Document:

Exhibit

Exhibit 10.24

UNION BANKSHARES CORPORATION

EXECUTIVE SEVERANCE PLAN

SUMMARY PLAN DESCRIPTION
AND PLAN DOCUMENT

This Summary Plan Description sets forth and describes the benefits under the Union Bankshares Corporation Executive Severance Plan (the “Plan”). The terms of the Plan and the Summary Plan Description of the Plan are combined in this single document. Union Bankshares Corporation has established the Plan to provide benefits to certain executives in the event of their termination of employment under certain circumstances as described in the Plan. The Plan was originally adopted by the Board of Directors of Union Bankshares Corporation (the “Board”) on December 10, 2015 and became effective on January 1, 2016.  This amendment and restatement of the Plan was adopted on September 22, 2017 by the Board and is effective January 1, 2018.

1.    Purpose. 

The purpose of the Plan is to assist the Company (as defined below) in recruiting and retaining executives and to provide financial assistance and additional protection to eligible executives of the Company whose employment is terminated under certain circumstances. The Plan is not intended to provide benefits for executives who voluntarily terminate employment (except in limited circumstances when the termination is for Good Reason in connection with a Change in Control, as described below) or for executives whose employment is terminated because of reasons of retirement, death or disability.

2.    Plan Administrator.

(a)The Company is the Plan Administrator.  The Company also has been designated as the Plan’s agent for service of legal process. The Company EIN No. is 54-1598552. The Plan number is 511. The Plan Year is the calendar year.

(b)The Company may adopt such rules, regulations, and bylaws and make such decisions as it deems necessary or desirable for the proper administration of the Plan.  The Company has sole discretionary authority to resolve disputed questions of fact, to determine eligibility for benefits, to interpret and apply the provisions of the Plan, to resolve any inconsistencies and ambiguities, and to make the final decisions about payment of Plan benefits. The determinations and interpretations of the Company shall be conclusive and binding upon all persons affected, and there shall be no appeal from any ruling by the Company that is within its authority, except as provided pursuant to Section 7 of the Plan. When making a determination or calculation, the Company shall be entitled to rely upon information furnished by its employees and agents.  The Company may delegate any of its duties, rights or responsibilities as Plan Administrator under the Plan to an individual or a committee of its choosing and at its discretion.    

3.    Definitions.

In addition to the words and phrases defined in other sections of the Plan, the following words and phrases shall be defined as follows for purposes of the Plan:

(a)Cause.  Only the following shall constitute Cause as it relates to a termination of employment covered under the Plan and as determined by the Company in its discretion:

		
	(i)
	willful failure to perform any of the duties and responsibilities required of a position (other than by reason of disability) or willful failure to follow reasonable instructions or policies of the Company, after being advised in writing of such failure and being given a reasonable opportunity and period (as determined by the Company in its discretion) to remedy such failure; 

		
	(ii)
	breach of fiduciary duties owed to the Company;

		
	(iii)
	conviction of or entering of a guilty plea or a plea of no contest with respect to a felony or a crime of moral turpitude or commission of an act of misappropriation or embezzlement of funds or property of the Company;

		
	(iv)
	the breach of a material term of the Plan or violation in any material respect of any code or standard of conduct generally applicable to employees of the Company, after being advised in writing of such breach or violation and being given a reasonable opportunity and period (as determined by the Company in its discretion) to remedy such breach or violation;

		
	(v)
	fraud or dishonesty with respect to Company; or

		
	(vi)
	the willful engaging in conduct that, if it became known by any regulatory or governmental agency or the public, is reasonably likely to result in material injury to the Company, monetarily or otherwise.

		
	(b)
	Change in Control.  For purposes of the Plan, a “Change in Control” means:

		
	(i)
	The acquisition by any Person of beneficial ownership of twenty percent (20%) or more of the then outstanding shares of common stock of the Company, provided that an acquisition directly from Union Bankshares Corporation (excluding an acquisition by virtue of the exercise of a conversion privilege) shall not constitute a Change in Control; or

		
	(ii)
	Individuals who constitute the Board on January 1, 2018 (the “Incumbent Board”) cease during a twelve-month period to constitute a majority of the Board, provided that any director whose nomination was approved by a vote of at least two-thirds of the directors then comprising the Incumbent Board will be considered a member of the Incumbent Board, but excluding any such individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the members of the Board; or

		
	(iii)
	Consummation by Union Bankshares Corporation of a reorganization, merger, share exchange or consolidation (a “Reorganization”), provided that a Reorganization will not constitute a Change in Control if, upon consummation of the Reorganization, each of the following conditions is satisfied;

		
	(A)
	More than fifty percent (50%) of the then outstanding shares of common stock of the corporation resulting from the Reorganization is beneficially owned by all or substantially all of the former shareholders of Union Bankshares Corporation in substantially the same proportions as their ownership existed in Union Bankshares Corporation immediately prior to the Reorganization; and

		
	(B)
	No person beneficially owns twenty percent (20%) or more of either (1) the then outstanding shares of common stock of the corporation resulting from the Reorganization or (2) the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors; and

		
	(C)
	At least a majority of the members of the board of directors of the corporation resulting from the Reorganization were members of the Incumbent Board at the time of the execution of the initial agreement providing for the Reorganization.

		
	(iv)
	Approval by the shareholders of Union Bankshares Corporation of a complete liquidation or dissolution of Union Bankshares Corporation, or the consummation of a sale or other disposition of all or substantially all of the assets of Union Bankshares Corporation.

		
	(v)
	For purposes of this Plan, “Person” means any individual, entity or group (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934 (the “Exchange Act”), other than an employee benefit plan (or related trust) sponsored or maintained by Union Bankshares Corporation or any affiliated company, and “beneficial ownership” has the meaning given the term in Rule 13d-3 under the Exchange Act.

		
	(c)
	Code. The Internal Revenue Code of 1986, as amended.

(d)Company.   Union Bankshares Corporation and any of its affiliates, unless the context clearly indicates otherwise.  

(e)Effective Date.   January 1, 2018 or, if later, the date at which an Executive is listed on Schedule A to the Plan.
  
(f)ERISA. The Employee Retirement Income Security Act of 1974.

(g)Executive.   A person employed by the Company in a key or critical position as recommended by the Chief Executive Officer, approved by the Compensation Committee of the Board and listed on Schedule A to the Plan, provided that such Schedule A may be amended from time to time by the Compensation Committee of the Board to add or remove positions in accordance with Section 8(a) of the Plan.

(h)Good Reason.  For purposes of the Plan, “Good Reason” means the following conditions arising without the consent of the Executive:

		
	(i)
	A material diminution in the Executive’s base compensation;

		
	(ii)
	A material diminution in the Executive’s authority, duties or responsibilities;

		
	(iii)
	A material diminution in the change in the geographic location at which the Executive must perform services; or

		
	(iv)
	Any other action or inaction of the Company that constitutes a material breach of the terms or provisions of the Plan.

