of exercise equal to the Option Price and any such applicable tax withholding. 

5.7 Notification of Disqualifying Disposition. If any Employee shall make any disposition of shares of Stock issued pursuant to
the exercise of an ISO under the circumstances described in section 421(b) of the Code (relating to certain disqualifying dispositions), such Employee shall notify the Company of such disposition within ten (10) days thereof. 

5.8 $100,000 Limitation on ISOs. To the extent that the aggregate Fair Market Value of shares of Stock with respect to which ISOs
first become exercisable by a Holder in any calendar year exceeds $100,000, taking into account both shares of Stock subject to ISOs under the Plan and Stock subject to ISOs under all other plans of the Company, such Options shall be treated as
NQSOs. For this purpose, the “Fair Market Value” of the shares of Stock subject to Options shall be determined as of the date the Options were awarded. In reducing the number of Options treated as ISOs to meet the $100,000
limit, the most recently granted Options shall be reduced first. To the extent a reduction of simultaneously granted Options is necessary to meet the $100,000 limit, the Committee may, in the manner and to the extent permitted by law, designate
which shares of Stock are to be treated as shares acquired pursuant to the exercise of an ISO. 
 5.9 Transferability –
Incentive Stock Options. Notwithstanding anything in the Plan or an Award Agreement to the contrary, no ISO granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the
laws of descent and distribution, and all ISOs granted to an Employee under this Article V shall be exercisable during his or her lifetime only by such Employee. 
 ARTICLE VI 
 STOCK APPRECIATION RIGHTS 

6.1 Authority to Grant SAR Awards. Subject to the terms and provisions of the Plan, the Committee, at any time, and from time to
time, may grant SARs under the Plan to eligible persons in such number and upon such terms as the Committee shall determine. Subject to the terms and conditions of the Plan, the Committee shall have complete discretion in determining the number of
SARs granted to each Holder and, consistent with the provisions of the Plan, in determining the terms and conditions pertaining to such SARs. The Committee may grant Freestanding SARs, Tandem SARs, or any combination of these forms of SARs.

 6.2 General Terms. Subject to the terms and conditions of the Plan, a SAR granted under the Plan shall confer on the
recipient a right to receive, upon exercise thereof, an amount equal to the excess of (a) the Fair Market Value of one share of the Stock on the date of exercise over (b) the grant price of the SAR, which shall not be less than one hundred
percent (100%) of the Fair Market Value of one share of the Stock on the date of grant of the SAR. The grant price of Tandem SARs shall be equal to the Option Price of the related Option. 

6.3 SAR Agreement. Each Award of SARs granted under the Plan shall be evidenced by an Award Agreement that shall specify
(a) the grant price of the SAR, (b) the term of the SAR, (c) the vesting and termination provisions of the SAR and (d) such other provisions as the Committee shall determine that are not inconsistent with the terms and provisions
of the Plan. The Committee may impose such additional conditions or restrictions on the exercise of any SAR as it may deem appropriate. Unless the vesting of such SAR otherwsie accelerates in accordance with this Plan or the Award Agreement, each
SAR granted under the Plan shall have a minimum vesting period of at least one (1) year. 

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

7.1 Restricted Stock Awards. The Committee may make Awards of Restricted Stock to eligible persons selected by it. The amount of,
the vesting and the transferability restrictions applicable to any Restricted Stock Award shall be determined by the Committee in its sole discretion. If the Committee imposes vesting or transferability restrictions on a Holder’s rights with
respect to Restricted Stock, the Committee may issue such instructions to the Company’s share transfer agent in connection therewith as it deems appropriate. The Committee may also cause the certificate for shares of Stock issued pursuant to a
Restricted Stock Award to be imprinted with any legend which counsel for the Company considers advisable with respect to the restrictions or, should the shares of Stock be represented by book or electronic entry rather than a certificate, the
Company may take such steps to restrict transfer of the shares of Stock as counsel for the Company considers necessary or advisable to comply with applicable law. 
 7.2 Restricted Stock Award Agreement. Each Restricted Stock Award shall be evidenced by an Award Agreement that contains any vesting, transferability restrictions and other provisions not
inconsistent with the Plan as the Committee may specify. Unless the forfeiture restrictions of such Restricted Stock Award otherwise lapse in accordance with this Plan or the Award Agreement, the forfeiture provisions of each Restricted Stock Award
granted under the Plan shall survive for a minimum of at least one (1) year. 

