Document:

Exhibit 10.2

 

PERFORMANCE SHARE AGREEMENT

 

THIS PERFORMANCE SHARE AGREEMENT (this “Agreement”), is entered into as of the Grant Date (as defined below), by and between Grantee (as defined below) and Bonanza Creek Energy, Inc., a Delaware corporation (the “Company”).

 

WHEREAS, the Company maintains the Bonanza Creek Energy, Inc. 2011 Long Term Incentive Plan (the “Plan”), which is incorporated into and forms a part of this Agreement, and Grantee has been selected by the board of directors of the Company (the “Board”) or the compensation committee of the Board (the “Committee”) to receive performance shares (the “Award”) under the Plan and as set forth in this Agreement;

 

NOW, THEREFORE, IT IS AGREED, by and between the Company and Grantee, as follows:

 

1.                         Definitions.  The following terms used in this Agreement shall have the meanings set forth in this paragraph 1:

 

a)             “Cause” shall have the meaning set forth in any applicable agreement between the Company and Grantee regarding Grantee’s Service with the Company and, if “Cause” is not so defined, shall mean any of the following: (i) Grantee has failed or refused to substantially perform Grantee’s duties, responsibilities, or authorities (other than any such refusal or failure resulting from Grantee’s becoming Disabled); (ii) any commission by or indictment of Grantee of a felony or other crime of moral turpitude; (iii) Grantee has engaged in material misconduct in the course and scope of Grantee’s Service with the Company, including, but not limited to, gross incompetence, disloyalty, disorderly conduct, insubordination, harassment of other employees or third parties, chronic abuse of alcohol or unprescribed controlled substances, improper disclosure of confidential information, chronic and unexcused absenteeism, improper appropriation of a corporate opportunity or any other material violation of the Company’s personnel policies, rules or codes of conduct or any fiduciary duty owed to the Company or its Affiliates, or any applicable law or regulation to which the Company or its Affiliates are subject; (iv) Grantee has committed any act of fraud, embezzlement, theft, dishonesty, misrepresentation or falsification of records; or (v) Grantee has engaged in any act or omission that is likely to materially damage the Company’s business, including, without limitation, damages to the Company’s reputation.

 

b)             “Date of Termination” means the date on which Grantee’s Service with the Company or an Affiliate terminates for any reason, provided, that a Date of Termination shall not be deemed to occur by reason of a Grantee’s transfer of Service between the Company and an Affiliate; further provided that a Grantee’s Service shall not be considered terminated while Grantee is on a leave of absence from the Company or an Affiliate approved by the Company or such Affiliate.

 

c)              “Designated Beneficiary” means the beneficiary or beneficiaries designated by Grantee in a writing filed with the Company in the form attached hereto as Exhibit A .

 

d)             “Disabled” as it relates to Grantee shall have the meaning of “Disabled” or such similar term set forth in any applicable agreement between the Company and Grantee regarding Grantee’s Service with the Company and, if “Disabled” or such similar term

 

 

is not so defined, shall mean when (i) Grantee receives disability benefits under either social security or the Company’s long-term disability plan, if any, or (ii) the Company, upon the written report of a qualified physician designated by the Company’s insurers, shall have determined (after a complete physical examination of Grantee at any time after Grantee has been absent from the Company for 90 or more consecutive calendar days) that Grantee has become physically and/or mentally incapable of performing Grantee’s essential job functions with or without reasonable accommodation as required by law due to injury, illness, or other incapacity (physical or mental).

 

e)              “Good Reason” shall have the meaning set forth in any applicable agreement between the Company and Grantee regarding Grantee’s Service with the Company and, if “Good Reason” is not so defined, shall exist in the event any of the following actions are taken without Grantee’s consent: (i) Grantee’s authority with the Company is, or Grantee’s duties or responsibilities based on Grantee’s position with the Company or any employment agreement or arrangement between Grantee and the Company are, materially diminished relative to Grantee’s authority, duties and responsibilities as in effect immediately prior to such change; provided, however, that in no event shall removal of Grantee from the position of manager, director or officer of any direct or indirect Affiliate of the Company in connection with any corporate restructuring constitute Good Reason; (ii) a material diminution in Grantee’s base salary or retainer compensation as in effect immediately prior to such diminution; provided, that, an across-the-board reduction in the base compensation and benefits of all Service Providers of the Company by the same percentage amount (or under the same terms and conditions) as part of a general base compensation reduction and/or benefit reduction shall not constitute such a qualifying material diminution; (iii) a material relocation of Grantee’s primary work location more than 75 miles away from the then-current primary work location; or (iv) any material breach by the Company of any provision of this Agreement or any employment agreement or arrangement between Grantee and the Company.

