Document:

Exhibit 103

		

			EXHIBIT 10.3

		

		

			 

		

		
			3D SYSTEMS Corporation
		

		
			Appendix A to the 2015 Incentive Plan
		

		
			 
		

		
			This Appendix A  (“Israeli Appendix”) to the 2015 Incentive Plan of 3D Systems Corporation (the “Plan”) is hereby established effective as of May  19, 2015.
		

		
			 
		

		
			1.          Definitions 
		

		
			As used herein, the following terms shall have the meanings hereinafter set forth, unless the context clearly indicates to the contrary. Any capitalized term used herein which is not specifically defined in this Israeli Appendix shall have the meaning set forth in the Plan.
		

		
			 
		

		
			1.1       “Affiliate”  – for purposes of eligibility under the Israeli Appendix shall have the meaning of the term in the Plan, provided however that any affiliated entity shall be an “employing company” within the meaning of such term in Section 102 of the Ordinance.
		

		
			 
		

		
			1.2       “Affiliated Company”-  either an Affiliate or a Subsidiary.
		

		
			 
		

		
			1.3       “Election” – the election by the Company, with respect to grant of 102 Trustee Awards, of either one of the following tax tracks – “Capital Gains Tax Track” or “Ordinary Income Tax Track”, as provided in and in accordance with the Section 102.
		

		
			 
		

		
			1.4           “Exercised Stock” – (i) shares of Common Stock purchased pursuant to the exercise of a Stock Option; and/or (ii) any shares of Common Stock issued by the Company pursuant to Section 7(e)(ii) to the Plan. 
		

		
			 
		

		
			1.5         “Fair Market Value” – solely for the purposes of 102 Trustee Awards, if and to the extent Section 102 prescribes a specific mechanism for determining the Fair Market Value of any Common Stock issued in connection with an Award, then notwithstanding the definition in the Plan, the Fair Market Value of 102 Trustee Awards shall be as prescribed in Section 102, if applicable.
		

		
			 
		

		
			1.6       “102 Non-Trustee Award” – an Award granted not through a Trustee in accordance with and pursuant to Section 102.
		

		
			 
		

		
			1.7       “3(i) Award” – an Award granted pursuant to Section 3(i) of the Ordinance.
		

		
			 
		

		
			1.8         “Award”  – a grant of an Option or Restricted Stock Unit.
		

		
			 
		

		
			1.9         “Ordinance” – the Israeli Income Tax Ordinance [New Version], 1961, and the rules and regulations promulgated thereunder, as are in effect from time to time, and any similar successor rules and regulations.
		

		
			 
		

		
			1.10     “Restricted Period” – as defined in Section 4.3 hereinbelow.
		

		
			 
		

		
			1.11     “Section 102” – Section 102 of the Ordinance and the rules and regulations promulgated thereunder, as are in effect from time to time, and any similar successor rules and regulations.
		

		
			 
		

		
			1.12     “Subsidiary” - for purposes of eligibility under the Israeli Appendix shall have the meaning of the term in the Plan, provided however that any affiliated entity shall be an “employing company” within the meaning of such term in Section 102 of the Ordinance.
		

		
			 
		

		
			1.13     “Trustee” – the trustee designated or replaced by the Company and/or applicable Affiliated Company for the purposes of the Plan and approved by the Israeli Tax Authorities all in accordance with the provisions of Section 102.
		

		
			 
		

		

		

		 

		

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			EXHIBIT 10.3

		

		

			 

		

		
		

		
			1.14     “102 Trustee Award” – an Award granted through a Trustee in accordance with and pursuant to Section 102.
		

		
			 
		

		
			1.15     “102 Trustee Option” – an Option granted through a Trustee in accordance with and pursuant to Section 102.
		

		
			 
		

		
			2.         General
		

		
			2.1         The purpose of this Israeli Appendix is to establish certain rules and limitations applicable to Awards granted to Participants, the grant of Awards to whom (or, as applicable, the exercise thereof by whom) are subject to taxation by the Israeli Income Tax (“Israeli Participants”), in order that such Awards may comply with the requirements of Israeli law, including, if applicable, Section 102. 
		

		
			 
		

		
			2.2         The Plan and this Israeli Appendix are complementary to each other and shall be read and deemed as one. In the event of any contradiction, whether explicit or implied, between the provisions of this Israeli Appendix and the Plan, the provisions of this Israeli Appendix shall prevail with respect to Awards granted to Israeli Participants.
		

		
			 
		

		
			2.3           Awards may be granted under this Israeli Appendix in one of the following tax tracks, at the Company’s discretion and subject to applicable restrictions or limitations as provided in applicable law including without limitation any applicable restrictions and limitations in Section 102 regarding the eligibility of Israeli Participants to each of the following tax tracks, based on their capacity and relationship towards the Company: 
		

		
			 
		

		
			(i)      102 Trustee Awards- in such tax track as determined in accordance with the Election; or
		

		
			 
		

		
			(ii)     102 Non-Trustee Awards; or 
		

		
			 
		

		
			(iii)    3(i) Awards.  
		

		
			 
		

		
			For avoidance of doubt, the designation of the Awards to any of the above tax tracks shall be subject to the terms and conditions set forth in Section 102. 
		

		
			 
		

		
			3.         Administration
		

		
			Without derogating from the powers and authorities of the Board detailed in the Plan, the Board and/or the Committee shall have the sole and full discretion and authority, without the need to submit its determinations or actions to the stockholders of the Company for their approval or authorization, unless such approval is required to comply with applicable law, to administer this Israeli Appendix and to take all actions related hereto and to such administration, including without limitation the performance, from time to time and at any time, of any and all of the following:
		

		
			 
		

		
			(a)         the determination of the specific tax track (as described in Section 2.3 above) in which the Awards are to be issued. 
		

