Document:

Exhibit 10.2

 

FORM OF EXECUTIVE PERFORMANCE STOCK UNIT
AGREEMENT

 

This Performance Stock Unit
Agreement (this “Agreement”) is made and entered into as of [DATE] (the “Grant Date”) by and between
Target Hospitality Corp., a Delaware corporation (the “Company”), and [EXECUTIVE NAME] (the “Participant”).
This Agreement is being entered into pursuant to the Target Hospitality Corp. 2019 Incentive Award Plan (the “Plan”).
Capitalized terms used in this Agreement but not defined herein will have the meaning ascribed to them in the Plan.

 

1.            Grant
of Performance Units. Pursuant to Section 9 of the Plan, the Company hereby issues to the Participant on the Grant Date an Award
consisting of [NUMBER] Performance Stock Units (the “Performance Units”)‎, subject to adjustment as specified on
Exhibit A to this Agreement. Each Performance Unit represents the right to receive one Common Share, subject to the terms and conditions
set forth in this ‎Agreement and the Plan.‎ The Performance Units shall be credited to a separate account maintained for the Participant
on the books and records of the Company (the “Account”). All amounts credited to the Account shall continue for all
purposes to be part of the general assets of the Company.

 

2.            Consideration.
The grant of the Performance Units is made in consideration of the services to be rendered by the Participant to the Company.

 

3.            Vesting.
Except as otherwise provided herein or in the Plan, the Performance Units shall become vested based on (i) continued service with
 ‎the Company until the third (3rd) anniversary of the Grant Date (the “Restricted Period”), and (ii) the ‎attainment
of the Performance Criteria specified on Exhibit A to this Agreement. Any portion of ‎the Performance Units that does
not become vested in accordance with the preceding ‎provisions of this Section 3 and Exhibit A shall be forfeited
to the Company for no ‎consideration as of the date of the termination of the Employee’s employment with the ‎Company. ‎
Once vested, the Performance Units shall become “Vested Units.”

 

4.            Termination
of Service/Employment.

 

4.1         Except
as otherwise provided in the employment agreement entered into between the Participant and Target Logistics Management, LLC, dated [DATE]
(the “Employment Agreement”), the vesting schedule above notwithstanding, if the Participant’s employment or
service terminates for any reason at any time before all of the Performance Units have vested, the Participant’s unvested Performance
Units shall be automatically forfeited upon such termination of employment or service and neither the Company nor any Affiliate shall
have any further obligations to the Participant under this Agreement. In accordance with the Employment Agreement, if the Participant’s
employment is terminated without Cause or by the Executive for Good Reason at any time prior to the first anniversary of the Grant Date,
the time vesting requirement described in Section 3(i) of the Agreement a minimum of 12.5% of the Performance Units shall be
satisfied as of the date of such termination of employment (and the remaining portion shall be forfeited) and such Performance Units shall
be held by the Participant until the end of the Restricted Period and settled based on the attainment level for the Performance Criteria
as provided in Section 3(ii) above. Notwithstanding any provision of this Agreement or the Plan to the contrary, ‎(i) if
the ‎Participant’s employment or service terminates due to Retirement, and the Participant ‎‎has been ‎continuously
employed by the Company for at least twelve (12) months following the ‎‎Grant ‎Date, then the time vesting requirement described
in Section 3(i) of the Agreement shall be satisfied with respect to a pro-rata portion of the Participant’s Performance
Units ‎‎based on ‎‎completed calendar months since the Grant Date (and the remaining portion shall be forfeited); and
(ii) ‎if the Participant experiences a Qualifying Termination, the time vesting requirement described in Section 3(i) of
the Agreement shall be satisfied in its entirety; provided, however, that in either case such Performance Units shall be held by the Participant
until the end of the Restricted Period and settled based on the attainment level for the Performance Criteria as provided in Section 3(ii) above.

 

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4.2            Notwithstanding
any provision of this Agreement or the Plan to the contrary, upon the ‎occurrence of a Change in Control, the attainment level for
the Performance Criteria ‎shall be the greater of Target Level or the level of actual performance as of the date of such ‎Change
in Control.‎

 

5.            Restrictions.
Subject to any exceptions set forth in this Agreement or the Plan, during the Restricted Period and until such time as the Performance
Units are settled, the Performance Units or the rights relating thereto may not be assigned, alienated, pledged, attached, sold or otherwise
transferred or encumbered by the Participant. Any attempt to assign, alienate, pledge, attach, sell or otherwise transfer or encumber
the Performance Units or the rights relating thereto shall be wholly ineffective and, if any such attempt is made, the Performance Units
will be forfeited by the Participant and all of the Participant’s rights to such units shall immediately terminate without any payment
or consideration by the Company.

