Document:

EX-10.1

 Exhibit 10.1 

WESTLAKE CHEMICAL CORPORATION 

2013 OMNIBUS INCENTIVE PLAN 

(As amended and Restated Effective May 19, 2017) 

1. Purpose of the Plan. The Westlake Chemical Corporation 2013 Omnibus Incentive Plan, as amended and restated effective May 19,
2017 (the “Plan”) of Westlake Chemical Corporation, a Delaware corporation (the “Company”), is intended to advance the best interests of the Company and its Subsidiaries by providing certain Employees and Directors of the Company
and its Subsidiaries with additional incentives through the grant of Options to purchase common stock, par value US $0.01 per share of the Company (“Common Stock”), Stock Appreciation Rights (“SARs”), Restricted Stock, Stock
Units, Cash Awards and/or Performance Awards, thereby increasing the personal stake of such Employees and Directors in the continued success and growth of the Company. The Plan is a continuation, and amendment and restatement, of the Company’s
2004 Omnibus Incentive Plan. 
 2. Definitions. As used herein, the terms set forth below shall have the following respective
meanings: 
 “Administrator” means the Compensation Committee of the Board or such other committee as designated by the Board.

 “Authorized Officer” means the Chief Executive Officer or the Senior Vice President, Administration of the Company (or any
other senior officer of the Company to whom the Administrator or such Authorized Officer shall delegate the authority to execute any Award Agreement or to carry out any actions, duties or other responsibilities under the Plan as may be permitted by
applicable law and directed by the Administrator, where applicable). 
 “Award” means an Employee Award or a Director Award. 

“Award Agreement” means a written or electronic notice or agreement setting forth the terms, conditions and limitations applicable
to an Award, to the extent the Administrator determines such agreement or notice is necessary. 
 “Board” means the Board of
Directors of the Company. 
 “Cash Award” means an Award denominated in cash. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time. 

“Common Stock” means the common stock, par value $0.01 per share, of the Company. 

“Company” means Westlake Chemical Corporation, a Delaware corporation, or any successor thereto. 

“Director” means an individual who is a member of the Board that is not an Employee of the Company or any of its Subsidiaries. 

“Director Award” means any Option, Stock Appreciation Right or Stock Award granted, whether singly, in combination or in tandem, to
a Director pursuant to such applicable terms, conditions and limitations as the Administrator may establish in order to fulfill the objectives of the Plan. 

“Dividend Equivalents” means an amount equal to all dividends and other distributions (or the economic equivalent thereof) that are
payable by the Company on one share of Common Stock to stockholders of record, which, in the discretion of the Administrator, may be awarded (i) in connection with any Award under the Plan while such Award is outstanding or otherwise subject to
a Restriction Period and on a like number of shares of Common Stock under such Award or (ii) singly. 

 “Employee” means an employee of the Company or any of its Subsidiaries and an
individual who has agreed to become an Employee of the Company or any of its Subsidiaries and actually becomes such an Employee within the following six months. 

“Employee Award” means any Option, Stock Appreciation Right, Stock Award or Cash Award (including any Performance Award) granted,
whether singly, in combination or in tandem, to an Employee pursuant to such applicable terms, conditions and limitations (including treatment as a Performance Award) as the Administrator may establish in order to fulfill the objectives of the Plan.

 “Fair Market Value” of a share of Common Stock means, as of a particular date, (i) (A) if Common Stock is listed on a
national securities exchange, the mean between the highest and lowest sales price per share of the Common Stock on the consolidated transaction reporting system for the principal national securities exchange on which shares of Common Stock are
listed on that date, or, if there shall have been no such sale so reported on that date, on the last preceding date on which such a sale was so reported, or, at the discretion of the Administrator, the price prevailing on the exchange at the time of
exercise, (B) the mean between the highest and lowest sales price per share of such Common Stock reported on the consolidated transaction reporting system for The Nasdaq Stock Market, Inc. or, if there shall have been no such sale so reported
on that date, on the last preceding date on which such a sale was reported, (C) if Common Stock is not so listed or quoted, the mean between the closing bid and asked price on that date, or, if there are no quotations available for such date,
on the last preceding date on which such quotations shall be available, as reported by The Nasdaq Stock Market, Inc., or, if not reported by The Nasdaq Stock Market, Inc., by the National Quotation Bureau Incorporated or (D) if Common Stock is
not publicly traded, the most recent value determined by an independent appraiser appointed by the Company for such purpose, or (ii) if applicable, the price per share as determined in accordance with the procedures of a third party
administrator retained by the Company to administer the Plan. 
 “Grant Date” means the date an Award is granted to a Participant
pursuant to the Plan. The Grant Date for a substituted award is the Grant Date of the original award. 
 “Grant Price” means the
price at which a Participant may exercise his or her right to receive cash or Common Stock, as applicable, under the terms of an Award. 

“Incentive Option” means an Option that is intended to comply with the requirements set forth in Section 422 of the Code. 

“Nonqualified Option” means an Option that is not an Incentive Option. 

“Option” means a right to purchase a specified number of shares of Common Stock at a specified price. 

“Participant” means an Employee or Director to whom an Award has been granted under this Plan. 

“Performance Award” means an Award made pursuant to this Plan that is subject to the attainment in the future of one or more
Performance Goals. 
 “Performance Goal” means a standard established by the Administrator, to determine in whole or in part
whether a Performance Award shall be earned. 
 “Qualified Performance Award” means a Performance Award made to an Employee that
is intended to qualify as qualified performance-based compensation under Section 162(m) of the Code, as described in Section 7(a)(v)(B) of the Plan. 

“Restricted Stock” means Common Stock that is restricted or subject to forfeiture provisions. 

 “Restriction Period” means a period of time beginning as of the Grant Date of an Award
of Restricted Stock and ending as of the date upon which the Common Stock subject to such Award is no longer restricted or subject to forfeiture provisions. 

“Stock Appreciation Right” or “SAR” means a right to receive a payment, in cash or Common Stock, equal to the excess of
the Fair Market Value or other specified valuation of a specified number of shares of Common Stock on the date the right is exercised over a specified Grant Price, in each case as determined by the Administrator. 

“Stock Award” means an Award in the form of shares of Common Stock or Stock Units, including an award of Restricted Stock. 

