Document:

ex_102393.htm

Exhibit 10.3

 

FACTSET RESEARCH SYSTEMS INC.

EMPLOYEE STOCK PURCHASE PLAN

AS AMENDED AND RESTATED

 

ARTICLE I

ESTABLISHMENT

 

FactSet Research Systems Inc. (the “Company”) hereby amends and restates its FactSet Research Systems Inc. Employee Stock Purchase Plan, as Amended and Restated (the “Plan”), effective as of December 19, 2017 (the “Effective Date”).

 

PURPOSE

 

The primary purpose of the Plan is to provide a method whereby employees of the Company or any Designated Subsidiary (as defined herein), will have an opportunity to acquire a proprietary interest in the Company through the purchase of shares of Common Stock. The Plan is also established to help promote the overall financial objectives of the Company’s stockholders by promoting those persons participating in the Plan to achieve long-term growth in stockholder equity. The Plan is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”). The provisions of the Plan shall be construed so as to extend and limit participation in a manner consistent with the requirements of Section 423 of the Code and the regulations promulgated thereunder.

 

ARTICLE II

DEFINITIONS

 

The following words and phrases, as used herein, shall have the meanings indicated unless the context clearly indicates to the contrary:

 

2.01     “Account” shall mean the bookkeeping account established on behalf of a Participant to which (i) is credited all contributions paid for the purpose of purchasing Common Stock under the Plan, (ii) is credited all shares of Common Stock purchased with such contributions, and (iii) shall be charged all distributions of Common Stock, or withdrawals of contributions, pursuant to the Plan. Such Account shall remain unfunded as described in Section 8.11 of the Plan.

 

2.02     “Affiliate” shall mean, with respect to any Person, any other Person that, directly or indirectly, controls, is controlled by, or is under common control with, such Person. Any “Relative” (for this purpose, “Relative” means a spouse, child, parent, parent of spouse, sibling or grandchild) of an individual shall be deemed to be an Affiliate of such individual for this purpose. Neither the Company nor any Person controlled by the Company shall be deemed to be an Affiliate of any holder of Common Stock.

 

2.03     “Agreement” shall mean, either individually or collectively, any subscription, enrollment and/or withholding agreement, in the form prescribed by the Committee, entered into pursuant to the Plan between the Company or a Designated Subsidiary and a Participant. Such Agreement shall be an authorization for the Company or a Designated Subsidiary to withhold amounts from such Participant’s Compensation, at the Contribution Rate specified in the Agreement, to be applied to purchase Common Stock.

 

 

 

 

2.04     “Beneficiary” shall mean the person specified by a Participant in his or her most recent written designation that is filed with the Plan Administrator (or designee) to receive any benefits under the Plan in the event of such Participant’s death, in accordance with Section 8.01.

 

2.05     “Board” shall mean the Board of Directors of the Company.

 

2.06     “Change of Control” shall have the meaning given that term in the FactSet Research Systems Inc. Stock Option and Award Plan, as Amended and Restated, as may be amended from time to time.

 

2.07     “Commission” shall mean the Securities and Exchange Commission or any successor entity or agency.

 

2.08     “Committee” shall mean the Compensation and Talent Committee of the Board as described in Article VII.

 

2.09     “Compensation” shall mean, for the relevant period, the base compensation (salary or wages) paid in cash to a Participant by the Company and/or a Designated Subsidiary. Compensation shall not include bonuses or other incentive-type payments. 

 

2.10     “Common Stock” shall mean shares of common stock of the Company, par value $.01 per share, or the common stock of any successor to the Company, which is designated for the purposes of the Plan.

 

2.11     “Contribution Rate” shall be that rate of contribution of Compensation to the Plan stated in the Agreement, subject to determination in accordance with Article IV.

 

2.12     “Designated Subsidiary” shall mean any Subsidiary that has been designated by the Committee from time to time in its sole discretion as eligible to participate in the Plan.

 

2.13     “Eligible Employee” shall mean any individual who is employed in the United States (unless otherwise required by law or the Committee determines otherwise) on a full-time or part-time basis by the Company or a Designated Subsidiary on an Enrollment Date, except that the Committee in its sole discretion may exclude: (i) employees whose customary employment is not more than 20 hours per week; (ii) employees whose customary employment is for not more than five months in any calendar year; and (iii) employees who are considered to be a highly compensated employee of the Company or Designated Subsidiary within the meaning of Section 414(q) of the Code. As of the Effective Date, and unless and until the Committee determines otherwise, only those employees described in Section 2.13(i) and (ii) are excluded from the class of Eligible Employees.

 

2.14     “Enrollment Date” shall mean the first day of each Offering Period.

 

2.15     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated by the Commission thereunder.

 

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2.16     “Exercise Date” shall mean the last day of each Offering Period.

 

2.17     “Fair Market Value” of a share of Common Stock as of a given date shall mean: (i) if the Common Stock is listed or admitted to trading on The New York Stock Exchange or on another established stock exchange (including, for this purpose, the Nasdaq National Market), the closing sale price for a share of the Common Stock on the composite tape for such exchange (or in Nasdaq National Market trading, if applicable) as reported in The Wall Street Journal (or, if not so reported, such other nationally recognized reporting source as the Committee shall select) for such date, or, if no such price is reported for such date, the most recent day for which such price is available shall be used; (ii) if the Common Stock is not then listed or admitted to trading on such a stock exchange, the mean of the closing representative bid and asked prices for the Common Stock on such date as reported by the Nasdaq Small Cap Market or, if not so reported, by the OTC Bulletin Board (or any successor or similar quotation system regularly reporting the market value of the Common Stock in the over-the-counter market), or, if no such prices are reported for such date, the most recent day for which such prices are available shall be used; or (iii) in the event neither of the valuation methods provided for in clauses (i) and (ii) above are practicable, the fair market value of a share of Common Stock determined by such other reasonable valuation method as the Committee shall, in its discretion, select and apply in good faith as of such date.

 

2.18     “Nominee” shall mean the custodian, if any, designated by the Company for the Accounts held under the Plan.

 

2.19     “Offering Period” shall mean a period as determined by the Committee during which a Participant’s Option may be exercised and the accumulated value of the Participant’s Account may be applied to purchase Common Stock. Unless otherwise specified by the Committee, Offering Periods shall begin on the first business day of each fiscal quarter of the Company and end on the last business day of such fiscal quarter. As of the date of adoption of the Plan by the Board, the fiscal quarters of the Company commence on March 1, June 1, September 1 and December 1. The duration of Offering Periods may be changed by the Committee or the Board pursuant to Section 3.06 or 5.04.

 

2.20     “Option” shall mean the right to purchase the number of shares of Common Stock specified in accordance with the Plan at a price and for a term fixed in accordance with the Plan, and subject to such other limitations and restrictions as may be imposed by the Plan or the Committee in accordance with the Plan.

 

2.21     “Option Price” shall mean an amount equal to at least 85% of the Fair Market Value of a share of Common Stock on the Enrollment Date or Exercise Date, whichever is lower.

 

2.22     “Participant” shall mean an Eligible Employee who satisfies the eligibility conditions of Article III, and to whom an Option has been granted by the Committee under the Plan.

 

2.23     “Person” shall mean “person” as such term is used for purposes of Section 13(d) or 14(d) of the Exchange Act, including, without limitation, any individual, corporation, limited liability company, partnership, trust, unincorporated organization, government or any agency or political subdivision thereof, or any other entity or any group of Persons.

 

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2.24     “Plan Administrator” shall mean the person serving as the Director of Human Resources of the Company, unless the Committee determines otherwise.

 

2.25     “Plan Year” shall mean the twelve (12) consecutive month period commencing on September 1 and ending on the following August 31. The Committee may at any time designate another period as the Plan Year.

 

2.26     “Reserves” shall mean the number of shares of Common Stock covered by each Option under the Plan that have not yet been exercised and the number of shares of Common Stock that have been authorized for issuance under the Plan but not yet placed under an Option.

 

2.27     “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated by the Commission thereunder.

 

2.28     “Subsidiary” shall mean any present or future corporation, domestic or foreign, which is or would be a “subsidiary corporation,” as defined under Section 424(f) of the Code, of the Company.

 

2.29     “Trading Day” shall mean a day on which national stock exchanges are open for trading.

 

ARTICLE III

ELIGIBILITY AND PARTICIPATION

 

3.01     Initial Eligibility. Any individual who becomes employed with the Company or a Designated Subsidiary, and is otherwise an Eligible Employee, may participate in the Plan starting with the first Offering Period that begins after the date the individual completes ninety (90) days of continuous service with the Company or the Designated Subsidiary. The Eligible Employee must enroll by the deadline set by the Company to participate in any Offering Period.

 

3.02     Leave of Absence. For purposes of the Plan, an individual’s employment relationship is still considered to be continuing intact while such individual is on sick leave, or other leave of absence approved by the Committee or the Participant’s supervisor; provided, however, that if the period of leave of absence exceeds ninety (90) days and the individual’s right to reemployment is not guaranteed either by statute or by contract, the employment relationship shall be deemed to have terminated on the ninety-first (91st) day of such leave.

 

3.03     Eligibility Restrictions. Notwithstanding any provisions of the Plan to the contrary, no employee of the Company or a Designated Subsidiary shall be granted an Option under the Plan:

 

(a)     if, immediately after the Option is granted, applying the rules under Section 424(d) of the Code to determine Common Stock ownership, such employee would own, immediately after the Option is granted, five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or any Subsidiary; or

 

(b)     which permits such employee’s rights to purchase stock under the Plan and any other employee stock purchase plans (excluding, for this purpose, any of the Company’s stock option plans) of the Company or any Subsidiary to accrue at a rate that exceeds $25,000 (or such other amount as may be adjusted from time to time under applicable provisions of the Code or regulations promulgated thereunder) in Fair Market Value of Common Stock (determined at the time such Option is granted) for each calendar year in which such Option is outstanding.

 

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3.04     Participation. (a) An Eligible Employee may commence participation by enrolling and completing an Agreement authorizing payroll deductions and submitting it to the Company or representative designated by the Company (including a third-party administrator designated by the Company) in such manner prescribed by the Company by the deadline set by the Company prior to the applicable Enrollment Date. Such an Eligible Employee is referred to as a Participant.

 

(b)     Any payroll deductions for a Participant shall commence on the first payroll date following the Enrollment Date and shall end on the last payroll date in the Offering Period to which such authorization is applicable, unless sooner terminated by the Participant as provided in Article VI. Unless the Participant withdraws from the Plan, the Participant’s employment terminates, or the Participant becomes ineligible to participate in the Plan, the Participant will automatically continue to participate in subsequent Offering Periods.

 

3.05     Option Grant. On the Enrollment Date of each Offering Period, each Participant participating in the Offering Period shall be granted an Option to purchase on the Exercise Date of such Offering Period (at the appropriate Option Price) a number of shares of Common Stock (which may include fractional shares, as determined by the Committee) as determined by dividing the particular Participant’s payroll deductions that have accumulated prior to such Exercise Date and retained in such Participant’s Account as of that Exercise Date by the appropriate Option Price, subject, however, to the limitations described in this Section and in the Plan.

