Document:

Exhibit 10.a

EMPLOYMENT AGREEMENT

This Employment Agreement (the "Agreement")
is made and entered into on March 19, 2014 (the "Effective Date"), by and between First Bancorp (the "Company"),
and Edward F. Soccorso ("Employee"). References to the Company herein shall be deemed to refer to the Company and its
subsidiaries, including First Bank, unless the context requires or the Agreement provides otherwise.

 

The
Company desires to continue to employ Employee and Employee desires to accept such continued employment on the terms set forth
below.

In consideration of the mutual promises
set forth below and other good and valuable consideration, the receipt and sufficiency of which the parties acknowledge, the Company
and Employee agree as follows:

1.     EMPLOYMENT.
Employee's employment shall be subject to the terms and conditions set forth in this Agreement.

2.     NATURE
OF EMPLOYMENT/DUTIES. Employee shall serve as an Executive Vice President of First Bank and shall have such responsibilities
and authority as the Company may designate from time to time consistent with his title and position.

2.1     Employee shall perform all duties
and exercise all authority in accordance with, and otherwise comply with, all Company policies, procedures, practices and directions.

 

2.2     Employee shall devote substantially
all working time, best efforts, knowledge and experience to perform successfully his duties and advance the Company's interests.
During his employment, Employee shall not engage in any other business activities of any nature whatsoever (including board memberships)
for which he receives compensation without the Company's prior written consent; provided, however, this provision does not prohibit
him from personally owning and trading in stocks, bonds, securities, real estate, commodities or other investment properties for
his own benefit which do not create actual or potential conflicts of interest with the Company.

3.     COMPENSATION.

3.1      Base Salary. Employee's
annual base salary for all services rendered shall be Three Hundred and Twenty-Five Thousand and 00/100 Dollars ($325,000) (less
applicable taxes and withholdings) payable in accordance with the Company's customary payroll practices as they may exist from
time to time ("Base Salary").

 

    	 

    	 

    

3.2     Benefits.
Employee may participate in all medical, dental, disability, insurance, 401(k), vacation, leave, and other employee benefit plans
and programs which may be made available from time to time to Company employees at Employee's level; provided, however, that Employee's
participation is subject to the applicable terms, conditions and eligibility requirements of these plans and programs as they may
exist from time to time. Nothing in this Agreement shall require the Company to create, continue or refrain from amending, modifying,
revising or revoking any of its group plans, programs or benefits that are offered to employees. Employee acknowledges that the
Company, in its sole discretion, may amend, modify, revise or revoke any such group plans, programs or benefits and any amendments,
modifications, revisions and revocations of these plans, programs and benefits shall apply to Employee.

3.3     Business Expenses.
Employee shall be reimbursed for reasonable and necessary expenses actually incurred by him in performing services under this Agreement
in accordance with and subject to the terms and conditions of the applicable Company reimbursement policies, procedures and practices
as they may exist from time to time. All such reimbursements shall be made no later than March 15 of the year following the year
in which Employee incurred the expense.

3.4     Clawback.
Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based compensation, or any other compensation,
paid to Employee pursuant to this Agreement or any other agreement or arrangement with the Company which is subject to recovery
under any law, government regulation or stock exchange listing requirement, including, but not limited to, the Dodd-Frank Wall
Street Reform and Consumer Protection Act and implementing rules and regulations of that Act, will be subject to such deductions,
recovery, and clawback as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement
(or any policy adopted by the Company pursuant to any such law, government regulation or stock exchange listing requirement). Employee
shall, upon written demand by the Company, promptly repay any such incentive-based compensation or other compensation or take such
other action as the Company may require for compliance with this Section.

4.     TERM OF EMPLOYMENT AND
TERMINATION . The initial term of this Agreement and Employee's employment hereunder shall be the one-year period
commencing on the Effective Date and terminating on the first anniversary of the Effective Date (the "Initial Term"),
provided that, on such anniversary of the Effective Date and on each annual anniversary thereafter, this Agreement shall automatically
renew for successive one year periods on the same terms and conditions set forth herein unless: (a) earlier terminated or amended
as provided herein or (b) either party gives the other written notice of non-renewal at least sixty (60) days prior to the end
of the Initial Term or any renewal term of this Agreement. The Initial Term and all applicable renewals thereof are referred to
herein as the "Term."

4.1      Without Cause, Upon Notice.
Either the Company or Employee may terminate Employee's employment and this Agreement without Cause at any time upon giving the
other party thirty (30) days written notice.

4.2      For Cause. The Company may terminate
Employee's employment and this Agreement immediately without notice at any time for "Cause," which shall mean the following:
(i) Employee's demonstrated gross negligence or willful misconduct in the execution of his duties; (ii) Employee's refusal to comply
with the Company's policies, procedures, practices or directions, after notice and opportunity to cure within fifteen (15) days
after such notice; (iii) Employee's commission of an act of dishonesty or moral turpitude; (iv) Employee's being convicted of a
felony; or (v) Employee's breach of this Agreement.

4.3      By Death or Disability. Employee's
employment and this Agreement shall terminate upon Employee's Disability or death. For purposes of this Agreement, "Disability"
shall mean Employee's physical or mental inability to perform substantially all of Employee's duties, with or without reasonable
accommodation, for a period of ninety (90) days, whether or not consecutive, during any 365-day period, as determined in the Company's
reasonable discretion and in accordance with any applicable law. The Company shall give Employee written notice of termination
for Disability and the termination shall be effective as of the date specified in such notice.

4.4      Following
a Change in Control, by Employee for Good Reason. Following a Change in Control, as defined herein, Employee may terminate
his employment and this Agreement if he has "Good Reason" to do so.

For purposes of this Agreement, "Good
Reason" shall mean: (i) a material diminution in Employee's authority, duties, or responsibilities from such immediately prior
to the Change in Control; (ii) a material change in the geographic location at which Employee must perform his services under this
Agreement; and (iii) any other action or inaction that constitutes a material breach by the Company of this Agreement. Provided
that, in order for Employee to be able to terminate for Good Reason, Employee must first provide notice to the Company of the condition
Employee contends constitutes Good Reason within thirty (30) days of the initial existence of such condition, and the Company must
have thirty (30) days in which to remedy the condition, and further, if the condition is not remedied, Employee must terminate
his employment within thirty (30) days of the end of the Company's thirty (30) day remedy period.

    	 

    	 

    

4.5     Survival.
Section 6 (Confidential Information, Company Property and Competitive Business Activities) of this Agreement shall survive the
termination of Employee's employment and/or the termination of this Agreement, regardless of the reasons for such termination.

5.     COMPENSATION AND BENEFITS UPON TERMINATION.

5.1     
By the Company for Cause or by Employee by Notice of Non-Renewal or Without Cause. If Employee's employment and this
Agreement are terminated by the Company for Cause or by Employee by notice of non-renewal or pursuant to Section 4.1 (Without
Cause, Upon Notice), then the Company's obligation to compensate Employee ceases on the effective termination date except as to
amounts of Base Salary earned, but unpaid as of the effective termination date.

