Document:

Exhibit 10.1

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT
This First Amendment (this “Amendment”) to the Employment Agreement dated as of January 1, 2018 (the “Agreement”) by and between Randall J. Scott (the “Employee”) and Rare Element Resources, Inc., a Wyoming corporation (the “Company”) is made and entered into effective as of June 27, 2022 (the “Amendment Effective Date”).
RECITALS
WHEREAS, the Employee and the Company are party to the Agreement, pursuant to which the Employee serves as the President and Chief Executive Officer of the Company; and
WHEREAS, the Employee intends to retire from the Company, and the parties mutually desire to arrange for the retirement to be under certain terms and conditions intended to provide for a smooth transition of the Employee’s duties and responsibilities to the Employee’s successor.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements contained herein, the parties agree as follows:
1.Section 1.1 of the Agreement is hereby amended by adding the following sentence at the end of Section 1.1:
“Until the earlier of (x) the Retirement Date (as defined below), or (y) the CEO Succession Date (as defined below), the Employee shall continue to fully execute  the responsibilities, duties, and authority attendant to his position as described in this Section 1.1;  and the Employee shall perform such succession planning and transition activities as are reasonably requested by the Board, including, but not limited to, using reasonable efforts to ensure a smooth transition of his duties to the successor Chief Executive Officer or other officers of the Company.”
2.Section 2 of the Agreement is hereby amended and restated in its entirety as follows:
“2.Period of Employment.  The Employee shall be employed in the position set forth above as of the Effective Date and shall continue in such position until the earliest of (i) December 31, 2022 (the “Retirement Date”), (ii) the date on which the Employee’s successor as Chief Executive Officer commences employment with the Company (the “CEO Succession Date”), or (iii) the date the Employee’s employment is terminated by either the Company or the Employee pursuant to Section 7 of the  Agreement.”  
3.  Section 7 of the Agreement is hereby amended by adding a new Section 7.6 which shall read as follows:
“7.6Retirement.  Unless earlier terminated pursuant to Section 7, the Employee’s employment with the Company shall end on the earlier of (i) the Retirement Date or (ii) the CEO Succession Date, as set forth in Section 2.  Upon such termination pursuant to this Section 7.6, the Company shall pay or provide to the Employee the Accrued Obligations 

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and, subject to the Employee’s execution of  the Consulting Agreement substantially in the form attached as Exhibit A to this Amendment, and provided the Employee executes the Release in accordance with Section 7.8 below, the Company shall also pay to Employee a severance payment equal to one year of the Employee’s Base Salary as in effect on the date of termination. Such amount shall be paid in a lump sum no later than the thirtieth (30th) day after the earlier of the CEO Succession Date or the Retirement Date.
4.Sections 7.6, 7.7 and 7.8 of the Agreement are hereby renumbered to Sections 7.7, 7.8 and 7.9, respectively and all references to Sections 7.6, 7.7 and 7.8 in the Agreement shall be read as references to Sections 7.7, 7.8 and 7.9, respectively.
5.Section 7.8 of the Agreement (as renumbered pursuant to Section 4 of this Amendment) is hereby amended by replacing the words “Section 7.2 or Section 7.3” by “Section 7.2, Section 7.3 or Section 7.6.”
6.The remainder of the Agreement shall be unamended and shall continue in full force and effect.
7.The Employee acknowledges and agrees that neither the entering into this Amendment nor any of the terms of this Amendment shall constitute a Good Reason to terminate the Employee’s employment with the Company.
8.This Amendment may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together will constitute but one document.
[Signature Page to Follow]
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IN WITNESS WHEREOF, the parties hereto have entered into this Amendment effective as of the date first above written.
THE COMPANY
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RARE ELEMENT RESOURCES, INC.
By:/s/ Gerald Grandey
Name:   Gerald W. Grandey
Title:     Chairman 
THE EMPLOYEE
/s/ Randall J. Scott
Randall J. Scott
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[Signature Page to First Amendment to Employment Agreement]

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EXHIBIT A
CONSULTING AGREEMENT
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THIS CONSULTING AGREEMENT (this “Agreement”) is made effective as of [●], 2022 (the “Effective Date”), by and between Randall J. Scott (the “Consultant”) and Rare Element Resources, Inc., a Wyoming corporation (the “Company”).  
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RECITALS
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WHEREAS, the Consultant, the former Chief Executive Officer of the Company, retired effective [●], 2022 pursuant to that certain Employment Agreement between the Company and the Consultant dated January 1, 2018, as amended on June 27, 2022 (the “Employment Agreement”); 
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WHEREAS, the Company intends to engage the Consultant to perform certain consulting services for the Company following the Consultant’s retirement; and
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WHEREAS, the parties desire to enter into this Agreement in order to incorporate the agreed upon terms and conditions of the Consultant’s consulting services.
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AGREEMENT
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NOW, THEREFORE, in consideration of the promises and of the mutual covenants and agreements hereinafter contained, the parties hereto agree as follows:
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		1.	Consulting Services.  

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a.Consulting Services.  
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i.Consulting Services.  This Agreement shall commence on the Effective Date and continue until December 31, 2027 unless terminated as provided in Section 1(c) of this Agreement (the “Consulting Term”). During the Consulting Term, the Consultant shall render consulting services to the Company on such projects as the Chairman of the Board of Directors of the Company (the “Board”) or the Chief Executive Officer may reasonably request, and Consultant shall reasonably agree, related to the businesses of the Company (collectively, the “Consulting Services”). In addition, the Consulting Services during the Consulting Term shall include providing executive transition services to the Company, periodic advice and counseling to the Chief Executive Officer, and transferring knowledge with respect to legacy items, and may additionally include advising and assisting on such other matters as may be requested by the Board or the Chief Executive Officer from time to time.
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ii.Independent Contractor Status.  The parties understand and intend that the Consulting Services shall be performed by the Consultant as an 

