Document:

Exhibit

RANGER ENERGY SERVICES, INC.
PERFORMANCE STOCK UNIT AWARD INCENTIVE AGREEMENT
THIS PERFORMANCE STOCK UNIT AWARD INCENTIVE AGREEMENT (this “Agreement”) is made and entered into by and between Ranger Energy Services, Inc., a Delaware corporation (the “Company”), and ____________, an individual and employee of the Company (“Grantee”), as of the 6th day of April, 2018 (the “Grant Date”), subject to the terms and conditions of the Ranger Energy Services, Inc. 2017 Long Term Incentive Plan, as it may be amended from time to time thereafter (the “Plan”).  The Plan is hereby incorporated herein in its entirety by this reference. Capitalized terms not otherwise defined in this Agreement shall have the meaning given to such terms in the Plan.
WHEREAS, Grantee is _______________ of the Company, and in connection therewith, the Company desires to grant a Performance-Based Stock-Based Award to Grantee, subject to the terms and conditions of this Agreement and the Plan, with a view to increasing Grantee’s interest in the Company’s success and growth; and  
WHEREAS, Grantee desires to be the holder of a Performance-Based Stock-Based Award subject to the terms and conditions of this Agreement and the Plan;
NOW, THEREFORE, in consideration of the premises, mutual covenants and agreements contained herein, and such other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:
1.Grant of Performance Stock Units. Subject to the terms and conditions of this Agreement and the Plan, the Company hereby grants to Grantee ________ Performance Stock Units as described herein (the “Performance Stock Units”), which constitute a Performance-Based Stock-Based Award that is referred to as a Performance-Based Award under the Plan. Each Performance Stock Unit shall initially represent the equivalent of one Share as of the Grant Date, with the actual number of Shares to be paid out to be determined under the terms and conditions of this Agreement. With respect to the Performance Stock Units granted under this Agreement, the Committee reserves the right and authority, as exercised in its discretion, to 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, early termination of a performance period, or modification of any other condition or limitation regarding an award, at any time before or after the Incentive Award becomes fully vested but prior to actual payment, but at all times subject to Section 6 for Detrimental Conduct.  As a holder of Performance Stock Units, the Grantee has the rights of a general unsecured creditor of the Company unless and until the Performance Stock Units are converted to Shares upon vesting and transferred to Grantee, as set forth herein. 
2.    Transfer Restrictions. Grantee shall not sell, assign, transfer, exchange, pledge, encumber, gift, devise, hypothecate or otherwise dispose of (collectively, “Transfer”) any Performance Stock Units granted hereunder. Any purported Transfer of Performance Stock Units 

1

in breach of this Agreement shall be void and ineffective, and shall not operate to Transfer any interest or title to the purported transferee.
3.    Vesting of Performance Stock Units.
(a)    Performance Period. For purposes of this Agreement, the performance period is the three-year period that begins on January 1, 2018 and ends on December 31, 2020 (the “Performance Period”). Subject to the terms and conditions of this Agreement, the Performance Stock Units shall vest and become payable to Grantee at the end of the Performance Period, provided that (i) Grantee is still an Employee at that time and has continuously been an Employee since the Grant Date (the “Service Requirement”) and (ii) the Board, or a duly authorized committee thereof, has certified in writing that the performance criterion established for the Performance Period as described below (the “Performance Criterion”) has been achieved. All Performance Stock Units that do not become vested during or at the end of the Performance Period shall be forfeited. The Board, in its discretion, may adjust the Performance Criterion to recognize special or non-recurring situations or circumstances with respect to the Company or any other company in the Peer Group for any year during the Performance Period arising from the acquisition or disposition of assets, costs associated with exit or disposal activities or material impairments.  There are two Performance Criterion that have been established for the Performance Stock Units awarded under this Agreement, as described in subsections (b) and (c) below.
(b)    RTSR. The first Performance Criterion is the Company’s Relative Total Shareholder Return (“RTSR”) as defined in Exhibit A to this Agreement (the “RTSR Criterion”). The Company’s RTSR is compared to the RTSR of each of the peer group companies, as listed on Exhibit A to this Agreement (each a “Peer Company” and as a group, the “Peer Group”), as of the end of each calendar year within the Performance Period to determine where the Company ranks when compared to the Peer Group. The RTSR Criterion is one-hundred percent (100%) of the total weighting for fifty percent (50%) of the Performance Stock Units awarded under this Agreement.
(c)    Absolute RNGR Stock Price.  The second Performance Criterion is the Absolute Total Shareholder Return (the “Absolute TSR”) as defined in Exhibit A to this Agreement (the “Absolute TSR Criterion”).  The Company’s Absolute TSR will be measured from a base stock price of Fourteen Dollars and Fifty Cents per share ($14.50/share, the “Base Price”), and such Base Price will be compared with the price per share on the last day of trading during the Performance Period to determine the payout.  The Absolute TSR Criterion is one-hundred percent (100%) of the total weighting for fifty percent (50%) of the Performance Stock Units awarded under this Agreement. 
(d)    Changes in Peer Group.  When calculating RTSR for the Performance Period for the Company and the Peer Group, (i) the performance of a company in the Peer Group will not be used in calculating the RTSR of that member of the Peer Group if the company is not publicly traded (i.e., has no ticker symbol) at the end of the Performance Period; (ii) the performance of any company in the Peer Group that becomes bankrupt during the Performance Period will be included in the calculation of Peer Group performance even if 