 

6.            Rights
as Shareholder; Dividend Equivalents.

 

6.1            The
Participant shall not have any rights of a shareholder with respect to the Common Shares underlying the Performance Units unless and until
the Performance Units vest and are settled by the issuance of such Common Shares. Subject to Section 7 below,‎ the Participant
shall be the record owner of the Common Shares underlying the Performance Units unless and until such shares are sold or otherwise disposed
of, and as record owner shall be entitled to all rights of a shareholder of the Company (including voting rights).

 

6.2            In
the event that the Company pays any cash dividends on its Common Shares between the Grant Date and the date when the Performance Units
are settled in accordance with Section 7 hereof or are forfeited, the Participant’s Account shall be credited on the date such
dividend is paid to shareholders with an amount equal to all cash dividends that would have been paid to the Participant if one Common
Share had been issued on the Grant Date for each Performance Unit granted to the Participant (“Dividend Equivalents”).
Dividend Equivalents shall be credited to the Participant’s Account and interest may be credited on the amount of cash Dividend
Equivalents credited to the Participant’s Account at a rate and subject to such terms as determined by the Committee. Dividend Equivalents
credited to the Participant’s Account shall be subject to the same vesting and other restrictions as the Performance Units to which
they are attributable and shall be paid on the same date that the Performance Units to which they are attributable are settled in accordance
with Section 7 hereof. Dividend Equivalents credited to the Participant’s Account shall be distributed in cash or, at the discretion
of the Committee, in Common Shares having a Fair Market Value equal to the amount of the Dividend Equivalents and interest, if any. Any
accumulated and unpaid Dividend Equivalents attributable to Performance Units that are cancelled will not be paid and will be immediately
forfeited upon cancellation of the Performance Units.

 

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7.            Settlement
of Performance Units.

 

7.1            Promptly
upon the expiration of the Restricted Period, and in any event no later than March 15th ‎of the calendar year following the calendar
year in which the Restricted Period ends, the ‎Company shall (a) issue and deliver to the Participant, or his or her beneficiary,
without charge, ‎the number of Common Shares equal to the number of Vested Units, and (b) enter the ‎Participant’s
name on the books of the Company as the shareholder of record with respect to the ‎Common Shares delivered to the Participant; provided,
however, that the Committee may, in its ‎sole discretion elect to (i) pay cash or part cash and part Common Share in lieu of
delivering only ‎Common Shares in respect of the Performance Units or (ii) defer the delivery of Common ‎Shares (or cash
or part Common Shares and part cash, as the case may be) beyond the expiration ‎of the Restricted Period if such delivery would result
in a violation of applicable law until such ‎time as is no longer the case. If a cash payment is made in lieu of delivering Common
Shares, the ‎amount of such payment shall be equal to the Fair Market Value of the Common Shares as of the ‎date on which the
Restricted Period lapsed with respect to the Performance Units, less an ‎amount equal to any required tax withholdings.‎

 

7.2            Notwithstanding
the preceding, the form of payment for this Award will be determined based on approval by the Company’s shareholders of the proposed
increase ‎in the number of shares available for issuance under the Plan at the May 19, 2022 ‎annual meeting of Company’s
shareholders‎. If such approval is not received, then all payments under this Award will be made in cash.

 

8.            No
Rights to Continued Service/Employment. Neither the Plan nor this Agreement shall confer upon the Participant any right to be retained
in any position, as an employee, consultant or director of the Company or of any Affiliate. Further, nothing in the Plan or this Agreement
shall be construed to limit the discretion of the Company or an Affiliate to terminate the Participant’s employment or service with
the Company or an Affiliate at any time, with or without Cause.

 

9.            Adjustments.
In the event of any change to the outstanding Common Shares or the capital structure of the Company (including, without limitation, a
Change in Control), if required, the Performance Units shall be adjusted or terminated in any manner as contemplated by Section 12
of the Plan.

