Document:

EX-10.6

 Exhibit 10.6 

Execution Version 
 PLEDGE
AND SECURITY AGREEMENT 
 WEST MARICOPA
COMBINE, INC. 
 THIS PLEDGE AND SECURITY
AGREEMENT (this “Agreement”) dated as of June 24, 2016, by and among WEST MARICOPA COMBINE, INC., an Arizona corporation, whose address for notice is
21410 North 19th Avenue, Suite 220, Phoenix, AZ 85027 (“Pledgor”), is in favor of U.S. Bank National Association, a national banking association, whose address for notice is 101 North First Avenue, Suite 1600, Phoenix, Arizona
85003, Attention: M. Ambriz-Reyes (Global Water Resources, Inc.), in its capacity as collateral agent for the benefit of the Note holders (together with its successors and permitted assigns in such capacity, the “Collateral
Agent”) pursuant to that certain Collateral Agency Agreement dated as of June 24, 2016 between the Collateral Agent, the Purchasers and Global Water Resources, Inc., a Delaware corporation (the “Company”). 

PRELIMINARY STATEMENT 

WHEREAS, the Company and the Purchasers are parties to that certain Note Purchase Agreement, dated as of May 20, 2016 (as
the same may be supplemented, amended, restated or otherwise modified from time to time, the “Note Agreement”), pursuant to which the Purchasers have committed to purchase Notes from the Company in the amount of $115,000,000,
consisting of $28,750,000 aggregate principal amount of 4.38% Senior Secured Notes, Series A, due June 15, 2028 and $86,250,000 aggregate principal amount of 4.58% Senior Secured Notes, Series B, due June 15, 2036; and 

WHEREAS, pursuant to those certain Guaranty Agreements (the “Guaranty Agreements”) dated as of
June 24, 2016 each of Global Water LLC, a Delaware limited liability company and the Pledgor have guaranteed the obligations of the Company under the Note Agreement and Notes; and 

WHEREAS, the Pledgor is the owner and holder of the shares of stock, limited liability company interests or other Equity
Interests (as defined below) of the Persons described in Schedule I attached hereto (the “Pledged Companies”); and 

WHEREAS, it is a condition precedent to the obligations of the Purchasers to purchase the Notes under the Note Agreement that
the Pledgor shall have executed and delivered this Agreement to the Collateral Agent for the benefit of the Secured Parties; and 

WHEREAS, the Pledgor desires to execute this Agreement in order to satisfy such condition precedent and to secure its
obligations under the Guaranty Agreement. 
 NOW THEREFORE, in consideration of the premises and in order to
induce the Purchasers to purchase the Notes, each of the Pledgor and the Collateral Agent hereby agrees as follows: 

			
	West Maricopa Combine, Inc.	  	Pledge and Security Agreement

 SECTION 1. DEFINED TERMS. 

(a) Each capitalized term used herein (including in the introductory paragraph and recitals hereof) and not defined herein shall have the
meaning assigned to such term in the Note Agreement. 
 (b) “ACC Regulations” means the applicable regulations, orders and
requirements of the Arizona Corporation Commission and applicable statutes administered by the Arizona Corporation Commission. 
 (c)
“Applicable Law” means all applicable laws, including all applicable provisions of constitutions, statutes, rules, ordinances, regulations and orders of all Governmental Authorities and all orders, rulings, writs and decrees of all
courts, tribunals and arbitrators. 
 (d) “Equity Interests” means with respect to any Person, all the shares of
capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such
Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or
such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other
interests are outstanding on any date of determination. 
 (e) “Indemnified Liabilities” means, collectively, any
and all liabilities, obligations, losses, damages, penalties, claims (including claims under Environmental Laws), actions, judgments, suits, costs (including the reasonable costs of any investigation, study, sampling, testing, abatement, cleanup,
removal, remediation or other response action necessary to remove, remediate, clean up or abate any Hazardous Materials), expenses and disbursements of any kind or nature whatsoever (including the reasonable fees and disbursements of counsel for
Indemnitees in connection with any investigative, administrative or judicial proceeding or hearing commenced or threatened by any Person, whether or not any such Indemnitee shall be designated as a party or a potential party thereto, and any
reasonable fees or expenses incurred by Indemnitees in enforcing this indemnity), whether direct or indirect and whether based on any Applicable Laws, including Environmental Laws), on common law or equitable cause or on contract or otherwise, that
may be imposed on, incurred by, or asserted against any such Indemnitee (regardless of whether any Indemnitee is a party thereof), in any manner relating to or arising out of (i) this Agreement or the other Note Documents or the transactions
contemplated hereby or thereby (including the use or intended use of the proceeds of the Notes, or any enforcement of any of the Note Documents (including any sale of, collection from, or other realization upon any of the Collateral)); or
(ii) any claim under Environmental Laws or any Hazardous Materials liability relating to or arising from, directly or indirectly, any past or present activity, operation, land ownership, or practice of the Pledgor or any of its Subsidiaries.

 (f) “Pledged Company” has the meaning set forth in the recitals. 

  
 -2- 

			
	West Maricopa Combine, Inc.	  	Pledge and Security Agreement

  
  

 (g) “Specified Account” means the segregated account of the Pledgor,
maintained with Wells Fargo Bank, N.A., with the last four digits of such account number being 5456, established to receive payments of dividends and distributions on Equity Interests owned by the Company or any Pledgor, and any and all replacements
or substitutions for such account established by the Company or any Pledgor, whether in the form of a deposit account or securities account. For the avoidance of doubt, a “Specified Account” shall not include any “collection
account”, deposit account, securities account or any other account in which the revenues of the regulated utilities are remitted or consolidated. 

(h) The term “UCC” means the Uniform Commercial Code as in effect on the date hereof in the State of New York; provided that
if by mandatory provisions of law, the perfection or the effect of perfection or non-perfection of the security interests granted pursuant to Section 2 hereof, as well as all other security interests created or assigned as additional security
for the Secured Obligations (as defined below in Section 2(c)) pursuant to the provisions of this Agreement, in any Collateral is governed by the UCC as in effect in any other jurisdiction other than the State of New York, “UCC” means
the UCC as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection or non-perfection. 

SECTION 2. PLEDGE AND GRANT OF SECURITY
INTEREST. 
 (a) To secure the Secured Obligations (as defined in Section 2(c) below) Pledgor grants to the
Collateral Agent, for the benefit of the Secured Parties, a lien on and security interest in, and acknowledges and agrees that the Collateral Agent has and shall continue to have a continuing lien on and security interest in, all right, title and
interest of the Pledgor, whether now owned or existing or hereafter created, acquired or arising, and regardless of where located, in and to all of the following, (all of the same, collectively, the “Collateral”): 

(i) all Equity Interests, including all shares, ownership, economic and management interests, and/or partnership interests in
any Person owned or held by Pledgor (ii) any and all payments and distributions of whatever kind or character, whether in cash or other property, at any time made, owing or payable to Pledgor in respect of or on account of its present or
hereafter acquired Equity Interests, whether due or to become due and whether representing profits, distributions pursuant to complete or partial liquidation or dissolution of the issuer of such Equity Interests, distributions representing the
complete or partial redemption of Pledgor’s Equity Interests in any Person or the complete or partial withdrawal of Pledgor from any Person, repayment of capital contributions made to or with respect to any Person in respect of Equity Interests
in such Person held by Pledgor and the right to receive, receipt for, use, and enjoy all such payments and distributions, and (iii) all other rights and privileges incident to Pledgor’s interest in such Equity Interests, provided,
that prior to the occurrence of an Event of Default, the Pledgor shall retain certain rights as described in Section 7 below; 

(ii) the Specified Account; 

  
 -3- 

			
	West Maricopa Combine, Inc.	  	Pledge and Security Agreement

  
  

 (iii) all interest, dividends, cash, instruments, investment property,
general intangibles and other property from time to time received, receivable or otherwise payable in respect of, or in exchange for, any or all of the foregoing; 

(iv) supporting evidence and documents relating to any of the above-described property,
including, without limitation, computer programs, disks, tapes, electronic archives, clouds and related electronic data processing media, and all rights of the Pledgor to retrieve the same from third parties, written applications, credit
information, account cards, payment records, correspondence, delivery and installation certificates, invoice copies, delivery receipts, notes, and other evidences of indebtedness, insurance certificates and the like, together with all books of
account, ledgers, and cabinets in which the same are reflected or maintained; and 
 (v) to the extent not covered by clauses
(i) through (iii) above, all “proceeds” (as defined in UCC) of any or all of the foregoing. 
 (b) The Collateral Agent
shall have with respect to the Collateral, in addition to the rights and remedies set forth herein, in the Notes, the Note Agreement, the Guaranty Agreements and in the other Note Documents, all of the rights and remedies available to a secured
party under the UCC, as if such rights and remedies were fully set forth herein. 
 (c) The lien and security interest herein granted
and provided for is made and given to secure, and shall secure, the payment and performance of (i) any and all indebtedness, obligations, and liabilities of whatsoever kind and nature of the Pledgor to the Collateral Agent and the other Secured
Parties under the Notes, the Note Agreement, the Guaranty Agreements and the other Note Documents (whether arising before or after the filing of a petition in bankruptcy), whether direct or indirect, absolute or contingent, due or to become due, and
whether now existing or hereafter arising and howsoever held, evidenced, or acquired, and whether several, joint, or joint and several and (ii) any and all expenses and charges, legal or otherwise, suffered or incurred by any of the Secured
Parties in collecting or enforcing any of such indebtedness, obligations, or liabilities or in realizing on or protecting or preserving any security therefor, including, without limitation, the lien and security interest granted hereby (all of the
foregoing being hereinafter referred to as the “Secured Obligations”). 
 (d) For the avoidance of doubt and
notwithstanding anything herein, or in the Note Agreement, the Guaranty Agreements, the Notes or any other Note Documents, to the contrary, (i) no Subsidiary of the Pledgor that is a regulated utility is a borrower or guarantor under any Note
Document, nor is any such Subsidiary pledging any of its property or assets as collateral for the Secured Obligations, and (ii) no regulated utility may declare distributions or dividends to its equity holders, except in accordance with
applicable law (including ACC Regulations), and subject to each regulated utility’s obligations to maintain revenues and funds sufficient to fund direct and indirect operating and maintenance expenses (including general and administrative
expenses and further including all reasonable and necessary costs, fees and expenses for operation and maintenance of the system utilities), fees and expenses. 

  
 -4- 

			
	West Maricopa Combine, Inc.	  	Pledge and Security Agreement

  
  

 SECTION 3. DELIVERY OF CERTIFICATES
OR INSTRUMENTS. 
 All certificates or instruments representing or evidencing the Collateral, if any, shall be
delivered to and held by or on behalf of the Collateral Agent, for the benefit of the Secured Parties pursuant hereto and shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or
assignment in blank, all in form reasonably satisfactory to the Collateral Agent and in form and substance reasonably satisfactory to the Required Holders. Upon the occurrence and during the continuance of any Event of Default, the Collateral Agent
shall have the right, at any time in its sole discretion and without notice to the Pledgor, to transfer to or to register in the name of the Collateral Agent or any of its nominees any or all of the Collateral, subject only to the revocable rights
specified in Section 7(a) hereof and further subject to compliance with the ACC Regulations. In addition, upon the occurrence and during the continuance of any Event of Default, the Collateral Agent shall have the right at any time to exchange
certificates or instruments representing or evidencing Collateral for certificates or instruments of smaller or larger denominations. 

SECTION 4. SPECIFIED ACCOUNT COLLATERAL. 

(a) The Company has established the Specified Account as a deposit account (within the meaning of Section 9-102 of the UCC), with Wells
Fargo Bank, N.A. Pledgor shall promptly notify the Collateral Agent of any other Specified Account opened or maintained by the Company or the Pledgor after the date hereof. To the extent requested by the Collateral Agent following the occurrence and
continuation of any Default or the occurrence of any Event of Default under any Note Document, Pledgor shall, and shall cause the applicable depository or other institution to, execute and deliver to the Collateral Agent an account control agreement
in form reasonably satisfactory to the Collateral Agent and in form and substance reasonably satisfactory to the Required Holders which provides, among other things, for the depository or other institution’s agreement that it will comply with:
(i) instructions originated by the Collateral Agent directing the disposition of the funds in each such Designated Account that is a deposit account or (ii) entitlement orders originated by the Collateral Agent with respect to each such
Specified Account that is a securities account, in each case, without further consent by such Pledgor. Notwithstanding the foregoing, any account control agreement which requires the Collateral Agent in its individual capacity to indemnify the
depository or other institution other than out of the Collateral shall not be deemed to be reasonably satisfactory to the Collateral Agent. 

(b) Subject to Section 2(d) hereof, Pledgor covenants and agrees that upon declaration and payment of any dividend or distribution by any
Subsidiary, it will cause such dividend or distribution to be paid and segregated into the Specified Account. Prior to the occurrence and continuance of an Event of Default, amounts so deposited in the Specified Account may be withdrawn and used for
corporate purposes, including investments in or loans to Subsidiaries permitted under the Note Agreement. 
 SECTION 5.
REPRESENTATIONS, WARRANTIES AND CERTAIN COVENANTS. 
 The Pledgor
represents, warrants and covenants as follows: 

  
 -5- 

			
	West Maricopa Combine, Inc.	  	Pledge and Security Agreement

  
  

 (a) The Equity Interests have been duly authorized and validly issued and are fully paid and
non-assessable. With respect to any Equity Interests constituting interests in limited liability companies, none of such Equity Interests constitute or are evidenced by “certificated securities”, unless such certificates have been
delivered to the Collateral Agent. 
 (b) The Pledgor is the legal and beneficial owner of the Collateral free and clear of any Lien or
other encumbrance except for the Lien created by this Agreement and Liens created in favor of the Collateral Agent. There is no existing agreement, option, right or privilege capable of becoming an agreement or option pursuant to which the Pledgor
would be required to sell or otherwise dispose of any Equity Interest. 
 (c) Except for the delivery of certificates or instruments
representing the Collateral (if any) to the Collateral Agent pursuant to this Agreement, and the filing of an appropriate financing statement with the Arizona Secretary of State, and any control agreement contemplated by Section 4(a) above, no
other action is required to create or maintain the Lien of the Collateral Agent as a valid and perfected first priority Lien in the Collateral, to secure the Secured Obligations. 

