Document:

EX 10.4 - SECOND REVISED FORM OF NOTICE OF PERFORMANCE UNIT GRANT

Exhibit 10.4

[Date]

TO:

FROM:

RE:        Performance Unit Grant 

Atwood Oceanics, Inc. (the “Company”) hereby grants to you, effective as of __________, 201__ (the “Date of Grant”), ________ performance units (each a “Performance Unit”) (the “Target Amount”) under the Atwood Oceanics, Inc. 2013 Long-Term Incentive Plan (the “Plan”), subject to the Terms and Conditions of Performance Unit Grant, attached hereto as Appendix A (the “Terms and Conditions”).  The Performance Units represent the opportunity to receive a number of shares of Common Stock based on the “Payout Percentage” as defined in the Terms and Conditions.  The number of Performance Units that become “Earned Performance Units”, as defined in the Terms and Conditions, will be between 0% and 200% of the Target Amount.  The number of Performance Units is subject to adjustment as provided in Section 11 of the Plan.
Except as otherwise provided in Sections 3 or 4 of the Terms and Conditions, the Performance Units shall vest on the “Determination Date”, as defined in the Terms and Conditions; provided you remain continuously employed by the Company, its subsidiary or an affiliate throughout the three‐year period following the Date of Grant.
The grant of Performance Units is governed by the terms and conditions of the Plan, any rules and regulations adopted by the Compensation and Human Resources Committee of the Board of Directors of the Company (“Committee”), and the Terms and Conditions which form a part of this award letter to you (the “Notice”).

[Name of signing officer]

1

Appendix A 
ATWOOD OCEANICS, INC.
2013 LONG-TERM INCENTIVE PLAN

TERMS AND CONDITIONS OF 
PERFORMANCE UNIT GRANT
The performance units (the “Performance Units”) granted to you on the “Date of Grant” set forth in the award letter to you (the “Award Letter”) by Atwood Oceanics, Inc. (the “Company”) are subject to the 2013 Long‐Term Incentive Plan (the “Plan”), these Terms and Conditions, including Exhibit A hereto, and any rules and regulations adopted by the Committee.  Terms used herein and not otherwise defined shall have the meaning set forth in the Plan and the Award Letter.
1.Determination of Earned Performance Units.  The exact number of Performance Units that shall actually be earned by and issued to you shall be based upon the achievement by the Company of the performance standards as set forth in Exhibit A hereto over the three-year period beginning on ____________ and ending on ____________ (the “Performance Period”).  The determination by the Committee with respect to the achievement of such performance standards shall be made as soon as administratively practicable following the Performance Period after all necessary Company and peer information is available.  The specific date on which such determination is formally made and approved by the Committee is referred to as the “Determination Date”.  After the Determination Date, the Company shall notify you of the number of Performance Units, if any, that have become “Earned Performance Units” in accordance with Exhibit A and the corresponding number of shares of Common Stock to be issued to you in satisfaction of the award, subject to withholding as described in Section 11 below.  The shares of Common Stock shall be issued to you on March 15 following the expiration of the Performance Period (the “Settlement Date”). 
The performance standards and the number of Performance Units which may be earned are based on your Target Amount specified in the Award Letter and the Company’s Total Shareholder Return compared against the Peer Group.  The methodology for calculating the number of Earned Performance Units, including the definitions used therefor, is set forth in Exhibit A hereto.
2.Vesting/Forfeiture.  Except as otherwise provided in Sections 3 or 4 below, the Performance Units shall vest on the Determination Date, provided you are continuously employed by the Company Group throughout the Performance Period.  If your employment with the Company, its subsidiary or an affiliate (collectively, the “Company Group”) terminates for any reason other than by reason of your death or your inability to continue to actively work due to Disability, the Performance Units shall be automatically forfeited on the date of your termination of employment.  Furthermore, the Performance Units are subject to forfeiture, in whole or in part, if the Committee or its designee, based on the recommendation of the Chief Executive Officer, determines, in its sole discretion, that you have taken any unlawful action detrimental to the Company or have violated Company policy.

