Document:

sn_EX_101

		
			Exhibit 10.1
		

		
			EXECUTIVE SERVICES AGREEMENT
		

		
			THIS EXECUTIVE SERVICES AGREEMENT  (this “Agreement”) is made and entered into as of the 6th of May, 2019 (the “Effective Date”), by and between _________________ (“Executive”) and Sanchez Energy Corporation (“Sanchez Energy”) (Executive and Sanchez Energy,  collectively, the “Parties” and each a “Party”).
		

		
			WHEREAS, Executive is  the ___________________________ of Sanchez Energy.
		

		
			WHEREAS, Sanchez Oil & Gas Corporation (“SOG”) and Sanchez Energy are parties to that certain Services Agreement, dated December 19, 2011 (as amended, restated or modified from time to time, the “Services Agreement”) pursuant to which SOG provides certain management and general administrative support services to Sanchez Energy as an independent contractor.
		

		
			WHEREAS, pursuant to the Services Agreement, Sanchez Energy is obligated to reimburse SOG for the cost of services performed for Sanchez Energy and its subsidiaries.
		

		
			WHEREAS, Executive is an employee of SOG and performs services for Sanchez Energy pursuant to the Services Agreement,  including serving as an officer of Sanchez Energy in the capacity of ____________________,  and SOG as a result is reimbursed by Sanchez Energy for salary and other amounts paid to Executive by SOG.
		

		
			WHEREAS, the Parties wish to memorialize their agreement with respect to the terms and conditions of Executive’s continued provision of services to Sanchez Energy.
		

		
			NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties, intending to be legally bound, mutually agree as follows:
		

		
			1.         Term:  Executive agrees to continue to provide services for Sanchez Energy in the capacity of ____________________, and Sanchez Energy agrees to continue to engage Executive to serve as Sanchez Energy’s ____________________, pursuant to the terms and conditions of this Agreement beginning on the Effective Date (as defined above) and continuing until Executive’s services are terminated by either Executive or Sanchez Energy, as applicable, in accordance with Section 4  below (the “Term”).
		

		
			2.         Place of Services:  Executive will perform his duties under this Agreement at SOG’s and Sanchez Energy’s offices in Houston, Texas.
		

		
			3.         Compensation:  During the Term of this Agreement, Sanchez Energy agrees as follows:
		

		
			(a)        Base Salary:  Executive’s annual base salary is $___________, subject to applicable withholdings and deductions (the “Base Salary”).  Executive’s Base Salary may not be decreased during the Term of this Agreement by Sanchez Energy, but may be increased in the absolute discretion of SOG’s Board of Directors (the “SOG Board”), or any authorized committee thereof, and Sanchez Energy’s Board of Directors (the “Sanchez Board”), or any
		

		
			
		

		
			

		 

		

		
			 
		

		
			authorized committee thereof, in accordance with the rules and procedures governing such Boards and the terms of the Services Agreement.  To the extent Executive’s Base Salary is increased during the Term, such increased rate shall thereafter be considered Executive’s “Base Salary” for purposes of this Agreement.  During the Term, Sanchez Energy will continue to reimburse SOG for the full gross amount of Executive’s Base Salary, in accordance with the terms of the Services Agreement.
		

		
			(b)        Annual Bonus:  In addition to Executive’s Base Salary, during the Term Executive shall continue to receive an annual bonus for services rendered by Executive to Sanchez Energy equal to a specified percentage of Executive’s Base Salary,  subject to applicable withholdings and deductions, which shall be payable to Executive at such time as annual bonuses are paid to other executives of SOG, but in no event later than March 15 of the year following the year to which the annual bonus relates (the “Annual Bonus”).   For the avoidance of doubt, Executive’s Annual Bonus for fiscal 2019 shall include such amounts as are approved as part of the Annual Bonus by the Special Committee of the Sanchez Board.  Executive’s Annual Bonus shall be determined in a manner and utilizing a qualitative assessment of financial and individual performance achievements consistent with the determination of Executive’s Annual Bonus in prior years, including without limitation those achievements and other factors specified in Sanchez Energy’s definitive proxy statement on Schedule 14A filed with the Securities and Exchange Commission (the “SEC”) on April 16, 2018;  provided,  that, the Annual Bonus may not be decreased by Sanchez Energy during the term of this Agreement, but may be increased in the absolute discretion of SOG Board, or any authorized committee thereof, and the Sanchez Board, or any authorized committee thereof, in accordance with the rules and procedures governing such Boards and the terms of the Services Agreement.  To the extent Executive’s Annual Bonus is increased during the Term, such increased rate shall thereafter be considered Executive’s “Annual Bonus” for purposes of this Agreement.  During the Term, Sanchez Energy will continue to reimburse SOG for the full gross amount of Executive’s Annual Bonus, in accordance with the terms of the Services Agreement.
		

		
			(c)        Long-Term Incentive Compensation Awards:  Long-term incentive compensation awards may be made directly from Sanchez Energy to Executive from time to time during the Term, as determined by the Sanchez Board in its sole discretion,  whose decision will be based upon performance and award guidelines for executive officers of Sanchez Energy established periodically by the Sanchez Board,  in its sole discretion.
		

		
			(d)        Sanchez Energy Guarantee.  Sanchez Energy hereby absolutely, irrevocably and unconditionally guarantees to Executive, his successors and assigns the payment in full of Executive’s Base Salary and Annual Bonus and all other amounts owed by SOG to Executive, his successors and assigns (collectively, “Obligations”) when due and payable. Such guarantee shall be as primary obligor and not merely as surety, shall be a guarantee of payment and performance and not of collection and shall be a continuing guarantee. Sanchez Energy hereby waives acceptance, diligence, promptness, presentment, demand of payment or performance, filing of claims with a court in the event of insolvency or bankruptcy of SOG, any right to require a proceeding (or other exhaustion of remedies) first against SOG or to join SOG in any enforcement action or to first resort to any other means of obtaining payment or performance, protest, notice, all demands whatsoever and any other circumstances that might
		

		
			
		

		
			

		 

		

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			constitute a legal or equitable discharge of a guarantor or surety or a defense of a guarantor or surety.  Sanchez Energy agrees that to the extent SOG fails to make any payment to Executive for any Obligations, Sanchez Energy shall make such payment to Executive directly within five (5) business days of receiving written notice from Executive.  To the extent Executive receives payment directly from Sanchez Energy, Sanchez Energy shall not be required to reimburse SOG for the same amount that would have otherwise been paid to SOG.
		