(d) No authorization, approval, or other action by, and no notice to or filing with, any governmental authority or regulatory body (except as
set forth in paragraph (c) above) is required either (i) for the pledge by the Pledgor of the Collateral pursuant to this Agreement or for the execution, delivery or performance of this Agreement by the Pledgor or (ii) for the
exercise by the Collateral Agent of its rights and the rights of the Secured Parties provided for in this Agreement or the remedies in respect of the Collateral pursuant to this Agreement (except as may be required in connection with such
disposition by laws affecting the offering and sale of securities generally and except for compliance with applicable requirements of the ACC regulations as set forth in Section 7(b) and Section 8 hereof). 

(e) The execution, delivery and performance of this Agreement does not and will not (i) violate any provision of any law, rule,
regulation (including, without limitation, Regulations T, U and X of the Board of Governors of the Federal Reserve System), order, writ, judgment, injunction, decree, determination or award applicable to the Pledgor, (ii) result in breach of,
or constitute a default under, any indenture, credit or loan or note agreement or any other agreement, lease or instrument to which the Pledgor presently is a party or by which it or its properties may be bound or affected or (iii) result in or
require (other than pursuant to this Agreement) the creation or imposition of, any mortgage, deed of trust, pledge, lien, security interest or other share or encumbrance of any nature upon or with respect to any of the properties now owned or
hereafter acquired by the Pledgor. The Pledgor is not in violation of or in default under any such law, rule or regulation, order, writ, judgment, injunction, decree, determination or award or any material provision of any such indenture, agreement,
lease or instrument. 
 (f) Schedule I correctly sets forth the name and notice address of the issuer and the number of shares (or
percentage of Equity Interests) of each Equity Interest owned by Pledgor. 
 (g) Except for any such agreements in favor of the Collateral
Agent for the benefit of the Secured Parties, Pledgor shall not enter into any agreement providing any Person with 

  
 -6- 

			
	West Maricopa Combine, Inc.	  	Pledge and Security Agreement

  
  

 
“control” (within the meaning of Sections 9-104 or 9-106 of the applicable UCC) of any Designated Account or any Excluded Account. 

(h) Pledgor is a corporation duly formed under the laws of Arizona, and is validly existing and in good standing under the laws of such
jurisdiction and the State of Arizona. Pledgor has its chief executive office in the State of Arizona. Pledgor agrees to give the Collateral Agent at least thirty (30) days’ prior written notice before changing the state in which its chief
executive office is located or the state in which it is organized, and prior to the effectiveness of any such change shall take all steps necessary to maintain the security interest provided for herein as a first-priority, perfected security
interest, including the filing of additional UCC financing statements or amendments as may be necessary or as requested by the Collateral Agent. 

(i) The Pledgor shall not: (i) sell, assign (by agreement, operation of law or otherwise) or otherwise dispose of, or grant any option
with respect to, any of the Collateral, or (ii) create or permit to exist any Lien or security interest upon or with respect to any of the Collateral, except for the Lien created by this Agreement and any other Lien in favor of the Collateral
Agent for the benefit of the Secured Parties. 
 (j) The Pledgor agrees that it will not permit or cause to be issued any Equity Interests
(i) in substitution for the existing Equity Interests and (ii) in addition to the existing Equity Interests, except following notice to the Collateral Agent and provided that immediately upon its acquisition (directly or indirectly) of any
such substitute or additional shares of stock or other securities, certificates or instruments, Pledgor will execute such documentation as is necessary to pledge or evidence the pledge or as may be requested by Collateral Agent or the Required
Holders pledging, and evidencing the pledge hereunder of, such Equity Interests. 
 (k) The Pledgor shall, at its cost and expense, protect
and defend this Agreement, all of the rights of the Collateral Agent hereunder, and the Collateral against all claims and demands of other parties. Pledgor shall pay all claims and charges that in the reasonable opinion of the Collateral Agent or
the Required Holders might prejudice, imperil or otherwise affect the Collateral or the security interest therein. Pledgor shall promptly notify the Collateral Agent of any levy, distraint or other seizure by legal process or otherwise of any part
of the Collateral and of any threatened or filed claims or proceedings that might in any way affect or impair the terms of this Agreement. 

SECTION 6. FURTHER ASSURANCES. 

The Pledgor hereby authorizes the Collateral Agent to file any and all financing statements covering the Collateral or any part thereof as the
Collateral Agent may require. The Pledgor agrees that from time to time, at the expense of the Pledgor, the Pledgor will promptly execute and deliver all further instruments and documents, and take all further action that may be necessary or that
the Collateral Agent or the Required Holders may reasonably request, in order to perfect and protect any security interest granted or purported to be granted hereby or to enable the Collateral Agent to exercise and enforce its rights and remedies
hereunder with respect to any Collateral. The Pledgor will furnish to the Collateral Agent from time to time statements and 

  
 -7- 

			
	West Maricopa Combine, Inc.	  	Pledge and Security Agreement

  
  

 
schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as the Collateral Agent or the Required Holders may reasonably request, all in
reasonable detail as the Collateral Agent or the Required Holders may reasonably request. The Pledgor agrees, and agrees to cause each issuer of Equity Interests included in the Collateral, to mark its books and records to reflect the lien and
security interest of the Collateral Agent in the Collateral. 
 SECTION 7. VOTING RIGHTS
AND DIVIDENDS. 
 (a) So long as no Event of Default shall have occurred and be continuing and neither the
Collateral Agent nor the Required Holders have delivered the notice specified in Section 7(b): 
 (i) The Pledgor shall
be entitled to exercise any and all voting and other consensual rights pertaining to the Collateral or any part thereof for any purpose not inconsistent with the terms of this Agreement, the Notes, the Note Agreement, the Guaranty Agreements or the
other Note Documents. 
 (ii) The Pledgor shall be entitled to receive and retain any and all dividends or distributions paid
in respect of the Collateral; provided, however, except as expressly permitted by the Note Agreement, that any and all (A) dividends or distributions paid or payable other than in cash in respect of, and instruments and other property
received, receivable or otherwise distributed in respect of, or in exchange for, any Collateral, (B) dividends and other distributions paid or payable in cash in respect of any Collateral in connection with a partial or total liquidation or
dissolution and (C) cash paid, payable or otherwise distributed in redemption of, or in exchange for, any Collateral, shall be, and shall be forthwith delivered to the Collateral Agent to hold as Collateral and shall, if received by the
Pledgor, be received in trust for the benefit of the Collateral Agent, be segregated from the other property or funds of the Pledgor, and be forthwith delivered to the Collateral Agent as Collateral in the same form as so received (with any
necessary endorsement). 
 (iii) The Collateral Agent shall execute and deliver (or cause to be executed and delivered) to
the Pledgor all such proxies and other instruments as the Pledgor may reasonably request for the purpose of enabling the Pledgor to exercise the voting and other rights which it is entitled to exercise pursuant to paragraph (i) above and to
receive the dividends which it is authorized to receive and retain pursuant to paragraph (ii) above. 
 (b) Subject in each case, to
any applicable requirements of the ACC Regulations, upon the occurrence and during the continuation of an Event of Default: 

(i) All rights of the Pledgor to exercise the voting and other consensual rights which it would otherwise be entitled to
exercise pursuant to Section 7(a)(i) shall automatically cease, and the Collateral Agent shall thereupon have the sole right to exercise such voting and other consensual rights. 

  
 -8- 

			
	West Maricopa Combine, Inc.	  	Pledge and Security Agreement

  
  

 (ii) All rights of the Pledgor to receive the distributions and dividends
which it would otherwise be entitled to receive and retain pursuant to Section 7(a)(ii) shall automatically cease, and the Collateral Agent shall thereupon have the sole right to receive and hold as Collateral such dividends, distributions and
interest. 
 (iii) All distributions and dividends which are received by the Pledgor contrary to the provisions of paragraph
(ii) of this Section 7(b) shall be received in trust for the benefit of the Collateral Agent on behalf of the Secured Parties, shall be segregated from other funds of the Pledgor and shall be forthwith paid over to the Collateral Agent on
behalf of the Secured Parties as Collateral in the same form as so received (with any necessary endorsement). 
 SECTION 8.
REMEDIES. 
 Subject in each case, to any applicable requirements of the ACC Regulations: 

(a) The Collateral Agent may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise
available to it, all the rights and remedies of a secured party on default under the UCC (whether or not the UCC applies to the affected Collateral), and the Collateral Agent may also, without notice except as specified below, sell the Collateral or
any part thereof in one or more parcels at public or private sale, at any exchange, broker’s board or at any of the Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the
Collateral Agent may deem commercially reasonable. The Pledgor agrees that at least ten (10) days’ notice to the Pledgor of the time and place of any public sale or the time after which any private sale is to be made shall constitute
reasonable notification. The Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. The Collateral Agent may adjourn any public or private sale from time to time by announcement at the
time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. 
 (b)
Any cash held by the Collateral Agent as Collateral and all cash proceeds received by the Collateral Agent in respect of any sale of, collection from, or other realization upon all or any part of the Collateral shall be applied by the Collateral
Agent against the Secured Obligations in such order as the Collateral Agent may elect, subject to the requirements of the Note Agreement and the Collateral Agency Agreement. Any surplus of such cash or cash proceeds held by the Collateral Agent and
remaining after payment in full of all of the Secured Obligations shall be paid over to the Pledgor or to whomsoever may be lawfully entitled to receive such surplus. 

(c) All rights and remedies of the Collateral Agent expressed herein are in addition to all other rights and remedies possessed by the
Collateral Agent or the holders of the Notes in the Notes, the Note Agreement, the Guaranty Agreements, Note Documents and any other agreement or instrument relating to the Secured Obligations. 

  
 -9- 

			
	West Maricopa Combine, Inc.	  	Pledge and Security Agreement

  
  

 (d) In connection with a public or private sale of the Collateral or any part thereof, the
Collateral Agent may disclose to prospective purchasers any and all non-public information available to the Collateral Agent which pertains to (i) the issuer of the Collateral, or (ii) the Pledgor,
provided in the case of the Pledgor, such non-public information is material to said issuer, its financial condition or the Collateral. 

(e) Without in any way limiting the foregoing, upon the occurrence and during the continuation of any Event of Default, the Collateral Agent
shall have the right, in addition to all other rights provided herein or by law, to direct the disposition of the funds in any Specified Account that is a deposit account or (ii) entitlement orders originated by the secured party with respect
to each such Specified Account that is a securities account, in each case, without further consent by such Pledgor. 
 (d) If the Collateral
Agent exercises its right to take possession of the Collateral, the Pledgor shall also at its expense perform any and all other steps requested by the Collateral Agent or the Required Holders to preserve and protect the security interest hereby
granted in the Collateral, such as maintaining Collateral records and filing UCC financing and continuation statements. 
 SECTION 9.
WAIVERS; PRIVATE SALES. 
 (a) Pledgor waives any right to require the Collateral Agent or the
Required Holders to (i) proceed against any Person, including any other guarantor or pledgor, (ii) proceed against or exhaust any Collateral, or (iii) pursue any other remedy in Collateral Agent’s or the Required Holders’
power; and waives any defense arising by reason of any disability of Pledgor or any other Person. Until the Secured Obligations have been paid in full, Pledgor waives any right of subrogation, reimbursement, indemnification, and contribution
(contractual, statutory or otherwise), including without limitation, any claim or right of subrogation under the Bankruptcy Code (Title 11, United States Code) or any successor statute, arising from the existence or performance of this Agreement,
and Pledgor waives any right to enforce any remedy which the Collateral Agent now has or may hereafter have against Pledgor or against any other Person, and waive any benefit of, and any right to participate in, any security now or hereafter held by
the Collateral Agent. Pledgor authorizes the Collateral Agent, without notice or demand and without affecting Pledgor’s liability hereunder, from time to time to: (a) renew, compromise, extend, accelerate or otherwise change the time for
payment of, or otherwise change the terms of, the Secured Obligations or any part thereof, including increase or decrease of the rate of interest thereon; (b) receive and hold security, other than the Collateral herein described, for the
payment of such Secured Obligations or any part thereof, and exchange, enforce, waive, release, fail to perfect, sell, or otherwise dispose of the Collateral herein described or any part thereof or any such other security; and (c) release or
substitute the Company, or any of the endorsers or guarantors of such Secured Obligations or any part thereof, or any other parties thereto. 

