Document:

Form of Medium -Term Notes, Series K

 Exhibit 4.2 
 [Face of Note] 
 Unless this certificate is presented by an
authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Company or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of
Cede & Co. or in such other name as requested by an authorized representative of DTC (and any payment is made to Cede & Co. or such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 
  

					
	CUSIP NO. 94986RRC7	 		 	PRINCIPAL AMOUNT:  $                    

	REGISTERED NO.     	 		 	

 WELLS FARGO & COMPANY 

MEDIUM-TERM NOTE, SERIES K 

Due Nine Months or More From Date of Issue 
 Notes due August 22, 2018 
  
 WELLS FARGO & COMPANY, a corporation duly organized and existing under the laws of the State of Delaware (hereinafter called the “Company,” which term includes any successor
corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & Co., or registered assigns, the principal sum of
                                         
                                DOLLARS
($                    ) on August 22, 2018 (the “Stated Maturity Date”) and to pay interest thereon from
August 21, 2013 or from the most recent Interest Payment Date to which interest has been paid or duly provided for quarterly on each February 21, May 21, August 21 and November 21, commencing November 21, 2013
and ending May 21, 2018 and at Maturity (each, an “Interest Payment Date”), at the rate per annum specified below until the principal hereof is paid or made available for payment. The interest so payable, and punctually paid or
duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such
interest next preceding such Interest Payment Date. The Regular Record Date for an Interest Payment Date shall be one Business Day prior to such Interest Payment Date. If an Interest Payment Date is not a Business Day, interest on this Security
shall be payable on the next day that is a Business Day, with the same force and effect as if made on such Interest Payment Date, and without any interest or other payment with respect to the delay. “Business Day” shall mean a day,
other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions are authorized or required by law or regulation to close in New York, New York. 

Except as described below for the first Interest Period, on each Interest Payment Date, interest will be paid for the
period commencing on and including the immediately preceding 

 
Interest Payment Date and ending on and including the day immediately preceding that Interest Payment Date. This period is referred to as an “Interest Period.” The first Interest
Period will commence on and include August 21, 2013 and end on and include November 20, 2013. Interest on this Security will be computed on the basis of a 360-day year of twelve 30-day months. 
 The interest rate on this Security that will apply during an
Interest Period will be as follows: 
  

					
	 Commencing August 21, 2013 and
 ending August 20, 2016
	 		  	1.60% per annum
	 Commencing August 21, 2016 and
 ending August 20, 2017
	 		  	2.00% per annum
	 Commencing August 21, 2017 and
 ending August 21, 2018
	 		  	3.00% per annum

 Any interest not punctually paid or duly provided for will forthwith cease to be payable
to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture. 

Payment of interest on this Security will be made in immediately available funds at the office or agency of the Company
maintained for that purpose in the City of Minneapolis, Minnesota in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that, at the option of
the Company, payment of interest may be paid by check mailed to the Person entitled thereto at such Person’s last address as it appears in the Security Register or by wire transfer to such account as may have been designated by such Person.
Payment of principal of and interest on this Security at Maturity will be made against presentation of this Security at the office or agency of the Company maintained for that purpose in the City of Minneapolis, Minnesota. Notwithstanding the
foregoing, for so long as this Security is a Global Security registered in the name of the Depositary, payments of principal and interest on this Security will be made to the Depositary by wire transfer of immediately available funds. 

This Security is redeemable at the option of the Company at any time on or after August 21, 2016, in whole or in
part, on any Interest Payment Date at a Redemption Price equal to 100% of the principal amount of this Security to be redeemed, plus any accrued but unpaid interest to, but excluding, the Redemption Date. Notice of any redemption will be mailed at
least 5 but not more than 30 days before the applicable Redemption Date to the Holder hereof. Unless the Company defaults in the payment of the Redemption Price, on or after the Redemption Date, interest will cease to accrue on this Security or the
portion hereof called for redemption. 
 This Security is not subject to repayment at the option of the Holder
hereof prior to August 22, 2018. This Security is not entitled to any sinking fund. 

  
 2 

 Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature or its duly authorized agent under the Indenture referred to on the
reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
 [The remainder of this page has been left intentionally blank] 

  
 3 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal. 

DATED:                        
       
  

							
	WELLS FARGO & COMPANY
	                            
                                         
                   
			
	By:	 	  
	 	 
		 	  
	 	
		 	Its:	 	  
	 	

 [SEAL] 

					
	                            
                                         
                   
	Attest:	 	 
		 	  

		 	Its:	 	  

  

			
	 TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Securities of the series designated therein described in the within-mentioned
Indenture.
	 	

