Document:

EX-10.2

 Exhibit 10.2 

PERFORMANCE UNIT AWARD AGREEMENT 

ECLIPSE RESOURCES CORPORATION 

2014 LONG-TERM INCENTIVE PLAN 

THIS PERFORMANCE UNIT AWARD AGREEMENT (this “Agreement”) evidences an award made as of the [—] day of [—],[—] (the “Date of
Grant”), by ECLIPSE RESOURCES CORPORATION, a Delaware corporation (“Company”), to [—] (“Employee”). 

1. Award. Company hereby grants to Employee an award (the “Award”) to receive an aggregate of [—] performance units (each, a “Performance Unit”) in respect of the period beginning [—] and
ending [—] (the “Performance Period”). This Award is subject to Employee’s acceptance of and agreement to all the applicable terms, conditions and
restrictions described in this Agreement and the Eclipse Resources Corporation 2014 Long-Term Incentive Plan (as it may be amended from time to time, the “Plan”). A copy of the Plan is available upon request. Except as
provided below, to the extent that any provision of this Agreement conflicts with the terms of the Plan, Employee acknowledges and agrees that the terms of the Plan shall control and, if necessary, the applicable provisions of this Agreement shall
be deemed amended so as to carry out the purpose and intent of the Plan. The Performance Units contemplated herein are described in the Plan as Restricted Stock Units subject to restrictions that lapse based on the achievement of performance goals
pursuant to Section 2.08 of the Plan. 
 2. Definitions. Capitalized terms used in this Agreement that are not defined
below or in the body of this Agreement shall have the meanings given to them in the Plan. In addition to the terms defined in the body of this Agreement, the following capitalized words and terms shall have the meanings indicated below: 

(a) “Cause” means “Cause” as defined in the employment agreement between Employee and Company, or if
“Cause” is not defined in such employment agreement or in the absence of such employment agreement, “Cause” means the occurrence of any of the following events, as reasonably determined by the Board: (i) Employee’s
willful or continued failure to perform his or her material duties for the Company; (ii) Employee’s conviction of a felony, or his or her guilty plea to or entry of a nolo contendere plea to a felony charge; (iii) the willful
or grossly negligent engagement by Employee in conduct that is materially injurious to the Company, financially or otherwise; or (iv) Employee’s breach of any material term of the Company’s material written policies and material
procedures, as in effect from time to time. 
 (b) “Change of Control Period” means the 24-month period beginning on
the date on which occurs a Change of Control. 
 (c) “Disability” means “Disability” as defined in the
employment agreement between Employee and Company, or if “Disability” is not defined in such employment agreement or in the absence of such employment agreement, “Disability” means Employee’s inability to engage in any
substantial gainful activity necessary to perform his or her duties hereunder by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted, or can be expected to last, for a
continuous period 

 
of not less than twelve (12) months. Employee agrees to submit to such medical examinations as may be necessary to determine whether a Disability exists, pursuant to such reasonable requests
as may be made by the Company from time to time. Any determination as to the existence of a Disability will be made by a physician selected by the Company. 

(d) “Good Reason” means “Good Reason” as defined in the employment agreement between Employee and Company,
or if “Good Reason” is not defined in such employment agreement or in the absence of such employment agreement, “Good Reason” means any of the following, but only if occurring without Employee’s written consent: (i) a
material diminution in Employee’s base salary; (ii) a material diminution in Employee’s authority, duties, or responsibilities; or (iii) the relocation of Employee’s principal office to an area more than 50 miles from its
location immediately prior to such relocation. 
 (e) “Involuntary Termination” means the Employee’s
involuntary termination of employment with the Company and each of its Subsidiaries without Cause, or Employee’s voluntary termination of employment with the Company and each of its Subsidiaries for Good Reason. 

3. Overview of Performance Units. 

(a) Performance Units Generally. Each Performance Unit represents a contractual right to receive one share of the Company’s
Stock (“Stock”), subject to the terms and conditions of this Agreement; provided that, based on the relative achievement against each Performance Objective (as defined below), the number of shares of Stock that may be
deliverable hereunder in respect of the Performance Units may range from [—]% to [—]% of the number of
Performance Units stated in Section 1 of this Agreement (the number of Performance Units stated in Section 1 of this Agreement, the “Initial Performance Units”). Employee’s right to receive Stock in respect of
Performance Units is generally contingent, in whole or in part, upon (i) the achievement of the performance objective outlined in Section 4 below (the “Performance Objective”) and (ii) except as provided in
Section 6, Employee’s continued employment with the Company or one of its Subsidiaries through the end of the Performance Period. 