		
			 
		

		
			(b)        the Election; 
		

		
			 
		

		
			(c)        the appointment of the Trustee;
		

		
			 
		

		
			(d)        the adoption of forms of Award Agreements to be applied with respect to Israeli Participants (the “Israeli Award Agreement”), incorporating and reflecting, inter alia, relevant provisions regarding the grant of Awards in accordance with this Israeli Appendix, and the amendment or modification from time to time of the terms of such Israeli Award Agreements. 
		

		
			 
		

		
			4.         102 Trustee Awards
		

		
			4.1       Grant in the Name of Trustee:
		

		
			Notwithstanding anything to the contrary in the Plan, 102 Trustee Awards granted hereunder shall be granted to, and any Exercised Stock shall be issued to, and all rights attached to the 102 Trustee 
		

		

		

		 

		

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			EXHIBIT 10.3

		

		

			 

		

		
		

		
			Awards (including bonus shares) shall be issued to, the Trustee, and all such options and shares shall be registered in the name of the Trustee, who shall hold them in trust until such time as they are released by the transfer or sale thereof by the Trustee. In case the requirements of Section 102 for 102 Trustee Awards are not met, then the 102 Trustee Awards may be regarded as 102 Non-Trustee Awards, all in accordance with the provisions of Section 102. Notwithstanding anything to the contrary in the Plan, the Date of Grant of a 102 Trustee Award shall be the date determined by the Board and/or the Committee to be the effective date of the grant of the 102 Trustee Awards to an Israeli Participant, or, if the Board and/or the Committee have not determined such effective date, the date of the resolution of the Board and/or the Committee approving the grant of such Awards, which in the case of 102 Trustee Awards shall not be before the lapse of 30 days (or such other period which may be determined by the Ordinance from time to time) from the date upon which the Plan is first submitted to the relevant Israeli Tax Authorities. 
		

		
			 
		

		
			4.2         Exercise of Vested 102 Trustee Options and applicable actions in respect to Restricted Stock Units:
		

		
			4.2.1
		

		
			(a)        Unless other procedures shall be determined from time to time by the Board and/or the Committee and notified to the Israeli Participants, the mechanism of exercising vested 102 Trustee Options shall be in accordance with the provisions of the Plan, except that any notice of exercise of 102 Trustee Options shall be made in such form and method in compliance with the provisions of Section 102 and shall also be delivered in copy to the authorized representative of the Affiliated Company with which the Israeli Participant is employed and/or engaged, if applicable, and to the Trustee.
		

		
			 
		

		
			(b)        In order to exercise the 102 Trustee Options, the Participant shall deliver to the Trustee, a notice of exercise, in a form as shall be determined by the Trustee, and that will be available at the Company’s principal offices until the expiration of the Stock Options. The Participant shall specify in the notice of exercise the amount of Stock Options that he/she wishes to exercise and his/her election of one of the following alternatives:
		

		
			 
		

		
			i.    Exercise of the Options where the Exercised Stock shall be held by the Trustee for the Participant, in a trust account that shall be opened by the Trustee for the Participant;
		

		
			ii.   Exercise of the Options and sale of the Exercised Stock by the Trustee for the Participant, whether in whole or in part, as shall be determined by the Participant, provided, however, that there is no legal hindrance with respect to the sale of the Exercised Stock (restriction provisions);
		

		
			iii. Exercise of the Options and transfer of the Exercised Stock, that shall be registered in the name of the relevant registration company of a bank (the “Registration Company”), to the Participant’s bank account; and
		

		
			(c)        The Trustee shall verify with the Company the eligibility of the Participant to take such actions and shall act as aforesaid, subject to receipt of a written approval by the Company that the Participant is entitled to exercise the Options or exercise the Options and sell the Exercised Stock or exercise the Options and release the Exercised Stock, as the case may be.
		

		
			 
		

		
			4.2.2        Upon the lapse of the restrictions applicable to the Restricted Stock Units pursuant to the Plan, should the Company elect to issue any Common Stock as per Section 7(e)(ii) to the Plan, the Participant may elect to take any of the following actions, and shall deliver to the Trustee a notice with respect to his/her election with respect thereto (with a copy to the Company and to the authorized representative of the Affiliated Company with which the Israeli Participant is employed and/or engaged, if applicable):
		

		
			i.        The sale of the Exercised Stock by the Trustee for the Participant, whether in whole or in part, as shall be determined by the Participant, provided, however, that there is no legal hindrance with respect to the sale of the Exercised Stock (restriction provisions); and
		

		

		

		 

		

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			EXHIBIT 10.3

		

		

			 

		

		
		

		
			ii.       The transfer by the Trustee of the Exercised Stock, that shall be registered in the name of the relevant Registration Company to the Participant’s bank account.
		

		
			4.2.3
		

		
			(a)         (i) In the event that the Participant has elected the alternative specified in Sub-Section 4.2.1(b)(i) above, the Trustee shall transfer to the Participant a written confirmation that the Trustee has received from the Participant the Exercise Price specified in the notice of exercise; and (ii) in the event the Company elects to issue any Common Stock as per Section 7(e)(ii) to the Plan, the Company shall provide the Participant and the Trustee with written notice of its election thereto. The Exercised Stock issued pursuant to this Sub-Section 4.2.3(a) shall be issued in the name of the Trustee and shall be registered in the Trustee’s name in the Company’s books, or alternatively be allocated in the name of the Registration Company and shall be deposited in a trust account in the name of the Trustee (provided, however, that should the Committee determines that any actual payment by or consideration from the Participant should be made (“RSU Consideration”) no such action shall be taken until such RSU consideration has been provided by the Participant).
		

