Document:

Exhibit 10.6

 

CABOT OIL & GAS CORPORATION
 2004 INCENTIVE PLAN

 

NON-EMPLOYEE DIRECTOR RESTRICTED STOCK UNIT AWARD AGREEMENT

 

THIS AGREEMENT (“Agreement”), made as of [ grant date ] (the “Grant Date”), evidences an award by CABOT OIL & GAS CORPORATION, a Delaware corporation (the “Company”), to [ Participant Name ] (the “Grantee”), a non-employee director of the Company, pursuant to the Cabot Oil & Gas Corporation 2004 Incentive Plan (the “Plan”).  Capitalized terms used and not otherwise defined herein shall have the meaning ascribed thereto in the Plan.

 

1.                                      Grant of Restricted Stock Units.  Effective as of the Grant Date, pursuant to Paragraph 8(a)(ii) of the Plan, the Company has awarded to the Grantee Restricted Stock Units representing a total of [ number of shares granted ] shares of Common Stock, subject to the conditions and restrictions set forth below and in the Plan (the “Restricted Stock Units”).

 

2.                                      Restrictions.  The Restricted Stock Units granted hereunder to the Grantee may not be sold, assigned, transferred, pledged or otherwise encumbered unless and until the date that the Grantee obtains the rights of a Stockholder as described in Section 9 of this Agreement.  The Grantee shall have a vested right to all of the Restricted Stock Units as of the Grant Date; provided, however, that Common Stock to which such Restricted Stock Units relate shall not be deliverable to the Grantee until the date that the Grantee ceases to be a director of the Board of Directors of the Company and has a separation from service within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (“Code’) with respect to such Restricted Stock Units (the “Termination Date”).

 

3.                                      Dividend Credits.  During the period of time between the Grant Date and the date on which Grantee receives a distribution of the shares of Common Stock related to the Restricted Stock Units awarded hereunder, the Award of Restricted Stock Units hereunder shall be evidenced by book entry registration.  As of each date that dividends are paid with respect to Common Stock (the “Dividend Payment Date”), the Grantee shall have an amount credited to his account equal to the amount of the dividend paid per share of Common Stock as of such Dividend Payment Date multiplied by the number of Restricted Stock Units credited to the Grantee’s account immediately prior to such Dividend Payment Date.  Such amount shall be paid to the Grantee on the 15th business day following the Dividend Payment Date.

 

4.                                      Beneficiary Designations.  The Grantee shall file with the Secretary of the Company on such form as may be prescribed by the Company, a designation of one or more beneficiaries and, if desired, one or more contingent beneficiaries (each referred to herein as a “Beneficiary”) to whom shares of Common Stock otherwise due the Grantee under the terms of this Agreement shall be distributed in the event of the death of the Grantee.  The Grantee shall have the right to change the Beneficiary or Beneficiaries from time to time; provided, however, that any change shall not become effective until received in writing by the Secretary of the Company.  If any designated Beneficiary survives the Grantee but dies after the Grantee’s death, any remaining benefits due such deceased Beneficiary under this Agreement shall be distributed to the personal representative or executor of the deceased Beneficiary’s estate.  If there is no

 

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effective Beneficiary designation on file at the time of the Grantee’s death, or if the designated Beneficiary or Beneficiaries have all predeceased such Grantee, the payment of any remaining benefits under this Agreement shall be made to the personal representative or executor of the Grantee’s estate.  If one or more but not all the Beneficiaries have predeceased such Grantee, the benefits under this Agreement shall be paid according to the Grantee’s instructions in his designation of Beneficiaries.  If the Grantee has not given instructions, or if the instructions are not clear, the benefits under this Agreement which would have been paid to the deceased Beneficiary or Beneficiaries will be paid to the personal representative or executor of Grantee’s estate.

 

5.                                      Nonalienation of Benefits.  Except as contemplated by Section 4 above, no right or benefit under this Agreement shall be subject to transfer, anticipation, alienation, sale, assignment, pledge, encumbrance or charge, whether voluntary, involuntary or by operation of law, and any attempt to transfer, anticipate, alienate, sell, assign, pledge, encumber or charge the same shall be void.  No right or benefit hereunder shall in any manner be liable for or subject to any debts, contracts, liabilities or torts of the .person entitled to such benefits.  If the Grantee or the Grantee’s Beneficiary hereunder shall become bankrupt or attempt to transfer, anticipate, alienate, assign, sell, pledge, encumber or charge any right or benefit hereunder, other than as contemplated by Section 4 above, or if any creditor shall attempt to subject the same to a writ of garnishment, attachment, execution, sequestration or any other form of process or involuntary lien or seizure, then such right or benefit shall cease and terminate.

