Document:

Exhibit

Exhibit 10.54

FORM OF 
RESTRICTED STOCK AWARD AGREEMENT

MATADOR RESOURCES COMPANY 
AMENDED AND RESTATED
2012 LONG-TERM INCENTIVE PLAN

1.Grant of Award.  Pursuant to the Matador Resources Company Amended and Restated 2012 Long-Term Incentive Plan (the “Plan”) for Employees, Contractors, and Outside Directors of  Matador Resources Company, a Texas corporation (the “Company”), the Company grants to

[_________________________]
(the “Participant”)

an Award of Restricted Stock in accordance with Section 6.5 of the Plan.  The number of shares of Common Stock awarded under this Restricted Stock Award Agreement (the “Agreement”) is [____________] shares (the “Awarded Shares”).  The “Date of Grant” of this Award is [_____________________]. 

2.Subject to Plan; Definitions.  This Agreement is subject to the terms and conditions of the Plan, and the terms of the Plan shall control to the extent not otherwise inconsistent with the provisions of this Agreement.  To the extent the terms of the Plan are inconsistent with the provisions of the Agreement, this Agreement shall control.  This Agreement is subject to any rules promulgated pursuant to the Plan by the Board or the Committee and communicated to the Participant in writing.  Unless defined herein, the capitalized terms used herein that are defined in the Plan shall have the same meanings assigned to them in the Plan.  For purposes of this Agreement, unless the context requires otherwise, the following terms shall have the meanings indicated:

a.    “Good Reason” shall mean (i) the assignment to the Participant of duties materially inconsistent with his or her position, or a material diminution in the Participant’s then current authority, duties or responsibilities; or (ii) a diminution of the Participant’s then current base salary or other action or inaction that constitutes a material breach of his or her employment agreement, if any.  Within thirty (30) days from the date the Participant knows of the actions constituting Good Reason as defined herein, the Participant shall give the Company written notice thereof, and provide the Company with a reasonable period of time, in no event exceeding thirty (30) days, after receipt of such notice to remedy the alleged actions constituting Good Reason; provided, however, that the Company shall not be entitled to notice of, and the opportunity to remedy, the recurrence of any alleged actions (or substantially similar actions) constituting Good Reason in the event that the Participant has previously provided notice of such prior alleged actions (or substantially similar actions) to the Company and provided the Company an opportunity to cure such prior actions (or substantially similar actions).  In the event the Company does not cure the alleged actions, if the Participant does not terminate his or her employment within sixty (60) days following the last day of the Company’s cure period, the Participant shall not be entitled to terminate his or her employment for Good Reason based upon the occurrence of such actions; provided, however, that any recurrence of such actions (or substantially similar actions) may constitute Good Reason.  Any corrective measures undertaken by the Company are solely within its discretion and do not concede or indicate agreement that the actions described in the Participant’s written notice constitute Good Reason as defined herein.

b.    “Just Cause” shall mean (i) the Participant’s continued and material failure to perform the duties of his or her employment consistent with the Participant’s position, except as a result of Partial Disability or Total and Permanent Disability; (ii) the Participant’s failure to perform his or her material obligations under his or her employment agreement, if any, except as a result of Partial Disability or Total and Permanent Disability, or a material breach by the Participant of the Company’s written policies concerning discrimination, harassment or securities trading; (iii) the Participant’s refusal or failure to follow lawful directives of the Board or his or her supervisor, except as a result of Partial Disability or Total and Permanent Disability; (iv) the Participant’s commission of an act of fraud, theft, or embezzlement; (v) the Participant’s indictment for or conviction of a felony or other crime involving moral turpitude; or (vi) the Participant’s intentional breach of fiduciary duty; provided, however, that the Participant shall have thirty (30) days after written notice from the Board (or the Committee) to remedy any actions alleged under subsections (i), (ii) or (iii) in the manner reasonably specified by the Board (or the Committee).
c.    “Partial Disability” shall mean the Participant’s inability because of any physical or emotional illness lasting no more than ninety (90) days to perform the employment duties assigned to him or her for more than twenty (20) hours per week (and including any period of short term total absence due to illness or injury, including recovery from surgery, but in no event lasting more than the ninety (90) day period).
3.Vesting.  Except as specifically provided in this Agreement and subject to certain restrictions and conditions set forth in the Plan, the Awarded Shares shall vest as follows:

The total Awarded Shares shall vest on the [________] anniversary of the Date of Grant, provided the Participant is employed by (or if the Participant is a Contractor or an Outside Director, is providing services to) the Company or a Subsidiary on that date.

Notwithstanding the foregoing, if within twelve (12) months following a Change in Control, the Participant incurs a Termination of Service by the Company without Just Cause or by the Participant for Good Reason, then effective immediately prior to such Termination of Service, all Awarded Shares not previously vested shall thereupon immediately become fully vested.
4.Forfeiture of Awarded Shares.  Awarded Shares that are not vested in accordance with Section 3 shall be forfeited upon the Participant’s Termination of Service.  Upon forfeiture, all of the Participant’s rights with respect to the forfeited Awarded Shares shall cease and terminate, without any further obligations on the part of the Company.  