Notwithstanding the above, and without limitation, “Good Reason” shall not include any resignation by the Executive where Cause for the Executive’s termination by the Company exists. The Executive must give the Company notice of any event or condition that would constitute “Good Reason” within ninety (90) days of the event or condition which would constitute “Good Reason,” and upon the receipt of such notice the Company shall have thirty (30) days to remedy such event or condition. If such event or condition is not remedied within such thirty (30)-day period, any termination of employment by the Executive for “Good Reason” must occur within thirty (30) days after the period for remedying such condition or event has expired. 

(i)Participant.   An Executive who is eligible to receive Severance Pay under Section 4 of the Plan.  

(j)Severance Pay.   Payments made to a Participant under Section 5 of the Plan for periods beyond termination of employment.

4.    Eligibility.

The Plan makes Severance Pay available only to Executives whose employment with the Company is terminated solely due to one of the below circumstances set forth in Sections 4(a) or 4(b) and subject to the exceptions set forth in Section 4(c) below and any other limitations set forth in the Plan, as determined by the Plan Administrator in its sole discretion.  For the avoidance of doubt, an Executive whose employment is terminated under Section 4(b) will not be treated as having a termination under Section 4(a).

(a)Termination Without Cause Not in Connection With a Change in Control.  If the Executive’s employment is terminated by the Company at any time without Cause, the Company will provide written notice to the Executive at least thirty (30) days prior to the termination date.  In the event of termination without Cause not in connection with a Change in Control, the Executive shall become a Participant and shall be entitled to the Severance Pay specified in Sections 5(a)(i) and 5(b) of the Plan, subject to the satisfaction of the requirements set forth in Section 4(d) and any other Plan limitations.  

(b)Termination Without Cause or For Good Reason in Connection With a Change in Control.  Employment is terminated in connection with a Change in Control only if such termination occurs within a three (3) year period following the Change in Control. If the Executive’s employment is terminated by the Company without Cause or by the Executive for Good Reason within three (3) years following a Change in Control, the Executive shall become a Participant and shall be entitled to the Severance Pay specified in Section 5(a)(ii)(A) or (B) and Section 5(b) of the Plan, subject to the satisfaction of the requirements set forth in Section 4(d) and any other Plan limitations. 

(c)No Eligibility.  Notwithstanding the above, Severance Pay will not be paid under the Plan to an Executive: (i) who is involuntarily terminated following the Executive’s refusal of an offer of reassignment with the Company to another job or position that is reasonably comparable to the Executive’s prior position, as determined by the Company, at a location that is within thirty-five (35) miles of the Executive’s prior position; or (ii) for whom the Company has grounds to terminate for Cause or who is involuntarily terminated by the Company for Cause; or (iii) who voluntarily terminates employment for any reason (other than Good Reason in connection with a Change in Control as set forth in Section 4(b) above); or (iv) whose employment is terminated due to his retirement, death or disability; or (v) who is a party to an agreement with the Company or is eligible to participate in another plan of the Company which provides severance or severance type benefits upon a termination of employment.  In no event shall an Executive be entitled to duplicate severance benefits in connection with a termination of employment.  For example, an Executive who is eligible to receive benefits under the Plan will not be eligible to receive severance pay under the Union Bankshares Corporation Severance Pay Plan as in effect as of January 1, 2018 and as amended from time to time.  The obligation of the Company to make payments under the Plan shall be expressly conditioned upon the Executive not receiving duplicate benefits.  

(d)Release of Claims and Non-Solicitation Agreement.  Notwithstanding any other provision of the Plan, Severance Pay provided under Sections 5(a)(i) or 5(a)(ii), as applicable, and 5(b) below will only be paid if the Executive signs, submits and does not revoke a Release of Claims & Non-Solicitation Agreement in the form provided by the Company (the “Agreement”).  The Agreement will be provided no later than the date of termination of employment and must be signed and returned within forty-five (45) days.  If the Agreement does not become irrevocable before the sixtieth (60th) day following termination of employment, then no Severance Pay provided under Sections 5(a) and 5(b) shall be paid and any rights thereto shall be forfeited. 

5.    Severance Pay.

A Participant whose employment terminates under circumstances described in Sections 4(a) or 4(b) of the Plan shall be entitled to receive the following Severance Pay, subject to the eligibility requirements in Section 4 (including the release requirement in Section 4(d)).  
 
(a)Lump Sum Severance Payment.  The Participant will be paid in one lump sum within sixty (60) days of the Participant’s termination of employment an amount as defined below under either Section 5(a)(i) or 5(a)(ii)(A) or (B), less applicable withholdings.  Under no circumstances will a Participant be entitled to Severance Pay under both Sections 5(a)(i) and 5(a)(ii) or under both Section 5(a)(ii)(A) and (B). 

		
	(i)
	For a Participant whose employment terminates under Section 4(a), an amount equal to (A) the Participant’s annualized base salary in effect on the date of termination, plus (B) the product of the annual incentive bonus paid or payable to the Participant, including by reason of deferral, for the most recently completed year (or, if an incentive payment was not paid because an incentive plan was not yet in place, an amount approved by the Compensation Committee of the Board) and a fraction, the numerator of which is the number of days in the current year through the date of termination of employment and the denominator of which is 365, plus (C) twelve (12) times the monthly rate of the Company subsidy for health and dental plans for active employees in effect for the Participant on the date of termination.  

		
	(ii)
	For a Participant whose employment terminates under Section 4(b), an amount equal to: 

		
	(A)
	for a Participant listed as Tier 1 on Schedule A, 

		
	1.
	the product of two times the Participant’s (y) annualized base salary as in effect on the date of termination plus (z) highest annual incentive bonus paid or payable, including by reason of deferral, for the two most recently completed years; plus  

		
	2.
	the product of twenty-four (24) times the monthly rate of the Company subsidy for health and dental plans for active employees in effect for the Participant on the date of termination; and 

		
	(B)
	for a Participant listed as Tier 2 on Schedule A, 

		
	1.
	the product of one times the Participant’s (y) annualized base salary in effect on the date of termination plus (z) the highest annual incentive bonus paid or payable, including by reason of deferral, for the two most recently completed years; plus

		
	2.
	the product of twelve (12) times the monthly rate of the Company subsidy for health and dental plans for active employees in effect for the Participant on the date of termination.

 
(b)Outplacement Services.  The Company will provide outplacement services for the Participant for twelve (12) months following termination of employment.  Services will be provided according to Company guidelines in existence at the time of termination.

