Document:

pmts_Ex10_3

		
			Exhibit 10.3
		

		
			CPI CARD GROUP INC.
		

		
			EXECUTIVE SHORT-TERM INCENTIVE PLAN
		

		
			1.         Purpose. This CPI Card Group Inc. (the “Company”) Executive Short-Term Incentive Plan (the “Plan”) is designed to align the interests of the Company and eligible key employees of the Company and its subsidiaries.
		

		
			2.         Adoption of the Plan. The Company, intending to be legally bound, hereby adopts the Plan effective as of January 1, 2020 (the “Effective Date”). The Plan shall be in effect from the Effective Date and shall continue on an annual basis from January 1 through December 31 of each calendar year, unless earlier terminated or amended by the Company in accordance with Section 8(e) (the “Term”). The expiration or termination of the Term shall not in any event reduce or adversely affect any amounts due to any Participant hereunder for any Performance Period ending on or before such date.
		

		
			3.         General. Unless explicitly provided for in a written agreement between the Company and a Participant, the compensation provided under the Plan is intended to be in addition to all other compensation payable to Participants under any employment agreement or incentive plan or program in effect with the Company or its direct or indirect subsidiaries.
		

		
			4.         Definitions. For purposes of this Plan:
		

		
			(a)        “Adjusted EBITDA” means EBITDA as may be adjusted for (i) stock compensation expense, (ii) foreign currency changes, (iii) legal costs incurred with certain patent and shareholder litigation, (iv) impairments, (v) restructuring charges, (vi) other significant, unusual and non-recurring charges, and, (vii) on a quarterly basis, sales work-in-process. On an annual basis, sales work-in-process is included in Adjusted EBITDA in accordance with U.S. GAAP.
		

		
			(b)        “Adjusted Free Cash Flow” means Free Cash Flow as may be adjusted for (i) interest, (ii) cash taxes, (iii) stock compensation expense, (iv) foreign currency changes, (v) legal costs incurred with certain patent and shareholder litigation, (vi) impairments, (vii) impacts due to working capital timing between quarters, (viii) restructuring charges and (ix) other significant unusual and non-recurring events.
		

		
			(c)        “Annual Performance Incentive” means the amount designated as the Annual Performance Incentive in a Participant’s Participation Agreement.
		

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

		
			(e)        “Business Unit” means the Company’s Personalization Business Unit, Prepaid and Card at Once Business Unit, and Secure Card Business Unit.
		

		
			(f)        “Cause” means, unless otherwise specified in a Participant’s employment or other written agreement between the Participant and the Company, the Participant’s (i) material breach of Participant’s duties and responsibilities, which is not remedied within thirty (30) days after the Company gives the Participant written notice specifying such breach, (ii) commission of
		

		
			
		

		
			

		 

		

		
			a felony, (iii) commission of or engaging in any act of fraud, embezzlement, theft, a material breach of trust or any material act of dishonesty involving the Company or its subsidiaries, which, in each case, proximately causes substantial and material economic injury to the Company and its subsidiaries, taken as a whole, (iv) significant violation of the code of conduct of the Company or its subsidiaries or of any statutory or common law duty of loyalty to the Company or its subsidiaries, or (v) the Participant’s material breach of any written covenant or agreement with the Company or its subsidiaries not to disclose any confidential information related to the Company or its subsidiaries, or not to compete or interfere with the Company or its subsidiaries, which, in each case that, if susceptible to remedy, is not remedied within thirty (30) days after the Company gives the Participant written notice specifying such breach.
		

		
			(g)        “Committee” means the Compensation Committee of the Board.
		

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

		
			(i)         “Direct EBITDA” means earnings from continuing operations, before interest, taxes, depreciation, and amortization, as applicable to the Business Unit of the Participant, and as determined in accordance with past practice.
		

		
			(j)         “Disability” means, unless otherwise specified in a Participant’s employment or other written agreement between the Participant and the Company, a Participant’s inability, due to physical or mental incapacity, to perform the essential functions of the Participant’s job, for one hundred eighty (180) consecutive days.
		

		
			(k)        “EBITDA” means The Company’s earnings from continuing operations, before interest, taxes, depreciation, and amortization as determined in accordance with past practice.
		

