Document:

EX-10.6

 Exhibit 10.6 

EXECUTION VERSION 
  

 
 TRANSITION SERVICES AGREEMENT

 dated as of March 24, 2015 

between 
 NABORS INDUSTRIES
LTD. 
 And 
 NABORS RED
LION LIMITED 
  
  

 TABLE OF CONTENTS 

 

									
	 	 	 	 	 	  	Page	 
		
	 ARTICLE I DEFINITIONS
	  	 	1	  
		 	 Section 1.01.
	 	 Certain Defined Terms
	  	 	1	  
		
	 ARTICLE II SERVICES, DURATION AND SERVICES MANAGERS
	  	 	4	  
		 	 Section 2.01.
	 	 Services
	  	 	4	  
		 	 Section 2.02.
	 	 Duration of Services
	  	 	4	  
		 	 Section 2.03.
	 	 Transition Services Managers
	  	 	5	  
		 	 Section 2.04.
	 	 Personnel
	  	 	5	  
		 	 Section 2.05.
	 	 Employee Benefits Transition
	  	 	6	  
		
	 ARTICLE III OTHER ARRANGEMENTS
	  	 	7	  
		 	 Section 3.01.
	 	 Third Party Licenses and Consents
	  	 	7	  
		 	 Section 3.02.
	 	 Third Party Providers
	  	 	7	  
		
	 ARTICLE IV ADDITIONAL AGREEMENTS
	  	 	7	  
		 	 Section 4.01.
	 	 Navy Computer-Based and Other Resources
	  	 	7	  
		 	 Section 4.02.
	 	 Co-location and Facilities Matters
	  	 	8	  
		 	 Section 4.03.
	 	 Access
	  	 	10	  
		 	 Section 4.04.
	 	 Cooperation
	  	 	10	  
		
	 ARTICLE V COSTS AND DISBURSEMENTS
	  	 	10	  
		 	 Section 5.01.
	 	 Costs and Disbursements
	  	 	10	  
		 	 Section 5.02.
	 	 Taxes
	  	 	11	  
		 	 Section 5.03.
	 	 No Right to Set-Off
	  	 	12	  
		 	 Section 5.04.
	 	 Allocation of Rebates
	  	 	12	  
		
	 ARTICLE VI STANDARD FOR SERVICE
	  	 	12	  
		 	 Section 6.01.
	 	 Standard for Service
	  	 	12	  
		 	 Section 6.02.
	 	 Disclaimer of Warranties
	  	 	14	  
		 	 Section 6.03.
	 	 Compliance with Laws and Regulations
	  	 	14	  
		
	 ARTICLE VII LIMITED LIABILITY AND INDEMNIFICATION
	  	 	14	  
		 	 Section 7.01.
	 	 Personal Injury
	  	 	14	  
		 	 Section 7.02.
	 	 Indirect and Other Damages
	  	 	14	  
		 	 Section 7.03.
	 	 Limitation of Liability
	  	 	15	  
		 	 Section 7.04.
	 	 Obligation To Re-perform; Liabilities
	  	 	15	  
		 	 Section 7.05.
	 	 Release and Recipient Indemnity
	  	 	15	  
		 	 Section 7.06.
	 	 Provider Indemnity
	  	 	15	  
		 	 Section 7.07.
	 	 Indemnification Procedures
	  	 	15	  
		 	 Section 7.08.
	 	 Liability for Payment Obligations
	  	 	16	  
		 	 Section 7.09.
	 	 Exclusion of Other Remedies
	  	 	16	  
		
	 ARTICLE VIII DISPUTE RESOLUTION
	  	 	16	  
		 	 Section 8.01.
	 	 Dispute Resolution
	  	 	16	  

  
 i 

									
	 ARTICLE IX TERM AND TERMINATION
		 	17	  
			 Section 9.01.
		 Term and Termination
		 	17	  
			 Section 9.02.
		 Effect of Termination
		 	18	  
			 Section 9.03.
		 Force Majeure
		 	18	  
		
	 ARTICLE X GENERAL PROVISIONS
		 	18	  
			 Section 10.01.
		 No Agency
		 	18	  
			 Section 10.02.
		 Subcontractors
		 	19	  
			 Section 10.03.
		 Treatment of Confidential Information
		 	19	  
			 Section 10.04.
		 Further Assurances
		 	20	  
			 Section 10.05.
		 Notices
		 	20	  
			 Section 10.06.
		 Severability
		 	21	  
			 Section 10.07.
		 Entire Agreement
		 	21	  
			 Section 10.08.
		 No Third-Party Beneficiaries
		 	21	  
			 Section 10.09.
		 Governing Law
		 	21	  
			 Section 10.10.
		 Amendment
		 	22	  
			 Section 10.11.
		 Rules of Construction
		 	22	  
			 Section 10.12.
		 Counterparts
		 	22	  
			 Section 10.13.
		 Assignability
		 	22	  
			 Section 10.14.
		 Waiver of Jury Trial
		 	23	  
			 Section 10.15.
		 Non-Recourse
		 	23	  

  

			
	EXHIBIT I		Services Managers
		
	SCHEDULE A		Services
	SCHEDULE B		Facilities
	SCHEDULE C		Benefits Transition
	SCHEDULE D		Navy IT Security Policy

  
 ii 

 This Transition Services Agreement, dated as of March 24, 2015 (this
“Agreement”), is made by and between Nabors Industries Ltd., a Bermuda exempted company (“Navy”) and Nabors Red Lion Limited, a Bermuda exempted company and currently a wholly owned Subsidiary of Navy (“Red
Lion”). 
 RECITALS 

WHEREAS, Navy and Red Lion have entered into a Separation Agreement, dated as of June 25, 2014 (as amended, modified or supplemented from
time to time in accordance with its terms, the “Separation Agreement”), pursuant to which Navy will transfer to Red Lion, and Red Lion has agreed to receive and assume, certain assets and liabilities of the Red Lion Business (the
“Separation”). 
 WHEREAS, Navy, Red Lion, and C&J Energy Services, Inc. a Delaware corporation
(“Penny”) have entered into a Merger Agreement, dated as of June 25, 2014 (as amended, modified or supplemented from time to time in accordance with its terms, the “Merger Agreement”), pursuant to which,
following the Separation, Penny will merge with a subsidiary of Red Lion and the common stock of Penny will be converted into common shares of Red Lion. 

WHEREAS, pursuant to the Separation Agreement and the Merger Agreement, the Parties (as defined below) have agreed that Navy shall provide or
cause to be provided to Red Lion and/or other members of the Red Lion Group certain services, the use of facilities and other assistance on a transitional basis and in accordance with the terms and subject to the conditions set forth in this
Agreement. 
 WHEREAS, the Separation Agreement and the Merger Agreement require execution and delivery of this Agreement by Navy and Red
Lion on or prior to the Separation Date. 
 NOW, THEREFORE, in consideration of the foregoing and the mutual agreements contained in this
Agreement, and intending to be legally bound, the Parties hereby agree as follows: 
 ARTICLE I 

DEFINITIONS 

Section 1.01. Certain Defined Terms. (a) Unless otherwise defined in this Agreement, all capitalized terms used in this
Agreement shall have the same meaning as in the Separation Agreement. 
 (b) The following capitalized terms used in this Agreement shall
have the meanings set forth below: 
 “Additional Service” shall have the meaning set forth in Section 2.01(c).

 “Ancillary Agreement” shall have the meaning set forth in the Separation Agreement. 

  
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 “Agreement” shall have the meaning set forth in the Preamble. 

“Benefits Transition” shall have the meaning set forth in Section 2.05. 

“Confidential Information” shall have the meaning set forth in Section 10.03(a). 

“Continuing Employees” shall have the meaning set forth in the Employee Benefits Agreement. 

“Dispute” shall have the meaning set forth in Section 8.01(a). 

“Facilities” shall have the meaning set forth in Section 4.02(a). 

“Force Majeure” means, with respect to a Party, an event beyond the control of such Party (or any Person acting on its
behalf), which by its nature could not have been reasonably foreseen by such Party (or such Person), or, if it could have been reasonably foreseen, was unavoidable, and includes acts of God, storms, floods, riots, fires, sabotage, civil commotion or
civil unrest, interference by civil or military authorities, acts of war (declared or undeclared) or armed hostilities or other national or international calamity or one or more acts of terrorism, failure of energy sources or facilities, strike,
walkout, lockout or other labor trouble or shortage, delays by unaffiliated suppliers or carriers. 
 “Interest Payment”
shall have the meaning set forth in Section 5.01(b). 
 “Navy” shall have the meaning set forth in the
Preamble. 
 “Navy Employee” shall have the meaning set forth in Section 2.01(b). 

“Navy Employee Benefit Plan” shall have the meaning set forth in the Employee Benefits Agreement. 

“Navy Group” shall have the meaning set forth in the Separation Agreement. 

“Navy Services Manager” shall have the meaning set forth in Section 2.03(a). 

“Party” means Navy and Red Lion individually, and “Parties” means Navy and Red Lion collectively, and, in
each case, their permitted successors and assigns. 
 “Project Services Agreement” shall mean that certain Project Services
Agreement, dated as of February 17, 2015 (as amended, modified or supplemented from time to time in accordance with its terms) between Nabors Corporate Services, Inc. and Penny. 

“Provider” means Navy or its Subsidiary or Affiliate (as determined at the time any Service is provided) providing a Service
under this Agreement. 
 “Provider Indemnified Party” shall have the meaning set forth in Section 7.05. 

“Recipient” means Red Lion or its Subsidiary or Affiliate (as determined at the time such Service is provided) to whom a
Service under this Agreement is being provided. 

  
 2 

 “Recipient Indemnified Party” shall have the meaning set forth in
Section 7.06. 
 “Red Lion” shall have the meaning set forth in the Preamble. 

“Red Lion Business” shall have the meaning set forth in the Separation Agreement. 

“Red Lion Entities” shall have the meaning set forth in the Separation Agreement. 

“Red Lion Group” shall have the meaning set forth in the Separation Agreement. 

“Red Lion Services Manager” shall have the meaning set forth in Section 2.03(b). 

“Representative” of a Person means any director, officer, employee, agent, consultant, accountant, auditor, attorney or other
representative of such person. 
 “Schedule(s)” shall have the meaning set forth in Section 2.02. 

“Separation Agreement” shall have the meaning set forth in the Recitals. 

“Separation Date” shall have the meaning shall have the meaning set forth in the Separation Agreement. 

“Service Charges” shall have the meaning set forth in Section 5.01(a). 

“Service Taxes” shall have the meaning set forth in Section 5.02(a). 

“Services” shall have the meaning set forth in Section 2.01. 

“Subsidiary” of any Person shall mean another Person (other than a natural Person), an aggregate amount of the voting
securities, other voting ownership or voting partnership interests of which is sufficient to elect at least a majority of the Board of Directors or other governing body (or, if there are no such voting interests, 50% or more of the equity interests
of which) is owned directly or indirectly by such first Person. 
 “Termination Charges” shall mean, with respect to the
early termination of any Service, (a) with respect to labor costs and other costs that are incurred by the Provider on a monthly basis with respect to such Service, an amount equal to any and all Services Charges payable by the Recipient in
connection with such Service for the remainder of the month in which such Service is terminated; and (b) with respect to prepaid license fees, prepaid leases, other prepaid costs, and fees that the Provider has not yet paid but is obligated to
pay with respect to any reasonable period after the termination of the applicable Service, in each case to the extent such amounts are incurred in connection with the provision of the terminated Services, all such prepaid and committed fees for all
periods prepaid or committed; provided, that the Provider shall use its commercially reasonable efforts to reduce any costs, fees or expenses (and to recover prepaid fees) incurred by the Provider or payable to any unaffiliated third-party
provider in connection with the provision of such Service and credit any such reductions against the Termination Charges payable by the Recipient (for the avoidance of doubt, no Termination Charges shall be payable by a Recipient with respect to the
early termination of a Service in accordance with Section 9.01(b)). 

  
 3 

 ARTICLE II 

SERVICES, DURATION AND SERVICES MANAGERS 

Section 2.01. Services. 

(a) Subject to the terms and conditions of this Agreement, Navy shall provide (or cause to be provided) to the Red Lion Entities (i) the
services (including the employee benefits transition described in Section 2.05 and listed on Schedule C to this Agreement) listed on Schedule A to this Agreement and (ii) access to facilities listed on
Schedule B to this Agreement ((i) and (ii) collectively, the “Services”). All Services shall be solely for the use and benefit of Red Lion and its Subsidiaries in conducting the Red Lion Business. 

(b) At all times during the performance of the Services, all Persons performing such Services (including agents, temporary employees,
independent third parties, and consultants), who are collectively referred to herein as the “Navy Employees”, shall be construed as being independent from the Red Lion Group and no Navy Employee shall be considered or deemed to be
an employee of any member of the Red Lion Group nor entitled to any employee benefits from any member of the Red Lion Group as a result of this Agreement. For the avoidance of doubt, Navy acknowledges and agrees that throughout the period that
a Navy Employee is providing Services hereunder, Navy is solely responsible for the payment of wages, providing of benefits and satisfaction of all employment-related obligations (including without limitation all obligations with respect to employee
leave, immigration, recordkeeping, employment-related taxes and compliance with all labor and employment laws). Red Lion acknowledges and agrees that, except as may be expressly set forth herein as a Service (including such agreed Additional
Services to be provided pursuant to Section 2.01(c) below) or otherwise expressly set forth in the Separation Agreement, or other binding definitive agreement, Navy shall not be obligated to provide, or cause to be provided,
any service or goods to any member of the Red Lion Group. 
 (c) If, within one hundred and eighty (180) days after the Separation
Date, the Parties determine that a service provided by Navy to any member of the Red Lion Group prior to the date hereof was omitted from the Schedules to this Agreement (each, an “Additional Service”), then the Parties shall
negotiate in good faith to agree to the terms and conditions upon which such services would be added to this Agreement, it being agreed that the charges for such services should be determined on a basis consistent with the methodology for
determining the initial prices provided for in Section 5.01. 
 Section 2.02. Duration of Services. Subject to the
terms of this Agreement, Provider shall provide (or cause to be provided) to the Recipients each Service until the earlier to occur of, with respect to each such Service, (i) the expiration of the period of the maximum duration for such Service
as set forth on Schedule A or Schedule B (each a “Schedule”, and collectively, the “Schedules”) or (ii) the date on which such Service is terminated under Section 9.01(b);
provided, however, that each Recipient shall use its commercially reasonable efforts in 

  
 4 

 
good faith to transition itself to a stand-alone entity with respect to each Service during the period for such Service as set forth in the relevant Schedules; and provided,
further, that in the event that the expiration of the period of the maximum duration is not set forth in Schedule A or Schedule B and such Services are not earlier terminated under Section 9.01(b), the Parties’
obligations with respect to the provision of any such Services and payment for any such Services shall terminate on December 31, 2015. 

Section 2.03. Transition Services Managers. (a) Navy hereby appoints and designates the individual holding the Navy position
set forth on Exhibit I to act as its initial services manager (the “Navy Services Manager”), who will be directly responsible for coordinating and managing the delivery of the Services and have authority to act on
Navy’s behalf with respect to matters relating to this Agreement. The Navy Services Manager will work with the personnel of the Navy Group to periodically address issues and matters raised by Red Lion relating to this Agreement. Notwithstanding
the requirements of Section 10.05, all communications from Red Lion to Navy pursuant to this Agreement regarding routine matters involving the Services set forth on the Schedules shall be made through the Navy Services Manager, or such
other individual as specified by the Navy Services Manager in writing and delivered to Red Lion by email or facsimile transmission with receipt confirmed. In the event the Navy Services Manager is unavailable or intends to be unavailable, the Navy
Services Manager shall promptly specify another individual to serve as the Navy Services Manager in the interim. Navy shall notify Red Lion of the appointment of a different Navy Services Manager, if necessary, in accordance with
Section 10.05. 
 (b) Red Lion hereby appoints and designates the individual holding the Red Lion position set forth on
Exhibit I to act as its initial services manager (the “Red Lion Services Manager”), who will be directly responsible for coordinating and managing the receipt of the Services and have authority to act on Red Lion’s
behalf with respect to matters relating to this Agreement. The Red Lion Services Manager will work with the personnel of Red Lion Entities to periodically address issues and matters raised by Navy relating to this Agreement. Notwithstanding the
requirements of Section 10.05, all communications from Navy to Red Lion pursuant to this Agreement regarding routine matters involving the Services set forth on the Schedules shall be made through the Red Lion Services Manager or such
other individual as specified by the Red Lion Services Manager in writing and delivered to Navy by email or facsimile transmission with receipt confirmed. In the event the Red Lion Services Manager is unavailable or intends to be unavailable, the
Red Lion Manager shall promptly specify another individual to serve as the Red Lion Services Manager in the interim. Red Lion shall notify Navy of the appointment of a different Red Lion Services Manager, if necessary, in accordance with
Section 10.05. 
 Section 2.04. Personnel. (a) The Provider will have the right, in its reasonable discretion,
to (i) designate which personnel it will assign to perform any Service, and (ii) remove and replace such personnel at any time, so long as there is no resulting increase in costs or decrease in the level of service for the Recipient;
provided, however, that each Navy Employee shall hold any required licenses and certifications necessary, and shall be fully qualified, to perform the applicable Service and the Provider will use commercially reasonable, good faith
efforts to limit the disruption to the Recipient in the transition of the Services to different personnel. For the avoidance of doubt, no Recipient or other member of the Red Lion Group shall have the authority to terminate any Navy Employee’s
employment with Navy or any other third party. 

  
 5 

 (b) In the event that the provision of any Service by the Provider requires, as set forth in the
Schedules, the cooperation and services of the applicable personnel of the Recipient, the Recipient will make available such personnel as may be reasonably necessary to enable the Provider to provide such Service. The Recipient will have the right,
in its reasonable discretion, to (i) designate which personnel it will make available to the Provider in connection with the foregoing sentence, and (ii) remove and replace such personnel at any time, in each case so long as there is no
resulting increase in costs to, or any materially adverse effect to the provision of such Service by, the Provider; provided, however, that the Recipient will use its commercially reasonable efforts to limit the disruption to the
Provider in the transition of such personnel. All personnel of the Recipient made available pursuant to this Section 2.04(b) shall be instructed to comply with the applicable policies and guidelines of the Provider while on Provider
premises, including any policies and guidelines relating to enterprise information technology (EIT). 
 Section 2.05. Employee
Benefits Transition. Except as otherwise provided in Section 2.4(b) of the Employee Benefits Agreement, from the Separation Time through the last day of the quarter following the quarter in which the Closing Date occurs, Navy shall permit
the Continuing Employees to continue to participate in the Navy Employee Benefits Plans listed on Schedule C at the same level of benefits and subject to the same terms and conditions that were applicable to such Continuing Employees
immediately prior to the Separation Time (the “Benefits Transition”). Notwithstanding anything to the contrary in Section 5.01, the Parties agree that, as payment for the Benefits Transition, Red Lion shall pay Navy
(a) the aggregate amount of all premiums (which, for the avoidance of doubt, includes both employer and employee premiums), at the rate(s) in effect as of the Separation Time, that are attributable to the Continuing Employees in connection with
the insurance coverage and benefits provided under the Benefits Transition for the period from the Separation Time through termination of such Benefits Transition and (b) a separate amount equal to the incremental administrative cost of
maintaining such insurance coverage and benefits (including applicable hardware and software maintenance and support charges) provided under the Benefits Transition for such period for the benefit of the Continuing Employees to the extent the
premiums paid pursuant to (a) do not already include such incremental administrative cost. Penny and Red Lion shall each jointly and severally indemnify and hold Navy and its Subsidiaries, other than the Red Lion Entities, harmless for any
(i) liability arising solely from the Continuing Employees’ continued participation in any Navy Employee Benefit Plan listed on Schedule C hereto after the Separation Time and (ii) claim or liability arising in connection with
the treatment of any such Navy Employee Benefit Plan as a multiple employer welfare arrangement as a result of any Continuing Employee’s participation in any such Navy Employee Benefit Plan, whether upon or following the participation of a
Continuing Employee; provided, however, that Navy and its Subsidiaries shall take commercially reasonable efforts to cooperate with Penny and Red Lion in defending against any claims for any such liability. 