  
  

			
	CITIBANK, N.A.,
	      as Trustee
		
	By:	 	 
	      Authorized Signature
	
	 OR

	
	WELLS FARGO BANK, N.A.,
	   as Authenticating Agent for the Trustee              
      
		
	By:	 	 
	      Authorized Signature

  
 4 

 [Reverse of Note] 
 WELLS FARGO & COMPANY 

MEDIUM-TERM NOTE, SERIES K 

Due Nine Months or More From Date of Issue 
 Notes due August 22, 2018 
  
 This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in one or more series under an indenture dated as of
July 21, 1999, as amended or supplemented from time to time (herein called the “Indenture”), between the Company and Citibank, N.A., as Trustee (herein called the “Trustee,” which term includes any successor
trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the
Holders of the Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security is one of the series of the Securities designated as Medium-Term Notes, Series K, of the Company, which series is
limited to an aggregate principal amount or face amount, as applicable, of $25,000,000,000 or the equivalent thereof in one or more foreign or composite currencies. The amount payable on the Securities of this series may be determined by reference
to the performance of one or more equity-, commodity- or currency-based indices, exchange traded funds, securities, commodities, currencies, statistical measures of economic or financial performance, or a basket comprised of two or more of the
foregoing, or any other market measure or may bear interest at a fixed rate or a floating rate. The Securities of this series may mature at different times, be redeemable at different times or not at all, be repayable at the option of the Holder at
different times or not at all and be denominated in different currencies. 
 Article Sixteen of the Indenture
shall not apply to this Security. 
 The Securities are issuable only in registered form without coupons and
will be either (a) book-entry securities represented by one or more Global Securities recorded in the book-entry system maintained by the Depositary or
(b) certificated securities issued to and registered in the names of, the beneficial owners or their nominees. 
 The Company agrees, to the extent permitted by law, not to voluntarily claim the benefits of any laws concerning usurious rates of interest against a Holder of this Security. 

Modification and Waivers 
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities
of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of all series to be affected, acting together as
a class. The Indenture also contains 

  
 5 

 
provisions permitting the Holders of a majority in principal amount of the Securities of all series at the time Outstanding affected by certain provisions of the Indenture, acting together as a
class, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with those provisions of the Indenture. Certain past defaults under the Indenture and their consequences may be waived under the Indenture by the
Holders of a majority in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series. Any such consent or waiver by the Holder of this Security shall be conclusive and binding
upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

 Defeasance 
 Section 403 and Article Fifteen of the Indenture and the provisions of clause (ii) of Section 401(1)(B) of the Indenture, relating to defeasance at any time of (a) the entire
indebtedness on this Security and (b) certain restrictive covenants and certain Events of Default, upon compliance by the Company with certain conditions set forth therein, shall not apply to this Security. The remaining provisions of
Section 401 of the Indenture shall apply to this Security. 
 Authorized Denominations 

This Security is issuable only in registered form without coupons in denominations of $1,000 or any amount in excess
thereof which is an integral multiple of $1,000. 
 Registration of Transfer 

Upon due presentment for registration of transfer of this Security at the office or agency of the Company in the City of
Minneapolis, Minnesota, a new Security or Securities of this series, with the same terms as this Security, in authorized denominations for an equal aggregate principal amount will be issued to the transferee in exchange herefor, as provided in the
Indenture and subject to the limitations provided therein and to the limitations described below, without charge except for any tax or other governmental charge imposed in connection therewith. 

This Security is exchangeable for definitive Securities in registered form only if (x) the Depositary notifies the
Company that it is unwilling or unable to continue as Depositary for this Security or if at any time the Depositary ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, and a successor depositary is not
appointed within 90 days after the Company receives such notice or becomes aware of such ineligibility, (y) the Company in its sole discretion determines that this Security shall be exchangeable for definitive Securities in registered form
and notifies the Trustee thereof or (z) an Event of Default with respect to the Securities represented hereby has occurred and is continuing. If this Security is exchangeable pursuant to the preceding sentence, it shall be exchangeable for
definitive Securities in registered form, bearing interest at the same rate, having the same date of issuance, Stated Maturity Date and other terms and of authorized denominations aggregating a like amount. 

This Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee
of the Depositary to the Depositary or another nominee of the 

  
 6 

 
Depositary or by the Depositary or any such nominee to a successor of the Depositary or a nominee of such successor. Except as provided above, owners of beneficial interests in this Global
Security will not be entitled to receive physical delivery of Securities in definitive form and will not be considered the Holders hereof for any purpose under the Indenture. 

Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the
Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice
to the contrary. 
 Obligation of the Company Absolute 

No reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the
obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed, except as otherwise provided in this Security.

 No Personal Recourse 
 No recourse shall be had for the payment of the principal of or the interest on this Security, or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture or
any indenture supplemental thereto, against any incorporator, stockholder, officer or director, as such, past, present or future, of the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issuance hereof, expressly waived and released. 

Defined Terms 
 All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture unless otherwise defined in this Security. 

Governing Law 
 This Security shall be governed by and construed in accordance with the law of the State of New York, without regard to principles of conflicts of laws. 

  
 7 

 ABBREVIATIONS 

 
 The following abbreviations, when used in the
inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations: 
  

					
	TEN COM	 	--	    	as tenants in common
			
	TEN ENT	 	--	    	as tenants by the entireties
			
	JT TEN	 	--	    	as joint tenants with right
		 		    	of survivorship and not
		 		    	as tenants in common

  

											
	UNIF GIFT MIN ACT	  	--	  	  
	 	Custodian	 	  
	 	
		  		  	(Cust)	 		 	 (Minor)
	 	

  

			
	Under Uniform Gifts to Minors Act
		
	  
	 	
	(State)	 	

 Additional abbreviations may also be used though not in the above list. 

 
 FOR VALUE RECEIVED, the undersigned hereby
sell(s) and transfer(s) unto 
 Please Insert Social Security or 
 Other Identifying Number of Assignee 

			
		
	  
	 	
	
	  

	
	  

	
	  

 (PLEASE PRINT OR TYPE NAME
AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE) 
  

  
 8 

 the within Security of WELLS FARGO & COMPANY and does hereby irrevocably constitute
and appoint                                      attorney to
transfer the said Security on the books of the Company, with full power of substitution in the premises. 
  

 

									
	Dated:	 	  
	 		 	
				
		 		 		 	  

				
		 		 		 	  

  
  
 NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular, without alteration or enlargement or any change whatever.

  
 9EX-10.1

 Exhibit 10.1 
 As Approved August 20, 2013 
 VANTAGE DRILLING COMPANY

 MANAGEMENT INCENTIVE PLAN 
 ARTICLE I 
 ESTABLISHMENT, PURPOSE AND DURATION 

1.1 Establishment. The Company hereby establishes an incentive compensation plan, to be known as the “Vantage Drilling
Company Management Incentive Plan,” as set forth in this document. The Plan will become effective as of the Effective Date. 
 1.2 Purpose of the Plan. The Plan is designed to enhance the Company’s ability to attract and retain highly qualified executives and provide additional financial
incentives to such executives to promote the success of the Company. 
 1.3 Duration of the
Plan. Unless sooner terminated as provided herein, the Plan shall terminate on the Termination Date. 

ARTICLE II 
 DEFINITIONS 
 Unless otherwise defined in this Plan, the words and phrases
defined in this Article shall have the meaning set out below throughout the Plan, unless the context in which any such word or phrase appears reasonably requires a broader, narrower or different meaning. 

2.1 “Board” means the Board of Directors of the Company. 

2.2 “Change in Control of the Company” mean a change of control of the Company which results from
the occurrence of any one or more of the following events after the Effective Date: 
 (a) The
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act (a “Person”)) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of fifty percent (50%) or more of either (A) the then outstanding shares of common stock of the Company (the “Outstanding Company Stock”) or (B) the combined voting power of the then outstanding voting securities of
the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that the following acquisitions shall not constitute a Change of Control: (A) any acquisition
directly from the Company or any Subsidiary, (B) any acquisition by the Company or any Subsidiary or by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, or (C) any acquisition by any
corporation pursuant to a reorganization, merger, consolidation or similar business combination involving the Company (a “Merger”), if, following such Merger, the conditions described in subsection (c) (below) are
satisfied; 
 (b) A reverse merger involving the Company or the parent of the Company (as defined in
section 424(e) of the Code or an equivalent non-corporate entity, “Parent”), in which the Company or the Parent, as the case may be, is the surviving corporation but the shares of common stock of the Company or the Parent
outstanding immediately preceding the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise, and the shareholders of the Parent immediately prior to the completion of such