 

f)               “Grantee” means the employee of the Company specified in the grant notice issued by the Company on or about the Grant Date (the “Grant Notice”).

 

g)              “Grant Date” means the date on which this Award was granted, as set forth in the Grant Notice.

 

h)             “Performance Shares” means performance-based Stock Units (as defined in the Plan) granted under this Agreement and subject to the terms of this Agreement and the Plan.  The target number of “Performance Shares” (the “Target “) granted under this Agreement is the number specified in the Grant Notice, with the actual number of Performance Shares earned to be 0% - 200% of the Target, based on Grantee’s continued provision of Services to the Company and the level of attainment of the performance goals set forth in Exhibit B.

 

Capitalized terms used herein without definition have the meanings ascribed to such terms in the Plan.  Except where the context clearly implies or indicates the contrary, a word, term, or phrase used in the Plan is similarly used in this Agreement.

 

2.                         Award.  Grantee is hereby granted a Performance Share award covering the Target number of Performance Shares set forth in the Grant Notice, with the Grantee being able to earn between

 

 

0% and 200% of such Target amount based on the terms and conditions of this Agreement.

 

3.                         Performance Goals.  Except as set forth in Section 4 below, the Performance Shares shall be earned solely in accordance with the attainment of certain performance goals, as set forth in Exhibit B.

 

4.                         Termination of Services.  Except as may otherwise be provided below, Grantee shall forfeit the right to earn any Performance Shares that have not been earned in accordance with Section 3 and Exhibit B as of a Date of Termination.  Notwithstanding the foregoing,

 

a)             In the event Grantee would be entitled to severance under the Bonanza Creek Energy, Inc. Executive Change in Control Severance Plan (the “CIC Severance Plan”) as a result of the circumstances giving rise to the Date of Termination, then Grantee shall retain the right to earn any as of yet unearned Performance Shares in accordance with Section 3 upon satisfaction of the performance goals set forth in Exhibit B; and

 

b)             In the event that Grantee’s Date of Termination occurs within the eighteen (18) month period following a Change in Control on account of (i) Grantee’s termination of Service by the Company without Cause or (ii) Grantee’s resignation from the Company for Good Reason, then Grantee shall be deemed to have earned the maximum number of Performance Shares potentially issuable hereunder in respect of any Measuring Periods set forth in Exhibit B that were outstanding on the Date of Termination.

 

5.                         Payment.  Payment in respect of earned Performance Shares shall be made by the Company following the Committee’s review and certification of the attainment of the performance goals set forth in Exhibit B , or following the Grantee’s Date of Termination pursuant to Section 4(b), as applicable, but in all events as soon as administratively practicable during the calendar year next following the calendar year in which the last day of the Performance Cycle set forth in Exhibit B occurs.  The Company shall settle earned Performance Shares by issuing the Grantee a number of shares of Stock equal to the number of Performance Shares earned.

 

6.                         Withholding.  The issuance of Stock and the payment of any cash under this Agreement are subject to withholding of all applicable taxes.  At the election of Grantee, and subject to such rules and limitations as may be established by the Board from time to time, such withholding obligations may be satisfied through the surrender of shares of Stock (a) which Grantee already owns, or (b) to which Grantee is otherwise entitled under the Plan; provided, however, that shares described in this clause (b) may be used to satisfy not more than the Company’s minimum statutory withholding obligation (based on minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to such taxable income).

 

7.                         No Stockholder Rights. Grantee shall have no voting, dividend, or other stockholder rights in respect of the Performance Shares granted hereunder.  Upon the issuance of shares of Stock as payment under this Agreement, Grantee shall have all of the rights of a stockholder with respect to such shares of Stock as of the date Grantee becomes the record owner of such shares.

 

8.                         Dividend Equivalent Right.  Grantee shall be entitled to a Dividend Equivalent Right entitling Grantee, with respect to each Performance Share actually earned under this Agreement, to receive a cash payment based on the regular cash dividends that would have been paid on an equivalent

 

 

number of shares of Stock during the period between the Grant Date of the Performance Shares and the date the Performance Shares are paid pursuant to Section 5.  All amounts payable as a result of such Dividend Equivalent Right shall be accumulated and paid to Grantee in cash on the date that payment is made in respect of the related Performance Shares in accordance with Section 5, above.