(b) The Pledgor recognizes that the Collateral Agent may be unable to effect a public sale of any or all of the Collateral by reason of the
ACC Regulations and/or certain prohibitions contained in the laws of any jurisdiction outside the United States or in the 1933 Act and applicable state securities laws, but may instead be compelled to resort to one or more private

  
 -10- 

			
	West Maricopa Combine, Inc.	  	Pledge and Security Agreement

  
  

 
sales thereof to a restricted group of purchasers who will be obliged to agree, among other things, to acquire such Collateral for their own account for investment and not with a view to the
distribution or resale thereof, or otherwise in accordance with the ACC Regulations. The Pledgor acknowledges and agrees that any such private sale may result in prices and other terms less favorable to the seller than if such sale were a public
sale and, notwithstanding such circumstances, agrees that any such private sale shall, to the extent permitted by applicable law, be deemed to have been made in a commercially reasonable manner. The Collateral Agent shall not be under any obligation
to delay a sale of any of the Collateral for the period of time necessary to permit the issuer of such securities to register such securities under the laws of any jurisdiction outside the United States, under the 1933 Act or under any applicable
state securities laws, even if the issuer would agree to do so. If the Collateral Agent is able to lawfully effect a public sale without registration of the Collateral under the laws of any jurisdiction outside the United States, under the 1933 Act
or under any applicable state securities laws, then, subject to any applicable ACC Regulations, the Collateral Agent may, but shall not be required to, conduct a public sale of the Collateral, rather than a private sale, if the Collateral Agent
reasonably believes that it would realize a higher sales price in a public sale. 
 SECTION 10. THE
COLLATERAL AGENT’S DUTIES. 
 (a) The powers conferred on the Collateral
Agent hereunder are solely to protect the interests of the Secured Parties in the Collateral and shall not impose any duty upon it to exercise any such powers. Except for reasonable care in the custody of any Collateral in its possession and the
accounting for moneys actually received by it hereunder, the Collateral Agent shall have no duty as to any Collateral or as to the taking of any necessary steps to preserve rights against prior parties or any other rights pertaining to any
Collateral. The Collateral Agent shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which the Collateral Agent
accords its own property and collateral held for others in its capacity as a collateral agent, it being understood that the Collateral Agent shall not have any responsibility for (a) ascertaining or taking action with respect to calls,
conversions, exchanges, maturities, tenders or other matters relative to any Collateral, whether or not the Collateral Agent has or is deemed to have knowledge of such matters, or (b) taking any necessary steps to preserve rights against any
parties with respect to any Collateral. 
 (b) Upon the appointment of a replacement collateral agent pursuant to the Collateral Agency
Agreement, the Collateral Agent may transfer all of its interest and liens in or any part of the Collateral and shall be fully discharged thereafter from all liability and responsibility with respect to such Collateral so transferred, and the
transferee shall be vested with all the rights and powers of the Collateral Agent hereunder with respect to such collateral so transferred; but with respect to any of its interest and liens in Collateral not so transferred, the Collateral Agent
shall retain all rights and powers hereby given. 
 SECTION 11. OTHER RIGHTS. 

(a) The rights, powers and remedies given to the Collateral Agent by this Agreement shall be in addition to all rights, powers and remedies
given to the Collateral Agent by virtue of 

  
 -11- 

			
	West Maricopa Combine, Inc.	  	Pledge and Security Agreement

  
  

 
any statute or rule of law. Any forbearance or failure or delay by the Collateral Agent in exercising any right, power or remedy hereunder shall not be deemed to be a waiver of such right, power
or remedy, and any single or partial exercise of any right, power or remedy hereunder shall not preclude the further exercise thereof; and every right, power and remedy of the Collateral Agent shall continue in full force and effect until such
right, power or remedy is specifically waived by an instrument in writing executed by the Collateral Agent. The rights and remedies of the Collateral Agent under this Agreement shall be cumulative and not exclusive of any other right or remedy which
the Collateral Agent or any holder of Notes may have. 
 (b) This Agreement constitutes an assignment of rights only and not an assignment
of any duties or obligations of the Pledgor in any way related to the Collateral, and the Collateral Agent shall have no duty or obligation to discharge any such duty or obligation. The Collateral Agent shall have no responsibility for taking any
necessary steps to preserve rights against any parties with respect to any Collateral or initiating any action to protect the Collateral against the possibility of a decline in market value. Neither the Collateral Agent nor any party acting as
attorney for the Collateral Agent shall be liable for any acts or omissions or for any error of judgment or mistake of fact or law other than its gross negligence or willful misconduct or negligence in the handling of funds. 

(c) In addition to any other powers of attorney contained herein, the Pledgor hereby appoints the Collateral Agent, its nominee, and any other
person whom the Collateral Agent may designate, as the Pledgor’s attorney-in-fact, with full power and authority to sign the Pledgor’s name on verifications of
Collateral; to send requests for verification of Collateral to obligors; to endorse the Pledgor’s name on any checks, notes, acceptances, money orders, drafts, and any other forms of payment or security that may come into the Collateral
Agent’s possession or on any assignments, stock powers, or other instruments of transfer relating to the Collateral or any part thereof; to sign the Pledgor’s name on claims to enforce collection of any Collateral, on notices to and drafts
against obligors, on schedules and assignments of Collateral, on notices of assignment and on public records; upon the occurrence and during the continuance of an Event of Default to notify the post office authorities to change the address for
delivery of the Pledgor’s mail to an address designated by the Collateral Agent; upon the occurrence and during the continuance of an Event of Default to receive, open and dispose of all mail addressed to the Pledgor; and to do all things
necessary to carry out this Agreement. The Pledgor hereby ratifies and approves all acts of any such attorney and agrees that neither the Collateral Agent nor any such attorney will be liable for any acts or omissions nor for any error of judgment
or mistake of fact or law other than such person’s gross negligence or willful misconduct or negligence in the handling of funds. The foregoing powers of attorney, being coupled with an interest, are irrevocable until the Secured Obligations
have been fully paid and satisfied and all agreements of any Secured Party to extend credit to or for the account of the Pledgor have expired or otherwise have been terminated. 

SECTION 12. INDEMNITY; WAIVER. 

(a) The Pledgor agrees to indemnify, pay and hold harmless, the Collateral Agent and each other Secured Party and any of their Related Parties
(each, an “Indemnitee”), from and against any and all Indemnified Liabilities, IN ALL CASES, WHETHER OR NOT CAUSED
BY OR 

  
 -12- 

			
	West Maricopa Combine, Inc.	  	Pledge and Security Agreement

  
  

 
ARISING, IN WHOLE OR IN PART, OUT OF THE
COMPARATIVE, OR CONTRIBUTORY NEGLIGENCE OF SUCH INDEMNITEE; provided, the Pledgor shall not have any obligation to any Indemnitee
hereunder with respect to any Indemnified Liabilities to the extent such Indemnified Liabilities (x) arise from the gross negligence or willful misconduct, as determined by a court of competent jurisdiction by final and nonappealable judgment,
of that Indemnitee or (y) result from a claim brought by the Pledgor against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other Note Document, as determined by a court of competent
jurisdiction by final and nonappealable judgment. To the extent that the undertakings to indemnify, pay and hold harmless set forth in this Section 12 may be unenforceable in whole or in part because they are violative of any law or public
policy, the Pledgor shall contribute the maximum portion that it is permitted to pay and satisfy under Applicable Laws to the payment and satisfaction of all Indemnified Liabilities incurred by Indemnitees or any of them. All amounts due under this
clause (a) shall be payable promptly after demand therefor. For purposes hereof, “Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, trustees, officers, employees or other
personnel, counsel, agents and advisors of such Person and of such Person’s Affiliates. 
 (b) To the extent not prohibited by
applicable law, the Pledgor shall not assert, and the Pledgor hereby waives, any claim against the Collateral Agent and its respective Related Parties, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed
to direct or actual damages) (whether or not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement) arising out of, in connection with, as a result of, or in any way related to, this Agreement or any Note
Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the transactions contemplated hereby or thereby, or the use of the proceeds thereof or any act or omission or event occurring in connection
therewith, and the Pledgor hereby waives, releases and agrees not to sue upon any such claim or any such damages, whether or not accrued and whether or not known or suspected to exist in its favor. No Indemnitee shall be liable for any damages
arising from the use by unintended recipients of any information or other materials distributed to it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Note Documents or
the transactions contemplated hereby or thereby. In no event shall the Collateral Agent be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces
beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities,
communications or computer (software and hardware) services, it being understood that the Collateral Agent shall use reasonable best efforts which are consistent with accepted practices in the banking industry to resume performance as soon as
practicable under the circumstances. 
 SECTION 13. INTERPRETATION. 

(a) In this Agreement, unless a clear contrary intention appears: 

(i) the singular number includes the plural number and vice versa; 

  
 -13- 

			
	West Maricopa Combine, Inc.	  	Pledge and Security Agreement

  
  

 (ii) reference to any gender includes each other gender; 

(iii) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to
this Agreement as a whole and not to any particular Article, Section or other subdivision; 
 (iv) reference to any Person
includes such Person’s successors and assigns but, if applicable, only if such successors and assigns are permitted by this Agreement, and reference to a Person in a particular capacity excludes such Person in any other capacity or
individually, provided that nothing in this clause (iv) is intended to authorize any assignment not otherwise permitted by this Agreement; 

(v) reference to any agreement, document or instrument means such agreement, document or instrument as amended, supplemented or
modified and in effect from time to time in accordance with the terms thereof and, if applicable, the terms hereof, and reference to any notes includes any notes issued pursuant to any Loan Document in extension or renewal thereof and in
substitution or replacement therefor; 
 (vi) unless the context indicates otherwise, reference to any Article, Section,
Schedule or Exhibit means such Article or Section hereof or such Schedule or Exhibit hereto; 
 (vii) the words
“including” (and with correlative meaning “include”) means including, without limiting the generality of any description preceding such term; 

(viii) with respect to the determination of any period of time, the word “from” means “from and including”
and the word “to” means “to but excluding;” 
 (ix) reference to any law means such as amended, modified,
codified or reenacted, in whole or in part, and in effect from time to time; and 
 (x) reference to Collateral Agent are to
it in its capacity as Collateral Agent for the Secured Parties under and as defined in the Collateral Agency Agreement. 
 (b) The Article
and Section headings herein are for convenience only and shall not affect the construction hereof. 
 (c) No provision of this Agreement
shall be interpreted or construed against any Person solely because that Person or its legal representative drafted such provision. 

SECTION 14. AMENDMENTS. 

No amendment or waiver of any provision of this Agreement, nor consent to any departure by the Pledgor herefrom, shall in any event be
effective unless the same shall be in writing and signed by the Pledgor and the Collateral Agent, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 

  
 -14- 

			
	West Maricopa Combine, Inc.	  	Pledge and Security Agreement

  
  

 SECTION 15. NOTICES. 

All notices and communications provided for hereunder shall be in writing and sent (a) by telecopy, facsimile or electronic mail if the
sender on the same day sends a confirming copy of such notice by a nationally recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid), or (c) by a
nationally recognized overnight delivery service (with charges prepaid). Any such notice must be sent: 
 (i) if to any
Purchaser or its nominee, to such Purchaser or nominee at the address specified for such communications in Schedule B to the Note Agreement, or at such other address as such Purchaser or nominee shall have specified to the Company in writing,

 (ii) if to any other holder of any Note, to such holder at such address as such other holder shall have specified to the
Company in writing, 
 (iii) if to the Pledgor, to the Pledgor at the following address: 21410 North 19th Avenue, Suite 220,
Phoenix, AZ 85027 to the attention of: Michael J. Liebman, or at such other address as the Pledgor shall have specified to the Collateral Agent and each holder of a Note in writing; or 

(iv) if to the Collateral Agent, at the following address: 101 North First Avenue, Suite 1600, Phoenix, Arizona 85003,
Attention: M. Ambriz-Reyes (Global Water Resources, Inc.), E-mail: mary.abrizreyes@usbank.com, or at such other address as the Collateral Agent shall have specified to the Pledgor in writing. 

Notices under this Section 15 will be deemed given only when actually received. 

SECTION 16. SEPARABILITY. 

Should any clause, sentence, paragraph, subsection or Section of this Agreement be judicially declared to be invalid, unenforceable or void,
such decision will not have the effect of invalidating or voiding the remainder of this Agreement, and the parties hereto agree that the part or parts of this Agreement so held to be invalid, unenforceable or void will be deemed to have been
stricken herefrom by the parties hereto, and the remainder of this Agreement will have the same force and effectiveness as if such stricken part or parts had never been included herein. 

SECTION 17. EXECUTION IN COUNTERPARTS. 

This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement. Signatures of the parties hereto transmitted by facsimile or electronic transmission shall be deemed to be their original
signatures for all purposes. 

  
 -15- 

			
	West Maricopa Combine, Inc.	  	Pledge and Security Agreement

  
  

 SECTION 18. CONTINUING SECURITY INTEREST;
TRANSFER OF NOTES. 
 This Agreement shall create a continuing security interest in the
Collateral and shall (a) remain in full force and effect until payment in full of the Secured Obligations, (b) be binding upon the Pledgor, its successors and assigns, and (c) inure to the benefit of the Collateral Agent and the other
Secured Parties and their successors, transferees and assigns. Without limiting the generality of the foregoing clause (c), any Secured Party may assign or otherwise transfer all or a portion of its interests, rights and obligations under the Notes
held by it in accordance with the terms of the Note Documents executed in connection with such Notes. Upon the payment in full of the Secured Obligations, the Pledgor shall be entitled to the return, upon its request and at its expense, of such of
the Collateral as shall not have been sold or otherwise applied against the Secured Obligations pursuant to the terms hereof. 

SECTION 19. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. 

All representations and warranties contained in this Agreement or made in writing by the Pledgor in connection herewith shall survive the
execution and delivery of this Agreement and repayment of the Secured Obligations. Any investigation by the Collateral Agent or any other Secured Party shall not diminish in any respect whatsoever its rights to rely on such representations and
warranties. 
 SECTION 20. GOVERNING LAW. 

This Agreement and the rights and obligations of the parties hereunder shall be governed by, and shall be construed and enforced in accordance
with, the laws of the State of New York without regard to conflict of laws principles thereof that would require or permit the application of the laws of another jurisdiction except to the extent that the perfection of the security interest
hereunder, or remedies hereunder, in respect of any particular Collateral are governed by the laws of a jurisdiction other than the State of New York. 

SECTION 21. CONSENT TO JURISDICTION AND WAIVER
OF JURY TRIAL. 
 (a) The Pledgor irrevocably submits to the non-exclusive jurisdiction of
any New York State or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to this Agreement, the Note Agreement, the Guaranty Agreement or the Notes. To the fullest
extent permitted by applicable law, the Pledgor irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or
hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. 