(c)Non-Cash Incentives.  Any unvested equity awards, including but not limited to restricted stock awards, performance share awards, and stock options, previously awarded to a Participant will be subject to the terms and conditions as set forth in any award agreement or to the extent no award agreement exists then the terms of the stock incentive plan under which the awards were granted.
 
(d)Accrued Obligations.  Any earned but unpaid obligations under any other benefit plan of the Company, to the extent payable thereunder, will be paid at the time and the form provided thereunder.  For the avoidance of any doubt, the Company will pay to the Participant any earned, but unpaid annual incentive compensation for any year ending prior to the year in which the termination of employment occurs, payable in accordance with the terms of, and at the time provided under, the applicable annual incentive compensation plan, but the Company will not pay any annual incentive compensation for the year during which the termination of employment occurs unless the applicable annual incentive compensation plan specifically provides that such a bonus will be paid.

(e)Withholding.  Normal federal and state withholding taxes will apply to all payments.

6.    Section 409A.

(a)It is intended that the payments and the provision of all benefits under the Plan are to be exempt from the requirements of Section 409A of the Code and the Plan shall be interpreted in a manner as to comply with such exemption.

(b)To the extent any payment or provision of any benefit is considered to be deferred compensation subject to Section 409A of the Code, such payment or benefit shall be provided and paid in a manner, and at such time and in such form, as complies with the applicable requirements of Section 409A of the Code to avoid the unfavorable tax consequences provided for therein for non-compliance.  If any payment or provision of any benefit under the Plan to an Participant is considered to be a substitute for any payment or benefit subject to Section 409A of the Code previously provided for under another agreement or plan of the Company, then such payment or benefit shall be provided and paid in a manner, and at such time and in such form, as provided under such prior plan or agreement, to the extent required under Section 409A of the Code. 

(c)If the Participant is deemed on the date of separation of service with the Company to be a “specified employee,” as defined in Section 409A(a)(2)(B) of the Code, then any payment or provision of any benefit under this Agreement that is considered deferred compensation subject to Section 409A of the Code shall not be made or provided prior to the earlier of (A) the expiration of the six-month period measured from the date of separation of service or (B) the date of the Participant’s death.

(d)To the extent any payment or provision of any benefit under this Agreement is considered deferred compensation subject to Section 409A of the Code with regard to the payment of such payment or benefit, a “termination of employment” shall have the same meaning as “separation of service,” as that phrase is defined in Section 409A of the Code (taking into account all rules and presumptions provided for in the Section 409A regulations).

(e)If under the Plan, an amount is to be paid in two or more installments, for purposes of Section 409A of the Code, each installment shall be treated as a separate payment.  When, if ever, a payment under the Plan specifies a payment period with reference to a number of days (e.g., “payment shall be made within sixty (60) days following termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company.

(f)Neither the Company, the Company’s affiliates, nor any of the Company’s officers, directors, employees, agents or representatives shall be liable to the Participant if any amounts payable pursuant to this Plan or otherwise become subject to any additional tax, interest or penalties as a result of the application of Section 409A of the Code. 

7.    Claims. 

a.All claims for benefits should be submitted in writing to the Plan Administrator within ninety (90) days of the date as of which the Participant’s employment was terminated.  The Plan Administrator will conduct a full and fair review of the claim for benefits. The Plan Administrator will deliver to the Participant or beneficiary (the “Claimant”) a written decision on that claim within ninety (90) days after the receipt of the request for review, except if there are special circumstances (such as the need to hold a hearing) requiring an extension of time for processing, the ninety (90)-day period may be extended up to one hundred eighty (180) days.  If the Plan Administrator determines that an extension of time for processing is required, the Plan Administrator will furnish written or electronic notice of the extension to the Claimant before the end of the initial ninety (90)-day period, which notice will describe the special circumstances necessitating the additional time and date the Plan Administrator expects to render its decision on the claim. In the event of the denial of a claim, the Plan Administrator will provide notice to the Claimant including the specific reasons for the denial, specific references to the Plan provision(s) upon which the denial is based, description of any information or material information necessary for the Claimant to perfect his claim and reason why such material or information is necessary, and the time limits applicable to such procedures, including a statement of the Claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse determination on review.  
b.Any Claimant whose claim is denied shall have the right to request, in writing directed to the Plan Administrator, the review of such denial within sixty (60) days of receipt of written or electronic notice of denial.  The Claimant will be provided upon request and free of charge reasonable access to and copies of all documents, records and other information relevant to the Claimant’s claim for benefits. Any review requested by the Claimant of a determination by the Plan Administrator shall take into account all comments, documents, records and other information submitted by the Claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.  The Plan Administrator will deliver to the Participant or beneficiary a written decision on that claim within 60 days after the receipt of the request for review, except if there are special circumstances (such as the need to hold a hearing) requiring an extension of time for processing, the sixty (60)-day period may be extended up to one hundred twenty (120) days. Any such notice of the extension will be provided to the Claimant before the end of the initial sixty (60)-day period and will describe the special circumstances necessitating the additional time and the date by which the Plan Administrator expects to render its decision on review.  The decision on review shall include specific reasons for the decision, written in a manner calculated to be understood by the Claimant and with specific references to the relevant Plan provisions on which the decision is based.  The decision on review also will include a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the Claimant’s claim for benefits and a statement of the Claimant’s right to bring an action under Section 502(a) of ERISA.  A document, record or other information is “relevant” to a claim if it was relied upon in making the benefit determination, was submitted, considered, or generated in the course of making the benefit determination, without regard to whether such document, record, or other information was relied upon in making the benefit determination, and demonstrates compliance with the administrative processes and safeguards required in making the benefit determination.  In no event shall a Claimant be entitled to challenge a decision of the Plan Administrator, in court or in any other administrative proceeding until the claim procedures provided herein are exhausted.  Any legal action challenging a final denial of benefits must be brought within one hundred eighty (180) days of the issuance of the final denial decision.
8.    Miscellaneous.

(a)The Company, with the approval of its Board (or the Compensation Committee of the Board, in accordance with the Company’s bylaws), has the right to amend, modify or terminate the Plan, including the attached Schedule A, at any time if it determines that it is necessary or desirable to do so.  No amendment, modification or termination of the Plan shall adversely affect Severance Pay payments that have been paid or have begun to be paid.

(b)The Plan is a welfare benefit plan the funds for which are provided by the Company as benefits are paid. There is no separate trust or assets to pay benefits. Executives do not contribute to the benefits under the Plan. Executives do not have a vested interest in their benefits under the Plan. 

(c)Except as required by applicable law, Participants may not assign to anyone else their rights to receive any payment under the Plan and any attempt to do so shall be null and void and of no effect, and a Participant’s Plan benefit is not subject to attachment or other legal or equitable process.

(d)Nothing in the Plan shall be construed as creating any contract of employment between the Company and any Participant, including any contract for employment for any specific duration, nor shall it limit the right of the Company to terminate any Participant’s employment at any time for any reason whatsoever.