5.2      By
the Company Without Cause, by Notice of Non-Renewal, or for Disability. If the Company terminates Employee's employment
and this Agreement without Cause, by notice of Non-Renewal, or for Disability, then the Company shall:

		(i)	pay Employee any earned, but unpaid compensation due as of the effective termination date; and

 

	 	(ii)	pay Employee a lump sum amount equal to the greater of his then-current Base Salary for six (6) months or the then
    remaining period of the Term (less applicable taxes and withholdings). Said lump sum payment
    shall be made on the date immediately following the date on which the release of claims
    required by Section 5.4 becomes effective. Said payment is subject to the conditions set forth in Section 5.4 below.

5.3     Following a Change in Control, by the
Company Without Cause or by Notice of Non-Renewal or by Employee for Good Reason. If the Company terminates Employee's
employment and this Agreement without Cause or by notice of non-renewal or if Employee terminates for Good Reason within twelve
(12) months following a Change in Control (as defined below), then Employee shall be entitled to receive:

		(i)	any earned, but unpaid compensation due as of the effective termination date; and

		(ii)	a lump sum payment equal to the lesser of (i) 2.99 times his then current Base Salary (less applicable
taxes and withholdings) and (ii) the product of 2.99 and the “base amount” as defined in Section 280G(b)(3) of the
Internal Revenue Code of 1986, as amended, and applicable rules and regulations thereunder; and, if Employee timely and properly
elects continuation coverage under the Consolidated Omnibus Reconciliation Act of 1985 ("COBRA"), the Company shall reimburse
Employee for the monthly COBRA premiums paid by Employee for himself and his dependents. Such reimbursement shall be paid to Employee
by the 15th day of the month immediately following the month in which Employee timely remits the premium payment. Employee shall
be eligible to receive such reimbursement until the earliest of: (i) the twelve (12) month anniversary of the date his employment
with the Company terminated; (ii) the date Employee is no longer eligible to receive COBRA continuation coverage; and (iii) the
date on which Employee becomes eligible to receive substantially similar coverage from another employer. Said lump sum payment
shall be made on the date immediately following the date on which the release of claims required by Section 5.4 becomes effective.
Said payment and reimbursements are subject to the conditions set forth in Section 5.4 below.

For purposes of this Agreement,
a "Change in Control" shall be deemed to have occurred on:

		(i)	the date on which any "person" or "group" (as such terms are used in Section
13(d) and 14(d) of the Exchange Act), other than the Company or any entity owned, directly or indirectly, by the stockholders of
the Company in substantially the same proportions as their ownership of the Company's common stock, becomes the beneficial owner
(as defined in Rules 13d-3 and 13d-5 under the Exchange Act) of shares representing more than 40% of the combined voting power
of the then-outstanding securities entitled to vote generally in the election of directors of the Company; or

    	 

    	 

    

		(ii)	the date on which (i) the Company merges with any other entity, (ii) the Company enters into a statutory
share exchange with another entity, or (iii) the Company conveys, transfers or leases all or substantially all of its assets to
any person; provided, however, that in the case of subclauses (i) and (ii), a Change of Control shall not be deemed to have occurred
if the shareholders of the Company immediately before such transaction own, directly or indirectly immediately following such transaction,
more than 60% of the combined voting power of the outstanding securities of the corporation resulting from such transaction in
substantially the same proportions as their ownership of securities immediately before such transaction.

For purposes of this definition of Change
in Control, references to the Company shall be deemed to refer to First Bancorp only and not to its subsidiaries, including First
Bank.

5.4     Required Release.
The Company's obligation to provide any payment or reimbursement under Sections 5.2(ii) or 5.3(ii), is conditioned upon Employee's
execution of an enforceable release of all claims and his compliance with Section 6 of this Agreement. If Employee chooses not
to execute such a release or fails to comply with that Section, then the Company's obligation to compensate him ceases on the effective
termination date except as to amounts due at that time. The release of claims shall be provided to Employee within seven (7) days
of his separation from service and Employee must execute it within the time period specified in the release (which shall not be
longer than forty-five (45) days from the date of receipt). Such release shall not be effective until any applicable revocation
period has expired. Any payments subject to the release, shall be made or commence, as applicable, within sixty (60) days of Employee's
separation from service with the Company and, if the sixty (60) day period begins in one taxable year and ends in another taxable
year, no payment shall be made until the beginning of the second taxable year.

5.5     Benefits in lieu of Other
Severance. Employee is not entitled to receive any compensation or benefits upon his termination except as: (i) set forth
in this Agreement; (ii) otherwise required by law; or (iii) otherwise required by any employee benefit plan in which he participates
with the following exception. The benefits afforded Employee under this Agreement are in lieu of any severance benefits to which
he otherwise might be entitled pursuant to a severance plan, policy and practice. Nothing in this Agreement, however, is intended
to waive or supplant any death, disability, retirement, 401(k) pension benefits, or group health continuation rights, if any, to
which he may be entitled under employee benefit plans in which he participates.

6.      TRADE SECRETS. CONFIDENTIAL
INFORMATION. COMPANY PROPERTY AND COMPETITIVE BUSINESS ACTIVITIES. Employee acknowledges that: (i) by virtue of his senior
management and key leadership position with the Company, Employee has had and will continue to have access to Trade Secrets and
Confidential Information, as defined below; (ii) the Company has business operations in multiple states and is engaged in the business
of providing financial services and products in retail, commercial, and corporate banking (the "Business"); and (iii)
the provisions set forth in this Confidential Information, Company Property and Competitive Business Activities Section are reasonably
necessary to protect the Company's legitimate business interests, are reasonable as to time, territory and scope of activities
which are restricted, do not interfere with public policy or public interest and are described with sufficient accuracy and definiteness
to enable him to understand the scope of the restrictions imposed upon him.

6.1     Trade Secrets and Confidential
Information . Employee acknowledges that: (i) the Company will disclose to him certain Trade Secrets and Confidential
Information; (ii) Trade Secrets and Confidential Information are the sole and exclusive property of the Company (or a third party
providing such information to the Company) and the Company or such third party owns all worldwide rights therein under patent,
copyright, trade secret, confidential information, or other property right; and (iii) the disclosure of Trade Secrets and Confidential
Information to Employee does not confer upon him any license, interest or rights of any kind in or to the Trade Secrets or Confidential
Information.

6.1.1 Employee may use the
Trade Secrets and Confidential Information only in accordance with applicable Company policies and procedures and solely for the
Company's benefit while he is employed or otherwise retained by the Company. Except as authorized in the performance of services
for the Company, Employee will hold in confidence and not directly or indirectly, in any form, by any means, or for any purpose,
disclose, reproduce, distribute, transmit, or transfer Trade Secrets or Confidential Information or any portion thereof. Upon the
Company's request, Employee shall return Trade Secrets and Confidential Information and all related materials.