		
			4.         Termination
		

		
			(a)        Services Terminable At-Will; Notice of Termination: The Term and Executive’s appointment as an officer of Sanchez Energy may be terminated by Executive or Sanchez Energy at any time and for any reason; provided,  that, any purported termination by Executive or Sanchez Energy shall be communicated by written “Notice of Termination” to the other in accordance with Section 18 below.  The Notice of Termination shall (i) indicate the specific termination provision of this Agreement relied upon, (ii) to the extent applicable, set forth in reasonable detail the facts and circumstances claimed to provide a basis for the termination of Executive’s services, under the provision so indicated, and (iii) specify the effective “Termination Date” of Executive Services (which shall not be earlier than the date the Notice of Termination is sent, and shall not be later than thirty (30) days after the date of the Notice of Termination is sent).  Nothing in this Agreement is intended to alter the employment relationship between Executive and SOG, which shall remain at-will and may be terminated by Executive or SOG at any time and for any reason (and with respect to which this Agreement shall not apply).
		

		
			(b)       Definitions:  For purposes of this Agreement, the following definitions shall apply:
		

		
			(i)        Cause:  Sanchez Energy will have “Cause” to terminate Executive’s services under this Agreement for any of the following reasons:
		

		
			(A)     Executive’s conviction of, or plea of nolo contendere to, any felony or crime involving moral turpitude in connection with the performance of his duties to Sanchez Energy;
		

		
			(B)     Executive being charged with, or a defendant in, an action brought by the SEC or another federal or state regulator based primarily on Executive’s individual alleged acts or omissions during Executive’s appointment as an officer of, or while providing services to, Sanchez Energy;
		

		
			(C)     Executive’s commission of a  willful and material act of fraud or embezzlement of Sanchez Energy’s funds or other assets causing material damage to Sanchez Energy; or
		

		
			(D)     Executive’s willful and material misrepresentations or concealments on any written reports submitted to the Sanchez Board.
		

		
			
		

		
			

		 

		

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			provided,  that,  any of the events described in Section 4(b)(i)(C) or 4(b)(i)(D) above shall constitute Cause only if Executive fails to cure such event to the reasonable satisfaction of the Sanchez Board within thirty (30) calendar days of receiving written notice from the Sanchez Board of the event which allegedly constitutes Cause; and provided further that a termination shall not be deemed to be for Cause under Section 4(b)(i)(C) or 4(b)(i)(D) unless and until there shall have been delivered to Executive a copy of a resolution duly adopted by the affirmative vote of a majority of the members of the Sanchez Board (other than Executive, if he is a member of the Sanchez Board), at a meeting of the Sanchez Board called and held for such purpose (after reasonable notice is provided to Executive, and Executive is given an opportunity, together with counsel, to be heard before the Sanchez Board), finding that, in the good faith opinion of the Sanchez Board, Executive is guilty of the conduct described in Section 4(b)(i)(C) or 4(b)(i)(D), above, and specifying the particulars thereof in detail.
		

		
			For the purposes of this provision, no act or failure to act on the part of Executive shall be considered “willful” unless it is done, or omitted to be done, by Executive in bad faith and  without reasonable belief that Executive’s actions or omission was in the best interests of Sanchez Energy.  Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Sanchez Board, or upon the instructions of the Sanchez Board, or based upon the advice of counsel for Sanchez Energy, shall be conclusively presumed to be done, or omitted to be done, by Executive in good faith and in the best interests of Sanchez Energy.
		

		
			(ii)        Good Reason:    Executive will have “Good Reason”  to terminate his appointment as an officer of Sanchez Energy under this Agreement for any of the following reasons to which Executive does not consent in writing:
		

		
			(A)     the relocation of Executive’s primary place of performing services for Sanchez Energy to a location more than fifty (50) miles from Executive’s primary place of performing services as set forth in Section 2 above;
		

		
			(B)     a material diminution in Executive’s Base Salary;
		

		
			(C)      a  material diminution in the authority, duties or responsibilities of Executive to Sanchez Energy; or
		

		
			(D)     Any other action or inaction that constitutes Sanchez Energy’s material breach of any provision of this Agreement;
		

		
			provided,  that,  any of the conditions described in Section 4(b)(ii)(A) through 4(b)(ii)(D) above shall constitute Good Reason only if Sanchez Energy fails to cure such condition to the reasonable satisfaction of Executive within thirty (30) calendar days of receiving written notice from Executive of the condition which allegedly constitutes Good Reason; and provided further,  that,  Executive’s termination shall constitute a termination by Executive for Good Reason only if the Termination Date occurs not later than ninety  (90) calendar days following the initial existence of one or more of the conditions described in Section 4(b)(ii)(A) through 4(b)(ii)(D) above.
		

		
			
		

		
			

		 

		

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			(iii)        Disability:  For purposes of this Agreement, “Disability” shall mean the earlier of:
		

		
			(A)     a written determination by a physician that Executive has been unable to substantially perform his usual and customary services for Sanchez Energy under this Agreement for a period of at least one hundred twenty (120) consecutive days (or one hundred eighty (180) non-consecutive days) during any twelve (12) month period as a result of Executive’s incapacity due to mental or physical illness; or
		

		
			(B)      “disability” as such term is defined in SOG’s applicable long-term disability insurance plan as it is in effect at the time Executive becomes Disabled;
		

		
			(c)         Compensation Upon Termination:  Upon termination of Executive’s appointment as an officer of Sanchez Energy during the Term of this Agreement, Executive shall be entitled to the following payments:
		

		
			(i)         Termination by Sanchez Energy for Cause, Termination by Executive Without Good Reason, or Termination upon Executive’s Death or Disability:  If Executive’s appointment as an officer of Sanchez Energy hereunder is terminated by Sanchez Energy for Cause, by Executive without Good Reason, or upon Executive’s Death or Disability, Sanchez Energy shall remain obligated for any outstanding amounts owed to Executive (or his designated beneficiaries) for services performed by Executive for Sanchez Energy, including, without limitation, (A) the amount of Executive’s accrued but unpaid then current Base Salary through the Termination Date, and (B) in the case of termination upon Executive’s death or Disability, to the extent not yet paid to Executive (or his designated beneficiaries) and/or reimbursed to SOG, (1) the amount of Executive’s Annual Bonus for the last full year during which Executive performed services for Sanchez Energy, and (2) the amount of Executive’s Annual Bonus for the current year, based on Executive’s Annual Bonus for such last full year and pro-rated based on Executive’s Termination Date.
		

		
			(ii)        Termination by Sanchez Energy Without Cause or by Executive for Good Reason:  If Executive’s appointment as an officer of Sanchez Energy hereunder is terminated by Sanchez Energy without Cause, or by Executive for Good Reason, Sanchez Energy shall pay to Executive directly a termination fee equal to the following amounts:
		

		
			(A)     an amount equal to 200% of Executive’s Base Salary; plus
		

		
			(B)     an amount equal to 200% of the largest Annual Bonus paid to (or due to be paid to) Executive for the year in which the Termination Date occurred or any year in the three calendar year period immediately preceding the Termination Date (the amounts in Section 4(c)(ii)(A) and
		

		
			
		

		
			

		 

		

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			4(c)(ii)(B), collectively, the “Termination Fee”).
		

