Document:

Exhibit 10.2

 

EXECUTIVE
SEVERANCE

 

&

 

CHANGE
IN CONTROL AGREEMENT

 

THIS
EXECUTIVE SEVERANCE AND CHANGE IN CONTROL AGREEMENT (the “Agreement”) is made by and between Ritter Pharmaceuticals,
Inc. (the “Company”) and John Beck (“Executive”) as of May 24, 2018.

 

In
consideration of the mutual promises, covenants and obligations contained herein, the Company and Executive agree as follows:

 

1. At-Will
Employment. The Company and Executive acknowledge that Executive’s employment is and
shall continue to be at-will, as defined under applicable law. If Executive’s employment terminates for any reason, Executive
shall not be entitled to any payments, benefits, damages, awards or compensation other than as provided by this Agreement, or
as may otherwise be available in accordance with the Company’s established employee plans and practices in accordance with
other agreements between the Company and Executive.

 

2. Definitions.
For purposes of this Agreement, the following terms have the following meanings:

 

(a) “Accrued
Obligations” means (i) Executive’s earned but unpaid Base Salary through the Termination Date; (ii) payment of
any annual, long-term, or other incentive award which relates to a completed fiscal year or performance period, as applicable,
and is payable (but not yet paid) on or before the Termination Date; (iii) a lump-sum payment in respect of accrued but unused
vacation days at Executive’s per-business-day Base Salary rate in effect as of the Termination Date; and (iv) any unpaid
expense or other reimbursements due pursuant to Company expense reimbursement policy.

 

(b) “Affiliate(s)”
means, with respect to any specified Person (as such term is used in Section 13(d) of the Securities Exchange Act of 1934, as
amended), any other Person that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is
under common control with, such specified Person.

 

(c) “Annual
Bonus” means Executive’s target annual bonus for the year in which the Change in Control occurs.

 

(d) “Base
Salary” means Executive’s base rate of pay as of a specified date.

 

(e) “Cause”
means a finding by the Company that Executive has (i) been convicted of a felony or crime involving moral turpitude; (ii) disclosed
trade secrets or confidential information of the Company (or any Parent or Subsidiary) to persons not entitled to receive such
information; (iii) engaged in conduct in connection with Executive’s employment or service to the Company (or any Parent
or Subsidiary), that has, or could reasonably be expected to result in, material injury to the business or reputation of the Company
(or any Parent or Subsidiary), including, without limitation, act(s) of fraud, embezzlement, misappropriation and breach of fiduciary
duty; (iv) violated the operating and ethics policies of the Company (or any Parent or Subsidiary) in any material way, including,
but not limited to those relating to sexual harassment and the disclosure or misuse of confidential information; (v) engaged in
willful and continued negligence in the performance of the duties assigned to Executive by the Company, after Executive has received
notice of and failed to cure such negligence; or (vi) breached any material provision of any agreement between Executive and the
Company (or any Parent or Subsidiary), including, without limitation, any confidentiality agreement.

 

    	 

    	 

    

 

(f) “Change
in Control” means the occurrence of any of the following events any time after the six (6) month anniversary of the
date on which Executive’s employment with the Company commences:

 

	 	(i)	Any
    “person” (as such term is used in sections 13(d) and 14(d) of the Exchange Act) becomes a “beneficial owner”
    (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more
    than 50% of the voting power of the then outstanding securities of the Company; provided that a Change of Control shall not
    be deemed to occur as a result of a change of ownership resulting from the death of a shareholder, and a Change of Control
    shall not be deemed to occur as a result of a transaction in which the Company becomes a subsidiary of another corporation
    and in which the shareholders of the Company, immediately prior to the transaction, will beneficially own, immediately after
    the transaction, shares entitling such shareholders to more than 50% of all votes to which all shareholders of the parent
    corporation would be entitled in the election of directors (without consideration of the rights of any class of stock to elect
    directors by a separate class vote) 
	 	 	 