(e)Whenever the context so admits, the use of the masculine gender shall be deemed to include the feminine and vice versa, either gender shall be deemed to include the neuter and vice versa; and the use of the singular shall be deemed to include the plural and vice versa. Section headings are used herein for convenience of reference only and shall not affect the meaning of any provision of the Plan.

(f)The Plan will be construed in accordance with and governed by the laws of the Commonwealth of Virginia to the extent such laws are not otherwise superseded by the laws of the United States.

(g)If any provision of the Plan shall be held illegal or invalid for any reason, said illegality shall not affect the remaining provisions of the Plan, but the Plan shall be constructed and enforced as if said illegal and invalid provision had never been included herein.

9.    Participant’s Rights. 

(a)As a Participant in the Plan, you are entitled to certain rights and protections under ERISA. ERISA provides that all Participants shall be entitled to:

		
	(i)
	Examine, without charge, at the Plan Administrator’s office and at other specified locations, all documents governing the Plan, and a copy of the latest annual report (Form 5500 series), if required to be filed by the Plan, with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration.

		
	(ii)
	Obtain, upon written request to the Plan Administrator, copies of all Plan documents, and copies of the latest annual report (Form 5500 Series), if any. The Plan Administrator may make a reasonable charge for the copies.

(b)In addition to creating rights for Participants ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate your Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest of you and other Plan Participants and beneficiaries. No one, including your employer, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your rights under ERISA. If your claim for a welfare benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.

(c)Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request materials from the Plan and do not receive them within 30 days, you may file suit in a federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court. In addition, if you disagree with the Plan’s decision or lack thereof concerning the qualified status of a domestic relations order or a medical child support order, you may file suit in federal court. If it should happen that Plan fiduciaries misuse the Plan’s money, or if you are discriminated against for asserting your right, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.

(d)If you have any questions about the Plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest Area Office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.  

Approved by the Board of Directors of Union Bankshares Corporation on September 22, 2017 and the Compensation Committee of the Board on June 12, 2017.

SCHEDULE A

The following list represents all key or critical positions recommended by the Chief Executive Officer and approved by the Compensation Committee of the Board of Directors of the Company as covered under the Plan.

Tier 1 – Section 16 Officers
Bank President
Chief Financial Officer
Chief Information Officer
Chief Retail Officer
Commercial Banking Group Executive
Chief Human Resource Officer
Chief Risk Officer
Chief Audit Executive

Tier 2
Wealth Management Group President
Union Mortgage Group President
General Counsel
Chief Investment Officer
Regional President
Director Finance & Treasurer
Corporate Controller
Chief Marketing Officer
Chief Credit Officer
Regional Retail Banking Executive
Branch Delivery Channel Director
Managing Director ODCM

1Exhibit

Exhibit 10.1

SETTLEMENT AGREEMENT AND GENERAL RELEASE

This Settlement Agreement and General Release (this “Agreement”) is made as of the date set forth on the signature page hereto, by and between Northern Oil and Gas, Inc. (the “Company”) and Michael L. Reger (“Plaintiff”).  The Company and Plaintiff are referred to collectively as the “Parties,” and each of the Company and Plaintiff is referred to as a “Party.”
WHEREAS, on August 16, 2016, Plaintiff commenced a lawsuit against the Company in the District Court of the State of Minnesota, County of Hennepin (the “Court”), styled Michael L. Reger v. Northern Oil and Gas, Inc., Case No. 27-cv-16-12311 (the “Lawsuit”);
WHEREAS, the Parties desire fully to settle all claims that were asserted in the Lawsuit, and to set forth in this Agreement their mutual understanding and agreement with respect to their settlement;
NOW, THEREFORE, in view of the foregoing, for and in consideration of the mutual promises, covenants, representations, agreements, and commitments set forth herein, as well as other good and valuable consideration, the receipt and sufficiency of which are hereby conclusively acknowledged, the Parties agree as follows:
1.Dismissal.  Plaintiff shall provide the Company with an executed Stipulation of Dismissal with Prejudice, dismissing all claims made by Plaintiff against the Company in the Lawsuit, with the Parties to pay their own costs and attorneys’ fees, prior to the end of the Revocation Period (as defined in Paragraph 8).  The Company shall promptly file the Stipulation of Dismissal with Prejudice after the Effective Date (as defined in Paragraph 8), but not prior to issuing the stock and making the payment provided in Paragraphs 2(a) and 2(b) below.  The Parties agree to execute such court pleadings, assignments, or other documents as are necessary to effectuate the discontinuance of the Lawsuit.

2.Consideration.  The Company agrees:

		
	(a)
	To issue Plaintiff three million (3,000,000) shares of the Company’s common stock (“Company Common Stock”) within three (3) business days after the Effective Date (as defined in Paragraph 8), which shares upon issuance shall be freely tradable without restriction (such issuance, the “Issuance”);

		
	(b)
	To pay Plaintiff the gross sum of seven hundred and fifty thousand dollars ($750,000), less withholding and deductions, within three (3) business days after the Effective Date (such payment, the “Payment”); and

		
	(c)
	To grant Plaintiff, upon the Effective Date, the title of the Company’s “Chairman Emeritus” until the first to occur of (i) the four year anniversary of the Effective Date, (ii) a “change of control” of the Company (as defined under the indenture for the Company’s currently outstanding 8% senior notes, due 2020 (provided that, for purposes of this provision only, if any such “change of control” occurs prior to the first anniversary of the Effective Date, then such “change of control” shall be deemed to have occurred on the first anniversary of the Effective Date)), or (iii) the Company no longer has any securities registered on a national securities exchange.  Plaintiff expressly agrees that the title of Chairman Emeritus will provide Plaintiff with no ongoing duties or powers.  The Company will list Plaintiff with his Chairman Emeritus title along with the directors on the Company’s website in font no smaller than the names and titles of directors, at the top of the list of directors, with a biographical description in the form attached hereto as Exhibit C.

The payments and benefits provided for under Section 2 of this Agreement will be in full and complete satisfaction of any and all amounts, payments and/or benefits due to Plaintiff by the Company and would not be paid absent Plaintiff’s agreement and execution of this Agreement and the fulfillment of the promises contained herein.
3.Released Parties.  The term “Released Parties” as used in this Agreement means Northern Oil and Gas, Inc., its predecessors, parents, subsidiaries, affiliates, joint venture partners, and divisions, past or present, and any successors of Northern Oil and Gas, Inc. (collectively “NOG”); the present and past officers, directors, managers, committees, members, employees, shareholders, and assigns of NOG; any company providing insurance to NOG in the present or past (except to the extent specifically carved out below); the present and past employee benefit plans sponsored or maintained by NOG (other than multiemployer plans) and the present and past fiduciaries of such plans; the attorneys and other advisors for NOG; and anyone who has acted on behalf of NOG. 

