Document:

Exhibit 10.1

NOVASTAR FINANCIAL, INC.  2004 INCENTIVE STOCK PLAN
(as amended and restated effective August 9, 2011, and amended May 29, 2014)
Section 1.General Purpose of Plan; Definitions.
The name of this plan is the NovaStar Financial, Inc. 2004 Incentive Stock Plan (the “Plan”).  The Plan was adopted by the Board on March 11, 2004 and approved by the Company’s stockholders on June 8, 2004.  The purpose of the Plan is to enable the Company and its Subsidiaries to obtain and retain competent personnel who will contribute to the Company’s success by their ability, ingenuity, and industry, to give the Company’s non-employee directors a proprietary interest in the Company, and to provide incentives to the participating directors, officers and other key employees, and agents and consultants, that are linked to performance measures and will therefore inure to the benefit of all stockholders of the Company.  The Plan was amended and restated effective August 9, 2011 and further amended May 29, 2014.
For purposes of the Plan, the following terms shall be defined as set forth below: 
(1)    “Administrator” means the Committee, except with respect to Awards to Eligible Non-Employee Directors, where the Administrator is the Board.  
(2)    “Applicable Laws” means the requirements related to or implicated by the administration of the Plan and applicable to the Company under state corporate law, United States federal and state securities laws, the Code, the rules of any stock exchange on which the shares of Stock are listed, and the applicable laws of any foreign country or jurisdiction where Awards are granted under the Plan.
(3)    “Authorized Stock” has the meaning set forth in Section 3(a).
(4)    “Award” means a grant made under this Plan in the form of Stock Options, DERs, Stock Appreciation Rights, Restricted Stock, Performance Shares, or any combination of the foregoing.
(5)    “Board” means the Board of Directors of the Company. 
(6)    “Change of Control” means, with respect to the Company:
(a)    The purchase or other acquisition (other than from the Company) by any person, entity or group of persons, within the meaning of Section 13(d) or 14 (d) of the Exchange Act (excluding, for this purpose, the Company or its Subsidiaries or any employee benefit plan of the Company or its Subsidiaries), of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of either the then outstanding shares of Stock or the combined voting power of the Company’s then-outstanding voting securities entitled to vote generally in the election of directors; 
(b)    Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board, provided that any person who becomes a director subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board (other than an individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of directors of the Company, as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) shall be, for purposes of this section, considered as though such person were a member of the Incumbent Board; 
(c)    The consummation of any reorganization, merger or consolidation, in each case with respect to which persons who were the stockholders of the Company immediately prior to such reorganization, merger or consolidation do not, immediately thereafter, own more than 50% of, respectively, the Stock and the 

combined voting power entitled to vote generally in the election of directors of the reorganized, merged or consolidated corporation’s then-outstanding voting securities, or of a liquidation or dissolution of the Company; or
(d)    The sale or liquidation of all or substantially all of the assets of the Company.
With respect to Performance Shares which accelerate and are issued upon a Change of Control, clauses (a) through (d) above shall be deemed a change in the ownership or effective control of a corporation or a change in the ownership of a substantial portion of the assets of a corporation under Code Section 409A.
(7)    “Code” means the Internal Revenue Code of 1986, as amended, and the regulations and other guidance promulgated thereunder.  
(8)    “Committee” means the Compensation Committee of the Board.  
(9)    “Company” means NovaStar Financial, Inc., a corporation organized under the laws of the State of Maryland (or any successor corporation).
(10)    “Covered Employee” has the same meaning as set forth in Section 162(m)(3) of the Code, as interpreted by Internal Revenue Service Notice 2007-49 and any successor thereto. 
(11)    “Current-Pay DERs” means DERs with the current-pay rights described in Section 5(d).
(12)    “DERs” mean dividend equivalent rights pursuant to an Award granted under Section 5(d), which consist of the right to receive cash or Stock equal in value to dividends or other periodic payments paid or made with respect to a specified number of shares of Stock referenced by the Award.   DERs are in the form of Current-Pay DERs.
(13)    “Director” means a member of the Board. 
(14)    “Disability” means, except as otherwise provided in an Award agreement or written employment agreement, permanent and total disability as determined under the Company’s disability program or policy.
(15)    “Effective Date” has the meaning set forth in Section 11.
(16)    “Eligible Employee” means an employee of the Company or any Subsidiary, and any person to whom an offer of employment is made by the Company or any Subsidiary, eligible to participate in the Plan pursuant to Section 4.
(17)    “Eligible Non-Employee Director” means a Director who is not a bona fide employee of the Company or any Subsidiary and who is eligible to participate in the Plan pursuant to Section 5A.
(18)    “ERISA” means Employee Retirement Income Security Act of 1974, as amended, and the rules promulgated thereunder.
(19)    “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules promulgated thereunder. 
(20)    “Fair Market Value” means, as of any given date, with respect to any Awards granted hereunder, (A) the price at which the Stock was last sold on the consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which the shares of Stock are listed or admitted to trading on such date or, if there shall be no sale on such date, the next preceding date on which a sale shall have occurred, or (B) if the Stock is not publicly traded, the fair market value of the Stock as otherwise determined by the Administrator in the good faith exercise of its discretion.

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(21)    “Free Standing Rights” has the meaning set forth in Section 6(a).
(22)    “GAAP” means, for any day, generally accepted accounting principles, applied on a consistent basis, stated in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants, or in statements and pronouncements of the Financial Accounting Standards Board or in such other statements by another entity or entities as may be approved by a significant segment of the accounting profession, that are applicable to the circumstances for that day.  
(23)    “Immediate Family Members” has the meaning set forth in Section 5(c)(v)(2).
(24)    “Incentive Stock Option” means any Stock Option intended to be designated as an “incentive stock option” within the meaning of Section 422 of the Code.  
(25)    “Non-Employee Director” shall have the meaning set forth in Rule 16b-3 promulgated under the Exchange Act.  
(26)    “Non-Qualified Stock Option” means any Stock Option that is not an Incentive Stock Option, including any Stock Option that provides (as of the time such option is granted) that it will not be treated as an Incentive Stock Option.  
(27)    “Outside Director” means a Director who is an “outside director” within the meaning of Section 162(m) of the Code and Treasury Regulations Section 1.162-27(e)(3) and any successor to such statute and regulation. 
(28)    “Parent Corporation” has the meaning set forth in Section 424(e) of the Code. 
(29)    “Participant” means any Eligible Employee or any consultant or agent of the Company or any Subsidiary selected by the Administrator, pursuant to the Administrator’s authority in Section 2, to receive grants of Awards, or any Eligible Non-Employee Director eligible to receive grants of Awards pursuant to Section 5A. 
(30)    “Performance Criteria” means the criterion or criteria that the Administrator shall select for purposes of establishing the Performance Goal(s) for a Performance Period with respect to any Performance Share under the Plan.  The Performance Criteria that may be used by the Administrator for such Awards shall be based on any one or more of the following, as selected by the Administrator: revenue; revenue per employee; GAAP earnings; taxable earnings; GAAP or taxable earnings per employee; GAAP or taxable earnings per share (basic or diluted); operating income; total stockholder return; improvement in cash position; market share; profitability as measured by return ratios, including return on revenue, return on assets, return on equity, and return on investment; cash flow; or economic value added (economic profit); and such criteria generally must be specified in advance and may relate to one or any combination of two or more corporate, group, unit, division, affiliate, or individual performances.  For Awards intended to be “performance-based compensation,” the grant of the Awards, the establishment of the performance measures, and the certification that the performance goals were satisfied shall be made during the period and in the manner required under Code Section 162(m).  Any one or more of the Performance Criteria may be used on an absolute or relative basis to measure the performance of the Company and/or a Subsidiary as a whole or any division, business unit or operational unit of the Company and/or a Subsidiary or any combination thereof, as the Administrator may deem appropriate, or as compared to the performance of a group of comparable companies, or published or special index that the Administrator, in its sole discretion, deems appropriate. The Administrator also has the authority to provide for accelerated vesting of any Award based on the achievement of Performance Goals pursuant to the Performance Criteria. To the extent required under Section 162(m) of the Code, the Administrator shall, within the first 90 days of a Performance Period (or, if longer or shorter, within the maximum period allowed under Section 162(m) of the Code), define in an objective fashion the manner of calculating the Performance Criteria it selects to use for such Performance Period. In the event that applicable tax and/or securities laws change to permit the Administrator discretion to alter the governing Performance Criteria without obtaining shareholder approval of such changes, the Administrator shall have sole discretion to make such changes without obtaining shareholder approval.  

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(31)    “Performance Formula” means, for a Performance Period, the one or more objective formulas applied against the relevant Performance Goal to determine, with regard to the Performance Shares of a particular Participant, whether all, some portion but less than all, or none of the Performance Shares have been earned for the Performance Period. 
(32)    “Performance Goals” means, for a Performance Period, the one or more goals established by the Administrator for the Performance Period based upon the Performance Criteria. The Administrator is authorized at any time during the first 90 days of a Performance Period (or, if longer or shorter, within the maximum period allowed under Section 162(m) of the Code), or at any time thereafter (but only to the extent the exercise of such authority after such period would not cause the Performance Shares granted to any Participant for the Performance Period to fail to qualify as “performance-based compensation” under Section 162(m) of the Code), in its sole and absolute discretion, to adjust or modify the calculation of a Performance Goal for such Performance Period to the extent permitted under Section 162(m) of the Code in order to prevent the dilution or enlargement of the rights of Participants based on the following events:  (a) litigation or claim judgments or settlements; (b) the effect of changes in tax laws, accounting principles, or other laws or regulatory rules affecting reported results; (c) any reorganization and restructuring programs; (d) extraordinary nonrecurring items as described in Accounting Principles Board Opinion No. 30 (or any successor or pronouncement thereto) and/or in management’s discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to shareholders for the applicable year; (e) acquisitions or divestitures; (f) any other specific unusual or nonrecurring events, or objectively determinable category thereof; and (g) a change in the Company’s fiscal year. 
(33)    “Performance Period” means the one or more periods of time not less than one year in duration, as the Administrator may select, over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Participant’s right to and the payment of a Performance Share. 
(34)    “Performance Share” means an Award of shares of Stock granted pursuant to Section 5A or Section 7 that is subject to restrictions based upon the attainment of Performance Goals.  
(35)    “Plan” has the meaning set forth in Section 1.
(36)    “Prior Plan” means the Company’s 1996 Executive and Non-Employee Director Stock Option Plan, as amended.  
(37)    “Qualified domestic partner” has the meaning set forth in Section 5(c)(v)(2).
(38)    “Related Rights” has the meaning set forth in Section 6(a).
(39)    “Restricted Period” has the meaning set forth in Section 7(c)(i).
(40)    “Restricted Stock” means an Award granted pursuant to Section 5A or Section 7 of shares of Stock, subject to restrictions that will lapse with the passage of time or on such other bases as the Administrator may determine.
(41)    “Stock” means the common stock of the Company.
(42)    “Stock Appreciation Right” means the right pursuant to an Award granted under Section 5A or Section 6 to receive an amount equal to the difference between (A) the Fair Market Value, as of the date such Stock Appreciation Right or portion thereof is surrendered, of the shares of Stock covered by such right or such portion thereof, and (B) the aggregate exercise price of such right or such portion thereof.
(43)    “Stock Option” means an option to purchase shares of Stock granted pursuant to Section 5 or Section 5A.