 

10.            Beneficiary
Designation. The Participant may file with the Committee a written designation of one or more persons as the beneficiary(ies) who
shall be entitled to his or her rights under this Agreement and the Plan, if any, in case of his or her death, in accordance with Section 16(f) of
the Plan.

 

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11.            Tax
Liability and Withholding.

 

11.1            The
Participant shall be required to pay to the Company, and the Company shall have the right to deduct from any compensation paid to the
Participant pursuant to the Plan, the amount of any required withholding taxes in respect of the Performance Units and to take all such
other action as the Committee deems necessary to satisfy all obligations for the payment of such withholding taxes in accordance with
Section 16(c) of the Plan. The Participant may satisfy any federal, state or local tax withholding obligation by any of the
following means, or by a combination of such means of the Plan, (a) tendering a cash payment, (b) if the Committee has adopted
a formal procedure allowing any participant to authorize the Company to withhold Common Shares from the Common Shares otherwise issuable
or deliverable to the Participant as a result of the vesting of the Performance Units (provided, however, that no Common Shares shall
be withheld with a value exceeding the maximum amount of tax required to be withheld by law), issuing such authorization, or (c) delivering
to the Company previously owned and unencumbered Common Shares. Notwithstanding the foregoing, in the event the Participant fails to provide
timely payment of all sums required to satisfy any applicable federal, state and local withholding obligations in respect of the Performance
Units, the Company shall treat such failure as an election by the Participant to satisfy all or any portion of the Participant’s
required payment obligation pursuant to Section 11.1(b) above.

 

11.2            Notwithstanding
any action the Company takes with respect to any or all income tax, social insurance, payroll tax, or other tax-related withholding (“Tax-Related
Items”), the ultimate liability for all Tax-Related Items is and remains the Participant’s responsibility and the Company
(a) makes no representation or undertakings regarding the treatment of any Tax-Related Items in connection with the grant, vesting
or settlement of the Performance Units or any subsequent sale of any shares; and (b) does not commit to structure the Performance
Units to reduce or eliminate the Participant’s liability for Tax-Related Items.

 

12.            Compliance
with Law. The issuance and transfer of Common Shares shall be subject to compliance by the Company and the Participant with all applicable
requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Common Shares
may be listed. No Common Shares shall be issued pursuant to Performance Units unless and until any then applicable requirements of state
or federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel. The Participant
understands that the Company is under no obligation to register the Common Shares with the Securities and Exchange Commission, any state
securities commission or any stock exchange to effect such compliance.

 

13.            Notices.
Any notice required to be delivered to the Company under this Agreement shall be in writing and addressed to the General Counsel &
Secretary of the Company at the Company’s principal corporate offices. Any notice required to be delivered to the Participant under
this Agreement shall be in writing and addressed to the Participant at the Participant’s address as shown in the records of the
Company. Either party may designate another address in writing (or by such other method approved by the Company) from time to time.

 

14.            Governing
Law. This Agreement will be construed and interpreted in accordance with the laws of the State of Texas without regard to conflict
of law principles.

 

15.            Interpretation.
Any dispute regarding the interpretation of this Agreement shall be submitted by the Participant or the Company to the Committee for review.
The resolution of such dispute by the Committee shall be final and binding on the Participant and the Company.

 

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16.            Participant
Bound by Plan. This Agreement is subject to all terms and conditions of the Plan as approved by the Company’s shareholders.
The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated herein by reference. In the event
of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions
of the Plan will govern and prevail.

 

17.            Successors
and Assigns. The Company may assign any of its rights under this Agreement. This Agreement will be binding upon and inure to the benefit
of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement will be binding
upon the Participant and the Participant’s beneficiaries, executors, administrators and the person(s) to whom the Performance
Units may be transferred by will or the laws of descent or distribution.

 

18.            Severability.
The invalidity or unenforceability of any provision of the Plan or this Agreement shall not affect the validity or enforceability of any
other provision of the Plan or this Agreement, and each provision of the Plan and this Agreement shall be severable and enforceable to
the extent permitted by law. If any provision of the Plan or any Award or Award agreement is or becomes or is deemed to be invalid, illegal,
or unenforceable in any jurisdiction or as to any person or entity or Award, or would disqualify the Plan or any Award under any law deemed
applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot be
construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such
provision shall be construed or deemed stricken as to such jurisdiction, person or entity or Award and the remainder of the Plan and any
such Award shall remain in full force and effect.