		
			 
		

		
			(b)        In the event that the Participant has elected the alternative specified in Sub-Section 4.2.1(b)(ii) or Sub-Section 4.2.2(i) above, namely, requested to sell on his behalf the Exercised Stock, the Participant shall instruct the Trustee to sell the Exercised Stock at the New York Stock Exchange  and, solely with respect to 102 Trustee Options, transfer to the Company the Exercise Price specified in the notice of exercise (provided that should the Restricted Share Units be subject to the provision by the Participant of an RSU Consideration no action pursuant to this Section 4.2.3(b) shall be taken by the Trustee prior to receipt of the entire RSU Consideration from the Participant). Additionally, the Participant shall instruct the Trustee to deduct the amount of taxes (including national insurance and health insurance payments and any other mandatory payment, if applicable) and any other mandatory payments that shall be applicable to the Participant with respect to the exercise of Options, if applicable, and sale of Exercised Stock. The Exercised Stock shall be allocated in the name of the Trustee and shall be registered in the Trustee’s name in the Company’s books, or alternatively be allocated in the name of the Registration Company and shall be transferred to the Trustee, subject to the instructions of the New York Stock Exchange, if any. In the event that the Participant has instructed the Trustee to sell the Exercised Stock, he/she shall not be allowed to cancel his/her notice and instruction, in the event that the exercise and/or sale have been already performed. Upon reception of the consideration from the sale, the Trustee shall use the consideration as follows: (1) deduct from such consideration the amount of tax payments applicable according to law and approvals of the tax authorities and other mandatory payments applicable to the Participant with respect to the exercise of the Options, if applicable, and the sale of the Exercised Stock, in amounts with respect to which the Company has informed the Trustee and shall transfer these amounts to the tax authorities, whether directly or through the Company, as the case may be; (2) deduct from such consideration the Exercise Price or, if applicable, the RSU Consideration, and transfer the Exercise Price or RSU Consideration, as applicable, to the Company; (3) deduct from such consideration the fees to which the Trustee and the performer of the sale are entitled to according to the provisions of the agreement that shall be executed between the Company, the Trustee and the performer of the sale; (4) transfer to the Participant’s bank account the consideration from the sale after deduction of the applicable amounts specified in sub-sections (1), (2) and (3) above.
		

		
			 
		

		
			(d)        In the event that the Participant has elected the alternative specified in Sub-Section 4.2.1(b)(iii) or Sub-Section 4.2.2(ii) above, namely, requested that the Exercised Stock shall be transferred at his/her disposal, he/she shall attach to the notice a written approval by the Trustee that the Trustee has received from the Participant the Exercise Price, or, if applicable, the RSU Consideration, specified in the notice and an approval by the tax assessor that the Participant has paid the income tax applicable to the Participant with respect to the aforesaid transfer of Exercised Stock, in accordance with Section 102, if applicable, or any other law, together with the Company’s approval that the Participant has paid the remaining mandatory payments applicable to the Participant. The Trustee shall transfer, whether directly or through the Company, the amount of tax and other mandatory payments to the tax authorities, as the case may be, in the relevant date as required by 
		

		 

		

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			EXHIBIT 10.3

		

		

			 

		

		applicable law. Upon the lapse of 15 business days thereafter, the Trustee shall transfer to the Registration Company the Exercised Stock in favor of the Participant and the Company shall apply to the New York Stock Exchange in order to list the aforesaid Exercised Stock for trade at the New York Stock Exchange.
		

		
			 
		

		
			(e)        The Company shall be entitled to change, at any time, the exercise procedure and the provisions with respect to the sale, as may be required, in order to moderate and improve the exercise procedure, the exercise and release and the exercise and sale, and adjust them to changes of the applicable law, and in light of the experience that the Company shall have in the future with respect to the operation of such procedures. The Company shall notify the Participants with respect to such changes, in the event that the change is relevant to the Participants. The changes shall be made in coordination with the Trustee, if any and subject to the provisions of Section 102, if applicable and the rules and regulations promulgated there under, in the event that they are applicable to the relevant Participants.
		

		
			 
		

		
			4.3       Restrictions on Transfer:
		

		
			(a)        102 Trustee Awards, or any Exercised Stock issued in respect to the 102 Trustee Awards, and all rights attached thereto (including bonus shares), shall be held by the Trustee for such period of time as required by the provisions of Section 102 applicable to Awards granted through a Trustee in the applicable tax track, as per the Election (the “Restricted Period”). 
		

		
			 
		

		
			(b)        Subject to the provisions of Section 102 and any rules or regulation or orders or procedures promulgated thereunder, the Israeli Participant shall provide the Company and the Trustee with a written undertaking and confirmation under which the Israeli Participant confirms that he/she is aware of the provisions of Section 102 and the Elected tax track and agrees to the provisions of the Trust Note executed between the Company and the Trustee, and undertakes not to release, by sale or transfer, the 102 Trustee Awards, and any Exercised Stock issued in respect to the 102 Trustee Awards, and all rights attached thereto (including bonus shares, if any) prior to the lapse of the Restricted Period. The Israeli Participant shall not be entitled to sell or release from trust the 102 Trustee Awards, nor any Exercised Stock issued in respect to the 102 Trustee Awards, nor any right attached thereto (including bonus shares), nor to request the transfer or sale of any of the same to any third party, before the lapse of the Restricted Period. Notwithstanding the above, if any such sale or transfer occurs during the Restricted Period, the sanctions under Section 102 of the Ordinance and under any rules or regulation or orders or procedures promulgated thereunder shall apply to and shall be borne by such Israeli Participant.
		