(b) Dividend Equivalents. With respect to each outstanding Performance Unit, the Company shall credit a book entry account with
an amount equal to the amount of any cash dividend paid on one share of Stock. The amount credited to such book entry account shall be payable to Employee at the same time or times, and subject to the same terms and conditions as are applicable to,
Employee’s Performance Units; provided that, if more than the Initial Performance Units shall become payable in accordance with this Agreement, the maximum amount payable in respect of such dividend equivalents shall be the amount credited to
Employee’s book entry account. Dividends and distributions payable on Stock other than in cash will be addressed in accordance with Section 9 hereof. 

4. Total Shareholder Return Objective. The Performance Objective with respect to the Initial Performance Units is based on Total
Shareholder Return. Total Shareholder Return shall mean, as to the Company and each of the Peer Companies (as defined below), the 

  
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annualized rate of return shareholders receive through stock price changes and the assumed reinvestment of dividends paid over the Performance Period. Dividends per share paid other than in the
form of cash shall have a value equal to the amount of such dividends reported by the issuer to its shareholders for purposes of Federal income taxation. For purposes of determining the Total Shareholder Return for the Company and each of the Peer
Companies, the change in the price of the Company’s Stock and of the stock of each Peer Company, as the case may be, shall be based upon the average of the closing stock prices of the Company and such Peer Company on each trading day in the
20-day period preceding each of the start (the “Initial Value”) and the end (the “Closing Value”) of the Performance Period. The Initial Value of the Stock to be used to determine Total Shareholder
Return over the Performance Period is $[—] per share. Achievement with respect to this Performance Objective shall be determined based on the Company’s relative ranking in
respect of the Performance Period with regard to Total Shareholder Return as compared to Total Shareholder Return of the Peer Companies, and shall be determined in accordance with the applicable table as set forth in Appendix A hereto. The
applicable table shall be determined based on the number of Peer Companies for the Performance Period. A company shall be a “Peer Company” if it (i) is one of the companies listed on Appendix A hereto and
(ii) has a class of common equity securities listed to trade under Section 12(g) of the Securities Exchange Act of 1934, as amended (the “1934 Act”), during each day of the Performance Period. The number of
Performance Units, if any, determined to be earned pursuant to the applicable table under Appendix A, as modified pursuant to Section 6, if applicable, shall be referred to “Earned Performance Units”.
Notwithstanding anything in this Section 4 to the contrary, if Company’s Total Shareholder Return for the Performance Period is negative then the maximum number of Earned Performance Units shall be the number of Initial Performance Units.

 5. Conversion of Performance Units; Delivery of Performance Units. Unless an earlier date applies pursuant to
Section 6, payment in respect of Earned Performance Units shall be made not later than March 1 of the year following the year in which the Performance Period ends. Unless otherwise determined by the Board, all payments in respect of Earned
Performance Units shall be made in shares of Stock. Any shares of Stock issued to Employee pursuant to this Agreement in settlement of Earned Performance Units shall be in book entry form registered in Employee’s name. Any fractional Earned
Performance Units shall be rounded down to the nearest whole share of Stock. 
 6. Termination of Employment; Change of
Control. 
 (a) Death or Disability. If Employee’s employment with the Company and each of its Subsidiaries
terminates during the Performance Period due to Employee’s death or Disability, Employee shall be deemed to have Earned Performance Units equal to the Initial Performance Units. 

(b) Normal Retirement. If Employee’s employment with the Company and each of its Subsidiaries terminates during the
Performance Period due to Employee’s retirement at or after having attained age 65, Employee shall be deemed to have Earned Performance Units, as of the end of the Performance Period, equal in number to the number of Earned Performance Units
that Employee would have earned in accordance with Section 4 had Employee remained 

  
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employed through the end of the Performance Period. Any portion of Employee’s Performance Units that is eligible to be earned pursuant to first sentence of this Section 6(b), but is not
earned as of the end of the Performance Period, shall terminate and be canceled upon the expiration of such Performance Period. 
 (c)
Involuntary Termination Outside of Change of Control Period. If Employee incurs an Involuntary Termination during the Performance Period but outside of a Change of Control Period, Employee shall be deemed to have Earned Performance
Units, as of the date of such Involuntary Termination, equal in number to the product of (i) the Initial Performance Units, and (ii) a fraction, (A) the numerator of which is the number of full months (counting the month in which
Employee’s termination of employment occurs as a full month) during the Performance Period during which Employee was employed and (B) the denominator of which is 36. 

