Document:

Exhibit 10.2

 

 

 

March 13, 2020

 

Jeffrey D. Smith

6804 Executive Court

Midland, Texas 79707

 

Dear Jeff:

 

This letter memorializes the understanding
between you and ProPetro Holding Corp. (the “Company”) regarding your role and responsibilities at the
Company beginning March 13, 2020 (the “Effective Date”). As you are aware, you will, as of the Effective
Date, transition from serving as the Company’s Chief Administrative Officer to serving as a Special Advisor to the Chief
Executive Officer to work on projects as assigned by the Chief Executive Officer.

 

Following the Effective Date, your annualized
base salary shall remain unchanged from its current level. You will no longer (i) be eligible to earn an annual cash bonus under
the Amended and Restated ProPetro Holding Corp. Executive Incentive Bonus Plan for the 2020 fiscal year or any future years or
(ii) be granted new awards under the ProPetro Holding Corp. 2017 Incentive Award Plan (the “Incentive Plan”).
For the avoidance of doubt, the restricted stock units and performance share units granted to you pursuant to the Incentive Plan
on February 11, 2020 will continue to vest or be forfeited in accordance with the terms of the applicable award agreements and
the Incentive Plan.

 

As you know, you and the Company are parties
to that certain Employment Agreement, entered into as of April 17, 2013 (as amended, the “Employment Agreement”)
and that certain letter agreement amending the Employment Agreement dated October 4, 2019 (the “Letter Agreement”).
This letter shall be deemed to terminate your Employment Agreement as amended by the Letter Agreement, as of the Effective Date,
with the exception of the restrictive covenants set forth in Section 6 of the Employment Agreement which shall continue in full
force and effect. In signing below, you hereby explicitly consent to the changes described in this letter, and in return for your
continued employment as described above, you hereby waive any and all current or future rights you may have to terminate your employment
with the Company or its Affiliates (as defined in the Employment Agreement) for “Good Reason” (or similar
or related definitions, each as defined in the Employment Agreement) as a result of these changes and any future changes (including
any right to receive any payments or benefits pursuant to the Employment Agreement or any other plan, program, or agreement sponsored
or maintained by the Company or any of its Affiliates (collectively, the “Company Plans”) as a result
of these changes). As of the Effective Date, your employment will be at-will.

 

		

 

    

     

    

 

 

 

The
exercise period applicable to your stock options granted under the Stock Option Plan of ProPetro Holding Corp. (the “Option
Plan”) that are outstanding and vested but unexercised as of the date of your “Termination of
Employment” (as defined in the Option Plan) (the “Extended Options”) will be extended so
that, so long as your Termination of Employment is not a termination by the Company for Cause (as defined below), the Extended
Options shall not be forfeited or cancelled upon the ninety-first (91st) day following the date of your Termination of Employment
as provided in the applicable award agreements but, instead, shall remain outstanding and exercisable until the one-year anniversary
of your Termination of Employment; provided, however, that the exercise period shall not be extended beyond the full original exercise
period enumerated in the applicable award agreement. For purposes of this letter and all outstanding awards under the Equity Plans
(as defined below), “Cause” shall mean (i) your willful failure to substantially perform the duties set
forth herein; (ii) your willful failure to carry out, or comply with, in any material respect any lawful directive of the board
of directors of the Company (the “Board”); (iii) your commission at any time of any act or omission that
results in, or may reasonably be expected to result in, a conviction, plea of no contest, plea of nolo contendere, or imposition
or unadjudicated probation for any felony or crime involving moral turpitude; (iv) your unlawful use (including being under the
influence) or possession of illegal drugs on the Company’s premises or while performing the your duties and responsibilities
hereunder; (v) your commission at any time of any act of fraud, embezzlement, misappropriation, misconduct, conversion of assets
of the Company, or breach of fiduciary duty against the Company (or any predecessor thereto or successor thereof); or (vi) your
material breach of any agreement between you and the Company (including, without limitation, any breach of the restrictive covenants
of any such agreement); and which, in the case of clauses (i), (ii) and (vi), continues beyond thirty (30) days after the Company
has provided you written notice of such failure or breach (to the extent that, in the reasonable judgment of the Board, such failure
or breach can be cured by you). Whether or not an event giving rise to “Cause” occurs will be determined by the Board
in its sole discretion.

 

Further,
you shall be entitled to exercise the stock options granted under the Incentive Plan and the Option Plan (collectively,
the “Equity Plans”) that are outstanding but unexercised as of the Effective Date (together, the “Outstanding
Options”) within the time periods described in the applicable award agreements and the Equity Plans, as modified
by the preceding paragraph, if applicable, as a “cashless exercise” such that you are not required to deliver any cash
to exercise the Outstanding Options but the number of shares of the Company’s common stock, par value $0.001 (“Stock”),
delivered by the Company to you upon exercise shall be reduced by the fair market value of the exercise price of the Outstanding
Options and associated taxes.

 

In exchange for the extension of the Extended
Options and the ability to exercise the Outstanding Options using a cashless exercise, you agree to following noncompete and nonsolicitation
restrictions that are in addition to any such restrictions described in your Employment Agreement and the Incentive Plan and the
restricted stock unit, performance share unit and stock option award agreements thereunder:

 

	 	

 

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		·	You hereby agree that you shall not at any time during the Additional Noncompetition Restricted
Period (as defined below), directly or indirectly engage in, have any interest in (including without limitation, through the investment
of capital or lending of money or property), or manage, operate or otherwise render any services to, any person (whether on your
own or in association with others, as a principal, director, officer, employee, agent, representative, partner, member, security
holder, consultant, advisor, independent contractor, owner, investor, participant, or in any other capacity) that engages in (either
directly or through any subsidiary or Affiliate thereof) any business or activity, within any of the states or territories within
the United States or any other country, territory or state in which the Company or any of its subsidiaries operate, (i) that creates,
designs, invents, engineers, develops, sources, markets, manufactures, distributes or sells any product or provides any service
that may be used as a substitute for or otherwise competes with any product or service of the Company or any entity owned by the
Company, or (ii) which the Company of any of its Affiliates has taken active steps to engage in or acquire, but only if you directly
or indirectly engage in, have any interest in (including, without limitation, through the investment of capital or lending of money
or property), or manage, operate or otherwise render any services in connection with, such business or activity (whether on your
own or in association with others, as a principal, director, officer, employee, agent, representative, partner, member, security
holder, consultant, advisor, independent contractor, owner, investor, participant or in any other capacity). Notwithstanding the
foregoing, you shall be permitted to acquire a passive stock or equity interest in such business; provided that such stock or other
equity interest acquired is not more than five percent (5%) of the outstanding interest in such business. The “Additional
Noncompetition Restricted Period” shall mean the period from the first (1st) anniversary of the date of your Termination
of Employment through the fifth (5th) anniversary of the date of your Termination of Employment.