		
			 
		

		
			(c)        Without derogating and subject to the above, and to all other applicable restrictions in the Plan, this Israeli Appendix, the Award Agreement and applicable law, the Trustee shall not release, by sale or transfer, any Exercised Stock issued in respect to 102 Trustee Awards, and all rights attached thereto (including bonus shares) to the Israeli Participant, or to any third party to whom the Israeli Participant wishes to sell the Exercised Stock (unless the contemplated transfer is by will or laws of descent) unless and until the Trustee has either (a) withheld payment of all taxes required to be paid upon the sale or transfer thereof, if any, or (b) received confirmation either that such payment, if any, was remitted to the tax authorities or of another arrangement regarding such payment, which is satisfactory to the Company and the Trustee. For the removal of doubt, it is clarified that the Trustee may release by sale or transfer to a third party only Exercised Stock (and not Awards).
		

		
			 
		

		
			4.4       Rights as Stockholder:
		

		
			Without derogating from the provisions of the Plan, it is hereby further clarified that with respect to Exercised Stock issued pursuant to the exercise of 102 Trustee Options, as long as they are registered in the name of the Trustee, the Trustee shall be the registered owner of such stocks. Notwithstanding, the Trustee shall not exercise the voting rights conferred by such Exercised Stock issued pursuant to 
		

		

		

		 

		

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			EXHIBIT 10.3

		

		

			 

		

		
		

		
			the exercise of 102 Trustee Options in any way whatsoever, and shall not issue a proxy to any person or entity to vote such stocks (other than to the applicable Israeli Participant, subject to and in accordance with the provisions of Section 102). Notwithstanding, the Company shall be entitled at its sole discretion, and not required, to distribute dividends directly to the Israeli Participants, subject to tax withholding at source.
		

		
			 
		

		
			4.5         Bonus Shares:  
		

		
			All bonus shares to be issued by the Company, if any, with regard to Exercised Stock issued pursuant to the exercise of 102 Trustee Options, while held by the Trustee, shall be registered in the name of the Trustee; and all provisions applying to such Exercised Stock shall apply to bonus shares issued by virtue thereof, if any, mutatis mutandis. Said bonus shares shall be subject to the Restricted Period of the Exercised Stock issued pursuant to the exercise of 102 Trustee Options by virtue of which they were issued. 
		

		
			 
		

		
			4.6       Voting:
		

		
			Without derogating from the provisions of the Plan, solely with respect to Exercised Stock of 102 Trustee Options, such Exercised Stock shall be voted in accordance with the provisions of Section 102.
		

		
			 
		

		
			4.7       Conditions of Issuance:
		

		
			Without derogating from the provisions of Section 13 of the Plan, and in addition thereto, any satisfaction of Withholding Tax Obligation referred to therein shall, in the event of 102 Trustee Awards also need to be satisfactory to the Trustee. 
		

		
			 
		

		
			5.         102 Non-Trustee Awards
		

		
			5.1       102 Non-Trustee Awards granted hereunder shall be granted to, and any Exercised Stock issued in connection with such 102 Non-Trustee Awards shall be issued to, the Israeli Participant.
		

		
			 
		

		
			5.2       Without derogating and subject to the above, and to all other applicable restrictions in the Plan, this Israeli Appendix, the Award Agreement and applicable law, the Exercised Stock issued with respect to the 102 Non-Trustee Awards, and all rights attached thereto (including, if applicable, bonus shares) shall not be transferred unless and until the Company has either (a) withheld payment of all taxes required to be paid upon the sale or transfer thereof, if any, or (b) received confirmation either that such payment, if any, was remitted to the tax authorities or of another arrangement regarding such payment, which is satisfactory to the Company.
		

		
			 
		

		
			5.3       An Israeli Participant to whom 102 Non-Trustee Awards are granted must provide, upon termination of his/her employment, a surety or guarantee to the satisfaction of the Company, to secure payment of all taxes which may become due upon the future transfer of his/her Exercised Stock to be issued in connection with his/her outstanding 102 Non-Trustee Awards, all in accordance with the provisions of Section 102.
		

		
			 
		

		
			6.         3(i) Awards
		

		
			6.1       3(i) Awards granted hereunder shall be granted to, and the Exercised Stock issued pursuant thereto issued to, the Israeli Participant.
		

		
			 
		

		
			6.2         Without derogating and subject to the above, and to all other applicable restrictions in the Plan, this Israeli Appendix, the Award Agreement and applicable law, the Exercised Stock issued in connection with the 3(i) Awards, and all rights attached thereto (including, as applicable, bonus shares) shall not be transferred unless and until the Company has either (a) withheld payment of all taxes required to be paid upon the sale or transfer thereof, if any, or (b) received confirmation either that such payment, if any, was remitted to the tax authorities or of another arrangement regarding such payment, which is satisfactory to the Company.
		

		
			 
		

		
			6.3       The Company may require, as a condition to the grant of the 3(i) Awards, that an Israeli Participant to whom 3(i) Awards are to be granted, provide a surety or guarantee to the satisfaction of the Company, to secure payment of all taxes which may become due upon the future transfer of his/her Exercised Stock to be issued in connection with his/her outstanding 3(i) Awards.  
		

		

		

		 

		

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			EXHIBIT 10.3

		

		

			 

		

		 
		

		
			7.         Tax Consequences
		

		
			Without derogating from and in addition to any provisions of the Plan, any and all tax and/or other mandatory payment consequences arising from the grant or, as applicable, exercise of Awards, the payment for or the transfer or sale of Exercised Stock, or from any other event or act in connection therewith (including without limitation, in the event that the Awards do not qualify under the tax classification/tax track in which they were intended) whether of the Company, an Affiliated Company, the Trustee or the Israeli Participant, including without limitation any non-compliance of the Israeli Participant with the provisions hereof, shall be borne solely by the Israeli Participant. The Company, any applicable Affiliated Company, and the Trustee, may each withhold (including at source), deduct and/or set-off, from any payment made to the Israeli Participant, the amount of the taxes and/or other mandatory payments of which is required with respect to the Awards and/or Exercised Stock. Furthermore, each Israeli Participant shall indemnify the Company, the applicable Affiliated Company and the Trustee, or any one thereof, and to hold them harmless from any and all liability for any such tax and/or other mandatory payments or interest or penalty thereupon, including without limitation liabilities relating to the necessity to withhold, or to have withheld, any such tax and/or other mandatory payments from any payment made to the Israeli Participant.
		

