Document:

Exhibit

Exhibit 10.1

RESTRICTED STOCK UNIT AWARD AGREEMENT
The Ultimate Software Group, Inc.

This RESTRICTED STOCK UNIT AWARD AGREEMENT (this “Agreement”) made as of this _____ day of _______________, 20___, between The Ultimate Software Group, Inc., a Delaware corporation (the “Company”), and ____________________ (the “Participant”), is made pursuant to the terms of The Ultimate Software Group, Inc. Amended and Restated 2005 Equity and Incentive Plan (the “Plan”).
Section 1.     Definitions.  Capitalized terms used herein but not defined shall have the meanings set forth in the Plan.
Section 2.     Stock Unit Award.  The Company has granted to the Participant a Stock Unit Award representing a number of Stock Units of the Company (“Restricted Stock Units”), identified in a written communication (an “Award Notice”) delivered to the Participant by or on behalf of the Company, pursuant to the terms and conditions set forth in this Agreement and subject to the terms and conditions set forth in the Plan, a copy of which the Participant acknowledges having received.  Each Restricted Stock Unit represents rights in respect of one share of the Company’s Common Stock.  Additional Award Notices shall be delivered to the Participant in the event that the Company grants to the Participant additional Stock Unit Awards in the future.  All such Award Notices shall indicate the number of Restricted Stock Units granted and the applicable Date of Grant.  Unless the Committee should determine otherwise, any Awards of Restricted Stock Units granted on or after the date of this Agreement shall be subject to the terms and conditions provided in this Agreement and the Plan.
Section 3.     Vesting Requirements.
(a)Vesting of Award.  Subject to Section 3(c) hereof, the Restricted Stock Units shall vest in three equal annual installments of 33-1/3% of the number of Restricted Stock Units on each of the first three anniversaries of the Date of Grant thereof, subject to the Participant’s continued employment with the Company or any of its Subsidiaries on each such vesting date, and shall be payable in accordance with Section 5 hereof; provided, however, that if any such anniversary is not a date on which the Company’s Common Stock is traded on NASDAQ, then the vesting date shall be the next trading day immediately following such day on which the Company’s Common Stock is traded on NASDAQ; and provided further, however, that if the Chief Financial Officer of the Company should determine that any such anniversary falls within a period during which the Participant is prohibited from trading the Company’s Common Stock under the Company’s Stock Trading Policy, the Chief Financial Officer shall so advise the Participant in writing and the vesting date shall be the date as of which the Chief Financial Officer has determined that such period has ended.
(b)Full Accelerated Vesting.  Notwithstanding the provisions of Section 3(a) hereof, upon (i) the Participant’s termination of employment as a result of the Participant’s death or Disability, or (ii) the occurrence of a Change in Control of the Company while the Participant is employed by the Company or a Subsidiary, all of the Restricted Stock Units shall 

