Document:

Exhibit 10.2

 

[●], 2017

 

Hennessy Capital Acquisition Corp. III 

3485 N. Pines Way, Suite 110

Wilson, Wyoming 83014

  

	Re:	Initial Public Offering

 

Gentlemen:

 

This letter (this
“Letter Agreement”) is being delivered to you in accordance with the Underwriting Agreement (the “Underwriting
Agreement”) proposed to be entered into by and between Hennessy Capital Acquisition Corp. III, a Delaware corporation
(the “Company”), and Credit Suisse Securities (USA) LLC as representative (the “Representative”)
of the several underwriters named therein (the “Underwriters”), relating to an underwritten initial public
offering (the “Public Offering”), of 22,500,000 of the Company’s units (the “Units”),
each comprised of one share of the Company’s common stock, par value $0.0001 per share (the “Common Stock”),
and one half of one warrant (each, a “Warrant”). Each whole Warrant entitles the holder thereof to purchase
one share of the Common Stock at a price of $11.50 per share, subject to adjustment. The Units shall be sold in the Public Offering
pursuant to a registration statement on Form S-1 and prospectus (the “Prospectus”) filed by the Company
with the Securities and Exchange Commission (the “Commission”) and the Company shall apply to have the
Units listed on the NYSE MKT. Certain capitalized terms used herein are defined in paragraph 11 hereof.

 

In order to induce
the Company and the Underwriters to enter into the Underwriting Agreement and to proceed with the Public Offering and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Hennessy Capital Partners III LLC
(the “Sponsor”) and the undersigned individuals, each of whom is a director or officer to the Company
(each, an “Insider” and collectively, the “Insiders”), hereby agrees with the
Company as follows:

 

1.        The
Sponsor and each Insider agrees that if the Company seeks stockholder approval of a proposed Business Combination, then in connection
with such proposed Business Combination, it, he or she shall (i) vote any shares of Common Stock owned by it, him or her in favor
of such proposed Business Combination and (ii) not redeem any shares of Common Stock owned by it, him or her in connection with
such stockholder approval.

 

2.         The Sponsor and
each Insider agrees that in the event that the Company fails to consummate a Business Combination (as defined in the Underwriting
Agreement) within 24 months from the date of the closing of the Public Offering, or such later period approved by the Company’s
stockholders in accordance with the Company’s amended and restated certificate of incorporation, the Sponsor and Insiders
shall take all reasonable steps to cause the Company to (i) cease all operations except for the purpose of winding up, (ii) as
promptly as reasonably possible but not more than 10 business days thereafter, subject to lawfully available funds therefor, redeem
100% of the Common Stock sold as part of the Units in the Public Offering (the “Offering Shares”), at
a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest (less
up to $100,000 of interest to pay dissolution expenses and which interest shall be net of taxes and up to $500,000 of interest
released annually for working capital purposes), divided by the number of then outstanding Offering Shares, which redemption will
completely extinguish all Public Stockholders’ rights as stockholders (including the right to receive further liquidation
distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption,
subject to the approval of the Company’s remaining stockholders and the Company’s board of directors, dissolve and
liquidate, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and other
requirements of applicable law. The Sponsor and each Insider agree not to propose any amendment to the Company’s amended
and restated certificate of incorporation that would affect the substance or timing of the Company’s obligation to redeem
100% of the Offering Shares if the Company does not complete a Business Combination within 24 months from the closing of the Public
Offering, unless the Company provides its public stockholders with the opportunity to redeem their shares of Common Stock upon
approval of any such amendment at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust
account including interest (which interest shall be net of taxes payable and working capital released to the Company), divided
by the number of then outstanding Offering Shares.

 

     

     

    

 

The Sponsor and each
Insider acknowledges that it, he or she has no right, title, interest or claim of any kind in or to any monies held in the Trust
Account or any other asset of the Company as a result of any liquidation of the Company with respect to the Founder Shares held
by it. The Sponsor and each Insider hereby further waives, with respect to any shares of Common Stock held by it, him or her, if
any, any redemption rights it, he or she may have in connection with the consummation of a Business Combination, including, without
limitation, any such rights available in the context of a stockholder vote to approve such Business Combination or a stockholder
vote to approve an amendment to the Company’s amended and restated certificate of incorporation that would affect the substance
or timing of the Company’s obligation to redeem 100% of the Offering Shares if the Company has not consummated a Business
Combination within the time period set forth in the Company’s amended and restated certificate of incorporation or in the
context of a tender offer made by the Company to purchase shares of Common Stock (although the Sponsor, the Insiders and their
respective affiliates shall be entitled to redemption and liquidation rights with respect to any Offering Shares it or they hold
if the Company fails to consummate a Business Combination within 24 months from the date of the closing of the Public Offering).

 

3.         Subject
to the provisions set forth in paragraphs 7(a) and (b) below, during the period commencing on the effective date of the Underwriting
Agreement and ending 180 days after such date, the Sponsor and each Insider shall not (i) sell, offer to sell, contract or
agree to sell, hypothecate, pledge, grant any option to purchase or otherwise dispose of or agree to dispose of, directly or indirectly,
file (or participate in the filing of) a registration statement with the Commission or establish or increase a put equivalent position
or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Securities Exchange Act of 1934,
as amended, and the rules and regulations of the Commission promulgated thereunder, with respect to any Units, shares of Common
Stock, Warrants or any securities convertible into, or exercisable, or exchangeable for, shares of Common Stock owned by it, if
any, (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences
of ownership of any Units, shares of Common Stock, Warrants or any securities convertible into, or exercisable, or exchangeable
for, shares of Common Stock owned by it, if any, whether any such transaction is to be settled by delivery of such securities,
in cash or otherwise, or (iii) publicly announce any intention to effect any transaction specified in clause (i) or (ii).
The foregoing sentence shall not apply to the registration of the offer and sale of Units contemplated by the Underwriting Agreement
and the sale of the Units to the Underwriters. The Sponsor and each of the Insiders acknowledges and agrees that, prior to the
effective date of any release or waiver, of the restrictions set forth in this paragraph 3 or paragraph 7 below, the Company shall
announce the impending release or waiver by press release through a major news service at least two business days before the effective
date of the release or waiver. Any release or waiver granted shall only be effective two business days after the publication date
of such press release. The provisions of this paragraph will not apply if (i) the release or waiver is effected solely to
permit a transfer of securities that is not for consideration and (ii) the transferee has agreed in writing to be bound by
the same terms described in this Letter Agreement to the extent and for the duration that such terms remain in effect at the time
of the transfer.

