Document:

Exhibit 10.1

 

Texas Pacific Land Corporation

2021 Incentive Plan

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	Article 1.	Establishment, Purpose, and Duration	1
	Article 2.	Definitions	1
	Article 3.	Administration	6
	Article 4.	Shares Subject to this Plan and Maximum Awards	7
	Article 5.	Eligibility and Participation	8
	Article 6.	Stock Options	9
	Article 7.	Stock Appreciation Rights	10
	Article 8.	Restricted Stock and Restricted Stock Units	11
	Article 9.	Performance Units/Performance Shares	13
	Article 10.	Cash-Based Awards and Other Stock-Based Awards	14
	Article 11.	Transferability of Awards	14
	Article 12.	Performance Measures	15
	Article 13.	Minimum Vesting of Share-Based Awards	15
	Article 14.	Dividend Equivalents	15
	Article 15.	Beneficiary Designation	16
	Article 16.	Rights of Participants	16
	Article 17.	Change of Control	16
	Article 18.	Amendment, Modification, Suspension, and Termination	18
	Article 19.	Withholding	19
	Article 20.	Successors	20
	Article 21.	General Provisions	20

 

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Texas Pacific Land Corporation

2021 Incentive Plan

 

		Article
                            1.	Establishment, Purpose, and
Duration

 

1.1          Establishment.
Texas Pacific Land Corporation (the “Company”) establishes an incentive compensation plan to be known as the Texas
Pacific Land Corporation 2021 Incentive Plan (this “Plan”), as set forth in this document.

 

This Plan permits the grant of Nonqualified Stock
Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares, Performance
Units, Cash-Based Awards, and Other Stock-Based Awards.

 

This Plan’s effective date is the date this
Plan is approved by the Company’s shareholders (the “Effective Date”), and this Plan shall remain in effect as
provided in Section 1.3 hereof.

 

1.2          Purpose
of this Plan. The purpose of this Plan is to provide a means whereby Employees develop a sense
of proprietorship and personal involvement in the development and financial success of the Company, and to encourage them to devote their
best efforts to the business of the Company, thereby advancing the interests of the Company and its shareholders. A further purpose of
this Plan is to provide a means through which the Company may attract able individuals to become Employees and to provide a means whereby
those individuals upon whom the responsibilities of the successful administration and management of the Company are of importance, can
acquire and maintain stock ownership, thereby strengthening their concern for the welfare of the Company.

 

1.3          Duration
of this Plan. Unless sooner terminated as provided herein, this Plan shall terminate ten (10) years
from the Effective Date. After this Plan is terminated, no Awards may be granted but Awards previously granted shall remain outstanding
in accordance with their applicable terms and conditions and this Plan’s terms and conditions. Notwithstanding the foregoing, no
Incentive Stock Options may be granted more than ten (10) years after the earlier of (a) adoption of this Plan by the Board,
or (b) the Effective Date.

 

	Article
                            2.	Definitions

 

Whenever used in this Plan, the following terms
shall have the meanings set forth below, and when the meaning is intended, the initial letter of the word shall be capitalized.

 

		2.1	“Affiliate” shall mean any corporation or other entity (including, but not limited to, a partnership or a limited
liability company), that is affiliated with the Company through stock or equity ownership or otherwise, and is designated as an Affiliate
for purposes of this Plan by the Committee.

 

		2.2	“Award” means, individually or collectively, a grant under this Plan of Nonqualified Stock Options, Incentive
Stock Options, SARs, Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units, Cash-Based Awards, or Other Stock-Based
Awards, in each case subject to the terms of this Plan.

 

    

     

    

 

		2.3	“Award Agreement” means either (i) a written agreement entered into by the Company and a Participant setting
forth the terms and provisions applicable to an Award granted under this Plan, or (ii) a written or electronic statement issued by
the Company to a Participant describing the terms and provisions of such Award, including any amendment or modification thereof. The Committee
may provide for the use of electronic, internet or other non-paper Award Agreements, and the use of electronic, internet or other non-paper
means for the acceptance thereof and actions thereunder by a Participant.

 

		2.4	“Beneficial Owner” shall have the meaning ascribed to such term in Rule 13d-3 of the General Rules and
Regulations under the Exchange Act.

 

		2.5	“Board” or “Board of Directors” means the Board of Directors of the Company.

 

		2.6	“Cash-Based Award” means an Award, denominated in cash, granted to a Participant as described in Article 10.

 

		2.7	“Cause” means, unless otherwise specified in an Award Agreement or in an applicable employment agreement between
the Company and a Participant, with respect to any Participant, as determined by the Committee in its sole discretion:

 

		(a)	willful refusal to follow the lawful directions of a supervisor, which directions are consistent with normal business practice;

 

		(b)	indictment or conviction of, or plea of nolo contendere to, (i) any felony, or (ii) another crime involving dishonesty or
moral turpitude, or Participant’s engaging in any embezzlement, financial misappropriation or fraud, related to their employment
with the Company or any Subsidiary or Affiliate;

 

		(c)	engaging in any willful misconduct or gross negligence or willful act of dishonesty, including any violation of federal securities
laws, or violence or threat of violence, which is materially injurious to the Company or any Subsidiary or Affiliate;

 

		(d)	repeated abuse of alcohol or drugs (legal or illegal) that, in the Company’s reasonable judgment, materially impairs Participant’s
ability to perform their duties; or

 

		(e)	willful and knowing breach or violation of any material provision of their employment, including, but not limited to, any applicable
confidentiality, non-solicitation and non- competition requirements thereof.

 

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		2.8	“Change of Control” means the occurrence of any of the following events:

 

		(i)	Any Person, other than (x) a fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary or
Affiliate, or (y) any corporation owned, directly or indirectly, by shareholders of the Company in substantially the same proportions
as their ownership of the Company’s Shares becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing
30% or more of the total voting power represented by the Company's then outstanding voting securities;

 

		(ii)	the sale of disposition by the Company of all or substantially all of the Company’s assets;

 

		(iii)	the members of the Board of Directors as of the Effective Date (the “Incumbent Directors”) and any successor director
whose appointment is endorsed by the Incumbent Directors or any such duly-endorsed successor director cease to constitute a majority of
the Board; or

 

		(iv)	a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented
by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation.

 

		2.9	“Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time. For purposes of this Plan, references
to sections of the Code shall be deemed to include references to any applicable regulations thereunder and any successor or similar provision.

 

		2.10	“Committee” means the Compensation Committee of the Board or a subcommittee thereof, or any other committee designated
by the Board to administer this Plan. The members of the Committee shall (i) be appointed from time to time by and shall serve at
the discretion of the Board, and (ii) shall consist of “non-employee directors” as defined in Section 16 of the
Exchange Act. If the Committee does not exist or cannot function for any reason, the Board may take any action under this Plan that would
otherwise be the responsibility of the Committee.

 

		2.11	“Company” or “Corporation” means Texas Pacific Land Corporation and any successor thereto as provided
in Article 20 herein.

 

		2.12	“Effective Date” has the meaning set forth in Section 1.1.

 

		2.13	“Employee” means any individual performing services for the Company, an Affiliate, or a Subsidiary and designated
as an employee of the Company, its Affiliates, and/or its Subsidiaries on the payroll records thereof. An Employee shall not include any
individual during any period they are classified or treated by the Company, Affiliate, and/or Subsidiary as an independent contractor,
a consultant, or any employee of an employment, consulting, or temporary agency or any other entity other than the Company, Affiliate,
and/or Subsidiary, without regard to whether such individual is subsequently determined to have been, or is subsequently retroactively
reclassified as a common-law employee of the Company, Affiliate, and/or Subsidiary during such period.

 

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		2.14	“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto.