become fully and immediately vested, and shall be payable in accordance with Section 5 hereof, to the extent that they have not previously been forfeited in accordance with Section 4 hereof.  
(c)Fractional Units.  In the event that the calculation of the three equal installments of Restricted Stock Units pursuant to Section 3(a) hereof would result in a number of Restricted Stock Units that includes a fractional Restricted Stock Unit, the fractional Restricted Stock Unit shall not vest until and unless the third installment of Restricted Stock Units vests.
Section 4.     Termination of Employment.  In the event of the Participant’s termination of employment for any reason other than as a result of the Participant’s death or Disability, any portion of the Award that has not previously become vested hereunder shall be forfeited and automatically cancelled.  
Section 5.     Distribution with Respect to Award.
(a)Timing of Distribution.  Distribution with respect to the Restricted Stock Units shall be made upon the date such Restricted Stock Units become vested as provided in this Agreement.  
(b)Amount and Methods of Distributions.  Unless otherwise provided by the Committee and subject to the provisions of Section 5(c) hereof, distributions with respect to the Restricted Stock Units shall be made in a number of shares of the Company’s Common Stock equal to the number of Restricted Stock Units becoming vested.
(c)Withholding.  Distributions with respect to the Restricted Stock Units shall be made to the Participant after deduction of applicable withholding taxes (the “Withholding Taxes”), which shall be withheld at the applicable supplemental wage withholding rate, provided that such amount shall not exceed the Participant’s estimated Federal, state and local tax obligation with respect to payment of the Award.  Subject to the limitations of applicable law, to the extent the payment of an Award is made in shares of the Company’s Common Stock, the Participant hereby consents to the collection of the Withholding Taxes by the Company retaining, and not issuing to the Participant, a number of such shares of Common Stock (the “Withholding Shares”) having a Fair Market Value on the vesting date equal to the amount of the Withholding Taxes.  If and to the extent that the Committee determines not to have the Company retain Withholding Shares pursuant to the preceding sentence, the Company will notify the Participant at least 10 days prior to the applicable vesting date.  Subject to the limitations of applicable law, the Participant hereby consents and agrees that in such event, the Company shall instruct a broker designated by the Company to sell in the public market, on behalf of the Participant, the Withholding Shares and remit the proceeds thereof to the Company unless the Participant has made a lump sum cash payment to the Company, at or prior to the time of vesting, equal to the Company’s estimate of the Withholding Taxes as provided in the Company’s notice.  If the amount of the cash payment that the Participant delivers to the Company exceeds the actual Withholding Taxes, the excess will be repaid to the Participant promptly by the Company.  If such amount is less than the actual Withholding Taxes, the Company will collect the balance from the Participant immediately or instruct a broker 

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designated by the Company to sell shares of the Company’s Common Stock in the public market, on behalf of the Participant, in an amount sufficient to cover the shortfall.
(d)Fractional Withholding Shares.  No fraction of a Withholding Share shall be withheld or sold to satisfy tax withholding obligations pursuant to the foregoing provisions of Section 5(c).  In the event that the calculation of the number of Withholding Shares required to satisfy such withholding obligations would result in a number of Withholding Shares that includes a fractional Withholding Share, such number shall be rounded up to the next whole number of Withholding Shares and such whole number of Withholding Shares shall be withheld or sold as the case may be.  The excess amount withheld or realized in a sale of Withholding Shares as a result of such rounding shall be paid in cash by the Company to the Participant or included in the Withholding Tax paid by the Company to the tax authorities on the Participant’s behalf.
Section 6.     Restrictions on Transfer.  No portion of the Award hereunder may be sold, assigned, transferred, encumbered, hypothecated or pledged by the Participant, other than to the Company as a result of forfeiture of the Award as provided herein, unless and until the payment of the Award in accordance with Section 5 hereof.
Section 7.     Limitation of Rights.  The Participant shall not have any privileges of a stockholder of the Company with respect to the shares of Common Stock payable hereunder, including without limitation any right to vote such shares or to receive dividends or other distributions in respect thereof, until the date of the issuance to the Participant of a stock certificate evidencing such Common Stock.  
Section 8.     Adjustments.  All Awards hereunder shall be subject to the provisions of Section 4.2 of the Plan relating to adjustments for recapitalizations, reclassifications and other changes in the Company’s corporate structure.
Section 9.     No Right of Continued Employment; Rights as a Shareholder.  Nothing in this Agreement shall confer upon the Participant any right to continue as an employee of the Company or any Subsidiary or to interfere in any way with any right of the Company to terminate the Participant’s employment at any time.  The participant will not have any rights of a shareholder of the Company with respect to the Restricted Stock Units unless and until the delivery of any shares underlying the Restricted Stock Units in accordance with Section 5.
Section 10.     Notices.  Any notice hereunder by the Participant shall be given to the Company in writing and such notice shall be deemed duly given only upon receipt thereof by the Secretary of the Company.  Any notice hereunder by the Company shall be given to the Participant in writing and such notice shall be deemed duly given only upon receipt thereof at such address as the Participant may have on file with the Company.
Section 11.     Construction.  This Agreement and the Award hereunder are granted by the Company pursuant to the Plan and are in all respects subject to the terms and conditions of the Plan.  The Participant hereby acknowledges that a copy of the Plan has been delivered to the Participant and accepts the Restricted Stock Units hereunder subject to all terms and provisions of the Plan, which is incorporated herein by reference.  In the event of a conflict 