(d) Involuntary Termination During Change of Control Period. If Employee incurs an Involuntary Termination during the
Performance Period and within a Change of Control Period, Employee shall be deemed to have Earned Performance Units, as of the date of such Involuntary Termination, equal in number to the Initial Performance Units. 

(e) Other Termination of Employment. Unless otherwise determined by the Board at or after grant, if Employee’s employment
with the Company and its Subsidiaries terminates before the end of the Performance Period for any reason other than those listed in Section 6(a), 6(b), 6(c) or 6(d), all of Employee’s unearned and unvested Performance Units shall terminate
and automatically be canceled upon such termination of employment. 
 (f) Change of Control. Upon a Change of Control that
involves a merger, reclassification, reorganization or other similar transaction in which the surviving entity, Company’s successor or the direct or indirect parent of the surviving entity or Company’s successor (the “Successor
Entity”), fails to assume this Award or substitute this Award with a substantially equivalent award, Employee shall be deemed to have Earned Performance Units, as of the date of such Change of Control, equal in number to the number of
Earned Performance Units that Employee would have earned in accordance with Section 4 assuming that (i) the Performance Period ended on the date of the Change of Control, and (ii) the determination of whether, and to what extent, the
Performance Objective is achieved, is based on actual performance against the stated performance criteria through the date of such Change of Control. 

7. Nontransferability of Awards. The Performance Units granted hereunder may not be sold, transferred, pledged, assigned,
encumbered or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution. Following Employee’s death, any shares of Stock distributable in respect of Performance Units will be delivered or paid, at the
time specified in Section 5 or, if applicable, Section 6, to Employee’s beneficiary in accordance with, and subject to, the terms and conditions hereof and of the Plan. 

8. Beneficiary Designation. Employee may from time to time name any beneficiary or beneficiaries (who may be named contingently
or successively) to whom shall be delivered or paid under this Agreement following Employee’s death any shares that are 

  
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distributable or cash payable hereunder in respect of Employee’s Performance Units at the time specified in Section 5 or, if applicable, Section 6. Each designation will revoke all
prior designations, shall be in a form prescribed by the Board, and will be effective only when filed in writing with the Board during Employee’s lifetime. In the absence of any such effective designation, shares of Stock issuable in connection
with Employee’s death shall be paid to Employee’s surviving spouse, if any, or otherwise to Employee’s estate. 
 9.
Adjustments in Respect of Performance Units. In the event of any Stock dividend or Stock split, recapitalization (including, but not limited to, the payment of an extraordinary dividend), merger, consolidation, combination, spin-off,
distribution of assets to stockholders (other than cash dividends), exchange of shares, or other similar corporate change with regard to the Company or any Peer Company, appropriate adjustments shall be made by the Board to the Initial Value of the
corresponding stock, and, if any such event occurs with respect to the Company, in the aggregate number of Performance Units subject to this Agreement. The Board’s determination with respect to any such adjustment shall be conclusive. 

10. Effect of Settlement. Upon conversion into shares of Stock pursuant to Section 5, all of Employee’s Performance
Units subject to the Award shall be cancelled and terminated. If and to the extent that Employee is still employed at the end of the Performance Period, and none of Employee’s Performance Units shall have become earned in accordance with the
terms of this Agreement, all such Performance Units subject to the Award shall be cancelled and terminated. 
 11. Recoupment.
Notwithstanding any other provision herein, the Award and any shares Stock that may be issued, delivered or paid in respect of the Award, as well as any consideration that may be received in respect of a sale or other disposition of any such shares
of Stock, shall be subject to any recoupment, “clawback” or similar provisions of applicable law, as well as any recoupment or “clawback” policies of the Company that may be in effect from time to time. In addition, the Company
may require Employee to deliver or otherwise repay to Company the Award and any shares of Stock delivered or paid in respect of the Award, as well as any consideration that may be received in respect of a sale or other disposition of any such shares
of Stock, if the Company reasonably determines that during Employee’s employment with the Company a Subsidiary, or at any time thereafter, Employee (a) has committed or engaged in a breach of confidentiality, or an unauthorized disclosure
or use of inside information, customer lists, trade secrets or other confidential information of Company or any of its Subsidiaries; or (b) materially breached any agreement to which Employee is a party with Company or any of its Subsidiaries,
including, but not limited to, any non-competition or non-solicitation agreement. 
 12. Furnish Information. Employee agrees
to furnish to the Company all information requested by the Company to enable it to comply with any reporting or other requirements imposed upon the Company by or under any applicable statute or regulation. 

