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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of report (Date of earliest event reported):
June 5, 2024
ANTERO RESOURCES CORPORATION
(Exact name of registrant as specified in its charter)
| Delaware |
|
001-36120 |
|
80-0162034 |
(State or Other
Jurisdiction
of Incorporation) |
|
(Commission File Number) |
|
(I.R.S. Employer
Identification Number) |
1615 Wynkoop Street
Denver, Colorado 80202
(Address of Principal Executive Offices) (Zip Code)
Registrant’s
Telephone Number, Including Area Code (303)
357-7310
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to section 12(b) of the Act:
| Title of each
class |
|
Trading
symbol(s) |
|
Name
of each exchange on which registered |
| Common
Stock, par value $0.01 Per Share |
|
AR |
|
New
York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers;
Compensatory Arrangements of Certain Officers. |
On April 17, 2024, the board of directors
(the “Board”) of Antero Resources Corporation (the “Company”) approved, subject to stockholder approval, the Amended
and Restated Antero Resources Corporation 2020 Long Term Incentive Plan (the “Amended AR LTIP”), to increase the number of
shares of the Company’s common stock available for issuance under the Amended AR LTIP by 4,866,100 shares and extend the term of
the Amended AR LTIP until June 5, 2034. The additional shares of the Company’s common stock authorized to be delivered under
the Amended AR LTIP will be registered pursuant to a registration statement on Form S-8.
As further described below under Item 5.07 of
this Current Report on Form 8-K, on June 5, 2024, at the Company’s 2024 annual meeting of stockholders (the “Annual
Meeting”), the stockholders approved the Amended AR LTIP, and it became effective as of June 5, 2024.
The summary of the Amended AR LTIP in this Current
Report on Form 8-K does not purport to be a complete description of all provisions of the Amended AR LTIP and is qualified in its
entirety by reference to the full text of the Amended AR LTIP, which is filed herewith as Exhibit 10.1 and incorporated into this
Item 5.02 by reference.
| Item 5.07 | Submission of Matters to a Vote of Security Holders. |
At the Annual Meeting, the Company’s stockholders
were requested to (i) elect two Class II members of the Board to serve until the Company’s 2027 annual meeting of stockholders;
(ii) ratify the appointment of KPMG LLP as the Company’s independent registered public accounting firm for the year ending
December 31, 2024; (iii) approve, on an advisory basis, the compensation of the Company’s named executive officers; and
(iv) approve the Amended AR LTIP. Each of these items is more fully described in the Company’s definitive proxy statement,
which was filed with the Securities and Exchange Commission on April 25, 2024.
The results of the matters voted upon at the Annual
Meeting are as follows:
Proposal
No. 1 - Election of Class II Directors: Votes regarding the persons elected as Class II directors were as follows:
| Nominee | |
For | | |
Withheld | | |
Broker Non-Votes | |
| W. Howard Keenan, Jr. | |
136,334,980 | | |
116,284,727 | | |
23,384,689 | |
| Jacqueline C. Mutschler | |
170,271,371 | | |
82,348,336 | | |
23,384,689 | |
Proposal
No. 2 — Ratification of the Appointment of KPMG LLP: The voting results were as follows:
| For | | |
Against | | |
Abstain | |
| 273,495,557 | | |
2,404,161 | | |
104,678 | |
Proposal
No. 3 — Approval, on an Advisory Basis, of the Compensation of the Company’s Named Executive Officers: The
voting results were as follows:
| For | | |
Against | | |
Abstain | | |
Broker Non-Votes | |
| 171,284,425 | | |
80,035,913 | | |
1,299,369 | | |
23,384,689 | |
Proposal
No. 4 — Approval of the Amended AR LTIP: The voting results were as follows:
| For | | |
Against | | |
Abstain | | |
Broker Non-Votes | |
| 247,654,669 | | |
4,790,458 | | |
174,580 | | |
23,384,689 | |
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| |
ANTERO
RESOURCES CORPORATION |
| |
|
| |
By: |
/s/ Michael N. Kennedy |
| |
|
Michael N. Kennedy |
| |
|
Chief Financial Officer and Senior Vice President –Finance |
Dated: June 6, 2024
Exhibit 10.1
AMENDED AND RESTATED
ANTERO RESOURCES CORPORATION
2020 LONG TERM INCENTIVE PLAN
1. Purpose.
The purpose of the Amended and Restated Antero Resources Corporation 2020 Long Term Incentive Plan (the “Plan”)
is to provide a means through which (a) Antero Resources Corporation, a Delaware corporation (the “Company”),
and its Affiliates may attract, retain and motivate qualified persons as employees, directors and other service providers, thereby enhancing
the profitable growth of the Company and its Affiliates and (b) persons upon whom the responsibilities of the successful administration
and management of the Company and its Affiliates rest, and whose present and potential contributions to the Company and its Affiliates
are of importance, can acquire and maintain stock ownership or awards the value of which is tied to the performance of the Company, thereby
strengthening their concern for the Company and its Affiliates. Accordingly, the Plan provides for the grant of Options, SARs, Restricted
Stock, Restricted Stock Units, Stock Awards, Dividend Equivalents, Other Stock-Based Awards, Cash Awards, Substitute Awards, or any combination
of the foregoing, as determined by the Committee in its sole discretion.
2. Definitions.
For purposes of the Plan, the following terms shall be defined as set forth below:
(a) “Affiliate”
means any corporation, partnership, limited liability company, limited liability partnership, association, trust or other organization
that, directly or indirectly, controls, is controlled by, or is under common control with, the Company. For purposes of the preceding
sentence, “control” (including, with correlative meanings, the terms “controlled by” and “under common control
with”), as used with respect to any entity or organization, shall mean the possession, directly or indirectly, of the power (i) to
vote more than 50% of the securities having ordinary voting power for the election of directors of the controlled entity or organization
or (ii) to direct or cause the direction of the management and policies of the controlled entity or organization, whether through
the ownership of voting securities, by contract, or otherwise.
(b) “ASC
Topic 718” means the Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation –
Stock Compensation, as amended or any successor accounting standard.
(c) “Award”
means any Option, SAR, Restricted Stock, Restricted Stock Unit, Stock Award, Dividend Equivalent, Other Stock-Based Award, Cash Award,
or Substitute Award, together with any other right or interest, granted under the Plan.
(d) “Award
Agreement” means any written instrument (including any employment, severance or change in control agreement) that sets forth
the terms, conditions, restrictions and/or limitations applicable to an Award, in addition to those set forth under the Plan.
(e) “Board”
means the Board of Directors of the Company.
(f) “Cash
Award” means an Award denominated in cash granted under Section 6(i).