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or ambiguity between any term or provision contained herein and a term or provision of the Plan, the Plan will govern and prevail.  The construction of and decisions under the Plan and this Agreement are vested in the Committee, whose determinations shall be final, conclusive and binding upon the Participant.
Section 12.     Governing Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, excluding the choice of law rules thereof.
Section 13.     Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.
Section 14.     Binding Effect.  This Agreement shall be binding upon and inure to the benefit of the legatees, distributees, and personal representatives of the Participant and the successors of the Company.
Section 15.     Entire Agreement.  This Agreement and the Plan constitute the entire agreement between the parties with respect to the subject matter hereof and thereof, merging any and all prior agreements.
Section 16.     Section 409A.  The Awards are intend to either be exempt from or structured to avoid taxation under Section 409A of the Code and the rules and regulations thereunder (“Section 409A”). Any ambiguity in this Agreement or the Plan will be interpreted to either fall within an exemption to or comply with Section 409A.  Notwithstanding the foregoing, by signing this Agreement, the Participant acknowledges that the Company has made no representations as the treatment of the compensation provided hereunder and the Participant has been advised to obtain his own tax advice.  For purposes of Section 409A, each payment under this Agreement will be deemed a separate payment.
[SIGNATURES ON FOLLOWING PAGE]

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IN WITNESS WHEREOF, the Company and the Participant have executed this Award Agreement effective as of the date first above written.

THE ULTIMATE SOFTWARE GROUP, INC.

By:     ____________________________________
Name: 
Title: 

PARTICIPANT

By:     ____________________________________
Name:

5Exhibit

Exhibit 10.2

RESTRICTED STOCK AWARD AGREEMENT
The Ultimate Software Group, Inc.
Amended and Restated 2005 Equity and Incentive Plan

This RESTRICTED STOCK AWARD AGREEMENT (this “Agreement”) made as of this _____ day of _______________, 20___, between The Ultimate Software Group, Inc., a Delaware corporation (the “Company”), and ____________________ (the “Grantee”), is made pursuant to the terms of The Ultimate Software Group, Inc. Amended and Restated 2005 Equity and Incentive Plan (the “Plan”).  Capitalized terms used herein but not defined shall have the meanings set forth in the Plan.
Section 1.    Restricted Stock Award.  The Company has granted to the Grantee a Restricted Stock Award with respect to the number of shares of common stock of the Company, par value $.01 per share (the “Common Stock”), specified in Appendix A hereto (the “Restricted Shares”).  Appendix A may be amended by the Company from time to time to reflect additional grants of Restricted Stock Awards following the date hereof.  Each Restricted Stock Award identified in Appendix A shall be subject to the conditions hereinafter provided and subject to the terms and conditions set forth in the Plan, a copy of which the Grantee acknowledges having received.  (Each Restricted Stock Award identified in Appendix A is hereinafter referred to as an “Award.”)
Section 2.    Vesting of Awards.
(a)    Vesting Schedule.  Subject to Section 2(b) and Section 2(c) hereof, the Restricted Shares subject to each Award shall become vested on the fourth (4th) anniversary of the respective Dates of Grant thereof as set forth in Appendix A (each such date, a “Vesting Date”), subject to the Grantee’s continued service as a member of the Board on each such Vesting Date.
(b)    Full Accelerated Vesting.  Notwithstanding the provisions of Section 2(a) hereof, upon (i) the Grantee ceasing to be a member of the Board as a result of death or Disability, or (ii) the occurrence of a Change in Control of the Company while the Grantee is serving as a member of the Board, the transfer restrictions and forfeiture conditions imposed hereunder on any Restricted Shares shall immediately lapse and all such unvested shares shall become fully and immediately vested.
(c)    Partial Accelerated Vesting.  Notwithstanding the provisions of Section 2(a) hereof, but without limiting the applicability of Section 2(b) hereof, upon the Grantee’s removal from the Board without “Cause” (as defined below), the transfer restrictions and forfeiture conditions imposed hereunder on any then outstanding Restricted Shares shall immediately lapse and become vested as to 1/48th (one forty-eighth) of the Restricted Shares subject to each Award hereunder for each complete month of continued service as a member of the Board by the Grantee following the applicable Dates of Grant through and including the Grantee’s removal from the Board.  For purposes hereof, termination for “Cause” shall mean a 