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(44)    “Subsidiary” means any corporation (other than the Company), limited liability company or other entity (A) whose assets and liabilities are consolidated with those of the Company on the Company’s consolidated balance sheet or (B) whose issued and outstanding voting equity is fifty percent (50%) or more owned or controlled, directly or indirectly, by the Company.  
Section 2.    Administration.
(a)    Authority of the Administrator.  The Plan shall be administered by the Administrator.  Subject to the terms of the Plan, the Committee’s charter (if applicable) and Applicable Laws, and in addition to other express powers and authorization conferred by the Plan, the Administrator shall have the authority:
(i)    to construe and interpret the Plan and apply its provisions; 
(ii)    to promulgate, amend, and rescind rules and regulations relating to the administration of the Plan; 
(iii)    to authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan;
(iv)    to delegate its authority to one or more officers of the Company with respect to Awards that do not involve Covered Employees or “insiders” within the meaning of Section 16 of the Exchange Act;
(v)    to determine when Awards are to be granted under the Plan and the applicable grant date; 
(vi)    from time to time to select those Participants to whom Awards shall be granted; 
(vii)    to determine the number of shares of Stock to be made subject to each Award; 
(viii)    to determine whether each Option is to be an Incentive Stock Option or a Non-qualified Stock Option; 
(ix)    to prescribe the terms and conditions of each Award granted hereunder, including, without limitation, (A) the exercise price and medium of payment and vesting provisions and (B) the restricted period applicable to any Award of Restricted Stock and the date or dates on which restrictions applicable thereto shall lapse during such period; 
(x)    to designate an Award as Performance Shares and to select the Performance Criteria that will be used to establish the Performance Goals, the Performance Period and Performance Formula applicable to such Award; 
(xi)    to amend any outstanding Awards, including for the purpose of modifying the time or manner of vesting or restriction, or the term of any outstanding Award; provided, however, that (A) any such modification or amendment is permitted only if consistent with the terms of Section 5(c)(vii) and Section 6(d) of this Plan and (B) if any such amendment impairs a Participant’s rights or increases a Participant’s obligations under his or her Award or creates or increases a Participant’s federal income tax liability with respect to an Award, such amendment shall also be subject to the Participant’s consent; 
(xii)    to determine the duration and purpose of leaves of absences which may be granted to a Participant without constituting termination of their employment for purposes of the Plan, which periods shall be no shorter than the periods generally applicable to Employees under the Company’s employment policies; 

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(xiii)    to make decisions with respect to outstanding Awards and the Plan that may become necessary upon a change in corporate control or an event that triggers adjustments under Section 3; 
(xiv)    to accelerate the time at which an Award may first be exercised or the time during which an Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Award stating the time at which it may first be exercised or the time during which it will vest;
(xv)    to interpret, administer, reconcile any inconsistency in, correct any defect in and/or supply any omission in the Plan and any instrument or agreement relating to, or Award granted under, the Plan; 
(xvi)    to adopt, alter, and repeal such administrative rules, guidelines, and practices governing the Plan as it shall from time to time deem advisable and to otherwise supervise the administration of the Plan;
(xvii)    to determine the terms and conditions, not inconsistent with the terms of the Plan, which shall govern written instruments evidencing the Awards; and 
(xviii)    to exercise discretion to make any and all other determinations which it determines to be necessary or advisable for the administration of the Plan.
(b)    Composition of the Committee.  The Committee shall be composed (and, if the Board determines it to be required or advisable, solely composed) of not less than two Directors who are (i) independent (or such similar term) as may be appropriate and directed by the rules of the New York Stock Exchange, the NASDAQ Stock Market or such other stock exchange on which the Stock is listed, if any, (ii) a Non-Employee Director as defined in Rule 16b-3 promulgated under Section 16 of the Exchange Act; and (iii) an Outside Director as defined under Section 162(m) of the Code, provided that for purposes of granting and administering any Award that is intended to be “performance-based compensation” within the meaning of Section 162(m) of the Code, such Committee shall be solely composed of no less than two Directors who are Outside Directors within the meaning of Section 162(m) of the Code.  
(c)    Final and Binding.  All decisions made by the Administrator pursuant to the provisions of the Plan shall be final and binding on all persons, including the Company, any Subsidiaries and the Participants.  
Section 3.    Stock Subject to Plan.  
(a)    Authorized Stock.  Subject to the following provisions of this Section 3, the maximum number of shares of Stock with respect to which Awards may be granted to Participants and their beneficiaries under the Plan shall be equal to 6,000,000 shares of Stock (the “Authorized Stock”).  
(b)    Share Counting. 
(i)    The number of shares of Stock subject to an Award of Stock Options, Stock Appreciation Rights (in the form of Free-Standing Rights), Restricted Stock and Performance Shares shall be counted on a one-for-one basis against the aggregate number of shares of Authorized Stock available for issuance under the Plan.  
(ii)    The number of shares of Stock subject to an Award of Stock Appreciation Rights in the form of Related Rights shall not be counted against the aggregate number of shares of Authorized Stock available for issuance under the Plan, since the shares underlying the Stock Options to which the Award relates are counted and the exercise of the Related Right cancels the related Stock Option and vice versa.  

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(iii)    The number of shares of Stock that relate to an Award of DERs shall not be counted against the aggregate number of shares of Authorized Stock available for issuance under the Plan except to the extent shares of Stock are used to settle the Award. 
(iv)    Any shares of Stock covered by an Award that becomes expired, forfeited or canceled, or shares of Stock not delivered because the Award is settled in cash, shall not be deemed to have been granted for purposes of determining the maximum number of shares of Authorized Stock available for issuance under the Plan, except that Awards of Stock Appreciation Rights shall be counted as set forth herein regardless of the number of shares of Stock actually issued to settle such Stock Appreciation Rights upon exercise 
(v)    The number of shares of Authorized Stock available for issuance under the Plan shall not be increased by the number of shares of Stock (A) tendered or withheld or subject to an Award surrendered in connection with the purchase of shares of Stock upon exercise of a Stock Option or (B) deducted or delivered from payment of an Award in connection with tax withholding obligations.
(c)    Incentive Stock Option Limitations.  Subject to Section 3(d), the following additional limitations are imposed under the Plan with respect to Incentive Stock Options: 
(i)    The maximum number of shares of Stock that may be the subject of Awards granted as Incentive Stock Options under the Plan shall be 6,000,000 shares (regardless of whether the Awards are canceled, forfeited, or re-priced or the shares subject to any such Award are surrendered).  
(ii)    The maximum number of shares that may be the subject of Awards granted to any one individual pursuant to Sections 5 and 6 (relating to Stock Options and Stock Appreciation Rights) shall be 600,000 shares during any calendar year (regardless of whether such Awards are canceled, forfeited, or re-priced or the shares subject to any such Award are surrendered).  
(iii)    No more than 600,000 shares of Stock may be the subject of Awards under the Plan granted to any one individual during any one-calendar-year period (regardless of when such shares are deliverable or whether the Awards are forfeited, canceled, or re-priced or the shares subject to any such Award are surrendered) if such Awards are intended to be “performance-based compensation” (as the term is used for purposes of Code Section 162(m)).  
(d)    Adjustment for Extraordinary Corporate Changes.  In the event of a corporate transaction involving the Company (including, without limitation, any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination, or exchange of shares), the Administrator (i) shall adjust Awards granted prior to such transaction to preserve the economic intent and benefits or potential benefits of the Awards, (ii) shall increase the number of shares of Authorized Stock in a manner necessary to accommodate any adjustments resulting in increases in number of shares of Stock covered by Awards made pursuant to clause (i), if applicable and (iii) may adjust the number of Authorized Stock as it otherwise deems appropriate but in no event shall the number of shares of Authorized Stock be adjusted pursuant to this clause (iii) so that it exceeds ten percent (10%) of the issued and outstanding shares of Stock at the time of adjustment.  Action by the Administrator with respect to Awards may include: (w) adjustment of the number and kind of shares subject to outstanding Awards and ratable proration of any adjustment across any vesting schedule; (x) adjustment of the exercise price of outstanding Stock Options and Stock Appreciation Rights; (y) adjustment in the maximum number of shares that may be granted as Incentive Stock Options generally or to any one person, and (z) any other adjustments that the Administrator determines to be equitable, in its sole discretion.  The Company shall give each Participant notice of any adjustment hereunder with respect to any Award held by such Participant.  
(e)    Certain Parameters for Adjustments.  In the case of adjustments made pursuant to Section 3(d), and unless the Administrator specifically otherwise determines that such adjustment is in the best interests of the Company, the Administrator shall (i) in the case of Incentive Stock Options, ensure that any adjustments will not likely constitute a modification, extension or renewal of the Incentive Stock Options within the 

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meaning of Section 424(h)(3) of the Code, (ii) in the case of Non-Qualified Stock Options or Stock Appreciation Rights, ensure that any adjustments will not likely constitute a modification or extension of such Non-Qualified Stock Options or Stock Appreciation Right within the meaning of Section 409A of the Code, (iii) ensure, to the extent practicable, that any adjustments are made in a manner which does not likely and adversely affect the exemption provided pursuant to Rule 16b-3 under the Exchange Act, and (iv) in the case of Awards intended to qualify as “performance-based compensation” under Section 162(m) of the Code, ensure, to the extent practicable, that any adjustments or substitutions will not likely cause the Company to be denied a tax deduction on account of Section 162(m) of the Code. 
Section 4.    Eligibility.
(a)    Employee, Consultants and Agents.  Officers and other key employees of the Company or Subsidiaries who are responsible for or contribute to the management, growth, and/or profitability of the business of the Company or its Subsidiaries and consultants and agents of the Company or its Subsidiaries, shall be eligible to be granted Awards hereunder.  The Participants under the Plan shall be selected from time to time by the Administrator, in its sole discretion, from among the Eligible Employees and consultants and agents recommended by the senior management of the Company.   
(b)    Grants Related to Hiring of Employees.  Any grant made to any person to whom the Company or a Subsidiary makes an offer of employment shall not be effective unless and until such person accepts such offer and commences employment with the Company or any Subsidiary on substantially the same offer terms within 90 days after the date of the last offer.  
(c)    Directors.  Eligible Non-Employee Directors shall only be eligible to receive Awards as provided in Section 5A.  
Section 5.    Stock Options; DERs.
(a)    Grant.  Stock Options may be granted to Participants by the Administrator, either alone or in addition to other Awards granted under the Plan, including DERs as described in Section 5(d).  Any Stock Option granted under the Plan shall be in such form as the Administrator may from time to time approve, and the provisions of Stock Option Awards need not be the same with respect to each Participant.  Recipients of Stock Options shall enter into a stock option agreement with the Company, in such form as the Administrator shall determine, which agreement shall set forth, among other things, the exercise price of the option, the term of the option and provisions regarding exercisability of the option granted thereunder.  
(b)    Incentive Stock Options; Non-Qualified Stock Options.  The Stock Options granted under the Plan may be of two types: (i) Incentive Stock Options and (ii) Non-Qualified Stock Options.  The Administrator shall have the authority under this Section 5 to grant any Participant Incentive Stock Options, Non-Qualified Stock Options, or both types of Stock Options (in each case with or without DERs, and in the case of Non-Qualified Stock Options, with or without Stock Appreciation Rights), provided, however, that Incentive Stock Options may not be granted to any individual who is not an employee of the Company or its Subsidiaries.  To the extent that any Stock Option does not qualify as an Incentive Stock Option, it shall constitute a separate Non-Qualified Stock Option.  More than one option may be granted to the same Participant and be outstanding concurrently hereunder.  
(c)    Option Terms and Conditions.  Stock Options granted under the Plan shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Administrator shall deem desirable: 
(i)    Option Price.  The option price per share of Stock purchasable under a Stock Option shall be determined by the Administrator in its sole discretion at the time of grant but shall not be less than 100% of the Fair Market Value of the Stock on such date, and shall not, in any event, be less than the par value of the Stock.  If an employee owns or is deemed to own (by reason of the attribution rules 

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applicable under Section 425(d) of the Code) more than 10% of the combined voting power of all classes of stock of the Company or any Parent Corporation or Subsidiary and an Incentive Stock Option is granted to such employee, the option price of such Incentive Stock Option (to the extent required by the Code at the time of grant) shall be no less than 110% of the Fair Market Value of the Stock on the date such Incentive Stock Option is granted.  
(ii)    Option Term.  The term of each Stock Option shall be fixed by the Administrator, but no Stock Option shall be exercisable more than ten (10) years after the date such Stock Option is granted; provided, however, that if an employee owns or is deemed to own (by reason of the attribution rules of Section 425(d) of the Code) more than 10% of the combined voting power of all classes of stock of the Company or any Parent Corporation or Subsidiary and an Incentive Stock Option is granted to such employee, the term of such Incentive Stock Option (to the extent required by the Code at the time of grant) shall be no more than five (5) years from the date of grant.  
(iii)    Exercisability.  Stock Options shall be exercisable at such time or times as set forth in the Plan and subject to such terms and conditions as shall be determined by the Administrator at or after grant.  The Administrator may provide, in its discretion, that any Stock Option shall vest and be exercisable only after (or in pro-rata installments over) at least three (3) years from date of grant, and the Administrator may waive such installment exercise provisions at any time in whole or in part based on such factors or circumstances as the Administrator may determine, in its sole discretion, including, but not limited to, the attainment of certain Performance Goals, the Participant’s termination of employment or directorship, death or Disability.  To the extent not exercised, installments shall accumulate and be exercisable in whole or in part at any time after becoming exercisable but not later than the date the Stock Option expires.  
(iv)    Method of Exercise.  Subject to Section 5(c)(iii), Stock Options may be exercised in whole or in part at any time during the option period, by giving written notice of exercise to the Company specifying the number of shares to be purchased, accompanied by payment in full of the exercise price.  The entire exercise price of the Stock Options shall be payable in the manner designated by the Administrator, either:
(1)    In Cash.  By wire transfer of immediately available funds or by certified or bank check at the time the Option is exercised; 
(2)    In Stock.  By delivery to the Company of other shares of Stock, duly endorsed for transfer to the Company, with a Fair Market Value on the date of delivery equal to the exercise price (or portion thereof) due for the number of shares being acquired, or by means of attestation whereby the Participant identifies for delivery specific shares that have a Fair Market Value on the date of attestation equal to the exercise price (or portion thereof) and receives a number of shares equal to the difference between the number of shares thereby purchased and the number of identified attestation shares (provided, however, that in the case of an Incentive Stock Option, the right to make payment in the form of already owned shares may be authorized only at the time of grant); 
(3)    Through Broker Program.  Through a “cashless exercise program” established with a broker and acceptable to the Administrator; 
(4)    Net Issuance.  By reduction in the number of shares otherwise deliverable upon exercise of such Option with a Fair Market Value equal to the aggregate exercise price at the time of exercise; 
(5)    By Combination.  By any combination of the foregoing methods acceptable to the Administrator.