    	 

    	 

    

6.1.2 If Employee is required
to disclose Trade Secrets or Confidential Information pursuant to a court order or other government process or such disclosure
is necessary to comply with applicable law or defend against claims, he shall: (i) notify the Company promptly before any such
disclosure is made; (ii) at the Company's request and expense take all reasonably necessary steps to defend against such disclosure,
including defending against the enforcement of the court order, other government process or claims; and (iii) permit the Company
to participate with counsel of its choice in any proceeding relating to any such court order, other government process or claims.

6.1.3 Employee's obligations
with regard to Trade Secrets shall remain in effect for as long as such information shall remain a trade secret under applicable
law.

6.1.4 Employee's obligations
with regard to Confidential Information shall remain in effect while he is employed or otherwise retained by the Company and for
five (5) years thereafter.

6.1.5 As used in this Agreement, "Trade
Secrets" means information of the Company, suppliers, customers, or prospective customers, including, but not limited to,
data, formulas, patterns, compilations, programs, devices, methods, techniques, processes, financial data, financial plans, product
plans, or lists of actual or potential customers or suppliers, which: (i) derives independent actual or potential commercial value,
from not being generally known to or readily ascertainable through independent development by persons or entities who can obtain
economic value from its disclosure or use; and (ii) is the subject of efforts that are reasonable under the circumstances to maintain
its secrecy.

6.1.6 As used in this Agreement,
"Confidential Information" means information other than Trade Secrets, that is of value to its owner and is treated as
confidential, including, but not limited to, future business plans, marketing campaigns, and information regarding employees, provided,
however, Confidential Information shall not include information which is in the public domain or becomes public knowledge through
no fault of Employee.

6.2     Company Property. Upon
the termination of his employment or upon Company's earlier request, Employee shall: (i) deliver to the Company all records, memoranda,
data, documents and other property of any description which refer or relate in any way to Trade Secrets or Confidential Information,
including all copies thereof, which are in his possession, custody or control; (ii) deliver to the Company all Company property
(including, but not limited to, keys, credit cards, customer files, contracts, proposals, work in process, manuals, forms, computer-stored
work in process and other computer data, research materials, other items of business information concerning any Company customer,
or Company business or business methods, including all copies thereof) which is in his possession, custody or control; (iii) bring
all such records, files and other materials up to date before returning them; and (iv) fully cooperate with the Company in winding
up his work and transferring that work to other individuals designated by the Company.

6.3     Competitive Business Activities.
Employee agrees that during the Term of this Agreement and for a period of time ending on the date occurring six months (6) months
after the later of the date his employment terminates and/or this Agreement terminates (irrespective of the circumstances of such
termination) (the "Non-Competition Period"), Employee will not engage in the following activities:

(a)     on Employee's own or another's
behalf, whether as an officer, director, stockholder, partner, associate, owner, employee, consultant or otherwise:

(i)     compete
with the Company in the Company' s Business;

(ii)     solicit
or do business which is the same, similar to or otherwise in competition with the Company' s Business, from or with persons or
entities : (a) who are customers of the Company; (b) who Employee or someone for whom he was responsible solicited, negotiated,
contracted, serviced or had contact with on the Company's behalf; or (c) who were customers of the Company at any time during the
last year of Employee's employment with the Company; or

 

(iii)      offer employment to or otherwise solicit
for employment any employee or other person who had been employed by the Company during the last year of Employee's employment
with the Company;

(b)     be
employed (or otherwise engaged) in (i) a management capacity, (ii) other capacity providing the same or similar services which
Employee provided to the Company, or (iii) any capacity connected with competitive business activities, by any person or entity
that engages in the same, similar or otherwise competitive business as the Company's Business; or

    	 

    	 

    

(c)     directly
or indirectly take any action, which is materially detrimental, or

otherwise intended to be adverse to the Company's goodwill, name, business relations, prospects and operations.

6.3.1 The restrictions set forth in Section
6.3(a)(i) apply to the following geographical areas: (i) within a 60-mile radius of the location of Company's headquarters during
Employee's employment with the Company; (ii) and within a 25-mile radius of the location of any bank branch.

6.3.2 Notwithstanding the foregoing,
Employee's ownership, directly or indirectly, of not more than one percent of the issued and outstanding stock of a corporation
the shares of which are regularly traded on a national securities exchange or in the over-the-counter market shall not violate
Section 6.3.

6.4     Remedies. Employee
acknowledges that his failure to abide by the Confidential Information, Company Property or Competitive Business Activities provisions
of this Agreement would cause irreparable harm to the Company for which legal remedies would be inadequate. Therefore, in addition
to any legal or other relief to which the Company may be entitled by virtue of Employee's failure to abide by these provisions;
the Company may seek legal and equitable relief, including, but not limited to, preliminary and permanent injunctive relief, for
Employee's actual or threatened failure to abide by these provisions without the necessity of posting any bond, and Employee will
indemnify the Company for all expenses including attorneys' fees in seeking to enforce these provisions.

6.5     Tolling. The period
during which Employee must refrain from the activities set forth in Sections 6.1 and 6.3 shall be tolled during any period in which
he fails to abide by these provisions.

6.6     Other Agreements. Nothing
in this Agreement shall terminate, revoke or diminish Employee's obligations or the Company's rights and remedies under law or
any agreements relating to trade secrets, confidential information, non-competition and intellectual property which Employee has
executed in the past, or may execute in the future or contemporaneously with this Agreement.

 

7.     EXECUTIVE
REPRESENTATION. Employee represents and warrants that his employment and obligations under this Agreement will not (i)
breach any duty or obligation he owes to another or (ii) violate any law, recognized ethics standard or recognized business custom.

 

8.     RESIGNATION
OF ALL OTHER POSITIONS. Upon termination of Employee's employment hereunder, for any reason, Employee shall be deemed to
have resigned from all positions that Employee holds as an officer or member of the Board of Directors of the Company or any of
its subsidiaries or affiliates.

9.     WAIVER
OF BREACH. The Company's or Employee's waiver of any breach of a provision of this Agreement shall not waive any subsequent
breach by the other party.

10.     ENTIRE
AGREEMENT. Except as expressly provided in this Agreement, this Agreement: (i) supersedes and cancels all other understandings
and agreements, oral or written, with respect to Employee's employment with the Company including any prior employment agreement;
(ii) supersedes all other understandings and agreements, oral or written, between the parties with respect to the subject matter
of this Agreement; and (iii) constitutes the sole agreement between the parties with respect to this subject matter. Each party
acknowledges that: (i) no representations, inducements, promises or agreements, oral or written, have been made by any party or
by anyone acting on behalf of any party, which are not embodied in this Agreement; and (ii) no agreement, statement or promise
not contained in this Agreement shall be valid. No change or modification of this Agreement shall be valid or binding upon the
parties unless such change or modification is in writing and is signed by the parties.