removal from the Board due to (i) embezzlement or misappropriation of corporate funds, (ii) any acts of dishonesty resulting in conviction for a felony, (iii) misconduct resulting in material injury to the Company, (iv) a significant violation of Company policy, (v) willful refusal to perform, or substantial disregard of, the duties properly assigned to the Grantee, or  (vi) a significant violation of any contractual, statutory or common law duty of loyalty to the Company.  Notwithstanding the foregoing, if the Grantee is a party to an employment or similar agreement with the Company or any Subsidiary, the term “Cause” shall, for the purposes of this Agreement, have the same meaning set forth in such employment or similar agreement if and to the extent such term is defined therein.
Section 3.    Termination of Membership.  Except as provided in Sections 2(b) and 2(c) hereof, if the Grantee’s service a member of the Board is terminated prior to the occurrence of any otherwise applicable Vesting Date provided in Section 2 hereof, the Grantee shall (i) forfeit the Grantee’s interest in the Restricted Shares that have not yet become vested, (ii) assign, transfer, and deliver any certificates evidencing ownership of such shares to the Company, and (iii) cease for all purposes to be a stockholder with respect to such shares.
Section 4.    Rights as a Stockholder.  Subject to the otherwise applicable provisions of this Agreement, the Grantee will have all rights of a stockholder with respect to the Restricted Shares granted to the Grantee hereunder, including the right to vote the shares and receive all dividends and other distributions paid or made with respect thereto.
Section 5.    Restrictions on Transfer.  Neither this Agreement nor any Restricted Shares covered hereby may be sold, assigned, transferred, encumbered, hypothecated or pledged by the Grantee, otherwise than to the Company, unless as of the date of any such sale, assignment, transfer, encumbrance, hypothecation or pledge, such Restricted Shares to be thus disposed of have become vested in accordance with Section 2 hereof.  The certificate or certificates representing shares delivered pursuant to this Agreement shall bear a legend referring to the nontransferability or assignability of such shares pursuant to this Section, and a stop-transfer order against such certificate or certificates will be placed by the Company with its transfer agents and registrars.  At the discretion of the Committee, in lieu of issuing a stock certificate to the Grantee, the Company may hold the Restricted Shares in escrow during the period such shares remain subject to the vesting restrictions and other restrictions provided hereunder.
Section 6.    Investment Representation.  Upon acquisition of the Restricted Shares at a time when there is not in effect a registration statement under the Securities Act of 1933 relating to the Common Stock, the Grantee hereby represents and warrants, and by virtue of such acquisition shall be deemed to represent and warrant, to the Company that the Restricted Shares shall be acquired for investment and not with a view to the distribution thereof, and not with any present intention of distributing the same, and the Grantee shall provide the Company with such further representations and warranties as the Company may require in order to ensure compliance with applicable federal and state securities, blue sky and other laws.  No Restricted Shares shall be acquired unless and until the Company and/or the Grantee shall have complied with all applicable federal or state registration, listing and/or qualification requirements and all other requirements of law or of any regulatory agencies having jurisdiction, unless the 