 

9.                         Heirs and Successors.  This Agreement shall be binding upon, and inure to the benefit of, the Company and its successors and assigns, and upon any person acquiring, whether by merger, consolidation, purchase of assets or otherwise, all or substantially all of the Company’s assets and business.  If any rights of Grantee or benefits distributable to Grantee under this Agreement have not been exercised or distributed, respectively, at the time of Grantee’s death, such rights shall be exercisable by the Designated Beneficiary, and such benefits shall be distributed to the Designated Beneficiary, in accordance with the provisions of this Agreement and the Plan.  If a deceased Grantee fails to designate a beneficiary, or if the Designated Beneficiary does not survive Grantee, any rights that would have been exercisable by Grantee and any benefits distributable to Grantee shall be exercised by or distributed to the legal representative of the estate of Grantee.  If a deceased Grantee designates a beneficiary and the Designated Beneficiary survives Grantee but dies before the Designated Beneficiary’s exercise of all rights under this Agreement or before the complete distribution of benefits to the Designated Beneficiary under this Agreement, then any rights that would have been exercisable by the Designated Beneficiary shall be exercised by the legal representative of the estate of the Designated Beneficiary, and any benefits distributable to the Designated Beneficiary shall be distributed to the legal representative of the estate of the Designated Beneficiary.

 

10.                  Administration.  The authority to manage and control the operation and administration of this Agreement shall be vested in the Board or the Committee, and the Board or the Committee shall have all powers with respect to this Agreement as it has with respect to the Plan.  Any interpretation of the Agreement by the Board or the Committee and any decision made by it with respect to the Agreement is final and binding on all persons.

 

11.                  Plan Governs.  Notwithstanding anything in this Agreement to the contrary, the terms of this Agreement shall be subject to the terms of the Plan, a copy of which may be obtained by Grantee from the office of the Secretary of the Company; and this Agreement is subject to all interpretations, amendments, rules and regulations promulgated by the Board or the Committee from time to time pursuant to the Plan.

 

12.                  Fractional Shares.  In lieu of issuing a fraction of a share of Stock resulting from an adjustment of the Award pursuant to Section 17.4 of the Plan or otherwise, the Company will be entitled to pay to Grantee an amount equal to the fair market value of such fractional share.

 

13.                  Not An Employment Contract.  The Award will not confer on Grantee any right with respect to continuance of employment or other service with the Company or any Subsidiary, nor will it interfere in any way with any right the Company or any Subsidiary would otherwise have to terminate or modify the terms of such Grantee’s Service at any time.

 

14.                  Notices.  Any written notices provided for in this Agreement or the Plan shall be in writing and shall be deemed sufficiently given if either hand delivered or if sent by fax or overnight courier, or by postage paid first class mail.  Notices sent by mail shall be deemed received three business days after mailing but in no event later than the date of actual receipt.  Notices shall be directed, if to Grantee, at Grantee’s address indicated by the Company’s records, or if to the Company, at the Company’s principal executive office.

 

 

15.                  Amendment.  This Agreement may be amended in accordance with the provisions of the Plan, and may otherwise be amended by written agreement of Grantee and the Company without the consent of any other person.

 

16.                  409A Savings Clause.  All amounts payable hereunder are intended to comply with the requirements of Code Section 409A, and this Agreement shall be interpreted accordingly.

 

- - - - -Exhibit 10.1

 

Datalink Corporation

2011 Incentive Compensation Plan

 

Deferred Stock Unit Master Agreement

(2014 Awards)

 

This is a Deferred Stock Unit Master Agreement (the “Agreement”), effective as of                             , 2014, between Datalink Corporation, a Minnesota corporation (the “Company”), and you,                                                 .  Any capitalized term used but not defined in this Agreement shall have the meaning set forth in the Plan as it currently exists or as it is amended in the future.

 

Background

 

A.  The Company maintains the Datalink Corporation 2011 Incentive Compensation Plan (the “Plan”).  Under the Plan, the Board has the authority to determine Awards and administer the Plan with respect to Awards involving Non-Employee Directors.

 

B.  The Board has determined that for fiscal year 2014, Non-Employee Directors will be entitled to elect to receive (i) quarterly awards of Deferred Stock Units (“DSUs”), each of which represents the right to receive one share of the Company’s common stock, in lieu of some or all of the quarterly installments of the annual cash retainer that the director would otherwise be entitled to receive during the year, and/or (ii) the equity component of his or her 2014 annual retainer in the form of DSUs rather than in shares of Restricted Stock.