“Stock Unit” means a unit evidencing the right to receive in specified circumstances one share of Common Stock (as determined by the
Administrator) granted to either an Employee or a Director. 
 “Subsidiary” means (i) in the case of a corporation, any
corporation of which the Company directly or indirectly owns shares representing more than 50% of the combined voting power of the shares of all classes or series of capital stock of that corporation that have the right to vote generally on matters
submitted to a vote of the stockholders of that corporation and (ii) in the case of a partnership or other business entity not organized as a corporation, any such business entity of which the Company directly or indirectly owns more than 50%
of the voting, capital or profits interests (whether in the form of partnership interests, membership interests or otherwise). 
 3.
Eligibility. 
 (a) Employees. Employees eligible for the grant of Employee Awards under this Plan are
Employees, including Employees that may serve as a director of the Company. 
 (b) Directors. Members of the Board
eligible for the grant of Director Awards under this Plan are those who are Directors. 
 4. Common Stock Available for Awards.
Subject to the provisions of Section 14 hereof, there shall be available for Awards under this Plan granted or payable wholly or partly in Common Stock (including rights that may be exercised for or settled in Common Stock) an aggregate of
12,654,000 shares. 
 The number of shares of Common Stock that are the subject of Awards under this Plan that are forfeited or terminated, expire
unexercised, are settled in cash in lieu of Common Stock or otherwise in a manner such that all or some of the shares covered by an Award are not issued to a Participant or are exchanged for Awards that do not involve Common Stock, shall not be
counted against the aggregate plan maximum or any sublimit set forth above and shall again immediately become available for Awards hereunder. If the tax withholding obligation resulting from the settlement of any Award is satisfied by withholding
shares of Common Stock, only the number of shares of Common Stock issued net of the shares of Common Stock withheld shall be deemed delivered for purposes of determining usage of shares against the maximum number of shares of Common Stock available
for delivery under the Plan or any sublimit set forth above. Shares of Common Stock delivered under the Plan as an Award or in settlement of an Award issued or made (a) upon the assumption, substitution, conversion or replacement of outstanding
awards under a plan or arrangement of an entity acquired in a merger or other acquisition or (b) as a post-transaction grant under such a plan or arrangement of an acquired entity shall not reduce or be counted against the maximum number of
shares of Common Stock available for delivery under the Plan, to the extent that the exemption for transactions in connection with mergers acquisitions from the shareholder approval requirements of the New York Stock Exchange for equity compensation
plans applies. The Administrator may from time to time adopt and observe such rules and procedures concerning the counting of shares against the Plan maximum or any sublimit as it may deem appropriate, including rules more restrictive than those set
forth above to the extent necessary to satisfy the requirements of any national stock exchange on which the Common Stock is listed or any applicable regulatory requirement. The Board and the appropriate officers of the Company are authorized to take
from time to time whatever actions are necessary, and to file any required documents with governmental authorities, stock exchanges and transaction reporting systems to ensure that shares of Common Stock are available for issuance pursuant to
Awards. 

 5. Administration. 

(a) This Plan shall be administered by the Administrator, except as otherwise provided herein. 

(b) Subject to the provisions hereof, the Administrator shall have full and exclusive power and authority to administer this
Plan and to take all actions that are specifically contemplated hereby or are necessary or appropriate in connection with the administration hereof. The Administrator shall also have full and exclusive power to interpret this Plan and to adopt such
rules, regulations and guidelines for carrying out this Plan as it may deem necessary or proper. The Administrator may, in its discretion, provide for the extension of the exercisability of an Award, accelerate the vesting or exercisability of an
Award, eliminate or make less restrictive any restrictions applicable to an Award, waive any restriction or other provision of this Plan (insofar as such provision relates to Awards) or an Award or otherwise amend or modify an Award in any manner
that is either (i) not adverse to the Participant to whom such Award was granted or (ii) consented to by such Participant. Notwithstanding anything herein to the contrary, without the prior approval of the Company’s stockholders,
Awards issued under the Plan will not be repriced, replaced or regranted through cancellation or by decreasing the exercise price of a previously granted Award. The Administrator may make an Award to an individual who it expects to become an
Employee of the Company or any of its Subsidiaries within the next six months, with such award being subject to the individual’s actually becoming an Employee within such time period, and subject to such other terms and conditions as may be
established by the Administrator. The Administrator may correct any defect or supply any omission or reconcile any inconsistency in this Plan or in any Award in the manner and to the extent the Administrator deems necessary or desirable to further
the Plan purposes. Any decision of the Administrator, with respect to Awards, in the interpretation and administration of this Plan shall lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties
concerned. 
 (c) No member of the Administrator or Authorized Officer of the Company to whom the Administrator has delegated
authority in accordance with the provisions of Section 6 of this Plan shall be liable for anything done or omitted to be done by him or her, by any member of the Administrator or by any officer of the Company in connection with the performance
of any duties under this Plan, except for his or her own willful misconduct or as expressly provided by statute. 
 6. Delegation of
Authority. Following the authorization of a pool of cash or shares of Common Stock to be available for Awards, the Administrator may authorize an Authorized Officer of the Company, if and to the extent permitted by applicable law, rule or
regulation, or a subcommittee of members of the Administrator to grant individual Employee Awards from such pool pursuant to such conditions or limitations as the Administrator may establish. The Administrator may also delegate to an Authorized
Officer its administrative duties under this Plan (excluding its granting authority) pursuant to such conditions or limitations as the Administrator may establish. The Administrator may engage or authorize the engagement of a third party
administrator to carry out administrative functions under the Plan. 
 7. Awards. 

(a) The Administrator shall determine the type or types of Awards to be made under this Plan and shall designate from time to
time the Participants who are to be the recipients of such Awards. Each Award may, in the discretion of the Administrator, be embodied in an Award Agreement, which shall contain such terms, conditions and limitations as shall be determined by the
Administrator in its sole discretion and, if required by the Administrator, shall be signed or affirmatively accepted by the Participant to whom the Award is granted and by an Authorized Officer for and on behalf of the Company. Awards may consist
of those listed in this Section 7(a) and may be granted singly, in combination or in tandem. Awards may also be granted in combination or in tandem with, in replacement of (subject to Sections 12 and 9(d)), or as alternatives to, grants or
rights under this Plan or any other plan of the Company or any of its Subsidiaries, including the plan of any acquired entity. An Award may provide for the grant or issuance of additional, replacement or alternative Awards upon the occurrence of
specified events. All or part of an Award may be subject to conditions established by the Administrator, which may include, but are not limited to, continuous service with the Company and its Subsidiaries, execution and compliance with contracts
required by the Company for the position(s) held by the Participant, achievement of specific business objectives, items referenced to in clause (v) below, and other comparable measurements of performance.

 
Upon an Employee’s termination of employment, any unexercised, deferred, unvested or unpaid Employee Awards shall be treated as set forth in the applicable Employee Award Agreement or as
otherwise specified by the Administrator. 
 (i) Option. An Employee Award may be in the form of an Incentive Option
or a Nonqualified Option. A Director Award may be in the form of a Nonqualified Option. The term of the Option shall extend no more than 10 years after the Grant Date. The price at which any share of Common Stock may be purchased on the exercise of
any Option will not be less than the Fair Market Value of a share of the Common Stock on the date of grant of that Option. Subject to the foregoing provisions, the terms, conditions and limitations applicable to any Options awarded pursuant to this
Plan, including the Grant Price, minimum vesting, the number of shares subject to the Option and the date or dates upon which they become exercisable, shall be determined by the Administrator. 

(ii) Stock Appreciation Rights. An Award may be in the form of an SAR. SARs may be granted in tandem with an Option or
other Award, either at the time of grant or by later amendment thereto, or on a freestanding basis not related to any other Award. The Grant Price of an SAR shall be determined by the Administrator but shall not be less than the Fair Market Value of
the Common Stock subject to such SAR on the Grant Date or the Grant Price of a tandem Option to which such SAR relates. The holder of a tandem SAR may elect to exercise either the Option or the SAR, but not both. The exercise period for an SAR shall
extend no more than 10 years after the Grant Date. Subject to the foregoing provisions, the terms, conditions and limitations applicable to any SARs awarded to Participants pursuant to this Plan, including the Grant Price, the term of any SARs and
the date or dates upon which they become exercisable, shall be determined by the Administrator. 
 (iii) Stock Award.
An Employee Award or Director Award may be in the form of a Stock Award. The terms, conditions and limitations applicable to any Stock Awards granted to Participants pursuant to this Plan shall be determined by the Administrator, subject to the
limitations specified below. 
 (iv) Cash Award. An Employee Award may be in the form of a Cash Award. The terms,
conditions and limitations applicable to any Cash Awards granted pursuant to this Plan shall be determined by the Administrator. 

