Document:

Exhibit 4.2

 

FIRST SUPPLEMENTAL INDENTURE

FIRST SUPPLEMENTAL
INDENTURE (this “Supplemental Indenture”), dated as of January 14, 2020, among PDC Energy, Inc. (the
 “Successor Company”) and U.S. Bank National Association, as trustee under the Indenture referred to below
(the “Trustee”).

 

W I T N E S S E T H

 

WHEREAS, SRC Energy
Inc. (the “Company”) and the Trustee were parties to that certain Indenture, dated as of November 29,
2017 (the “Indenture”), pursuant to which the Company issued 6.250% Senior Notes due 2025 (the “Notes”);

 

WHEREAS, immediately
prior to delivery of this Supplemental Indenture, the Company merged with and into the Successor Company, with the Successor Company
as the surviving corporation;

 

WHEREAS, pursuant to
Section 5.01 of the Indenture, the Successor Company must assume all obligations of the Company under the Notes and the Indenture;
and

 

WHEREAS, pursuant to
Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture.

 

NOW, THEREFORE, in
consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the
Successor Company and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as
follows:

 

1. CAPITALIZED TERMS.
Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

 

2. ASSUMPTION. The
Successor Company expressly assumes the obligations of the Company under the Indenture, and agrees to be bound by all other applicable
provisions of the Indenture and the Notes and to perform all of the obligations and agreements of the Company under the Notes and
under the Indenture.

 

3. NO RECOURSE AGAINST
OTHERS. No director, officer, employee, incorporator or stockholder or other owner of any Capital Stock of the Company or any Guarantor,
as such, will have any liability for any obligations of the Company or the Guarantors under the Notes, the Indenture or the Note
Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes
by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of
the Notes.

 

4. NEW YORK LAW TO
GOVERN. THE LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE.

 

5. COUNTERPARTS. The
parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together
represent the same agreement.

 

6. EFFECT OF HEADINGS.
The Section headings herein are for convenience only and shall not affect the construction hereof.

 

7. THE TRUSTEE. The
Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental
Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Successor Company.

 

[Remainder of Page Intentionally Left
Blank]

 

     

     

    

 

IN WITNESS WHEREOF, the parties hereto
have caused this Supplemental Indenture to be duly executed and attested, all as of the date first above written. 

 

	 	 	 
	 	 	 
	 	PDC ENERGY, INC.
	 	 
	 	 
	 	By:	 /s/ Nicole Martinet
	 	 	Name:   Nicole Martinet
	 	 	Title:     Senior Vice President, General Counsel and Secretary 
	 	 	 
	 	 
	 	 	 
	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee
	 	 
	 	 
	 	By:	 /s/ Michael McGuire
	 	 	Authorized Signatory

 

[First Supplemental Indenture]Exhibit 10.1

 

SRC ENERGY INC. 2015 EQUITY INCENTIVE
PLAN

 

	1.	PURPOSE OF PLAN

 

The purpose of this
2015 Equity Incentive Plan (this “Plan”) of SRC Energy Inc., a Colorado corporation (the “Corporation”),
is to promote the success of the Corporation and to increase stockholder value by providing an additional means to attract, motivate,
retain and reward selected employees, directors, and other eligible persons through the grant of equity awards and certain cash
compensation.

 

	2.	ELIGIBILITY

 

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

 

	3.	PLAN ADMINISTRATION

 

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

 