 

		2.15	“Fair Market Value” means, on any given date, the closing price of a Share as reported on the New York Stock Exchange
(“NYSE”) composite tape on such date, or if Shares were not traded on NYSE on such day, then on the next preceding day that
Shares were traded on NYSE; in the event Shares are traded only on an exchange other than NYSE, references herein to NYSE shall mean such
other exchange. The Company may use an alternate method of determining the value of Shares for accounting or any other purpose.

 

		2.16	“Good Reason” means, unless otherwise specified in an Award Agreement or in an applicable severance compensation
or other employment-type agreement between the Company and a Participant, with respect to any Participant, as determined by the Committee
in its sole discretion:

 

		(a)	a 10% or more diminution in Participant’s base salary as in effect on the last day of the immediately preceding calendar year
or a 30% or greater reduction in the amount of Participant’s target cash bonus as compared to the cash conus amount for the preceding
year;

 

		(b)	a material diminution in Participant’s title, or the nature or scope of Participant’s authority, duties, or responsibilities
from those applicable to Participant immediately prior to the Change in Control; or

 

		(c)	the Company’s requiring Participant to be based at any office or location that is more than 25 miles from Participant’s
principal place of employment prior to such change in location.

 

In order for one of the events set forth in (a), (b), or (c) to
constitute a Good Reason, (x) Participant must notify the Company in writing of such fact and the reasons therefor no later than
90 days after Participant knows or should have known that the relevant event has occurred, (y) such grounds for termination (if susceptible
to correction) are not corrected by the Company within thirty (30) days after Participant’s notice (or, in the event that such grounds
cannot be corrected with thirty (30) days, the Company has not taken all reasonable steps within such thirty-day (30) period to correct
such grounds as promptly as practicable thereafter); and (z) Participant terminates Participant’s employment with the Company
within thirty (30) days following expiration of such thirty-day (30) period. Failure to satisfy the requirements of this paragraph will
result in there not being a termination for Good Reason for purposes of this Plan.

 

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		2.17	“Grant Date” means the date an Award is granted to a Participant pursuant to this Plan.

 

		2.18	“Grant Price” means the price established at the time of grant of an SAR pursuant to Article 7, used to determine
whether there is any payment due upon exercise of the SAR.

 

		2.19	“Incentive Stock Option” or “ISO” means an Option to purchase Shares granted under Article 6
to an Employee and that is designated as an Incentive Stock Option and that is intended to meet the requirements of Code Section 422,
or any successor provision.

 

		2.20	“Insider” shall mean an individual who is, on the relevant date, an officer, or director of the Company, or a more
than ten percent (10%) Beneficial Owner of any class of the Company’s equity securities that is registered pursuant to Section 12
of the Exchange Act, as determined by the Board in accordance with Section 16 of the Exchange Act.

 

		2.21	“Nonqualified Stock Option” or “NQSO” means an Option that is not intended to meet the
requirements of Code Section 422, or that otherwise does not meet such requirements.

 

		2.22	“Option” means an Incentive Stock Option or a Nonqualified Stock Option, as described in Article 6.

 

		2.23	“Option Price” means the price at which a Share may be purchased by a Participant pursuant to an Option.

 

		2.24	“Other Stock-Based Award” means an equity-based or equity-related Award not otherwise described by the terms of
this Plan, granted pursuant to Article 10.

 

		2.25	“Participant” means any eligible individual as set forth in Article 5 to whom an Award is granted.

 

		2.26	“Performance-Based Compensation” means compensation under an Award that is subject to performance-based vesting,
earning or payment conditions.

 

		2.27	“Performance Measures” means measures as described in Article 12 on which the performance goals are based.

 

		2.28	“Performance Period” means the period of time during which the performance goals must be met in order to determine
the amount and/or vesting, earning or payment of an Award.

 

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		2.29	“Performance Share” means an Award under Article 9 herein and subject to the terms of this Plan, denominated
in Shares, the value of which at the time it is payable is determined by the extent to which the applicable Performance Measures have
been achieved.

 

		2.30	“Performance Unit” means an Award under Article 9 herein and subject to the terms of this Plan, denominated
in units, the value of which at the time it is payable is determined by the extent to which the applicable Performance Measures have been
achieved.

 

		2.31	“Period of Restriction” means the period when Restricted Stock or Restricted Stock Units are subject to a substantial
risk of forfeiture (based on the passage of time, the achievement of performance goals, or upon the occurrence of other events as determined
by the Committee, in its discretion), as provided in Article 8.

 

		2.32	“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used
in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) thereof.

 

		2.33	“Plan” means this Texas Pacific Land Corporation 2021 Incentive Plan.

 

		2.34	“Restricted Stock” means an Award granted to a Participant pursuant to Article 8.

 

		2.35	“Restricted Stock Unit” means an Award granted to a Participant pursuant to Article 8, except no Shares are
actually awarded to the Participant on the Grant Date.

 

		2.36	“Share” means a share of common stock of the Company.

 

		2.37	“Stock Appreciation Right” or “SAR” means an Award, designated as an SAR, pursuant to the terms
of Article 7 herein.

 

		2.38	“Subsidiary” means any corporation or other entity, whether domestic or foreign, in which the Company has or obtains,
directly or indirectly, a proprietary interest of more than fifty percent (50%) by reason of stock ownership or otherwise.

 

	Article
                            3.	Administration

 

3.1          General.
The Committee shall be responsible for administering this Plan, subject to this Article 3 and the other provisions of this Plan.
The Committee may employ attorneys, consultants, accountants, agents, and other individuals, any of whom may be an Employee, and the Committee,
the Company, and its officers and directors shall be entitled to rely upon the advice, opinions, or valuations of any such individuals.
All actions taken and all interpretations and determinations made by the Committee shall be final and binding upon the Participants, the
Company, and all other interested individuals.

 

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3.2            Authority
of the Committee. The Committee shall have full and exclusive discretionary power to interpret
the terms and the intent of this Plan and any Award Agreement or other agreement or document ancillary to or in connection with this Plan,
to determine eligibility for Awards and to adopt such rules, regulations, forms, instruments, and guidelines for administering this Plan
as the Committee may deem necessary or proper. Such authority shall include, but not be limited to, selecting Award recipients, establishing
all Award terms and conditions, including the terms and conditions set forth in Award Agreements, granting Awards as an alternative to
or as the form of payment for grants or rights earned or due under compensation plans or arrangements of the Company, construing any ambiguous
provision of this Plan or any Award Agreement, and, subject to Article 18, adopting modifications and amendments to this Plan or
any Award Agreement, including without limitation, any that are necessary to comply with the laws of the countries and other jurisdictions
in which the Company, its Affiliates, and/or its Subsidiaries operate.

 

3.3            Delegation.
The Committee may delegate to one or more of its members or to one or more officers of the Company,
and/or its Subsidiaries and Affiliates or to one or more agents or advisors such administrative duties or powers as it may deem advisable,
and the Committee or any individuals to whom it has delegated duties or powers as aforesaid may employ one or more individuals to render
advice with respect to any responsibility the Committee or such individuals may have under this Plan. The Committee may, by resolution,
authorize one or more officers of the Company to do one or both of the following on the same basis as can the Committee: (a) designate
Employees to be recipients of Awards and (b) determine the size of any such Awards; provided, however, (i) the Committee shall
not delegate such responsibilities to any such officer for Awards granted to an Employee who is considered an Insider; (ii) the resolution
providing such authorization sets forth the total number of Awards such officer(s) may grant; and (iii) the officer(s) shall
report periodically to the Committee regarding the nature and scope of the Awards granted pursuant to the authority delegated.

 

	Article
4.	Shares Subject to this Plan
and Maximum Awards

 

4.1          Number
of Shares Available for Awards and Maximum Amount of Non-Share Awards.

 

Subject to adjustment as provided in
Section 4.3:

 

		(a)	The maximum number of Shares available for issuance to Participants under this Plan is 75,000 Shares.