5.Restrictions on Awarded Shares.  Subject to the provisions of the Plan and the terms of this Agreement, from the Date of Grant until the date the Awarded Shares are vested in accordance with Section 3 and are no longer subject to forfeiture in accordance with Section 4 (the “Restriction Period”), the Participant shall not be permitted to sell, transfer, pledge, hypothecate, margin, assign or otherwise encumber any of the Awarded Shares.  Except for these limitations, the Committee may in its sole discretion, remove any or all of the restrictions on such Awarded Shares whenever it may determine that, by reason of changes in applicable laws or changes in circumstances after the date of this Agreement, such action is appropriate.

6.Legend.  The following legend shall be placed on all certificates issued representing Awarded Shares:

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On the face of the certificate:

“Transfer of this stock is restricted in accordance with conditions printed on the reverse of this certificate.”

On the reverse:

“The shares of stock evidenced by this certificate are subject to and transferable only in accordance with that certain Matador Resources Company Amended and Restated 2012 Long-Term Incentive Plan, a copy of which is on file at the principal office of the Company in Dallas, Texas and that certain Restricted Stock Award Agreement dated as of [__________________], by and between the Company and the recordholder named on the face of this certificate.  No transfer or pledge of the shares evidenced hereby may be made except in accordance with and subject to the provisions of said Plan and Award Agreement.  By acceptance of this certificate, any holder, transferee or pledgee hereof agrees to be bound by all of the provisions of said Plan and Award Agreement.”

The following legend shall be inserted on a certificate evidencing Common Stock issued under the Plan if the shares were not issued in a transaction registered under the applicable federal and state securities laws:

“Shares of stock represented by this certificate have been acquired by the holder for investment and not for resale, transfer or distribution, have been issued pursuant to exemptions from the registration requirements of applicable state and federal securities laws, and may not be offered for sale, sold or transferred other than pursuant to effective registration under such laws, or in transactions otherwise in compliance with such laws, and upon evidence satisfactory to the Company of compliance with such laws, as to which the Company may rely upon an opinion of counsel satisfactory to the Company.”

All Awarded Shares owned by the Participant shall be subject to the terms of this Agreement and shall be represented by a certificate or certificates bearing the foregoing legend.

7.Delivery of Certificates; Registration of Shares.  The Company shall deliver certificates for the Awarded Shares to the Participant or shall register the Awarded Shares in the Participant’s name, free of restriction under this Agreement, promptly after, and only after, the Restriction Period has expired without forfeiture pursuant to Section 4.  In connection with any issuance of a certificate for Restricted Stock, the Participant shall endorse such certificate in blank or execute a stock power in a form satisfactory to the Company in blank and deliver such certificate and executed stock power to the Company.  

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8.Rights of a Shareholder.  Except as provided in Section 4 and Section 5 above, the Participant shall have, with respect to his Awarded Shares, all of the rights of a shareholder of the Company, including the right to vote the shares, and the right to receive any dividends thereon.    

9.Voting.  The Participant, as record holder of the Awarded Shares, has the exclusive right to vote, or consent with respect to, such Awarded Shares until such time as the Awarded Shares are transferred in accordance with this Agreement; provided, however, that this Section 9 shall not create any voting right where the holders of such Awarded Shares otherwise have no such right.

10.Adjustment to Number of Awarded Shares.  The number of Awarded Shares shall be subject to adjustment in accordance with Articles 11-13 of the Plan.

11.Restrictive Covenants.
a.Confidential Information and Non-Disclosure. During the course of the Participant’s employment with the Company, the Participant will receive, certain confidential information and trade secrets, which includes but is not limited to production data, drilling schedules, financial results before they are disclosed publicly, technical data, customer and vendor lists, management methods, operating techniques, prospective acquisitions, employee lists, training manuals and procedures, personnel evaluation procedures, financial reports and/or other confidential information and knowledge concerning the business of the Company and its affiliates (hereinafter collectively referred to as "Confidential Information") which the Company desires to protect.  The Participant understands and agrees that the Confidential Information is confidential and the Participant agrees not to disclose or reveal the Confidential Information to anyone outside the Company. Additionally, the Participant may receive Confidential Information and work on some projects that are not widely known throughout the Company, and the Participant agrees to not disclose or reveal such Confidential Information or details about the projects to any other person (including other employees of the Company).  The Participant further agrees not to use or disclose the Confidential Information in order to compete with the Company at any time during or after the Participant’s employment with the Company.  
b.Non-Solicitation. The Participant understands and acknowledges that the Company expends significant time and expense in recruiting and training its employees and that the loss of employees would cause significant and irreparable harm to the Company.  During the Restricted Period, the Participant agrees on his or her own behalf and on behalf of his or her affiliates that, without the prior written consent of the Board, the Chairman of the Board or the Chief Executive Officer, they shall not, directly or indirectly, (i) solicit for employment or a contracting relationship, or employ or retain any person who is or has been, within six months prior to such time, employed by or engaged as an individual independent contractor to the Company or its affiliates or (ii) induce or attempt to induce any such person to leave his or her employment or independent contractor relationship with the Company or its affiliates. The Company agrees that the foregoing restriction is not intended to apply generally to companies providing services to the Company, such as rig and oilfield services providers, or lenders. 
c.“Restricted Period” means the period of time from the Date of Grant through (i) the date that is six (6) months after the Participant’s Termination of Service, if the Participant terminates his or her employment for Good Reason or if the Participant’s employment terminates due to Total and Permanent Disability, or (ii) the date that is twelve (12) months after the Participant’s Termination 