2

it has no ticker symbol at the end of the measurement period; (iii) the performance of the surviving entities will be used in the event there is a combination of any of the Peer Group companies during the measurement period; and (iv) in the event that a company in the Peer Group becomes disqualified as a Peer Company under this subsection (d), then a company from the listing of “Alternate Bench Peer Companies” identified on Exhibit A will be added to the Peer Group during the Performance Period.  Notwithstanding the foregoing provisions of this subsection (d), the Board may disregard any of these guidelines when evaluating changes in the membership of the Peer Group during the Performance Period in any particular situation, as it deems reasonable in the exercise of its discretion.
(e)    Ranking of Company as Compared to the Peer Group for Purposes of the RTSR Criterion.  The Board will rank the Company’s performance against the RTSR Criterion within the Peer Group (set forth on Exhibit A) as of December 31, 2020, and apply the award multiplier from the following table:
	
				
	Relative TSR Performance

	Relative TSR Performance Rank
	Percentile 
Ranking
	Award 
Payout
	Payout vs. 
Target

	1
	100%
	Maximum
	200%

	2
	90%
	 
	180%

	3
	80%
	 
	160%

	4
	70%
	Stretch
	140%

	5
	60%
	 
	120%

	6
	50%
	Target
	100%

	7
	40%
	 
	75%

	8
	30%
	Threshold
	50%

	9
	20%
	 
	0%

	10
	10%
	 
	0%

	11
	0%
	 
	0%

Should the stock price fall to $7.53 per share or less (a price that is 15% below the closing stock price of $8.86 on the day the Grant was authorized by the Board), then the maximum payout available is the Target Level of 100%, regardless of relative rank.
(f)    Determination of Payout for Purposes of the Absolute TSR Criterion.  The Board will rank the Company’s performance against the Absolute TSR Criterion as of December 31, 2020, and apply the award multiplier from the following table:

3

	
			
	Absolute TSR

	Stock Price Growth
	Award Payout
	Payout vs. Target

	75%
	Maximum
	200%

	69%
	 
	175%

	63%
	 
	150%

	56%
	 
	125%

	50%
	Target
	100%

	37%
	 
	75%

	23%
	 
	50%

	10%
	Threshold
	25%

4.    Termination of Employment. If Grantee’s Employment is voluntarily or involuntarily terminated during the Performance Period, then Grantee shall immediately forfeit the outstanding Performance Stock Units, except as provided below in this Section 4. Upon the forfeiture of any Performance Stock Units hereunder, the Grantee shall cease to have any rights in connection with such Performance Stock Units as of the date of forfeiture. 
(a)    Termination of Employment. Except as provided in Section 4(c), if the Grantee’s Employment is terminated for any reason, other than due to death or Disability during the Performance Period, any non-vested Performance Stock Units at the time of such termination shall automatically expire and terminate and no further vesting shall occur after the termination of Employment date. In such event, the Grantee will receive no payment for unvested Performance Stock Units.
(b)    Disability or Death. Upon termination of Grantee’s Employment as the result of Grantee’s Disability (as defined below) or death during the Performance Period, then all of the outstanding Performance Stock Units shall become 100% vested on such date at the 1.0 multiplier award level.  For purposes of this Agreement, “Disability” means (i) a disability that entitles the Grantee to benefits under the Company’s long-term disability plan, as may be in effect from time to time, as determined by the plan administrator of the long-term disability plan or (ii) a disability whereby the Grantee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months.
(c)    Change in Control. If there is a Change in Control of the Company (as defined in the Plan) during the Performance Period, then in the event of the Grantee’s Involuntary Termination Without Cause (as defined below) within two (2) years following the effective date of the Change in Control and during the same Performance Period, all the outstanding Performance Stock Units shall automatically become 100% vested on the Grantee’s termination of Employment date at the 1.0 multiplier award level.  
(d)    For purposes of this Agreement, “Involuntary Termination Without Cause” means the Employment of Grantee is involuntarily terminated by the Company (or by any successor to the Company) for any reason, including, without limitation, as the result of a 