13. Payment of Taxes. Company may from time to time require Employee to pay to the Company (or the Company’s Subsidiary if
Employee is an employee of a Subsidiary) the amount that Company deems necessary to satisfy Company’s or its Subsidiary’s current or future obligation to withhold federal, state or local income or other taxes that Employee incurs as a
result of the Award. With respect to any required tax withholding, unless another arrangement is 

  
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permitted by Company in its discretion, Company shall withhold from the shares of Stock to be issued to Employee the number of shares necessary to satisfy the Company’s obligation to
withhold taxes, that determination to be based on the shares’ Fair Market Value at the time as of which such determination is made. In the event Company subsequently determines that the aggregate Fair Market Value of any shares of Stock
withheld as payment of any tax withholding obligation is insufficient to discharge that tax withholding obligation, then Employee shall pay to the Company, immediately upon the Company’s request, the amount of that deficiency. 

14. Right of the Company and Subsidiaries to Terminate Employment. Nothing contained in this Agreement shall confer upon
Employee the right to continue in the employ of the Company or any Subsidiary of the Company, or interfere in any way with the rights of the Company or any Subsidiary of the Company to terminate Employee’s employment at any time. 

15. No Liability for Good Faith Determinations. Neither the Company nor the members of the Board and the Board shall be liable
for any act, omission or determination taken or made in good faith with respect to this Agreement or the Performance Units granted hereunder. 

16. No Guarantee of Interests. The Board and the Company do not guarantee the Stock from loss or depreciation. 

17. Company Records. Records of the Company or its Subsidiaries regarding Employee’s period of employment, termination of
employment and the reason therefor, leaves of absence, re-employment, and other matters shall be conclusive for all purposes hereunder, unless determined by the Board to be incorrect. 

18. Severability. If any provision of this Agreement is held to be illegal or invalid for any reason, the illegality or
invalidity shall not affect the remaining provisions hereof, but such provision shall be fully severable and this Agreement shall be construed and enforced as if the illegal or invalid provision had never been included herein. 

19. Notices. Whenever any notice is required or permitted hereunder, such notice must be in writing and personally delivered or
sent by mail. Any such notice required or permitted to be delivered hereunder shall be deemed to be delivered on the date on which it is personally delivered, or, whether actually received or not, on the third Business Day after it is deposited in
the United States mail, certified or registered, postage prepaid, addressed to the person who is to receive it at the address which such person has theretofore specified by written notice delivered in accordance herewith. Company or Employee may
change, at any time and from time to time, by written notice to the other, the address which it or he had previously specified for receiving notices. 

  
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 Company and Employee agree that any notices shall be given to the Company or to Employee at the following
addresses: 
  

			
	Company:		Eclipse Resources Corporation
			Attn: General Counsel
			2121 Old Gatesburg Road, Suite 110
			State College, Pennsylvania 16803
		
	Employee:		At Employee’s current address as shown in Company’s records.

 20. Waiver of Notice. Any person entitled to notice hereunder may waive such notice in
writing. 
 21. Successor. This Agreement shall be binding upon Employee, Employee’s legal representatives, heirs,
legatees and distributees, and upon Company, its successors and assigns. 
 22. Headings. The titles and headings of Sections
are included for convenience of reference only and are not to be considered in construction of the provisions hereof. 
 23. Governing
Law. All questions arising with respect to the provisions of this Agreement shall be determined by application of the laws of the State of Delaware except to the extent Delaware law is preempted by federal law. The obligation of the Company
to sell and deliver Stock hereunder is subject to applicable laws and to the approval of any governmental authority required in connection with the authorization, issuance, sale, or delivery of such Stock. 