 

Except as otherwise provided below, on the Enrollment Date of each Offering Period, the maximum number of whole shares of Common Stock that may be subject to the Option shall be determined by dividing the Dollar Limit (defined herein) by the Fair Market Value of a share of Common Stock on such Enrollment Date. For the purposes of this Section, the “Dollar Limit” shall be determined by multiplying $2,083.33 by the number of months (rounded down to the nearest whole month) in the Offering Period and rounding down to the nearest whole dollar. The Committee may, in its discretion and prior to the Enrollment Date of any Offering Period, (i) change the method of, or any of the foregoing factors in, determining the number of shares of Common Stock subject to Options to be granted on such Enrollment Date, or (ii) specify a maximum aggregate number of shares that may be purchased by all Participants in an Offering Period or on any Exercise Date. No Option shall be granted on an Enrollment Date to any person who is not, on such Enrollment Date, an Eligible Employee. 

 

Such purchase of shares of Common Stock shall also be subject to the limitations under Sections 3.03 and 3.09. Exercise of the Option shall occur as provided in Section 3.07, unless the Participant has withdrawn as provided in Article VI. The Option shall expire on the last day of the Offering Period. The Committee may determine that there shall be no Options granted under the Plan for any particular Plan Year.

 

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3.06     Offering Period. The Plan shall be implemented by consecutive Offering Periods of Common Stock. Each Agreement shall specify the Offering Period for which the Option is granted, which shall be determined by the Committee in accordance with the Plan. The Committee shall have the authority to change the duration of Offering Periods, including the commencement dates thereof, with respect to future offerings without approval of the Company’s stockholders. Under such circumstances, any change to the Offering Periods shall be announced at least ten (10) days prior to the scheduled beginning of the initial Offering Period to be affected. In no event, however, shall an Offering Period extend beyond the period permitted under Section 423(b)(7) of the Code.

 

3.07     Exercise of Option. Unless a Participant provides written notice to the Company or representative designated by the Company (including a third-party administrator designated by the Company), or withdraws from the Plan as provided in Article VI, his or her Option for the purchase of shares shall be exercised automatically on the Exercise Date, and the maximum number of shares subject to the Option (which may include fractional shares, as determined by the Committee) shall be purchased for such Participant at the applicable Option Price, using the accumulated payroll deductions in his or her Account, subject to the limitations under Sections 3.03 and 3.09. If fractional shares cannot be purchased, any payroll deductions accumulated in an Account that are not sufficient to purchase a full share of Common Stock shall be retained in the Account for the subsequent Offering Period, subject to earlier withdrawal by the Participant as provided in Article VI. Any other monies remaining in a Participant’s Account after the Exercise Date shall be returned to the Participant or his or her Beneficiary in cash, without interest. During a Participant’s lifetime, such Participant’s Option is exercisable only by such Participant.

 

3.08     Account/Delivery of Stock/Voting and Tendering Rights/Dividends. (a) As of the Exercise Date with respect to each Offering Period, the amount then in a Participant’s Account shall be applied to the purchase of the number of shares of Common Stock determined by dividing such amount by the applicable Option Price. The shares of Common Stock purchased on behalf of a Participant shall initially be credited to a book entry account established by the Company in the name of the Participant or shall be registered in the name of a Nominee, as the Company shall determine in its discretion. Stock certificates shall not be issued to a Participant for the Common Stock held on his or her behalf under the Plan, but all rights accruing to an owner of record of such Common Stock, including, without limitation, voting and tendering rights, shall belong to the Participant for whose Account such Common Stock is held.

 

(b)     A Participant may, at any time, direct the sale of some or all of the shares of Common Stock allocated to the Participant’s Account by providing instructions in such manner designated by the Plan Administrator for such purpose. The proceeds of any sale of shares of Common Stock will be paid to the Participant net of all applicable withholding taxes and transaction costs. The Plan Administrator may establish procedures as to the timing and permitted frequency of such sales by Participants. Unless otherwise determined by the Committee or Plan Administrator, no participant shall have the right to have issued to him or her, prior to termination of employment with the Company or a Designated Subsidiary, a certificate or certificates for some or all of the full shares of Common Stock previously purchased on his or her behalf under the Plan; provided, however, that a Participant shall have the right, upon written request to the Plan Administrator, to receive a certificate or certificates for some or all of the full shares of Common Stock previously purchased on his or her behalf under the Plan to the extent such shares have been held in custody under the Plan, on behalf of the Participant, until the later of (i) two years from the date of the commencement of the Offering Period in respect of which such shares were purchased and (ii) eighteen months from the date of purchase of such shares. In the event a Participant terminates his or her Account, any fractional share held in the Account will be paid to the Participant in cash.

 

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(c)     Upon the termination of the Plan pursuant to Section 8.06, any full shares of Common Stock purchased for the benefit of any Participant and held under the Plan shall be transferred to and registered in the name of each such Participant as soon as administratively practicable.

 

(d)     Each Participant (or, in the event of his or her death, his or her Beneficiary) is entitled to direct the Company (or, if applicable, the Nominee) as to the manner in which any shares of Common Stock held on behalf of such Participant are to be voted. Shares of Common Stock as to which the Company (or the Nominee) shall not have received timely written voting directions by a Participant shall be voted proportionately with shares of Common Stock as to which directions by Participants were so received. Each Participant (or, in the event of his or her death, his or her Beneficiary) is also entitled to direct the Company (or the Nominee) in writing as to the manner in which to respond to a tender or exchange offer with respect to shares of such Common Stock, and the Company (or the Nominee) shall respond in accordance with such directions. If the Company (or the Nominee) shall not have received timely written directions from a Participant as to the response to such offer, the Company (or the Nominee) shall not tender or exchange any shares of Common Stock allocated to such Participant’s Account.

 

(e)     By completing enrollment in the manner required by the Company, a Participant shall have authorized the Company (or, if applicable, the Nominee) to receive and collect all cash dividends or other distributions paid with respect to shares of Common Stock held on the Participant’s behalf and to use such funds to purchase additional shares of Common Stock on behalf of the Participant. If fractional shares cannot be purchased, any dividends accumulated in an Account that are not sufficient to purchase a full share of Common Stock on an Exercise Date shall be retained in the Account for the subsequent Offering Period. The cash value of any distribution in property shall be determined by the Committee. Any stock dividend on shares of Common Stock shall be held under the Plan for the benefit of the Participant on whose behalf the shares of Common Stock giving rise to the dividend are held. The Company (or, if applicable, the Nominee) shall distribute to any Participant, as soon as practical, any dividends received on shares of Common Stock, if the maximum share limitation set forth in Section 3.03 prevent further issuances of such shares. A Participant who elects to hold shares of Common Stock previously held under the Plan in his or her own name will cease to have the benefit of this Section 3.08(e) with respect to such shares when they are registered in his or her own name.

 

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(f)     The Committee will require a Participant or his or her Beneficiary to give prompt written notice to the Company concerning any disposition of shares of Common Stock received upon the exercise of such Participant’s Option within: (i) two (2) years from the date of granting of such Option to such Participant, (ii) one (1) year from the transfer of such shares of Common Stock to such Participant, or (iii) such other period as the Committee may from time to time determine.

 

3.09     Withholding. At the time an Option is exercised, or at the time some or all of the Common Stock that is issued under the Plan is disposed of, the Company may withhold from any Compensation or other amount payable to the applicable Participant, or require such Participant to remit to the Company (or make other arrangements satisfactory to the Company, as determined in the Committee’s discretion, regarding payment to the Company of), the amount necessary for the Company to satisfy any Federal, state or local taxes required by law to be withheld with respect to the shares of Common Stock subject to such Option or disposed of, as a condition to delivery of any certificate or certificates for any such shares of Common Stock. Whenever under the Plan payments are to be made in cash, such payments shall be made net of an amount sufficient to satisfy any Federal, state or local tax or withholding obligations with respect to such payments.

 

ARTICLE IV

PAYROLL DEDUCTIONS

 

4.01     Contribution Rate. (a) At the time a Participant enrolls, he or she may elect to have payroll deductions made on each payday during the Offering Period, and such Contribution Rate shall be a minimum of one percent (1%) and a maximum of ten percent (10%) (in whole percentages) of the Participant’s Compensation in effect on each payroll period during the Offering Period (subject to Section 4.01(b)), unless the Committee determines otherwise in a manner applicable uniformly to all Participants. Participants may not make any separate cash payments outside payroll deductions under the Plan except as otherwise provided in Section 5.04(d) in the event of a Change of Control.

 

(b)     A Participant may discontinue his or her participation in the Plan as provided in Article VI, or may elect to decrease (but not increase) the rate of his or her payroll deductions during the Offering Period in the manner prescribed by the Company to authorize a change in his or her Contribution Rate. Such election by the Participant to decrease his or her Contribution Rate shall only be permitted once during each Offering Period. The Committee may, in its discretion, in a fair and equitable manner, limit the number of Participants who change their Contribution Rate during any Offering Period. Any such change in Contribution Rate accepted by the Company or representative designated by the Company (including a third-party administrator designated by the Company) shall be effective as soon as practicable after receipt of the new Agreement authorizing the new Contribution Rate. A Participant’s authorization to change his or her Contribution Rate shall remain in effect for successive Offering Periods unless terminated as provided in Article VI. A Participant may increase his or her Contribution Rate by filing a new Agreement with the Company or representative designated by the Company (including a third-party administrator designated by the Company) to be effective with the next Offering Period, so long as it is received by the deadline set by the Company for receipt before the Enrollment Date.

 

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(c)     Notwithstanding the foregoing provisions of this Section 4.01, the Committee may decrease a Participant’s Contribution Rate, but not below zero percent (0%), at any time during an Offering Period to the extent necessary to comply with Section 423(b)(8) of the Code, Sections 3.03 or 3.05 of the Plan, or as a result of a hardship distribution from the Company’s 401(k) plan. To the extent necessary in such case, payroll deductions shall recommence at the rate provided in such Participant’s Agreement at the beginning of the first Offering Period that is scheduled to begin in the following Plan Year, unless the Participant withdraws from the Plan in accordance with Article VI, or, in the case of a hardship distribution from the Company’s 401(k) plan, when permitted pursuant to that plan.

 

4.02     Participant Account. All payroll deductions made for a Participant shall be credited to the Participant’s Account under the Plan.

 

4.03     Interest. No interest shall accrue on the payroll deductions of a Participant under the Plan. In addition, no interest shall be paid on any and all money that is distributed to a Participant, or his or her Beneficiary, pursuant to the provisions of Sections 6.01 and/or 6.03.

 

ARTICLE V

COMMON STOCK

 

5.01     Shares Provided. (a) The maximum number of shares of Common Stock that may be issued under the Plan shall be 1,000,000 shares. This number is subject to an adjustment upon any changes in capitalization of the Company as provided in Section 5.04.

 

(b)     The Committee may determine, in its sole discretion, to include in the number of shares of Common Stock available under the Plan any shares of Common Stock that cease to be subject to an Option or any shares subject to an Option that terminates without issuance of shares of Common Stock actually being made to the Participant.

 

(c)     If the number of shares of Common Stock that Participants become entitled to purchase under the Plan is greater than the shares of Common Stock offered in a particular Offering Period or remaining available under the Plan, the available shares of Common Stock shall be allocated by the Committee among such Participants in such manner as the Committee determines is fair and equitable.

 

5.02     Participant Interest. The Participant shall have no interest as a shareholder, including, without limitation, voting or dividend rights, with respect to shares of Common Stock covered by his or her Option until such Option has been exercised in accordance with the Plan.

 

5.03     Restriction of Shares Upon Exercise. The Committee may, in its discretion, require as conditions to the exercise of any Option that the shares of Common Stock reserved for issuance upon the exercise of the Option shall have been duly listed upon a stock exchange, and that either:

 

(a)     a registration statement under the Securities Act with respect to the shares shall be effective, or

 

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(b)     the Participant shall have represented at the time of purchase, in form and substance satisfactory to the Company, that it is his or her intention to purchase the shares for investment and not for resale or distribution.