		
			(l)         “Free Cash Flow” means cash flow from operations, less capital expenditures.
		

		
			(m)       “Good Leaver” means a Participant whose employment or service with the Company Group is terminated by the Company for a reason other than Cause, is terminated by the Participant for Good Reason or is terminated due to the Participant’s death or Disability.
		

		
			(n)        “Good Reason” means, unless otherwise specified in a Participant’s employment or other written agreement between the Participant and the Company, any of the following, in each case, without the Participants written consent: (i) a change in the Participant’s title or any material diminution of Participant’s responsibilities or authority or the assignment of any duties inconsistent with the Participant’s position, in each case, compared to what was in effect as of the Effective Date; (ii) a reduction of the Participant’s annual base salary; or (iii) a relocation of the Participant’s principal office location more than fifty (50) miles from the Company’s offices at which the Participant is based as of the Effective Date (except for required travel on the Company’s business to an extent substantially consistent with the Participant’s business travel obligations as of the Effective Date). Notwithstanding the foregoing, the occurrence of an event that would otherwise constitute Good Reason will cease to be an event constituting Good Reason upon any of the following: (x) the Participant’s failure to provide written notice to the Company
		

		
			
		

		
			

		 

		

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			within thirty (30) days of the first occurrence of such event; (y) substantial correction of such occurrence by the Company within thirty (30) days following receipt of the Participant’s written notice described in (x); or (z) the Participant’s failure to actually terminate employment within the thirty (30)-day period following the expiration of the Company’s thirty (30)-day cure period.
		

		
			(o)        “Net Sales” means net sales adjusted for work-in-process on a quarterly basis.  On an annual basis, sales work-in-process is included in “Net Sales” in accordance with U.S. GAAP.
		

		
			(p)        “Participant” shall have the meaning ascribed thereto in Section 5 hereof.
		

		
			(q)        “Participation Agreement” means the agreement or notification provided to a Participant granting a Participant the opportunity to earn a Performance Incentive under this Plan.
		

		
			(r)        “Performance Goals” means the Performance Metrics established by the Committee for the Board, that will be consist of (i) Quarterly Threshold Performance Goals, (ii) Quarterly Target Performance Goals, (iii) Quarterly Maximum Performance Goals (collectively, the “Quarterly Performance Goals”), (iv) Annual Threshold Performance Goals, (v) Annual Target Performance Goals, and (iv) Annual Maximum Performance Goals (collectively, the “Annual Performance Goals”). For purposes of catch-up payments described in Section 6(b), “Performance Goals” will consist of (x) Cumulative Quarterly Threshold Performance Goals; (y) Cumulative Quarterly Target Performance Goals; and (z) Cumulative Quarterly Maximum Performance Goals, collectively, the “Cumulative Performance Goals” of applicable Performance Metrics.
		

		
			(s)        “Performance Incentive” means the Quarterly Performance Incentive and the Annual Performance Incentive.
		

		
			(t)         “Performance Metric” means the specific performance criteria used in determining Performance Goals for the Performance Period; provided that each Performance Metric shall be adjusted on a pro forma basis to take into account any acquisitions or dispositions consummated during the Performance Period. To the extent relevant, the Committee shall have the discretion to adjust the Performance Metrics on a pro forma basis to exclude costs and benefits associated with the Company’s restructuring and other unusual and/or non-recurring items.
		

		
			(u)        “Performance Period” means with respect to the calendar year indicated in a Participant’s Participation Agreement, (i) for Participant’s Quarterly Performance Incentive, each successive calendar quarter commencing on January 1 of such calendar year, and (ii) for a Participant’s Annual Performance Incentive, such calendar year.
		

		
			(v)        “Quarterly Performance Incentive” means the amount designated as the Quarterly Performance Incentive in a Participant’s Participation Agreement.
		

		
			(w)       “Section 409A” means Section 409A of the Internal Revenue Code of 1986, as amended.
		

		
			
		

		
			

		 

		

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			5.         Eligible Participants. Each person designated by the Committee from time to time shall be a Participant under the Plan and eligible to receive a Quarterly Performance Incentive and an Annual Performance Incentive with respect to each applicable Performance Period.
		