		
			 
		

		
			Without derogating from the aforesaid, each Israeli Participant shall provide the Company and/or any applicable Affiliated Company with any executed documents, certificates and/or forms that may be required from time to time by the Company or such Affiliated Company in order to determine and/or establish the tax liability of such Israeli Participant.  
		

		
			 
		

		
			Without derogating from the foregoing, it is hereby clarified that the Israeli Participant shall bear and be liable for all tax and other consequences in the event that his/her 102 Trustee Awards and/or the Exercised Stock issued in connection thereof, as applicable, are not held for the entire Restricted Period, all as provided in Section 102.
		

		
			 
		

		
			The Company and/or when applicable the Trustee shall not be required to release any share certificate to an Israeli Participant until all required payments have been fully made. 
		

		
			 
		

		
			8.         Currency Exchange Rates
		

		
			Except as otherwise determined by the Board and/or the Committee, all monetary values with respect to Awards granted pursuant to this Israeli Appendix, including without limitation the Fair Market Value and, if applicable, the Exercise Price of each Award, shall be stated in United States Dollars. In the event that the Exercise Price is in fact to be paid in New Israeli Shekels, at the sole discretion of the Board and/or the Committee, the conversion rate shall be the last known representative rate (published by the Bank of Israel) of the U.S. Dollars to the New Israeli Shekels on the date of payment.
		

		
			 
		

		
			9.         Subordination to the Ordinance
		

		
			9.1       It is clarified that the grant of the 102 Trustee Awards hereunder is subject to the approval by the Tax Authorities of the Plan, this Israeli Appendix and the Trustee, in accordance with Section 102.
		

		
			 
		

		
			9.2         Any provisions of the Section 102 or Section 3(i) of the Ordinance and/or any of the rules or regulations promulgated thereunder, which is not expressly specified in the Plan or in the applicable Award Agreement, including without limitation any such provision which is necessary in order to receive and/or to keep any tax benefit, shall be deemed incorporated into this Israeli Appendix and binding upon the Company, and applicable Affiliated Company and the Israeli Participant.
		

		
			 
		

		
			9.3       With regards to 102 Trustee Awards, the provisions of the Plan and/or this Israeli Appendix and/or the Award Agreement shall be subject to the provisions of Section 102 and the Tax Assessing Officer’s  
		

		

		

		 

		

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			EXHIBIT 10.3

		

		

			 

		

		
		

		
			permit, and the said provisions and permit shall be deemed an integral part of the Plan and of this Israeli Appendix and of the Award Agreement.
		

		
			 
		

		
			9.4       The Awards, the Plan, this Israeli Appendix and any applicable Award Agreements are subject to the applicable provisions of the Ordinance, which shall be deemed an integral part of each, and which shall prevail over any term that is inconsistent therewith.
		

		
			 
		

		
			10.        Governing Law & Jurisdiction
		

		
			10.1        This Israeli Appendix shall be governed by and construed and enforced in accordance with the laws of the State of Israel applicable to contracts made and to be performed therein, without giving effect to the principles of conflict of laws. The competent courts of the city of Tel Aviv, Israel shall have sole jurisdiction in any matters pertaining to this Israeli Appendix, to exclude all other courts.
		

		
			 
		

		
			11.        Other Terms
		

		
			11.1        All other term and conditions not specifically amended or changed by virtue of this Israeli Appendix shall remain valid and enforceable.
		

		
			 
		

		 

		

			8Exhibit 101

		
			Exhibit 10.1
		

		
			FIRST AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT
		

		
			THIS FIRST AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this “First Amendment”) is entered into as of June 24, 2015 among POSTROCK ENERGY SERVICES CORPORATION, a Delaware corporation (“PESC”), POSTROCK MIDCONTINENT PRODUCTION,  LLC, a Delaware limited liability company (“MidContinent” and together with PESC, collectively, the “Borrowers” and individually a “Borrower”), the undersigned Guarantors, CITIBANK, N.A., as Administrative Agent and Collateral Agent for the Lenders parties to the hereinafter defined Credit Agreement (in such capacities, the “Administrative Agent” and “Collateral Agent,” respectively) and the undersigned Lenders comprising Required Lenders.
		

		
			Reference is made to the Third Amended and Restated Credit Agreement dated as of December 20, 2012 among Borrowers, the Administrative Agent, the Collateral Agent and the Lenders parties thereto (the “Credit Agreement”).  Unless otherwise defined in this First Amendment, capitalized terms used herein shall have the meaning set forth in the Credit Agreement; all section, exhibit and schedule references herein are to sections, exhibits and schedules in the Credit Agreement; and all paragraph references herein are to paragraphs in this First Amendment.
		

		
			In connection with the redetermination of the Borrowing Base to be effective as of the First Amendment Effective Date, the Borrowers and Lenders have agreed to amend the Credit Agreement as hereinafter set forth. 
		

		
			Accordingly, for adequate and sufficient consideration, the parties hereto agree, as follows:
		

		
			Paragraph 1. Amendments. Effective as of the First Amendment Effective Date (hereinafter defined), the Credit Agreement is amended as follows:
		

		
			1.1Definitions.  Section 1.01 of the Credit Agreement is amended as follows:
		

		
			(a)The following definition is amended in its entirety to read as follows:
		

		
			“Agreement means this Third Amended and Restated Credit Agreement, which amends and restates in its entirety the Original Credit Agreement, as amended by the First Amendment and as may be further amended, modified, supplemented, or restated from time to time in accordance with the terms hereof.”
		