With respect to awards
intended to satisfy the requirements for performance-based compensation under Section 162(m) of the Internal Revenue Code
of 1986, as amended (the “Code”), this Plan shall be administered by a committee consisting solely of two or
more outside directors (as this requirement is applied under Section 162(m) of the Code); provided, however, that the
failure to satisfy such requirement shall not affect the validity of the action of any committee otherwise duly authorized and
acting in the matter. Award grants, and transactions in or involving awards, intended to be exempt under Rule 16b-3 under
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), must be duly and timely authorized by
the Board or a committee consisting solely of two or more non-employee directors (as this requirement is applied under Rule 16b-3
promulgated under the Exchange Act). To the extent required by any applicable stock exchange, this Plan shall be administered by
a committee composed entirely of independent directors (as defined by the rules of the applicable stock exchange). Awards granted
to non-employee directors shall not be subject to the discretion of any officer or employee of the Corporation and shall be administered
exclusively by a committee consisting solely of independent directors.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(g)     adjust
the number of shares of Common Stock subject to any award, adjust the price of any or all outstanding awards or otherwise change
previously imposed terms and conditions, in such circumstances as the Administrator may deem appropriate, in each case subject
to compliance with applicable stock exchange requirements, Sections 4 and 8.6 and the applicable requirements of Section 162(m)
of the Code and treasury regulations thereunder with respect to awards that are intended to satisfy the requirements for performance-based
compensation under Section 162(m) of the Code, and provided that in no case (except due to an adjustment contemplated by Section 7)
shall the terms of any outstanding awards be amended (by amendment, cancellation and regrant, or other means) to reduce the per
share exercise or base price of any outstanding stock option or stock appreciation right or other award granted under this Plan,
or be exchanged for cash, other awards or stock option or stock appreciation rights with an exercise price that is less than the
per share exercise price of the original stock option or stock appreciation rights, without stockholder approval, and further provided
that any adjustment or change in terms made pursuant to this Section 3.2(g) shall be made in a manner that, in the good faith determination
of the Administrator will not likely result in the imposition of additional taxes or interest under Section 409A of the Code;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4.1           Shares
Available. Subject to the provisions of Section 7.1, the capital stock available for issuance under this Plan shall
be shares of the Corporation’s authorized but unissued Common Stock. For purposes of this Plan, “Common Stock”
shall mean the common stock of the Corporation, par value $0.001 per share, and such other securities or property as may become
the subject of awards under this Plan pursuant to an adjustment made under Section 7.1.

 

4.2           Share
Limit. The maximum number of shares of Common Stock that may be delivered pursuant to awards granted to Eligible Persons
under this Plan (the “Share Limit”) may not exceed 10,500,000 shares of Common Stock.

 

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

 

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

 

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

 

	5.	AWARDS

 

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

 

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

 

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

 

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

 

5.1.4       Restricted
Stock.

 

(a)    Restrictions.
Restricted stock is Common Stock subject to such restrictions on transferability, risk of forfeiture and other restrictions, if
any, as the Administrator may impose, which restrictions may lapse separately or in combination at such times, under such circumstances
(including based on achievement of performance goals and/or future service requirements), in such installments or otherwise, as
the Administrator may determine at the date of grant or thereafter. Except to the extent restricted under the terms of this Plan
and the applicable award agreement relating to the restricted stock, a participant granted restricted stock shall have all of the
rights of a stockholder of the Corporation, including the right to vote the restricted stock and the right to receive dividends
thereon (subject to the vesting requirements in Section 5.1.4(c), below, as well as any mandatory reinvestment or other requirement
imposed by the Administrator).

 

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

 

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

 

5.1.5       Restricted
Stock Units.

 

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

 

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

 

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

 

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

 

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

 