2

3.Death or Disability.  If during the Performance Period your employment with the Company Group is terminated by reason of your death or you become Disabled, the Performance Units shall automatically become fully vested and the number of Earned Performance Units shall equal your Target Amount.  The shares of Common Stock in respect of the Earned Performance Units shall be issued to you thirty (30) days after your death or the date of your Disability, as applicable.  For purposes of this award of Performance Units, you are considered to be “Disabled” or have a “Disability” on the date that you become eligible for long-term disability benefits pursuant to the Company’s long-term disability plan.
4.Change of Control.  Notwithstanding the provisions of Sections 2 or 3 of these Terms and Conditions, in the event of a Change of Control during the Performance Period and prior to your termination of employment with the Company Group, the Performance Units shall automatically vest and the Committee shall determine, in its sole discretion and based on such factors or methodology as the Committee deems appropriate, the number of Performance Units that become Earned Performance Units, provided, however that the number of Earned Performance Units shall be no less than your Target Amount.  Your shares of Common Stock in respect of the Earned Performance Units shall be issued to you thirty (30) days after the effective date of the Change of Control.
5.Dividend Equivalents.  Upon the date of delivery of shares of Common Stock in settlement of Earned Performance Units, you shall also be entitled to receive a lump sum cash payment equal to the Dividend Equivalent Amount.  For purposes of this award of Performance Units, “Dividend Equivalent Amount” means the sum of all cash dividends, if any, declared on shares of Common Stock you receive in settlement of Earned Performance Units where the record date is after the later of November 21, 2013 or the Date of Grant, but prior to the date such shares of Common Stock are distributed to you.  Any Earned Performance Units shall be subject to adjustment under Section 11 of the Plan with respect to dividends or other distributions that are paid in shares of Common Stock.
6.Transferability.  You may not sell, transfer, pledge, exchange, hypothecate, or otherwise dispose of the shares of Common Stock subject to the Performance Units until and unless you receive a distribution of shares of Common Stock in respect of the Earned Performance Units.
7.No Right to Continued Employment.  The award of Performance Units shall not create any right to remain in the employ of the Company Group.  The Company Group retains the right to terminate your employment at will, for due cause or otherwise.  Your employment, as it relates to the Performance Period, shall be deemed to continue during any leave of absence that has been authorized by the Company Group.
8.Other Plans.  Nothing herein contained shall affect your right to participate in and receive benefits under and in accordance with the then current provisions of any pension, insurance, profit sharing or other plan or program of the Company Group.
9.Rights as Shareholder.  You shall not be entitled to any of the rights or privileges of a shareholder of the Company, including the right to vote in respect of the shares of Common Stock, until and unless you receive a distribution of shares of Common Stock in respect of the Earned Performance Units.