(v) Performance Award. Without limiting the type or number of Employee Awards or Director Awards that may be made under
the other provisions of this Plan, an Employee Award or Director Award may be in the form of a Performance Award. The terms, conditions and limitations applicable to any Performance Awards granted to Participants pursuant to this Plan shall be
determined by the Administrator, subject to the limitations specified below. The Administrator shall set Performance Goals in its discretion which, depending on the extent to which they are met, will determine the value and/or amount of Performance
Awards that will be paid out to the Participant and/or the portion of an Award that may be exercised. 
 (A) Nonqualified
Performance Awards. Performance Awards granted to Employees or Directors that are not intended to qualify as qualified performance-based compensation under Section 162(m) of the Code shall be based on
achievement of such Performance Goals and be subject to such terms, conditions and restrictions as the Administrator or its delegate shall determine. 

(B) Qualified Performance Awards. Performance Awards granted to Employees under the Plan that are intended to qualify
as qualified performance-based compensation under Section 162(m) of the Code shall be paid, vested or otherwise deliverable solely on account of the attainment of one or more pre-established, objective
Performance Goals established by the Administrator prior to the earlier to occur of (x) 90 days after the commencement of the period of service to which the Performance Goal relates and (y) the lapse of 25% of the period of service (as
scheduled in good faith at the 

 
time the goal is established), and in any event while the outcome is substantially uncertain. A Performance Goal is objective if a third party having knowledge of the relevant facts could
determine whether the goal is met. Such a Performance Goal may be based on one or more business criteria that apply to the Employee, one or more business units, divisions or sectors of the Company, or the Company as a whole, and if so desired by the
Administrator, by comparison with a peer group of companies. A Performance Goal may include one or more of the following: increased revenue; net income measures (including but not limited to income after capital costs and income before or after
taxes); stock price measures (including but not limited to growth measures and total stockholder return); price per share of Common Stock; market share; net earnings; earnings per share (actual or targeted growth); earnings before interest, taxes,
depreciation, and amortization (“EBITDA”); earnings before interest, taxes and amortization (“EBITA”); earnings before interest and taxes (“EBIT”); net operating profit after tax (“NOPAT”); economic value
added (or an equivalent metric); market value added; debt to equity ratio; cash flow measures (including but not limited to cash flow per share, cash flow return on capital, cash flow return on tangible capital, net cash flow, net cash flow before
financing activities and improvement in or attainment of working capital levels); financial measures (including but not limited to spreads, margin, meeting budget and unit revenue); cost measures or controls (including but not limited to conversion
costs, controllable costs, procurement costs, freight costs and material savings); quality measures (including but not limited to product quality, scrap rate, prime production and complaints and returns); return measures (including but not limited
to return on equity, return on average assets, return on capital, risk-adjusted return on capital, return on investors’ capital and return on average equity); operating measures (including operating income, funds from operations, cash from
operations, after-tax operating income, sales volumes, operating efficiency, production volumes and production efficiency); expense measures (including but not limited to overhead cost, product cost, general and administrative expense and
improvement in or attainment of expense levels); marketing and logistics measures (including but not limited to days of inventory, days sales outstanding, on time delivery or shipment and distribution rates); margins; stockholder value; proceeds
from dispositions; total market value; reliability; productivity measures (including but not limited to on stream factor, operating rates, energy efficiency, yields and pounds per employee); corporate values measures (including ethics compliance,
environmental, and safety) and debt reduction. 
 Unless otherwise stated, such a Performance Goal need not be based upon an
increase or positive result under a particular business criterion and could include, for example, maintaining the status quo or limiting economic losses (measured, in each case, by reference to specific business criteria). In interpreting Plan
provisions applicable to Performance Goals and Qualified Performance Awards, it is the intent of the Plan to conform with the standards of Section 162(m) of the Code and Treasury Regulation Section 1.162-27(e)(2)(i), as to grants to those
Employees whose compensation is, or is likely to be, subject to Section 162(m) of the Code, and the Administrator in establishing such goals and interpreting the Plan shall be guided by such provisions. Prior to the payment of any compensation
based on the achievement of Performance Goals applicable to Qualified Performance Awards, the Administrator must certify in writing that applicable Performance Goals and any of the material terms thereof were, in fact, satisfied. Subject to the
foregoing provisions, the terms, conditions and limitations applicable to any Qualified Performance Awards made pursuant to this Plan shall be determined by the Administrator. 

(b) Notwithstanding anything to the contrary contained in this Plan, the following limitations shall apply to any Awards made
hereunder: 
 (i) no Employee may be granted, during any calendar year, Awards consisting of Options or SARs that are
exercisable for more than 1,500,000 shares of Common Stock (the limitation set forth in this clause (b)(i), together with the limitations set forth in clauses (b)(ii) below, being hereinafter collectively referred to as the “Stock Based Awards
Limitations”); 

 (ii) no Employee may be issued, during any calendar year, more than 1,500,000
shares of Common Stock in connection with Stock Awards; 
 (iii) no Employee may be granted Awards consisting of Cash Awards
that are intended to constitute performance-based awards subject to Section 7(a)(v)(B) having a maximum payment value in any calendar year in excess of $7,500,000; and 

(iv) no Director may be granted Awards in any calendar year having a value as determined on the Grant Date, taken together with
any cash fees paid by the Company to such Director in such calendar year, in excess of $1,000,000. 
 8. Non-United States
Participants. The Administrator may grant awards to persons outside the United States under such terms and conditions as may, in the judgment of the Administrator, be necessary or advisable to comply with the laws of the applicable foreign
jurisdictions and, to that end, may establish sub-plans, modified option exercise procedures and other terms and procedures. Notwithstanding the above, the Administrator may not take any actions hereunder, and no Awards shall be granted, that would
violate the Code, any securities law, any governing statute, or any other applicable law. 
 9. Payment of Awards. 

(a) General. Payment made to a Participant pursuant to an Award may be made in the form of cash or Common Stock, or a
combination thereof, and may include such restrictions as the Administrator shall determine, including, in the case of Common Stock, restrictions on transfer and forfeiture provisions. If such payment is made in the form of Restricted Stock, the
Administrator shall specify whether the underlying shares are to be issued at the beginning or end of the Restriction Period. In the event that shares of Restricted Stock are to be issued at the beginning of the Restriction Period, the certificates
evidencing such shares (to the extent that such shares are so evidenced) shall contain appropriate legends and restrictions that describe the terms and conditions of the restrictions applicable thereto. In the event that shares of Restricted Stock
are to be issued at the end of the Restricted Period, the right to receive such shares shall be evidenced by book entry account or in such other manner as the Administrator may determine. 

(b) Deferral. With the approval of the Administrator, amounts payable in respect of Awards may be deferred and paid
either in the form of installments or as a lump-sum payment. The Administrator may permit selected Participants to elect to defer payments of some or all types of Awards or any other compensation otherwise payable by the Company in accordance with
procedures established by the Administrator and may provide that such deferred compensation may be payable in shares of Common Stock. Any deferred payment pursuant to an Award, whether elected by the Participant or specified by the Award Agreement
or the terms of the Award or by the Administrator, may be forfeited if and to the extent that the Award Agreement or the terms of the Award so provide. 

