Document:

exv10w1

Exhibit 10.1

POSTROCK ENERGY CORPORATION

2010 LONG-TERM INCENTIVE PLAN

2011 RESTRICTED SHARE AWARD AGREEMENT

	 	 	 	 	 

	 

	 	Date of Grant:
	 	[___________]
	 
	 	 	 	 
	 

	 	Number of Restricted Shares:
	 	[_________]
	 
	 	 	 	 
	 

	 	Period of Restriction:
	 	The period commencing on the Date of
	 

	 	 	 	Grant and ending on the Vesting Date.

          This Restricted Share Award Agreement (the “Agreement”) dated  [___________], is made by
and between PostRock Energy Corporation, a Delaware corporation (the “Company”), and [___________]
(“Participant”).

RECITALS:

          A. The Company established the 2010 Long-Term Incentive Plan (the “Plan”) under which the
Company may grant eligible employees of the Company and its Subsidiaries and non-employee directors
of the Company certain equity-based awards.

          B. Participant is an eligible employee of the Company or one of its Subsidiaries or a
non-employee director of the Company and the Committee has elected to grant to Participant
Restricted Shares under the Plan pursuant to and in accordance with this Agreement.

AGREEMENT:

          In consideration of the mutual premises and covenants contained herein and other good and
valuable consideration paid by Participant to the Company, the Company and Participant agree as
follows:

          Section 1. Incorporation of Plan. 

          All provisions of this Agreement and the rights of Participant hereunder are subject in all
respects to the provisions of the Plan and the powers of the Plan Committee therein provided.
Capitalized terms used in this Agreement but not defined herein shall have the meaning set forth in
the Plan.

          Section 2. Grant of Restricted Shares. 

          Subject to the conditions and restrictions set forth in this Agreement and in the Plan, the
Company hereby grants to Participant that number of Restricted Shares identified above opposite the
heading “Number of Restricted Shares.”

1

 

          Section 3. Vesting; Restrictions; No Assignment of Rights. 

          Subject to any exceptions set forth in this Agreement or in the Plan, the Restricted Shares
shall fully vest on [the first anniversary of the Grant
Date] [___________] (the “Vesting
Date”), provided Participant is an employee of the Company or one of its Subsidiaries or a
non-employee director of the Company from the Grant Date through the Vesting Date. Any attempt to
assign, alienate, pledge, attach, sell, or otherwise transfer or encumber the Restricted Shares or
the rights relating thereto prior to the Vesting Date shall be null and void. On the Vesting Date,
all restrictions on transfer shall lapse and the designated Restricted Shares, if not previously
forfeited pursuant to Section 4 below, will become freely transferable under this Agreement and the
Plan, subject only to such further limitations on transfer, if any, as may exist under applicable
law or any other agreement binding upon Participant.

          Section 4. Forfeiture Prior to Vesting; Change in Control.

          (a) General Rule. If Participant has a Termination of Affiliation with the Company or
any of its Subsidiaries for any reason (including due to death or Disability) before the Vesting
Date, then, except as provided in Section 4(b) below, all of Participant’s unvested Restricted
Shares under this Agreement shall immediately be forfeited as of such termination date, and the
full ownership of such Restricted Shares and rights will revert to the Company. Upon such
forfeiture, Participant shall have no further rights under this Agreement. For purposes of this
Agreement, transfer of employment between the Company and any of its Subsidiaries does not
constitute a Termination of Affiliation. Section 5.4(b) of the Plan shall not apply; all unvested
Restricted Shares granted under this Agreement will immediately be forfeited upon Participant’s
Termination of Affiliation due to death or Disability.

          (b) Change in Control. Notwithstanding Sections 3 and 4(a) above to the contrary, if
Participant is an employee of the Company or one of its Subsidiaries or a non-employee director of
the Company as of the date of a Change in Control (“Change in Control Date”), then as of the Change
in Control Date all unvested Restricted Shares shall immediately vest; all restrictions on transfer
shall lapse and such Restricted Shares will become fully transferable under this Agreement and the
Plan, subject only to such further limitations on transfer, if any, as may exist under applicable
law or any other agreement binding upon Participant.