 

19.            Discretionary
Nature of Plan. The Plan is discretionary and may be amended, cancelled or terminated by the Company at any time, in its discretion.
The grant of the Performance Units in this Agreement does not create any contractual right or other right to receive any Performance Units
or other Awards in the future. Future Awards, if any, will be at the sole discretion of the Company. Any amendment, modification, or termination
of the Plan shall not constitute a change or impairment of the terms and conditions of the Participant’s employment with the Company.

 

20.            Amendment.
The Committee has the right to amend, alter, suspend, discontinue or cancel Performance Units, prospectively or retroactively; provided
that no such amendment shall adversely affect the Participant’s material rights under this Agreement without the Participant’s
consent.

 

21.            Section 409A.

 

21.1            This
Agreement is intended to comply with Section 409A of the Code and the regulations issued thereunder (“Section 409A”)
or an exemption thereunder and shall be construed and interpreted in a manner consistent with the requirements for avoiding additional
taxes or penalties under Section 409A.

 

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21.2         If
and to the extent any portion of any payment provided to the Participant under this Agreement in connection with the Participant’s
separation from service (as defined in Section 409A) is determined to constitute “nonqualified deferred compensation”
within the meaning of Section 409A and the Participant is a “specified employee” as defined in Section 409A(a)(2)(B)(i),
as determined by the Company in accordance with the procedures separately adopted by the Company for this purpose, by which determination
the Participant, as a condition to accepting benefits under this Agreement and the Plan, agrees that he or she is bound, such portion
of the shares of the Company’s common stock to be delivered on a vesting date or the cash equivalent shall not be delivered or paid
before the earlier of (i) the day that is six months plus one day after the date of separation from service (as determined under
Section 409A) or (ii) the tenth 10th day after the date of the Participant’s death (as applicable, the “New Payment
Date”). The cash equivalent of the shares that otherwise would have been delivered to the Participant during the period between
the date of separation from service and the New Payment Date or the shares themselves shall be paid or delivered to the Participant on
such New Payment Date, and any remaining shares or the cash equivalent will be delivered on their original schedule. Neither the Company
nor the Participant shall have the right to accelerate or defer the delivery of any such shares or cash payment except to the extent specifically
permitted or required by Section 409A. This Agreement is intended to comply with the provisions of Section 409A and this Agreement
and the Plan shall, to the extent practicable, be construed in accordance therewith. Terms defined in this Agreement and the Plan shall
have the meanings given such terms under Section 409A if and to the extent required to comply with Section 409A.

 

21.3            Notwithstanding
the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A
and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred
by the Participant on account of non-compliance with Section 409A.

 

22.            No
Impact on Other Benefits. The value of the Participant’s Performance Units is not part of his or her normal or expected compensation
for purposes of calculating any severance, retirement, welfare, insurance or similar employee benefit.

 

23.            Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together will constitute one
and the same instrument. Counterpart signature pages to this Agreement transmitted by facsimile transmission, by electronic mail
in portable document format (.pdf), or by any other electronic means intended to preserve the original graphic and pictorial appearance
of a document, will have the same effect as physical delivery of the paper document bearing an original signature.

 

24.            Acceptance.
The Participant hereby acknowledges receipt of a copy of the Plan and this Agreement. The Participant has read and understands the terms
and provisions thereof, and accepts Performance Units subject to all of the terms and conditions of the Plan and this Agreement. The Participant
acknowledges that there may be adverse tax consequences upon the vesting or settlement of the Performance Units or disposition of the
underlying shares and that the Participant should consult a tax advisor prior to such vesting, settlement or disposition.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the date first above written.

 

	 	TARGET
    HOSPITALITY CORP.
	 	 
	 	By:	                  
	 	Name:
	 	Title:
	 	 
	 	[PARTICIPANT NAME]
	 	 
	 	By:	

 

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Exhibit A

 

2022 Performance Criteria

 

The Participant’s Performance
Units shall become vested based on the satisfaction of both the (i) the time vesting requirement described in Section 3(i) of
the Agreement, and (ii) the Performance Criteria described in this Exhibit A. The initial number of Performance Units
specified in Section 1 of the Agreement shall be the number of Common Shares delivered upon settlement of the Performance Units subject
to the Agreement if payment is made at the “Target Level.” This initial number of Performance Units shall be adjusted based
on the attainment of the Performance Criteria described in Section 3 below.