 As Approved August 20, 2013 

 

 
transaction hold, directly or indirectly, less than fifty percent (50%) of the beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of the surviving
entity or, if more than one entity survives the transaction, the controlling entity; 
 (c) Individuals who, as
of the Effective Date, constitute the Board of Directors of the Company (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director
subsequent to the Effective Date 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 shall be considered a member of the
Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under
the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; 
 (d) The effective date of a Merger, unless immediately following such Merger, (A) substantially all of the holders of the Outstanding Company Voting Securities immediately prior to Merger
beneficially own, directly or indirectly, more than fifty percent (50%) of the common stock of the corporation resulting from such Merger (or its parent corporation) in substantially the same proportions as their ownership of Outstanding
Company Voting Securities immediately prior to such Merger, and (B) at least a majority of the members of the board of directors of the corporation resulting from such Merger (or its parent corporation) were members of the Incumbent Board at
the time of the execution of the initial agreement providing for such Merger; 
 (e) The sale or other
disposition of all or substantially all of the assets of the Company, unless immediately following such sale or other disposition, (A) substantially all of the holders of the Outstanding Company Voting Securities immediately prior to the
consummation of such sale or other disposition beneficially own, directly or indirectly, more than fifty percent (50%) of the common stock of the corporation acquiring such assets in substantially the same proportions as their ownership of
Outstanding Company Voting Securities immediately prior to the consummation of such sale or disposition, and (B) at least a majority of the members of the board of directors of such corporation (or its parent corporation) were members of the
Incumbent Board at the time of execution of the initial agreement or action of the Board providing for such sale or other disposition of assets of the Company; or 

(f) The adoption of any plan or proposal for the liquidation or dissolution of the Company. 

Notwithstanding the foregoing provisions of this definition of Change of Control, to the extent that any payment (or acceleration of
payment) hereunder is (A) considered to be deferred compensation that is subject to, and not exempt under, section 409A of the Code, and (B) payable due to the Change of Control, then the term Change of Control hereunder shall be
construed to have the meaning as set forth in section 409A of the Code and the regulations promulgated thereunder with respect to the payment (or acceleration of payment) of such deferred compensation, but only to the extent inconsistent with
the foregoing provisions of the Change of Control definition as determined by the Incumbent Board. 
 2.3
“Code” means the United States Internal Revenue Code of 1986, as amended from time to time. 

 As Approved August 20, 2013 

 

 2.4 “Committee” means the Compensation Committee of the Board
(or a Committee of the Board comprised solely of two or more outside directors). 
 2.5 “Company” means
Vantage Drilling Company, a Cayman Islands exempted company. 
 2.6 “Covered Employee” means an employee
of the Company who is a “covered employee,” as defined in Section 162(m), or any successor statute. 
 2.7
“Domestic Relations Order” has the meaning ascribed to that term in section 414(p) of the Code. 

2.8 “Effective Date” means the date the Plan is approved by the Committee. 

2.9 “Incentive” means, as of any date, the cash incentive payable under this Plan. 

2.10 “Incentive Pool” means a ledger account maintained by the Committee under the Plan to reflect
the Company’s aggregate benefit payment obligation under the Plan as determined under Section 5.1, and as limited by Section 5.2, of the Plan. 
 2.11 “Look-Back Performance Period” means the 42-month Performance Period ending September 30, 2016. 

2.12 “Participant” means any eligible person as set forth in Article III to whom an Award is granted.

 2.13 “Performance Goal” means a specified threshold and maximum Stock Price applicable
to each Performance Period, as follows: 
  

									
	 Performance Period Ending:
	  	Threshold
Performance
Goal	 	  	Maximum
Performance
Goal	 
	 September 30, 2013
	  	$	2.01	  	  	$	2.19	  
	 March 31, 2014
	  	$	2.28	  	  	$	2.63	  
	 September 30, 2014
	  	$	2.62	  	  	$	3.28	  
	 March 31, 2015
	  	$	2.96	  	  	$	3.94	  
	 September 30, 2015
	  	$	3.40	  	  	$	4.92	  
	 March 31, 2016
	  	$	3.84	  	  	$	5.91	  

  

									
	 Look-Back Performance Period
	  	Threshold
Performance
Goal	 	  	Maximum
Performance
Goal	 
	 September 30, 2016
	  	$	4.42	  	  	 	7.38	  

 As Approved August 20, 2013 

 

 2.14 “Performance Period” means each of the 6-month periods
ending on September 30, 2013, March 31, 2014, September 30, 2014, March 31, 2015, September 30, 2015, March 31, 2016 respectively, and the 42-month period ending on September 30, 2016.