          For purposes of this Agreement, a “Change in Control” shall be consistent with regulations
issued under Section 409A of the Code and the Treasury regulations issued thereunder and shall mean
the occurrence of a “Change in the Ownership of the Company,” a “Change in Effective Control of the
Company,” or a “Change in the Ownership of a Substantial Portion of the Company’s Assets.” A
“Change in the Ownership of the Company” means the acquisition by any one person, or more than one
person acting as a group, of the outstanding and issued Shares that, together with Shares held by
such person or group, constitutes more than 50 percent of the total voting power of the Shares
(however, if any one person, or more than one person acting as a group, is considered to own more
than 50 percent of the total voting power of the Shares, the acquisition of additional Shares by
the same person or group shall not constitute a Change in the Ownership of the Company). A “Change
in Effective Control of the Company” shall occur if either (i) any one person, or more than one
person acting as a group, acquires (or

2

 

has acquired during the 12 month period ending on the date of the most recent acquisition by
such person or persons) ownership of Shares possessing 35 percent or more of the total voting power
of the Shares (however, if a person, or more than one person acting as a group owns 35 percent of
the total fair market value or total voting power of the Shares, the acquisition of additional
Shares by such person or group shall not constitute a Change in Effective Control of the Company);
or (ii) a majority of members of the Company’s board of directors is replaced during any 12 month
period by directors whose appointment or election is not endorsed by a majority of the members of
the Company’s board of directors prior to the date of the appointment or election. A “Change in
the Ownership of a Substantial Portion of the Company’s Assets” occurs when any one person, or more
than one person acting as a group, acquires (or has acquired during the 12 month period ending on
the date of the most recent acquisition by such person or persons) assets from the Company that
have a total gross fair market value (“gross fair market value” means the value of the assets of
the Company, or the value of the assets being disposed of, determined without regard to any
liabilities associated with such assets) equal to or more than 40 percent of the total gross fair
market value of all of the assets of the Company immediately prior to such acquisition or
acquisitions. For purposes of this Agreement, the term “acting as a group” shall have the same
meaning as defined in Section 409A of the Code and the Treasury regulations issued thereunder.
Notwithstanding the foregoing, in no event shall any acquisition of Shares or other securities of
the Company by White Deer Energy L.P. or any of its affiliates, whether occurring before or after
the date of this Agreement, constitute a Change in Control.

          Section 5. Certificates. 

          The Restricted Shares shall be issued in the name of Participant as of the Date of Grant. The
certificates representing the Restricted Shares shall bear a legend similar to the following:

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE RESTRICTED SECURITIES AND SUBJECT TO
CERTAIN CONDITIONS UNDER THE POSTROCK ENERGY CORPORATION 2010 LONG-TERM INCENTIVE
PLAN AND THE APPLICABLE RESTRICTED SHARES AWARD AGREEMENT PURSUANT TO WHICH THE
SHARES WERE ISSUED. THESE SHARES ARE SUBJECT TO A RISK OF FORFEITURE AND CANNOT BE
ASSIGNED, ALIENATED, PLEDGED, ATTACHED, SOLD OR OTHERWISE TRANSFERRED OR ENCUMBERED
EXCEPT IN ACCORDANCE WITH THE TERMS OF SUCH PLAN AND AGREEMENT, COPIES OF WHICH ARE
AVAILABLE FOR INSPECTION AT THE PRINCIPAL OFFICE OF POSTROCK ENERGY CORPORATION.

          Section 6. Dividends and Voting Rights. 

          Participant is entitled to (a) receive all dividends, whether payable in cash or stock, or
other distributions, declared on or with respect to any Restricted Shares as of a record date that
occurs during the Period of Restriction (and before any forfeiture of the Restricted Shares),
payable at the same time as such dividends or distributions are made to the Company’s shareholders,
and (b) exercise all voting rights with respect to the Restricted Shares, if the record

3

 

date for the exercise of such voting rights occurs during the Period of Restriction (and
before any forfeiture of the Restricted Shares).