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of Service, if the Participant’s employment terminates for any reason other than Good Reason or Total and Permanent Disability.
12.Specific Performance.  The parties acknowledge that remedies at law will be inadequate remedies for breach of this Agreement and consequently agree that this Agreement shall be enforceable by specific performance.  The remedy of specific performance shall be cumulative of all of the rights and remedies at law or in equity of the parties under this Agreement.

13.Participant’s Representations.  Notwithstanding any of the provisions hereof, the Participant hereby agrees that he or she will not acquire any Awarded Shares, and that the Company will not be obligated to issue any Awarded Shares to the Participant hereunder, if the issuance of such shares shall constitute a violation by the Participant or the Company of any provision of any law or regulation of any governmental authority.  Any determination in this connection by the Company shall be final, binding, and conclusive.  The rights and obligations of the Company and the rights and obligations of the Participant are subject to all applicable laws, rules, and regulations.

14.Investment Representation.  Unless the Awarded Shares are issued in a transaction registered under applicable federal and state securities laws, by his or her execution hereof, the Participant represents and warrants to the Company that all Common Stock which may be purchased and or received hereunder will be acquired by the Participant for investment purposes for his or her own account and not with any intent for resale or distribution in violation of federal or state securities laws.  Unless the Common Stock is issued to him or her in a transaction registered under the applicable federal and state securities laws, all certificates issued with respect to the Common Stock shall bear an appropriate restrictive investment legend and shall be held indefinitely, unless they are subsequently registered under the applicable federal and state securities laws or the Participant obtains an opinion of counsel, in form and substance satisfactory to the Company and its counsel, that such registration is not required.

15.Participant’s Acknowledgments.  The Participant acknowledges that a copy of the Plan has been made available for his or her review by the Company, and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts this Award subject to all the terms and provisions thereof.  The Participant hereby agrees to accept as binding, conclusive, and final all decisions or interpretations of the Committee or the Board, as appropriate, upon any questions arising under the Plan or this Agreement.

16.Law Governing.  This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Texas (excluding any conflict of laws rule or principle of Texas law that might refer the governance, construction, or interpretation of this Agreement to the laws of another state).

17.No Right to Continue Service or Employment.  Nothing herein shall be construed to confer upon the Participant the right to continue in the employ or to provide services to the Company or any Subsidiary, whether as an Employee or as a Contractor or as an Outside Director, or interfere with or restrict in any way the right of the Company or any Subsidiary to discharge the Participant as an Employee, Contractor, or Outside Director at any time.  Nothing herein shall be construed to modify the terms of any employment agreement or independent contractor agreement. 

18.Legal Construction.  In the event that any one or more of the terms, provisions, or agreements that are contained in this Agreement shall be held by a court of competent jurisdiction to be invalid, illegal, or unenforceable in any respect for any reason, the invalid, illegal, or unenforceable term, provision, or agreement shall not affect any other term, provision, or agreement that is contained in this Agreement and 

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this Agreement shall be construed in all respects as if the invalid, illegal, or unenforceable term, provision, or agreement had never been contained herein.

19.Covenants and Agreements as Independent Agreements.  Each of the covenants and agreements that are set forth in this Agreement shall be construed as a covenant and agreement independent of any other provision of this Agreement.  The existence of any claim or cause of action of the Participant against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants and agreements that are set forth in this Agreement.

20.Entire Agreement.  This Agreement together with the Plan supersede any and all other prior understandings and agreements, either oral or in writing, between the parties with respect to the subject matter hereof and constitute the sole and only agreements between the parties with respect to the said subject matter.  All prior negotiations and agreements between the parties with respect to the subject matter hereof are merged into this Agreement.  Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party or by anyone acting on behalf of any party, which are not embodied in this Agreement or the Plan and that any agreement, statement or promise that is not contained in this Agreement or the Plan shall not be valid or binding or of any force or effect.

21.Parties Bound.  The terms, provisions, and agreements that are contained in this Agreement shall apply to, be binding upon, and inure to the benefit of the parties and their respective heirs, executors, administrators, legal representatives, and permitted successors and assigns, subject to the limitation on assignment expressly set forth herein.  No person shall be permitted to acquire any Awarded Shares without first executing and delivering an agreement in the form satisfactory to the Company making such person or entity subject to the restrictions on transfer contained herein.

22.Modification.  No change or modification of this Agreement shall be valid or binding upon the parties unless the change or modification is in writing and signed by the parties.  Notwithstanding the preceding sentence, the Company may amend the Plan to the extent permitted by the Plan.

23.Headings.  The headings that are used in this Agreement are used for reference and convenience purposes only and do not constitute substantive matters to be considered in construing the terms and provisions of this Agreement.