3

10.Plan Governs.  The Performance Units and the Notice are subject to all of the terms and conditions of the Plan, except that no amendment to the Plan shall adversely affect your rights under the Notice.  All the terms and conditions of the Plan, as may be amended from time to time, and any rules, guidelines and procedures which may from time to time be established pursuant to the Plan are hereby incorporated into the Notice.  In the event of a discrepancy between the Notice and the Plan, the Plan shall govern.
11.Withholding.  Upon the delivery of shares of Common Stock to you, the Company Group shall withhold an appropriate number of shares of Common Stock, having a Fair Market Value determined in accordance with the Plan, equal to the amount necessary to satisfy the minimum federal, state and local tax withholding obligation with respect to your Earned Performance Units.  In lieu of withholding of shares of Common Stock, the Committee may, in its discretion, authorize tax withholding to be satisfied by a cash payment to the Company or by such other method as the Committee determines may be appropriate to satisfy all obligations for withholding of such taxes.
12.Code Section 409A; No Guarantee of Tax Consequences.  The award of Performance Units is intended to be (i) exempt from Section 409A of the Code (“Section 409A”), including, but not limited to, by reason of compliance with the short-term deferral exemption as specified in Treas. Reg. § 1.409A-1(b)(4); or (ii) in compliance with Section 409A, and the provisions of the Notice shall be administered, interpreted and construed accordingly.  Notwithstanding the foregoing provisions of the Notice, if you are a “specified employee” as such term is defined in Section 409A, any amounts that would otherwise be payable hereunder as nonqualified deferred compensation within the meaning of Section 409A on account of separation from service (other than by reason of death) to you shall not be payable before the earlier of (i) the date that is 6 months after the date of your separation from service, (ii) the date of your death, or (iii) the date that otherwise complies with the requirements of Section 409A.  In addition, notwithstanding the provisions of Section 4 of these Terms and Conditions, in the event of a Change of Control that does not meet the requirements of Treas. Reg. §1.409A-3(i)(5), any amounts that would otherwise be payable hereunder as nonqualified deferred compensation within the meaning of Section 409A shall be fully vested at a number of Earned Performance Units equal to your Target Amount but shall be settled on the earlier of (i) the Settlement Date, (ii) the date determined in accordance with the provisions of Section 3 of these Terms and Conditions, and (iii) the date of any subsequent event that would constitute a “change of control” that meets the requirements of Treas. Reg. §1.409A-3(i)(5).  To the extent required to comply with Section 409A, you shall be considered to have terminated employment with the Company when you incur a “separation from service” with the Company within the meaning of Section 409A(a)(2)(A)(i) of the Code, and you shall not be considered to be “Disabled” or to have a “Disability” unless the circumstances of the Disability meet the requirements of Treas. Reg. §1.409A-3(i)(4).  The Company makes no commitment or guarantee to you that any federal or state tax treatment shall apply or be available to any person eligible for benefits under the Notice.  
13.Governing Law.  The Plan and the Notice shall be governed by, and construed in accordance with, the laws of the State of Texas, without regard to conflicts of laws.  The courts in Harris County, Texas shall be the exclusive venue for any dispute regarding the Plan or the Notice.

4

Exhibit A

Methodology for Calculating Earned Performance Units

A.Definitions.  For purposes of determining the number of shares of Common Stock issuable to you in respect of the Earned Performance Units, the following definitions shall apply:
		
	(1)
	Ending Share Price means the average closing price of shares over nine trading days comprised of:  four trading days prior to the Performance End Date, the Performance End Date, and the four trading days after the Performance End Date.

		
	(2)
	Peer Group means Seadrill Ltd., Transocean Ltd., Ensco PLC, Noble Corporation, Diamond Offshore Drilling, Inc. and Rowan Companies to the extent such entities or their successors are in existence and publicly traded as of the Performance End Date.  

		
	(3)
	Performance Period means the period beginning on ___________ and ending ______________.

		
	(4)
	Performance End Date means ______________.

		
	(5)
	Starting Share Price means the average closing price of the shares over nine trading days comprised of:  five trading days prior to _____________ and the four trading days after ______________.

		
	(6)
	Total Shareholder Return means common stock price growth for each entity over the Performance Period, as measured by dividing the sum of the cumulative amount of dividends for the Performance Period, assuming dividend reinvestment, and the difference between the entity’s Ending Share Price and the Starting Share Price; by the entity’s Starting Share Price. 

B.Committee Methodology.  For purposes of determining the number of shares of Common Stock issuable to you in respect of the Earned Performance Units, the Committee shall:
		
	(1)
	calculate the Total Shareholder Return for the Company and each company in the Peer Group;

		
	(2)
	rank the Company and each member of the Peer Group based on Total Shareholder Return with the company having the highest Total Shareholder Return ranking in the first position and the company with the lowest Total Shareholder Return ranking in the seventh position.

5

		
	(3)
	determine the number of Earned Performance Units based on the Seven Company Payout Schedule below:

	
		
	Seven Company Payout Schedule

	Atwood Ranking
	Payout Percentage

	1
	200%

	2
	150%

	3
	100%

	4
	75%

	5
	50%

	6
	0%

	7
	0%

		
	(4)
	multiply the Payout Percentage by your Target Amount.