 

4.         In
the event of the liquidation of the Trust Account, Daniel J. Hennessy (the “Indemnitor”) agrees to indemnify
and hold harmless the Company against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited
to, any and all legal or other expenses reasonably incurred in investigating, preparing or defending against any litigation, whether
pending or threatened, or any claim whatsoever) to which the Company may become subject as a result of any claim by (i) any
third party for services rendered or products sold to the Company or (ii) a prospective target business with which the Company
has entered into an acquisition agreement (a “Target”); provided, however, that
such indemnification of the Company by the Indemnitor shall apply only to the extent necessary to ensure that such claims by a
third party for services rendered (other than the Company’s independent public accountants) or products sold to the Company
or a Target do not reduce the amount of funds in the Trust Account to below (i) $10.00 per share of the Offering Shares or
(ii) such lesser amount per share of the Offering Shares held in the Trust Account due to reductions in the value of the trust
assets as of the date of the liquidation of the Trust Account, in each case, net of the amount of interest earned on the property
in the Trust Account which may be withdrawn to pay taxes and for working capital purposes, except as to any claims by a third party
who executed a waiver of any and all rights to seek access to the Trust Account and except as to any claims under the Company’s
indemnity of the Underwriters against certain liabilities, including liabilities under the Securities Act of 1933, as amended.
In the event that any such executed waiver is deemed to be unenforceable against such third party, the Indemnitor shall not be
responsible to the extent of any liability for such third party claim. The Indemnitor shall have the right to defend against any
such claim with counsel of its choice reasonably satisfactory to the Company if, within 15 days following written receipt of notice
of the claim to the Indemnitor, the Indemnitor notify the Company in writing that it shall undertake such defense.

 

    	 	2	 

     

    

 

5.        To
the extent that the Underwriters do not exercise their over-allotment option to purchase an additional 3,375,000 Units within 45
days from the date of the Prospectus (and as further described in the Prospectus), the Sponsor agrees that it shall forfeit, at
no cost, a number of Founder Shares in the aggregate equal to 843,750 multiplied by a fraction, (i) the numerator of which
is 843,750 minus the number of Units purchased by the Underwriters upon the exercise of their over-allotment option, and (ii) the
denominator of which is 843,750. The forfeiture will be adjusted to the extent that the over-allotment option is not exercised
in full by the Underwriters so that the stockholders prior to the Public Offering will own an aggregate of 20.0% of the Company’s
issued and outstanding shares of Common Stock after the Public Offering. The Sponsor further agrees that to the extent that the
size of the Public Offering is increased or decreased, the Company will purchase or sell shares of Common Stock or effect a stock
dividend or share contribution back to capital, as applicable, immediately prior to the consummation of the Public offering in
such amount as to maintain the ownership of the stockholders prior to the Public Offering at 20.0% of its issued and outstanding
shares of Common Stock upon the consummation of the Public Offering. In connection with such increase or decrease in the size of
the Public Offering, then (A) the references to 3,375,000 in the numerator and denominator of the formula in the first sentence
of this paragraph shall be changed to a number equal to 15% of the number of shares included in the Units issued in the Public
Offering and (B) the reference to 843,750 in the formula set forth in the first sentence of this paragraph shall be adjusted
to such number of shares of the Common Stock that the Sponsor would have to return to the Company in order to hold (together with
all of the pre-Public Offering stockholders) an aggregate of 20.0% of the Company’s issued and outstanding shares after the
Public Offering.

 

6.         (a) The
Sponsor and each Insider agrees not to participate in the formation of, or become an officer or director of, any other special
purpose acquisition companies with a class of securities registered under the Securities Exchange Act of 1934, as amended, until
the Company has entered into a definitive agreement with respect to a Business Combination or the Company has failed to complete
a Business Combination within 24 months after the closing of the Public Offering.

 

     (b) The Sponsor and
each Insider agrees and acknowledges that: (i) each of the Underwriters and the Company would be irreparably injured in the
event of a breach by such Sponsor or Insider of his, her or its obligations (as applicable) under paragraphs 1, 2, 3, 4, 5, 6(a),
7(a), 7(b), and 9 of this Letter Agreement (ii) monetary damages may not be an adequate remedy for such breach and (iii) the
non-breaching party shall be entitled to injunctive relief, in addition to any other remedy that such party may have in law or
in equity, in the event of such breach. 

 

7.         (a) The
Sponsor and each Insider agrees that it, he or she shall not Transfer (as defined below) any Founder Shares until the earlier of
(i) one year after the completion of a Business Combination or earlier if, subsequent to a Business Combination, (x) the last sale
price of the Common Stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations
and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after a Business Combination
or (y) the date following the completion of a Business Combination on which the Company completes a liquidation, merger, stock
exchange or other similar transaction that results in all of the Company’s stockholders having the right to exchange their
shares of Common Stock for cash, securities or other property (the “Founder Shares Lock-up Period”).

 

    (b) The Sponsor and
each Insider agrees that it, he or she shall not effectuate any Transfer of Private Placement Warrants or Common Stock issued or
issuable upon the exercise of the Private Placement Warrants, until 30 days after the completion of a Business Combination (the
“Private Placement Warrants Lock-up Period”, together with the Founder Shares Lock-up Period, the “Lock-up
Periods”).

  

    (c) Notwithstanding
the provisions set forth in paragraphs 7(a) and (b), Transfers of the Founder Shares, Private Placement Warrants and shares of
Common Stock issued or issuable upon the exercise of the Private Placement Warrants are permitted to (a) to the Company’s
officers or directors, any affiliates or family members of any of the Company’s officers or directors, any members of the
Sponsor or any affiliates of the Sponsor or any of its members; (b) in the case of an individual, by a gift to a member of
one of the members of the individual’s immediate family or to a trust, the beneficiary of which is a member of one of the
individual’s immediate family, an affiliate of such person or to a charitable organization; (c) in the case of an individual,
by virtue of laws of descent and distribution upon death of the individual; (d) in the case of an individual, pursuant to
a qualified domestic relations order; (e) by private sales or transfers made in connection with the consummation of a Business
Combination at prices no greater than the price at which the securities were originally purchased; (f) in the event of the
Company’s liquidation prior to the completion of a Business Combination; or (g) by virtue of the laws of Delaware or the
Sponsor’s limited liability company agreement upon dissolution of the Sponsor; provided, however,
that in any case, these permitted transferees must enter into a written agreement agreeing to be bound by these transfer restrictions
and the other terms described in this Letter Agreement to the extent and for the duration that such terms remain in effect at the
time of the transfer.

 

    	 	3	 

     

    

 

8.         The
Sponsor and each Insider represents and warrants that it, he or she has never been suspended or expelled from membership in any
securities or commodities exchange or association or had a securities or commodities license or registration denied, suspended
or revoked. Each Insider’s biographical information furnished to the Company is true and accurate in all respects and does
not omit any material information with respect to the undersigned’s background. Each Insider’s questionnaire furnished
to the Company is true and accurate in all respects. Each Insider represents and warrants that: the undersigned is not subject
to or a respondent in any legal action for, any injunction, cease-and-desist order or order or stipulation to desist or refrain
from any act or practice relating to the offering of securities in any jurisdiction; the undersigned has never been convicted of,
or pleaded guilty to, any crime (i) involving fraud, (ii) relating to any financial transaction or handling of funds
of another person, or (iii) pertaining to any dealings in any securities and the undersigned is not currently a defendant
in any such criminal proceeding. 