 

		·	You agree that you shall not at any time during the Additional Nonsolicitation Restricted Period
(as defined below), directly or indirectly, either for yourself or on behalf of any other person, (i) recruit or otherwise solicit
or induce any employee, customer or supplier of the Company to terminate its employment or arrangement with the Company, or otherwise
change its relationship with the Company, or (ii) hire, or cause to be hired, any person who was employed by the Company at any
time during the twelve (12)-month period immediately prior to the date of your Termination of Employment or who thereafter becomes
employed by the Company. The “Additional Nonsolicitation Restricted Period” shall mean the period from
the third (3rd) anniversary of the date of your Termination of Employment through the fifth (5th) anniversary of the date of your
Termination of Employment.

 

Notwithstanding the foregoing, you acknowledge
and agree that if you fail to comply with your ongoing obligations to the Company, including those in Section 6 of the Employment
Agreement and the noncompetition and solicitation obligations set forth above, then (i) any unexercised Outstanding Options shall
immediately be forfeited and cancelled upon notice from the Company and may not be exercised at any point and (ii) you shall pay
to the Company the fair market value of any Stock acquired through the exercise of the Outstanding Options.

 

		

 

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You further
acknowledge that nothing in this letter shall be construed in any way to limit the right of the Company to terminate your employment,
with or without Cause, or, except as provided above, for you to terminate your employment with the Company, with or without Good
Reason, nor shall this letter limit the rights of the stockholders of the Company under the Company’s bylaws.

 

To the fullest extent permitted by applicable
law, your (i) rights to indemnification under the Company’s organizational documents and the Indemnification Agreement
between the Company and you and (ii) rights to coverage under the Company's directors and officers insurance policy shall
continue in accordance with their terms and not be impacted by the execution of this Agreement.

 

Please indicate your agreement with the
foregoing by signing and dating below and returning an executed copy of this letter to me.

 

[Signature Page to
Follow] 

 

	 	

 

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	 	PROPETRO HOLDING CORP.
	 	 
	 	By: 	/s/ Phillip A. Gobe
	 	Name: Phillip A. Gobe
	 	Title: Chief Executive Officer

 

AGREED AND ACKNOWLEDGED:

 

	/s/ Jeffrey D. Smith	 
	Jeffrey D. Smith 	 
	Date: 	March 13, 2020	 

 

	 	

 

    5Exhibit 10.3

 

PROPETRO SERVICES, INC.

EXECUTIVE SEVERANCE PLAN 

 

1.          
Purpose. ProPetro Services, Inc. (the “Company”), has adopted the ProPetro Services,
Inc. Executive Severance Plan (the “Plan”) to provide severance pay to Eligible Executives (as defined
below) who experience a Qualifying Termination (as defined below) on or after March 13, 2020 (the “Effective Date”).
The Plan is intended to be maintained primarily for the purposes of providing benefits for a select group of management or highly
compensated employees and is intended to be a top hat welfare benefit plan under ERISA.

 

2.           
Definitions. For purposes of the Plan, the following terms shall have the respective meanings set forth below:

 

(a)          
“Accrued Amounts” means (i) all accrued and unpaid Base Salary through the Date of Termination
and all paid time off accrued but unused as of the Date of Termination, which shall be paid within seven business days following
the Date of Termination (or earlier if required by applicable law); (ii) reimbursement for all incurred but unreimbursed expenses
for which an Eligible Executive is entitled to reimbursement in accordance with the expense reimbursement policies of the Company
in effect as of the Date of Termination; and (iii) benefits to which an Eligible Executive may be entitled pursuant to the terms
of any plan or policy sponsored by the Company or any of its Affiliates as in effect from time to time.

 

(b)          
“Affiliate” means with respect to any person, any other person that directly or indirectly through
one or more intermediaries controls, is controlled by or is under common control with, the person in question. As used herein,
the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management
and policies of a person, whether through ownership of voting securities, by contract or otherwise.

 

(c)          
“Applicable March 15” means March 15 of the calendar year following the calendar year in which
the Date of Termination occurs.

 

(d)          
“Applicable Severance Multiple” means (i) with respect to each Tier 1 Executive, 2.0; (ii) with
respect to each Tier 2 Executive, 1.5; and (iii) with respect to each Tier 3 Executive, 1.0.

 

(e)          
“Applicable CIC Severance Multiple” (i) with respect to each Tier 1 Executive, 3.0; (ii) with
respect to each Tier 2 Executive, 2.0; and (iii) with respect to each Tier 3 Executive, 1.5.

 

(f)           
 “Base Salary” means the amount an Eligible Executive is entitled to receive as base salary on
an annualized basis, calculated as of the Date of Termination, including any amounts that an Eligible Executive could have received
in cash had he not elected to contribute to an employee benefit plan maintained by the Company, but excluding all annual cash incentive
awards, bonuses, equity awards, and incentive compensation payable by the Company as consideration for an Eligible Executive’s
services.

 

(g)           
“Board” means the Board of Directors of ProPetro Holding Corp.