		
			(b)The following definitions are inserted alphabetically into Section 1.01 of the Credit Agreement:
		

		
			  “First Amendment means that certain First Amendment to 
Third Amended and Restated Credit Agreement dated as of the  First Amendment Effective Date among the Borrowers, the Guarantors, Citibank, N.A., as Administrative Agent, Collateral Agent and the Required Lenders party thereto.”
		

		
			“First Amendment Effective Date means June 24, 2015.”
		

		
			1.2Section 2.02.  Section 2.02 of the Credit Agreement is hereby amended to add the following as Subsection (f) and to delete the word “Reserved”:
		

		

		

		 

 

		 
		

		
			“(f)Notwithstanding anything contained in Section 2.02(c) to the contrary, with respect to the redetermination of the Borrowing Base originally scheduled to become effective on or about May 1, 2015, the provisions of this Section 2.02(f) shall govern and control.  
		

		
			 
		

			
	
			
				 (i)
			The Total Outstandings as of the end of the Business Day immediately preceding the First Amendment Effective Date equal $86,380,000.  The redetermined Borrowing Base in effect as of the First Amendment Effective Date, subject to the provisions of this Section 2.02(f), is $76,000,000, which will result in a $10,380,000 Borrowing Base Deficiency (such Borrowing Base Deficiency, the “First Amendment Deficiency”).  This First Amendment will be deemed a notification by the Administrative Agent to the Borrowers of the Borrowing Base Deficiency.  Borrowers hereby elect to amortize the First Amendment Deficiency over a six-month period commencing on July 22, 2015 so that the Outstanding Amount of Revolving Loans and the Outstanding Amount of L/C Obligations not Cash Collateralized shall in the aggregate be no greater than the amount specified in the table below next to the applicable period:

		
			 
		

			
					
						Period Beginning

					
					
						Outstanding Amount of Revolving Loans and L/C Obligations not Cash Collateralized Not to Exceed

				
	
					
						July 22, 2015

					
					
						$84,650,000.00

				
	
					
						August 22, 2015

					
					
						$82,920,000.00

				
	
					
						September 22, 2015

					
					
						$81,190,000.00

				
	
					
						October 22, 2015

					
					
						$79,460,000.00

				
	
					
						November 22, 2015

					
					
						$77,730,000.00

				

		 

 

			
					
						December 22, 2015

					
					
						$76,000,000.00

				

		
			 
		

			
	
			
				 (ii)
			Until any Borrowing Base Deficiency is repaid in full, including the First Amendment Deficiency, no repayments or prepayments made by Borrower may be reborrowed. Pursuant to Section 8.01(n), any Borrowing Base Deficiency that continues to exist beyond the applicable time periods permissible under this Section 2.02 shall constitute an Event of Default, including if the Outstanding Amount of Revolving Loans and the Outstanding Amount of L/C Obligations not Cash Collateralized exceeds the amount specified above for the relevant period.  For the avoidance of doubt, and notwithstanding anything in Section 2.04(b)(ii) to the contrary, Borrowers are not required to make equal monthly installment payments with respect to the First Amendment Deficiency.

		
			 
		

			
	
			
				 (iii)
			Notwithstanding anything contained herein or in any other Loan Document to the contrary, the Borrowing Base shall be redetermined on or about August 1, 2015, based on the December 31, 2014 Reserve Report relative to the Proved Reserves attributable to the Borrowing Base Oil and Gas Properties set forth in such December 31, 2014 Reserve Report, after taking into account changes in economic parameters and other occurrences for the period from December 31, 2014 through August 1, 2015.  The Administrative Agent shall make a determination of the Borrowing Base which shall become effective on or about August 1, 2015 (the “August 2015 Redetermined Borrowing Base”), and, in the case of an increase in the Borrowing Base, upon approval of all Lenders and the L/C Issuer, and in the case of maintaining or decreasing the Borrowing Base, upon approval of the Administrative Agent and the Required Lenders and in any case with the subsequent written notification from the Administrative Agent to the Borrowers.  

		
			 
		

			
	
			
				 (iv)
			Administrative Agent shall announce the August 2015 Redetermined Borrowing Base on or about August 1, 2015.  Such August 2015 Redetermined Borrowing Base, subject to the other provisions of this Agreement, shall be the Borrowing Base until the effective date of the next redetermination of the Borrowing Base as set out in this Section 2.02 scheduled to occur on or about November 1, 2015.  

		
			 
		

		
			1.3Section 2.04(a).  The proviso in Section 2.04(a) of the Credit Agreement is hereby amended to read in its entirety as follows: 
		

		
			 
		

		
			“provided that (i) such notice must be received by the Administrative Agent not later than noon, Dallas time, (A) three Business Days prior to any date of prepayment of Eurodollar Rate Loans, and (B) the date of prepayment of Base Rate Loans; (ii) any prepayment of Eurodollar Rate Loans shall be in a principal amount of $50,000 or a whole multiple of $50,000 in excess thereof; and (iii) 
		

		 

 

		any prepayment of Base Rate Loans shall be in a principal amount of $50,000 or a whole multiple of $50,000 in excess thereof.”
		

		
			 
		

		
			1.4Section 6.02.  Section 6.02 of the Credit Agreement is hereby amended by deleting the word “and” at the end of Subsection (c), deleting the period at the end of Subsection (d) and substituting therefor a semicolon followed by the word  “and”, and inserting new Sections 6.02(e) and 6.02(f) to read in their entirety as follows:
		

		
			 
		

		
			 “(e)beginning June 30, 2015 and ending at such time no Borrowing Base Deficiency exists, a memorandum describing Borrowers’ strategy for exploring strategic alternatives and a written update thereto every 14 days thereafter describing how the strategic alternative process is progressing; and
		

		
			 
		

		
			(f)beginning June 30, 2015 and ending at such time no Borrowing Base Deficiency exists, a monthly cash and debt repayment forecast for Borrowers, which cash and debt repayment forecast shall be shall be updated every 14 days by Borrowers.”
		