	 	(ii)	A
    change in the effective control of the Company which occurs on the date that a majority of members of the Board is replaced
    during any twelve (12) month period by Directors whose appointment or election is not endorsed by a majority of the members
    of the Board prior to the date of the appointment or election; or 
	 	 	 
	 	(iii)	The
    consummation of (A) a merger or consolidation of the Company with another corporation where the shareholders of the Company,
    immediately prior to the merger or consolidation, will not beneficially own, immediately after the merger or consolidation,
    shares entitling such shareholders to more than 50% of all votes to which all shareholders of the surviving corporation would
    be entitled in the election of directors (without consideration of the rights of any class of stock to elect directors by
    a separate class vote); (B) a sale or other disposition of all or substantially all of the assets of the Company; or (C) a
    liquidation or dissolution of the Company.

 

    	- 2 -

    	 

    

 

(g) “Disability”
means total and permanent disability as defined in Section 22(e)(3) of the Code or in the Company’s long-term disability
plan. A termination of Executive’s employment due to a Disability shall be effective only if the party terminating Executive’s
employment first gives at least 15 days’ written notice of such termination to the other party.

 

(h) “Good
Reason” means, without Executive’s express written consent, the occurrence of any one or more of the following:
(i) a substantial and material diminution in Executive’s duties or responsibilities; (ii) a material reduction in Executive’s
Base Salary; or (iii) the relocation of Executive’s principal place of employment to a location that is more than 50 miles
from the prior location. A termination of employment by Executive for Good Reason shall be effectuated by giving the Company written
notice (“Notice of Termination for Good Reason”), not later than 90 days following the occurrence of the circumstance
that constitutes Good Reason, setting forth in reasonable detail the specific conduct of the Company that constitutes Good Reason
and the specific provision(s) of this Agreement on which Executive relied. The Company shall be entitled, during the 30-day period
following receipt of a Notice of Termination for Good Reason, to cure the circumstances that gave rise to Good Reason, provided
that the Company shall be entitled to waive its right to cure or reduce the cure period by delivery of written notice to that
effect to Executive (such 30-day or shorter period, the “Cure Period”). If, during the Cure Period, such circumstance
is remedied, Executive will not be permitted to terminate employment for Good Reason as a result of such circumstance. If, at
the end of the Cure Period, the circumstance that constitutes Good Reason has not been remedied, Executive shall terminate employment
for Good Reason on the date of expiration of the Cure Period.

 

(i) “Termination
Date” means the date on which Executive’s employment hereunder terminates.

 

3. Termination
Without Cause or by Executive With Good Reason. Subject to Section 6 below, if, after the
six (6) month anniversary of the date on which Executive’s employment with the Company commences, the Company terminates
Executive’s employment without Cause, or the Executive terminates for Good Reason, Executive shall be entitled to: (a) the
Accrued Obligations; (b) an amount equal to six (6) months of the Base Salary as in effect immediately prior to the Termination
Date, paid in a lump sum on the sixtieth (60th) day following the Termination Date; and (c) medical, dental benefits
provided by the Company to Executive and Executive’s spouse and dependents (in each case, as provided in any applicable
plan) at least equal to the levels of benefits provided to other similarly situated active employees of the Company and its subsidiaries
until the earlier of (i) the six (6) month anniversary of the Termination Date or (ii) the date that Executive becomes covered
under a subsequent employer’s medical and dental plans.

 

4. Change
in Control Termination. Subject to Section 6 below, in the event that within the one (1)
month prior to or the twelve (12) months following a Change in Control the Company terminates Executive’s employment without
Cause, or the Executive terminates for Good Reason, then, in lieu of the payments and benefits otherwise due to Executive under
Section 3 above, Executive shall be entitled to: (a) the Accrued Obligations; (b) an amount equal to the sum of six (6) months
of the Base Salary as in effect on the Termination Date or the date of the Change in Control, whichever is greater; (c) medical,
dental benefits provided by the Company to Executive and Executive’s spouse and dependents (in each case, as provided in
any applicable plan) at least equal to the levels of benefits provided to other similarly situated active employees of the Company
and its subsidiaries until the earlier of (i) the six (6) month anniversary of the Termination Date or (ii) the date that Executive
becomes covered under a subsequent employer’s medical and dental plans; and (d) acceleration of vesting of all equity and
equity-based awards.