 

		(b)	The maximum aggregate number of Shares that may be issued in the aggregate pursuant to the exercise of Incentive Stock Options is
75,000 Shares.

 

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4.2          Share
Usage. Shares covered by an Award shall only be counted as used to the extent they are actually
issued. The number of Shares available for Awards under this Plan shall be reduced by one Share for each Share covered by such Award or
to which such Award relates. Awards that do not entitle the holder thereof to receive or purchase Shares shall not be counted against
the aggregate number of Shares available for Awards under this Plan. In addition, any Shares related to Awards which terminate by expiration,
forfeiture, cancellation, or otherwise without the issuance of such Shares shall be available again for grant under this Plan. In no event,
however, will the following Shares again become available for Awards or increase the number of Shares available for grant under this Plan:
(i) Shares tendered by the Participant in payment of the exercise price of an Option; (ii) Shares withheld from exercised Awards
for tax withholding purposes; (iii) Shares subject to a SAR that are not issued in connection with the settlement of that SAR; and
(iv) Shares repurchased by the Company with proceeds received from the exercise of an Option. The Shares available for issuance under
this Plan may consist, in whole or in part, of authorized and unissued Shares, treasury Shares, or Shares reacquired by the Company in
any manner.

 

4.3          Adjustments
in Authorized Shares. In the event of any corporate event or transaction (including, but not
limited to, a change in the Shares of the Company or the capitalization of the Company) such as a merger, consolidation, reorganization,
recapitalization, separation, partial or complete liquidation, stock dividend, stock split, reverse stock split, split up, spin-off, or
other distribution of stock or property of the Company, combination of Shares, exchange of Shares, dividend in kind, or other like change
in capital structure, number of outstanding Shares or distribution (other than normal cash dividends) to shareholders of the Company,
or any similar corporate event or transaction, the Committee, in its sole discretion, in order to prevent dilution or enlargement of Participants’
rights under this Plan, shall substitute or adjust, as applicable, the number and kind of Shares that may be issued under this Plan or
under particular forms of Awards, the number and kind of Shares subject to outstanding Awards, the Option Price or Grant Price applicable
to outstanding Awards, and other value determinations applicable to outstanding Awards.

 

The Committee, in its sole discretion, may also
make appropriate adjustments in the terms of any Awards under this Plan to reflect or relate to such changes or distributions and to modify
any other terms of outstanding Awards, including modifications of performance goals and changes in the length of Performance Periods.
The determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and binding on Participants under this
Plan.

 

Subject to the provisions of Article 18 and
notwithstanding anything else herein to the contrary, without affecting the number of Shares reserved or available hereunder, the Committee
may authorize the issuance or assumption of benefits under this Plan in connection with any merger, consolidation, acquisition of property
or stock, or reorganization upon such terms and conditions as it may deem appropriate (including, but not limited to, a conversion of
equity awards into Awards under this Plan in a manner consistent with paragraph 53 of FASB Interpretation No.  44), subject to compliance
with the rules under Code Sections 422 and 424, as and where applicable.

 

		Article
                            5.	Eligibility and Participation

 

5.1            Eligibility.
Individuals eligible to participate in this Plan include all Employees.

 

5.2            Actual
Participation. Subject to the provisions of this Plan, the Committee may, from time to time,
select from all eligible individuals, those individuals to whom Awards shall be granted and shall determine, in its sole discretion, the
nature of any and all terms permissible by law, and the amount of each Award.

 

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		Article
                            6.	Stock Options

 

6.1            Grant
of Options. Subject to the terms and provisions of this Plan, Options may be granted to Participants
in such number, and upon such terms, and at any time and from time to time as shall be determined by the Committee, in its sole discretion.

 

6.2            Award
Agreement. Each Option grant shall be evidenced by an Award Agreement that shall specify the
Option Price, the maximum duration of the Option, the number of Shares to which the Option pertains, the conditions upon which an Option
shall become vested and exercisable, and such other provisions as the Committee shall determine which are not inconsistent with the terms
of this Plan. The Award Agreement also shall specify whether the Option is intended to be an ISO or a NQSO.

 

6.3            Option
Price. The Option Price for each grant of an Option under this Plan shall be determined by the
Committee in its sole discretion and shall be specified in the Award Agreement; provided, however, the Option Price must be at least equal
to one hundred percent (100%) of the Fair Market Value of the Shares as determined on the Grant Date.

 

6.4            Term
of Options. Each Option granted to a Participant shall expire at such time as the Committee shall
determine at the time of grant; provided, however, no Option shall be exercisable later than the day before the tenth (10th)
anniversary date of its grant. Notwithstanding the foregoing, for Nonqualified Stock Options granted to Participants outside the
United States, the Committee has the authority to grant Nonqualified Stock Options that have a term greater than ten (10) years.

 

6.5            Exercise
of Options. Subject to Article 13, Options granted under this Article 6 shall
be exercisable at such times and be subject to such restrictions and conditions as the Committee shall in each instance approve, which
terms and restrictions need not be the same for each grant or for each Participant.

 

6.6            Payment.
Options granted under this Article 6 shall be exercised by the delivery of a notice of exercise to the Company or an agent designated
by the Company in a form specified or accepted by the Committee, or by complying with any alternative procedures which may be authorized
by the Committee, setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment
for the Shares.

 

A condition of the issuance of the Shares as to
which an Option shall be exercised shall be the payment of the Option Price. The Option Price of any Option shall be payable to the Company
in full either: (a) in cash or its equivalent; (b) by tendering (either by actual delivery or attestation) previously acquired
Shares having an aggregate Fair Market Value at the time of exercise equal to the Option Price; (c) by a cashless (broker-assisted)
exercise; (d) by a combination of (a), (b) and/or (c); or (e) any other method approved or accepted by the Committee in
its sole discretion.

 

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Subject to any governing rules or regulations,
as soon as practicable after receipt of written notification of exercise and full payment (including satisfaction of any applicable tax
withholding), the Company shall deliver to the Participant evidence of book entry Shares, or upon the Participant’s request, Share
certificates in an appropriate amount based upon the number of Shares purchased under the Option(s).

 

Unless otherwise determined by the Committee, all
payments under all of the methods indicated above shall be paid in United States dollars.

 

6.7            Restrictions
on Share Transferability. The Committee may impose such restrictions on any Shares acquired pursuant
to the exercise of an Option granted under this Article 6 as it may deem advisable, including, without limitation, minimum holding
period requirements, restrictions under applicable federal securities laws, under the requirements of any stock exchange or market upon
which such Shares are then listed and/or traded, or under any blue sky or state securities laws applicable to such Shares.

 

6.8            Termination
of Employment. Each Participant’s Award Agreement shall set forth the extent to which the
Participant shall have the right to exercise the Option following termination of the Participant’s employment or provision of services
to the Company, its Affiliates, and/or its Subsidiaries, as the case may be. Such provisions shall be determined in the sole discretion
of the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Options issued
pursuant to this Article 6, and may reflect distinctions based on the reasons for termination.

 

6.9            Notification
of Disqualifying Disposition. If any Participant shall make any disposition of Shares issued
pursuant to the exercise of an ISO under the circumstances described in Code Section 421(b) (relating to certain disqualifying
dispositions), such Participant shall notify the Company of such disposition within ten (10) days thereof.

 

		Article
                            7.	Stock Appreciation Rights

 

7.1            Grant
of SARs. Subject to the terms and conditions of this Plan, SARs may be granted to Participants
at any time and from time to time as shall be determined by the Committee

 

Subject to the terms and conditions of this Plan,
the Committee shall have complete discretion in determining the number of SARs granted to each Participant and, consistent with the provisions
of this Plan, in determining the terms and conditions pertaining to such SARs.