If any calculation with respect to the Earned Performance Units would result in a fractional share, the number of shares of Common Stock to be issued shall be rounded down to the nearest whole share.
C.Peer Group Changes.
(a)If, as a result of merger, acquisition or a similar corporate transaction, a member of the Peer Group ceases to be publicly traded (an “Affected Peer Company”)
(i) prior to July 1, 201_, the Affected Peer Company shall not be included in the Seven Company Payout Schedule and the following alternative schedules shall be used in its place:
	
		
	Six Company Payout Schedule

	Atwood Ranking
	Payout Percentage

	1
	200%

	2
	150%

	3
	100%

	4
	75%

	5
	50%

	6
	0%

	
		
	Five Company Payout Schedule

	Atwood Ranking
	Payout Percentage

	1
	200%

	2
	150%

	3
	100%

	4
	50%

	5
	0%

	
		
	Four Company Payout Schedule

	Atwood Ranking
	Payout Percentage

	1
	200%

	2
	100%

	3
	100%

	4
	0%

6

(ii) on or subsequent to July 1, 201_, the Affected Peer Company shall remain in the Peer Group and its Ending Share Price shall be determined by assuming that its performance for the remainder of the Performance Period was equivalent to the arithmetic average (up or down) of the remaining members of the Peer Group over the remainder of the Performance Period.
(b)If a member of the Peer Group declares bankruptcy, it shall be deemed to remain in the Peer Group until the Performance End Date and shall occupy the lowest ranking in the Payout Schedule.

7Exhibit 10.1

 

FORM OF

PERFORMANCE UNIT AGREEMENT

 

THIS PERFORMANCE UNIT AGREEMENT (this “Agreement”) is entered into by and between EnLink Midstream GP, LLC, a Delaware limited liability company (the “Company”), and                                    (“Participant”) as of the Grant Date.

 

WITNESSETH:

 

WHEREAS, the EnLink Midstream GP, LLC Long-Term Incentive Plan, as amended and restated March 7, 2014 (the “Plan”), was adopted by the Company for the benefit of certain employees and consultants of the Company or its Affiliates, and non-employee directors of the Company; and

 

WHEREAS, the Committee is responsible for granting Awards in accordance with the Plan, which Awards shall be subject to such terms and conditions as the Committee shall determine pursuant to the Plan; and

 

WHEREAS, Participant is eligible to participate in the Plan and the Committee has authorized the grant to Participant of the “Subject Award” (as defined in Section 2 of this Agreement), which is intended to constitute performance-based compensation, and which shall be subject to certain restrictions pursuant to the Plan and upon the terms set forth herein.

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements hereinafter set forth, the Company and Participant hereby agree as follows:

 

1.                                      Definitions.  Capitalized terms used herein and not otherwise defined herein shall have the meaning ascribed to them in the Plan.

 

“Good Reason” means any of the following, without Participant’s consent: (i) a material reduction in Participant’s base annual salary; (ii) a material adverse change in Participant’s authority, duties or responsibilities; or (iii) the Company requires Participant to move his or her principal place of employment to a location that is 30 or more miles from his or her current place of employment and the new location is farther from his or her primary residence.  From and after the occurrence of a Change of Control that occurs following the date hereof, Good Reason shall also include any material breach of this Agreement by the Company (or any successor thereof, as applicable).  For purposes of this definition, no act or failure to act on the Company’s part shall be considered a “Good Reason” unless (x) Participant has given the Company written notice of such act or failure to act within 30 days thereof, (y) the Company fails to remedy such act or failure to act within 30 days of its receipt of such notice, and (z) Participant terminates his or her employment with the Company within 60 days following the Company’s receipt of written notice.

 

“Grant Date” means      .

 

“Performance Goal” means the Performance Goal as set forth in Schedule A to this Agreement.

 

“Performance Period” means the period defined in Schedule A to this Agreement for purposes of determining attainment of the Performance Goal.

 

“Prorated Amount” means a number equal to the total number of outstanding Restricted Incentive Units granted hereunder multiplied by a fraction (i) the numerator of which is the number of days that elapse from the commencement of the Performance Period to the date of the Qualifying Termination and (ii) the denominator of which is the full number of days of the Performance Period.

 

1

 

“Qualifying Termination” means Participant’s employment or service with the Company or its Affiliates is terminated due to (i) Participant’s retirement with the approval of the Chief Executive Officer of the Company on or after reaching age 60, (ii) an involuntary termination of Participant by the Company for reasons other than Cause, or (iii) a termination by Participant for Good Reason.

 

“Vesting Date” means the date on which the Performance Period ends as set forth in Schedule A to this Agreement.