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(v)    Limits on Transferability of Options.
(1)    Subject to Section 5(c)(v)(2), no Stock Option shall be transferable by the Participant otherwise than by will or by the laws of descent and distribution or pursuant to a “qualified domestic relations order,” as such term is defined by ERISA, and all Stock Options shall be exercisable, during the Participant’s lifetime, only by the Participant or in accordance with the terms of a qualified domestic relations order.  
(2)    The Administrator may, in its discretion, authorize all or a portion of the Non-Qualified Stock Options to be granted to a Participant to be on terms which permit transfer by such Participant to (i) the spouse, qualified domestic partner, children, or grandchildren of the Participant and any other persons related to the Participant as may be approved by the Administrator (“Immediate Family Members”), (ii) a trust or trusts for the exclusive benefit of Participant and/or such Immediate Family Members, (iii) a partnership or partnerships in which Participant and/or Immediate Family Members are the only partners, or (iv) any other persons or entities as may be approved by the Administrator, provided that (x) there may be no consideration for any transfer unless approved by the Administrator, (y) the stock option agreement pursuant to which such options are granted must be approved by the Administrator, and must expressly provide for transferability in a manner consistent with this Section 5(c)(v)(2), and (z) subsequent transfers of transferred Stock Options shall be prohibited except those in accordance with Section 5(c)(v)(1) or expressly approved by the Administrator.  Following transfer, any such Stock Options shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer, provided that, except for purposes of Sections 5(c)(vi) and 10(c) hereof, the terms “optionee,” “Stock Option holder” and “Participant” shall be deemed to refer to the transferee.  The events of termination of employment contained in the option agreement with respect to such Stock Options shall continue to be applied with respect to the original Participant, following any which event the Stock Options shall be exercisable by the transferee only to the extent, and for the periods, specified in such option agreements.  Notwithstanding the transfer, the original Participant will continue to be subject to the provisions of Section 10(c) regarding payment of taxes, including the provisions entitling the Company to deduct such taxes from amounts otherwise due to such optionee.  Any transfer of a Stock Option that was originally granted with DERs related thereto shall automatically include the transfer of such DERs, any attempt to transfer such Stock Option separately from such DERs shall be void, and such DERs shall continue in effect according to their terms.  “Qualified domestic partner” for the purpose of this Section 5(c)(v)(2) shall mean a domestic partner living in the same household as the Participant and registered with, certified by, or otherwise acknowledged by the county or other applicable governmental body as a domestic partner or otherwise establishing such status in any manner satisfactory to the Administrator.  
(vi)    Annual Limit on Incentive Stock Options.  To the extent that the aggregate Fair Market Value (determined as of the date the Incentive Stock Option is granted) of shares of Stock with respect to which Incentive Stock Options granted to a Participant under this Plan and all other option plans of the Company, its Parent Corporation or any Subsidiary become exercisable for the first time by the Participant during any calendar year exceeds $100,000, such Stock Options shall be treated as Non-Qualified Stock Options.  
(vii)    No Repricing.  Except as provided in Section 3, without the approval of the Company’s stockholders the exercise price of an Stock Option may not be reduced after the grant of the Stock Option and a Stock Option may not be surrendered in consideration of, or in exchange for, the grant of a new Stock Option having an exercise price below that of the Stock Option that was surrendered, Stock, cash, or any other Award.

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(d)    DERs.  
(i)    Grant.  The Administrator shall have the discretion to grant DERs in conjunction with grants of Stock Options pursuant to this Section 5.  DERs may be granted in the form of “Current-Pay DERs” only and the Administrator may condition the payment or accrual of amounts in respect thereof subject to satisfaction of such performance objectives as the Administrator may specify at the time of grant.  
(ii)    Current-Pay DERs.  Assuming satisfaction of any applicable conditions, Current-Pay DERs shall be paid concurrently with any dividends or distributions paid on the Stock during the time the related Stock Options are outstanding, or such portion of such time as the Administrator may determine, in an amount equal to the value of the cash dividend (or Stock or other property being distributed) per share being paid on the Stock times the number of shares subject to the related Stock Options, provided that the holder of the Stock Options with respect to which such dividends are being distributed must have been actively employed by the Company or engaged to provide substantial services to the Company from the date of grant of such Stock Options through the date of distributions of such Current-Pay DERs occurs.  Current-Pay DERs are payable in cash, Stock or such other property as may be distributed to stockholders, as the Administrator shall determine at the time of grant.  
(iii)    Expiration.  DERs shall expire upon the expiration of the Stock Options to which they relate.  
(iv)    Deferred Compensation.  Notwithstanding the foregoing or any other provision in this Plan to the contrary, to the extent any DER granted in conjunction with a Stock Option constitutes deferred compensation subject to Section 409A of the Code, then the grant of such DER shall be set forth in an Award agreement separate and apart from the Award agreement for the Stock Option and the DER shall be payable at the time specified by the Administrator at the time of grant, subject to Section 13.
Section 5A.    Awards For Eligible Non-Employee Directors.
Eligible Non-Employee Directors shall be eligible to be granted Awards of Non-Qualified Stock Options, Stock Appreciation Rights, Restricted Stock, DERs and Performance Shares hereunder, as determined by the Board of Directors acting as Administrator, and with such terms and conditions, and in the manner, provided in this Plan, it being acknowledged that Eligible Non-Employee Directors are not eligible to be granted Incentive Stock Options.  Beginning August 9, 2011, there shall not be automatic annual grants of Awards to Eligible Non-Employee Directors, unless the Board of Directors shall otherwise determine.  
Section 6.    Stock Appreciation Rights.
(e)    Grant.  Stock Appreciation Rights may be granted to Participants by the Administrator, either alone (“Free Standing Rights”) or in conjunction with all or part of any Stock Option granted under the Plan (“Related Rights”).  In the case of a Non-Qualified Stock Option, Related Rights may be granted either at or after the time of the grant of such Stock Option.  In the case of an Incentive Stock Option, Related Rights may not be granted.  Stock Appreciation Rights shall be subject to such terms and conditions, not inconsistent with the provisions of the Plan, as shall be determined from time to time by the Administrator.
(f)    Related Rights.  
(i)    A Related Right or applicable portion thereof granted in conjunction with a given Stock Option shall terminate and no longer be exercisable upon the termination or exercise of the related Stock Option, except that, unless otherwise provided by the Administrator at the time of grant, a Related Right granted with respect to less than the full number of shares covered by a related Stock Option shall only be reduced if and to the extent that the number of shares covered by the exercise or termination of the related Stock Option exceeds the number of shares not covered by the Stock Appreciation Right.  

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(ii)    A Related Right may be exercised by a Participant, in accordance with this Section 6(b), by surrendering the applicable portion of the related Stock Option.  Upon such exercise and surrender, the Participant shall be entitled to receive an amount determined in the manner prescribed in this Section 6(b).  Stock Options which have been so surrendered, in whole or in part, shall no longer be exercisable to the extent the Related Rights have been so exercised.  
(iii)    Related Rights shall be exercisable only at such time or times and to the extent that the Stock Options to which they relate shall be exercisable in accordance with the provisions of Section 5 and this Section 6; provided, however, that no Related Right shall be exercisable during the first six months of its term, except that this additional limitation shall not apply in the event of death or Disability of the Participant prior to the expiration of such six-month period.  
(iv)    Upon the exercise of a Related Right, the Participant shall be entitled to receive up to, but not more than, an amount in cash or that number of shares of Stock (or in some combination of cash and shares of Stock) equal in value to the excess of the Fair Market Value of one share of Stock as of the date of exercise over the exercise price per share specified in the related Stock Option multiplied by the number of shares of Stock in respect of which the Related Right is being exercised, with the Administrator having the right to determine the form of payment.  
(v)    Related Rights shall be transferable or exercisable only when and to the extent that the underlying Stock Option would be transferable or exercisable under Section 5.  
(vi)    Upon the exercise of a Related Right, the Stock Option or part thereof to which such Related Right is related shall be deemed to have been exercised for the purpose of share counting under Section 3(b). 
(g)    Free Standing Rights.  
(i)    Free Standing Rights shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Administrator at or after grant; provided, however, that no Free Standing Right shall be exercisable during the first six months of its term, except that this limitation shall not apply in the event of a Change of Control or death or Disability of the Participant prior to the expiration of such six-month period.  
(ii)    The term of each Free Standing Right shall be fixed by the Administrator, but no Free Standing Right shall be exercisable more than ten (10) years after the date such right is granted.  
(iii)    Upon the exercise of a Free Standing Right, a recipient shall be entitled to receive up to, but not more than, an amount in cash or that number of shares of Stock (or any combination of cash or shares of Stock) equal in value to the excess of the Fair Market Value of one share of Stock as of the date of exercise over the price per share specified in the Free Standing Right (which price shall be no less than 100% of the Fair Market Value of the Stock on the date of grant) multiplied by the number of shares of Stock with respect to which the right is being exercised, with the Administrator having the right to determine the form of payment.  
(iv)    Free Standing Rights shall be transferable or exercisable subject to the provisions governing the transferability and exercisability of Stock Options set forth in Section 5.  
(v)    In the event of the termination of employment or directorship of a Participant who has been granted Free Standing Rights, such rights shall be exercisable for thirty (30) days after such termination or as otherwise determined by the Administrator in its sole discretion.
(h)    No Repricing.  Except as provided in Section 3, without the approval of the Company’s stockholders the price of a Stock Appreciation Right may not be reduced after the grant of the Stock Appreciation 

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Right, and a Stock Appreciation Right may not be surrendered in consideration of, or in exchange for, the grant of a new Stock Appreciation Right having a price below that of the Stock Appreciation Right that was surrendered, Stock, cash, or any other Award.
Section 7.    Restricted Stock;  Performance Shares.
(a)    General.  Restricted Stock or Performance Share Awards may be issued either alone or in addition to other Awards granted under the Plan.  The Administrator shall determine the Eligible Employees and Eligible Non-Employee Directors to whom, and the time or times at which, grants of Restricted Stock or Performance Share Awards shall be made; the number of shares to be Awarded; the price, if any, to be paid by the recipient of Restricted Stock or Performance Share Awards; the Restricted Period (as defined in Section 7(c)) applicable to Restricted Stock or Performance Share Awards; the performance objectives applicable to Performance Share, Restricted Stock Awards; the date or dates on which restrictions applicable to such Restricted Stock Awards shall lapse during such Restricted Period; and all other conditions of the Restricted Stock and Performance Share Awards.  The Administrator may also condition the grant of Restricted Stock or Performance Share Awards upon the exercise of Stock Options or upon such other criteria as the Administrator may determine, in its sole discretion.  The provisions of Restricted Stock or Performance Share Awards need not be the same with respect to each recipient. 
(b)    Awards and Certificates.  The prospective recipient of a Restricted Stock or Performance Share Award shall not have any rights with respect to such Award, unless and until such recipient has executed an agreement evidencing the Award and delivered a fully executed copy thereof to the Company, within a period of sixty days (or such other period as the Administrator may specify) after the Award date.  Except as otherwise provided below in this Section 7(b), (i) each Participant who is awarded Restricted Stock or Performance Shares shall be issued a stock certificate in respect of such shares of Restricted Stock or Performance Shares; and (ii) such certificate shall be registered in the name of the Participant, and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Award, substantially in the following form: 
“The transferability of this certificate and the shares of Stock represented hereby are subject to the terms and conditions (including forfeiture) of the NovaStar Financial, Inc. 2004 Incentive Stock Plan and a Restricted Stock Award Agreement or Performance Share Award Agreement entered into between the registered owner and NovaStar Financial, Inc.  Copies of such Plan and Agreement are on file in the offices of NovaStar Financial, Inc.” 
The Company shall require that the stock certificates evidencing such shares be held in the custody of the Company until the expiration of the Restricted Period and/or attainment of Performance Goals, as the case may be, and that, as a condition of any Restricted Stock Award or Performance Share Award, the Participant shall have delivered a stock power, endorsed in blank, relating to the Stock covered by such Award.  
(c)    Restrictions and Conditions.  The Restricted Stock and Performance Share Awards granted pursuant to this Section 7 shall be subject to the following restrictions and conditions: 
(i)    Subject to the provisions of the Plan and the Restricted Stock or Performance Share Award agreement, Restricted Stock and Performance Shares may be subject to vesting requirements and/or attainment of Performance Goals.  If subject to time vesting, such Awards shall vest and be exercisable only after (or in installments over) at least three (3) years from date of grant, as determined by the Administrator; if subject to attainment of Performance Goals, such attainment shall be measured over a Performance Period, as determined by the Administrator (either such period, as applicable, the “Restricted Period”).   During the Restricted Period, the Participant shall not be permitted to sell, transfer, pledge, or assign shares of Restricted Stock or Performance Shares awarded under the Plan, except as otherwise provided upon a Change of Control or as the Administrator may, in its sole discretion, provide for the lapse of such restrictions in installments and may accelerate or waive such restrictions in whole or in part based on such factors and such circumstances as the Administrator may determine, in its sole discretion, 