4

Change in Control, except due to death, Disability or Cause; provided, that in the event of a dispute regarding whether Employment was terminated voluntarily or involuntarily, or with or without Cause, such dispute will be resolved by the Board, in good faith, in the exercise of its discretion.
5.    Payment for Performance Stock Units. Payment for the vested Performance Stock Units subject to this Agreement shall be made to the Grantee as soon as practicable following the time such Performance Stock Units become vested in accordance with Section 3 or Section 4 prior to their expiration, but not later than sixty (60) days following the date of such vesting event. The number of Performance Stock Units that vest and are payable hereunder shall be determined by the Board, in its discretion, in accordance with the Payout Schedule in Section 3. 
The number of Shares payable to the Grantee pursuant to this Agreement shall be an amount equal to the number of vested Performance Stock Units multiplied by the award multiplier for the level of achievement of the Performance Criterion determined in Section 3(d).  The maximum payout for each Performance Stock Unit is two and one-half (2.5) Shares because the maximum award multiplier on the Payout Schedule is 2.50.
Any amount paid in respect of the vested Performance Stock Units shall be payable in Shares. Prior to any payments under this Agreement, the Board shall certify in writing, by resolution or otherwise, the amount to be paid in respect of the Performance Stock Units as a result of the achievement of the Performance Criterion.
Any Shares delivered to or on behalf of Grantee in respect of vested Performance Stock Units shall be subject to any further transfer or other restrictions as may be required by securities law or other applicable law, as determined by the Company.
6.    Detrimental Conduct. In the event that the Board should determine, in its sole and absolute discretion, that, during Employment or within two (2) years following Employment termination for any reason, the Grantee engaged in Detrimental Conduct (as defined below), the Board may, in its sole and absolute discretion, if Shares have previously been transferred to the Grantee pursuant to Section 5 upon vesting of his Performance Stock Units, direct the Company to send a notice of recapture (a “Recapture Notice”) to such Grantee.  Within ten (10) days after receiving a Recapture Notice from the Company, the Grantee will deliver to the Company either (i) the actual number of Shares that were transferred to the Grantee upon vesting of Performance Stock Units or (ii) a cash equivalent payment in an amount equal to the Fair Market Value of such Shares at the time when transferred to the Grantee, unless the Recapture Notice demands repayment of a lesser sum.  All repayments hereunder shall be net of the taxes that were withheld by the Company when the Shares were originally transferred to Grantee following vesting of the Performance Stock Units pursuant to Section 5.  For purposes of this Agreement, a Grantee has committed “Detrimental Conduct” if the Grantee (a) violated a confidentiality, non-solicitation, non-competition or similar restrictive covenant between the Company or one of its Affiliates and such Grantee, including violation of a Company policy relating to such matters, or (b) engaged in willful fraud that causes harm to the Company or one of its Affiliates or that is intended to manipulate the performance results of any Incentive Award, including, without limitation, any material breach 

5

of fiduciary duty, embezzlement or similar conduct that results in a restatement of the Company’s financial statements.
7.    Grantee’s Representations. Notwithstanding any provision hereof to the contrary, the Grantee hereby agrees and represents that Grantee will not acquire any Shares, and that the Company will not be obligated to issue any Shares to the Grantee hereunder, if the issuance of such Shares constitutes a violation by the Grantee or the Company of any law or regulation of any governmental authority. Any determination in this regard that is made by the Board, in good faith, shall be final and binding. The rights and obligations of the Company and the Grantee are subject to all applicable laws and regulations.
8.    Tax Withholding. To the extent that the receipt of the payment of Shares hereunder results in compensation income to Grantee for federal, state or local income tax purposes, Grantee shall deliver to Company at such time the sum that the Company requires to meet its tax withholding obligations under applicable law or regulation, and, if Grantee fails to do so, Company is authorized to (a) withhold from any cash or other remuneration (including any Shares), then or thereafter payable to Grantee, any tax required to be withheld; or (b) sell such number of Shares as is appropriate to satisfy such tax withholding requirements before transferring the resulting net number of Shares to Grantee in satisfaction of its obligations under this Agreement.
9.    Independent Legal and Tax Advice. The Grantee acknowledges that (a) the Company is not providing any legal or tax advice to Grantee and (b) the Company has advised the Grantee to obtain independent legal and tax advice regarding this Agreement and any payment hereunder.
10.    No Rights in Shares. The Grantee shall have no rights as a stockholder in respect of any Shares, unless and until the Grantee becomes the record holder of such Shares on the Company’s records.
11.    Conflicts with Plan, Correction of Errors, and Grantee’s Consent. In the event that any provision of this Agreement conflicts in any way with a provision of the Plan, such provisions shall be reconciled, or such discrepancy shall be resolved, by the Board in the exercise of its discretion. In the event that, due to administrative error, this Agreement does not accurately reflect the Performance Stock Units properly granted to the Grantee, the Board reserves the right to cancel any erroneous document and, if appropriate, to replace the cancelled document with a corrected document. All determinations and computations under this Agreement shall be made by the Board (or its authorized delegate or a duly authorize committee of the Board) in its discretion as exercised in good faith.
This Agreement and any award of Performance Stock Units or payment hereunder are intended to comply with or be exempt from Section 409A of the Internal Revenue Code and shall be interpreted accordingly. Accordingly, Grantee consents to such amendment of this Agreement as the Board may reasonably make in furtherance of such intention, and the Company shall promptly provide, or make available, to Grantee a copy of any such amendment.