 

5.04     Changes in Capital. (a) Subject to any required action by the shareholders of the Company, upon changes in the outstanding Common Stock by reason of a stock split, reverse stock split, stock dividend, combination or exchange of shares, merger, recapitalization, consolidation, corporate separation or division of the Company (including, but not limited to, a split-up, spin-off, split-off or distribution to Company stockholders other than a normal cash dividend), reorganization, reclassification, or increase or decrease in the number of shares of capital stock of the Company effected without receipt of full consideration therefor, or any other similar change affecting the Company’s capital structure, the Committee shall make appropriate adjustments, in its discretion, to, or substitute, as applicable, the number, class and kind of shares of stock available for Options under the Plan, outstanding Options and the Reserves, the maximum number of shares that a Participant may purchase per Offering Period, the Option Prices of outstanding Options and any other characteristics or terms of the Options or the Plan as the Committee shall determine are necessary or appropriate to reflect equitably the effects of such changes to the Participants; provided, however, that any fractional shares resulting from any such adjustment may be eliminated, if so determined by the Committee, by rounding to the next lower whole number of shares with appropriate payment for such fractional shares as shall be reasonably determined by the Committee. Notice of any such adjustment shall be given by the Committee to each Participant whose Option has been adjusted and such adjustment, whether or not such notice has been given, shall be effective and binding for all purposes of the Plan.

 

(b)     The existence of the Plan and any Options granted hereunder shall not affect in any way the right or power of the Board or the shareholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, any merger or consolidation of the Company or a Subsidiary, any issue of debt, preferred or prior preference stock ahead of or affecting Common Stock, the authorization or issuance of additional shares of Common Stock, the dissolution or liquidation of the Company or any Subsidiary, any sale or transfer of all or part of the Company’s or a Subsidiary’s assets or business or any other corporate act or proceeding.

 

(c)     The Board may at any time terminate an Offering Period then in progress and provide, in its discretion, that Participants’ then outstanding Account balances shall be used to purchase shares of Common Stock pursuant to Article III or returned to the applicable Participants.

 

(d)     In the event of a Change of Control, the Committee may, in its discretion:

 

(i)     permit each Participant to make a single sum payment with respect to his or her outstanding Option before the Exercise Date equal to the amount the Participant would have contributed as determined by the Committee for the payroll periods remaining until the Exercise Date, and provide for termination of the Offering Period then in progress and purchase of shares pursuant to Article III; or

 

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(ii)     provide for payment in cash to each Participant of the amount standing to his or her Account plus an amount equal to the highest value of the consideration to be received in connection with such transaction for one share of Common Stock, or, if higher, the highest Fair Market Value of the Common Stock during the 30 consecutive Trading Days immediately prior to the closing date or expiration date of such transaction, less the Option Price of the Participant’s Option (determined for all purposes of this Section 5.04(d)(ii) using such closing or termination date as the Exercise Date), multiplied by the number of full shares of Common Stock that could have been purchased for such Participant immediately prior to the Change of Control with the amount standing to his or her Account at the Option Price, and that all Options so paid shall terminate.

 

ARTICLE VI

WITHDRAWAL

 

6.01     General. By written notice to the Company or representative designated by the Company (including a third-party administrator designated by the Company), at any time prior to the last day of any particular Offering Period, a Participant may elect to withdraw all of the accumulated payroll deductions in his or her Account at such time. All of the accumulated payroll deductions credited to such withdrawing Participant’s Account shall be paid to such Participant promptly after receipt of his or her written notice of withdrawal. In addition, upon the Participant’s written notice of withdrawal, the Participant’s Option for the Offering Period shall be automatically terminated, and no further payroll deductions for the purchase of shares on behalf of such Participant shall be made for such Offering Period. If a Participant withdraws from an Offering Period, payroll deductions shall not resume at the beginning of the succeeding Offering Period unless the Participant re-enrolls in the manner and by the deadline prescribed by the Company.

 

6.02     Effect on Subsequent Participation. A Participant’s withdrawal from an Offering Period shall not have any effect upon his or her eligibility to participate in any similar plan that may hereafter be adopted by the Company or a Subsidiary or in succeeding Offering Periods that commence after the termination of the Offering Period from which the Participant withdraws.

 

6.03     Termination of Employment. Upon termination of employment as an Eligible Employee, for any reason, a Participant shall be deemed to have elected to withdraw from the Plan and the payroll deductions credited to such Participant’s Account during the Offering Period but not yet used to exercise the Option shall be returned to such Participant, or, in the case of a Participant’s death, the payroll deductions credited to such deceased Participant’s Account shall be paid to his or her Beneficiary or Beneficiaries, and the Participant’s Option shall be automatically terminated. A transfer of a Participant’s employment between or among the Company and any Designated Subsidiary or Designated Subsidiaries shall not be treated as a termination of employment for purposes of the Plan. Upon the termination of employment of a Participant with the Company or a Designated Subsidiary, all shares of Common Stock then credited to the Participant’s Account will be registered in his or her own name and distributed to him or her.

 

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ARTICLE VII

ADMINISTRATION

 

7.01     Generally. The Plan shall be administered by the Compensation Committee of the Board. Notwithstanding the foregoing, the Board, in its absolute discretion, may at any time and from time to time exercise any and all rights, duties and responsibilities of the Committee under the Plan, including, but not limited to, establishing procedures to be followed by the Committee, except with respect to any matters which under any applicable law, regulation or rule are required to be determined in the sole discretion of the Committee. If and to the extent that no Committee exists which has the authority to administer the Plan, the functions of the Committee shall be exercised by the Board. In addition, the Committee shall have discretionary authority to designate, from time to time, without approval of the Company’s stockholders, those Subsidiaries that shall be Designated Subsidiaries, the employees of which are eligible to participate in the Plan.

 

7.02     Authority of the Committee. The Committee shall have all authority that may be necessary or helpful to enable it to discharge its responsibilities with respect to the Plan. Without limiting the generality of the foregoing sentence or Section 7.01, subject to the express provisions of the Plan, the Committee shall have full and exclusive discretionary authority to interpret and construe any and all provisions of the Plan and any Agreements, determine eligibility to participate in the Plan, adopt rules and regulations for administering the Plan, adjudicate and determine all disputes arising under or in connection with the Plan, determine whether a particular item is included in “Compensation,” and make all other determinations deemed necessary or advisable for administering the Plan. Decisions, actions and determinations by the Committee with respect to the Plan or any Agreement shall be final, conclusive and binding on all parties. Except to the extent prohibited by applicable law or the rules of a stock exchange, the Committee may, in its discretion, from time to time, delegate all or any part of its responsibilities and powers under the Plan to any member or members of the management of the Company, and revoke any such delegation. Unless otherwise determined by the Committee, the Committee shall delegate its day-to-day administrative responsibilities under the Plan to the Plan Administrator.

 

7.03     Power to Adopt Sub-Plans or Varying Terms with Respect to Non-U.S. Employees. The Committee shall have the power, in its discretion, to adopt one or more sub-plans of the Plan as the Committee deems necessary or desirable to comply with the laws or regulations, tax policy, accounting principles or custom of foreign jurisdictions applicable to employees of a subsidiary business entity of the Company, provided that any such sub-plan shall not be within the scope of an “employee stock purchase plan” within the meaning of Section 423 of the Code. Any of the provisions of any such sub-plan may supersede the provisions of this Plan, other than Article V. Except as superseded by the provisions of a sub-plan, the provisions of this Plan shall govern such sub-plan. Alternatively, and in order to comply with the laws of a foreign jurisdiction, the Committee shall have the power, in its discretion, to grant Options in an offering to citizens or residents of a non-U.S. jurisdiction (without regard to whether they are also citizens of the United States or resident aliens) that provide terms which are less favorable than the terms of Options granted under the same offering to Eligible Employees resident in the United States.

 

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ARTICLE VIII

MISCELLANEOUS

 

8.01     Designation of Beneficiary. (a) A Participant may file with the Plan Administrator a written designation of a Beneficiary who is to receive any Common Stock and/or cash from the Participant’s Account in the event of such Participant’s death subsequent to an Exercise Date on which the Option is exercised but prior to delivery to such Participant of such Common Stock and cash. Unless a Participant’s written Beneficiary designation states otherwise, the designated Beneficiary shall also be entitled to receive any cash from the Participant’s Account in the event of such Participant’s death prior to exercise of his or her Option.

 

(b)     A Participant’s designation of Beneficiary may be changed by the Participant at any time by written notice to the Plan Administrator. In the event of the death of a Participant and in the absence of a valid Beneficiary designation under the Plan at the time of such Participant’s death, the Company shall deliver the shares and/or cash to which the deceased Participant was entitled under the Plan to the executor or administrator of the estate of such Participant. If no such executor or administrator has been appointed as can be determined by the Committee, the Company shall deliver such shares and/or cash to the spouse or to any one or more dependents or relatives of the Participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Committee may designate. Any such delivery or payment shall be a complete discharge of the obligations and liabilities of the Company, the Subsidiaries, the Committee and the Board under the Plan.

 

8.02     Nontransferability. Neither payroll deductions credited to the Participant’s Account nor any rights with regard to the exercise of an Option or to receive Common Stock under the Plan may be assigned, transferred, pledged, or otherwise disposed of in any way other than by will, the laws of descent and distribution, or as provided under Section 8.01. Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds from an Offering Period in accordance with Article VI.

 

8.03     Conditions Upon Issuance of Shares. If at any time the Committee shall determine, in its discretion, that the listing, registration and/or qualification of shares of Common Stock upon any securities exchange or under any state or Federal law, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the sale or purchase of shares of Common Stock hereunder, no Option may be exercised or paid in whole or in part unless and until such listing, registration, qualification, consent and/or approval shall have been effected or obtained, or otherwise provided for, free of any conditions not acceptable to the Committee.

 

(b)     If at any time counsel to the Company shall be of the opinion that any sale or delivery of shares of Common Stock pursuant to an Option is or may be in the circumstances unlawful, contravene the requirements of any stock exchange, or result in the imposition of excise taxes on the Company or any Subsidiary under the statutes, rules or regulations of any applicable jurisdiction, the Company shall have no obligation to make such sale or delivery, or to make any application or to effect or to maintain any qualification or registration under the Securities Act, or otherwise with respect to shares of Common Stock or Options and the right to exercise any Option shall be suspended until, in the opinion of such counsel, such sale or delivery shall be lawful or will not result in the imposition of excise taxes on the Company or any Subsidiary.

 

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(c)     The Committee, in its absolute discretion, may impose such restrictions on the ownership and transferability of the shares of Common Stock purchasable or otherwise receivable by any person under any Option as it deems appropriate. The certificates evidencing such shares may include any legend that the Committee deems appropriate to reflect any such restrictions.

 

8.04     Participants Bound by Plan. By accepting any benefit under the Plan, each Participant and each person claiming under or through such Participant shall be conclusively deemed to have indicated their acceptance and ratification of, and consent to, all of the terms and conditions of the Plan and any action taken under the Plan by the Committee, the Company or the Board, in any case in accordance with the terms and conditions of the Plan.