4.General Release and Waiver By Plaintiff.  In consideration of the promises and payments provided for in this Agreement, Plaintiff releases, waives and forever discharges, for himself and his dependents, successors, assigns, heirs, executors and administrators (and his and their legal representatives of every kind) the Released Parties from any and all claims, causes of action, in law or in equity, as well as costs, claims, liabilities, rights, demands, damages, losses, expenses and attorneys’ fees, of any nature whatsoever, known or unknown, foreseen or unforeseen, fixed or contingent, suspected or unsuspected, liquidated or unliquidated, of any nature whatsoever, up to the Effective Date, relating in any way to the subject matter of the Lawsuit or claims that may have been brought in the Lawsuit, and/or Plaintiff’s employment at the Company, and/or Northern Oil & Gas, Inc., including, but not limited to:

(a)All claims arising out of or relating to Plaintiff’s employment with NOG or the termination of that employment, including but not limited to any and all rights to payment under any employment agreement between the Company and Plaintiff including the Employment Agreement (as defined below);

(b)All claims arising out of or relating to the statements, actions, or omissions of the Released Parties;

(c)All statutory claims and/or claims based upon race, age, gender, national origin, color, disability, religion, sexual orientation, veteran status, marital status, or any violation of any equal employment opportunity law, ordinance, rule, regulation, or order, including, but not limited to, 42 U.S.C. § 1981; Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Americans with Disabilities Act; the Age Discrimination in Employment Act of 1967, as amended; the Older Worker’s Benefit Protection Act of 1990; the Equal Pay Act; Executive Orders 11246 and 11141; § 503 of the Rehabilitation Act of 1973; the Employee Retirement Income Security Act of 1974, as amended (“ERISA”); the National Labor Relations Act; the Sarbanes-Oxley Act; the Family and Medical Leave Act of 1993; the Occupational Safety and Health Act; the Fair Credit Reporting Act; the Immigration Reform Control Act; the Worker Adjustment and Retraining Notification Act; the Worker Adjustment and Retraining Notification Act, the Family Medical Leave Act, the Lilly Ledbetter Fair Pay Act of 2009, the Genetic Information Nondiscrimination Act, the Fair Credit Reporting Act, the Minnesota Human Rights Act, the Minnesota wage-hour and wage-payment laws, Minnesota’s Worker’s Compensation Act and non-retaliation statutes; or any other federal, state, or local laws or regulations regarding employment discrimination, termination of employment, or employee benefits, including worker’s compensation laws; 

(d)All common law claims, including but not limited to alleged wrongful discharge; breach of contract; breach of implied contract; failure to keep any promise; breach of a covenant of good faith and fair dealing; breach of fiduciary duty; estoppel; Plaintiff’s activities, if any, as a “whistleblower”; defamation; infliction of emotional distress; fraud; misrepresentation; negligence; harassment; retaliation or reprisal; constructive discharge; assault; battery; false imprisonment; invasion of privacy; interference with contractual or business relationships; any other wrongful employment practices; and violation of any other principle of common law;

(e)All claims for compensation of any kind, including without limitation, bonuses, commissions, expense reimbursements, and vacation pay;

(f)All claims for back pay, front pay, reinstatement, other equitable relief, compensatory damages, damages for alleged personal injury, liquidated damages, and punitive damages; 

(g)Any claim that a past unlawful decision has or has had a continuing effect on Plaintiff’s compensation; and

(h)All claims for attorneys’ fees, costs, and interest.

In addition, but subject to the other provisions of this Agreement, including the subsequent provisions of this Paragraph 4, Plaintiff releases, waives and forever discharges NOG; the present and past officers, directors, managers, committees, members, employees, and assigns of NOG; any company providing insurance to NOG in the present or past (except to the extent specifically carved out below); the present and past employee benefit plans sponsored or maintained by NOG (other than multiemployer plans) and the present and past fiduciaries of such plans; the attorneys and other advisors for NOG; and anyone who has acted on behalf of NOG, for himself and his dependents, successors, assigns, heirs, executors and administrators (and his and their legal representatives of every kind) from any and all claims, causes of action, in law or in equity, as well as costs, claims, liabilities, rights, demands, damages, losses, expenses and attorneys’ fees, of any nature whatsoever, known or unknown, foreseen or unforeseen, fixed or contingent, suspected or unsuspected, liquidated or unliquidated, of any nature whatsoever, up to the Effective Date.

However, Plaintiff does not release (i) any rights to enforce this Agreement; (ii) any claims he is precluded from waiving by operation of law; (iii) his rights to indemnification and payment of defense costs, including advances, under applicable law, any indemnification agreement with the Company, or the organizational documents of the Company (or any successor) except to the extent relating to the Lawsuit; (iv) his rights under any insurance policy maintained by the Company (or any successor) except to the extent relating to the Lawsuit; or (v) any claims that may arise after the Effective Date.  Furthermore, nothing in this Agreement prevents Plaintiff from filing a claim against the Company or any of the Released Parties with the U.S. Equal Employment Opportunity Commission, National Labor Relations Board or other federal, state, or local agency or participating in any such agency’s investigation of the Company or any of the Released Parties.  Plaintiff understands and agrees that he is waiving the right to any monetary recovery in connection with any complaint or charge that he may file with an administrative agency, except with respect to any monetary recovery under the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Sarbanes-Oxley Act of 2002; provided, however, Plaintiff hereby confirms that he has no current basis or plan to make any such complaint or charge.
5.Release by the Company. The Company releases, waives and forever discharges Plaintiff from any and all claims of any nature whatsoever, known or unknown, suspected or unsuspected, which it now has or claims to have, or which it at any time heretofore had or claimed to have, against Plaintiff related to his prior employment at the Company; provided, however, the Company specifically does not release (i) any rights to enforce this Agreement; (ii) claims by or on behalf of the Company against Plaintiff encompassed within and/or arising out of the allegations in a shareholder demand letter pending as of the date of the execution of this Agreement; (iii) any claims it is precluded from waiving by operation of law; or (iv) any claims that may arise after the Company’s execution of this Agreement.  In the event Plaintiff is sued by or on behalf of the Company for claims encompassed within the allegations set forth in a shareholder demand letter pending as of the date of the execution of this Agreement, the release given by Plaintiff in Section 4 shall not include crossclaims or third-party claims against others for contribution or indemnity on the claims on which he is sued by or on behalf of the Company, nor shall it limit the defenses Plaintiff may assert in such suit.  Notwithstanding the foregoing exception, Plaintiff acknowledges and affirms that his release of claims in Section 4 includes and he hereby releases any claim, counterclaim, crossclaim or third-party claim related to the Lawsuit.