 

9.         Except
as disclosed in the Prospectus, neither the Sponsor or any Insider nor any affiliate of the Sponsor or any Insider, nor any director
or officer of the Company, shall receive from the Company any finder’s fee, reimbursement, consulting fee, monies in respect
of any repayment of a loan or other compensation prior to, or in connection with any services rendered in order to effectuate the
consummation of a Business Combination (regardless of the type of transaction that it is), other than the following, none of which
will be made from the proceeds of the Public Offering held in the Trust Account prior to the completion of a Business Combination:
(a) repayment of a loan and advances of up to an aggregate of $300,000 made to the Company by the Sponsor; (b) monthly payments
of $25,000 following the consummation of the Public Offering, of which 50% is payable upon successful completion of a Business
Combination to the Company’s chief financial officer, for services provided to the Company; (c) monthly deferred fees of
$100,000 and $50,000 to the Company’s chief executive officer and chief operating officer, respectively, for services provided
to the Company, of which 100% is payable upon successful completion of a Business Combination; (d) payment to an affiliate of the
Sponsor for office space, utilities and secretarial support for a total of $15,000 per month; (e) reimbursement for any reasonable
out-of-pocket expenses related to identifying, investigating and consummating a Business Combination, and (f) repayment of loans,
if any, and on such terms as to be determined by the Company from time to time, made by the Sponsor or certain of the Company’s
officers and directors to finance transaction costs in connection with an intended Business Combination, provided, that, if the
Company does not consummate a Business Combination, a portion of the working capital held outside the Trust Account may be used
by the Company to repay such loaned amounts so long as no proceeds from the Trust Account are used for such repayment. Up to $1,500,000
of such loans may be convertible into warrants of the post Business Combination entity at a price of $1.00 per whole warrant at
the option of the lender. Such warrants would be identical to the Private Placement Warrants.

 

10.        The
Sponsor and each Insider has full right and power, without violating any agreement to which it is bound (including, without limitation,
any non-competition or non-solicitation agreement with any employer or former employer), to enter into this Letter Agreement and,
as applicable, to serve as a director on the board of directors of the Company and hereby consents to being named in the prospectus
as a director or director nominee of the Company.

  

11.        As
used herein, (i) “Business Combination” shall mean a merger, capital stock exchange, asset acquisition,
stock purchase, reorganization or similar initial business combination, involving the Company and one or more businesses; (ii) “Founder
Shares” shall mean the 6,468,750 shares of the Common Stock of the Company initially acquired by the Sponsor and
Insiders for an aggregate purchase price of $25,000, or approximately $0.004 per share, prior to the consummation of the Public
Offering; (iii) “Private Placement Warrants “ shall mean the Warrants to purchase up to 7,700,000
shares of the Common Stock of the Company (or 8,442,500 shares of Common Stock if the over-allotment option is exercised in full)
that are acquired by the Sponsor for an aggregate purchase price of $7.7 million in the aggregate (or $8.4425 million if the over-allotment
option is exercised in full), or $1.00 per Warrant, in a private placement that shall occur simultaneously with the consummation
of the Public Offering; (iv) “Public Stockholders” shall mean the holders of securities issued in
the Public Offering; (v) “Trust Account” shall mean the trust fund into which a portion of the net
proceeds of the Public Offering shall be deposited; and (vi) “Transfer” shall mean the (a) sale
of, offer to sell, contract or agreement to sell, hypothecate, pledge, grant of any option to purchase or otherwise dispose of
or agreement to dispose of, directly or indirectly, or establishment or increase of a put equivalent position or liquidation with
respect to or decrease of a call equivalent position within the meaning of Section 16 of the Securities Exchange Act of 1934,
as amended, and the rules and regulations of the Commission promulgated thereunder with respect to, any security, (b) entry
into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership
of any security, whether any such transaction is to be settled by delivery of such securities, in cash or otherwise, or (c) public
announcement of any intention to effect any transaction specified in clause (a) or (b).

 

    	 	4	 

     

    

 

12.       This
Letter Agreement constitutes the entire agreement and understanding of the parties hereto in respect of the subject matter hereof
and supersedes all prior understandings, agreements, or representations by or among the parties hereto, written or oral, to the
extent they relate in any way to the subject matter hereof or the transactions contemplated hereby. This Letter Agreement may not
be changed, amended, modified or waived (other than to correct a typographical error) as to any particular provision, except by
a written instrument executed by all parties hereto.

 

13.       No
party hereto may assign either this Letter Agreement or any of its rights, interests, or obligations hereunder without the prior
written consent of the other party. Any purported assignment in violation of this paragraph shall be void and ineffectual and shall
not operate to transfer or assign any interest or title to the purported assignee. This Letter Agreement shall be binding on the
Sponsor and Insiders and their respective successors and permitted assigns. Any transfer made in contravention of this Letter Agreement
shall be null and void.

 

14.       This
Letter Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York, without
giving effect to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction.
The parties hereto (i) all agree that any action, proceeding, claim or dispute arising out of, or relating in any way to,
this Letter Agreement shall be brought and enforced in the courts of New York City, in the State of New York, and irrevocably submits
to such jurisdiction and venue, which jurisdiction and venue shall be exclusive and (ii) waives any objection to such exclusive
jurisdiction and venue or that such courts represent an inconvenient forum.

 

15.       Any
notice, consent or request to be given in connection with any of the terms or provisions of this Letter Agreement shall be in writing
and shall be sent by express mail or similar private courier service, by certified mail (return receipt requested), by hand delivery
or facsimile transmission.

 

16.     This Letter
Agreement shall terminate on the earlier of (i) the expiration of the Lock-up Periods or (ii) the liquidation of the
Company; provided, however, that this Letter Agreement shall earlier terminate in the event that the Public
Offering is not consummated by September 30, 2017, provided further that paragraph 4 of this Letter Agreement
shall survive such liquidation.

 

[Signature page follows]

 

    	 	5	 

     

    

 

	 	Sincerely,
	 	 
	 	HENNESSY CAPITAL PARTNERS III LLC  
	 	By: 	Hennessy Capital LLC, its managing member
	 	 	 
	 	By:	 
	 	 	
        Name: Daniel J. Hennessy 

        Title:   Managing Member

 

	 	By:	 
	 	 	Kevin Charlton

  

	 	By:	 
	 	 	Bradley Bell

 

	 	By:	 
	 	 	Peter Shea

 

	 	By:	 
	 	 	Richard Burns

 

	 	By:	 
	 	 	James O’Neil III
	 	 	 
	 	By:	 
	 	 	Daniel R. DiMicco
	 	 	 
	 	By:	 
	 	 	Nicholas Petruska
	 	 	 
	 	By:	 
	 	 	Daniel J. Hennessy 

 

	Acknowledged and Agreed:	 
	 	 
	
        

        

        HENNESSY CAPITAL ACQUISITION CORP. III
	 
	 	 	 
	By:	 	 
	 	
        Name: Daniel J. Hennessy 

        Title:   Chief Executive Officer
	 

 

 

6Exhibit 10.1

 

PARETEUM CORP.

2017 LONG-TERM INCENTIVE COMPENSATION
PLAN

 

ARTICLE I

PURPOSE

 

Section 1.1 Purpose. This 2017 Long-Term
Incentive Compensation Plan (the “Plan”) is established by Pareteum Corp., a Delaware corporation (the “Company”),
to create incentives which are designed to motivate Participants to put forth maximum effort toward the success and growth of the
Company and to enable the Company to attract and retain experienced individuals who by their position, ability and diligence are
able to make important contributions to the Company’s success. Toward these objectives, the Plan provides for the grant of
Options, Restricted Stock Awards, Stock Appreciation Rights (“SARs”), Performance Units and Performance Bonuses to
Eligible Employees and the grant of Nonqualified Stock Options, Restricted Stock Awards, SARs and Performance Units to Consultants
and Eligible Directors, subject to the conditions set forth in the Plan.