13

including, but not limited to, the attainment of certain Performance Goals, the Participant’s termination of employment or directorship, death or Disability.  
(ii)    The Participant shall have, with respect to the shares of Restricted Stock, all of the rights of a stockholder of the Company, including the right to vote the shares, and the right to receive any dividends thereon during the Restricted Period, subject to such restrictions as the Administrator may determine in its discretion in the applicable Award agreement.  Certificates for shares of unrestricted Stock shall be delivered to the Participant promptly after, and only after, the expiration of the Restricted Period and/or attainment of Performance Goals, as the case may be, in respect of shares covered by the Award of Restricted Stock or Performance Shares, except as the Administrator, in its sole discretion, shall otherwise determine.  
(iii)    Subject to the provisions of the Restricted Stock or Performance Share Award agreement and this Section 7, upon termination of employment for any reason during the Restricted Period, all shares subject to any restriction as of the date of such termination shall be forfeited by the Participant.
Section 8.    Amendment and Termination.
The Board may amend, alter, or discontinue the Plan, but no amendment, alteration, or discontinuation may be made (1) that impairs the rights of a Participant under any pre-existing Award (unless done with such Participant’s consent), or (2) without the approval of the Company’s stockholders if it: 
(a)    increases the total number of shares of Authorized Stock (except as provided in Section 3); 
(b)    changes the employees or class of employees eligible to participate in the Plan; 
(c)    materially changes the definition of Performance Criteria; or 
(d)    extends the maximum option period under Section 5(c) of the Plan. 
Section 9.    Unfunded Status of Plan.
The Plan is intended to constitute an “unfunded” plan for incentive compensation.  With respect to any payments not yet made to a Participant or optionee by the Company, nothing contained herein shall give any such Participant or optionee any rights that are greater than those of a general creditor of the Company.  
Section 10.    General Provisions.
(a)    Securities Law Compliance.  The Administrator may require each person purchasing shares pursuant to a Stock Option to represent to and agree with the Company in writing that such person is acquiring the shares without a view to distribution thereof.  The certificates for such shares may include any legend which the Administrator deems appropriate to reflect any restrictions on transfer.  All certificates for shares of Stock delivered under the Plan shall be subject to such stock-transfer orders and other restrictions as the Administrator may deem advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Stock is then listed, and any applicable federal or state securities law, and the Administrator may cause a legend or legends to be placed on any such certificates to make appropriate reference to such restrictions.  
(b)    No Employment Rights.  Nothing in the Plan or any instrument executed or Award granted pursuant thereto shall confer upon any Participant any right to continue to serve the Company or a Subsidiary in the capacity in effect at the time the Award was granted or shall affect the right of the Company or a Subsidiary to terminate (a) the employment of an Employee with or without notice and with or without Cause or 

14

(b) the service of a Director pursuant to the by-laws or other governing documents of the Company and any applicable provisions of the corporate law of the state in which the Company is organized.  
(c)    Tax and Withholding Obligations.  Each Participant bears the obligation to pay any taxes imposed on the Participant with respect to the granting, vesting, exercise, sale or ownership of any Award.  To the extent provided by the terms of an Award Agreement and subject to the discretion of the Administrator, the Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of Stock under an Award by any of the following means (in addition to the Company’s right to withhold from any compensation paid to the Participant by the Company) or by a combination of such means: (a) tendering a cash payment; (b) authorizing the Company to withhold shares of Stock from the shares of Stock otherwise issuable to the Participant as a result of the exercise or acquisition of Stock under the Award, provided, however, that no shares of Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law; or (c) delivering to the Company previously owned and unencumbered shares of Stock. 
(d)    Exculpation and Indemnification.  No member of the Board or the Administrator, nor any officer or employee of the Company acting on behalf of the Board or the Administrator, shall be personally liable for any action, determination, or interpretation taken or made in good faith with respect to the Plan, and all members of the Board or the Administrator and each and any 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.  
(e)    Deferral.  The Administrator may permit or require a Participant to subject any Award granted hereunder to any deferred compensation, deferred stock issuance, or similar plan that may be made available to Participants by the Company from time to time.  The Administrator may establish such rules and procedures for participation in such deferral plans as it may deem appropriate, in its sole discretion.  
(f)    Transfer; Approved Leave of Absence. For purposes of the Plan, no termination of employment by an Employee shall be deemed to result from either (a) a transfer to the employment of the Company from a Subsidiary or from the Company to a Subsidiary, or from one Subsidiary to another, or (b) an approved leave of absence for military service or sickness, or for any other purpose approved by the Company or Subsidiary, as the case may be, if the Employee’s right to reemployment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence was granted or if the Administrator otherwise so provides in writing, in either case, except to the extent inconsistent with Section 409A of the Code if the applicable Award is subject thereto. 
(g)    Change of Control.  In the event of a Change of Control, and except as otherwise set forth in the applicable Award agreement: 
(i)    Acceleration of Vesting.  Any Awards subject to vesting shall become immediately vested, and as applicable such Awards shall become exercisable with respect to 100% of the shares subject to the Award.  To the extent practicable, such acceleration of vesting and exercisability shall occur in a manner and at a time which allows the Participant the ability to participate in the Change of Control with respect to the shares of Stock received, if applicable, as the Administrator determines.  
(ii)    Cancellation of DERs.  DERs shall be canceled without separate payment of consideration therefor.
(iii)    Cash-out of Awards.  The Administrator may, in its discretion and upon at least ten (10) days’ advance notice to the Participant, and in lieu of issuance of Stock or payment of the value of the Award in Stock, cancel any Awards and pay cash to the Participant equivalent to the value of the Award based upon the price per share of Stock received or to be received by other shareholders of the Company in the event.  With respect to Stock Options and Stock Appreciation Rights, however, if at the time of a Change of Control the exercise price of the Stock Option or Stock Appreciation Right equals or exceeds the price paid for a share of Stock in connection with the Change of Control, the Administrator may cancel the 

15

Stock Option or Stock Appreciation Right without the payment of consideration therefor.   Any action taken by the Administrator need not treat all Participants equally.
Section 11.    Effective Date of Plan.
The Plan originally became effective (the “Effective Date”) on June 8, 2004, the date the Company’s stockholders formally approved the Plan; and the Prior Plan was terminated except with respect to outstanding Awards that remain to become vested, exercised or free of restrictions.  This Plan, as amended and restated herein, is effective August 9, 2011.
Section 12.    Term of Plan.
The Plan shall remain in full force and effect until (i) terminated by the Board or (ii) no more shares of Authorized Stock are available for new Awards under the Plan and all outstanding Awards have been vested and exercised, forfeited or cancelled.
Section 13.    Deferred Compensation; Compliance With Code Section 409A.  
(a)    The Administrator may permit or require a Participant to defer delivery or payment of any Award granted hereunder pursuant to such plans, rules, procedures or programs as the Administrator may establish for purposes of this Plan.  The Administrator also may provide that deferred settlements include the payment or crediting of interest on the deferral amounts, or the payment or crediting of dividend equivalents where the deferral amounts are denominated in shares.  The Administrator in its sole discretion may establish such rules and procedures for participation in such deferral plans as it may deem appropriate, subject to Section 409A of the Code and Section 13(b) below.  
(b)    To the extent applicable, the Plan and Award agreements shall be interpreted in accordance with Code Section 409A and U.S.  Department of Treasury regulations and other interpretative guidance issued thereunder.  Notwithstanding any provision of the Plan to the contrary, the Administrator may adopt such amendments to the Plan and the applicable Award agreements or adopt other policies and procedures (including amendments, policies and procedures having retroactive effect), or take any other actions, that the Administrator determines are necessary or appropriate to exempt the Award from Section 409A of the Code, to preserve the intended tax treatment of the benefits provided with respect to the Award, and/or to comply with the requirements of Section 409A of the Code and related U.S.  Department of Treasury guidance.  

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  Exhibit 10.1    
    

 TRIANGLE PETROLEUM CORPORATION

2014 EQUITY INCENTIVE PLAN  

1.     PURPOSE OF PLAN  

        The purpose of this 2014 Equity Incentive Plan (this "Plan") of Triangle Petroleum Corporation, a Delaware
corporation (the "Corporation"), is to promote the success of the Corporation and to increase stockholder value by providing an additional means to
attract, motivate, retain and reward selected employees and other eligible persons through the grant of equity awards. 

2.     ELIGIBILITY  

        The Administrator (as such term is defined in Section 3.1) may grant awards under this Plan only to those persons that the Administrator determines to be
Eligible Persons. An "Eligible Person" is any person who is either: (a) an officer (whether or not a director) or employee of the Corporation or
one of its Subsidiaries; (b) a director of the Corporation or one of its Subsidiaries; or (c) an individual consultant who renders bona fide services (other than services in connection
with the offering or sale of securities of the Corporation or one of its Subsidiaries in a capital-raising transaction or as a market maker or promoter of securities of the Corporation or one of its
Subsidiaries) to the Corporation or one of its Subsidiaries and who is selected to participate in this Plan by the Administrator; provided, however,
that a person who is otherwise an Eligible Person under clause (c) above may participate in this Plan only if such participation would not adversely affect either the Corporation's eligibility
to use Form S-8 to register under the Securities Act of 1933, as amended (the "Securities Act"), the offering and sale of shares issuable under
this Plan by the Corporation, or the Corporation's compliance with any other applicable laws. An Eligible Person who has been granted an award (a
"participant") may, if otherwise eligible, be granted additional awards if the Administrator shall so determine. As used herein,
"Subsidiary" means any entity in which the Corporation owns, directly or indirectly through one or more intermediaries, fifty percent or more of the
total combined voting power of all classes of equity of such entity; and "Board" means the Board of Directors of the Corporation. 

3.     PLAN ADMINISTRATION  

        3.1    The Administrator.    This Plan shall
be administered by and all awards under this Plan shall be authorized by the Administrator. The "Administrator" means the Board or one or more
committees appointed by the Board or another committee (within its delegated authority) to administer all or certain aspects of this Plan. Any such committee shall be comprised solely of one or more
directors or such other number of directors as may be required under applicable law. A committee may delegate some or all of its authority to another committee so constituted. The Board or a committee
comprised solely of directors may also delegate, to the extent permitted by applicable law, to one or more officers of the Corporation, its powers under this Plan (a) to determine the Eligible
Persons who will receive grants of awards under this Plan, and (b) to determine the number of shares subject to, and the other terms and conditions of, such awards. The Board may delegate
different levels of authority to different committees with administrative and grant authority under this Plan. Unless otherwise provided in the bylaws of the Corporation or the applicable charter of
any Administrator: (a) a majority of the members of the acting Administrator shall constitute a quorum, and (b) the affirmative vote of a majority of the members present assuming the
presence of a quorum or the unanimous written consent of the members of the Administrator shall constitute due authorization of an action by the acting Administrator. 

        With
respect to awards intended to satisfy the requirements for performance-based compensation under Section 162(m) of the Internal Revenue Code of 1986, as amended (the
"Code"), this Plan shall be administered by a committee consisting solely of two or more outside directors (as this requirement 

1

 

is
applied under Section 162(m) of the Code); provided, however, that the failure to satisfy such requirement shall not affect the validity of
the action of any committee otherwise duly authorized and acting in the matter. Award grants, and transactions in or involving awards, intended to be exempt under Rule 16b-3 under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), must be duly and timely authorized by the Board or a committee consisting solely of
two or more non-employee directors (as this requirement is applied under Rule 16b-3 promulgated under the Exchange Act). To the extent required by any applicable stock exchange, this Plan shall
be administered by a committee composed entirely of independent directors (within the meaning of the applicable stock exchange). Awards granted to non-employee directors shall not be subject to the
discretion of any officer or employee of the Corporation and shall be administered exclusively by a committee consisting solely of independent directors. 