24.Gender and Number.  Words of any gender used in this Agreement shall be held and construed to include any other gender, and words in the singular number shall be held to include the plural, and vice versa, unless the context requires otherwise.

25.Notice.  Any notice required or permitted to be delivered hereunder shall be deemed to be delivered only when actually received by the Company or by the Participant, as the case may be, at the addresses set forth below, or at such other addresses as they have theretofore specified by written notice delivered in accordance herewith:

a.    Notice to the Company shall be addressed and delivered as follows:

Matador Resources Company
5400 LBJ Fwy, Suite 1500
Dallas, TX 75240
Attn:  General Counsel

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Facsimile:  (972) 371-5201

b.    Notice to the Participant shall be addressed and delivered as set forth on the signature page.

26.Tax Requirements.  The Participant is hereby advised to consult immediately with his or her own tax advisor regarding the tax consequences of this Agreement, the method and timing for filing an election to include this Agreement in income under Section 83(b) of the Code, and the tax consequences of such election.  By execution of this Agreement, the Participant agrees that if the Participant makes such an election, the Participant shall provide the Company with written notice of such election in accordance with the regulations promulgated under Section 83(b) of the Code.  The Company or, if applicable, any Subsidiary (for purposes of this Section 26, the term “Company” shall be deemed to include any applicable Subsidiary), shall have the right to deduct from all amounts paid in cash or other form in connection with the Plan, any Federal, state, local, or other taxes required by law to be withheld in connection with this Award.  The Company may, in its sole discretion, also require the Participant receiving shares of Common Stock issued under the Plan to pay the Company the amount of any taxes that the Company is required to withhold in connection with the Participant’s income arising with respect to this Award.  Such payments shall be required to be made when requested by Company and may be required to be made prior to the delivery of any certificate representing shares of Common Stock.  Such payment may be made (i) by the delivery of cash to the Company in an amount that equals or exceeds (to avoid the issuance of fractional shares under (iii) below) the required tax withholding obligations of the Company; (ii) the actual delivery by the Participant to the Company of shares of Common Stock that the Participant has not acquired from the Company within six (6) months  prior thereto, which shares so delivered have an aggregate Fair Market Value that equals or exceeds (to avoid the issuance of fractional shares under (iii) below) the required tax withholding payment; (iii) the Company’s withholding of a number of shares to be delivered upon the vesting of this Award, which shares so withheld have an aggregate Fair Market Value that equals (but does not exceed) the required tax withholding payment; or (iv) any combination of (i), (ii), or (iii) or any other method consented to by the Company in writing.  The Company may, in its sole discretion, withhold any such taxes from any other cash remuneration otherwise paid by the Company to the Participant.   

* * * * * * * * * *

[Remainder of Page Intentionally Left Blank.
Signature Page Follows]

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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer, and the Participant, to evidence his or her consent and approval of all the terms hereof, has duly executed this Agreement, as of the date specified in Section 1 hereof.

	
				
	COMPANY:
	 

	 
	 
	 
	 

	MATADOR RESOURCES COMPANY

	 
	 

	 
	 
	 
	 

	By:
	 
	 
	 

	Name:
	 
	 
	 

	Title:
	 
	 
	 

	
				
	PARTICIPANT:
	 

	 
	 
	 
	 

	 

	Signature
	 

	 
	 
	 
	 

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Signature Page to Restricted Stock Award AgreementExhibit

Exhibit 10.59

MATADOR RESOURCES COMPANY
NONQUALIFIED DEFERRED COMPENSATION PLAN 
FOR NON-EMPLOYEE DIRECTORS

ARTICLE 1
PURPOSE
 
The purpose of the Matador Resources Company Nonqualified Deferred Compensation Plan for Non-Employee Directors (the “Plan”) is to provide a procedure whereby a member of the Board of Directors (the “Board”) of Matador Resources Company, a Texas corporation (the “Company”), who is not an employee of the Company or any of its subsidiaries (a “Director”) may defer the payment of all or a specified portion of the compensation payable to the Director for services as a Director, including the annual retainer, meeting fees and fees payable to a Director for services above and beyond those services in connection with his or her Board and committee responsibilities. 

ARTICLE 2
DEFINITIONS

2.1“Affiliate” shall have the meaning set forth in Rule 12b 2 promulgated under Section 12 of the Securities Exchange Act of 1934, as amended.

2.2“Annual Retainer Fees” means the annual fees paid to a Director by the Company for service on the Board or committee(s) of the Board, including the Board retainer, lead director retainer, committee chair retainer and member retainers and any other forms of retainer paid to a director for service on the Board. 

2.3“Account” shall have the meaning set forth in Section 5.1.

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

2.5“Change in Control” shall mean a “Change in Control” as defined in the Incentive Plan; provided that, such event also constitutes a change in the Company’s ownership, its effective control or the ownership of a substantial portion of its assets within the meaning of Code Section 409A.

2.6“Code” means the Internal Revenue Code of 1986, as amended.

2.7“Committee” shall have the meaning set forth in Article 3.