(g) “Change
in Control” means, except as otherwise provided in an Award Agreement, the occurrence of any of the following events after
the Effective Date:
(i) The
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act)
of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of either (x) the
then outstanding shares of Stock (the “Outstanding Stock”) or (y) the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company
Voting Securities”); provided, however, that for purposes of this clause (i), the following acquisitions shall
not constitute a Change in Control: (A) any acquisition directly from the Company, (B) any acquisition by the Company or its
subsidiaries, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity
controlled by the Company or (D) any acquisition by any entity pursuant to a transaction that complies with clauses (A), (B) and
(C) of clause (iii) below;
(ii) The
individuals constituting the Board on the Effective Date (the “Incumbent Directors”) cease for any reason (other
than death or disability) to constitute at least majority of the Board; provided, however, that any individual becoming
a director subsequent to the Effective Date whose election, or nomination for election, by the Company’s stockholders was approved
by a vote of at least two-thirds of the Incumbent Directors (either by a specific vote or by approval of the proxy statement of the Company
in which such person is named as a nominee for director, without objection to such nomination) will be considered as though such individual
were an Incumbent Director, but excluding, for purposes of this proviso, any such individual whose initial assumption of office occurs
as a result of an actual or threatened proxy contest with respect to election or removal of directors or other actual or threatened solicitation
of proxies or consents by or on behalf of a “person” (as used in Section 13(d) of the Exchange Act), in each case,
other than the Board, which individual, for the avoidance of doubt, shall not be deemed to be an Incumbent Director for purposes of this
definition, regardless of whether such individual was approved by a vote of at least two-thirds of the Incumbent Directors;
(iii) Consummation
of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company or
an acquisition of assets of another entity (a “Business Combination”), in each case, unless, following such
Business Combination, (A) the Outstanding Stock and Outstanding Company Voting Securities immediately prior to such Business Combination
represent or are converted into or exchanged for securities which represent or are convertible into more than 50% of, respectively, the
then outstanding shares of common stock or common equity interests and the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors or other governing body, as the case may be, of the entity resulting from such
Business Combination (including, without limitation, an entity which as a result of such transaction owns the Company, or all or substantially
all of the Company’s assets either directly or through one or more subsidiaries), (B) no individual, entity or group (within
the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act), excluding the Company, its subsidiaries and any employee
benefit plan (or related trust) sponsored or maintained by the Company or the entity resulting from such Business Combination (or any
entity controlled by either the Company or the entity resulting from such Business Combination), beneficially owns, directly or indirectly,
50% or more of, respectively, the then outstanding shares of common stock or common equity interests of the entity resulting from such
Business Combination or the combined voting power of the then outstanding voting securities entitled to vote generally in the election
of directors or other governing body of such entity except to the extent that such ownership results solely from direct or indirect ownership
of the Company that existed prior to the Business Combination, and (C) at least a majority of the members of the board of directors
or similar governing body of the entity resulting from such Business Combination were Incumbent Directors at the time of the execution
of the initial agreement, or of the action of the Board, providing for such Business Combination; or
(iv) Approval
by the stockholders of the Company of a complete liquidation or dissolution of the Company.
Notwithstanding any provision of this Section 2(g),
for purposes of an Award that provides for a deferral of compensation under the Nonqualified Deferred Compensation Rules, to the extent
the impact of a Change in Control on such Award would subject a Participant to additional taxes under the Nonqualified Deferred Compensation
Rules, a Change in Control described in subsection (i), (ii), (iii) or (iv) above with respect to such Award will mean both
a Change in Control and a “change in the ownership of a corporation,” “change in the effective control of a corporation,”
or a “change in the ownership of a substantial portion of a corporation’s assets” within the meaning of the Nonqualified
Deferred Compensation Rules as applied to the Company.
(h) “Change
in Control Price” means the amount determined in the following clause (i), (ii), (iii), (iv) or (v), whichever the
Committee determines is applicable, as follows: (i) the price per share offered to holders of Stock in any merger or consolidation
resulting in a Change in Control, (ii) the per share Fair Market Value of the Stock immediately before the Change in Control or other
event without regard to assets sold in the Change in Control or other event and assuming the Company has received the consideration paid
for the assets in the case of a sale of the assets, (iii) the amount distributed per share of Stock in a dissolution transaction,
(iv) the price per share offered to holders of Stock in any tender offer or exchange offer whereby a Change in Control or other event
takes place, or (v) if such Change in Control or other event occurs other than pursuant to a transaction described in clauses (i),
(ii), (iii), or (iv) of this Section 2(h), the value per share of the Stock that may otherwise be obtained with respect
to such Awards or to which such Awards track, as determined by the Committee as of the date determined by the Committee to be the date
of cancellation and surrender of such Awards. In the event that the consideration offered to stockholders of the Company in any transaction
described in this Section 2(h) or in Section 8(e) consists of anything other than cash, the Committee
shall determine the fair cash equivalent of the portion of the consideration offered which is other than cash and such determination shall
be binding on all affected Participants to the extent applicable to Awards held by such Participants.
(i) “Code”
means the Internal Revenue Code of 1986, as amended from time to time, including the guidance and regulations promulgated thereunder and
successor provisions, guidance and regulations thereto.
(j) “Committee”
means a committee of two or more directors designated by the Board to administer the Plan; provided, however, that, unless
otherwise determined by the Board, the Committee shall consist solely of two or more Qualified Members.
(k) “Dividend
Equivalent” means a right, granted to an Eligible Person under Section 6(g), to receive cash, Stock, other Awards
or other property equal in value to dividends paid with respect to a specified number of shares of Stock, or other periodic payments.
(l) “Effective
Date” means June 5, 2024.
(m) “Eligible
Person” means any individual who, as of the date of grant of an Award, is an officer or employee of the Company or of any
of its Affiliates, and any other person who provides services to the Company or any of its Affiliates, including directors of the Company;
provided, however, that, any such individual must be an “employee” of the Company or any of its parents or subsidiaries
within the meaning of General Instruction A.1(a) to Form S-8 if such individual is granted an Award that may be settled in Stock.
An employee on leave of absence may be an Eligible Person.
(n) “Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time, including the guidance, rules and regulations
promulgated thereunder and successor provisions, guidance, rules and regulations thereto.
(o) “Fair
Market Value” of a share of Stock means, as of any specified date, (i) if the Stock is listed on a national securities
exchange, the closing sales price of the Stock, as reported on the stock exchange composite tape on that date (or if no sales occur on
such date, on the last preceding date on which such sales of the Stock are so reported); (ii) if the Stock is not traded on a national
securities exchange but is traded over the counter on such date, the average between the reported high and low bid and asked prices of
Stock on the most recent date on which Stock was publicly traded on or preceding the specified date; or (iii) in the event Stock
is not publicly traded at the time a determination of its value is required to be made under the Plan, the amount determined by the Committee
in its discretion in such manner as it deems appropriate, taking into account all factors the Committee deems appropriate, including the
Nonqualified Deferred Compensation Rules. Notwithstanding this definition of Fair Market Value, with respect to one or more Award types,
or for any other purpose for which the Committee must determine the Fair Market Value under the Plan, the Committee may elect to choose
a different measurement date or methodology for determining Fair Market Value so long as the determination is consistent with the Nonqualified
Deferred Compensation Rules and all other applicable laws and regulations.
(p) “ISO”
means an Option intended to be and designated as an “incentive stock option” within the meaning of Section 422 of the
Code.
(q) “Nonqualified
Deferred Compensation Rules” means the limitations and requirements of Section 409A of the Code, as amended from time
to time, including the guidance and regulations promulgated thereunder and successor provisions, guidance and regulations thereto.
(r) “Nonstatutory
Option” means an Option that is not an ISO.
(s) “Option”
means a right, granted to an Eligible Person under Section 6(b), to purchase Stock at a specified price during specified time
periods, which may either be an ISO or a Nonstatutory Option.
(t) “Original
Effective Date” means June 17, 2020.
(u) “Other
Stock-Based Award” means an Award granted to an Eligible Person under Section 6(h).
(v) “Participant”
means a person who has been granted an Award under the Plan that remains outstanding, including a person who is no longer an Eligible
Person.
(w) “Prior
Plan” means the Antero Resources Corporation Long-Term Incentive Plan, effective October 1, 2013.
(x) “Qualified
Member” means a member of the Board who is (i) a “non-employee director” within the meaning of Rule 16b-3(b)(3),
and (ii) “independent” under the listing standards or rules of the securities exchange upon which the Stock is traded,
but only to the extent such independence is required in order to take the action at issue pursuant to such standards or rules.
(y) “Restricted
Stock” means Stock granted to an Eligible Person under Section 6(d) that is subject to certain restrictions
and to a risk of forfeiture.
(z) “Restricted
Stock Unit” means a right, granted to an Eligible Person under Section 6(e), to receive Stock, cash or a combination
thereof at the end of a specified period (which may or may not be coterminous with the vesting schedule of the Award).
(aa) “Rule 16b-3”
means Rule 16b-3, promulgated by the SEC under Section 16 of the Exchange Act.