		
			(C)     Sanchez Energy shall pay Executive the Termination Fee in a single lump sum within fourteen (14) calendar days of the Termination Date.
		

		
			(D)     If Executive timely elects continuation coverage under COBRA, Sanchez Energy shall pay the COBRA premiums for Executive and his eligible dependents directly to the applicable insurer(s) during the COBRA continuation period (the “Benefits Continuation”).
		

		
			(E)     In addition to paying the Termination Fee to Executive directly and providing the Benefits Continuation, Sanchez Energy shall remain obligated for any outstanding amounts owed to Executive for services performed by Executive for Sanchez Energy, including, without limitation, (1) the amount of Executive’s accrued but unpaid then current Base Salary through the Termination Date, and (2) to the extent not yet paid to Executive and/or reimbursed to SOG,  (a)  the amount of Executive’s Annual Bonus for the last full year during which Executive performed services for Sanchez Energy, and (b)  the amount of Executive’s Annual Bonus for the current year, based on Executive’s Annual Bonus for such last full year and pro-rated based on Executive’s Termination Date.
		

		
			(iii)         Long-Term Incentive Compensation Awards:  The treatment of each long-term incentive compensation award on the termination of Executive’s appointment as an officer of, and provision of his services to, Sanchez Energy for any reason shall be governed by the terms and conditions of the applicable award agreement for such award and the long-term incentive plan or similar under which such award was granted.
		

		
			(d)         Attorneys’ Fees:  In the event that Executive substantially prevails in a litigation regarding whether (i) Executive’s services were terminated for Cause, or (ii) Executive resigned for Good Reason, Executive shall be entitled to an award including the attorneys’ fees and costs Executive incurs in connection with such litigation (including any appeals thereof).
		

		
			(e)         No Mitigation or Offset:  Executive shall not be required to mitigate the amount of any payment or other Sanchez Energy obligation provided for in this Agreement by seeking retention as an independent contractor, employment, or otherwise, and no such payment or other Sanchez Energy obligation shall be offset or reduced by the amount of any compensation provided to Executive in any subsequent independent contractor or employment relationship.
		

		
			5.         Indemnification: Sanchez Energy agrees to hold harmless and indemnify Executive for any acts or omissions taken or made by Executive during the Term within the scope of his authority as the _________________ of Sanchez Energy to the greatest extent allowed by applicable law.  Without limiting the foregoing, Executive’s right to indemnity
		

		
			
		

		
			

		 

		

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			hereunder shall include Sanchez Energy’s advancement of all costs and expenses (including attorneys’ fees and expenses) in connection with the defense of any actual or threatened claim, subject to Executive’s execution of an undertaking meeting the requirements of Section 145 of the General Corporation Law of the State of Delaware.  Additionally, during the Term, and for at least six (6) years following the termination of Executive’s appointment as an officer of Sanchez Energy (regardless of the reason for such termination), Sanchez Energy shall maintain directors and officers insurance for the benefit of Executive that is no less favorable than the directors and officers insurance provided to any other director, officer, or executive of Sanchez Energy.   The rights provided in this Section 5 are in addition to any other rights to indemnification, exculpation, or contribution Executive may otherwise have under any agreement (including any indemnification agreement between Executive and Sanchez Energy or SOG),  contract, policy, by-law, certificate of incorporation, or otherwise.
		

		
			6.         Section 409A of the Code:
		

		
			(a)       This Agreement is intended to comply with, or be exempt from, Section 409A of the Internal Revenue Code (the “Code”) and will be interpreted accordingly. Notwithstanding anything in this Agreement to the contrary, any references under this Agreement to the termination of Executive’s appointment as an officer of, or provision of services to, Sanchez Energy, or “Termination Date” shall be deemed to refer to the date upon which Executive has experienced a “separation from service” within the meaning of Section 409A of the Code.  It is the intent of the Parties that all compensation and benefits payable or provided to Executive (whether under this Agreement or otherwise) shall fully comply with the requirements of Section 409A of the Code.  Accordingly, Sanchez Energy agrees that it will not, without Executive’s prior written consent, take any action inconsistent with this Agreement that would result in the imposition of tax, interest and/or penalties upon Executive under Section 409A of the Code.
		

		
			(b)       Notwithstanding any provision in this Agreement or elsewhere to the contrary, if upon a termination of employment Executive is deemed to be a “specified employee” within the meaning of Section 409A using the identification methodology selected by Sanchez Energy from time to time, or if none, the default methodology under Section 409A, any payments or benefits due upon a termination of Executive’s employment under any arrangement that constitutes a “deferral of compensation” within the meaning of Section 409A shall be delayed and paid or provided (or commence, in the case of installments) on the first payroll date on or following the earlier of (i) the date which is six (6) months and one (1) day after Executive’s termination of employment for any reason other than death (the “Delayed Payment Date”), and (ii) the date of Executive’s death, and any remaining payments and benefits shall be paid or provided in accordance with the normal payment dates specified for such payment or benefit; provided, that, payments or benefits that qualify as short-term deferral (within the meaning of Section 409A and Final Treasury Regulations Section 1.409A-1(b)(4)) or involuntary separation pay (within the meaning of Section 409A and Final Treasury Regulations Section 1.409A-1(b)(9)(iii)(A)) and are otherwise permissible under Section 409A and the Final Treasury Regulations, shall not be subject to such six-month delay.  On the Delayed Payment Date, Sanchez Energy will pay to Executive a lump sum equal to all amounts that would have been paid during the period of the delay if the delay were not required plus interest on such amount at a rate equal to the short-term applicable federal rate then in effect, and will thereafter continue to
		

		
			
		

		
			

		 

		

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			pay Executive the Severance Payment in installments in accordance with this Section.  Additionally, to the extent that Executive’s receipt of any in-kind benefits from Sanchez Energy or its affiliates must be delayed pursuant to this Section 6(b), Executive may elect to instead purchase and receive such benefits during the period in which the provision of benefits would otherwise be delayed by paying Sanchez Energy (or its affiliates) for the fair market value of such benefits (as determined by Sanchez Energy in good faith) during such period. Any amounts paid by Sanchez Energy pursuant to the preceding sentence shall be reimbursed to Executive (with interest thereon) as described above on the date that is six (6) months following Executive’s separation from service.
		

		
			(c)        Each payment made under this Agreement shall be designated as a “separate payment” within the meaning of Section 409A of the Code.
		

		
			(d)        In the event that either Executive or Sanchez Energy’s senior management becomes aware that any provision of this Agreement violates Section 409A of the Code, the Parties will meet and confer regarding such issues and will engage in good faith discussions regarding whether and how the Agreement can be modified so as to minimize the likelihood of a Section 409A violation while providing Executive with financial terms substantially commensurate to those set forth in this Agreement.
		