  
 6 

 ARTICLE III 

OTHER ARRANGEMENTS 

Section 3.01. Third Party Licenses and Consents. The Parties shall use commercially reasonable efforts to obtain, and to keep and
maintain in effect, all governmental or third party licenses and consents required for the provision of any Service by a Provider in accordance with the terms of this Agreement; provided, that if a Provider is unable to obtain or maintain any
such license or consent, such Provider shall promptly notify the Recipient in writing and shall, and shall cause its Affiliates to, use commercially reasonable efforts to implement an appropriate alternative arrangement. To the extent such failure
to obtain or maintain any such license or consent is not due to Provider’s own negligence or other failure to satisfy Provider’s obligations hereunder, the reasonable costs relating to obtaining any such licenses or consents, to the extent
attributable to the Services, shall be borne by the Recipient; provided, that the Provider shall not incur any such costs without the prior written consent of the Recipient. If any such license, consent or permissible alternative arrangement
is not reasonably available despite the commercially reasonable efforts of the Provider and its Affiliates, such Provider shall not be required to provide the affected Services, and in the event the Provider ceases providing such Services, the
Recipient shall have no obligation to pay any Service Charges or Termination Charges in respect of periods after the date the Provider ceases providing such Service. A Provider shall not, without the Recipient’s prior written consent, enter
into any contract or agreement, or modify the terms of any existing contract or agreement, if as a result: (a) the provision of any Service would violate the terms of such contract or agreement; (b) costs payable or potentially payable by
Recipient would increase; (c) or such Provider could otherwise become unable to provide any Service. 
 Section 3.02. Third
Party Providers. If a Provider receives written notice from any third party service provider that such Person intends to terminate a service pursuant to which such Provider provides, or causes to be provided, a Service to the Recipient, then
such Provider shall provide a copy of such written notice to the Recipient and shall use commercially reasonable efforts to secure the continued provision of that service from such third party or an alternative service provider. In any such event,
Recipient shall have no obligation to pay any Service Charge or Termination Charge or otherwise pay any third party costs or expenses relating to such terminated Services in respect of periods after the date of the termination of such Service that
has not been continued or for which alternative arrangements have been made. 
 ARTICLE IV 

ADDITIONAL AGREEMENTS 

Section 4.01. Navy Computer-Based and Other Resources. (a) As of the date of this Agreement, except as otherwise expressly
provided in the Schedules to this Agreement or the Separation Agreement, or as otherwise agreed to by the parties in the Merger Agreement, in any other Ancillary Agreement, or in the Project Services Agreement, or as otherwise agreed to by the
parties, or unless required in connection with the performance of or delivery of a Service, Red Lion and its Affiliates shall cease to use and shall have no further access to, and Navy shall have no obligation to otherwise provide, the Navy intranet
and other owned or licensed computer software, networks, hardware or technology of Navy or its Affiliates and shall have no access to, and Navy shall have no obligation to otherwise provide, computer-based resources (including e-mail and access to
Navy’s or its Affiliates’ computer networks and databases) that require a password or are available on a secured access basis only. From and after the date of this 

  
 7 

 
Agreement, Red Lion and its Affiliates shall cause all of their personnel having access to the Navy intranet or such other Navy computer software (including source code and object code versions
of any applications programs, operating system software, computer software languages, utilities, tools and other computer programs of Navy, in whatever form or media (including the tangible media upon which such are recorded or printed), together
with all corrections, improvements, updates and releases thereof), networks, hardware, technology or computer based resources pursuant to the Separation Agreement, any Transaction Document or in connection with performance, receipt or delivery of a
Service to comply with all security guidelines (including physical security, network access, internet security, confidentiality and personal data security guidelines) of Navy and its Affiliates to the extent (i) set forth in
Schedule D and (ii) Navy provides Red Lion a copy or summary of the applicable guideline. Red Lion shall ensure that the access contemplated by this Section 4.01 shall be used by such Red Lion personnel, employees,
agents or contractors only for the purposes of performing, receiving and/or delivering the Services or as otherwise contemplated by, and subject to the terms of, this Agreement. For the avoidance of doubt, except as provided in the Project Services
Agreement with regards to the Clone and MFT, as those terms are defined therein, Red Lion shall ensure that Navy computer software (including source code and object code versions of any applications programs, operating system software, computer
software languages, utilities, tools and other computer programs of Navy, in whatever form or media (including the tangible media upon which such are recorded or printed), together with all corrections, improvements, updates and releases thereof) to
which Red Lion has access (x) shall be used solely in connection with Red Lion’s performance, receipt or delivery of the Services hereunder (and shall not be used by or on behalf of Red Lion for any purpose whatsoever following the
termination or expiration of this Agreement, except to the extent otherwise agreed in writing by Navy in its sole discretion), (y) shall not be modified by or on behalf of Red Lion, and (z) shall not be modified, copied, emulated or
otherwise utilized in connection with any other activity, including not being used by or on behalf of Red Lion to create software applications of equivalent or similar functionality as that of Navy software. 

(b) Except as expressly provided in this Agreement, the Separation Agreement, the Merger Agreement or any other Ancillary Agreement, or unless
required in connection with the performance or delivery of any Services, each of the Parties and its Affiliates shall cease using (and shall cause their employees to cease using) the services made available by the other Party and its Affiliates
prior to the date of this Agreement. 
 Section 4.02. Co-location and Facilities Matters. (a) Navy hereby grants to Red
Lion and its Affiliates a limited license to use and access space at certain facilities and to continue to use certain equipment located at such facilities (including use of office security and badge services), in each case as listed in
Schedule B (the “Facilities”), for substantially the same purposes and in substantially the same manner used immediately prior to the date of this Agreement. For the avoidance of doubt, at each of the Facilities, Navy
shall, in addition to providing access and the right to use such facilities, shall provide to the personnel of Red Lion and its Affiliates substantially all ancillary services that are provided as of the date of this Agreement to its own personnel
at such facility, such as, by way of example and not limitation: reception, general maintenance (subject to the immediately following sentence), janitorial, security (subject to the immediately following sentence) and telephone services; access to
duplication, facsimile, printing and other similar office services; and use of cafeteria, break 

  
 8 

 
room, restroom and other similar facilities. Unless otherwise provided in the Schedules, such ancillary services shall include (A) in the case of security, those services provided in
connection with shared areas of a Facility, it being understood that the Provider shall not provide security services to Recipient-specific areas of Provider’s facility under the control of Recipient (to the extent that it is reasonably
practicable for Recipient to provide such services with respect to any such Recipient-specific area) or security passes that permit entrance to Provider-specific areas of Provider’s facility, except to
the extent necessary for Recipient’s personnel to access Recipient-specific areas or common areas of the facility, and (B) in the case of maintenance services, those services historically provided that are general in nature and within the
scope of customary maintenance of ordinary wear and tear. 
 (b) Red Lion shall only permit its authorized Representatives, contractors,
invitees or licensees to use the Facilities, except as otherwise permitted by Navy in writing. Red Lion shall, and shall cause its respective Subsidiaries, Representatives, contractors, invitees or licensees to, vacate Navy’s Facilities at or
prior to the expiration date relating to each Facility set forth in Schedule B and shall deliver over to Navy or its Subsidiaries, as applicable, the Facilities in substantially the same repair and condition at that date as on the date
of this Agreement, ordinary wear and tear and any condition caused by Navy or its Subsidiaries excepted; provided, however, that in the event that the third-party lease for a Facility specifies otherwise, Red Lion shall deliver over
such Facility in such repair and condition (taking into account the date that the Party began its occupation of such Facility) as set forth in the third-party lease. In addition to the access rights provided under Section 4.03, Navy or
its Subsidiaries, or the landlord in respect of any third-party lease, shall have reasonable access to their respective Facilities from time to time as reasonably necessary for the security and maintenance thereof in accordance with past practice,
the terms of this Agreement and the terms of any third-party lease agreement, if applicable. Red Lion agrees to maintain commercially appropriate and customary levels (in no event less than what is required by the landlord under the applicable lease
agreement) of property and liability insurance in respect of the Facilities the Recipients occupy and the activities conducted thereon and to be responsible for, and to indemnify and hold harmless Navy and other parties in accordance with
Article VII in respect of, the acts and omissions of the Recipients’ Representatives, contractors, invitees and licensees. Red Lion shall, and shall cause its Subsidiaries, Representatives, contractors, invitees and licensees to,
comply in all material respects with (i) all Laws applicable to their use or occupation of any Facility including those relating to environmental and workplace safety matters, (ii) Navy’s applicable site rules, regulations, policies
and procedures, and (iii) any applicable requirements of any third-party lease governing any Facility. Navy shall, and shall cause its Subsidiaries, Representatives, contractors, invitees and licensees to, comply in all material respects with
(i) all Laws applicable to their use or occupation of any Facility including those relating to environmental and workplace safety matters, (ii) Navy’s applicable site rules, regulations, policies and procedures, and (iii) any
applicable requirements of any third-party lease governing any Facility. Red Lion shall not make, and shall cause its Subsidiaries, Representatives, contractors, invitees and licensees to refrain from making, any material alterations or improvements
to the Facilities except with the prior written approval of the other Navy or its Subsidiaries, as applicable, which consent Navy may withhold in its sole discretion. Navy shall provide heating, cooling, electricity and other utility services for
the Facilities substantially consistent with levels provided prior to the date of this Agreement. The rights granted pursuant to this Section 4.02 shall be in the nature of a license and shall not create a leasehold or other estate or
possessory rights in Red Lion, or its Subsidiaries, Representatives, contractors, invitees or licensees, with respect to the Facilities. 

  
 9 

 Section 4.03. Access. (a) Red Lion shall, and shall cause its Subsidiaries to,
allow Navy and its Representatives reasonable access during normal business hours to the Facilities (and portions thereof) occupied by Red Lion necessary for Navy to fulfill its obligations under this Agreement provided, however, that
Navy and each Provider will use its commercially reasonable, good faith efforts to limit the disruption to the Recipient in the fulfillment of its obligations under this Agreement. 

(b) Notwithstanding the other rights of access of the Parties under this Agreement, Navy shall, and shall cause its Subsidiaries to, afford
Red Lion, its Subsidiaries and Representatives, following not less than five (5) business days’ prior written notice from Red Lion, reasonable access during normal business hours to the facilities, information, systems, infrastructure, and
personnel of the Providers as reasonably necessary for Red Lion to verify the adequacy of internal controls over information technology, reporting of financial data and related processes employed in connection with the Services, including in
connection with verifying compliance with Section 404 of the Sarbanes-Oxley Act of 2002; provided, however, such access shall not unreasonably disrupt any of the business or operations
of Navy or its Subsidiaries. 
 Section 4.04. Cooperation. It is understood that it will require the significant efforts of both
Parties to implement this Agreement and to ensure performance of this Agreement by the Parties at the agreed upon levels in accordance with all of the terms and conditions of this Agreement. The Parties will cooperate, acting in good faith and using
commercially reasonable efforts, to effect a smooth and orderly provision and transition of the Services provided under this Agreement from the Provider to the Recipient (including repairs & maintenance Services and the assignment or
transfer of the rights and obligations under any third-party contracts relating to the Services); provided, however, that this Section 4.04 shall not require either Party to incur any material out-of-pocket costs or
expenses unless and except as expressly provided in this Agreement or otherwise agreed to in writing by the Parties. 
 ARTICLE V 

COSTS AND DISBURSEMENTS 

Section 5.01. Costs and Disbursements. (a) Except as otherwise provided in this Agreement or in the Schedules to this
Agreement, a Recipient of Services shall pay to the Provider of such Services an agreed upon monthly fee for the Services based on Provider’s cost of providing such Services (or category of Services, as applicable), including such
Provider’s customary allocation of overhead expenses and leveraged assets, services and resources (including applicable hardware and software maintenance and support charges), but excluding any out-of-pocket costs and expenses payable to third
party service providers or sellers of hardware and software (each such fee constituting a “Service Charge” and, collectively, “Service Charges”). During the term of this Agreement, the amount of a Service Charge for
any Services (or category of Services, as applicable) shall not increase, except to the extent (i) appropriate to reflect an increase in the volume of Services received or requested by any Recipient, or (ii) as

  
 10 

 
otherwise mutually agreed to by the Parties. The relevant Schedule shall be updated to reflect such increase in Service Charges. All charges based on a monthly or other time basis will be
pro-rated based on actual days elapsed during the period of service. In addition to the Service Charges, the Recipient shall reimburse the Provider for any out-of-pocket costs and expenses payable to any third party service providers that are
providing Services or any acquisitions of hardware and software. 
 (b) The Provider shall deliver an invoice to the Recipient for all
Service Charges (and any taxes due and owing in accordance with Section 5.02), plus any out-of-pocket costs and expenses payable (i) to any third party service providers that are providing Services and (ii) to sellers of
any acquired hardware and software, on a monthly basis beginning on the second (2nd) month following the Closing Date, in arrears for the Service Charges and any out-of-pocket costs and expenses due to the Provider under this Agreement. The
Recipient shall pay the undisputed amount of each such invoice by wire transfer to the Provider within fifteen (15) days of the receipt of each such invoice. If the Recipient fails to pay such amount by such date, the Recipient shall be
obligated to pay to the Provider, in addition to the amount due, interest at an annual interest rate of five percent (5%) (the “Interest Payment”), accruing from the date the payment was due through the date of actual payment.
The Provider shall provide the Recipient with data and documentation (including copies of all applicable third-party invoices) reasonably satisfactory to the Recipient (i) supporting the calculation of any Service Charges that are increased
pursuant to Section 5.01(a); (ii) supporting any Service Charges that are variable from month to month (including as a result of any increase or reduction in Services or otherwise) or (iii) supporting any out-of-pocket costs and
expenses payable to any third party service providers that provided Services and any sellers of hardware and software for the purpose of verifying the accuracy of such calculation. 

(c) Subject to the confidentiality provisions set forth in Section 10.03, Navy shall, and shall cause its Affiliates to, provide,
upon ten (10) days’ prior written notice from Red Lion, any information within its or its Affiliates’ possession that Red Lion reasonably requests in connection with any Services being provided (either by Navy or any of its Affiliates
or an unaffiliated third-party provider), including any applicable invoices, agreements documenting the arrangements between Affiliate or third-party provider and the Provider and other supporting documentation. 

Section 5.02. Taxes. (a) Without limiting any provisions of this Agreement, the Recipient shall bear any and all sales, use,
transaction, services, gross receipts (to the extent imposed in lieu of sales or transfer taxes) and transfer taxes and other similar charges (and any related interest and penalties) imposed on, or payable with respect to, Services and any fees or
charges, including any Service Charges, payable by it pursuant to this Agreement (any such taxes or amounts “Service Taxes”). 

(b) Notwithstanding anything to the contrary in Section 5.02(a) or elsewhere in this Agreement, the Recipient shall be entitled to
withhold from any payments to the Provider any such taxes that Recipient is required by law to withhold and shall pay over such taxes to the applicable taxing authority. If the Recipient withholds any amounts respecting Service Taxes, the sum
payable by the Recipient to the Provider shall be increased as necessary so that after such withholding has been made (including such withholdings applicable to the additional amounts payable under this Section), the Provider receives an amount
equal to the sum it would have received had no such withholding been made. 

  
 11 

 Section 5.03. No Right to Set-Off. The Recipient shall pay the full amount of Service
Charges and shall not set-off, counterclaim or otherwise withhold any amount owed to the Provider under this Agreement on account of any obligation owed by the Provider to the Recipient that has not been finally adjudicated, settled or otherwise
agreed upon by the Parties in writing. 
 Section 5.04. Allocation of Rebates. If (a) the Provider receives rebates
applicable to resources utilized by the Provider to provide the Services, (b) such rebate applies to a period of time during which the Provider utilized the subject of such rebate to provide the Services, and (c) the Recipient has paid all
Service Charges relating to such Services for the period of time to which such rebate applies, then to the extent the Provider has received such rebate (either as a cash payment or as a credit against fees on an invoice), such rebate shall be
allocated between the Provider and the Recipient on a pro rata basis to reflect the relative percentage of the usage of the applicable resource for the benefit of the Provider or the Recipient, respectively. Where a rebate does not correspond to a
particular Service category, Service Charge category, or time period during which the Services were provided, the applicable rebate shall be adjusted or divided as appropriate to derive an effective rebate rate for the Service categories, Service
Charge categories, and time periods with respect to which rebates are to be allocated pursuant to this Section 5.04. 

ARTICLE VI 
 STANDARD
FOR SERVICE 
 Section 6.01. Standard for Service. (a) Except where the Provider is restricted by an existing contract
with a third party or by Law, and unless any Schedule hereto indicates otherwise or the parties shall agree in writing to a different arrangement, Navy agrees to, and to cause each Provider (i) to comply with all applicable Laws and perform the
Services such that the nature, quality, standard of care and the service levels at which such Services are performed are no less than the nature, quality, standard of care and service levels at which the same or similar services were performed by or
on behalf of the Provider during the twelve-month period prior to the Closing Date (or, if not so previously provided, then substantially similar to that which are applicable to similar services provided to the Provider’s Affiliates or other
business components); and (ii) upon receipt of written notice from the Recipient identifying any outage, interruption or other failure of any Service, to respond to such outage, interruption or other failure of any Services in a manner that is
no less than that which is substantially similar to the manner in which such Provider or its Affiliates responded to any outage, interruption or other failure of the same or similar services during the twelve-month period prior to the Closing Date
(the Parties acknowledge that an outage, interruption or other failure of any Service shall not be deemed to be a breach of the provisions of this Section 6.01 so long as the applicable Provider complies with this clause (ii)). As
of or following the date of this Agreement, if the Provider is or becomes aware of any restriction on the Provider by an existing contract with a third-party that would restrict the nature, quality, standard of care or service levels applicable to
delivery of the Services to be provided by the Provider to the Recipient, the Provider shall promptly notify 

  
 12 

 
the Recipient of any such restriction (which notice shall in any event precede any change to, or reduction in, the nature, quality, standard of care or service levels applicable to delivery of
the Services resulting from such restriction) and use good faith efforts to provide such Services in a manner as closely as possible to the standards described in this Section 6.01, and the Parties shall negotiate in good faith an
amendment to the applicable Schedule to reflect such change to, or reduction in, the nature, quality, standard of care or service levels of the Service, as applicable. The Provider shall have no obligation to provide any Services hereunder in
respect of any business, assets or properties acquired by the Recipient or any of its Affiliates subsequent to the Closing Date. 
 (b) It
is understood and agreed that a Provider may (but is not obligated to) from time to time modify, change or enhance the manner, nature, quality and/or standard of care of any Service provided to the Recipient to the extent such Provider is making a
similar change in the performance of such services for the Provider and its Affiliates. The Provider shall promptly furnish to Recipient notice with respect to such modifications, changes or enhancements, including a reasonably detailed description
thereof. To the extent any such modification or change affects a Service and relates to technology, software or information systems, the Provider shall have no obligation to continue to provide, or cause to be provided, such Service using the prior
technology, software or information systems, but shall be required to provide such Service in accordance with this Agreement (or an alternate service that meets the requirements for such Service set out in Schedule A) using its upgraded
or changed technology, software or information systems. Any reasonable incremental expense incurred by the Provider in making any such modification, change or enhancement to the Services performed hereunder or in providing such Services on an
ongoing basis shall be taken into account in the calculation of Service Costs to the extent contemplated by Section 5.01(a); provided, no such incremental cost in making any such modification, change or enhancement to the Services
performed hereunder or in providing such Services on an ongoing basis shall be taken into account to the extent an alternative service is utilized by Provider. The Provider shall have no obligation to provide, or cause to be provided, Services to
the extent any changes are made to the Recipient’s business that materially increase or materially adversely increase the Provider’s burden with respect to the provision of such Services or that make commercially impracticable the
provision of such Services, unless and only to the extent the Parties otherwise agree in writing or as expressly set forth herein. 
 (c)
The Provider shall have the right to shut down temporarily for maintenance purposes the operation of the Facilities providing any Service whenever, in the Provider’s sole and absolute discretion, such action is necessary; provided, however,
that no preplanned temporary shutdown shall occur with less than forty-eight (48) hours’ advance notice to the applicable Recipient. For clarity, the Provider may temporarily close Facilities without advance notice in order to perform
maintenance in response to an emergency or an event that impairs the use of the Facility. The Provider shall be relieved of its obligations to provide the Services affected by such shutdown during the period that its Facilities are so shut down, and
the Recipient shall be relieved of its obligations to pay the Service Charges and potential Termination Charges related to such Services in respect of periods after the date the applicable Services so shut down. 

  
 13 

 Section 6.02. Disclaimer of Warranties. Except as expressly set forth in this
Agreement, the Parties acknowledge and agree that the Services are provided as-is, that the Recipients assume all risks and liability arising from or relating to its use of and reliance upon the Services and each Provider makes no representation or
warranty with respect thereto. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, PROVIDERS HEREBY EXPRESSLY DISCLAIM ALL REPRESENTATIONS AND WARRANTIES REGARDING THE SERVICES, WHETHER EXPRESS OR IMPLIED, INCLUDING ANY REPRESENTATION OR WARRANTY IN
REGARD TO QUALITY, PERFORMANCE, NONINFRINGEMENT, COMMERCIAL UTILITY, MERCHANTABILITY OR FITNESS OF THE TRANSITION SERVICES FOR A PARTICULAR PURPOSE. 