(b) The Pledgor consents to process being served by or on behalf of the Collateral Agent or any holder of Notes in any suit, action or
proceeding of the nature referred to in 

  
 -16- 

			
	West Maricopa Combine, Inc.	  	Pledge and Security Agreement

  
  

 
Section 21(a) by hand delivery, reputable overnight commercial delivery service or by mailing a copy thereof by registered or certified or express mail (or any substantially similar form of
mail), postage prepaid, return receipt requested, in each case to it at its address specified in Section 15 or at such other address of which the Collateral Agent or such holder shall then have been notified pursuant to said Section. The
Pledgor agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and
held to be valid personal service upon and personal delivery to it. Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery
service. 
 (c) Nothing in this Section 21 shall affect the right of the Collateral Agent or any holder of a Note to serve process in
any manner permitted by law, or limit any right that the Collateral Agent or the holders of any of the Notes may have to bring proceedings against the Pledgor in the courts of any appropriate jurisdiction or to enforce in any lawful manner a
judgment obtained in one jurisdiction in any other jurisdiction. 
 (d) THE PARTIES HERETO
HEREBY WAIVE TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH
RESPECT TO THIS AGREEMENT, THE NOTES, THE NOTE PURCHASE AGREEMENT, THE
GUARANTY AGREEMENTS OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR
THEREWITH. 
 SECTION 22. NOTICE OF FINAL AGREEMENT. 

THIS SECURITY AGREEMENT AND ANY OTHER
DOCUMENTS EXECUTED IN CONNECTION HEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS,
OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN
ORAL AGREEMENTS BETWEEN THE PARTIES. 
 SECTION 23. LLC
INTERESTS. 
 The Pledgor will not: 

(a) permit any Pledged Company that is a limited liability company to issue any certificate or other instrument to evidence the
Pledgor’s limited liability company interests in such Pledged Company; 
 (b) permit any of the limited liability
company interests in any such Pledged Company to be dealt in or traded on any securities exchange or in securities markets; and 

(c) allow the operating agreement of any such Pledged Company to provide that any limited liability company interest in any
such Pledged Company shall be a security governed by Article 8 of the Uniform Commercial Code. 

  
 -17- 

			
	West Maricopa Combine, Inc.	  	Pledge and Security Agreement

  
  

 IN WITNESS WHEREOF, the Pledgor has executed and
delivered this Agreement effective as of the date first above written. 
  

			
	PLEDGOR:
	
	WEST MARICOPA COMBINE, INC.
		
	By:	 	 /s/ Michael J. Liebman

		 	Name: Michael J. Liebman
		 	Title: Senior Vice President
	
	COLLATERAL AGENT:
	
	U.S. BANK NATIONAL ASSOCIATION, as Collateral Agent
		
	By:	 	 /s/ Mary Ambriz-Reyes

		 	Name: Mary Ambriz-Reyes
		 	Title: Vice President

 EXHIBIT I 

PLEDGED EQUITY INTERESTS 

 

							
	 ISSUER
	  	
CLASS OF SHARES /

MEMBERSHIP INTERESTS
	  	NO. OF
SHARES	  	PERCENTAGE OF
OUTSTANDING SHARES /
MEMBERSHIP 
INTERESTS
	 Valencia Water Company, Inc.
	  	Common	  	35,057	  	100%
	 Water Utility of Greater Buckeye, Inc.
	  	Class A Voting Common	  	13,500	  	100%
	 Water Utility of Greater Tonopah, Inc.
	  	Class A Voting Common	  	100,000	  	100%
	 Water Utility of Northern Scottsdale, Inc.
	  	Common	  	2,000	  	100%
	 Willow Valley Water Co., Inc.
	  	Voting Common	  	5,300	  	100%EX-4.8

 Exhibit 4.8 

LSB INDUSTRIES, INC. 

2016 Long Term Incentive Plan 

1. Purpose. The purpose of the LSB Industries, Inc. 2016 Long Term Incentive Plan (the “Plan”) is to provide a
means through which LSB Industries, Inc., a Delaware corporation (the “Company”), and its Subsidiaries may attract and retain able persons as employees, directors and consultants and to provide a means whereby those persons
upon whom the responsibilities of the successful administration and management of the Company, and its Subsidiaries, rest, and whose present and potential contributions to the welfare of the Company, and its Subsidiaries, are of importance, can
acquire and maintain stock ownership, or awards the value of which is tied to the performance of the Company, thereby strengthening their concern for the welfare of the Company, and its Subsidiaries, and their desire to remain employed. A further
purpose of this Plan is to provide such employees, directors and consultants with additional incentive and reward opportunities designed to enhance the profitable growth of the Company. Accordingly, this Plan primarily provides for the granting of
Incentive Stock Options, Nonstatutory Stock Options, Restricted Stock Awards, Restricted Stock Units, Stock Appreciation Rights, Stock Awards, Dividend Equivalents, Other Stock-Based Awards, Cash Awards, Performance Awards, or any combination of the
foregoing, as is best suited to the circumstances of the particular individual as provided herein. 
 2. Definitions. For purposes of
this Plan, the following terms shall be defined as set forth below: 
 (a) “Affiliate” means any
corporation, partnership, limited liability company, limited liability partnership, association, trust or other organization which, directly or indirectly, controls, is controlled by, or is under common control with, the Company. 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 (i) to vote more than 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, by contract, or otherwise. 
 (b)
“Award” means any Option, SAR, Restricted Stock Award, Restricted Stock Unit, Stock Awards, Dividend Equivalent, Other Stock-Based Award, Cash Award, Performance Award or Substitute Award, together with any
other right or interest granted to a Participant under this Plan. 
 (c) “Award Agreement” means any
written instrument that establishes the terms, conditions, restrictions and/or limitations applicable to an Award in addition to those established by this Plan and by the Committee’s exercise of its administrative powers. 

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

  
 1 

 (e) “Cash Award” means an Award denominated in cash granted
under Section 6(i) hereof. 
 (f) “Change of Control” means the occurrence of any of the following events: 

(i) A “change in the ownership of the Company” which shall occur on the date that any one person, or more than one person acting as
a group, acquires ownership of stock in the Company that, together with stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Company; however, if any one person or
more than one person acting as a group, is considered to own more than 50% of the total fair market value or total voting power of the stock of the Company, the acquisition of additional stock by the same person or persons will not be considered a
“change in the ownership of the Company” (or to cause a “change in the effective control of the Company” within the meaning of Section 2(f)(ii) below) and an increase of the effective percentage of stock owned by any one
person, or persons acting as a group, as a result of a transaction in which the Company acquires its stock in exchange for property will be treated as an acquisition of stock for purposes of this paragraph; provided, further, however, that for
purposes of this Section 2(f)(i), any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company shall not constitute a Change of Control. This Section 2(f)(i)
applies only when there is a transfer of the stock of the Company (or issuance of stock) and stock in the Company remains outstanding after the transaction. 

(ii) A “change in the effective control of the Company” which shall occur on the date that either (A) any one person, or more
than one person acting as a group, acquires (or has acquired during the twelve month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Company possessing 30% or more of the total voting
power of the stock of the Company, except for any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company; or (B) a majority of the members of the Board are
replaced during any twelve-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election. For purposes of a “change in the effective control of
the Company,” if any one person, or more than one person acting as a group, is considered to effectively control the Company within the meaning of this Section 2(f)(ii), the acquisition of additional control of the Company by the same
person or persons is not considered a “change in the effective control of the Company,” or to cause a “change in the ownership of the Company” within the meaning of Section 2(f)(i) above. 

(iii) A “change in the ownership of a substantial portion of the Company’s assets” which shall occur on the date that any one
person, or more than one person acting as a group, acquires (or has acquired during the twelve month period ending on the date of the most recent acquisition by such person or persons) assets of the Company that have a total gross fair market value
equal to or more than 40% of the total gross fair market value of all the assets of the Company immediately prior to such acquisition or acquisitions. For this purpose, gross fair market value means the value of the assets of the Company, or the
value of the assets being disposed of, determined without regard to any liabilities associated with such assets. Any transfer of assets to an entity that is controlled by the shareholders of the Company immediately after the transfer, as provided in
guidance issued pursuant to the Nonqualified Deferred Compensation Rules, shall not constitute a Change of Control. 

  
 2 

 For purposes of this Section 2(f), the provisions of section 318(a) of the Code regarding the constructive
ownership of stock will apply to determine stock ownership; provided, that, stock underlying unvested options (including options exercisable for stock that is not substantially vested) will not be treated as owned by the individual who holds the
option. In addition, for purposes of this Section 2(f) and except as otherwise provided in an Award Agreement, “Company” includes (x) the Company, (y) the entity for whom a Participant performs the services for which an
Award is granted, and (z) an entity that is a stockholder owning more than 50% of the total fair market value and total voting power (a “Majority Shareholder”) of the Company or the entity identified in (y) above, or any entity
in a chain of entities in which each entity is a Majority Shareholder of another entity in the chain, ending in the Company or the entity identified in (y) above. 

(g) “Code” means the United States Internal Revenue Code of 1986, as amended from time to time,
including regulations thereunder and successor provisions and regulations thereto. 
 (h) “Committee”
means a committee of two or more directors designated by the Board to administer this Plan; provided, however, that, unless otherwise determined by the Board, the Committee shall consist solely of two or more directors, each of whom
shall be a Qualified Member. 
 (i) “Covered Employee” means an Eligible Person who is designated by
the Committee, at the time of grant of a Performance Award, as likely to be a “covered employee” within the meaning of section 162(m) of the Code for a specified fiscal year. 

(j) “Dividend Equivalent” means a right, granted to an Eligible Person under Section 6(g), to
receive cash, Stock, other Awards or other property equal in value to dividends paid with respect to a specified number of shares of Stock, or other periodic payments. 

(k) “Effective Date” means April 19, 2016. 

(l) “Eligible Person” means all officers and employees of the Company or of any of its Subsidiaries, and
other persons who provide services to the Company or any of its Subsidiaries, including directors of the Company; provided, that, any such individual must be an “employee” of the Company or any of its parents or subsidiaries within the
meaning of General Instruction A.1(a) to Form S-8 if such individual will be granted an award that shall, or may, be settled in Stock. An employee on leave of absence may be considered as still in the employ of the Company or its Subsidiaries for
purposes of eligibility for participation in this Plan. 
 (m) “Exchange Act” means the Securities
Exchange Act of 1934, as amended from time to time, including rules thereunder and successor provisions and rules thereto. 
 (n)
“Fair Market Value” means, as of any specified date, (i) if the Stock is listed on a national securities exchange, the closing sales price of the Stock, as reported on the stock exchange composite tape on
that date (or if no sales occur on that date, on the last 

  
 3 

 
preceding date on which such sales of the Stock are so reported); (ii) if the Stock is not traded on a national securities exchange but is traded over the counter at the time a determination
of its fair market value is required to be made under the Plan, the average between the reported high and low bid and asked prices of Stock on the most recent date on which Stock was publicly traded; or (iii) in the event Stock is not publicly
traded at the time a determination of its value is required to be made under the Plan, the amount determined by the Committee in its discretion in such manner as it deems appropriate, taking into account all factors the Committee deems appropriate
including, without limitation, the Nonqualified Deferred Compensation Rules. 
 (o) “Incentive Stock
Option” or “ISO” means any Option intended to be and designated as an incentive stock option within the meaning of section 422 of the Code or any successor provision thereto. 

(p) “Nonqualified Deferred Compensation Rules” means the limitations or requirements of section 409A of
the Code, as amended from time to time, including the guidance and regulations promulgated thereunder and successor provisions, guidance and regulations thereto. 

(q) “Nonstatutory Stock Option” means any Option that is not intended to be an “incentive stock
option” within the meaning of section 422 of the Code. 
 (r) “Option” means a right, granted to
an Eligible Person under Section 6(b) hereof, to purchase Stock or other Awards at a specified price during specified time periods. 

(s) “Other Stock-Based Awards” means Awards granted to an Eligible Person under Section 6(h)
hereof. 
 (t) “Participant” means a person who has been granted an Award under this Plan that remains
outstanding, including a person who is no longer an Eligible Person. 
 (u) “Performance Award” means
a right, granted to an Eligible Person under Section 6(k) hereof, to receive Awards based upon performance criteria specified by the Committee. 

(v) “Person” means any person or entity of any nature whatsoever, specifically including an individual,
a firm, a company, a corporation, a partnership, a limited liability company, a trust or other entity; a Person, together with that Person’s Affiliates and Associates (as those terms are defined in Rule 12b-2 under the Exchange Act, provided
that “registrant” as used in Rule 12b-2 shall mean the Company), and any Persons acting as a partnership, limited partnership, joint venture, association, syndicate or other group (whether or not formally organized), or otherwise acting
jointly or in concert or in a coordinated or consciously parallel manner (whether or not pursuant to any express agreement), for the purpose of acquiring, holding, voting or disposing of securities of the Company with such Person, shall be deemed a
single “Person.” 
 (w) “Prior Plan” means the LSB Industries, Inc. 2008 Incentive Stock
Plan, as amended effective June 5, 2014. 

  
 4 

 (x) “Qualified Member” means a member of the Committee who
is (i) a “nonemployee director” within the meaning of Rule 16b-3(b)(3), (ii) an “outside director” within the meaning of Treasury Regulation 1.162-27 under section 162(m) of the Code, and
(iii) “independent” under the listing standards or rules of the securities exchange upon which the Stock is traded, but only to the extent such independence is required in order to take the action at issue pursuant to such standards
or rules. 
 (y) “Restricted Stock” means Stock granted to an Eligible Person under Section 6(d)
hereof, that is subject to certain restrictions and to a risk of forfeiture. 
 (z) “Restricted Stock
Unit” means a right, granted to an Eligible Person under Section 6(e) hereof, to receive Stock, cash or a combination thereof at the end of a specified deferral period. 

(aa) “Rule 16b-3” means Rule 16b-3, promulgated by the Securities and Exchange Commission under section
16 of the Exchange Act, as amended from time to time and applicable to this Plan and Participants. 
 (bb) “Section 162(m)
Award” means a Performance Award granted under Section 6(k)(i) hereof to a Covered Employee that is intended to satisfy the requirements for “performance-based compensation” within the meaning of section 162(m) of
the Code. 
 (cc) “Securities Act” means the Securities Act of 1933 and the rules and regulations
promulgated thereunder, or any successor law, as it may be amended from time to time. 
 (dd) “Stock” means the
Company’s Common Stock, par value $0.10 per share, and such other securities as may be substituted (or re-substituted) for Stock pursuant to Section 8. 