 

    	- 3 -

    	 

    

 

5. Other
Terminations. If Executive’s employment hereunder is terminated (a) by Executive without
Good Reason; (b) by the Company for Cause; or (c) due to Executive’s death or Executive’s Disability, Executive and/or
Executive’s estate or beneficiaries shall be entitled to the Accrued Obligations. 

 

6. Release.
Executive’s entitlement to the payments (other than the Accrued Obligations) and benefits described in Sections 3 and 4
above is expressly contingent upon Executive providing the Company with a signed release satisfactory to the Company (the “Release”).
To be effective, such Release must be delivered by Executive to the Company no later than 45 days following the Termination Date
and must not be revoked during the seven (7) days following such delivery. If such Release is not executed in a timely manner
or is revoked, all such payments and benefits shall immediately cease and the Executive shall be required to repay to the Company
any such payments that have already been paid to the Executive.

 

7. Withholding.
The Company shall withhold all applicable federal, state and local taxes, social security and workers’ compensation contributions
and other amounts as may be required by law with respect to compensation payable to Executive. 

 

8. Modification
of Payments. In the event it shall be determined that any payment, right or distribution
by the Company or any other person or entity to or for the benefit of Executive pursuant to the terms of this Agreement or otherwise,
in connection with, or arising out of, his employment with the Company or a change in ownership or effective control of the Company
or a substantial portion of its assets (a “Payment”) is a “parachute payment” within the meaning
of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) on account of the aggregate value
of the Payments due to Executive being equal to or greater than three times the “base amount,” as defined in Section
280G(b)(3) of the Code, (the “Parachute Threshold”) so that Executive would be subject to the excise tax imposed
by Section 4999 of the Code (the “Excise Tax”) and the net after-tax benefit that Executive would receive by
reducing the Payments to the Parachute Threshold is greater than the net after-tax benefit Executive would receive if the full
amount of the Payments were paid to Executive, then the Payments payable to Executive shall be reduced (but not below zero) so
that the Payments due to Executive do not exceed the amount of the Parachute Threshold, reducing first any Payments under Section
4(d) above. 

 

9. Section
409A. (a) Notwithstanding anything herein to the contrary, this Agreement is intended to
be interpreted and applied so that the payment of the benefits set forth herein either shall either be exempt from the requirements
of Section 409A of the Code (“Section 409A”) or shall comply with the requirements of such provision. 

 

    	- 4 -

    	 

    

 

(b) Notwithstanding
any provision of this Agreement to the contrary, if Executive is a “specified employee” within the meaning of Section
409A, any payments or arrangements due upon a termination of Executive’s employment under any arrangement that constitutes
a “nonqualified deferral of compensation” within the meaning of Section 409A and which do not otherwise qualify under
the exemptions under Treas. Regs. Section 1.409A-1 (including without limitation, the short-term deferral exemption or the permitted
payments under Treas. Regs. Section 1.409A-1(b)(9)(iii)(A)), shall be delayed and paid or provided, without interest, on the earlier
of (i) the date which is six months after Executive’s “separation from service” (as such term is defined in
Section 409A and the regulations and other published guidance thereunder) for any reason other than death, and (ii) the date of
Executive’s death.

 

(c) After
any Termination Date, Executive shall have no duties or responsibilities that are inconsistent with having a “separation
from service” within the meaning of Section 409A and, notwithstanding anything in the Agreement to the contrary, distributions
upon termination of employment of nonqualified deferred compensation may only be made upon a “separation from service”
as determined under Section 409A and such date shall be the Termination Date for purposes of this Agreement. Each payment under
this Agreement or otherwise shall be treated as a separate payment for purposes of Section 409A. In no event may Executive, directly
or indirectly, designate the calendar year of any payment to be made under this Agreement which constitutes a “nonqualified
deferral of compensation” within the meaning of Section 409A and to the extent an amount is payable within a time period,
the time during which such amount is paid shall be in the discretion of the Company.

