Document:

sogc_Ex_10-3

		

			Exhibit 10.3

		

		

			 

		

		

			Sabine Oil & Gas Corporation

		

		

			1415 Louisiana Street,  Suite 1600

		

		

			Houston, TX 77002

		

		
			 
		

		
			 
		

		
			March 12, 2015
		

		
			 
		

		
			CONFIDENTIAL
		

		
			 
		

		
			Re:Performance Award
		

		
			Dear ________________:
		

		
			This letter (your “Participation Agreement”) confirms that you are eligible to receive (i) a cash bonus for the first calendar quarter of 2015 (the “Bonus”), and (ii) a performance award (the “Performance Award”), in each case pursuant to the 2014 Long-Term Incentive Plan (the “Plan”) in consideration of and appreciation for your continued services and contribution to Sabine Oil & Gas Corporation (the “Company”), subject to the terms and conditions outlined in this Participation Agreement and the Plan.  Capitalized terms used in this Participation Agreement and not herein defined shall have the meaning set forth in the Plan. 
		

		
			2015 First Quarter Bonus
		

		
			This Participation Agreement provides you with the opportunity to earn a Bonus equal to [$xx,xxx], which shall be payable no later than 30 days following the end of the first calendar quarter of 2015 so long as you continue to be employed by the Company or its affiliates through the date of payment of the Bonus.  If your employment with the Company or its affiliates terminates for any reason prior to the payment of the Bonus, you shall forfeit your right to receive any portion of the Bonus.
		

		
			Performance Award
		

		
			General Description of Performance Award.  The “Term” of the Performance Award will begin on April 1, 2015 and continue through June 30, 2016, or such earlier date as the Board (as such term is defined in the Plan) shall determine, in its sole discretion.  This Participation Agreement provides you with the opportunity to earn a quarterly cash bonus with respect to each calendar quarter commencing during the Term (a “Performance Period”), provided that you continue to be employed by the Company or its affiliates through the applicable Payment Date (as defined below).  This Performance Award opportunity is inclusive of your 2015 annual bonus and long term incentive opportunities.
		

		
			Quarterly Performance Bonus Amounts and Dates.  Your target quarterly Performance Award opportunity will be $[__] (the “Target Quarterly Bonus”).  You may earn more or less than this Target Quarterly Bonus for each calendar quarter during the Term depending on the Company’s actual performance as compared to pre-established threshold, target, and maximum EBITDA goals set by the Committee (as such term is defined in the Plan)] for each calendar quarter, as described in more detail below (each quarterly bonus actually earned and paid, the “Actual Quarterly Performance Bonus”).
		

		
			 
		

		 

 

		

			Page 2 of 4

		

		

			 

		

			
					
						Actual Company Performance

					
					
						  

					
					
						  

					
					
						Percentage of Target Quarterly
Bonus Earned

				
	
					
						Below Threshold

					
					
						 

					
					
						 

					
					
						0%

				
	
					
						Threshold

					
					
						 

					
					
						 

					
					
						75%

				
	
					
						Target

					
					
						 

					
					
						 

					
					
						100%

				
	
					
						Maximum

					
					
						 

					
					
						 

					
					
						125%

				

		
			 
		

		
			The Committee shall establish the threshold, target, and maximum EBITDA performance levels for each Performance Period prior to the beginning of such Performance Period.  Once established, management will communicate the performance levels for each Performance Period.  The Committee shall certify the actual Company performance achieved for each Performance Period following the end of the Performance Period and prior to the payment of the Actual Quarterly Performance Bonus.  The administration of the Performance Awards shall comply in all respects with Section 8(b) of the Plan. 
		