5.2           Section 162(m)
Performance-Based Awards. Without limiting the generality of the foregoing, prior to the effective date of the changes
to Code Section 162(m) implemented by the bill commonly known as the “Tax Cuts and Jobs Act of 2017,” any of the types
of awards listed in Sections 5.1.4 through 5.1.7 above may be, and options and SARs granted with an exercise or base price
not less than the Fair Market Value of a share of Common Stock at the date of grant (“Qualifying Options” and
 “Qualifying SARs,” respectively) typically will be, granted as awards intended to satisfy the requirements for
 “performance-based compensation” within the meaning of Section 162(m) of the Code (“Performance-Based
Awards”). The grant, vesting, exercisability or payment of Performance-Based Awards may depend (or, in the case of Qualifying
Options or Qualifying SARs, may also depend) on the degree of achievement of one or more performance goals relative to a pre-established
targeted level or levels using the Business Criteria provided for below for the Corporation on a consolidated basis or for one
or more of the Corporation’s Subsidiaries, segments, divisions or business units, or any combination of the foregoing. Such
criteria may be evaluated on an absolute basis or relative to prior periods, industry peers, or stock market indices. Any Qualifying
Option or Qualifying SAR shall be subject to the requirements of Section 5.2.1 and 5.2.3 in order for such award to satisfy
the requirements for “performance-based compensation” under Section 162(m) of the Code. Any other Performance-Based
Award shall be subject to all of the following provisions of this Section 5.2.

 

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

 

5.2.2       Performance
Goals. The specific performance goals for Performance-Based Awards (other than Qualifying Options and Qualifying SARs)
shall be based on such business criteria as selected by the Administrator in its sole discretion (“Business Criteria”)
from the following: (1) total shareholder return; (2) net revenues (3) return on total stockholders’ equity; (4) earnings
per share of Company Stock; (5) net income (before or after taxes); (6) return on assets; (7) return on investment; (8) return
on capital; (9) economic value added; (10) operating budget or margin; (11) contribution margin; (12) earnings (adjusted or non-adjusted)
from continuing operations; levels of expense, cost or liability; (13) earnings (adjusted or non-adjusted) before all or any interest,
taxes, depreciation, amortization and/or exploration expense (“EBIT”, “EBITA”, “EBITDA” or
 “EBITDAX”); (14) debt reduction; (15) market share; (16) reserve growth; (17) reserve replacement; (18) production
growth; (19) finding/development costs; (20) lease operating expense; (21) captured prospects; (22) prospecting licenses signed;
(23) operated prospects matured to drill ready; (24) drilling programs commenced; (25) drillable prospects, capabilities and critical
path items established; (26) third-party capital sourcing; (27) captured net risked resource potential; (28) acquisition cost efficiency;
(29) stock price; (30) acquisitions of oil and gas interests; (31) increases in proved, probable or possible reserves; (32) finding
and development costs; (33) overhead costs; (34) general and administration expense; (35) any combination of, or a specified increase
or decrease of one or more of the foregoing over a specified period; (36) such other criteria as the stockholders of the Corporation
may approve; and (37) any combination of the foregoing. To qualify awards as performance-based under Section 162(m) of the
Code, the applicable Business Criterion (or Business Criteria, as the case may be) and specific performance goal or goals (“targets”)
must be established and approved by the Administrator during the first 90 days of the performance period (and, in the case
of performance periods of less than one year, in no event after 25% or more of the performance period has elapsed) and while performance
relating to such target(s) remains substantially uncertain within the meaning of Section 162(m) of the Code. Performance targets
shall be adjusted to mitigate the unbudgeted impact of material, unusual or nonrecurring gains and losses, accounting changes or
other extraordinary events not foreseen at the time the targets were set unless the Administrator provides otherwise at the time
of establishing the targets; provided that the Administrator shall make all adjustment with the intent that they not adversely
affect the qualification of any compensation payable under such performance targets as “performance-based compensation”
under Section 162(m) of Code. The applicable performance measurement period may not be less than 3 months nor more than
10 years.

 

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

 

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

 

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

 

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

 

    	 	A-8	 

     

    

 

5.2.7       Compensation
Limitations. The maximum aggregate number of shares of Common Stock that may be issued to any Eligible Person during the
term of this Plan pursuant to Qualifying Options and Qualifying SARs may not exceed 4,500,000 shares of Common Stock. The maximum
aggregate number of shares of Common Stock that may be issued to any Eligible Person pursuant to Performance-Based Awards granted
during any single fiscal year during the 162(m) Term (other than cash awards granted pursuant to Section 5.1.6 and Qualifying Options
or Qualifying SARs) may not exceed 750,000 shares of Common Stock. The maximum amount that may be paid to any Eligible Person pursuant
to Performance-Based Awards granted pursuant to Sections 5.1.6 (cash awards) during any single fiscal year during the 162(m) Term
may not exceed $3,000,000.