6

12.    Miscellaneous.
(a)    No Fractional Shares. All provisions of this Agreement concern whole Shares. If the application of any provision hereunder would yield a fractional Share, such fractional Share shall be rounded down to the next whole Share if it is less than 0.5 and rounded up to the next whole Share if it is 0.5 or more.
(b)    Transferability of Performance Stock Units. The Performance Stock Units are transferable only to the extent permitted under the Plan at the time of transfer (i) by will or by the laws of descent and distribution, or (ii) by a domestic relations order in such form as is acceptable to the Company. No right or benefit hereunder shall in any manner be liable for or subject to any debts, contracts, liabilities, obligations or torts of the Grantee or any permitted transferee thereof.
(c)    Not an Employment Agreement. This Agreement is not an employment agreement, and no provision of this Agreement shall be construed or interpreted to create any Employment relationship between Grantee and the Company for any time period. The Employment of Grantee with the Company shall be subject to termination to the same extent as if this Agreement did not exist.
(d)    Notices. Any notice, instruction, authorization, request or demand required hereunder shall be in writing, and shall be delivered either by personal in-hand delivery, by telecopy or similar facsimile means, by certified or registered mail, return receipt requested, or by courier or delivery service, addressed to the Company at its then current main corporate address, and to Grantee at the address indicated on the Company’s records, or at such other address and number as a party has last previously designated by written notice given to the other party in the manner hereinabove set forth. Notices shall be deemed given when received, if sent by facsimile means (confirmation of such receipt by confirmed facsimile transmission being deemed receipt of communications sent by facsimile means); and when delivered and receipted for (or upon the date of attempted delivery where delivery is refused), if hand-delivered, sent by courier or delivery service, or sent by certified or registered mail, return receipt requested. 
(e)    Amendment, Termination and Waiver. This Agreement may be amended, modified, terminated or superseded only by written instrument executed by or on behalf of the Grantee and the Company (by action of the Board, its delegate or a duly authorized committee of the Board). Any waiver of the terms or conditions hereof shall be made only by a written instrument executed and delivered by the party waiving compliance. Any waiver granted by the Company shall be effective only if executed and delivered by a duly authorized executive officer of the Company other than Grantee. The failure of any party at any time or times to require performance of any provisions hereof shall in no manner affect the right to enforce the same. No waiver by any party of any term or condition herein, or the breach thereof, in one or more instances shall be deemed to be, or construed as, a further or continuing waiver of any such condition or breach or a waiver of any other condition or the breach of any other term or condition.

7

(f)    No Guarantee of Tax or Other Consequences. The Company makes no commitment or guarantee that any tax treatment will apply or be available to the Grantee or any other person. The Grantee has been advised, and provided with ample opportunity, to obtain independent legal and tax advice regarding this Agreement.
(g)    Governing Law and Severability. This Agreement shall be governed by the laws of the State of Texas without regard to its conflicts of law provisions, except as preempted by controlling federal law. The invalidity of any provision of this Agreement shall not affect any other provision hereof or of the Plan, which shall remain in full force and effect.
(h)    Successors and Assigns. This Agreement shall bind, be enforceable by, and inure to the benefit of, the Company and Grantee and any permitted successors and assigns under the Plan.
[Signature page follows.]

8

IN WITNESS WHEREOF, this Agreement is hereby approved and executed as of the date first written above.
Ranger Energy Services, Inc.
By:                            
Name:                             
Title:                             

Grantee

Signature

                            

Print Name

                            

Grantee’s Address for Notices:

                            

                            

9

AMENDMENT ONE TO EXHIBIT A
Performance Criterion and Peer Companies 
1.     RTSR.  RTSR is the Performance Criterion applicable to 50% of the Performance Stock Units and is determined by dividing (1) the sum of (a) the cumulative amount of the dividends of the Company or the Peer Company, as applicable, for the applicable period assuming same-day reinvestment into the corporation’s common stock on the ex-dividend date and (b) the share price of such corporation at the end of the applicable period minus the share price at the beginning of the applicable period, by (2) the share price at the beginning of the applicable period. The RTSR for each Peer Company in the Peer Group will be calculated over the applicable period, and then compared with the identical calculation for the Company. The Company’s RTSR is a Performance Criterion that is compared to each Peer Company’s RTSR for the applicable period.
2.    Absolute TSR. Absolute TSR is the Performance Criterion applicable to the balance of the Performance Stock Units, and is determined by subtracting the Base Price of $14.50 per share from the closing price on the last day of trading during the applicable period.  This difference will then be divided by the Base Price of $14.50 per share and multiplied by 100 to determine the Absolute TSR as a percent of growth in the stock price over the applicable period.  The Company’s Absolute TSR is a Performance Criterion that will not be compared to similar Peer Company performance over the applicable period.  
3.     Peer Companies and Peer Group.  The following Peer Companies comprise the Peer Group to which the Company’s RTSR performance will be compared for the Performance Period:
1.    DRQ        Dril-Quip, Inc.
2.    KEG        Key Energy Services, Inc.
3.    PKD        Parker Drilling Company
4.    WTTR        Select Energy Services, Inc.
5.    PES        Pioneer Energy Services Corp.
6.    TUSK        Mammoth Energy Services, Inc.
7.    FTK        Flotek Industries, Inc.
8.    NBR        Nabors Industries Ltd.    
9.    BAS        Basic Energy Services, Inc.                 
10.    CJ        C&J Energy Services, Inc.
11.    ICD        Independence Contract Drilling, Inc.