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independent contractor, and that to the extent the Consultant is performing services on behalf of the Company he is not doing so an employee of the Company.  The manner of and means by which the Consultant performs his obligations hereunder are to be determined by the Consultant in his reasonable discretion.  The Consultant is not authorized to assume or create any obligation or responsibility, express or implied, on behalf of, or in the name of, the Company or to bind the Company in any manner, unless, in each instance, he has received the prior written approval of the Company to so assume, obligate, or bind the Company.
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iii.When and Where Consulting Services are Performed.  The Consultant shall be solely responsible for determining when and where the Consulting Services are to be performed, provided that such determination meets the requirements of the projects assigned by the Company.  There shall be no set hours during which the Consulting Services must be performed, and the Consultant shall not keep set hours. 
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iv.No Tools or Training.  The Company shall not provide tools or training to the Consultant.  The Company may permit the Consultant to purchase or retain certain tools that the Consultant received prior to retirement, such as equipment in the Consultant’s home used in the course of the Consultant’s employment along with his cellular telephone, although the Consultant shall determine whether or not to use such items in the course of performing Consulting Services hereunder.  
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v.Freedom to Contract.  The parties acknowledge that the retention of the Consultant by the Company under this Agreement is non-exclusive, and that the Consultant is expressly free to perform services for other parties while performing the Consulting Services for the Company, subject to compliance with any restrictive covenants set forth in this Agreement, the Employment Agreement, or the General Release of Claims, if applicable. 
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vi.Licenses, Permits, Similar Items.  The Consultant shall obtain and keep current, at the Consultant’s own expense, all permits, certificates, and licenses necessary for the Consultant to perform the Consulting Services.
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vii.Insurance.  The Consultant shall be solely responsible for all of his own insurance (and the insurance of anyone working on behalf of the Consultant) and shall at all times maintain such types and amounts of insurance coverage (including automobile/liability insurance) as is acceptable or required by the Company.  No workers’ compensation insurance or unemployment compensation insurance will be obtained by the Company on behalf of any individual performing Consulting Services for the Consultant pursuant to this Agreement.  The Consultant shall be solely responsible for obtaining unemployment compensation insurance and workers’ compensation insurance for his employees and other service providers (to the extent required), and the Consultant shall be solely responsible for complying with all applicable workers’ 

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compensation and unemployment compensation laws.  The Consultant shall furnish proof of any form of insurance to the Company upon request.  Policies under this paragraph shall be endorsed with a waiver of subrogation.  The Consultant will provide the Company with 30 days of advance written notice of the cancellation of, or a material change to, any insurance required by this paragraph. 
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viii.Taxes.  No income tax or payroll tax of any kind shall be withheld or paid by the Company on behalf of the Consultant or any individual performing Consulting Services for the Consultant under this Agreement, except as may be required by law for payments to independent contractors.  The Consultant (and any other individual performing services for the Consultant) shall be responsible for all taxes and similar payments arising out of any activities contemplated by this Agreement, including without limitation, federal, state, and local income tax, social security tax (FICA), self-employment taxes, unemployment insurance taxes, and all other taxes, fees, and withholdings.  The Consultant hereby represents and warrants that he shall timely file all applicable tax returns and shall appropriately include all Consulting Fees and other amounts payable hereunder on such returns and shall timely pay all applicable taxes on such amounts.  The Consultant hereby agrees to indemnify and hold the Company harmless for any taxes, interest or penalties that may be assessed against the Company based in whole or in part on the Consultant’s failure to properly file or pay taxes as required by the preceding sentence.
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ix.No Entitlement to Employee Benefits.  Neither the Consultant, nor any of the Consultant’s other employees or service providers, is an employee of the Company, and therefore, they shall not be entitled to employee benefits or perquisites from the Company in respect to the Consulting Services.
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b.Remuneration for Consulting Services.  
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i.Consulting Fees.  During the Consulting Term, as compensation for the Consultant’s performance of the Consulting Services, the Company agrees to pay the Consultant the following fees (the “Consulting Fees”): (i) $20,125 per month for the period commencing on the Effective Date and ending on December 31, 2022, pro-rated for partial months of service, provided Consultant engages in requested transition related Consulting Services during such period, and (ii) thereafter, at a rate agreed between the Company and the Consultant. 
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ii.Stock Options.  Notwithstanding anything to the contrary set forth in the  Employment Agreement, or any stock option certificate, award agreement, award notice, stock option plan, or similar agreement between the Company and the Consultant, all stock options granted to the Consultant  pursuant to the Rare Element Resources, Ltd. 2011 Stock Option Plan or otherwise shall 

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remain outstanding and eligible to vest in accordance with their terms during the Consulting Term as if the Consultant had  remained employed by the Company through the Consulting Term.
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iii.Reimbursement of Expenses. The Company shall reimburse Consultant for all reimbursable expenses, including pre-approved travel, mileage, meals and other engagement-related expenses at actual cost only with no mark-up. Expenses must be approved by the Company in advance. The Consultant shall neither purchase any equipment necessary to provide the Services which has a cost in excess of $200.00 without the prior written approval from the Company.  All expenses shall be recorded and submitted to the Company on Company provided expense reimbursement request form.
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iv.Payment.  The Consultant shall submit monthly invoices and invoice the Company for completed work and reimbursable expenses by the 15th day of the calendar month following the month in which the Consulting Services were performed, and the expenses were incurred.  All invoices must provide a reasonable description of the work performed for the Company, and all requests for reimbursement shall be accompanied by documentation of such expenses in the manner required under the Company’s applicable reimbursement policies for independent contractors as in effect from time to time.  All invoices should be submitted to the Company in accordance with the notice provisions in Section 3(e) of this Agreement or at such other address as is subsequently notified by the Company, in writing, to the Consultant.  Payment will be made within 30 days from the Company’s receipt of invoice.   
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c.Termination of Consulting Services during Consulting Term.  
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i.Termination by Company.  The Company may terminate this Agreement upon the occurrence of the following events: (1) the Consultant fails to provide requested transition related services from the Effective Date through December 31, 2022; (2) the Consultant breaches any of the restrictive covenants set forth in the Employment Agreement or this Agreement, or (2) the Consultant disparages the Company or engages in egregious conduct detrimental to the Company.  The Consultant shall be given written notice of any act or event that may support termination above and thirty days to cure any such act or event.
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ii.Termination by Consultant.  The Consultant may terminate this Agreement at any time after December 31, 2022 upon 10 days’ written notice. 
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iii.Death or Disability. This Agreement and the Consulting Term will end upon the death or disability of Consultant. Disability shall be defined under the Company’s then current stock option plan. In the event the Consultant dies or becomes disabled during the Consulting Term, the Consultant’s outstanding stock options, if any, shall expire one year from the date of death or disability of 

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the Consultant. Any stock options which are unvested as of the date of death or disability will not vest.  
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iv.Effect of Termination.  If the Consulting Services are terminated under Section 1c(i) or 1(c)(ii) of this Agreement, the Company shall have no further obligations under Section 1 hereof other than to pay any Consulting Fees earned as of the date of termination of the Consulting Term. 
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		2.	409A. The payments and benefits provided hereunder are intended to be exempt from the requirements of Section 409A of the Code. Notwithstanding any provision of this Agreement to the contrary, in the event that the Company reasonably determines that any payments or benefits hereunder are not either exempt from or compliant with the requirements of Section 409A of the Code, the Company shall have the right to adopt such amendments to this Agreement or adopt such other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that are necessary or appropriate (i) to preserve the intended tax treatment of the payments and benefits provided hereunder, to preserve the economic benefits with respect to such payments and benefits, and/or (ii) to exempt such payments and benefits from Section 409A of the Code or to comply with the requirements of Section 409A of the Code and thereby avoid the application of penalty taxes thereunder; provided, however, that this Section does not, and shall not be construed so as to, create any obligation on the part of the Company to adopt any such amendments, policies or procedures or to take any other such actions or to indemnify the Consultant for any failure to do so.