		
			7.         Tax Withholding.  SOG or Sanchez Energy, as applicable, may withhold from any payments or benefits referenced under this Agreement, and payable from SOG or Sanchez Energy, as applicable, to Executive, all federal, state, city or other taxes as shall be required pursuant to any law or governmental regulation or ruling, and any deductions authorized by Executive.
		

		
			8.         Entire Agreement:  This Agreement constitutes the entire agreement between Executive and Sanchez Energy with respect to the subject matter hereof and supersedes any and all prior agreements, understandings, discussions, negotiations, and/or undertakings, whether written or oral.  Executive specifically agrees that Executive is not relying on any representations, promises, understandings, discussions, negotiations, or undertakings, whether written or oral, express or implied, other than those contained in this Agreement.  Notwithstanding the foregoing, for the avoidance of doubt, nothing in this Agreement supersedes or affects the validity of (i) any indemnification agreement, long term incentive plan, or equity, severance, bonus or other similar agreement between Executive and SOG or Sanchez Energy, or any of their parents, subsidiaries, affiliates, or related companies, or any of their successors, or (ii) the Services Agreement,  which shall remain in effect in accordance with their terms.
		

		
			9.         Governing Law: This Agreement shall be interpreted and enforced in accordance with the laws of the State of Texas, without regard to the principles of conflict of laws.
		

		
			10.       Invalid or Unenforceable Provisions: If any provision of this Agreement is determined to be unenforceable as a matter of governing law, a reviewing shall have the authority to “blue pencil” or otherwise modify such provision so as to render it enforceable while maintaining the Parties’ original intent (as reflected herein) to the maximum extent possible.
		

		
			
		

		
			

		 

		

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			This Agreement shall be severable, and the invalidity or unenforceability of any particular provision of this Agreement shall not affect the other provisions hereof.
		

		
			11.       Successors and Assigns; Third Party Beneficiary:
		

		
			(a)        This Agreement shall be binding upon and shall inure to the benefit of Sanchez Energy, and its successors and assigns, and Sanchez Energy shall require any successor or assign to expressly assume and agree to perform this Agreement in the same manner and to the same extent that Sanchez Energy would be required to perform this Agreement if no such succession or assignment had taken place. The term “Sanchez Energy” as used herein shall include each such entity’s successors and assigns. The term “successors and assigns” as used herein shall include, without limitation, a corporation or other entity acquiring a majority ownership of Sanchez Energy or all or substantially all the assets and business of Sanchez Energy (including this Agreement), whether by operation of law or otherwise.
		

		
			(b)        Neither this Agreement nor any right or interest hereunder shall be assignable or transferable by Executive, or by Executive’s beneficiaries or legal representatives, except by will or by the laws of descent and distribution.  This Agreement shall inure to the benefit of and be enforceable by Executive’s legal personal representative.
		

		
			(c)        SOG is an intended third party beneficiary of this Agreement and of the obligations of Sanchez Energy and Executive hereunder, and shall have standing to enforce this Agreement in accordance with its terms.
		

		
			12.       No Waiver: No failure on the part of any Party at any time  to require the performance by any other Party of any term of this Agreement shall be taken or held to be a waiver of such term or in any way affect such Party’s right to enforce such term,  and no waiver on the part of any Party of any term of this Agreement shall be taken or held to be a waiver of any other term hereof or the breach hereof.
		

		
			13.       Modification or Amendment: This Agreement may not be modified, altered, or amended, nor shall any new contract be entered into between the Parties hereto, except in a writing signed by both Executive and a member of the Sanchez Board.
		

		
			14.       Headings:  Headings and other captions in this Agreement are for convenience of reference only and shall not be used in interpreting, construing, or enforcing any of the provisions of this Agreement.
		

		
			15.       Construction:  The Parties have had ample opportunity to review, and have in fact reviewed and understand, this Agreement.  Accordingly, the normal rule of construction, to the effect that any ambiguities are to be resolved against the drafting party, shall not be employed in the interpretation of this Agreement.  For purposes of this Agreement, the connectives “and,” “or,” and “and/or” shall be construed either disjunctively or conjunctively as necessary to bring within the scope of a sentence or clause all subject matter that might otherwise be construed to be outside of its scope.
		

		
			
		

		
			

		 

		

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			16.       Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original and both of which together shall constitute one and the same instrument.  Facsimile, PDF, and other true and accurate copies of this Agreement shall have the same force and effect as originals hereof.
		

		
			17.       Right to Counsel:  Each Party, including Executive, acknowledges that such Party has had the right to seek the advice of independent legal counsel prior to the execution of this Agreement.  By executing this Agreement, each Party warrants and represents to each other Party that (i) the executing Party has consulted with an attorney of the executing Party’s choice prior to the execution of this Agreement, to the extent such Party chose to do so, and (ii) that the executing Party understands each and every term and provision of this Agreement without explanation by any other Party.  Each Party warrants and represents that such Party is under no duress or other coercion to sign this Agreement and that such Party is signing this Agreement of such Party’s own free will.
		

		
			18.       Notices:  All notices and all other communications provided for in this Agreement (including the Notice of Termination) shall be provided in writing and shall be sent via overnight delivery (with proof of delivery retained by the sending Party) to the following addresses:
		

			
					
						 

					
					
						 

				
	
					
						IF TO SANCHEZ ENERGY

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Sanchez Energy Corporation

					
					
						 

				
	
					
						1000 Main Street, Suite 3000

					
					
						 

				
	
					
						Houston, Texas 77002

					
					
						 

				
	
					
						Attention: General Counsel

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						IF TO EXECUTIVE:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			

		 

		

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						Sanchez Energy Corporation

				
	
					
						 

					
					
						 

				
	
					
						Dated: May ___, 2019

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Name:

				
	
					
						 

					
					
						 

					
					
						Title:

				

		
			 
		

		
			 
		

		
			

		 

		

			Signature Page to Executive Services Agreement (_____________________)

		

		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						Dated: May ___, 2019

					
					
						 

				
	
					
						 

					
					
						_______________, Executive

				
	
					
						 

					
					
						 

				

		
			 
		

		 

		

			Signature Page to Executive Services Agreement (_____________________)sn_EX_102

		
			Exhibit 10.2
		

		
			Execution Version
		

		
			SANCHEZ ENERGY CORPORATION
		

		
			2019 EXECUTIVE INCENTIVE PLAN
		

		
			1.     Purpose.  This Sanchez Energy Corporation (the “Company”) 2019 Executive Incentive Plan (as it may be amended, the “Plan”) is designed to align the interests of the Company and certain key employees of Sanchez Oil & Gas Corporation (“SOG”) that provide services to the Company.
		

		
			2.     Adoption of the Plan.  The Company, intending to be legally bound, hereby adopts the Plan effective as of May 6, 2019 (the “Effective Date”).  The Plan shall be in effect as of the Effective Date and shall continue until December 31, 2019, unless earlier terminated in accordance with Section 9(e) before December 31, 2019 (the “Term”). The expiration of the Term shall not in any event reduce or adversely affect any amounts due to any Participant hereunder.
		