6.Advice to Consult with an Attorney.  Plaintiff understands and acknowledges that he is hereby being advised by the Company to consult with an attorney prior to signing this Agreement and in fact consulted with an attorney.  Plaintiff acknowledges and agrees that his decision whether to sign this Agreement is his own voluntary decision made with full knowledge that the Company has advised him to consult with an attorney.

7.Period to Consider this Agreement.  Plaintiff acknowledges that he understands that he has twenty-one (21) days from the date he receives this Agreement, to consider whether to sign.  If Plaintiff signs this Agreement before the end of the 21-day period, it will be his voluntary decision to do so because he decided that he did not need any additional time to decide whether to sign.  Plaintiff agrees that any changes made to this Agreement before he signs it, whether material or immaterial, will not restart the 21-day period.

8.To Revoke this Agreement.  Plaintiff understands that he may revoke this Agreement at any time within fifteen (15) days after signing it not counting the day upon which he signs it (“Revocation Period”).  This Agreement will not become effective or enforceable unless and until the latter of (i) the Revocation Period has expired without Plaintiff revoking it, and (ii) Plaintiff has provided the Company with the executed Stipulation of Dismissal with Prejudice as provided in Paragraph 1 (the “Effective Date”).

9.Procedure for Accepting and Revoking this Agreement.  To accept the terms of this Agreement, Plaintiff must deliver the Agreement, after he has signed and dated it, to the Company by hand or by mail within the twenty-one (21) day period for consideration.  To revoke his acceptance of this Agreement, Plaintiff must deliver a written, signed statement that he revokes his acceptance to the Company by hand or by mail within the fifteen (15) day revocation period.  All deliveries must be made to the Company at the following address:

Attn: Board of Directors
Northern Oil and Gas, Inc.
601 Carlson Pkwy
Suite 990
Minnetonka, Minnesota 55305

with a copy to:

Attn: Michael Gray, Esq.
Jones Day
77 West Wacker
Suite 3500
Chicago, Illinois 60601

If Plaintiff chooses to deliver his acceptance or the revocation of acceptance by mail, it must be received by the Company within the period stated above and properly addressed to the Company at the address stated above.
10.Discharge of Obligations.  The Issuance, the Payment and any other consideration and other terms offered in this Agreement is accepted by Plaintiff as fully settling any and all of Plaintiff’s claims or potential claims against the Company and the other Released Parties.  Plaintiff expressly agrees that Plaintiff is not entitled to and shall not receive any further payment, benefit, or other recovery of any kind from the Company or the other Released Parties, including, but not limited to, any payments under any prior employment, benefit or shareholder agreements, including but not limited to the Employment Agreement.  Plaintiff further agrees that the Company and each of the other Released Parties shall have no further monetary or other obligation of any kind to Plaintiff, including any obligation for costs, expenses and attorneys’ fees incurred by or on behalf of Plaintiff. 

11.Acknowledgments and Affirmations.  

(a)Plaintiff affirms that other than the Lawsuit he has not filed, caused to be filed, or presently is a party to any claim against the Company.

(b)No other person or entity has any interest or assignment in claims or causes of action, if any, Plaintiff may have against any of the Released Parties and which Plaintiff now releases in their entirety.

(c)Plaintiff affirms that he has been paid and/or has received (and/or will through this Agreement receive) all compensation, wages, bonuses, commissions, and/or benefits which are due and payable as of the date Plaintiff signs this Agreement.  Plaintiff affirms that he was granted any leave to which he was entitled under the Family and Medical Leave Act or related state or local leave or disability accommodation laws.    

(d)Plaintiff also affirms that he has not divulged any proprietary or confidential information of the Company and will continue to maintain the confidentiality of such information consistent with Section 12 below. 

(e)Plaintiff agrees that he shall not in the future initiate an application for employment with the Company because of, among other things, irreconcilable differences with the Company unless Plaintiff is invited to apply by the Board.

(f)Plaintiff represents and covenants that, immediately following the Issuance, he will beneficially own less than 5% of the Company Common Stock. 

12.Confidential Information. Plaintiff agrees that the obligations set forth in Section 7 Confidential Information and the definition of “Confidential Information and Trade Secrets” provided in Section 9 Definitions of that certain Amended and Restated Employment Agreement (the “Employment Agreement”), dated as of October 7, 2015, by and between Plaintiff and the Company, are expressly incorporated into this Agreement and remain in full force and effect.  Nothing in the document is intended to interfere with or discourage a good faith disclosure to any governmental entity related to a suspected violation of the law.  Plaintiff cannot and will not be held criminally or civilly liable under any federal or state trade secret law for disclosing otherwise protected trade secrets and/or confidential or proprietary information as long as the disclosure is made in (i) confidence to a federal, state, or local government official, directly or indirectly, or to an attorney and solely for the purpose of reporting or investigating a suspected violation of law; or (ii) a complaint or other document filed in a lawsuit or other proceeding, as long as such filing is made under seal.  Additionally, the Company will not retaliate against Plaintiff in any way for a disclosure made in accordance with the law. In the event a disclosure is made, and Plaintiff files a lawsuit against the Company alleging that the Company retaliated against him because of his disclosure, Plaintiff may disclose the relevant trade secret or confidential information to his attorney and may use the same in the court proceeding only if (i) Plaintiff ensures that any court filing that includes the trade secret or confidential information at issue is made under seal; and (ii) he does not otherwise disclose the trade secret or confidential information except as required by court order.

13.Non-Competition and Non-Solicitation of Customers, Clients and Employees. Plaintiff agrees that Plaintiff will not directly or indirectly, as an employee, officer, director, shareholder, proprietor, agent, partner, recruiter, consultant, independent contractor or in any other individual or representative capacity engage in any of the Restricted Activities in any area within which the Company conducts or is pursuing Company Business, unless such has been previously approved in writing by the Board of Directors of the Company (the “Board”) after the Plaintiff has provided the Board with full written disclosure of the relevant facts.

(a)“Company Business” means the acquisition, exploration, and development of properties containing oil and natural gas resources for purposes of oil and natural gas production.    

(b)“Restricted Activities” means and includes the following:

i.Until the Effective Date, conducting, engaging or participating, directly or indirectly, as the employee, agent, independent contractor, consultant, advisor, partner, shareholder, investor, lender, underwriter or in any other similar capacity, in any business that competes with any part of the Company Business;

ii.Until August 15, 2019, recruiting, hiring, and/or attempting to recruit or hire, directly or by assisting others, any other employee, temporary or permanent contract, part time or full time of the Company or otherwise soliciting any other employee of the Company for any purposes that would directly or indirectly interfere or conflict with the other employee’s employment by the Company. For purposes of this covenant any “other employee” shall refer to employees who provide services to the Company and who are still actively employed by the Company at the time of the attempted recruiting or hiring, or were so employed at any time within six (6) months prior to the time of such attempted recruiting or hiring; and

iii.Using, disclosing, publishing, copying, distributing or communicating any Confidential Information and Trade Secrets to, or for the use or benefit of the Plaintiff or any other person or entity other than the Company.

