oled-ex1038_121.htm



Exhibit 10.38

 

UNIVERSAL DISPLAY CORPORATION

EQUITY COMPENSATION PLAN

 

BRIDGE GRANT AGREEMENT

 

 

This BRIDGE GRANT AGREEMENT (this “Agreement”), effective as of December 12, 2019 (the “Date of Grant”), is delivered by Universal Display Corporation (the “Company”), to Julia J. Brown (the “Grantee”).

RECITALS

The Universal Display Corporation Equity Compensation Plan, amended and restated effective as of June 19, 2014 (the “Plan”), provides for the Company’s ability to grant stock awards in accordance with the terms and conditions of the Plan.

The Compensation Committee of the Board of Directors of the Company, along with the Board of Directors of the Company (collectively, the “Directors”) have approved the issuance of annual long term incentive grants to executives to modify the previous multi-year retention share awards system implemented for executives, and have determined that it is in the best interests of the shareholders to make a one-time Bridge Grant (defined below) stock award to each such executive as part of the implementation of the annual long term incentive program, subject to the restrictions set forth in this Agreement, as an inducement for each such executive to continue to:


	
 
	
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Devote substantial time and attention to promotion and development of the Company at a time that is important for the future success of the Company;





	
 
	
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Maintain a significant long-term ownership interest in the Company;





	
 
	
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Continue in employment in order to ensure continuity of leadership and vision for the Company; and thereby





	
 
	
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Increase shareholder value.




The Directors have determined that the Bridge Grant is reasonable and appropriate compensation for the services to be provided by the Grantee, as an executive, to the Company.  References in this Agreement to capitalized terms not defined herein shall have the meanings given to those terms in the Plan.

NOW, THEREFORE, the parties to this Agreement, intending to be legally bound, hereby agree as follows:

1.Bridge Grant.  As approved by the Directors, the Company hereby grants to the Grantee 10,240 shares of common stock of the Company, subject to the terms, conditions and restrictions set forth below and in the Plan (the “Bridge Grant”).

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2.Vesting and Restriction on Disposition of the Bridge Grant.

(a)The Bridge Grant shall become vested according to the following schedule, if the Grantee continues to be employed by the Company from the Date of Grant until the applicable vesting date.


		
	
Vesting Date

 
	
Vested Shares

	
March 6, 2022
	
5,120

	
March 6, 2023
	
5,120




 

The vesting of the Bridge Grant shall be cumulative, but shall not exceed 100% of the Bridge Grant.

(b)Notwithstanding the foregoing, the Bridge Grant shall vest in accordance with the terms of the Grantee’s Amended and Restated Change in Control Agreement, dated November 4, 2008, between the Company and the Grantee (the “Change in Control Agreement”) in the event of a Change in Control, as defined in the Change in Control Agreement (a “Change in Control”). 

(c)Subject to subsection (b) above and to the Directors’ discretion under Section 8 of the Plan, if the Grantee ceases to be employed by the Company for any reason before the Bridge Grant is fully vested, the shares of the Bridge Grant that are not then vested shall be forfeited and must be immediately returned to the Company.  The Bridge Grant (whether or not vested) may also be forfeited under the circumstances described in Section 4 below.

(d)In no event may any unvested shares of the Bridge Grant be assigned, transferred, pledged or otherwise disposed of or encumbered by the Grantee before the shares vest.  With respect to each share subject to the Bridge Grant, the “Restriction Period” is the period beginning on the Date of Grant and ending on the date of vesting of such share. Any attempt to assign, transfer, pledge or otherwise dispose of or encumber the shares contrary to the provisions hereof, and the levy of any execution, attachment or similar process upon such shares, shall be null, void and without effect. 

3.Issuance of Certificates.

(a)Stock certificates representing the Bridge Grant, with appropriate legends reflecting the restrictions under this Agreement, may be issued by the Company to the Grantee or may be held in escrow by the Company, as determined by the Directors.  When the Grantee obtains a vested right to shares of the Bridge Grant, the Grantee shall have the right to receive a certificate representing the vested shares (net of any applicable tax withholding).  During the Restriction Period, the Grantee shall receive any cash dividends with respect to the shares of the Bridge Grant, may vote the shares of the Bridge Grant and may participate in any distribution pursuant to a plan of dissolution or complete liquidation of the Company.  In the event of a dividend or distribution payable in stock or other property or a reclassification, split up or similar event during the Restriction Period, the shares or other property issued or declared with respect to the Bridge Grant shall be subject to the same terms and conditions relating to vesting and transfer as the shares to which they relate.