 

The Grant Price for each grant of an SAR shall
be determined by the Committee and shall be specified in the Award Agreement; provided, however, the Grant Price on the Grant Date must
be at least equal to one hundred percent (100%) of the Fair Market Value of the Shares as determined on the Grant Date.

 

7.2            SAR
Agreement. Each SAR Award shall be evidenced by an Award Agreement that shall specify the Grant
Price, the term of the SAR, and such other provisions as the Committee shall determine.

 

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7.3            Term
of SAR. The term of an SAR granted under this Plan shall be determined by the Committee, in its
sole discretion, and except as determined otherwise by the Committee and specified in the SAR Award Agreement, no SAR shall be exercisable
later than the tenth (10th) anniversary date of its grant. Notwithstanding the foregoing, for SARs granted to Participants
outside the United States, the Committee has the authority to grant SARs that have a term greater than ten (10) years.

 

7.4            Exercise
of SARs. SARs may be exercised upon whatever terms and conditions the Committee, in its sole
discretion, imposes.

 

7.5            Settlement
of SARs. Upon the exercise of an SAR, a Participant shall be entitled to receive payment from
the Company in an amount determined by multiplying:

 

		(a)	The excess of the Fair Market Value of a Share on the date of exercise over the Grant Price; by

 

		(b)	The number of Shares with respect to which the SAR is exercised.

 

At the discretion of the Committee, the payment
upon SAR exercise may be in cash, Shares, or any combination thereof, or in any other manner approved by the Committee in its sole discretion.
The Committee’s determination regarding the form of SAR payout shall be set forth in the Award Agreement pertaining to the grant
of the SAR.

 

7.6            Termination
of Employment. Each Award Agreement shall set forth the extent to which the Participant shall
have the right to exercise the SAR following termination of the Participant’s employment with or provision of services to the Company,
its Affiliates, and/or its Subsidiaries, as the case may be. Such provisions shall be determined in the sole discretion of the Committee,
shall be included in the Award Agreement entered into with Participants, need not be uniform among all SARs issued pursuant to this Plan,
and may reflect distinctions based on the reasons for termination.

 

7.7            Other
Restrictions. The Committee shall impose such other conditions and/or restrictions on any Shares
received upon exercise of an SAR granted pursuant to this Plan as it may deem advisable or desirable. These restrictions may include,
but shall not be limited to, a requirement that the Participant hold the Shares received upon exercise of an SAR for a specified period
of time.

 

		Article
                            8.	Restricted Stock and Restricted
Stock Units

 

8.1            Grant
of Restricted Stock or Restricted Stock Units. Subject to the terms and provisions of this Plan,
the Committee, at any time and from time to time, may grant Shares of Restricted Stock and/or Restricted Stock Units to Participants in
such amounts as the Committee shall determine. Restricted Stock Units shall be similar to Restricted Stock except that no Shares are actually
awarded to the Participant on the Grant Date.

 

8.2            Restricted
Stock or Restricted Stock Unit Agreement. Each Restricted Stock and/or Restricted Stock Unit
grant shall be evidenced by an Award Agreement that shall specify the Period(s) of Restriction, the number of Shares of Restricted
Stock or the number of Restricted Stock Units granted, and such other provisions as the Committee shall determine.

 

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8.3            Other
Restrictions. The Committee shall impose such other conditions and/or restrictions on any Shares
of Restricted Stock or Restricted Stock Units granted pursuant to this Plan as it may deem advisable including, without limitation, restrictions
based upon the achievement of specific performance goals, time-based restrictions on vesting following the attainment of the performance
goals, time-based restrictions, and/or restrictions under applicable laws or under the requirements of any stock exchange or market upon
which such Shares are listed or traded, or holding requirements or sale restrictions placed on the Shares by the Company upon vesting
of such Restricted Stock or Restricted Stock Units.

 

To the extent deemed appropriate by the Committee,
the Company may retain the certificates representing Shares of Restricted Stock in the Company’s possession until such time as all
conditions and/or restrictions applicable to such Shares have been satisfied or lapse.

 

Except as otherwise provided in this Article 8,
Shares of Restricted Stock covered by each Restricted Stock Award shall become freely transferable by the Participant after all conditions
and restrictions applicable to such Shares have been satisfied or lapse (including satisfaction of any applicable tax withholding obligations),
and Restricted Stock Units shall be paid in cash, Shares, or a combination of cash and Shares as the Committee, in its sole discretion
shall determine.

 

8.4            Certificate
Legend. In addition to any legends placed on certificates pursuant to Section 8.3, each
certificate representing Shares of Restricted Stock granted pursuant to this Plan may bear a legend such as the following or as otherwise
determined by the Committee in its sole discretion:

 

The sale or transfer of Shares of stock
represented by this certificate, whether voluntary, involuntary, or by operation of law, is subject to certain restrictions on transfer
as set forth in the Texas Pacific Land Corporation 2021 Incentive Plan, and in the associated Award Agreement. A copy of this Plan and
such Award Agreement may be obtained from Texas Pacific Land Corporation.

 

8.5            Voting
Rights. Unless otherwise determined by the Committee and set forth in a Participant’s Award
Agreement, to the extent permitted or required by law, as determined by the Committee, Participants holding Shares of Restricted Stock
granted hereunder may be granted the right to exercise full voting rights with respect to those Shares during the Period of Restriction.
A Participant shall have no voting rights with respect to any Restricted Stock Units granted hereunder.

 

8.6            Termination
of Employment. Each Award Agreement shall set forth the extent to which the Participant shall
have the right to retain Restricted Stock and/or Restricted Stock Units following termination of the Participant’s employment with
or provision of services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be. Such provisions shall be determined
in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform
among all Shares of Restricted Stock or Restricted Stock Units issued pursuant to this Plan, and may reflect distinctions based on the
reasons for termination.

 

    12

     

    

 

8.7            Section 83(b) Election.
The Committee may provide in an Award Agreement that the Award of Restricted Stock is conditioned upon the Participant making or refraining
from making an election with respect to the Award under Code Section 83(b). If a Participant makes an election pursuant to Code Section 83(b) concerning
a Restricted Stock Award, the Participant shall be required to file promptly a copy of such election with the Company.

 

	Article
                            9.	Performance Units/Performance
Shares

 

9.1            Grant
of Performance Units/Performance Shares. Subject to the terms and provisions of this Plan, the
Committee, at any time and from time to time, may grant Performance Units and/or Performance Shares to Participants in such amounts and
upon such terms as the Committee shall determine. Performance Units and Performance Shares that are earned (as described in Section 9.3)
may be subject to vesting requirements as set forth in the applicable Award Agreement.

 

9.2            Value
of Performance Units/Performance Shares. Each Performance Unit shall have an initial value
that is established by the Committee at the time of grant. Each Performance Share shall have an initial value equal to the Fair Market
Value of a Share on the Grant Date. The Committee shall set performance goals in its discretion which, depending on the extent to which
they are met, will determine the value and/or number of Performance Units/Performance Shares that may be earned by the Participant.

 

9.3            Earning
of Performance Units/Performance Shares. Subject to the terms of this Plan, after the applicable
Performance Period and vesting period, if any, have ended, the holder of Performance Units/Performance Shares shall be entitled to receive
payout on the value and number of Performance Units/Performance Shares earned by the Participant over the Performance Period, to be determined
as a function of the extent to which the corresponding performance goals have been achieved.

 

9.4            Form and
Timing of Payment of Performance Units/Performance Shares. Payment of earned and vested Performance
Units/Performance Shares shall be as determined by the Committee and as evidenced in the Award Agreement. Subject to the terms
of this Plan, the Committee, in its sole discretion, may pay earned and vested Performance Units/Performance Shares in the form of
cash or in Shares (or in a combination thereof). Any Shares may be granted subject to any restrictions deemed appropriate by the Committee.
The determination of the Committee with respect to the form of payout of such Awards shall be set forth in the Award Agreement pertaining
to the grant of the Award.