 

6.                                      Prerequisites to Benefits.  Neither the Grantee, nor any person claiming through the Grantee, shall have any right or interest in Restricted Stock Units awarded hereunder or the shares of Common Stock related thereto, unless and until all the terms, conditions and provisions of this Agreement and the Plan which affect the Grantee or such other person shall have been complied with as specified herein.

 

7.                                      Payment.  Upon satisfaction of all the terms, conditions and provisions of this Agreement and the Plan, a Restricted Stock Unit credited to the Grantee’s account shall be payable to the Grantee in the form of one share of Common Stock on the 15th business day following the Termination Date;  provided, however, that if, on the Termination Date, Grantee is treated by the Company as a “specified employee” within the meaning of Section 409A of the Code, then any such payment shall be made on the 15th business day following the earlier of (i) the expiration of six months from the Termination Date or (ii) the Grantee’s death (“409A Payment Date”) but, in any event, no later than the last day of the calendar year in which the 409A Payment Date occurs.

 

8.                                      Restrictions on Delivery of Shares.  The Company shall not be obligated to deliver any shares of Common Stock if counsel to the Company determines that such issuance or delivery would violate any applicable law or any rule or regulation of any governmental authority or any rule or regulation of, or agreement of the Company with, any securities exchange or association upon which the Common Stock is listed or quoted.  If necessary to comply with any such law, rule, regulation or agreement, the Company shall in no event be obligated to take any affirmative action in order to cause the delivery of shares of Common Stock.

 

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9.                                      Rights as a Stockholder.  The Grantee (or Beneficiary) shall have no rights as a stockholder with respect to the shares of Common Stock represented by the Restricted Stock Units unless and until all the terms, conditions and provisions of this Agreement and the Plan which affect the Grantee or such other person shall have been complied with as specified herein, and certificates evidencing such shares are delivered to the Grantee pursuant to Section 7 hereof.

 

10.                               Adjustments.  As provided in Paragraph 15 (Adjustments) of the Plan, certain adjustments may be made to the Restricted Stock Units upon the occurrence of events or circumstances described in Paragraph 15 of the Plan.

 

11.                               Notice.  Unless the Company notifies the Grantee in writing of a different procedure, any notice or other communication to the Company with respect to this Agreement shall be in writing and shall be:

 

(a)                                 delivered personally to the following address:

 

Cabot Oil & Gas Corporation

c/o Corporate Secretary

840 Gessner, Suite 1400

Houston, Texas 77024

 

or

 

(b)                                 sent by first class mail, postage prepaid and addressed as follows:

 

Cabot Oil & Gas Corporation

c/o Corporate Secretary
 840 Gessner, Suite 1400
 Houston, Texas 77024

 

Any notice or other communication to the Grantee with respect to this Agreement shall be in writing and shall be delivered personally, or shall be sent by first class mail, postage prepaid, to Grantee’s address as listed in the records of the Company on the Grant Date, unless the Company has received written notification from the Grantee of a change of address.

 

12.                               Amendment.  Without the consent of the Grantee, this Agreement may be amended or supplemented (i) to cure any ambiguity or to correct or supplement any provision herein which may be defective or inconsistent with any other provision herein, or (ii) to add to the covenants and agreements of the Company for the benefit of Grantee or to add to the rights of the Grantee or to surrender any right or power reserved to or conferred upon the Company in this Agreement, subject, however, to any required approval of the Company’s stockholders and, provided, in each case, that such changes or corrections shall not adversely affect the rights of Grantee with respect to the Award evidenced hereby without the Grantee’s consent, or (iii) to make such other changes as the Company, upon advice of counsel, determines are necessary or advisable because of the adoption or promulgation of, or change in or of the interpretation of, any law or governmental rule or regulation, including any applicable federal or state securities laws.

 

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13.                               Grantee Service.  Nothing contained in this Agreement, and no action of the Company or the Committee with respect hereto, shall confer or be construed to confer on the Grantee any right to continue as a director of the Company or any Subsidiary.

 

14.                               Governing Law.  This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of Delaware.

 

15.                               Section 409A Compliance.  The following provisions shall apply to this Agreement, notwithstanding any provision to the contrary:

 

(a)                                 This Agreement is intended to comply with Section 409A of the Code and ambiguous provisions, if any, shall be construed in a manner that is compliant with or exempt from the application of Section 409A.