 2.15 “Plan” means the “Vantage Drilling Company Management Incentive Plan,” as set forth in
this document. 
 2.16 “Section 162(m)” means section 162(m) of the Code and
Department of Treasury rules and regulations issued thereunder. 
 2.17 “Stock” means the
ordinary shares, par value $.001 per share, of the Company. 
 2.18 “Stock Price” for purposes of the
Plan means the sum of (a) the highest average closing price of the Stock on the principal stock exchange upon which the Stock is traded over any five consecutive trading days during the relevant Performance Period and (b) the amount of any
dividends declared and paid during the period commencing on the Effective Date and ending on such final date of the relevant Performance Period. 
 2.19 “Termination Date” means September 30, 2016. 

ARTICLE III 
 ELIGIBILITY 
 The persons who are eligible to receive Incentive under the
Plan are the executives of the Company who, on or after the Effective Date, hold the positions of Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, Chief Administrative Officer, and Vice President of Marketing of the Company
and such other persons as determined by the Compensation Committee from time to time, and are expected to include the Chief Accounting Officer, Vice President – Operations, Vice President – Assets & Engineering, and the Chief
Legal Officer. No person shall be eligible to receive a payment hereunder with respect to a Performance Period that ends prior to the person becoming eligible to participate in the Plan. A person whose employment with the Company is terminated for
any reason shall not participate in the Plan following such termination. 
 ARTICLE IV 

ADMINISTRATION 
 4.1 Administration. The Plan shall be administered by the Committee. 

4.2 Authority of the Committee. The Committee shall have full and exclusive power to interpret and apply the
terms and provisions of the Plan and Incentives paid under the Plan, and to adopt such rules, regulations and guidelines for implementing the Plan as the Committee may deem necessary or proper, all of which powers shall be exercised in the best
interests of the Company and in keeping with the objectives of the Plan. The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan in the manner and to the extent the Committee deems necessary or
desirable  

 As Approved August 20, 2013 

 

 
to further the Plan’s objectives. Further, the Committee shall make all other determinations that may be necessary or advisable for the administration of the Plan. 

4.3 Decisions Binding. All determinations and decisions made by the Committee or the Board, as the case may
be, pursuant to the provisions of the Plan and all related orders and resolutions of the Committee or the Board, as the case may be, shall be final, conclusive and binding on all persons. 

4.4 No Liability. Under no circumstances shall the Company, its Affiliates, the Board or the Committee incur liability for
any indirect, incidental, consequential or special damages (including lost profits) of any form incurred by any person, whether or not foreseeable and regardless of the form of the act in which such a claim may be brought, with respect to the Plan
or the Company’s, its Affiliates’, the Committee’s or the Board’s roles in connection with the Plan. 

ARTICLE V 
 INCENTIVES 
 5.1 Incentive Pool. 

(a) Performance Periods. At the end of each six-month Performance Period, the Committee shall determine if the
Stock Price equaled or exceeded the threshold or maximum Performance Goal during such Performance Period. For such Performance Period, the Committee shall credit an amount to the Incentive Pool as follows: 

(i) if the Stock Price for such Performance Period did not equal or exceed the threshold Performance Goal for such
Performance Period, zero dollars ($0); 
 (ii) if the Stock Price equaled the threshold Performance Goal for such
Performance Period, two million dollars ($2,000,000); 
 (iii) if the Stock Price exceeded the threshold
Performance Goal for such Performance Period but was less than the maximum Performance Goal, two million dollars ($2,000,000) plus an additional amount equal to the product of two million dollars ($2,000,000) multiplied by a fraction (which fraction
cannot exceed one), the numerator of which is the amount by which the Stock Price for such Performance Period exceeded the threshold Performance Goal for such Performance Period and the denominator of which is difference resulting from subtracting
the threshold Performance Goal for such Performance Period from the maximum Performance Goal; or 
 (iv) if the
Stock Price equaled or exceeded the maximum Performance Goal for such Performance Period, four million dollars ($4,000,000); plus 
 (v) for the Performance Periods ending on September 30, 2014, March 31, 2015, September 30, 2015 and March 31, 2016, the Incentive Pool shall be credited with an additional
amount for each prior Performance Period but only to the extent a Performance Goal for such prior Performance Period was not achieved and such amount has not been credited under clauses (ii), (iii), and (iv) and this clause (v). The amount of
the additional credit, if any, shall be calculated by substituting the Stock Price achieved in the later Performance Period as the Stock Price achieved during the prior Performance Period(s) in which a Performance Goal was not achieved, and then
making an additional 

 As Approved August 20, 2013 

 

 
contribution to the incentive pool as would otherwise be contributed under clauses (ii), (iii), and (iv) above. 