        3.2    Powers of the Administrator.    Subject
to the express provisions of this Plan, the Administrator is authorized and empowered to do all things necessary or desirable in connection with the authorization of awards and the administration of
this Plan (in the case of a committee or delegation to one or more officers, within the authority delegated to that committee or person(s)), including, without limitation, the authority to: 

        (a)   determine
eligibility and, from among those persons determined to be eligible, the particular Eligible Persons who will receive awards under this Plan; 

        (b)   grant
awards to Eligible Persons, determine the price at which securities will be offered or awarded and the number of securities to be offered or awarded to any of such
persons, determine the other specific terms and conditions of such awards consistent with the express limits of this Plan, establish the installments (if any) in which such awards shall become
exercisable or shall vest (which may include, without limitation, performance and/or time-based schedules), or determine that no delayed exercisability or vesting is required, establish any applicable
performance targets, and establish the events of termination or reversion of such awards; 

        (c)   approve
the forms of award agreements (which need not be identical either as to type of award or among participants); 

        (d)   construe
and interpret this Plan and any agreements defining the rights and obligations of the Corporation, its Subsidiaries, and participants under this Plan, further
define the terms used in this Plan, and prescribe, amend and rescind rules and regulations relating to the administration of this Plan or the awards granted under this Plan; 

        (e)   cancel,
modify, or waive the Corporation's rights with respect to, or modify, discontinue, suspend, or terminate any or all outstanding awards, subject to any required
consent under Section 8.6.5; 

        (f)    accelerate
or extend the vesting or exercisability or extend the term of any or all such outstanding awards (in the case of options or stock appreciation rights, within
the maximum ten-year term of such awards) in such circumstances as the Administrator may deem appropriate (including, without limitation, in connection with a termination of employment or services or
other events of a personal nature) subject to any required consent under Section 8.6.5; 

        (g)   adjust
the number of shares of Common Stock subject to any award, adjust the price of any or all outstanding awards or otherwise change previously imposed terms and
conditions, in such circumstances as the Administrator may deem appropriate, in each case subject to compliance with applicable stock exchange requirements, Sections 4 and 8.6 and the
applicable requirements of Code Section 162(m) and treasury regulations thereunder with respect to awards that are intended to satisfy the requirements for performance-based compensation under
Section 162(m), and provided that in no case (except due to an adjustment contemplated by Section 7) shall the terms of any outstanding awards be amended (by amendment, cancellation and
regrant, or other 

2

 

means)
to reduce the per share exercise or base price of any outstanding stock option or stock appreciation right or other award granted under this Plan, or be exchanged for cash, other awards or
stock option or stock appreciation rights with an exercise price that is less than the per share exercise price of the original stock option or stock appreciation rights, without stockholder approval,
and further provided that any adjustment or change in terms made pursuant to this Section 3.2(g) shall be made in a manner that, in the good faith determination of the Administrator will not
likely result in the imposition of additional taxes or interest under Section 409A of the Code; 

        (h)   determine
the date of grant of an award, which may be a designated date after but not before the date of the Administrator's action (unless otherwise designated by the
Administrator, the date of grant of an award shall be the date upon which the Administrator took the action granting an award); 

        (i)    determine
whether, and the extent to which, adjustments are required pursuant to Section 7 hereof and authorize the termination, conversion, substitution,
acceleration or succession of awards upon the occurrence of an event of the type described in Section 7; 

        (j)    acquire
or settle (subject to Sections 7 and 8.6) rights under awards in cash, stock of equivalent value, or other consideration; and 

        (k)   determine
the Fair Market Value (as defined in Section 5.6) of the Common Stock or awards under this Plan from time to time and/or the manner in which such value
will be determined. 

        3.3    Binding Determinations.    Any action
taken by, or inaction of, the Corporation, any Subsidiary, or the Administrator relating or pursuant to this Plan and within its authority hereunder or under applicable law shall be within the
absolute discretion of that entity or body and shall be conclusive and binding upon all persons. Neither the Board, the Administrator, nor any Board committee, nor any member thereof or person acting
at the direction thereof, shall be liable for any act, omission, interpretation, construction or determination made in good faith in connection with this Plan (or any award made under this Plan), and
all such persons shall be entitled to indemnification and reimbursement by the Corporation in respect of any claim, loss, damage or expense (including, without limitation, legal fees) arising or
resulting therefrom to the fullest extent permitted by law and/or under any directors and officers liability insurance coverage that may be in effect from time to time. 

        3.4    Reliance on Experts.    In making any
determination or in taking or not taking any action under this Plan, the Administrator may obtain and may rely upon the advice of experts, including professional advisors to the Corporation. The
Administrator shall not be liable for any such action or determination taken or made or omitted in good faith based upon such advice. 

        3.5    Delegation of Non-Discretionary
Functions.    In addition to the ability to delegate certain grant authority to officers of the Corporation as set forth in Section 3.1, the Administrator may
also delegate ministerial, non-discretionary functions to individuals who are officers or employees of the Corporation or any of its Subsidiaries or to third parties. 

4.     SHARES OF COMMON STOCK SUBJECT TO THE PLAN; SHARE LIMIT  

        4.1    Shares Available.    Subject to the
provisions of Section 7.1, the capital stock available for issuance under this Plan shall be shares of the Corporation's authorized but unissued Common Stock. For purposes of this Plan,
"Common Stock" shall mean the common stock of the Corporation, par value $0.00001 per share and such other securities or property as may become the
subject of awards under this Plan pursuant to an adjustment made under Section 7.1. 

3

 

        4.2    Share Limit.    The maximum number of
shares of Common Stock that may be delivered pursuant to awards granted to Eligible Persons under this Plan may not exceed 6,000,000 shares of Common Stock (the "Share
Limit"). 

        The
foregoing Share Limit is subject to adjustment as contemplated by Section 7.1 and Section 8.10. 

        4.3    Awards Settled in Cash, Reissue of Awards and
Shares.    The Administrator may adopt reasonable counting procedures to ensure appropriate counting and to avoid double counting (as, for example, in the case of
tandem or substitute awards) as it may deem necessary or desirable in its sole discretion. Shares shall be counted against those reserved to the extent such shares have been delivered and are no
longer subject to a substantial risk of forfeiture. Accordingly, to the extent that an award under the Plan, in whole or in part, is canceled, expired, forfeited, settled in cash, settled by delivery
of fewer shares than the number of shares underlying the award, or otherwise terminated without delivery of shares to the participant, the shares retained by or returned to the Corporation will not be
deemed to have been delivered under the Plan and will be deemed to remain or to become available under this Plan. Shares that are withheld from such an award or separately surrendered by the
participant in payment of the exercise price or taxes relating to such an award shall be deemed to have been issued hereunder and shall reduce the number of shares remaining available for issuance
under the Plan. The foregoing adjustments to the Share Limit of this Plan are subject to any applicable limitations under Section 162(m) of the Code with respect to awards intended as
performance-based compensation thereunder. 

        4.4    Reservation of Shares; No Fractional
Shares.    The Corporation shall at all times reserve a number of shares of Common Stock sufficient to cover the Corporation's obligations and contingent obligations
to deliver shares with respect to awards then outstanding under this Plan (exclusive of any dividend equivalent obligations to the extent the Corporation has the right to settle such rights in cash).
No fractional shares shall be delivered under this Plan. The Administrator may pay cash in lieu of any fractional shares in settlements of awards under this Plan. 

5.     AWARDS  

        5.1    Type and Form of Awards.    The
Administrator shall determine the type or types of award(s) to be made to each selected Eligible Person. Awards may be granted singly, in combination or in tandem. Awards also may be made in
combination or in tandem with, in replacement of, as alternatives to, or as the payment form for grants or rights under any other employee or compensation plan of the Corporation or one of its
Subsidiaries. The types of awards that may be granted under this Plan are: 

        5.1.1    Stock Options.    A stock option is
the grant of a right to purchase a specified number of shares of Common Stock during a specified period as determined by the Administrator. An option may be intended as an incentive stock option
within the meaning of Section 422 of the Code (an "ISO") or a nonqualified stock option (an option not intended to be an ISO). The award
agreement for an option will indicate if the option is intended as an ISO; otherwise it will be deemed to be a nonqualified stock option. The maximum term of each option (ISO or nonqualified) shall be
ten (10) years. The per share exercise price for each option shall be not less than 100% of the Fair Market Value of a share of Common Stock on the date of grant of the option. When an option
is exercised, the exercise price for the shares to be purchased shall be paid in full in cash or such other method permitted by the Administrator consistent with Section 5.5. Options may only
be granted to Eligible Persons for whom the Corporation would be deemed to be an "eligible issuer of service recipient stock," as defined in Treasury Regulation 1.409A-1(b)(5)(iii)(E). 

        5.1.2    Additional Rules Applicable to
ISOs.    To the extent that the aggregate Fair Market Value (determined at the time of grant of the applicable option) of stock with respect to which ISOs first 

4

 

become
exercisable by a participant in any calendar year exceeds $100,000, taking into account both Common Stock subject to ISOs under this Plan and stock subject to ISOs under all other plans of the
Corporation or one of its Subsidiaries (or any parent or predecessor corporation to the extent required by and within the meaning of Section 422 of the Code and the regulations promulgated
thereunder), such options shall be treated as nonqualified stock options. In reducing the number of options treated as ISOs to meet the $100,000 limit, the most recently granted options shall be
reduced first. To the extent a reduction of simultaneously granted options is necessary to meet the $100,000 limit, the Administrator may, in the manner and to the extent permitted by law, designate
which shares of Common Stock are to be treated as shares acquired pursuant to the exercise of an ISO. ISOs may only be granted to employees of the Corporation or one of its subsidiaries (for this
purpose, the term "subsidiary" is used as defined in Section 424(f) of the Code, which generally requires an unbroken chain of ownership of at least 50% of the total combined voting power of
all classes of stock of each subsidiary in the chain beginning with the Corporation and ending with the subsidiary in question). There shall be imposed in any award agreement relating to ISOs such
other terms and conditions as from time to time are required in order that the option be an "incentive stock option" as that term is defined in Section 422 of the Code. No ISO may be granted to
any person who, at the time the option
is granted, owns (or is deemed to own under Section 424(d) of the Code) shares of outstanding Common Stock possessing more than 10% of the total combined voting power of all classes of stock of
the Corporation, unless the exercise price of such option is at least 110% of the Fair Market Value of the stock subject to the option and such option by its terms is not exercisable after the
expiration of five years from the date such option is granted. 

        5.1.3    Stock Appreciation Rights.    A stock
appreciation right or "SAR" is a right to receive a payment, in cash and/or Common Stock, equal to the number of shares of Common Stock being exercised
multiplied by the excess of (i) the Fair Market Value of a share of Common Stock on the date the SAR is exercised, over (ii) the Fair Market Value of a share of Common Stock on the date
the SAR was granted as specified in the applicable award agreement (the "base price"). The maximum term of a SAR shall be ten (10) years. SARs
may only be granted to Eligible Persons for whom the Corporation would be deemed to be an "eligible issuer of service recipient stock," as defined in Treasury Regulation 1.409A-1(b)(5)(iii)(E). 

        5.1.4    Restricted Shares.    

        (a)    Restrictions.    Restricted shares are shares of Common Stock subject to such restrictions on transferability,
risk of forfeiture and other restrictions, if any, as the Administrator may impose, which restrictions may lapse separately or in combination at such times, under such circumstances (including based
on achievement of performance goals and/or future service requirements), in such installments or otherwise, as the Administrator may determine at the date of grant or thereafter. Except to the extent
restricted under the terms of this Plan and the applicable award agreement relating to the restricted stock, a participant granted restricted stock shall have all of the rights of a shareholder,
including the right to vote the restricted stock and the right to receive dividends thereon (subject to any mandatory reinvestment or other requirement imposed by the Administrator). 

        (b)    Certificates for Shares.    Restricted shares granted under this Plan may be evidenced in such manner as the
Administrator shall determine. If certificates representing restricted stock are registered in the name of the participant, the Administrator may require that such certificates bear an appropriate
legend referring to the terms, conditions and restrictions applicable to such restricted stock, that the Corporation retain physical possession of the certificates, and that the participant deliver a
stock power to the Corporation, endorsed in blank, relating to the restricted stock. The Administrator may require that restricted shares are held in escrow until all restrictions lapse. 

5

 

        (c)    Dividends and Splits.    As a condition to the grant of an award of restricted stock, subject to applicable
law, the Administrator may require or permit a participant to elect that any cash dividends paid on a
share of restricted stock be automatically reinvested in additional shares of restricted stock or applied to the purchase of additional awards under this Plan or held in escrow by the Corporation
unless and until the related shares of restricted stock become vested. Unless otherwise determined by the Administrator, stock distributed in connection with a stock split or stock dividend, and other
property distributed as a dividend, shall be subject to restrictions and a risk of forfeiture to the same extent as the restricted stock with respect to which such stock or other property has been
distributed. 

        5.1.5    Restricted Stock Units.    

        (a)    Grant of Restricted Stock Units.    A restricted stock unit, or
"RSU", represents the right to receive from the Corporation on the respective scheduled vesting or payment date for such RSU, one share of Common Stock,
or the Fair Market Value of one share of Common Stock paid in cash. The vesting or payment of an award of RSUs may be subject to the attainment of specified performance goals or targets,
forfeitability provisions and such other terms and conditions as the Administrator may determine, subject to the provisions of this Plan. 

        (b)    Dividend Equivalent Accounts.    If (and only if) required by the applicable award agreement, prior to the
expiration of the applicable vesting period of an RSU, the Administrator shall pay dividend equivalent rights with respect to RSUs, in which case the Corporation shall establish an account for the
participant and reflect in that account any securities, cash or other property comprising any dividend or property distribution with respect to the shares of Common Stock underlying each RSU. Each
amount or other property credited to any such account shall be subject to the same vesting conditions as the RSU to which it relates. The participant shall be paid the amounts or other property
credited to such account upon vesting of the RSU. 