 

10. Merger
Clause. Effective as of the Effective Date, this Agreement contains the complete, full,
and exclusive understanding of Executive and the Company as to its subject matter and shall, on such date, and supersede any prior
agreement between Executive and the Company regarding severance benefits. Any amendments to this Agreement shall be effective
and binding on Executive and the Company only if any such amendments are in writing and signed by both Parties. 

 

11. Assignment.
(a) This Agreement is personal to Executive and, without the prior written consent of the Company, shall not be assigned by Executive
otherwise than by will or the laws of descent and distribution, and any assignment in violation of this Agreement shall be void.

 

(b) This
Agreement and all rights of Executive hereunder shall inure to the benefit of, and be enforceable by, Executive’s personal
or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If Executive should
die while any amounts would still be payable to him or her hereunder if he or she had continued to live, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this Agreement to Executive’s devisee, legatee
or other designee or, should there be no such designee, to Executive’s estate.

 

(c) The
Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially
all of the business or assets of the Company (a “Successor”) to assume and agree to perform this Agreement
in the same manner and to the same extent that the Company would have been required to perform it if no such succession had taken
place. As used in this Agreement, (i) the term “Company” shall mean the Company as hereinbefore defined and
any Successor and any permitted assignee to which this Agreement is assigned and (ii) the term “Board” shall
mean the Board as hereinbefore defined and the board of directors or equivalent governing body of any Successor and any permitted
assignee to which this Agreement is assigned.

 

    	- 5 -

    	 

    

 

12. Dispute
Resolution. The parties agree that any dispute arising out of or relating to this Agreement
or the formation, breach, termination or validity thereof, will be settled by binding arbitration by a panel of three arbitrators
in accordance with the commercial arbitration rules of the American Arbitration Association. The arbitration proceedings will
be located in Los Angeles County, California. The arbitrators are not empowered to award damages in excess of compensatory damages
and each party irrevocably waives any damages in excess of compensatory damages. Judgment upon any arbitration award may be entered
into any court having jurisdiction thereof and the parties consent to the jurisdiction of any court of competent jurisdiction
located in the State of California.

 

13. GOVERNING
LAW. THIS AGREEMENT SHALL BE DEEMED TO BE MADE IN THE STATE OF CALIFORNIA, AND THE VALIDITY, INTERPRETATION, CONSTRUCTION
AND PERFORMANCE OF THIS AGREEMENT IN ALL RESPECT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF CALIFORNIA WITHOUT REGARD TO ITS
PRINCIPLES OF CONFLICTS OF LAW.

 

14. Amendment;
No Waiver. No provision of this Agreement may be amended, modified, waived or discharged
except by a written document signed by Executive and duly authorized officer of the Company. The failure of a party to insist
upon strict adherence to any term of this Agreement on any occasion shall not be considered as a waiver of such party’s
rights or deprive such party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.
No failure or delay by any party in exercising any right or power hereunder will operate as a waiver thereof, nor will any single
or partial exercise of any other right or power. No agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made by any party, which are not set forth expressly in this Agreement.

 

15. Severability.
If any term or provision of this Agreement is invalid, illegal or incapable of being enforced by any applicable law or public
policy, all other conditions and provisions of this Agreement shall nonetheless remain in full force and effect so long as the
economic and legal substance of the transactions contemplated by this Agreement is not affected in any manner materially adverse
to any party. Upon any such determination that any term or other provision is invalid, illegal or incapable of being enforced,
the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as
closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally
contemplated to the fullest extent possible.