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		3.	Disclosure of Information and Non-Competition

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a.Confidential Information.  All materials, data, specifications, plans, inventions, documents, or other information prepared, developed or delivered to the Company or its affiliates, which include General Atomics and its affiliated entities, or obtained by the Consultant or his employees, if any, pursuant to and as a result of this Agreement, or any prior agreement between the parties, shall remain or become the property of the Company. The Consultant shall ensure the confidentiality of all such information deemed non-public, proprietary, or confidential by the Company or its affiliates (“Confidential Information”).  The Consultant shall not disclose to any third party any type of Confidential Information described in this Section 3.a or any other information of any description whatsoever (expressly including any technical process, geological findings or data and property claims and land boundaries) regarding plans, programs, plants, processes, products, costs, equipment, operations, or customers of the Company, its affiliates or their respective clients that may come within the knowledge of the Consultant in the performance of this Agreement, or is known to the Consultant upon entering into this Agreement if obtained through prior consulting or employment, except:
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i.Confidential Information which is or becomes part of the public domain other than by acts or omissions of the Consultant; or 
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ii.Confidential Information which was lawfully in the possession of the Consultant at the time he initially became involved with the Company and 

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was not acquired by the Consultant directly from the Company or any of its employees, affiliates, or contractors or anyone acting directly or indirectly for, or on behalf of, the Company or its affiliates; 
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iii.Confidential Information which the Consultant is legally compelled by applicable law, by any court, governmental agency, or regulatory authority, or by subpoena or discovery request in pending litigation, but only if, to the extent lawful, the Consultant gives the Company prompt written notice of the fact prior to the disclosure so that the Company may request a protective order or other remedy to prevent or limit such disclosures, and in the absence of such protective order or other remedy, the Consultant may disclose only such portion of the Confidential Information which he is legally obligated to disclose.
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b.The Consultant will not, without the prior written consent of the Company, disclose to any third-party information developed or obtained by the Consultant in the performance of this Agreement, or any prior agreement between the parties, except to the extent that such information falls within one of the categories described in Section 3(a)(i), (ii) or (iii) above.
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c.In addition, the Consultant acknowledges that from time-to-time additional confidentiality agreements may be imposed due to requirements of customers, consultants or partners of the Company.  The Consultant agrees to sign and abide by any such confidentiality agreements.
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d.In the event of a breach or threatened breach by the Consultant of Section 3(a) above, the Company shall be entitled, without the need to provide any form of security, to an injunction restraining the Consultant from disclosing, in whole or in part, any such confidential or technical information, or from rendering any services to any person or entity to whom such confidential or technical information has been disclosed or is threatened to be disclosed.  Nothing herein shall be construed as prohibiting the Company from pursuing any other remedies available to it for such breach or threatened breach, including the recovery of damages from the Consultant. The Consultant specifically acknowledges and agrees that if he breaches this Section 3, the Company shall be entitled to recover all costs and expenses incurred by it, including reasonable costs, expenses and liabilities, as a result of such breach or in pursuing any available remedy at law or in equity.
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e.Non-Competition.  The Consultant will not, either alone or in partnership or jointly or in conjunction with any person, or in any other manner whatsoever, directly or indirectly acquire any interest in any mining or millsite claims or otherwise acquire any interest in minerals, real property, royalties or water within twenty (20) miles from the outside boundaries of any of the properties of the Company.  The Consultant acknowledges that due to the nature of the Company’s business and interest in the properties, the restrictions set out in this section (c) of this provision are necessary and reasonable. Any interest acquired in violation of this Section 3.c 

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shall, at the Company’s request and at no cost to the Company, be conveyed to the Company.
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f.Conflicts of Interest and Priority.  The Consultant has disclosed that his engagement is not exclusive to the Company. Notwithstanding the above, the Consultant shall perform the agreed upon Consulting Services timely and to the satisfaction of the Company. Further, the Consultant shall take all precautions to secure confidential treatment of the Company’s information in full adherence to Section 3.a above and shall disclose in writing to the Company any potential real or potential conflicts of interest relating to his engagement by any other company or individual that is in the same or similar geographic or competitive position with the Company or its subsidiaries.  In the event the Company determines, in its sole judgment, that any relationship which the Consultant has, is against the best interests of the Company, the Company has the right to require that the Consultant not engage with the other party for the term of this Agreement.
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		4.	General Provisions.