2.8“Disabled” or “Disability” means “disability” within the meaning of Code section 409A and Treasury Regulation section 1.409A-3(i)(4).  The determination of the existence of a Disability shall be made by the Committee.

2.9“Effective Date” shall have the meaning set forth in Article 7.

2.10“Equity Grant” means the regular annual grant of equity compensation (in the form of restricted stock or RSUs) that is awarded to the Directors each year as a part of his or her compensation.

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2.11“Fees” shall mean all fees and compensation payable to a Director for his or her services as a director of the Board (including Annual Retainer Fees, Meeting Fees and Equity Grants), as set from time to time by the Board, which may be paid in cash or in Shares. 

“Incentive Plan” means the Matador Resources Company Amended and Restated 2012 Long-Term Incentive Plan, or any successor plan thereto.

2.12“Meeting Fees” shall mean fees that are paid to a Director for attendance at meetings of the Board or meetings of the Board’s committees.

2.13“Payment Election” shall have the meaning set forth in Section 4.1.

2.14“Plan Year” means the twelve (12) month period beginning January 1 and ending December 31, of any given year.

2.15“RSUs” shall have the meaning set forth in Section 4.5(b).

2.16“Separation from Service” shall mean a termination of services provided by a Director as a director of the Board or of the board of directors of any Affiliate, whether voluntarily or involuntarily, as determined by the Committee in accordance with Treasury Regulation section 1.409A-1(h).  In determining whether a Director has experienced a Separation from Service as a director of the Board or of a board of directors of an Affiliate, the following provisions shall apply: (i) if the Director is also an employee at the time of his or her Separation from Service as a Director, the services such Director provides as an employee shall not be taken into account in determining whether the Director has a Separation from Service as a Director for purposes of this Plan (provided that this Plan is not, at the time of such determination, aggregated under Treasury Regulation section 1.409A-1(c)(2)(ii) with any plan in which the Director participates in as an employee, in which case he or she shall not be treated as incurring a Separation from Service for purposes of this Plan until he or she has separated from service both as a Director and as an employee); (ii) if a Director is also providing additional services to the Company as an independent contractor, he or she shall not be treated as incurring a Separation from Service for purposes of this Plan until he or she has separated from service both as a Director and as an independent contractor; and (iii) a Director shall be considered to have experienced a Separation from Service when the facts and circumstances indicate that the Director and the Company and each Affiliate reasonably anticipate that the Director will perform no further services for the Company or any Affiliate as a director of the Board (or the board of directors of any Affiliate) and the Director’s term as a member of the Board has expired.

2.17“Shares” means the common stock, par value $0.01 per share, which the Company is currently authorized to issue or may in the future be authorized to issue, or any securities into which or for which the common stock of the Company may be converted or exchanged, as the case may be.

ARTICLE 3
ADMINISTRATION

The Plan shall be administered by the Board or a committee (the “Committee”) consisting of one or more persons appointed from time to time by the Board.  As of the Effective Date of this Plan, the Board appoints the “Nominating, Compensation and Planning Committee” of the Board to administer the Plan.  Any member of the Committee may be removed at any time, with or without cause, by resolution of the Board, and any vacancy occurring in the membership of the Committee may be filled by appointment by the Board.  The Committee shall select one of its members to act as its Chairman.  A majority of the Committee 

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shall constitute a quorum, and the act of a majority of the members of the Committee present at a meeting at which a quorum is present shall be the act of the Committee.

The Committee, in its discretion, shall (i) interpret the Plan, (ii) prescribe, amend and rescind any rules and regulations necessary or appropriate for the administration of the Plan, (iii) make such other determinations and take such other action as it deems necessary or advisable in the administration of the Plan, (iv) supply any omissions herein, and reconcile and correct any errors or inconsistencies, (v) decide any questions in the administration and application of the Plan, (vi) make equitable adjustments for any mistakes or errors made in the administration of the Plan, (vii) maintain complete and accurate records of all Plan transactions and other data in the manner necessary for proper administration of the Plan, (viii) enforce the terms of the Plan and the rules and regulations it adopts, (ix) review claims and render decisions on claims for benefits under the Plan, (x) furnish the Company or the Directors, upon request, with information that they require for tax or other purposes, (xi) employ agents, attorneys, accountants or other persons (who may be employed by or represent the Company) for such purposes as the Committee considers necessary or desirable in connection with its duties hereunder and (xii) perform any and all other acts necessary or appropriate for the proper management and administration of the Plan.  All such actions or determinations made by the Committee, and the application of rules and regulations to a particular case or issue by the Committee, in good faith, shall not be subject to review by anyone, but shall be final, binding and conclusive on all interested parties.

ARTICLE 4
FEE DEFERRAL ELECTIONS AND PAYMENT

4.1Deferral of Fees.  Subject to Section 4.5 below, each Director may make an election (a “Payment Election”) in accordance with this Article 4 to defer his or her receipt of all or a specified portion of any unearned Fees (any portion of the unearned Fees may be deferred in 1% increments).  A Director may elect to defer up to 100% of his or her Fees.  A Payment Election shall be made in a manner satisfactory to the Committee.  Generally, a Payment Election shall be made by completing and filing the specified election form with the Committee within the applicable period described in Section 4.2 below.  For purposes of Article 4, Fees will be treated as earned in the period during which the services giving rise to such Fees are performed.