(bb) “SAR”
means a stock appreciation right granted to an Eligible Person under Section 6(c).
(cc) “SEC”
means the Securities and Exchange Commission.
(dd) “Securities
Act” means the Securities Act of 1933, as amended from time to time, including the guidance, rules and regulations
promulgated thereunder and successor provisions, guidance, rules and regulations thereto.
(ee) “Stock”
means the Company’s Common Stock, par value $0.01 per share, and such other securities as may be substituted (or re-substituted)
for Stock pursuant to Section 8.
(ff) “Stock
Award” means unrestricted shares of Stock granted to an Eligible Person under Section 6(f).
(gg) “Substitute
Award” means an Award granted under Section 6(j).
3. Administration.
(a) Authority
of the Committee. The Plan shall be administered by the Committee except to the extent the Board elects to administer the Plan, in
which case references herein to the “Committee” shall be deemed to include references to the “Board.” Subject
to the express provisions of the Plan, Rule 16b-3 and other applicable laws, the Committee shall have the authority, in its sole
and absolute discretion, to:
(i) designate
Eligible Persons as Participants;
(ii) determine
the type or types of Awards to be granted to an Eligible Person;
(iii) determine
the number of shares of Stock or amount of cash to be covered by Awards;
(iv) determine
the terms and conditions of any Award, including whether, to what extent and under what circumstances Awards may be vested, settled, exercised,
cancelled or forfeited (including conditions based on continued employment or service requirements or the achievement of one or more performance
goals);
(v) modify,
waive or adjust any term or condition of an Award that has been granted, which may include the acceleration of vesting, waiver of forfeiture
restrictions, modification of the form of settlement of the Award (for example, from cash to Stock or vice versa), early termination of
a performance period, or modification of any other condition or limitation regarding an Award;
(vi) determine
the treatment of an Award upon a termination of employment or other service relationship;
(vii) impose
a holding period with respect to an Award or the shares of Stock received in connection with an Award;
(viii) interpret
and administer the Plan and any Award Agreement;
(ix) correct
any defect, supply any omission or reconcile any inconsistency in the Plan, in any Award, or in any Award Agreement; and
(x) make
any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan.
The express grant of any specific
power to the Committee, and the taking of any action by the Committee, shall not be construed as limiting any power or authority of the
Committee. Any action of the Committee shall be final, conclusive and binding on all persons, including the Company, its Affiliates, stockholders,
Participants, beneficiaries, and permitted transferees under Section 7(a) or other persons claiming rights from or through
a Participant.
(b) Exercise
of Committee Authority. At any time that a member of the Committee is not a Qualified Member, any action of the Committee relating
to an Award granted or to be granted to an Eligible Person who is then subject to Section 16 of the Exchange Act in respect of the
Company where such action is not taken by the full Board may be taken either (i) by a subcommittee, designated by the Committee,
composed solely of two or more Qualified Members, or (ii) by the Committee but with each such member who is not a Qualified Member
abstaining or recusing himself or herself from such action; provided, however, that upon such abstention or recusal, the
Committee remains composed solely of two or more Qualified Members. Such action, authorized by such a subcommittee or by the Committee
upon the abstention or recusal of such non-Qualified Member(s), shall be the action of the Committee for purposes of the Plan. For the
avoidance of doubt, the full Board may take any action relating to an Award granted or to be granted to an Eligible Person who is then
subject to Section 16 of the Exchange Act in respect of the Company.
(c) Delegation
of Authority. The Committee may delegate any or all of its powers and duties under the Plan to a subcommittee of directors or to any
officer of the Company, including the power to perform administrative functions and grant Awards; provided, however, that
such delegation does not (i) violate state or corporate law or (ii) result in the loss of an exemption under Rule 16b-3(d)(1) for
Awards granted to Participants subject to Section 16 of the Exchange Act in respect of the Company. Upon any such delegation, all
references in the Plan to the “Committee,” other than in Section 8, shall be deemed to include any subcommittee
or officer of the Company to whom such powers have been delegated by the Committee. Any such delegation shall not limit the right of such
subcommittee members or such an officer to receive Awards; provided, however, that such subcommittee members and any such
officer may not grant Awards to himself or herself, a member of the Board, or any executive officer of the Company or an Affiliate, or
take any action with respect to any Award previously granted to himself or herself, a member of the Board, or any executive officer of
the Company or an Affiliate. The Committee may also appoint agents who are not executive officers of the Company or members of the Board
to assist in administering the Plan, provided, however, that such individuals may not be delegated the authority to grant
or modify any Awards that will, or may, be settled in Stock.
(d) Limitation
of Liability. The Committee and each member thereof shall be entitled to, in good faith, rely or act upon any report or other information
furnished to him or her by any officer or employee of the Company or any of its Affiliates, the Company’s legal counsel, independent
auditors, consultants or any other agents assisting in the administration of the Plan. Members of the Committee and any officer or employee
of the Company or any of its Affiliates acting at the direction or on behalf of the Committee shall not be personally liable for any action
or determination taken or made in good faith with respect to the Plan, and shall, to the fullest extent permitted by law, be indemnified
and held harmless by the Company with respect to any such action or determination.
(e) Participants
in Non-U.S. Jurisdictions. Notwithstanding any provision of the Plan to the contrary, to comply with applicable laws in countries
other than the United States in which the Company or any of its Affiliates operates or has employees, directors or other service providers
from time to time, or to ensure that the Company complies with any applicable requirements of foreign securities exchanges, the Committee,
in its sole discretion, shall have the power and authority to: (i) determine which of the Company’s Affiliates shall be covered
by the Plan; (ii) determine which Eligible Persons outside the United States are eligible to participate in the Plan; (iii) modify
the terms and conditions of any Award granted to Eligible Persons outside the United States to comply with applicable foreign laws or
listing requirements of any foreign exchange; (iv) establish sub-plans and modify exercise procedures and other terms and procedures,
to the extent such actions may be necessary or advisable (any such sub-plans and/or modifications shall be attached to the Plan as appendices),
provided, however, that no such sub-plans and/or modifications shall increase the share limitations contained in Section 4(a);
and (v) take any action, before or after an Award is granted, that it deems advisable to comply with any applicable governmental
regulatory exemptions or approval or listing requirements of any such foreign securities exchange. For purposes of the Plan, all references
to foreign laws, rules, regulations or taxes shall be references to the laws, rules, regulations and taxes of any applicable jurisdiction
other than the United States or a political subdivision thereof.
4. Stock
Subject to Plan.
(a) Number
of Shares Available for Delivery. Subject to adjustment in a manner consistent with Section 8, (i) 14,916,100 shares
of Stock are reserved and available for delivery with respect to Awards since the Original Effective Date, and such total shall be available
for the issuance of shares upon the exercise of ISOs, plus (ii) the number of shares that will or have become available for
Awards under this Plan pursuant to Section 4(d) below.
(b) Application
of Limitation to Grants of Awards. Subject to Section 4(c), no Award may be granted if the number of shares of Stock that
may be delivered in connection with such Award exceeds the number of shares of Stock remaining available under the Plan minus the number
of shares of Stock issuable in settlement of or relating to then-outstanding Awards. The Committee may adopt reasonable counting procedures
to ensure appropriate counting, avoid double counting (as, for example, in the case of tandem or Substitute Awards) and make adjustments
if the number of shares of Stock actually delivered differs from the number of shares previously counted in connection with an Award.
(c) Availability
of Shares Not Delivered under Awards. If all or any portion of an Award expires or is cancelled, forfeited, exchanged, settled in
cash or otherwise terminated, the shares of Stock subject to such Award (including (i) shares forfeited with respect to Restricted
Stock and (ii) the number of shares withheld or surrendered to the Company in payment of any taxes relating to Awards, other than
Options or Stock Appreciation Rights) shall not be considered “delivered shares” under the Plan, shall be available for delivery
with respect to Awards, and shall no longer be considered issuable or related to outstanding Awards for purposes of Section 4(b).