 

1.            Performance
Period: The performance period shall be the period between January 1, 2022 and December 31, 2024.

 

2.            Award
Level: The Performance Units subject to this Agreement will be earned based on the Company’s performance for the Performance
Period. Following the end of the Performance Period, the Committee shall determine the number of Performance Units earned for the Performance
Period.

 

3.            Performance
Criteria: The Award shall be earned based on the Company’s cumulative operating cash flow during the Performance Period, as
determined based on the Net Cash Flow From Operations disclosed on the Company’s annual Form 10-K filings during the Performance
Period. The Award Level shall be determined based on the following table:

 

	Award

Level	3-Year Cumulative 

Operating Cash Flow	payout percentage
	Maximum	$352.8M or more	150% of Target Level
	Target	$252M	100% of Target Level
	Threshold	$189M	50% of Target Level
	<Threshold	<$189M	0%

 

Any payment will be based on linear interpolation
between Threshold, Target, and Maximum Award Levels.

 

    	 	8Document

Exhibit 10.12

			
	NON-EMPLOYEE DIRECTOR COMPENSATION POLICY
(Adopted Effective as of October 12, 2018, 
as Amended May 20, 2021 and November 4, 2021)

This Non-Employee Director Compensation Policy (this “Policy”) of YETI Holdings, Inc. (the “Company”) shall be effective as of the Company’s initial public offering of its common stock (“IPO”).  Following the IPO, each member of the Board of Directors (the “Board”) of the Company who is not also serving as an employee of the Company or any of its subsidiaries (each such non-employee member, a “Director”) will receive the following compensation for his or her Board service in the period that begins on the later of (i) the date of an IPO or (ii) the date the Director is elected or appointed to the Board and ends on the date of the first annual meeting of the Company’s stockholders at which directors are elected (the “First Annual Meeting”) following such date.  Unless and until changed by the Board, this Policy will also apply to periods of Director service after the First Annual Meeting.

Annual Cash Compensation
 
Absent a deferral election (described below in “Deferral of Director Compensation”), the cash compensation amounts set forth below are payable in equal quarterly installments, in arrears on the last day of each fiscal quarter in which the service occurred (each, a “Quarter”).  For any partial Quarter of service, the applicable quarterly amount will be pro-rated based on days in service.  All amounts are vested at payment.
 
1.Annual Board Service Retainer:
 
a.All Directors: $75,000

2.Annual Chair Service Fee:
 
a.Non-Executive Chair of Board: $80,000
b.Lead or Presiding Director of the Board (if any): $40,000
c.Chair of the Audit Committee: $20,000
d.Chair of the Compensation Committee: $15,000
e.Chair of the Nominating & Governance Committee: $10,000
f.Chair of Special Committee (e.g., strategic transactions, investigations, key employee searches): to be determined when Special Committee established
 
3.Annual Committee Member (non-Chair members) Service Fee:
 
a.Audit Committee: $10,000
b.Compensation Committee: $7,500
c.Nominating & Governance Committee: $5,000
d.Special Committee: $7,500
 
Equity Compensation
 
Any equity compensation granted to Directors will be granted under the Company’s 2018 Equity and Incentive Compensation Plan, as may be amended from time to time (the “Plan”).  Any equity granted will be subject to the limitation in the Plan on the number of awards that can be granted in a calendar year to any one individual or director and the terms of the applicable award agreement between the applicable Director and the Company.
			
	YETI Confidential and Proprietary        Page 1 of 3

 
IPO Restricted Stock Unit Grant:  Absent a deferral election (described below in “Deferral of Director Compensation”), each Director serving on the Board on the date that the Company prices its common stock (the “Pricing Date”) will be granted, automatically and without further action by the Board, on the later to occur of (i) the Pricing Date and (ii) the date that the Form S-8 registration statement related to the Plan becomes effective, an award of restricted stock units for a number of shares equal to (1) $120,000, divided by (2) the price at which a share of the Company’s common stock is initially offered to the public in the IPO, rounded down for any partial shares (the “IPO Grant”).  The IPO Grant will vest in full in one installment on the earlier to occur of (i) the first anniversary of the date of the IPO, and (ii) immediately prior to the Company’s First Annual Meeting, subject to the Director’s continued service through such vesting date.
 