4.2Timing of Election.  A Director must make a Payment Election by December 31 of the calendar year prior to the Plan Year that the election becomes effective for the Fees earned in such Plan Year, and the election shall become irrevocable on December 31 of the calendar year in which the election is made.  Such election shall be effective January 1 of the Plan Year following the calendar year of election.  A newly eligible Director may make an initial election to defer payment of all or a specified portion of any unearned Fees for the then current Plan Year if the election is made (i) within thirty (30) days of the Effective Date of the Plan, if such Director is member of the Board on the Effective Date of the Plan, or (ii) within thirty (30) days of the effective date of election to the Board, if such Director becomes elected to the Board following the Effective Date of the Plan.  A Director will not be treated as newly eligible if the Director is otherwise eligible to participate in an agreement, method, program or other arrangement that would be aggregated with this Plan under Code section 409A and Treasury Regulation section 1.409A-1(c)(2).  A Director who has terminated board service and is subsequently re-elected to the Board will be deemed to be newly eligible to the extent permitted under Code section 409A and Treasury Regulation section 1.409A-2(a)(7).  If the election to defer is not made within the applicable thirty (30) day period, or the Director is not otherwise newly eligible, the Director will not be allowed to make a Payment Election for the current Plan Year, but will be allowed to make a Payment Election with respect to unearned Fees for the following Plan Year in accordance the provisions above.

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4.3Effect and Duration of Election.  A Director’s Payment Election to defer will remain in effect from year to year until he or she files a new election in accordance with Section 4.1 or gives notice to terminate such election before the first day of any subsequent Plan Year.  In order for a termination of an election to become effective for a Plan Year, the notice to terminate the election must be received prior to the election becoming irrevocable on the December 31 preceding such Plan Year.  Any balance in the Account of a Director prior to the effective date of termination of a Payment Election to defer shall not be affected thereby and shall be paid only in accordance with prior Payment Elections.  A Payment Election to defer cannot be terminated once the election becomes effective for the Plan Year.  A Director whose election to defer has been terminated may thereafter again file a Payment Election to defer future unearned Fees in accordance with Section 4.1.

4.4Timing of Payment; Form of Payment.  Each Payment Election filed under this Article 4 shall specify the time(s) when a Director shall receive his or her Fees.  Pursuant to such Payment Election, the Director may elect to receive his or her Fees: (i) on the dates on which such Fees are normally paid to a Director; (ii) on or as soon as administratively feasible after the date on which the Director incurs a Separation from Service; (iii) on or as soon as administratively feasible after the date specified by the Director; (iv) upon a Change in Control; or (v) upon the earliest to occur of two or more of the events described in  “(ii),” “(iii)” and/or “(iv)” above.  With respect to receiving, or beginning to receive, a payment in accordance with “(ii),” “(iii),” “(iv)” or “(v)” above, a Director must elect to receive such payment in the applicable election form and in accordance with this Article 4.  Each Payment Election filed under this Article 4 shall specify the form(s) in which a Director shall receive his or her Fees.  Pursuant to such Payment Election, the Director may elect to receive his or her Fees: (x) in cash; (y) as Shares with a fair market value equal to his or her Fees; or (z) as a combination of cash and Shares with an aggregate fair market value equal to his or her Fees.  All Fees settled in Shares shall be made with Shares issued pursuant to the Incentive Plan; provided, however, if there are insufficient Shares available under the Incentive Plan, such Fees shall be settled in cash.  If a Director has elected to defer the payment of his or her Fees, a Payment Election filed under this Article 4 shall specify whether the payment of his or her Fees is to be settled by delivering cash and/or Shares to the Director in either a lump sum, or substantially equal annual installments over a period not to exceed ten (10) years.  Any fractional Shares credited to a Director at the time of a distribution shall be paid in cash at the time of such distribution.  

4.5Deferrals of Equity Grants.  

a.With respect to Equity Grants that are Shares of “restricted stock,” for new Equity Grants that occur annually or on a regular basis, a Payment Election to defer the receipt of the Shares must be made prior to the date of grant by the last day of the taxable year preceding the year of the date of grant.  Such an election may specify the Shares to be distributed on a specified date that is later than the date on which the shares of restricted stock would have otherwise vested (or some other permissible payment event under Code section 409A).  With respect to Equity Grants of restricted stock that have already been granted, a Payment Election to defer receipt of the Shares may be made, provided that the election to defer the receipt of the Shares is made at least one year prior to the applicable vesting date and the election defers the receipt of the Shares by at least five years from the applicable vesting date.  Shares of restricted stock that are vesting within one year from the date of election or have already vested may not be deferred.

b.With respect to Equity Grants that are “restricted stock units” (“RSUs”), for new Equity Grants that occur annually or on a regular basis, a Payment Election to defer the receipt of the Shares underlying the RSUs must be made prior to the date of grant by the last day of the taxable year preceding the year of the date of grant.  Such an election may specify the Shares to be distributed on a specified date that is later than the date on which the RSUs would have otherwise converted into Shares (or some other 

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permissible payment event under Code section 409A).  With respect to Equity Grants of RSUs that have already been granted, a Payment Election to defer conversion of the RSUs and receipt of the Shares may be made, provided that the election to defer the conversion of the RSUs and receipt of the Shares is made at least one year prior to the applicable conversion date and the election defers the conversion of the RSUs and receipt of the Shares by at least five years from the applicable conversion date.  RSUs that convert into Shares within one year from the date of election or have already converted may not be deferred.