Section 6.03. Compliance with Laws and Regulations. Each Party shall be responsible for its own compliance with any and all Laws
applicable to its performance under this Agreement. No Party will knowingly take any action in violation of any such applicable Law that results in liability being imposed on the other Party. 

ARTICLE VII 
 LIMITED
LIABILITY AND INDEMNIFICATION 
 Section 7.01. Personal Injury. EACH PARTY (AS AN INDEMNIFYING PARTY) SHALL ASSUME ALL
LIABILITY FOR AND SHALL RELEASE, DEFEND, INDEMNIFY, AND HOLD THE OTHER PARTY, ITS AFFILIATES, AND THEIR RESPECTIVE EMPLOYEES, OFFICERS, DIRECTORS, AND AGENTS (ALL AS INDEMNIFIED PARTIES) FREE AND HARMLESS FROM AND AGAINST ALL LOSSES IN
CONNECTION HEREWITH IN RESPECT OF INJURY TO OR DEATH OR SICKNESS OF ANY EMPLOYEE, AGENT, OR REPRESENTATIVE OF THE INDEMNIFYING PARTY, ITS AFFILIATES OR THEIR CONTRACTORS OR SUBCONTRACTORS OF ANY PARTY, HOWSOEVER ARISING AND WHETHER OR NOT
CAUSED BY THE NEGLIGENCE (WHETHER SOLE, JOINT, OR CONCURRENT, OR ACTIVE OR PASSIVE) OF THE INDEMNIFIED PARTIES, EXCEPT TO THE EXTENT SUCH LOSS IS CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF AN INDEMNIFIED PARTY. 

Section 7.02. Indirect and Other Damages. Notwithstanding anything to the contrary contained in this Agreement, the Providers
shall not be liable to the Recipient or any of its Affiliates or Representatives, whether in contract, tort (including negligence and strict liability) or otherwise, at law or equity, for any punitive, special, indirect, incidental, consequential,
or exemplary damages (including any lost profits, lost savings, loss of reputation or loss of opportunity included in such damages), which in any way arise out of, relate to or are a consequence of, the performance or nonperformance by the Providers
(including any Affiliates and Representatives of a Provider and any third-party providers, in each case, providing the applicable Services) under this Agreement or the provision of, or failure to provide, any Services under this Agreement; provided,
however, that (i) the Provider may be liable to the other Party for any such damages that result directly from the willful misconduct or gross negligence of the Providers, and (ii) to the extent a Party is otherwise determined to be
entitled to recover any punitive, special, indirect, incidental, consequential, or exemplary damages, such damages may be recovered only to the extent the Party claiming such damages has actually paid amounts to a third party as part of a judgment
or settlement. 

  
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 Section 7.03. Limitation of Liability. Subject to Section 7.04, the
liabilities of each Provider and its Affiliates and Representatives, collectively, under this Agreement for any act or failure to act in connection herewith (including the performance or breach of this Agreement), or from the sale, delivery,
provision or use of any Services provided under or contemplated by this Agreement, whether in contract, tort (including negligence and strict liability) or otherwise, shall not exceed the total aggregate Service Charges (excluding any third-party costs and expenses included in such Service Charges) actually paid to such Provider by the Recipient pursuant to this Agreement. 

Section 7.04. Obligation To Re-perform; Liabilities . In the event of any breach of this Agreement by any Provider with respect to
the provision of any Services (with respect to which the Provider can reasonably be expected to re-perform in a commercially reasonable manner), the Provider shall (a) promptly correct in all material respects such error, defect or breach or
re-perform in all material respects such Services at the written request of the Recipient and at the sole cost and expense of the Provider and (b) subject to the limitations set forth in Sections 7.01 and 7.02, reimburse the
Recipient and its Affiliates and Representatives for liabilities attributable to such breach by the Provider. Other than as set forth in Section 7.06, the remedy set forth in this Section 7.04 shall be the sole and exclusive
remedy of the Recipient for any such breach of this Agreement. Any request for re-performance in accordance with this Section 7.04 by the Recipient must be in writing and specify in reasonable detail the particular error, defect or
breach, and such request must be made no more than one (1) month from the date such breach occurred. 
 Section 7.05. Release
and Recipient Indemnity. Subject to Section 7.01, each Recipient hereby releases the Providers and their Affiliates and Representatives (each, a “Provider Indemnified Party”), and each Recipient hereby agrees to
indemnify, defend and hold harmless each such Provider Indemnified Party from and against any and all liabilities arising from, relating to or in connection with the use of any Services by such Recipient or any of its Affiliates, Representatives or
other Persons using such Services, except to the extent that such liabilities arise out of, relate to or are a consequence of the applicable Provider Indemnified Party’s bad faith, gross negligence or willful misconduct. 

Section 7.06. Provider Indemnity . Subject to Section 7.01, each Provider hereby agrees to indemnify, defend and hold
harmless the Recipients and their Affiliates and Representatives (each a “Recipient Indemnified Party”), from and against any and all liabilities arising from, relating to or in connection with the use of any Services by such
Recipient or any of its Affiliates, Representatives or other Persons using such Services or in connection with the sale, delivery, provision or use of any Services provided under or contemplated by this Agreement to the extent that such liabilities
arise out of, relate to or are a consequence of the applicable Provider’s bad faith, gross negligence or willful misconduct. 

Section 7.07. Indemnification Procedures. The provisions of Article III of the Separation Agreement shall govern claims for
indemnification under this Agreement. 

  
 15 

 Section 7.08. Liability for Payment Obligations. Nothing in this
Article VII shall be deemed to eliminate or limit, in any respect, Red Lion’s express obligation in this Agreement to pay Termination Charges or Service Charges for Services rendered in accordance with this Agreement. 

Section 7.09. Exclusion of Other Remedies. The provisions of Sections 7.04, 7.05 and 7.06 of this
Agreement, subject to Section 7.03, shall be the sole and exclusive remedies of the Provider Indemnified Parties and the Recipient Indemnified Parties, as applicable, for any claim, loss, damage, expense or liability, whether arising
from statute, principle of common or civil law, principles of strict liability, tort, contract or otherwise under this Agreement. 

ARTICLE VIII 
 DISPUTE
RESOLUTION 
 Section 8.01. Dispute Resolution. (a) In the event of any dispute, controversy or claim arising out of or
relating to the transactions contemplated by this Agreement, or the validity, interpretation, breach or termination of any provision of this Agreement, or calculation or allocation of the costs of any Service, including claims seeking redress or
asserting rights under any Law (each, a “Dispute”), Navy and Red Lion agree that the Navy Services Manager and the Red Lion Services Manager (or such other persons as Navy and Red Lion may designate) shall negotiate in good faith in
an attempt to resolve such Dispute amicably. If such Dispute has not been resolved to the mutual satisfaction of Navy and Red Lion within fifteen (15) days after the initial written notice of the Dispute (or such longer period as the Parties
may agree), then such Dispute shall be resolved in accordance with the dispute resolution process referred to in Article V of the Separation Agreement; provided, that such dispute resolution process shall not modify or add to the
remedies available to the Parties under this Agreement. 
 (b) In any Dispute regarding the amount of a Service Charge, if after such
Dispute is finally resolved pursuant to the dispute resolution process set forth or referred to in Section 8.01(a), it is determined that the Service Charge that the Provider has invoiced the Recipient, and that the Recipient has paid to
the Provider, is greater or less than the amount that the Service Charge should have been, then (a) if it is determined that the Recipient has overpaid the Service Charge, the Provider shall within five (5) business days after such
determination reimburse the Recipient an amount of cash equal to such overpayment, plus the Interest Payment, accruing from the date of payment by the Recipient to the time of reimbursement by the Provider; and (b) if it is determined that the
Recipient has underpaid the Service Charge, the Recipient shall within five (5) business days after such determination reimburse the Provider an amount of cash equal to such underpayment, plus the Interest Payment, accruing from the date such
payment originally should have been made by the Recipient to the time of payment by the Recipient. 

  
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 ARTICLE IX 

TERM AND TERMINATION 

Section 9.01. Term and Termination. (a) This Agreement shall commence immediately upon the Closing Date and shall terminate
upon the earlier to occur of: (i) the last date on which either Party is obligated to provide any Service to the other Party in accordance with the terms of this Agreement or (ii) the mutual written agreement of the Parties to terminate
this Agreement in its entirety; provided, however, that this Agreement shall terminate with respect to any individual Service (or category of Services, as applicable), (i) automatically upon the completion of such individual Service (or
category of Services, as applicable) or (ii) upon the mutual written agreement of the Parties to terminate this Agreement with respect to such individual Service (or category of Services, as applicable). 

(b) (i) Without prejudice to a Recipient’s rights with respect to a Force Majeure, a Recipient may from time to time terminate this
Agreement with respect to any individual Service or the entirety of the Services or any portion thereof, (A) for any reason or no reason (y) upon providing to the Provider sixty (60) days’ prior written notice, and
(z) subject to the obligation to pay any applicable Termination Charges pursuant to Section 9.02, or (B) if the Provider of such Service has failed to perform any of its material obligations under this Agreement with respect to
such Service, and such failure shall continue to exist thirty (30) days after receipt by the Provider of written notice of such failure from the Recipient; and (ii) a Provider may terminate this Agreement with respect to one or more
Services, in whole but not in part, at any time upon prior written notice to the Recipient if the Recipient has failed to perform any of its material obligations under this Agreement relating to such Services, including making payment of Service
Charges when due, and such failure shall be continued uncured for a period of thirty (30) days after receipt by the Recipient of a written notice of such failure from the Provider. The relevant Schedule shall be updated to reflect any
terminated Service. In the event that any Service is terminated other than at the end of a month, the Service Charge associated with such Service shall be pro-rated for the remainder of such month appropriately. The Parties acknowledge that there
may be interdependencies among the Services being provided under this Agreement that are not identified on the applicable Schedules, and agree that if the Provider’s ability to provide a particular Service in accordance with this Agreement is
materially and adversely impacted by the termination of another Service in accordance with Section 9.01(b)(i)(A) prior to the expiration of the period of the maximum duration for such Service, the Parties shall negotiate in good faith to
amend the Schedule relating to such impacted continuing Service, which amendment shall be consistent with the terms of, and the pricing methodology used for, comparable Services. 

(c) A Recipient may from time to time request a reduction in part of the scope or amount of any Service. If requested to do so by Recipient,
the Provider agrees to discuss in good faith appropriate reductions to the relevant Service Charges in light of all relevant factors including the costs and benefits to the Provider of any such reductions. If, after such discussions, and without
prejudice to Recipient’s rights under Section 9.01(b), the Recipient and the Provider do not agree to any requested reduction of the scope or amount of any Service and the relevant Service Charges in connection therewith, then there
shall be no change to the scope or amount of any Services or Service Charges under this Agreement. In the event that a Recipient and a Provider agreed to any reduction of Service and the relevant Service Charges, the relevant Schedule shall be
updated to reflect such reduced Service. In the event that any Service is reduced other than at the end of a month, the Service Charge associated with such Service for the month in which such Service is reduced shall be pro-rated appropriately. 

  
 17 

 Section 9.02. Effect of Termination. Upon termination of any Service pursuant to this
Agreement, the Provider of the terminated Service will have no further obligation to provide the terminated Service, and the relevant Recipient will have no obligation to pay any future Service Charges relating to any such Service; provided,
that the Recipient shall remain obligated to the relevant Provider for the (i) Service Charges owed and payable in respect of Services provided prior to the effective date of termination and (ii) any applicable Termination Charges. In
connection with termination of any Service, the provisions of this Agreement not relating solely to such terminated Service shall survive any such termination, and in connection with a termination of this Agreement, Article I,
Article VII (including liability in respect of any indemnifiable liabilities under this Agreement arising or occurring on or prior to the date of termination), Article VIII, Article IX, Article X, all
confidentiality obligations under this Agreement and liability for all due and unpaid Service Charges and any applicable Termination Charges payable pursuant to the early termination of a Service, shall continue to survive indefinitely. 

Section 9.03. Force Majeure. (a) No Provider (nor any Person acting on its behalf) shall have any liability or responsibility
for failure to fulfill any obligation under this Agreement so long as and to the extent to which the fulfillment of such obligation is prevented, frustrated, hindered or delayed as a consequence of circumstances of Force Majeure; provided,
that (i) the Provider (or such Person) shall have exercised commercially reasonable efforts to minimize the effect of Force Majeure on its obligations; and (ii) the nature, quality and standard of care that the Provider shall provide in
delivering a Service after a Force Majeure shall be substantially the same as the nature, quality and standard of care that the Provider provides to its Affiliates and its other business components with respect to such Service. In the event of an
occurrence of a Force Majeure, the Provider shall give notice of suspension as soon as reasonably practicable to the other stating the date and extent of such suspension and the cause thereof, and the Provider shall resume the performance of such
obligations as soon as reasonably practicable after the removal of such cause. In such event, the Recipient shall be relieved of any and all obligations in respect of the payment of any Service Charge for the applicable suspended Service with
respect to the period of time such Service is suspended as a result of the applicable Force Majeure. 
 (b) During the term of this
Agreement, including during the period of a Force Majeure, the Recipient shall be entitled to seek an alternative service provider with respect to any Service(s) (at Recipient’s own expense). 

ARTICLE X 
 GENERAL
PROVISIONS 
 Section 10.01. No Agency. Nothing in this Agreement shall be deemed in any way or for any purpose to
constitute any party an agent of another unaffiliated party in the conduct of such other party’s business. Each Provider of any Service under this Agreement shall act as an independent contractor and not as the agent of the Recipient in
performing such Service, maintaining control over its employees, its subcontractors and their employees and complying with all withholding of income at source requirements, whether federal, state, local or foreign. 

  
 18 

 Section 10.02. Subcontractors. A Provider may hire or engage one or more
subcontractors to perform any or all of its obligations under this Agreement; provided, that (i) such Provider shall use the same degree of care in selecting any such subcontractor as it would if such contractor was being retained to
provide similar services to the Provider and (ii) such Provider shall in all cases remain responsible for all of its obligations under this Agreement with respect to the scope of the Services, the standard for services as set forth in
Article VI and the content of the Services provided to the Recipient. 
 Section 10.03. Treatment of Confidential
Information. (a) The Parties shall not, and shall cause all other persons providing Services or having access to information of the other Party that is known to such Party as confidential or proprietary (“Confidential
Information”) not to, disclose to any other person or use, except for purposes of this Agreement, any Confidential Information of the other Party; provided, however, that each Party may disclose Confidential Information of the
other Party, to the extent permitted by applicable Law: (i) to its Representatives on a need-to-know basis in connection with the performance of such Party’s obligations under this Agreement; (ii) in any report, statement, testimony
or other submission required to be made to any Governmental Authority having jurisdiction over the disclosing Party; or (iii) in order to comply with applicable Law, or in response to any summons, subpoena or other legal process or formal or
informal investigative demand issued to the disclosing Party in the course of any litigation, investigation or administrative proceeding. In the event that a Party becomes legally compelled (based on advice of counsel) by deposition, interrogatory,
request for documents subpoena, civil investigative demand or similar judicial or administrative process to disclose any Confidential Information of the other Party, such disclosing Party shall provide the other Party with prompt prior written
notice of such requirement, and, to the extent reasonably practicable, cooperate with the other Party (at such other Party’s expense) to obtain a protective order or similar remedy to cause such Confidential Information not to be disclosed,
including interposing all available objections thereto, such as objections based on settlement privilege. In the event that such protective order or other similar remedy is not obtained, the disclosing Party shall furnish only that portion of the
Confidential Information that has been legally compelled, and shall exercise its commercially reasonable efforts (at such other Party’s expense) to obtain assurance that confidential treatment will be accorded such Confidential Information.
Navy’s Confidential Information shall include any data and software that Red Lion or any of its Affiliates are provided or have access to solely as a result of the access rights provided in Section 4.01. 

(b) Each Party shall, and shall cause its Representatives to protect the Confidential Information of the other Party by using the same degree
of care to prevent the unauthorized disclosure of such as the Party uses to protect its own confidential information of a like nature. 

(c) Each Party shall cause its Representatives to agree to be bound by the same restrictions on use and disclosure of Confidential Information
as are binding upon such Party in advance of the disclosure of any such Confidential Information to them. 
 (d) Each Party shall comply
with all applicable state, federal and foreign privacy and data protection Laws that are or that may in the future be applicable to the provision of Services under this Agreement. 

  
 19 

 Section 10.04. Further Assurances. Each Party covenants and agrees that, without any
additional consideration, it shall execute and deliver any further legal instruments and perform any acts that are or may become necessary to effectuate this Agreement. 

Section 10.05. Notices. Except with respect to routine communications by the Navy Services Manager and Red Lion Services Manager
under Section 2.03, all notices, requests, claims, demands and other communications under this Agreement shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in
person, by overnight courier service, by facsimile or electronic transmission with receipt confirmed (followed by delivery of an original via overnight courier service) or by registered or certified mail (postage prepaid, return receipt requested)
to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this Section 10.05): 

 

			
	(i)		if to Navy:
		
			Nabors Industries Ltd.
			Crown House
			Second Floor
			4 Par-la-Ville Road
			Hamilton, HM 08
			Bermuda
			Attention: Corporate Secretary
		
			with a copy to:
		
			Nabors Corporate Services, Inc.
			515 West Greens Road, Suite 1200
			Houston, Texas 66057
			Attention: General Counsel
			Facsimile: (281) 775-4319
		
			with a copy to:
		
			Milbank, Tweed, Hadley & McCloy LLP
			One Chase Manhattan Plaza
			New York, New York 10005
			Attention: Charles J. Conroy
			          Scott W. Golenbock

			Facsimile: (212) 822-5219
		
	(ii)		if to Red Lion:
		
			C&J Energy Services Ltd.
			Canon’s Court
			22 Victoria Street
			Hamilton HM12
			Bermuda
			Attention: Corporate Secretary

  
 20 

			
			with a copy to:
		
			C&J Energy Services Ltd.
			3990 Rogerdale Rd.
			Houston, TX 77042
			Attention: Steven Carter
			 Facsimile: (713) 325-5920
  

with a copy to:

		
			Vinson & Elkins L.L.P.
			1001 Fannin, Suite 2500
			Houston, Texas 77002
			Attention: Stephen M. Gill
			Facsimile: (713) 615-5956

 Section 10.06. Severability. If any term or other provision of this Agreement is invalid, illegal
or incapable of being enforced under any Law or as a matter of public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions
contemplated by this Agreement is not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to
modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated by this Agreement be consummated as originally contemplated to the greatest
extent possible. 
 Section 10.07. Entire Agreement. Except as otherwise expressly provided in this Agreement, this Agreement,
the Separation Agreement, the Merger Agreement and the other Ancillary Agreements, constitute the entire agreement of the Parties with respect to the subject matter of this Agreement and supersede all prior agreements and undertakings, both written
and oral, between or on behalf of the Parties with respect to the subject matter of this Agreement. 
 Section 10.08. No Third-Party
Beneficiaries. Except as provided in Article VII with respect to Provider Indemnified Parties and Recipient Indemnified Parties, this Agreement is for the sole benefit of the Parties and their permitted successors and assigns and
nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person, including any union or any employee or former employee of Navy or Red Lion, any legal or equitable right, benefit or remedy of any nature
whatsoever, including any rights of employment for any specified period, under or by reason of this Agreement. 
 Section 10.09.
Governing Law. This Agreement (and any claims or disputes arising out of or related to this Agreement or to the transactions contemplated by this Agreement or to the inducement of any Party to enter into this Agreement or the transactions
contemplated by this Agreement, whether for breach of contract, tortious conduct or otherwise and whether predicated on common law, statute or otherwise) shall in all respects be governed by, and 

  
 21 

 
construed in accordance with, the Laws of the State of New York, including all matters of construction, validity and performance, in each case without reference to any conflict of Law rules that
might lead to the application of the Laws of any other jurisdiction. 
 Section 10.10. Amendment. No provision of this
Agreement, including any Schedules to this Agreement, may be amended, supplemented or modified except by a written instrument making specific reference to this Agreement or any such Schedules to this Agreement, as applicable, signed by all the
Parties. 
 Section 10.11. Rules of Construction. Interpretation of this Agreement shall be governed by the following rules of
construction: (a) words in the singular shall be held to include the plural and vice versa, and words of one gender shall be held to include the other gender as the context requires; (b) references to the terms Article, Section, paragraph
and Schedule are references to the Articles, Sections, paragraphs and Schedules of this Agreement unless otherwise specified; (c) references to “$” shall mean U.S. dollars; (d) the word “including” and words of
similar import when used in this Agreement shall mean “including without limitation,” unless otherwise specified; (e) the word “or” shall not be exclusive; (f) references to “written” or “in writing”
include in electronic form; (g) provisions shall apply, when appropriate, to successive events and transactions; (h) the headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement; (i) Navy and Red Lion have each participated in the negotiation and drafting of this Agreement and if an ambiguity or question of interpretation should arise, this Agreement shall be construed as if drafted
jointly by the Parties and no presumption or burden of proof shall arise favoring or burdening either Party by virtue of the authorship of any of the provisions in this Agreement or any interim drafts of this Agreement; (j) a reference to any
Person includes such Person’s successors and permitted assigns; (k) any reference to “days” means calendar days unless business days are expressly specified; and (l) when calculating the period of time before which, within
which or following which any act is to be done or step taken pursuant to this Agreement, the date that is the reference date in calculating such period shall be excluded, if the last day of such period is not a business day, the period shall end on
the next succeeding business day. 
 Section 10.12. Counterparts. This Agreement may be executed in one or more counterparts,
and by each Party in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this
Agreement by facsimile or portable document format (PDF) shall be as effective as delivery of a manually executed counterpart of this Agreement. 