(ee) “Stock Award” means unrestricted shares of Stock granted to an Eligible Person under Section 6(f) hereof.

 (ff) “Stock Appreciation Rights” or “SAR” means a right granted to an Eligible Person
under Section 6(c) hereof. 
 (gg) “Subsidiary” means with respect to the Company, any corporation or other
entity of which a majority of the voting power of the voting equity securities or equity interest is owned, directly or indirectly, by the Company. 

(hh) “Substitute Award” means an Award granted under Section 6(j) hereof in substitution for a similar award as a
result of certain business transactions. 
 3. Administration.  

(a) Authority of the Committee. The Plan shall be administered by the Committee except to the extent the Board elects to administer the
Plan, in which case references herein to the “Committee” shall be deemed to include references to the “Board.” Subject to the 

  
 5 

 
express provisions of the Plan, Rule 16b-3 and other applicable laws, the Committee shall have the authority, in its sole and absolute discretion, to: (i) designate Eligible Persons as
Participants; (ii) determine the type or types of Awards to be granted to an Eligible Person; (iii) determine the number of shares of Stock or amount of cash to be covered by Awards; (iv) determine the terms and conditions of any
Award, consistent with the terms of the Plan, as well as the modification of such terms, which may include the acceleration of vesting, waiver of forfeiture restrictions, modification of the form of settlement of the Award (for example, from cash to
Stock or vice versa), or modification of any other condition or limitation regarding an Award, based on such factors as the Committee shall determine, in its sole discretion; (v) determine whether, to what extent, and under what circumstances
Awards may be vested, settled, exercised, canceled, or forfeited; (vi) interpret and administer the Plan and any instrument or agreement relating to an Award made under the Plan; (vii) establish, amend, suspend, or waive rules and
regulations used to administer the Plan; and (viii) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan. Subject to Rule 16b-3, section 162(m) of the Code,
and the Nonqualified Deferred Compensation Rules, the Committee may correct any defect, supply any omission, or reconcile any inconsistency in the Plan, in any Award, or in any Award Agreement in the manner and to the extent it deems necessary or
desirable to carry the Plan into effect, and the Committee shall be the sole and final judge of that necessity or desirability. Notwithstanding the foregoing, the Committee shall not have any discretion to (A) accelerate, waive or modify any
term or condition of an Award that is intended to qualify as “performance-based compensation” for purposes of section 162(m) of the Code if such discretion would cause the Award to not so qualify, (B) accelerate the payment of any
Award that provides for a deferral of compensation under the Nonqualified Deferred Compensation Rules if such acceleration would subject a Participant to additional taxes under the Nonqualified Deferred Compensation Rules, or (C) take any
action that would violate any applicable law. The express grant of any specific power to the Committee, and the taking of any action by the Committee, shall not be construed as limiting any power or authority of the Committee. The determinations of
the Committee on the matters referred to in this Section 3(a) shall be final and conclusive. 
 (b) Manner of Exercise of Committee
Authority. It is the intent of the Company that (i) Section 162(m) Awards shall qualify as “performance-based compensation” within the meaning of section 162(m) of the Code and (ii) to the fullest extent possible, 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 such section pursuant to an applicable exemption (except for transactions acknowledged in writing to be non-exempt
by such Participant). At any time that a member of the Committee is not a Qualified Member, any action of the Committee relating to (A) an Award granted or to be granted to an Eligible Person who is then subject to section 16 of the Exchange
Act in respect of the Company where such action is not taken by the full Board, or (B) a Section 162(m) Award, may be taken either (i) by a subcommittee, designated by the Committee, composed solely of two or more Qualified Members,
or (ii) by the Committee but with each such member who is not a Qualified Member abstaining or recusing himself or herself from such action; provided, however, that, upon such abstention or recusal, the Committee remains composed
solely of two or more Qualified Members. Such action, authorized by such a subcommittee or by the Committee upon the abstention or recusal of such non-Qualified Member(s), shall be the action of the Committee for purposes of this Plan. Any action of
the Committee shall be final, conclusive and binding on all Persons, including the Company, its 

  
 6 

 
Subsidiaries, stockholders, Participants, beneficiaries, and transferees under Section 7(a)(iii) and (iv) hereof or other Persons claiming rights from or through a Participant. For the
avoidance of doubt, the full Board may take any action relating to an Award granted or to be granted to an Eligible Person who is then subject to section 16 of the Exchange Act in respect of the Company, provided that such award is not a
Section 162(m) Award. 
 (c) Delegation of Authority. The Committee may delegate (A) to any officer of the Company,
irrespective of whether or not the officer is also a member of the Board, the power to perform administrative functions and grant all types of Awards under the Plan so long as the resolutions of the Board or Committee delegating such authority
specifies (1) the total number of Awards that the officer may grant, and (2) with respect to Awards of Restricted Stock or Stock Awards, the time period during which such Awards may be granted and a minimum amount of consideration for
which the Awards may be issued and (B) to any individual member of the Board (including an officer of the Company that serves as a member of the Board), any or all of the Committee’s powers and duties under the Plan, including the power to
perform administrative functions and grant all types of Awards under the Plan, in the case of both (A) and (B), subject to such additional terms or limitations as the Committee shall provide and only to the extent that such delegation will not
(i) violate state or corporate law, (ii) result in the loss of an exemption under Rule 16b-3(d)(1) for Awards granted to Participants subject to section 16 of the Exchange Act in respect of the Company, or (iii) cause
Section 162(m) Awards to fail to so qualify. Upon any such delegation, all references in the Plan to the “Committee,” other than in Section 8, shall be deemed to include any officer of the Company or member of the Board to whom
such powers have been delegated by the Committee. Any such delegation shall not limit such officer or director’s right to receive Awards under the Plan; provided, however, the officer or director may not grant Awards to himself or
herself, a member of the Board, or any executive officer of the Company or an Affiliate, or take any action with respect to any Award previously granted to himself or herself, a member of the Board, or an individual who is an executive officer of
the Company or an Affiliate. The Committee may also appoint agents to assist it in administering the Plan that are not executive officers of the Company or members of the Board, provided that such individuals may not be delegated the authority to
(i) grant or modify any Awards that will, or may, be settled in Stock or (ii) take any action that would cause Section 162(m) Awards to fail to so qualify, if applicable. 

(d) Limitation of Liability. The Committee and each member thereof shall be entitled to, in good faith, rely or act upon any report or
other information furnished to him or her by any officer or employee of the Company or any of its Subsidiaries, the Company’s legal counsel, independent auditors, consultants or any other agents assisting in the administration of this Plan.
Members of the Committee and any officer or employee of the Company or any of its Subsidiaries acting at the direction or on behalf of the Committee shall not be personally liable for any action or determination taken or made in good faith with
respect to this Plan, and shall, to the fullest extent permitted by law, be indemnified and held harmless by the Company with respect to any such action or determination. 

(e) Participants in Non-U.S. Jurisdictions. Notwithstanding any provision of the Plan to the contrary, to comply with applicable laws
in countries other than the United States in which the Company or any of its Affiliates operates or has employees, directors or other service providers from time to time, or to ensure that the Company complies with any applicable

  
 7 

 
requirements of foreign securities exchanges, the Committee, in its sole discretion, shall have the power and authority to: (i) determine which of its Affiliates shall be covered by the
Plan; (ii) determine which Eligible Persons outside the United States are eligible to participate in the Plan; (iii) modify the terms and conditions of any Award granted to Eligible Persons outside the United States to comply with
applicable foreign laws or listing requirements of any foreign exchange; (iv) establish sub-plans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable (any such sub-plans and/or
modifications shall be attached to the Plan as appendices), provided, however, that no such sub-plans and/or modifications shall increase the share limitations contained in Section 4(a); and (v) take any action, before or
after an Award is granted, that it deems advisable to comply with any applicable governmental regulatory exemptions or approval or listing requirements of any such foreign securities exchange. For purposes of the Plan, all references to foreign
laws, rules, regulations or taxes shall be references to the laws, rules, regulations and taxes of any applicable jurisdiction other than the United States or a political subdivision thereof. 

4. Stock Subject to Plan.  

(a) Overall Number of Shares Available for Delivery. Subject to any adjustments made pursuant to Section 8, the total number of
additional shares of Stock reserved and available for issuance in connection with Awards under this Plan shall not exceed 2,750,000 shares of Stock plus any shares of Stock that become available pursuant to Section 4(c)(ii), and such total will
be available for the issuance of Incentive Stock Options. 
 (b) Application of Limitation to Grants of Awards. Subject to
Section 4(c), no Award may be granted if the number of shares of Stock to be delivered in connection with such Award exceeds the number of shares of Stock remaining available under this Plan minus the number of shares of Stock issuable in
settlement of or relating to then-outstanding Awards. The Committee may adopt reasonable counting procedures to ensure appropriate counting, avoid double counting (as, for example, in the case of tandem or Substitute Awards) and make adjustments if
the number of shares of Stock actually delivered differs from the number of shares previously counted in connection with an Award. 
 (c)
Availability of Shares Not Issued under Awards. 
 (i) Share Pool. Shares of Stock subject to an Award under this Plan that
expires or is canceled, forfeited, exchanged, settled in cash or otherwise terminated without the actual delivery of shares (Awards of Restricted Stock shall not be considered “delivered shares” for this purpose), will again be available
for Awards under this Plan, except that if any such shares could not again be available for Awards to a particular Participant under any applicable law or regulation, such shares shall be available exclusively for Awards to Participants who are not
subject to such limitation. Notwithstanding the foregoing, (i) the number of shares tendered or withheld in payment of any exercise or purchase price of an Award or taxes relating to an Award, (ii) shares that were subject to an Option or
an SAR but were not issued or delivered as a result of the net settlement or net exercise of such Option or SAR and (iii) shares repurchased on the open market with the proceeds of an Option’s exercise price, will not, in each case, be
available for Awards under this Plan. 

  
 8 

 (ii) Prior Plan. Awards that are outstanding under the Prior Plan immediately prior to
the Effective Date of this Plan (“Prior Plan Awards”) shall remain outstanding following the Effective Date in accordance with their terms; however, no new awards may be granted pursuant to the Prior Plan on or after the Effective Date.
For the avoidance of doubt, all remaining available Shares under the Prior Plan that are not the subject of Prior Plan Awards will automatically and immediately cease to be available at the Effective Date of this Plan. With respect to Prior Plan
Awards, in accordance with Section 4.2(a) of the Prior Plan, if such a Prior Plan Award, on or after the Effective Date, lapses, expires, terminates or is canceled prior to the issuance of shares thereunder or if shares of Common Stock are
issued under the Prior Plan to a Participant and thereafter are reacquired by the Company, the shares subject to such Prior Plan Awards and the reacquired shares shall again be available for issuance under the Plan. In addition, the following shares
of Common Stock shall not be treated as having been issued under the Prior Plan and shall again be available for issuance under the Plan: (i) shares tendered by a Participant or retained by the Company as full or partial payment to the Company
for the purchase price of a Prior Plan Award or to satisfy tax withholding obligations in connection with a Prior Plan Award, (ii) shares covered by a Prior Plan Award that is settled in cash, or (iii) the number of shares subject to a
Prior Plan SAR in excess of the number of shares that are delivered to the Participant upon exercise of such Prior Plan SAR. Further, the number of shares available for issuance under the Prior Plan shall not be reduced to reflect any dividends or
dividend equivalents that are reinvested into additional shares or credited as additional Restricted Stock, Restricted Stock Units or Performance Shares. 

(d) Stock Offered. The shares to be delivered under the Plan shall be made available from (i) authorized but unissued shares of
Stock, (ii) Stock held in the treasury of the Company, or (iii) previously issued shares of Stock reacquired by the Company, including shares purchased on the open market. 

5. Eligibility; Per Person Award Limitations. Awards may be granted under this Plan only to Persons who are Eligible Persons at
the time of grant thereof. In each calendar year during any part of which this Plan is in effect, a Covered Employee may not be granted (a) Awards (other than Awards designated to be paid only in cash or the settlement of which is not based on
a number of shares of Stock) relating to more than 1,000,000 shares of Stock, subject to adjustment in a manner consistent with any adjustment made pursuant to Section 8 and (b) Awards designated to be paid only in cash, or the settlement
of which is not based on a number of shares of Stock, having a value determined on the date of grant in excess of $5,000,000; in each case, multiplied by the number of full or partial calendar years in any performance period established with respect
to the Award, if applicable. In each calendar year during any part of which this Plan is in effect, an Eligible Person who is serving as a member of the Board and who is not an employee of the Company may not be granted Awards having a value,
determined, if applicable, pursuant to Financial Accounting Standards Board Accounting Standards Codification Topic 718, on the date of grant in excess of $500,000 multiplied by the number of full or partial calendar years in any performance period
established with respect to an Award, if applicable; provided, however, that this limit shall be without regard to grants of Awards, if any, made to a member of the Board who is not an employee of the Company as compensation for services provided by
such individual to the Company or any of its Subsidiaries other than in the individual’s capacity as a member of the Board. 

  
 9 

 6. Specific Terms of Awards.  

(a) General. Awards may be granted on the terms and conditions set forth in this Section 6. Awards granted under this Plan may, in
the discretion of the Committee, be granted either alone, in addition to, or in tandem with any other Award. In addition, the Committee may impose on any Award or the exercise thereof, at the date of grant or thereafter (subject to
Section 8(a)), such additional terms and conditions, not inconsistent with the provisions of this Plan, as the Committee shall determine. 

(b) Options. The Committee is authorized to grant Options, which may be designated as either ISOs or Nonstatutory Stock Options, to
Eligible Persons on the following terms and conditions: 
 (i) Exercise Price. Each Award Agreement evidencing an Option shall state
the exercise price per share of Stock (the “Exercise Price”); provided, however, that except as provided in Section 6(j), the Exercise Price per share of Stock subject to an Option shall not be less than
the greater of (A) the par value per share of the Stock or (B) 100% of the Fair Market Value per share of the Stock as of the date of grant of the Option (or in the case of an ISO granted to an individual who owns stock possessing more
than 10% of the total combined voting power of all classes of stock of the Company or its parent or any Subsidiary, 110% of the Fair Market Value per share of the Stock on the date of grant). 