Should any Peer Company listed above become disqualified during the Performance Period under Section 3(d) of the Agreement, then the Board will replace such disqualified Peer Company with any one of the following Alternate Bench Peer Companies:
            
		
	1.
	      PTEN           Patterson-UTI Energy, Inc.

		
	2.
	ESV        Ensco plc

		
	3.
	PD        Precision Drilling Corporation

		
	4.
	RDC        Rowan Companies plc

		
	5.
	FET        Forum Energy Technologies, Inc.

6.         HLX        Helix Energy Solutions Group, Inc.

10Exhibit 10.1

 

STOCK UNIT AWARD AGREEMENT

 

(Granted under the UFP Technologies, Inc. 2003 Incentive Plan)

  

This Stock Unit Award Agreement is entered into as of the 24th
day of February, 2020 by and between UFP Technologies, Inc. (hereinafter the “Company”) and R. Jeffrey Bailly (the
“Awardee”). Capitalized terms used but not defined herein shall have the meanings assigned to them in the Company’s
2003 Incentive Plan, as amended (the “Plan”). Stock Unit Awards (SUA’s represent the Company’s unfunded
and unsecured promise to issue shares of Common Stock at a future date, subject to the terms of this Award Agreement, including,
without limitation, the performance objectives set forth in Schedule A hereto, and the Plan. Awardee has no rights under
the SUAs other than the rights of a general unsecured creditor of the Company.

 

1.        Grant of Stock Unit
Awards; Performance Objectives; Vesting.  

 

(a)       The Company, in the exercise of its sole discretion pursuant
to the Plan, does hereby award to the Awardee the number of SUAs set forth on Schedule A hereto upon the terms and subject
to the conditions hereinafter contained. The SUA’s shall consist of a Threshold Award, a Target Award and an Exceptional
Award. The Target Award and the Exceptional Award are each awarded subject to attainment during the Performance Cycle described
on Schedule A of the Performance Objectives set forth on Schedule A .

 

(b)       Subject to attainment
of any applicable Performance Objectives, except as otherwise provided in this Agreement, payment with respect to vested SUA’s
shall be made entirely in the form of shares of Common Stock of the Company on each respective vesting date as set forth on Schedule
A.

 

(c)       As soon as possible after
the end of the Performance Cycle, the Committee will certify in writing whether and to what extent the Performance Objectives have
been met for the Performance Cycle. The date of the Committee’s certification pursuant to this subsection (c) shall hereinafter
be referred to as the “Certification Date”. The Company will notify the Awardee of the Committee’s certification
following the Certification Date (such notice, the “Determination Notice”). The Determination Notice shall specify
(i) the Performance Objective, as derived from the Company’s audited financial statements; and (ii) the extent, if any, to
which the Performance Objectives were satisfied with respect to the Target Award and the Exceptional Award.

 

2.        Change in Control.   Notwithstanding
the vesting schedule set forth in Schedule A: if there is a Change in Control of the Company (as defined in the Plan) following
the end of the Performance Cycle, and the Awardee’s Continuous Status as an employee, as contemplated by Section 4 hereof,
shall not have been terminated as of the date immediately prior to the effective date of such Change in Control, then subject to
attainment during the Performance Cycle described on Schedule A of any applicable Performance Objective set forth on Schedule
A, and subject to the provisions of Section 21 of this Award Agreement, any SUA’s representing the Threshold, Target
and the Exceptional Award, which are not already vested shall become vested in full as of the effective date of such Change in
Control.

 

     

     

    

 

3.        Termination.  
Unless terminated earlier under Section 4, 5 or 6 below, an Awardee’s rights under this Award Agreement with respect to the
SUAs issued under this Award Agreement shall terminate at the time such SUAs are converted into shares of Common Stock.

 

 4.        Termination of Awardee’s Continuous Status as an Employee.  

 

(a)              
Except as otherwise specified in subsection (b) or (c) below or as otherwise specified in Section 5 or 6 below, in the event
of termination of Awardee’s Continuous Status as an employee of the Company, Awardee’s rights under this Award Agreement
in any unvested SUAs shall terminate. For purposes of this Award Agreement, an Awardee’s Continuous Status as an employee
shall mean the absence of any interruption or termination of service as an employee. Continuous Status as an employee shall not
be considered interrupted in the case of sick leave or leave of absence for which Continuous Status is not considered interrupted
as determined by the Company in its sole discretion.

 

(b)              
Subject to: the provisions of Paragraphs 8 and 12 of the Awardee’s Employment Agreement dated October 8, 2007 with
the Company, as amended (the “Employment Agreement”) and the provisions of Section 21 of this Award Agreement, any
SUA’s representing the Threshold Award which would otherwise have resulted in the issuance of shares of the Company’s
common stock but for: (i) the termination of the Awardee’s employment by the Company without “Cause” (as defined
in the Employment Agreement); or (ii) termination of the Awardee’s employment for “Good Reason” (as defined in
the Employment Agreement) prior to the date on which such shares would otherwise have been delivered to the Awardee but for such
termination, then such shares shall be issued to the Awardee notwithstanding such termination of employment.

 

(c)              
Subject to: the provisions of Paragraphs 8 and 12 of the Employment Agreement; attainment during the Performance Cycle described
on Schedule A of any applicable Performance Objective set forth on Schedule A; and the provisions of Section 21 of
this Award Agreement, any SUA’s representing the Target Award and the Exceptional Award, which would otherwise have resulted
in the issuance of shares of the Company’s common stock following the Certification Date but for: (i) the termination of
the Awardee’s employment by the Company without “Cause” or (ii) termination of the Awardee’s employment
for “Good Reason”, in any such event following the end of the Performance Cycle but prior to the date on which such
shares would otherwise have been delivered to the Awardee but for such termination, then such shares shall be issued to the Awardee
notwithstanding such termination of employment.