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(b)The Company’s obligation to deliver shares pursuant to the Bridge Grant shall be subject to all applicable laws, rules and regulations and also to such approvals by governmental agencies as may be deemed appropriate to comply with relevant securities laws and regulations.

4.Clawback.  Notwithstanding any provisions of this Agreement to the contrary, with respect to each share subject to the Bridge Grant  (whether or not vested), the share shall be forfeited, and must be immediately returned to the Company, upon request by the Directors, in the event that, during the Restriction Period for such share, (i) the Grantee materially breaches a written non-competition, non-solicitation or confidentiality agreement between the Grantee and the Company and the Grantee fails to cure the breach (if such breach is curable) within 30 days after receiving written notice from the Company of the breach; (ii) the Grantee commits an act of dishonesty, fraud, embezzlement or theft in connection with his duties or in the course of the Grantee’s employment with the Company; (iii) the Grantee is convicted of a felony or a crime of moral turpitude; or (iv) the Grantee engages in actions that result in a material restatement of the financial statements of the Company, except that any “restatement” as defined herein shall not include a restatement due to retrospective adoption of new accounting standards or changes or transactions where GAAP requires retrospective adoption.  

5.Grant Subject to Plan Provisions.  The Bridge Grant is made pursuant to the Plan, the terms of which are incorporated herein by reference, and in all respects shall be interpreted in accordance with the Plan.  The Bridge Grant is subject to interpretations, regulations and determinations concerning the Plan established from time to time by the Directors in accordance with the provisions of the Plan, including, but not limited to, provisions pertaining to (i) the registration, qualification or listing of the shares, (ii) changes in capitalization of the Company, and (iii) other requirements of applicable law.  The Directors shall have the authority to interpret and construe the Bridge Grant pursuant to the terms of the Plan, and its decisions shall be conclusive as to any questions arising hereunder.

6.Tax Withholding.  Withholding for any federal, state, local or other taxes required with respect to the vesting of the Bridge Grant shall be governed by the Plan, except that the Grantee may elect to satisfy any tax withholding obligation of the Company with respect to the Bridge Grant by having shares withheld up to an amount that does not exceed the minimum applicable withholding tax rate for federal (including FICA), state, local and other tax liabilities.  The Company shall establish procedures for such an election by the Grantee.

7.No Employment or Other Rights.  The Bridge Grant shall not confer upon the Grantee any right to be retained by or in the employ of the Company and shall not interfere in any way with the right of the Company to terminate the Grantee’s employment at any time. The right of the Company to terminate at will the Grantee’s employment at any time for any reason is specifically reserved.

8.Assignment by Company.  The rights and protections of the Company hereunder shall extend to any successors or assigns of the Company and to the Company’s parents, subsidiaries, and affiliates.  This Agreement may be assigned by the Company without the Grantee’s consent.

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9.Applicable Law.  The validity, construction, interpretation and effect of this instrument shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, without giving effect to the conflicts of laws provisions thereof.

10.Notice.  Any notice to the Company provided for in this instrument shall be addressed to the Company care of the Vice President Legal at 375 Phillips Boulevard, Ewing, New Jersey 08618, and any notice to the Grantee shall be addressed to such Grantee at the current address shown on the payroll of the Company, or to such other address as the Grantee may designate to the Company in writing.  Any notice shall be delivered by hand or by a recognized courier service such as FedEx or UPS, sent by telecopy or enclosed in a properly sealed envelope addressed as stated above, registered and deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service.

IN WITNESS WHEREOF, the Company has caused its duly authorized officer to execute this instrument, and the Grantee has placed his signature hereon.

UNIVERSAL DISPLAY CORPORATION

By: /s/ Steven V. Abramson 

 

Name: Steven V. Abramson

 

Title: President and CEO

 

Date: December 12, 2019

 

 

I, Julia J. Brown, hereby accept the grant of the Bridge Grant described in this Agreement, and I agree to be bound by the terms of the Plan and this Agreement.  I hereby further agree that all of the decisions and determinations of the Directors with respect to the Bridge Grant and this Agreement shall be final and binding.

 

                 /s/ Julia J. Brown 

 

Julia J. Brown, Grantee

 

December 12, 2019

Date

 

 

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