(ii) Time and Method of Exercise. The Committee shall determine the time or times at which or the circumstances under which an Option
may be exercised in whole or in part (including based on achievement of performance goals pursuant to Section 6(k) hereof and/or future service requirements), the methods by which such Exercise Price may be paid or deemed to be paid, the form
of such payment, including without limitation, cash or cash equivalents, Stock (including previously owned shares or through a cashless or broker-assisted exercise or other reduction of the amount of shares otherwise issuable pursuant to the
Option), other Awards or awards granted under other plans of the Company or any Subsidiary, other property, or any other legal consideration the Committee deems appropriate (including notes or other contractual obligations of Participants to make
payment on a deferred basis), and the methods by or forms in which Stock will be delivered or deemed to be delivered to Participants, including, but not limited to, the delivery of Restricted Stock subject to Section 6(d). In the case of an
exercise whereby the Exercise Price is paid with Stock, such Stock shall be valued as of the date of exercise. No Option may be exercisable for a period of more than ten (10) years following the date of grant of the Option (or in the case of an
ISO granted to an individual who owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or its parent or any Subsidiary, for a period of no more than five (5) years following the date of
grant of the ISO). 
 (iii) ISOs. The terms of any ISO granted under this Plan shall comply in all respects with the provisions of
section 422 of the Code. ISOs may only be granted to Eligible Persons who are employees of the Company or employees of a parent or Subsidiary corporation of the Company. Except as otherwise provided in Section 8, no term of this Plan relating
to ISOs (including any SAR in tandem therewith) shall be interpreted, amended or altered, nor shall any discretion or authority granted under this Plan be exercised, so as to 

  
 10 

 
disqualify either this Plan or any ISO under section 422 of the Code, unless the Participant has first requested the change that will result in such disqualification. ISOs shall not be granted
more than ten years after the earlier of the adoption of this Plan or the approval of this Plan by the Company’s stockholders. Notwithstanding the foregoing, the Fair Market Value of shares of Stock subject to an ISO and the aggregate Fair
Market Value of shares of stock of any parent or subsidiary corporation (within the meaning of sections 424(e) and (f) of the Code) subject to any other ISO (within the meaning of section 422 of the Code) of the Company or a parent or
subsidiary corporation (within the meaning of sections 424(e) and (f) of the Code) that first becomes purchasable by a Participant in any calendar year may not (with respect to that Participant) exceed $100,000, or such other amount as may be
prescribed under section 422 of the Code or applicable regulations or rulings from time to time. As used in the previous sentence, Fair Market Value shall be determined as of the date the ISOs are granted. Failure to comply with this provision shall
not impair the enforceability or exercisability of any Option, but shall cause the excess amount of shares to be reclassified in accordance with the Code. 

(c) Stock Appreciation Rights. The Committee is authorized to grant SARs to Eligible Persons on the following terms and conditions:

 (i) Right to Payment. An SAR shall confer on the Participant to whom it is granted a right to receive, upon exercise thereof, the
excess of (A) the Fair Market Value of one share of Stock on the date of exercise over (B) the grant price of the SAR as determined by the Committee. 

(ii) Grant Price. Each Award Agreement evidencing an SAR shall state the grant price per share of Stock; provided,
however, that the grant price per share of Stock subject to an SAR shall not be less than the greater of (A) the par value per share of the Stock or (B) 100% of the Fair Market Value per share of the Stock as of the date of grant of
the SAR. 
 (iii) Time and Method of Exercise. Except as otherwise provided herein, the Committee shall determine, at the date of
grant or thereafter, the number of shares of Stock to which the SAR relates, the time or times at which and the circumstances under which an SAR may be vested and/or exercised in whole or in part (including based on achievement of performance goals
pursuant to Section 6(k) hereof and/or future service requirements), the method of exercise, method of settlement, form of consideration payable upon settlement, method by or forms in which Stock (if any) will be delivered to Participants, and
any other terms and conditions of any SAR. SARs may be either free-standing or in tandem with other Awards. No SAR may be exercisable for a period of more than ten (10) years following the date of grant of the SAR. 

(iv) Rights Related to Options. An SAR granted in connection with an Option shall entitle a Participant, upon exercise, to surrender
that Option or any portion thereof, to the extent unexercised, and to receive payment of an amount determined by multiplying (A) the difference obtained by subtracting the Exercise Price with respect to a share of Stock specified in the related
Option from the Fair Market Value of a share of Stock on the date of exercise of the SAR, by (B) the number of shares as to which that SAR has been exercised. The Option shall then cease to be exercisable to the extent surrendered. SARs granted
in connection with an Option shall be subject to the terms and conditions of the Award Agreement governing 

  
 11 

 
the Option, which shall provide that the SAR is exercisable only at such time or times and only to the extent that the related Option is exercisable and shall not be transferable except to the
extent that the related Option is transferrable. 
 (d) Restricted Stock. The Committee is authorized to grant Restricted Stock to
Eligible Persons on the following terms and conditions: 
 (i) Grant and Restrictions. Restricted Stock shall be subject to such
restrictions on transferability, risk of forfeiture and other restrictions, if any, as the Committee may impose, which restrictions may lapse separately or in combination at such times, under such circumstances (including based on achievement of
performance goals pursuant to Section 6(k) hereof and/or future service requirements), in such installments or otherwise, as the Committee may determine at the date of grant or thereafter. During the restricted period applicable to the
Restricted Stock, the Restricted Stock may not be sold, transferred, pledged, hypothecated, margined or otherwise encumbered by the Participant. 

(ii) Dividends and Splits. As a condition to the grant of an Award of Restricted Stock, the Committee may allow a Participant to
elect, or may require, that any cash dividends paid on a share of Restricted Stock be automatically reinvested in additional shares of Restricted Stock, applied to the purchase of additional Awards under this Plan or deferred without interest to the
date of vesting of the associated Award of Restricted Stock; provided, that, to the extent applicable, any such election is intended to comply with the Nonqualified Deferred Compensation Rules. Unless otherwise determined by the Committee and
specified in the applicable Award Agreement, Stock distributed in connection with a Stock split or Stock dividend, and other property (other than cash) distributed as a dividend, shall be subject to restrictions and a risk of forfeiture to the same
extent as the Restricted Stock with respect to which such Stock or other property has been distributed. 
 (e) Restricted Stock
Units. The Committee is authorized to grant Restricted Stock Units to Eligible Persons, subject to the following terms and conditions: 

(i) Award and Restrictions. Restricted Stock Units shall be subject to such restrictions (which may include a risk of forfeiture) as
the Committee may impose, if any, which restrictions may lapse at the expiration of the deferral period or at earlier specified times (including based on achievement of performance goals and/or future service requirements), separately or in
combination, in installments or otherwise, as the Committee may determine. 
 (ii) Settlement. Settlement of Restricted Stock Units
shall occur upon expiration of the deferral period specified for such Restricted Stock Unit by the Committee (or, if permitted by the Committee, as elected by the Participant). Restricted Stock Units shall be satisfied by the delivery of (A) a
number of shares of Stock equal to the number of RSUs vesting on such date, or (B) cash in an amount equal to the Fair Market Value of the specified number of shares of Stock covered by the vesting Restricted Stock Units, or a combination
thereof, as determined by the Committee at the date of grant or thereafter. 
 (f) Stock Awards. The Committee is authorized to grant
a Stock Award under the Plan to any Eligible Person as a bonus, as additional compensation, or in lieu of cash compensation the individual is otherwise entitled to receive, in such amounts and subject to such other terms as the Committee in its
discretion determines to be appropriate. 

  
 12 

 (g) Dividend Equivalents. The Committee is authorized to grant Dividend Equivalents to an
Eligible Person, entitling the Eligible Person to receive cash, Stock, other Awards, or other property equal in value to dividends or other distributions paid with respect to a specified number of shares of Stock, or other periodic payments.
Dividend Equivalents may be awarded on a free-standing basis or in connection with another Award (other than an Award of Restricted Stock or a Stock Award). The Committee may provide that Dividend Equivalents shall be paid or distributed when
accrued or at a later specified date, and if distributed at a later date may be deemed to have been reinvested in additional Stock, Awards, or other investment vehicles or accrued in a bookkeeping account without interest, and subject to such
restrictions on transferability and risks of forfeiture, as the Committee may specify. With respect to Dividend Equivalents granted in connection with another Award, absent a contrary provision in the Award Agreement, such Dividend Equivalents shall
be subject to the same restrictions and risk of forfeiture as the Award with respect to which the dividends accrue and shall not be paid unless and until such Award has vested and been earned. Notwithstanding the foregoing, Dividend Equivalents
shall only be paid in a manner that is either exempt from or in compliance with the Nonqualified Deferred Compensation Rules. 
 (h)
Other Stock-Based Awards. The Committee is authorized, subject to limitations under applicable law, to grant to Eligible Persons such other Awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise
based on, or related to, Stock, as deemed by the Committee to be consistent with the purposes of this Plan, including without limitation convertible or exchangeable debt securities, other rights convertible or exchangeable into Stock, purchase
rights for Stock, Awards with value and payment contingent upon performance of the Company or any other factors designated by the Committee, and Awards valued by reference to the book value of Stock or the value of securities of or the performance
of specified Subsidiaries of the Company. The Committee shall determine the terms and conditions of such Other Stock-Based Awards. Stock delivered pursuant to an Other-Stock Based Award in the nature of a purchase right granted under this
Section 6(h) shall be purchased for such consideration, paid for at such times, by such methods, and in such forms, including, without limitation, cash, Stock, other Awards, or other property, as the Committee shall determine. 

(i) Cash Awards. The Committee is authorized to grant Cash Awards, on a free-standing basis or as an element of or supplement to, or in
lieu of, any other Award under this Plan to Eligible Persons in such amounts and subject to such other terms (including the achievement of performance goals pursuant to Section 6(k) hereof and/or future service requirements) as the Committee in
its discretion determines to be appropriate. 
 (j) Substitute Awards; No Repricing. Awards may be granted in substitution or
exchange for any other Award granted under the Plan or under another plan of the Company or any other right of an Eligible Person to receive payment from the Company. Awards may be also be granted under the Plan in substitution for similar awards
held by individuals who become Eligible Persons as a result of a merger, consolidation or acquisition of another entity or the assets of another entity by or with the Company or an Affiliate of the Company. Such Substitute

  
 13 

 
Awards referred to in the immediately preceding sentence that are Options or Stock Appreciation Rights may have an exercise price that is less than the Fair Market Value of a share of Stock on
the date of the substitution if such substitution complies with the Nonqualified Deferred Compensation Rules and other applicable laws and exchange rules. Except as provided in this Section 6(j) or in Section 8 hereof, the terms of
outstanding Awards may not be amended to reduce the Exercise Price or grant price of outstanding Options or SARs or to cancel outstanding Options and SARs in exchange for cash, other Awards or Options or SARs with an Exercise Price or grant price
that is less than the Exercise Price or grant price of the original Options or SARs without the approval of the stockholders of the Company. 

(k) Performance Awards. The Committee is authorized to designate any of the Awards granted under the foregoing provisions of this
Section 6 as Performance Awards. The Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance conditions applicable to a Performance Award, and may exercise its
discretion to reduce or increase the amounts payable under any Performance Award, except as limited under Section 6(k)(i) hereof in the case of a Section 162(m) Award. Performance conditions may differ for Performance Awards granted to any
one Participant or to different Participants. The performance period applicable to any Performance Award shall be set by the Committee in its discretion but shall not exceed ten years. 

(i) Section 162(m) Awards. If the Committee determines that a Performance Award granted to a Covered Employee is intended to
qualify as a Section 162(m) Award, the grant, exercise, vesting and/or settlement of such Performance Award shall be contingent upon achievement of a pre-established performance goal or goals and other terms set forth in this
Section 6(k)(i); provided, however, that nothing in this Section 6(k) or elsewhere in the Plan shall be interpreted as preventing the Committee from granting Awards to Covered Employees that are not intended to constitute
Section 162(m) Awards or from determining that it is no longer necessary or appropriate for a Section 162(m) Award to qualify as such. 

(A) Performance Goals Generally. The performance goals for Section 162(m) Awards shall consist of one or more business criteria
and a targeted level or levels of performance with respect to each of such criteria as specified by the Committee. Performance goals shall be objective and shall otherwise meet the requirements of section 162(m) of the Code and regulations
thereunder (including Treasury Regulation §1.162-27 and successor regulations thereto), including the requirement that the level or levels of performance targeted by the Committee must be “substantially uncertain” at the time the
Committee actually establishes the performance goal or goals. 
 (B) Performance Criteria. 

(1) Business Criteria. One or more of the following business criteria for the Company, on a consolidated basis, and/or for specified
Subsidiaries or business or geographical units of the Company (except with respect to the total stockholder return and earnings per share criteria), shall be used by the Committee in establishing performance goals for Section 162(m) Awards:
(1) earnings per share; (2) revenues; (3) cash flow; (4) cash flow from operations; (5) cash flow return; (6) return on net assets; (7) return on assets; (8) return on investment; (9) return on capital;
(10) return on equity; (11) economic value 

  
 14 

 
added; (12) operating margin; (13) contribution margin; (14) net income; (15) net income per share; (16) earnings; (17) earnings before interest, depreciation and
amortization; (18) operating earnings after interest expense and before incentives, service fees, and extraordinary or special items; (19) total stockholder return; (20) debt reduction or management; (21) market share;
(22) change in the Fair Market Value of the Stock; (23) operating income; (24) share price; (25) effective equipment utilization; (26) achievement of savings from business improvement projects; (27) capital projects
deliverables; (28) performance against environmental targets; (29) safety performance and/or incident rate; (30) human resources management targets, including medical cost reductions and time to hire; (31) satisfactory internal
or external audits; and (32) any of the above goals determined pre-tax or post-tax, on an absolute or relative basis, as a ratio with other business criteria, or as compared to the performance of a published or special index deemed applicable
by the Committee including, but not limited to, the Standard & Poor’s 500 Stock Index or a group of comparable companies. The terms above are used as applied under generally accepted accounting principles, as applicable. 