 

5.3          Award
Agreements. Each award (other than cash awards described in Section 5.1.6) shall be evidenced by a written or electronic
award agreement in the form approved by the Administrator and, if required by the Administrator, executed or accepted by the recipient
of the award. The Administrator may authorize any officer of the Corporation (other than the particular award recipient) to execute
any or all award agreements on behalf of the Corporation (electronically or otherwise). The award agreement shall set forth the
material terms and conditions of the award as established by the Administrator consistent with the express limitations of this
Plan.

 

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

 

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

 

		·	services rendered by the recipient of
such award;

 

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

 

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

 

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

  

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

 

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

 

    	 	A-9	 

     

    

 

 

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

 

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

 

5.7       Transfer
Restrictions.

 

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

 

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

 

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

 

(a)    transfers
to the Corporation,

 

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

 

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

 

    	 	A-10	 

     

    

 

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

 

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

 

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

 

6.            EFFECT
OF TERMINATION OF SERVICE ON AWARDS

 

6.1       Termination
of Employment.

 

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

 

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

 

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

 

    	 	A-11	 

     

    

 

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

 

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

 

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

 

7.             ADJUSTMENTS;
ACCELERATION

 

7.1      Adjustments.
Upon or in contemplation of (a) any reclassification, recapitalization, stock split (including a stock split in the form of a stock
dividend) or reverse stock split (“stock split”), (b) any merger, arrangement, combination, consolidation, or
other reorganization, (c) any spin-off, split-up, or similar extraordinary dividend distribution in respect of the Common Stock
(whether in the form of securities or property), or (d) any exchange of Common Stock or other securities of the Corporation, or
any similar, unusual or extraordinary corporate transaction in respect of the Common Stock, the Administrator shall in such manner,
to such extent and at such time as it deems appropriate and equitable in the circumstances (but subject to compliance with applicable
laws and stock exchange requirements) proportionately adjust any or all of (1) the number and type of shares of Common Stock
(or other securities) that thereafter may be made the subject of awards (including the Share Limit), (2) the number, amount
and type of shares of Common Stock (or other securities or property) subject to any or all outstanding awards, (3) the grant,
purchase, or exercise price (which term includes the base price of any SAR or similar right) of any or all outstanding awards,
(4) the securities, cash or other property deliverable upon exercise or payment of any outstanding awards, (5) the compensation
limitations under Section 162(m) of the Code set forth in Section 5.2.7 and (subject to Section 8.8.3(a)) the performance standards
applicable to any outstanding awards (provided that no adjustment shall be allowed to the extent inconsistent with the requirements
under Section 162(m) of the Code), and (6) the non-employee director compensation limitations set forth in Section 9, below.
Any adjustment made pursuant to this Section 7.1 shall be made in a manner that, in the good faith determination of the Administrator,
will not likely result in the imposition of additional taxes or interest under Section 409A of the Code. With respect to any award
of an ISO, the Administrator may make such an adjustment that causes the option to cease to qualify as an ISO without the consent
of the affected participant.

 

    	 	A-12	 

     

    

 

7.2       Change
in Control. The Administrator, in its sole and absolute discretion, may choose (in an award agreement or otherwise) to
provide for full or partial accelerated vesting of any award upon a Change in Control, or upon any other event or other circumstance
related to the Change in Control, such as an involuntary termination of employment occurring after such Change in Control, as the
Administrator may determine. Notwithstanding the foregoing, in the event the Administrator does not make appropriate provision
for the substitution, assumption, exchange or other continuation of the award pursuant to the Change in Control, then each then-outstanding
option and SAR shall automatically become fully vested, all shares of restricted stock and restricted stock units then outstanding
shall automatically fully vest free of restrictions, and each other award granted under this Plan that is then outstanding shall
automatically become vested in full (assuming all performance targets have been achieved at 100% of target) and payable to the
holder of such award.