(c)The Company and Plaintiff acknowledge that the provisions contained in this Section 13 shall not prevent Plaintiff or Plaintiff’s affiliates from owning solely as an investment, directly or indirectly, securities of any publicly traded corporation engaged in the Company Business if Plaintiff and Plaintiff’s affiliates do not, directly or indirectly, beneficially own in the aggregate more than 5% of all classes of outstanding equity securities of such entity.  

(d)The Plaintiff and the Company agree that the limitations as to time and scope of activity to be restrained are reasonable and do not impose a greater restraint on the Plaintiff than is necessary to protect the property rights and other business interests of the Company.

(e)The Parties agree that prior non-competition and non-solicitation provisions in other agreements executed by Plaintiff have been limited in this Agreement.  

14.Confidentiality of Agreement.  Plaintiff agrees that he will keep the negotiation of this Agreement and all terms of this Agreement strictly confidential, including, but not limited to, the payments and other consideration set forth in Paragraph 2, except that Plaintiff may make disclosures to his immediate family, attorneys, and/or accountants/financial advisors if necessary, or as otherwise required by law.  Plaintiff further agrees that if any of the terms of this Agreement are disclosed to a third party as permitted under this paragraph, he will direct that person(s) not to disclose the terms of this Agreement to any other person and shall be responsible for any such disclosure by such third party.  The Company agrees that the Board and its executive officers (as defined in Section 16 of the Securities Exchange Act of 1934, as amended) will keep the negotiation of this Agreement and all terms of this Agreement strictly confidential, except that the Parties agree that the Company will file this Agreement as an attachment to its form 8-K (the “8-K”), substantially in a form attached hereto as Exhibit A, and may make any other disclosure that the Board reasonably determines is necessary or proper for the Company’s business purposes, including, but not limited to, issuing a press release (the “Press Release”), substantially in a form attached hereto as Exhibit B.  The 8-K and Press Release will be made public by 7:00 a.m. Central time on the business day following both Parties’ execution and delivery (including by electronic means) of this Agreement.  Except as specifically provided for herein, including, but not limited to filing the 8-K and issuing the Press Release, the Plaintiff and the Board and the Company’s executive officers will be prohibited from any further public statements or disclosures regarding the Lawsuit or this Agreement, unless legally required to do so by state, federal, or local laws.  Plaintiff, the Board, and the Company’s executive officers may confirm the facts as stated in the 8-K and/or the Press Release.

15.Non-Disparagement.  Plaintiff, for the duration of four years, hereby covenants and agrees, to the fullest extent permitted by law, that he will not disparage, or encourage or induce others to disparage the Released Parties.  The Company agrees that the Board, Erik Romslo, Thomas Stoelk, and Brandon Elliott will not disparage, or encourage or induce others to disparage Plaintiff.  For purposes of this Agreement, “disparage” shall mean any derogatory or untrue statement specifically about the Released Parties (in the case of Plaintiff) or Plaintiff (in the case of the Board, Erik Romslo, Thomas Stoelk, and Brandon Elliott), whether written or oral, to any person or entity (including, without limitation, the press and/or media, employees, partners, vendors, or customers), (i) that would reasonably be expected to adversely affect the reputation, business or good will of the Released Parties (in the case of Plaintiff) or Plaintiff (in the case of the Board, Erik Romslo, Thomas Stoelk, and Brandon Elliott) or (ii) that concerns the Lawsuit or this Agreement.  Nothing in this section shall prohibit (a) any communications by Plaintiff, the Board, Erik Romslo, Thomas Stoelk, and/or Brandon Elliott to others within their respective organizations, (b) truthful testimony pursuant to a validly issued subpoena, (c) communications as otherwise may be required by law, or (d) statements and communications by the Released Parties in connection with a proxy contest initiated by or involving Plaintiff.

16.Cooperation. In the event that the Company is involved in any investigation, litigation, arbitration or administrative proceeding subsequent to the execution of this Agreement or the Company reasonably requires Plaintiff’s services as they relate to pending matters, Plaintiff agrees that, upon written request, he will provide reasonable cooperation to the Company, including but not limited to participation in interviews with the Company’s attorneys, appearing for depositions, testifying in administrative, judicial or arbitration proceedings, or any other reasonable participation necessary for the prosecution or defense of any such investigation, litigation, arbitration or administrative proceeding.  Plaintiff agrees that he shall be commercially reasonable in providing such cooperation, taking into account his other obligations and the position he may have with another employer at the time such cooperation is required.  He shall take such further action and execute documents as may be reasonably necessary or appropriate in order to carry out the provisions and purposes of this provision.  The Company agrees to reimburse Plaintiff for his reasonable expenses in participating in the prosecution or defense of any investigation, litigation, arbitration or administrative proceeding, including any reasonable, pre-approved attorney fees he incurs in hiring independent counsel provided that such expenses are preapproved and he submits acceptable documentation of all such expenses.  The Company retains the right to pre-approve expenses and if the Company declines to cover Plaintiff’s proposed and reasonable expenses, Plaintiff is not obligated to engage in the requested cooperation.  If there is a dispute between the Company and Plaintiff as to the “reasonableness” of the expenses, Plaintiff will continue to cooperate for up to two weeks after making his request for expenses while the Parties attempt to negotiate reasonable expenses, provided that such cooperation does not require Plaintiff to incur the disputed expenses.  If no compromise is reached within two weeks of Plaintiff’s request, the Company will decline to approve the expenses and Plaintiff is released from his duty to cooperate.  Nothing in this paragraph shall be interpreted to require the Company to reimburse Plaintiff for fees or expenses incurred in the Lawsuit, prior to the execution of this Agreement, or in any litigation or proceeding in which Plaintiff is a party. 
 