Section 10.13. Assignability. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and permitted assigns. No party may assign, delegate or otherwise transfer any of its rights or obligations under this Agreement without the prior written consent of the other party hereto; provided,
however that either Party may assign its rights hereunder to an Affiliate without the prior written consent of the other Party; provided, further, that such assigning Party shall remain liable for its obligations hereunder
notwithstanding such assignment. 

  
 22 

 Section 10.14. Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT WAIVES TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. EACH PARTY (I) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER; AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTY
TO THIS AGREEMENT HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER TRANSACTION AGREEMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 10.14. 

Section 10.15. Non-Recourse. No past, present or future director, officer, employee, incorporator, member, partner, shareholder,
stockholder, Affiliate, agent, attorney or representative of either Navy or Red Lion or their respective predecessors, successors or Affiliates shall have any liability for any obligations or liabilities of Navy or Red Lion, respectively, under this
Agreement or for any claims based on, in respect of, or by reason of, the transactions contemplated by this Agreement. 
 [The
remainder of this page is Intentionally left blank.] 

  
 23 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the date first
written above by their respective duly authorized officers. 
  

			
	NABORS INDUSTRIES LTD.
		
	By:		 /s/ Mark D. Andrews

	Name:		Mark D. Andrews
	Title:		Corporate Secretary
	
	NABORS RED LION LIMITED
		
	By:		 /s/ Mark D. Andrews

	Name:		Mark D. Andrews
	Title:		DirectorEX-10.7

 Exhibit 10.7 

Final 
 C&J
ENERGY SERVICES 
 2015 LONG TERM INCENTIVE PLAN 

1. Purpose. The purpose of the Plan is to assist the Company to attract, retain, incentivize and motivate officers
and employees of, consultants to, and non-employee directors providing services to, the Company or its Subsidiaries and to promote the success of the Company’s business by providing such participating individuals with a proprietary interest in
the performance of the Company. The Company believes that this incentive program will cause participating officers, employees, consultants and non-employee directors to increase their interest in the welfare of the Company or its Subsidiaries and to
align those interests with those of the shareholders of the Company. 
 For purposes of New York Stock Exchange requirements, the Plan is an
assumption of the C&J Energy Services, Inc. 2012 Long-Term Incentive Plan (the “2012 Plan”) by the Company with certain non-material revisions made. For the avoidance of doubt, (i) no awards shall be made under the
2012 Plan on or after the Effective Date; (ii) awards previously granted under the 2012 Plan that are outstanding immediately prior to the Effective Time (as defined in the Merger Agreement) shall, in accordance with Section 2.3 of the
Merger Agreement and Section 13.1(i) of the 2012 Plan, as of the Effective Time, be converted into, and continue as, outstanding awards under the Plan (the “Converted Awards”); (iii) any awards previously granted
under the 2012 Plan (whether or not such awards remain outstanding immediately prior to the Effective Time and specifically including the Converted Awards) shall cause a reduction in the aggregate number of Shares available for issuance under
Section 4.1 of the Plan, subject to Section 4.3 of the Plan (provided that, any shares subject to awards previously granted under the 2012 Plan that became available for issuance again under the 2012 Plan pursuant to Section 4.3 of
the 2012 Plan shall also be available for issuance under the Plan); and (iv) the number of shares or other amount subject to any awards previously granted to an Eligible Individual under the 2012 Plan during the calendar year in which the
Effective Date occurs shall be subtracted from and shall reduce the individual participant limits in Section 4.2 of the Plan applicable to such Eligible Individual with respect to such calendar year. 

Notwithstanding anything contained herein or any Award Agreement to the contrary, in no event shall the Merger Agreement or any transactions
contemplated thereby constitute a Change in Capitalization, a Corporation Transaction or a Change in Control for purposes of this Plan, any Award or any Award Agreement. 

2. Definitions. For purposes of the Plan: 

2.1. “Affiliate” shall mean, any entity that the Company, either directly or indirectly through one or
more intermediaries, is in common control with, is controlled by or controls, each within the meaning of the Securities Act. 

2.2. “Award” means, individually or collectively, a grant of an Option, Restricted Share, a Restricted
Share Unit, a Share Appreciation Right, a Performance Award, a Dividend Equivalent Right, a Share Award, an Other Share-Based Award, a Substitute Award or any combination of the foregoing. 

 2.3. “Award Agreement” means a written or electronic
agreement between the Company and a Participant evidencing the grant of an Award and setting forth the terms and conditions thereof. 

2.4. “Board” means the Board of Directors of the Company. 

2.5. “Cause” means, with respect to the Termination of a Participant by the Company or any Subsidiary
of the Company that employs such individual or to which the Participant performs services (or by the Company on behalf of any such Subsidiary), such Participant’s (i) refusal or neglect to perform substantially his or her
employment-related duties or services, (ii) personal dishonesty, incompetence, willful misconduct or breach of fiduciary duty, (iii) indictment for, conviction of or entering a plea of guilty or nolo contendere to a crime constituting a
felony or his or her willful violation of any applicable law (other than a traffic violation or other offense or violation outside of the course of employment or services to the Company or its Subsidiaries which does not adversely affect the Company
and its Subsidiaries or its reputation or the ability of the Participant to perform his or her employment-related duties or services or to represent the Company or any Subsidiary of the Company that employs such Participant or to which the
Participant performs services), (iv) failure to reasonably cooperate, following a request to do so by the Company, in any internal or governmental investigation of the Company or any of its Subsidiaries or (v) material breach of any
written covenant or agreement with the Company or any of its Subsidiaries not to disclose any information pertaining to the Company or such Subsidiary or not to compete or interfere with the Company or such Subsidiary; provided that, in the case of
any Participant who, as of the date of determination, is party to an effective services, severance or employment agreement with the Company or any Subsidiary, “Cause” shall have the meaning, if any, specified in such agreement. 

2.6. “Change in Capitalization” means any increase or reduction in the number of Shares, any change
(including, but not limited to, in the case of a spin-off, dividend or other distribution in respect of Shares, a change in value) in the Shares or any exchange of Shares for a different number or kind of shares or other securities of the Company or
another corporation, by reason of a reclassification, recapitalization, merger, consolidation, reorganization, spin-off, split-up, issuance of warrants, rights or debentures, share dividend, share split or reverse share split, cash dividend,
property dividend, combination or exchange of shares, repurchase of shares, change in corporate structure or any similar corporate event or transaction. 

2.7. “Change in Control” means the occurrence of any of the following: 

(a) An acquisition (other than directly from the Company) of any voting securities of the Company (the “Voting
Securities”) by any Person, immediately after which such Person has “Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of fifty percent (50%) or more of the combined voting power
of the Company’s then-outstanding Voting Securities; provided, however, that in determining whether a Change in Control has occurred pursuant to this Section 2.7(a), the acquisition of Voting Securities in a Non-Control Acquisition (as
hereinafter defined) shall not constitute a Change in Control. A “Non-Control Acquisition” shall mean an acquisition by (i) an employee benefit plan (or a trust forming a part thereof) maintained by (A) the Company
or (B) any corporation or 

  
 2 

 
other Person the majority of the voting power, voting equity securities or equity interest of which is owned, directly or indirectly, by the Company (for purposes of this definition, a
“Related Entity”), (ii) the Company or any Related Entity, or (iii) any Person in connection with a Non-Control Transaction (as hereinafter defined); 

(b) The individuals who are members of the Board immediately following the Effective Time (as defined in the Merger Agreement) (the
“Incumbent Board”), cease for any reason to constitute at least two-thirds of the members of the Board; provided, however, that if the election, or nomination for election by the Company’s common shareholders, of any new
director was approved by a vote of at least two-thirds of the Incumbent Board, such new director shall, for purposes of the Plan, be considered as a member of the Incumbent Board; provided further, however, that no individual shall be considered a
member of the Incumbent Board if such individual initially assumed office as a result of either an actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a “Proxy Contest”)
including by reason of any agreement intended to avoid or settle any Proxy Contest; 
 (c) The consummation of: 

(i) A merger, consolidation or reorganization (x) with or into the Company or (y) in which securities of the Company
are issued (a “Merger”), unless such Merger is a Non-Control Transaction. A “Non-Control Transaction” shall mean a Merger in which: 

(A) the shareholders of the Company immediately before such Merger own directly or indirectly immediately following such
Merger at least a majority of the combined voting power of the outstanding voting securities of (1) the corporation resulting from such Merger (the “Surviving Corporation”), if fifty percent (50%) or more of the
combined voting power of the then outstanding voting securities of the Surviving Corporation is not Beneficially Owned, directly or indirectly, by another Person (a “Parent Corporation”), or (2) if there is one or more
than one Parent Corporation, the ultimate Parent Corporation; 
 (B) the individuals who were members of the Board
immediately prior to the execution of the agreement providing for such Merger constitute at least a majority of the members of the board of directors of (1) the Surviving Corporation, if there is no Parent Corporation, or (2) if there is
one or more than one Parent Corporation, the ultimate Parent Corporation; and 
 (C) no Person other than (1) the
Company or another corporation that is a party to the agreement of Merger, (2) any Related Entity, (3) any employee benefit plan (or any trust forming a part thereof) that, immediately prior to the Merger, was maintained by the Company or
any Related Entity or (4) any Person who, immediately prior to the Merger, had Beneficial Ownership of Voting Securities representing more than fifty percent (50%) of the combined voting power of the Company’s then-outstanding Voting
Securities, has Beneficial Ownership, directly or indirectly, of fifty percent (50%) or more of the combined voting power of the outstanding voting securities of (x) the Surviving Corporation, if there is no Parent Corporation, or
(y) if there is one or more than one Parent Corporation, the ultimate Parent Corporation; 

  
 3 

 (ii) A complete liquidation or dissolution of the Company; or 

(iii) The sale or other disposition of all or substantially all of the assets of the Company and its Subsidiaries taken as a
whole to any Person (other than (x) a transfer to a Related Entity or (y) the distribution to the Company’s shareholders of the shares of a Related Entity or any other assets). 

Notwithstanding the foregoing, (A) a Change in Control shall not be deemed to occur solely because any Person (the “Subject
Person”) acquired Beneficial Ownership of more than the permitted amount of the then outstanding Voting Securities as a result of the acquisition of Voting Securities by the Company which, by reducing the number of Voting Securities
then outstanding, increases the proportional number of shares Beneficially Owned by the Subject Person; provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of Voting Securities by
the Company and, after such acquisition by the Company, the Subject Person becomes the Beneficial Owner of any additional Voting Securities and such Beneficial Ownership increases the percentage of the then outstanding Voting Securities Beneficially
Owned by the Subject Person, then a Change in Control shall occur; and (B) for purposes of an Award that provides for a deferral of compensation under the Nonqualified Deferred Compensation Rules, to the extent the impact of a Change in Control
on such Award would subject a Participant to additional taxes under the Nonqualified Deferred Compensation Rules, a Change in Control for purposes of such Award will mean both a Change in Control and a “change in the ownership or effective
control of a corporation, or a change in the ownership of a substantial portion of the assets of a corporation” within the meaning of the Nonqualified Deferred Compensation Rules. 

2.8. “Code” means the Internal Revenue Code of 1986, as amended. 

2.9. “Committee” means the committee which administers the Plan as provided in Section 3. 

2.10. “Company” means Nabors Red Lion Limited, a Bermuda exempted company, which will be renamed
C&J Energy Services Ltd. following the consummation of the transactions contemplated by the Merger Agreement. 
 2.11.
“Consultant” means any consultant or advisor who is a natural person and who renders services to the Company or a Subsidiary that (a) are not in connection with the offer and sale of the Company’s securities in a
capital raising transaction and (b) do not directly or indirectly promote or maintain a market for the Company’s securities, but who is not an Employee or Director. 

2.12. “Corporate Transaction” means (a) a merger, consolidation, reorganization, recapitalization
or other similar change in the Company’s common shares or (b) a liquidation or dissolution of the Company. For the avoidance of doubt, a Corporate Transaction may be a transaction that is also a Change in Control. 

  
 4 

 2.13. “Covered Employee” means, for any Performance
Cycle: 
 (a) an Employee who 

(i) as of the beginning of the Performance Cycle is an officer subject to Section 16 of the Exchange Act, and 

(ii) prior to determining Performance Objectives for the Performance Cycle pursuant to Section 9, the Committee designates
as a Covered Employee for purposes of the Plan; provided that, if the Committee does not make the designation in clause (ii) for a Performance Cycle, all Employees described in clause (i) shall be deemed to be Covered Employees for
purposes of the Plan, and 
 (b) any other Employee that the Committee designates as a Covered Employee for purposes of the Plan. 

2.14. “Director” means a member of the Board. 

2.15. “Disability” means permanent and total disability as defined in Code Section 22(e)(3). A
determination of Disability may be made by a physician selected or approved by the Committee and, in this respect, the Participant shall submit to any reasonable examination(s) required by such physician upon request. Notwithstanding the foregoing
provisions of this Section 2.15, in the event any Award is considered to be “deferred compensation” as that term is defined under the Nonqualified Deferred Compensation Rules, then, in lieu of the foregoing definition and to the
extent necessary to comply with the requirements of the Nonqualified Deferred Compensation Rules, the definition of “Disability” for purposes of such Award shall be the definition of “disability” provided for under the
Nonqualified Deferred Compensation Rules. 
 2.16. “Division” means any of the operating units or
divisions of the Company designated as a Division by the Committee. 
 2.17. “Dividend Equivalent
Right” means a right to receive cash, Shares, other Awards or other property based on the value of dividends that are paid with respect to Shares. 

2.18. “Effective Date” means the date immediately prior to the consummation of the transactions
contemplated by the Merger Agreement. 
 2.19. “Eligible Individual” means any Employee, Director or
Consultant. 
 2.20. “Employee” means any individual performing services for the Company or a
Subsidiary and designated as an employee of the Company or the Subsidiary on its payroll records. An Employee shall not include any individual during any period he or she is classified or treated by the Company or Subsidiary as an independent
contractor, a consultant or an employee of an employment, consulting or temporary agency or any other entity other than the Company or Subsidiary, without regard to whether such individual is subsequently determined to have been, or is subsequently
retroactively reclassified, as a common-law employee of the Company or Subsidiary during such period. An individual shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between
locations of the Company or any Subsidiary, or between the Company and any Subsidiaries. 

  
 5 

 2.21. “Exchange Act” means the Securities Exchange Act of
1934, as amended. 
 2.22. “Fair Market Value” on any date means: 

(a) if the Shares are listed for trading on the New York Stock Exchange, the closing price at the close of the primary trading session of the
Shares on such date on the New York Stock Exchange, or if there has been no such closing price of the Shares on such date, on the next preceding date on which there was such a closing price; 

(b) if the Shares are not listed for trading on the New York Stock Exchange, but are listed on another national securities exchange, the
closing price at the close of the primary trading session of the Shares on such date on such exchange, or if there has been no such closing price of the Shares on such date, on the next preceding date on which there was such a closing price; 

(c) if the Shares are not listed on the New York Stock Exchange or on another national securities exchange, the last sale price at the end of
normal market hours of the Shares on such date as quoted on the National Association of Securities Dealers Automated Quotation System (“NASDAQ”) or, if no such price shall have been quoted for such date, on the next preceding
date for which such price was so quoted; or 
 (d) if the Shares are not listed for trading on a national securities exchange or are not
authorized for quotation on NASDAQ, the fair market value of the Shares as determined in good faith by the Committee taking into account any factors the Committee deems appropriate (including without limitation the Nonqualified Deferred Compensation
Rules), and in the case of Incentive Share Options, in accordance with Section 422 of the Code. 
 2.23.
“Incentive Share Option” means an Option satisfying the requirements of Section 422 of the Code and designated by the Committee as an Incentive Share Option. 

2.24. “Merger Agreement” means the Agreement and Plan of Merger, dated as of June 25, 2014, by and
among Nabors Industries Ltd., Nabors Red Lion Limited and C&J Energy Services, Inc., as amended from time to time. 

2.25. “Nonemployee Director” means a Director of the Board who is a “nonemployee director”
within the meaning of Rule 16b-3 promulgated under the Exchange Act. 
 2.26. “Nonqualified Deferred Compensation
Rules” means the limitations or requirements of Section 409A and/or 457A of the Code, as amended from time to time, including the guidance and regulations promulgated thereunder and successor provisions, guidance and regulations
thereto. 
 2.27. “Nonqualified Share Option” means an Option which is not an Incentive Share Option.

  
 6 

 2.28. “Option” means a Nonqualified Share Option or an
Incentive Share Option. 
 2.29. “Option Price” means the price at which a Share may be purchased
pursuant to an Option. 
 2.30. “Other Share-Based Awards” means Other Share-Based Awards granted to
an Eligible Individual under Section 10.2. 
 2.31. “Outside Director” means a Director of the
Board who is an “outside director” within the meaning of Section 162(m) of the Code and the regulations promulgated thereunder. 

2.32. “Parent” means any corporation which is a “parent corporation” (within the meaning of
Section 424(e) of the Code) with respect to the Company. 
 2.33. “Participant” means an
Eligible Individual to whom an Award has been granted under the Plan. 
 2.34. “Performance Awards”
means Performance Share Units, Performance Units, Performance-Based Restricted Shares or any combination of the foregoing. 

2.35. “Performance-Based Compensation” means any Award that is intended to constitute “performance
based compensation” within the meaning of Section 162(m) of the Code and the regulations promulgated thereunder. 

2.36. “Performance-Based Restricted Shares” means Shares issued or transferred to an Eligible
Individual under Section 9.2. 
 2.37. “Performance Cycle” means the time period specified by
the Committee at the time a Performance Award is granted during which the performance of the Company, a Subsidiary or a Division will be measured. 

2.38. “Performance Objectives” means the objectives set forth in Section 9.3 for the purpose of
determining, either alone or together with other conditions, the degree of payout and/or vesting of Performance Awards. 

2.39. “Performance Share Units” means Performance Share Units granted to an Eligible Individual under
Section 9.1(b). 
 2.40. “Performance Units” means Performance Units granted to an Eligible
Individual under Section 9.1(a). 
 2.41. “Person” shall have the meaning ascribed to such term
in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) of the Exchange Act. 
 2.42.
“Plan” means this C&J Energy Services 2015 Long Term Incentive Plan, as amended from time to time. 

  
 7 

 2.43. “Plan Termination Date” means the date that is ten
(10) years after the Effective Date, unless the Plan is earlier terminated by the Board pursuant to Section 15 hereof. 

2.44. “Prior Plans” means the C&J Energy Services, Inc. 2006 Stock Option Plan and the C&J
Energy Services, Inc. 2010 Stock Option Plan. 
 2.45. “Restricted Shares” means Shares issued or
transferred to an Eligible Individual pursuant to Section 8.1. 
 2.46. “Restricted Share Units”
means rights granted to an Eligible Individual under Section 8.2 representing a number of hypothetical Shares. 
 2.47.
“Securities Act” means the Securities Act of 1933, as amended. 
 2.48. “Share
Award” means an Award of Shares granted pursuant to Section 10.1. 
 2.49. “Shares”
means the common shares, par value $0.01 per share, of the Company and any other securities into which such shares are changed or for which such shares are exchanged. 

2.50. “Share Appreciation Right” means a right to receive all or some portion of the increase, if any,
in the value of the Shares as provided in Section 6 hereof. 
 2.51. “Subsidiary” means any
corporation which is a subsidiary corporation within the meaning of Section 424(f) of the Code with respect to the Company. 

2.52. “Substitute Award” means an Award granted pursuant to Section 10.3 of the Plan. 

2.53. “Ten-Percent Shareholder” means an Eligible Individual who, at the time an Incentive Share Option
is to be granted to him or her, owns (within the meaning of Section 422(b)(6) of the Code) shares possessing more than ten percent (10%) of the total combined voting power of all classes of shares of the Company, a Parent or a Subsidiary.