(2) Effect of Certain Events. The Committee may, at the time the performance goals in respect of a Section 162(m) Award are
established, provide for the manner in which actual performance and performance goals with regard to the business criteria selected will reflect the impact of specified events during the relevant performance period, which may mean excluding the
impact of any or all of the following events or occurrences for such performance period: (a) asset write-downs or impairments to assets; (b) litigation, claims, judgments or settlements; (c) the effect of changes in tax law or other
such laws or regulations affecting reported results; (d) accruals for reorganization and restructuring programs; (e) any unusual or infrequent items as described in the Accounting Standards Codification Topic 225, as amended by Accounting
Standards Update 2015-01, and as the same may be further amended or superseded from time to time; (f) any change in accounting principles as defined in the Accounting Standards Codification Topic 250, as the same may be amended or superseded
from time to time; (g) any loss from a discontinued operation as described in the Accounting Standards Codification Topic 360, as the same may be amended or superseded from time to time; (h) goodwill impairment charges; (i) operating
results for any business acquired during the calendar year; (j) third party expenses associated with any investment or acquisition by the Company or any Subsidiary; (k) any amounts accrued by the Company or its Subsidiaries pursuant to
management bonus plans or cash profit sharing plans and related employer payroll taxes for the fiscal year; (l) any discretionary or matching contributions made to a savings and deferred profit-sharing plan or deferred compensation plan for the
fiscal year; (m) interest, expenses, taxes, depreciation and depletion, amortization and accretion charges; and (n) marked-to-market adjustments for financial instruments. In addition, Section 162(m) Awards may be adjusted by the
Committee in accordance with the provisions of Section 8(b) through 8(g) of the Plan. The adjustments described in this paragraph shall only be made, in each case, to the extent that such adjustments in respect of a Section 162(m) Award
would not cause the Award to fail to qualify as “performance-based compensation” under section 162(m) of the Code. 
 (C)
Timing for Establishing Performance Goals. No later than 90 days after the beginning of any performance period applicable to a Section 162(m) Award, or at such other date as may be required or permitted for “performance-based
compensation” under section 162(m) of the Code, the Committee shall establish (i) the Eligible Persons who will be granted Section 162(m) Awards, and (ii) the objective formula used to calculate the amount of

  
 15 

 
cash or stock payable, if any, under such Section 162(m) Awards, based upon the level of achievement of a performance goal or goals with respect to one or more of the business criteria
selected by the Committee from the list set forth in Section 6(k)(i)(B) hereof. 
 (D) Performance Award Pool. The Committee
may establish an unfunded pool, with the amount of such pool calculated using an objective formula based upon the level of achievement of a performance goal or goals with respect to one or more of the business criteria selected from the list set
forth in Section 6(k)(i)(B) hereof during the given performance period, as specified by the Committee in accordance with Section 6(k)(i)(C) hereof. The Committee may specify the amount of the pool as a percentage of any of such business
criteria, a percentage in excess of a threshold amount with respect to such business criteria, or as another amount which need not bear a direct relationship to such business criteria but shall be objectively determinable and calculated based upon
the level of achievement of pre-established goals with regard to the business criteria. 
 (E) Settlement or Payout of Awards; Other
Terms. Except as otherwise permitted under section 162(m) of the Code, after the end of each performance period and before any Section 162(m) Award is settled or paid, the Committee shall certify the level of performance achieved with
regard to each business criteria established with respect to each Section 162(m) Award and shall determine the amount of cash or Stock, if any, payable to each Participant with respect to each Section 162(m) Award. The Committee may, in
its discretion, reduce the amount of a payment or settlement otherwise to be made in connection with a Section 162(m) Award, but may not exercise discretion to increase any such amount payable to a Covered Employee in respect of a
Section 162(m) Award. 
 (F) Written Determinations. With respect to each Section 162(m) Award, all determinations by the
Committee as to (A) the establishment of performance goals and performance period with respect to the selected business criteria, (B) the establishment of the objective formula used to calculate the amount of cash or stock payable, if any,
based on the level of achievement of such performance goals, and (C) the certification of the level of performance achieved during the performance period with regard to each business criteria selected, shall each be made in writing. Consistent
with the terms of Section 3(b) hereof, when taking any action with respect to Section 162(m) Awards, the Committee shall be made up entirely of Qualified Members. Further, the Committee may not delegate any responsibility relating to a
Section 162(m) Award that would cause the Award to fail to so qualify. 
 (G) Options and SARs. Notwithstanding the foregoing
provisions of this Section 6(k)(i), Options and SARs with an Exercise Price or grant price not less than the Fair Market Value on the date of grant awarded to Covered Employees are intended to be Section 162(m) Awards even if not otherwise
contingent upon achievement of a pre-established performance goal or goals with respect to the business criteria listed above. 
 (ii)
Status of Section 162(m) Awards. The terms governing Section 162(m) Awards shall be interpreted in a manner consistent with section 162(m) of the Code and the regulations thereunder, in particular the prerequisites for qualification
as “performance-based compensation,” and, if any provision of this Plan as in effect on the date of adoption of any Award Agreements relating to Performance Awards that are designated as Section 162(m)

  
 16 

 
Awards does not comply or is inconsistent with the requirements of section 162(m) of the Code and the regulations thereunder, such provision shall be construed or deemed amended to the extent
necessary to conform to such requirements. 
 7. Certain Provisions Applicable to Awards. 

(a) Limit on Transfer of Awards. 

(i) Except as provided in Section 7(a)(iii) and (iv) below, each Option and SAR shall be exercisable only by the Participant during
the Participant’s lifetime, or by the Person to whom the Participant’s rights shall pass by will or the laws of descent and distribution. Notwithstanding the foregoing, an ISO shall not be transferable other than by will or the laws of
descent and distribution. 
 (ii) Except as provided in Section 7(a)(iii) and (iv) below, no Award other than a Stock Award, and
no right under any such Award may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void
and unenforceable against the Company or any Affiliate. 
 (iii) To the extent specifically provided by the Committee, an Award may be
transferred by a Participant without consideration to immediate family members or related family trusts, limited partnerships or similar entities or on such terms and conditions as the Committee may from time to time establish. 

(iv) An Award may be transferred pursuant to a domestic relations order entered or approved by a court of competent jurisdiction upon
delivery to the Company of a written request for such transfer and a certified copy of such order. 
 (b) Form and Timing of Payment
under Awards; Deferrals. Subject to the terms of this Plan and any applicable Award Agreement, payments to be made by the Company or any of its Subsidiaries upon the exercise or settlement of an Award may be made in such forms as the Committee
shall determine in its discretion, including without limitation cash, Stock, other Awards or other property, and may be made in a single payment or transfer, in installments, or on a deferred basis (which may be required by the Committee or
permitted at the election of the Participant on terms and conditions established by the Committee); provided, however, that any such deferred or installment payments will be set forth in the Award Agreement and/or otherwise made in a
manner that will not result in additional taxes under the Nonqualified Deferred Compensation Rules. Payments may include, without limitation, provisions for the payment or crediting of reasonable interest on installment or deferred payments or the
grant or crediting of Dividend Equivalents or other amounts in respect of installment or deferred payments denominated in Stock. This Plan shall not constitute an “employee benefit plan” for purposes of section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended. 
 (c) Evidencing Stock. The Stock or other securities of the Company delivered
pursuant to an Award may be evidenced in any manner deemed appropriate by the Committee in its sole discretion, including, but not limited to, in the form of a certificate issued in the name of 

  
 17 

 
the Participant or by book entry, electronic or otherwise and shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules,
regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such Stock or other securities are then listed, and any applicable federal, state or other laws, and the Committee may cause a legend or
legends to be inscribed on any such certificates to make appropriate reference to such restrictions. If certificates representing Restricted Stock are registered in the name of the Participant, the Committee may require that such certificates bear
an appropriate legend referring to the terms, conditions and restrictions applicable to such Restricted Stock, that the Company retain physical possession of the certificates, and that the Participant deliver a stock power to the Company, endorsed
in blank, related to the Restricted Stock 
 (d) Consideration for Grants. Awards may be granted for such consideration, including
services, as the Committee shall determine, but shall not be granted for less than the minimum lawful consideration. 
 (e) Additional
Agreements. Each Eligible Person to whom an Award is granted under this Plan may be required to agree in writing, as a condition to the grant of such Award or otherwise, to subject an Award that is exercised or settled following such Eligible
Person’s termination of employment or service to a general release of claims and/or a noncompetition or other restricted covenant agreement in favor of the Company and its Affiliates, with the terms and conditions of such agreement(s) to be
determined in good faith by the Committee. 
 (f) Termination of Service. Except as provided herein, the treatment of an Award upon a
termination of employment or any other service relationship by and between a Participant and the Company or any Affiliate shall be specified in the applicable Award Agreement. 

8. Amendment; Subdivision or Consolidation; Recapitalization; Change of Control; Reorganization. 

(a) Amendments to the Plan and Awards. The Board may amend, alter, suspend, discontinue or terminate this Plan or the Committee’s
authority to grant Awards under this Plan without the consent of stockholders or Participants, except that any amendment or alteration to this Plan, including any increase in any share limitation, shall be subject to the approval of the
Company’s stockholders not later than the annual meeting next following such Board action if such stockholder approval is required by any federal or state law or regulation or the rules of any stock exchange or automated quotation system on
which the Stock may then be listed or quoted, and the Board may otherwise, in its discretion, determine to submit other such changes to this Plan to stockholders for approval; provided, that, without the consent of an affected Participant, no
such Board action may materially and adversely affect the rights of such Participant under any previously granted and outstanding Award. The Committee may waive any conditions or rights under, or amend, alter, suspend, discontinue or terminate any
Award theretofore granted and any Award Agreement relating thereto, except as otherwise provided in this Plan; provided, however, that, without the consent of an affected Participant, no such Committee action may materially and
adversely affect the rights of such Participant under such 

  
 18 

 
Award. For purposes of clarity, any adjustments made to Awards pursuant to Section 8(b) through 8(g) will be deemed not to materially and adversely affect the rights of any Participant under
any previously granted and outstanding Award and therefore may be made without the consent of affected Participants. 
 (b) Existence of
Plans and Awards. The existence of this Plan and the Awards granted hereunder shall not affect in any way the right or power of the Company, the Board or the stockholders of the Company to make or authorize any adjustment, recapitalization,
reorganization or other change in the Company’s capital structure or its business, any merger or consolidation of the Company, any issue of debt or equity securities ahead of or affecting Stock or the rights thereof, the dissolution or
liquidation of the Company or any sale, lease, exchange or other disposition of all or any part of its assets or business or any other corporate act or proceeding. In no event will any action taken by the Committee pursuant to this Section 8
result in the creation of deferred compensation within the meaning of the Nonqualified Deferred Compensation Rules. 
 (c) Subdivision or
Consolidation of Shares. The terms of an Award and the share limitations under the Plan shall be subject to adjustment by the Committee from time to time, in accordance with the following provisions: 

(i) If at any time, or from time to time, the Company shall subdivide as a whole (by reclassification, by a Stock split, by the issuance of a
distribution on Stock payable in Stock, or otherwise) the number of shares of Stock then outstanding into a greater number of shares of Stock or in the event the Company distributes an extraordinary cash dividend, then, as appropriate (A) the
maximum number of shares of Stock available for the Plan or in connection with Awards as provided in Sections 4 and 5 shall be increased proportionately, and the kind of shares or other securities available for the Plan shall be appropriately
adjusted, (B) the number of shares of Stock (or other kind of shares or securities) that may be acquired under any then outstanding Award shall be increased proportionately, and (C) the price (including the Exercise Price or grant price)
for each share of Stock (or other kind of shares or securities) subject to then outstanding Awards shall be reduced proportionately, without changing the aggregate purchase price or value as to which outstanding Awards remain exercisable or subject
to restrictions. 
 (ii) If at any time, or from time to time, the Company shall consolidate as a whole (by reclassification, by reverse
Stock split, or otherwise) the number of shares of Stock then outstanding into a lesser number of shares of Stock, then, as appropriate (A) the maximum number of shares of Stock available for the Plan or in connection with Awards as provided in
Sections 4 and 5 shall be decreased proportionately, and the kind of shares or other securities available for the Plan shall be appropriately adjusted, (B) the number of shares of Stock (or other kind of shares or securities) that may be
acquired under any then outstanding Award shall be decreased proportionately, and (C) the price (including the exercise price) for each share of Stock (or other kind of shares or securities) subject to then outstanding Awards shall be increased
proportionately, without changing the aggregate purchase price or value as to which outstanding Awards remain exercisable or subject to restrictions. 

  
 19 

 (iii) Whenever the number of shares of Stock subject to outstanding Awards and the price for
each share of Stock subject to outstanding Awards are required to be adjusted as provided in this Section 8(c), the Committee shall promptly prepare a notice setting forth, in reasonable detail, the event requiring adjustment, the amount of the
adjustment, the method by which such adjustment was calculated, and the change in price and the number of shares of Stock, other securities, cash, or property purchasable subject to each Award after giving effect to the adjustments. The Committee
shall promptly provide each affected Participant with such notice. 
 (d) Recapitalization. If the Company recapitalizes,
reclassifies its capital stock, or otherwise changes its capital structure (a “recapitalization”) without the occurrence of a Change of Control, the number and class of shares of Stock covered by an Award theretofore granted
shall be adjusted so that such Award shall thereafter cover the number and class of shares of Stock and securities to which the holder would have been entitled pursuant to the terms of the recapitalization if, immediately prior to the
recapitalization, the holder had been the holder of record of the number of shares of Stock then covered by such Award and the share limitations provided in Sections 4 and 5 shall be adjusted in a manner consistent with the recapitalization. 