		
			3.     General.  The compensation provided under this Plan is intended to be in addition to all other compensation payable to Participants under any employment, executive services or similar agreement in effect with the Company or any of its direct or indirect subsidiaries and to be made to the Participants in lieu of any cash-based or equity-based awards under the Company’s or SOG’s existing compensation or incentive plans going forward, for the duration of the Term.
		

		
			4.     Definitions.  For purposes of this Plan:
		

		
			(a)          “Board” means the Company’s Board of Directors.
		

		
			(b)          “Cause” means “Cause” as defined in the employment, executive services or similar agreement between the Participant and any member of the Company Group.
		

		
			(c)          “Committee” means the Special Committee of the Board while in effect, and thereafter, the Compensation Committee of the Board.
		

		
			(d)          “Company Group” means the Company and its direct and indirect subsidiaries.
		

		
			(e)          “Continuous Service” means the Participant’s continued service with any member of the Company Group, an affiliate or in respect of any member of the Company Group pursuant to the Services Agreement, dated as of December 19, 2011, by and between SOG and the Company.
		

		
			(f)           “Disability” means “Disability” as defined in any employment, executive services or similar agreement between the Participant and any member of the Company Group.
		

		
			(g)          “First Quarter Bonus” means the actual cash bonus to be paid to each Participant with respect to the first quarter of fiscal year 2019 promptly upon adoption of the Plan and the Participant’s acceptance of the Participant’s Participation Agreement.
		

		
			(h)          “Good Reason” means “Good Reason” as defined in any employment, executive services or similar agreement between the Participant and any member of the Company Group.
		

		
			(i)           “Participant” means each of the individuals listed on Exhibit 1 hereto.
		

		
			(j)           “Participation Agreement” means the agreement between the Company and a Participant granting a Participant a First Quarter Bonus and the opportunity to earn Quarterly Performance Bonuses under this Plan and in the form attached hereto as Schedule B.
		

		
			(k)          “Performance Goals” means the Quarterly and YTD Performance Goals, together or separately.
		

		
			
		

		
			

		 

		

		
			 
		

		
			(l)          “Performance Metrics” means: (i) average daily production (Boe/d); (ii) production expenses per Boe; and (iii) cash general and administrative expenses (“Cash G&A”).
		

		
			(m)        “Qualifying Termination” means a termination of a Participant’s Continuous Service due to death or Disability, by the Company without Cause or by the Participant for Good Reason.
		

		
			(n)         “Quarter” means each of the following periods: April 1, 2019 through June 30, 2019 (“Second Quarter”); July 1, 2019 through September 30, 2019 (“Third Quarter”); and October 1, 2019 through December 31, 2019 (“Fourth Quarter”).
		

		
			(o)           “Quarterly Performance Bonus” means, in the case of any Participant, the actual cash bonus, if any, as determined pursuant to Section 6(a) below.
		

		
			(p)         “Quarterly Performance Goals” means for each Performance Metric set forth on Schedule A: (i) the Quarterly Threshold Performance Goal; (ii) Quarterly Target Performance Goal; and (iii) Quarterly Maximum Performance Goal.
		

		
			(q)         “Quarterly Target Bonus” means a Participant’s target bonus amount in respect of each Quarter as set forth in the Participant’s Participation Agreement, assuming achievement of each Quarterly Target Performance Goal for each Performance Metric.
		

		
			(r)         “Section 409A” means Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.
		

		
			(s)         “YTD Performance Goals” means for each Performance Metric set forth on Schedule A:  (i) the YTD Threshold Performance Goal; (ii) YTD Target Performance Goal; and (iii) YTD Maximum Performance Goal.
		

		
			5.    Eligible Participants.  Only the individuals set forth on Exhibit 1 hereto shall be Participants under the Plan, receive a First Quarter Bonus and be eligible to earn and be paid Quarterly Performance Bonuses.
		

		
			6.    Terms of Participation.
		

		
			(a)         Quarterly Performance Bonus. Subject to the provisions of this Plan, each Participant shall be eligible to earn a Quarterly Performance Bonus as of the end of each Quarter. Subject to the provisions of this Section 6, the actual amount payable with respect to a given Quarter (the “Quarterly Performance Bonus”) is equal to the Quarterly Performance Bonus Amount as calculated pursuant to the chart below and adjusted, upwards or downwards, by the amount of a True-Up or True-Down, as defined and described below.
		

		
			(i)          Calculation of Quarterly Performance Bonus Amount.  The Quarterly Performance Bonus Amount, if any, is calculated as the sum of the amounts determined payable for each Performance Metric for the applicable Quarter, based on the level of achievement of the applicable Performance Metric in such Quarter as assessed against Quarterly Performance Goals. The amount payable with respect to a Performance Metric in a given Quarter is determined as follows:
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						If the Quarterly Threshold Performance Goal is not Achieved for a given Performance Metric, then:

					
					
						No amount with respect to that Performance Metric is payable.

				
	
					
						If the Quarterly Threshold Performance Goal is Achieved for a given Performance Metric, then:

					
					
						An amount equal to 50% of the applicable Weighting of the Quarterly Target Bonus is payable.

				

		
			 
		

		
			
		

		
			

		 

		

			2

		

		

		
			 
		

			
					
						If the Quarterly Target Performance Goal is Achieved for a given Performance Metric, then:

					
					
						An amount equal to 100% of the applicable Weighting of the Quarterly Target Bonus is payable.

				
	
					
						If the Quarterly Maximum Performance Goal is Achieved for a given Performance Metric, then:

					
					
						An amount equal to 200% of the applicable Weighting of the Quarterly Target Bonus is payable. 

				
	
					
						If the performance level achieved for a given Performance Metric is between Quarterly Threshold and Quarterly Target Performance Goals, then:

					
					
						The amount payable with respect to the Performance Metric is determined through linear interpolation between 50% and 100% and is equal to such percentage of the applicable Weighting of the Quarterly Target Bonus. 

				
	
					
						If the performance level achieved for a given Performance Metric is between Quarterly Target and Quarterly Maximum Performance Goals, then:

					
					
						The amount payable with respect to the Performance Metric is determined through linear interpolation between 100% and 200% and is equal to such percentage of the applicable Weighting of the Quarterly Target Bonus. 