 

5.        Disability of Awardee.  
Notwithstanding the provisions of Section 4 above, in the event of termination of Awardee’s Continuous Status as an employee
as a result of disability (within the meaning of Section 409A of the Internal Revenue Code, and hereinafter referred to as “Disability”),
the SUAs which would have vested during the twelve (12) months following the date of such termination, set out in Schedule A,
shall become vested as of the date of such termination, subject, however, to the provisions of Section 21 of this Award Agreement.
If Awardee’s Disability originally required him or her to take a short-term disability leave which was later converted into
long-term disability, then for the purposes of the preceding sentence the date on which Awardee ceased performing services shall
be deemed to be the date of commencement of the short-term disability leave. The Awardee’s rights in any unvested SUAs that
remain unvested after the application of this Section 5 shall terminate at the time Awardee ceases to be in Continuous Status as
an employee.

 

    2

     

    

 

6.        Death of Awardee.  
Notwithstanding the provisions of Section 4 above, in the event of the death of Awardee:

 

(a)       If the Awardee was, at
the time of death, in Continuous Status as an employee, the SUAs which would have vested during the twelve (12) months following
the date of death of Awardee, set out in Schedule A, shall become vested as of the date of death.

 

(b)        The Awardee’s rights
in any unvested SUAs that remain after the application of Section 6(a) shall terminate at the time of the Awardee’s death.

 

7.        Value of Unvested
SUAs.   In consideration of the award of these SUAs, Awardee agrees that upon and following termination of Awardee’s
Continuous Status as an employee for any reason (whether or not in breach of applicable laws), and regardless of whether Awardee
is terminated with or without cause, notice, or pre-termination procedure or whether Awardee asserts or prevails on a claim that
Awardee’s employment was terminable only for cause or only with notice or pre-termination procedure, any unvested SUAs under
this Award Agreement shall be deemed to have a value of zero dollars ($0.00).

 

8.        Conversion of SUAs
to shares of Common Stock; Responsibility for Taxes.  

 

(a)        Provided Awardee has
satisfied the requirements of Section 8(b) below, and subject to the provisions of Section 21 below, on the vesting of any SUAs,
such vested SUAs shall be converted into an equivalent number of shares of Common Stock that will be distributed to Awardee or,
in the event of Awardee’s death, to Awardee’s legal representative, as soon as practicable. The distribution to the
Awardee, or in the case of the Awardee’s death, to the Awardee’s legal representative, of shares of Common Stock in
respect of the vested SUAs shall be evidenced by a stock certificate, appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company, or other appropriate means as determined by the Company.

 

(b)       Regardless of any action
the Company takes with respect to any or all income tax (including federal, state and local taxes), social security, payroll tax
or other tax-related withholding (“Tax Related Items”), Awardee acknowledges that the ultimate liability for all Tax
Related Items legally due by Awardee is and remains Awardee’s responsibility and that the Company (i) makes no representations
or undertakings regarding the treatment of any Tax Related Items in connection with any aspect of the SUAs, including the grant
of the SUAs, the vesting of SUAs, the conversion of the SUAs into shares of Common Stock, the subsequent sale of any shares of
Common Stock acquired at vesting and the receipt of any dividends; and (ii) does not commit to structure the terms of the grant
or any aspect of the SUAs to reduce or eliminate the Awardee’s liability for Tax Related Items. Prior to the issuance of
shares of Common Stock upon vesting of SUAs as provided in Section 8(a) above, Awardee shall pay, or make adequate arrangements
satisfactory to the Company, in its sole discretion, to satisfy all withholding obligations of the Company. In this regard, Awardee
authorizes the Company to withhold all applicable Tax Related Items legally payable by Awardee from Awardee’s wages or other
cash compensation payable to Awardee by the Company. Alternatively, or in addition, if permissible under applicable law, the Company
may, in its sole discretion, (i) sell or arrange for the sale of shares of Common Stock to be issued to satisfy the withholding
obligation, and/or (ii) withhold in shares of Common Stock, provided that the Company shall withhold only the amount of shares
necessary to satisfy the minimum withholding amount. Awardee shall pay to the Company any amount of Tax Related Items that the
Company may be required to withhold as a result of Awardee’s receipt of SUAs, or the conversion of SUAs to shares of Common
Stock that cannot be satisfied by the means previously described. Except where applicable legal or regulatory provisions prohibit,
the standard process for the payment of an Awardee’s Tax Related Items shall be for the Company to withhold in shares of
Common Stock only to the amount of shares necessary to satisfy the minimum withholding amount. The Company may refuse to deliver
shares of Common Stock to Awardee if Awardee fails to comply with Awardee’s obligation in connection with the Tax Related
Items as described herein.

 

    3

     

    

 

(c)        In lieu of issuing fractional
shares of Common Stock, on the vesting of a fraction of a SUA, the Company shall round the shares to the nearest whole share and
any such share which represents a fraction of a SUA will be included in a subsequent vest date.