Annual Restricted Stock Unit Grant:  Absent a deferral election (described below in “Deferral of Director Compensation”), as of the date of each annual meeting of the Company’s stockholders following the IPO (including the First Annual Meeting, each an “Annual Meeting”), or on a pro-rata basis as of a Director’s initial election or appointment to the Board following the IPO, each Director will be granted, automatically and without further action by the Board, an award of restricted stock units for a number of shares equal to (1) $120,000, divided by (2) the Market Value per Share (as defined in the Plan) on the date of grant, rounded down for any partial share (the “Annual Grant”).  The Annual Grant will vest in full in one installment on the earlier to occur of (i) the first anniversary of the grant date, and (ii) immediately prior to the Company’s next following Annual Meeting, subject to the Director’s continued service through such vesting date.
 
Deferral of Director Compensation 

Directors may elect to defer all or part of the compensation provided hereunder into deferred stock units, which will be issued and will vest as described below.  Deferred stock units will be settled in shares of the Company’s common stock on the earlier of (1) the date specified in the Director’s deferral election form and (2) the six-month anniversary of the Director’s cessation of service on the Board.  The definitive terms regarding any deferred stock units described herein will be set forth in a deferred stock unit award agreement and an accompanying deferral election form completed by the Director.  Deferral elections described in this Policy shall be made in such manner as prescribed by the Company in compliance with Section 409A of the Internal Revenue Code of 1986, as amended.  During any period of deferral, Directors will accrue dividend equivalents on their deferred stock units as dividends are paid on shares of the Company’s common stock.

    Deferral of Annual Cash Compensation by Directors in Service on the Pricing Date:  Directors serving on the Board on the Pricing Date may elect to defer all or part of the annual cash retainer, or chair or committee cash fees, that would be earned between the Pricing Date and the next Annual Meeting into deferred stock units.  Such deferred stock units (if any) shall be issued on the later to occur of (i) the Pricing Date and (ii) the date that the Form S-8 registration statement related to the Plan becomes effective.  As a result of such Director’s election to defer all or part of such cash compensation into deferred stock units, the deferred stock units will vest, subject to the Director’s continued service on the Board through the applicable vesting date, on the earlier to occur of (1) the first anniversary of the IPO, and (2) immediately prior to the Company’s First Annual Meeting, and will be settled in shares of the Company’s common stock in accordance with the Director’s deferral election, as noted above.  The number of deferred stock units any such Director is entitled to receive will be determined based upon the dollar amount of the fees elected to be received in deferred stock units and the price at which a share of the Company’s common stock is initially offered to the public in the IPO, rounded down for any partial shares. 

    Deferral of Annual Cash Compensation by Directors Following the Pricing Date:  As of the date of each Annual Meeting, or on a pro rata basis as of the date of a Director’s initial election or appointment to the Board, Directors may elect to defer all or part of the annual cash retainer, or chair or committee cash fees, that would be earned between such date and the next Annual Meeting (the “Service Period”) into deferred stock units.  Such deferred stock units would be issued on the first day of the Service Period on the basis of the Market Value per Share on the date of grant, rounded down for any partial shares.  The deferred stock units will vest at the earlier of (i) the first anniversary of the date of grant or (ii) at the next following Annual Meeting, subject to the Director’s continued service on the Board through the applicable vesting date, and will be settled in shares of the Company’s common stock in accordance with the Director’s deferral election, as noted above.
 
    
			
	YETI Confidential and Proprietary        Page 2 of 3

Deferral of Equity Compensation:  Directors may elect to defer all or part of the grant of restricted stock units, including any grant of restricted stock units made in connection with the IPO, into deferred stock units, which will vest on the same basis as the applicable Director’s restricted stock unit would vest, and will be settled in shares of the Company’s common stock in accordance with the Director’s deferral election, as noted above. 
 
Expense Reimbursement
 
All of our Directors are reimbursed for their reasonable out-of-pocket expenses related to their service as a member of the Board or any of the committees of the Board.

Company Products

Similar to employees, directors are entitled to a discount to the suggested retail price of certain Company products.  The Company believes that providing directors access to this program serves a business purpose by expanding the directors’ knowledge of the Company’s business and providing a branding opportunity.  

			
	YETI Confidential and Proprietary        Page 3 of 3

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