        (c)    Rights as a Shareholder.    Subject to the restrictions imposed under the terms and conditions of this Plan and
the applicable award agreement, each participant receiving RSUs shall have no rights as a shareholder with respect to such RSUs unless and until such time as shares of Common Stock are issued to the
participant. In the event an RSU is settled in cash, the participant receiving RSUs shall never receive stockholder rights with respect to such award. No shares of Common Stock shall be issued at the
time a RSU is granted, and the Company will not be required to set aside a fund for the payment of any such award. Except as otherwise provided in the applicable award agreement, shares of Common
Stock issuable under an RSU, if any, shall be treated as issued on the first date that the RSU is no longer subject to a substantial risk of forfeiture as determined for purposes of
Section 409A of the Code, and the holder shall be the owner of such shares of Common Stock on such date. An award agreement may provide that issuance of shares of Common Stock (or the
settlement of an RSU in cash) under an RSU may be deferred beyond the first date that the RSU is no longer subject to a substantial risk of forfeiture, provided that such deferral is structured in a
manner that is intended to comply with the requirements of Section 409A of the Code. 

        5.1.6    Cash Awards.    The Administrator
may, from time to time, subject to the provisions of the Plan and such other terms and conditions as it may determine, grant cash bonuses (including without limitation, discretionary awards, awards
based on objective or subjective performance criteria, awards subject to other vesting criteria or awards granted consistent with Section 5.2 below). Cash awards shall be
awarded in such amount and at such times during the term of the Plan as the Administrator shall determine. 

6

 

 

        5.1.7    Other Awards.    The other types of
awards that may be granted under this Plan include: (a) stock bonuses, performance stock, performance units, dividend equivalents, or similar rights to purchase or acquire shares, whether at a
fixed or variable price or ratio related to the Common Stock (subject to the requirements of Section 5.1.1 and in compliance with applicable laws), upon the passage of time, the occurrence of
one or more events, or the satisfaction of performance criteria or other conditions, or any combination thereof; or (b) any similar securities with a value derived from the value of or related
to the Common Stock and/or returns thereon. 

        5.2    Section 162(m) Performance-Based
Awards.    Without limiting the generality of the foregoing, any of the types of awards listed in Sections 5.1.4 through 5.1.7 above may be, and options and
SARs granted with an exercise or base price not less than the Fair Market Value of a share of Common Stock at the date of grant ("Qualifying Options"
and "Qualifying SARs," respectively) typically will be, granted as awards intended to satisfy the requirements for "performance-based compensation"
within the meaning of Section 162(m) of the Code ("Performance-Based Awards"). The grant, vesting, exercisability or payment of Performance-Based
Awards may depend (or, in the case of Qualifying Options or Qualifying SARs, may also depend) on the degree of achievement of one or more performance goals relative to a pre-established targeted level
or levels using the Business Criteria provided for below for the Corporation on a consolidated basis or for one or more of the Corporation's Subsidiaries, segments, divisions or business units, or any
combination of the foregoing. Such criteria may be evaluated on an absolute basis or relative to prior periods, industry peers, or stock market indices. Any Qualifying Option or Qualifying SAR shall
be subject to the requirements of Section 5.2.1 and 5.2.3 in order for such award to satisfy the requirements for "performance-based compensation" under Section 162(m) of the Code. Any
other Performance-Based Award shall be subject to all of the following provisions of this Section 5.2. 

        5.2.1    Class; Administrator.    The eligible class of persons for
Performance-Based Awards under this Section 5.2 shall be officers and employees of the Corporation or one of its Subsidiaries. The Administrator approving Performance-Based Awards or making any
certification required pursuant to Section 5.2.4 must be constituted as provided in Section 3.1 for awards that are intended as performance-based compensation under Section 162(m)
of the Code. 

        5.2.2    Performance Goals.    The specific performance goals for
Performance-Based Awards (other than Qualifying Options and Qualifying SARs) shall be based on such business criteria as selected by the Administrator in its sole discretion
("Business Criteria") from the following: (1) total shareholder return; (2) net revenues (3) return on total stockholders' equity;
(4) earnings per share of Company Stock; (5) net income (before or after taxes); (6) return on assets; (7) return on investment; (8) return on capital;
(9) economic value added; (10) operating budget or margin; (11) contribution margin; (12) earnings from continuing operations; levels of expense, cost or liability;
(13) earnings before all or any interest, taxes, depreciation, amortization and/or exploration expense ("EBIT", "EBITA", "EBITDA" or "EBITDAX"); (14) debt reduction; (15) market
share; (16) reserve growth; (17) reserve replacement; (18) production growth; (19) finding/development costs; (20) lease operating expense; (21) captured
prospects; (22) prospecting licenses signed; (23) operated prospects matured to drill ready; (24) drilling programs commenced; (25) drillable prospects, capabilities and
critical path items established; (26) third-party capital sourcing; (27) captured net risked resource potential; (28) acquisition cost efficiency; (29) central lease sale
position; (30) acquisitions of oil and gas interests; (31) increases in proved, probable or possible reserves; (32) finding and development costs; (33) overhead costs;
(34) general and administration expense; (35) any combination of, or a specified increase or decrease of, one or more of the foregoing over a specified period; (36) such other
criteria as the stockholders of the Company may approve; in each case as applicable, as determined in accordance with generally accepted accounting principles; and (37) any combination of the
foregoing. To qualify awards as performance-based under Section 162(m), the applicable Business 

7

 

Criterion
(or Business Criteria, as the case may be) and specific performance goal or goals ("targets") must be established and approved by the Administrator during the first 90 days of the
performance period (and, in the case of performance periods of less than one year, in no event after 25% or more of the performance period has elapsed) and while performance relating to such target(s)
remains substantially uncertain within the meaning of Section 162(m) of the Code. Performance targets shall be adjusted to mitigate the unbudgeted impact of material, unusual or nonrecurring
gains and losses, accounting changes or other extraordinary events not foreseen at the time the targets were set unless the Administrator provides otherwise at the time of establishing the targets;
provided that the Administrator may not make any adjustment to the extent it would adversely affect the qualification of any compensation payable under such performance targets as "performance-based
compensation" under Section 162(m) of Code. The applicable performance measurement period may not be less than 3 months nor more than 10 years. 

        5.2.3    Form of Payment.    Grants or awards intended to qualify
under this Section 5.2 may be paid in cash or shares of Common Stock or any combination thereof. 

        5.2.4    Certification of Payment.    Before any Performance-Based
Award under this Section 5.2 (other than Qualifying Options and Qualifying SARs) is paid and to the extent required to qualify the award as performance-based compensation within the meaning of
Section 162(m) of the Code, the Administrator must certify in writing that the performance target(s) and any other material terms of the Performance-Based Award were in fact timely satisfied. 

        5.2.5    Reservation of Discretion.    The
Administrator will have the discretion to determine the restrictions or other limitations of the individual awards granted under this Section 5.2 including the authority to reduce awards,
payouts or vesting or to pay no awards, in its sole discretion, if the Administrator preserves such authority at the time of grant by language to this effect in its authorizing resolutions or
otherwise. 

        5.2.6    Expiration of Grant Authority.    As
required pursuant to Section 162(m) of the Code and the regulations promulgated thereunder, the Administrator's authority to grant new awards that are intended to qualify as performance-based
compensation within the meaning of Section 162(m) of the Code (other than Qualifying Options and Qualifying SARs) shall terminate upon the first meeting of the Corporation's stockholders that
occurs in the fifth year following the year in which the Corporation's stockholders first approve this Plan (the "162(m) Term"). 

        5.2.7    Compensation Limitations.    The
maximum aggregate number of shares of Common Stock that may be issued to any Eligible Person during the term of this Plan pursuant to Qualifying Options and Qualifying SARs may not exceed 4,500,000
shares of Common Stock. The maximum aggregate number of shares of Common Stock that may be issued to any Eligible Person pursuant to Performance-Based Awards granted during the 162(m) Term (other than
cash awards granted pursuant to Section 5.1.6 and Qualifying Options or Qualifying SARs) may not exceed 1,500,000 shares of Common Stock. The maximum amount that may be paid to any Eligible
Person pursuant to Performance-Based Awards granted pursuant to Sections 5.1.6 (cash awards) during the 162(m) Term may not exceed $15,000,000. 

        5.3    Award Agreements.    Each award shall be evidenced by a written
or electronic award agreement in the form approved by the Administrator and, if required by the Administrator, executed or accepted by the recipient of the award. The Administrator may authorize any
officer of the Corporation (other than the particular award recipient) to execute any or all award agreements on behalf of the Corporation (electronically or otherwise). The award agreement shall set
forth the material terms and conditions of the award as established by the Administrator consistent with the express limitations of this Plan. 

8

 

        5.4    Deferrals and Settlements.    Payment of awards may be in the
form of cash, Common Stock, other awards or combinations thereof as the Administrator shall determine, and with such restrictions as it
may impose. The Administrator may also require or permit participants to elect to defer the issuance of shares of Common Stock or the settlement of awards in cash under such rules and procedures as it
may establish under this Plan. The Administrator may also provide that deferred settlements include the payment or crediting of interest or other earnings on the deferral amounts, or the payment or
crediting of dividend equivalents where the deferred amounts are denominated in shares. All mandatory or elective deferrals of the issuance of shares of Common Stock or the settlement of cash awards
shall be structured in a manner that is intended to comply with the requirements of Section 409A of the Code. 

        5.5    Consideration for Common Stock or Awards.    The purchase price
for any award granted under this Plan or the Common Stock to be delivered pursuant to an award, as applicable, may be paid by means of any lawful consideration as determined by the Administrator and
subject to compliance with applicable laws, including, without limitation, one or a combination of the following methods: 

	•
	services rendered by the recipient of such award; 

	•
	cash, check payable to the order of the Corporation, or electronic funds transfer;  

	•
	notice and third party payment in such manner as may be authorized by the Administrator;  

	•
	the delivery of previously owned shares of Common Stock that are fully vested and unencumbered;  

	•
	by a reduction in the number of shares otherwise deliverable pursuant to the award; or  

	•
	subject to such procedures as the Administrator may adopt, pursuant to a "cashless exercise" with a third party who
provides financing for the purposes of (or who otherwise facilitates) the purchase or exercise of awards. 

        In
the event that the Administrator allows a participant to exercise an award by delivering shares of Common Stock previously owned by such participant and unless otherwise expressly
provided by the Administrator, any shares delivered which were initially acquired by the participant from the Corporation (upon exercise of a stock option or otherwise) must have been owned by the
participant at least six months as of the date of delivery (or such other period as may be required by the Administrator in order to avoid adverse accounting treatment). Shares of Common Stock used to
satisfy the exercise price of an option shall be valued at their Fair Market Value on the date of exercise. The Corporation will not be obligated to deliver any shares unless and until it receives
full payment of the exercise or purchase price therefor and any related withholding obligations under Section 8.5 and any other conditions to exercise or purchase, as established from time to
time by the Administrator, have been satisfied. Unless otherwise expressly provided in the applicable award agreement, the Administrator may at any time eliminate or limit a participant's ability to
pay the purchase or exercise price of any award by any method other than cash payment to the Corporation. 

        5.6    Definition of Fair Market Value.    For purposes of this Plan
"Fair Market Value" of a share of Company Stock, as of a date of determination, shall mean (i) the closing sales price per share of Company Stock
on the U.S. national securities exchange or over-the-counter market on which such stock is principally traded on the date of determination or (ii) if the shares of Company Stock are not then
listed on any national securities exchange or traded in an over-the-counter market or the value of such shares is not otherwise determinable, such value as reasonably determined by the Administrator
in good faith and, to the extent necessary, in accordance with the requirements of Code Section 409A. 

9

 

        5.7    Transfer Restrictions.    

        5.7.1    Limitations on Exercise and Transfer.    Unless otherwise
expressly provided in (or pursuant to) this Section 5.7, by applicable law and by the award agreement, as the same may be amended, (a) all awards are non-transferable and shall not be
subject in any manner to sale, transfer, anticipation, alienation, assignment, pledge, encumbrance or charge; (b) awards shall be exercised only by the participant; and (c) amounts
payable or shares issuable pursuant to any award shall be delivered only to (or for the account of) the participant. 

        5.7.2    Exceptions.    The Administrator may permit awards to be
exercised by and paid to, or otherwise transferred to, other persons or entities pursuant to such conditions and procedures, including limitations on subsequent transfers, as the Administrator may, in
its sole discretion, establish in writing (provided that any such transfers of ISOs shall be limited to the extent permitted under the federal tax laws governing ISOs). Any permitted transfer shall be
subject to compliance with applicable federal and state securities laws. 

        5.7.3    Further Exceptions to Limits on Transfer.    The exercise and
transfer restrictions in Section 5.7.1 shall not apply to: 

        (a)   transfers
to the Corporation, 

        (b)   the
designation of a beneficiary to receive benefits in the event of the participant's death or, if the participant has died, transfers to or exercise by the
participant's beneficiary, or, in the absence of a validly designated beneficiary, transfers by will or the laws of descent and distribution, 

        (c)   subject
to any applicable limitations on ISOs, transfers to a family member (or former family member) pursuant to a domestic relations order if approved or ratified by
the Administrator, 

        (d)   subject
to any applicable limitations on ISOs, if the participant has suffered a disability, permitted transfers or exercises on behalf of the participant by his or her
legal representative, or 

        (e)   the
authorization by the Administrator of "cashless exercise" procedures with third parties who provide financing for the purpose of (or who otherwise facilitate) the
exercise of awards consistent with applicable laws and the express authorization of the Administrator. 