 

(b)                                 This Agreement shall not be amended or terminated in a manner that would cause the Agreement or any amounts payable under the Agreement to fail to comply with the requirements of Section 409A, to the extent applicable, and, further, the provisions of any purported amendment that may reasonably be expected to result in such non-compliance shall be of no force or effect with respect to the Agreement.

 

(c)                                  The Company shall neither cause nor permit any payment, benefit or consideration to be substituted for a benefit that is payable under this Agreement if such action would result in the failure of any amount that is subject to Section 409A to comply with the applicable requirements of Section 409A.

 

(d)                                 The Company shall neither cause nor permit any adjustments to any equity interest to be made in a manner that would result in the equity interest’s becoming subject to Section 409A unless, after such adjustment, the equity interest is in compliance with the requirements of Section 409A to the extent applicable.

 

(e)                                  For purposes of Section 409A, each payment under this Agreement shall be deemed to be a separate payment.

 

16.                               Construction.  References in this Agreement to “this Agreement” and the words “herein,” “hereof,” “hereunder” and similar terms include all Exhibits and Schedules appended hereto, including the Plan.  This Agreement is entered into, and the Award evidenced hereby is granted, pursuant to the Plan.  The headings of the Sections of this Agreement have been included for convenience of reference only, are not to be considered a part hereof and shall in no way modify or restrict any of the terms or provisions hereof.

 

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17.                               Relationship to the Plan.  In addition to the terms and conditions described in this Agreement, grants of Restricted Stock Units are subject to all other applicable provisions of the Plan.  The decisions of the Committee with respect to questions arising as to the interpretation of the Plan, or this Agreement and as to finding of fact, shall be final, conclusive and binding.

 

	
 
    	
CABOT   OIL & GAS CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Scott C. Schroeder
    
	
 
    	
Name:
    	
Scott   C. Schroeder
    
	
 
    	
Title: 
    	
Vice   President, Chief Financial Officer 
   & Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
[ Participant Name ]
    

 

5Exhibit 10.7(a)

 

RESTRICTED STOCK AWARD AGREEMENT

 

THIS AGREEMENT, effective as of [ grant date ], between Cabot Oil & Gas Corporation, a Delaware corporation (the “Company”) and [ Participant Name ] (the “Participant”), is made pursuant to the provisions of the Company’s 2004 Incentive Plan (the “Plan”).  The capitalized terms appearing in this Agreement shall have the definitions ascribed to them in the Plan.  In the event there is any inconsistency between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall supersede and replace the terms of this Agreement.  The parties agree as follows:

 

1.             Terms of Grant.  Participant is hereby awarded [ number of shares granted ] shares of Cabot Oil & Gas Corporation Common Stock, par value $.10/share, with such restrictions thereon as described below (the “Restricted Stock”).  The date of such grant is [ grant date ] (“Date of Grant”).  Subject to the terms and provisions of this Agreement, such restrictions shall lapse (i) with respect to 1/3 of the shares of Restricted Stock as of the first anniversary of the Date of Grant; (ii) with respect to 1/3 of the shares of Restricted Stock as of the second anniversary of the Date of Grant, and (iii) with respect to the remaining 1/3 of the shares of Restricted Stock as of the third anniversary of the Date of Grant (“Date of Lapse of Restrictions”).  The period from the Date of Grant and until the Date of Lapse of Restrictions shall be referred to herein as the “Period of Restriction”.

 

2.             Employment by the Company.  The shares of Restricted Stock are awarded on the condition that the Participant remain in the employ of the Company from the Date of Grant through and including the Date of Lapse of Restrictions.

 

However, neither such condition nor the award of this Restricted Stock shall impose upon the Company any obligation to retain the Participant in its employ for any given period or upon any specific terms of employment.

 

3.             Stock Certificate.  Once the restrictions have lapsed in accordance with the terms of this Agreement, the Restricted Stock may be deposited into a brokerage account set up in the Participant’s name as may be designated by the Corporate Secretary.  Alternatively, such shares may be delivered to the Participant in certificate or DRS form.  In each instance, the number of shares issued shall be reduced by the Participant’s Federal, State and Local tax obligations (including FICA) required by the law to be withheld, unless other arrangements for tax withholding are made.

 

4.             Removal of Restrictions.  Except as otherwise provided in the Plan, shares of Restricted Stock granted under this Agreement shall become freely transferable by the Participant after the Date of Lapse of Restrictions.