24. Execution of Receipts and Releases. Any payment of cash or any issuance or transfer of shares of Stock or other property to
Employee, or to Employee’s legal representative, heir, legatee or distributee, in accordance with the provisions hereof, shall, to the extent thereof, be in full satisfaction of all claims of such persons hereunder. Company may require Employee
or Employee’s legal representative, heir, legatee or distributee, as a condition precedent to such payment or issuance, to execute a release and receipt therefor in such form as it shall determine. 

25. Amendment. This Agreement may be amended at any time unilaterally by the Company provided that such amendment is consistent
with all applicable laws and does not reduce any rights or benefits Employee has accrued pursuant to this Agreement. This Agreement may also be amended at any time unilaterally by the Company to the extent the Company believes in good faith that
such amendment is necessary or advisable to bring this Agreement into compliance with any applicable laws, including Section 409A of the Code. 

26. The Plan. This Agreement is subject to all the terms, conditions, limitations and restrictions contained in the Plan. 

27. Agreement Respecting Securities Act of 1933. Employee represents and agrees that Employee will not sell the Stock that may
be issued to Employee pursuant to Employee’s Performance Units except pursuant to an effective registration statement under the Securities Act of 1933 (the “1933 Act”) or pursuant to an exemption from registration under
the 1933 Act (including Rule 144 promulgated under the 1933 Act). 

  
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 28. No Shareholder Rights. The Performance Units granted pursuant to this Agreement
do not and shall not entitle Employee to any rights as a shareholder of Stock until such time as Employee receives shares of Stock pursuant to this Agreement. Employee’s rights with respect to the Performance Units shall remain forfeitable at
all times prior to the date on which Employee’s rights become earned in accordance with this Agreement. 
 29. Electronic
Delivery and Acknowledgement. By Employee’s acceptance of this award, Employee is acknowledging that he or she has received and read, understands and accepts all the terms, conditions and restrictions of this Agreement and the Plan.
Company may, in its sole discretion, deliver any documents related to this award and this Agreement, or other awards that have been or may be awarded under the Plan, by electronic means, including prospectuses, proxy materials, annual reports and
other related documents, and the Company may, in its sole discretion, engage a third party to effect the delivery of these documents on its behalf and provide other administrative services related to this award and the Plan. By Employee’s
acceptance of the Award represented by this Agreement, Employee consents to receive such documents by electronic delivery and to the engagement of any such third party. 

[Signature page follows.] 

  
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 IN WITNESS WHEREOF, Company has caused this Agreement to be duly executed by an officer
thereunto duly authorized, and Employee has executed this Agreement, each effective as of the date first above written. 
  

			
	ECLIPSE RESOURCES CORPORATION:
		
	By:		  

	Name:		  

	Title:		  

	
	EMPLOYEE:
		
	 	 	 
	    [—]		

 {Signature Page to Performance Unit Award Agreement} 

 Appendix A 

Determination of Performance Units Earned 

Peer Companies: 
 [—] 
  

									
	 Rank
 Against

Peers
	  	 11 Peer

Companies—

Percentage of
Initial
Performance
Units Earned
	  	 10 Peer

Companies—

Percentage of
Initial
Performance
Units Earned
	  	 9 Peer

Companies—

Percentage of
Initial
Performance
Units Earned
	  	 8 Peer

Companies—

Percentage of
Initial
Performance
Units Earned

	 1
	  	[—]%	  	[—]%	  	[—]%	  	[—]%
	 2
	  	[—]%	  	[—]%	  	[—]%	  	[—]%
	 3
	  	[—]%	  	[—]%	  	[—]%	  	[—]%
	 4
	  	[—]%	  	[—]%	  	[—]%	  	[—]%
	 5
	  	[—]%	  	[—]%	  	[—]%	  	[—]%
	 6
	  	[—]%	  	[—]%	  	[—]%	  	[—]%
	 7
	  	[—]%	  	[—]%	  	[—]%	  	[—]%
	 8
	  	[—]%	  	[—]%	  	[—]%	  	[—]%
	 9
	  	[—]%	  	[—]%	  	[—]%	  	[—]%
	 10
	  	[—]%	  	[—]%	  	[—]%	  	N/A
	 11
	  	[—]%	  	[—]%	  	N/A	  	N/A
	 12
	  	[—]%	  	N/A	  	N/A	  	N/A