        5.8    International Awards.    One or more awards may be granted to
Eligible Persons who provide services to the Corporation or one of its Subsidiaries outside of the United States. Any awards granted to such persons may, if deemed necessary or advisable by the
Administrator, be granted pursuant to the terms and conditions of any applicable sub-plans, if any, appended to this Plan and approved by the Administrator. 

6.     EFFECT OF TERMINATION OF SERVICE ON AWARDS  

        6.1    Termination of Employment.    

        6.1.1    Administrator Determination.    The Administrator shall
establish the effect of a termination of employment or service on the rights and benefits under each award under this Plan and in so doing may make distinctions based upon, inter alia, the cause of
termination and type of award. If the participant is not an employee of the Corporation or one of its Subsidiaries and provides other services to the Corporation or one of its Subsidiaries, the
Administrator shall be the sole judge for purposes of this Plan (unless a contract or the award agreement otherwise provides) of whether the participant continues to render services to the Corporation
or one of its Subsidiaries and the date, if any, upon which such services shall be deemed to have terminated. 

10

 

        6.1.2    Stock Options and SARs.    For awards of stock options or
SARs, unless the award agreement provides otherwise, the exercise period of such options or SARs shall expire: (1) three months after the last day that the participant is employed by or
provides services to the Corporation or a Subsidiary (provided; however, that in the event of the participant's death during this period, those persons entitled to exercise the option or SAR pursuant
to the laws of descent and distribution shall have one year following the date of death within which to exercise such option or SAR); (2) in the case of a participant whose termination of
employment is due to death or disability (as defined in the applicable award agreement), 12 months after the last day that the participant is employed by or provides services to the Corporation
or a Subsidiary; and (3) immediately upon a participant's termination for "cause." The Administrator will, in its absolute discretion, determine the effect of all matters and questions relating
to a termination of employment, including, but not by way of limitation, the question of whether a leave of absence constitutes a termination of employment and whether a participant's termination is
for "cause." 

        The
term "cause" shall have the meaning assigned to such term in any individual employment or severance agreement or award agreement with
the participant or, if no such agreement exists or if such agreement does not define "cause," cause shall mean (i) participant's act(s) of gross negligence or willful misconduct in the course
of participant's employment that is or could reasonably be expected to be materially injurious to the Corporation or any of its Subsidiaries, (ii) willful failure or refusal by participant to
perform in any material respect his or her duties or responsibilities, (iii) misappropriation by participant of any assets of the Corporation or any of its Subsidiaries,
(iv) embezzlement or fraud committed by participant, or at his or her direction, (v) participant's conviction of, or pleading "guilty" or "no contest" to a felony under United States
state or federal law. 

        6.1.3    Restricted Stock and RSUs.    For awards of restricted
shares, unless the award agreement provides otherwise, restricted shares that are subject to restrictions at the time that a participant whose employment or service is terminated shall be forfeited
and reacquired by the Corporation; provided that, the Administrator may provide, by rule or regulation or in any award agreement, or may determine in
any individual case, that restrictions or forfeiture conditions relating to restricted shares shall be waived in whole or in part in the event of a termination of employment or service, and the
Administrator may in other cases waive in whole or in part the forfeiture of restricted shares. Similar rules shall apply in respect of RSUs. 

        6.2    Events Not Deemed Terminations of Service.    Unless the
express policy of the Corporation or one of its Subsidiaries, or the Administrator, otherwise provides, the employment relationship shall not be considered terminated in the case of (a) sick
leave, (b) military leave, or (c) any other leave of absence authorized by the Corporation or one of its Subsidiaries, or the Administrator; provided that unless reemployment upon the
expiration of such leave is guaranteed by contract or law, such leave is for a period of not more than 3 months. In the case of any employee of the Corporation or one of its Subsidiaries on an
approved leave of absence, continued vesting of the award while on leave from the employ of the Corporation or one of its Subsidiaries may be suspended until the employee returns to service, unless
the Administrator otherwise provides or applicable law otherwise requires. In no event shall an award be exercised after the expiration of the term set forth in the award agreement. 

        6.3    Effect of Change of Subsidiary Status.    For purposes of this
Plan and any award, if an entity ceases to be a Subsidiary of the Corporation, a termination of employment or service shall be deemed to have occurred with respect to each Eligible Person in respect
of such Subsidiary who does not continue as an Eligible Person in respect of another entity within the Corporation or another Subsidiary that continues as such after giving effect to the transaction
or other event giving rise to the change in status. 

11

 

7.     ADJUSTMENTS; ACCELERATION  

        7.1    Adjustments.    Upon or in contemplation of any of the
following events described in this Section 7.1; any reclassification, recapitalization, stock split (including a stock split in the form of a stock dividend) or reverse stock split
("stock split"); any merger, arrangement, combination, consolidation, or other reorganization; any spin-off, split-up, or similar extraordinary dividend
distribution in respect of the Common Stock (whether in the form of securities or property); any exchange of Common Stock or other securities of the Corporation, or any similar, unusual or
extraordinary corporate transaction in respect of the Common Stock; then the Administrator shall in such manner, to such extent and at such time as it deems appropriate and equitable in the
circumstances (but subject to compliance with applicable laws and stock exchange requirements) proportionately adjust any or all of (1) the number and type of shares of Common Stock (or other
securities) that thereafter may be made the subject of awards (including the number of shares provided for in this Plan), (2) the number, amount and type of shares of Common Stock (or other
securities or property) subject to any or all outstanding awards, (3) the grant, purchase, or exercise price (which term includes the base price of any SAR or similar right) of any or all
outstanding awards, (4) the securities, cash or other property deliverable upon exercise or payment of any outstanding awards, and (5) the 162(m) compensation limitations set forth in
Section 5.2.7 and (subject to Section 8.8.3(a)) the performance standards applicable to any outstanding
awards (provided that no adjustment shall be allowed to the extent inconsistent with the requirements of Code section 162(m)). Any adjustment made pursuant to this Section 7.1 shall be
made in a manner that, in the good faith determination of the Administrator, will not likely result in the imposition of additional taxes or interest under Section 409A of the Code. With
respect to any award of an ISO, the Administrator may make such an adjustment that causes the option to cease to qualify as an ISO without the consent of the affected participant. 

        7.2    Change in Control.    Upon a Change in Control, each
then-outstanding option and SAR shall automatically become fully vested, all restricted shares and restricted stock units then outstanding shall automatically fully vest free of restrictions, and each
other award granted under this Plan that is then outstanding shall automatically become vested in full (assuming all performance targets have been achieved at 100% of target) and payable to the holder
of such award unless the Administrator has made appropriate provision for the substitution, assumption, exchange or other continuation of the award
pursuant to the Change in Control. Notwithstanding the foregoing, the Administrator, in its sole and absolute discretion, may choose (in an award agreement or otherwise) to provide for full or partial
accelerated vesting of any award upon a Change In Control (or upon any other event or other circumstance related to the Change in Control, such as an involuntary termination of employment occurring
after such Change in Control, as the Administrator may determine), irrespective of whether any such award has been substituted, assumed, exchanged or otherwise continued pursuant to the Change in
Control. 

        For
purposes of this Plan, "Change in Control" shall be deemed to have occurred if the event set forth in any one of the following
paragraphs shall have occurred: 

          (i)  any
Person (as defined below) is or becomes the "Beneficial Owner" (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of the Corporation (not including in the securities Beneficially Owned by such Person any securities acquired directly from the Corporation) representing
40% or more of the Corporation's then outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (A) of
paragraph (iii) below; or 

         (ii)  the
following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on the Effective Date (as defined in
Section 8.6.1), constitute the Board and any new director (other than a director whose initial assumption of office 

12

 

is
in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Corporation) whose appointment or
election by the Board or nomination for election by the Corporation's stockholders was approved or recommended by a vote of at least a two-thirds of the directors then still in office who either were
directors on the Effective Date or whose appointment, election or nomination for election was previously so approved or recommended; or 

        (iii)  there
is consummated a merger or consolidation of the Corporation with any other corporation other than (A) a merger or consolidation which would result in the
voting securities of the Corporation outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities
of the surviving entity or any parent thereof) at least 50% of the combined voting power of the voting securities of the Corporation or such surviving entity or any parent thereof outstanding
immediately after such merger or consolidation, or (B) a merger or consolidation effected to implement a re-capitalization of the Corporation (or similar transaction) in which no Person is or
becomes the Beneficial Owner, directly or indirectly, of securities of the Corporation (not including in the securities Beneficially Owned by such Person any securities acquired directly from the
Corporation) representing 40% or more of the combined voting power of the Corporation's then outstanding securities; or 

        (iv)  the
stockholders of the Corporation approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or
disposition by the Corporation of all or substantially all of the Corporation's assets, other than a sale or disposition by the Corporation of all or substantially all of the Corporation's assets to
an entity at least 75% of the combined voting power of the voting securities of which are owned by Persons in substantially the same proportions as their ownership of the Corporation immediately prior
to such sale. 

        Notwithstanding
the foregoing, a Change in Control shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately
following which the holders of Common Stock immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity which owns all
or substantially all of the assets of the Corporation immediately following such transaction or series of transactions. No compensation that has been deferred for purposes of Section 409A of
the Code shall be payable as a result of a Change in Control unless the Change in Control qualifies as a change in ownership or effective control of the Corporation within the meaning of
Section 409A of the Code. 

        For
purpose of this Section, the term "Person" shall have the meaning set forth in Section 3(a)(9) of the Exchange Act, except that
such term shall not include (i) the Corporation, (ii) a trustee or other
fiduciary holding securities under an employee benefit plan of the Corporation, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a
corporation owned, directly or indirectly, by the stockholders of the Corporation in substantially the same proportions as their ownership of stock of the Corporation. 

        7.3    Early Termination of Awards.    Any award that has been
accelerated as required or permitted by Section 7.2 upon a Change in Control (or would have been so accelerated but for Section 7.4 or 7.5) shall terminate upon such event, subject to
any provision that has been expressly made by the Administrator, through a plan of reorganization or otherwise, for the survival, substitution, assumption, exchange or other continuation of such award
and provided that, in the case of options and SARs that will not survive, be substituted for, assumed, exchanged, or otherwise continued in the transaction, the holder of such award shall be given
reasonable advance notice of the impending termination and a reasonable opportunity to exercise his or her outstanding options and SARs in accordance with their terms before the termination of such
awards (except that in no case shall more than ten days' notice of accelerated vesting and the impending termination be required and any acceleration may be made contingent upon the actual occurrence
of the event). 

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        The
Administrator may make provision for payment in cash or property (or both) in respect of awards terminated pursuant to this section as a result of the Change in Control and may adopt
such valuation methodologies for outstanding awards as it deems reasonable and, in the case of options, SARs or similar rights, and without limiting other methodologies, may base such settlement
solely upon the excess if any of the per share amount payable upon or in respect of such event over the exercise or base price of the award. 

        7.4    Other Acceleration Rules.    Any acceleration of awards
pursuant to this Section 7 shall comply with applicable legal and stock exchange requirements and, if necessary to accomplish the purposes of the acceleration or if the circumstances require,
may be deemed by the Administrator to occur a limited period of time not greater than 30 days before the event. Without limiting the generality of the foregoing, the Administrator may deem an
acceleration to occur immediately prior to the applicable event and/or reinstate the original terms of an award if an event giving rise to the acceleration does not occur. Notwithstanding any other
provision of the Plan to the contrary, the Administrator may override the provisions of Section 7.2, 7.3, and/or 7.5 by express provision in the award agreement or otherwise. The portion of any
ISO accelerated pursuant to Section 7.2 or any other action permitted hereunder shall remain exercisable as an ISO only to the extent the applicable $100,000 limitation on ISOs is not exceeded.
To the extent exceeded, the accelerated portion of the option shall be exercisable as a nonqualified stock option under the Code. 

        7.5    Possible Rescission of Acceleration.    If the vesting of an
award has been accelerated expressly in anticipation of an event and the Administrator later determines that the event will not occur, the Administrator may rescind the effect of the acceleration as
to any then outstanding and unexercised or otherwise unvested awards; provided, that, in the case of any compensation that has been deferred for
purposes of Section 409A of the Code, the Administrator determines that such rescission will not likely result in the imposition of additional tax or interest under Code Section 409A. 

8.     OTHER PROVISIONS  

        8.1    Compliance with Laws.    This Plan, the granting and vesting of
awards under this Plan, the offer, issuance and delivery of shares of Common Stock, the payment of money under this Plan or under awards are subject to compliance with all applicable federal and state
laws, rules and regulations and to such approvals by any applicable stock exchange listing, regulatory or governmental authority as may, in the opinion of counsel for the Corporation, be necessary or
advisable in connection therewith. The person acquiring any securities under this Plan will, if requested by the Corporation or one of its Subsidiaries, provide such assurances and representations to
the Corporation or one of its Subsidiaries as the Administrator may deem necessary or desirable to assure compliance with all applicable legal and accounting requirements. 