(c) Dividends, Earnings and Interest. Rights to dividends or Dividend Equivalents may be extended to and made part of
any Award, subject to such terms, conditions and restrictions as the Administrator may establish. The Administrator may also establish rules and procedures for the crediting of interest or other earnings on deferred cash payments and Dividend
Equivalents for Awards. 
 (d) Substitution of Awards. Subject to Sections 12 and 14, at the discretion of the
Administrator, an Employee may be offered an election to substitute an Employee Award for another Employee Award or Employee Awards of the same or different type; provided, however, that no Option may be granted in exchange or in replacement of an
Option having a higher exercise price. 
 10. Payment of Grant Price. The Grant Price shall be paid in full at the time of exercise
in cash or, if permitted by the Administrator and elected by the Participant, the Participant may purchase such shares by means of tendering Common Stock or surrendering another Award valued at Fair Market Value on the date of exercise, or any

 
combination thereof. The Administrator shall determine acceptable methods and requirements for Participants to tender Common Stock or other Awards. The Administrator may provide for procedures to
permit the exercise or purchase of such Awards by use of the proceeds to be received from the sale of Common Stock issuable pursuant to an Award. The Administrator may adopt additional rules and procedures regarding the payment of the Grant Price of
Awards from time to time, provided that such rules and procedures are not inconsistent with the provisions of this Section 10. 
 A
Participant desiring to pay the Grant Price of an Option by tendering Common Stock using the method of attestation may, subject to any such conditions and in compliance with any such procedures as the Administrator may adopt, do so by attesting to
the ownership of Common Stock of the requisite value in which case the Company shall issue or otherwise deliver to the Participant upon such exercise a number of shares of Common Stock subject to the Option equal to the result obtained by dividing
(a) the excess of the aggregate Fair Market Value of the shares of Common Stock subject to the Option for which the Option (or portion thereof) is being exercised over the Grant Price payable in respect of such exercise by (b) the Fair
Market Value per share of Common Stock subject to the Option, and the Participant may retain the shares of Common Stock the ownership of which is attested. 

11. Taxes. The Company or its designated third party administrator shall have the right to deduct applicable taxes from any Award
payment and withhold, at the time of delivery or vesting of cash or shares of Common Stock under this Plan, an appropriate amount of cash or number of shares of Common Stock or a combination thereof for payment of taxes or other amounts required by
law or to take such other action as may be necessary in the opinion of the Company to satisfy all obligations for withholding of such taxes. The Administrator may also permit withholding to be satisfied by a cash payment to the Company or the
transfer to the Company of shares of Common Stock theretofore owned by the holder of the Award with respect to which withholding is required. If shares of Common Stock are used to satisfy tax withholding, such shares shall be valued based on the
Fair Market Value when the tax withholding is required to be made. 
 12. Amendment, Modification, Suspension or Termination of the Plan.
The Board may amend, modify, suspend or terminate this Plan for the purpose of meeting or addressing any changes in legal requirements or for any other purpose permitted by law, except that (i) no amendment or alteration that would
adversely affect the rights of any Participant under any Award previously granted to such Participant shall be made without the consent of such Participant and (ii) no amendment or alteration shall be effective prior to its approval by the
stockholders of the Company to the extent such approval is required by applicable legal requirements or the applicable requirements of the securities exchange on which the Company’s Common Stock is listed. 

13. Assignability. Unless otherwise determined by the Administrator and provided in the Award Agreement or the terms of the Award, no
Award or any other benefit under this Plan shall be assignable or otherwise transferable except by will, by beneficiary designation or the laws of descent and distribution or pursuant to a qualified domestic relations order as defined by the Code or
Title I of the Employee Retirement Income Security Act, or the rules thereunder. In the event that a beneficiary designation conflicts with an assignment by will, the beneficiary designation will prevail. The Administrator may prescribe and include
in applicable Award Agreements or the terms of the Award other restrictions on transfer. Any attempted assignment of an Award or any other benefit under this Plan in violation of this Section 13 shall be null and void. 

14. Adjustments. 

(a) The existence of outstanding Awards shall not affect in any manner the right or power of the Company or its stockholders to
make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the capital stock of the Company or its business or any merger or consolidation of the Company, or any issue of bonds, debentures, preferred or prior
preference stock (whether or not such issue is prior to, on a parity with or junior to the existing Common Stock) or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other
corporate act or proceeding of any kind, whether or not of a character similar to that of the acts or proceedings enumerated above. 

(b) In the event of any subdivision or consolidation of outstanding shares of Common Stock, declaration of a dividend payable
in shares of Common Stock or other stock split, then (i) the number of 

 
shares of Common Stock reserved under this Plan and available for issuance pursuant to specific types of Awards as described in Section 4, (ii) the number of shares of Common Stock
covered by outstanding Awards, (iii) the appropriate Fair Market Value and other price determinations for such Awards, and (iv) the Stock Based Awards Limitations shall each be proportionately adjusted by the Administrator as appropriate
to reflect such transaction. In the event of any other recapitalization or capital reorganization of the Company, any consolidation or merger of the Company with another Company or entity, the adoption by the Company of any plan of exchange
affecting Common Stock or any distribution to holders of Common Stock of securities or property (other than normal cash dividends or dividends payable in Common Stock), the Administrator shall make appropriate adjustments to (x) the number of
shares of Common Stock reserved under this Plan and (y)(i) the number of shares of Common Stock covered by Awards, (ii) the Grant Price or other price in respect of such Awards, (iii) the appropriate Fair Market Value and other price
determinations for such Awards, and (iv) the Stock Based Awards Limitations to reflect such transaction; provided that such adjustments shall only be such as are necessary to maintain the proportionate interest of the holders of the Awards and
preserve, without increasing, the value of such Awards. In the event of a corporate merger, consolidation, acquisition of assets or stock, separation, reorganization, or liquidation, the Board shall be authorized (x) to assume under the Plan
previously granted compensatory awards, or to substitute new Awards for previously granted compensatory awards, including Awards, as part of such adjustment; (y) to cancel Awards that are Options or SARs and give the Participants who are the
holders of such Awards notice and opportunity to exercise for 30 days prior to such cancellation; or (z) to cancel any such Awards and to deliver to the Participants cash in an amount that the Board shall determine in its sole discretion is
equal to the fair market value of such Awards on the date of such event, which in the case of Options or SARs shall be the excess of the Fair Market Value of Common Stock on such date over the exercise or strike price of such Award. 

15. Restrictions. No Common Stock or other form of payment shall be issued with respect to any Award unless the Company shall be
satisfied based on the advice of its counsel that such issuance will be in compliance with applicable federal and state securities laws. Certificates evidencing shares of Common Stock delivered under this Plan (to the extent that such shares are so
evidenced) may be subject to such stop transfer orders and other restrictions as the Administrator may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any securities exchange or
transaction reporting system upon which the Common Stock is then listed or to which it is admitted for quotation and any applicable federal or state securities law. The Administrator may cause a legend or legends to be placed upon such certificates
(if any) to make appropriate reference to such restrictions. 
 16. Unfunded Plan. This Plan shall be unfunded. Although bookkeeping
accounts may be established with respect to Participants under this Plan, any such accounts shall be used merely as a bookkeeping convenience, including bookkeeping accounts established by a third party administrator retained by the Company to
administer the Plan. The Company shall not be required to segregate any assets for purposes of this Plan or Awards hereunder, nor shall the Company, the Board or the Administrator be deemed to be a trustee of any benefit to be granted under this
Plan. Any liability or obligation of the Company to any Participant with respect to an Award under this Plan shall be based solely upon any contractual obligations that may be created by this Plan and any Award Agreement or the terms of the Award,
and no such liability or obligation of the Company shall be deemed to be secured by any pledge or other encumbrance on any property of the Company. Neither the Company nor the Board nor the Administrator shall be required to give any security or
bond for the performance of any obligation that may be created by this Plan. 
 17. Right to Employment. Nothing in the Plan or an
Award Agreement shall interfere with or limit in any way the right of the Company to terminate any Participant’s employment or other service relationship at any time, nor confer upon any Participant any right to continue in the capacity in
which he or she is employed or otherwise serves the Company. 
 18. Successors. All obligations of the Company under the Plan with
respect to Awards granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the
business and/or assets of the Company. 