 

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

 

(a) The acquisition
by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act (a “Person”))
of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than 50% or more of the combined
voting power of the then-outstanding voting securities of the Corporation entitled to vote generally in the election of directors
(the “Outstanding Company Voting Securities”); provided, however, that, for purposes of this definition, the
following acquisitions shall not constitute a Change in Control; (A) any acquisition directly from the Corporation, (B) any acquisition
by the Corporation, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Corporation
or any affiliate of the Corporation or a successor, or (D) any acquisition by any entity pursuant to a transaction that complies
with Sections (c)(1), (2) and (3) below;

 

(b) Individuals who,
as of the effective date of the Plan, constitute the Board (the “Incumbent Board”) cease for any reason to constitute
at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the effective date of
the Plan whose election, or nomination for election by the Corporation’s stockholders, was approved by a vote of at least
two-thirds of the directors then comprising the Incumbent Board (including for these purposes, the new members whose election or
nomination was so approved, without counting the member and his predecessor twice) shall be considered as though such individual
were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs
as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person other than the Board;

 

    	 	A-13	 

     

    

 

(c) Consummation of
a reorganization, merger, statutory share exchange or consolidation or similar corporate transaction involving the Corporation
or any of its Subsidiaries, a sale or other disposition of all or substantially all of the assets of the Corporation, or the acquisition
of assets or stock of another entity by the Corporation or any of its Subsidiaries (each, a “Business Combination”),
in each case unless, following such Business Combination, (1) all or substantially all of the individuals and entities that were
the beneficial owners of the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially
own, directly or indirectly, more than 50% of the combined voting power of the then-outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the entity resulting from such Business Combination (including,
without limitation, an entity that, as a result of such transaction, owns the Corporation or all or substantially all of the Corporation’s
assets directly or through one or more subsidiaries (a “Parent”)) in substantially the same proportions as their
ownership immediately prior to such Business Combination of the Outstanding Company Voting Securities, as the case may be, (2)
no Person (excluding any entity resulting from such Business Combination or a Parent or any employee benefit plan (or related trust)
of the Corporation or such entity resulting from such Business Combination or Parent) beneficially owns, directly or indirectly,
more than 50% of, respectively, the combined voting power of the then-outstanding voting securities of the entity resulting from
such Business Combination, except to the extent that the ownership in excess of more than 50% existed prior to the Business Combination,
and (3) at least a majority of the members of the board of directors or trustees of the entity resulting from such Business Combination
or a Parent were members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board
providing for such Business Combination; or

 

(d) Approval by the
stockholders of the Corporation of a complete liquidation or dissolution of the Corporation other than in the context of a transaction
that does not constitute a Change in Control Event under clause (c) above.

 

No compensation that
has been deferred for purposes of Section 409A of the Code shall be payable as a result of a Change in Control unless the Change
in Control qualifies as a change in ownership or effective control of the Corporation within the meaning of Section 409A of the
Code.

 

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

 

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

 

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

 

    	 	A-14	 

     

    

 

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

 

8.             OTHER
PROVISIONS

 

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

 

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

 

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

 

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

 

    	 	A-15	 

     

    

 

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

 

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

 

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

 

In any case where
a tax is required to be withheld in connection with the delivery of shares of Common Stock under this Plan, the Administrator may
in its sole discretion (subject to Section 8.1) grant (either at the time of the award or thereafter) to the participant the
right to elect, pursuant to such rules and subject to such conditions as the Administrator may establish, to have the Corporation
reduce the number of shares to be delivered by (or otherwise reacquire) the appropriate number of shares, valued in a consistent
manner at their Fair Market Value or at the sales price in accordance with authorized procedures for cashless exercises, necessary
to satisfy the applicable withholding obligation on exercise, vesting or payment, not in excess of the maximum statutory rates
in the Participant’s applicable jurisdictions.