 2.54. “Termination”, “Terminated” or “Terminates”
shall mean (a) with respect to a Participant who is an Employee, the date such Participant ceases to be employed by the Company and its Subsidiaries, (b) with respect to a Participant who is a Consultant, the date such Participant ceases
to provide services to the Company and its Subsidiaries or (c) with respect to a Participant who is a Director, the date such Participant ceases to be a Director, in each case, for any reason whatsoever (including by reason of death, Disability
or adjudicated incompetency). Unless otherwise set forth in an Award Agreement, (a) if a Participant is both an Employee and a Director and terminates as an Employee but remains as a Director, the Participant will be deemed to have continued in
employment without interruption and shall be deemed to have Terminated upon ceasing to be a Director and (b) if a Participant who is an Employee or a Director ceases to provide services in such capacity and becomes a Consultant, the Participant
will thereupon be deemed to have been Terminated. 

  
 8 

 3. Administration.  

3.1. Committee; Procedure. The Plan shall be administered by a Committee which, until the Board appoints a different
Committee, shall be the Compensation Committee of the Board. The Committee may adopt such rules, regulations and guidelines as it deems are necessary or appropriate for the administration of the Plan. The Committee shall consist of at least two
(2) Directors of the Board and may consist of the entire Board; provided, however, that (a) if the Committee consists of less than the entire Board, then, with respect to any Award granted to an Eligible Individual who is subject to
Section 16 of the Exchange Act, the Committee shall consist of at least two Directors of the Board, each of whom shall be a Nonemployee Director and (b) to the extent necessary for any Award intended to qualify as Performance-Based
Compensation to so qualify, the Committee shall consist of at least two Directors of the Board, each of whom shall be an Outside Director. For purposes of the preceding sentence, if one or more members of the Committee is not a Nonemployee Director
or an Outside Director but recuses himself or herself or abstains from voting with respect to a particular action taken by the Committee, then the Committee, with respect to that action, shall be deemed to consist only of the members of the
Committee who have not recused themselves or abstained from voting. 
 3.2. Board Reservation and Delegation. 

(a) Except to the extent necessary for any Award intended to qualify as Performance-Based Compensation to so qualify, the Board may, in its
discretion, reserve to itself or exercise any or all of the authority and responsibility of the Committee hereunder. To the extent the Board has reserved to itself or exercises the authority and responsibility of the Committee, all references to the
Committee in the Plan shall be to the Board. 
 (b) Subject to applicable law, the Board may delegate, in whole or in part, any of the
authority of the Committee hereunder (subject to such limits as may be determined by the Board) to any individual or committee of individuals (who need not be Directors), including without limitation the authority to make Awards to Eligible
Individuals who are not officers or directors of the Company or any of its Subsidiaries and who are not subject to Section 16 of the Exchange Act. To the extent that the Board delegates any such authority to make Awards as provided by this
Section 3.2(b), all references in the Plan to the Committee’s authority to make Awards and determinations with respect thereto shall be deemed to include the Board’s delegate. 

3.3. Committee Powers. Subject to the express terms and conditions set forth herein and applicable law, the Committee
shall have the power from time to time to: 
 (a) select those Eligible Individuals to whom Options shall be granted under the Plan and the
number of such Options to be granted and prescribe the terms and conditions (which need not be identical) of each such Option, including the exercise price per Share, the vesting schedule and the duration of each Option, and make any amendment or
modification to any Award Agreement consistent with the terms of the Plan; 
 (b) select those Eligible Individuals to whom other Awards
shall be granted under the Plan, determine the type of Award, the number of Shares or amount of cash in respect 

  
 9 

 
of which each Award is granted and the terms and conditions (which need not be identical) of each such Award and make any amendment or modification to any Award Agreement consistent with the
terms of the Plan; 
 (c) construe and interpret the Plan and the Awards granted hereunder, establish sub-plans, and establish, amend and
revoke rules and regulations for the administration of the Plan, including, but not limited to, correcting any defect, supplying any omission or reconciling any inconsistency in the Plan or in any Award Agreement in the manner and to the extent it
shall deem necessary or advisable, including so that the Plan and the operation of the Plan comply with Rule 16b-3 under the Exchange Act, the Code to the extent applicable and other applicable law, and otherwise make the Plan fully effective; 

(d) determine the duration and purposes for leaves of absence which may be granted to a Participant on an individual basis without
constituting a Termination for purposes of the Plan; 
 (e) cancel, with the consent of the Participant, outstanding Awards or as otherwise
permitted under the terms of the Plan; 
 (f) exercise its discretion with respect to the powers and rights granted to it as set forth in
the Plan; and 
 (g) generally, exercise such powers and perform such acts as are deemed necessary or advisable to promote the best
interests of the Company with respect to the Plan. 
 The Committee’s determinations under the Plan need not be uniform and may be made
by it selectively among Persons who receive, or are eligible to receive, Awards (whether or not such Persons are similarly situated). Without limiting the generality of the foregoing, the Committee shall be entitled, among other things, to make
non-uniform and selective determinations, and to enter into non-uniform and selective Award Agreements, as to the Eligible Individuals to receive Awards under the Plan and the terms and provision of Awards under the Plan. All decisions and
determinations by the Committee in the exercise of the above powers shall be final, binding and conclusive upon the Company, its Subsidiaries, the Participants and all other persons having any interest therein. 

3.4. Indemnification. No member of the Committee shall be liable for any action, failure to act, determination or
interpretation made in good faith with respect to the Plan or any transaction hereunder. The Company hereby agrees to indemnify each member of the Committee for all costs and expenses and, to the extent permitted by applicable law, any liability
incurred in connection with defending against, responding to, negotiating for the settlement of or otherwise dealing with any claim, cause of action or dispute of any kind arising in connection with any actions in administering the Plan or in
authorizing or denying authorization to any transaction hereunder. 
 3.5. No Repricing of Options or Share Appreciation
Rights. The Committee shall have no authority to make any adjustment (other than in connection with a Change in Capitalization, a Corporate Transaction or other transaction where an adjustment is permitted or required under the terms of the
Plan) or amendment, and no such adjustment or amendment 

  
 10 

 
shall be made, that reduces or would have the effect of reducing the exercise price of an Option or Share Appreciation Right previously granted under the Plan, whether through amendment,
cancellation or replacement grants or other means, unless the Company’s shareholders shall have approved such adjustment or amendment. 

3.6. Participants in Non-U.S. Jurisdictions. Notwithstanding any provision of the Plan to the contrary, to comply with
applicable laws in countries other than the United States in which the Company operates or has Employees, Directors or Consultants from time to time, or to ensure that the Company complies with any applicable requirements of foreign securities
exchanges, the Committee, in its sole discretion, shall have the power and authority to: (i) determine which of its Subsidiaries shall be covered by the Plan; (ii) determine which Eligible Individuals outside the United States are eligible
to participate in the Plan; (iii) modify the terms and conditions of any Award granted to Eligible Individuals outside the United States to comply with applicable foreign laws or listing requirements of any foreign exchange; (iv) establish
sub-plans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable (any such sub-plans and/or modifications shall be attached to the Plan as appendices), provided, however, that no such
sub-plans and/or modifications shall increase the share limitations contained in Section 4.1; and (v) take any action, before or after an Award is granted, that it deems advisable to comply with any applicable governmental regulatory
exemptions or approval or listing requirements of any such foreign securities exchange. Notwithstanding the foregoing, the Committee may not take any actions hereunder, and no Awards shall be granted, that would violate any applicable law. For
purposes of the Plan, all references to foreign laws, rules, regulations or taxes shall be references to the laws, rules, regulations and taxes of any applicable jurisdiction other than the United States or a political subdivision thereof. 

4. Shares Subject to the Plan; Grant Limitations.  

4.1. Aggregate Number of Shares Authorized for Issuance. Subject to any adjustment as provided in the Plan, the
aggregate number of Shares that may be made the subject of Awards granted under the Plan shall not exceed 4,300,000, no more than 2,150,000 of which may be granted as Incentive Share Options. Shares to be issued under the Plan may be, in whole or in
part, authorized but unissued Shares or issued Shares which shall have been reacquired by the Company and held by it as treasury shares. Any Shares related to an award granted under a Prior Plan that terminates by expiration, forfeiture,
cancellation or otherwise without the issuance of the Shares shall become available for Awards under this Plan. 
 4.2.
Individual Participant Limit. The aggregate number of Shares that may be the subject of an Award (other than Awards designated to be paid only in cash or the settlement of which is not based on a number of Shares) granted to an Eligible
Individual in any calendar year may not exceed 2,000,000. The Fair Market Value of an Award, as determined on the date of grant, designated to be paid only in cash, or the settlement of which is not based on a number of Shares, granted to an
Eligible Individual in any calendar year may not exceed $5,000,000. 

  
 11 

 4.3. Calculating Shares Available. The Committee shall determine the
appropriate method for determining the number of Shares available for grant under the Plan, subject to the following: 
 (a) Except as
provided in Section 4.3(b), in connection with the granting of an Option, a Share Appreciation Right (other than a Share Appreciation Right related to an Option), a Share Award, an Other Share-Based Award or a Substitute Award, or the granting
of an Award of Restricted Share Units, Restricted Shares, Performance-Based Restricted Shares or Performance Share Units, the number of Shares available under this Section 4 for the granting of further Awards shall be reduced by the number of
Shares in respect of which the Award is granted or denominated. 
 (b) In the event that an Award is granted that, pursuant to the terms of
the Award Agreement, cannot be settled in Shares, the aggregate number of Shares that may be made the subject of Awards under the Plan shall not be reduced. Any Shares related to an Award granted under the Plan that (i) terminates by
expiration, forfeiture, cancellation or otherwise without the issuance of the Shares, (ii) is settled in cash in lieu of Shares, or (iii) is exchanged with the Committee’s permission, prior to the issuance of Shares, for an Award
pursuant to which no Shares may be issued, shall again be available for Awards under the Plan. 
 (c) Any Shares tendered or repurchased
(i) to pay the Option Price of an Option granted under the Plan or (ii) to satisfy tax withholding obligations associated with an Award granted under the Plan, shall not become available again for grant under the Plan. 

5. Options.  

5.1. Authority of Committee. The Committee may grant Options to Eligible Individuals in accordance with the Plan, the
terms and conditions of the grant of which shall be set forth in an Award Agreement. Incentive Share Options may be granted only to Eligible Individuals who are employees of the Company or any of its Subsidiaries on the date the Incentive Share
Option is granted. 
 5.2. Option Price. The Option Price or the manner in which the exercise price is to be
determined for Shares under each Option shall be determined by the Committee and set forth in the Award Agreement; provided, however, that the exercise price per Share under each Option shall not be less than the greater of (i) the par value of
a Share and (ii) 100% of the Fair Market Value of a Share on the date the Option is granted (110% in the case of an Incentive Share Option granted to a Ten-Percent Shareholder). 

5.3. Maximum Duration. Options granted hereunder shall be for such term as the Committee shall determine; provided that
an Incentive Share Option shall not be exercisable after the expiration of ten (10) years from the date it is granted (five (5) years in the case of an Incentive Share Option granted to a Ten-Percent Shareholder) and a Nonqualified Share
Option shall not be exercisable after the expiration of ten (10) years from the date it is granted; provided, further, however, that unless the Committee provides otherwise, an Option (other than an Incentive Share Option)
may, upon the death of the Participant prior to the expiration of the Option, be exercised for up to one (1) year following the date of the Participant’s death, 

  
 12 

 
even if such period extends beyond ten (10) years from the date the Option is granted. The Committee may, subsequent to the granting of any Option, extend the period within which the Option
may be exercised (including following a Participant’s Termination), but in no event shall the period be extended to a date that is later than the earlier of the latest date on which the Option could have been exercised and the 10th anniversary
of the date of grant of the Option. 
 5.4. Vesting. The Committee shall determine and set forth in the applicable
Award Agreement the time or times at which an Option shall become vested and exercisable. To the extent not exercised, vested installments shall accumulate and be exercisable, in whole or in part, at any time after becoming exercisable, but not
later than the date the Option expires. The Committee may accelerate the exercisability of any Option or portion thereof at any time. 

5.5. Limitations on Incentive Share Options. To the extent that the aggregate Fair Market Value (determined as of the
date of the grant) of Shares with respect to which Incentive Share Options granted under the Plan and “incentive stock options” (within the meaning of Section 422 of the Code) granted under all other plans of the Company or its
Subsidiaries (in either case determined without regard to this Section 5.5) are exercisable by a Participant for the first time during any calendar year exceeds $100,000, such Incentive Share Options shall be treated as Nonqualified Share
Options. In applying the limitation in the preceding sentence in the case of multiple Option grants, unless otherwise required by applicable law, Options which were intended to be Incentive Share Options shall be treated as Nonqualified Share
Options according to the order in which they were granted such that the most recently granted Options are first treated as Nonqualified Share Options. 

5.6. Method of Exercise. The exercise of an Option shall be made only by giving notice in the form and to the Person
designated by the Company, specifying the number of Shares to be exercised and, to the extent applicable, accompanied by payment therefor and otherwise in accordance with the Award Agreement pursuant to which the Option was granted. The Option Price
for any Shares purchased pursuant to the exercise of an Option shall be paid in any or any combination of the following forms: (a) cash or its equivalent (e.g., a check) or (b) if permitted by the Committee, the transfer, either
actually or by attestation, to the Company of Shares that have been held by the Participant for at least six (6) months (or such lesser period as may be permitted by the Committee) prior to the exercise of the Option, such transfer to be upon
such terms and conditions as determined by the Committee or (c) in the form of other property as determined by the Committee. Any Shares transferred to the Company as payment of the exercise price under an Option shall be valued at their Fair
Market Value on the last business day preceding the date of exercise of such Option. In addition, (a) the Committee may provide for the payment of the Option Price through Share repurchase, as a result of which a number of Shares issued upon
exercise of an Option having a Fair Market Value equal to the Option Price would be repurchased, and (b) Options may be exercised through a registered broker-dealer pursuant to such cashless exercise procedures that are, from time to time,
deemed acceptable by the Committee. If requested by the Committee, the Participant shall deliver the Award Agreement evidencing the Option to the Company, which shall endorse thereon a notation of such exercise and return such Award Agreement to the
Participant. No fractional Shares (or cash in lieu thereof) shall be issued upon exercise of an Option and the number of Shares that may be purchased upon exercise shall be rounded to the nearest number of whole Shares. 

  
 13 

 5.7. Rights of Participants. No Participant shall be deemed for any
purpose to be the owner of any Shares subject to any Option unless and until (a) the Option shall have been exercised pursuant to the terms thereof, (b) the Company shall have issued and delivered Shares (whether or not certificated) to
the Participant, a securities broker acting on behalf of the Participant or such other nominee of the Participant and (c) the Participant’s name, or the name of his or her broker or other nominee, shall have been entered as a shareholder
of record on the books of the Company. Thereupon, the Participant shall have full voting, dividend and other ownership rights with respect to such Shares, subject to such terms and conditions as may be set forth in the applicable Award Agreement.

 6. Share Appreciation Rights.  

6.1. Grant. The Committee may grant Share Appreciation Rights to Eligible Individuals in accordance with the Plan, the
terms and conditions of which shall be set forth in an Award Agreement. A Share Appreciation Right may be granted (a) at any time if unrelated to an Option or (b) if related to an Option, either at the time of grant or at any time
thereafter during the term of the Option. 
 6.2. Terms; Duration. Share Appreciation Rights shall contain such terms
and conditions as to exercisability, vesting and duration as the Committee shall determine, but in no event shall they have a term of greater than ten (10) years; provided, however, that unless the Committee provides otherwise, a Share
Appreciation Right may, upon the death of the Participant prior to the expiration of the Award, be exercised for up to one (1) year following the date of the Participant’s death even if such period extends beyond ten (10) years from
the date the Share Appreciation Right is granted. The Committee may, subsequent to the granting of any Share Appreciation Right, extend the period within which the Share Appreciation Right may be exercised (including following a Participant’s
Termination), but in no event shall the period be extended to a date that is later than the earlier of the latest date on which the Share Appreciation Right could have been exercised and the 10th anniversary of the date of grant of the Share
Appreciation Right. 
 6.3. Amount Payable. Upon exercise of a Share Appreciation Right, the Participant shall be
entitled to receive an amount determined by multiplying (i) the excess of the Fair Market Value of a Share on the last business day preceding the date of exercise of such Share Appreciation Right over (a) with respect to a Share
Appreciation Right unrelated to an Option, the Fair Market Value of a Share on the date the Share Appreciation Right was granted or (b) with respect to a Share Appreciation Right related to an Option, the Option Price specified in the related
Option (in each case, the “Base Price”) by (ii) the number of Shares as to which the Share Appreciation Right is being exercised. Notwithstanding the foregoing, the Committee may limit in any manner the amount payable
with respect to any Share Appreciation Right by including such a limit in the Award Agreement evidencing the Share Appreciation Right at the time it is granted. 

6.4. Method of Exercise. Share Appreciation Rights shall be exercised by a Participant only by giving notice in the form
and to the Person designated by the Company, specifying the number of Shares with respect to which the Share Appreciation Right is being exercised. If requested by the Committee, the Participant shall deliver the Award Agreement evidencing the Share
Appreciation Right being exercised, which shall endorse thereon a notation of such exercise and return such Award Agreement to the Participant. 

  
 14 

 6.5. Form of Payment. Payment of the amount payable upon exercise of a
Share Appreciation Right may be made in the discretion of the Committee solely in whole Shares in a number determined at their Fair Market Value on the last business day preceding the date of exercise of the Share Appreciation Right, solely in cash
or in a combination of cash and Shares. If the Committee decides to make full payment in Shares and the amount payable results in a fractional Share, payment for the fractional Share will be made in cash. 

7. Dividend Equivalent Rights.  

The Committee may grant Dividend Equivalent Rights, either in tandem with an Award or as a separate Award, to Eligible Individuals in
accordance with the Plan. The terms and conditions applicable to each Dividend Equivalent Right shall be specified in the Award Agreement evidencing the Award. Amounts payable in respect of Dividend Equivalent Rights may be payable currently or, if
applicable, deferred until the lapsing of restrictions on such Dividend Equivalent Rights or until the vesting, exercise, payment, settlement or other lapse of restrictions on the Award to which the Dividend Equivalent Rights relate. In the event
that the amount payable in respect of Dividend Equivalent Rights is to be deferred, the Committee shall determine whether such amounts are to be held in cash or reinvested in Shares or deemed (notionally) to be reinvested in Shares. Dividend
Equivalent Rights may be settled in cash, Shares, other Awards, other property or a combination of the foregoing, in a single installment or multiple installments, as determined by the Committee. The terms and conditions of any grants of Dividend
Equivalent Rights as set forth in an Award Agreement shall comply with the Nonqualified Deferred Compensation Rules. 
 8. Restricted
Shares; Restricted Share Units.  
 8.1. Restricted Shares. The Committee may grant Restricted Shares
to Eligible Individuals in accordance with the Plan, the terms and conditions of which shall be set forth in an Award Agreement. Each Award Agreement shall contain such restrictions, terms and conditions as the Committee may, in its discretion,
determine and (without limiting the generality of the foregoing) such Award Agreements may require that an appropriate legend be placed on Share certificates. Shares in a book entry account in Participant’s name may have appropriate stop
transfer instructions to the account custodian, administrator or the Company’s corporate secretary as determined by the Committee in its sole discretion. Restricted Shares shall be subject to the terms and provisions set forth below in this
Section 8.1. 
 (a) Rights of Participant. Restricted Shares granted pursuant to an Award hereunder shall be issued in the name
of the Participant as soon as reasonably practicable after the Award is granted provided that the Participant has executed an Award Agreement evidencing the Award and any other documents which the Committee may require as a condition to the issuance
of such Shares. At the discretion of the Committee, Shares issued in connection with an Award of Restricted Shares may be held in escrow by an agent (which may be the Company) designated by the Committee. Unless the Committee determines otherwise
and as set forth in the Award Agreement, upon the issuance of the Shares, the Participant shall have all of the rights of a shareholder with respect to such Shares, including the right to vote the Shares and to receive all dividends or other
distributions paid or made with respect to the Shares. 

  
 15 

 (b) Terms and Conditions. Each Award Agreement shall specify the number of Restricted
Shares to which it relates, the conditions which must be satisfied in order for the Restricted Shares to vest and the circumstances under which the Award will be forfeited. 

(c) Delivery of Shares. Upon the lapse of the restrictions on Restricted Shares, the Committee shall take any action it determines is
necessary to evidence such lapse of restrictions which may include causing a share certificate or evidence of book entry Shares to be delivered to the Participant with respect to such Restricted Shares, free of all restrictions hereunder. 