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a.Governing Law and Jury Trial Waiver.  The validity, interpretation, construction and performance of this Agreement shall in all respects be governed by the laws of Colorado, without reference to principles of conflicts of law.  Each of the parties waives, to the fullest extent permitted by applicable law, any right such party may have to a trial by jury in respect of litigation directly or indirectly arising out of, under or in connection with this Agreement and/or the Consultant’s service with the Company and agree any such dispute shall be settled solely in front of an arbitrator as set forth in Section 3.b below.  Each party certifies that no representative, agent or attorney of either party has represented, expressly or otherwise, that such party would not, in the event of litigation, seek to enforce this waiver.
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b.Arbitration.  Any dispute arising out of or relating to this Agreement, the Consultant’s service with the Company, or the termination of that service or this Agreement shall be resolved by arbitration before a single arbitrator in an arbitration held in Denver, Colorado, in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association.  The parties shall mutually agree on an arbitrator, and, in the absence of such agreement, each party shall select one arbitrator, and the two arbitrators shall select the single arbitrator to hear the dispute.  Judgment upon the award rendered by the arbitrator may be entered in the District Court for the City and County of Denver, Colorado, or in federal court in Denver, Colorado.  The arbitrator’s award may be reviewed by a court of competent jurisdiction only to the extent permitted by C.R.S. Section 13-22-223, 9 U.S.C. Section 10 or 9 U.S.C. Section 11, as applicable.  In the event that either party retains or employs an attorney to bring litigation and/or arbitration against the other party to enforce this Agreement, the prevailing party in such litigation and/or arbitration, if any, shall be entitled to an award of reasonable attorneys’ fees and costs from the other party. 
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c.Interpretation.  The titles of the Sections, Subsections, Paragraphs, and Subparagraphs in this Agreement have been inserted for convenient reference only and shall not affect the construction of this Agreement.
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d.Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or unenforceability of any other provision.  If any provision is found to be invalid or unenforceable as written, it shall be deemed modified to the minimum extent necessary to render it valid and enforceable.
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e.Survival.  Notwithstanding any provision contained herein to the contrary, the obligations set forth in Sections 2, 3 and 4 shall survive termination of this Agreement. 
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f.Assignment.  This Agreement may not be assigned by any party without the written consent of the other parties, and any assignment without such consent shall be null and void.  Subject to that limitation, this Agreement shall be binding upon and inure to the benefit of the parties and their heirs, personal representatives, successors, and assigns.
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g.Notices.  All notices given under this Agreement shall be in writing.  Any notice may be transmitted by any means selected by the sender.  A notice that is mailed to a party at its address given below, by registered or certified mail, return receipt requested, with all postage prepaid, shall be deemed to have been given and received on the earlier of the date reflected on the return receipt or the third business day after it is posted.  A notice sent by facsimile transmission to a party at its facsimile number given below shall be deemed to have been given and received upon confirmation of transmission by the sender’s facsimile machine.  A notice transmitted by a recognized overnight courier service to a party at its address given below shall be deemed to be given and received on the first business day after it is delivered to the courier.  A notice given by any other means shall be deemed to be given and received only upon actual receipt.  The addresses, email addresses, and facsimile numbers of the parties for notice purposes are as follows: 
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If to the Consultant:
Randall J. Scott 
4 Shining Oak
Littleton, CO 80127
rscott@rareelementresources.com
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If to the Company:
Rare Element Resources, Inc.
PO Box 271049
Littleton, CO  80127
Attn: Corporate Secretary
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Any party may change his or its address or facsimile number for notice purposes by providing written notice to the other parties.
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h.Modification.  No failure by any party to insist upon the strict performance of this Agreement on one or more occasions shall constitute a waiver of any right or remedy hereunder.  This Agreement may be amended, and any right or remedy hereunder may be waived, only in a writing signed by the party against whom the amendment or waiver is asserted.
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i.Entire Agreement; Employment Agreement and Other Employment-Related Documents Unaffected.  This Agreement has been entered into in good faith by the parties.  This Agreement sets forth the entire agreement and understanding of the parties with respect to the subject matter hereof.  For purposes of clarity, except as expressly set forth in this Agreement, nothing herein shall affect in any way the Employment Agreement or any other documents, agreements and plans arising from the prior employment relationship between the Company and the Consultant, or the continuing rights or obligations of both the Consultant and the Company under the Employment Agreement and such other employment-related documents, agreements and plans, including without limitation the confidentiality requirements and restrictive covenants to which the Consultant remains subject pursuant to the employment-related documents.  In entering into this Agreement, none of the parties has made or relied upon any representation or provision not set forth herein.
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j.Legal and Tax Advice.  The Consultant acknowledges that the Company has not provided him with any legal and/or tax advice regarding this Agreement, that he has had a reasonable period of time to review and consider this Agreement before signing it, and that he has had an opportunity to discuss this Agreement with his legal counsel and/or tax advisers and has used that opportunity to the extent he wished.  
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k.Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together will constitute but one document.
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[Remainder of Page Intentionally Blank]
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.
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RARE ELEMENT RESOURCES, INC. 
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By: ​ ​​ ​​ ​​ ​​ ​​ ​
Name: ​ ​​ ​​ ​​ ​​ ​​ ​
Title: ​ ​​ ​​ ​​ ​​ ​​ ​
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CONSULTANT
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By: ​ ​​ ​​ ​​ ​​ ​​ ​
Randall J. Scott

10Exhibit 10.1

 

TRANSITION AND RETIREMENT AGREEMENT

 

This Transition and
Retirement Agreement (“Agreement”) is made by and between (i) Cyrus D. Marter IV (“Employee”) and
(ii) Civitas Resources, Inc., a Delaware corporation (the “Company”). Employee and the Company are referred to
individually as a “Party” and collectively as the “Parties.”

 

RECITALS

 

WHEREAS, Employee’s
employment with the Company will end on the Separation Date (as defined below);

 

WHEREAS, the Parties wish
to resolve fully and finally any and all claims or causes of action that Employee has or may have against the Company, including any
claims or causes of action that Employee may have arising out of Employee’s employment with the Company or the end of such employment;

 

WHEREAS, the Parties wish
for Employee to provide certain consulting services after the Separation Date to provide for an effective transition after Employee’s
termination of employment with the Company; and

 

WHEREAS, in order to accomplish
these ends, the Parties are willing to enter into this Agreement.

 

NOW, THEREFORE, in consideration
of the mutual promises and undertakings contained herein, the Parties agree as follows:

 

TERMS

 

1.            Separation
from Employment. Employee’s employment with the Company shall end on August 5, 2022, so long as a Chief Legal Officer
and Secretary of the Company has commenced employment with the Company, or such earlier date on which Employee’s employment terminates
(the “Separation Date”). Notwithstanding the foregoing, Employee shall resign as General Counsel and Secretary of the Company
as of August 1, 2022 (or, if the Separation Date occurs prior to August 1, 2022, as of the Separation Date) (the “Resignation
Date”). As of the Separation Date, Employee shall no longer have an employment relationship with the Company or any of its affiliates.
Employee agrees that between the date Employee first signs this Agreement and the Separation Date, Employee will continue to perform
his duties and responsibilities to the Company.

 

2.            Effective
Date. This Agreement shall become effective on the eighth (8th) calendar day after Employee signs and delivers to the
Company this Agreement (the “Effective Date”), so long as Employee does not rescind this Agreement as provided in Section 11(f).
Notwithstanding the foregoing, the Company’s obligations under Section 3 are strictly contingent upon Employee’s re-execution
and non-rescission of this Agreement on the Separation Date or within twenty-one (21) days thereafter. The date of Employee’s re-execution
of this Agreement is referred to herein as the “Re-Execution Date.” By re-executing this Agreement, Employee advances to
the Re-Execution Date Employee’s general waiver and release of claims against the Company and other covenants, including the re-affirmation
of the covenants contained in the Employee Proprietary Information and Inventions Agreement (as defined below) as set forth in Section 5.
Employee has seven (7) calendar days from the Re-Execution Date to rescind Employee’s re-execution of this Agreement in accordance
with Section 11(f). In the event of such rescission by Employee, the date of the releases and covenants set forth herein shall not
be advanced, but shall remain effective up to and including the date upon which Employee originally signs this Agreement. Provided that
Employee does not rescind Employee’s re-execution of this Agreement within such seven (7)-day period, the “Second Release
Effective Date” shall occur on the eighth (8th) calendar day after the Re-Execution Date. Regardless of whether Employee
signs this Agreement, to the extent Employee participated in the Company’s group health plans, coverage will cease on the last
day of the month in which the Separation Date occurs. At that time, if Employee participated in the Company’s group health plans,
Employee will be eligible to continue Employee’s group health plan benefits for Employee and Employee’s eligible dependents,
subject to the terms and conditions of the Company’s benefit plans, federal law, including the Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended (“COBRA”), and, as applicable, state insurance laws.