  
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 7.3 Holder’s Rights as Stockholder. Subject to the terms and conditions of the
Plan, each recipient of a Restricted Stock Award shall have all the rights of a stockholder with respect to the shares of Restricted Stock included in the Restricted Stock Award during the Period of Restriction established for the Restricted Stock
Award. Dividends paid with respect to Restricted Stock in property other than shares of Stock or rights to acquire shares of Stock shall be paid to the recipient of the Restricted Stock Award currently. Dividends paid in shares of Stock or rights to
acquire shares of Stock shall be added to and become a part of the Restricted Stock. In the case of dividends paid in cash, at the discretion of the Committee, such dividends shall either (i) be accumulated in cash and paid to the Holder
(without interest) when the underlying Restricted Stock becomes vested, or (ii) be added to and become a part of the Restricted Stock, with the number of shares of Stock added to the Restricted Stock determined by dividing the amount of the
cash dividend by the Fair Market Value of a share of Stock on the date of dividend payment. During the Period of Restriction, certificates representing the Restricted Stock shall be registered in the Holder’s name and bear a restrictive legend
to the effect that ownership of such Restricted Stock, and the enjoyment of all rights appurtenant thereto, are subject to the restrictions, terms, and conditions provided in the Plan and the applicable Award Agreement. Such certificates shall be
deposited by the recipient with the Secretary of the Company or such other officer of the Company as may be designated by the Committee, together with all stock powers or other instruments of assignment, each endorsed in blank, which will permit
transfer to the Company of all or any portion of the Restricted Stock which shall be forfeited in accordance with the Plan and the applicable Award Agreement. The foregoing to the contrary notwithstanding, the Committee may, in its discretion,
provide that a Holder’s ownership of Restricted Stock prior to the lapse of the Period of Restriction or any other applicable restrictions shall, in lieu of such certificates, be evidenced by a “book entry” (i.e., a computerized or
manual entry) in the records of the Company or its designated agent in the name of the Holder who has received such Award. Such records of the Company or such agent shall, absent manifest error, be binding on all Holders who receive Restricted Stock
Awards evidenced in such manner. 
 ARTICLE VIII 
 RESTRICTED STOCK UNIT AWARDS 
 8.1 Authority to Grant RSU
Awards. Subject to the terms and provisions of the Plan, the Committee, at any time, and from time to time, may grant RSU Awards under the Plan to eligible persons in such amounts and upon such terms as the Committee shall determine. The amount
of, the vesting and the transferability restrictions applicable to any RSU Award shall be determined by the Committee in its sole discretion. The Committee or its delegate shall maintain a bookkeeping ledger account which reflects the number of RSUs
credited under the Plan for the benefit of a Holder. 
 8.2 RSU Award. An RSU Award shall be similar in nature to a
Restricted Stock Award except that no shares of Stock are actually transferred to the Holder until a later date specified in the applicable Award Agreement. Each RSU shall have a value equal to the Fair Market Value of a share of Stock. 

8.3 RSU Award Agreement. Each RSU Award shall be evidenced by an Award Agreement that contains any Substantial Risk of Forfeiture,
transferability restrictions, form and time of payment provisions and other provisions not inconsistent with the Plan as the Committee may specify. Unless the forfeiture restrictions of such RSU Award otherwise lapse in accordance with this Plan or
the Award Agreement, the forfeiture provisions of each RSU Award granted under the Plan shall survive for a minimum of at least one (1) year. 
 8.4 Form of Payment Under RSU Award. Payment under an RSU Award shall be made in either cash or shares of Stock as specified in the applicable Award Agreement. 

8.5 Time of Payment Under RSU Award. A Holder’s payment under an RSU Award shall be made at such time as
is specified in the applicable Award Agreement. The Award Agreement shall specify that the payment will be made (1) by a date that is no later than the date that is two and one-half (2 1/2) months after the end of the 

  
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Fiscal Year in which the RSU Award payment is no longer subject to a Substantial Risk of Forfeiture or (2) at a time or upon an event that is permissible under Section 409A. 

ARTICLE IX 

PERFORMANCE STOCK AWARDS AND PERFORMANCE UNIT AWARDS 

9.1 Authority to Grant Performance Stock Awards and Performance Unit Awards. Subject to the terms and provisions of the Plan, the
Committee, at any time, and from time to time, may grant Performance Stock Awards and Performance Unit Awards under the Plan to eligible persons in such amounts and upon such terms as the Committee shall determine. The amount of, the vesting and the
transferability restrictions applicable to any Performance Stock Award or Performance Unit Award shall be based upon the attainment of such Performance Goals as the Committee may determine. If the Committee imposes vesting or transferability
restrictions on a Holder’s rights with respect to Performance Stock or Performance Unit Awards, the Committee may issue such instructions to the Company’s share transfer agent in connection therewith as it deems appropriate. The Committee
may also cause the certificate for shares of Stock issued pursuant to a Performance Stock or Performance Unit Award to be imprinted with any legend which counsel for the Company considers advisable with respect to the restrictions or, should the
shares of Stock be represented by book or electronic entry rather than a certificate, the Company may take such steps to restrict transfer of the shares of Stock as counsel for the Company considers necessary or advisable to comply with applicable
law. 
 9.2 Performance Goals. The Performance Goals upon which the payment or vesting of an Award to a Covered Employee
that is intended to qualify as Performance-Based Compensation shall be limited to one or more of the following Performance Goals, which may be based on one or more business criteria that apply to the Holder, one or more business units of the
Company, or the Company as a whole: earnings per share, adjusted earnings per share (as adjusted for non-cash and non-recurring charges, and extraordinary, one-time, or unusual items), total shareholder return, CAGR, cash return on capitalization,
increased revenue, increased EBITDAX, adjusted EBITDAX (as adjusted for non-cash and non-recurring charges, and extraordinary, one-time, or unusual items), EBITDAX per share, adjusted EBITDAX per share (as adjusted for non-cash and non-recurring
charges, and extraordinary, one-time, or unusual items ), net income, adjusted net income (as adjusted for non-cash and non-recurring charges, and extraordinary, one-time, or unusual items), stock price, market capitalization, book capitalization,
capital expenditures, return on equity, return on assets, return on net assets, operating income, cash flow from operations before changes in assets and liabilities, operating cash flow per share, cash flow from operations, debt reduction, drill-bit
finding and development costs, all-in finding and development costs, lifting costs per unit, general and administrative expenses, exploration expenses, production, production growth, production growth per share, injection volumes, reserve
replacement ratio, reserve growth, reserve growth per share, enterprise value, liquids production growth, SEC PV-10, SEC PV-10 per share, enterprise value to EBITDAX ratio, 3 year reserves CAGR, LOE/mcfe, debt/mcfe, debt/proved reserves,
debt/proved developed reserves, reserves to production ratio, debt to EBITDAX ratio, interest expense to EBITDAX ratio, fixed charge coverage ratio, discretionary cash flow, or discretionary cash flow per share. Goals may also be based on
performance relative to a peer group of companies. 
 Unless otherwise stated, such a Performance Goal need not be based upon an
increase or positive result under a particular business criterion and could include, for example, maintaining the status quo or limiting economic losses (measured, in each case, by reference to specific business criteria). For Awards that are
intended to qualify as Performance-Based Compensation, in interpreting Plan provisions applicable to Performance Goals and Performance Stock or Performance Unit Awards, it is intended that the Plan will conform with the standards of
Section 162(m) and the Committee in establishing such goals and interpreting the Plan shall be guided by such provisions. Prior to the payment of any compensation based on the achievement of Performance Goals, the Committee must certify in
writing that applicable Performance Goals and any of the material terms thereof were, in fact, satisfied. Subject to the foregoing provisions, the terms, conditions and limitations applicable to any