 

Section 1.2 Establishment. The Plan
is effective as of June 8, 2017 and for a period of ten years thereafter. The Plan shall continue in effect until all matters relating
to the payment of Awards and administration of the Plan have been settled. The Plan is subject to approval by the Company’s
stockholders in accordance with applicable law which approval must occur within the period ending twelve months after the date
the Plan is adopted by the Board. Pending such approval by the stockholders, Awards under the Plan may be granted, but no such
Awards may be exercised prior to receipt of stockholder approval. In the event stockholder approval is not obtained within a twelve-month
period, all Awards granted shall be void.

 

Section 1.3 Shares Subject to the Plan.
Subject to the limitations set forth in the Plan, Awards may be made under this Plan for a total of 6,500,000 shares of the Company’s
common stock, par value $.00001 per share (the “Common Stock”), all of which may be issued in respect of Incentive
Stock Options.

 

ARTICLE II

DEFINITIONS

 

Section 2.1 “Account”
means the recordkeeping account established by the Company to which will be credited an Award of Performance Units to a Participant.

 

Section 2.2 “Affiliated Entity”
means any corporation, partnership, limited liability company or other form of legal entity in which a majority of the partnership
or other similar interest thereof is owned or controlled, directly or indirectly, by the Company or one or more of its Subsidiaries
or Affiliated Entities or a combination thereof. For purposes hereof, the Company, a Subsidiary or an Affiliated Entity shall be
deemed to have a majority ownership interest in a partnership or limited liability company if the Company, such Subsidiary or Affiliated
Entity shall be allocated a majority of partnership or limited liability company gains or losses or shall be or control a managing
director or a general partner of such partnership or limited liability company.

 

Section 2.3 “Award” means,
individually or collectively, any Option, Restricted Stock Award, SAR, Performance Unit or Performance Bonus granted under the
Plan to an Eligible Employee by the Board or any Nonqualified Stock Option, Performance Unit, SAR or Restricted Stock Award granted
under the Plan to a Consultant or an Eligible Director by the Board pursuant to such terms, conditions, restrictions, and/or limitations,
if any, as the Board may establish by the Award Agreement or otherwise.

 

Section 2.4 “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 Board’s exercise of its administrative powers.

Section 2.5 “Board” means
the Board of Directors of the Company and, if the Board has appointed a Committee as provided in Section 3.1, the term “Board”
shall include such Committee.

 

     

     

    

 

Section 2.6 “Change of Control
Event” means, except as otherwise provided in an Award Agreement, each of the following:

 

(i) Any transaction in which shares of
voting securities of the Company representing more than 50% of the total combined voting power of all outstanding voting securities
of the Company are issued by the Company, or sold or transferred by the stockholders of the Company as a result of which those
persons and entities who beneficially owned voting securities of the Company representing more than 50% of the total combined voting
power of all outstanding voting securities of the Company immediately prior to such transaction cease to beneficially own voting
securities of the Company representing more than 50% of the total combined voting power of all outstanding voting securities of
the Company immediately after such transaction;

 

(ii) The merger or consolidation of the
Company with or into another entity as a result of which those persons and entities who beneficially owned voting securities of
the Company representing more than 50% of the total combined voting power of all outstanding voting securities of the Company immediately
prior to such merger or consolidation cease to beneficially own voting securities of the Company representing more than 50% of
the total combined voting power of all outstanding voting securities of the surviving corporation or resulting entity immediately
after such merger of consolidation; or

 

(iii) The sale of all or substantially
all of the Company’s assets to an entity of which those persons and entities who beneficially owned voting securities of
the Company representing more than 50% of the total combined voting power of all outstanding voting securities of the Company immediately
prior to such asset sale do not beneficially own voting securities of the purchasing entity representing more than 50% of the total
combined voting power of all outstanding voting securities of the purchasing entity immediately after such asset sale.

 

Section 2.7 “Code” means
the Internal Revenue Code of 1986, as amended. References in the Plan to any section of the Code shall be deemed to include any
amendments or successor provisions to such section and any regulations under such section.

 

Section 2.8 “Committee”
means the Committee appointed by the Board as provided in Section 3.1.

 

Section 2.9 “Common Stock”
means the common stock, par value $.00001 per share, of the Company, and after substitution, such other stock as shall be substituted
therefore as provided in Article X.

 

Section 2.10 “Consultant”
means any person or entity who is engaged by the Company, a Subsidiary or an Affiliated Entity to render consulting or advisory
services.

 

Section 2.11 “Date of Grant”
means the date on which the grant of an Award is authorized by the Board or such later date as may be specified by the Board
in such authorization.

 

Section 2.12 “Disability”
means, except as otherwise provided in an Award Agreement, the Participant is unable to continue employment by reason of any
medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months. For purposes of this Plan, the determination of Disability shall be made in the sole
and absolute discretion of the Board.

 

Section 2.13 “Eligible Employee”
means any employee of the Company, a Subsidiary, or an Affiliated Entity as approved by the Board.

 

Section 2.14 “Eligible Director”
means any member of the Board who is not an employee of the Company, a Subsidiary or an Affiliated Entity.

 

     

     

    

 

Section 2.15 “Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

Section 2.16 “Fair Market Value”
means (A) during such time as the Common Stock is registered under Section 12 of the Exchange Act, the closing price of the
Common Stock as reported by an established stock exchange or automated quotation system on the day for which such value is to be
determined, or, if no sale of the Common Stock shall have been made on any such stock exchange or automated quotation system that
day, on the next preceding day on which there was a sale of such Common Stock, or (B) during any such time as the Common Stock
is not listed upon an established stock exchange or automated quotation system, the mean between dealer “bid” and “ask”
prices of the Common Stock in the over-the-counter market on the day for which such value is to be determined, as reported by the
National Association of Securities Dealers, Inc., or (C) during any such time as the Common Stock cannot be valued pursuant to
(A) or (B) above, the fair market value shall be as determined by the Board considering all relevant information including, by
example and not by limitation, the services of an independent appraiser.

 

Section 2.17 “Incentive Stock
Option” means an Option within the meaning of Section 422 of the Code.

 

Section 2.18 “Nonqualified Stock
Option” means an Option which is not an Incentive Stock Option.

 

Section 2.19 “Option” means
an Award granted under Article V of the Plan and includes both Nonqualified Stock Options and Incentive Stock Options to purchase
shares of Common Stock.

 

Section 2.20 “Participant”
means an Eligible Employee, a Consultant or an Eligible Director to whom an Award has been granted by the Board under the Plan.

 

Section 2.21 “Performance Bonus”
means the cash bonus which may be granted to Eligible Employees under Article IX of the Plan.

 

Section 2.22 “Performance Units”
means those monetary units that may be granted to Eligible Employees, Consultants or Eligible Directors pursuant to Article
VIII hereof.

 

Section 2.23 “Plan” means
this Pareteum Corp. 2017 Long-Term Incentive Compensation Plan.