If an Award may be settled only in cash, such Award need not be counted against any share limit under this Section 4. For
the avoidance of doubt, the following shares shall not be available for delivery with respect to Awards: (A) shares withheld or surrendered
to the Company in payment of any exercise or purchase price of an Option or Stock Appreciation Right, (B) shares withheld or surrendered
to the Company in payment of any taxes relating to an Option or Stock Appreciation Right, and (C) shares repurchased on the open
market with the proceeds from the exercise price of an Option.
(d) Shares
Available Under the Prior Plan. In addition, shares of Stock subject to an award under the Prior Plan that (i) expires or is
canceled, forfeited, settled in cash or otherwise terminated without a delivery of Stock to the participant under the Prior Plan or (ii) shares
of Stock that are tendered or withheld in payment of any taxes related to awards granted pursuant to the Prior Plan other than options
or stock appreciation rights, in either case, on or after the Original Effective Date will be added to the total number of shares available
under the Plan. Notwithstanding the foregoing, the following shares shall not be available for Awards, (A) shares withheld or surrendered
to the Company in payment of any exercise or purchase price of an option or stock appreciation right under the Prior Plan, (B) shares
withheld or surrendered to the Company in payment of any taxes relating to an option or stock appreciation right under the Prior Plan,
and (C) shares repurchased on the open market with the cash proceeds from the exercise price of an option under the Prior Plan.
(e) Shares
Available Following Certain Transactions. Substitute Awards granted in accordance with applicable stock exchange requirements and
in substitution or exchange for awards previously granted by a company acquired by the Company or any subsidiary or with which the Company
or any subsidiary combines shall not reduce the shares authorized for issuance under the Plan or the limitations on grants to non-employee
members of the Board under Section 5(b), nor shall shares subject to such Substitute Awards be added to the shares available
for issuance under the Plan as provided above (whether or not such Substitute Awards are later cancelled, forfeited or otherwise terminated).
Additionally, in the event that a company acquired by the Company or any subsidiary or with which the Company or any subsidiary combines
has shares available under a pre-existing plan approved by stockholders and not adopted in contemplation of such acquisition or combination,
the shares available for grant pursuant to the terms of such pre-existing plan (as adjusted, to the extent appropriate, using the exchange
ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration payable
to the holders of common stock of the entities party to such acquisition or combination) may, if and to the extent determined by the Board
and subject to compliance with applicable stock exchange requirements, be used for Awards under the Plan and shall not reduce the shares
authorized for issuance under the Plan (and shares subject to such Awards shall not be added to the shares available for issuance under
the Plan as provided above); provided, that Awards using such available shares shall not be made after the date awards or grants
could have been made under the terms of the pre-existing plan, absent the acquisition or combination, and shall only be made to individuals
who were not, prior to such acquisition or combination, employed by (and who were not non-employee directors or other service providers
of) the Company or any of its subsidiaries immediately prior to such acquisition or combination.
(f)
Stock Offered. The shares of Stock to
be delivered under the Plan shall be made available from (i) authorized but unissued shares of Stock, (ii) Stock held in
the treasury of the Company, or (iii) previously issued shares of Stock reacquired by the Company, including shares purchased
on the open market.
5. Eligibility;
Compensation Limitations for Non-Employee Members of the Board.
(a) Awards
may be granted under the Plan only to Eligible Persons.
(b) In
each calendar year during any part of which the Plan is in effect, a non-employee member of the Board may not be paid compensation, whether
denominated in cash or Awards, for such individual’s service on the Board in excess of $750,000; provided, however,
that for any calendar year in which a member of the Board (i) serves on a special committee of the Board or (ii) serves as lead
director, additional compensation up to $100,000, whether denominated in cash or Awards, may be paid. For purposes of this Section 5(b),
the value of Awards shall be determined, if applicable, pursuant to ASC Topic 718 on the date of grant and attributed to the compensation
limit for the year in which the Award is granted. For the avoidance of doubt, the limits set forth in this Section 5(b) shall
be without regard to grants of Awards or other payments, if any, made to a non-employee member of the Board during any period in which
such individual was an employee of the Company or of any of its Affiliates or was otherwise providing services to the Company or to any
of its Affiliates other than in the capacity as a director of the Company. For the avoidance of doubt, any cash compensation that is deferred
shall be counted toward this limit for the year in which it was first earned, and not when paid or settled, if later.
6. Specific
Terms of Awards.
(a) General.
Awards may be granted on the terms and conditions set forth in this Section 6. Awards granted under the Plan may, in the discretion
of the Committee, be granted either alone, in addition to, or in tandem with any other Award. In addition, the Committee may impose on
any Award or the exercise thereof, at the date of grant or thereafter (subject to Section 10), such additional terms and conditions,
not inconsistent with the provisions of the Plan, as the Committee shall determine, including subjecting such awards to service- or performance-based
vesting conditions. Without limiting the scope of the preceding sentence, with respect to any performance-based conditions, (i) the
Committee may use one or more business criteria or other measures of performance as it may deem appropriate in establishing any performance
goals applicable to an Award, (ii) any such performance goals may relate to the performance of the Participant, the Company (on a
consolidated basis), or to specified subsidiaries, business or geographical units or operating areas of the Company, (iii) the performance
period or periods over which performance goals will be measured shall be established by the Committee, and (iv) any such performance
goals and performance periods may differ among Awards granted to any one Participant or to different Participants. Except as otherwise
provided in an Award Agreement, the Committee may exercise its discretion to reduce or increase the amounts payable under any Award.
(b) Options.
The Committee is authorized to grant Options, which may be designated as either ISOs or Nonstatutory Options, to Eligible Persons on the
following terms and conditions:
(i) Exercise
Price. Each Award Agreement evidencing an Option shall state the exercise price per share of Stock (the “Exercise Price”)
established by the Committee; provided, however, that except as provided in Section 6(j) or in Section 8,
the Exercise Price of an Option shall not be less than the greater of (A) the par value per share of the Stock or (B) 100% of
the Fair Market Value per share of the Stock as of the date of grant of the Option (or in the case of an ISO granted to an individual
who owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or its parent or any
of its subsidiaries, 110% of the Fair Market Value per share of the Stock on the date of grant).
(ii) Time
and Method of Exercise; Other Terms. The Committee shall determine the methods by which the Exercise Price may be paid or deemed
to be paid, the form of such payment, including cash or cash equivalents, Stock (including previously owned shares or through a cashless
exercise, i.e., “net settlement”, a broker-assisted exercise, or other reduction of the amount of shares otherwise issuable
pursuant to the Option), other Awards or awards granted under other plans of the Company or any Affiliate, other property, or any other
legal consideration the Committee deems appropriate (including notes or other contractual obligations of Participants to make payment
on a deferred basis), the methods by or forms in which Stock will be delivered or deemed to be delivered to Participants, including the
delivery of Restricted Stock subject to Section 6(d), and any other terms and conditions of any Option. In the case of an
exercise whereby the Exercise Price is paid with Stock, such Stock shall be valued based on the Stock’s Fair Market Value as of
the date of exercise. No Option may be exercisable for a period of more than ten years following the date of grant of the Option (or
in the case of an ISO granted to an individual who owns stock possessing more than 10% of the total combined voting power of all classes
of stock of the Company or its parent or any of its subsidiaries, for a period of more than five years following the date of grant of
the ISO).
(iii) ISOs.
The terms of any ISO granted under the Plan shall comply in all respects with the provisions of Section 422 of the Code. ISOs may
only be granted to Eligible Persons who are employees of the Company or employees of a parent or any subsidiary corporation of the Company.