4.6Death; Disability.  If a Director dies before his or her deferred Fees have been distributed pursuant to this Plan, such deferred Fees shall be paid in a single lump-sum payment (in cash and/or Shares, as elected) as soon as administratively feasible, but within ninety (90) days after the Director’s death, to the Director’s Beneficiary (defined below).  If a Director becomes Disabled before his or her deferred Fees have been distributed pursuant to this Plan, such deferred Fees shall be paid to the Director in a single lump-sum payment (in cash and/or Shares, as elected) as soon as administratively feasible, but within ninety (90)  days after the date of the Director’s Disability.  Notwithstanding any Payment Election, any Equity Grant (or any portion thereof) that has not vested as of the date of death or Disability shall vest or convert into Shares, as applicable, solely in accordance with the terms of the Equity Grant (and any award agreement governing such Equity Grant).  A Director may designate one or more beneficiaries (which may be an entity other than a natural person) (a “Beneficiary”) to receive any payments to be made upon the Director’s death.  At any time, and from time to time, any such designation may be changed or canceled by the Director without notice to or the consent of any Beneficiary. Any such designation, change or cancellation shall be effective upon receipt by the Committee of written notice thereof.  If a Director designates more than one Beneficiary, any payments to such Beneficiaries shall be made in equal shares unless the Director has designated otherwise.  If no Beneficiary has been named by the Director, or if the designated Beneficiary or Beneficiaries shall have predeceased him or her, or shall no longer exist, the balance shall be paid to the Director’s estate.

ARTICLE 5
ACCOUNTS

5.1Director Accounts.  There shall be established for each Director participating in the Plan an account on the books of the Company, to be designated as such Director’s deferred compensation account (“Account”).  Such Account shall be a notional account for the purpose of recording amounts credited on behalf of each Director under the Plan, and any income, expenses, gains, losses or distributions included thereon.  Unless and until a Change in Control shall be deemed to have occurred, all amounts deferred pursuant to the Plan, together with any further amounts accrued thereon, as hereinafter provided, shall be held in the general funds of the Company and shall be credited to the Director’s Account. The Company shall furnish annually to each participating Director a statement of such Director’s Account.

5.2Treatment of Accounts Upon a Change in Control.  In the event a Change in Control shall be deemed to have occurred, the Company’s liability for benefits under the Plan (to the extent not paid out upon such Change in Control) shall be funded under an irrevocable grantor trust, to the extent permitted under Code section 409A and the Treasury Regulations thereunder, and as described below, which shall be subject to the claims of the Company’s general creditors.  To the extent permitted by Code section 409A and the regulations thereunder, the Board will have the authority to transfer assets of the Company, its Affiliates or subsidiaries in an amount sufficient to pay benefits that have accrued under the Plan up to the date of a Change in Control, to a grantor trust to be established by the Company for the purpose of paying benefits hereunder; and the Directors’ Accounts shall thereafter be paid to the Directors from such trust in accordance with the terms of the Plan.  On each anniversary date of the date of the Change in Control, to the extent permitted by Code section 409A and the Treasury Regulations thereunder, the Company (or its successor) 

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shall transfer to the grantor trust an amount necessary to pay all benefits accrued under the Plan during the preceding twelve (12) months.

ARTICLE 6
CODE SECTION 409A

This Plan is intended to comply with Code section 409A and shall be interpreted and administered in compliance with Code section 409A and the Treasury Regulations issued thereunder.  Notwithstanding anything in this Plan (or a Payment Election) to the contrary, in the event the Account of a Director who should become a “specified employee” (within the meaning of Code section 409A and Treasury Regulations thereunder) becomes payable due to such Director’s Separation from Service, then such payment shall not be made or commence until the earliest of (i) the expiration of the six (6) month period measured from the date of the Director’s Separation from Service or (ii) the date of the Director’s death following such Separation from Service.  Upon the expiration of the foregoing deferral period, any payment which would have otherwise been made during that period in the absence of the foregoing shall be made to the Director or the Director’s Beneficiary.  A Director shall not have the right to elect a subsequent deferral of payment to a date beyond the elected payment event.  Except as provided in Code section 409A and Treasury Regulation section 1.409A-3(j)(4), neither the Director nor the Company can accelerate the time or schedule of any payment or amount scheduled to be paid pursuant to the terms of the Plan and any Payment Election. The Committee will have the discretion to accelerate payments in accordance with the provisions of Code section 409A and Treasury Regulation section 1.409A-3(j)(4) or its successor (provided that only the Board will have the discretion to accelerate payments in accordance with the provisions of Treasury Regulation section 1.409A-3(j)(4)(ix) or its successor).