11.     SEVERABILITY.
If a court of competent jurisdiction holds that any provision or sub-part thereof contained in this Agreement is invalid, illegal
or unenforceable, that invalidity, illegality or unenforceability shall not affect any other provision in this Agreement. Additionally,
if any of the provisions, clauses or phrases in Section 6, Trade Secrets, Confidential Information, Company Property and Competitive
Business Activities, are held unenforceable by a court of competent jurisdiction, then the parties desire that such provision,
clause, or phrase be "blue-penciled" or rewritten by the court to the extent necessary to render it enforceable.

12.     PARTIES
BOUND. The terms, provisions, covenants and agreements contained in this Agreement shall apply to, be binding upon and
inure to the benefit of the Company's successors and assigns. Employee may not assign this Agreement.

    	 

    	 

    

13.     REMEDIES.
Employee acknowledges that his breach of this Agreement would cause the Company irreparable harm for which damages would be difficult,
if not impossible, to ascertain and legal remedies would be inadequate. Therefore, in addition to any legal or other relief to
which the Company may be entitled by virtue of the Employee's breach or threatened breach of this Agreement, the Company may seek
equitable relief, including but not limited to preliminary and injunctive relief, and such other available remedies.

14.     GOVERNING
LAW. This Agreement and the employment relationship created by it shall be governed by North Carolina law.

 

15.      SECTION 409A OF THE INTERNAL REVENUE
CODE.

15.1      Parties' Intent.
The parties intend that the provisions of this Agreement comply with Section 409A of the Internal Revenue Code of 1986, as amended
(the "Code"), and the regulations thereunder (collectively, "Section 409A") and all provisions of this Agreement
shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. If any provision
of this Agreement (or of any award of compensation, including equity compensation or benefits) would cause Employee to incur any
additional tax or interest under Section 409A, the Company shall, upon the specific request of Employee, use its reasonable business
efforts to in good faith reform such provision to comply with Code Section 409A; provided, that to the maximum extent practicable,
the original intent and economic benefit to Employee and the Company of the applicable provision shall be maintained, and the Company
shall have no obligation to make any changes that could create any additional economic cost or loss of benefit to the Company.
The Company shall timely use its reasonable business efforts to amend any plan or program in which Employee participates to bring
it in compliance with Section 409A. Notwithstanding the foregoing, the Company shall have no liability with regard to any failure
to comply with Section 409A so long as it has acted in good faith with regard to compliance therewith.

15.2      Separation from Service.
A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for
the payment of any amounts or benefits upon or following a termination of employment unless such termination also constitutes a
"Separation from Service" within the meaning of Section 409A and, for purposes of any such provision of this Agreement,
references to a "termination," "termination of employment," "separation from service" or like terms
shall mean "Separation from Service."

15.3      Separate Payments.
Each installment payment required under this Agreement shall be considered a separate payment for purposes of Section 409A.

15.4      Delayed Distribution to Key
Employees. If the Company determines in accordance with Sections 409A and 416(i) of the Code and the regulations promulgated
thereunder, in the Company's sole discretion, that the Employee is a Key Employee of the Company on the date his employment with
the Company terminates and that a delay in benefits provided under this Agreement is necessary to comply with Code Section 409A(A)(2)(B)(i),
then any severance payments and any continuation of benefits or reimbursement of benefit costs provided by this Agreement, and
not otherwise exempt from Section 409A, shall be delayed for a period of six (6) months following the date of termination of the
Employee's employment (the "409A Delay Period"). In such event, any severance payments and the cost of any continuation
of benefits provided under this Agreement that would otherwise be due and payable to the Employee during the 409A Delay Period
shall be paid to the Employee in a lump sum cash amount in the month following the end of the 409A Delay Period. For purposes of
this Agreement, "Key Employee" shall mean an employee who, on an Identification Date ("Identification Date"
shall mean each December 31) is a key employee as defined in Section 416(i) of the Code without regard to paragraph (5) thereof.
If the Employee is identified as a Key Employee on an Identification Date, then Employee shall be considered a Key Employee for
purposes of this Agreement during the period beginning on the first April 1 following the Identification Date and ending on the
following March 31.

16.     Counterparts. This
Agreement may be executed in counterparts, each of which shall be an original, with the same effect as if the signatures affixed
thereto were upon the same instrument.

    	 

    	 

    

 

IN WITNESS WHEREOF, the parties have entered
into this Agreement on the day and year first written above.

 

 

 

	EMPLOYEE
	 
	 
	/s/ Edward F. Soccorso
	Edward F. Soccorso
	 
	 
	 
	 
	FIRST BANCORP
	 
	By:   /s/ Richard H. Moore
	Title:  Chief Executive Officer/PresidentDNR - 2014.03.31 - EX 10a

Exhibit 10(a)

$ _________ Maximum Performance Cash    Date of Grant:  January 3, 2014

2014 PERFORMANCE CASH AWARD 

2004 OMNIBUS STOCK AND INCENTIVE PLAN

FOR DENBURY RESOURCES INC.

This PERFORMANCE CASH AWARD (this “Award”) made effective on the Date of Grant by Denbury Resources Inc. (the “Company”) in favor of «Officer_Name» (“Holder”).

WHEREAS, in accordance with Section 17 of the 2004 Omnibus Stock and Incentive Plan for Denbury Resources Inc., as amended and/or restated (the “Plan”), the Committee may grant performance-based Awards; 

WHEREAS, the Committee desires to grant to Holder an Award under which Holder can earn a maximum of $__________ based on the performance factors set forth in this Award, and subject to all of the provisions, including without limitation the Vesting provisions, of the Plan and this Award; and 

WHEREAS, the Company and Holder understand and agree that this Award is in all respects subject to the terms, definitions and provisions of the Plan, all of which are incorporated herein by reference, except to the extent otherwise expressly provided in this Award.

NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the parties agree as follows:

		
	1.
	Performance Cash Grant.  The Company hereby grants Holder the right to earn, Vest in and be paid on the Payment Date, up to $________ (“Performance Cash”) subject to the terms and conditions set forth in the Plan and in this Award.

		
	2.
	Definitions.  All words capitalized herein that are defined in the Plan shall have the meaning assigned them in the Plan; other capitalized words shall have the following meaning, or shall be defined elsewhere in this Award: 

(a) “Actual Reported Production” means production of oil, condensate, natural gas liquids (“NGLs”), natural gas, synthetic oil, and synthetic gas expressed on a BOE-per-day basis, as reported in each Peer Company’s and the Company’s Form 10-K for the Performance Period, excluding production generated from each such company’s equity-method investee(s), if any.