 

2.                                      Performance Unit Award.  On the terms and conditions and subject to the restrictions, including forfeiture, hereinafter set forth, the Company hereby grants to Participant, and Participant hereby accepts, an award of            Restricted Incentive Units (the “Subject Award”).  The Restricted Incentive Units granted hereunder shall be evidenced by the Committee in a book entry or in such other manner as the Committee may determine.

 

3.                                      Vesting/Forfeiture.

 

(a)                                 The Restricted Incentive Units that comprise the Subject Award shall be subject to a Performance Period that shall terminate on the Vesting Date based on the attainment and certification of the Performance Goal as described Schedule A; provided that Participant is in the continuous service of the Company or its Affiliates until such Vesting Date.

 

(b)                                 The Restricted Incentive Units shall be forfeited to the Company at no cost to the Company if Participant’s employment or service with the Company or its Affiliates terminates prior to the termination of the Performance Period applicable to such Restricted Incentive Units; provided, however:

 

(i)                                     if a Qualifying Termination occurs during the Performance Period and prior to the occurrence of a Change of Control that occurs following the date hereof, a Prorated Amount of the Restricted Incentive Units shall remain eligible for vesting on the Vesting Date, based on the attainment and certification of the Performance Goal as described Schedule A;

 

(ii)                                  if a Change of Control occurs following the date hereof, the Restricted Incentive Units shall become fully vested at the Target amount and the Performance Period shall terminate; or

 

(iii)                               if, during the Performance Period, the Participant dies or he or she becomes disabled and qualified to receive benefits under the Company’s long-term disability plan, the Restricted Incentive Units shall become fully vested at the Target amount and the Performance Period shall terminate.

 

Notwithstanding the foregoing, to the extent the Subject Award is subject to Section 409A, in no event shall any Units be delivered when Participant becomes disabled and qualified to receive benefits under the Company’s long-term disability plan unless Participant incurs a “disability” within the meaning of Treas. Reg. Section 1.409A-3(i)(4).

 

Notwithstanding anything herein to the contrary, if, at the time of a Participant’s termination of employment or service with the Company or its Affiliates, such Participant is a “specified employee” (as defined in Section 409A of the Code), and the deferral of the commencement of any amount of the payments or benefits otherwise payable pursuant to the Plan is necessary in order to prevent any accelerated or additional tax under Section 409A of the Code, then, to the extent permitted by Section 409A of the Code, such payments or benefits hereunder (without any reduction in the payments

 

2

 

or benefits ultimately paid or provided to the Participant) will be deferred until the earlier to occur of (i) the Participant’s death or (ii) the first business day that is six (6) months following the Participant’s termination of employment or service with the Company or its Affiliates, provided that amounts which qualify for the separation pay plan exemption under Treasury Regulation §1.409A-1(b)(9)(v)(D) and do not exceed the limits set forth in Section 402(g)(1)(B) of the Code in the year of such termination shall be payable immediately upon termination.  Any payments or benefits deferred due to the requirements of this paragraph will be paid in a lump sum (without interest) to the Participant on the earliest to occur of (i) or (ii) in the immediately preceding sentence.

 

(c)                                  As soon as reasonably practicable following the close of the Performance Period, the Committee shall determine and certify the extent to which (i) the Performance Goal as described on Schedule A is attained and (ii) the Restricted Incentive Units granted hereunder shall be vested, if at all.  Such certification shall be final, conclusive and binding on Participant, and on all other persons, to the maximum extent permitted by law.  As soon as reasonably practicable thereafter, Units representing the number of vested Restricted Incentive Units, if any, shall be delivered, free of all such restrictions, to Participant or Participant’s beneficiary or estate, as the case may be, it being understood that the entry on the transfer agent’s books or the delivery of the certificate(s) with respect to such Units shall constitute delivery of such Units for purposes of this Agreement.  Notwithstanding anything contained herein to the contrary, in no event shall such Units be delivered to Participant later than (i) the end of the calendar year in which vesting occurs, or, if later, (ii) the 15th day of the third calendar month following the date on which vesting occurs.