 

     

     

    

 

3.            Consideration.

 

a.            Within
ten (10) days after the Separation Date, Employee shall receive from the Company his “Accrued Obligations,” which consist
of (i) payment of all earned but unpaid base salary through the Separation Date prorated for any partial period of employment; (ii) payment,
in accordance with the terms of the applicable benefit plan of the Company or its affiliates or to the extent required by law, of any
benefits to which Employee has a vested entitlement as of the Separation Date; (iii) payment of any accrued unused vacation as of
the Separation Date; and (iv) payment of any approved but not yet reimbursed business expenses incurred in accordance with applicable
policies of the Company and its affiliates as of the Separation Date.

 

b.            After
the Second Release Effective Date, the Company will provide Employee with the payments, benefits, and other consideration set forth in
Appendix A to this Agreement (the “Retirement Benefits”).

 

c.            The
Company shall report and withhold on each payment and benefit set forth in Appendix A in conformance with applicable tax laws.

 

4.            General
Release.

 

a.            Employee,
on Employee’s own behalf and on behalf of Employee’s heirs, agents, representatives, attorneys, assigns, executors and/or
anyone acting on Employee’s behalf, and in consideration of the promises, assurances, and covenants set forth in this Agreement,
including, but not limited to, the provision of the Retirement Benefits provided hereunder, hereby fully releases the Company and its
successors or affiliates, its parents, subsidiaries, officers, shareholders, partners, members, individual employees, agents, representatives,
directors, employees, attorneys, successors, and anyone acting on its behalf, known or unknown (collectively, the “Released Parties”),
from all claims and causes of action by reason of any injuries and/or damages or losses, known or unknown, foreseen or unforeseen, patent
or latent which Employee has sustained or which may be sustained as a result of any facts and circumstances arising out of or in any
way related to Employee’s employment by the Company or the termination of that employment, and to any other disputes, claims, disagreements,
or controversies between Employee and the Company up to and including the date this Agreement is signed by Employee. Employee’s
release includes, but is not limited to, any contract benefits, claims for quantum meruit, claims for wages, bonuses, employment benefits,
moving expenses, stock options, profits units, or damages of any kind whatsoever, arising out of any contracts, express or implied, any
covenant of good faith and fair dealing, express or implied, any theory of unlawful discharge, torts and related damages (including,
but not limited to, emotional distress, loss of consortium, and defamation) any legal restriction on the Company’s right to terminate
Employee’s employment and/or services, or any federal, state or other governmental statute or ordinance, including, without limitation,
Title VII of the Civil Rights Act of 1964 (as amended), the federal Age Discrimination in Employment Act of 1967 (29 U.S.C. § 21,
et seq.) (as amended) (“ADEA”), the federal Americans with Disabilities Act of 1990, any state laws concerning discrimination
or harassment including the Fair Employment and Housing Act, or any other legal limitation on contractual or employment relationships,
and any and all claims for any loss, cost, damage, or expense with respect to Employee’s liability for taxes, penalties, interest
or additions to tax on or with respect to any amount received from the Company or otherwise includible in Employee’s gross income
through the Separation Date, including, but not limited to, any liability for taxes, penalties, interest or additions to tax arising
from the failure of any other employment, severance, profit sharing, bonus, equity incentive or other compensatory plan to which Employee
and the Company are or were parties, to comply with, or to be operated in compliance with the Internal Revenue Code of 1986, as amended
(the “Code”), including, but not limited to, Section 409A thereof, or any provision of state or local income tax law;
provided, however, that notwithstanding the foregoing, the release set forth in this Section shall not extend to: (a) any
vested or portability rights under any pension, retirement, profit sharing or similar plan or employee welfare benefit plan under the
Employee Retirement Income Security Act of 1974, as amended; (b) Employee’s rights, if any, to indemnification or defense
under the Company’s certificate of incorporation, bylaws and/or policy or procedure, this Agreement or any indemnification agreement
with Employee or under any insurance contract, in connection with Employee’s acts or omissions within the course and scope of Employee’s
employment with the Company; (c) claims that are unwaivable as a matter of law; or (d) claims for breach of this Agreement.

 

    	 	-2-	 

     

    

 

b.            Employee
acknowledges that Employee is knowingly and voluntarily waiving and releasing any rights Employee may have under the ADEA. Employee also
acknowledges that the consideration given for the waiver and release hereunder is in addition to anything of value to which Employee
is already entitled. Employee further acknowledges that Employee has been advised by this writing, as required by the ADEA, that: (a) Employee’s
waiver and release hereunder do not apply to any rights or claims that may arise after the execution date of this Agreement; (b) Employee
has been advised hereby that Employee has the right to consult with an attorney prior to executing this Agreement and its release; (c) Employee
has twenty-one (21) days to consider this release (although Employee may choose to voluntarily execute this Agreement earlier); (d) Employee
has seven (7) days following the execution of this Agreement to rescind this Agreement; and (e) this Agreement, including the
release contained herein, will not be effective until the Effective Date or the Second Release Effective Date, as applicable.

 

c.            Nothing
in this Agreement (including, without limitation, Sections 5, 6 and 8 hereof) or any other Company plan, agreement, policy or procedure
(this Agreement and such other plans, agreements, policies and procedures, collectively, the “Company Arrangements”) limits
Employee’s ability to communicate directly with and provide information, including documents, not otherwise protected from disclosure
by any applicable law or privilege to the Securities and Exchange Commission (the “SEC”) or any other federal, state or local
governmental agency or commission (each, a “Government Agency”) regarding possible legal violations, without disclosure to
the Company.  The Company may not retaliate against Employee for any of these activities, and nothing in the Company Arrangements
requires Employee to waive any monetary award or other payment that Employee might become entitled to from the SEC or any other Government
Agency. Further, nothing in the Company Arrangements precludes Employee from filing a charge of discrimination with the Equal Employment
Opportunity Commission or a like charge or complaint with a state or local fair employment practice agency.  However, once this
Agreement becomes effective, Employee may not receive a monetary award or any other form of personal relief from the Company in connection
with any such charge or complaint that Employee filed or is filed on Employee’s behalf. Notwithstanding anything to the contrary
in the Company Arrangements, as provided for in the Defend Trade Secrets Act of 2016 (18 U.S.C. § 1833(b)), Employee will not be
held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (a) is made
(i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and (ii) solely
for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document filed
in a lawsuit or other proceeding, if such filing is made under seal.  Without limiting the foregoing, if Employee files a lawsuit
for retaliation by the Company for reporting a suspected violation of law, Employee may disclose the trade secret to Employee’s
attorney and use the trade secret information in the court proceeding, if Employee (x) files any document containing the trade secret
under seal, and (y) does not disclose the trade secret, except pursuant to court order.