(b) “BOE” means Barrels of Oil Equivalent, and for all purposes hereof, will be calculated using the ratio of one barrel of crude oil, condensate or NGLs to six thousand cubic feet of natural gas.

(c) “Calculated Estimate of General and Administrative Expense” means for each Non-Upstream-Focused Company, individually, (i) the quotient (rounded to four decimals and expressed as a percentage) of (x)  its oil and natural gas revenues derived from exploration and production activities (as disclosed in its Form 10-K for the Performance Period in accordance with Financial Accounting Standards Board Codification (“FASC”) 932-235-50 (”FAS 69”) in its Form 10-K for the Performance Period), divided by (y)  its total revenues reported on its consolidated income statement in its Form 10-K for the Performance Period; multiplied by (ii) its total general and administrative expenses for the Performance Period as reported on its consolidated income statement in its Form 10-K.

(d) “Change in Future Development Costs” means for each Peer Company and the Company, future development costs at December 31, 2014 less future development costs at December 31, 2013,  as reported in each Peer Company’s and the Company’s Form 10-K disclosure of its standardized measure of discounted future net cash flows from proved oil, condensate, natural gas liquid (“NGL”), natural gas, synthetic oil, and synthetic gas (or other nonrenewable natural resources that are intended to be upgraded into synthetic oil and gas) reserves.  

1

(e)  “Change in Unproved Properties” means for each Peer Company and the Company, the balance of unproved or unevaluated oil and natural gas properties at December 31, 2014 less the balance of unproved or unevaluated oil and natural gas properties at December 31, 2013, as reported on each Peer Company’s and the Company’s Form 10-K.

(f) “CO2 Discovery and Operating Expenses” means expense related to the exploration or production of CO2 included in the Company’s Statement of Operations in its Form 10-K.

(g) “Committee Percentage Point Reduction” means the number (if any) of Performance Percentage Points (not in excess of the Committee Percentage Point Reduction Limitation) by which the Committee reduces Holder’s Performance Percentage Points in accordance with Section 7 hereof.

(h) “Committee Percentage Point Reduction Limitation” means the lesser of (i) forty (40) Performance Percentage Points, or (ii) the product of (x) Holder’s Performance Percentage Points earned during the Performance Period as determined prior to the application of the Committee Percentage Point Reduction, multiplied by (y) twenty-five percent (25%).

(i) “Development Capital Expenditures” means, for each Fiscal Year period within the Performance Period, the sum of the amounts of the line items presented in the “Cash Flow Used for Investing Activities” (or similar) section of the Company’s Statement of Cash Flows in its Form 10-K for such Fiscal Year that represent the Company’s oil and natural gas and CO2 development activities (which for example included in the Company’s Form 10-K for 2013 capital expenditures for oil and gas;  CO2 properties; and pipelines and plants), as such line items showing amounts of capital expenditures may change from year to year, adjusted to include the change in accruals related to those expenditures during the Fiscal Year (as disclosed in the Company’s financial statement footnotes filed in its Form 10-K).  As a point of clarification, Development Capital Expenditures should include all capital expenditures incurred during the Fiscal Year, regardless of whether those capital expenditures were paid in cash during the year or recorded as a liability for future payment. Development Capital Expenditures do not include cash outflows incurred to acquire, or invest in, businesses or properties. 

(j) “Disability” means, without limitation, the same as it does in the Plan. 

(k) “Earned Performance Cash” means the amount of Performance Cash earned during the Performance Period as described and calculated in Section 8 hereof.

(l) “Finding and Development Cost per BOE” means for each Peer Company and for the Company, individually, the quotient of (i) the sum of (a) the number in the table in Appendix A in Column 2, opposite each such company’s name presented in the table in Appendix A in Column 1, and (b) its Performance Period Finding and Development Cost, divided by (ii) the sum of (x) the number in the table in Appendix A in Column 3, opposite each such company’s name presented in the table in Appendix A in Column 1 and (y) its Performance Period Net Reserve Additions.

(m) “Fiscal Year” means the 12-month period adopted by the Company for financial reporting purposes. 

(n) “General and Administrative Expense” means the general and administrative expense included in the Company’s consolidated Statement of Operations in its Form 10-K filing. 

(o) “Lease Operating Expense” means the lease operating expense related to the production of oil, natural gas, natural gas liquids, synthetic oil and synthetic gas included in the Company’s Statement of Operations in its Form 10-K. 

(p) “Non-Upstream-Focused Company” means the Peer Companies so designated in Appendix B. 

(q) “Peer Company” means each of the companies listed in Appendix B hereto that files a Form 10-K that includes financial statements covering the Performance Period with the Securities and Exchange Commission by March 1, 2015. 

(r) “Payment Date” means the date on which Performance Cash Vested and earned under this Award is paid to Holder, which shall be any date selected by the Committee which is not later than 30 days after the Vesting Date or such later date as may be caused by unusual circumstances beyond the reasonable control of the Committee.  

(s) “Performance Cash” means the amount of cash subject to this Award, as shown on the first page of this Award.

2

(t) “Performance Measures” include the following:  the (i) Production Measure, (ii) Total Cost Measure, (iii) Capital Efficiency Ratio Measure and (iv) Reserve Replacement Measure, as set forth herein; provided, further, that when reference to a specific Performance Measure is intended, reference will be made to such specific Performance Measure.

(u) “Performance Percentage” means the excess of (i) Holder’s aggregate Performance Percentage Points, over (ii) the Committee Percentage Points Reduction, if any, determined as of the last day of the Performance Period. 

(v) “Performance Percentage Points” means, collectively, the points, designated as Performance Percentage Points, earned with respect to each Performance Measure during the Performance Period.  

(w) “Performance Period” means the period beginning on January 1, 2014, and ending on December 31, 2014. 

(x) “Performance Period Finding and Development Cost” means, as reported in each Peer Company’s and the Company’s Form 10-K in accordance with FAS 69 for the Performance Period and excluding any costs generated by each such company’s equity method investee(s), if any, (x) the sum of (i) its property acquisition, exploration and development costs incurred (including asset retirement obligations), (ii) its Change in Future Development Costs, and (iii) its depletion and depreciation expense related to CO2 properties and CO2 pipelines, if any, less (y) its Change in Unproved Properties.  

(y) “Performance Period Net Reserve Additions” means as reported in each Peer Company’s and the Company’s Form 10-K in accordance with FAS 69 for the Performance Period the sum of (i) its oil, condensate, NGL, natural gas, synthetic oil, synthetic gas (or other nonrenewable natural resources that are intended to be upgraded into synthetic oil and gas) proved reserve extensions and discoveries; (ii) its proved  reserves from improved recovery; (iii) its revisions of previous proved reserves estimates and (iv) acquisition of minerals in place; each excluding those owned by an equity method investee(s), expressed on a BOE basis. 