 

     

     

    

 

(h)          
“Cause” means (i) an Eligible Executive’s material breach of the Plan or any written agreement
between such Eligible Executive and any member of the Company Group, including such Eligible Executive’s material breach
of any representation, warranty, or covenant made under any such agreement; (ii) an Eligible Executive’s material breach
of any policy or code of conduct established by any member of the Company Group and applicable to such Eligible Executive; (iii)
an Eligible Executive’s violation of any law applicable to the workplace (including any law regarding anti-harassment, anti-discrimination,
or anti-retaliation); (iv) an Eligible Executive’s gross negligence, material misconduct reflecting negatively on the Company,
breach of fiduciary duty, fraud, theft, or embezzlement; (v) the conviction by a court of competent jurisdiction of an Eligible
Executive for, or plea of nolo contendere by an Eligible Executive to, any felony (or state law equivalent) or any crime
involving moral turpitude; (vi) an Eligible Executive’s material failure or refusal, other than due to Disability, to perform
such Eligible Executive’s duties or to follow any lawful directive from the Board or an officer of the Company, as determined
by the Committee; (vii) an Eligible Executive’s unlawful use (including being under the influence) or possession of illegal
drugs on the Company’s premises or while performing Employee’s duties and responsibilities hereunder; (viii) failure
of an Eligible Executive, in connection with his or her work on behalf of the Company Group, to exercise that degree of care, skill,
and diligence as employees of ordinary skill and knowledge commonly possess and exercise; or (ix) the failure of an Eligible Executive
to act with undivided loyalty on behalf of the Company Group. For items (i), (vi) and (viii) above, such item will not be considered
a breach unless the Company provides an Eligible Executive written notice of the existence of such condition(s) within 30 days
after the Committee becomes aware of such condition(s) and the condition(s) specified in such notice are not corrected for 15 days
following such Eligible Executive’s receipt of such written notice; provided, however, that an Eligible Executive
shall not be provided with an opportunity to correct such condition(s) if the Committee determines, in its sole and absolute discretion,
that such condition(s) cannot be corrected.

 

(i)           
“Change in Control” has the meaning assigned to such term in the Incentive Plan, as in effect
from time to time.

 

(j)           
“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

 

(k)          
“COBRA Continuation Period” means the period beginning on the first day of the first calendar
month following such Eligible Executive’s Date of Termination and continuing until the earliest to occur of: (i)(a) 18 months
following the Date of Termination for a Tier 1 Executive and (b) 12 months following the Date of Termination for a Tier 2 Executive
and a Tier 3 Executive; (ii) the time such Eligible Executive becomes eligible to be covered under a group health plan sponsored
by another employer (and such Eligible Executive shall promptly notify the Company in the event that such Eligible Executive becomes
so eligible) and (iii) the date such Eligible Executive is no longer eligible to receive COBRA continuation coverage.

 

(l)           
“Code” means the Internal Revenue Code of 1986.

 

(m)         
“Committee” means the Compensation Committee of the Board or such other committee designated by
the Board to administer the Plan.

 

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(n)          
“Company Group” means ProPetro Holding Corp., the Company, and each of their respective direct
and indirect subsidiaries as may exist from time to time.

 

(o)          
“Date of Termination” means the effective date of the termination of an Eligible Executive’s
employment with the Company and its Affiliates, as applicable, such that the Eligible Executive is no longer employed by the Company
or any of its Affiliates.

 

(p)           “Disability” means an Eligible Executive is unable to perform the essential functions of such
Eligible Executive’s position (after accounting for reasonable accommodation, if applicable and required by applicable law),
due to physical or mental impairment or other incapacity that continues, or can reasonably be expected to continue, for a period
in excess of 120 consecutive days or 180 days, whether or not consecutive (or for any longer period as may be required by applicable
law), in any 12-month period.  The determination of whether an Eligible Executive has incurred a Disability shall be made
in good faith by the Board.

 

(q)          
“Eligible Executive” means any employee of the Company or an Affiliate of the Company who (i)
is designated by the Committee as an “Eligible Executive” who is eligible to participate in the Plan; (ii) has executed
and returned a Participation Agreement to the Company; (iii) is not covered under any other severance plan, policy, program
or arrangement sponsored or maintained by the Company or any of its Affiliates; and (iv) is not a party to an employment or severance
agreement with the Company or any of its Affiliates pursuant to which such employee is eligible for severance payments or benefits.
The Committee shall have the sole discretion to determine whether an employee is an Eligible Executive. Eligible Executives shall
be limited to a select group of management or highly compensated employees within the meaning of Sections 201, 301 and 401 of ERISA.

 

(r)           
“ERISA” means the Employee Retirement Income Security Act of 1974.

 

(s)          
“Good Reason” means (i) a material diminution in an Eligible Executive’s Base Salary or
authority, duties, and responsibilities with the Company or its subsidiaries, including his or her removal as an officer of the
Company; provided, however, that if the Eligible Executive is serving as an officer or member of the board of directors
(or similar governing body) of any member of the Company Group, in no event shall the removal of the Eligible Executive as an officer
or board member of such member of the Company Group, other than the Company, regardless of the reason for such removal, constitute
Good Reason; provided, further, that a reduction in an Eligible Executive’s Base Salary in connection with a general
reduction in base salaries that affects all similarly situated employees of the Company in substantially the same proportions will
not constitute Good Reason; provided, further, that a temporary reduction in an Eligible Executive’s authority, duties,
and responsibilities in connection with any internal investigation by the Company, including an investigation into whether circumstances
constituting Cause exist, shall not constitute Good Reason; (ii) a material breach by the Company of any of its obligations under
the Plan; or (iii) the relocation of the geographic location of an Eligible Executive’s principal place of employment by
more than 50 miles from the location of such Eligible Executive’s principal place of employment as of the Effective Date.
Notwithstanding the foregoing clauses (i), (ii) and (iii), any assertion by an Eligible Executive of a termination for Good Reason
shall not be effective unless all of the following conditions are satisfied: (A) the condition described in clauses (i), (ii)
or (iii) giving rise to such Eligible Executive’s termination of employment must have arisen without such Eligible Executive’s
consent; (B) such Eligible Executive must provide written notice to the Committee of the existence of such condition(s) within
30 days after the initial occurrence of such condition(s); (C) the condition(s) specified in such notice must remain uncorrected
for 30 days following the Committee’s receipt of such written notice; and (D) the date of such Eligible Executive’s
termination of employment must occur within 75 days after the initial occurrence of the condition(s) specified in such notice.

 

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(t)           
“Incentive Plan” means the ProPetro Holding Corp. 2017 Incentive Award Plan.

 

(u)          
“Participation Agreement” means the participation agreement delivered to each Eligible Executive
by the Committee prior to his or her entry into the Plan evidencing the Eligible Executive’s agreement to participate in
the Plan and to comply with all terms, conditions and restrictions within the Plan.

 

(v)          
 “Prior Year Annual Bonus” means the amount of the annual cash bonus, if any, that an Eligible
Executive earned for the fiscal year of the Company immediately preceding the year in which the Date of Termination occurs.

 

(w)         
“Pro-Rata Annual Bonus” means an amount equal to an Eligible Executive’s Target Annual Bonus
multiplied by a fraction, the numerator of which is the number of days in such fiscal year during which such Eligible Executive
was employed by the Company and its Affiliates, and the denominator of which is 365.