  
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Performance Stock or Performance Unit Awards made pursuant to the Plan shall be determined by the Committee. The Committee may make adjustments to the terms and conditions of, and the Performance
Goals included in, Performance Stock Awards or Performance Unit Awards in recognition of non-cash and non-recurring charges, and extraordinary, one-time, or unusual events (including, without limitation, the events described in Section 4.5)
affecting the Company or financial statements of the Company or of changes in applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate to prevent unintended dilution or
enlargement of the benefits or potential benefits intended to be made available under the Plan; provided, however, that no such adjustment shall be made if the effect would be to cause an Award that was intended to qualify for the
performance-based compensation exception under Section 162(m) to fail such qualification. The determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and binding upon Participants, the Company, and all other
interested persons. 
 9.3 Time of Establishment of Performance Goals. With respect to a Covered Employee, a Performance
Goal for a particular Performance Stock Award or Performance Unit Award must be established by the Committee prior to the earlier to occur of (a) 90 days after the commencement of the period of service to which the Performance Goal relates or
(b) the lapse of 25 percent of the period of service, and in any event while the outcome is substantially uncertain. 
 9.4
Written Agreement. Each Performance Stock Award or Performance Unit Award shall be evidenced by an Award Agreement that contains any vesting, transferability restrictions and other provisions not inconsistent with the Plan as the Committee
may specify. 
 9.5 Form of Payment Under Performance Unit Award. Payment under a Performance Unit Award shall be made in
cash and/or shares of Stock as specified in the Holder’s Award Agreement. 
 9.6 Time of Payment
Under Performance Unit Award. A Holder’s payment under a Performance Unit Award shall be made at such time as is specified in the applicable Award Agreement. The Award Agreement shall specify that the payment will be made (i) by a date
that is no later than the date that is two and one-half (2 1/2) months after the end of the calendar year in which the Performance Unit Award payment is no longer subject to a
Substantial Risk of Forfeiture or (ii) at a time or upon an event that is permissible under Section 409A. 

9.7 Holder’s Rights as Stockholder With Respect to a Performance Stock Award. Subject to the terms and conditions of the
Plan, each Holder of a Performance Stock Award shall have all the rights of a stockholder with respect to the shares of Stock issued to the Holder pursuant to the Award during any period in which such issued shares of Stock are subject to forfeiture
and restrictions on transfer, including without limitation, the right to vote such shares of Stock. Dividends paid with respect to Performance Stock Awards in property other than shares of Stock or rights to acquire shares of Stock shall be paid to
the recipient of the Performance Stock Award currently. Dividends paid in shares of Stock or rights to acquire shares of Stock shall be added to and become a part of the Performance Stock Award. In the case of dividends paid in cash, at the
discretion of the Committee, such dividends shall either (i) be accumulated in cash and paid to the Holder (without interest) when the underlying shares of Stock become vested, or (ii) be added to and become a part of the Performance Stock
Award, with the number of shares of Stock added to the Performance Stock Award determined by dividing the amount of the cash dividend by the Fair Market Value of a share of Stock on the date of dividend payment. 

9.8 Increases Prohibited. None of the Committee or the Board may increase the amount of compensation payable under a Performance
Stock or Performance Unit Award. If the time at which a Performance Stock or Performance Unit Award will vest or be paid is accelerated for any reason, the number of shares of Stock subject to, or the amount payable under, the Performance Stock or
Performance Unit Award shall be reduced pursuant to Department of Treasury Regulation section 1.162-27(e)(2)(iii) to reasonably reflect the time value of money. 

  
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 ARTICLE X 
 DEFERRED SHARES 
 To the extent consistent with the provisions of
this Plan, including Section 19.18, the Committee may authorize grants of Deferred Shares to Participants upon such terms and conditions as the Committee may determine in accordance with the following provisions: 

10.1 Deferred Compensation. Each grant shall constitute the agreement by the Company to issue or transfer Stock to the Participant
in the future in consideration of the performance of services, subject to the fulfillment during the Deferral Period of such conditions as the Committee may specify. 
 10.2 Consideration. Each grant may be made without the payment of additional consideration from the Participant or in consideration of a payment by the Participant that is less than the Fair Market
Value on the date the Award is granted. 
 10.3 Deferral Period. Each grant shall provide that the Deferred Shares
covered thereby shall be subject to a Deferral Period, which shall be fixed by the Committee on the date the Award was granted, and any grant or sale may provide for the earlier termination of such period in the event of a Change in Control of the
Company or other similar transaction or event. 
 10.4 Dividend Equivalents and Other Ownership Rights. During the
Deferral Period, the Participant shall not have any right to transfer any rights under the Award, shall not have any rights of ownership in the Deferred Shares and shall not have any right to vote such Deferred Shares, but the Committee may on or
after the date the Award was granted authorize the payment of dividend equivalents on such Deferred Shares in cash or additional Stock on a current, deferred or contingent basis, in accordance with Article XI. 