 

9.5            Termination
of Employment. Each Award Agreement shall set forth the extent to which the Participant shall
have the right to retain Performance Units and/or Performance Shares following termination of the Participant’s employment with
the Company, its Affiliates, and/or its Subsidiaries, as the case may be. Such provisions shall be determined in the sole discretion of
the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Awards of Performance
Units or Performance Shares issued pursuant to this Plan, and may reflect distinctions based on the reasons for termination.

 

    13

     

    

 

	Article
                            10.	Cash-Based Awards and Other
Stock-Based Awards

 

10.1        Grant
of Cash-Based Awards. Subject to the terms and provisions of this Plan, the Committee, at
any time and from time to time, may grant Cash-Based Awards to Participants in such amounts and upon such terms as the Committee may determine.

 

10.2        Other
Stock-Based Awards. The Committee may grant other types of equity-based or equity-related Awards
not otherwise described by the terms of this Plan (including the grant or offer for sale of unrestricted Shares) in such amounts and subject
to such terms and conditions, as the Committee shall determine. Such Awards may involve the transfer of actual Shares to Participants,
or payment in cash or otherwise of amounts based on the value of Shares and may include, without limitation, Awards designed to comply
with or take advantage of the applicable local laws of jurisdictions other than the United States.

 

10.3        Value
of Cash-Based and Other Stock-Based Awards. Each Cash-Based Award shall specify a payment amount
or payment range as determined by the Committee. Each Other Stock-Based Award shall be expressed in terms of Shares or units based on
Shares, as determined by the Committee. The Committee may establish performance goals in its discretion. If the Committee exercises its
discretion to establish performance goals, the number and/or value of Cash-Based Awards or Other Stock-Based Awards that will be paid
out to the Participant will depend on the extent to which the performance goals are met.

 

10.4        Payment
of Cash-Based Awards and Other Stock-Based Awards. Payment, if any, with respect to a Cash-Based
Award or an Other Stock-Based Award shall be made in accordance with the terms of the Award, in cash or Shares as the Committee determines.

 

10.5        Termination
of Employment. The Committee shall determine the extent to which the Participant shall have the
right to receive Cash-Based Awards or Other Stock-Based Awards following termination of the Participant’s employment with or provision
of services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be. Such provisions shall be determined in the sole
discretion of the Committee, such provisions may be included in an agreement entered into with each Participant, but need not be uniform
among all Awards of Cash-Based Awards or Other Stock-Based Awards issued pursuant to this Plan, and may reflect distinctions based on
the reasons for termination.

 

	Article
                            11.	Transferability of Awards

 

11.1        Transferability.
Except as provided in Section 11.2 below, during a Participant’s lifetime, their Awards
shall be exercisable only by the Participant. Awards shall not be transferable other than by will or the laws of descent and distribution;
no Awards shall be subject, in whole or in part, to attachment, execution, or levy of any kind; and any purported transfer in violation
hereof shall be null and void. The Committee may establish such procedures as it deems appropriate for a Participant to designate a beneficiary
to whom any amounts payable or Shares deliverable in the event of, or following, the Participant’s death, may be provided.

 

    14

     

    

 

11.2            Committee
Action. The Committee may, in its discretion, determine that notwithstanding Section 11.1,
any or all Awards (other than ISOs) shall be transferable to and exercisable by such transferees, and subject to such terms and conditions,
as the Committee may deem appropriate; provided, however, no Award may be transferred for value (as defined in the General Instructions
to Form S-8).

 

	Article
                            12.	Performance Measures

 

12.1        Performance
Measures. The Committee shall have full discretionary authority to select Performance Measures
and related performance goals upon which payment or vesting of an Award depends. Performance Measures may relate to financial metrics,
non-financial metrics, GAAP and non-GAAP metrics, business and individual objectives or any other performance metrics that the Committee
deems appropriate.

 

12.2        Evaluation
of Performance. The Committee may provide in any such Award that any evaluation of performance
may include or exclude any of the following events that occurs during a Performance Period: (a) asset write-downs, (b) litigation
or claim judgments or settlements, (c) the effect of changes in tax laws, accounting principles, or other laws or provisions affecting
reported results, (d) any reorganization and restructuring programs, (e) extraordinary nonrecurring items as described in management’s
discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to shareholders
for the applicable year, (f) acquisitions or divestitures, and (g) foreign exchange gains and losses.

 

12.3        Adjustment
of Performance-Based Compensation. The Committee shall retain the discretion to adjust such Awards
upward or downward, either on a formula or discretionary basis or any combination, as the Committee determines.

 

	Article
                            13.	Minimum Vesting of Share-Based
Awards

 

Notwithstanding
any other provision of this Plan to the contrary, Awards granted pursuant to Article 6, 7, 8, 9 or 10 of this Plan shall be
subject to a minimum vesting period of at least one (1) year, provided, however, (a) such vesting may be cliff or graded
(starting no earlier than one (1) year after grant), (b) the Committee may provide for earlier vesting as specified in an Award
Agreement, and (c) no more than five percent (5%) of the maximum number of Shares authorized for issuance under this Plan pursuant
to Section 4.1(a) may be granted with a minimum vesting period of less than one (1) year.

 

	Article
                            14.	Dividend Equivalents

 

Any Participant selected by the Committee may be
granted dividend equivalents based on the dividends declared on Shares that are subject to any Award, to be credited as of dividend payment
dates, during the period between the date the Award is granted and the date the Award is exercised, vests or expires, as determined by
the Committee. Such dividend equivalents shall be converted to cash or additional Shares by such formula and at such time and subject
to such limitations as may be determined by the Committee. Notwithstanding the foregoing, for all Awards, the payment of dividends and
dividend equivalents prior to an Award becoming vested shall be prohibited, and the Committee shall determine the extent to which dividends
and dividend equivalents may accrue during the vesting period and become payable upon vesting.

 

    15

     

    

 

	Article
                            15.	Beneficiary Designation

 

Each Participant under this Plan may, from time
to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under this Plan is
to be paid in case of his death before he receives any or all of such benefit. Each such designation shall revoke all prior designations
by the same Participant, shall be in a form prescribed by the Committee, and will be effective only when filed by the Participant in writing
with the Company, or the Company’s designated agent, during the Participant’s lifetime. In the absence of any such beneficiary
designation, benefits remaining unpaid or rights remaining unexercised at the Participant’s death shall be paid to or exercised
by the Participant’s executor, administrator, or legal representative on behalf of the Participant’s estate.

 

		Article
                            16.	Rights of Participants

 

16.1        Employment.
Nothing in this Plan or an Award Agreement shall interfere with or limit in any way the right of the Company, its Affiliates, and/or its
Subsidiaries, to terminate any Participant’s employment at any time or for any reason not prohibited by law, nor confer upon any
Participant any right to continue his employment for any specified period of time.

 

Neither an Award nor any benefits arising under
this Plan shall constitute an employment contract with the Company, its Affiliates, and/or its Subsidiaries and, accordingly, subject
to Articles 3 and 18, this Plan and the benefits hereunder may be terminated at any time in the sole and exclusive discretion of
the Committee without giving rise to any liability on the part of the Company, its Affiliates or Subsidiaries, or the Committee.

 

16.2        Participation.
No individual shall have the right to be selected to receive an Award under this Plan, or, having been so selected, to be selected to
receive a future Award.

 

16.3        Rights
as a Shareholder. Except as otherwise provided herein, a Participant shall have none of the rights
of a shareholder with respect to Shares covered by any Award until the Participant becomes the record holder of such Shares.