 

(x)          
“Qualifying Termination” means the termination of an Eligible Executive’s employment (i)
by the Company without Cause (which, for the avoidance of doubt, does not include a termination of employment due to death or Disability)
or (ii) due to an Eligible Executive’s resignation for Good Reason.

 

(y)          
“Release Consideration Period” means the period of 21 days or 45 days, as applicable, following
the date the Company provides the Eligible Executive with a general release of claims before the Eligible Executive must execute
such release of claims to fulfill the Release Requirement.

 

(z)          
“Release Requirement” means the requirement that an Eligible Executive execute and deliver to
the Company a general release of claims, in a form acceptable to the Company, on or prior to the date that is 21 days following
the date upon which the Company delivers the release to an Eligible Executive (which shall occur no later than seven days following
the Date of Termination) or, in the event that such termination of employment is “in connection with an exit incentive or
other employment termination program” (as such phrase is defined in the Age Discrimination in Employment Act of 1967), the
date that is 45 days following such delivery date. Notwithstanding the foregoing or any other provision in the Plan to the contrary,
the Release Requirement shall not be considered satisfied if the release described in the preceding sentence is revoked by the
Eligible Executive within any time provided by the Company for such revocation.

 

(aa)        
“Section 409A” means Section 409A of the Code and the U.S. Department of Treasury regulations
and other interpretive guidance issued thereunder.

 

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(bb)       
“Severance Amount” means, with respect to an Eligible Executive, an amount equal to the product
of (i) the Applicable Severance Multiple or, in the event of a Qualifying Termination that occurs within the 12-month period following
a Change of Control, the Applicable CIC Severance Multiple and (ii) the sum of such Eligible Executive’s (A) Base Salary
and (B) Target Annual Bonus.

 

(cc)       
“Target Annual Bonus” means the target amount of an Eligible Executive’s annual cash bonus
immediately prior to the Date of Termination, unless such Date of Termination occurs during the 12 months following a Change in
Control, in which case the Target Annual Bonus shall equal the target amount of an Eligible Executive’s annual cash bonus
immediately prior to the Change in Control.

 

(dd)       
“Tier” means an “Executive Tier” used for purposes of determining the level of severance
benefits an Eligible Executive is eligible to receive. Each Eligible Executive shall be designated by the Committee as a Tier 1
Executive, Tier 2 Executive or a Tier 3 Executive.

 

3.           
Administration of the Plan.

 

(a)         
Administration by the Committee. The Committee shall be responsible for the management and control of the operation
and the administration of the Plan, including interpretation of the Plan, decisions pertaining to eligibility to participate in
the Plan, computation of severance payments, granting or denial of severance claims and review of claims denials. The Committee
has absolute discretion in the exercise of its powers and responsibilities. For this purpose, the Committee’s powers shall
include the following authority, in addition to all other powers provided by the Plan:

 

(i)            
to make and enforce such rules and regulations as it deems necessary or proper for the efficient administration of the Plan;

 

(ii)           
to interpret the Plan, the Committee’s interpretation thereof to be final and conclusive on all persons claiming payments
under the Plan;

 

(iii)          
to decide all questions concerning the Plan and the eligibility of any person to participate in the Plan;

 

(iv)           to
make a determination as to the right of any person to a payment under the Plan (including to determine whether and when there
has been a termination of an Eligible Executive’s employment and the cause of such termination);

 

(v)            to
appoint such agents, counsel, accountants, consultants, claims administrator and other persons as may be required to assist in
administering the Plan;

 

(vi)         
to allocate and delegate its responsibilities under the Plan and to designate other persons to carry out any of its responsibilities
under the Plan, any such allocation, delegation or designation to be in writing;

 

(vii)         
to sue or cause suit to be brought in the name of the Plan; and

 

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(viii)         to obtain from the Company, its Affiliates and from Eligible Executives such information as is necessary for the proper
administration of the Plan.

 

(b)         Indemnification
of the Committee. The Company shall, without limiting any rights that the Committee may have under the Company’s charter
or bylaws, applicable law or otherwise, indemnify and hold harmless the Committee and each member thereof (and any other individual
acting on behalf of the Committee or any member thereof) against any and all expenses and liabilities arising out of such person’s
administrative functions or fiduciary responsibilities, excepting only expenses and liabilities arising out of the person’s
own gross negligence or willful misconduct. Expenses against which such person shall be indemnified hereunder include the amounts
of any settlement, judgment, attorneys’ fees, costs of court, and any other related charges reasonably incurred in connection
with a claim, proceeding, settlement, or other action under the Plan.

 

(c)         
Compensation and Expenses. The Committee shall not receive additional compensation with respect to services for the
Plan. To the extent required by applicable law, but not otherwise, the Committee shall furnish bond or security for the performance
of their duties hereunder. Any expenses properly incurred by the Committee incident to the administration, termination or protection
of the Plan, including the cost of furnishing bond, shall be paid by the Company.

 

4.          
Eligibility. Only individuals who are Eligible Executives may participate in the Plan. The Committee has full
and absolute discretion to determine which employees of the Company and its Affiliates are Eligible Executives. Once an employee
has been designated as an Eligible Executive, he or she shall automatically continue to be an Eligible Executive until he or she
ceases to be an employee or is removed as an Eligible Executive by the Committee; provided, however, that if an employee
is an Eligible Executive as of the date of a Change in Control, then he or she may not be removed as an Eligible Executive by the
Committee during the 12-month period following the date of such Change in Control. For the avoidance of doubt, the Committee may
determine that an employee who was previously designated as an Eligible Executive shall no longer be an Eligible Executive any
time prior to a Change in Control or any time after the one-year anniversary of a Change in Control. The Plan shall supersede all
prior practices, policies, procedures and plans relating to severance payments from the Company and its Affiliates with respect
to the Eligible Executives; provided, however, that the terms and provisions of the Incentive Plan, the ProPetro Holding
Corp. 2013 Stock Option Plan, and the award agreements under each such plan shall continue to govern the equity-based awards granted
under such plans to an Eligible Executive following such Eligible Executive’s termination of employment.