10.5 Performance Objectives. Any grant or the vesting thereof may be further conditioned upon the attainment of Performance Goals
established by the Committee in accordance with the applicable provisions of Article. 
 10.6 Award Agreement. Each grant
shall be evidenced by an Award Agreement containing such terms and provisions as the Committee may determine consistent with this Plan. 
 ARTICLE XI 
 DIVIDEND EQUIVALENTS 

Any eligible person selected by the Committee may be granted Dividend Equivalents based on the dividends declared on shares of Stock that
are subject to any Award for which actual dividends are not payable, to be credited as of dividend payment dates, during the period between the date the Award is granted and the date the Award is exercised, vests or expires, as determined by the
Committee; provided, that in no event shall Dividend Equivalents be granted with respect to Options or SARs. Such Dividend Equivalents shall be converted to cash or additional shares by such formula and at such time and subject to such limitations
as may be determined by the Committee. In addition, Dividend Equivalents granted with respect to Performance-Based Compensation shall not be distributed during the relevant performance period or to the extent any such Award is otherwise unearned.
Notwithstanding the foregoing, any deferral of the payment of a Dividend Equivalent will comply with Section 409A. 

  
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 ARTICLE XII 
 ANNUAL INCENTIVE AWARDS 
 12.1 Authority to Grant Annual
Incentive Awards. Subject to the terms and provisions of the Plan, the Committee, at any time, and from time to time, may grant Annual Incentive Awards under the Plan to Employees who, by the nature and scope of their positions, regularly
directly make or influence policy decisions which significantly impact the overall results or success of the Company in such amounts and upon such terms as the Committee shall determine. The amount of any Annual Incentive Awards shall be based on
the attainment of such Performance Goals as the Committee may determine. 
 12.2 Performance Goals. A Performance Goal
must be objective such that a third party having knowledge of the relevant facts could determine whether the goal is met. Such a Performance Goal may be based on one or more business criteria that apply to the Holder, one or more business units of
the Company, or the Company as a whole, with reference to one or more of the following: earnings per share, adjusted earnings per share (as adjusted for non-cash and non-recurring charges, and extraordinary, one-time, or unusual items), total
shareholder return, CAGR, cash return on capitalization, increased revenue, increased EBITDAX, adjusted EBITDAX (as adjusted for non-cash and non-recurring charges, and extraordinary, one-time, or unusual items), EBITDAX per share, adjusted EBITDAX
per share (as adjusted for non-cash and non-recurring charges, and extraordinary, one-time, or unusual items ), net income, adjusted net income (as adjusted for non-cash and non-recurring charges, and extraordinary, one-time, or unusual items),
stock price, market capitalization, book capitalization, capital expenditures, return on equity, return on assets, return on net assets, operating income, cash flow from operations before changes in assets and liabilities, operating cash flow per
share, cash flow from operations, debt reduction, drill-bit finding and development costs, all-in finding and development costs, lifting costs per unit, general and administrative expenses, exploration expenses, production, production growth,
production growth per share, injection volumes, reserve replacement ratio, reserve growth, reserve growth per share, enterprise value, liquids production growth, SEC PV-10, SEC PV-10 per share, enterprise value to EBITDAX ratio, 3 year reserves
CAGR, LOE/mcfe, debt/mcfe, debt/proved reserves, debt/proved developed reserves, reserves to production ratio, debt to EBITDAX ratio, interest expense to EBITDAX ratio, fixed charge coverage ratio, discretionary cash flow, or discretionary cash flow
per share. Goals may also be based on performance relative to a peer group of companies. 
 Unless otherwise stated, such a
Performance Goal need not be based upon an increase or positive result under a particular business criterion and could include, for example, maintaining the status quo or limiting economic losses (measured, in each case, by reference to specific
business criteria). For Annual Incentive Awards that are intended to qualify as Performance-Based Compensation, in interpreting Plan provisions applicable to Performance Goals, it is intended that the Plan will conform with the standards of
Section 162(m), and the Committee in establishing such goals and interpreting the Plan shall be guided by such provisions. Prior to the payment of any compensation based on the achievement of Performance Goals, the Committee must certify in
writing that applicable Performance Goals and any of the material terms thereof were, in fact, satisfied. Subject to the foregoing provisions, the terms, conditions and limitations applicable to any Annual Incentive Awards made pursuant to the Plan
shall be determined by the Committee. The Committee may make adjustments to the terms and conditions of, and the Performance Goals included in, Annual Incentive Awards in recognition of non-cash and non-recurring charges, and extraordinary,
one-time, or unusual events (including, without limitation, the events described in Section 4.5) affecting the Company or financial statements of the Company or of changes in applicable laws, regulations, or accounting principles, whenever the
Committee determines that such adjustments are appropriate to prevent unintended dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan; provided, however, that no such adjustment
shall be made if the effect would be to cause an Annual Incentive Award that was intended to qualify for the performance-based compensation exception under Section 162(m) to fail such qualification. The determination of the Committee as to the
foregoing adjustments, if any, shall be conclusive and binding upon Participants, the Company, and all other interested persons. 

  
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 12.3 Time of Establishment of Performance Goals. A Performance Goal for a particular
Annual Incentive Award must be established by the Committee prior to the earlier to occur of (a) 90 days after the commencement of the period of service to which the Performance Goal relates or (b) the lapse of 25 percent of the period of
service, and in any event while the outcome is substantially uncertain. 
 12.4 Written Agreement. Each Annual Incentive
Award shall be evidenced by an Award Agreement that contains any vesting, transferability restrictions and other provisions not inconsistent with the Plan as the Committee may specify. 

12.5 Form of Payment Under Annual Incentive Award. Payment under an Annual Incentive Award shall be made in cash. 

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

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

  
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 ARTICLE XIV 
 CASH-BASED AWARDS 
 14.1 Authority to Grant Cash-Based
Awards. Subject to the terms and provisions of the Plan, the Committee, at any time, and from time to time, may grant Cash-Based Awards under the Plan to eligible persons in such amounts and upon such terms as the Committee shall determine.