 

16. Survival.
The rights and obligations of the parties under the provisions of this Agreement that relate to post-termination obligations shall
survive and remain binding and enforceable, notwithstanding the expiration of the term of this Agreement, the termination of Executive’s
employment with the Company for any reason or any settlement of the financial rights and obligations arising from Executive’s
employment hereunder, to the extent necessary to preserve the intended benefits of such provisions.

 

    	- 6 -

    	 

    

 

17. Notices.
All notices and other communications required or permitted by this Agreement will be made in writing and all such notices and
communications will be deemed to have been duly given when delivered or (unless otherwise specified) mailed by United States certified
or registered mail, return receipt requested, postage prepaid, addressed to the Company at its headquarters, and addressed to
Executive at his last address on file with the Company, or to such other address as any party may have furnished to the other
in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

 

18. Headings
and References. The headings of this Agreement are inserted for convenience only and neither
constitute a part of this Agreement nor affect in any way the meaning or interpretation of this Agreement. When a reference in
this Agreement is made to a Section, such reference shall be to a Section of this Agreement unless otherwise indicated.

 

19. Counterparts.
This Agreement may be executed in one or more counterparts (including via facsimile), each of which shall be deemed to be an original,
but all of which together shall constitute one and the same instrument.

 

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IN
WITNESS WHEREOF, this Agreement has been executed by the parties as of the date first written above.

 

	 	RITTER
    PHARMACEUTICALS, INC.
	 	 	 
	 	By:
	/s/
    Andrew J. Ritter
	 	Name:	Andrew
    J. Ritter
	 	Title:	President
	 	 	                                            
	 	Executive
	 	 
	 	 	/s/ John Beck
	 	 	John
    Beck

 

    	- 8 -Exhibit 4.7

 

CACTUS, INC.

LONG TERM INCENTIVE PLAN

 

FORM OF RESTRICTED STOCK UNIT AGREEMENT

 

	
Grant   Date:
    	
 
    	
(the   “Grant Date”)
    
	
 
    	
 
    	
 
    
	
Name   of Grantee:
    	
 
    	
(the   “Grantee”   or “you”)
    
	
 
    	
 
    	
 
    
	
Number   of Restricted Stock Units:
    	
 
    	
(the   “Restricted Stock Units” or “RSUs”)
    

 

This Restricted Stock Unit Agreement (“Agreement”) is made and entered into as of the Grant Date by and between Cactus, Inc., a Delaware corporation (the “Company”), and you.

 

WHEREAS, the Company adopted the Cactus, Inc., Long Term Incentive Plan (as amended from time to time, the “Plan”), under which the Company is authorized to grant equity-based awards to certain employees and service providers of the Company;

 

WHEREAS, the Company, in order to induce you to enter into and to continue and dedicate service to the Company and to materially contribute to the success of the Company, agrees to grant you this award of Restricted Stock Units;

 

WHEREAS, you acknowledge that a copy of the Plan has been furnished to you and shall be deemed a part of this Agreement as if fully set forth herein and the terms capitalized but not defined herein shall have the meanings set forth in the Plan; and

 

WHEREAS, you desire to accept the award of Restricted Stock Units granted pursuant to this Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants set forth herein and for other valuable consideration hereinafter set forth, the parties agree as follows:

 

1.             The Grant.  Subject to the conditions set forth below, the Company hereby grants you, effective as of the Grant Date, as a matter of separate inducement and not in lieu of any salary or other compensation for your services for the Company, an award (the “Award”) of Restricted Stock Units, whereby each Restricted Stock Unit represents the right to receive one share of common stock, par value $0.01 per share (“Stock”), consisting of the number of Restricted Stock Units set forth above in accordance with the terms and conditions set forth herein and in the Plan.

 

2.             No Shareholder Rights.  The Restricted Stock Units granted pursuant to this Agreement do not and shall not entitle you to any rights of a holder of Stock prior to the date shares of Stock are issued to you in settlement of the Award.  Your rights with respect to the Restricted Stock Units shall remain forfeitable at all times prior to the date on which rights become vested and the restrictions with respect to the Restricted Stock Units lapse in accordance with Section 5.