 

8.05     Use of Funds. All payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions.

 

8.06     Amendment or Termination. The Board may terminate, discontinue, amend or suspend the Plan at any time, with or without notice to Participants. No such termination or amendment of the Plan may materially adversely affect the existing rights of any Participant with respect to any outstanding Option previously granted to such Participant, without the consent of such Participant, except for any amendment or termination permitted by Section 5.04. In addition, no amendment of the Plan by the Board shall, without the approval of the shareholders of the Company, (i) increase the maximum number of shares that may be issued under the Plan or that any Participant may purchase under the Plan in any Offering Period, except pursuant to Section 5.04; (ii) change the class of employees eligible to receive Options under the Plan, except as provided by the Board pursuant to the last sentence of Section 7.01; or (iii) change the formula by which the Option Price is determined under the Plan.

 

8.07     No Employment Rights. The Plan does not, either directly or indirectly, create an independent right for the benefit of any employee or class of employees to purchase any shares of Common Stock under the Plan. In addition, the Plan does not create in any employee or class of employees any right with respect to continuation of employment by the Company or any Subsidiary, and the Plan shall not be deemed to interfere in any way with the Company’s or any Subsidiary’s employment at will relationship with the employee and/or interfere in any way with the Company’s or any Subsidiary’s right to terminate, or otherwise modify, an employee’s employment at any time or for any or no reason.

 

8.08     Indemnification. No current or previous member of the Board, or the Committee, nor any officer or employee of the Company acting on behalf of the Board, or the Committee, shall be personally liable for any action, determination, or interpretation taken or made in good faith with respect to the Plan. All such members of the Board or the Committee and each and every officer or employee of the Company acting on their behalf shall, to the extent permitted by law, be fully indemnified and protected by the Company in respect of any such action, determination or interpretation of the Plan. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such individuals may be entitled under the Company’s Certificate of Incorporation, or Bylaws, as a matter of law or otherwise.

 

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8.09     Construction of Plan. Whenever the context so requires, the masculine shall include the feminine and neuter, and the singular shall also include the plural, and conversely. The words “Article” and “Section” herein shall refer to provisions of the Plan, unless expressly indicated otherwise.

 

8.10     Term of Plan. The Plan shall continue in effect until its termination by the Board. The Board may suspend or terminate the Plan at any time, in its discretion.

 

8.11     Unfunded Status of Plan. The Plan shall be an unfunded plan. The Committee may authorize the creation of trusts or other arrangements to meet the obligations created under the Plan to deliver Common Stock or make payments, provided that the existence of such trusts or other arrangements is consistent with the unfunded status of the Plan.

 

8.12     Electronic Administration. The Company may, in its sole discretion, decide to deliver any documents related to participation in the Plan by electronic means or use an on-line or electronic system established and maintained by the Company or another third party designated by the Company for Plan participation. Any Plan requirement to provide a notice or a document in writing may be satisfied by electronic means to the extent permitted by the Company and applicable law.

 

8.13     Governing Law. The law of the State of Connecticut will govern all matters relating to the Plan except to the extent such law is superseded by the laws of the United States.

 

8.14     Compliance with Laws. The purchase and delivery of Common Stock pursuant to the terms of the Plan shall be conducted in compliance with all applicable stock exchange listing requirements and all applicable laws, the respective rules and regulations promulgated thereunder, and the policies and regulations of applicable securities regulatory authorities. If the Committee determines, in its discretion, that, in order to comply with any such listing requirements, statutes, regulations or rules, certain action is necessary in relation to the purchase and delivery of Common Stock in accordance with the Plan, no Common Stock will be purchased or delivered, unless such action shall have been completed in a manner satisfactory to the Committee. Once issued, the Common Stock may be freely transferred, assigned, pledged or otherwise subjected to lien, subject to the restrictions imposed by applicable law and the Company’s insider trading policy and any holding period policy, each as amended from time to time.

 

15EX-10.21

 Exhibit 10.21 

Execution Version 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made by and between Nine Energy Service, LLC, a Delaware
limited liability company (the “Company”), and Clinton Roeder (“Executive”). Nine Energy Service, Inc., a Delaware corporation (“Parent”), joins this Agreement for the limited
purposes of acknowledging and agreeing to the provisions of Sections 4.3 and 6.1(b)(iii) below. 
 W I T N E S S E T H 

WHEREAS, the Company desires to employ Executive on the terms and conditions, and for the consideration, hereinafter set forth and
Executive desires to be employed by the Company on such terms and conditions and for such consideration. 
 NOW, THEREFORE, for and
in consideration of the mutual promises, covenants and obligations contained herein, the Company and Executive agree as follows: 

ARTICLE 1 

DEFINITIONS 
 In
addition to the terms defined in the body of this Agreement, for purposes of this Agreement, the following capitalized words shall have the meanings indicated below: 

1.1    “Board” shall mean the Board of Directors of Parent. 

1.2    “Cause” shall mean a determination by the Board that Executive (a) has engaged in
gross negligence or willful misconduct in the performance of Executive’s duties with respect to the Company or any other member of the Company Group, (b) has breached any material provision of this Agreement or any other written agreement
among Executive and the Company or any other member of the Company Group, as such agreement(s) may be amended from time to time, or any corporate policy or code of conduct established by the Company or any other member of the Company Group as in
effect from time to time, (c) has willfully engaged in conduct that is injurious to the Company or any other member of the Company Group, or (d) has been indicted for or convicted of, pleaded no contest to or received adjudicated probation
or deferred adjudication with respect to (i) a felony or (ii) any crime or misdemeanor involving fraud, dishonesty or moral turpitude (or a crime or misdemeanor of similar import in a foreign jurisdiction), that results, or could
reasonably be expected to result, in material harm to the Company or any other member of the Company Group. 

1.3    “Code” shall mean the Internal Revenue Code of 1986, as amended. 

1.4    “Company Group” shall mean Parent and each of its direct and indirect subsidiaries
(including the Company), and any of such entities’ respective successors. 
 1.5    “Date of
Termination” shall mean the date Executive’s employment with the Company is considered to have terminated pursuant to Section 3.5. 

 1.6    “Good Reason” shall mean the occurrence of any
of the following events: 
 (a)    a material diminution in Executive’s Base Salary, other than as
part of a decrease of up to 10% of the base salaries for all of the Company’s executive officers; 

(b)    the relocation of the geographic location of Executive’s principal place of employment by more
than 75 miles from the location of Executive’s principal place of employment as of the Effective Date; or 

(c)    a material diminution in Executive’s authority, duties or responsibilities, including a removal
of Executive from the positions set forth in Section 2.2. 
 Notwithstanding the foregoing provisions of this Section 1.6 or any other provision
in this Agreement to the contrary, any assertion by Executive of a termination of employment for “Good Reason” shall not be effective unless all of the following requirements are satisfied: (i) the condition described in
Section 1.6(a), (b) or (c) giving rise to Executive’s termination of employment must have arisen without Executive’s consent; (ii) Executive must provide written notice to the Company of such condition in accordance with
Section 9.1 within 45 days of Executive’s first becoming aware of the existence of the condition; (iii) the condition specified in such notice must remain uncorrected for 30 days after receipt of such notice by the Company; and
(iv) the date of Executive’s termination of employment must occur within 60 days after the date that Executive provides the Company with written notice of such condition. 

1.7    “Notice of Termination” shall mean a written notice delivered by one party to the other
party indicating the termination provision in this Agreement relied upon for termination of Executive’s employment and the intended Date of Termination. 

1.8    “Parent Common Stock” shall mean the common stock, par value $0.01 per share, of Parent.

 1.9    “Release” means a release of all claims in a form acceptable to the Company, which
shall release each member of the Company Group and their respective affiliates, and the foregoing entities’ respective shareholders, members, partners, officers, managers, directors, fiduciaries, employees, representatives, agents and benefit
plans (and fiduciaries of such plans) from any and all claims, including any and all causes of action arising out of Executive’s employment with the Company and any other member of the Company Group or the termination of such employment, but
excluding all claims to severance payments Executive may have under Section 6.1(b) and any vested rights Executive may have under any benefit plans provided as part of Executive’s employment. 

1.10    “Release Expiration Date” means the date that is 21 days following the date upon which the
Company timely delivers to Executive the Release (which shall occur no later than seven days after the Date of Termination) or, in the event that such termination of Executive’s 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, as amended), the date that is 45 days following such delivery date. 

  
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 1.11    “Section 409A Payment
Date” shall mean the earlier of (a) the date of Executive’s death or (b) the date that is six months after the Date of Termination. 

1.12    “Stock Incentive Plan” shall mean the Nine Energy Service, Inc. 2011 Stock Incentive Plan,
as amended, restated or otherwise modified from time to time. 
 ARTICLE II 

EMPLOYMENT AND DUTIES 

2.1    Employment; Effective Date. The Company agrees to employ Executive, and Executive agrees to be
employed by the Company, pursuant to the terms of this Agreement beginning as of December 16, 2017 (the “Effective Date”) and continuing for the period of time set forth in Article III of this Agreement, subject to
the terms and conditions of this Agreement. 
 2.2    Positions. From and after the Effective Date, the
Company shall employ Executive and Executive shall serve in the position of Senior Vice President and Chief Financial Officer of the Company and Parent or in such other position or positions as the Board or the Company may designate from time to
time, which may include providing services to other members of the Company Group as the Board or the Company may reasonably assign from time to time. 

2.3    Duties and Services. Executive agrees to serve in the position(s) referred to in Section 2.2 and
to perform diligently and to the best of Executive’s abilities the duties and services appertaining to such position(s), as well as such additional duties and services appropriate to such position(s) that the Board or the Company may designate
from time to time. 
 2.4    Other Interests. Executive agrees, during the period of Executive’s
employment hereunder, to devote substantially all of Executive’s business time, energy, and Executive’s best efforts, to the business and affairs of the Company and the other members of the Company Group. Notwithstanding the foregoing, the
parties acknowledge and agree that Executive may (a) engage in and manage Executive’s passive personal investments, (b) engage in charitable and civic activities, and (c) serve on the board of directors or similar governing body
of any entity approved by the Board in writing (or a committee thereof); provided, however, that such activities set forth in clauses (a), (b) and (c) above shall only be permitted so long as such activities do not conflict with the
business and affairs of the Company or another member of the Company Group or interfere in any material respect with the performance of Executive’s duties hereunder. 

2.5    Duty of Loyalty. Executive shall make full disclosure to the Company of all business opportunities
pertaining to the Company Group’s business and shall not appropriate for Executive’s own benefit business opportunities concerning the subject matter of the fiduciary relationship. Executive acknowledges that Executive owes each member of
the Company Group a fiduciary duty of loyalty, fidelity and allegiance to act in the best interests of the Company Group. 

  
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 ARTICLE Ill 

TERM AND TERMINATION OF EMPLOYMENT 

3.1    Term. Unless sooner terminated pursuant to other provisions hereof, the Company agrees to employ
Executive for the period beginning on the Effective Date and ending on the third anniversary of the Effective Date (the “Initial Expiration Date”); provided, however, that beginning on the Initial Expiration Date, and on each
anniversary of the Initial Expiration Date thereafter, if Executive’s employment under this Agreement has not been terminated pursuant to Sections 3.2 or 3.3, then said term of employment shall automatically be extended for additional one-year periods (each, a “Renewal Term”) unless on or before the date that is 60 days prior to the first day of any such Renewal Term, either party gives written notice to the other party
that no such automatic extension shall occur, in which case the term of employment shall terminate as of the Initial Expiration Date or the end of the then-current Renewal Term, as applicable. 