 14.2 Value of Cash-Based Award. Each Cash-Based Award shall specify a payment amount or payment range as determined by
the Committee. 
 14.3 Payment of Cash-Based Award. Payment, if any, with respect to a Cash-Based Award shall be made in
accordance with the terms of the Award, in cash. 
 14.4 Termination of Employment. The Committee shall determine the
extent to which a Holder’s rights with respect to Cash-Based Awards shall be affected by the Holder’s Termination of Employment. Such provisions shall be determined in the sole discretion of the Committee and need not be uniform among all
Cash-Based Awards issued pursuant to the Plan. 
 ARTICLE XV 

SUBSTITUTION AWARDS 
 Awards may be granted under the Plan from time to time in substitution for stock options and other awards held by employees of other entities who are about to become Employees, or whose employer is about
to become an Affiliate as the result of a merger or consolidation of the Company with another corporation, or the acquisition by the Company of substantially all the assets of another corporation, or the acquisition by the Company of at least fifty
percent (50%) of the issued and outstanding stock of another corporation as the result of which such other corporation will become a subsidiary of the Company. The terms and conditions of the substitute Awards so granted may vary from the terms
and conditions set forth in the Plan to such extent as the Board at the time of grant may deem appropriate to conform, in whole or in part, to the provisions of the Award in substitution for which they are granted. 

ARTICLE XVI 
 CHANGE IN CONTROL OF THE COMPANY 
 16.1 Change in Control of the
Company. If the Participant has in effect an employment, retention, change of control, severance or similar agreement with the Company or any Affiliate that discusses the effect of a Change of Control on the Participant’s Awards, then such
agreement shall control. In all other cases, unless provided otherwise in an Award Agreement or by the Board or Committee prior to the date of the Change of Control, in the event of a Change of Control: 

(a) If the purchaser, successor or surviving corporation (or parent thereof) (the “Survivor”) so agrees, some or all
outstanding Awards shall be assumed, or replaced with the same type of Award with similar terms and conditions, by the Survivor in the Change of Control transaction. If applicable, each Award which is assumed by the Survivor shall be appropriately
adjusted, immediately after such Change of Control, to apply to the number and class of securities which would have been issuable to the Participant upon the consummation of such Change of Control had the Award been exercised, vested or earned
immediately prior to such Change of Control, and other appropriate adjustments in the terms and conditions of the Award shall be made. 

  
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 (b) To the extent the Survivor in the Change of Control transaction does not agree to assume
the Awards or issue replacement awards as provided in clause (i), then immediately prior to the date of the Change of Control: 

(i) Each Option or SAR that is then held by a Participant who is employed by or in the service of the Company or an Affiliate shall
become immediately and fully vested, and, unless otherwise determined by the Board or Committee, all Options and SARs shall be cancelled on the date of the Change of Control in exchange for a cash payment equal to the excess of the Change of Control
price of the Shares covered by the Option or SAR that is so cancelled over the purchase or grant price of such Shares under the Award. 
 (ii) Restricted Stock and Restricted Stock Units (that are not Performance-Based Compensation) that are not then vested shall vest. 

(iii) All Performance Stock Awards and Performance Unit Awards that are earned but not yet paid shall be paid upon the Change of Control
at the level earned, and all Performance Stock Awards and Performance Unit Awards for which the performance period has not expired shall, unless otherwise determined by the Board or Committee, be cancelled in exchange for a cash payment to be made
within thirty (30) days after the Change of Control equal to the product of (1) the target value payable to the Participant under such Award and (2) a fraction, the numerator of which is the number of days after the first day of the
performance period on which the Change of Control occurs and the denominator of which is the number of days in the performance period. 
 (iv) All Dividend Equivalent Units that are not vested shall vest and be paid in cash, and all other Awards that are not vested shall, unless otherwise determined by the Board or Committee, vest and if an
amount is payable under such vested Award, such amount shall be paid in cash based on the value of the Award. 
 (c) In the
event that (1) the Survivor terminates the Participant’s employment or service without Cause (as defined in the agreement relating to the Award or, if not defined therein, as defined herein) or (2) if the Participant has in effect an
employment, retention, change of control, severance or similar agreement with the Company or any Affiliate that contemplates the termination of his or her employment or service for good reason, and the Participant terminates his or her employment or
service for good reason (as defined in such agreement), in the case of either (1) or (2) within twenty-four (24) months following a Change of Control, then the following provisions shall apply to any assumed Awards or replacement
awards and any Awards not cancelled in connection with the Change of Control pursuant to this Plan: 
 (i) Effective upon the
date of the Participant’s termination of employment or service, all outstanding Awards or replacement awards automatically shall vest (assuming for any Award the vesting of which is subject to Performance Goals, that such goals had been met at
the target level); and 
 (ii) With respect to Options or SARs, such Awards or replacement awards shall be cancelled as of the
date of such termination in exchange for a payment in cash and/or Stock (which may include shares or other securities of the Survivor) equal to the excess of the Fair Market Value of the Stock on the date of such termination over the exercise or
grant price of such Stock under the Award multiplied by the number of shares of Stock underlying the Option or SAR remaining unexercised; and 
 (iii) With respect to Restricted Stock or RSUs, such Awards or replacement awards shall be cancelled as of the date of such termination in exchange for a payment in cash and/or Stock (which may include
shares or other securities of the Survivor) equal to the Fair Market Value of the Stock on the date of such termination; and 

(iv) With respect to Performance Stock Awards and Performance Stock Units that are earned but not yet paid, such Awards or replacement
awards shall be paid upon the termination of employment or service at the level earned, and with respect to Performance Stock Awards and Performance Stock Units for which the 

  
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performance period has not expired, such Awards shall be cancelled in exchange for a cash payment to be made within thirty (30) days after the date of termination equal to the product of
(1) the target value payable to the Participant under his Award and (2) a fraction, the numerator of which is the number of days after the first day of the performance period on which the termination occurs and the denominator of which is
the number of days in the performance period; and 
 (v) With respect to other Awards, such Awards or replacement awards shall
be cancelled as of the date of such termination in exchange for a payment in cash in an amount equal to the value of the Award. If the value of an Award is based on the Fair Market Value of Stock, Fair Market Value shall be deemed to mean the per
share Change of Control price. The Board or Committee shall determine the per share Change of Control price paid or deemed paid in the Change of Control transaction. 
 ARTICLE XVII 
 ADMINISTRATION 

17.1 Awards. The Plan shall be administered by the Committee or, in the absence of the Committee, the Plan shall be administered
by the Board. The members of the Committee shall serve at the discretion of the Board. The Committee shall have full and exclusive power and authority to administer the Plan and to take all actions that the Plan expressly contemplates or are
necessary or appropriate in connection with the administration of the Plan with respect to Awards granted under the Plan. 