		
			6.         Term of Participation.
		

		
			(a)        Quarterly Performance Incentive. Quarterly Performance Incentives will be earned in accordance with this Section 6(a).
		

		
			(i)         Single Quarter Measurement. Subject to the provisions of this Plan and any Participation Agreement, each Participant shall earn a Quarterly Performance Incentive as of the end of each applicable Performance Period, depending upon the extent to which the Performance Goals have been achieved for such Performance Period.
		

		
			(ii)       Cumulative Measurement. In addition to being measured on a quarterly basis, each Performance Metric shall be measured cumulatively as of the end of the second Performance Period and each Performance Period thereafter (a “Relevant Performance Period”). A “catch-up” payment may be made to the extent the Company equals or exceeds the Cumulative Performance Goals/Metrics for the applicable Performance Period. The amount of the catch-up payment will be equal to the excess of (i) the aggregate Quarterly Performance Incentive payable for such Relevant Performance Period based on the achievement of the applicable Cumulative Performance Goals for such Relevant Period over (ii) the aggregate amount of Quarterly Performance Incentives previously paid to the Participant and the amount payable to the Participant under Section 6(a)(i) above for the Relevant Performance Period.
		

		
			(b)        Annual Performance Incentive. Annual Performance Incentives will be earned in accordance with this Section 6(b). Subject to the provisions of this Plan and any Participation Agreement, each Participant shall earn an Annual Performance Incentive as of the end of the applicable Performance Period, depending upon the extent to which the applicable Performance Goals have been achieved for such Performance Period.
		

		
			(c)        Performance Goals.  Exhibit A sets forth the (i) relevant Performance Goals for each Performance Period and (ii) the percentage of each Participant’s Quarterly Performance Incentive amount and Annual Incentive Performance amount payable upon the achievement of the applicable Performance Goals. The payout schedule for a Performance Incentive for a Participant shall be based on the (a) Participant’s individual target payment amount that has been approved by the Committee and included in the Participant’s Participation Agreement and (b) the level of achievement of the applicable Performance Metrics for a particular Performance Period. Except as otherwise may be provided by the Committee, in its sole discretion, no Performance Incentive shall be payable for a Performance Metric unless the applicable Threshold Performance Goals for such Performance Metric are achieved. Notwithstanding anything to the contrary herein, the Committee shall have the right, in its sole discretion, to reduce or eliminate all or any portion of Performance Incentive payable to a Participant based on individual performance or any other factors that the Committee, in its discretion, shall deem appropriate.
		

		
			
		

		
			

		 

		

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			(d)        Continued Employment. Except as set forth below, to earn a Performance Incentive for any Performance Period, a Participant must remain employed by the Company Group through the date on which the Performance Incentive for the applicable Performance Period is paid. Except as set forth in this Section 6(d), a Participant whose employment with the Company terminates for any reason prior to the date on which the Performance Incentive for the applicable Performance Period is paid shall forfeit the right to any Performance Incentive for that Performance Period. Notwithstanding the foregoing, a Participant who becomes a Good Leaver during a Performance Period shall be entitled to a pro rata portion (based on the percentage of the Performance Period the Participant was engaged by the Company Group) of the Performance Incentive that would otherwise have been earned for such Performance Period.
		

		
			7.         Performance Certification. Promptly after the end of each Performance Period and as soon as quarterly financials are estimable, the Committee shall certify the degree to which the applicable Performance Goals have been achieved and the amount of Payment Incentive payable to each Participant hereunder. Any Performance Incentive required to be made under this Plan shall be paid on a fully-vested basis by the Company as soon as possible after the end of the applicable Performance Period, but in any event not less than (i) forty five (45) days after the end of the Performance Period with respect to the Quarterly Performance Incentive for the first, second and third quarterly Performance Period, and (ii) seventy-five (75) days after the end of the Performance Period with respect to the fourth quarter Quarterly Performance Incentive and the Annual Performance Incentive.
		

		
			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 (or its delegate, as applicable) shall have full power and authority to construe and interpret this Plan and any interpretation by the Committee shall be binding on all Participants and shall be accorded the maximum deference permitted by law.
		