        8.2    Future Awards/Other Rights.    No person shall have any claim
or rights to be granted an award (or additional awards, as the case may be) under this Plan, subject to any express contractual rights (set forth in a document other than this Plan) to the contrary. 

        8.3    No Employment/Service Contract.    Nothing contained in this
Plan (or in any other documents under this Plan or in any award) shall confer upon any Eligible Person or other participant any right to continue in the employ or other service of the Corporation or
one of its Subsidiaries, constitute any contract or agreement of employment or other service or affect an employee's status as an employee at will, nor shall interfere in any way with the right of the
Corporation or one of its Subsidiaries to change a person's compensation or other benefits, or to terminate his or her employment or other service, with or without cause. Nothing in this
Section 8.3, however, is intended to adversely affect any express independent right of such person under a separate employment or service contract other than an award agreement. 

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        8.4    Plan Not Funded.    Awards payable under this Plan shall be
payable in shares or from the general assets of the Corporation, and no special or separate reserve, fund or deposit shall be made to assure payment of such awards. No participant, beneficiary or
other person shall have any right, title or interest in any fund or in any specific asset (including shares of Common Stock, except as expressly otherwise provided) of the Corporation or one of its
Subsidiaries by reason of any award hereunder. Neither the provisions of this Plan (or of any related documents), nor the creation or adoption of this Plan, nor any action taken pursuant to the
provisions of this Plan shall create, or be construed to create, a trust of any kind or a fiduciary relationship between the Corporation or one of its Subsidiaries and any participant, beneficiary or
other person. To the extent that a participant, beneficiary or other
person acquires a right to receive payment pursuant to any award hereunder, such right shall be no greater than the right of any unsecured general creditor of the Corporation. 

        8.5    Tax Withholding.    Upon any exercise, vesting, or payment of
any award, the Corporation or one of its Subsidiaries shall have the right at its option to: 

        (a)   require
the participant (or the participant's personal representative or beneficiary, as the case may be) to pay or provide for payment of at least the minimum amount of
any taxes which the Corporation or one of its Subsidiaries may be required to withhold with respect to such award event or payment; or 

        (b)   deduct
from any amount otherwise payable in cash to the participant (or the participant's personal representative or beneficiary, as the case may be) the minimum amount
of any taxes which the Corporation or one of its Subsidiaries may be required to withhold with respect to such cash payment. 

        In
any case where a tax is required to be withheld in connection with the delivery of shares of Common Stock under this Plan, the Administrator may in its sole discretion (subject to
Section 8.1) grant (either at the time of the award or thereafter) to the participant the right to elect, pursuant to such rules and subject to such conditions as the Administrator may
establish, to have the Corporation reduce the number of shares to be delivered by (or otherwise reacquire) the appropriate number of shares, valued in a consistent manner at their Fair Market Value or
at the sales price in accordance with authorized procedures for cashless exercises, necessary to satisfy the minimum applicable withholding obligation on exercise, vesting or payment. In no event
shall the shares withheld exceed the minimum whole number of shares required for tax withholding under applicable law. 

        8.6    Effective Date, Termination and Suspension, Amendments.    

        8.6.1    Effective Date and Termination.    This Plan was approved by
the Board and became effective on May 27, 2014 (the "Effective Date"). Unless earlier terminated by the Board, this Plan shall terminate at the
close of business on May 27, 2024. After the termination of this Plan either upon such stated expiration date or its earlier termination by the Board, no additional awards may be granted under
this Plan, but previously granted awards (and the authority of the Administrator with respect thereto, including the authority to amend such awards) shall remain outstanding in accordance with their
applicable terms and conditions and the terms and conditions of this Plan. 

        8.6.2    Board Authorization.    The Board may, at any time, terminate
or, from time to time, amend, modify or suspend this Plan, in whole or in part. No awards may be granted during any period that the Board suspends this Plan. 

        8.6.3    Stockholder Approval.    To the extent then required by
applicable law or any applicable stock exchange, or required under Sections 162, 422 or 424 of the Code to preserve the intended tax consequences of this Plan, or deemed necessary or advisable
by the Board, this Plan and any amendment to this Plan shall be subject to stockholder approval. 

15

 

        8.6.4    Amendments to Awards.    Without limiting any other express
authority of the Administrator under (but subject to) the express limits of this Plan, the Administrator by agreement or resolution may waive conditions of or limitations on awards to participants
that the Administrator in the prior exercise of its discretion has imposed, without the consent of a participant, and (subject to the requirements of Sections 3.2 and 8.6.5) may make other
changes to the terms and conditions of awards. Any amendment or other action that would constitute a repricing of an award is subject to the limitations set forth in Section 3.2(g). 

        8.6.5    Limitations on Amendments to Plan and Awards.    No
amendment, suspension or termination of this Plan or change of or affecting any outstanding award shall, without written consent of the participant, affect in any manner materially adverse to the
participant any rights or benefits of the participant or obligations of the Corporation under any award granted under this Plan prior to the effective date of such change. Changes, settlements and
other actions contemplated by Section 7 shall not be deemed to constitute changes or amendments for purposes of this Section 8.6. 

        8.7    Privileges of Stock Ownership.    Except as otherwise expressly
authorized by the Administrator or this Plan, a participant shall not be entitled to any privilege of stock ownership as to any shares of Common Stock not actually delivered to and held of record by
the participant. Except as expressly provided herein, no adjustment will be made for dividends or other rights as a stockholder for which a record date is prior to such date of delivery. 

        8.8    Governing Law; Construction; Severability.    

        8.8.1    Choice of Law.    This Plan, the awards, all documents
evidencing awards and all other related documents shall be governed by, and construed in accordance with the laws of the State of Delaware. 

        8.8.2    Severability.    If a court of competent jurisdiction holds
any provision invalid and unenforceable, the remaining provisions of this Plan shall continue in effect. 

        8.8.3    Plan Construction.    

        (a)    Rule 16b-3.    It is the intent of the Corporation that the awards and transactions permitted by awards
be interpreted in a manner that, in the case of participants who are or may be subject to Section 16 of the Exchange Act, qualify, to the maximum extent compatible with the express terms of the
award, for exemption from matching liability under Rule 16b-3 promulgated under the Exchange Act. Notwithstanding the foregoing, the Corporation shall have no liability to any participant for
Section 16 consequences of awards or events under awards if an award or event does not so qualify. 

        (b)    Section 162(m).    Awards under Sections 5.1.4 through 5.1.7 to persons described in
Section 5.2 that are either granted or become vested, exercisable or payable based on attainment of one or more performance goals related to the Business Criteria, as well as Qualifying Options
and Qualifying SARs granted to persons described in Section 5.2, that are approved by a committee composed solely of two or more outside directors (as this requirement is applied under
Section 162(m) of the Code) shall be deemed to be intended as performance-based compensation within the meaning of Section 162(m) of the Code unless such committee provides otherwise at
the time of grant of the award. It is the further intent of the Corporation that (to the extent the Corporation or one of its Subsidiaries or awards under this Plan may be or become subject to
limitations on deductibility under Section 162(m) of the Code) any such awards and any other Performance-Based Awards under Section 5.2 that are granted to or held by a person subject to
Section 162(m) will qualify as performance-based compensation or otherwise be exempt from deductibility limitations under Section 162(m). 

16

 

        (c)    Code Section 409A Compliance.    The Board intends that, except as may be otherwise determined by the
Administrator, any awards under the Plan are either exempt from or satisfy the requirements of Section 409A of the Code and related regulations and Treasury pronouncements
("Section 409A") to avoid the imposition of any taxes, including additional income or penalty taxes, thereunder. If the Administrator determines
that an award, award agreement, acceleration, adjustment to the terms of an award, payment, distribution, deferral election, transaction or any other action or arrangement contemplated by the
provisions of the Plan would, if undertaken, cause a participant's award to become subject to Section 409A, unless the Administrator expressly determines otherwise, such award, award agreement,
payment, acceleration, adjustment, distribution, deferral election, transaction or other action or arrangement shall not be undertaken and the related provisions of the Plan and/or award agreement
will be deemed modified or, if necessary, rescinded in order to comply with the requirements of Section 409A to the extent determined by the Administrator without the consent of or notice to
the participant. Notwithstanding the foregoing, neither the Company nor the Administrator shall have any obligation to take any action to prevent the assessment of any excise tax or penalty on any
participant under Section 409A and neither the Company nor the Administrator will have any liability to any participant for such tax or penalty. 

        (d)    No Guarantee of Favorable Tax Treatment.    Although the Company intends that awards under the Plan will be
exempt from, or will comply with, the requirements of Section 409A of the Code, the Company does not warrant that any award under the Plan will qualify for favorable tax treatment under
Section 409A of the Code or any other provision of federal, state, local or foreign law. The Company shall not be liable to any participant for any tax, interest or penalties the participant
might owe as a result of the grant, holding, vesting, exercise or payment of any award under the Plan 

        8.9    Captions.    Captions and headings are given to the sections
and subsections of this Plan solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of this Plan or
any provision thereof. 

        8.10    Stock-Based Awards in Substitution for Stock Options or Awards Granted by Other
Corporation.    Awards may be granted to Eligible Persons in substitution for or in connection with an assumption of employee stock options, SARs, restricted stock or
other stock-based awards granted by other entities to persons who are or who will become Eligible Persons in respect of the Corporation or one of its Subsidiaries, in connection with a distribution,
arrangement, business combination, merger or other reorganization by or with the granting entity or an affiliated entity, or the acquisition by the Corporation or one of its Subsidiaries, directly or
indirectly, of all or a substantial part of the stock or assets of the employing entity. The awards so granted need not comply with other specific terms of this Plan, provided the awards reflect only
adjustments giving effect to the assumption or substitution consistent with the conversion applicable to the Common Stock in the transaction and any change in the issuer of the security. Any shares
that are delivered and any awards that are granted by, or become obligations of, the Corporation, as a result of the assumption by the Corporation of, or in substitution for, outstanding awards
previously granted by an acquired company (or previously granted by a predecessor employer (or direct or indirect parent thereof) in the case of persons that become employed by the Corporation or one
of its Subsidiaries in connection with a business or asset acquisition or similar transaction) shall not be counted against the Share Limit or other limits on the number of shares available for
issuance under this Plan, except as may otherwise be provided by the Administrator at the time of such assumption or substitution or as may be required to comply with the requirements of any
applicable stock exchange. 

17

 

        8.11    Non-Exclusivity of Plan.    Nothing in this Plan shall limit
or be deemed to limit the authority of the Board or the Administrator to grant awards or authorize any other compensation, with or without reference to the Common Stock, under any other plan or
authority. 

        8.12    No Corporate Action Restriction.    The existence of this
Plan, the award agreements and the awards granted hereunder shall not limit, affect or restrict in any way the right or power of the Board or the stockholders of the Corporation to make or authorize:
(a) any adjustment, recapitalization,
reorganization or other change in the capital structure or business of the Corporation or any Subsidiary, (b) any merger, arrangement, business combination, amalgamation, consolidation or
change in the ownership of the Corporation or any Subsidiary, (c) any issue of bonds, debentures, capital, preferred or prior preference stock ahead of or affecting the capital stock (or the
rights thereof) of the Corporation or any Subsidiary, (d) any dissolution or liquidation of the Corporation or any Subsidiary, (e) any sale or transfer of all or any part of the assets
or business of the Corporation or any Subsidiary, or (f) any other corporate act or proceeding by the Corporation or any Subsidiary. No participant, beneficiary or any other person shall have
any claim under any award or award agreement against any member of the Board or the Administrator, or the Corporation or any employees, officers or agents of the Corporation or any Subsidiary, as a
result of any such action. 

        8.13    Other Corporation Benefit and Compensation
Programs.    Payments and other benefits received by a participant under an award made pursuant to this Plan shall not be deemed a part of a participant's
compensation for purposes of the determination of benefits under any other employee welfare or benefit plans or arrangements, if any, provided by the Corporation or any Subsidiary, except where the
Administrator expressly otherwise provides or authorizes in writing or except as otherwise specifically set forth in the terms and conditions of such other employee welfare or benefit plan or
arrangement. Awards under this Plan may be made in addition to, in combination with, as alternatives to or in payment of grants, awards or commitments under any other plans or arrangements of the
Corporation or its Subsidiaries. 

        8.14    Non-Competition, Code of Ethics and Clawback Policy.    By
accepting awards and as a condition to the exercise of awards and the enjoyment of any benefits of the Plan, including participation therein, each participant agrees to be bound by and subject to
non-competition, confidentiality and invention ownership agreements acceptable to the Administrator and the Corporation's code of ethics policy and other policies applicable to such participant as is
in effect from time to time. Awards shall be subject to any clawback policy adopted by the Corporation from time to time. 

*      *      *      *      *  

        As adopted by the Board of Directors of Triangle Petroleum Corporation on May 27, 2014. 

18

QuickLinks

Exhibit 10.1

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