17.2 Authority of the Committee. The Committee shall have full and exclusive power to interpret and apply the terms and provisions
of the Plan and Awards made under the Plan, and to adopt such rules, regulations and guidelines for implementing the Plan as the Committee may deem necessary or proper, all of which powers shall be exercised in the best interests of the Company and
in keeping with the objectives of the Plan. A majority of the members of the Committee shall constitute a quorum for the transaction of business relating to the Plan or Awards made under the Plan, and the vote of a majority of those members present
at any meeting shall decide any question brought before that meeting. Any decision or determination reduced to writing and signed by a majority of the members shall be as effective as if it had been made by a majority vote at a meeting properly
called and held. All questions of interpretation and application of the Plan, or as to Awards granted under the Plan, shall be subject to the determination, which shall be final and binding, of a majority of the whole Committee. No member of the
Committee shall be liable for any act or omission of any other member of the Committee or for any act or omission on his own part, including but not limited to the exercise of any power or discretion given to him under the Plan, except those
resulting from his own gross negligence or willful misconduct. In carrying out its authority under the Plan, the Committee shall have full and final authority and discretion, including but not limited to the following rights, powers and authorities
to (a) determine the persons to whom and the time or times at which Awards will be made; (b) determine the number and exercise price of shares of Stock covered in each Award subject to the terms and provisions of the Plan;
(c) determine the terms, provisions and conditions of each Award, which need not be identical and need not match the default terms set forth in the Plan; (d) accelerate the time at which any outstanding Award will vest; (e) prescribe,
amend and rescind rules and regulations relating to administration of the Plan; and (f) make all other determinations and take all other actions deemed necessary, appropriate or advisable for the proper administration of the Plan. 

The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any Award to a Holder in the
manner and to the extent the Committee deems necessary or desirable to further the Plan’s objectives. Further, the Committee shall make all other determinations that may be necessary or advisable for the administration of the Plan. As permitted
by law and the terms and provisions of the Plan, the Committee may delegate to one or more of its members or to one or more officers of the Company, and/or its Affiliates or to one or more agents or advisors such administrative duties or powers as
it may deem advisable, and the Committee or any person to whom it has delegated duties or powers as aforesaid may employ one or 

  
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more persons to render advice with respect to any responsibility the Committee or such person may have under the Plan. The Committee may, by resolution, authorize one or more officers of the
Company to do one or both of the following on the same basis as can the Committee: (a) designate Employees, Directors or Third Party Service Providers to be recipients of Awards; and (b) determine the size of any such Awards;
provided, however, (i) the Committee shall not delegate such responsibilities to any such officer for Awards granted to an Employee that is considered an Insider; (ii) the resolution providing such authorization sets forth
the total number of Awards such officer(s) may grant; and (iii) the officer(s) shall report periodically to the Committee regarding the nature and scope of the Awards granted pursuant to the authority delegated. The Committee may employ
attorneys, consultants, accountants, agents, and other persons, any of whom may be an Employee, and the Committee, the Company, and its officers and Board shall be entitled to rely upon the advice, opinions, or valuations of any such persons.

 17.3 Decisions Binding. All determinations and decisions made by the Committee or the Board, as the case may be,
pursuant to the provisions of the Plan and all related orders and resolutions of the Committee or the Board, as the case may be, shall be final, conclusive and binding on all persons, including the Company, its Affiliates, its stockholders, Holders
and the estates and beneficiaries of Holders. 
 17.4 No Liability. Under no circumstances shall the Company, its
Affiliates, the Board or the Committee incur liability for any indirect, incidental, consequential or special damages (including lost profits) of any form incurred by any person, whether or not foreseeable and regardless of the form of the act in
which such a claim may be brought, with respect to the Plan or the Company’s, its Affiliates’, the Committee’s or the Board’s roles in connection with the Plan. 

ARTICLE XVIII 
 AMENDMENT OR TERMINATION OF PLAN 
 18.1 Amendment, Modification,
Suspension, and Termination. Subject to Section 18.2, the Committee may, at any time and from time to time, alter, amend, modify, suspend, or terminate the Plan and any Award Agreement in whole or in part; provided, however,
that no amendment of the Plan shall be made without stockholder approval if stockholder approval is required by applicable law or stock exchange rules. 
 18.2 Awards Previously Granted. Notwithstanding any other provision of the Plan to the contrary, no termination, amendment, suspension, or modification of the Plan or an Award Agreement shall
adversely affect in any material way any Award previously granted under the Plan if and to the extent such Award is vested, without the written consent of the Holder holding such Award, subject to Sections 4.5, 16.1 and 19.18. 

ARTICLE XIX 
 MISCELLANEOUS 
 19.1 Unfunded Plan/No Establishment of a Trust
Fund. Holders shall have no right, title, or interest whatsoever in or to any investments that the Company or any of its Affiliates may make to aid in meeting obligations under the Plan. Nothing contained in the Plan, and no action taken
pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any Holder, beneficiary, legal representative, or any other person. To the extent that any person acquires a
right to receive payments from the Company under the Plan, such right shall be no greater than the right of an unsecured general creditor of the Company. All payments to be made hereunder shall be paid from the general funds of the Company and no
special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts, except as expressly set forth in the Plan. No property shall be set aside nor shall a trust fund of any kind be established
to secure the rights of any Holder under the Plan. The Plan is not intended to be subject to the Employee Retirement Income Security Act of 1974, as amended. 