 

(d)                                 Notwithstanding anything contained herein to the contrary, in no event shall Participant have any right to vote any, or to exercise any other rights, powers and privileges of a holder of the Units with respect to such Restricted Incentive Units until such time that (i) the Performance Period applicable to such Restricted Incentive Units or a portion thereof shall have expired (and all other conditions to payment with respect thereto have been fulfilled), (ii) such Restricted Incentive Units are converted into the right to receive Units, and (iii) such Units are delivered to Participant.

 

4.                                      Distribution Equivalent Payment Rights.  Subject to the following, the Subject Award granted hereunder includes a tandem award of Distribution Equivalent Rights with respect to each applicable Restricted Incentive Unit that shall entitle Participant to receive cash payments equal to the cash distributions made by the Partnership (on a per Unit basis) in respect of its outstanding Units generally (“General Distributions”); provided that such cash payments (“Distribution Equivalent Payments”) shall be credited to a bookkeeping account established on the records of the Partnership for Participant and will vest and be paid to or on behalf of Participant at the same time, and subject to the same conditions, as are applicable to the vesting of the underlying Restricted Incentive Units.  Accordingly, Distribution Equivalent Payments shall be forfeited to the extent that the underlying Restricted Incentive Units do not vest, are forfeited or are otherwise cancelled.  No interest shall be credited on any Distribution Equivalent Payments.

 

3

 

5.                                      Taxes.

 

(a)                                 REPRESENTATION. PARTICIPANT REPRESENTS THAT PARTICIPANT IS NOT RELYING ON THE COMPANY OR ITS AFFILIATES FOR ANY TAX ADVICE IN CONNECTION WITH THE RESTRICTED INCENTIVE UNITS AND THAT PARTICIPANT HAS BEEN, OR IS OTHERWISE HEREBY, ADVISED TO CONSULT WITH ITS OWN TAX ADVISOR WITH RESPECT TO THE AWARD OF RESTRICTED INCENTIVE UNITS UNDER THIS AGREEMENT.

 

(b)                                 Withholding Matters.

 

(i)                                     Participant shall pay to the Company or its Affiliates, or make arrangements satisfactory to the Company or its Affiliates regarding payment of, any federal, state or local taxes of any kind required by law to be withheld with respect to (x) Distribution Equivalent Payments described in Section 4 of this Agreement that are received due to the grant of the Restricted Incentive Units hereunder, and (y) the vesting of the Restricted Incentive Units (in which case arrangements will be made no later than the time Units are delivered, if at all, pursuant to Section 3(c) herein).

 

(ii)                                  Participant shall, to the extent permitted by law, have the right to deliver to the Company or its Affiliates Units to which Participant shall be entitled upon the vesting of the Restricted Incentive Units (or other unrestricted Units owned by Participant) or to deliver to the Company or its Affiliates Units that Participant has previously acquired, in each case valued at the Fair Market Value of such Units at the time of such delivery to the Company or its Affiliates, to satisfy the obligation of Participant under Section 5(b)(i) of this Agreement; provided, however, that, in no event shall the Fair Market Value of such Units exceed the minimum statutory withholding requirements.

 

(iii)                               Any provision of this Agreement to the contrary notwithstanding, if Participant does not otherwise satisfy the obligation of Participant under Section 5(b)(i) of this Agreement, then the Company and its Affiliates shall, to the extent permitted by law, have the right to deduct from any payments of any kind otherwise due from the Company or its Affiliates to or with respect to Participant, whether or not pursuant to this Agreement or the Plan and regardless of the form of payment, any federal, state or local taxes of any kind required by law to be withheld with respect to any Distribution Equivalent Payments or Restricted Incentive Units hereunder.

 

6.                                      Non-Assignability.  The Subject Award is not assignable or transferable by Participant, and, unless and until Units with respect to Restricted Incentive Units are delivered to Participant upon vesting, such Restricted Incentive Units shall not be assigned, alienated, pledged, attached sold or otherwise transferred or encumbered by Participant in any manner.

 

7.                                      Legend.  In the event any Units are delivered to Participant in connection with the vesting of any of the Restricted Incentive Units granted hereunder, the Committee, in its discretion, may cause the certificate(s) representing such Units to bear an appropriate legend referring to any conditions and/or restrictions with respect to such Units.