Except as otherwise provided in Section 8, no term of the Plan relating to ISOs (including any SAR in tandem therewith) shall
be interpreted, amended or altered, nor shall any discretion or authority granted under the Plan be exercised, so as to disqualify either
the Plan or any ISO under Section 422 of the Code, unless notice has been provided to the Participant that such change will result
in such disqualification. ISOs shall not be granted more than ten years after the earlier of the adoption of the Plan or the approval
of the Plan by the Company’s stockholders. Notwithstanding the foregoing, to the extent that the aggregate Fair Market Value of
shares of Stock subject to an ISO and the aggregate Fair Market Value of shares of stock of any parent or subsidiary corporation (within
the meaning of Sections 424(e) and (f) of the Code) subject to any other incentive stock options of the Company or a parent
or subsidiary corporation (within the meaning of Sections 424(e) and (f) of the Code) that are exercisable for the first time
by a Participant during any calendar year exceeds $100,000, or such other amount as may be prescribed under Section 422 of the Code,
such excess shall be treated as Nonstatutory Options in accordance with the Code. As used in the previous sentence, Fair Market Value
shall be determined as of the date the ISO is granted. If a Participant shall make any disposition of shares of Stock issued pursuant
to an ISO under the circumstances described in Section 421(b) of the Code (relating to disqualifying dispositions), the Participant
shall notify the Company of such disposition within the time provided to do so in the applicable award agreement.
(c) SARs.
The Committee is authorized to grant SARs to Eligible Persons on the following terms and conditions:
(i) Right
to Payment. An SAR is a right to receive, upon exercise thereof, the excess of (A) the Fair Market Value of one share of Stock
on the date of exercise over (B) the grant price of the SAR as determined by the Committee.
(ii) Grant
Price. Each Award Agreement evidencing an SAR shall state the grant price per share of Stock established by the Committee; provided,
however, that except as provided in Section 6(j) or in Section 8, the grant price per share of Stock
subject to an SAR shall not be less than the greater of (A) the par value per share of the Stock or (B) 100% of the Fair Market
Value per share of the Stock as of the date of grant of the SAR.
(iii) Method
of Exercise and Settlement; Other Terms. The Committee shall determine the form of consideration payable upon settlement, the method
by or forms in which Stock (if any) will be delivered or deemed to be delivered to Participants, and any other terms and conditions of
any SAR. SARs may be either free-standing or granted in tandem with other Awards. No SAR may be exercisable for a period of more than
ten years following the date of grant of the SAR.
(iv) Rights
Related to Options. An SAR granted in connection with an Option shall entitle a Participant, upon exercise, to surrender that Option
or any portion thereof, to the extent unexercised, and to receive payment of an amount determined by multiplying (A) the difference
obtained by subtracting the Exercise Price with respect to a share of Stock specified in the related Option from the Fair Market Value
of a share of Stock on the date of exercise of the SAR, by (B) the number of shares as to which that SAR has been exercised. The
Option shall then cease to be exercisable to the extent surrendered. SARs granted in connection with an Option shall be subject to the
terms and conditions of the Award Agreement governing the Option, which shall provide that the SAR is exercisable only at such time or
times and only to the extent that the related Option is exercisable and shall not be transferable except to the extent that the related
Option is transferrable.
(d) Restricted
Stock. The Committee is authorized to grant Restricted Stock to Eligible Persons on the following terms and conditions:
(i) Restrictions.
Restricted Stock shall be subject to such restrictions on transferability, risk of forfeiture and other restrictions, if any, as the Committee
may impose. Except as provided in Section 7(a)(iii) and Section 7(a)(iv), during the restricted period applicable
to the Restricted Stock, the Restricted Stock may not be sold, transferred, pledged, hedged, hypothecated, margined or otherwise encumbered
by the Participant. Except as otherwise provided in the applicable Award Agreement and this Section 6(d), the holder of a
Restricted Stock Award will generally have the same rights as a stockholder, including the right to vote the Stock subject to the Restricted
Stock Award and to receive dividends on the Stock subject to the Restricted Stock Award during the restriction period (subject, in all
cases, to the limitations on payment of dividends on unvested Awards, as described in Section 6(d)(ii) below).
(ii) Dividends
and Splits. As a condition to the grant of an Award of Restricted Stock, the Committee may allow a Participant to elect, or may require,
that any cash dividends paid on a share of Restricted Stock be automatically reinvested in additional shares of Restricted Stock, applied
to the purchase of additional Awards or deferred without interest to the date of vesting of the associated Award of Restricted Stock,
provided that in all events such cash dividends shall be subject to restrictions and a risk of forfeiture to the same extent as the Restricted
Stock with respect to which such dividends were paid and shall not be paid unless and until such Restricted Stock has vested and been
earned. Stock distributed in connection with a Stock split or Stock dividend, and other property (other than cash) 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 and shall not be delivered unless and until such Restricted Stock has vested and been earned.
(e) Restricted
Stock Units. The Committee is authorized to grant Restricted Stock Units to Eligible Persons on the following terms and conditions:
(i) Award
and Restrictions. Restricted Stock Units shall be subject to such restrictions (which may include a risk of forfeiture) as the Committee
may impose.
(ii) Settlement.
Settlement of vested Restricted Stock Units shall occur upon vesting or upon expiration of the deferral period specified for such Restricted
Stock Units by the Committee (or, if permitted by the Committee, as elected by the Participant). Restricted Stock Units shall be settled
by delivery of (A) a number of shares of Stock equal to the number of Restricted Stock Units for which settlement is due, or (B) cash
in an amount equal to the Fair Market Value of the specified number of shares of Stock equal to the number of Restricted Stock Units for
which settlement is due, or a combination thereof, as determined by the Committee at the date of grant or thereafter.
(f) Stock
Awards. The Committee is authorized to grant Stock Awards to Eligible Persons as a bonus, as additional compensation, or in lieu of
cash compensation any such Eligible Person is otherwise entitled to receive, in such amounts and subject to such other terms as the Committee
in its discretion determines to be appropriate.
(g) Dividend
Equivalents. The Committee is authorized to grant Dividend Equivalents to Eligible Persons, entitling any such Eligible Person to
receive cash, Stock, other Awards, or other property equal in value to dividends or other distributions paid with respect to a specified
number of shares of Stock. Dividend Equivalents may be awarded on a free-standing basis or in connection with another Award (other than
an Award of Restricted Stock, a Stock Award, Options or Stock Appreciation Rights). The Committee may provide that Dividend Equivalents
that are granted as free-standing awards shall be paid or distributed when accrued or at a later specified date and, if distributed at
a later date, may be deemed to have been reinvested in additional Stock, Awards, or other investment vehicles or accrued in a bookkeeping
account without interest, and subject to such restrictions on transferability and risks of forfeiture, as the Committee may specify. With
respect to Dividend Equivalents granted in connection with another Award, such Dividend Equivalents shall be subject to restrictions and
a risk of forfeiture to the same extent as the Award with respect to which such dividends accrue and shall not be paid unless and until
such Award has vested and been earned.
(h) Other
Stock-Based Awards. The Committee is authorized, subject to limitations under applicable law, to grant to Eligible Persons such other
Awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Stock,
as deemed by the Committee to be consistent with the purposes of the Plan, including convertible or exchangeable debt securities, other
rights convertible or exchangeable into Stock, purchase rights for Stock, Awards with value and payment contingent upon performance of
the Company or any other factors designated by the Committee, and Awards valued by reference to the book value of Stock or the value of
securities of, or the performance of, specified Affiliates of the Company. The Committee shall determine the terms and conditions of such
Other Stock-Based Awards. Stock delivered pursuant to an Other-Stock Based Award in the nature of a purchase right granted under this
Section 6(h) shall be purchased for such consideration, paid for at such times, by such methods, and in such forms, including
cash, Stock, other Awards, or other property, as the Committee shall determine.