(z) “Performance Period Pretax Operating Income” means, (a) for Upstream-Focused Companies, pre-tax income, as reported on the consolidated Income Statement in each Peer Company’s and the Company’s Form 10-K for the Performance Period, adjusted to exclude the following items, as applicable: (i) interest income and expense; (ii) exploration expense; (iii) depletion, depreciation, amortization and accretion expense; (iv) commodity derivative gains and losses; (v) impairment charges; (vi) gains and losses incurred on the extinguishment of debt; and (vii) gains and losses incurred on the purchase or sale of assets, and (b) for Non-Upstream-Focused Companies, pre-tax income, as reported by the Peer Company or the Company in accordance with FASC 932-235-50 (previously FAS 69), adjusted to exclude the following items, as applicable:  (i) interest income and expense; (ii) exploration expense; (iii) depletion, depreciation, amortization and accretion expense;  (iv) commodity derivative gains and losses; (v) impairment charges; (vi) gains and losses incurred on the extinguishment of debt; (vii) gains and losses incurred on the purchase or sale of assets, and (vii) general and administrative expenses.  Performance Period Pretax Operating Income for Non-Upstream-Focused Entities will also be reduced by such company’s Calculated Estimate of General and Administrative Expense.  Performance Period Pretax Operating Income will include all operations of each such company, other than those related to an equity-method investment, including operations that qualify as discontinued operations under generally accepted accounting principles in the United States of America.

(aa) “Performance Period Pretax Operating Income per BOE” means for each Peer Company and for the Company, its Performance Period Pretax Operating Income divided by its Actual Reported Production.

(ab) “Plant Operating Expense” means operating expenses related to the operation of the Riley Ridge gas processing facility or other gas production or separation facilities, as reported in the Company’s trial balance.

(ac) “Post Separation Change in Control” means a Change in Control which follows Holder’s Separation, but results from the Commencement of a Change in Control that occurs prior to Holder’s Separation.  For all purposes of this Award, the term “Commencement of a Change in Control” means the date on which any material action, including without limitation through a written offer, open-market bid, corporate action, proxy solicitation or otherwise, is taken by a “person” (as defined in Section 13(d) or Section 14(d)(2) of the 1934 Act), or a “group” (as defined in Section 13(d)(3) of the 1934 Act), or their affiliates, to commence efforts that, within 12 months after the date of such material action, leads to a Change in Control involving such person, group, or their affiliates.
    
(ad) “Target Performance Cash” means $_______ of Performance Cash, which is the amount of Performance Cash which will be Earned if Holder’s Performance Percentage is 100%.  

(ae) “Upstream-Focused Companies” means the Company and those companies so designated in Appendix B.

3

(af) “Vesting Date” means March 31, 2015.

		
	3.
	Performance Percentage Points Earned With Respect To The Production Measure.  

(a)Production Based Performance Percentage Points.  The Performance Percentage Points which will be credited to Holder with respect to the Production Measure are set forth in the following Chart based on the Average Annual Production Percentage.  The “Average Annual Production Percentage” means the quotient (rounded to four decimal places and then expressed as a percentage) of (x) the Adjusted Production for such Performance Period, divided by (y) the Production Target for such Performance Period specified in Appendix C to this Award.
	
			
	 
	Average Annual Production Percentage
	Performance Percentage Points

	A.
	103.87% or more
	60

	B.
	101.94% to 103.86%
	48

	C.
	100.00% to 101.93%
	36

	D.
	96.77% to 99.99%
	24

	E.
	Less than 96.77%
	0

(b)Adjusted Production.  For purposes of this Award, the “Adjusted Production” shall be equal to (i) the Actual Reported Production of the Company as reported in the Company’s Form 10-K for the Performance Period, minus (ii) the average daily production related to a property acquired during such Performance Period, such amount to be the lesser of (a) the actual daily production for such Performance Period from the acquired property or incremental property interest (if a partial interest) or (b) the forecasted daily production (as may be publicly disclosed at the first to occur of disclosure of the Company’s  agreement to purchase the property, or its purchase of  the property) related thereto for such Performance Period for the property, plus (iii) that portion of the Production Target which is directly attributable to any property disposed of or sold during such Performance Period for the period during which the Company did not own the property. 

		
	4.
	Performance Percentage Points Earned With Respect To The Total Cost Measure.  

(a)Total Cost Based Performance Percentage Points.  The Performance Percentage Points which will be credited to Holder with respect to the Total Cost Measure are set forth in the following Chart based on the Total Cost.  The “Total Cost” means (rounded to the nearest whole dollar), (i) for the Performance Period, the sum of (v) Development Capital Expenditures, (w) Lease Operating Expense, (x) Plant Operating Expense, (y) CO2 Discovery and Operating Expense and (z) General and Administrative  Expense, in each case incurred during the Performance Period plus (ii) Adjustments to Total Cost for the Performance Period.
	
			
	 
	Total Cost
	Performance Percentage Points

	A.
	< $1,950 million
	60

	B.
	$1,951 million - $2,050 million
	48

	C.
	$2,051 million - $2,150 million
	36

	D.
	$2,151 million - $2,250 million
	24

	E.
	More than $2,250 million
	0

(b)Adjustments to Total Cost.  For purposes of this Award, “Adjustments to Total Cost” means (i) for properties sold during the Performance Period, the Development Capital Expenditures, Lease Operating Expense, Plant Operating Expense, CO2 Discovery and Operating Expense, and General and Administrative Expense contained in budget for the Performance Period for that portion of such Performance Period during which the Development Capital Expenditures, Lease Operating Expense, Plant Operating Expense, CO2 Discovery and Operating Expense,  and General and Administrative expense related to such properties are not included in the Company’s cash flows or financial results minus (ii) for the Performance Period, the sum of Development Capital Expenditures, Lease Operating Expense, Plant Operating Expense, CO2 Discovery and Operating Expense, and General and Administrative Expenses incurred by the Company related to properties acquired during the Performance Period.

4

		
	5.
	Performance Percentage Points Earned With Respect to Capital Efficiency Ratio Measure.

(a)Capital Efficiency Ratio.  The “Capital Efficiency Ratio” means, for the Company and each Peer Company, expressed as a percentage for each such company, the quotient of (i) its Performance Period Pretax Operating Income per BOE, divided by (ii) its Finding and Development Cost per BOE.  The Capital Efficiency Ratio of the Company and each Peer Company is to be calculated as soon as practicable following the Performance Period.  Once calculated for the Company and for each Peer Company, the exact Capital Efficiency Ratio, expressed as a percentage, for each such company shall be listed in Column 3 of the table below in descending order of their respective Capital Efficiency Ratio from the highest percentage to the lowest percentage.  Column 2 of the table below shall reflect each such company’s name.  The Company’s “Capital Efficiency Percentage” will be that percentage opposite the ranking of the Company in column 1 of the table below, shown in the appropriate “Number of Companies” Column.  The appropriate “Number of Companies” Column is the column with the number equivalent to the sum of a) the number of Peer Companies plus b) one (the Company).