		
			 
		

		
			1.5Schedule 2.01.  Schedule 2.01 annexed to the Credit Agreement is hereby deleted in its entirety and replaced with Schedule 2.01 annexed hereto.
		

		
			 
		

		
			Paragraph 2.Effective Date. This First Amendment shall not become effective until the date (such date, the “First Amendment Effective Date”) the Administrative Agent receives this First Amendment, executed by the Borrowers, the Guarantors, the Administrative and the Required Lenders.
		

		
			Paragraph 3.Acknowledgment and Ratification. The Borrowers and the Guarantors each (i) consent to the agreements in this First Amendment and (ii) agree and acknowledge that the execution, delivery, and performance of this First Amendment shall in no way release, diminish, impair, reduce, or otherwise affect the respective obligations of the Borrowers or any Guarantor under the Loan Documents to which it is a party, which Loan Documents shall remain in full force and effect, as amended and waived hereby, and all rights thereunder are hereby ratified and confirmed.
		

		
			Paragraph 4. Representations.  The Borrowers and the Guarantors each represent and warrant to the Administrative Agent and the Lenders that as of the First Amendment Effective Date and after giving effect to the amendments set forth in this First Amendment (a) all representations and warranties in the Loan Documents are true and correct in all material respects as though made on the date hereof, except to the extent that any of them speak to a different specific date, and (b) no Default or Event of Default exists. 
		

		
			Paragraph 5. Expenses, Funding Losses.  The Borrowers shall pay on demand all reasonable costs, fees, and expenses paid or incurred by the Administrative Agent incident to this First Amendment, including, without limitation, Attorney Costs in connection with the negotiation, preparation, delivery, 
		

		 

 

		and execution of this First Amendment and any related documents, filing and recording costs, and the costs of title insurance endorsements, if any.
		

		
			Paragraph 6.Miscellaneous.  
		

		
			(a)This First Amendment is a “Loan Document” referred to in the Credit Agreement.  The provisions relating to Loan Documents in Article X of the Credit Agreement are incorporated in this First Amendment by reference.  Unless stated otherwise (i) the singular number includes the plural and vice versa and words of any gender include each other gender, in each case, as appropriate, (ii) headings and captions may not be construed in interpreting provisions, (iii) this First Amendment will be construed, and its performance enforced, under New York law and applicable federal law and (iv) if any part of this First Amendment is for any reason found to be unenforceable, all other portions of it nevertheless remain enforceable.
		

		
			Paragraph 7.Counterparts.  This First Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page of this First Amendment by telecopy, facsimile, photocopy or by sending a scanned copy by electronic mail shall be effective as delivery of a manually executed counterpart of this First Amendment. Any signature page of a counterpart may be detached therefrom without impairing the legal effect of the signatures thereon and attached to another counterpart identical in form thereto but having attached to it one or more additional signature pages signed by other parties.
		

		
			Paragraph 8.Entire Agreement. This First Amendment represents the final agreement between the parties about the subject matter of this amendment and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties. There are no unwritten oral agreements between the parties.
		

		
			Paragraph 9.Parties. This First Amendment binds and inures to the benefit of the Borrowers, the Guarantors, the Administrative Agent, the Collateral Agent, the Lenders, and their respective successors and assigns.
		

		
			Paragraph 10. Further Assurances. The parties hereto each agree to execute from time to time such further documents as may be necessary to implement the terms of this First Amendment.
		

		
			Paragraph 11.Release.  As additional consideration for the execution, delivery and performance of this First Amendment by the parties hereto and to induce the Administrative Agent, the Collateral Agent and the Lenders to enter into this First Amendment, the Borrowers warrant and represent to the Administrative Agent, the Collateral Agent and the Lenders that no facts, events, statuses or conditions exist or have existed which, either now or with the passage of time or giving of notice, or both, constitute or will constitute a basis for any claim or cause of action against the Administrative Agent, the Collateral Agent or any Lender or any defense to (i) the payment of Obligations under the Revolving Note and/or the Loan Documents, or (ii) the performance of any of their obligations with respect to the Revolving Note and/or the Loan Documents.  In the event any such facts, events, statuses or conditions exist or have existed, Borrowers unconditionally and irrevocably hereby RELEASE, RELINQUISH and forever DISCHARGE Administrative Agent, the Collateral Agent and the Lenders, as well as their predecessors, successors, assigns, agents, officers, directors, shareholders, employees and representatives, of and from any and all claims, demands, actions and causes of action of any and every kind or character, past or present, which Borrowers may have against any of them or 
		

		 

 

		their predecessors, successors, assigns, agents, officers, directors, shareholders, employees and representatives arising out of or with respect to (a) any right or power to bring any claim for usury or to pursue any cause of action based on any claim of usury, and (b) any and all transactions relating to the Loan Documents occurring prior to the date hereof, including any loss, cost or damage, of any kind or character, arising out of or in any way connected with or in any way resulting from the acts, actions or omissions of any of them, and their predecessors, successors, assigns, agents, officers, directors, shareholders, employees and representatives, including any breach of fiduciary duty, breach of any duty of fair dealing, breach of confidence, breach of funding commitment, undue influence, duress, economic coercion, conflict of interest, negligence, bad faith, malpractice, intentional or negligent infliction of mental distress, tortious interference with contractual relations, tortious interference with corporate governance or prospective business advantage, breach of contract, deceptive trade practices, libel, slander or conspiracy, but in each case only to the extent permitted by applicable Law.
		

		
			 
		

		
			The parties hereto have executed this First Amendment in multiple counterparts to be effective as of the First Amendment Effective Date. 
		