(d) Treatment of Dividends. At the time Restricted Shares are granted, the Committee may, in its discretion, determine that the
payment to the Participant of dividends, or a specified portion thereof, declared or paid on such Shares by the Company shall be (i) deferred until the lapsing of the restrictions imposed upon such Shares and (ii) held by the Company for
the account of the Participant until such time. In the event that dividends are to be deferred, the Committee shall determine whether such dividends are to be reinvested in Shares (which shall be held as additional Restricted Shares) or held in
cash. Payment of deferred dividends in respect of Restricted Shares (whether held in cash or as additional Restricted Shares), shall be made upon the lapsing of restrictions imposed on the Shares in respect of which the deferred dividends were paid,
and any dividends deferred in respect of any Restricted Shares shall be forfeited upon the forfeiture of such Shares. 
 8.2.
Restricted Share Unit Awards. The Committee may grant Awards of Restricted Share Units to Eligible Individuals in accordance with the Plan, the terms and conditions of which shall be set forth in an Award Agreement. Each such Award Agreement
shall contain such restrictions, terms and conditions as the Committee may, in its discretion, determine. Awards of Restricted Share Units shall be subject to the terms and provisions set forth below in this Section 8.2. 

(a) Payment of Awards. Each Restricted Share Unit shall represent the right of the Participant to receive a payment upon vesting of
the Restricted Share Unit or on any later date specified by the Committee of an amount equal to the Fair Market Value of a Share as of the date the Restricted Share Unit becomes vested or such other date as determined by the Committee at the time
the Restricted Share Unit is granted. The Committee may, at the time a Restricted Share Unit is granted, provide a limitation on the amount payable in respect of each Restricted Share Unit. 

(b) Form of Payment. The Committee may provide for the settlement of Restricted Share Units in cash or with Shares having a Fair
Market Value equal to the amount to which the Participant has become entitled or a combination thereof. 

  
 16 

 9. Performance Awards.  

9.1. Performance Units and Performance Share Units. The Committee may grant Awards of Performance Units and/or
Performance Share Units to Eligible Individuals in accordance with the Plan, the terms and conditions of which shall be set forth in an Award Agreement. 

(a) Performance Units. Performance Units shall be denominated in a specified dollar amount and, contingent upon the attainment of
specified Performance Objectives within the Performance Cycle and such other vesting conditions as may be determined by the Committee (including without limitation, a continued employment requirement following the end of the applicable Performance
Cycle), represent the right to receive payment as provided in Sections 9.1(c) and (d) of the specified dollar amount or a percentage of the specified dollar amount depending on the level of Performance Objective attained; provided, however,
that the Committee may at the time a Performance Unit is granted specify a maximum amount payable in respect of a vested Performance Unit. 

(b) Performance Share Units. Performance Share Units shall be denominated in Shares and, contingent upon the attainment of specified
Performance Objectives within the Performance Cycle and such other vesting conditions as may be determined by the Committee, (including without limitation, a continued employment requirement following the end of the applicable Performance Cycle),
represent the right to receive payment as provided in Sections 9.1(c) and (d) of the Fair Market Value of a Share on the date the Performance Share Unit was granted, the date the Performance Share Unit became vested or any other date specified
by the Committee or a percentage of such amount depending on the level of Performance Objective attained; provided, however, that the Committee may at the time a Performance Share Unit is granted specify a maximum amount payable in respect of a
vested Performance Share Unit. 
 (c) Terms and Conditions; Vesting and Forfeiture. Each Award Agreement shall specify the number of
Performance Units or Performance Share Units to which it relates, the Performance Objectives and other conditions which must be satisfied in order for the of Performance Units or Performance Share Units to vest and the Performance Cycle within which
such Performance Objectives must be satisfied and the circumstances under which the Award will be forfeited; provided, however, that no Performance Cycle for Performance Units or Performance Share Units shall be less than one (1) year.

 (d) Payment of Awards. Subject to Section 9.3(c), payment to Participants in respect of vested Performance Share Units and
Performance Units shall be made as soon as practicable after the last day of the Performance Cycle to which such Award relates or at such other time or times as the Committee may determine that the Award has become vested. Such payments may be made
entirely in Shares valued at their Fair Market Value, entirely in cash, other Awards, other property or in any combination of the foregoing as the Committee in its discretion shall determine at any time prior to such payment; provided, however, that
if the Committee in its discretion determines to make such payment entirely or partially in Restricted Shares, the Committee must determine the extent to which such payment will be in Restricted Shares and the terms of such Restricted Shares at the
time the Award is granted. 
 9.2. Performance-Based Restricted Shares. The Committee may grant Performance-Based
Restricted Shares to Eligible Individuals in accordance with the Plan, the terms and conditions of which shall be set forth in an Award Agreement. Each Award Agreement may require that an appropriate legend be placed on Share certificates. Shares in
a book entry 

  
 17 

 
account in Participant’s name may have appropriate stop transfer instructions to the account custodian, administrator or the Company’s corporate secretary as determined by the Committee
in its sole discretion. Performance-Based Restricted Shares shall be subject to the following terms and provisions: 
 (a) Rights of
Participant. Performance-Based Restricted Shares shall be issued in the name of the Participant as soon as reasonably practicable after the Award is granted or at such other time or times as the Committee may determine; provided,
however, that no Performance-Based Restricted Shares shall be issued until the Participant has executed an Award Agreement evidencing the Award, and any other documents which the Committee may require as a condition to the issuance of such
Performance-Based Restricted Shares. At the discretion of the Committee, Shares issued in connection with an Award of Performance-Based Restricted Shares may be held in escrow by an agent (which may be the Company) designated by the Committee.
Unless the Committee determines otherwise and as set forth in the Award Agreement, upon issuance of the Shares, the Participant shall have all of the rights of a shareholder with respect to such Shares, including the right to vote the Shares and to
receive all dividends or other distributions paid or made with respect to the Shares. 
 (b) Terms and Conditions. Each Award
Agreement shall specify the number of Performance-Based Restricted Shares to which it relates, the Performance Objectives and other conditions which must be satisfied in order for the Performance-Based Restricted Shares to vest, the Performance
Cycle within which such Performance Objectives must be satisfied and the circumstances under which the Award will be forfeited; provided, however, that no Performance Cycle for Performance-Based Restricted Shares shall be less than one
(1) year. 
 (c) Treatment of Dividends. At the time Performance-Based Restricted Shares are granted, the Committee may, in its
discretion, determine that the payment to the Participant of dividends, or a specified portion thereof, declared or paid on Shares represented by such Award which have been issued by the Company to the Participant shall be (i) deferred until
the lapsing of the restrictions imposed upon such Performance-Based Restricted Shares and (ii) held by the Company for the account of the Participant until such time. In the event that dividends are to be deferred, the Committee shall determine
whether such dividends are to be reinvested in Shares (which shall be held as additional Performance-Based Restricted Shares) or held in cash. If deferred dividends are to be held in cash, there may be credited interest on the amount of the account
at such times and at a rate per annum as the Committee, in its discretion, may determine. Payment of deferred dividends in respect of Performance-Based Restricted Shares (whether held in cash or in additional Performance-Based Restricted Shares),
together with interest accrued thereon, if any, shall be made upon the lapsing of restrictions imposed on the Performance-Based Restricted Shares in respect of which the deferred dividends were paid, and any dividends deferred (together with any
interest accrued thereon) in respect of any Performance-Based Restricted Shares shall be forfeited upon the forfeiture of such Performance-Based Restricted Shares. 

(d) Delivery of Shares. Upon the lapse of the restrictions on Performance-Based Restricted Shares awarded hereunder, the Committee
shall take any action it determines is necessary to evidence such lapse of restrictions which may include causing a share certificate or evidence of book entry Shares to be delivered to the Participant with respect to such Performance-Based
Restricted Shares, free of all restrictions hereunder. 

  
 18 

 9.3. Performance Objectives. 

(a) Establishment. With respect to any Performance Awards intended to constitute Performance-Based Compensation, Performance
Objectives for Performance Awards shall be objective and otherwise meet the requirements of Section 162(m) of the Code and shall be expressed in terms of (1) earnings per share (diluted or basic), (2) operating income, (3) return
on equity or assets, (4) cash flow, (5) net cash flow, (6) cash flow from operations; (7) EBITDA, (8) revenues, (9) revenue ratios; (10) cost reductions; (11) cost ratios; (12) overall revenue or sales
growth, (13) expense reduction or management, (14) market position or share, (15) total shareholder return, (16) return on investment, (17) earnings before interest and taxes (EBIT), (18) net income, (19) return on
net assets, (20) economic value added, (21) shareholder value added, (22) cash flow return on investment, (23) net operating profit, (24) net operating profit after tax, (25) return on capital, (26) return on
invested capital, or (27) any combination of the foregoing. With respect to Performance Awards not intended to constitute Performance-Based Compensation, Performance Objectives may be based on any of the foregoing or any other performance
criteria as may be established by the Committee. Performance Objectives may be in respect of the performance of the Company, any of its Subsidiaries, any of its Divisions or any combination thereof. Performance Objectives may be absolute or relative
(to prior performance of the Company or to the performance of one or more other entities or external indices) and may be expressed in terms of a progression within a specified range. In the case of a Performance Award which is intended to constitute
Performance-Based Compensation, the Performance Objectives with respect to a Performance Cycle shall be established in writing by the Committee by the earliest of (i) the date on which the first quarter of the Performance Cycle has elapsed,
(ii) the date which is ninety (90) days after the commencement of the Performance Cycle, and (iii) such other date as may be required or permitted under Section 162(m) of the Code, and in any event while the performance relating
to the Performance Objectives remain “substantially uncertain.” 
 (b) Effect of Certain Events. The Committee may, at the
time the Performance Objectives in respect of a Performance Award are established, provide for the manner in which performance will be measured against the Performance Objectives to reflect the impact of specified events, including any one or more
of the following with respect to the Performance Cycle (i) the gain, loss, income or expense resulting from changes in accounting principles or tax laws that become effective during the Performance Cycle; (ii) the gain, loss, income or
expense reported publicly by the Company with respect to the Performance Cycle that are extraordinary or unusual in nature or infrequent in occurrence; (iii) the gains or losses resulting from and the direct expenses incurred in connection with
the disposition of a business or the sale of investments or non-core assets; (iv) the gain or loss from all or certain claims and/or litigation and all or certain insurance recoveries relating to claims or litigation; or (v) the impact of
investments or acquisitions made during the year or, to the extent provided by the Committee, any prior year. The events may relate to the Company as a whole or to any part of the Company’s business or operations, as determined by the Committee
at the time the Performance Objectives are established. Any adjustments based on the effect of certain events are to be determined in accordance with generally accepted accounting principles and standards,

  
 19 

 
unless another objective method of measurement is designated by the Committee and, in respect of Performance Awards intended to constitute Performance-Based Compensation, such adjustments shall
be permitted only to the extent permitted under Section 162(m) of the Code and the regulations promulgated thereunder without adversely affecting the treatment of any Performance Award as Performance-Based Compensation. 

(c) Determination of Performance. Prior to the vesting, payment, settlement or lapsing of any restrictions with respect to any
Performance Award, the Committee shall certify in writing that the applicable Performance Objectives have been satisfied to the extent necessary for such Award to qualify as Performance-Based Compensation. In respect of a Performance Award, the
Committee may, in its sole discretion, reduce the amount of cash paid or number of Shares to be issued or that have been issued and that become vested or on which restrictions lapse. The Committee shall not be entitled to exercise any discretion
otherwise authorized hereunder with respect to any Performance Award intended to constitute Performance-Based Compensation if the ability to exercise such discretion or the exercise of such discretion itself would cause the compensation attributable
to such Awards to fail to qualify as Performance-Based Compensation. 
 10. Share Awards, Other Share-Based Awards and Substitute
Awards.  
 10.1. Share Awards. The Committee may grant a Share Award to any Eligible Individual on
such terms and conditions as the Committee may determine in its sole discretion. Share Awards may be made as additional compensation for services rendered by the Eligible Individual or may be in lieu of cash or other compensation to which the
Eligible Individual is entitled from the Company. 
 10.2. Other Share-Based Awards. The Committee is authorized,
subject to limitations under applicable law, to grant to Eligible Individuals such other Awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Shares, as deemed by the
Committee to be consistent with the purposes of this Plan, including without limitation convertible or exchangeable debt securities, other rights convertible or exchangeable into Shares, purchase rights for Shares, Awards with value and payment
contingent upon performance of the Company or any other factors designated by the Committee, and Awards valued by reference to the book value of Shares or the value of securities of, or the performance of, specified Subsidiaries of the Company. The
Committee shall determine the terms and conditions of such Other Share-Based Awards. Shares delivered pursuant to an Award in the nature of a purchase right granted under this Section 10.2 shall be purchased for such consideration, paid for at
such times, by such methods, and in such forms, including, without limitation, cash, Shares, other Awards, or other property, as the Committee shall determine. Cash awards, as an element of or supplement to any other Award under this Plan, may also
be granted pursuant to this Section 10.2. 
 10.3. Substitute Awards. Awards may be granted under the Plan in
substitution for similar awards held by individuals who become Employees, Directors or Consultants as a result of a merger, consolidation, acquisition or other transaction by the Company or an Affiliate of another entity or the assets of another
entity. Notwithstanding anything contained in the Plan to the contrary, Substitute Awards that are Options or Share Appreciation Rights 

  
 20 

 
may have exercise prices less than the Fair Market Value of a Share on the date of the substitution if such substitution complies with the Nonqualified Deferred Compensation Rules and other
applicable laws and exchange rules. 
 11. Effect of Termination of Employment; Transferability. 

11.1. Termination. The Award Agreement evidencing the grant of each Award shall set forth the terms and conditions
applicable to such Award upon Termination, which shall be as the Committee may, in its discretion, determine at the time the Award is granted or at any time thereafter, and which terms and conditions may include provisions regarding the treatment of
an Award in the event of a Termination by reason of a divestiture of any Subsidiary or Division or other assets of the Company or any Subsidiary. 

11.2. Transferability of Awards and Shares. 

(a) Non-Transferability of Awards. Except as set forth in Section 11.2(c) or (d) or as otherwise permitted by the Committee
and as set forth in the applicable Award Agreement, either at the time of grant or at any time thereafter, no Award shall be (i) sold, transferred or otherwise disposed of, (ii) pledged or otherwise hypothecated or (iii) subject to
attachment, execution or levy of any kind; and any purported transfer, pledge, hypothecation, attachment, execution or levy in violation of this Section 11.2 shall be null and void. 

(b) Restrictions on Shares. The Committee may impose such restrictions on any Shares acquired by a Participant under the Plan as it
may deem advisable, including, without limitation, minimum holding period requirements, restrictions under applicable federal securities laws, restrictions under the requirements of any exchange or market upon which such Shares are then listed or
traded and restrictions under any blue sky or state securities laws applicable to such Shares. 
 (c) Transfers By Will or by Laws of
Descent or Distribution. Any Award may be transferred by will or by the laws of descent or distribution; provided, however, that (i) any transferred Award will be subject to all of the same terms and conditions as provided in the Plan and
the applicable Award Agreement; and (ii) the Participant’s estate or Beneficiary appointed in accordance with this Section 11.2(c) will remain liable for any withholding tax that may be imposed by any federal, state or local tax
authority. Each Participant may, from time to time, name one or more individuals (each, a “Beneficiary”) to whom any benefit under the Plan is to be paid or who may exercise any rights of the Participant under any Award
granted under the Plan in the event of the Participant’s death before he or she receives any or all of such benefit or exercises such Award. Each such designation shall revoke all prior designations by the same Participant, shall be in a form
prescribed by the Company, and will be effective only when filed by the Participant in writing with the Company during the Participant’s lifetime. In the absence of any such designation, benefits under Awards remaining unpaid at the
Participant’s death and rights to be exercised following the Participant’s death shall be paid to or exercised by the Participant’s estate. Notwithstanding anything to the contrary in this Section 11, an Incentive Share Option
shall not be transferable other than by will or the laws of descent and distribution. 
 (d) Qualified Domestic Relations Orders. An
Award may be transferred pursuant to a domestic relations order entered or approved by a court of competent jurisdiction upon delivery to the Company of written notice of such transfer and a certified copy of such order. 

  
 21 

 12. Adjustment upon Changes in Capitalization. 

12.1. In the event of a Change in Capitalization, the Committee shall conclusively determine the appropriate adjustments, if
any, to (a) the maximum number and class of Shares or other shares or securities with respect to which Awards may be granted under the Plan, (b) the maximum number and class of Shares or other shares or securities that may be issued upon
exercise of Incentive Share Options, (c) the maximum number and class of Shares or other shares or securities with respect to which Awards may be granted to any Eligible Individual in any calendar year, (d) the number and class of Shares
or other shares or securities, cash or other property which are subject to outstanding Awards granted under the Plan and the exercise price therefore, if applicable, and (e) the Performance Objectives. 

12.2. Any such adjustment in the Shares or other shares or securities (a) subject to outstanding Incentive Share Options
(including any adjustments in the exercise price) shall be made in such manner as not to constitute a modification as defined by Section 424(h)(3) of the Code and only to the extent otherwise permitted by Sections 422 and 424 of the Code,
(b) subject to outstanding Awards that are intended to qualify as Performance-Based Compensation shall be made in such a manner as not to adversely affect the treatment of the Awards as Performance-Based Compensation and (c) with respect
to any Award that is not subject to the Nonqualified Deferred Compensation Rules, in a manner that would not subject the Award to the Nonqualified Deferred Compensation Rules and, with respect to any Award that is subject to the Nonqualified
Deferred Compensation Rules, in a manner that complies with the Nonqualified Deferred Compensation Rules. 
 12.3. If, by
reason of a Change in Capitalization, pursuant to an Award, a Participant shall be entitled to, or shall be entitled to exercise an Option with respect to, new, additional or different shares or securities of the Company or any other corporation,
such new, additional or different shares shall thereupon be subject to all of the conditions, restrictions and performance criteria which were applicable to the Shares subject to the Award, prior to such Change in Capitalization. 

13. Effect of Certain Transactions. 

13.1. Except as otherwise provided in the applicable Award Agreement, in connection a Corporate Transaction, either: 

(a) outstanding Awards shall, unless otherwise provided in connection with the Corporate Transaction, continue following the Corporate
Transaction and shall be adjusted if and as provided for in the agreement or plan (in the case of a liquidation or dissolution) entered into or adopted in connection with the Corporate Transaction (the “Transaction
Agreement”), which may include, in the sole discretion of the Committee or the parties to the Corporate Transaction, the assumption or continuation of such Awards by, or the substitution for such

  
 22 

 
Awards of new awards of, the surviving, successor or resulting entity, or a parent or subsidiary thereof, with such adjustments as to the number and kind of shares or other securities or property
subject to such new awards, exercise prices and other terms of such new awards as the Committee or the parties to the Corporate Transaction shall agree, or 

(b) outstanding Awards shall terminate upon the consummation of the Corporate Transaction; provided, however, that vested Awards shall not be
terminated without: 
 (i) in the case of vested Options and Share Appreciation Rights (including those Options and Share
Appreciation Rights that would become vested upon the consummation of the Corporate Transaction), (1) providing the holders of affected Options and Share Appreciation Rights a period of at least fifteen (15) calendar days prior to the date
of the consummation of the Corporate Transaction to exercise the Options and Share Appreciation Rights, or (2) providing the holders of affected Options and Share Appreciation Rights payment (in cash or other consideration upon or immediately
following the consummation of the Corporate Transaction, or, to the extent permitted by the Nonqualified Deferred Compensation Rules, on a deferred basis) in respect of each Share covered by the Option or Share Appreciation Rights being cancelled an
amount equal to the excess, if any, of the per Share price to be paid or distributed to shareholders in the Corporate Transaction (the value of any non-cash consideration to be determined by the Committee in good faith) over the Option Price of the
Option or the Base Price of the Share Appreciation Rights, or 
 (ii) in the case vested Awards other than Options or Share
Appreciation Rights (including those Awards that would become vested upon the consummation of the Corporate Transaction), providing the holders of affected Awards payment (in cash or other consideration upon or immediately following the consummation
of the Corporate Transaction, or, to the extent permitted by the Nonqualified Deferred Compensation Rules, on a deferred basis) in respect of each Share covered by the Award being cancelled of the per Share price to be paid or distributed to
shareholders in the Corporate Transaction, in each case with the value of any non-cash consideration to be determined by the Committee in good faith. 