          Section 7. Designation of Beneficiary. 

          Participant may designate a person or persons to receive, in the event of Participant’s death,
any Shares resulting from the vesting of the Restricted Shares or other property then or thereafter
distributable relating to such Shares. Such designation may be made either in the space indicated
at the end of this Agreement or in a written instrument delivered to the Company or its delegate
and may be revoked only by a written instrument similarly delivered. If Participant fails
effectively to designate a beneficiary, the legal representative of the estate of Participant will
be deemed to be the beneficiary of Participant with respect to any such Shares or other property.

          Section 8. Tax Withholding. 

          To the extent that the grant or vesting of any of the Restricted Shares granted hereunder may
obligate the Company to pay withholding taxes on behalf of Participant, the Company shall have the
power to withhold, or require Participant to remit to the Company, an amount sufficient to satisfy
any such federal, state, local or foreign withholding tax requirements.

          Section 9. No Right to Continued Employment. 

          If the Participant is an employee of the Company or one of its Subsidiaries, nothing in this
Agreement shall interfere with or limit in any way the right of the Company or its Subsidiaries to
terminate Participant’s employment at any time, nor confer upon Participant the right to continue
in the employ of the Company or one of its Subsidiaries.

          Section 10. Entire Agreement; Amendment. 

          This Agreement constitutes the entire agreement of the parties with regard to the subject
matter hereof, and contains all the covenants, promises, representations, warranties and agreements
between the parties with respect to the Restricted Shares granted hereby. All prior understandings
and agreements, if any, among the parties hereto relating to the subject matter hereof are hereby
null and void and of no further force and effect. This Agreement may be amended only by a writing
executed by the parties hereto which specifically states that it is an amendment of this Agreement.

          Section 11. Governing Law. 

          This Agreement will be governed by and construed in accordance with the laws of the State of
Delaware, excluding its conflict of laws provisions.

          Section 12. Section 409A.

          The rights to, and distribution of, the Shares granted hereunder are exempt from the
requirements of Section 409A of the Code as restricted property, and this Agreement shall be
interpreted and administered in a manner consistent with that intent.

4

 

          Section 13. Notice of Section 83(b) Election. 

          If Participant desires to make an election under Section 83(b) of the Code relating to the
award of the Restricted Shares, Participant shall notify the Company or its delegate in writing of
such election within 30 days of the Date of Grant. Participant shall be solely responsible for
making such a Section 83(b) election and satisfying all notice and filing requirements under the
Code.

          This Agreement has been executed and delivered by the parties hereto effective the day and
year first above written.

	 	 	 	 	 	 	 

	 	 	POSTROCK ENERGY CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

David C. Lawler
	 	 
	 

	 	 	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	PARTICIPANT	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	[_________________]	 	 
	 
	 	 	 	 	 	 
	Designation of Beneficiary
	 	 	 	 	 	 
	 
(Relationship to Participant)
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

(Name of Beneficiary)
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

(Street Address)
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

(City, State, Zip Code)
	 	 

5exv10w2

Exhibit 10.2

POSTROCK ENERGY CORPORATION

2011 MANAGEMENT INCENTIVE PROGRAM

I. GENERAL

     PostRock Energy Corporation, a Delaware corporation (the “Company” or “PostRock”), adopted the
PostRock Energy Corporation 2010 Long-Term Incentive Plan (the “Plan”) in part to allow eligible
employees of PostRock and its Subsidiaries and Non-Employee Directors of PostRock to strengthen
their commitment to the success of PostRock, to stimulate their efforts on PostRock’s behalf and to
assist PostRock and its Subsidiaries in attracting new employees and Non-Employee Directors and
retaining existing employees and Non-Employee Directors. The Plan is also intended to optimize the
profitability and growth of PostRock through incentives which are consistent with PostRock’s goals,
to provide incentives for excellence in individual performance, and to promote teamwork.