 

Section 2.24 “Restricted Stock
Award” means an Award granted to an Eligible Employee, Consultant or Eligible Director under Article VI of the Plan.

 

Section 2.25 “Retirement”
means, except as otherwise provided in an Award Agreement, the termination of an Eligible Employee’s employment with
the Company, a Subsidiary or an Affiliated Entity on or after attaining age 65.

 

Section 2.26 “SAR” means
a stock appreciation right granted to an Eligible Employee, Consultant or Eligible Director under Article VII of the Plan.

 

Section 2.27 “Subsidiary”
shall have the same meaning set forth in Section 424 of the Code.

 

Section 2.28 “Compensation Committee”
means the Compensation Committee of the Board.

 

ARTICLE III

ADMINISTRATION

 

Section 3.1 Administration. The
Board shall administer the Plan. The Board may, by resolution, appoint the Compensation Committee to administer the Plan and delegate
its powers described under this Section 3.1 and otherwise under the Plan for purposes of Awards granted to Eligible Employees and
Consultants.

 

Subject to the provisions of the Plan,
the Board shall have exclusive power to:

 

(a) Select Eligible Employees and Consultants
to participate in the Plan.

 

     

     

    

 

(b) Determine the time or times when Awards
will be made to Eligible Employees or Consultants.

 

(c) Determine the form of an Award, whether
an Incentive Stock Option, Nonqualified Stock Option, Restricted Stock Award, SAR, Performance Unit, or Performance Bonus, the
number of shares of Common Stock or Performance Units subject to the Award, the amount and all the terms, conditions (including
performance requirements), restrictions and/or limitations, if any, of an Award, including the time and conditions of exercise
or vesting, and the terms of any Award Agreement, which may include the waiver or amendment of prior terms and conditions or acceleration
or early vesting or payment of an Award under certain circumstances determined by the Board.

 

(d) Determine whether Awards will be granted
singly or in combination.

 

(e) Accelerate the vesting, exercise or
payment of an Award or the performance period of an Award.

 

(f) Determine whether and to what extent
a Performance Bonus may be deferred, either automatically or at the election of the Participant or the Board.

 

(g) Reduce the exercise price of any Option
or SAR to the then current Fair Market Value if the Fair Market Value of the Common Stock covered by such Option or SAR shall have
declined since the date such Award was granted.

 

(h) Take any and all other action it deems
necessary or advisable for the proper operation or administration of the Plan.

 

Notwithstanding the foregoing, the Board
may authorize the Company Chief Executive Officer, another executive officer, or a committee of such directors (the “Authorized
Officers”) to grant Options under the Plan, to the extent permitted by applicable law. If so authorized, the Authorized Officers
shall have the same authority as the Board under this Section 3.1 and otherwise under the Plan with respect to the grant of Options,
subject to the limitations set forth in such authorization, if any.

 

Section 3.2 Administration of Grants
to Eligible Directors. The Board shall have the exclusive power to select Eligible Directors to participate in the Plan and
to determine the number of Nonqualified Stock Options, Performance Units, SARs or shares of Restricted Stock awarded to Eligible
Directors selected for participation. If the Board appoints a committee to administer the Plan, it may delegate to the committee
administration of all other aspects of the Awards made to Eligible Directors.

 

Section 3.3 Board to Make Rules and
Interpret Plan. The Board in its sole discretion shall have the authority, subject to the provisions of the Plan, to establish,
adopt, or revise such rules and regulations and to make all such determinations relating to the Plan, as it may deem necessary
or advisable for the administration of the Plan. The Board’s interpretation of the Plan or any Awards and all decisions and
determinations by the Board with respect to the Plan shall be final, binding, and conclusive on all parties.

 

Section 3.4 Section 162(m). The
Company intends for the Plan and the Awards made thereunder to be exempt from the deductibility limitation in Code Section 162(m)
if it is determined by the Board that such qualification is necessary or desirable for an Award. Accordingly, the Board shall make
determinations as to performance targets and all other applicable provisions of the Plan as necessary in order for the Plan and
Awards made thereunder to satisfy the requirements of Section 162(m) of the Code. Subject to adjustment as provided in Article
X, the maximum number of shares with respect to which Options or SARs may be granted to any Participant in any one calendar year
is 6,500,000. With respect to other types of Awards intended to be exempt from the deductibility limitation in Code Section 162(m),
no Participant in any one calendar year may be granted Awards with respect to more than 6,500,000 shares of Common Stock in the
aggregate, or if such Awards are payable in cash, the fair market value equivalent thereof. If an Award is cancelled, the cancelled
Award shall continue to be counted towards the applicable limitations.

 

     

     

    

 

ARTICLE IV

GRANT OF AWARDS

 

Section 4.1 Grant of Awards. Awards
granted under this Plan shall be subject to the following conditions:

 

(a) Any shares of Common Stock related
to Awards which terminate by expiration, forfeiture, cancellation or otherwise without the issuance of shares of Common Stock or
are exchanged in the Board’s discretion for Awards not involving Common Stock, shall be available again for grant under the
Plan and shall not be counted against the shares authorized under Section 1.3.

 

(b) Common Stock delivered by the Company
in payment of an Award authorized under Articles V and VI of the Plan may be authorized and unissued Common Stock or Common Stock
held in the treasury of the Company.

 

(c) The Board shall, in its sole discretion,
determine the manner in which fractional shares arising under this Plan shall be treated.

 

(d) Separate certificates or a book-entry
registration representing Common Stock shall be delivered to a Participant upon the exercise of any Option.

 

(e) Eligible Directors may only be granted
Nonqualified Stock Options, Restricted Stock Awards, SARs or Performance Units under this Plan.

 

(f) The maximum term of any Award shall
be ten years.

 

ARTICLE V

STOCK OPTIONS

 

Section 5.1 Grant of Options. The
Board may, from time to time, subject to the provisions of the Plan and such other terms and conditions as it may determine, grant
Options to Eligible Employees. These Options may be Incentive Stock Options or Nonqualified Stock Options, or a combination of
both. The Board may, subject to the provisions of the Plan and such other terms and conditions as it may determine, grant Nonqualified
Stock Options to Eligible Directors and Consultants. Each grant of an Option shall be evidenced by an Award Agreement executed
by the Company and the Participant, and shall contain such terms and conditions and be in such form as the Board may from time
to time approve, subject to the requirements of Section 5.2.

 

Section 5.2 Conditions of Options. Each
Option so granted shall be subject to the following conditions:

 

(a) Exercise Price. Each Option shall state
the exercise price which shall be set by the Board at the Date of Grant; provided, however, no Option shall be granted at an exercise
price which is less than the Fair Market Value of the Common Stock on the Date of Grant.

 

(b) Form of Payment. The exercise price
of an Option may be paid (i) in cash or by check, bank draft or money order payable to the order of the Company; (ii) by delivering
shares of Common Stock having a Fair Market Value on the date of payment equal to the amount of the exercise price, but only to
the extent such exercise of an Option would not result in an adverse accounting charge to the Company for financial accounting
purposes with respect to the shares used to pay the exercise price unless otherwise determined by the Board; or (iii) a combination
of the foregoing. In addition to the foregoing, the Board may permit an Option granted under the Plan to be exercised by a broker-dealer
acting on behalf of a Participant through procedures approved by the Board.