(i) Cash
Awards. The Committee is authorized to grant Cash Awards, on a free-standing basis or as an element of, a supplement to, or in lieu
of any other Award under the Plan to Eligible Persons in such amounts and subject to such other terms as the Committee in its discretion
determines to be appropriate, including for purposes of any annual or short-term incentive or other bonus program.
(j) Substitute
Awards; No Repricing. Awards may be granted in substitution or exchange for any other Award granted under the Plan or under another
plan of the Company or an Affiliate or any other right of an Eligible Person to receive payment from the Company or an Affiliate. Awards
may also be granted under the Plan in substitution for awards held by individuals who become Eligible Persons as a result of a merger,
consolidation or acquisition of another entity or the assets of another entity by or with the Company or an Affiliate. Such Substitute
Awards referred to in the immediately preceding sentence that are Options or SARs may have an exercise price that is less than the Fair
Market Value of a share of Stock on the date of the substitution if such substitution complies with the Nonqualified Deferred Compensation
Rules and other applicable laws and exchange rules. Except as provided in this Section 6(j) or in Section 8,
without the approval of the stockholders of the Company, the terms of outstanding Awards may not be amended to (i) reduce the Exercise
Price or grant price of an outstanding Option or SAR, (ii) grant a new Option, SAR or other Award in substitution for, or upon the
cancellation of, any previously granted Option or SAR that has the effect of reducing the Exercise Price or grant price thereof, (iii) exchange
any Option or SAR for Stock, cash or other consideration when the Exercise Price or grant price per share of Stock under such Option or
SAR exceeds the Fair Market Value of a share of Stock or (iv) take any other action that would be considered a “repricing”
of an Option or SAR under the applicable listing standards of the national securities exchange on which the Stock is listed (if any).
7. Certain
Provisions Applicable to Awards.
(a) Limit
on Transfer of Awards.
(i) Except
as provided in Sections 7(a)(iii) and (iv), each Option and SAR shall be exercisable only by the Participant during
the Participant’s lifetime, or by the person to whom the Participant’s rights shall pass by will or the laws of descent and
distribution. Notwithstanding anything to the contrary in this Section 7(a), an ISO shall not be transferable other than by
will or the laws of descent and distribution.
(ii) Except
as provided in Sections 7(a)(i), (iii) and (iv), no Award, other than a Stock Award, and no right under any
such Award, may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant and any such purported
assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate.
(iii) To
the extent specifically provided by the Committee and permitted pursuant to Form S-8 and the instructions thereto, an Award may be
transferred by a Participant without consideration to immediate family members or related family trusts, limited partnerships or similar
entities or on such terms and conditions as the Committee may from time to time establish; provided, however, that no Award
(other than a Stock Award) may be transferred to a third-party financial institution for value.
(iv) An
Award may be transferred pursuant to a domestic relations order entered or approved by a court of competent jurisdiction upon delivery
to the Company of a written request for such transfer and a certified copy of such order.
(b) Form and
Timing of Payment under Awards; Deferrals. Subject to the terms of the Plan and any applicable Award Agreement, payments to be made
by the Company or any of its Affiliates upon the exercise or settlement of an Award may be made in such forms as the Committee shall determine
in its discretion, including cash, Stock, other Awards or other property, and may be made in a single payment or transfer, in installments,
or on a deferred basis (which may be required by the Committee or permitted at the election of the Participant on terms and conditions
established by the Committee); provided, however, that any such deferred or installment payments will be set forth in the
Award Agreement. Payments may include, without limitation, provisions for the payment or crediting of reasonable interest on installment
or deferred payments or the grant or crediting of Dividend Equivalents or other amounts in respect of installment or deferred payments
denominated in Stock.
(c) Evidencing
Stock. The Stock or other securities of the Company delivered pursuant to an Award may be evidenced in any manner deemed appropriate
by the Committee in its sole discretion, including in the form of a certificate issued in the name of the Participant or by book entry,
electronic or otherwise, and shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable
under the Plan or the rules, regulations, and other requirements of the SEC, any stock exchange upon which such Stock or other securities
are then listed, and any applicable federal, state or other laws, and the Committee may cause a legend or legends to be inscribed on any
such certificates to make appropriate reference to such restrictions. Further, if certificates representing Restricted Stock are registered
in the name of the Participant, the Company may retain physical possession of the certificates and may require that the Participant deliver
a stock power to the Company, endorsed in blank, related to the Restricted Stock.
(d) Consideration
for Grants. Awards may be granted for such consideration, including services, as the Committee shall determine, but shall not be granted
for less than the minimum lawful consideration.
(e) Additional
Agreements. Each Eligible Person to whom an Award is granted under the Plan may be required to agree in writing, as a condition to
the grant of such Award or otherwise, to subject an Award that is exercised or settled following such Eligible Person’s termination
of employment or service to a general release of claims and/or a noncompetition or other restricted covenant agreement in favor of the
Company and its Affiliates, with the terms and conditions of such agreement(s) to be determined in good faith by the Committee.
8. Subdivision
or Consolidation; Recapitalization; Change in Control; Reorganization.
(a) Existence
of Plans and Awards. The existence of the Plan and the Awards granted hereunder shall not affect in any way the right or power of
the Company, the Board or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other
change in the Company’s capital structure or its business, any merger or consolidation of the Company, any issue of debt or equity
securities ahead of or affecting Stock or the rights thereof, the dissolution or liquidation of the Company or any sale, lease, exchange
or other disposition of all or any part of its assets or business or any other corporate act or proceeding.
(b) Additional
Issuances. Except as expressly provided herein, the issuance by the Company of shares of stock of any class, including upon conversion
of shares or obligations of the Company convertible into such shares or other securities, and in any case whether or not for fair value,
shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Stock subject to Awards theretofore
granted or the purchase price per share of Stock, if applicable.
(c) Subdivision
or Consolidation of Shares. The terms of an Award and the share limitations under the Plan shall be subject to adjustment by the Committee
from time to time, in accordance with the following provisions:
(i) If
at any time, or from time to time, the Company shall subdivide as a whole (by reclassification, by a Stock split, by the issuance of a
distribution on Stock payable in Stock, or otherwise) the number of shares of Stock then outstanding into a greater number of shares of
Stock or in the event the Company distributes an extraordinary cash dividend, then, as appropriate (A) the maximum number of shares
of Stock available for delivery with respect to Awards and applicable limitations with respect to Awards provided in Section 4
and Section 5 (other than cash limits) shall be increased proportionately, and the kind of shares or other securities available
for the Plan shall be appropriately adjusted, (B) the number of shares of Stock (or other kind of shares or securities) that may
be acquired under any then outstanding Award shall be increased proportionately, and (C) the price (including the Exercise Price
or grant price) for each share of Stock (or other kind of shares or securities) subject to then outstanding Awards shall be reduced proportionately,
without changing the aggregate purchase price or value as to which outstanding Awards remain exercisable or subject to restrictions; provided,
however, that in the case of an extraordinary cash dividend that is not an Adjustment Event, the adjustment to the number of shares
of Stock and the Exercise Price or grant price, as applicable, with respect to an outstanding Option or SAR may be made in such other
manner as the Committee may determine that is permitted pursuant to applicable tax and other laws, rules and regulations. Notwithstanding
the foregoing, Awards that already have a right to receive extraordinary cash dividends as a result of DERs or other dividend rights will
not be adjusted as a result of an extraordinary cash dividend.
(ii) If
at any time, or from time to time, the Company shall consolidate as a whole (by reclassification, by reverse Stock split, or otherwise)
the number of shares of Stock then outstanding into a lesser number of shares of Stock, then, as appropriate (A) the maximum number
of shares of Stock available for delivery with respect to Awards and applicable limitations with respect to Awards provided in Section 4
and Section 5 (other than cash limits) shall be decreased proportionately, and the kind of shares or other securities available
for the Plan shall be appropriately adjusted, (B) the number of shares of Stock (or other kind of shares or securities) that may
be acquired under any then outstanding Award shall be decreased proportionately, and (C) the price (including the Exercise Price
or grant price) for each share of Stock (or other kind of shares or securities) subject to then outstanding Awards shall be increased
proportionately, without changing the aggregate purchase price or value as to which outstanding Awards remain exercisable or subject to
restrictions.