 In addition, if at the end of the Performance Period the number of companies listed above that qualify as Peer Companies is
fewer than eight (8), then the Board shall, in good faith, determine the percentage of the Performance Units earned in a manner consistent with (i) the requirements to qualify the Performance Units as performance-based compensation exempt from
the limitations imposed by Section 162(m) of the Code, to the extent the Board determines that such qualification is in the Company’s best interest, and (ii) the following general guidelines for determining the number of earned
Performance Units: 
  

	 	(a)	If the Company’s Total Shareholder Return for the Performance Period ranks first as compared to the Total Shareholder Return of qualifying Peer Companies, the number of earned Performance Units shall equal [—]% of the Initial Performance Units; 

  

	 	(b)	If the Company’s Total Shareholder Return for the Performance Period ranks in the [—]th percentile as compared to the Total Shareholder Return of the qualifying
Peer Companies, the number of earned Performance Units shall equal [—]% of the Initial Performance Units; 

{Appendix A to Performance Unit Award Agreement} 

	 	(c)	If the Company’s Total Shareholder Return for the Performance Period ranks in the [—]th percentile as compared to the Total Shareholder Return of the qualifying
Peer Companies, the number of earned Performance Units shall equal [—]% of the Initial Performance Units; 

  

	 	(d)	If the Company’s Total Shareholder Return ranks below the [—]th percentile as compared to the Total Shareholder Return of the qualifying Peer Companies, none of
the Initial Performance Units will become earned; and 

  

	 	(e)	If the Company’s Total Shareholder Return ranking falls in between the levels specified in clauses (a) through (c) above, the Board shall have the discretion to determine the percentage of the Initial
Performance Shares that become earned within the levels specified above. 

 {Appendix A to Performance Unit Award Agreement}PKD-2014.12.31-10K-EX10.6

EXHIBIT 10.6

PARKER DRILLING COMPANY
RESTRICTED STOCK UNIT INCENTIVE AGREEMENT
THIS RESTRICTED STOCK UNIT INCENTIVE AGREEMENT (this “Agreement”) is made and entered into by and between Parker Drilling Company, a Delaware corporation (the “Company”), and ___________________, an individual and employee of the Company (“Grantee”), as of the _____ day of __________, 20__ (the “Grant Date”), subject to the terms and conditions of the Parker Drilling Company 2010 Long-Term Incentive Plan, as Amended and Restated, as it may be further amended from time to time thereafter (the “Plan”).  The Plan is hereby incorporated herein in its entirety its 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 [title] of the Company, and in connection therewith, the Company desires to grant Restricted Stock Units 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 Restricted Stock Units 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 Restricted Stock Units.  Subject to the terms and conditions of this Agreement and the Plan, the Company hereby grants to Grantee [number] Restricted Stock Units (the “Units”).  Subject to Section 3 hereof, each Unit shall initially represent one share of the Company’s Common Stock (“Share”).  Each Unit represents an unsecured promise of the Company to deliver one Share to the Grantee pursuant to the terms and conditions of the Plan and this Agreement.  As a holder of Units, the Grantee has the rights of a general unsecured creditor of the Company until the 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 Units granted hereunder. Any purported Transfer of Units in breach of this Agreement shall be void and ineffective, and shall not operate to Transfer any interest or title in the purported transferee.
3.  Vesting and Settlement of Units.
(a)  Vesting Dates.  Grantee’s interest in the Units granted hereunder shall vest with respect to one-third of the Units on the first anniversary of the Grant Date and an additional one-third of the Units on each of the second and third anniversaries of the Grant Date (each anniversary, a “Vesting Date”), provided that the Grantee is still an Employee and has continuously been an 