 

(c) Exercise of Options. Options granted
under the Plan shall be exercisable, in whole or in such installments and at such times, and shall expire at such time, as shall
be provided by the Board in the Award Agreement. Exercise of an Option shall be by written notice to the Secretary of the Company
at least two business days in advance of such exercise stating the election to exercise in the form and manner determined by the
Board. Every share of Common Stock acquired through the exercise of an Option shall be deemed to be fully paid at the time of exercise
and payment of the exercise price.

 

     

     

    

 

(d) Other Terms and Conditions. Among other
conditions that may be imposed by the Board, if deemed appropriate, are those relating to (i) the period or periods and the conditions
of exercisability of any Option; (ii) the minimum periods during which Participants must be employed by the Company, its Subsidiaries,
or an Affiliated Entity, or must hold Options before they may be exercised; (iii) the minimum periods during which shares acquired
upon exercise must be held before sale or transfer shall be permitted; (iv) conditions under which such Options or shares may be
subject to forfeiture; (v) the frequency of exercise or the minimum or maximum number of shares that may be acquired at any one
time; (vi) the achievement by the Company of specified performance criteria; and (vii) non-compete and protection of business matters.

 

(e) Special Restrictions Relating to Incentive
Stock Options. Options issued in the form of Incentive Stock Options shall only be granted to Eligible Employees of the Company
or a Subsidiary, and not to Eligible Employees of an Affiliated Entity unless such entity shall be considered as a “disregarded
entity” under the Code and shall not be distinguished for federal tax purposes from the Company or the applicable Subsidiary.

 

(f) Application of Funds. The proceeds
received by the Company from the sale of Common Stock pursuant to Options will be used for general corporate purposes.

 

(g) Stockholder Rights. No Participant
shall have a right as a stockholder with respect to any share of Common Stock subject to an Option prior to the purchase of such
shares of Common Stock by exercise of the Option.

 

ARTICLE VI

RESTRICTED STOCK AWARDS

 

Section 6.1 Grant of Restricted Stock
Awards. The Board may, from time to time, subject to the provisions of the Plan and such other terms and conditions as it may
determine, grant a Restricted Stock Award to Eligible Employees, Consultants or Eligible Directors. Restricted Stock Awards shall
be awarded in such number and at such times during the term of the Plan as the Board shall determine. Each Restricted Stock Award
shall be subject to an Award Agreement setting forth the terms of such Restricted Stock Award and may be evidenced in such manner
as the Board deems appropriate, including, without limitation, a book-entry registration or issuance of a stock certificate or
certificates.

 

Section 6.2 Conditions of Restricted
Stock Awards. The grant of a Restricted Stock Award shall be subject to the following:

 

(a) Restriction Period. Restricted Stock
Awards granted to an Eligible Employee shall require the holder to remain in the employment of the Company, a Subsidiary, or an
Affiliated Entity for a prescribed period. Restricted Stock Awards granted to Consultants or Eligible Directors shall require the
holder to provide continued services to the Company for a period of time. These employment and service requirements are collectively
referred to as a “Restriction Period”. The Board or the Committee, as the case may be, shall determine the Restriction
Period or Periods which shall apply to the shares of Common Stock covered by each Restricted Stock Award or portion thereof. In
addition to any time vesting conditions determined by the Board or the Committee, as the case may be, Restricted Stock Awards may
be subject to the achievement by the Company of specified performance criteria based upon the Company’s achievement of all
or any of the operational, financial or stock performance criteria set forth on Exhibit A annexed hereto, as may from time to time
be established by the Board or the Committee, as the case may be. At the end of the Restriction Period, assuming the fulfilment
of any other specified vesting conditions, the restrictions imposed by the Board or the Committee, as the case may be shall lapse
with respect to the shares of Common Stock covered by the Restricted Stock Award or portion thereof. In addition to acceleration
of vesting upon the occurrence of a Change of Control Event as provided in Section 11.5, the Board or the Committee, as the case
may be, may, in its discretion, accelerate the vesting of a Restricted Stock Award in the case of the death, Disability or Retirement
of the Participant who is an Eligible Employee or resignation of a Participant who is a Consultant or an Eligible Director.

 

(b) Restrictions. The holder of a Restricted
Stock Award may not sell, transfer, pledge, exchange, hypothecate, or otherwise dispose of the shares of Common Stock represented
by the Restricted Stock Award during the applicable Restriction Period. The Board shall impose such other restrictions and conditions
on any shares of Common Stock covered by a Restricted Stock Award as it may deem advisable including, without limitation, restrictions
under applicable Federal or state securities laws, and may legend the certificates representing Restricted Stock to give appropriate
notice of such restrictions.

 

     

     

    

 

(c) Rights as Stockholders. During any
Restriction Period, the Board may, in its discretion, grant to the holder of a Restricted Stock Award all or any of the rights
of a stockholder with respect to the shares, including, but not by way of limitation, the right to vote such shares and to receive
dividends. If any dividends or other distributions are paid in shares of Common Stock, all such shares shall be subject to the
same restrictions on transferability as the shares of Restricted Stock with respect to which they were paid.

 

ARTICLE VII

STOCK APPRECIATION RIGHTS

 

Section 7.1 Grant of SARs. The Board
may from time to time, in its sole discretion, subject to the provisions of the Plan and subject to other terms and conditions
as the Board may determine, grant a SAR to any Eligible Employee, Consultant or Eligible Director. SARs may be granted in tandem
with an Option, in which event, the Participant has the right to elect to exercise either the SAR or the Option. Upon the Participant’s
election to exercise one of these Awards, the other tandem Award is automatically terminated. SARs may also be granted as an independent
Award separate from an Option. Each grant of a SAR shall be evidenced by an Award Agreement executed by the Company and the Participant
and shall contain such terms and conditions and be in such form as the Board may from time to time approve, subject to the requirements
of the Plan. The exercise price of the SAR shall not be less than the Fair Market Value of a share of Common Stock on the Date
of Grant of the SAR.

 

Section 7.2 Exercise and Payment. SARs
granted under the Plan shall be exercisable in whole or in installments and at such times as shall be provided by the Board in
the Award Agreement. Exercise of a SAR shall be by written notice to the Secretary of the Company at least two business days in
advance of such exercise. The amount payable with respect to each SAR shall be equal in value to the excess, if any, of the Fair
Market Value of a share of Common Stock on the exercise date over the exercise price of the SAR. Payment of amounts attributable
to a SAR shall be made in shares of Common Stock.

 

Section 7.3 Restrictions. In the
event a SAR is granted in tandem with an Incentive Stock Option, the Board shall subject the SAR to restrictions necessary to ensure
satisfaction of the requirements under Section 422 of the Code. In the case of a SAR granted in tandem with an Incentive Stock
Option to an Eligible Employee who owns more than 10% of the combined voting power of the Company or its Subsidiaries on the date
of such grant, the amount payable with respect to each SAR shall be equal in value to the applicable percentage of the excess,
if any, of the Fair Market Value of a share of Common Stock on the Exercise date over the exercise price of the SAR, which exercise
price shall not be less than 110% of the Fair Market Value of a share of Common Stock on the date the SAR is granted.