 

(d)        Until the distribution
to Awardee of the shares of Common Stock in respect to the vested SUAs is evidenced by a stock certificate, appropriate entry on
the books of the Company or of a duly authorized transfer agent of the Company, or other appropriate means, Awardee shall have
no right to vote or receive dividends or any other rights as a shareholder with respect to such shares of Common Stock, notwithstanding
the vesting of SUAs. Subject to the provisions of Section 21 below, the Company shall cause such distribution to Awardee to occur
promptly upon the vesting of SUAs. No adjustment will be made for a dividend or other right for which the record date is prior
to the date Awardee is recorded as the owner of the shares of Common Stock, except as provided in Section 8 of the Plan.

 

(e)        By accepting the Award
of SUAs evidenced by this Award Agreement, Awardee agrees not to sell any of the shares of Common Stock received on account of
vested SUAs at a time when applicable laws or Company policies prohibit a sale. This restriction shall apply so long as Awardee
is an Employee, Consultant or outside director of the Company or a Subsidiary of the Company.

 

(f)        Adjustments and other
matters relating to stock dividends, stock splits, recapitalizations, reorganizations, Corporate Events and the like shall be made
and determined in accordance with Section 6 of the Plan, as in effect on the date of this Agreement.

 

9.        Non-Transferability
of SUAs.   Awardee’s right in the SUAs awarded under this Award Agreement and any interest therein may not
be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner, other than by will or by the laws of descent
or distribution, prior to the distribution of the shares of Common Stock in respect of such SUAs. SUAs shall not be subject to
execution, attachment or other process.

 

    4

     

    

 

10.        Acknowledgment of
Nature of Plan and SUAs.   In accepting the Award, Awardee acknowledges that:

 

(a)       the Plan is established
voluntarily by the Company, it is discretionary in nature and may be modified, amended, suspended or terminated by the Company
at any time, as provided in the Plan;

 

(b)       the Award of SUAs is
voluntary and occasional and does not create any contractual or other right to receive future awards of SUAs, or benefits in lieu
of SUAs even if SUAs have been awarded repeatedly in the past;

 

(c)       all decisions with respect
to future awards, if any, will be at the sole discretion of the Company;

 

(d)       Awardee’s
participation in the Plan is voluntary;

 

(e)       the future value of the
underlying shares of Common Stock is unknown and cannot be predicted with certainty;

 

(f)       if Awardee receives shares
of Common Stock, the value of such shares of Common Stock acquired on vesting of SUAs may increase or decrease in value;

 

11.        No Employment Right.  
Awardee acknowledges that neither the fact of this Award of SUAs nor any provision of this Award Agreement or the Plan or the policies
adopted pursuant to the Plan shall confer upon Awardee any right with respect to employment or continuation of current employment
with the Company, or to employment that is not terminable at will. Awardee further acknowledges and agrees that neither the Plan
nor this Award of SUAs makes Awardee’s employment with the Company for any minimum or fixed period, and that such employment
is subject to the mutual consent of Awardee and the Company, and subject to any written employment agreement that may be in effect
from time to time between the Company and the Awardee, may be terminated by either Awardee or the Company at any time, for any
reason or no reason, with or without cause or notice or any kind of pre- or post-termination warning, discipline or procedure.

 

12.        Administration.  
The authority to manage and control the operation and administration of this Award Agreement shall be vested in the Committee (as
such term is defined in Section 2 of the Plan), and the Committee shall have all powers and discretion with respect to this Award
Agreement as it has with respect to the Plan. Any interpretation of the Award Agreement by the Committee and any decision made
by the Committee with respect to the Award Agreement shall be final and binding on all parties.

 

13.        Plan Governs.  
Notwithstanding anything in this Award Agreement to the contrary, the terms of this Award Agreement shall be subject to the terms
of the Plan, and this Award Agreement is subject to all interpretations, amendments, rules and regulations promulgated by the Committee
from time to time pursuant to the Plan.

 

    5

     

    

 

14.       Notices.  
Any written notices provided for in this Award Agreement which are sent by mail shall be deemed received three business days after
mailing, but not later than the date of actual receipt. Notices shall be directed, if to Awardee, at the Awardee’s address
indicated by the Company’s records and, if to the Company, at the Company’s principal executive office.

 

15.       Electronic Delivery.  
The Company may, in its sole discretion, decide to deliver any documents related to SUAs awarded under the Plan or future SUAs
that may be awarded under the Plan by electronic means or request Awardee’s consent to participate in the Plan by electronic
means. Awardee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an
on-line or electronic system established and maintained by the Company or another third party designated by the Company.

 

16.      Acknowledgment.  
By Awardee’s acceptance as evidenced below, Awardee acknowledges that Awardee has received and has read, understood and accepted
all the terms, conditions and restrictions of this Award Agreement and the Plan. Awardee understands and agrees that this Award
Agreement is subject to all the terms, conditions, and restrictions stated in this Award Agreement and the Plan, as the latter
may be amended from time to time in the Company’s sole discretion. In addition, the Awardee acknowledges that the Award and
rights granted to the Awardee hereunder shall be subject to forfeiture to the Company in accordance with any policy that may hereafter
be promulgated by the Company to comply with the requirements of Section 10D(b)(2) of the Securities Exchange Act of 1934,
as amended.

 

17.       [Intentionally Omitted]

 

18.       Governing Law.  
This Award Agreement shall be governed by the laws of the State of Delaware, without regard to Delaware laws that might cause other
law to govern under applicable principles of conflicts of law.