3.2    Company’s Right to Terminate. Notwithstanding the provisions of Section 3.1,
Executive’s employment with the Company shall automatically terminate upon Executive’s death and the Company may terminate Executive’s employment under this Agreement at any time for any of the following reasons by providing Executive
with a Notice of Termination: 
 (a)    upon Executive being unable to perform Executive’s duties or
fulfill Executive’s obligations under this Agreement by reason of any physical or mental impairment (after accounting for reasonable accommodation, if applicable) for a continuous period of not less than three months, as reasonably determined
by the Company; 
 (b)    for Cause; or 

(c)    for any other reason whatsoever or for no reason at all, in the sole discretion of the Company. 

3.3    Executive’s Right to Terminate. Notwithstanding the provisions of Section 3.1, Executive
shall have the right to terminate Executive’s employment under this Agreement for Good Reason or for any other reason whatsoever or for no reason at all, in the sole discretion of Executive, by providing the Company with a Notice of
Termination. In the case of a termination of employment by Executive pursuant to this Section 3.3, the Date of Termination specified in the Notice of Termination shall not be less than 15 nor more than 90 days from the date such Notice of
Termination is given, and the Company may require a Date of Termination earlier than that specified in the Notice of Termination (and, if such earlier Date of Termination is so required, then it shall not change the basis for the termination of
Executive’s employment nor be construed or interpreted as a termination of employment pursuant to Section 3.1 or Section 3.2). 

3.4    Deemed Resignations. Unless otherwise agreed to in writing by Parent or the Company and Executive
prior to the termination of Executive’s employment, any termination of Executive’s employment shall constitute (a) an automatic resignation of Executive as an officer of the Company and each other member of the Company Group (as
applicable) and (b) an automatic resignation of Executive from the board of directors or similar governing body of any 

  
 4 

 
member of the Company Group, and from the board of directors or similar governing body of any corporation, limited liability entity or other entity in which any member of the Company Group holds
an equity interest and with respect to which board or similar governing body Executive serves as any member of the Company Group’s designee or other representative. 

3.5    Meaning of Termination of Employment. For all purposes of this Agreement, Executive’s employment
with the Company shall be considered to have terminated when Executive incurs a “separation from service” with the Company within the meaning of Section 409A(a)(2)(A)(i) of the Code and the applicable Treasury regulations and
interpretive guidance issued thereunder. 
 ARTICLE IV 

COMPENSATION AND BENEFITS 

4.1    Base Salary. During the term of this Agreement, Executive shall receive an annualized base salary of
$350,000 (the “Base Salary”), which amount (a) shall be reviewed at least annually by the Board (or a committee thereof) and (b) may be (but shall not be required to be) increased from time to time in the sole
discretion of the Board (or a committee thereof). Notwithstanding any provision of this Agreement, the Company may decrease Executive’s Base Salary by up to 10% as part of similar reductions of the base salaries applicable to all of the
Company’s or Parent’s executive officers. Executive’s Base Salary shall be paid in substantially equal installments in accordance with the Company’s standard policy regarding payment of compensation to executives as in effect
from time to time but no less frequently than monthly. 
 4.2    Bonuses. Executive shall be eligible to
participate in an annual cash incentive bonus program which will provide for a potential annual, calendar-year bonus based on criteria determined in the discretion of the Board (the “Annual Bonus”), with a target bonus at a
sum between 80% and 160% of the Base Salary if levels of performance are satisfied or exceeded, it being understood that the target bonus at planned or targeted levels of performance and the actual amount of each Annual Bonus shall be determined in
the discretion of the Board. The Company shall pay each Annual Bonus, if any, as soon as reasonably practicable after its receipt of audited financial statements for the applicable calendar year to which the bonus relates (the “Bonus
Year”), but in no event shall such Annual Bonus, if any, be paid later than March 31 of the calendar year that follows such Bonus Year; provided, however, that Executive will be entitled to receive payment of an Annual Bonus
for a Bonus Year only if Executive is employed by the Company on December 31 of the Bonus Year to which the Annual Bonus relates. 

4.3    Stock Purchase and Equity Compensation Awards. 

(a)    During the 10-day period beginning on the Effective Date,
Employee shall purchase $300,000 worth of shares of Parent Common Stock (based on the fair market value of Parent Common Stock as of the Effective Date, as determined by the Board in its sole discretion) at a cash purchase price of $300,000, on such
terms and conditions as shall be set forth in a subscription agreement between Parent and Employee. 

  
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 (b)    In consideration of Executive entering into this
Agreement and as an inducement for Executive to assume employment with the Company, as soon as reasonably practicable following Employee’s purchase of Parent Common Stock pursuant to Section 4.3(a), upon approval of the Board (or a
committee thereof), Parent shall grant the following awards to Executive pursuant to the Stock Incentive Plan: 

(i)    A one-time award of options to purchase 4,000 shares of
Parent Common Stock at an exercise price per share of Parent Common Stock equal to the fair market value of a share of Parent Common Stock on the applicable date of grant, which options shall (x) not be treated as incentive stock options within
the meaning of Section 422(b) of the Code, (y) except as otherwise expressly provided in Section 6.1(b)(iii), become vested in three substantially equal installments on each of the first three anniversaries of the date of grant so
long as Executive remains continuously employed by the Company or another member of the Company Group through each applicable vesting date; and (z) be subject to the terms and conditions of the Stock Incentive Plan and a Nonstatutory Stock
Option Agreement to be entered into between Parent and Executive; and 
 (ii)    A one-time restricted stock award of 4,000 shares of Parent Common Stock, which award shall (x) except as otherwise expressly provided in Section 6.1(b)(iii), become vested in three substantially equal
installments on each of the first three anniversaries of the date of grant so long as Executive remains continuously employed by the Company or another member of the Company Group through each applicable vesting date; and (y) be subject to the
terms and conditions of the Stock Incentive Plan and a Restricted Stock Agreement to be entered into between Parent and Executive. 

(c)    During Executive’s employment hereunder, beginning in the 2019 calendar year, Executive shall
be eligible to receive annual equity compensation awards pursuant to the Stock Incentive Plan or such other equity compensation plan offered by Parent or another member of the Company Group to similarly situated executives of the Company on such
terms and conditions as the Board (or a committee thereof) shall determine from time to time. All awards, if any, granted to Executive under the Stock Incentive Plan or any such other plan shall be subject to and governed by the terms and provisions
of the Stock Incentive Plan or such other plan as in effect from time to time and the award agreements evidencing such awards. Nothing in this Section 4.3(c) shall be construed to give Executive any rights to any amount or type of grant or
award except as approved by the Board (or a committee thereof) and set forth in a written or electronic award agreement provided to Executive with respect to such grant or award. 

4.4    Other Benefits. During Executive’s employment hereunder, and subject to the terms and conditions
of the applicable benefit plans and programs in effect from time to time, Executive shall be eligible to participate in all benefit plans and programs of the Company, including improvements or modifications of the same, which are now, or may
hereafter be, available to other senior executives of the Company. The Company shall not, however, by reason of this Section 4.4, be obligated to institute, maintain, or refrain from changing, amending, or discontinuing, any such benefit plan
or program, so long as such changes are similarly applicable to other senior executives generally. In addition, during Executive’s employment hereunder, the Company shall pay for a parking space at Executive’s principal place of employment
by the Company. 

  
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 4.5    Expenses. Subject to Section 9.14, the Company
shall reimburse Executive for all reasonable business expenses incurred by Executive in performing services hereunder, including all expenses of travel and living expenses while away from home on business or at the request of and in the service of
the Company; provided, in each case, that such expenses are incurred and accounted for in accordance with the policies and procedures established by the Company or Parent. Any such reimbursement of expenses shall be made by the Company upon
or as soon as practicable following receipt of supporting documentation reasonably satisfactory to the Company (but in any event not later than the close of Executive’s taxable year following the taxable year in which the expense is incurred by
Executive); provided, however, that, upon Executive’s termination of employment with the Company, in no event shall any additional reimbursement be made prior to the Section 409A Payment Date to the extent such payment delay is
required under section 409A(a)(2)(B)(i) of the Code. In no event shall any reimbursement be made to Executive for expenses incurred after the Date of Termination. 

4.6    Vacation and Sick Leave. During Executive’s employment hereunder, Executive shall be entitled to
(a) sick leave in accordance with the Company’s policies applicable to its senior executives from time to time and (b) up to four weeks paid vacation each calendar year (none of which may be carried forward to a succeeding year),
which shall be accrued, scheduled and taken in accordance with the Company’s vacation policy as in effect from time to time. 

ARTICLE V 
 PROTECTION
OF INFORMATION 
 5.1    Disclosure to and Property of the Company. For purposes of this
Article V, the term “the Company” shall include the Company and any other member of the Company Group, and any reference to “employment” or similar terms shall include a director or consulting relationship. All information,
trade secrets, designs, ideas, concepts, improvements, product developments, discoveries and inventions, whether patentable or not, that are conceived, made, developed, disclosed to or acquired by Executive, individually or in conjunction with
others, during the period of Executive’s employment by the Company (whether during business hours or otherwise and whether on the Company’s premises or otherwise) that relate to the Company’s business, trade secrets, products or
services (including all such information relating to corporate opportunities, strategies, business plans, product specifications, compositions, manufacturing and distribution methods and processes, research, financial and sales data, pricing terms,
evaluations, opinions, interpretations, acquisition prospects, the identity of customers or their requirements, the identity of key contacts within the customer’s organizations or within the organization of acquisition prospects, or production,
marketing and merchandising techniques, prospective names and marks) and all writings or materials of any type embodying any of such information, ideas, concepts, improvements, discoveries, inventions and other similar forms of expression
(collectively, “Confidential Information”) shall be disclosed to the Company and are and shall be the sole and exclusive property of the Company. For purposes of this Agreement, Confidential Information shall not include any
information that (i) is or becomes generally available to the public other than as a result of a disclosure or wrongful act of Executive or any of Executive’s agents; (ii) was available to Executive on a
non-confidential basis before its disclosure to 

  
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Executive; or (iii) becomes available to Executive on a non-confidential basis from a source other than the Company; provided that such source
is not known by Executive to be bound by a confidentiality agreement with, or other obligation with respect to confidentiality to, the Company. All documents, videotapes, written presentations, brochures, drawings, memoranda, notes, records, files,
correspondence, manuals, models, specifications, computer programs, E-mail, voice mail, electronic databases, maps, drawings, architectural renditions, models and all other writings or materials of any type
embodying any of such information, ideas, concepts, improvements, discoveries, inventions and other similar forms of expression are and shall be the sole and exclusive property of the Company. Executive agrees to perform all actions reasonably
requested by the Company or its affiliates to establish and confirm such exclusive ownership. Upon termination of Executive’s employment with the Company (and at any other time upon request by the Company), Executive promptly shall deliver all
documents, files (including electronically stored information) and other materials constituting or reflecting Confidential Information, and all copies thereof, to the Company; provided, that Executive shall be entitled to retain a copy of
those documents that constitute his personal address book and those documents provided to him by the Company that reflect his benefit plan elections. 