(b) Look-Back Performance Period. At the end of the Look-Back Performance Period, the Committee shall determine if
the Stock Price equaled or exceeded the threshold or maximum Performance Goal for the Look-Back Performance Period. For such Performance Period, the Committee shall credit an amount to the Incentive Pool as follows: 

(i) if the Stock Price did not equal or exceed the threshold Performance Goal for the Look-Back Performance Period, zero
dollars ($0); 
 (ii) if the Stock Price equaled the threshold Performance Goal for the Look-Back Performance
Period, twelve million dollars ($12,000,000) less the aggregate amount previously credited to the Incentive Pool by reason of attaining Performance Goal(s) for all prior Performance Periods with the resulting amount not being less than zero dollars
($0); 
 (iii) if the Stock Price exceeded the threshold Performance Goal for the Look-Back Performance Period
but was less than the maximum Performance Goal, the Incentive Pool shall be credited with twelve million dollars ($12,000,000) plus an additional amount equal to the product of twelve million dollars ($12,000,000) multiplied by a fraction (which
fraction cannot exceed one), the numerator of which is the amount by which the Stock Price for the Look-Back Performance Period exceeded the threshold Performance Goal for such Period and the denominator of which is difference resulting from
subtracting the threshold Performance Goal for the Look-Back Performance Period from the maximum Performance Goal, less the aggregate amount previously credited to the Incentive Pool by reason of attaining Performance Goal(s) for all prior
Performance Periods with the resulting amount not being less than zero dollars ($0) ; or 
 (iv) if the Stock
Price equaled or exceeded the maximum Performance Goal for the Look-Back Performance Period, twenty-four million dollars ($24,000,000) less the aggregate amount previously credited to the Incentive Pool by reason of attaining Performance Goal(s) for
all prior Performance Period(s). 
 5.2 Maximum Incentive Pool. Notwithstanding
any other provision of the Plan to the contrary, the maximum aggregate amount that may be credited to the Incentive Pool for all Performance Periods shall not exceed a total of twenty-four million dollars ($24,000,000). 

5.3 Section 162(m). Incentives paid under the Plan to Covered Employees are intended to constitute qualified
performance-based compensation for purposes of Section 162(m). Except as provided in Section 5.8, Incentives under the Plan shall be paid to Covered Employees solely on account of the attainment of the performance goal for the period. The
Committee will certify in writing prior to payment of any Incentives under the Plan that the Performance Goal was met. In no event shall an Incentive paid pursuant to the Plan to any Covered Employee for any calendar year exceed of six and a half
million dollars ($6,500,000). 
 5.4 Individual Incentive Potential. If the
Performance Goal for a relevant Performance Period is achieved, the Participants may be paid an amount up to the amount as determined in the following table: 

 As Approved August 20, 2013 

 

			
	 Executive/Employee
	  	 Percentage of Incentive Pool for each
Performance
Period

	 Chief Executive Officer
	  	up to 25%
	 Chief Operating Officer
	  	up to 20%
	 Chief Financial Officer
	  	up to 14%
	 Chief Administrative Officer
	  	up to 14%
	 Vice President of Marketing
	  	up to 14%
	 Other Participants
	  	up to 13% in the aggregate