		
			(a)        All rights and interests of Participants under this Plan shall be non-assignable and nontransferable, 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)        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 related to this Plan, and the Company may require Participant, as a condition precedent to such payment, to execute a receipt and release to such effect.
		

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

		
			
		

		
			

		 

		

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			(d)        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. Quarterly Performance Incentive payments shall not be considered as extraordinary, special incentive compensation, and it will not be included as “earnings,” “wages,” “salary,” or “compensation” in any welfare, life insurance or other arrangement of the Company Group.
		

		
			(e)        The Company shall have the right, in its sole discretion, to modify, supplement, suspend or terminate this Plan at any time; provided that, except as required by law, in no event shall any amendment or termination adversely affect the rights of Participants regarding any Performance Incentive for a Performance Period that has commenced as of the date of such action without the prior written consent of the affected Participants. Subject to the foregoing, the Plan shall terminate upon the satisfaction of all obligations of the Company or its successor entities hereunder.
		

		
			(f)        Nothing contained in this Plan shall in any way affect the right and power of the Company to discharge any Participant or otherwise terminate his or her employment at any time or for any reason or to change the terms of his or her employment in any manner.
		

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

		
			(h)        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)         The administration of the Plan shall be governed by the laws of Colorado, without regard to the conflict of law principles of any state. Any persons or corporations who now are or shall subsequently become parties to the Plan shall be deemed to consent to this provision.
		

		
			(j)         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 Code Section 409A, the Plan is intended to comply with the requirements of Code Section 409A and shall be limited, construed and interpreted in accordance with such intent. Notwithstanding the foregoing, in no event whatsoever shall the Company be liable for any additional tax, interest, income inclusion or other penalty that may be imposed on a Participant by Code Section 409A or for damages for failing to comply with Code Section 409A.
		

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

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						CPI CARD GROUP INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						Name: 

					
					
						 

				
	
					
						 

					
					
						Its:

					
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

		
			Exhibit A
		

		
			Performance Metrics and Goals
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						1.   Payable if Quarterly Threshold Performance Metric Achieved:

					
					
						50% of the Applicable Portion of the Participant’s Target Quarterly Performance Incentive

				
	
					
						2.   Payable if Quarterly Target Performance Metric Achieved:

					
					
						100% of the Applicable Portion of the Participant’s Target Quarterly Performance Incentive

				
	
					
						3.   Payable if Quarterly Maximum Performance Metric Achieved:

					
					
						200% of the Applicable Portion of the Participant’s Target1 Quarterly Performance Incentive

				
	
					
						4.   Payable if Cumulative Quarterly Threshold Performance Metric Achieved:

					
					
						50% of the Applicable Portion of the Participant’s aggregate Target Quarterly Performance Incentive through the end of the Applicable Performance Period

				
	
					
						5.   Payable if Cumulative Quarterly Target Performance Metric Achieved:

					
					
						100% of the Applicable Portion of the Participant’s aggregate Target Quarterly Performance Incentive through the end of the Applicable Performance Period

				
	
					
						6.   Payable if Cumulative Quarterly Maximum Performance Metric Achieved:

					
					
						200% of the Applicable Portion of the Participant’s aggregate Target Quarterly Performance Incentive through the end of the Applicable Performance Period2

				
	
					
						7.   Payable if Annual Threshold Performance Metric Achieved:

					
					
						50% of the Applicable Portion of the Participant’s Target Annual Performance Incentive

				
	
					
						8.   Payable if Annual Target Performance Metric Achieved:

					
					
						100% of the Applicable Portion of the Participant’s Target Annual Performance Incentive

				
	
					
						9.   Payable if Annual Maximum Performance Metric Achieved:

					
					
						200% of the Applicable Portion of the Participant’s Target Annual Performance Incentive

				
	
					
						10. Portion of Applicable Portion Payable if Achievement is Between Performance Metrics:

					
					
						Calculated on the basis of straight-line interpolation

				

		
			 
		

		
			I.          For any Performance Incentive that is based solely on Company performance as indicated in a Participation Agreement:
		

		
			 
		

		

		
			1Capped at 125% of Target Quarterly Performance Incentive for Q1, Q2, Q3 and Q4.
		