				

		
			 
		

		
			(ii)         Adjustment of Quarterly Performance Bonus Amount.  Once the Quarterly Performance Bonus Amount is determined, the actual Quarterly Performance Bonus payable is calculated by applying the applicable adjustment, if any, described below. In order to determine whether an adjustment will apply, performance with respect to each Performance Metric for the period commencing on January 1, 2019 and expiring on the last day of the applicable Quarter (for each Quarter, the applicable “YTD Performance Period”) will be assessed and determined in a manner consistent with the calculation of the Quarterly Performance Bonus Amount. If the Quarterly Performance Bonus Amount as determined pursuant to the achievement of the Quarterly Performance Goals is less than the amount that would be payable for a Quarter based on the achievement of the YTD Performance Goals through such date, the Quarterly Performance Bonus will be increased to a level equal to the amount payable with respect to the achievement of the YTD Performance Goals for such Quarter (the “True-Up”); provided,  that, no additional True-Up addition will be provided for performance in excess of the Quarterly Maximum Performance Goal. Conversely, if the Quarterly Performance Bonus Amount as determined pursuant to the achievement of the Quarterly Performance Goals is greater than the amount that would be payable for a Quarter based on the achievement of the YTD Performance Goals through such date, the Quarterly Performance Bonus will be decreased to a level equal to the amount payable with respect to the achievement of the YTD Performance Goals for such Quarter (the “True-Down”); provided,  that, no additional True-Down reduction will be provided for performance below the Quarterly Threshold Performance Goal. For the avoidance of doubt, if the calculations for the Quarterly Performance Bonus Amount and with respect to the achievement of YTD Performance Goals for any Quarter result in the same number, no such adjustment will be made.
		

		
			(iii)       Limitation on Adjustment of Quarterly Performance Bonus Amount.  Notwithstanding the foregoing, in the event that the level of achievement of a Performance Metric in a Quarter is determined to be below the Quarterly Threshold Performance Goal, then no portion of the Quarterly Performance Bonus shall be payable with respect to such Performance Metric in the applicable Quarter. Moreover, in the event the level of achievement of a Performance Metric in a Quarter is equal to or in excess of the Quarterly Threshold Performance Goal, but less than or equal to the Quarterly Target Performance Goal, the portion of the Quarterly Performance Bonus payable with respect to such Performance Metric shall not be less than the portion of the Quarterly Performance Bonus determined to be payable with respect to such Performance Metric based on the achievement level of the Quarterly Performance Goal. In addition, in the event that the level of achievement of a Performance Metric in a Quarter is in excess of the Quarterly Target Performance Goal, the portion of the Quarterly Performance Bonus payable with respect to such Performance Metric shall not be less than the portion of the Quarterly Performance Bonus determined to be payable with respect to such Performance Metric based on the achievement of the Quarterly Target Performance Goal.
		

		
			
		

		
			

		 

		

			3

		

		

		
			 
		

		
			(iv)        Clawback Amount.  In the event that the aggregate total of the First Quarter Bonus and any individual Quarterly Performance Bonuses paid or payable for each Quarter (the “Original Payout Amount”), as determined at the end of the Fourth Quarter, exceeds the aggregate amount determined to be payable for the YTD Performance Period as of such date on a retrospective based on the achievement level of YTD Performance Goals for the fiscal year 2019, with such aggregate amount consisting of the First Quarter Bonus and a cumulative amount paid in respect of the Second and Third Quarters and payable in respect of the Fourth Quarter (the “Recalculated Payout Amount”), the Company may recover such overage amount (the “Clawback Amount”) from Quarterly Performance Bonuses that have been paid or are payable. For the avoidance of doubt, the Participant will not be requested or obligated to repay any amounts under the Plan in excess of any amounts received under the Plan, with the First Quarter Bonus mathematically excluded from such calculation and exempted in full from any Clawback Amount. The Participant may elect the manner in which the Clawback Amount will be recovered by the Company from one (or a combination) of the following mechanisms: (i) the Quarterly Performance Bonus payable with respect to the Fourth Quarter shall be reduced by all or a portion of the Clawback Amount and/or (ii) the Participant shall make a one-time reconciling payment in an amount equal to the Clawback Amount to the Company. In the event that the Original Payout Amount as determined at the end of the Fourth Quarter is less than the Recalculated Payout Amount as determined at the end of the Fourth Quarter (the “Additional Amount”), then the Participant is entitled to receive a one-time reconciling payment equal to the Additional Amount from the Company, which shall be payable as part of the Quarterly Performance Bonus payable with respect to the Fourth Quarter.
		

		
			In the event any Clawback Amount is determined repayable to the Company such that a portion or all of the Quarterly Performance Bonuses that were payable with respect to the Quarters are recovered by the Company, then the Company will administer the recovery of such Clawback Amount in a manner that does not adversely impact the Participant from an income tax perspective.  The Company agrees to provide the Participant with adequate time to pay any Clawback Amount to the Company, taking into consideration actual net cash amounts received, and recovery from the IRS of historical amounts withheld on Quarterly Performance Bonuses which are the subject of the Clawback Amount, and will furnish one or more amended IRS forms W-2, as applicable based on the year in which such form is received, to reflect such revised payment amounts and recapture prior withholding amounts.
		

		
			(b)         Timing of Payment; Estimated Payments. Any Quarterly Performance Bonus required to be paid under this Plan shall be paid by the Company within fifteen (15) days after the Certification Date (as defined below), but in any event, no later than March 15, 2020. The Company may pay an estimated Quarterly Performance Bonus (an “Estimated Quarterly Performance Bonus”) with respect to each Quarter; provided,  that, (x) to the extent that the Estimated Quarterly Performance Bonus exceeds the amount of the Quarterly Performance Bonus determined payable based upon the certification of achievement of applicable Performance Goals (the “Final Quarterly Performance Bonus Amount”), the Participant shall repay the Company any such excess amount within thirty (30) days of the Certification Date, but in any event, no later than March 15, 2020 and (y) to the extent that the Estimated Quarterly Performance Bonus is less than the Final Quarterly Performance Bonus Amount, the Company shall make a payment to the Participant equal to the excess of the applicable final amount over the applicable estimated amount within fifteen (15) days of the Certification Date, but in any event, no later than March 15, 2020. In the event the Participant fails or elects not to repay any amount required to be repaid pursuant to this Section 6(b), such amount shall be offset from unpaid amounts due to the Participant under the Plan, including Quarterly Performance Bonuses with respect to future Quarters.
		

		
			(c)         Termination of Continuous Service. In the event a Participant’s Continuous Service terminates due to a Qualifying Termination prior to the end of the Term, the Participant shall (x) be paid a  pro rata portion of the Quarterly Performance Bonus, if any, based on the actual performance results for the Quarter in which such termination occurs, with such pro rata portion determined based on the number of
		

		
			
		

		
			

		 

		

			4

		

		

		
			 
		

		
			days the Participant was employed as an employee of SOG or its subsidiaries or an officer of the Company Group, as the case may be, during the applicable Quarter and payable at the same time such Quarterly Performance Bonus would have otherwise been paid and (y) forfeit the right to receive any Quarterly Performance Bonus in respect of any subsequent Quarter during the Term. If a Participant’s Continuous Service terminates for any reason other than a Qualifying Termination prior to the end of the Term, the Participant shall forfeit the right to any Quarterly Performance Bonus in respect of the Quarter in which the termination occurs and any subsequent Quarter.
		