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Employee from the Grant Date through the applicable Vesting Date, except as provided in Section 4 hereof.
(b)  Settlement of Units.  Except with respect to Units that become vested by reason of Section 4(c), within sixty (60) days after any Units become vested, the Company shall transfer to Grantee the number of Shares for the vested Units and such Units shall expire when exchanged for such Shares.  Units that become vested during a calendar year by reason of Section 4(c) shall be settled within sixty (60) days of the earlier of the close of such calendar year or termination of the Grantee’s Employment.  All Shares delivered to or on behalf of Grantee in exchange for vested 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.
(c)  Dividends and Splits.  If the Company (i) declares a stock dividend or makes a distribution on its Shares, (ii) subdivides or reclassifies outstanding Shares into a greater number of Shares, or (iii) combines or reclassifies outstanding Shares into a smaller number of Shares, then the number of Units granted under this Agreement shall be proportionately increased or reduced, as applicable, so as to prevent the enlargement or dilution of Grantee’s rights and duties hereunder.  The determination of the Committee regarding such adjustments shall be binding.
4.  Termination of Employment.  If Grantee’s Employment is voluntarily or involuntarily terminated by the Company or Grantee, then Grantee shall immediately forfeit the outstanding Units that are not already vested as of such date, except as provided below in this Section 4.  Upon the forfeiture of any Units hereunder, the Grantee shall cease to have any rights in connection with such Units as of the date of forfeiture.
(a)  Termination of Employment.  Except as provided in Section 4(c) and Section 4(e), if the Grantee’s Employment is terminated for any reason other than due to death, Disability, or Involuntary Termination Without Cause, any non-vested Units at the time of such termination shall automatically expire and terminate and no vesting shall occur after the termination of Employment date.  In such event, the Grantee will receive no payment for unvested Units.
(b)  Involuntary Termination Without Cause.  Except as provided in Section 4(e), in the event of the Grantee’s Involuntary Termination Without Cause (as defined below), all of the restrictions and any other conditions for all Units then outstanding shall be fully satisfied on a Pro Rata Basis (as defined by the Plan), and thus only that portion of the outstanding Units shall become free of all restrictions and vested, and any remaining unvested Units shall be forfeited.  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 Change in Control, except due to death, Disability, Retirement 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 Committee, in good faith, in the exercise of its discretion.  
(c)  Retirement.  Except as provided in Section 4(e), upon the Grantee’s satisfaction of the eligibility requirements for Retirement (as defined in the Plan), all of the restrictions and any other conditions for all Units then Outstanding shall be fully satisfied on a Pro Rata Basis, and thus 

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only that portion of the outstanding Units shall become free of all restrictions and vested; and any remaining outstanding Units shall continue to vest in a like manner each month until the earlier of the next Vesting Date or termination of Grantee’s Employment.  Any non-vested Units at the time of such termination shall automatically expire and terminate and no vesting shall occur after the termination of Employment date. In such event, the Grantee will receive no payment for unvested Units.
(d)  Disability or Death.  Upon termination of Grantee’s Employment as the result of Grantee’s Disability (as defined below) or death, then all of the outstanding Units shall become 100% vested and free of all restrictions on such date.  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.
(e)  Change in Control.  If there is a Change in Control of the Company (as defined in the Plan), then in the event of the Grantee’s Involuntary Termination Without Cause within two (2) years following the effective date of the Change in Control, all the outstanding Units shall automatically become 100% vested and free of all restrictions on the Grantee’s termination of Employment date.
5.  Detrimental Conduct.  In the event that the Committee 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 Committee may, in its sole and absolute discretion, if Shares have previously been transferred to the Grantee under this Agreement, 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 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 Incentive Award.  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 of fiduciary duty, embezzlement or similar conduct that results in a restatement of the Company’s financial statements.
6.  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 

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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 Committee, 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.
7.  Tax Withholding.  To the extent that the receipt 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.
8.  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.
9.  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.
10.  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 Committee in the exercise of its discretion. In the event that, due to administrative error, this Agreement does not accurately reflect the Units properly granted to the Grantee, the Committee 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 Committee (or its authorized delegate) in its discretion as exercised in good faith.
The award of Units is intended to comply with or be exempt from Section 409A of the Internal Revenue Code and any ambiguous provisions hereof shall be interpreted accordingly. Accordingly, Grantee consents to such amendment of this Agreement as the Committee 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.

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11.  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 Units. The 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 Committee or its delegate).  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.
(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. 

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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 Program or 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.
IN WITNESS WHEREOF, this Agreement is hereby approved and executed as of the date first written above.
Parker Drilling Company
By:                            
Name:                            
Title:                            

Grantee
                            
Signature

                            
Print Name

Grantee’s Address for Notices:
                            
                            
                            

 

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