 

		Article
                            17.	Change of Control

 

17.1        Change
of Control of the Company. Notwithstanding any other provision of this Plan to the contrary,
the provisions of this Article 17 shall apply in the event of a Change of Control, unless otherwise determined by the Committee in
connection with the grant of an Award as reflected in the applicable Award Agreement or other agreement between the Participant and the
Company or a subsidiary or Affiliate.

 

    16

     

    

 

(a)            If,
upon a Change of Control, a Participant receives a new Award which qualifies as a “Replacement Award” (as defined below),
the Award shall continue subject to the terms of the Replacement Award.

 

(b)            If,
upon a Change of Control that results in the Company’s Shares no longer being traded on the New York Stock Exchange or another established
securities market and no Replacement Award is granted to a Participant, the unvested portion of an Award whose vesting is based only on
a service requirement shall become immediately vested and exercisable, as applicable, upon the Change of Control.

 

(c)            Notwithstanding
subparagraph (a) and except as may be otherwise provided in an Award Agreement, upon a Change of Control, with respect to Awards
that are Performance Shares or Performance Units issued pursuant to Article 9 of this Plan, a pro-rata portion of the Award shall
be immediately earned, vested and payable; such portion shall be determined based on the portion of the Performance Period that has elapsed
as of (i) the date of the Change of Control, if the Performance Measure is based on stock price, or (ii) the end of the last
full calendar quarter preceding or commensurate with the date of the Change of Control if the Performance Measure is not based on stock
price (in each case, the “Adjusted Measurement Date”). The Award amount that will be considered earned and payable
will be calculated based on the higher of target or actual performance measured as of the Adjusted Measurement Date. To the extent any
earned Awards that are Performance Shares or Performance Units have not been paid prior to the Change of Control because they are subject
to vesting, such earned but unvested Awards shall become immediately vested, and payable upon the Change of Control.

 

(d)            Except
as provided in subparagraph (c) or as otherwise provided in an Award Agreement, if, following a Change of Control, the Company’s
Shares continue to be traded on the New York Stock Exchange or another established securities market, outstanding Awards shall continue
in effect and be treated as Replacement Awards as described in subparagraph (a).

 

(e)            Notwithstanding
any of subparagraphs (a), (b) or (d) of this Section 17.1, the Committee may, in its sole discretion, determine that any
or all outstanding Awards granted under this Plan, whether or not exercisable, will be canceled and terminated, and that in connection
with such cancellation and termination, the holder of such Award may receive for each Share of Common Stock subject to such Awards a cash
payment (or the delivery of shares of stock, other securities or a combination of cash, stock and securities equivalent to such cash payment)
equal to the difference, if any, between the consideration received by shareholders of the Company in respect of a Share of Common Stock
in connection with such transaction and the purchase price per share, if any, under the Award multiplied by the number of Shares of Common
Stock subject to such Award; provided that if such product is zero or less or to the extent that the Award is not then exercisable, the
Awards will be canceled and terminated without payment therefor.

 

17.2        Replacement
Awards. An Award shall be considered a Replacement Award if: (i) it has a value at least
equal to the value of the Award it is replacing as determined by the Committee in its sole discretion; (ii) it relates to publicly
traded equity securities of the Company or its successor in the Change of Control or another entity that is affiliated with the Company
or its successor following the Change of Control; and (iii) its other terms and conditions are not less favorable to the Participant
than the terms and conditions of the Award it is replacing (including the provisions that would apply in the event of a subsequent Change
of Control). Without limiting the generality of the foregoing, the Replacement Award may take the form of a continuation of the Award
it is replacing if the requirements of the preceding sentence are satisfied. The determination of whether the conditions of this Section 17.2
are satisfied shall be made by the Committee, as constituted immediately before the Change of Control, in its sole discretion.

 

    17

     

    

 

17.3        Reduction
of Excess Parachute Payments. Except as may be provided in an employment or severance compensation
agreement between the Company and the Participant, if, in connection with a Change of Control, a Participant’s payment of any Awards
will cause the Participant to be liable for federal excise tax under Code Section 4999 levied on certain “excess parachute
payments” as defined in Code Section 280G (“Excise Tax”), then the payments made pursuant to the Awards
shall be reduced (or repaid to the Company, if previously paid or provided) as provided below:

 

(a)            If
the payments due upon of Change of Control under this Plan and any other agreement between a Participant and the Company, exceed 2.99
times the Participant’s “base amount,” as defined in Code Section 280G, a reduced payment amount shall be calculated
by reducing the payments to the minimum extent necessary so that no portion of any payment, as so reduced or repaid, constitutes an excess
parachute payment. If it is determined that any Excise Tax is payable by a Participant, the Participant shall receive either (i) all
payments otherwise due; or (ii) the reduced payment amount described in the preceding sentence, whichever will provide the Participant
with the greater after-tax economic benefit taking into account for these purposes any applicable Excise Tax.

 

(b)            Whether
payments are to be reduced pursuant to this Section 17.3, and the extent to which they are to be so reduced, will be determined solely
by the Company in good faith and the Company will notify the Participant in writing of its determination.

 

(c)            In
no event shall a Participant be entitled to receive any kind of gross-up payment or Excise Tax reimbursement from the Company.

 

		Article
                            18.	Amendment, Modification, Suspension,
and Termination

 

18.1        Amendment,
Modification, Suspension, and Termination. Subject to Section 18.3, the Committee may,
at any time and from time to time, alter, amend, modify, suspend, or terminate this Plan and any Award Agreement in whole or
in part; provided, however, that, (i) without the prior approval of the Company’s shareholders and except as provided in Section 4.3,
Options or SARs issued under this Plan will not be repriced, repurchased (including a cash buyout), replaced, or regranted through cancellation,
or by lowering the Option Price of a previously granted Option or the Grant Price of a previously granted SAR, (ii) any amendment
of this Plan must comply with the rules of the NYSE, and (iii) no material amendment of this Plan shall be made without shareholder
approval if shareholder approval is required by law, regulation, or stock exchange rule.

 

    18

     

    

 

18.2        Adjustment
of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. The Committee may make
adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including,
without limitation, the events described in Section 4.3 hereof) affecting the Company or the financial statements of the Company
or of changes in applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate
in order to prevent unintended dilution or enlargement of the benefits or potential benefits intended to be made available under this
Plan. The determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and binding on Participants under
this Plan.

 

18.3        Awards
Previously Granted. Notwithstanding any other provision of this Plan to the contrary (other than
Section 18.4), no termination, amendment, suspension, or modification of this Plan or an Award Agreement shall adversely affect in any
material way any Award previously granted under this Plan, without the written consent of the Participant holding such Award.

 

18.4        Amendment
to Conform to Law. Notwithstanding any other provision of this Plan to the contrary, the Committee
may amend this Plan or an Award Agreement, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose
of conforming this Plan or an Award Agreement to any present or future law relating to plans of this or similar nature (including, but
not limited to, Code Section 409A), and to the administrative regulations and rulings promulgated thereunder. By accepting an Award
under this Plan, a Participant agrees to any amendment made pursuant to this Section 18.4 to any Award granted under this Plan without
further consideration or action.

 

	Article
                            19.	Withholding

 

19.1            Tax
Withholding. The Company shall have the power and the right to deduct or withhold from any amounts
due and owing to the Participant, or require a Participant to remit to the Company, up to the maximum statutory amount to satisfy federal,
state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as
a result of this Plan.

 

19.2            Share
Withholding. With respect to withholding required upon the lapse of restrictions on Restricted
Stock and Restricted Stock Units, or upon the achievement of performance goals related to Performance Shares, or any other taxable event
arising as a result of an Award granted hereunder, the Committee may establish provisions in the applicable Award Agreements to satisfy
the withholding requirement, in whole or in part, by having the Company withhold whole Shares having a Fair Market Value on the date the
tax is to be determined up to the maximum statutory total tax withholding that could be imposed on the transaction.