		
			2Capped at 125% of Target Quarterly Performance Incentive for Q2 and Q3.Document

Exhibit 10.2

RESTRICTED STOCK UNIT AGREEMENT

THIS RESTRICTED STOCK UNIT AGREEMENT (this "Agreement"), is entered into as of the Grant Date (as defined below), by and between Grantee (as defined below) and Bonanza Creek Energy, Inc., a Delaware corporation (the "Company"). 

WHEREAS, the Company maintains the Bonanza Creek Energy, Inc. 2017 Long Term Incentive Plan (the “Plan”), which is incorporated into and forms a part of this Agreement, and Grantee has been selected by the board of directors of the Company (the “Board”) or the compensation committee of the Board (the “Committee”) or any authorized delegate to receive an Award of Stock Units (the “Award”) under the Plan and as set forth in this Agreement;
NOW, THEREFORE, IT IS AGREED, by and between the Company and Grantee, as follows:
1.Definitions. The following terms used in this Agreement shall have the meanings set forth in this Section 1:

(a)“Cause” shall mean any of the following: (1) Grantee has failed or refused to substantially perform Grantee’s duties, responsibilities, or authorities (other than any such refusal or failure resulting from Grantee’s Disability); (2) any commission by or indictment of Grantee of a felony or other crime of moral turpitude; (3) Grantee has engaged in material misconduct in the course and scope of Grantee’s Service with the Company, including, but not limited to, gross incompetence, disloyalty, disorderly conduct, insubordination, harassment of employees, other members of the Board or third parties, chronic abuse of alcohol or unprescribed controlled substances, improper disclosure of confidential information, chronic and unexcused absenteeism, improper appropriation of a corporate opportunity or any other material violation of the Company’s personnel policies, rules or codes of conduct or any fiduciary duty owed to the Company or its Affiliates, or any applicable law or regulation to which the Company or its Affiliates are subject; (4) Grantee has committed any act of fraud, embezzlement, theft, dishonesty, misrepresentation or falsification of records; (5) Grantee has engaged in any act or omission that is likely to materially damage the Company’s business, including, without limitation, damages to the Company’s reputation; or (6) any conflict of interest that renders Grantee unable to fulfill his duties as a member of the Board. 

(b) "Designated Beneficiary" means the beneficiary or beneficiaries designated by Grantee in a writing filed with the Company in the form attached hereto as Exhibit A. 

(c)"Disability" means that the Grantee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months. 

(d)"Grantee" means the member of the Board specified in the grant notice issued by the Company on or about the Grant Date (the "Grant Notice"). 

(e)"Grant Date" means the date on which this Award was granted, as set forth in the Grant Notice. 

(f)"Restricted Stock Units" means time-based Stock Units (as defined in the Plan) granted under this Agreement and subject to the terms of this Agreement and the Plan. 

Capitalized terms used herein without definition have the meanings ascribed to such terms in the Plan.  Except where the context clearly implies or indicates the contrary, a word, term, or phrase used in the Plan is similarly used in this Agreement.
2.Award.  Grantee is hereby granted a Restricted Stock Unit award covering the number of Restricted Stock Units set forth in the Grant Notice.

3.Vesting.  Except as set forth in Sections 4 and 5, the Restricted Stock Units shall vest in accordance with the vesting schedule set forth in the Grant Notice.

4.Termination of Services.

(a)Termination without Cause; Disability; Death. If Grantee’s Service on the Board terminates due to (i) removal from the Board without Cause or (ii) death or Disability, all unvested Restricted Stock Units shall vest in full upon such termination. 

(b)Termination for Cause; Resignation. If Grantee’s Service on the Board terminates due to (i) removal from the Board for Cause or (ii) Grantee’s resignation from the Board, all unvested Restricted Stock Units shall be forfeited upon such termination. 

5.Change in Control. In the event of a Change in Control, all unvested Restricted Stock Units shall vest in full upon such Change in Control. If Grantee resigns from the Board in connection with a Change in Control at the request or direction of a Person (or its Affiliate) that is party to the agreement pursuant to which such Change in Control is consummated, all unvested Restricted Stock Units shall vest in full upon such Change in Control pursuant to this Section 5 (i.e., such Restricted Stock Units shall not be forfeited pursuant to Section 4(b)(ii)). 