5.2    Disclosure to Executive. During Executive’s employment hereunder, the Company shall disclose to
Executive, and place Executive in a position to have access to or develop, Confidential Information. 
 5.3    No
Unauthorized Use or Disclosure. Executive agrees to preserve and protect the confidentiality of all Confidential Information. Executive agrees that Executive will not, at any time during or after Executive’s employment hereunder, make
any unauthorized disclosure of, Confidential Information, or make any use thereof, except, in each case, in the carrying out of Executive’s responsibilities hereunder. Executive shall use reasonable efforts to cause all persons or entities to
whom or which any Confidential Information shall be disclosed by Executive hereunder to preserve and protect the confidentiality of such Confidential Information. Executive shall have no obligation hereunder to keep confidential any Confidential
Information if and to the extent disclosure thereof is specifically required by law. Executive agrees that all Confidential Information (whether now or hereafter existing) conceived, discovered or made by Executive during the period of
Executive’s employment by the Company belongs to the Company (and not to Executive), and upon request by the Company for specified Confidential Information, Executive will promptly disclose such Confidential Information to the Company and
perform all actions reasonably requested by the Company to establish and confirm such exclusive ownership. As a result of Executive’s employment by the Company, Executive may also from time to time have access to, or knowledge of, confidential
information of third parties that provide such information to the Company with an expectation of confidence, including customers, suppliers, partners, joint venturers, and the like. Executive also agrees to preserve and protect the confidentiality
of all such third-party confidential information in accordance with the Company’s obligations relating thereto. 

5.4    Ownership by the Company. If, during Executive’s employment by the Company, Executive creates
any work of authorship fixed in any tangible medium of expression that is the subject matter of copyright (such as videotapes, written presentations, computer programs, E-mail, voice mail, electronic
databases, drawings, maps, architectural renditions, models, manuals, brochures, or the like) relating to the Company’s business, products, or 

  
 8 

 
services, whether such work is created solely by Executive or jointly with others (whether during business hours or otherwise and whether on the Company’s premises or otherwise), the Company
shall be deemed the author of such work if the work is prepared by Executive in the scope of Executive’s employment or, if the work relating to the Company’s business, products, or services is not prepared by Executive within the scope of
Executive’s employment but is specially ordered by the Company as a contribution to a collective work, as a part of a motion picture or other audiovisual work, as a translation, as a supplementary work, as a compilation, or as an instructional
text, then the work shall be considered to be work made for hire and the Company shall be the author of the work. If the work relating to the Company’s business, products, or services is neither prepared by Executive within the scope of
Executive’s employment nor a work specially ordered that is deemed to be a work made for hire during Executive’s employment by the Company, then Executive hereby agrees to assign, and by these presents does assign, to the Company, all of
Executive’s worldwide right, title, and interest in and to such work and all rights of copyright therein. 

5.5    Assistance by Executive. During the period of Executive’s employment by the Company, Executive
shall assist the Company and any Company nominee, at any time, in the protection of the Company’s worldwide right, title and interest in and to Confidential Information and the execution of all formal assignment documents requested by the
Company or its nominee(s) and the execution of all lawful oaths and applications for patents and registration of copyright in the United States and foreign countries. After Executive’s employment with the Company terminates, at the request from
time to time and expense of the Company, Executive shall assist the Company or its nominee(s) in the protection of the Company’s worldwide right, title and interest in and to Confidential Information and the execution of all formal assignment
documents requested by the Company or its nominee and the execution of all lawful oaths and applications for patents and registration of copyright in the United States and foreign countries provided, however, that such assistance from
Executive after Executive’s employment with the Company terminates shall be at the Company’s expense and shall not require Executive to expend unreasonable periods of time or unreasonably interfere with any obligations Executive may have
to provide services to other persons or entities. 
 5.6    Remedies. Executive acknowledges that money
damages would not be a sufficient remedy for any breach of this Article V by Executive, and the Company shall be entitled to enforce the provisions of this Article V by terminating payments then owing to Executive under this Agreement or
otherwise and to specific performance and injunctive relief as remedies for such breach or any threatened breach. Such remedies shall not be deemed the exclusive remedies for a breach of this Article V but shall be in addition to all remedies
available at law or in equity, including the recovery of damages from Executive and Executive’s agents. 

5.7    Permitted Disclosures. Notwithstanding anything in this Agreement to the contrary, nothing in this
Agreement shall prohibit or restrict Executive from lawfully (i) initiating communications directly with, cooperating with, providing information to, causing information to be provided to, or otherwise assisting in an investigation by any
governmental or regulatory agency, entity, or official(s) (collectively, “Governmental Authorities”) regarding a possible violation of any law; (ii) responding to any inquiry or legal process directed to Executive
individually from any such Governmental Authorities; (iii) testifying, participating or otherwise assisting in an action or proceeding by any such Governmental Authorities relating to 

  
 9 

 
a possible violation of law; or (iv) making any other disclosures that are protected under the whistleblower provisions of any applicable law. Additionally, pursuant to the federal Defend
Trade Secrets Act of 2016, Executive shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (i) is made (A) in confidence to a federal, state, or local
government official, either directly or indirectly, or to an attorney; and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made to Executive’s attorney in relation to a lawsuit for
retaliation against Executive for reporting a suspected violation of law; or (iii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Nor does this Agreement require Executive to
obtain prior authorization from the Company before engaging in any conduct described in this paragraph, or to notify the Company that Executive has engaged in any such conduct. 

ARTICLE VI 

EFFECT OF TERMINATION OF EMPLOYMENT ON COMPENSATION 

6.1    Effect of Termination of Employment on Compensation. 

(a)    If Executive’s employment hereunder shall terminate: (i) at the expiration of the term
provided in Section 3.1 after either (x) Executive has given the Company written notice of non-renewal, or (y) the Company has given Executive written notice of
non-renewal and provided Executive a Notice of Non-Compete Waiver pursuant to the terms of Section 7.1(c) below, (ii) for any reason described in
Section 3.2(a) or 3.2(b), (iii) pursuant to Executive’s resignation for other than Good Reason, or (iv) by reason of Executive’s death, then all compensation and all benefits to Executive hereunder shall terminate
contemporaneously with such termination of employment, except that Executive shall be entitled to (1) payment of all accrued and unpaid Base Salary earned to the Date of Termination as well as any Annual Bonus that has been earned pursuant to
Section 4.2 for the calendar year ending on or prior to the Date of Termination but remains unpaid as of the Date of Termination (which Annual Bonus, if any, shall be paid in a lump sum at the time provided for payment in Section 4.2),
(2) reimbursement for all incurred but unreimbursed expenses for which Executive is entitled to reimbursement in accordance with Section 4.5, and (3) benefits to which Executive is entitled under the terms of any applicable benefit
plan or program. 
 (b)    If Executive’s employment hereunder shall terminate: (i) at the
expiration of the term provided in Section 3.1 after the Company has given Executive written notice of non-renewal and not provided Executive a Notice of
Non-Compete Waiver pursuant to the terms of Section 7.1(c) below, (ii) pursuant to Executive’s resignation for Good Reason, or (iii) pursuant to a termination by the Company pursuant to
Section 3.2(c), then all compensation and all benefits to Executive hereunder shall terminate contemporaneously with such termination of employment, except that (A) Executive shall be entitled to receive the compensation and benefits
described in clauses (1) through (3) of Section 6.1(a), and (B) subject to (x) Executive’s execution and delivery to the Company by the Release Expiration Date (and
non-revocation within any time provided to do so) of the Release; and (y) Executive’s abiding by the terms of Articles V and VII, then Executive shall be entitled to receive the payments and
benefits set forth in Section 6.1(b)(i), (ii) and (iii) below. 

  
 10 

 (i)    The Company shall pay to Executive a total amount
equal to the sum of: (x) 12 months’ worth of Executive’s Base Salary for the year in which such termination occurs; and (y) Executive’s then-current target Annual Bonus, which for purposes of this clause (y), shall be deemed
to be not less than 100% of Executive’s Base Salary for the year in which such termination occurs (the sum of (x) and (y) being referred to as the “Severance Payment”). The Severance Payment will be divided
into 12 substantially equal installments. On the Company’s first regularly scheduled pay date that is on or after the date that is sixty (60) days after Date of Termination, the Company shall pay to Executive, without interest, a number of
such installments equal to the number of such installments that would have been paid during the period beginning on the Date of Termination and ending on the Company’s first regularly scheduled pay date that is on or after the date that is
sixty (60) days after the Date of Termination had the installments been paid on a monthly basis commencing on the Company’s first regularly scheduled pay date coincident with or next following the Date of Termination, and each of the
remaining installments shall be paid on a monthly basis thereafter; provided, however, that to the extent, if any, that the aggregate amount of the installments of the Severance Payment that would otherwise be paid pursuant to the preceding
provisions of this Section 6.1(b)(i) after March 15 of the calendar year following the calendar year in which the Date of Termination occurs (the “Applicable March 15”) exceeds the
maximum exemption amount under Treasury Regulation Section 1.409A-1(b)(9)(iii)(A), then such excess shall be paid to Executive in a lump sum on the Applicable March 15 (or the first business day
preceding the Applicable March 15 if the Applicable March 15 is not a business day) and the installments of the Severance Payment payable after the Applicable March 15 shall be reduced by such excess (beginning with the installment
first payable after the Applicable March 15 and continuing with the next succeeding installment until the aggregate reduction equals such excess). 

(ii)    During the portion, if any, of the 12-month period
following the Termination Date (the “Reimbursement Period”) that Executive elects to continue coverage for Executive and Executive’s spouse and eligible dependents, if any, under the Company’s group health plans
pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company shall promptly reimburse Executive on a monthly basis for the entire amount Executive pays to effect and continue such
coverage (the “Monthly Reimbursement Amount”). Each payment of the Monthly Reimbursement Amount shall be paid to Executive on the Company’s first regularly scheduled pay date in the calendar month immediately following
the calendar month in which Executive submits to the Company documentation of the applicable premium payment having been paid by Executive, which documentation shall be submitted by Executive to the Company within 60 days following the date on which
the applicable premium payment is paid. Executive shall be eligible to receive such reimbursement payments until the earliest of: (x) the last day of the Reimbursement Period; (y) the date Executive is no longer eligible to receive COBRA
continuation coverage; and (z) the date on which Executive becomes eligible to receive coverage under a group health plan sponsored by another employer (and any such eligibility shall 

  
 11 

 
be promptly reported to the Company by Executive); provided, however, that the election of COBRA continuation coverage and the payment of any premiums due with respect to such COBRA
continuation coverage shall remain Executive’s sole responsibility, and the Company shall not assume any obligation for payment of any such premiums relating to such COBRA continuation coverage. Notwithstanding the foregoing, if the provision
of the benefits described in this paragraph cannot be provided in the manner described above without penalty, tax or other adverse impact on the Company, then the Company and Executive shall negotiate in good faith to determine an alternative
manner in which the Company may provide substantially equivalent benefits to Executive without such adverse impact on the Company. 

(iii) With respect to the outstanding equity compensation awards granted to Executive pursuant to the Stock Incentive Plan
or any other equity compensation plan of Parent or another member of the Company Group prior to the Date of Termination (collectively, the “Outstanding Equity Awards”): (x) except as otherwise provided in this
Section 6.1(b)(iii), the Applicable Pro-Rated Portion (as defined below), if any, of each Outstanding Equity Award that remains unvested as of the Date of Termination shall become immediately fully vested
as of the Date of Termination; provided, however, that if any Outstanding Equity Award is subject to a performance requirement (other than continued employment or service by Executive), then no portion of any such Outstanding Equity Award
shall become immediately fully vested as of the Date of Termination and such Outstanding Equity Award shall remain subject to the terms and conditions set forth in the applicable award agreement(s) pursuant to which such Outstanding Equity Award was
granted; and (y) all outstanding stock options that have become vested as of the Date of Termination (determined after giving effect to clause (x) of this Section 6.1(b)(iii)) shall remain exercisable through the original
expiration dates of such stock options. As used herein, the “Applicable Pro-Rated Portion” means, with respect to an Outstanding Equity Award, the number of shares of Parent Common
Stock subject to such Outstanding Equity Award equal to the difference (if positive) between “A” and “B,” where: 

“A” equals the total number of shares of Parent Common Stock subject to such Outstanding Equity Award
multiplied by a fraction, the numerator of which is the total number of days during the period beginning on the date the vesting period applicable to such Outstanding Equity Award (the “Vesting Period”) commenced
pursuant to the applicable award agreement and ending on the Date of Termination and the denominator of which is the total number of days in the Vesting Period; and 

“B’’ equals the total number of shares of Parent Common Stock subject to such Outstanding Equity Award,
if any, that have become vested in accordance with the applicable award agreement prior to the Date of Termination. 