 

    	 	-3-	 

     

    

 

5.            Re-Affirmation
of Restrictive Covenants. Employee acknowledges that Employee executed an Employee Restrictive Covenants, Proprietary Information
and Inventions Agreement under which Employee assumed certain obligations relating to the Company’s confidential and proprietary
business information and trade secrets and containing certain covenants relating to competition, solicitation and assignment of inventions
(“Employee Proprietary Information and Inventions Agreement”). Employee agrees that, except to the extent it conflicts with
Section 4(c), the Employee Proprietary Information and Inventions Agreement shall by its terms survive the execution of this Agreement
and expressly reaffirms Employee’s commitment to abide by, and promises to abide by, the terms of the Employee Proprietary Information
and Inventions Agreement; provided, that, for the avoidance of doubt, the “Post-Termination Non-Compete Term” (as defined
therein) shall be twelve (12) months following the Separation Date; provided, further, that notwithstanding the foregoing, none of the
restrictions set forth in the Employee Proprietary Information and Inventions Agreement shall be interpreted or applied in a manner to
prevent Employee or restrict Employee from practicing law, as it is the intent of the Employee Proprietary Information and Inventions
Agreement to create certain limitations on Employee’s business activities only, and not to create limitations that would restrict
Employee from practicing law. For the avoidance of doubt, and without limiting the foregoing, nothing in the Employee Proprietary Information
and Inventions Agreement shall prohibit Employee from engaging in the private practice of law as a sole practitioner or member of a law
firm, irrespective of whether members of a law firm with whom Employee is affiliated or whether Employee, in such capacity, represents
businesses that are engaged in the Business (as defined in the Employee Proprietary Information and Inventions Agreement). Employee acknowledges
and agrees that, both before and after the Separation Date, Employee shall be bound by all ethical and professional obligations (including
those with respect to conflicts and confidentiality) that arise from Employee’s provision of legal services to, and acting as legal
counsel for, the Company. Employee also warrants and represents that Employee has returned any and all documents and other property of
the Company constituting a trade secret or other confidential research, development or commercial information (including all computer
files, applicable passwords and other electronically stored information) in Employee’s possession, custody or control, and represents
and warrants that Employee has not retained any copies or originals of any such property of the Company in any form. Employee further
warrants and represents that, except as provided by Section 4(c), Employee has never violated the Employee Proprietary Information
and Inventions Agreement, and will not do so in the future.

 

6.            Cooperation
for Proceedings. Employee acknowledges that because of Employee’s position with the Company, Employee may possess information
that may be relevant to or discoverable in connection with claims, litigation or judicial, arbitral or investigative proceedings initiated
by a private party or by a regulator, governmental entity or self-regulatory organization, that relates to or arises from matters with
which Employee was involved during Employee’s employment with the Company, or that concern matters of which Employee has information
or knowledge (collectively, a “Proceeding”). Employee agrees that Employee shall testify truthfully in connection with any
such Proceeding. Except as provided in Section 4(c), Employee agrees that Employee shall cooperate with the Company in connection
with every such Proceeding, and that Employee’s duty of cooperation shall include an obligation to meet with Company representatives
and/or counsel concerning all such Proceedings for such purposes, and at such times and places, as the Company reasonably requests, and
to appear for deposition and/or testimony upon the Company’s request and without a subpoena. The Company shall reimburse Employee
for reasonable out-of-pocket expenses that Employee incurs in honoring Employee’s obligation of cooperation under this Section.

 

7.            Other
Cooperation. Employee and the Company understand and agree that it is in their mutual best interest to minimize the effect of Employee’s
separation upon the Company’s business and upon Employee’s professional reputation. Accordingly, Employee agrees to take
all actions reasonably requested of Employee by the Company in order to accomplish that objective. To this end, Employee shall respond
to the Company concerning business matters on an as-needed and as-requested basis, and the Company shall exercise reasonable efforts
to avoid conflicts between such requests and Employee’s personal and other business commitments, and Employee shall exercise reasonable
efforts to fulfill the Company’s requests in a timely manner.

 

    	 	-4-	 

     

    

 

8.            Non-Disparagement.
Employee covenants never to disparage or speak ill of the Company or any of the Company’s products or services, or of any past
or present employees, officers or directors of the Company, except as provided in Section 4(c). Employee further agrees not to harass,
as that term is defined by applicable law, any past, present or future Company employee, officer or director. The Company shall counsel
its current officers and directors not to disparage or speak ill of Employee, including, but not limited to, his performance, leadership
or service with the Company.

 

9.            Release
of Unknown Claims. It is the intention of Employee that this Agreement contains a general release which shall be effective as a bar
to each and every claim, demand or cause of action he releases. Employee recognizes that Employee may have some claim, demand or cause
of action against the Company of which Employee is totally unaware and unsuspecting which Employee is giving up by execution of this
Agreement. It is the intention of Employee in executing this Agreement that it will deprive Employee of each such claim, demand or cause
of action and prevent Employee from asserting it against the Released Parties.

 

10.            No
Admission of Liability. The Parties agree that nothing contained herein, and no action taken by any Party hereto with regard to this
Agreement, shall be construed as an admission by any Party of liability or of any fact that might give rise to liability for any purpose
whatsoever.

 

11.            Warranties.
Employee warrants and represents as follows:

 

a.            Employee
has read this Agreement, and Employee agrees to the conditions and obligations set forth in it.

 

b.            Employee
voluntarily executes this Agreement (i) after having been advised to consult with legal counsel, (ii) after having had opportunity
to consult with legal counsel, and (iii) without being pressured or influenced by any statement or representation or omission of
any person acting on behalf of the Company including, without limitation, the officers, directors, members of the Board of Directors
of the Company (the “Board”), committee members, employees, agents, and attorneys for the Company.

 

c.            Employee
has no knowledge of the existence of any lawsuit, charge, or proceeding against the Company or any of its officers, directors, Board
members, committee members, employees, successors, affiliates, or agents arising out of or otherwise connected with any of the matters
herein released. In the event that any such lawsuit, charge, or proceeding has been filed, Employee immediately will take all actions
necessary to withdraw or terminate that lawsuit, charge, or proceeding, unless the requirement for such withdrawal or termination is
prohibited by applicable law.