 

C.  You have elected to receive in the form of DSUs           % of each quarterly installment of the the annual cash retainer for non-employee directors to which you would otherwise be entitled for service as a Datalink director during 2014.  The number of DSUs that will be subject to each of these quarterly DSU Awards (each a “Quarterly DSU Award”) will be determined by dividing the amount of the cash retainer you would otherwise have received as of the end of each quarter by the Fair Market Value of a share of the Company’s common stock as of the last day of such quarter, which shall be the Grant Date of such Quarterly DSU Award.

 

D.  You have also elected to receive an award of 6,000 DSUs (the “Equity DSU Award” and, together with the Quarterly DSU Awards, the “2014 DSU Awards”) in lieu of the award of 6,000 shares of Restricted Stock to which you would otherwise have been entitled as the equity component of your 2014 annual retainer.

 

E.  Each 2014 DSU Award will be evidenced by a Grant Notification in the form attached hereto as Exhibit A, and each such Grant Notification when issued by the Company will be incorporated into and made a part of this Agreement.  The terms and conditions of each 2014 DSU Award are set forth in this Agreement, including the applicable Grant Notification, and in the attached Plan document.

 

Terms and Conditions of 2014 DSU Awards

 

1.             Grant.  Subject to Sections 7 and 8 below, (i) as of the last day of each calendar quarter during 2014, you will be granted a Quarterly DSU Award involving the number of DSUs specified in the applicable Grant Notification; and (ii) as of the date of the Company’s 2014 annual meeting of shareholders, you will be granted an Equity DSU Award if your service as a Company director will

 

 

continue after such annual meeting.  Each DSU will represent the right to receive one Share of the Company’s common stock.  The DSUs granted to you will be credited to an account in your name maintained by the Company, with subaccounts for the DSUs subject to the Quarterly DSU Awards and to the Equity DSU Award.  This account shall be unfunded and maintained for book-keeping purposes only, with the DSUs simply representing an unfunded and unsecured obligation of the Company.

 

2.             Restrictions on DSUs.  Prior to settlement of the DSUs in accordance with Section 5, the DSUs subject to this Agreement may not be sold, assigned, transferred, exchanged or encumbered other than by will or the laws of descent and distribution.  Any attempted transfer in violation of this Section 2 shall be of no effect.

 

3.             No Stockholder Rights.  The DSUs subject to this Agreement do not entitle you to any rights of a stockholder of the Company’s common stock.  You will not have any of the rights of a stockholder of the Company in connection with the grant of DSUs subject to this Agreement unless and until Shares are issued to you upon settlement of the DSUs as provided in Section 5.

 

4.             Vesting of DSUs.  The DSUs subject to Quarterly DSU Awards are 100% vested as of their respective Grant Dates.  The Equity DSU Award will vest and become non-forfeitable as to 1,500 of the DSUs subject to the Award on each of June 30, 2014, September 30, 2014, December 31, 2014 and March 31, 2015 so long as your Service to the Company as a director has not previously ended.

 

5.             Settlement of DSUs.  The Company shall cause to be issued and delivered to you, or to your designated beneficiary or estate in the event of your death, one Share in payment and settlement of each vested DSU subject to this Agreement as soon as administratively practicable (but no more than 60 days) following a termination of your Service that constitutes a “separation from service” as such term is defined for purposes of Code Section 409A.  Delivery of Shares in settlement of a 2014 DSU Award shall be effected by an appropriate entry in the stock register maintained by the Company’s transfer agent with a notice of issuance provided to you, or by the electronic delivery of the Shares to a brokerage account you designate, and shall be subject to compliance with all applicable legal requirements, including compliance with the requirements of applicable federal and state securities laws.

 

6.             Dividend Equivalents.  If a cash dividend is declared and paid by the Company with respect to its common stock, you will be credited as of the applicable dividend payment date with an additional number of DSUs (the “Dividend DSUs”) equal to (i) the total cash dividend you would have received if your then outstanding DSUs (including any previously credited Dividend DSUs) had been actual Shares, divided by (ii) the Fair Market Value of a Share as of the applicable dividend payment date (with the quotient rounded down to the nearest whole number).  Dividend DSUs will be credited to the Quarterly DSU Award and Equity DSU Award subaccounts as applicable.

 

7.             Termination of Service and Future Awards.  Upon termination of your Service with the Company as a director, you will immediately forfeit all unvested DSUs subject to the Equity DSU Award and you will no longer be entitled to receive any additional Quarterly DSU Awards pursuant to this Agreement.