(c) For the avoidance of doubt, if the amount determined pursuant to clause (b)(i)(2) above is zero or less, the affected Option or Share
Appreciation Rights may be cancelled without any payment therefor. 
 13.2. Without limiting the generality of the foregoing
or being construed as requiring any such action, in connection with any such Corporate Transaction the Committee may, in its sole and absolute discretion, cause any of the following actions to be taken effective upon or at any time prior to any
Corporate Transaction (and any such action may be made contingent upon the occurrence of the Corporate Transaction): 
 (a) cause any or
all unvested Options and Share Appreciation Rights to become fully vested and immediately exercisable (as applicable) and/or provide the holders of such Options and Share Appreciation Rights a reasonable period of time prior to the date of the
consummation of the Corporate Transaction to exercise the Options and Share Appreciation Rights; 

  
 23 

 (b) with respect to unvested Options and Share Appreciation Rights that are terminated in
connection with the Corporate Transaction, provide to the holders thereof a payment (in cash and/or other consideration) in respect of each Share covered by the Option or Share Appreciation Right being terminated in an amount equal to all or a
portion of the excess, if any, of the per Share price to be paid or distributed to shareholders in the Corporate Transaction (the value of any non-cash consideration to be determined by the Committee in good faith) over the Option Price of the
Option or the Base Price of the Share Appreciation Right, which may be paid in accordance with the vesting schedule of the Award as set forth in the applicable Award Agreement, upon the consummation of the Corporate Transaction or, to the extent
permitted by the Nonqualified Deferred Compensation Rules, at such other time or times as the Committee may determine; 
 (c) with respect
to unvested Awards (other than Options or Share Appreciation Rights) that are terminated in connection with the Corporate Transaction, provide to the holders thereof a payment (in cash and/or other consideration) in respect of each Share covered by
the Award being terminated in an amount equal to all or a portion of the per Share price to be paid or distributed to shareholders in the Corporate Transaction (the value of any non-cash consideration to be determined by the Committee in good
faith), which may be paid in accordance with the vesting schedule of the Award as set forth in the applicable Award Agreement, upon the consummation of the Corporate Transaction or, to the extent permitted by the Nonqualified Deferred Compensation
Rules, at such other time or times as the Committee may determine. 
 13.3. Notwithstanding anything to the contrary in this
Plan, 
 (a) the Committee may, in its sole discretion, provide in the Transaction Agreement or otherwise for different treatment for
different Awards or Awards held by different Participants and, where alternative treatment is available for a Participant’s Awards, may allow the Participant to choose which treatment shall apply to such Participant’s Awards. 

(b) any action permitted under this Section 13 may be taken without the need for the consent of any Participant. To the extent a
Corporate Transaction also constitutes a Change in Capitalization and action is taken pursuant to this Section 13 with respect to an outstanding Award, such action shall conclusively determine the treatment of such Award in connection with such
Corporate Transaction notwithstanding any provision of the Plan to the contrary (including Section 12). 
 (c) to the extent the
Committee chooses to make payments to affected Participants pursuant to Section 13.1(b)(i)(2) or (b)(ii) or Section 13.2(b) or (c) above, any Participant who has not returned any letter of transmittal, release, escrow, indemnity or
similar acknowledgment or agreement that the Committee requires be signed in connection with such payment within the time period established by the Committee for returning any such letter or similar acknowledgement or agreement shall forfeit his or
her right to any payment and his or her associated Awards may be cancelled without any payment therefor. 

  
 24 

 13.4. Effect of Change in Control. Any specific terms applicable to an
Award in the event of a Change in Control and not otherwise provided in the Plan shall be set forth in the applicable Award Agreement. 

14. Interpretation. 

14.1. Section 16 Compliance. The Plan is intended to comply with Rule 16b-3 promulgated under the Exchange Act and
the Committee shall interpret and administer the provisions of the Plan or any Award Agreement in a manner consistent therewith. Any provisions inconsistent with such Rule shall be inoperative and shall not affect the validity of the Plan. 

14.2. Compliance with Section 409A and Section 457A. All Awards granted under the Plan are intended to be
exempt from the Nonqualified Deferred Compensation Rules or, if subject to the Nonqualified Deferred Compensation Rules, to be administered, operated and construed in compliance with the Nonqualified Deferred Compensation Rules. Notwithstanding this
or any other provision of the Plan to the contrary, the Committee may amend the Plan or any Award granted hereunder in any manner or take any other action that it determines, in its sole discretion, is necessary, appropriate or advisable (including
replacing any Award) to cause the Plan or any Award granted hereunder to comply with the Nonqualified Deferred Compensation Rules or to not be subject to the Nonqualified Deferred Compensation Rules. Any such action, once taken, shall be deemed to
be effective from the earliest date necessary to avoid a violation of the Nonqualified Deferred Compensation Rules and shall be final, binding and conclusive on all Eligible Individuals and other individuals having or claiming any right or interest
under the Plan. Neither this Section 14.2 nor any other provision of the Plan is or contains a representation as to any Participant regarding the tax consequences of the grant, vesting or sale of any Award (or the Shares underlying such Award)
granted hereunder, and should not be interpreted as such. Subject to any other restrictions or limitations contained herein, in the event that a “specified employee” (as defined under the Nonqualified Deferred Compensation Rules) becomes
entitled to a payment under an Award that provides for a deferral of compensation under the Nonqualified Deferred Compensation Rules on account of a “separation from service” (as defined under the Nonqualified Deferred Compensation Rules),
to the extent required by the Code, such payment shall not occur until the date that is six months plus one day from the date of such separation from service. Any amount that is otherwise payable within the six-month period described herein will be
aggregated and paid in a lump sum without interest. 
 14.3. Section 162(m). Unless otherwise determined by the
Committee at the time of grant, each Option, Share Appreciation Right and Performance Award granted to an Eligible Individual who is also a Covered Employee is intended to be Performance-Based Compensation. Unless otherwise determined by the
Committee, if any provision of the Plan or any Award Agreement relating to an Award that is intended to be Performance-Based Compensation does not comply or is inconsistent with Section 162(m) of the Code or the regulations promulgated
thereunder (including IRS Regulation § 1.162-27), such provision shall be construed or deemed amended to the extent necessary to conform to such requirements, and no provision shall be deemed to confer upon the Committee discretion to
increase the amount of compensation otherwise payable in connection with any such Award upon the attainment of the Performance Objectives. 

  
 25 

 15. Term; Plan Termination and Amendment of the Plan; Modification of Awards. 

15.1. Term. The Plan shall terminate on the Plan Termination Date and no Award shall be granted after that date. The
applicable terms of the Plan and any terms and conditions applicable to Awards granted prior to the Plan Termination Date shall survive the termination of the Plan and continue to apply to such Awards. 

15.2. Plan Amendment or Plan Termination. Prior to the Plan Termination Date, the Board may earlier terminate the Plan
and the Board may at any time and from time to time amend, modify or suspend the Plan; provided, however, that: 
 (a) no such amendment,
modification, suspension or termination shall impair or adversely alter any Awards theretofore granted under the Plan, except with the consent of the Participant, nor shall any amendment, modification, suspension or termination deprive any
Participant of any Shares which he or she may have acquired through or as a result of the Plan; and 
 (b) to the extent necessary under
any applicable law, regulation or exchange requirement, no other amendment shall be effective unless approved by the shareholders of the Company in accordance with applicable law, regulation or exchange requirement. 

For purposes of clarity, any adjustments made to Awards pursuant to Section 12 or 13 shall be deemed not to impair or adversely alter Awards or deprive
any Participant of Shares and therefore may be made without the consent of affected Participants. 
 15.3. Modification of
Awards. No modification of an Award shall adversely alter or impair any rights or obligations under the Award without the consent of the Participant. 

16. Non-Exclusivity of the Plan. 

The adoption of the Plan by the Board shall not be construed as amending, modifying or rescinding any previously approved incentive
arrangement or as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including, without limitation, the granting of options otherwise than under the Plan, and such arrangements may
be either applicable generally or only in specific cases. 
 17. Limitation of Liability. 

As illustrative of the limitations of liability of the Company, but not intended to be exhaustive thereof, nothing in the Plan shall be
construed to: 
 (a) give any person any right to be granted an Award other than at the sole discretion of the Committee; 

  
 26 

 (b) limit in any way the right of the Company or any of its Subsidiaries to terminate the
employment of or the provision of services by any person at any time; 
 (c) be evidence of any agreement or understanding, express or
implied, that the Company will pay any person at any particular rate of compensation or for any particular period of time; or 
 (d) be
evidence of any agreement or understanding, express or implied, that the Company will employ any person at any particular rate of compensation or for any particular period of time. 

18. Regulations and Other Approvals; Governing Law. 

18.1. Governing Law. Except as to matters of United States federal law, the Plan and the rights of all persons claiming
hereunder shall be construed and determined in accordance with the laws of the State of Delaware without giving effect to conflicts of laws principles thereof. 

18.2. Compliance with Law. 

(a) The obligation of the Company to sell or deliver Shares with respect to Awards granted under the Plan shall be subject to all applicable
laws, rules and regulations, including all applicable federal and state securities laws, and the obtaining of all such approvals by governmental agencies as may be deemed necessary or appropriate by the Committee. 

(b) The Board may make such changes to the Plan as may be necessary or appropriate to comply with the rules and regulations of any government
authority or to obtain for Eligible Individuals granted Incentive Share Options the tax benefits under the applicable provisions of the Code and regulations promulgated thereunder. 

(c) Each grant of an Award and issuance of Shares or other settlement of an Award is subject to compliance with all applicable federal, state
and foreign law. Further, if at any time the Committee determines, in its discretion, that the listing, registration or qualification of Shares issuable pursuant to the Plan is required by any securities exchange or under any federal, state or
foreign law, or that the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in connection with, the grant of an Award or the issuance of Shares, no Awards shall be or shall be deemed to be granted
or payment made or Shares issued, in whole or in part, unless listing, registration, qualification, consent or approval has been effected or obtained free of any conditions that are not acceptable to the Committee. Any person exercising an Option or
receiving Shares in connection with any other Award shall make such representations and agreements and furnish such information as the Board or Committee may request to assure compliance with the foregoing or any other applicable legal requirements.

 18.3. Transfers of Plan Acquired Shares. Notwithstanding anything contained in the Plan or any Award Agreement to
the contrary, in the event that the disposition of Shares acquired pursuant to the Plan is not covered by a then current registration statement under the Securities Act and is not otherwise exempt from such registration, such Shares shall be

  
 27 

 
restricted against transfer to the extent required by the Securities Act and Rule 144 or other regulations promulgated thereunder. The Committee may require any individual receiving Shares
pursuant to an Award granted under the Plan, as a condition precedent to receipt of such Shares, to represent and warrant to the Company in writing that the Shares acquired by such individual are acquired without a view to any distribution thereof
and will not be sold or transferred other than pursuant to an effective registration thereof under the Securities Act or pursuant to an exemption applicable under the Securities Act or the rules and regulations promulgated thereunder. The
certificates evidencing any of such Shares shall be appropriately amended or have an appropriate legend placed thereon to reflect their status as restricted securities as aforesaid. 

19. Miscellaneous. 

19.1. Forfeiture Events and Clawback. The Committee may specify in an Award Agreement that the Participant’s
rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain specified events or as required by law, in addition to any otherwise applicable forfeiture
provisions that apply to the Award. In addition, the Plan is subject to any written clawback policies the Company, with the approval of the Board, may adopt. Any such policy may subject a Participant’s Awards and amounts paid or realized with
respect to Awards under the Plan to reduction, cancellation, forfeiture or recoupment if certain specified events or wrongful conduct occur, including but not limited to an accounting restatement due to the Company’s material noncompliance with
financial reporting regulations or other events or wrongful conduct specified in any such clawback policy adopted to conform to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and rules promulgated thereunder by the Securities
and Exchange Commission and that the Company determines should apply to the Plan. 
 19.2. Multiple Agreements. The
terms of each Award may differ from other Awards granted under the Plan at the same time or at some other time. The Committee may also grant more than one Award to a given Eligible Individual during the term of the Plan, either in addition to or,
subject to Section 3.5, in substitution for one or more Awards previously granted to that Eligible Individual. 
 19.3.
Withholding of Taxes. 
 (a) The Company or any of its Subsidiaries may withhold from any payment of cash to a Participant or other
person under the Plan an amount sufficient to cover any withholding taxes which may become required with respect to such payment or take any other action it deems necessary to satisfy any income or other tax withholding requirements as a result of
the grant, exercise or settlement of any Award under the Plan. The Company or any of its Subsidiaries shall have the right to require the payment of any such taxes and require that any person furnish information deemed necessary by the Company or
any of its Subsidiaries to meet any tax reporting obligation as a condition to exercise or before making any payment or the issuance or release of any Shares pursuant to an Award. The authority provided to the Company and any of its Subsidiaries
under this Section 19.3 shall include the authority to, in the discretion of the Committee with respect to any Participant who is subject to Rule 16b-3 (which 

  
 28 

 
Committee, for these purposes, shall be comprised of two or more Nonemployee Directors or the full Board and which such discretion may not be delegated to management), purchase (subject to the
requirements of Bermuda law), sell or receive Shares or other property and to make cash payments in respect thereof in satisfaction of a Participant’s tax obligations, either on a mandatory or elective basis; provided, that if such tax
obligations are satisfied through the purchase of Shares that were issued to the Participant pursuant to an Award (or through the surrender of Shares by the Participant to the Company), the number of Shares that may be so purchased (or surrendered)
shall be limited to the number of Shares that have an aggregate Fair Market Value on the date of purchase equal to the aggregate amount of such tax liabilities determined based on the applicable minimum statutory withholding rates for federal,
state, foreign and/or local tax purposes, including payroll taxes, as determined by the Committee. If specified in an Award Agreement at the time of grant or otherwise approved by the Committee, a Participant may, in satisfaction of his or her
obligation to pay withholding taxes in connection with the exercise, vesting or other settlement of an Award, elect to (i) make a cash payment to the Company, (ii) permit the purchase (subject to the requirements of Bermuda law) of a
portion of the Shares that have become vested or (iii) surrender Shares owned by the Participant prior to the exercise, vesting or other settlement of an Award, in each case having an aggregate Fair Market Value equal to the withholding taxes.

 (b) If a Participant makes a disposition, within the meaning of Section 424(c) of the Code and regulations promulgated thereunder,
of any Share or Shares issued to such Participant pursuant to the exercise of an Incentive Share Option within the two-year period commencing on the day after the date of the grant or within the one-year period commencing on the day after the date
of transfer of such Share or Shares to the Participant pursuant to such exercise, the Participant shall, within ten (10) days of such disposition, notify the Company thereof, by delivery of written notice to the Company at its principal
executive office. 
 19.4. Plan Unfunded. The Plan shall be unfunded. Except for reserving a sufficient number of
authorized Shares to the extent required by law to meet the requirements of the Plan, the Company shall not be required to establish any special or separate fund or to make any other segregation of assets to assure payment of any Award granted under
the Plan. 
 19.5. Replacement Awards. The equity awards that are being cancelled by Nabors Industries Ltd. (the
“Cancelled Awards”) and replaced by the Company (the “Replacement Awards”) pursuant to Section 2.4(a) and (b) of the Merger Agreement shall be granted under the Plan as Substitute Awards,
which, for the avoidance of doubt, shall reduce the aggregate number of Shares authorized for issuance under Section 4.1. Notwithstanding anything contained herein to the contrary, each Replacement Award shall (a) be subject to the terms
and conditions of the Plan, except to the extent that the Plan and the terms and conditions of the applicable Nabors Equity Plan that governed the Cancelled Award to which the Replacement Award relates conflict, in which case, the provisions of the
applicable Nabors Equity Plan shall control solely with respect to the conflict and (b) be subject to a new Award Agreement evidencing the Replacement Award that is intended to provide for the same terms and conditions as were applicable to the
Cancelled Award in accordance with Section 2.4(a) and (b) of the Merger Agreement; provided, however, that in the event of a conflict between the terms and conditions of the Award Agreement evidencing the Replacement Award and the award
agreement that governed the Cancelled Award, the provisions of the award agreement 

  
 29 

 
that governed the Cancelled Award shall control solely with respect to the conflict. “Nabors Equity Plan” means, as applicable, the Nabors Industries, Inc. 1996 Stock
Plan, the Nabors Industries Ltd. Amended and Restated 2003 Employee Stock Plan or the Nabors Industries Ltd. 2013 Stock Plan. 

19.6. Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the Plan or any Award. The
Committee shall determine whether cash, other Awards or other property shall be issued or paid in lieu of such fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise eliminated. 

[Remainder of page intentionally left blank.] 

  
 30 

 EXHIBIT A 

C&J INTERNATIONAL MIDDLE EAST FZCO 

PHANTOM EQUITY ARRANGEMENT 

UNDER THE C&J ENERGY SERVICES 2015 LONG TERM INCENTIVE PLAN 

Sponsored by C&J Energy Services 

I. INTRODUCTION 
 1.1
Name and Purpose of the Arrangement. The name of this arrangement is the C&J International Middle East FZCO Phantom Equity Arrangement, which is a sub-plan of the C&J Energy Services 2015 Long Term Incentive Plan (the
“Plan”). The Parent is establishing this Arrangement on behalf of the Company in order to provide selected employees with the opportunity to receive phantom equity interests of the Company. Benefits provided under this
Arrangement are not intended to comprise any portion of a base wage for a Participant, but are instead intended to serve as discretionary incentive awards. 

1.2 Status of Arrangement. The Arrangement is intended to be an unfunded discretionary incentive bonus arrangement. The Arrangement is
not an employee benefit plan within the meaning of section 3(3) of ERISA. 
 1.3 Interaction with the Plan. This Arrangement is
intended to constitute a sub-plan of the Plan. If there is any conflict between this Arrangement and the Plan, the Plan will control. Where provisions of this Arrangement and the Plan may be read together without conflict, the terms of this
Arrangement will control. Capitalized terms used but not otherwise defined herein shall have the meanings given such terms in the Plan. 

II. DEFINITIONS 
 Whenever
used herein, the following terms have the meanings set forth below, unless a different meaning is clearly required by the context: 
 2.1
“Arrangement.” Arrangement means the C&J International Middle East FZCO Phantom Equity Arrangement, as amended from time to time. 

2.2 “Board.” Board means the Board of Directors of the Parent. 

2.3 “C&J B.V.” C&J B.V. means C&J International B.V., the majority shareholder in the Company. 

2.4 “Change in Control.” Change in Control means, (a) with respect to the Parent, a “Change in Control”
as defined in the Plan, as may be amended from time to time, or (b) with respect to the Company, the occurrence of one or more of the following events: (i) any “person” or “group” within the meaning of those terms as
used in Sections 13(d) and 14(d)(2) of the Exchange Act, other than shareholders of the Company, or any affiliate of the Company, shall 

  
 A-1 

 
become the beneficial owner, by way of merger, consolidation, recapitalization, reorganization or otherwise, of 50% or more of the voting power of the voting securities of the Company;
(ii) the shareholders of the Company approve, in one transaction or a series of transactions, a plan of complete liquidation of the Company; (iii) the sale or other disposition by the Company of all or substantially all of its assets in
one or more transactions to any Person other than an affiliate of the Company; (iv) C&J B.V. ceases to be the majority shareholder in the Company, unless C&J B.V. has conveyed, sold or otherwise transferred its Company interests to the
Company, the Parent or any affiliate of C&J B.V., the Company or the Parent; or (v) any other event specified as a “Change of Control” in an applicable Participation Agreement. Notwithstanding the above, a “Change in
Control” shall not occur unless that Change in Control also constitutes a “change in the ownership of a corporation,” a “change in the effective control of a corporation,” or a “change in the ownership of a substantial
portion of a corporation’s assets,” in each case, within the meaning of the Nonqualified Deferred Compensation Rules. 
 2.5
“Code.” Code means the Internal Revenue Code of 1986, as amended from time to time. Reference to any section or subsection of the Code includes reference to any comparable or succeeding provisions of any legislation which
amends, supplements or replaces such section or subsection. 
 2.6 “Company.” Company means C&J International
Middle East FZCO, established as a free zone company (“FZCO”) in the Jebel Ali Free Zone (“JAFZA”) on June 11, 2013. 

2.7 “Company Unit.” Each Company Unit will be one share of the Company. 

2.8 “Covered Employee” means an Eligible Person who is likely to be a “covered employee” within the meaning
of Section 162(m) of the Code and the regulations thereunder. The foregoing notwithstanding, because the Plan Administrator cannot determine with certainty whether a given Eligible Person will be a Covered Employee with respect to a fiscal year
that has not yet been completed, the term Covered Employee as used herein shall mean only a Person designated by the Plan Administrator, at the time of grant of a performance-based Phantom Unit, who is likely to be a Covered Employee with respect to
that fiscal year. 
 2.9 “Disability.” Disability means: (a) a physical or mental impairment of sufficient
severity that, in the opinion of the Plan Administrator, (i) means the Participant is unable to continue performing the duties assigned to the Participant prior to such impairment or (ii) the Participant’s condition entitles him to
disability benefits under any insurance or employee benefit plan of the Company or its Subsidiaries, and (b) the impairment or condition is cited by the Company or its Subsidiary as the reason for the Participant’s termination. 