	
									
	Column 1
	Column 2
	Column 3
	“Number of Companies” Columns

	Ranking
	Company Name
	Capital Efficiency Ratio
	13
	12
	11
	10
	9
	8

	1
	 
	 
	100%
	100%
	100%
	100%
	100%
	100%

	2
	 
	 
	92%
	92%
	91%
	90%
	88%
	88%

	3
	 
	 
	85%
	83%
	82%
	80%
	77%
	75%

	4
	 
	 
	77%
	75%
	73%
	70%
	66%
	63%

	5
	 
	 
	69%
	67%
	64%
	60%
	55%
	50%

	6
	 
	 
	62%
	58%
	55%
	50%
	44%
	38%

	7
	 
	 
	54%
	50%
	45%
	40%
	33%
	25%

	8
	 
	 
	46%
	42%
	36%
	30%
	22%
	13%

	9
	 
	 
	38%
	33%
	27%
	20%
	11%
	 

	10
	 
	 
	31%
	25%
	18%
	10%
	 
	 

	11
	 
	 
	23%
	17%
	9%
	 
	 
	 

	12
	 
	 
	15%
	8%
	 
	 
	 
	 

	13
	 
	 
	8%
	 
	 
	 
	 
	 

(b)Performance Percentage Points. The Performance Percentage Points which will be credited to Holder with respect to the Capital Efficiency Percentage are set forth in the following Chart:
	
			
	 
	Capital Efficiency Percentage
	Performance
Percentage Points

	A.
	>= 90% to 100%
	 60

	B.
	>= 70% and <  90%
	 48

	C.
	>= 50% and <  70%
	 36

	D.
	>= 30% and < 50%
	 24

	E.
	Less than 30%
	 0

 
		
	6.
	Performance Percentage Points Earned With Respect To The Reserve Replacement Measure.  

The Performance Percentage Points Holder will earn with respect to the Reserve Replacement Measure will be based on the Company’s Reserve Replacement Percentage for the entire Performance Period.  “Reserve Replacement Percentage” means the quotient (rounded up to 3 decimal places and then expressed as a percentage) of (i) the Company’s Final Reserves less  its Initial Reserves, divided by (ii) Actual Reported Production for the Company for the Performance Period. 

(a)Performance Percentage Points. The Performance Percentage Points which will be awarded Holder for the Performance Period with respect to the Reserve Replacement Measure are set forth in the following Chart:

5

	
			
	 
	Reserve Replacement Percentage
	Performance Percentage Points

	A.
	300% or more
	20

	B.
	200% to 299%
	16

	C.
	150% to 199%
	12

	D.
	100% to 149%
	8

	E.
	Less than 100%
	0

(b)Initial Reserves.  For purpose of this Award, “Initial Reserves” means the total Company proved oil, condensate, NGL, and natural gas reserve quantities as of December 31, 2013 (expressed in BOEs) as estimated by DeGolyer and MacNaughton, independent petroleum engineers, and disclosed in the Company’s Form 10-K Report for 2013.   

(c)Final Reserves.  For purposes of this Award, “Final Reserves” means the sum of (i) the total Company proved oil, condensate, NGL, and natural gas reserve quantities on the last day of the Performance Period (expressed in BOEs) as estimated by DeGolyer and MacNaughton or the Company’s then-current independent petroleum engineer as disclosed in the Form 10-K for the Performance Period, determined using the same price deck as was used by the Company in calculating the Initial Reserves, plus (ii) the Uneconomic Reserves, plus (iii) the Disposed Reserves, plus (iv) Total Production.  The “Uneconomic Reserves” are those proved oil, condensate, NGL, and natural gas reserves (expressed in BOEs) which were included in the Initial Reserves, but are not considered proved reserves on the last day of the Performance Period solely because the price deck used to price oil and natural gas products and/or the prices used to estimate the capital costs required to develop the proved reserves as of the last day of the Performance Period have changed from those used in the Initial Reserve report such that the extraction of such otherwise proved reserves is uneconomic (i.e., Uneconomic Reserves cannot be reserves excluded from the Final Reserves because drilling activity during the period changed the status or evaluation of the reserves, or because the Company no longer holds the acreage or interest, or because factors other than commodity prices or changes in the estimated capital costs have made the project uneconomic).  The “Disposed Reserves” are those proved oil, condensate, NGL, and natural gas reserves quantities (expressed in BOEs) which were sold during the Performance Period and reported as such in the Company’s Form 10-K.

		
	7.
	Committee’s Reduction of Performance Percentage Points.  

Notwithstanding any provision hereof to the contrary, the Committee, in its sole discretion, by written notice to Holder prior to the Vesting Date, may reduce Holder’s otherwise earned Performance Percentage Points by applying a Committee Percentage Point Reduction.  

(a)Performance Percentage Points Reduction. The Committee will make its determination of the Committee Percentage Point Reduction amount (if any) based on the Committee’s subjective evaluation of Company performance with respect to each of the four Additional Committee Evaluation Factors listed in (b) below.  This evaluation will determine the amount of the Performance Percentage Points reduction (not to exceed the Committee Percentage Point Reduction Limitation) that will be the Committee Percentage Point Reduction for the Performance Period:

(b)For purposes of this Award, the “Additional Committee Evaluation Factors” are: 

(i)the Company’s compliance with corporate governance factors such as the ability to obtain an unqualified auditors’ opinion on the Company’s financial statements contained in its Form 10-K for the Performance Period, and avoid any financial restatements,

(ii)the Company’s maintenance of a reasonable debt-to-capital and/or debt-to-cash-flow ratio, 

(iii)the Company’s record as to health, safety and environmental compliance and results, and 

(iv)the increase in the net asset value per share of Company stock, determined after excluding the effects, to the extent reasonably practical, caused by fluctuations in commodity prices and capital and operating costs or other factors which are generally not controllable by the Company. 

6

		
	8.
	Earning Performance Cash.  

(a)Earned Performance Cash.  The amount of Earned Performance Cash shall be equal to the product of (i) the Target Performance Cash, multiplied by (ii) the Performance Percentage.  The Committee will determine and certify, and the Administrator will advise Holder, of Holder’s Performance Percentage as soon as reasonably possible thereafter.  

(b)Change in Control.  Notwithstanding the foregoing and any other provision hereof to the contrary, if a Change in Control occurs during the Performance Period then, regardless of the Performance Percentage at the date of the Change in Control, Holder will be entitled to receive delivery of all of the Target Performance Cash (notwithstanding any provision hereof to the contrary, none of which Target Performance Cash will be retained by the Company other than as payment for withholding) as soon as reasonably possible following such Change in Control, but in no event later than the 15th day of the third month after the end of the calendar year in which such Change in Control occurs, and Holder permanently shall forfeit the right to receive any other amounts of Performance Cash under this Award.