(d) Recapitalization.
In the event of any change in the capital structure or business of the Company or other corporate transaction or event that would be considered
an “equity restructuring” within the meaning of ASC Topic 718 and, in each case, that would result in an additional compensation
expense to the Company pursuant to the provisions of ASC Topic 718, if adjustments to Awards with respect to such event were discretionary
or otherwise not required (each such an event, an “Adjustment Event”), then the Committee shall equitably adjust
(i) the aggregate number or kind of shares that thereafter may be delivered under the Plan, (ii) the number or kind of shares
or other property (including cash) subject to an Award, (iii) the terms and conditions of Awards, including the purchase price or
Exercise Price of Awards and performance goals, as applicable, and (iv) the applicable limitations with respect to Awards provided
in Section 4 and Section 5 (other than cash limits) to equitably reflect such Adjustment Event (“Equitable
Adjustments”). In the event of any change in the capital structure or business of the Company or other corporate transaction
or event that would not be considered an Adjustment Event, and is not otherwise addressed in this Section 8, the Committee
shall have complete discretion to make Equitable Adjustments (if any) in such manner as it deems appropriate with respect to such other
event.
(e) Change
in Control and Other Events. Except to the extent otherwise provided in any applicable Award Agreement, vesting of any Award shall
not occur solely upon the occurrence of a Change in Control and, in the event of a Change in Control or other changes in the Company or
the outstanding Stock by reason of a recapitalization, reorganization, merger, consolidation, combination, exchange or other relevant
change occurring after the date of the grant of any Award, the Committee, acting in its sole discretion without the consent or approval
of any holder, may exercise any power enumerated in Section 3 (including the power to accelerate vesting, waive any forfeiture
conditions or otherwise modify or adjust any other condition or limitation regarding an Award) and may also effect one or more of the
following alternatives, which may vary among individual holders and which may vary among Awards held by any individual holder:
(i) accelerate
the time of exercisability of an Award so that such Award may be exercised in full or in part for a limited period of time on or before
a date specified by the Committee, after which specified date all unexercised Awards and all rights of holders thereunder shall terminate;
(ii) redeem
in whole or in part outstanding Awards by requiring the mandatory surrender to the Company by selected holders of some or all of the outstanding
Awards held by such holders (irrespective of whether such Awards are then vested or exercisable) as of a date, specified by the Committee,
in which event the Committee shall thereupon cancel such Awards and cause the Company to pay to each holder an amount of cash or other
consideration per Award (other than a Dividend Equivalent or Cash Award, which the Committee may separately require to be surrendered
in exchange for cash or other consideration determined by the Committee in its discretion) equal to the Change in Control Price, less
the Exercise Price with respect to an Option and less the grant price with respect to a SAR, as applicable to such Awards; provided,
however, that to the extent the Exercise Price of an Option or the grant price of an SAR exceeds the Change in Control Price, such
Award may be cancelled for no consideration;
(iii) cancel
Awards that remain subject to a restricted period as of the date of a Change in Control or other such event without payment of any consideration
to the Participant for such Awards; or
(iv) make
such adjustments to Awards then outstanding as the Committee deems appropriate to reflect such Change in Control or other such event (including
the substitution, assumption, or continuation of Awards by the successor company or a parent or subsidiary thereof);
provided,
however, that so long as the event is not an Adjustment Event, the Committee may determine in its sole discretion that no adjustment
is necessary to Awards then outstanding. If an Adjustment Event occurs, this Section 8(e) shall only apply to the extent
it is not in conflict with Section 8(d).
9. General
Provisions.
(a) Tax
Withholding. The Company and any of its Affiliates are authorized to withhold from any Award granted, or any payment relating to an
Award, including from a distribution of Stock, taxes due or potentially payable in connection with any transaction involving an Award,
and to take such other action as the Committee may deem advisable to enable the Company, its Affiliates and Participants to satisfy the
payment of withholding taxes and other tax obligations relating to any Award in such amounts as may be determined by the Committee. The
Committee shall determine, in its sole discretion, the form of payment acceptable for such tax withholding obligations, including the
delivery of cash or cash equivalents, Stock (including previously owned shares, net settlement, a broker-assisted sale, or other cashless
withholding or reduction of the amount of shares otherwise issuable or delivered pursuant to the Award), other property, or any other
legal consideration the Committee deems appropriate. Any determination made by the Committee to allow a Participant who is subject to
Rule 16b-3 to pay taxes with shares of Stock through net settlement or previously owned shares shall be approved by either a committee
made up of solely two or more Qualified Members or the full Board. If such tax withholding amounts are satisfied through net settlement
or previously owned shares, the maximum number of shares of Stock that may be so withheld or surrendered shall be the number of shares
of Stock that have an aggregate Fair Market Value on the date of withholding or surrender equal to the aggregate amount of such tax liabilities
determined based on the greatest withholding rates for federal, state, foreign and/or local tax purposes, including payroll taxes, that
may be utilized without creating adverse accounting treatment for the Company with respect to such Award, as determined by the Committee.
(b) Limitation
on Rights Conferred under Plan. Neither the Plan nor any action taken hereunder shall be construed as (i) giving any Eligible
Person or Participant the right to continue as an Eligible Person or Participant or in the employ or service of the Company or any of
its Affiliates, (ii) interfering in any way with the right of the Company or any of its Affiliates to terminate any Eligible Person’s
or Participant’s employment or service relationship at any time, (iii) giving an Eligible Person or Participant any claim
to be granted any Award under the Plan or to be treated uniformly with other Participants and/or employees and/or other service providers,
or (iv) conferring on a Participant any of the rights of a stockholder of the Company unless and until the Participant is duly issued
or transferred shares of Stock in accordance with the terms of an Award.
(c) Governing
Law; Submission to Jurisdiction. All questions arising with respect to the provisions of the Plan and Awards shall be determined by
application of the laws of the State of Delaware, without giving effect to any conflict of law provisions thereof, except to the extent
Delaware law is preempted by federal law. The obligation of the Company to sell and deliver Stock hereunder is subject to applicable federal
and state laws and to the approval of any governmental authority required in connection with the authorization, issuance, sale, or delivery
of such Stock. With respect to any claim or dispute related to or arising under the Plan, the Company and each Participant who accepts
an Award hereby consent to the exclusive jurisdiction, forum and venue of the state and federal courts located in Denver, Colorado.
(d) Severability
and Reformation. If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal, or unenforceable in
any jurisdiction or as to any person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee,
such provision shall be construed or deemed amended to conform to the applicable law or, if it cannot be construed or deemed amended without,
in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to
such jurisdiction, person or Award and the remainder of the Plan and any such Award shall remain in full force and effect. If any of the
terms or provisions of the Plan or any Award Agreement conflict with the requirements of Rule 16b-3 (as those terms or provisions
are applied to Eligible Persons who are subject to Section 16 of the Exchange Act) or Section 422 of the Code (with respect
to ISOs), then those conflicting terms or provisions shall be deemed inoperative to the extent they so conflict with the requirements
of Rule 16b-3 (unless the Board or the Committee, as appropriate, has expressly determined that the Plan or such Award should not
comply with Rule 16b-3) or Section 422 of the Code, in each case, only to the extent Rule 16b-3 and such section of the
Code are applicable. With respect to ISOs, if the Plan does not contain any provision required to be included herein under Section 422
of the Code, that provision shall be deemed to be incorporated herein with the same force and effect as if that provision had been set
out at length herein; provided, further, that, to the extent any Option that is intended to qualify as an ISO cannot so qualify,
that Option (to that extent) shall be deemed a Nonstatutory Option for all purposes of the Plan.