 

d.            Employee
has full and complete legal capacity to enter into this Agreement.

 

e.            Employee
has had at least twenty-one (21) days in which to consider the terms of this Agreement. In the event that Employee executes this Agreement
in less time, it is with the full understanding that Employee had the full twenty-one (21) days if Employee so desired and that Employee
was not pressured by the Company or any of its representatives or agents to take less time to consider the Agreement. In such event,
Employee expressly intends such execution to be a waiver of any right Employee had to review the Agreement for a full twenty-one (21)
days.

 

    	 	-5-	 

     

    

 

f.            Employee
has been informed and understands that (i) to the extent that this Agreement waives or releases any claims Employee might have under
the Age Discrimination in Employment Act, Employee may rescind Employee’s waiver and release within seven (7) calendar days
of Employee’s execution of this Agreement and (ii) any such rescission must be in writing and hand delivered to M. Christopher
Doyle, President and Chief Executive Officer, at Civitas Resources, Inc., 555 17th Street, Suite 3700, Denver, CO
80202, within the seven (7)-day period.

 

g.            Employee
acknowledges, and agrees, that (i) Employee is not otherwise entitled to the Retirement Benefits and (ii) the Retirement Benefits
are good and sufficient consideration for this Agreement.

 

h.            Employee
acknowledges, and agrees, that Employee has been fully and finally paid or provided all wages, compensation, leave (paid and unpaid),
vacation, bonuses, equity awards, or other benefits from the Company which are or could be due to Employee, but expressly excluding,
without limitation, amounts due to Employee under this Agreement. Employee acknowledges, and agrees, that he has no rights to any amounts
or benefits under the Eighth Amended and Restated Executive Change in Control and Severance Plan (the “Plan”).

 

12.            Resignation.
Employee acknowledges and agrees that, as of the Resignation Date, Employee will be deemed to have automatically resigned, to the extent
applicable: (a) as an officer of the Company and each affiliate of the Company for which Employee served as an officer; (b) from
the Board, the board of directors or board of managers (or similar governing body) of each affiliate of the Company for which Employee
served as a director or manager; and (c) from the board of directors or board of managers (or similar governing body) of any corporation,
limited liability entity, unlimited liability entity or other entity in which the Company or any other affiliate of the Company holds
an equity interest and with respect to which board of directors or board of managers (or similar governing body) Employee served as the
Company’s or such other affiliate’s member’s designee or other representative. Employee agrees to promptly execute
such additional documentation as requested by the Company to effectuate the foregoing.

 

13.            Consulting
Services.

 

a.            During
the Consulting Period (as defined below), Employee agrees to provide technical consulting services to the Company in the capacity of
an independent contractor, which services will include Employee providing consultation and advice as may be requested by the Board from
time to time with regard to the business of the Company and the further transition of Employee’s duties and responsibilities (the “Services”);
provided, however, that the level of Services to be performed pursuant to this Section 13(a) shall not exceed a level equal
to twenty percent (20%) of the average level of services performed by Employee in his capacity as an employee of the Company during the
thirty-six (36)-month period ending on the Separation Date, except for any deviations that may be permitted in accordance with the regulations
and other guidance promulgated under Section 409A (as defined below) and, accordingly, Employee’s transition from an employee
of the Company to a consultant of the Company shall give rise to a “separation from service” within the meaning of Section 409A. 
In providing the Services, Employee agrees to attend such meetings as the Board may reasonably require for communication of his advice
and consultation.  Employee shall coordinate the furnishing of the Services with representatives of the Board in order that such
services can be provided in such a way as to generally conform to the business schedules and performance standards of the Company, but
the method of performance, time of performance, place of performance, and other details of the manner of performance of Employee’s
provision of the Services shall be within the sole control of Employee.  During the Consulting Period, (i) Employee shall have
the right to devote his business day and working efforts to other business and professional opportunities that do not interfere with
his rendering of the Services to the Company or his other obligations to the Company; and (ii) Employee shall not be deemed to be
an agent of the Company or have any power to bind or commit the Company or otherwise act on its behalf.

 

    	 	-6-	 

     

    

 

b.            During
the Consulting Period, Employee shall be an independent contractor and shall not participate in any benefit plans, programs or arrangements
of the Company or any of its affiliates unless such benefits are made available to Employee by operation of law and due to his former
employment status with the Company.  As an independent contractor, Employee shall be solely responsible for all taxes on the sums
received by him pursuant to this Section 13, and Employee expressly agrees to pay and be responsible for making all applicable tax
filings and remittances with respect to amounts paid to Employee pursuant to this Section 13 and to hold harmless the Company and
its affiliates for all claims, damages, costs and liabilities arising from Employee’s failure to do so.

 

c.            In
exchange for providing the Services set forth in Section 13(a), the Company shall pay Employee an hourly consulting fee equal to
$500 for each completed hour Employee provides Services during the Consulting Period (prorated for partial hours). On or before the fifth
business day after the expiration of each calendar month in which the Consulting Period is in effect, Employee shall provide the Company
with an invoice detailing the Services provided during the previous calendar month and the amount due for such Services pursuant to this
Section 13(c).  The Company will provide Employee payment owed for such Services within thirty (30) days of its receipt
of such invoice(s).

 

d.            Unless
earlier terminated or extended as provided hereunder, the “Consulting Period” shall be that period between the Separation
Date and December 31, 2022; provided, however, that the Consulting Period, and Employee’s and the Company’s respective
obligations under this Section 13, shall be terminated prior to December 31, 2022 upon any of the following: (i) the death
or disability of Employee; (ii) the termination of the Consulting Period by the Company for Cause (as defined in the Plan); (iii) the
termination of the Consulting Period by mutual agreement of the Company and Employee; or (iv) Employee’s exercise of his right
to rescind this Agreement as set forth in Section 4(b); provided, further, that the Consulting Period, and Employee’s and
the Company’s respective obligations under this Section 13, shall be extended after December 31, 2022 upon the mutual
agreement of the Company and Employee.

 

14.            Section 409A.
The payments and benefits under this Agreement are intended to comply with Section 409A of the Code and Treasury Regulations promulgated
thereunder (“Section 409A”) or an exemption thereunder and shall be construed accordingly. It is the intention of the
Parties that payments or benefits payable under this Agreement not be subject to the additional tax or interest imposed pursuant to Section 409A.
Each payment to be made under this Agreement shall be a separate payment, and a separately identifiable and determinable payment, to
the fullest extent permitted under Section 409A. Provision of the Retirement Benefits pursuant to this Agreement is intended
to be exempt from Section 409A of the Internal Revenue Code by reason of the exemption for “short-term deferrals” found
in Treasury Regulation Section 1.409A-1(b)(4) and the terms of this Agreement shall be applied and interpreted to the extent
possible in a manner that is consistent with the requirements of the aforementioned regulatory exemption. Notwithstanding the foregoing,
the Company makes no representations that the payments and benefits provided under this Agreement are exempt from, or compliant with,
Section 409A and in no event shall the Company or any of its affiliates be liable for all or any portion of any taxes, penalties,
interest or other expenses that may be incurred by Employee on account of non-compliance with Section 409A.