  
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 19.2 No Employment Obligation. The granting of any Award shall not constitute an
employment contract, express or implied, nor impose upon the Company or any Affiliate any obligation to employ or continue to employ, or utilize the services of, any Holder. The right of the Company or any Affiliate to terminate the employment of
any person shall not be diminished or affected by reason of the fact that an Award has been granted to him, and nothing in the Plan or an Award Agreement shall interfere with or limit in any way the right of the Company or its Affiliates to
terminate any Holder’s employment at any time or for any reason not prohibited by law. 
 19.3 Tax Withholding. The
Company or any Affiliate shall be entitled to deduct from other compensation payable to each Holder any sums required by federal, state or local tax law to be withheld with respect to the vesting or exercise of an Award or lapse of restrictions on
an Award. In the alternative, the Company may require the Holder (or other person validly exercising the Award) to pay such sums for taxes directly to the Company or any Affiliate in cash or by check within one day after the date of vesting,
exercise or lapse of restrictions. In the discretion of the Committee, (i) the Company may reduce the number of shares of Stock issued to the Holder upon such Holder’s exercise of an Option to satisfy the tax withholding obligations of the
Company or an Affiliate; or (ii) the Company may instruct the stock plan administrator to sell that the number of shares of Stock needed to satisfy the tax withholding obligations of the Company, or withhold or cause to be withheld a number of
shares of Stock deliverable upon the lapse of any forfeiture restrictions to satisfy the tax withholding obligations of the Company or an Affiliate; provided that the Fair Market Value of the shares of Stock held back shall not exceed the
Company’s or the Affiliate’s Minimum Statutory Tax Withholding Obligation. 
 The Committee may, in its discretion,
permit a Holder to satisfy any Minimum Statutory Tax Withholding Obligation arising upon the vesting of an Award by delivering to the Holder a reduced number of shares of Stock in the manner specified herein. If permitted by the Committee, at the
time of vesting of shares under the Award, the Company shall (a) calculate the amount of the Company’s or an Affiliate’s Minimum Statutory Tax Withholding Obligation on the assumption that all such shares of Stock vested under the
Award are made available for delivery, (b) reduce the number of such shares of Stock made available for delivery so that the Fair Market Value of the shares of Stock withheld on the vesting date approximates the Company’s or an
Affiliate’s Minimum Statutory Tax Withholding Obligation and (c) in lieu of the withheld shares of Stock, remit cash to the United States Treasury and/or other applicable governmental authorities, on behalf of the Holder, in the amount of
the Minimum Statutory Tax Withholding Obligation. The Company shall withhold only whole shares of Stock to satisfy its Minimum Statutory Tax Withholding Obligation. Where the Fair Market Value of the withheld shares of Stock does not equal the
amount of the Minimum Statutory Tax Withholding Obligation, the Company shall withhold shares of Stock with a Fair Market Value slightly less than the amount of the Minimum Statutory Tax Withholding Obligation and the Holder must satisfy the
remaining minimum withholding obligation in some other manner permitted under this Section 19.3. The withheld shares of Stock not made available for delivery by the Company shall be retained as treasury shares or will be cancelled and the
Holder’s right, title and interest in such shares of Stock shall terminate. 
 The Company shall have no obligation upon
vesting or exercise of any Award or lapse of restrictions on an Award until the Company or an Affiliate has received payment sufficient to cover the Minimum Statutory Tax Withholding Obligation with respect to that vesting, exercise or lapse of
restrictions. Neither the Company nor any Affiliate shall be obligated to advise a Holder of the existence of the tax or the amount which it will be required to withhold. 
 19.4 Gender and Number. If the context requires, words of one gender when used in the Plan shall include the other and words used in the singular or plural shall include the other. 

19.5 Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or
invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 

  
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 19.6 Headings. Headings of Articles and Sections are included for convenience of
reference only and do not constitute part of the Plan and shall not be used in construing the terms and provisions of the Plan. 

19.7 Other Compensation Plans. Except as otherwise expressly stated herein, the adoption of the Plan shall not affect any other
option, incentive or other compensation or benefit plans in effect for the Company or any Affiliate, nor shall the Plan preclude the Company from establishing any other forms of incentive compensation arrangements for Employees, Directors or Third
Party Service Providers. 
 19.8 Retirement and Welfare Plans. Neither Awards made under the Plan nor shares of Stock or
cash paid pursuant to such Awards, may be included as “compensation” for purposes of computing the benefits payable to any Participant under the Company’s or any Affiliate’s retirement plans (both qualified and non-qualified) or
welfare benefit plans unless such other plan expressly provides that such compensation shall be taken into account in computing a participant’s benefit. 
 19.9 Other Awards. The grant of an Award shall not confer upon the Holder the right to receive any future or other Awards under the Plan, whether or not Awards may be granted to similarly situated
Holders, or the right to receive future Awards upon the same terms or conditions as previously granted. 
 19.10
Successors. All obligations of the Company under the Plan with respect to Awards granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase,
merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. 
 19.11 Law
Limitations/Governmental Approvals. The granting of Awards and the issuance of shares of Stock under the Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national
securities exchanges as may be required. 
 19.12 Delivery of Title. The Company shall have no obligation to issue or
deliver evidence of title for shares of Stock issued under the Plan prior to (a) obtaining any approvals from governmental agencies that the Company determines are necessary or advisable; and (b) completion of any registration or other
qualification of the Stock under any applicable national or foreign law or ruling of any governmental body that the Company determines to be necessary or advisable. 
 19.13 Inability to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be
necessary to the lawful issuance and sale of any shares of Stock hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such shares of Stock as to which such requisite authority shall not have been obtained.