 

8.                                      Entirety and Modification.  This Agreement contains the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes any and all prior agreements, whether written or oral, between such parties relating to such subject matter.  Subject to Section 7(b) of the Plan, no modification, alteration, amendment or supplement to this Agreement shall be valid or effective unless the same is in writing and signed by the party against whom it is sought to be enforced.

 

4

 

9.                                      Severability.  If any provision of this Agreement is held to be unenforceable, this Agreement shall be considered divisible, and such provision shall be deemed inoperative to the extent it is unenforceable, and in all other respects this Agreement shall remain in full force and effect; provided, however, that if any such provision may be made enforceable by limitation thereof, then such provision shall be deemed to be so limited and shall be enforceable to the maximum extent permitted by applicable law.

 

10.                               Gender.  Words used in this Agreement which refer to Participant and denote the male gender shall also be deemed to include the female gender or the neuter gender when appropriate.

 

11.                               Employment or Service.  Nothing in this Agreement shall confer upon Participant any right to continue in the employ or service of the Company or its Affiliates, nor shall this Agreement interfere in any manner with the right of the Company or its Affiliates to terminate the employment or service of Participant with or without Cause at any time.

 

12                                  Incorporation of Plan Provisions.  This Agreement is made pursuant to the Plan and is subject to all of the terms and provisions of the Plan as if the same were fully set forth herein.  In the event that any provision of this Agreement conflicts with the Plan, the provisions of the Plan shall control.  Participant acknowledges receipt of a copy of the Plan and agrees that all decisions under and interpretations of the Plan by the Committee shall be final, binding and conclusive upon Participant.

 

13.                               Headings.  The headings of the various sections and subsections of this Agreement have been inserted for convenient reference only and shall not be construed to enlarge, diminish or otherwise change the express provisions hereof.

 

14.                               Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the state of Delaware (regardless of the laws that might otherwise govern under applicable Delaware principles of conflicts of law).

 

15.                               Counterparts.  This Agreement may be signed in counterparts, each of which shall be deemed an original and all of which shall constitute one and the same agreement.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Grant Date.

 

	
 
    	
ENLINK MIDSTREAM GP, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Barry   E. Davis
    
	
 
    	
President   and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PARTICIPANT:
    
	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    
	
 
    	
YOU   MUST ACCEPT THIS GRANT AND THE TERMS OF THIS AGREEMENT IN ORDER TO RECEIVE   IT. TO ACCEPT THIS GRANT, COMPLETE THE GRANT ACCEPTANCE PROCESS AT THE   WEBSITE OF UBS: (www.ubs.com/onesource/ENLK)
    

 

5

 

SCHEDULE A

PERFORMANCE GOAL, PERFORMANCE PERIOD, AND PAYOUT AMOUNTS

 

1.                                      Performance Period.  The maximum number of Restricted Incentive Units, which can vest pursuant to the Subject Award shall be calculated based on the Performance Goal over a period (the “Performance Period”) that begins on [·] and ends on [·] (the “Vesting Date”).

 

2.                                      Performance Goal.  The Performance Goal is based on total shareholder return (“TSR”), which shall be the rate of return a holder of a common equity security of a company would receive through common equity security price changes and the assumed reinvestment of dividends / distributions over the Performance Period.  Vesting will be based on the ranking of the average of the TSR of the Partnership and the TSR of EnLink Midstream, LLC (the “LLC” and, together with the Partnership, “EnLink”) relative to the TSR ranking of the Peer Companies (identified in Sections 3(c) and (d) below).  At the end of the Performance Period, the TSR for the Partnership, for the LLC and for each Peer Company, shall be determined pursuant to the following formula:

 

	
TSR    =
    	
(Closing Average Value - Opening Average Value) +   Reinvested Dividends / Opening Average Value*
    

 

*The result shall be rounded to the nearest hundredth of one percent (.01%).

 

(a)                                 The term “Closing Average Value” means the average value of the common equity security on the relevant United States stock market (NYSE or NASDAQ) for the 30 trading days ending on the last day of the Performance Period, which shall be calculated as follows: (i) determine the closing price of the common equity security on each trading date during 30-day period and (ii) average the amounts so determined for the 30-day period.