(e) Additional Issuances. Except as expressly provided herein, the issuance by the Company of shares of stock of any class or
securities convertible into shares of stock of any class, for cash, property, labor or services, upon direct sale, upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares or obligations of the Company convertible
into such shares or other securities, and in any case whether or not for fair value, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Stock subject to Awards theretofore granted or the
purchase price per share of Stock, if applicable. 
 (f) Change of Control and Other Events. Notwithstanding any other provisions of
the Plan or an Award Agreement to the contrary, upon a Change of Control or changes in the outstanding Stock by reason of a recapitalization, reorganization, merger, consolidation, combination, exchange or other relevant change in capitalization
occurring after the date of the grant of any Award and not otherwise provided for by this Section 8, the Committee, acting in its sole discretion without the consent or approval of any holder, may effect one or more of the following
alternatives, which may vary among individual holders and which may vary among Options, SARs or other Awards held by any individual holder: (i) remove any applicable forfeiture restrictions on any Award; (ii) accelerate the time of
exercisability of an Award so that such Award may be exercised in full or in part for a limited period of time on or before a date specified by the Committee, before or after such Change of Control, after which specified date all unexercised Awards
and all rights of holders thereunder shall terminate; (iii) provide for a cash payment with respect to outstanding Awards by requiring the mandatory surrender to the Company by selected holders of some or all of the outstanding Awards held by
such holders (irrespective of whether such Awards are then vested or exercisable pursuant to the Plan) as of a date, before or after such Change of Control, specified by the Committee, in which event the Committee shall thereupon cancel such Awards
(with respect to all shares subject to such Awards) and pay to each holder an amount of cash (or other consideration including securities or other property) per Award (other than a Dividend Equivalent or Cash Award) equal to the Change of Control
Price (as defined below), less the Exercise Price with respect to an 

  
 20 

 
Option and less the grant price with respect to a SAR, as applicable to such Awards; provided, however, that to the extent the exercise price of an Option or an SAR exceeds the
Change of Control Price, such award may be canceled for no consideration; (iv) cancel Awards that remain subject to a restricted period as of the date of a Change of Control without payment of any consideration to the Participant for such
Awards; or (v) make such adjustments to Awards then outstanding as the Committee deems appropriate to reflect such Change of Control (including, but not limited to, (x) the substitution, assumption, or continuation of Awards by the
successor company or a parent or subsidiary thereof for new awards, and (y) the adjustment as to the number and price of shares of Stock or other consideration subject to such Awards); provided, however, that the Committee may
determine in its sole discretion that no adjustment is necessary to Awards then outstanding. 
 (g) Change of Control Price. The
“Change of Control Price” shall equal the amount determined in the following clause (i), (ii), (iii), (iv) or (v), whichever is applicable, as follows: (i) the price per share offered to holders of Stock in any
merger or consolidation, (ii) the per share Fair Market Value of the Stock immediately before the Change of Control without regard to assets sold in the Change of Control and assuming the Company has received the consideration paid for the
assets in the case of a sale of the assets, (iii) the amount distributed per share of Stock in a dissolution transaction, (iv) the price per share offered to holders of Stock in any tender offer or exchange offer whereby a Change of
Control takes place, or (v) if such Change of Control occurs other than pursuant to a transaction described in clauses (i), (ii), (iii), or (iv) of this Section 8(g), the Fair Market Value per share of the Stock that may otherwise be
obtained with respect to such Awards or to which such Awards track, as determined by the Committee as of the date determined by the Committee to be the date of cancellation and surrender of such Awards. In the event that the consideration offered to
stockholders of the Company in any transaction described in this Section 8(g) or in Section 8(f) consists of anything other than cash, the Committee shall determine the fair cash equivalent of the portion of the consideration offered which
is other than cash and such determination shall be binding on all affected Participants to the extent applicable to Awards held by such Participants. 

9. General Provisions. 

(a) Tax Withholding. The Company and any of its Subsidiaries are authorized to withhold from any Award granted, or any payment relating
to an Award under this Plan, including from a distribution of Stock, amounts of withholding and other taxes due or potentially payable in connection with any transaction involving an Award, and to take such other action as the Committee may deem
advisable to enable the Company, its Subsidiaries and Participants to satisfy obligations for the payment of withholding taxes and other tax obligations relating to any Award. The Committee shall determine, in its sole discretion, the form of
payment acceptable for such tax withholding obligations, including, without limitation, the delivery of cash or cash equivalents, Stock (including previously owned shares, net settlement, a broker-assisted sale, or other cashless withholding or
reduction of the amount of shares otherwise issuable or delivered pursuant to the Award), other property, or any other legal consideration the Committee deems appropriate. Any determination made by the Committee to allow a Participant who is subject
to Rule 16b-3 to pay taxes with shares of Stock through net settlement or previously owned shares shall be approved by a committee made up of two or more Qualified Members or the full Board. If such tax obligations are satisfied through the
withholding of 

  
 21 

 
shares of Stock that are otherwise issuable to the Participant pursuant to an Award (or through the surrender of shares of Stock by the Participant to the Company), the maximum number of shares
of Stock that may be so withheld (or surrendered) shall be the number of shares of Stock that have an aggregate Fair Market Value on the date of withholding or repurchase equal to the aggregate amount of such tax liabilities determined based on the
greatest withholding rates for federal, state, foreign and/or local tax purposes, including payroll taxes, that may be utilized without creating adverse accounting treatment with respect to such Award, as determined by the Committee. 

(b) Limitation on Rights Conferred under Plan. Neither this Plan nor any action taken hereunder shall be construed as (i) giving
any Eligible Person or Participant the right to continue as an Eligible Person or Participant or in the employ or service of the Company or any of its Subsidiaries, (ii) interfering in any way with the right of the Company or any of its
Subsidiaries to terminate any Eligible Person’s or Participant’s employment or service relationship at any time, (iii) giving an Eligible Person or Participant any claim to be granted any Award under this Plan or to be treated
uniformly with other Participants and/or employees and/or other service providers, or (iv) conferring on a Participant any of the rights of a stockholder of the Company unless and until the Participant is duly issued or transferred shares of
Stock in accordance with the terms of an Award. 
 (c) Governing Law; Submission to Jurisdiction. All questions arising with respect
to the provisions of the Plan and Awards shall be determined by application of the laws of the State of Delaware, without giving effect to any conflict of law provisions thereof, except to the extent Delaware law is preempted by federal law. The
obligation of the Company to sell and deliver Stock hereunder is subject to applicable federal and state laws and to the approval of any governmental authority required in connection with the authorization, issuance, sale, or delivery of such Stock.
With respect to any claim or dispute related to or arising under this Plan, the Company and the Participants consent to the exclusive jurisdiction, forum and venue of the state and federal courts located in Oklahoma City, Oklahoma. 

(d) Severability and Reformation. If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal, or
unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable law or, if
it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person or Award and the remainder of the Plan
and any such Award shall remain in full force and effect. If any of the terms or provisions of this Plan or any Award Agreement conflict with the requirements of Rule 16b-3 (as those terms or provisions are applied to Eligible Persons who are
subject to section 16(b) of the Exchange Act) or section 422 of the Code (with respect to Incentive Stock Options), then those conflicting terms or provisions shall be deemed inoperative to the extent they so conflict with the requirements of Rule
16b-3 (unless the Board or the Committee, as appropriate, has expressly determined that the Plan or such Award should not comply with Rule 16b-3) or section 422 of the Code. With respect to Incentive Stock Options, if this Plan does not contain any
provision required to be included herein under section 422 of the Code, that provision shall be deemed to be incorporated herein with the same force and effect as if that provision had been set out at length herein; provided,

  
 22 

 
further, that, to the extent any Option that is intended to qualify as an Incentive Stock Option cannot so qualify, that Option (to that extent) shall be deemed a Nonstatutory Stock Option for
all purposes of the Plan. 
 (e) Unfunded Status of Awards; No Trust or Fund Created. This Plan is intended to constitute an
“unfunded” plan for certain incentive awards. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Affiliate and a Participant or
any other Person. To the extent that any Person acquires a right to receive payments from the Company or any Affiliate pursuant to an Award, such right shall be no greater than the right of any general unsecured creditor of the Company or such
Affiliate. 
 (f) Nonexclusivity of this Plan. Neither the adoption of this Plan by the Board nor its submission to the stockholders
of the Company for approval shall be construed as creating any limitations on the power of the Board or a committee thereof to adopt such other incentive arrangements as it may deem desirable, including incentive arrangements and awards which do not
constitute “performance-based compensation” under section 162(m) of the Code. Nothing contained in this Plan shall be construed to prevent the Company or any of its Subsidiaries from taking any corporate action which is deemed by the
Company or such Subsidiary to be appropriate or in its best interest, whether or not such action would have an adverse effect on this Plan or any Award made under this Plan. No employee, beneficiary or other Person shall have any claim against the
Company or any of its Subsidiaries as a result of any such action. 
 (g) Fractional Shares. No fractional shares of Stock shall be
issued or delivered pursuant to the Plan or any Award, and the Committee shall determine in its sole discretion whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional shares of Stock or whether such
fractional shares of Stock or any rights thereto shall be canceled, terminated, or otherwise eliminated with or without consideration. 

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

(i) Facility of Payment. Any amounts payable hereunder to any individual under legal disability or who, in the judgment of the
Committee, is unable to manage properly his financial affairs, may be paid to the legal representative of such individual, or may be applied for the benefit of such individual in any manner that the Committee may select, and the Company shall be
relieved of any further liability for payment of such amounts. 
 (j) Gender and Number. Words in the masculine gender shall include
the feminine gender, the plural shall include the singular and the singular shall include the plural. 
 (k) Conditions to Delivery of
Stock. Nothing herein or in any Award Agreement shall require the Company to issue any shares with respect to any Award if that issuance would, in the opinion of counsel for the Company, constitute a violation of the Securities Act or any
similar or superseding statute or statutes, any other applicable statute or 

  
 23 

 
regulation, or the rules of any applicable securities exchange or securities association, as then in effect. In addition, each Participant who receives an Award under this Plan shall not sell or
otherwise dispose of Stock that is acquired upon grant or vesting of an Award in any manner that would constitute a violation of any applicable federal or state securities laws, the Plan or the rules, regulations or other requirements of the
Securities and Exchange Commission or any stock exchange upon which the Stock is then listed. At the time of any exercise of an Option or Stock Appreciation Right, or at the time of any grant of any other Award the Company may, as a condition
precedent to the exercise of such Option or Stock Appreciation Right or settlement of any other Award, require from the Participant (or in the event of his or her death, his or her legal representatives, heirs, legatees, or distributees) such
written representations, if any, concerning the holder’s intentions with regard to the retention or disposition of the shares of Stock being acquired pursuant to the Award and such written covenants and agreements, if any, as to the manner of
disposal of such shares as, in the opinion of counsel to the Company, may be necessary to ensure that any disposition by that holder (or in the event of the holder’s death, his or her legal representatives, heirs, legatees, or distributees)
will not involve a violation of the Securities Act or any similar or superseding statute or statutes, any other applicable state or federal statute or regulation, or any rule of any applicable securities exchange or securities association, as then
in effect. Stock or other securities shall not be delivered pursuant to any Award until payment in full of any amount required to be paid pursuant to the Plan or the applicable Award Agreement (including, without limitation, any Exercise Price,
grant price, or tax withholding) is received by the Company. 
 (l) Section 409A of the Code. It is the general intention, but
not the obligation, of the Committee to design Awards to comply with or to be exempt from the Nonqualified Deferred Compensation Rules, and Awards will be operated and construed accordingly. Neither this Section 9(l) nor any other provision of
the Plan is or contains a representation to any Participant regarding the tax consequences of the grant, vesting, exercise, settlement, or sale of any Award (or the Stock underlying such Award) granted hereunder, and should not be interpreted as
such. In no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Employee on account of non-compliance with the Nonqualified Deferred Compensation Rules.
Notwithstanding any provision in this Plan or an Award Agreement to the contrary, in the event that a “specified employee” (as defined under the Nonqualified Deferred Compensation Rules) becomes entitled to a payment under an Award that
would be subject to additional taxes and interest under the Nonqualified Deferred Compensation Rules if the Participant’s receipt of such payment or benefits is not delayed until the earlier of (i) the date of the Participant’s death,
or (ii) the date that is six months after the Participant’s “separation from service,” as defined under the Nonqualified Deferred Compensation Rules (such date, the “Section 409A Payment Date”), then such
payment or benefit shall not be provided to the Participant until the Section 409A Payment Date. Any amounts subject to the preceding sentence that would otherwise be payable prior to the Section 409A Payment Date will be aggregated and
paid in a lump sum without interest on the Section 409A Payment Date. The applicable provisions of the Nonqualified Deferred Compensation Rules are hereby incorporated by reference and shall control over any Plan or Award Agreement provision in
conflict therewith. 
 (m) Clawback. This Plan is subject to any written clawback policies that the Company, with the approval of the
Board, may adopt. Any such policy may subject a 

  
 24 

 
Participant’s Awards and amounts paid or realized with respect to Awards under this Plan to reduction, cancelation, forfeiture or recoupment if certain specified events or wrongful conduct
occur, including but not limited to an accounting restatement due to the Company’s material noncompliance with financial reporting regulations or other events or wrongful conduct specified in any such clawback policy adopted to conform to the
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and rules promulgated thereunder by the Securities and Exchange Commission and that the Company determines should apply to this Plan. 

(n) Plan Effective Date and Term. This Plan was adopted by the Board on the Effective Date, and approved by the stockholders of the
Company on June 2, 2016, to be effective on the Effective Date. No Awards may be granted under this Plan on and after the tenth anniversary of the Effective Date. However, any Award granted prior to such termination, and the authority of the
Board or Committee to amend, alter, adjust, suspend, discontinue, or terminate any such Award or to waive any conditions or rights under such Award in accordance with the terms of this Plan, shall extend beyond such termination date until the final
disposition of such Award. 

  
 25

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00259-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00259-of-00352.parquet"}]]