 19.14 Investment Representations. The Committee may require any person receiving Stock pursuant to an Award under the
Plan to represent and warrant in writing that the person is acquiring the shares of Stock for investment and without any present intention to sell or distribute such Stock. 
 19.15 Persons Residing Outside of the United States. Notwithstanding any provision of the Plan to the contrary, in order to comply with the laws in other countries in which the Company or any of
its Affiliates operates or has Employees, the Committee, in its sole discretion, shall have the power and authority to (a) determine which Affiliates shall be covered by the Plan; (b) determine which persons employed outside the United
States are eligible to participate in the Plan; (c) amend or vary the terms and provisions of the Plan and the terms and conditions of any Award granted to persons who reside outside the United States; (d) establish subplans and modify
exercise procedures and other terms and procedures to the extent such actions may be necessary or advisable – any subplans and modifications to Plan terms and procedures established under this Section 19.15 by the Committee shall be
attached to the Plan document as Appendices; and (e) take any action, before or after an Award is made, that it deems advisable to obtain or comply with any necessary local 

  
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government regulatory exemptions or approvals. Notwithstanding the above, the Committee may not take any actions hereunder, and no Awards shall be granted, that would violate the Securities
Exchange Act of 1934, as amended, the Code, any securities law or governing statute or any other applicable law. 
 19.16
Arbitration of Disputes. Any controversy arising out of or relating to the Plan or an Award Agreement shall be resolved by arbitration conducted pursuant to the arbitration rules of the American Arbitration Association. The arbitration shall
be final and binding on the parties. 
 19.17 Governing Law. The provisions of the Plan and the rights of all persons
claiming thereunder shall be construed, administered and governed under the laws of the State of Delaware, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan to the
substantive law of another jurisdiction. Unless otherwise provided in the Award Agreement, recipients of an Award under the Plan are deemed to submit to the exclusive jurisdiction and venue of the federal or state courts of Pennsylvania, to resolve
any and all issues that may arise out of or relate to the Plan or any related Award Agreement. 
 19.18 Section 409A.
Notwithstanding any provision of the Plan or an Award Agreement to the contrary, if any Award or benefit provided under this Plan is subject to the provisions of Section 409A, the provisions of the Plan and any applicable Award Agreement shall
be administered, interpreted and construed in a manner necessary to comply with Section 409A or an exception thereto (or disregarded to the extent such provision cannot be so administered, interpreted or construed). The following provisions
shall apply, as applicable: 
 (a) If a Participant is a Specified Employee and a payment subject to Section 409A (and not
excepted therefrom) to the Participant is due upon Separation from Service, such payment shall be delayed for a period of six (6) months after the date the Participant Separates from Service (or, if earlier, the death of the Participant). Any
payment that would otherwise have been due or owing during such six-month period will be paid on the first business day of the seventh month following the Participant’s Separation from Service, unless another compliant date is specified in the
applicable Award Agreement. 
 (b) For purposes of Section 409A, and to the extent applicable to any Award or benefit under
the Plan, it is intended that distribution events qualify as permissible distribution events for purposes of Section 409A and shall be interpreted and construed accordingly. Whether a Participant has Separated from Service will be determined
based on all of the facts and circumstances and, to the extent applicable to any Award or benefit, in accordance with the guidance issued under Section 409A. 
 (c) The Committee, in its discretion, may specify the conditions under which the payment of all or any portion of any cash compensation, Stock or other form of payment under an Award, may be deferred
until a later date. Deferrals shall be for such periods or until the occurrence of such events, and upon such terms and conditions, as the Committee shall determine in its discretion, in accordance with the provisions of Section 409A; provided,
however, that no deferral shall be permitted with respect to Options or SARs. 
 (d) The grant of Nonqualified Stock Options,
SARs and other stock rights subject to Section 409A shall be granted under terms and conditions consistent with Treas. Reg. § 1.409A-1(b)(5) such that any such Award does not constitute a deferral of compensation under Section 409A.
Accordingly, any such Award may be granted to Employees, Directors and Third Party Service Providers of the Company and Affiliates in which the Company has a controlling interest. In determining whether the Company has a controlling interest, the
rules of Treas. Reg. § 1.414(c)-2(b)(2)(i) shall apply; provided that the language “at least 50 percent” shall be used instead of “at least 80 percent” in each place it appears; provided, further, where legitimate business
reasons exist (within the meaning of Treas. Reg. § 1.409A-1(b)(5)(iii)(E)(i)), the language “at least 20 percent” shall be used instead of “at least 80 percent” in each place it appears. The rules of Treas. Reg. §§
1.414(c)-3 and 1.414(c)-4 shall apply for purposes of determining ownership interests. 
 (e) In no event shall any member of
the Board, the Committee or the Company (or its employees, officers or directors) have any liability to any Participant (or any other person) due to the failure of an Award to satisfy the requirements of Section 409A. 

  
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 19.19 Delegation of Authority. The Board or the Committee may, in its sole
discretion, delegate authority hereunder not already delegated by the terms hereof, including but not limited to delegating authority to select Participants, to grant Awards, to establish terms and conditions of Awards, or to amend, manage,
administer, interpret, construe or vary the Plan or any Awards or Award Agreements, to the extent permitted by applicable law or administrative or regulatory rule. 
 19.20 Clawback. Each Participant agrees to reimburse the Company with respect to any Award granted under the Plan to the extent required by any clawback or recoupment policy of the Company now in
effect or as may be adopted by the Company from time to time or as otherwise required by applicable law. 
 19.21 Retention
Requirements. Shares of Stock acquired by a Participant under this Plan may be subject to share retention guidelines or minimum holding requirements established by the Company. 

  
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