 A Participant who becomes eligible for the Plan after the first day of a Performance Period shall be
eligible to receive an Incentive payment equal to the percentage set forth above or such lesser percentage as determined by the Committee. In the event that the Committee determines that a lesser percentage should be applicable to such a
Participant, the Participant will be eligible to receive a pro-rata Incentive payment that is the product of the stated Incentive percentage multiplied by a fraction, the numerator of which is the number of days the Participant was eligible to
participate in the Plan during such Performance Period over the total number of days in such Performance Period. 
 The
Committee may increase or decrease the Incentive payable to any Participant who is not a Covered Employee based on any objective or subjective criteria as the Committee deems appropriate in its sole and absolute discretion. The Committee only may
decrease the Incentive payable to a Participant who is a Covered Employee below the maximum amount that may be payable, based on the percentage listed above, based on any objective or subjective criteria as the Committee deems appropriate in its
sole and absolute discretion. The exercise of negative discretion with respect to one employee is not permitted to result in an increase in the amount payable to a Covered Employee; it may however be permitted to result in an increase in the amount
payable to non-Covered Employees and an increase in the percentage amount available under the Incentive Pool payable to Participants who are not Covered Employees. 
 5.5 Vesting. Except as specified in Section 5.8 or provided below, no Participant shall vest or have any right to any portion of any Incentive payment until
October 1, 2014. Commencing on October 1, 2014, and subject to Section 5.9, Participants shall have a nonforfeitable right to any Incentive payments if a Participant remains continuously employed by the Company or a subsidiary of the
Company for the period commencing on the later of the first day of a Performance Period or the date on which the Participant is initially eligible to participate in the Plan and ending on the later of the last day of the Performance Period. Ifa
Participant dies or is terminated due to a disability during a Performance Period, the Participant will remain entitled to the Incentive Payment, if any, that is awarded for such Performance Period, and any Incentive Payment for such Performance
Period will vest on the last day of the Performance Period. Notwithstanding the foregoing, the Committee may determine to irrevocably vest all Participants in a non-forfeitable right to any Incentive Payment(s) that has been earned in any preceding
Performance Period at any time. To the extent an Incentive payment is not vested in accordance with the preceding sentence, payment of any Incentive hereunder to a Participant will be forfeited, and the Company will have no further obligation
hereunder to such Participant if the Participant’s employment with the Company is terminated for any reason other than death or disability.  

 As Approved August 20, 2013 

 

 5.6 Form of Payment. Incentives awarded pursuant to the Plan
shall be paid in cash. The Committee may permit Participants to defer the receipt of the payment of an Incentive awarded pursuant to the Plan under the Company’s nonqualified deferred compensation plan, if any, in accordance with the terms of
such plan. 
 5.7 Time of Payment. Except as provided in Section 5.8 and subject to
Section 5.9, any Incentives payable for the Performance Periods ending on September 30, 2013, March 31, 2014, September 30, 2014 shall paid on or after October 1, 2014 but in no event later than March 15,
2015, and any Incentives payable for the Performance Periods ending on March 31, 2015, September 30, 2015, March 31, 2016 respectively, shall be paid no later than 75 days following such respective date. The Incentives
payable for the Look-Back Performance Period ending on September 30, 2016 shall be paid no later than March 15, 2017. The Committee, in its sole discretion, may accelerate the payment of the Incentives for a Performance Period to an
earlier date after the attainment of the Performance Goal for such Performance Period, provided, that with respect to payments to Covered Employees the amount of the Incentive payable is discounted to reasonably reflect the time value of
money as required under Treasury Regulation § 1.162-27(e)(2)(iii)(B). 
 5.8 Change in Control of
the Company. Upon the occurrence of a Change in Control of the Company, unless otherwise specifically prohibited under applicable laws or by the rules and regulations of any applicable governmental agencies or national securities exchanges,
or unless the Committee shall determine otherwise, the following shall occur: 
 (a) any Incentives
that are payable but have not yet been paid shall be paid in full within five business days following the closing of the Change in Control of the Company; and 
 (b) for the Performance Period in which the Change in Control of the Company occurs, if on the date immediately preceding the closing date of such Change in Control, the Performance Goal for such
Performance Period has been achieved, as determined by the Committee, the Incentive for such Period as determined under Section 5.1(a) shall be paid in full within five business days following the closing of the Change in Control of the
Company. 
 5.9 Forfeiture of Incentive. Notwithstanding any other provisions of the Plan, payment
of any unvested Incentive hereunder to a Participant will be forfeited, and the Company will have no further obligation hereunder to such Participant if the Participant’s employment with the Company is terminated for any reason, including death
or disability. Notwithstanding any other provisions of this Plan, if the Committee finds by a majority vote after full consideration of the facts that a Participant, before or after the termination of the Participant’s employment or affiliation
relationship with the Company for any reason committed or engaged in willful misconduct, gross negligence, a breach of fiduciary duty, fraud, embezzlement, theft, a felony, a crime involving moral turpitude or proven dishonesty in the course of the
Participant’s employment or affiliation by the Company, which conduct damaged the Company or an affiliate, the Participant shall forfeit any rights to any payments (whether or not vested). The decision of the Committee as to the cause of the
Participant’s discharge and the damage done to the Company or an affiliate shall be final. No decision of the Committee, however, shall affect the finality of the discharge of the Participant in any manner. 