 

5.           
Plan Benefits.

 

(a)         
Qualifying Termination. If an Eligible Executive’s employment with the Company and, as applicable, each of
its Affiliates, ends due to a Qualifying Termination, then such Eligible Executive shall be entitled to receive the Accrued Amounts,
and so long as such Eligible Executive satisfies the Release Requirement, abides by the terms of Section 7 below and continues
to abide by the terms of all other written agreements between such Eligible Executive and any member of the Company Group, including
the restrictive covenants set forth in the award agreements entered into between the Company and such Eligible Executive pursuant
to the Incentive Plan, such Eligible Executive shall also be entitled to receive:

 

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(i)           
A cash payment equal to the Severance Amount payable in a lump-sum on or prior to the Company’s first regularly scheduled
pay date that occurs on or after the 14th day following the Release Consideration Period, but in no event later than 75 days following
the Date of Termination;

 

(ii)          
 If the Prior Year Annual Bonus has not yet been paid to the Eligible Executive, the Prior Year Annual Bonus, payable in
a lump sum at the time annual bonuses for such prior fiscal year of are paid to executives of the Company, but in no event later
than the Applicable March 15; and

 

(iii)         
If such Eligible Executive timely and properly elects to continue coverage for such Eligible Executive and such Eligible
Executive’s spouse and eligible dependents, if any, under the Company’s group health plans pursuant to COBRA, then
the Company shall promptly reimburse the Eligible Executive for the amount by which the premiums paid to effectuate such coverage
during the COBRA Continuation Period exceeds the amount of the employee contribution that active executive employees of the Company
pay for the same or similar coverage under such group health plans during the same period, less applicable taxes and withholdings
(the “COBRA Benefit”). Each payment of the COBRA Benefit shall be paid to the Eligible Executive on the
Company’s first regularly scheduled pay date in the calendar month immediately following the calendar month in which the
Eligible Executive submits to the Company documentation of the applicable premium payment having been paid by the Eligible Executive,
which documentation shall be submitted by the Eligible Executive to the Company within 30 days following the date on which the
applicable premium payment is paid. Notwithstanding anything in the preceding provisions of this Section 5(a)(iii) to the
contrary, (A) the election of COBRA continuation coverage and the payment of any premiums due with respect to such COBRA continuation
coverage will remain such Eligible Executive’s sole responsibility, and the Company will assume no obligation for payment
of any such premiums relating to such COBRA continuation coverage and (B) if the provision of the benefit described in this
Section 5(a)(iii) cannot be provided in the manner described above without penalty, tax, or other adverse impact on the
Company, then the Company and such Eligible Executive shall negotiate in good faith to determine an alternative manner in which
the Company may provide a substantially equivalent benefit to such Eligible Executive without such adverse impact on the Company.

 

(b)        
Qualifying Termination Following a Change in Control. If an Eligible Executive’s employment with the Company
and, as applicable, each of its Affiliates, ends due to a Qualifying Termination within 12 months following a Change in Control,
then such Eligible Executive shall be entitled to receive the Accrued Amounts, and so long as such Eligible Executive satisfies
the Release Requirement, abides by the terms of Section 7 below and continues to abide by the terms of all other written
agreements between such Eligible Executive and any member of the Company Group, such Eligible Executive shall also be entitled
to receive:

 

(i)          
A cash payment equal to the Severance Amount payable in a lump-sum on or prior to the Company’s first regularly scheduled
pay date that occurs on or after the 14th day following the Release Consideration Period, but in no event later than 75 days following
the Date of Termination;

 

    7

     

    

 

(ii)          
 If the Prior Year Annual Bonus has not yet been paid to the Eligible Executive, the Prior Year Annual Bonus, payable in
a lump sum at the time annual bonuses for such prior fiscal year of are paid to executives of the Company, but in no event later
than the Applicable March 15;

 

(iii)         
The Pro-Rata Annual Bonus for the fiscal year of the Company in which the Date of Termination occurs, payable in a lump
sum on or prior to the Company’s first regularly scheduled pay date that occurs on or after the 14th day following the Release
Consideration Period, but in no event later than 75 days following the Date of Termination; and

 

(iv)         
If such Eligible Executive timely and properly elects to continue coverage for such Eligible Executive and such Eligible
Executive’s spouse and eligible dependents, if any, under the Company’s group health plans pursuant to COBRA, then
the Company shall promptly reimburse the Eligible Executive for the full amount of the premiums paid to effectuate such coverage
during the COBRA Continuation Period, less applicable taxes and withholdings (the “CIC COBRA Benefit”).
Each payment of the CIC COBRA Benefit shall be paid to the Eligible Executive on the Company’s first regularly scheduled
pay date in the calendar month immediately following the calendar month in which the Eligible Executive submits to the Company
documentation of the applicable premium payment having been paid by the Eligible Executive, which documentation shall be submitted
by the Eligible Executive to the Company within 30 days following the date on which the applicable premium payment is paid. Notwithstanding
anything in the preceding provisions of this Section 5(b)(iv) to the contrary, (A) the election of COBRA continuation
coverage and the payment of any premiums due with respect to such COBRA continuation coverage will remain such Eligible Executive’s
sole responsibility, and the Company will assume no obligation for payment of any such premiums relating to such COBRA continuation
coverage and (B) if the provision of the benefit described in this Section 5(b)(iv) cannot be provided in the manner
described above without penalty, tax, or other adverse impact on the Company, then the Company and such Eligible Executive shall
negotiate in good faith to determine an alternative manner in which the Company may provide a substantially equivalent benefit
to such Eligible Executive without such adverse impact on the Company.

 

(c)         
Termination as a Result of Death or Disability. In the event an Eligible Executive’s employment with the Company
and, as applicable, each of its Affiliates, ends due to such Eligible Executive’s death or Disability, such Eligible Executive
shall be entitled to receive the Accrued Amounts, and so long as such Eligible Executive satisfies the Release Requirement, abides
by the terms of Section 7 below and continues to abide by the terms of all other written agreements between such Eligible
Executive and any member of the Company Group, such Eligible Executive shall also be entitled to receive:

 

(i)           
If the Prior Year Annual Bonus has not yet been paid to the Eligible Executive, the Prior Year Annual Bonus, payable in
a lump sum at the time annual bonuses for such prior fiscal year of are paid to executives of the Company, but in no event later
than the Applicable March 15; and

 

    8

     

    

 

(ii)          
A Pro-Rata Annual Bonus for the fiscal year of the Company in which the Date of Termination occurs, payable in a lump sum
on or prior to the Company’s first regularly scheduled pay date that occurs on or after the 14th day following the Release
Consideration Period, but in no event later than 75 days following the Date of Termination.