 

(b)                                 The term “Opening Average Value” means the average value of the common equity security on the relevant United States stock market (NYSE or NASDAQ) for the 30 trading days preceding the start of the Performance Period, which shall be calculated as follows: (i) determine the closing price of the common equity security on each trading date during the 30-day period and (ii) average the amounts so determined for the 30-day period.

 

(c)                                  “Reinvested Dividends” shall be calculated by multiplying (i) the aggregate number of common equity securities (including fractional units thereof) that could have been purchased during the Performance Period had each cash dividend or distribution paid on a single common equity security during that period been immediately reinvested in additional common equity securities (or fractional units thereof) at the closing selling price per common equity security on the applicable dividend or distribution payment date by (ii) the average daily closing price per common equity security on the relevant United States stock market (NYSE or NASDAQ) calculated for the duration of the Performance Period following the dividend or distribution payment date.

 

(d)                                 Each of the foregoing amounts shall be equitably adjusted for stock / unit splits, stock dividends or unit distributions, recapitalizations and other similar events affecting the common equity securities in question without the issuer’s receipt of consideration.

 

3.                                      Vesting Schedule.  The Restricted Incentive Units shall vest pursuant to the Agreement based on EnLink’s relative TSR ranking in respect of the Performance Period as compared to the TSR ranking of the Peer Companies, in accordance with the following schedule:

 

A-1

 

	
Performance
   Level
    	
 
    	
EnLink’s Achieved TSR Percentile
    Position Relative to AMZ Peers*
    	
 
    	
Associated Individual Payout Level
    (expressed as a percentage
    of the Subject Award)
    	
 
    
	
Below   Threshold
    	
 
    	
Less than 25%
    	
 
    	
0
    	
%
    
	
Threshold
    	
 
    	
Equal to 25%
    	
 
    	
50
    	
%
    
	
Target
    	
 
    	
Equal to 50%
    	
 
    	
100
    	
%
    
	
Maximum
    	
 
    	
Greater than or Equal to 75%
    	
 
    	
200
    	
%
    

 

* If EnLink’s achieved TSR percentile position is between the Threshold and Target performance levels or if EnLink’s achieved TSR percentile position is between the Target and Maximum performance levels (and EnLink’s TSR is positive for the Performance Period), then the associated individual payout level will be interpolated on a linear basis.

 

(a)                                 If EnLink’s TSR is negative for the Performance Period, the maximum associated payout level (expressed as a percentage of the Subject Award) for the Performance Period shall not exceed 100% of the Subject Award (i.e., if EnLink’s achieved TSR percentile position relative to AMZ peers equals or exceeds 50%, then the associated payout level will not exceed 100%).

 

(b)                                 If EnLink’s final TSR value is equal to the TSR value of a Peer Company, the Committee shall assign EnLink the higher ranking.

 

(c)                                  The Peer Companies are the companies that comprise the Alerian MLP Index for Master Limited Partnerships (AMZ) as of the Grant Date, which are set forth on Schedule B to this Agreement, it being understood that in no event shall the Peer Companies include the LLC or the Partnership.

 

(d)                                 The Peer Companies will be subject to change as follows:

 

(i)                                     In the event of a merger, acquisition or business combination transaction of a Peer Company, in which the Peer Company is the surviving entity and remains publicly traded, the surviving entity shall remain a Peer Company.  Any entity involved in the transaction that is not the surviving company shall no longer be a Peer Company.

 

(ii)                                  If a Peer Company ceases to be a publicly traded company at any time during the Performance Period, due to bankruptcy, delisting or any other reason other than those set forth in clause (i) above, such company shall remain a Peer Company but shall be deemed to have a TSR of negative 100% (-100%).

 

4.                                      General Vesting Terms.  Any fractional Restricted Incentive Units resulting from the vesting of the Restricted Incentive Units in accordance with the Agreement shall be rounded down to the nearest whole number.  Any portion of the Restricted Incentive Units that does not vest as of the end of the Performance Period shall be forfeited as of the end of the Performance Period.

 

A-2

 

SCHEDULE B

PEER COMPANIES

 

[to be completed]

 

B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}]]