6.Payment. Payment in respect of vested Restricted Stock Units shall be made by the Company as soon as administratively practicable (and in no event later than 30 days) after the earliest to occur of (a) the vesting date set forth in the Grant Notice, (b) termination of Grantee’s Service on the Board or (c) a Change in Control. The Company shall settle vested Restricted Stock Units by issuing Grantee a number of shares of Stock equal to the number of vested Restricted Stock Units. 

7.No Stockholder Rights. Grantee shall have no voting, dividend, or other stockholder rights in respect of the Restricted Stock Units granted hereunder. Upon the issuance of shares of Stock as payment under this Agreement, Grantee shall have all of the rights of a stockholder with respect to such shares of Stock as of the date Grantee becomes the record owner of such shares. 

8.Dividend Equivalent Right. Grantee shall be entitled to a Dividend Equivalent Right entitling Grantee, with respect to each Restricted Stock Unit, to receive a cash payment based on the regular cash dividends that would have been paid on a share of Stock during the period between the Grant Date of the Restricted Stock Units and the date the Restricted Stock Units are paid pursuant to Section 6. All amounts payable as a result of such Dividend Equivalent Right shall be accumulated and paid to Grantee in cash on the date that payment is made in respect of the related Restricted Stock Units in accordance with Section 6, above. 

9.Heirs and Successors. This Agreement shall be binding upon, and inure to the benefit of, the Company and its successors and assigns, and upon any person acquiring, whether by merger, consolidation, purchase of assets or otherwise, all or substantially all of the Company’s assets and business. If any rights of Grantee or benefits distributable to Grantee under this Agreement have not been exercised or distributed, respectively, at the time of Grantee’s death, such rights shall be exercisable by the Designated Beneficiary, and such benefits shall be distributed to the Designated Beneficiary, in accordance with the provisions of this Agreement and the Plan. If a deceased Grantee fails to designate a beneficiary, or if the Designated Beneficiary does not survive Grantee, any rights that would have been exercisable by Grantee and any benefits distributable to Grantee shall be exercised by or distributed to the legal representative of the estate of Grantee. If a deceased Grantee designates a beneficiary and the Designated Beneficiary survives Grantee but dies before the Designated Beneficiary’s exercise of all rights under this Agreement or before the complete distribution of benefits to the Designated Beneficiary under this Agreement, then any rights that would have been exercisable by the Designated Beneficiary shall be exercised by the legal representative of the estate of the Designated Beneficiary, and any benefits distributable to the Designated Beneficiary shall be distributed to the legal representative of the estate of the Designated Beneficiary. 

10.Administration. The authority to manage and control the operation and administration of this Agreement shall be vested in the Board or the Committee, and the Board or the Committee shall have all powers with respect to this Agreement as it has with respect to the Plan. Any interpretation of the Agreement by the Board or the Committee and any decision made by it with respect to the Agreement is final and binding on all persons. 

11.Plan Governs. Notwithstanding anything in this Agreement to the contrary, the terms of this Agreement shall be subject to the terms of the Plan, a copy of which may be obtained by Grantee from the office of the Secretary of the Company; and this Agreement is subject to all interpretations, amendments, rules and regulations promulgated by the Board or the Committee from time to time pursuant to the Plan. 

12.Fractional Shares. In lieu of issuing a fraction of a share of Stock resulting from an adjustment of the Award pursuant to Section 17.4 of the Plan or otherwise, the Company will be entitled to pay to Grantee an amount equal to the fair market value of such fractional share. 

13.Not An Employment Contract. The Award will not confer on Grantee any right with respect to continuance of employment or other service with the Company or any Subsidiary, nor will it interfere in any way with any right the Company or any Subsidiary would otherwise have to terminate or modify the terms of such Grantee’s Service at any time. 

14.Notices. Any written notices provided for in this Agreement or the Plan shall be in writing and shall be deemed sufficiently given if either hand delivered or if sent by fax or overnight courier, or by postage paid first class mail. Notices sent by mail shall be deemed received three business days after mailing but in no event later than the date of actual receipt. Notices shall be directed, if to Grantee, at Grantee’s address indicated by the Company’s records, or if to the Company, at the Company’s principal executive office. 