5.10 Changes in the Company’s Capital Structure. 

(a) The existence of the Plan shall not affect in any way the right or power of the Company or its shareholders to make or
authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure or its business, any merger or consolidation of the Company, any issue of bonds, debentures, preferred or prior preference

 As Approved August 20, 2013 

 

 
shares ahead of or affecting the Stock or Stock rights, the dissolution or liquidation of the Company, any sale or transfer of all or any part of its assets or business or any other corporate act
or proceeding, whether of a similar character or otherwise. 
 (b) If the Company shall effect a subdivision or
consolidation of Stock or other capital readjustment, the payment of a Stock dividend, or other increase or reduction of the number of shares of Stock outstanding, without receiving compensation therefor in money, services or property, then the
Committee shall adjust the Performance Goals as it deems appropriate. Any adjustment effected by the Committee under this Section shall be designed to provide the Participants with the intrinsic value of his or her Award, as determined prior to such
adjustment. 
 ARTICLE VI 
 MISCELLANEOUS 
 6.1 Unfunded Nature of Plan. The
Plan shall constitute an unfunded, unsecured obligation of the Company to make Incentive payments from its general assets in accordance with the provisions of the Plan. The establishment of the Plan shall not be deemed to create a trust. No
Participant shall have any security or other interest in any assets of the Company. 
 6.2
Prohibition Against Assignment or Encumbrance. No right, title, interest or benefit hereunder shall ever be liable for or charged with any of the torts or obligations of a Participant, or be subject to seizure by any creditor of a
Participant or any person claiming under a Participant. No Participant or any person claiming under a Participant shall have the power to sell, transfer, pledge, anticipate or dispose of any right, title, interest or benefit hereunder in any manner
until the same shall have been actually distributed free and clear of the terms of the Plan. No Incentive Payment or a right to any Incentive Payment under the Plan may be awarded to an alternate payee under a Domestic Relations Order.

 6.3 Plan Not an Employment Contract. Nothing in the adoption or implementation of the
Plan shall confer on any Participant any right to continued employment by the Company or affect in any way the right of the Company to terminate a Participant’s employment. 

6.4 Severability. In the event any provision of the Plan shall be held invalid or illegal for any reason, any
illegality or invalidity shall not affect the remaining parts of the Plan, but the Plan shall be construed and enforced as if the illegal or invalid provision had never been inserted, and the Company shall have the privilege and opportunity to
correct and remedy such questions of illegality or invalidity by amendment as provided in the Plan. 

6.5 Withholding of Taxes. The Company shall have the right to deduct from any payment made under the Plan any
foreign, federal, state or local taxes required by law to be withheld with respect to such payments. 

6.6 Rights of Company. Nothing contained in the Plan shall prevent the Company from adopting or continuing in
effect other compensation arrangements, which arrangements may be either generally applicable or applicable only in specific cases. 
 6.7 Section 409A. Payments under the Plan are intended to comply with the provisions of section 409A of the Code, and shall be construed and interpreted in accordance with such
intent. Notwithstanding any provision contained in the Plan to the contrary, if (i) any payment hereunder is 

 As Approved August 20, 2013 

 

 
subject to section 409A of the Code, (ii) such payment is to be paid on account of a Participant’s separation from service (within the meaning of section 409A of the Code) and
(iii) the Participant is a “specified employee” (within the meaning of section 409(a)(2)(B) of the Code), then such payment shall be delayed until the earlier of (i) the first day of the seventh month following the
Participant’ s separation from service (or, if later, the date on which such payment otherwise is to be paid under the Plan), (ii) the date of the Participant’s death or (iii) the date that otherwise complies with the
requirements of section 409A of the Code. If any payment to a Participant is delayed pursuant to the foregoing sentence, such payment shall, during such delay period, be accumulated and paid in a lump sum at the earliest date which complies
with the requirements of section 409A of the Code. A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits that are considered
nonqualified deferred compensation under section 409A of the Code upon or following a termination of employment, unless such termination is also a “separation from service” within the meaning of section 409A of the Code and the
payment thereof prior to a “separation from service” would violate section 409A of the Code. For purposes of any such provision of this Agreement relating to any such payments or benefits, references to a “termination,”
“termination of employment” or like terms shall mean “separation from service”. 
 6.8
Amendment and Termination of the Plan. The Committee may modify or terminate the Plan at any time without prior notice to or consent of a Participant or the shareholders of the Company. 

6.9 Applicable Law. The Plan shall be governed and construed in accordance with the laws of the State of
Texas, except to the extent such laws are preempted by an applicable federal law.

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