 

(d)        
Other Non-Qualifying Terminations of Employment. If an Eligible Executive’s employment with the Company and
each of its Affiliates terminates other than pursuant to a Qualifying Termination or due to the Eligible Executive’s death
or Disability, then all compensation and benefits to such Eligible Executive shall terminate contemporaneously with such termination
of employment, except that such Eligible Executive shall be entitled to the Accrued Amounts.

 

(e)         
After-Acquired Evidence. Notwithstanding any provision of the Plan to the contrary, in the event that the Company
determines that an Eligible Executive is eligible to receive the payments or benefits other than the Accrued Obligations pursuant
to Section 5 but, after such determination, the Company subsequently acquires evidence or determines that: (i) such Eligible
Executive has failed to abide by the terms Section 7 below or the terms of any other written agreement between such Eligible
Executive and any member of the Company Group; or (ii) a Cause condition existed prior to the Date of Termination that, had the
Company been fully aware of such condition, would have given the Company the right to terminate such Eligible Executive’s
employment for Cause, then the Company shall have no obligation to pay any amount in excess of the Accrued Obligations, and such
Eligible Executive shall promptly return to the Company any payment in excess of the Accrued Obligations received by such Eligible
Executive prior to the date that the Company determines that the conditions of this Section 5(c) have been satisfied.

 

6.          
Certain Excise Taxes. Notwithstanding anything to the contrary in the Plan, if an Eligible Executive is a
 “disqualified individual” (as defined in Section 280G(c) of the Code), and the payments provided for in the Plan, together
with any other payments and benefits which such Eligible Executive has the right to receive from the Company or any of its Affiliates,
would constitute a “parachute payment” (as defined in Section 280G(b)(2) of the Code), then the payments provided for
in the Plan shall be either (a) reduced (but not below zero) so that the present value of such total amounts and benefits
received by such Eligible Executive from the Company and its Affiliates will be one dollar less than three times such Eligible
Executive’s “base amount” (as defined in Section 280G(b)(3) of the Code) and so that no portion of such amounts
and benefits received by such Eligible Executive shall be subject to the excise tax imposed by Section 4999 of the Code or (b) paid
in full, whichever produces the better net after-tax position to such Eligible Executive (taking into account any applicable excise
tax under Section 4999 of the Code and any other applicable taxes). The determination as to whether any such reduction in the amount
of the payments provided hereunder is necessary shall be made by the Company in good faith. If a reduced payment is made and through
error or otherwise that payment, when aggregated with other payments and benefits from the Company (or its Affiliates) used in
determining if a “parachute payment” exists, exceeds one dollar less than three times such Eligible Executive’s
base amount, then such Eligible Executive shall immediately repay such excess to the Company upon notification that an overpayment
has been made. Nothing in this Section 6 shall require the Company to be responsible for, or have any liability or
obligation with respect to, such Eligible Executives’ excise tax liabilities under Section 4999 of the Code.

 

    9

     

    

 

7.          
Defense and Pursuit of Claims. An Eligible Executive shall, following the termination of his or her employment,
cooperate with the Company Group and its counsel in any litigation or human resources matters in which such Eligible Executive
may be a witness or potential witness or with respect to which such Eligible Executive may have knowledge of relevant facts or
evidence. The Company shall reimburse such Eligible Executive for reasonable and necessary expenses incurred in the course of complying
with this Section provided that the Eligible Executive provides reasonable documentation of the same and obtains the Company’s
prior approval for incurring such expenses.

 

8.          
Enforcement. Money damages would not be a sufficient remedy for any breach of Section 7 or any breach
of the terms of any other written agreement between an Eligible Executive and any member of the Company Group, in each case, by
such Eligible Executive, and any member of the Company Group shall be entitled to enforce the provisions of Section 7 and
the terms of such other written agreements as may be applicable by terminating payments or additional benefits then owing to the
Eligible Executive and to specific performance, injunctive relief and other equitable relief, without bond, as remedies for such
breach or any threatened breach. In addition, in the event of a breach by an Eligible Executive of Section 7 or the terms
of any other written agreement between such Eligible Executive and any member of the Company Group, the Eligible Executive shall
repay to the Company any and all payments received or paid or deemed paid by the Company for the benefit of the Eligible Executive
pursuant to the Plan. Such remedies shall not be deemed the exclusive remedies for a breach of Section 7 or the terms of
such other written agreements as may be applicable, but shall be in addition to all remedies available at law or in equity, including
the recovery of damages from the Eligible Executive and the Eligible Executive’s agents. This Section 8, Section
7 and the terms of any other written agreements between the Eligible Executive and any member of the Company Group, and each
provision and portion thereof, are severable and separate, and the unenforceability of any specific Section or provision (or portion
thereof) shall not affect the enforceability of any other Section or provision (or portion thereof).

 

9.          
Claims Procedure and Review.

 

(a)         
Filing a Claim. Any Eligible Executive that the Committee determines is entitled to payment of severance benefits
under the Plan is not required to file a claim for such benefit. Any employee (i) who is not paid severance benefits hereunder
and who believes that he or she is entitled to severance benefits hereunder or (ii) who has been paid severance benefits hereunder
and believes that he or she is entitled to greater benefits hereunder may file a written claim for severance benefits under the
Plan with the Committee setting forth the facts and arguments for Committee consideration within 90 days after such employee knew
or reasonably should have known of the principal facts upon which his or her claim is based.

 

(b)         
Initial Determination of a Claim. Within 90 days of the date the Committee receives a claim, the claimant will receive
(i) a decision or (ii) a written notice describing special circumstances requiring a specified amount of additional time (up to
90 additional days) to reach a decision and the date by which it expects to reach a decision. If a claim for severance benefits
hereunder is wholly or partially denied, the Committee shall, within a reasonable period of time but no later than 90 days after
receipt of the claim (or 180 days after receipt of the claim if special circumstances require an extension of time for processing
the claim), notify the claimant of the denial. Such notice shall (A) be in writing, (B) be written in a manner calculated to be
understood by the claimant, (C) contain the specific reason or reasons for denial of the claim, (D) refer specifically to
the pertinent Plan provisions upon which the denial is based, (E) describe any additional material or information necessary for
the claimant to perfect the claim (and explain why such material or information is necessary), and (F) describe the Plan’s
claim review procedures and time limits applicable to such procedures, including a statement of the claimant’s right to bring
a civil action under Section 502(a) of ERISA following an adverse benefit determination on review.