 

ARTICLE VIII

PERFORMANCE UNITS

 

Section 8.1 Grant of Awards. The
Board may, from time to time, subject to the provisions of the Plan and such other terms and conditions as it may determine, grant
Performance Units to Eligible Employees, Consultants and Eligible Directors. Each Award of Performance Units shall be evidenced
by an Award Agreement executed by the Company and the Participant, and shall contain such terms and conditions and be in such form
as the Board may from time to time approve, subject to the requirements of Section 8.2.

 

Section 8.2 Conditions of Awards. Each
Award of Performance Units shall be subject to the following conditions:

 

(a) Establishment of Award Terms. Each
Award shall state the target, maximum and minimum value of each Performance Unit payable upon the achievement of performance goals.

 

(b) Achievement of Performance Goals. The
Board shall establish performance targets for each Award for a period of no less than a year based upon some or all of the operational,
financial or performance criteria listed in Exhibit A attached. The Board shall also establish such other terms and conditions
as it deems appropriate to such Award. The Award may be paid out in cash or Common Stock as determined in the sole discretion of
the Board.

 

     

     

    

 

ARTICLE IX

PERFORMANCE BONUS

 

Section 9.1 Grant of Performance Bonus.
The Board may from time to time, subject to the provisions of the Plan and such other terms and conditions as the Board may
determine, grant a Performance Bonus to certain Eligible Employees selected for participation. The Board will determine the amount
that may be earned as a Performance Bonus in any period of one year or more upon the achievement of a performance target established
by the Board. The Board shall select the applicable performance target(s) for each period in which a Performance Bonus is awarded.
The performance target shall be based upon all or some of the operational, financial or performance criteria listed in Exhibit
A attached.

 

Section 9.2 Payment of Performance Bonus.
In order for any Participant to be entitled to payment of a Performance Bonus, the applicable performance target(s) established
by the Board must first be obtained or exceeded. Payment of a Performance Bonus shall be made within 60 days of the Board’s
certification that the performance target(s) has been achieved unless the Participant has previously elected to defer payment pursuant
to a nonqualified deferred compensation plan adopted by the Company. Payment of a Performance Bonus may be made in either cash
or Common Stock as determined in the sole discretion of the Board.

 

ARTICLE X

STOCK ADJUSTMENTS

 

In the event that the shares of Common
Stock, as constituted on the effective date of the Plan, shall be changed into or exchanged for a different number or kind of shares
of stock or other securities of the Company or of another corporation (whether by reason of merger, consolidation, recapitalization,
reclassification, stock split, spin-off, combination of shares or otherwise), or if the number of such shares of Common Stock shall
be increased through the payment of a stock dividend, or a dividend on the shares of Common Stock, or if rights or warrants to
purchase securities of the Company shall be issued to holders of all outstanding Common Stock, then there shall be substituted
for or added to each share available under and subject to the Plan, and each share theretofore appropriated under the Plan, the
number and kind of shares of stock or other securities into which each outstanding share of Common Stock shall be so changed or
for which each such share shall be exchanged or to which each such share shall be entitled, as the case may be, on a fair and equivalent
basis in accordance with the applicable provisions of Section 424 of the Code; provided, however, with respect to Options, in no
such event will such adjustment result in a modification of any Option as defined in Section 424(h) of the Code. In the event there
shall be any other change in the number or kind of the outstanding shares of Common Stock, or any stock or other securities into
which the Common Stock shall have been changed or for which it shall have been exchanged, then if the Board shall, in its sole
discretion, determine that such change equitably requires an adjustment in the shares available under and subject to the Plan,
or in any Award, theretofore granted, such adjustments shall be made in accordance with such determination, except that no adjustment
of the number of shares of Common Stock available under the Plan or to which any Award relates that would otherwise be required
shall be made unless and until such adjustment either by itself or with other adjustments not previously made would require an
increase or decrease of at least 1% in the number of shares of Common Stock available under the Plan or to which any Award relates
immediately prior to the making of such adjustment (the “Minimum Adjustment”). Any adjustment representing a change
of less than such minimum amount shall be carried forward and made as soon as such adjustment together with other adjustments required
by this Article X and not previously made would result in a Minimum Adjustment. Notwithstanding the foregoing, any adjustment required
by this Article X which otherwise would not result in a Minimum Adjustment shall be made with respect to shares of Common Stock
relating to any Award immediately prior to exercise, payment or settlement of such Award. No fractional shares of Common Stock
or units of other securities shall be issued pursuant to any such adjustment, and any fractions resulting from any such adjustment
shall be eliminated in each case by rounding downward to the nearest whole share.

 

ARTICLE XI

GENERAL

 

Section 11.1 Amendment or Termination
of Plan. The Board may alter, suspend or terminate the Plan at any time provided, however, that it may not, without stockholder
approval, adopt any amendment which would (i) increase the aggregate number of shares of Common Stock available under the Plan
(except by operation of Article X), (ii) materially modify the requirements as to eligibility for participation in the Plan, or
(iii) materially increase the benefits to Participants provided by the Plan.

 

     

     

    

 

Section 11.2 Termination of Employment;
Termination of Service. Except as otherwise provided in an Award Agreement: (i) if an Eligible Employee’s employment
with the Company, a Subsidiary or an Affiliated Entity terminates as a result of death, Disability or Retirement, the Eligible
Employee (or personal representative in the case of death) shall be entitled to purchase all or any part of the shares subject
to any (x) vested Incentive Stock Option for a period of up to three months from such date of termination (one year in the case
of death or Disability), and (y) vested Nonqualified Stock Option during the remaining term of the Option; and (ii) if an Eligible
Employee’s employment terminates for any other reason, the Eligible Employee shall be entitled to purchase all or any part
of the shares subject to any vested Option for a period of up to three months from such date of termination. In no event shall
any Option be exercisable past the term of the Option. The Board may, in its sole discretion, accelerate the vesting of unvested
Options in the event of termination of employment of any Participant.

 

Except as otherwise provided in an Award
Agreement: (i) in the event a Consultant ceases to provide services to the Company or an Eligible Director terminates service as
a director of the Company, the unvested portion of any Award shall be forfeited unless otherwise accelerated pursuant to the terms
of the Eligible Director’s Award Agreement or by the Board; and (ii) the Consultant or Eligible Director shall have a period
of three years following the date he ceases to provide consulting services or ceases to be a director, as applicable, to exercise
any Nonqualified Stock Options which are otherwise exercisable on his date of termination of service.