(c)    Notwithstanding any other provision in this Agreement, if Executive is a “disqualified
individual” (as defined in Section 280G(c) of the Code), and the payments and benefits provided for in this Agreement, together with any other payments and benefits that Executive has the right to receive from the Company or any other
member 

  
 12 

 
of the Company Group, would constitute a “parachute payment” (as defined in Section 280G(b)(2) of the Code), then the payments and benefits provided for in this Agreement shall be
either (i) reduced (but not below zero) so that the present value of such total amounts and benefits received by Executive from the Company and any other members of the Company Group will be one dollar ($1.00) less than three times
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 Executive shall be subject to the excise tax imposed by Section 4999 of the Code or
(ii) paid in full, whichever produces the better net after-tax position to Executive (taking into account any applicable excise tax under Section 4999 of the Code and any other applicable taxes). The
reduction of payments and benefits hereunder, if applicable, shall be made by reducing, first, payments or benefits to be paid in cash hereunder in the order in which such payment or benefit would be paid or provided (beginning with such payment or
benefit that would be made last in time and continuing, to the extent necessary, through to such payment or benefit that would be made first in time) and, then, reducing any benefit to be provided in-kind
hereunder in a similar order. The determination as to whether any such reduction in the amount of the payments and benefits provided hereunder is necessary shall be made by the Company in good faith. If a reduced payment or benefit is made or
provided and through error or otherwise that payment or benefit, when aggregated with other payments and benefits from the Company and any other members of the Company Group used in determining whether a “parachute payment” exists, exceeds
one dollar ($1.00) less than three times Executive’s base amount, then Executive shall immediately repay such excess to the Company upon notification that an overpayment has been made. Nothing in this Section 6.1(c) shall require the
Company or any other member of the Company Group to be responsible for, or have any liability or obligation with respect to, Executive’s excise tax liabilities under Section 4999 of the Code. 

ARTICLE VII 
 NON-COMPETITION AGREEMENT 
 7.1    Definitions. As used in this
Article VII, the following terms shall have the following meanings: 

(a)    “Business” means: (x) for the period of time in which Executive is
employed by any member of the Company Group, the provision and sale of the products and services provided by the Company Group during the course of Executive’s employment therewith and other products and services that are functionally
equivalent to the foregoing and (y) for the period of time within the Prohibited Period in which Executive is not employed by any member of the Company Group, the provision and sale of the products and services that were provided by the Company
Group during the period of time in which Executive was employed by such member of the Company Group and other products and services offered by the Company Group that are functionally equivalent to the foregoing. The Business includes for purposes of
both clauses (x) and (y): (1) the provision of equipment and services used in the completion of wells for the production of oil and natural gas (including cementing, wireline and coiled tubing services), and (2) the provision of
production enhancement and well workover services and the sale or rental of equipment offered by the Company Group relating thereto in connection with the production of oil and natural gas. 

  
 13 

 (b)    “Competing Business” means any
business, individual, partnership, firm, corporation or other entity (other than any member of the Company Group) which engages in, or is preparing to engage in, the Business in the Restricted Area. 

(c)    “Prohibited Period” means the period during which Executive is employed by
any member of the Company Group and a period of 12 months following the date that Executive is no longer employed by any member of the Company Group. Notwithstanding the foregoing, if: (i) Executive ceases to be employed by any member of the
Company Group as the result of, and following, the Company’s issuance of a notice of non-renewal pursuant to Section 3.1 above, and (ii) on or before the date that is 30 days prior to the date
that Executive is no longer employed by any member of the Company Group, the Company provides Executive with written notice of its intent to waive the provisions of Sections 7.2(a) and 7.2(c) below (such notice, a “Notice of Non-Compete Waiver”), then the Prohibited Period shall end on the date on which Executive is no longer employed by any member of the Company Group. 

(d)    “Restricted Area” means the geographic areas set forth on Appendix A
hereto and any other geographic area within a 100-mile radius of any other location where any member of the Company Group conducts or has material plans to conduct the Business and Executive has direct or
indirect responsibilities for, or Confidential Information about, such Business. 
 7.2    Non-Competition; Non-Solicitation. Executive and the Company agree that the non-competition and
non-solicitation provisions of this Article VII are a material inducement for the Company to employ Executive and that this Article VII is necessary to protect the Confidential Information of the
Company and the other members of the Company Group disclosed or entrusted to Executive by the Company Group or created or developed by Executive for the Company Group, and to protect the business goodwill of the Company Group. 

(a)    Subject to the exceptions set forth in Sections 7.2(b) and 7.2(d), Executive expressly
covenants and agrees that during the Prohibited Period (i) Executive will refrain from carrying on or engaging in, directly or indirectly, any Competing Business. Accordingly, Executive covenants and agrees that Executive will not, directly or
indirectly, own, manage, operate, join, become an employee of, partner in, owner or member of (or an independent contractor to), control or participate in, be connected with or otherwise be affiliated with any business, individual, partnership,
firm, corporation or other entity which constitutes a Competing Business in the Restricted Area, as Executive expressly agrees that each of the foregoing activities would represent carrying on or engaging in a business similar to (or the same as)
any member of the Company Group, as prohibited by this Section 7.2(a). 

  
 14 

 (b)    Notwithstanding the restrictions contained in
Section 7.2(a), Executive may own an aggregate of not more than 5% of the outstanding stock of any class of any corporation that is a Competing Business, if such stock is listed on a national securities exchange or regularly traded in the over-the-counter market by a member of a national securities exchange, without violating the provisions of Section 7.2(a), provided that neither Executive nor any
of Executive’s affiliates has the power, directly or indirectly, to control or direct the management or affairs of any such corporation and is not involved in the management of such corporation. 

(c)    Executive further expressly covenants and agrees that during the Prohibited Period, Executive will
not, directly or indirectly solicit, canvass, approach, encourage, entice or induce any customer or supplier of any member of the Company Group to cease or lessen such customer’s or supplier’s business with the Company Group. 

(d)    Notwithstanding the above-referenced limitations in Sections 7.2(a) and 7.2(c) above, such
limitations shall not apply in those portions of the Restricted Area located within the State of Oklahoma. Instead, Executive agrees that the restrictions on Executive’s activities within those portions of the Restricted Area located within the
State of Oklahoma (in addition to those restrictions set forth in Section 7.2(e) and Article V above) shall be as follows: during the Prohibited Period, Executive will not directly or indirectly solicit the sale of competitive goods,
services, or a combination of competitive goods and services from the established customers of the Company or any other member of the Company Group. 

(e)    Executive further expressly covenants and agrees that during the period that Executive is employed
by any member of the Company Group and a period of 12 months following the date that Executive is no longer employed by any member of the Company Group, Executive will not directly or indirectly solicit, canvass, approach, encourage, entice or
induce any employee of, or individual acting as a consultant to the Company Group to terminate his or her employment or engagement with any member of the Company Group. 

(f)    Before accepting employment with any other person or entity during the Prohibited Period, Executive
will inform such person or entity of the restrictions contained in this Article VII. 

7.3    Relief. Executive and the Company agree and acknowledge that the limitations as to time, geographical
area and scope of activity to be restrained as set forth in Section 7.2 are reasonable in all respects and do not impose any greater restraint than is necessary to protect the legitimate business interests of the Company Group. Executive and
the Company also acknowledge that money damages would not be sufficient remedy for any breach of this Article VII by Executive, and the Company or any other member of the Company Group shall be entitled to enforce the provisions of this
Article VII by terminating payments then owing to Executive under this Agreement or otherwise and to seek specific performance and injunctive relief as remedies for such breach or any threatened breach. Such remedies shall not be deemed the
exclusive remedies for a breach of this Article VII but shall be in addition to all remedies available at law or in equity, including the recovery of damages from Executive and Executive’s agents. 

  
 15 

 7.4    Reasonableness; Enforcement. Executive hereby represents
to the Company that Executive has read and understands, and agrees to be bound by, the terms of this Article VII. Executive acknowledges that the geographic scope and duration of the covenants contained in this Article VII are the result
of arm’s-length bargaining and are fair and reasonable in light of (a) the nature and wide geographic scope of the Company Group’s operations of the Business, which is conducted throughout the
Restricted Area (b) Executive’s level of control over and contact with the Company’s Group’s business in all jurisdictions in which it is conducted, and (c) the amount of Confidential Information to which Executive has or
will have access in connection with the performance of Executive’s duties hereunder. 

7.5    Reformation. The Company and Executive agree that the foregoing restrictions are reasonable in all
respects and that any breach of the covenants contained in this Article VII would cause irreparable injury to the Company Group. Executive understands that the foregoing restrictions may limit Executive’s ability to engage in certain
businesses anywhere in the Restricted Area during the Prohibited Period, but acknowledges that Executive will receive sufficient consideration from the Company to justify such restriction. Further, Executive acknowledges that Executive’s skills
are such that Executive can be gainfully employed in non-competitive employment, and that the agreement not to compete will not prevent Executive from earning a living. Nevertheless, if any of the aforesaid restrictions are found by a court of
competent jurisdiction to be unreasonable, or overly broad as to geographic area or time, or otherwise unenforceable, the parties intend for the restrictions herein set forth to be modified by the court making such determination so as to be
reasonable and enforceable and, as so modified, to be fully enforced. By agreeing to this contractual modification prospectively at this time, the Company and Executive intend to make this provision enforceable under the law or laws of all
applicable jurisdictions so that the entire agreement not to compete and this Agreement as prospectively modified shall remain in full force and effect and shall not be rendered void or illegal. Such modification shall not affect the payments made
to Executive under this Agreement. 
 ARTICLE VIII 

DISPUTE RESOLUTION 

8.1    Arbitration. All claims or disputes between Executive and the Company or any other member of the
Company Group (including claims relating to the validity, scope, and enforceability of this Article VIII and claims arising under any federal, state or local law regarding the terms and conditions of employment or prohibiting discrimination in
employment or governing the employment relationship in any way) shall be submitted for final and binding arbitration in Houston, Texas in accordance with the then-applicable rules for resolution of employment disputes of the American Arbitration
Association (“AAA”). The arbitration shall be conducted by a single arbitrator chosen pursuant to the then-applicable rules for resolution of employment disputes of the AAA, and the Company or another member of the Company
Group shall bear the costs of such arbitration. For the avoidance of doubt, the Company’s (or another member of the Company Group’s) assumption of costs referenced in the previous sentence applies to the costs of the AAA only, and does not
include attorney or expert fees or other fees or costs incurred by Executive. The arbitrator shall apply the substantive law of the State of Texas (excluding Texas
choice-of-law principles that might call for the application of some other state’s law), or federal law, or both as applicable to the claims asserted. The results
of the arbitration and the decision of the arbitrator will be final and binding on the parties and each 