 

 

3.             Dividend Equivalents.  In the event that the Company declares and pays a dividend in respect of its outstanding shares of Stock and, on the record date for such dividend, you hold Restricted Stock Units granted pursuant to this Agreement that have not been settled, the Company shall credit to an account maintained by the Company for your benefit an amount equal to the cash dividends you would have received if you were the holder of record, as of such record date, of the number of shares of Stock related to the portion of the Restricted Stock Units that have not been settled or forfeited as of such record date. Such account is intended to constitute an “unfunded” account, and neither this Section 3 nor any action taken pursuant to or in accordance with this Section 3 shall be construed to create a trust of any kind. Amounts credited to such account with respect to Restricted Stock Units that vest in accordance with Section 5 or 6 will become vested dividend equivalents and will be paid to you in cash as soon as administratively practicable following the vesting date but no later than the last day of the calendar year that includes the vesting date specified in Section 5 or 6. You shall not be entitled to receive any interest with respect to the timing of payment of dividend equivalents. In the event all or any portion of the Restricted Stock Units granted hereby fail to become vested under Section 5 or 6, the unvested dividend equivalents accumulated in your account with respect to such Restricted Stock Units shall be forfeited to the Company.

 

4.             Restrictions; Forfeiture.  The Restricted Stock Units are restricted in that they may not be sold, transferred or otherwise alienated or hypothecated until these restrictions are removed or expire as described in Section 5 or 6 of this Agreement. The Restricted Stock Units are also restricted in the sense that they may be forfeited to the Company (the “Forfeiture Restrictions”).

 

5.             Expiration of Restrictions and Risk of Forfeiture.  The restrictions on the Restricted Stock Units described in Section 4 of this Agreement will expire and shares of Stock that are nonforfeitable and transferable will be issued to you in payment of your vested Restricted Stock Units as set forth in Section 8, provided that, subject to Section 6, you remain a service provider to the Company or its Affiliates until the one year anniversary of the Grant Date.

 

6.             Termination of Services and Change in Control.

 

(a)           Termination due to Death, Disability or Normal Retirement.  If your service relationship with the Company or its Affiliates is terminated due to death, Disability (defined below) or your Normal Retirement (defined below), all restrictions will lapse with respect to 100% of the Restricted Stock Units upon your death or separation from service due to Disability or a Normal Retirement.  For purposes of this Agreement, you will be deemed to have incurred a “Disability” if, for physical or mental reasons, you are unable to perform the essential functions of your duties to the Company or its Affiliates for three (3) consecutive months, or three (3) months during any twelve (12)-month period.  For purposes of this Agreement, your “Normal Retirement” shall be defined as your separation from service (without Cause, defined below) on or following the age of 65.

 

(b)           Involuntary Termination. If your service relationship with the Company or its Affiliates is terminated by the Company or an applicable Affiliate without Cause (defined below), all restrictions will lapse with respect to 100% of the Restricted Shares upon the applicable separation from service. For purposes of this Agreement, you will be deemed to have incurred a separation from service for “Cause” upon a determination by a majority of the disinterested Board

 

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members that you have engaged in any of the following: (i) malfeasance in office; (ii) gross misconduct or neglect; (iii) false or fraudulent misrepresentation inducing your appointment; (iv) willful conversion of corporate funds; or (v) repeated failure to participate in Board meetings on a regular basis despite having received proper notice of the meetings in advance.

 

(c)           Termination Generally.  If your service relationship with the Company or its Affiliates is terminated for any reason other than as set forth in Section 6(a) or (b) above, then those Restricted Stock Units for which the restrictions have not lapsed as of the date of termination shall become null and void and those Restricted Stock Units shall be forfeited to the Company. The Restricted Stock Units for which the restrictions have lapsed as of the date of such termination, including Restricted Stock Units for which the restrictions lapsed in connection with such termination, shall not be forfeited to the Company and shall be settled as set forth in Section 8.