 

Section 11.3 Limited Transferability
– Options. The Board may, in its discretion, authorize all or a portion of the Nonqualified Stock Options granted under
this Plan to be on terms which permit transfer by the Participant to (i) the ex-spouse of the Participant pursuant to the terms
of a domestic relations order, (ii) the spouse, children or grandchildren of the Participant (“Immediate Family Members”),
(iii) a trust or trusts for the exclusive benefit of such Immediate Family Members, (iv) a partnership or limited liability company
in which such Immediate Family Members are the only partners or members, or (v) as otherwise determined by the Board in accordance
with applicable law. In addition, there may be no consideration for any such transfer. The Award Agreement pursuant to which such
Nonqualified Stock Options are granted expressly provide for transferability in a manner consistent with this paragraph. Subsequent
transfers of transferred Nonqualified Stock Options shall be prohibited except as set forth below in this Section 11.3. Following
transfer, any such Nonqualified Stock Options shall continue to be subject to the same terms and conditions as were applicable
immediately prior to transfer, provided that for purposes of Section 11.2 hereof the term “Participant” shall be deemed
to refer to the transferee. The events of termination of employment of Section 11.2 hereof shall continue to be applied with respect
to the original Participant, following which the Nonqualified Stock Options shall be exercisable by the transferee only to the
extent, and for the periods specified in Section 11.2 hereof. No transfer pursuant to this Section 11.3 shall be effective to bind
the Company unless the Company shall have been furnished with written notice of such transfer together with such other documents
regarding the transfer as the Board shall request. With the exception of a transfer in compliance with the foregoing provisions
of this Section 11.3, all other types of Awards authorized under this Plan shall be transferable only by will or the laws of descent
and distribution; however, no such transfer shall be effective to bind the Company unless the Board has been furnished with written
notice of such transfer and an authenticated copy of the will and/or such other evidence as the Board may deem necessary to establish
the validity of the transfer and the acceptance by the transferee of the terms and conditions of such Award.

 

Section 11.4 Withholding Taxes. Unless
otherwise paid by the Participant, the Company, its Subsidiaries or any of its Affiliated Entities shall be entitled to deduct
from any payment under the Plan, regardless of the form of such payment, the amount of all applicable income and employment taxes
required by law to be withheld with respect to such payment or may require the Participant to pay to it such tax prior to and as
a condition of the making of such payment. In accordance with any applicable administrative guidelines it establishes, the Board
may allow a Participant to pay the amount of taxes required by law to be withheld from an Award by (i) directing the Company to
withhold from any payment of the Award a number of shares of Common Stock having a Fair Market Value on the date of payment equal
to the amount of the required withholding taxes or (ii) delivering to the Company previously owned shares of Common Stock having
a Fair Market Value on the date of payment equal to the amount of the required withholding taxes. However, any payment made by
the Participant pursuant to either of the foregoing clauses (i) or (ii) shall not be permitted if it would result in an adverse
accounting charge with respect to such shares used to pay such taxes unless otherwise approved by the Board.

 

     

     

    

 

Section 11.5 Change of Control. Notwithstanding
any other provision in this Plan to the contrary, Awards granted under the Plan to any Eligible Employee, Consultant or Eligible
Director shall be immediately vested, fully earned and exercisable upon the occurrence of a Change of Control Event unless the
terms of the Award state otherwise.

 

Section 11.6 Amendments to Awards. The
Board may at any time unilaterally amend the terms of any Award Agreement, whether or not presently exercisable or vested, to the
extent it deems appropriate. However, amendments which are adverse to the Participant shall require the Participant’s consent.

 

Section 11.7 Registration; Regulatory
Approval. Following approval of the Plan by the stockholders of the Company as provided in Section 1.2 of the Plan, the Board,
in its sole discretion, may determine to file with the Securities and Exchange Commission and keep continuously effective, a Registration
Statement on Form S-8 with respect to shares of Common Stock subject to Awards hereunder. Notwithstanding anything contained in
this Plan to the contrary, the Company shall have no obligation to issue shares of Common Stock under this Plan prior to the obtaining
of any approval from, or satisfaction of any waiting period or other condition imposed by, any governmental agency which the Board
shall, in its sole discretion, determine to be necessary or advisable.

 

Section 11.8 Right to Continued Employment.
Participation in the Plan shall not give any Eligible Employee any right to remain in the employ of the Company, any Subsidiary,
or any Affiliated Entity. The Company or, in the case of employment with a Subsidiary or an Affiliated Entity, the Subsidiary or
Affiliated Entity reserves the right to terminate any Eligible Employee at any time. Further, the adoption of this Plan shall not
be deemed to give any Eligible Employee or any other individual any right to be selected as a Participant or to be granted an Award.

 

Section 11.9 Reliance on Reports. Each
member of the Board and each member of the Board shall be fully justified in relying or acting in good faith upon any report made
by the independent public accountants of the Company and its Subsidiaries and upon any other information furnished in connection
with the Plan by any person or persons other than himself or herself. In no event shall any person who is or shall have been a
member of the Board be liable for any determination made or other action taken or any omission to act in reliance upon any such
report or information or for any action taken, including the furnishing of information, or failure to act, if in good faith.

 

Section 11.10 Construction. Masculine
pronouns and other words of masculine gender shall refer to both men and women. The titles and headings of the sections in the
Plan are for the convenience of reference only, and in the event of any conflict, the text of the Plan, rather than such titles
or headings, shall control.

 

Section 11.11 Governing Law. The
Plan shall be governed by and construed in accordance with the laws of the State of Delaware except as superseded by applicable
Federal law.

 

Section 11.12 Other Laws. The Board
may refuse to issue or transfer any shares of Common Stock or other consideration under an Award if, acting in its sole discretion,
it determines that the issuance or transfer of such shares or such other consideration might violate any applicable law or regulation
or entitle the Company to recover the same under Section 16(b) of the Exchange Act, and any payment tendered to the Company by
a Participant, other holder or beneficiary in connection with the exercise of such Award shall be promptly refunded to the relevant
Participant, holder or beneficiary.

 

Section 11.13 No Trust or Fund Created.
Neither the Plan nor an Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship
between the Company and a Participant or any other person. To the extent that a Participant acquires the right to receive payments
from the Company pursuant to an Award, such right shall be no greater than the right of any general unsecured creditor of the Company.

 

Section 11.14 Conformance to Section
409A of the Code To the extent that the Committee determines that any Award granted under the Plan is subject to Section 409A
of the Code, the Award Agreement evidencing such Award shall incorporate the terms and conditions required by Section 409A of the
Code. To the extent applicable, the Plan and Award Agreements shall be interpreted in accordance with Section 409A of the Code
and Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such
regulations or other guidance that may be issued after the Effective Date. Notwithstanding any provision of the Plan to the contrary,
in the event that the Committee determines that any Award may be subject to Section 409A of the Code and related Department of
Treasury guidance, the Committee may adopt such amendments to the Plan and the applicable Award Agreement or adopt other policies
and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Committee
determines are necessary or appropriate to (i) exempt the Award from Section 409A of the Code or (ii) comply with the requirements
of Section 409A of the Code and related Department of Treasury guidance.

 

     

     

    

 

EXHIBIT A

 

2017 Long-Term Incentive Compensation
Plan

 

Performance Criteria

 

Operational Criteria may include:

Reserve additions/replacements

Finding & development costs

Production volume

Production Costs

Acquisitions, dispositions, development and development related
activity

Financial Criteria may include:

Earnings (net income, earnings before interest, taxes, depreciation
and amortization (“EBITDA”)

 

Earnings per share:

Cash flow

Operating income

General and Administrative Expenses

Debt to equity ratio

Debt to cash flow

Debt to EBITDA

EBITDA to Interest

Return on Assets

Return on Equity

Return on Invested Capital

Profit returns/margins

Midstream margins

 

Stock Performance Criteria:

Stock price appreciation

Total stockholder return

Relative stock price performance

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