 

8.6       Effective
Date, Termination and Suspension, Amendments.

 

8.6.1    Effective
Date and Termination. This Plan was originally approved by the Board and became effective upon approval by the stockholders
at the Company’s Annual Meeting on December 15, 2015 (the “Effective Date”). This Plan, as amended
and restated, will become effective upon approval by the stockholders at the Company’s 2018 Annual Meeting. Unless earlier
terminated by the Board, this Plan shall terminate at the close of business ten years after the date on which it was originally
approved by the Board in 2015. After the termination of this Plan either upon such stated expiration date or its earlier termination
by the Board, no additional awards may be granted under this Plan, but previously granted awards (and the authority of the Administrator
with respect thereto, including the authority to amend such awards) shall remain outstanding in accordance with their applicable
terms and conditions and the terms and conditions of this Plan.

 

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

 

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

 

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

 

    	 	A-16	 

     

    

 

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

 

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

 

8.8      Governing
Law; Construction; Severability.

 

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

 

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

 

8.8.3    Plan
Construction.

 

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

 

(b) Section 162(m).
Awards under Sections 5.1.4 through 5.1.7 issued prior to November 2, 2017 to persons described in Section 5.2 that are
either granted or become vested, exercisable or payable based on attainment of one or more performance goals related to the Business
Criteria, as well as Qualifying Options and Qualifying SARs granted to persons described in Section 5.2, that are approved
by a committee composed solely of two or more outside directors (as this requirement is applied under Section 162(m) of the
Code) shall be deemed to be intended as performance-based compensation within the meaning of Section 162(m) of the Code unless
such committee provides otherwise at the time of grant of the award. It is the further intent of the Corporation that (to the extent
the Corporation or one of its Subsidiaries or awards under this Plan may be or become subject to limitations on deductibility under
Section 162(m) of the Code) any such awards and any other Performance-Based Awards under Section 5.2 that are granted
to or held by a person subject to Section 162(m) of the Code will qualify as performance-based compensation or otherwise be
exempt from deductibility limitations under Section 162(m) of the Code, including pursuant to the transition rules set forth
in the bill commonly known as the “Tax Cuts and Jobs Act of 2017.”

 

    	 	A-17	 

     

    

 

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

 

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

 

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

 

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

 

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

 

    	 	A-18	 

     

    

 

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

 

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

 

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

 

9.             DIRECTOR
COMPENSATION PROVISIONS

 

9.1       Plan
Exclusive Vehicle for Non-Employee Director Cash and Equity Compensation. All cash and equity compensation paid or provided
to the Corporation’s non-employee directors shall be awarded under the terms and conditions of this Plan.

 

9.2      Non-Employee
Director Compensation. Non-employee directors may be awarded any of the types of awards described in Section 5 above for
which they are eligible under the terms and conditions of Section 5, above.

 

9.2.1    Cash
Awards. Cash awards (as described in Section 5.1.6) may take any form determined by the Administrator in its sole and absolute
discretion, including, but not limited to, retainers, committee fees, chairperson fees, per meeting fees, and special fees for
committee service. In no event shall Cash awards paid to any non-employee director exceed $400,000 in any fiscal year.

 

9.2.2    Equity
Awards. Equity Awards (described in Sections 5.1.1, 5.1.3, 5.14. 5.1.5, and 5.1.7) may take any form determined by the
Administrator in its sole and absolute discretion, provided, however, that in no event shall awards granted to a non-employee director
in any fiscal year cover more than 50,000 shares of Common Stock (with the number of shares covered by awards determined based
on the maximum number of shares potentially issuable pursuant to such awards).

 

    	 	A-19

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