 19. Governing Law. This Plan and all determinations made and actions taken pursuant
hereto, to the extent not otherwise governed by mandatory provisions of the Code or the securities laws of the United States, shall be governed by and construed in accordance with the laws of the State of Texas. 

20. Section 409A of the Code. It is intended that any Awards under the Plan that are subject to Section 409A of the Code
satisfy the requirements of Section 409A of the Code and related regulations and Internal Revenue Service and Department of Treasury pronouncements to avoid imposition of applicable taxes thereunder. Thus, notwithstanding anything in this Plan
to the contrary, if any Plan provision or Award under the Plan would result in the imposition of an applicable tax under Section 409A of the Code and related regulations and Internal Revenue Service and Department of Treasury pronouncements,
that Plan provision or Award will be reformed to the extent permissible under Section 409A of the Code with the intent to avoid imposition of the applicable tax and no action taken to comply with Section 409A of the Code shall be deemed to
adversely affect the Participant’s rights to an Award. 
 21. Effectiveness; Term. The Plan as amended and restated herein was
adopted by the Board on February 17, 2017, subject to the approval of the Company’s stockholders at the 2017 annual meeting of the stockholders of the Company. If the stockholders of the Company should fail to so approve the Plan as
amended and restated herein at that time, this amendment and restatement of the Plan shall not be effective and the Company’s 2013 Omnibus Incentive Plan as amended and restated effective May 17, 2013 shall remain in effect. If the
stockholders of the Company approve the Plan as amended and restated herein, the term of the Plan shall be extended to the date that is the tenth anniversary of such approval; provided, however, that if the stockholders of the Company should fail to
so approve the Plan as amended and restated herein, the term of the Plan shall not be extended and no Awards shall be made after May 17, 2023, the tenth anniversary of the date stockholders previously approved the Plan.Exhibit 10.4

 

AMENDED AND RESTATED

EXECUTIVE EMPLOYMENT AGREEMENT

 

This Amended and Restated Executive Employment Agreement (this “Agreement”) is entered into as of the 1st day of March 2016 between Stephen J. Foley (the “Executive”) and PetroShare Corp., a Colorado corporation (the “Company”). The Executive and Company may be referred to in this Agreement as a “Party” or collectively as the “Parties.”

 

BACKGROUND

 

The Executive is currently employed by the Company as Chief Executive Officer;

 

The Company and the Executive previously entered into an employment agreement defining the terms and conditions of Executive’s employment with the Company, dated as of November 1, 2013 (“Original Agreement”);

 

The Original Agreement provided Executive with certain rights, responsibilities, and benefits;

 

The Parties believe that it is in their mutual best interest to make certain changes to the terms and conditions of Executive’s employment with the Company;

 

The Company desires to continue to receive the services of Executive, and Executive desires to provide services to the Company, in accordance with the terms, conditions and provisions of this Agreement; and

 

This Agreement sets forth all of the terms of Executive’s employment by the Company and amends and restates those terms in their entirety.

 

AGREEMENT

 

1.                                      Employment; Devotion to Duties.

 

(a)                                 General. The Company will employ Executive as its Chief Executive Officer reporting to its Board of Directors (the “Board”), and Executive accepts employment to serve in this capacity, all upon the terms and conditions in this Agreement. Executive will have those duties and responsibilities that are consistent with Executive’s position as Chief Executive Officer, as determined by the Board. The Company reserves the right, in its sole discretion, to change or modify Executive’s position, title and duties during the term of this Agreement, subject to Executive’s rights under Section 7(e).

 

(b)                                 Devotion to Duties. During the Term (defined in Section 2(b)), Executive (i) will faithfully, with diligence and to the best of his ability, experience and talents, devote all of his business time and efforts to the performance of his duties on the Company’s behalf, and (ii) will not at any time or place or to any extent whatsoever, without the express written consent of the Board, engage in any outside employment, or in any activity competitive with or adverse to the Company’s business, or affairs, whether alone or as partner, manager, member, officer, director, employee, or shareholder of any entity or as a trustee, fiduciary, consultant or other

 

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representative.  This is not intended to prohibit Executive from engaging in activities such as personal investments, a family business or charitable work, so long as those activities do not conflict with the Company and, in the case of positions on other boards of directors or similar bodies, receive the prior written approval of the Board. Participation to a reasonable extent in civic, social, community or charitable activities is encouraged. Notwithstanding anything herein to the contrary, any outside activities will be conducted in compliance with the Company’s corporate governance policies and other policies and procedures as in effect from time-to-time.

 

2.                                      Term.

 

(a)                                 Initial Term. Executive will continue employment with the Company under the terms of this Agreement starting on March 1, 2016 (the “Commencement Date”). Executive will be employed under this Agreement until December 31, 2018 (the “Initial Term”), unless the term is extended under Section 2(b), or Executive’s employment is terminated earlier pursuant to Section 7.

 

(b)                                 Renewal Term. Following the Initial Term, the term of this Agreement and the Executive’s employment shall renew automatically for successive one-year periods (each, a “Renewal Term”), unless at least 90 days before the end of the Initial Term or any Renewal Term, either party gives notice to the other party that this Employment Agreement will terminate at the end of the Initial Term or any Renewal Term (the Initial Term, together with any Renewal Terms, the “Term”). Notwithstanding the above, the Executive’s employment is subject to earlier termination under with Section 7. If the Company timely elects not to renew this Agreement at the end of the Initial Term or any Renewal Term, the Executive’s termination of employment will be characterized as a termination without Cause under Section 7(c).

 

3.                                      Location. The location of Executive’s principal place of employment will be at the Company’s principal executive offices in Centennial, Colorado;  provided, however, the Executive understands and agrees that he may be required to travel and perform services outside of this area as reasonably necessary to properly perform his duties under this Agreement. Travel away from Colorado may be necessary for, among other things, meetings and presentations with investors, potential investors, investment bankers and analysts.

 

4.                                      Base Salary. The Company will pay Executive an annual base salary (“Base Salary”) in the amount of $13,000.00 per month ($156,000 per year). The Base Salary will be paid in accordance with the Company’s payroll practices in effect from time-to-time. Executive’s Base Salary will be reviewed at least annually in accordance with the Company’s executive compensation review policies and practices and may be increased in accordance with such review, looking to the results of such review and the Company’s financial progress, among other things, as guides in making any adjustments. All payments to Executive under this Agreement will be subject to withholding as required by applicable law.

 

5.                                      Incentive Compensation.

 

(a)                                 Annual Bonus. Executive will be eligible to receive additional cash compensation in the form of bonuses based on criteria established by and in the sole discretion of the Board or one of its committees. Unless deferred pursuant to a plan that complies with Section

 

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409A of the Internal Revenue Code of 1986, as amended (“Code”), this bonus, if any, will be paid to the Executive no later than two and one-half months following the end of the relevant fiscal year in which the services were performed.