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Committee has received evidence satisfactory to it that the Grantee may acquire such shares pursuant to an exemption from registration under the applicable securities laws.  Any determination in this connection by the Committee shall be final, binding and conclusive.  The Company reserves the right to legend any certificate for shares of Common Stock, conditioning sales of such shares upon compliance with applicable federal and state securities laws and regulations.
Section 7.    Adjustments.  All Awards hereunder shall be subject to the provisions of Section 4.2 of the Plan relating to adjustments for recapitalizations, reclassifications and other changes in the Company’s corporate structure.
Section 8.    No Right of Continued Employment or Service.  Nothing in this Agreement shall confer upon the Grantee any right to continue as an employee or in the service of the Company or any Subsidiary or to interfere in any way with any right of the Company to terminate the Grantee’s employment or service at any time.
Section 9.    Section 83(b) Election; Withholding.  The Grantee may make an election under Section 83(b) of the Code with respect to any grant of Restricted Shares by filing a copy of such election with the Company within 30 days of the Date of Grant.  If the Grantee makes such an election, such grant of Restricted Shares shall be conditioned upon the prompt payment by the Grantee to the Company of an amount equal to the applicable federal, state and local income taxes and other amounts required by law to be withheld (the “Withholding Taxes”) in connection with such election.  If the Grantee does not make an election under Section 83(b) of the Code with respect to a grant of Restricted Shares, the Grantee shall pay to the Company the Withholding Taxes upon the lapse of the vesting restrictions, and the lapse of the restrictions shall be conditioned upon the prior payment of the applicable Withholding Taxes by the Grantee.  Subject to the limitations of applicable law, the Grantee hereby consents to the collection of the Withholding Taxes by the Company from the Grantee’s regular paychecks to the extent necessary to satisfy the obligations of the Grantee hereunder.
Section 10.    Notices.  Any notice hereunder by the Grantee shall be given to the Company in writing and such notice shall be deemed duly given only upon receipt thereof by the Secretary of the Company.  Any notice hereunder by the Company shall be given to the Grantee in writing and such notice shall be deemed duly given only upon receipt thereof at such address as the Grantee may have on file with the Company.
Section 11.    Construction.  This Agreement and the Awards hereunder are granted by the Company pursuant to the Plan and are in all respects subject to the terms and conditions of the Plan.  The Grantee hereby acknowledges that a copy of the Plan has been delivered to the Grantee and accepts the Restricted Shares hereunder subject to all terms and provisions of the Plan, which is incorporated herein by reference.  In the event of a conflict or ambiguity between any term or provision contained herein and a term or provision of the Plan, the Plan will govern and prevail.  The construction of and decisions under the Plan and this Agreement are vested in the Committee, whose determinations shall be final, conclusive and binding upon the Grantee and the Company.

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Section 12.    Governing Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, excluding the choice of law rules thereof.
Section 13.    Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.
Section 14.    Binding Effect.  This Agreement shall be binding upon and inure to the benefit of the legatees, distributees, and personal representatives of the Grantee and the successors of the Company.
Section 15.    Entire Agreement.  This Agreement and the Plan constitute the entire agreement between the parties with respect to the subject matter hereof and thereof, merging any and all prior agreements.

[SIGNATURES ON FOLLOWING PAGE]

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IN WITNESS WHEREOF, the Company and the Grantee have executed this Agreement effective as of the date first above written.

THE ULTIMATE SOFTWARE GROUP, INC. 

By:  ____________________________________    
Name:  
Title:    

GRANTEE

By:  ____________________________________    
Name:  

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Appendix A

	
		
	Date of Grant
	Number of Shares Subject to Award

	 
	 

	 
	 

	 
	 

	 
	 

A-1

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