     The Plan Committee has adopted this 2011 Management Incentive Program (this
“MIP”) under the Plan, designated a group of employees who may be eligible to receive Bonuses (as
defined below) under this MIP, and established the applicable performance goals relating to such
Bonuses.

     Unless otherwise defined herein, capitalized terms that are used herein shall have the
meanings assigned to such terms in the Plan. All provisions of this MIP and the rights of the
Grantees are subject in all respects to the provisions of the Plan and this MIP, and the powers of
the Plan Committee therein provided.

II. DEFINITIONS

	 	A.	 	“Base Salary” equals the base annual salary of the Grantee for the Fiscal
Year for which the Bonus is calculated as established by the Plan Committee within the
first 90 days of each Fiscal Year and set forth on Schedule 1. Subsequent increases
in base salary during a performance period will not be taken into account when
determining the final Bonus payment, if any, under this MIP.
	 
	 	B.	 	“Bonus” means the award which may be earned by an Employee pursuant to the
terms of this MIP.
	 
	 	C.	 	“Chief Executive Officer” means the Chief Executive Officer of the Company.
	 
	 	D.	 	“Covered Employee” means a “covered employee” as that term is defined under
Section 162(m).
	 
	 	E.	 	“Employee” means an employee of the Company or a Subsidiary thereof.

1

 

	 	F.	 	“Fiscal Year” means the Company’s Fiscal Year beginning January 1 and ending
December 31.
	 
	 	G.	 	“Percentage of the Performance Goal Achieved” shall be determined by the Plan
Committee with respect to each Performance Goal based on the Company’s performance
during 2011, as calculated in accordance with Section VI and Schedule 1 hereto
(collectively for all Performance Goals, the “Percentages of the Performance Goals
Achieved”).
	 
	 	H.	 	“Performance Goals” for each Fiscal Year are the financial and operational
goal(s) established by the Plan Committee as applied to Grantees in the position
levels outlined in Schedule 1 hereto. Applicable Performance Goals are set forth on
Schedule 1 hereto and are based on or related to one or more of those Performance
Goals set forth in Section 10.2 of the Plan.
	 
	 	I.	 	“Section 162(m)” means Section 162(m) of the Code and the accompanying
regulations and guidance issued by the Internal Revenue Service.

	III.	 	EMPLOYEES COVERED BY THIS MIP
	 
	 	 	Those Employees listed on Schedule 1 hereto approved by the Plan Committee, and those
Employees who are subsequently recommended by the Chief Executive Officer and approved by
the Plan Committee to participate in this MIP, shall be eligible to participate in this MIP
as Grantees.
	 
	IV.	 	BONUSES
	 
	 	 	A Grantee in this MIP may be entitled to a Bonus as determined in accordance with the terms
set forth herein.
	 
	V.	 	BONUS COMPOSITION
	 
	 	 	The composition of the Bonuses for each Fiscal Year eligible to be paid under this MIP will
be determined and approved by the Plan Committee and may be in the form of any Award under
the Plan, whether equity-based or cash. As reflected on Schedule 1, a Participant’s total
eligible Bonus shall be 50% formula-based and 50% discretionary-based.
	 
	VI.	 	COMPUTATION AND DISBURSEMENT OF FUNDS

	 	A.	 	A Grantee in this MIP may be entitled to a Bonus computed as set forth on
Schedule 1 hereto based on the Percentage of the Performance Goal Achieved for each
applicable Performance Goal. A Grantee who was (i) approved for participation during
the course of a Fiscal Year, (ii) in a MIP eligible position for at least 90 days
during such Fiscal Year, and (iii) employed through the last day of such Fiscal Year
may be entitled to a

2

 

	 	 	 	formula-based Bonus, if any, computed as described in the preceding sentence and
pro-rated based on the number of days during the Fiscal Year the Grantee performed
services for the Company or a Subsidiary thereof divided by 365 and a
discretionary-based Bonus, if any, as determined by the Plan Committee.
	 