(e) Unfunded
Status of Awards; No Trust or Fund Created. The Plan is intended to constitute an “unfunded” plan for certain incentive
awards. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship
between the Company or any Affiliate and a Participant or any other person. To the extent that any person acquires a right to receive
payments from the Company or any Affiliate pursuant to an Award, such right shall be no greater than the right of any general unsecured
creditor of the Company or such Affiliate.
(f) Nonexclusivity
of the Plan. Neither the adoption of the Plan by the Board nor its submission to the stockholders of the Company for approval shall
be construed as creating any limitations on the power of the Board or a committee thereof to adopt such other incentive arrangements as
it may deem desirable. Nothing contained in the Plan shall be construed to prevent the Company or any of its Affiliates from taking any
corporate action which is deemed by the Company or such Affiliate to be appropriate or in its best interest, whether or not such action
would have an adverse effect on the Plan or any Award made under the Plan. No employee, beneficiary or other person shall have any claim
against the Company or any of its Affiliates as a result of any such action.
(g) Fractional
Shares. No fractional shares of Stock shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine
in its sole discretion whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional shares
of Stock or whether such fractional shares of Stock or any rights thereto shall be cancelled, terminated, or otherwise eliminated with
or without consideration.
(h) Interpretation.
Headings are given to the Sections and subsections of the 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 the Plan or any provision thereof. Words in the masculine
gender shall include the feminine gender, and, where appropriate, the plural shall include the singular and the singular shall include
the plural. In the event of any conflict between the terms and conditions of an Award Agreement and the Plan, the provisions of the Plan
shall control. The use herein of the word “including” following any general statement, term or matter shall not be construed
to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items
or matters, whether or not non-limiting language (such as “without limitation”, “but not limited to”, or words
of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that could reasonably
fall within the broadest possible scope of such general statement, term or matter. References herein to any agreement, instrument or other
document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted
by the provisions thereof and not prohibited by the Plan.
(i) Facility
of Payment. Any amounts payable hereunder to any individual under legal disability or who, in the judgment of the Committee, is unable
to manage properly his financial affairs, may be paid to the legal representative of such individual, or may be applied for the benefit
of such individual in any manner that the Committee may select, and the Company shall be relieved of any further liability for payment
of such amounts.
(j) Conditions
to Delivery of Stock. Nothing herein or in any Award Agreement shall require the Company to issue any shares with respect to any Award
if that issuance would, in the opinion of counsel for the Company, constitute a violation of the Securities Act, any other applicable
statute or regulation, or the rules of any applicable securities exchange or securities association, as then in effect. In addition,
each Participant who receives an Award under the Plan shall not sell or otherwise dispose of Stock that is acquired upon grant, exercise
or vesting of an Award in any manner that would constitute a violation of any applicable federal or state securities laws, the Plan or
the rules, regulations or other requirements of the SEC or any stock exchange upon which the Stock is then listed. At the time of any
exercise of an Option or SAR, or at the time of any grant of any other Award, the Company may, as a condition precedent to the exercise
of such Option or SAR or settlement of any other Award, require from the Participant (or in the event of his or her death, his or her
legal representatives, heirs, legatees, or distributees) such written representations, if any, concerning the holder’s intentions
with regard to the retention or disposition of the shares of Stock being acquired pursuant to the Award and such written covenants and
agreements, if any, as to the manner of disposal of such shares as, in the opinion of counsel to the Company, may be necessary to ensure
that any disposition by that holder (or in the event of the holder’s death, his or her legal representatives, heirs, legatees, or
distributees) will not involve a violation of the Securities Act, any other applicable state or federal statute or regulation, or any
rule of any applicable securities exchange or securities association, as then in effect. Stock or other securities shall not be delivered
pursuant to any Award until payment in full of any amount required to be paid pursuant to the Plan or the applicable Award Agreement (including
any Exercise Price, grant price, or tax withholding) is received by the Company.
(k) Section 409A
of the Code. It is the general intention, but not the obligation, of the Committee to design Awards to comply with or to be exempt
from the Nonqualified Deferred Compensation Rules, and Awards will be operated and construed accordingly. Neither this Section 9(k) nor
any other provision of the Plan is or contains a representation to any Participant regarding the tax consequences of the grant, vesting,
exercise, settlement, or sale of any Award (or the Stock underlying such Award) granted hereunder, and should not be interpreted as such.
In no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred
by the Participant on account of non-compliance with the Nonqualified Deferred Compensation Rules. Notwithstanding any provision in the
Plan or an Award Agreement to the contrary, in the event that a “specified employee” (as defined under the Nonqualified Deferred
Compensation Rules) becomes entitled to a payment under an Award that would be subject to additional taxes and interest under the Nonqualified
Deferred Compensation Rules if the Participant’s receipt of such payment or benefits is not delayed until the earlier of (i) the
date of the Participant’s death, or (ii) the date that is six months after the Participant’s “separation from service,”
as defined under the Nonqualified Deferred Compensation Rules (such date, the “Section 409A Payment Date”),
then such payment or benefit shall not be provided to the Participant until the Section 409A Payment Date. Any amounts subject to
the preceding sentence that would otherwise be payable prior to the Section 409A Payment Date will be aggregated and paid in a lump
sum without interest on the Section 409A Payment Date. The applicable provisions of the Nonqualified Deferred Compensation Rules are
hereby incorporated by reference and shall control over any Plan or Award Agreement provision in conflict therewith.
(l) Clawback.
The Plan and all Awards granted hereunder are subject to any written clawback policies that the Company, with the approval of the Board
or an authorized committee thereof, may adopt either prior to or following the Effective Date, including, but not limited to the Antero
Resources Corporation Incentive Compensation Recovery Policy. Any such policy may subject a Participant’s Awards and amounts paid
or realized with respect to Awards to reduction, cancelation, forfeiture or recoupment if certain specified events or wrongful conduct
occur, including an accounting restatement due to the Company’s material noncompliance with financial reporting regulations or other
events or wrongful conduct specified in any such clawback policy.
(m) Status
under ERISA. The Plan shall not constitute an “employee benefit plan” for purposes of Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended.
(n) Plan
Effective Date and Term. The Plan was originally adopted by the Board to be effective on the Original Effective Date and was amended
and restated, effective as of the Effective Date. No Awards may be granted under the Plan on and after the tenth anniversary of the Effective
Date, which is June 5, 2034. However, any Award granted prior to such termination (or any earlier termination pursuant to Section 10),
and the authority of the Board or Committee to amend, alter, adjust, suspend, discontinue, or terminate any such Award or to waive any
conditions or rights under such Award in accordance with the terms of the Plan, shall extend beyond such termination until the final disposition
of such Award.
10. Amendments
to the Plan and Awards. The Committee may amend, alter, suspend, discontinue or terminate any Award or Award Agreement, the Plan or
the Committee’s authority to grant Awards without the consent of stockholders or Participants, except that any amendment or alteration
to the Plan, including any increase in any share limitation, shall be subject to the approval of the Company’s stockholders not
later than the annual meeting next following such Committee action if such stockholder approval is required by any federal or state law
or regulation or the rules of any stock exchange or automated quotation system on which the Stock may then be listed or quoted, and
the Committee may otherwise, in its discretion, determine to submit other changes to the Plan to stockholders for approval; provided,
that, without the consent of an affected Participant, no such Committee action may materially and adversely affect the rights of such
Participant under any previously granted and outstanding Award. For purposes of clarity, any adjustments made to Awards pursuant to Section 8
will be deemed not to materially and adversely affect the rights of any Participant under any previously granted and outstanding Award
and therefore may be made without the consent of affected Participants.
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