 

(b)                                 Equity Incentive. Executive will also be eligible to receive equity grants under the Company’s Equity Incentive Plan(s) in accordance with his position with the Company, as determined by the Board or a committee of the Board in its sole and absolute discretion.

 

(c)                                  Clawback. The compensation and benefits provided pursuant to this Agreement are subject to any compensation recoupment policy or policies adopted by the Company and related practices that may be adopted by the Company and in effect from time-to-time, designed to recover any amounts paid to the Executive based on inaccurate or incomplete financial information (each, a “Clawback Policy”). By signing this Agreement, Executive agrees to fully cooperate with the Company in assuring compliance with such policies and the provisions of applicable law, including, but not limited to, promptly returning any compensation subject to recovery by the Company pursuant to a Clawback Policy and applicable law.

 

6.                                      Executive Benefits.

 

(a)                                 Fringe Benefits; Paid Time Off. The Company will provide Executive with those fringe and other executive benefits on the same terms and conditions as are generally available to senior management from time-to-time (e.g., health and other insurance programs, etc.); provided, however, that the Company reserves the right to amend or terminate any employee or executive benefit plan or program at any time. Executive shall be entitled each year to one or more vacations and other paid time off (“PTO”) in an amount not to exceed 30 days, or otherwise in accordance with the Company’s PTO policies as in effect from time-to-time. Vacations and other PTO shall be scheduled so as to not unreasonably interfere with the business of the Company.

 

(b)                                 Reimbursement of Expenses. Executive is entitled to be reimbursed by the Company for reasonable business expenses incurred in performing his duties under the Company’s expense reimbursement policies as in effect from time-to-time or as otherwise approved by the Board.

 

7.                                      Termination of Employment During the Term of the Agreement. Upon, and as of, the date of the Executive’s termination of employment with the Company for any reason, the Executive will be deemed to have resigned from all positions he then holds as an officer or director of the Company. The Executive’s employment may be terminated during the Term of this Agreement pursuant to the following terms and conditions:

 

(a)                                 Disability.

 

(i)                                     Should the Executive be unable to engage in any significant activity required by the terms of this Agreement by reason of any medically-determinable physical or mental impairment that can be expected to result in death or to last for a continuous period of three months or more, Executive shall be deemed “disabled” and the Company shall be entitled to terminate his employment. The Board shall have the right to determine disability for

 

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the purposes of this provision, relying where necessary on the advice of qualified medical providers, and any such determination shall be evidenced by the Board’s written opinion delivered to the Executive and shall be final and binding on the Executive. Such written opinion shall specify with particularity the reasons supporting such opinion and shall be signed by at least a majority of the Board. The Executive’s employment will terminate on the first day following the determination that the Executive is disabled.

 

(ii)                                  Upon a determination that the Executive is disabled, the Company shall pay to the Executive (1) all earned but unpaid Base Salary through the date of termination, prorated for any partial period of employment, (2) any benefits to which Executive is entitled under any benefit plan maintained by the Company to the date of termination; (3) any accrued but unused vacation or PTO, and (4) any unreimbursed business expenses in accordance with the applicable policies of the Company (collectively, the “Accrued Obligations”). Upon payment of the Accrued Obligations, the Company’s obligations to Executive under this Agreement shall cease.

 

(b)                                 Company Terminates Executive’s Employment for Cause.

 

(i)                                     Definition. For purposes of this Agreement,  Cause means (1) the Executive’s failure to substantially perform his reasonably assigned duties (other than on account of disability); (2) any conviction of Executive of a felony or crime of moral turpitude; (3) the Executive engages in the use of alcohol or narcotics to the extent that the performance of his duties is materially impaired; (4) the Executive materially breaches the terms of this Agreement; (5) the Executive engages in willful misconduct that is materially injurious to the Company, other than business decisions made in good faith; (6) the Executive commits an act which constitutes in fact and/or law a breach of fiduciary duty; or (7) any act or omission not described above that constitutes material and willful misfeasance, malfeasance, or gross negligence in the performance of his duties to the Company.

 

(ii)                                  Effective Date of Termination. Executive’s employment will terminate immediately upon written notice by the Company to Executive stating that Executive’s employment is being terminated for Cause.

 

(iii)                               Compensation and Benefits. If the Company terminates the Executive’s employment for Cause, the Company will pay Executive the Accrued Obligations, following which the Company’s obligations to Executive shall cease.

 

(c)                                  Company Terminates Executive’s Employment Without Cause.

 

(i)                                     Effective Date of Termination. Executive’s employment will terminate on the 30th day after the Company gives written notice to Executive stating that Executive’s employment is being terminated without Cause. The Company may, at its discretion, place Executive on a paid administrative leave during all or any part of the notice period. During the administrative leave, the Company may bar Executive’s access to its offices or facilities or may provide Executive with access subject to such terms and conditions as the Company chooses to impose.

 

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(ii)                                  Compensation and Benefits. If the Company terminates Executive’s employment without Cause (subject to all of the terms and conditions of this Agreement, including without limitation Section 7(h)), the Company will pay or provide Executive the sum of:

 

(1)                                 the Accrued Obligations;

 

(2)                                 12 months of Executive’s then-current Base Salary, payable monthly in accordance with the Company’s then-current payroll practice (unless otherwise delayed under Section 7(h) below), unless such termination is within six months before or at any time following a Change in Control, in which case the payments described in this Section 7(c)(ii) shall be paid in full within 60 days of the date of termination. For purposes of this Section 7, “Change in Control” shall mean (A) a tender offer made and consummated for the ownership of 50% or more of the outstanding voting securities of the Company; (B) the sale of 50% or more of the outstanding voting securities of the Company in a single transaction or a series of transactions occurring during a period of not more than twelve months; (C) the Company is merged or consolidated with another corporation and as a result of such merger or consolidation less than 50% of the outstanding securities of the surviving or resulting corporation is owned in the aggregate by the shareholders of the Company that existed immediately prior the merger or consolidation; (D) the Company sells substantially all of its assets to another corporation that is not a wholly-owned subsidiary of the Company; or (E) as a result of or in connection with a contested election of directors, the persons who were directors of the Company before such election shall cease to constitute a majority of the Board.  Notwithstanding the foregoing, a Change in Control shall not include a public offering of the Company’s common stock or a transaction with its sole purpose to change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction; and

 

(3)                                 The continuation of all Company welfare benefits, including any medical, dental, vision, life and disability benefits pursuant to plans maintained by the Company under which the Executive and/or the Executive’s family were receiving benefits and/or coverage, for the 12-month period following the date of the Executive’s termination, with such benefits provided to the Executive at no less than the same coverage level as in effect as of the date of termination and the Executive shall pay any portion of such cost as was required to be borne by key executives of the Company generally on the date of termination; provided, however, that, the coverage for any plan subject to COBRA will discontinue if such coverage terminates under Section 4980B of the Code.

 

(iii)                               Release Agreement. The Company will not make any payment to Executive or furnish any benefit under this Section 7(c) unless Executive signs (and does not revoke) a legal release (“Release Agreement”), in the form and substance reasonably requested by the Company.  The Release Agreement will require Executive to release the Company, directors, officers, employees, agents and other affiliates with the Company from any and all claims, including claims relating to Executive’s employment with the Company and the termination of Executive’s employment.  The Release Agreement must be executed and returned to the Company within either the 21 or 45 day period described in the Release Agreement (if applicable) and it must not be revoked by Executive within the seven-day revocation period

 

5

 

described in the Release Agreement (if applicable).  Notwithstanding anything in this Agreement to the contrary, (1) the Company will provide the Release Agreement to the Executive in a timely manner to comply with the provisions under Code Section 409A, and (2) if the Company concludes, in the exercise of its discretion, that the payments due pursuant to this Agreement are subject to Section 409A of the Code, and if the consideration period, plus the revocation period described in the Release Agreement, spans two calendar years, the payments will be begin in the second calendar year.