 

8.             Change in Control.  Upon a Change in Control within the meaning of Section 2(f)(3) of the Plan, you will no longer be entitled to receive any additional Quarterly DSU Awards pursuant to this Agreement.

 

2

 

9.             Changes in Capitalization.  If an “equity restructuring” (as defined in Section 14(a) of the Plan) occurs that causes the per share value of the Shares to change, the Board shall make such equitable adjustments to any DSU subject to this Agreement as are contemplated by Section 14(a) of the Plan in order to avoid dilution or enlargement of your rights hereunder.  The Board may make such equitable adjustments to any DSU subject to this Agreement as and to the extent provided in Section 14(a) of the Plan in connection with other changes in the Company’s capitalization contemplated by Section 14(a) of the Plan.

 

10.          Interpretation of This Agreement.  All decisions and interpretations made by the Board with regard to any question arising hereunder or under the Plan shall be binding and conclusive upon you and the Company.  If there is any inconsistency between the provisions of this Agreement and the Plan, the provisions of the Plan shall govern.

 

11.          Discontinuance of Service.  Neither this Agreement nor any 2014 DSU Award shall confer on you any right with respect to continued Service with the Company or any of its Affiliates, nor interfere in any way with the right of the Company or any Affiliate to terminate such Service.

 

12.          DSU Awards Subject to Plan.  The 2014 DSU Awards are granted pursuant to the Plan, the terms of which are hereby made a part of this Agreement.  This Agreement (including any Grant Notifications issued hereunder) shall in all respects be interpreted in accordance with the terms of the Plan.  If any terms of this Agreement or any Grant Notification issued hereunder conflict with the terms of the Plan, the terms of the Plan shall control, except as the Plan specifically provides otherwise.  This Agreement (including any Grant Notifications issued hereunder) and the Plan constitute the entire agreement of the parties with respect to the 2014 DSU Awards and supersede all prior oral or written negotiations, commitments, representations and agreements with respect thereto.

 

13.          Obligation to Reserve Sufficient Shares.  The Company shall at all times during the term of this Agreement and the 2014 DSU Awards issued hereunder reserve and keep available a sufficient number of Shares to satisfy this Agreement.

 

14.          Binding Effect.  This Agreement shall be binding in all respects on your heirs, representatives, successors and assigns, and on the successors and assigns of the Company.

 

15.          Choice of Law.  This Agreement is entered into under the laws of the State of Delaware and shall be construed and interpreted thereunder (without regard to its conflict of law principles).

 

You and the Company have executed this Agreement as of the date specified at the beginning of this Agreement.

 

	
PARTICIPANT
    	
DATALINK   CORPORATION  
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By
    	
 
    
	
 
    	
 
    	
Its
    	
 
    
					

 

3

 

Exhibit A

 

Datalink Corporation

2011 Incentive Compensation Plan

Deferred Stock Unit Master Agreement

 

Grant Notification

 

Datalink Corporation (the “Company”), pursuant to its 2011 Incentive Compensation Plan (the “Plan”) and a Deferred Stock Unit Master Agreement (2014 Awards) dated                           , 2014 (the “Master Agreement”) between the Company and you, the Participant named below, hereby grants to you an award of Deferred Stock Units (“DSUs”), each such DSU representing the right to receive one share of the Company’s common stock.  The terms and conditions of this 2014 DSU Award are set forth in this Grant Notification, the Master Agreement, and the Plan document, and these documents set forth the entire agreement between you and the Company regarding the grant to you of the number of DSUs shown in the table below.

 

	
Name   of Participant:
    	
 
    	
 
    
	
Number   of Units:
    	
 
    	
Grant   Date:
    
	
Vesting   Schedule:
    	
 
    	
 
    

 

	
Vesting Date
    	
 
    	
Percentage of Units That Vest
    	
 
    
	
[For Quarterly DSU   Awards:]
    	
 
    	
 
    	
 
    
	
Grant Date
    	
 
    	
100
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
[For an Equity DSU Award:]
    	
 
    	
 
    	
 
    
	
June 30, 2014
    	
 
    	
25
    	
%
    
	
September 30, 2014
    	
 
    	
25
    	
%
    
	
December 31, 2014
    	
 
    	
25
    	
%
    
	
March 31, 2015
    	
 
    	
25
    	
%
    

 

 

	
 
    	
DATALINK   CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Its

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