		
			7.    Performance Goals.  Promptly after the end of each Quarter (such actual date, the “Certification Date”), the Committee shall certify the degree to which the applicable Performance Goals have been achieved or exceeded and the amount, if any, payable to each Participant hereunder subject to the terms and conditions contained herein. Each Performance Metric shall be weighted as follows in determining the Quarterly Performance Bonus, if any, that is payable to the Participant, and the Clawback Amount and the Additional Amount, as applicable: Average daily production (Boe/d) – 33.3%; Production expenses per Boe – 33.3%; and Cash G&A – 33.4% (each, a “Weighting”).
		

		
			8.    Plan Administration.  This Plan shall be administered by the Committee.  The Committee is given full authority and discretion within the limits of this Plan to establish such administrative measures as may be necessary to administer and attain the objectives of this Plan and may delegate the authority to administer the Plan to an officer of the Company.  The Committee shall have full power and authority to construe and interpret this Plan and any interpretation by the Committee shall be final, conclusive and binding on all Participants and shall be accorded the maximum deference permitted by law.
		

		
			9.    Miscellaneous.
		

		
			(a)  Non-Assignment; Non-Transferability. All rights and interests of the Participants under this Plan shall be non-assignable and non-transferable, and otherwise not subject to pledge or encumbrance, whether voluntary or involuntary, other than by will or by the laws of descent and distribution.  In the event of any sale, transfer or other disposition of all or substantially all of the Company’s assets or business, whether by merger, stock sale, consolidation or otherwise, the Company may assign this Plan.
		

		
			(b)  Release of Claims. Any payment to a Participant in accordance with the provisions of this Plan shall, to the extent thereof, be in full satisfaction of all claims against the Company Group with respect to claims arising from such payment under the Plan.
		

		
			(c)  Withholding. Payment of amounts due under the Plan shall be provided to the Participant in the same manner as the Participant receives the Participant’s regular paycheck or by mail at the last known address of the Participant in the possession of the Company, at the discretion of Committee.  The Company will deduct all applicable taxes and any other withholdings required or requested by the Participant to be withheld with respect to the payment of any award pursuant to this Plan.
		

		
			(d)  Unfunded Plan. The Company shall not be required to establish any special or separate fund or to make any other segregation of assets to ensure the payment of any award provided for hereunder.
		

		
			(e)  Amendment; Termination. The Company, in its sole discretion, shall have the right to amend or terminate this Plan at any time; provided,  that, in no event shall any amendment or termination adversely affect the rights of the Participants hereunder.  Subject to the foregoing, the Plan shall terminate upon the satisfaction of all obligations of the Company or its successor entities hereunder.
		

		
			(f)   No Right to Continued Service. Nothing contained in this Plan shall in any way affect the right and power of any member of the Company Group to discharge any Participant or otherwise terminate
		

		
			
		

		
			

		 

		

			5

		

		

		
			 
		

		
			Participant’s Continuous Service, at any time or for any reason or to change the terms of the Participant’s Continuous Service in accordance with the terms of the Participant’s employment, executive services or similar agreement, as applicable, in any manner.
		

		
			(g)  Expenses. Except as otherwise provided under this Plan, any expense incurred in administering this Plan shall be borne by the Company.
		

		
			(h)  Captions. Captions preceding the sections hereof are inserted solely as a matter of convenience and in no way define or limit the scope or intent of any provision hereof.
		

		
			(i)   Governing Law. The Plan and each Participation Agreement shall be construed, regulated, interpreted and administered according to the laws of the State of Texas, without regard to conflict of law principles.  Any persons or corporations who now are or shall subsequently become parties to the Plan shall be deemed to consent to this provision.
		

		
			(j)   Section 409A. The Plan is intended to either comply with, or be exempt from, the requirements of Section 409A.  To the extent that the Plan is not exempt from the requirements of Section 409A, the Plan is intended to comply with the requirements of Section 409A and shall be limited, construed and interpreted in accordance with such intent.  Notwithstanding the foregoing, in no event whatsoever shall any member of the Company Group be liable for any additional tax, interest, income inclusion or other penalty that may be imposed on a Participant by Section 409A or for damages for failing to comply with Section 409A
		

		
			*     *     *     *     *
		

		
			 
		

		
			 
		

		
			

		 

		

			6

		

		

		
			 
		

		
			IN WITNESS WHEREOF, Sanchez Energy Corporation has caused the Plan to be signed by its duly authorized officer as of the date first set forth above.
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						SANCHEZ ENERGY CORPORATION

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Gregory B. Kopel

				
	
					
						 

					
					
						Name:

					
					
						Gregory B. Kopel

				
	
					
						 

					
					
						Its:

					
					
						Executive Vice President, General Counsel and Secretary

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			Incentive Plan Signature Page

		

		

		
			 
		

		
			SCHEDULE A
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Quarterly Performance Goals

					
					
						 

					
					
						YTD Performance Goals

				
	
					
						 

					
					
						Second
Quarter

					
					
						Third
Quarter

					
					
						Fourth
Quarter

					
					
						 

					
					
						YTD Performance
Period –
Second Quarter

					
					
						YTD Performance
Period –
Third Quarter

					
					
						YTD Performance
Period –
Fourth Quarter

				
	
					
						Average daily production (Boe/d)

				
	
					
						Quarterly Maximum Performance Goal

					
					
						64,199

					
					
						60,367

					
					
						57,026

					
					
						YTD Maximum Performance Goal

					
					
						68,486

					
					
						65,750

					
					
						63,551

				
	
					
						Quarterly Target Performance Goal

					
					
						58,363

					
					
						54,879

					
					
						51,842

					
					
						YTD Target Performance Goal

					
					
						62,260

					
					
						59,773

					
					
						57,774

				
	
					
						Quarterly Threshold Performance Goal

					
					
						52,526

					
					
						49,391

					
					
						46,658

					
					
						YTD Threshold Performance Goal

					
					
						56,034

					
					
						53,795

					
					
						51,996

				
	
					
						Production expenses per Boe (1)

				
	
					
						Quarterly Maximum Performance Goal

					
					
						$12.57

					
					
						$12.67

					
					
						$12.89

					
					
						YTD Maximum Performance Goal

					
					
						$12.36

					
					
						$12.45

					
					
						$12.55

				
	
					
						Quarterly Target Performance Goal

					
					
						$13.97

					
					
						$14.08

					
					
						$14.32

					
					
						YTD Target Performance Goal

					
					
						$13.73

					
					
						$13.84

					
					
						$13.95

				
	
					
						Quarterly Threshold Performance Goal

					
					
						$15.36

					
					
						$15.49

					
					
						$15.76

					
					
						YTD Threshold Performance Goal

					
					