 

5.             Voting Rights and Dividends.  During the Period of Restrictions, the Participant may not exercise voting rights and is not entitled to receive any dividends and other distributions paid with respect to his or her Restricted Stock.

 

 

6.             Termination of Employment.  Except as otherwise provided in this Section 6, in the event the Participant’s employment is terminated prior to a Date of Lapse of Restrictions, all then-unvested shares of Restricted Stock shall immediately be forfeited by the Participant unless otherwise determined by the Committee.  In the case of the termination of employment by reason of death or disability, all shares of Restricted Stock shall, to the extent not previously vested, become fully vested.  In the case of the termination of employment for any other reason, the Compensation Committee may, in its sole discretion, accelerate the vesting of some or all unvested shares of Restricted Stock, upon such terms as the Compensation Committee deems advisable.

 

7.             Change in Control.  In the event of a Change in Control (as herein defined), any restriction periods and restrictions imposed on the shares of Restricted Stock subject to this Agreement shall lapse, and within ten (10) business days after the occurrence of a Change in Control (as herein defined), the stock certificates representing the shares of Restricted Stock, without any restrictions or legend thereon, shall be delivered to the Participant.

 

“Change in Control” shall mean:

 

(I)            The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 35% or more of either (1) the then outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (2) 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 subsection (I), the following acquisitions shall not constitute a Change of Control: (i) any acquisition directly from the Company, (ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company or (iv) any acquisition by any entity pursuant to a transaction which complies with clauses (1), (2) and (3) of subsection (III) of this definition; or

 

(II)          Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or

 

(III)        Consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), in each case, unless, following such Business Combination, (1) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of,

 

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respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity that as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (2) no Person (excluding any entity resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or such entity resulting from such Business Combination) beneficially owns, directly or indirectly, 35% or more of, respectively, the then outstanding shares of common equity of the entity resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such entity except to the extent that such ownership existed prior to the Business Combination and (3) at least a majority of the members of the board of directors of the corporation, or the similar managing body of a non-corporate entity, resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or

 

(IV)         Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company, other than a liquidation or dissolution in connection with a transaction to which subsection (III) applies.

 

8.             Transferability.  This Restricted Stock is not transferable by the Participant, whether voluntarily, involuntarily or by operation of law or otherwise during the Period of Restriction, except as provided in the Plan.  If any assignment, pledge, transfer, or other disposition, voluntary or involuntary, of this Restricted Stock shall be made, or if any attachment, execution, garnishment, or lien shall be issued against or placed upon the Restricted Stock, then the Participant’s right to the Restricted Stock shall immediately cease and terminate.

 

9.             Recapitalization.  In the event of any merger, reorganization, consolidation, recapitalization, separation, liquidation, stock dividend, split-up, share combination, or other change in the corporate structure of the Company affecting the shares of Restricted Stock, the number of shares of Restricted Stock subject to this Agreement shall be equitably adjusted by the Compensation Committee to prevent dilution or enlargement of rights.

 

10.          Administration.  This Agreement and the rights of the Participant hereunder are subject to all of the terms and conditions of the Plan, as the same may be amended from time to time, as well as to such rules and regulations as the Compensation Committee may adopt for administration of the Plan.  It is expressly understood that the Compensation Committee is authorized to administer, construe and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be binding upon the Participant.

 

11.          Miscellaneous.

 

(a)  This Agreement shall not confer upon the Participant any right to continuation of employment by the Company; nor shall this Agreement interfere in any way with the Company’s right to terminate his or her employment at any time.

 

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(b)  With the approval of the Board of Directors, the Compensation Committee may terminate, amend or modify the Plan; provided, however, that no such termination, amendment or modification of the Plan may in any material way adversely affect the Participant’s rights under this Agreement.

 

(c)  This Agreement shall be subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

 

(d)  To the extent not preempted by federal law, this Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware.

 

IN WITNESS WHEREOF, this Restricted Stock Award Agreement has been executed as of the date first written above.

 

	
 
    	
Company:
    
	
 
    	
 
    
	
 
    	
Cabot   Oil & Gas Corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Scott C. Schroeder
    
	
 
    	
 
    	
Scott   C. Schroeder
    
	
 
    	
 
    	
Vice   President, Chief Financial Officer &
    
	
 
    	
 
    	
Treasurer
    
	
 
    	
 
    
	
 
    	
Participant:
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
[   Participant Name ]
    

 

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