  
 16 

 
party agrees and acknowledges that these results shall be enforceable in a court of law. No demand for arbitration may be made after the date when the institution of legal or equitable
proceedings based on such claim or dispute would be barred by the applicable statute(s) of limitations. In the event either party must resort to the judicial process to enforce the provisions of this Agreement, the award of an arbitrator or
equitable relief granted by an arbitrator, the party successfully seeking enforcement shall be entitled to recover from the other party all costs of such litigation, including reasonable attorneys’ fees and court costs. To the fullest extent
permitted by law, all proceedings conducted pursuant to this agreement to arbitrate, including any order, decision or award of the arbitrator, shall be kept confidential by the parties. Notwithstanding the foregoing, Executive and the Company
further acknowledge and agree that a court of competent jurisdiction residing in Houston, Texas shall have the power to maintain the status quo pending the arbitration of any dispute under this Article VIII, and this Article VIII shall not
require the arbitration of any application for emergency, temporary or preliminary injunctive relief (including temporary restraining orders) by either party pending arbitration, including any application for emergency, temporary or preliminary
injunctive relief for any claim arising out of Article V or Article VII of this Agreement; provided, however, that the remainder of any such dispute beyond the application for such emergency, temporary or preliminary injunctive
relief shall be subject to arbitration under this Article VIII. THE PARTIES ACKNOWLEDGE THAT, BY SIGNING THIS AGREEMENT, THEY ARE KNOWINGLY AND VOLUNTARILY WAIVING ANY RIGHTS THAT THEY MAY HAVE TO A JURY TRIAL OR, EXCEPT AS EXPRESSLY
PROVIDED HEREIN, A COURT TRIAL OF ANY CLAIM THAT IS SUBJECT TO THIS ARTICLE VIII. 
 ARTICLE IX 

MISCELLANEOUS 

9.1    Notices. For purposes of this Agreement, notices and all other communications provided for herein
shall be in writing and shall be deemed to have been duly given (a) when received if delivered personally or by courier, (b) five business days after deposit in the United States mail, if delivered by certified mail, postage prepaid,
return receipt requested or (c) one business day after deposit with a delivery service if delivered by a nationally recognized overnight delivery service with proof of receipt maintained as follows: 

 

			
	If to Executive, addressed to:	  	Executive’s home address on file with the Company.
		
	If to the Company, addressed to:	  	 Nine Energy Service, LLC
 16945 Northchase
Drive, Suite 1600
 Houston, TX 77060
 Attn: Chief Executive
Officer

 or to such other address as either party may furnish to the other in writing in accordance herewith, except that notices or
changes of address shall be effective only upon receipt. 

  
 17 

 9.2    Applicable Law; Submission to Jurisdiction. 

(a)    This Agreement is entered into under, and shall be governed for all purposes by, the laws of the
State of Texas, without regard to conflicts of laws principles thereof, 
 (b)    With respect to any
claim or dispute related to or arising under this Agreement, the parties hereby consent to the arbitration provisions of Article VIII and recognize and agree that should any resort to a court be necessary and permitted under this Agreement,
then they consent to the exclusive jurisdiction, forum and venue of the state and federal courts located in Harris County, Texas. Notwithstanding the foregoing, the Company may seek emergency, temporary or preliminary injunctive relief (including
temporary restraining orders) with respect to any breaches or threatened breaches by Executive of Article V or Article VII in any court of competent jurisdiction. 

9.3    No Waiver. No failure by either party hereto at any time to give notice of any breach by the other
party of, or to require compliance with, any condition or provision of this Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. 

9.4    Severability. If an arbitrator or a court of competent jurisdiction determines that any provision of
this Agreement (or part thereof) is invalid or unenforceable, then the invalidity or unenforceability of that provision (or part thereof) shall not affect the validity or enforceability of any other provision (or part thereof) of this Agreement, and
all other provisions (and parts thereof) shall remain in full force and effect. 
 9.5    Counterparts.
This Agreement may be executed in one or more counterparts (including portable document format (.pdf) and facsimile counterparts), each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement

 9.6    Withholding of Taxes and Other Employee Deductions. The Company may withhold from any benefits
and payments made pursuant to this Agreement all federal, state, city and other taxes and withholdings as may be required pursuant to any law or governmental regulation or ruling and all other customary deductions made with respect to the
Company’s employees generally. 
 9.7    Titles and Headings; Interpretation. The Section headings
have been inserted for purposes of convenience and shall not be used for interpretive purposes. 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. Any
and all Exhibits or Attachments referred to in this Agreement are, by such reference, incorporated herein and made a part hereof for all purposes. Unless the context requires otherwise, all references herein to an agreement, instrument or other
document shall be deemed to refer to such agreement, instrument or other document as amended, supplemented, modified and restated from time to time to the extent permitted by the provisions thereof. The word “or” as used herein is not
exclusive and is deemed to have the meaning “and/or.” All references to “dollars” or “$” in this Agreement refer to United States dollars. The words “herein”, “hereof”, “hereunder” and
other compounds of the word “here” shall refer to the entire Agreement, including all Exhibits attached hereto, and not to any particular provision hereof. Wherever the context so requires, the masculine gender includes the feminine or
neuter, 

  
 18 

 
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 this Agreement 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, this Agreement has been
reviewed by each of the parties hereto and 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 parties hereto. 

9.8    Successors. This Agreement shall be binding upon and inure to the benefit of the Company and any
successor of the Company. The Company may assign this Agreement, including to any affiliate or subsidiary or successor that succeeds to all or substantially all of the assets, business or operations of the Company, without the consent of Executive.
Except as provided in the preceding sentences, this Agreement, and the rights and obligations of the parties hereunder, are personal and neither this Agreement, nor any right, benefit or obligation of either party hereto, shall be subject to
voluntary or involuntary assignment, alienation or transfer, whether by operation of law or otherwise, without the prior written consent of the other party. 

9.9    Effect of Termination of Employment Relationship. The provisions of Articles V, VI, VI,;
and VIII and those provisions necessary to interpret, apply and enforce them, shall survive any termination of this Agreement and any termination of the employment relationship between Executive and the Company. 

9.10    Entire Agreement. Except as provided in any signed written agreement contemporaneously or hereafter
executed by the Company and Executive, this Agreement constitutes the entire agreement of the parties with regard to the subject matter hereof, and contains all the covenants, promises, representations, warranties and agreements between the parties
with respect to the employment of Executive by the Company. Without limiting the scope of the preceding sentence, all understandings and agreements preceding the date of execution of this Agreement and relating to the subject matter hereof are
hereby null and void and of no further force and effect. 
 9.11    Modification; Waiver. Any modification
to or waiver of this Agreement will be effective only if it is in writing and signed by the parties to this Agreement 

9.12    Third-Party Beneficiaries. Any member of the Company Group that is not a signatory to this Agreement
shall be a third-party beneficiary of Executive’s commitments, representations, covenants and promises set forth in Articles V, VII and VIII and shall be entitled to enforce such commitments, representations, covenants and promises as
if a party hereto. 

  
 19 

 9.13    Executive’s Representations and Warranties.
Executive represents and warrants to the Company that (a) Executive does not have any agreements or obligations with Executive’s prior employers or other third parties that will prohibit Executive from working for any member of the Company
Group or fulfilling Executive’s duties and obligations to the Company Group pursuant to this Agreement and (b) Executive has complied, and will comply, with all duties imposed on Executive with respect to Executive’s former employers
and all other third parties. Executive expressly promises that Executive will not: (i) introduce any confidential, proprietary or other similar information belonging to any prior employer to the premises or computer systems of any member of the
Company Group; or (ii) use or disclose any legally protected information belonging to any former employer or other third party in the course of Executive’s employment hereunder. 

9.14    Section 409A 

(a)    Notwithstanding any provision of this Agreement to the contrary, all provisions of this Agreement
are intended to comply with Section 409A of the Code and the applicable Treasury regulations and administrative guidance issued thereunder (collectively, “Section 409A”) or an applicable
exemption therefrom and shall be construed and administered in accordance with such intent. Any payments under this Agreement 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 this Agreement shall be treated as a separate payment. 

(b)    To the extent that any right to reimbursement of expenses or payment of any benefit in-kind under this Agreement constitutes nonqualified deferred compensation (within the meaning of Section 409A), (i) any such expense reimbursement shall be made by the Company no later than the last day
of the taxable year following the taxable year in which such expense was incurred by Executive, (ii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for
another benefit, and (iii) the amount of expenses eligible for reimbursement or in-kind benefits provided during any taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided in any other taxable year; provided, that the foregoing clause shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of
the Code solely because such expenses are subject to a limit related to the period in which the arrangement is in effect. 

(c)    Notwithstanding any provision in this Agreement to the contrary, if any payment or benefit provided
for herein would be subject to additional taxes and interest under Section 409A if Executive’s receipt of such payment or benefit is not delayed until the Section 409A Payment Date, then such payment or benefit shall not be provided
to Executive (or 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 this Agreement are exempt from, or
compliant with, Section 409A and in no event shall any member of the Company Group be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by Executive on account of non-compliance with Section 409A. 

  
 20 

 9.15    Clawback. To the extent required by applicable law or
any applicable securities exchange listing standards, or as otherwise determined by the Board (or a committee thereof), amounts paid or payable under this Agreement shall be subject to the provisions of any applicable clawback policies or procedures
adopted by Parent, the Company or any other member of the Company Group, which clawback policies or procedures may provide for forfeiture and/or recoupment of amounts paid or payable under this Agreement. Notwithstanding any provision of this
Agreement to the contrary, Parent, the Company and each other member of the Company Group reserves the right, without the consent of Executive, to adopt any such clawback policies and procedures, including such policies and procedures applicable to
this Agreement with retroactive effect, 
 [Signature page follows.] 

  
 21 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of this 20th day of November, 2017. 
  

			
	NINE ENERGY SERVICE, LLC
		
	By:	 	/s/ Ann G. Fox
		 	Ann G. Fox
		 	President and Chief Executive Officer

  

			
	For the limited purpose of acknowledging and agreeing to Sections 4.3 and 6.1(b)(iii):
	
	NINE ENERGY SERVICE, INC.
		
	By:	 	/s/ Ann G. Fox
		 	Ann G. Fox
		 	President and Chief Executive Officer

  

	
	CLINTON ROEDER
	
	/s/ Clinton Roeder

 SIGNATURE PAGE TO 

EMPLOYMENT AGREEMENT 

 APPENDIX A 

RESTRICTED AREA 
 The following States:
Alaska, Colorado, Montana, New Mexico, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, West Virginia and Wyoming 
 The following parishes within the State
of Louisiana: Acadia, Allen, Ascension, Assumption, Avoyelles, Beauregard, Bienville, Bossier, Caddo, Calcasieu, Caldwell, Cameron, Catahoula, Claiborne, Concordia, DeSoto, East Baton Rouge, East Carroll, East Feliciana, Evangeline, Franklin, Grant,
Iberia, Iberville, Jackson, Jefferson, Jefferson Davis, Lafayette, Lafourche, LaSalle, Lincoln, Livingston, Madison, Morehouse, Natchitoches, Orleans, Ouachita, Plaquemines, Pointe Coupee, Rapides, Red River, Richland, Sabine, St. Bernard, St.
Charles, St. Helena, St. James, St. John, St. Landry, St. Martin, St. Mary, St. Tammany, Tangipahoa, Tensas, Terrebonne, Union, Vermilion, Vernon, Washington, Webster, West Baton Rouge, West Carroll, West Feliciana, and Winn.

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