15.Amendment. This Agreement may be amended in accordance with the provisions of the Plan, and may otherwise be amended by written agreement of Grantee and the Company without the consent of any other person. 

16.Section 409A. All amounts payable hereunder are intended to comply with the requirements of Section 409A, and this Agreement shall be interpreted accordingly. Notwithstanding anything else in this Agreement, if the Board considers Grantee to be a "specified employee" under Section 409A at the time of Grantee’s "separation from service" (as defined in Section 409A), and any amount payable hereunder as a result of such "separation from service" is "deferred compensation" subject to Section 409A, payment of such amount shall not be made until the date that is six months after such "separation from service," except to the extent that earlier payment would not result in Grantee’s incurring interest or additional tax under Section 409A. If the Award includes a "series of installment payments" (within the meaning of Section 1.409A-2(b)(2)(iii) of the Treasury Regulations), Grantee’s right to the series of installment payments shall be treated as a right to a series of separate payments and not as a right to a single payment, and if the Award includes "dividend equivalents" (within the meaning of Section 1.409A-3(e) of the Treasury Regulations), Grantee’s right to the dividend equivalents shall be treated separately from the right to other amounts under the Award. 

17.Electronic Acceptance. By logging into and accepting this Agreement through Grantee’s account with the Company’s designated broker E*TRADE Securities LLC, or such other broker as the Company may select, that is irrevocably appointed as Grantee’s agent (the "Agent"), Grantee (a) understands, represents, acknowledges and agrees to be bound by this Agreement as if Grantee had manually signed this Agreement, (b) agrees that the Agent or its designee shall obtain and retain custody of the shares of Stock issuable upon settlement of vested Restricted Stock Units until such time as all withholding obligations have been satisfied, and (c) represents and warrants that (i) Grantee has carefully reviewed this Agreement and the Plan, (ii) Grantee is not subject to any legal, regulatory or contractual restriction that would prevent the Agent from conducting sales and does not have, and will not attempt to exercise, authority, influence or control over any sales of Stock effected by the Agent and (iii) as of the date Grantee accepts this Agreement, Grantee is not aware or in possession of any material, nonpublic information with respect to the Company or its affiliates or any of their respective securities. In the event that Grantee does not accept this Agreement through the Agent’s online grant acceptance system within 90 days of the Grant Date, the Company shall have the option, but not the obligation, to cancel and revoke the Award represented by this Agreement, and the Award shall be forfeited by Grantee without any further consideration.

Exhibit A

						
		Bonanza Creek Energy, Inc. 2017 Long Term Incentive Plan Beneficiary Designation

Primary Beneficiary
I hereby designate the following person or persons as primary Beneficiaries of my Account under the Plan payable in the event of my death.
									
	Name:		Name:
	Social Security Number:		Social Security Number:
	Address:		Address:
	Date of Birth:		Date of Birth:
	Relationship to Participant:		Relationship to Participant:
	Percentage:		Percentage:

The total of the percentages cannot exceed 100%. When more than one Beneficiary is designated, and no percentage is specified, payment will be made in equal shares to each surviving Beneficiary, or all to the last surviving Beneficiary.
Contingent Beneficiary
In the event that there is no living primary Beneficiary at my death, I hereby designate the following person or persons as contingent Beneficiaries of my Account:
									
	Name:		Name:
	Social Security Number:		Social Security Number:
	Address:		Address:
	Date of Birth:		Date of Birth:
	Relationship to Participant:		Relationship to Participant:
	Percentage:		Percentage:

The total of the percentages cannot exceed 100%. When more than one Beneficiary is designated, and no percentage is specified, payment will be made in equal shares to each surviving Beneficiary, or all to the last surviving Beneficiary.
Participant Signature
I reserve the right to revoke or change any Beneficiary designation. I hereby revoke all my prior designations (if any) of primary and contingent Beneficiaries.
									
	Signature		DATE
			
	Print Name		

Please return this form to Human Resources when you have completed it.

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