 

(d)           Change in Control. Notwithstanding the vesting schedule set forth in Section 5 above, upon the occurrence of a Change in Control, 100% of the Restricted Stock Units for which the restrictions have not yet lapsed as of the date of the Change in Control shall become immediately vested.

 

7.             Leave of Absence.  With respect to the Award, the Company may, in its sole discretion, determine that if you are on leave of absence for any reason you will be considered to still be providing services for the Company, provided that rights to the Restricted Stock Units during a leave of absence will be limited to the extent to which those rights were earned or vested when the leave of absence began.

 

8.             Issuance of Stock.  No shares of Stock shall be issued to you prior to the date on which the Restricted Stock Units vest and the restrictions, including the Forfeiture Restrictions, with respect to the Restricted Stock Units lapse, in accordance with Section 5 or 6.  After the Restricted Stock Units vest pursuant to Section 5 or 6 the Company shall, promptly and within 60 days of such vesting date, cause to be issued Stock registered in your name in payment of such vested Restricted Stock Units.  The Company shall evidence the Stock to be issued in payment of such vested Restricted Stock Units in the manner it deems appropriate.  The value of any fractional Restricted Stock Units shall be rounded down at the time Stock is issued to you in connection with the Restricted Stock Units.  No fractional shares of Stock, nor the cash value of any fractional shares of Stock, will be issuable or payable to you pursuant to this Agreement.  The value of such shares of Stock shall not bear any interest owing to the passage of time.  Neither this Section 8 nor any action taken pursuant to or in accordance with this Section 8 shall be construed to create a trust or a funded or secured obligation of any kind.

 

9.             Payment of Taxes.  Due to your status as an independent contractor, you will be responsible for the payment of any taxes imposed upon the grant, vesting or settlement of the Restricted Stock Units, or the issuance of shares of Stock, pursuant to this Agreement.

 

10.          Compliance with Securities Law.  Notwithstanding any provision of this Agreement to the contrary, the issuance of Stock will be subject to compliance with all applicable requirements of federal, state, or foreign law with respect to such securities and with the requirements of any stock exchange or market system upon which the Stock may then be listed. No Stock will be issued hereunder if such issuance would constitute a violation of any applicable

 

3

 

federal, state, or foreign securities laws or other law or regulations or the requirements of any stock exchange or market system upon which the Stock may then be listed. In addition, Stock will not be issued hereunder unless (a) a registration statement under the Securities Act of 1933, as amended (the “Act”), is at the time of issuance in effect with respect to the shares issued or (b) in the opinion of legal counsel to the Company, the shares issued may be issued in accordance with the terms of an applicable exemption from the registration requirements of the Act. YOU ARE CAUTIONED THAT ISSUANCE OF STOCK UPON THE VESTING OF RESTRICTED STOCK UNITS GRANTED PURSUANT TO THIS AGREEMENT MAY NOT OCCUR UNLESS THE FOREGOING CONDITIONS ARE SATISFIED.  The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance and sale of any shares subject to the Award will relieve the Company of any liability in respect of the failure to issue such shares as to which such requisite authority has not been obtained. As a condition to any issuance hereunder, the Company may require you to satisfy any qualifications that may be necessary or appropriate to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect to such compliance as may be requested by the Company. From time to time, the Board and appropriate officers of the Company are authorized to take the actions necessary and appropriate to file required documents with governmental authorities, stock exchanges, and other appropriate Persons to make shares of Stock available for issuance.

 

11.          Right of the Company and Affiliates to Terminate Services.  Nothing in this Agreement confers upon you the right to continue performing services for the Company or any of its Affiliates, or interfere in any way with the rights of the Company or any of its Affiliates to terminate your service relationship at any time.

 

12.          Remedies.  The parties to this Agreement shall be entitled to recover from each other reasonable attorneys’ fees incurred in connection with the successful enforcement of the terms and provisions of this Agreement whether by an action to enforce specific performance or for damages for its breach or otherwise.