 

(d)                                 Death.

 

(i)                                     Effective Date of Termination. Executive’s employment will terminate immediately upon the Executive’s death.

 

(ii)                                  Compensation and Benefits. Upon Executive’s death, the Company will pay to Executive’s surviving spouse, or if none, to Executive’s heirs or devisees the same compensation and benefits as if Executive was terminated by the Company without Cause as set forth in Section 7(c)(ii).

 

(e)                                  Executive Voluntarily Resigns With Good Reason.

 

(i)                                     Definition. For purposes of this Agreement,  Good Reason means (1) any material diminution or alteration of Executive’s position, authority or duties under this Agreement without Executive’s prior written consent; (2) removing Employee from his position as described in Section 1 without his prior written consent, except for a termination of employment for death, disability or termination by the Company with or without Cause; (3) a reduction of Executive’s Base Salary, or any other failure of the Company to comply with Sections 4, 5 or 6; or (4) any material breach of this Agreement by the Company. Notwithstanding the above provisions, a condition is not considered Good Reason unless (X) Executive gives the Company written notice of such condition within 30 days after the condition comes into existence;  (Y) the Company fails to cure the condition within 30 days after receiving Executive’s written notice; and (Z) Executive terminates his employment within 60 days after the expiration of the Company’s cure period if the termination is to be treated as for Good Reason based on the uncured Good Reason event.

 

(ii)                                  Effective Date of Termination. Executive’s employment will terminate on the earlier to occur as determined in the sole discretion of the Company (X) the date that Executive terminates his employment or (Y) the 60th day after the expiration of the Company’s cure period as specified in Section 7(e)(i).

 

(iii)                               Compensation and Benefits. If the Executive voluntarily resigns his employment for Good Reason, (subject to all of the terms and conditions of this Agreement, including without limitation Section 7(h)), Company will pay or provide Executive the same compensation and benefits as if the Executive was terminated by the Company without Cause as set forth in Section 7(c)(ii).

 

(iv)                              Release Agreement. The Company will not make any payment to Executive or furnish any benefit under this Section 7(e) unless Executive signs (and does not

 

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revoke) a Release Agreement pursuant to the same terms and conditions as set forth in Section 7(c)(iii).

 

(f)                                   Executive Voluntarily Resigns Without Good Reason.

 

(i)                                     Effective Date of Termination. Executive’s employment will terminate on the 30th day after Executive gives written notice to the Company stating that Executive is resigning his employment with the Company for any reason other than Good Reason, unless the Company waives in writing all or part of this notice period (in which case the termination of employment is effective as of the date of the waiver).

 

(ii)                                  Compensation and Benefits. If the Executive voluntarily resigns without Good Reason, the Company will pay Executive the Accrued Obligations.

 

(g)                                  Leave of Absence. At the Company’s sole discretion, Executive may be placed on a paid administrative leave of absence for a reasonable period of time (not to exceed 60 days unless otherwise reasonably required to resolve matters under investigation) should the Board believe it necessary for any reason, including, but not limited to confirm that reasonable grounds exist for a termination for Cause, for example, pending the outcome of any internal or other investigation or any criminal charges.  During this leave, the Company may bar Executive’s access to the Company’s or any affiliate’s offices or facilities or may provide Executive with access subject to terms and conditions as the Company chooses to impose.  The Company’s decision to place Executive on a paid leave of absence will not constitute grounds for Executive to terminate his employment for Good Reason and receive any severance payments or benefits pursuant to Section 7(e).

 

(h)                                 Compliance with Code Section 409A.

 

(i)                                     Capitalized terms in this Section 7(h) not otherwise defined in this Agreement shall have the meaning assigned to them in the Code and the rules and regulations promulgated thereunder.

 

(ii)                                  This Agreement is intended to comply with Section 409A of the Code and shall be construed and operated accordingly. The Company may amend this Agreement at any time to the extent necessary to comply with Section 409A. The Executive shall perform any act, or refrain from performing any act, as reasonably requested by the Company to comply with any correction procedure promulgated pursuant to Section 409A.

 

(iii)                               To the extent required to avoid the imposition of penalties or interest under Section 409A, any payment or benefit to be paid or provided on account of the Executive’s Separation from Service within the meaning of Section 409A if the Executive is a specified employee (within the meaning of Section 409A(a)(2)(B) of the Code) that would be paid or provided prior to the first day of the seventh month following the Executive’s Separation from Service shall be paid or provided on the first day of the seventh month following the Eligible Individual’s Separation from Service or, if earlier, the date of the Executive’s death. Further, if required to avoid imposition of penalties or interest under 409A, the amounts payable under this Agreement and subject to 409A(a)(2)(B)(i) may not be paid before the later of (1) 18 months following the date of this Agreement, or (2) six months following the payment event.

 

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(iv)                              Each payment to be made under this Agreement is a separately identifiable or designated amount for purposes of Section 409A.

 

(i)                                     Mitigation/Offset. The Executive is under no obligation to seek other Employment or to otherwise mitigate the obligations of the Company under this Agreement, and the Company may not offset against amounts or benefits due Executive under this Agreement or otherwise on account of any claim (other than any preexisting debts then due in accordance with their terms) the Company or its affiliates may have against him or any remuneration or other benefit earned or received by Executive after such termination.

 

8.                                      Other Obligations.

 

(a)                                 Ownership of Work, Materials and Documents. The Executive will disclose promptly to the Company any and all inventions, discoveries, and improvements (whether or not patentable or registrable under copyright or similar statutes), and all patentable or copyrightable works, initiated, conceived, discovered, reduced to practice, or made by him, either alone or in conjunction with others, during the Executive’s employment with the Company and related to the business or activities of the Company and its affiliates (the “Developments”). Except to the extent any rights in any Developments constitute a work made for hire under the U.S. Copyright Act, which the parties acknowledge are owned by the Company and/or its applicable affiliate, the Executive assigns all of his right, title and interest in all Developments (including all intellectual property rights) to the Company or its nominee without further compensation, including all rights or benefits, including, without limitation, the right to sue and recover for past and future infringement.  Whenever requested by the Company, the Executive will execute any and all applications, assignments or other instruments which the Company deems necessary to apply for and obtain trademarks, patents or copyrights of the United States or any foreign country or otherwise protect its interests. These obligations continue beyond the end of the Executive’s employment with the Company with respect to inventions, discoveries, improvements or copyrightable works initiated, conceived or made by the Executive while employed by the Company, and are binding upon the Executive’s employers, assigns, executors, administrators and other legal representatives. Immediately upon the Company’s request at any time during or following the Term, Executive is required to return to the Company any and all Confidential and Proprietary Information (as defined hereinafter) and any other property of the Company then within Executive’s possession, custody and/or control. Failure to return this property, whether during the term of this Agreement or after its termination, is a breach of this Agreement.