 

    19

     

    

 

		Article
                            20.	Successors

 

All obligations of the Company under this Plan
with respect to Awards granted hereunder shall be binding on any successor to the Company, regardless of whether the existence of such
successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business
and/or assets of the Company.

 

		Article
                            21.	General Provisions

 

21.1        Forfeiture
Events. Any Awards granted under this Plan will be subject
to recoupment in accordance with any clawback policy that the Company currently has in effect, or is required to adopt or modify, pursuant
to the listing standards of any national securities exchange or association on which the Company’s securities are listed or as is
otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or the Sarbanes-Oxley Act of 2002, or other applicable
law (“Clawback Policy”). In addition, the Committee or the Board may impose such clawback, recovery or recoupment provisions
in an Award Agreement as the Committee or the Board determines necessary or appropriate, including but not limited to a reacquisition
right in respect of previously acquired Shares or other cash or property as set forth in the Award Agreement. No recovery of compensation
under this Section will be an event giving rise to a right to resign for “good reason” or “constructive termination”
(or similar term) under any agreement or otherwise with the Company.

 

21.2        Legend.
The certificates for Shares may include any legend which the Committee deems appropriate to reflect any restrictions on transfer of such
Shares.

 

21.3        Gender
and Number. Except where otherwise indicated by the context, any masculine term used herein also
shall include the feminine, the plural shall include the singular, and the singular shall include the plural.

 

21.4        Severability.
In the event any provision of this Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining parts of this Plan, and this Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

 

21.5        Requirements
of Law. The granting of Awards and the issuance of Shares under this Plan shall be subject to
all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may
be required.

 

21.6        Delivery
of Title. The Company shall have no obligation to issue or deliver evidence of title for Shares
issued under this Plan prior to:

 

		(a)	Obtaining any approvals from governmental agencies that the Company determines are necessary or advisable; and

 

		(b)	Completion of any registration or other qualification of the Shares under any applicable national or foreign law or ruling of any
governmental body that the Company determines to be necessary or advisable.

 

21.7        Inability
to Obtain Authority. The inability of the Company to obtain authority from any regulatory body
having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares
hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.

 

    20

     

    

 

21.8        Investment
Representations. The Committee may require any individual receiving Shares pursuant to an Award
under this Plan to represent and warrant in writing that the individual is acquiring the Shares for investment and without any present
intention to sell or distribute such Shares.

 

21.9        Employees
Based Outside the United States. Notwithstanding any provision of this Plan to the contrary,
in order to comply with the laws in other countries in which the Company, its Affiliates, and/or its Subsidiaries operate or have Employees,
the Committee, in its sole discretion, shall have the power and authority to:

 

		(a)	Determine which Affiliates and Subsidiaries shall be covered by this Plan;

 

		(b)	Determine which Employees outside the United States are eligible to participate in this Plan;

 

		(c)	Modify the terms and conditions of any Award granted to Employees outside the United States to comply with applicable foreign laws;

 

		(d)	Establish subplans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable.
Any subplans and modifications to Plan terms and procedures established under this Section 21.9 by the Committee shall be attached
to this Plan document as appendices; and

 

		(e)	Take any action, before or after an Award is made, that it deems advisable to obtain approval or comply with any necessary local government
regulatory exemptions or approvals.

 

Notwithstanding the above, the Committee may not
take any actions hereunder, and no Awards shall be granted, that would violate applicable law.

 

21.10      Uncertificated
Shares. To the extent that this Plan provides for issuance of certificates to reflect the transfer
of Shares, the transfer of such Shares may be effected on a noncertificated basis, to the extent not prohibited by applicable law or the
rules of any stock exchange.

 

21.11      Unfunded
Plan. Participants shall have no right, title, or interest whatsoever in or to any investments
that the Company, and/or its Subsidiaries, and/or its Affiliates may make to aid it in meeting its obligations under this Plan. Nothing
contained in this Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or
a fiduciary relationship between the Company and any Participant, beneficiary, legal representative, or any other individual. To the extent
that any individual acquires a right to receive payments from the Company, its Subsidiaries, and/or its Affiliates under this Plan, such
right shall be no greater than the right of an unsecured general creditor of the Company, a Subsidiary, or an Affiliate, as the case may
be. All payments to be made hereunder shall be paid from the general funds of the Company, a Subsidiary, or an Affiliate, as the case
may be and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts
except as expressly set forth in this Plan.

 

    21

     

    

 

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

 

21.13      Retirement
and Welfare Plans. Neither Awards made under this Plan nor Shares or cash paid pursuant to such
Awards may be included as “compensation” for purposes of computing the benefits payable to any Participant under the Company’s
or any Subsidiary’s or Affiliate’s retirement plans (both qualified and non-qualified) or welfare benefit plans unless such
other plan expressly provides that such compensation shall be taken into account in computing a Participant’s benefit.

 

21.14      Deferred
Compensation. If any Award would be considered deferred compensation as defined under Code Section 409A
and if this Plan fails to meet the requirements of Code Section 409A with respect to such Award, then such Award shall be null and
void. However, the Committee may permit deferrals of compensation pursuant to the terms of a Participant’s Award Agreement, a separate
plan or a subplan which meets the requirements of Code Section 409A and any related guidance. Additionally, to the extent any Award
is subject to Code Section 409A, notwithstanding any provision herein to the contrary, this Plan does not permit the acceleration
or delay of the time or schedule of any distribution related to such Award, except as permitted by Code Section 409A, the regulations
thereunder, and/or the Secretary of the United States Treasury.

 

21.15      Nonexclusivity
of this Plan. The adoption of this Plan shall not be construed as creating any limitations on
the power of the Board or Committee to adopt such other compensation arrangements as it may deem desirable for any Participant.

 

21.16      No
Constraint on Corporate Action. Nothing in this Plan shall be construed to: (i) limit,
impair, or otherwise affect the Company’s or a Subsidiary’s or an Affiliate’s right or power to make adjustments, reclassifications,
reorganizations, or changes of its capital or business structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer
all or any part of its business or assets; or (ii) limit the right or power of the Company or a Subsidiary or an Affiliate to take
any action which such entity deems to be necessary or appropriate.

 

21.17      Governing
Law. This Plan shall be governed by the laws of the State of Texas, without regard to choice-of-law
principles. The Participants consent to personal and exclusive jurisdiction and venue Dallas County in the State of Texas. Any controversy
or claim arising out of or relating to (i) a Participant’s employment with the Company or a Subsidiary or Affiliate and/or
(ii) the Plan, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association in accordance
with its Employment Arbitration Rules before a single arbitrator in Dallas, Texas, and judgment on the award rendered by the arbitrator
may be entered in any court having jurisdiction thereof. The Company and the Participant will each be responsible for their own attorneys’
fees and expenses incurred in connection with any such arbitration. The decision arrived at by the arbitrator shall be binding upon all
parties to the arbitration and no appeal shall lie therefrom, except as provided by the Federal Arbitration Act. These arbitration procedures
are intended to be the exclusive method of resolving any claim or dispute arising out of or related to this Plan, including the applicability
of this Section; provided, however, that any party seeking injunctive relief in connection with a breach or anticipated breach of the
Plan will do so in a state or federal court of competent jurisdiction within Dallas County in the State of Texas.

 

    22

     

    

 

As evidence of its adoption of this Plan, the Company
has caused this document to be executed by its duly authorized officer the 29th day of December, 2021.