2.10 “Eligible Person.” Eligible Person means any employee of the Parent, the Company or a Subsidiary of the Parent or
the Company, who is designated by the Board or the Plan Administrator to be eligible to participate in the Arrangement. 
 2.11
“Employment Contract.” An Employment Contract is any employment agreement, severance or change in control agreement entered into by the Participant and either the Company, the Parent or a Subsidiary of the Company or the Parent,
as applicable. 

  
 2 

 2.12 “Grant Date.” Grant Date means the date set forth on the
Participation Agreement delivered to a Participant.  
 2.13 “ERISA.” ERISA means the Employee Retirement
Income Security Act of 1974, as amended from time to time. Reference to any section or subsection of ERISA includes reference to any comparable or succeeding provisions of any legislation which amends, supplements, or replaces such section or
subsection. 
 2.14 “Nonqualified Deferred Compensation Rules” means the limitations or requirements of
Section 409A and/or 457A of the Code, as amended from time to time, including the guidance and regulations promulgated thereunder and successor provisions, guidance and regulations thereto. 

2.15 “Parent.” Parent means Nabors Red Lion Limited, a Bermuda exempted company, which will be renamed C&J Energy
Services Ltd. following the consummation of the transactions contemplated by the Merger Agreement. 
 2.16
“Participant.” Participant means any individual who participates in the Arrangement in accordance with Article III. 

2.17 “Participation Agreement.” Participation Agreement means the agreement delivered to a Participant informing the
Participant of the number of Phantom Units awarded to the Participant and the Grant Date of such Phantom Units, as well as any other terms and conditions that may be applicable to the Phantom Units in addition to those set forth in this Arrangement.
 
 2.18 “Person.” Person means an individual, a partnership, a limited liability company, a corporation, an
association, a joint share company, a trust, a joint venture, an unincorporated organization, and a governmental entity or any department, agency or political subdivision thereof. 

2.19 “Phantom Interest Account” or “Account.” Phantom Interest Account means, for each Participant,
the account established for his benefit under Section 4.1(a). 
 2.20 “Phantom Units.” A Phantom Unit means a
notional Company Unit granted under this Arrangement. 
 2.21 “Plan Administrator.” Plan Administrator means
the person, persons or entity designated by the Parent to administer the Arrangement. If no such person or entity is serving as Plan Administrator at any time, the Board shall be the Plan Administrator. 

2.22 “Qualified Member” means a member of the Board who is a “nonemployee director” within the meaning of
Rule 16b-3(b)(3) and an “outside director” within the meaning of Treasury Regulation 1.162-27 under Section 162(m) of the Code.  

2.23 “Separation.” Separation means the termination of a Participant’s employment with the Parent, the Company or
Subsidiaries of the Parent or Company for any or no reason which also qualifies as a “separation from service” pursuant to the Nonqualified Deferred Compensation Rules. 

2.24 “Subsidiary.” Subsidiary means, with respect to the Parent or the Company, any corporation or other entity of
which a majority of the voting power of the voting equity securities or equity interest is owned, directly or indirectly, by the Company. 

  
 3 

 III. PARTICIPATION 

3.1 Commencement of Participation. Any Eligible Person who is selected by the Plan Administrator to participate in the Arrangement
shall become a Participant on the Grant Date set forth in the Participant’s Participation Agreement. 
 3.2 Continued
Participation. A Participant in the Arrangement shall continue to be a Participant so long as any amount remains credited to his Account. Following distribution of a Participant’s Account pursuant to Section 6.2, or forfeiture pursuant
to Section 5.3, the Participant’s Account will be extinguished and such individual will no longer be a Participant in the Arrangement. 

IV. ACCOUNTS, CONTRIBUTIONS AND DEDUCTIONS 

4.1 Per Participant Limitations. In any calendar year in which this Arrangement is in effect, Covered Employees may not be granted
Phantom Units that have an aggregate value of more than $5,000,000, as calculated on each applicable Grant Date during that calendar year.  

4.2 Phantom Interest Accounts. The Plan Administrator shall establish a Phantom Interest Account for each Participant, which may
include sub-accounts as the Plan Administrator deems necessary in order to properly account for different awards granted under the Arrangement. The Phantom Interest Account will be a bookkeeping account and will be credited with the number of
Phantom Units awarded to a Participant as set forth in the Participant’s Participation Agreements.  
 4.3 Maintenance of and
Allocations to Phantom Interest Accounts. The Plan Administrator shall maintain the Phantom Interest Accounts as if each Phantom Unit were a Company Unit. The Board shall have the sole discretion to determine the fair market value of a Company
Unit at any time, and the Plan Administrator shall allocate the gains, losses and deductions of the Company to a Participant’s Account as if each Phantom Unit were a Company Unit. Any action taken or determination made by the Board or the Plan
Administrator pursuant to this Section 4.2 will be in the sole discretion of the Board or the Plan Administrator and will be final and conclusive. Amounts credited to a Participant’s Phantom Interest Account shall not bear interest over
time.  
 V. VESTING AND FORFEITURE 

5.1 Vesting. Phantom Units shall be “unvested” Phantom Units until such units become “vested” Phantom Units
pursuant to this Section 5.1 and/or 5.2, as applicable. Phantom Units shall generally become vested on the first to occur of (i) a Change in Control, or (ii) the five (5) year anniversary of the Grant Date. 

  
 4 

 5.2 Additional Performance Vesting.  

(a) Performance Awards for Covered Employees. In the event that the Plan Administrator determines that a Phantom Unit granted to an
Eligible Person who is a Covered Employee should be designed as “performance-based compensation” under Section 162(m) of the Code, the Phantom Unit will be subject to pre-established Performance Objective(s) in addition to the vesting
schedule set forth in Section 5.1 above. Such Performance Objective(s) shall be set forth in the Participant’s Participation Agreement on the Grant Date of the award. Phantom Units granted with such Performance Objectives will be deemed to
be a “Performance Unit,” and thus a “Performance Award” under the Plan. 
 (b)
Performance Objectives. Performance Objectives shall be objective and shall otherwise meet the requirements of Section 162(m) of the Code and the regulations thereunder (including Treasury Regulation §1.162-27 and successor
regulations thereto), including all requirements for Performance Objectives associated with a Performance Award intended to constitute Performance-Based Compensation in Section 9 of the Plan. 

(c) Business Criteria. All business criteria chosen for any Performance Objective shall be taken from the pre-approved list set forth
in Section 9.3(a) of the Plan, which may be adjusted in accordance with Section 9.3(b). 
 (d) Performance Cycle.
Achievement of the Performance Objective(s) shall be measured over a Performance Cycle of up to five years, as specified in the Participation Agreement by the Plan Administrator. Performance Objectives shall be established not later than 90 days
after the beginning of any Performance Cycle applicable to the Performance Award, or at such other date as may be required or permitted for “performance-based compensation” under section 162(m) of the Code. 

5.3 Forfeiture and Accelerated Vesting.  

(a) Separation Generally. Unless otherwise set forth in a Participant’s Participation Agreement or an Employment Contract, if a
Participant incurs a Separation for any reason other than due to his or her death or Disability prior to the vesting of the Participant’s Phantom Units pursuant to Sections 5.1 and/or 5.2, as applicable, the Participant shall immediately
forfeit any and all rights to the Phantom Units credited to the Participant’s Phantom Interest Account, whether vested or unvested. 

(b) Separation due to Death or Disability. Unless otherwise set forth in a Participant’s Participation Agreement or an Employment
Contract, if a Participant incurs a Separation due to his or her death or Disability prior to the vesting of the Participant’s Phantom Units pursuant to Section 5.1 and/or 5.2, a pro-rata percentage of the Participant’s Phantom Units
shall be deemed to be vested on the date of his or her Separation. For each full calendar year of service the Participant has provided to the Company or its Subsidiaries from the Grant Date to the date of Separation, the Participant will become
vested in twenty percent (20%) of his or her Phantom Units. 
 (c) Participants other than Covered Employees with Employment
Contracts. Notwithstanding Sections 5.3(a) and (b), in the event that a Participant other than a Covered 

  
 5 

 
Employee is a party to an active Employment Contract at the time of his or her Separation for any reason, to the extent that the Employment Contract contains provisions relating to the treatment
of equity compensation awards in the event of a Separation, such provisions in the Employment Contract will also be deemed to apply, as applicable, to the vesting or forfeiture of the Participant’s Phantom Interest Account upon a Separation.
For the avoidance of doubt, (i) if the Employment Contract is silent regarding the treatment of equity compensation awards upon any particular type of Separation (e.g. terminations of employment for cause, or terminations due to a disability),
then Sections 5.3(a) and (b) shall govern the treatment of the Participant’s Phantom Interest Account upon Separation, and (ii) for purposes of determining whether a Change in Control has occurred, the definition in this Arrangement
shall control rather than any definition found within the Employment Contract. 
 VI. DISTRIBUTION OF FUNDS 

6.1 Form of Payment. At the time of distribution as provided in Section 6.2, the Parent shall pay to the Participant a single
lump-sum cash payment from the general assets of the Parent.  
 6.2 Time of Distribution. No later than sixty (60) days
following the applicable vesting date of Phantom Units as set forth in Section 5, any vested amounts credited to the Participant’s Phantom Interest Account attributable to the Phantom Units that became vested upon such vesting date will be
distributed to the Participant.  
 6.3 Calculation of Phantom Interest Accounts.  

(a) Generally. The amount of the cash payment to be distributed pursuant to the Participant’s Phantom Interest Account will be
calculated by the Plan Administrator at the time of the vesting event. The Plan Administrator will multiply the number of vested Phantom Units that have been credited to the Participant’s Phantom Interest Account by the fair market value of a
Company Unit on the date of the vesting event. Any currency conversions shall be calculated at the sole discretion of the Plan Administrator. 

(b) Performance Awards. The Plan Administrator must certify in writing, prior to payment of a Participant’s Phantom Interest
Account, that all applicable Performance Objectives assigned to any Performance Awards have been properly achieved. The Plan Administrator may, in its discretion, reduce the amount of a settlement otherwise to be made in connection with a vested
Performance Award, but may not exercise discretion to increase any such amount payable to a Covered Employee in respect of a Performance Award. 

(a) Distribution Equivalent Rights. At the time that the Phantom Interest Account becomes payable pursuant to Section 6.2, the
Plan Administrator will have the discretion to determine whether an additional payment will be provided to the Participant that is attributable to distributions that may have been paid with respect to the Company Units underlying some or all of the
Phantom Units credited to the Participant’s Phantom Interest Account during the time that such Phantom Units were unvested. In the event that the Plan Administrator determines that such an additional payment will be provided to the Participant,
the payment will be paid in a lump sum cash payment at the same time that the Participant receives the distribution of his or her Phantom Interest Account pursuant to Section 6.2. 

  
 6 

 6.4 Taxes. The Parent, the Company or a Subsidiary may from time to time, in its
discretion, require the Participant to pay the amount deemed necessary to satisfy the Parent’s, Company’s or Subsidiary’s current or future obligation to withhold international, federal, state or local income or other taxes that the
Participant incurs as a result of a distribution. With respect to any required tax withholding, the Parent, Company or Subsidiary, as applicable, will withhold from the Participant’s distributions pursuant to the Arrangement the amount
necessary to satisfy the obligation to withhold taxes. 
 VII. ARRANGEMENT ADMINISTRATION 

7.1 Arrangement Administration and Interpretation. The Plan Administrator shall oversee the administration of the Arrangement. The Plan
Administrator shall have complete control and authority to determine the rights and benefits of all claims, demands and actions arising out of the provisions of the Arrangement of any Participant, deceased Participant, or other person having or
claiming to have any interest under the Arrangement. The Plan Administrator shall have complete discretion to interpret the Arrangement and to decide all matters under the Arrangement. Such interpretation and decision shall be final, conclusive and
binding on all Participants and any person claiming under or through any Participant, in the absence of clear and convincing evidence that the Plan Administrator acted arbitrarily and capriciously. Any individual(s) serving as the Plan Administrator
who is also a Participant will not vote or act on any matter pertaining solely to himself. When making a determination or calculation, the Plan Administrator shall be entitled to rely on information furnished by a Participant, the Parent or the
Company. Subject to Section 162(m) of the Code, the Plan Administrator may correct any defect, supply any omission, or reconcile any inconsistency in the Plan or in any Participation Agreement in the manner and to the extent it deems necessary
or desirable to carry the Arrangement into effect, and the Plan Administrator shall be the sole and final judge of that necessity or desirability. If any provision of this Arrangement does not comply or is inconsistent with the requirements of
Section 162(m) of the Code or regulations thereunder, such provision shall be construed or deemed amended to the extent necessary to conform to such requirements. 

7.2 Powers, Duties and Procedures, Etc. The Plan Administrator shall have such powers and duties, may adopt such rules, may act in
accordance with such procedures, may appoint such officers or agents, and may delegate such powers and duties, as it shall determine in its sole discretion; provided, however, that the Plan Administrator may not delegate its duties where such
delegation would violate state corporate law, or with respect to making awards to, or otherwise with respect to awards granted to, Eligible Persons who are Covered Employees receiving awards that are intended to constitute “performance-based
compensation” within the meaning of Section 162(m) of the Code. 
 7.3 Actions of Qualified Members. At any time that the
Plan Administrator is not comprised solely of Qualified Members, any action of the Plan Administrator relating to an award intended by the Plan Administrator to qualify as “performance-based compensation” within the meaning of
Section 162(m) of the Code and regulations thereunder, may be taken 

  
 7 

 
either (i) by a subcommittee, designated by the Plan Administrator, composed solely of two or more Qualified Members, or (ii) by the Plan Administrator but with each such member who is
not a Qualified Member abstaining or recusing himself or herself from such action; provided, however, that, upon such abstention or recusal, the Plan Administrator remains composed solely of two or more Qualified Members. Such action, authorized by
such a Plan Administrator or by the Plan Administrator upon the abstention or recusal of such non-Qualified Member(s), shall be the action of the Plan Administrator for purposes of this Arrangement. 

7.4 Company’s Records. To enable the Plan Administrator to perform its functions, the Parent, the Company and their respective
Subsidiaries shall supply full and timely information to the Plan Administrator on all matters relating to a Participants’ employment, death, termination of employment, and such other pertinent facts as the Plan Administrator may require. The
Company shall provide the Plan Administrator will all necessary financial or accounting records necessary to properly account for the Phantom Interest Accounts. Records of the Parent, the Company and their respective Subsidiaries for these purposes
shall be conclusive unless determined otherwise by the Plan Administrator. 
 7.5 Indemnification of Plan Administrator. The Parent
agrees to indemnify and to defend to the fullest extent permitted by law any individuals who serve as Plan Administrator (including any such individual who formerly served as Plan Administrator) against all liabilities, damages, costs and expenses
(including attorneys’ fees and amounts paid in settlement of any claims approved by the Parent) occasioned by any act or omission to act in connection with the Plan or this Arrangement, if such act or omission was performed in good faith. 

VIII. AMENDMENT AND TERMINATION 

8.1 Amendments. The Parent, upon action of the Board, shall have the right to amend the Arrangement from time to time by an instrument
in writing which has been executed on the Parent’s behalf by its duly authorized officer. 
 8.2 Termination of
Arrangement. This Arrangement is strictly a voluntary undertaking on the part of the Parent and shall not be deemed to constitute a contract between the Parent or the Company and any Eligible Person or consideration for, or an inducement or
condition of employment for, the performance of the services by any Eligible Person. The Parent, upon action of the Board, reserves the right to terminate the Arrangement at any time by an instrument in writing which has been executed on the
Parent’s behalf by its duly authorized officer.  
 IX. MISCELLANEOUS 

9.1 No Funding. The Arrangement constitutes a mere promise by the Parent to make payments in accordance with the terms of the
Arrangement and Participants and beneficiaries shall have the status of general unsecured creditors of the Parent. Nothing in the Arrangement will be construed to give any employee or any other person rights to any specific assets of the Parent or
the Company or of any other person. In all events, it is the intent of the Parent that the Arrangement be treated as unfunded for Code purposes and for purposes of Title I of ERISA. 

  
 8 

 9.2 Sections 409A and 457A of the Code. The amounts payable pursuant to this Arrangement
are intended to comply with the short term deferral exceptions under the Nonqualified Deferred Compensation Rules and this Arrangement shall be interpreted accordingly. Subject to any other restrictions or limitations contained herein, in the event
that a “specified employee” (as defined under the Nonqualified Deferred Compensation Rules) becomes entitled to a payment under an award that provides for a deferral of compensation under the Nonqualified Deferred Compensation Rules on
account of a “separation from service” (as defined under the Nonqualified Deferred Compensation Rules), to the extent required by the Code, such payment shall not occur until the date that is six months plus one day from the date of such
separation from service. Any amount that is otherwise payable within the six-month period described herein will be aggregated and paid in a lump sum without interest. For purposes of the Nonqualified Deferred Compensation Rules, each payment or
amount due under this Arrangement shall be considered a separate payment. 
 9.3 Changes in Company Structure. In the event
there is any change in the capital structure of the Company by reason of recapitalization, reclassification, reorganization, merger, consolidation, combination, spin-off or distribution, exchange or other relevant change in capitalization the
Phantom Units credited to a Participant’s Account shall be adjusted by the Plan Administrator in good faith to prevent the enlargement or diminution of benefits to Participants under the Arrangement. The determination of the Plan Administrator
as to what adjustments will be made and the extent thereof will be final, binding, and conclusive.  
 9.4 Claims of General
Creditors. All amounts credited to the Accounts under this Arrangement shall remain a part of the general assets of the Parent. Accordingly, the amounts credited to the Accounts under this Arrangement are subject to the claims of the
Parent’s general creditors.  
 9.5 Non-Assignability. None of the benefits, payments, proceeds or claims of any
Participant shall be subject to any claim of any creditor of any Participant and, in particular, the same shall not be subject to attachment or garnishment or other legal process by any creditor of such Participant. No Participant shall have any
right to alienate, anticipate, commute, pledge, encumber or assign any of the benefits or payments or proceeds which he may expect to receive, contingently or otherwise, under the Arrangement. No Participant may borrow against his Accounts. No
Accounts shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution or levy of any kind, whether voluntary or involuntary.  

9.6 Limitation of Participant’s Rights. Nothing contained in the Arrangement shall (a) confer upon any person a right to be
employed or to continue in the employ of the Parent, the Company or any of their respective Subsidiaries, (b) interfere in any way with the right of the Parent, the Company or any of their respective Subsidiaries to terminate the employment of
a Participant at any time, with or without prior notice and without regard to the effect such discharge would have on the Participant’s interest in the Arrangement, or (c) confer upon any Participant any of the rights of a partner, limited
or otherwise, of the Company or the Parent. 
 9.7 Participants Bound. Any action with respect to the Arrangement taken by the
Plan Administrator, the Parent, the Company or the Board or any action authorized by or taken at the direction of the Plan Administrator, the Parent, the Company or the Board shall be conclusive upon all Participants and beneficiaries entitled to
benefits under the Arrangement. 

  
 9 

 9.8 Release. Any payment to any Participant in accordance with the provisions of the
Arrangement shall, to the extent thereof, be in full satisfaction of all claims against the Parent, the Company and the Plan Administrator under the Arrangement, and the Plan Administrator may require such Participant, as a condition precedent to
such payment, to execute a release to such effect. If any Participant is determined by the Plan Administrator to be incompetent, by reason of physical or mental disability, to give a valid receipt and release, the Plan Administrator may cause the
payment or payments becoming due to such person to be made to another person for his benefit without responsibility on the part of the Plan Administrator, the Company or the Parent to follow the application of such funds. 

9.9 Governing Law. The Arrangement shall be construed, administered, and governed in all respects under and by the laws of the State of
Delaware, without regard to its choice of laws provisions, except to the extent Delaware law is preempted by federal law. If any provision shall be held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions
hereof shall continue to be fully effective. 
 9.10 Headings and Subheadings. Headings and subheadings in this Arrangement
are inserted for convenience only and are not to be considered in the construction of the provisions hereof. 
 9.11
Construction. Whenever possible, each provision of the Arrangement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of the Arrangement shall be held to be prohibited by or invalid under
applicable law, then (a) such provision shall be deemed amended to, and to have contained from the outset such language as shall be necessary to, accomplish the objectives of the provision and (b) all other provisions of the Arrangement
shall remain in full force and effect.  
 9.12 Successors. The provisions of the Arrangement shall bind and inure to the
benefit of the Parent, the Company and the successors and assigns of the Parent or the Company. The term “successors” as used herein shall include any corporation or other business entity which shall by merger, consolidation, purchase or
otherwise, acquire all or substantially all of the business and assets of the Company or the Parent and successors of any such corporation or other business entity. 

  
 10

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