 

(b)                                 Confidential and Proprietary Information. During the course of Executive’s employment, Executive will be exposed to a substantial amount of confidential and proprietary information, including, but not limited to, financial information, annual reports, audited and unaudited financial reports, operational budgets and strategies, geologic and well data, methods of operation, customer lists, strategic plans, business plans, marketing plans and strategies, new business strategies, merger and acquisition strategies, management systems programs, computer systems, personnel and compensation information and payroll data, and other such reports, documents or information (collectively the “Confidential and Proprietary Information”).  Due to Executive’s senior position with the Company and its affiliates, Executive acknowledges that he regularly receives Confidential and Proprietary Information with respect to

 

8

 

the Company and/or its affiliates; for the avoidance of doubt, all such information is expressly included in Confidential and Proprietary Information. Executive promises that Executive will not retain, take with Executive or make any copies of such Confidential and Proprietary Information in any form, format, or manner whatsoever (including paper, digital or other storage in any form) nor will Executive disclose the same in whole or in part to any person or entity, in any manner either directly or indirectly, either while the Executive is employed by the Company or following termination of his employment for any reason. Excluded from this Agreement is information that (i) is or becomes publicly known through no violation of this Agreement; (ii) is lawfully received by the Executive from any third party without restriction on disclosure or use; (iii) is required to be disclosed by law; or (iv) is expressly approved in writing by the Company for release or other use by the Executive. Executive and the Company also acknowledge that because Executive is a senior executive he will have access to information (some of which is Confidential and Proprietary Information and some of which is not), employees and knowledge about the Company that is extremely valuable to the Company and which the Company needs to protect for a period of time after Executive terminates employment. Additionally, the Parties agree that the covenants in this Section 8 are reasonable and necessary to protect the Company’s legitimate business interests. Executive and the Company agree that the foregoing restrictive covenants are fair and reasonable and are freely, voluntarily and knowingly entered into. Further, each party has been given the opportunity to consult with legal counsel before entering into this Agreement.

 

(c)                                  Judicial Amendment. If the scope of any provision of this Section 8 of this Agreement is found by a court to be too broad to permit enforcement to its full extent, then that provision will be enforced to the maximum extent permitted by law. The parties agree that, if legally permissible, the scope of any provision of this Agreement may be modified by a judge in any proceeding to enforce this Section 8, so that the provision can be enforced to the maximum extent permitted by law. If any provision of this Agreement is found to be invalid or unenforceable for any reason, the parties agree that it will not affect the validity and enforceability of the remaining provisions of this Agreement.

 

(d)                                 Injunctive Relief, Damages and Forfeiture. Due to the nature of Executive’s position with the Company, and with full realization that a violation of this Section 8 may cause immediate and irreparable injury and damage, which is not readily measurable, and to protect the parties’ interests, the parties understand and agree that either party may also seek injunctive relief to enforce this Agreement in a court of competent jurisdiction to cease or prevent any actual or threatened violation of this Agreement.  In any action brought pursuant to this Section 8(d), the prevailing party will be entitled to an award of attorney’s fees and costs.

 

(e)                                  Survival. The provisions of this Section 8 survive the termination of this Agreement.

 

(f)                                   Cooperation; No Disparagement. So long as Executive is receiving any payments from the Company, Executive agrees to provide reasonable assistance to the Company (including assistance with litigation matters), upon the Company’s request, concerning the Executive’s previous employment responsibilities and functions with the Company. Company will reimburse Executive for his reasonable out-of-pocket expenses that Executive incurs in connection with such cooperative efforts. Additionally, at all times after the Executive’s

 

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employment with the Company has terminated, Company (defined for these purpose only as any Company press release and the Board, the CEO and the CEO’s direct reports, and no other employees) and Executive agree to refrain from making any disparaging or derogatory remarks, statements and/or publications regarding the other, its employees or its services.

 

9.                                      General Provisions.

 

(a)                                 Severability. If any provision of this Agreement is held to be illegal, invalid, or unenforceable under any applicable law, then, if legally permissible, such provision will be deemed to be modified to the extent necessary to render it legal, valid and enforceable, and if no modification will make the provision legal, valid and enforceable, then this Agreement will be construed as if not containing the provision held to be invalid, and the rights and obligations of the parties will be construed and enforced accordingly.

 

(b)                                 Assignment by Company. Nothing in this Agreement precludes the Company from consolidating or merging into or with, or transferring all or substantially all of its assets to, another corporation or entity that assumes this Agreement and all obligations and undertakings hereunder. Upon any consolidation, merger or transfer of assets and assumption, the term “Company” means any other corporation or entity, as appropriate, and this Agreement will continue in full force and effect.

 

(c)                                  Entire Agreement. This Agreement and any agreements concerning equity compensation or other benefits, embody the Parties’ complete agreement with respect to the subject matter in this Agreement and supersede any prior written or contemporaneous oral, understandings or agreements between the parties that may have related in any way to the subject matter in this Agreement, including but not limited to any offer letter provided to or signed by Executive. This Agreement may be amended only in writing executed by the Company and Executive.

 

(d)                                 Governing Law. Because the Company is a Colorado corporation, and because it is mutually agreed that it is in the best interests of the Company and all of its employees that a uniform body of law consistently interpreted be applied to the employment agreements to which the Company is a party, this Agreement will be deemed entered into by the Company and Executive in Colorado. The law of the State of Colorado will govern the interpretation and application of all of the provisions of this Agreement.

 

(e)                                  Notice. Any notice required or permitted under this Agreement must be in writing and will be deemed to have been given when delivered personally or by overnight courier service or three days after being sent by mail, postage prepaid, at the address indicated below or to such changed address as such person may subsequently give such notice of:

 

if to the Company:                                                                         PetroShare Corp.

7200 S. Alton Way, Suite B-220

Centennial, CO 80112

Attention:  Chairman

 

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if to Executive:                                                                                           Stephen J. Foley

9754 Sunset Hill Dr.

Lone Tree, CO 80124

 

(f)                                   Non-Waiver; Construction; Counterparts. The failure in any one or more instances of a party to insist upon performance of any of the terms, covenants or conditions of this Agreement, to exercise any right or privilege conferred in this Agreement, or the waiver by that party of any breach of any of the terms, covenants or conditions of this Agreement,  will not be construed as a subsequent waiver of any such terms, covenants, conditions, rights or privileges, but the waiver will continue and remain in full force and effect as if no such forbearance or waiver had occurred.  No waiver is effective unless it is in writing and signed by an authorized representative of the waiving party. This Agreement will be construed fairly as to both parties and not in favor of, or against, either party, regardless of which party prepared the Agreement. This Agreement may be executed in multiple counterparts, each of which will be deemed to be an original, and all such counterparts will constitute but one instrument.

 

(g)                                  Successors and Assigns. This Agreement is solely for the benefit of the parties and their respective successors, assigns, heirs and legatees. Nothing in this Agreement will be construed to provide any right to any other entity or individual.

 

(h)                                 Indemnification. The Company agrees to indemnify the Executive to the fullest extent provided under the Company’s Bylaws, on the same terms and conditions as indemnification is generally provided to the Company’s officers and directors, in the event that he was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, by reason of the fact that the Executive is or was a director, officer, employee or agent of the Company or any of its affiliates; provided, however, that the Executive is not entitled to indemnification under this Section 9(h) relating to any claims, actions, suits or proceedings arising from his breach of this Agreement.

 

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IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of March 1, 2016, to be effective on the date first above written.

 

	
 
    	
PETROSHARE CORP.,
   a Colorado corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Bill M. Conrad
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Bill   M. Conrad
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
Chairman   of the Board of Directors
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
EXECUTIVE
    
	
 
    	
 
    	
 
    
	
 
    	
/s/   Stephen J. Foley
    
	
 
    	
Stephen   J. Foley
    

 

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