 

13.          No Liability for Good Faith Determinations.  The Company and the applicable members of the Board shall not be liable for any act, omission or determination taken or made in good faith with respect to this Agreement or the Restricted Stock Units granted hereunder.

 

14.          Execution of Receipts and Releases.  Any payment of cash or any issuance or transfer of shares of Stock or other property to you, or to your 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. The Company may require you or your 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.

 

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

 

16.          Notice.  All notices required or permitted under this Agreement must be in writing and personally delivered or sent by mail and shall be deemed to be delivered on the date on which

 

4

 

it is actually received by the person to whom it is properly addressed or if earlier the date it is sent via certified United States mail.

 

17.          Waiver of Notice.  Any person entitled to notice hereunder may waive such notice in writing.

 

18.          Information Confidential.  As partial consideration for the granting of the Award hereunder, you hereby agree to keep confidential all information and knowledge, except that which has been disclosed in any public filings required by law, that you have relating to the terms and conditions of this Agreement; provided, however, that such information may be disclosed as required by law and may be given in confidence to your spouse and tax and financial advisors. In the event any breach of this promise comes to the attention of the Company, it shall take into consideration that breach in determining whether to recommend the grant of any future similar award to you, as a factor weighing against the advisability of granting any such future award to you.

 

19.          Successors.  This Agreement shall be binding upon you, your legal representatives, heirs, legatees and distributees, and upon the Company, its successors and assigns.

 

20.          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.

 

21.          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.

 

22.          Governing Law.  All questions arising with respect to the provisions of this Agreement shall be determined by application of the laws of Delaware without giving any effect to any conflict of law provisions thereof, except to the extent Delaware state 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.

 

23.          Clawback.  To the extent required by applicable law or any applicable securities exchange listing standards, or as otherwise determined by the Board (or a committee thereof), all shares of Stock granted under this Agreement shall be subject to the provisions of any applicable clawback policies or procedures adopted by the Company, which clawback policies or procedures may provide for forfeiture and/or recoupment of such shares of Stock. Notwithstanding any provision of this Agreement to the contrary, the Company reserves the right, without your consent, to adopt any such clawback policies and procedures, including such policies and procedures applicable to this Agreement with retroactive effect.

 

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

 

25.          Counterparts. This Agreement may be executed in one or more counterparts, each of which shall constitute an original and all of which together shall constitute one instrument.

 

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Delivery of an executed counterpart of this Agreement by facsimile or portable document format (.pdf) attachment to electronic mail shall be effective as delivery of a manually executed counterpart of this Agreement.

 

26.          Consent to Electronic Delivery; Electronic Signature. In lieu of receiving documents in paper format, you agree, to the fullest extent permitted by law, to accept electronic delivery of any documents that the Company may be required to deliver (including, but not limited to, prospectuses, prospectus supplements, grant or award notifications and agreements, account statements, annual and quarterly reports and all other forms of communications) in connection with this and any other award made or offered by the Company. Electronic delivery may be via a Company electronic mail system or by reference to a location on a Company intranet to which you have access. You hereby consent to any and all procedures the Company has established or may establish for an electronic signature system for delivery and acceptance of any such documents that the Company may be required to deliver, and agrees that his or her electronic signature is the same as, and shall have the same force and effect as, his or her manual signature.

 

27.          Amendment. The Committee may, in its sole discretion, amend this Agreement from time to time in any manner that is not inconsistent with the Plan; provided, however, that except as otherwise provided in the Plan or this Agreement, any such amendment that materially reduces your rights shall be effective only if it is in writing and signed by both you and an authorized officer of the Company.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its officer thereunto duly authorized, and the Grantee has set his hand as to the date and year first above written.

 

	
 
    	
 
    
	
 
    	
CACTUS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name: [NAME]
    
	
 
    	
Title: [TITLE]
    
	
 
    	
 
    
	
 
    	
[GRANTEE NAME]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
GRANTEE
    

 

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