	 	B.	 	With respect to the formula-based Bonus, as reflected on Schedule 1:

	 	(i)	 	a Level 1 or Level 1a Participant shall be eligible for a
formula-based Bonus related to a particular Performance Goal only if the
Percentage of the Performance Goal Achieved for such Performance Goal equals
or exceeds the 25% or 50% target levels, as discrete milestones or allocation
gates (determined on a Performance Goal by Performance Goal basis); and
	 
	 	(ii)	 	a Level 2 or Level 3 Participant shall be eligible for a
formula-based Bonus related to a particular Performance Goal only if the
Percentage of the Performance Goal Achieved for such Performance Goal equals
or exceeds the 100% target level, as a discrete milestone or allocation gate
(determined on a Performance Goal by Performance Goal basis); provided
further, that if the Percentage of the Performance Goal Achieved for a
particular Performance Goal is between the 100% and 150% milestones, the
percentage for such Bonus shall be determined on a linear pro-rata basis.

	 	 	 	The formula-based Bonus, if any, can represent 50% of a Participant’s total
eligible Bonus.
	 
	 	C.	 	With respect to the discretionary-based Bonus, the Plan Committee will
conduct an end-of-year assessment of the overall Company performance and/or
Participant performance to evaluate and determine discretionary-based Bonuses, if any,
to be awarded. The discretionary-based Bonus, if any, can represent 50% of a
Participant’s total eligible Bonus.
	 
	 	D.	 	Except as otherwise provided herein, no Bonus may be paid to a Grantee unless
the Grantee is employed by the Company or a Subsidiary thereof on the payment date for
such Bonus.
	 
	 	E.	 	As soon as practicable after the close of the Fiscal Year, but no later than
30 days after the Company’s receipt of the annual audit for the Fiscal Year, the Chief
Financial Officer of the Company shall initially calculate the Percentages of the
Performance Goals Achieved and the proposed payout for the formula-based Bonus under
this MIP based upon his calculation of such percentages achieved. The proposed payout
based on determinations of each of the Percentages of the Performance Goals Achieved
shall be presented to the Chief Executive Officer and, subject to

3

 

	 	 	 	the Chief Executive Officer’s recommendation and his discretionary ability to
adjust downward (but not upward) the amount of or totally eliminate any Bonuses,
presented for consideration by the Plan Committee. After review of such proposed
information, and prior to payment of any Bonuses, the Plan Committee shall (i)
certify in writing its determination of the Percentages of the Performance Goals
Achieved, and (ii) the amount of the formula-based Bonus, subject to any downward
adjustment applied by the Committee. The Committee, in its sole discretion, may
also determine to award a discretionary-based Bonus based on an assessment of a
Company’s and/or Participant’s performance. Thereafter, the Committee will certify
the amount of Bonuses (both the formula-based and discretionary-based) to be paid
to each Participant and the amount of payouts of the Bonuses (the “final
determination”).
	 
	 	F.	 	If a Bonus is approved by the Plan Committee, payment of the Bonus shall be
made as soon as practicable after the Company’s receipt of the annual audit and the
final determination, but in all events prior to the end of the Fiscal Year immediately
following the close of the Fiscal Year for which the payout relates. Accordingly,
Bonuses for the 2011 Fiscal Year shall be paid during the 2012 Fiscal Year.
	 
	 	G.	 	Subject to approval by the Plan Committee, in its discretion, if before
payment of any Bonus, a Grantee (i) dies, (ii) becomes Disabled, (iii) enters military
service, (iv) takes an approved leave of absence, (v) is appointed or elected to
public office, or (vi) is terminated due to position elimination, then based on the
Percentage of Performance Goals Achieved, the Grantee may be entitled to a payment of:

	 	(a)	 	the full amount of the formula-based Bonus, if such event
occurs after the end of the Fiscal Year to which such Bonus relates; or
	 
	 	(b)	 	a partial amount of the formula-based Bonus based on the
number of days during the Fiscal Year the Grantee performed services for the
Company or a Subsidiary thereof divided by 365, if such event occurred before
the end of the Fiscal Year for which such Bonus relates; provided, however,
that the Grantee must have been an active Employee for a minimum of 90
consecutive calendar days during such Fiscal Year; and
	 
	 	(c)	 	a discretionary-based Bonus, if any.