 

	 	TEXAS PACIFIC LAND CORPORATION
	 	 
	 	 
	 	By:	 /s/ Tyler Glover
	 	 	Name: Tyler Glover
	 	 	Title: Chief Executive Officer

 

    23Exhibit 10.2

 

RESTRICTED STOCK AWARD AGREEMENT

 

under the

 

TEXAS PACIFIC LAND CORPORATION 2021 INCENTIVE
PLAN

 

__________ Shares of Restricted Stock

 

THIS AWARD, made as of the ___ day of __________,
20__, by Texas Pacific Land Corporation, a Delaware corporation (the “Company”), to _______________ (“Participant”),
is made pursuant to and subject to the provisions of the Texas Pacific Land Corporation 2021 Incentive Plan (the “Plan”).
All terms that are used herein that are defined in the Plan shall have the same meanings given them in the Plan.

 

1.                 
Award of Restricted Stock. Pursuant to the Plan, the Company, on __________ __, 20__ (the “Date of Grant”),
granted Participant, subject to the terms and conditions of the Plan and subject further to the terms and conditions set forth herein,
an award of _____ Shares, hereinafter described as the “Restricted Stock.”

 

2.                 
Restrictions. Except as provided in this Restricted Stock Award Agreement, the Restricted Stock is nontransferable and is
subject to a substantial risk of forfeiture.

 

3.                 
Stock Power. Participant shall deliver to the Company stock power authorization(s), endorsed in blank, with respect to the
Restricted Stock. The Company shall use the stock power to cancel any shares of Restricted Stock that are forfeited (in accordance with
Paragraph 7 below). The Company shall return the stock power to Participant with respect to any shares of Restricted Stock that become
Vested.

 

4.                 
Vesting. Participant’s interest in the shares of Restricted Stock shall become transferable and non-forfeitable (“Vested”)
in _____ (__) increments as follows:

 

	[Date of Vesting	Number of shares of

Restricted Stock that

will Vest
	_____________	_____________
                                            [Tranche 1] 
	_____________	_____________
                                            [Tranche 2] 
	_____________	_____________
                                            [Tranche 3]]

 

5.                 
[IF APPLICABLE Qualifying Termination Events. (a) Paragraph 4 to the contrary notwithstanding, if Participant
experiences a Qualifying Termination Event (as defined below) while in the employ of the Company or a Subsidiary or Affiliate and prior
to the forfeiture of Restricted Stock under Paragraph 7, Restricted Stock not then Vested shall become Vested 

 

     

     

    

 

Alternative A as to a pro-rata portion
of the non-Vested Restricted Stock, as determined in accordance with the following sentence. The pro-rata portion of the non-Vested Restricted
Stock that shall vest pursuant to the preceding sentence shall be equal to a fraction of each Tranche of the remaining non-Vested Restricted
Stock; the numerator of such fraction shall equal the number of full months of service performed by the Participant on and after (and
including the month of) the Date of Grant, and prior to the Qualifying Termination Event; and the denominator of the fraction shall equal
the total number of months from the Date of the Grant until the relevant Vesting date pursuant to paragraph 3. OR 

 

Alternative B in full upon the Qualifying
Termination Event.

 

The non-Vested portion of the Restricted Stock
shall be forfeited.

 

(b)        For purposes of this Restricted Stock Award
Agreement, Qualifying Termination Event shall mean the Participant’s death, Disability, or involuntary termination by the Company
or an Affiliate other than for Cause. A Disability for purposes of this sub-paragraph (b) means a Participant’s Permanent Disability
as defined in Section 22(e)(3) of the Code. ]

 

(c)         If the events described in [sub-paragraph
(a) or] paragraph 6 occur after the date that the Participant is advised (upon recommendation by the Committee) that their
employment is being, or will be, terminated for Cause, on account of performance or in circumstances that prevent them from being in
good standing with the Company, accelerated vesting shall not occur and all rights to the Restricted Stock shall terminate on the
date of Participant’s termination of employment. The Committee shall have the authority to determine whether
Participant’s termination from employment is for Cause or for any reason other than Cause.

 

6.                 
Change in Control. In the event of a Change in Control prior to the forfeiture of the shares of Restricted Stock under Paragraph
7, the provisions of this paragraph 6 shall apply in addition to the provisions of Article 17 (and related provisions) of the Plan.

 

(a)       Any
Replacement Award made to the Participant shall provide that if the Participant is involuntarily terminated by the Company without Cause
(as defined in the Plan), the non-Vested Replacement Award shall become immediately Vested at the time of the termination. The Committee
shall have the discretion to determine the terms of any Replacement Award in compliance with the Plan and applicable law.

 

(b)       If, upon a Change in Control, the Company’s
Shares are no longer being traded on the New York Stock Exchange or another established securities market and no Replacement Grant is
granted to the Participant, the non-Vested portion of the Restricted Stock shall become immediately Vested upon the Change in Control.

 

(c)
       Notwithstanding the provisions of subparagraph (a) hereof, in connection with a Change in
Control where the Company’s shares continue to be traded on the New York Stock Exchange or another established securities
market and this Award remains in effect, if the Participant is involuntarily terminated by the Company without Cause (as defined in
the Plan), the non-Vested portion of the Award shall become immediately Vested at the time of the termination.

 

    2

     

    

 

7.                
Forfeiture. All shares of Restricted Stock that are not then Vested shall be forfeited if Participant’s employment
with the Company or its Subsidiary or Affiliate terminates for any reason other than by reason of a Qualifying Termination Event or Change
in Control as outlined in Paragraphs 5 or 6.

 

8.                
Shareholder Rights. Participant will have the right to receive dividends on, and to vote, the Restricted Stock as of the
Date of Grant, provided, however, that dividends earned on the Restricted Stock shall remain unvested and subject to forfeiture
until such time as the corresponding Shares of Restricted Stock become Vested.

 

9.                 
No Right to Continued Employment. Neither this Restricted Stock Award Agreement nor the issuance of Restricted Stock shall
confer upon Participant any right with respect to continuance of employment by the Company or an Affiliate, nor shall it interfere in
any way with the right of the Company or an Affiliate to terminate Participant’s employment at any time.

 

10.              
Change in Capital Structure. In accordance with the terms of the Plan, the terms of this grant shall be adjusted as the
Committee determines is equitable in the event the Company effects one or more stock dividends, stock splits, subdivisions or consolidations
of shares or other similar changes in capitalization.

 

11.              
Governing Law. This Restricted Stock Award Agreement shall be governed by the laws of the State of Texas. All disputes arising
under this Restricted Stock Award Agreement shall be adjudicated solely within the State or Federal courts located within the State of
Texas, Dallas County.

 

12.              
Conflicts. In the event of any conflict between the provisions of the Plan as in effect on the Date of Grant and the provisions
of this Restricted Stock Award Agreement, the provisions of the Plan shall govern. All references herein to the Plan shall mean the Plan
as in effect on the Date of Grant.

 

13.              
Participant Bound by Plan. Participant has been provided a copy of the Plan and shall be bound by all the terms and provisions
thereof.

 

14.              
Binding Effect. Subject to the limitations stated above and in the Plan, this Restricted Stock Award Agreement shall be
binding upon and inure to the benefit of the legatees, distributees, and personal representatives of the Participant and the successors
of the Company.

 

15.              
Taxes. The Company may, at the request of Participant, withhold from the Award the number of whole Shares necessary to satisfy
tax-withholding requirements attributable to the Vesting of shares of Restricted Stock, unless the Participant notifies the Company otherwise
within thirty (30) days of the grant of Restricted Stock. Absent such Share withholding, the Participant will be responsible for providing
all cash required to satisfy applicable State, Federal, employment and any other applicable tax withholding required under applicable
law.

 

    3

     

    

 

16.               Recoupment.
In addition to any other applicable provision of the Plan, this Restricted Stock Award Agreement is subject to the terms of any separate
Clawback Policy maintained by the Company, as such Policy may be amended from time to time.

 

IN WITNESS WHEREOF, the Company has caused this
Restricted Stock Award Agreement to be signed on its behalf.

 

	 	Texas Pacific Land Corporation
	 
	 	By:	 
	 	Name:
	 	Title:

 

    4

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