		
	9.
	Vesting (and Forfeiture) of Earned Performance Cash.  

(a)No Separation Prior to the Vesting Date.  If Holder does not Separate prior to the Vesting Date, Holder will be 100% Vested in the Earned Performance Cash. 

(b)Retirement Vesting Date. In the event Holder reaches his Retirement Vesting Date prior to the Vesting Date, Holder will be entitled to receive Performance Cash in an amount equal to the Earned Performance Cash on the Vesting Date, based on the actual performance results certified by the Committee, without any right to receive any additional Performance Cash, and without any proration of the amount of Performance Cash earned in such circumstances.  Notwithstanding the foregoing, in the event Holder Separates after Holder’s Retirement Vesting Date, but within 12 months of the Date of Grant, all rights to receive Performance Cash under this Award will be forfeited.

(c)Forfeiture. Except to the extent expressly provided in Sections 9(b) or (c), Holder permanently will forfeit all rights with respect to any Performance Cash upon the date of his Separation, if such Separation occurs prior to the Vesting Date.  

(i)Death.  If Holder Separates by reason of death prior to the Vesting Date, Holder’s Beneficiary will be entitled to receive Performance Cash in an amount equal to the Target Performance Cash (and does not have any right to receive any other amounts of Performance Cash under this Award) as soon as reasonably possible, but in no event more than 90 days after Holder’s death.  

(ii)Disability.  If Holder Separates by reason of a Disability prior to the Vesting Date, Holder will be entitled to receive Performance Cash in an amount equal to the Target Performance Cash (and does not have any right to receive any additional amounts of Performance Cash under this Award) as soon as reasonably possible but in no event later than the 15th day of the third month after the end of the calendar year following the Date on which the Committee determines that Holder is Disabled. 

(iii)Post Separation Change in Control.  If there is a Post Separation Change in Control, Holder will be entitled to receive Performance Cash in an amount equal to the Target Performance Cash (and does not have any right to receive any additional Performance Cash under this Award) as soon as reasonably possible after the date of the Change in Control but in no event later than the 15th day of the third month after the end of the calendar year in which such Change in Control occurs.

		
	10.
	Withholding.  On the Vesting Date, the minimum statutory withholding required to be made by the Company shall be paid by Holder (or Holder’s Beneficiary) to the Administrator in cash, or by authorizing the Company to retain an amount of Performance Cash, or a combination thereof. 

		
	11.
	Administration.  Without limiting the generality of the Committee’s rights, duties and obligations under the Plan, the Committee shall have the following specific rights, duties and obligations with respect to this Award.  Without limitation, the Committee shall interpret conclusively the provisions of the Award, adopt such rules and regulations for carrying out the Award as it may deem advisable, decide conclusively all questions of fact arising in the application of the Award, certify the extent to which Performance Measures have been satisfied and the number of Performance Percentage Points earned, exercise its right to reduce Performance Percentage Points, and make all other determinations and take all other actions necessary or desirable for the administration of the Award.  The Committee is authorized to change any of the terms or conditions of the Award in order to take into account any material unanticipated change in the Company’s or a Peer Company’s operations, 

7

corporate structure, assets, or similar change, but only to the extent such action carries out the original purpose, intent and objectives of the Award, and, to the extent the Award is intended to qualify as “performance based” under Section 162(m) of the Internal Revenue Code, does not affect such qualification.  All decisions and acts of the Committee shall be final and binding upon Holder and all other affected parties.  

		
	12.
	Beneficiary.  Holder’s rights hereunder shall be exercisable during Holder’s lifetime only by Holder or Holder’s legal representative.  Holder may file with the Administrator a written designation of beneficiary (such person(s) being the Holder’s “Beneficiary”), on such form as may be prescribed by the Administrator. Holder may, from time to time, amend or revoke a designation of Beneficiary. If no designated Beneficiary survives Holder, the Holder’s estate shall be deemed to be Holder’s Beneficiary.

		
	13.
	Holder’s Access to Information.  As soon as reasonably possible after the close of the preceding Fiscal Year, the Committee (and the Administrator to the extent it shall have been directed by the Committee) shall make all relevant annually-determined calculations and determinations hereunder, and shall communicate such information to the Administrator.  The Administrator will furnish all such relevant information to Holder as soon as reasonably possible following the date on which all, or a substantial majority, of the information is available. 

		
	14.
	No Transfers Permitted.  The rights under this Award are not transferable by the Holder other than by will or the laws of descent and distribution, and so long as Holder lives, only Holder or his or her guardian or legal representative shall have the right to receive and retain Earned Performance Cash.    

		
	15.
	No Right To Continued Employment.  Neither the Plan nor this Award shall confer upon Holder any right with respect to continuation of employment by the Company, or any right to provide services to the Company, nor shall they interfere in any way with Holder’s right to terminate employment, or the Company’s right to terminate Holder’s employment, at any time. 

		
	16.
	Governing Law.  Without limitation, this Award shall be construed and enforced in accordance with, and be governed by, the laws of Delaware. 

		
	17.
	Binding Effect.  This Award shall inure to the benefit of and be binding upon the heirs, executors, administrators, permitted successors and assigns of the parties hereto.

		
	18.
	Waivers.  Any waiver of any right granted pursuant to this Award shall not be valid unless it is in writing and signed by the party waiving the right.  Any such waiver shall not be deemed to be a waiver of any other rights.

		
	19.
	Severability.  If any provision of this Award is declared or found to be illegal, unenforceable or void, in whole or in part, the remainder of this Award will not be affected by such declaration or finding and each such provision not so affected will be enforced to the fullest extent permitted by law.

IN WITNESS WHEREOF, the Company has caused this Award to be executed on its behalf by its duly-authorized representatives on the Date of Grant.

	
				
	 
	DENBURY RESOURCES INC.
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	By:
	 
	 
	 

	 
	Phil Rykhoek
CEO
	 
	Mark C. Allen
Senior VP, CFO & Asst. Secretary

8

ACKNOWLEDGMENT

The undersigned hereby acknowledges (i) receipt of this Award, (ii) the opportunity to review the Plan, (iii) the opportunity to discuss this Award with a representative of the Company, and the undersigned’s personal advisors, to the extent the undersigned deems necessary or appropriate, (iv) the understanding of the terms and provisions of the Award and the Plan, and (v) the understanding that, by the undersigned’s signature below, the undersigned is agreeing to be bound by all of the terms and provisions of this Award and the Plan.

Without limitation, the undersigned agrees to accept as binding, conclusive and final all decisions, factual determinations, and/or interpretations (including, without limitation, all interpretations of the meaning of provisions of the Plan, or Award, or both) of the Committee regarding any questions arising under the Plan, or this Award, or both.

Dated as of the effective date.

	
			
	 
	 
	 

	 
	 
	Holder Signature

9

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