	 	 	 	The foregoing notwithstanding, any payment of any Bonuses under this Subsection G
shall be made in accordance with the general payment provisions in this Section VI
(that is, during the Fiscal Year immediately following the Fiscal Year for which
the payout relates).

4

 

	 	H.	 	Any payment made under this MIP will be made to the Grantee. In the event of
a Grantee’s death, any Bonus payable will be paid as provided in the Plan.
	 
	 	I.	 	All Bonuses shall be reduced by amounts required to be withheld for any and
all federal, state or local income or employment taxes at the time payments are made.

VII. CHANGES TO BONUSES

	 	A.	 	Except as provided in Subsection B immediately following with respect to
Covered Employees, the Plan Committee may, at any time prior to the final
determination, change the Performance Goals, targets, and payout ranges used for
calculation of the formula-based Bonuses. The Chief Executive Officer shall implement
such changes(s) for immediate incorporation into this MIP.
	 
	 	B.	 	Bonuses that are made to any Covered Employee that are intended to satisfy
the performance-based compensation exception under Section 162(m) (“162(m) Awards”)
may not be adjusted upward except if, in the judgment of the Plan Committee, such
change(s) is/are desirable in the interests of equitable treatment of the Grantees and
the Company as a result of (i) extraordinary or non-recurring events, (ii) changes in
applicable accounting rules or principles, (iii) changes in the Company’s methods of
accounting, (iv) changes in applicable law, or (v) changes due to consolidation,
acquisitions, or reorganization, provided such adjustments are allowable under Section
162(m). The foregoing and Section VI hereof notwithstanding, the Plan Committee has
the power to adjust any 162(m) Awards downward in its discretion.
	 
	 	C.	 	Any discretionary-based Bonuses awarded by the Committee are not intended to
and will not satisfy the performance-based compensation exception under Section
162(m).

	VIII.	 	FORFEITURE OF BONUS
	 
	 	 	Except as provided in Section VI hereof, no Grantee who ceases to be an Employee before the
payment date of a Bonus shall be entitled to any Bonus under this MIP for such Fiscal Year
unless the Chief Executive Officer, with the approval of the Plan Committee, determines
otherwise.
	 
	IX.	 	NO EMPLOYMENT CONTRACT; FUTURE PLANS
	 
	 	 	Participation in this MIP shall not confer upon any Grantee any right to continue in the
employ of the Company or any Subsidiary thereof, nor interfere in any way with the right of
the Company or any Subsidiary thereof to terminate any Grantee’s employment at any time.
The Company is under no obligation to continue this MIP in future Fiscal Years.

5

 

	X.	 	AMENDMENT OR TERMINATION
	 
	 	 	The Plan Committee may amend or terminate this MIP at any time. No Bonus is granted
hereunder until such time of the final determination by the Plan Committee under Section VI
hereof. Accordingly the Plan Committee may, at any time prior to its final determination,
terminate this MIP without having any obligation to make any full or partial payments to
any Grantee.
	 
	XI.	 	GENERAL PROVISIONS

	 	A.	 	No right under this MIP or the Plan shall be assignable, either voluntarily
or involuntarily, by way of encumbrance, pledge, attachment, levy or charge of any
nature (except as may be required by state or federal law).
	 
	 	B.	 	Nothing in this MIP or the Plan shall require the Company to segregate or set
aside any funds or other property for the purpose of paying any portion of a Bonus.
No Grantee, beneficiary or other person shall have any right, title or interest in any
amount awarded under this MIP or the Plan before the payment date for the Bonus, or in
any property of the Company or a Subsidiary thereof.

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}]]