		
			 
		

		
			Remainder of Page Intentionally Blank
		

		
			Signature Pages to Follow.
		

		
			 
		

		

		

		 

 

		IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed as of the First Amendment Effective Date.
		

		
			BORROWERS:
		

		
			 
		

		
			POSTROCK ENERGY SERVICES CORPORATION,
		

		
			as a Borrower
		

		
			 
		

		
			By:   /s/ Terry W.  Carter
		

		
			Name: Terry W. Carter
		

		
			Title: President and Chief Executive Officer
		

		
			 
		

		
			POSTROCK MIDCONTINENT PRODUCTION, LLC,
		

		
			as a Borrower,
		

		
			 
		

		
			By:POSTROCK ENERGY SERVICES
		

		
			CORPORATION,
		

		
			Its sole member
		

		
			 
		

		
			By:   /s/ Terry W.  Carter
		

		
			Name: Terry W. Carter
		

		
			Title: President and Chief Executive Officer
		

		
			 
		

		
			GUARANTORS:
		

		
			 
		

		
			POSTROCK ENERGY CORPORATION,  
		

		
			as Guarantor
		

		
			 
		

		
			By:   /s/ Terry W.  Carter
		

		
			Name: Terry W. Carter
		

		

		

		 

 

		Title: President and Chief Executive Officer
		

		
			 
		

		
			 
		

		
			STP NEWCO, INC.,
		

		
			a Delaware corporation, 
		

		
			as a Guarantor
		

		
			 
		

		
			 
		

		
			By:   /s/ Terry W.  Carter
		

		
			Name: Terry W. Carter
		

		
			Title: President and Chief Executive Officer
		

		
			 
		

		
			 
		

		
			 
		

		
			PostRock Eastern Production, LLC,  
		

		
			a Delaware limited liability company,
		

		
			as Guarantor
		

		
			 
		

		
			By: POSTROCK ENERGY SERVICES CORPORATION,
		

		
			a Delaware corporation,
		

		
			its sole member 
		

		
			 
		

		
			By:   /s/ Terry W.  Carter
		

		
			Name: Terry W. Carter
		

		
			Title: President and Chief Executive Officer
		

		
			 
		

		
			PostRock HOLDCO, LLC,  
		

		
			a Delaware limited liability company,
		

		
			as Guarantor
		

		
			 
		

		
			By: POSTROCK ENERGY SERVICES CORPORATION,
		

		

		

		 

 

		a Delaware corporation,
		

		
			its sole member 
		

		
			 
		

		
			 
		

		
			By:   /s/ Terry W.  Carter
		

		
			Name: Terry W. Carter
		

		
			Title: President and Chief Executive Officer
		

		
			 
		

		

		

		 

 

		ADMINISTRATIVE AGENT:
		

		
			 
		

		
			CITIBANK, N.A.,
		

		
			as Administrative Agent and Collateral Agent
		

		
			By:      /s/ Ryan Watson
		

		
			Ryan Watson
		

		
			Senior Vice President
		

		
			 
		

		
			 
		

		
			AGREED TO AS OF THE FIRST
		

		
			AMENDMENT EFFECTIVE DATE
		

		
			BY THE FOLLOWING REQUIRED
		

		
			LENDERS:
		

		
			L/C ISSUER AND LENDER:  
		

		
			 
		

		
			CITIBANK, N.A., as Lender
		

		
			and L/C Issuer
		

		
			By:      /s/ Ryan Watson
		

		
			Ryan Watson
		

		
			Senior Vice President
		

		

		

		 

 

		LENDERS:
		

		
			 
		

		
			CADENCE BANK, N.A.,  
		

		
			as Lender
		

		
			 
		

		
			By:   /s/ Anthony Blanco
		

		
			Name: Anthony Blanco
		

		
			Title: Vice President
		

		

		

		 

 

		COMPASS BANK,  
		

		
			as Lender
		

		
			 
		

		
			By:   /s/ Kathleen J. Bowen
		

		
			Name: Kathleen J. Bowen
		

		
			Title: Managing Director
		

		

		

		 

 

		ONEWEST BANK, N.A.,  
		

		
			as Lender
		

		
			 
		

		
			 
		

		
			By:   /s/ Sean Murphy
		

		
			Name: Sean Murphy
		

		
			Title: Executive Vice President
		

		

		

		 

 

		TEXAS CAPITAL BANK, N.A.,  
		

		
			as Lender
		

		
			 
		

		
			 
		

		
			By:   /s/ Phillip C. Jones
		

		
			Name: Phillip C. Jones
		

		
			Title: VP – Energy Lending
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		SCHEDULE 2.01
		

		
			 
		

		
			REVOLVING COMMITMENTS
		

		
			 
		

			
					
						Lender

					
					
						Revolving Commitment

					
					
						Pro Rata Share of Redetermined Borrowing Base

					
					
						Pro Rata Share

				
	
					
						Citibank, N.A.

					
					
						$57,777,777.78

					
					
						$21,955,555.56

					
					
						28.8888888889%

				
	
					
						Cadence Bank, N.A.

					
					
						$40,000,000.00

					
					
						$15,200,000.00

					
					
						20.0000000000%

				
	
					
						Compass Bank

					
					
						$40,000,000.00

					
					
						$15,200,000.00

					
					
						20.0000000000%

				
	
					
						OneWest Bank, N.A.

					
					
						$40,000,000.00

					
					
						$15,200,000.00

					
					
						20.0000000000%

				
	
					
						Texas Capital Bank, N.A.

					
					
						$22,222,222.22

					
					
						$8,444,444.44

					
					
						11.1111111111%

				
	
					
						TOTAL:

					
					
						$200,000,000.00

					
					
						$76,000,000.00

					
					
						100.00%

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00248-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00248-of-00352.parquet"}]]