ARTICLE 7
EFFECTIVE DATE; AMENDMENT, MODIFICATION, SUSPENSION
The effective date of this Plan shall be as of April 1, 2016 (the “Effective Date”).  This Plan shall remain in effect until it is terminated by the Board or the Committee.  The Board or the Committee may, at any time, without the consent of the Directors, amend, suspend or terminate the Plan. Subject to the terms of this Plan and any applicable laws and regulations, no amendment, suspension or termination of the Plan shall operate to annul an election already in effect for the then current Plan Year or for any preceding Plan Year and Fees shall continue to be deferred until the end of such current Plan Year in accordance with a Director’s then current election; and the balance in the Director’s Account shall continue to be payable in accordance with a Director’s then current election.  After termination of the Plan, no further deferral of Fees may be made.  

ARTICLE 8
MISCELLANEOUS PROVISIONS

8.1Nonassignability.  During a Director’s lifetime, the right to the balance in his or her Account shall not be transferable or assignable; and any attempt to alienate, assign, pledge, sell, transfer or assign prior to the receipt of any amount from such Account, or any levy, attachment, execution or similar process upon the Account shall be null and void ab initio.  Nothing contained in the Plan shall create, or be deemed to create, a trust, actual or constructive, for the benefit of a Director or his or her Beneficiary, or shall give, or be deemed to give, to any Director or his or her Beneficiary any interest in any specific assets of the Company.

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8.2Indemnification of Committee; No Duties; Waiver of Claims.  No member of the Committee, nor any officer or employee of the Company acting with or on behalf of the Committee, shall be personally liable for any action, determination or interpretation taken or made in good faith with respect to the Plan, and all of the members of the Committee and each and any officer or employee of the Company acting with or on their behalf shall be indemnified and protected by the Company in respect of any such action, determination or interpretation to the fullest extent provided by law.  Except to the extent required by any unwaiveable requirement under applicable law, no member of the Committee (and no officer, employee or Affiliate of the Company) shall have any duties or liabilities, including without limitation any fiduciary duties, to any Director (or any person claiming by and through any Director) as a result of this Plan, any Payment Election or any Claim arising hereunder and, to the fullest extent permitted under applicable law, each Director irrevocably waives and releases any right or opportunity such Director might have to assert (or participate or cooperate in) any Claim against any member of the Committee and any officer, employee or Affiliate of the Company arising out of this Plan.

8.3Governing Law.  This Plan shall be construed in accordance with the laws of the State of Texas, without giving effect to principles of conflict of laws, and the rights and obligations created hereby shall be governed by the laws of the State of Texas.  The Director’s sole remedy for any claim, liability or obligation of any nature, arising out of or relating to this Plan or an alleged breach of this Plan, or a Payment Election (collectively, “Claims”) shall be against the Company, and no Director shall have any claim or right of any nature against any Affiliate or any owner or existing or former director, officer or employee of the Company or any Affiliate.  The individuals and entities described above in this Section 8.3 (other than the Company) shall be third-party beneficiaries of this Plan for purposes of enforcing the terms of this Section 8.3.

8.4No Trust or Plan Funding.  The Company (and not any of its Affiliates) will be solely responsible for the payment of all amounts hereunder.  Except as provided in Section 5.2, the Plan shall at all times be entirely unfunded and no provision shall at any time be made with respect to segregating assets of the Company for payment of any amounts hereunder.  Neither the Plan nor any Payment Election shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company and any Director.  No Director, Beneficiary or other person shall have any interest in any particular assets of the Company (or any of its Affiliates) by reason of the right to receive any amounts under the Plan.  To the extent that any Director has a right to receive any payment from the Company, such right shall be no greater than the right of any general unsecured creditor of the Company.

8.5Binding Effect.  This Plan shall be binding upon and inure to the benefit of the Company, its successors and assigns, and the Directors, and their heirs, assigns and personal representatives.

8.6Construction of Plan.  The captions used in this Plan are for convenience only and shall not be construed in interpreting the Plan.  Whenever the context so requires, the masculine shall include the feminine and neuter, and the singular shall also include the plural, and conversely.

8.7Integrated Plan.  This Plan constitutes the final and complete expression of agreement with respect to the subject matter hereof.

8.8Severability of Provisions.  If any of the provisions of the Plan or the application thereof to any Director shall be held invalid, neither the remainder of the Plan nor its application to any other Director shall be affected thereby.
 
* * * * * * * *

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IN WITNESS WHEREOF, the Company has caused this instrument to be executed as of February 19, 2016, by its Chief Executive Officer and Assistant Secretary pursuant to prior action taken by the Board.
	
				
	MATADOR RESOURCES COMPANY

	 
	 

	 
	 
	 
	 

	By:
	 
	/s/ Joseph Wm. Foran
	 

	Name:
	 
	Joseph Wm. Foran
	 

	Title:
	 
	Chairman and CEO
	 

Attest:

	
			
	By:
	/s/ Craig N. Adams

	 
	Craig N. Adams, Assistant Secretary

Signature Page to the Matador Resources Company Nonqualified Deferred Compensation Plan for Non-Employee Directors

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