						$15.10

					
					
						$15.22

					
					
						$15.34

				
	
					
						Cash G&A (2) (in thousands)

				
	
					
						Quarterly Maximum Performance Goal

					
					
						$21,750

					
					
						$21,750

					
					
						$21,750

					
					
						YTD Maximum Performance Goal

					
					
						$43,500

					
					
						$65,250

					
					
						$87,000

				
	
					
						Quarterly Target Performance Goal

					
					
						$24,167

					
					
						$24,167

					
					
						$24,167

					
					
						YTD Target Performance Goal

					
					
						$48,333

					
					
						$72,500

					
					
						$96,667

				
	
					
						Quarterly Threshold Performance Goal

					
					
						$26,583

					
					
						$26,583

					
					
						$26,583

					
					
						YTD Threshold Performance Goal

					
					
						$53,167

					
					
						$79,750

					
					
						$106,333

				

		
			 
		

			
	
			
				 (1)
			

			
	
			
			Cash oil and natural gas production expenses, excluding unplanned service/midstream contract deficiency penalties from reduced activity levels, unplanned increases in midstream/marketing contract rates and non-recurring items, assuming anticipated accounting classification of planned workover activities.

		
			 
		

			
	
			
				 (2)
			

			
	
			
			Cash G&A, excluding severance/retention payments, costs associated with strategic alternatives and non-recurring items.

		
			
		

		
			

		 

		

			 

		

		

		
			 
		

		
			SCHEDULE B
		

		
			TO: {PARTICIPANT NAME}
		

		
			FROM:
		

		
			DATE: ______________, 2019
		

		
			RE: Participation Agreement under the Sanchez Energy Corporation 2019 Executive Incentive Plan
		

		
			1.           We are pleased to advise you that you will be eligible to receive Quarterly Performance Bonuses pursuant to the Sanchez Energy Corporation (the “Company”) 2019 Executive Incentive Plan (as it may be amended, the “Plan”).  Terms used herein with initial capital letters have the meanings set forth in the Plan and this Participation Agreement shall be, in all respects, subject to the terms and conditions of the Plan.  A copy of the Plan as in effect of the date hereof has been furnished to you and you agree to be bound by the terms and conditions of the Plan and this Participation Agreement.  In the event of any conflict between the terms and conditions of this Participation Agreement and the Plan, the terms and conditions of the Plan shall control.
		

		
			2.           First Quarter Bonus.  Promptly upon your acceptance of this Participation Agreement, you will receive an upfront initial payment of $___________ with respect to the first quarter of fiscal year 2019.
		

		
			3.           Quarterly Performance Bonus.  Your Quarterly Target Bonus amount in respect of each Quarter is $___________.
		

		
			4.           Performance Bonus Performance Measure.  Your Quarterly Performance Bonus, if any, is calculated in accordance with the terms of the Plan and based on the achievement of Quarterly and YTD Performance Goals, as applicable and as set forth on Schedule A of the Plan, and subject to adjustment or possible recovery as described in the Plan.
		

		
			5.           Payment Schedule.  Your Quarterly Performance Bonus amounts, if any, will be paid to you by the Company within fifteen (15) days after the Certification Date with respect to such Quarter (but in no event later than March 15, 2020) and otherwise in accordance with and subject to the terms and conditions of the Plan. In the event your Continuous Service terminates due to a Qualifying Termination prior to the end of the Term, you shall (x) be paid a pro rata portion of the Quarterly Performance Bonus, if any, based on the actual performance results for the Quarter in which such termination occurs, with such pro rata portion determined based on the number of days you were employed as an employee of SOG or its subsidiaries or an officer of the Company Group, as the case may be, during the applicable Quarter and payable at the same time such Quarterly Performance Bonus would have otherwise been paid and (y) forfeit the right to receive any Quarterly Performance Bonus in respect of any subsequent Quarter during the Term. If your Continuous Service terminates for any reason other than a Qualifying Termination prior to the end of the Term, you shall forfeit the right to any Quarterly Performance Bonus in respect of the Quarter in which the termination occurs and any subsequent Quarter.
		

		
			The Company may pay you an Estimated Quarterly Performance Bonus with respect to each Quarter prior to the applicable Certification Date; provided,  that, (x) to the extent the Estimated Quarterly Performance Bonus exceeds the Final Quarterly Performance Bonus Amount, you shall repay the Company any such excess amount within thirty (30) days of the Certification Date, but in any event, no later than March 15, 2020 and (y) to the extent the Estimated Quarterly
		

		
			
		

		
			

		 

		

			 

		

		

		
			 
		

		
			Performance Bonus is less than the Final Quarterly Performance Bonus Amount, the Company shall make a payment to you equal to the excess of the applicable final amount over the applicable estimated amount within fifteen (15) days of the Certification Date, but in any event, no later than March 15, 2020. In the event you fail to repay any amount required to be repaid hereunder, such amount shall be offset from unpaid amounts due to you under the Plan.
		

		
			Nothing contained in the Plan shall in any way affect the right and power of any member of the Company Group to discharge or otherwise terminate your Continuous Service at any time or for any reason.  Your rights under this Participation Agreement and any interest in or right to the Quarterly Performance Bonus payment, if any, may not be transferred or assigned by you, other than by will or by the laws of descent and distribution. The Company will deduct all applicable taxes and any other withholdings required or requested by you to be withheld with respect to the payment of any award pursuant to the Plan.
		

		
			The Company intends for the Quarterly Performance Bonus payments, if any, to either comply with, or be exempt from, the requirements of Section 409A.  To the extent that any Quarterly Performance Bonus is not exempt from the requirements of Section 409A, the Quarterly Performance Bonus is intended to comply with the requirements of Section 409A and shall be limited, construed and interpreted in accordance with such intent.  Notwithstanding the foregoing, in no event whatsoever shall any member of the Company Group be liable for any additional, tax, interest, income inclusion or other penalty that may be imposed on you by Section 409A or for damages for failing to comply with Section 409A.  You are hereby encouraged to consult immediately with your tax advisor regarding the tax consequences of any Quarterly Performance Bonus payments including, without limitation, any possible tax consequences in connection with Section 409A.
		

		
			We greatly appreciate your contributions to the Company and look forward to working together with you towards the Company’s future successes.  If you have any questions regarding this Participation Agreement, please contact the Company’s General Counsel at 1000 Main Street, Suite 3000, Houston, Texas 77002 (telephone:  (713) 783-8000).
		

			
					
						 

					
					
						SANCHEZ ENERGY CORPORATION

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						Its:

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

		

		
			 
		

		
			EXHIBIT 1
		

		
			 
		

		
			(a) A.R. Sanchez, Jr.
		

		
			(b) Antonio R. Sanchez, III
		

		
			(c) Cameron W. George
		

		
			(d) Gregory B. Kopel
		

		
			(e) Patricio D. Sanchez

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