 

    10

     

    

 

(c)        
Appeal of a Denied Claim. Within 60 days of the receipt by the claimant of the notice that the claim was denied,
the claimant may file a written appeal with the Committee. In connection with the appeal, the claimant may review Plan documents
and may submit written issues and comments. Within 60 days of the date the Committee receives an appeal, the claimant will receive
(i) a decision or (ii) a written notice describing special circumstances requiring a specified amount of additional time (up to
60 additional days) to reach a decision and the date by which it expects to reach a decision. The Committee shall deliver to the
claimant a written decision on the appeal promptly, but not later than 60 days after the receipt of the claimant’s appeal
(or 120 days after receipt of the claimant’s appeal if there are special circumstances which require an extension of time
for processing). Such decision shall (A) be in writing, (B) be written in a manner calculated to be understood by the claimant,
(C) include specific reasons for the decision, (D) refer specifically to the Plan provisions upon which the decision is based,
(E) state that the claimant is entitled to receive, on request and free of charge, reasonable access to and copies of all documents,
records, and other information relevant to the claimant’s claim for benefits, and (F) a statement of the Eligible Executive’s
right to bring an action under Section 502(a) of ERISA. If special circumstances require an extension of up to 180 days for an
initial claim or 120 days for an appeal, whichever applies, the Committee shall send written notice of the extension. This notice
shall indicate the special circumstances requiring the extension and state when the Committee expects to render the decision.

 

(d)        
Additional Information for a Claim on Review. If the Committee determines it needs further information to complete
its review of a claim, the claimant will receive a written notice describing the additional information necessary to make the decision.
The claimant will then have 60 days from the date the claimant receives the notice to provide the requested information to the
Committee. The time between the date the Committee sends its information request to the claimant and the date the Committee receives
the requested information from the claimant does not count against the 60-day period in which the Committee has to decide the claim
on review. If the Committee does not receive a response to its request for additional information from the claimant, then the period
by which the Committee must reach its decision shall be extended by the 60-day period that was provided to the claimant to submit
the additional information. If special circumstances exist, this period may be further extended.

 

(e)        
In General. The Committee will make all decisions on claims and review of denied claims. The Committee has the sole
discretion, authority and responsibility to decide all factual and legal questions under the Plan, including interpreting and construing
the Plan and any ambiguous or unclear terms, and determining whether a claimant is eligible for benefits and the amount of benefits,
if any, a claimant is entitled to receive. The Committee may hold hearings and reserves the right to delegate its authority to
make decisions. The Committee may rely on any applicable statute of limitations as a basis to deny a claim. The Committee’s
decisions are conclusive and binding on all Parties. The claimant may, at his or her own expense, have an attorney or representative
act on his or her behalf, but the Committee reserves the right to require a written authorization for a person to act on the claimant’s
behalf.

 

    11

     

    

 

(f)         
Time Periods. The time period for the Committee to decide a claim begins to run on the date the Committee receives
a claimant’s written claim. If a claimant files a timely request for review of a denied claim, the time period for the Committee
to decide begins to run on the date the Committee receives the written request. In both cases, the time period begins to run whether
or not the claimant submits comments or information that he or she would like considered by the Committee.

 

(g)        
Limitations Period. If a claimant files a claim within the required time, completes the entire claims procedure and
the Committee denies such claim after the claimant requests a review, the claimant may sue over the claim (unless he or she has
executed a release of such claim). The claimant must commence this lawsuit within six months after the claims process is completed.
Regardless of when the claimant files the claim, the claimant may not, under any circumstances, commence a lawsuit more than 30
months after he or she knew or should have known the facts supporting the claim. Before commencing legal action to recover benefits
or to enforce or clarify rights, the claimant must complete all of the Plan’s claim procedures.

 

(h)        
The benefits claim procedure provided in this Section 9 is intended to comply with the provisions of 29 C.F.R. §2560.503-1.
All provisions of this Section 9 shall be interpreted, construed, and limited in accordance with such intent.

 

10.         
General Provisions.

 

(a)        
Taxes. The Company and its Affiliates are authorized to withhold from all payments made hereunder amounts of withholding
and other taxes due or potentially payable in connection therewith, and to take such other action as the Company may deem advisable
to enable the Company and its Affiliates and the Eligible Executive to satisfy obligations for the payment of withholding taxes
and other tax obligations relating to any payments made under the Plan.

 

(b)        
Offset. The Company may set off against, and each Eligible Executive authorizes the Company to deduct from, any payments
due to the Eligible Executive, or to his or her estate, heirs, legal representatives, or successors, any amounts which may be due
and owing to the Company or an Affiliate of the Company by the Eligible Executive, whether arising under the Plan or otherwise;
provided, however, that any such offset must be compliant with applicable law and no such offset may be made with respect
to amounts payable that are subject to the requirements of Section 409A unless the offset would not result in a violation of the
requirements of Section 409A.

 

    12

     

    

 

(c)        
Amendment and Termination. Prior to a Change in Control, the Plan may be amended or modified in any respect and may
be terminated by the Board; provided, however, that the Plan may not be amended, modified or terminated in any manner that
would in any way adversely affect the benefits or protections provided hereunder to any individual who is an Eligible Executive
under the Plan at such time, (i) at the request of a third party who has indicated an intention or taken steps to effect a Change
in Control and who effectuates a Change in Control, or (ii) otherwise in connection with, or in anticipation of, a Change in Control
that actually occurs, and any such attempted amendment, modification or termination shall be null and void ab initio. Any
action taken to amend, modify or terminate the Plan which is taken subsequent to the execution of an agreement providing for a
transaction or transactions which, if consummated, would constitute a Change in Control shall conclusively be presumed to have
been taken in connection with a Change in Control. For the duration of the 12-month period following a Change in Control, the Plan
may not be amended or modified in any manner that would in any way adversely affect the benefits or protections provided hereunder
to any individual who is an Eligible Executive under the Plan on the date a Change in Control occurs.

 

(d)        
Successors. The Plan will be binding upon any successor to the Company, its assets, its businesses or its interest
(whether as a result of the occurrence of a Change in Control or otherwise), in the same manner and to the same extent that the
Company would be obligated under the Plan if no succession had taken place. All payments and benefits that become due to an Eligible
Executive under the Plan will inure to the benefit of his or her heirs, assigns, designees or legal representatives.