 

15.            Severability.
If any provision of this Agreement (or portion thereof) is held illegal, invalid, or unenforceable, such holding shall not affect any
other provisions hereof. In the event any provision is held illegal, invalid, or unenforceable, such provision shall be limited so as
to give effect to the intent of the Parties to the fullest extent permitted by applicable law. Any claim by Employee against the Company
shall not constitute a defense to enforcement by the Company.

 

    	 	-7-	 

     

    

 

16.            Assignments.
The Company may assign its rights under this Agreement. No other assignment is permitted except by written permission of the Parties.

 

17.            Enforcement.
The releases contained herein do not release any claims for enforcement of the terms, conditions, or warranties contained in this Agreement.
The Parties shall be free to pursue any remedies available to them to enforce this Agreement.

 

18.            Entire
Agreement. This Agreement and any confidentiality, non-solicitation, or non-competition agreement signed by Employee, including,
without limitation, the Employee Proprietary Information and Inventions Agreement, are the entire agreement between the Parties relating
to the matters set forth herein. Except as provided herein, this Agreement supersedes any and all prior oral or written promises or agreements
between the Parties. Employee acknowledges that Employee has not relied on any promise, representation, or statement other than those
set forth in this Agreement. This Agreement cannot be modified except in writing signed by all Parties.

 

19.            Interpretation.
The determination of the terms of, and the drafting of, this Agreement has been by mutual agreement after negotiation, with consideration
by and participation of all Parties. Accordingly, the Parties agree that rules relating to the interpretation of contracts against
the drafter of any particular clause shall not apply in the case of this Agreement. The term “Paragraph” shall refer to the
enumerated paragraphs of this Agreement. The headings contained in this Agreement are for convenience of reference only and are not intended
to limit the scope or affect the interpretation of any provision of this Agreement. The words “execute” and “execution”
as used herein shall also mean “re-execute” and “re-execution” unless the context requires otherwise.

 

20.            Choice
of Law and Venue. This Agreement shall be construed and interpreted in accordance with the laws of the State of Colorado, without
regard to its conflict of laws rules. Venue shall be exclusively in the Colorado state or federal courts located in Denver County, Colorado.

 

21.            Waiver
of Jury Trial. EACH OF THE PARTIES HERETO HEREBY VOLUNTARILY AND IRREVOCABLY WAIVES TRIAL BY JURY IN ANY ACTION OR OTHER PROCEEDING
BROUGHT IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.

 

22.            Waiver.
The failure of any Party to give notice of any breach by the other Party, or insist upon strict performance, of any of the terms or conditions
of this Agreement shall not constitute a waiver of any of such Party’s rights hereunder.

 

23.            Counterparts.
This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. Facsimile and electronic signatures shall be treated as originals.

 

[Remainder of page intentionally left
blank]

 

    	 	-8-	 

     

    

 

IN WITNESS WHEREOF, the Parties
have executed this Transition and Retirement Agreement on the dates written below.

 

	EMPLOYEE	 	 	 
	 	 	 	 
	/s/ Cyrus D. Marter IV	 	June 29, 2022	 
	Cyrus D. Marter IV	 	Date	 
	 	 	 	 
	THE COMPANY	 	 	 
	 	 	 	 
	/s/ M. Christopher Doyle	 	June 29, 2022	 
	Civitas Resources, Inc.	 	Date	 
	By: M. Christopher Doyle	 	 	 
	Title: President and Chief Executive Officer	 	 	 

 

RE-EXECUTED

 

NOT TO BE SIGNED PRIOR TO THE SEPARATION DATE

 

	EMPLOYEE	 	 	 
	 	 	 	 
	 	 	 	 
	Cyrus D. Marter IV	 	Date	 

 

Signature Page to Transition and Retirement Agreement

 

     

     

    

 

Appendix A

 

The Company shall provide Employee with the Retirement
Benefits set forth below. Capitalized terms not otherwise defined in this Appendix A shall have the meanings set forth in the Agreement.

 

		1.	Effective on the Second Release Effective
                                            Date, all restricted stock units (“RSUs”) and performance stock units (“PSUs”)
                                            granted to Employee in 2020 and 2021 under the Company’s 2017 Long Term Incentive Plan
                                            or 2021 Long Term Incentive Plan that have not previously vested as of the Separation Date
                                            shall vest (and, for PSUs, at their “target” performance level) as of the Separation
                                            Date (the “Vested RSUs” and the “Vested PSUs”). The Company shall
                                            deliver shares of the Company’s common stock underlying the Vested RSUs and the Vested
                                            PSUs to Employee within ten (10) days after the Second Release Effective Date. For the
                                            avoidance of doubt, pursuant to this clause, Employee shall receive 10,595 shares of the
                                            Company’s common stock for his Vested RSUs and 28,801 shares of the Company’s
                                            common stock for his Vested PSUs. All RSUs and PSUs granted to Employee in 2022 under the
                                            Company’s 2021 Long Term Incentive Plan shall be forfeited without consideration as
                                            of the Separation Date.

 

		2.	If and to the extent permitted under
                                            applicable law and without additional cost or penalty to the Company or Employee, during
                                            the portion, if any, of the eighteen (18)-month period, commencing as of the date Employee
                                            is eligible to elect and timely elects to continue coverage for Employee and Employee’s
                                            eligible dependents under the Company’s group health plan pursuant to COBRA or similar
                                            state law, the Company shall reimburse Employee for the difference between the amount Employee
                                            pays to effect and continue such coverage and the employee contribution amount that active
                                            senior executive employees of the Company pay for the same or similar coverage, with any
                                            such reimbursement payable for the sixty (60) day period immediately following the Separation
                                            Date being payable on the first business day sixty (60) days following the Separation Date
                                            and any other such reimbursement payable being paid on a monthly basis thereafter; provided
                                            that the Company may modify the continuation coverage contemplated by this provision to the
                                            extent reasonably necessary to avoid the imposition of any excise taxes on the Company for
                                            failure to comply with the nondiscrimination requirements of the Patient Protection and Affordable
                                            Care Act of 2010, as amended, and/or the Health Care and Education Reconciliation Act of
                                            2010, as amended (to the extent applicable).

 

    Appendix A

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