 

19.      Severability.  
If one or more of the provisions of this Award Agreement shall be held invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and the invalid, illegal
or unenforceable provisions shall be deemed null and void; however, to the extent permissible by law, any provisions which could
be deemed null and void shall first be construed, interpreted or revised retroactively to permit this Award Agreement to be construed
so as to foster the intent of this Award Agreement and the Plan.

 

20.     Complete Award Agreement
and Amendment.   This Award Agreement and the Plan constitute the entire agreement between Awardee and the Company
regarding SUAs. Any prior agreements, commitments or negotiations concerning these SUAs are superseded. This Award Agreement may
be amended only by written agreement of Awardee and the Company, without consent of any other person. Awardee agrees not to rely
on any oral information regarding this Award of SUAs or any written materials not identified in this Section 20.

 

    6

     

    

 

21.     
Section 409A. This Award Agreement is intended to be in compliance with the provisions of Section 409A of the Internal
Revenue Code to the extent applicable, and the Regulations issued thereunder. Anything in this Agreement to the contrary notwithstanding,
if at the time of the Awardee’s separation from service within the meaning of Section 409A of the Internal Revenue Code of
1986, as amended, and the regulations thereunder (the “Code”), the Company determines that the Awardee is a “specified
employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that the
Awardee becomes entitled to under this Agreement would be considered deferred compensation subject to the 20 percent additional
tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such
payment shall not be payable and such benefit shall not be provided until the date that is the earlier of (A) six months and one
day after the Awardee’s separation from service, or (B) the Awardee’s death. The determination of whether and when
a separation from service has occurred shall be made in accordance with the presumptions set forth in Treasury Regulation Section
1.409A-1(h). To the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A of the Code,
the provision shall be read in such a manner so that all payments hereunder comply with Section 409A of the Code. The parties agree
that this Agreement may be amended, as reasonably requested by either party, and as may be necessary to fully comply with Section
409A of the Code and all related rules and regulations in order to preserve the payments and benefits provided hereunder without
additional cost to either party. Solely for the purposes of Section 409A of the Code, the share increments issuable on each vesting
date on Schedule A shall be considered a separate payment. The Company makes no representation or warranty and shall have no liability
to the Awardee or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject
to Section 409A of the Code but do not satisfy an exemption from, or the conditions of, such Section.

 

[remainder of page intentionally left blank; signature page follows]

 

 

 

 

 

 

 

 

 

 

 

    7

     

    

 

EXECUTED the day and year first above written.

 

 

	 	UFP TECHNOLOGIES, INC.	 
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	 	Ronald J. Lataille	 
	 	 	Chief Financial Officer	 

 

 

 

AWARDEE’S ACCEPTANCE:

 

I have read and fully understood this Award Agreement and, as referenced in Section 16
above, I accept and agree to be bound by all of the terms, conditions and restrictions contained in this Award Agreement and the
other documents referenced in it.

 

	 	 	 
	 	 	 
	R. Jeffrey Bailly	 	 
	 	 	 

 

 

 

 

 

 

 

 

    8

     

    

 

SCHEDULE A

 

The SUA’s issuable under this Agreement shall consist of a Threshold Award, a Target
Performance Award and an Exceptional Performance Award, each in the amounts set forth below, each such award issuable in one-third
increments on the vesting dates set forth below, provided the respective performance objective (if applicable) is satisfied.

 

The Performance Objective established by the Committee with respect to the Target Performance
Award and Exceptional Performance Award is Adjusted Operating Income** for 2020

 

	 	Performance
     Objective	Performance
     Cycle	Number
    of Shares of Common Stock	Vesting
    Dates: March 1 of:
	 	 	 	 	*/2022	*/2023	*/2024
	a. Threshold  Award	none	n/a	4,685	1/3	1/3	1/3
	b. Target  Performance
     Award	of Adjusted Operating Income**  	Calendar Year  2020	4,684    

                                                                                (in addition to (a) above)
	1/3	1/3	1/3
	c. Exceptional
     Performance  Award	of Adjusted Operating Income**    	Calendar Year  2020	4,684    ***

                                                                                 (in addition to (a) and (b) above)
	1/3	1/3	1/3

 

*Vesting is subject to the Compensation Committee’s determination
of satisfaction of any applicable performance target for 2020 (for Target and Exceptional Performance Awards), and subject to continued
employment on each such vesting date (for all Awards).

 

** Adjusted Operating Income is defined herein as Operating Income on the Company’s
10-K, excluding the effect of (i) non-recurring restructuring charges related to plant closings and consolidations; and (ii) the
impact of acquired or disposed of operations during such year.

 

*** Between Adjusted Operating Income of
         and          the number of shares of
Common Stock issuable under the Exceptional Performance Award (in addition to the shares issuable upon attainment of the
Target Performance Award) would range from 0, representing the number of shares issuable upon attainment of
         of Adjusted Operating Income, to the full number of shares otherwise
issuable under the Exceptional award, based on straight line interpolation rounded up or down to the nearest whole share (not
to exceed          of Adjusted Operating Income for purposes of this
calculation).

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00305-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00305-of-00352.parquet"}]]