 

(e)        
Transfer and Assignment. Neither an Eligible Executive nor any other person shall have any right to sell, assign,
transfer, pledge, anticipate or otherwise encumber, transfer, hypothecate or convey any amounts payable under the Plan prior to
the date that such amounts are paid.

 

(f)         
Unfunded Obligation. All benefits due an Eligible Executive under the Plan are unfunded and unsecured and are payable
out of the general assets of the Company. The Company is not required to segregate any monies or other assets from its general
funds with respect to these obligations. Eligible Executives shall not have any preference or security interest in any assets of
the Company other than as a general unsecured creditor.

 

(g)        
Severability. If any provision of the Plan (or portion thereof) is held to be illegal or invalid for any reason,
the illegality or invalidity of such provision (or portion thereof) will not affect the remaining provisions (or portions thereof)
of the Plan, but such provision (or portion thereof) will be fully severable and the Plan will be construed and enforced as if
the illegal or invalid provision (or portion thereof) had never been included herein.

 

(h)       
Section 409A. The Plan is intended to comply with Section 409A or an exemption thereunder and shall be construed
and administered in accordance with Section 409A. Notwithstanding any other provision of the Plan, payments provided under the
Plan may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any payments under
the Plan that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a
short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each installment
payment provided under the Plan shall be treated as a separate payment. Any payments to be made under the Plan upon the termination
of an Eligible Executive’s employment shall only be made if such termination of employment constitutes a “separation
from service” under Section 409A. Notwithstanding any provision in the Plan to the contrary, if any payment or benefit provided
for herein would be subject to additional taxes and interest under Section 409A if an Eligible Executive’s receipt of such
payment or benefit is not delayed until the earlier of (i) the date of such Eligible Executive’s death or (ii) the date that
is six months after such Eligible Executive’s Date of Termination (such date, the “Section 409A Payment Date”),
then such payment or benefit shall not be provided to such Eligible Executive (or such Eligible Executive’s estate, if applicable)
until the Section 409A Payment Date. Notwithstanding the foregoing, the Company makes no representations that the payments and
benefits provided under the Plan are exempt from, or compliant with, Section 409A and in no event shall the Company or any of its
Affiliates be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by any Eligible
Executive on account of non-compliance with Section 409A.

 

    13

     

    

 

(i)          
Governing Law; Submission to Jurisdiction. All questions arising with respect to the provisions of the Plan and payments
due hereunder will be determined by application of the laws of the State of Texas, without giving effect to any conflict of law
provisions thereof, except to the extent preempted by federal law (including ERISA, which is the federal law that governs the Plan,
the administration of the Plan and any claims made under the Plan). Any action to obtain emergency, temporary or preliminary injunctive
relief as permitted by Section 7 will be brought only in the state and federal courts residing in, or with jurisdiction
over, Midland County, Texas. The Eligible Executives recognize that such forum and venue is convenient.

 

(j)          
Third-Party Beneficiaries. Each Affiliate of the Company shall be a third-party beneficiary of the Eligible Executive’s
covenants and obligations under Section 7 and the terms and provisions of any other written agreement between such Eligible
Executive and the Company and shall be entitled to enforce such obligations as if a party hereto.

 

(k)          No Right to Continued Employment. The adoption and maintenance of the Plan shall not be deemed to be a contract of
employment between the Company or any of its Affiliates and any person, or to have any impact whatsoever on the at-will employment
relationship between the Company or any of its Affiliates and the Eligible Executives. Nothing in the Plan shall be deemed to give
any person the right to be retained in the employ of the Company or any of its Affiliates for any period of time or to restrict
the right of the Company or any of its Affiliates to terminate the employment of any person at any time.

 

(l)          
Title and Headings; Construction. Titles and headings to Sections hereof are for the purpose of reference only and
shall in no way limit, define or otherwise affect the provisions hereof. Unless the context requires otherwise, all references
to laws, regulations, contracts, documents, agreements and instruments refer to such laws, regulations, contracts, agreements and
instruments as they may be amended from time to time, and references to particular provisions of laws or regulations include a
reference to the corresponding provisions of any succeeding law or regulation. The word “or” as used herein is not
exclusive and is deemed to have the meaning “and/or.” The words “herein”, “hereof”, “hereunder”
and other compounds of the word “here” shall refer to the entire Plan, and not to any particular provision hereof.
Wherever the context so requires, the masculine gender includes the feminine or neuter, and the singular number includes the plural
and conversely. The use herein of the word “including” following any general statement, term or matter shall not be
construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or
to similar items or matters, whether or not non-limiting language (such as “without limitation”, “but not limited
to”, or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or
matters that could reasonably fall within the broadest possible scope of such general statement, term or matter. Neither the Plan
nor any uncertainty or ambiguity herein shall be construed or resolved against any party hereto, whether under any rule of construction
or otherwise. On the contrary, the Plan shall be construed and interpreted according to the ordinary meaning of the words used
so as to fairly accomplish the purposes and intentions of the Company.

 

    14

     

    

 

(m)       
Overpayment. If, due to mistake or any other reason, a person receives severance payments under the Plan in excess
of what the Plan provides, such person shall repay the overpayment to the Company in a lump sum within 30 days of notice of the
amount of overpayment. If such person fails to so repay the overpayment, then without limiting any other remedies available to
the Company, the Company may deduct the amount of the overpayment from any other amounts which become payable to such person under
the Plan or otherwise.

 

(n)        
Clawback. Any amounts payable under the Plan are subject to any policy (whether in existence as of the Effective
Date or later adopted) established by the Company providing for clawback or recovery of amounts that were paid to the Eligible
Executive; provided, however, that the establishment or modification of any clawback policy by the Company on or after the date
of a Change in Control shall only apply to amounts payable under the Plan to the extent required by applicable law. The Company
will make any determination for clawback or recovery in its sole discretion and in accordance with applicable laws, regulations,
and securities exchange listing standards.

 

(o)        
Agent for Service of Legal Process. Legal process may be served on the Committee, which is the plan administrator,
at the following address: Compensation Committee of the Board of Directors, c/o ProPetro Holding Corp., 1706 Midkiff Road, Bldg.
B, Midland, Texas 79107.

 

    15

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