17.Standstill.  Plaintiff agrees that, except with the consent of the Board, from the date he executes this Agreement until May 31, 2019 (the “Standstill Period”), Plaintiff shall not, nor shall Plaintiff permit any of his affiliates to, nor shall Plaintiff act in concert with any person to: (a) acquire, agree to acquire or make any proposal to acquire, directly or indirectly, any securities or property (beneficial ownership thereof or any voting rights related thereto) of the Company or any of its affiliates or subsidiaries, (b) propose to enter into, directly or indirectly, any merger, exchange offer, tender offer or business combination involving the Company or any of its affiliates or subsidiaries or to purchase, directly or indirectly, a material portion of the assets of the Company or any of its affiliates or subsidiaries, (c) make, or participate in, directly or indirectly, any “solicitation” of “proxies” (as such terms are used in the proxy rules of the U.S. Securities and Exchange Commission) to vote, or seek to advise or knowingly influence any person with respect to the voting of, any voting securities of the Company or any of its affiliates or subsidiaries (including, for the avoidance of doubt, indirectly by means of communication with the press or the media), (d) form, join or participate in a “group” (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended) with respect to any voting securities of the Company or any of its affiliates or subsidiaries, (e) otherwise act, alone or in concert with others, to seek to control or knowingly influence the management or Board, (f) disclose any intention, plan or arrangement inconsistent with the foregoing, (g) acquire (or propose or agree to acquire) after, of record or beneficially, by purchase or otherwise, any loans, debt securities, equity securities or assets of the Company or any of its affiliates or subsidiaries, or rights or options to acquire interests in any of the Company loans, debt securities, equity securities or assets, (h) any proposal to seek representation on the Board, (i) call or seek to call a special meeting of the Company’s shareholders, (j) initiate any proposal at a special or annual meeting of the Company’s shareholders, or (k) advise, assist or knowingly encourage any other persons in connection with any of the foregoing.  Plaintiff also agrees, during the Standstill Period, not to (i) request the Company (or its directors, officers, employees or agents), directly or indirectly, to amend or waive any provision of this Section 17 (including this sentence), or (ii) knowingly take any action which might require NOG to make a public announcement regarding the possibility of a business combination or merger or other event involving a change in control of the Company.  Notwithstanding the foregoing, in no event will any provision of this Section 17 restrict Plaintiff from (a) acquiring shares of Company Common Stock if, immediately following such acquisition, Plaintiff holds, beneficially or otherwise, less than 5% of the outstanding shares of Company Common Stock; or (b) providing advice regarding the Company at the request of senior management or the Board.  

18.Tax Matters.  Plaintiff and the Company agree to treat an amount equal to seven hundred and fifty thousand dollars ($750,000) of the consideration payable pursuant to Section 2 as wages for U.S. federal and applicable state and local tax purposes, subject to payroll tax withholding and reportable to the IRS and to Plaintiff on an IRS Form W-2.  Plaintiff and the Company agree to treat the remainder of the consideration payable pursuant to Section 2 as non-wage ordinary income for U.S. Federal and applicable state and local tax purposes, reportable to the IRS and to Plaintiff on an IRS Form 1099.  In the event that it is subsequently determined by any taxing authority that Plaintiff owes any additional taxes with respect to any money distributed under this Agreement, the determination of any tax liability is between Plaintiff and the taxing authority, the Company will not be responsible for payment of such taxes, including any interest and/or penalties, and Plaintiff agrees to indemnify and hold harmless the Released Parties from and against any claims or liabilities incurred by the Company with respect to any tax liabilities or sums determined to be owed by any taxing body.  All amounts payable to Plaintiff under this Agreement will be subject to applicable tax withholding by the Company, and the Company has not made any representations or guarantees regarding the tax result for Plaintiff with respect to any income recognized by Plaintiff in connection with this Agreement or the compensation or benefits provided hereunder.  Plaintiff hereby acknowledges that Plaintiff has not relied on any statements or representations by the Company or its attorneys with respect to the tax treatment of any of the payments described in this Agreement and that Plaintiff is responsible for all tax payments under the law.  This Agreement is intended to either avoid the application of, or comply with, Section 409A of the Code.  To that end this Agreement shall at all times be interpreted in a manner that is consistent with Section 409A of the Code.  Notwithstanding any other provision in this Agreement to the contrary, the Company shall have the right, in its sole discretion, to adopt such amendments to this Agreement or take such other actions (including amendments and actions with retroactive effect) as it determines is necessary or appropriate for this Agreement to comply with Section 409A of the Code.  

19.Disputes. The parties agree that any dispute arising under the terms of this Agreement, or regarding their validity, interpretation, construction, or performance, shall first be attempted to be resolved by direct discussion between Plaintiff and Erik Romslo, Executive Vice President and General Counsel.  If such discussion does not result in resolution of the dispute, it shall be submitted to confidential binding arbitration conducted through the American Arbitration Association under the AAA rules and procedures for employment cases.  A neutral arbitrator shall be chosen by agreement of the parties from a list submitted by the American Arbitration Association.

20.Amendment, Waiver. This Agreement may not be modified, amended or waived in any manner, except by an instrument in writing signed by both parties hereto. The waiver by either party of compliance with any provision of this Agreement by the other party shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by such party of a provision of this Agreement. The failure to enforce at any time, or for any period of time, any one or more of the terms of this Agreement shall not be a waiver of such terms or of the right thereafter to enforce each and every term of this Agreement.  

21.Non-Use.  This Agreement may not be used as evidence in any subsequent proceeding of any kind (without the Company’s written consent), except in a proceeding that a party institutes alleging a breach of this Agreement or as required by law.

22.No Admission of Wrongdoing.  The parties agree that neither this Agreement nor the furnishing of the consideration for this Agreement shall be deemed or construed at any time for any purpose as an admission by Released Parties of wrongdoing or evidence of any liability or unlawful conduct of any kind.

23.Entire Agreement. This Agreement and the agreements and provisions of agreements specifically incorporated herein are the entire agreement and understanding of the parties hereto with respect to the matters covered herein and supersedes all prior or contemporaneous negotiations, commitments, agreements and writings with respect to the subject matter hereof including the employment agreements that Plaintiff and the Company entered in January 16, 2008, January 30, 2009, January 14, 2011, and October 7, 2015, all such negotiations, commitments, agreements and writings shall have no further force or effect, and the parties to any such other negotiation, commitment, agreement or writing shall have no further rights or obligations hereunder.

24.Signatures. This Agreement may be signed in counterparts, each of which shall be deemed an original, but all of which, taken together shall constitute the same instrument. A signature made on a faxed or electronically mailed copy of the Agreement or a signature transmitted by facsimile or electronic mail will have the same effect as the original signature.

PLAINTIFF IS ADVISED THAT HE HAS A REASONABLE AMOUNT OF TIME TO CONSIDER THIS AGREEMENT. PLAINTIFF FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS AGREEMENT INTENDING TO WAIVE, SETTLE AND RELEASE CLAIMS PLAINTIFF HAS OR MIGHT HAVE AGAINST RELEASED PARTIES AS PROVIDED FOR HEREIN.

The parties knowingly and voluntarily sign this Agreement as of the date(s) set forth below:    

	
		
	

/s/ Michael L. Reger                               
Michael L. Reger

Date:  September 25, 2017                     

	NORTHERN OIL AND GAS, INC.
By    /s/ Erik J. Romslo                                 
Erik J. Romslo
Executive Vice President, General Counsel and Secretary

Date:  September 25, 2017

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