		
			No payments of your Performance Award will be made to you for any calendar quarter in which the Company does not achieve at least the threshold level of EBITDA performance established by the Committee.  In the event that Company EBITDA performance falls between the threshold, target, and maximum levels, the value of your Actual Quarterly Performance Bonus will be calculated using straight line interpolation.  The maximum quarterly Performance Award that you are eligible to receive will be $[___].  You will be paid the Actual Quarterly Performance Bonus if, and only if, (i) you are employed by the Company or its affiliates through the applicable Payment Date and (ii) the Company achieves at least the threshold EBITDA performance goal for the applicable Performance Period.  Each Actual Quarterly Performance Bonus earned pursuant to the terms of this Participation Agreement, less withholding for applicable taxes, will be paid to you no later than 30 days following the end of the applicable calendar quarter (the date such payment is made, the “Payment Date”).
		

		
			For an example of how the Actual Quarterly Bonus will be calculated, please see Exhibit A.
		

		
			Terminations of Employment.  In the event that your employment with the Company is terminated for any reason whatsoever before the Payment Date, you will forfeit your right to receive any portion of your Performance Award that has not been paid as of the date of your termination of employment, including the Actual Quarterly Performance Bonus for a calendar quarter that is complete as of the date of your termination of employment but has not yet been paid.  
		

		
			Administration.  The Plan, this Participation Agreement, and the Performance Award shall be administered and interpreted by the Committee, in its full and absolute discretion.  All calculations, determinations and interpretations made by the Board with respect to the Plan, this Participation Agreement and your Performance Award will be final and binding on you and the Company. 
		

		

		

		 

 

		

			Page 3 of 4

		

		

			 

		

		Please execute and return a copy of this Participation Agreement to Yamoria Miller, Vice President, Human Resources, at 1415 Louisiana Street, Suite 1600, Houston, Texas 77002 or ymiller@sabineoil.com by March 31, 2015 to indicate your acceptance of the terms and conditions herein. The Company will not make payment to you pursuant to the Performance Award unless the Company has timely received a signed copy of this Participation Agreement.
		

		
			We are pleased to be able to offer this Performance Award to you and truly appreciate your dedication and commitment to the Company and its affiliates.  If you have further questions about this plan please contact your Yamoria Miller in Human Resources.  We are excited about the future and look forward to our success together. 
		

		
			 
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						 

					
					
						Very Truly Yours,

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Sabine Oil & Gas Corporation

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						ACCEPTED BY:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						[Name]

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Date

					
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			 

		

		

			 

		

 

		

			 

		

		Exhibit A
		

		
			EXHIBIT  A
		

		
			 
		

		
			Below is an example of the calculation of the Performance Award described in the Participation Agreement.  This example is intended for illustrative purposes only.  
		

		
			The example below assumes that the Target Quarterly Performance Bonus is $100.
		

		
			Performance Goals
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						  

					
					
						  

					
					
						Performance
Period (Q1)
($)

					
					
						  

					
					
						  

					
					
						Performance
Period (Q2)
($)

					
					
						  

					
					
						  

					
					
						Performance
Period (Q3)
($)

					
					
						  

					
					
						  

					
					
						Performance
Period (Q4)
($)

					
					
						 

				
	
					
						Threshold EBITDA Performance Goal

					
					
						 

					
					
						 

					
					
						84.6 

					
					
						 

					
					
						 

					
					
						84.6 

					
					
						 

					
					
						 

					
					
						90.3 

					
					
						 

					
					
						 

					
					
						84.6 

					
					
						 

				
	
					
						Target EBITDA Performance Goal

					
					
						 

					
					
						 

					
					
						89 

					
					
						 

					
					
						 

					
					
						89 

					
					
						 

					
					
						 

					
					
						95 

					
					
						 

					
					
						 

					
					
						89 

					
					
						 

				
	
					
						Maximum EBITDA Performance Goal

					
					
						 

					
					
						 

					
					
						93.5 

					
					
						 

					
					
						 

					
					
						93.5 

					
					
						 

					
					
						 

					
					
						99.8 

					
					
						 

					
					
						 

					
					
						93.5 

					
					
						 

				

		
			 
		

		
			Actual Performance
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						  

					
					
						  

					
					
						Performance
Period (Q1)
($)

					
					
						  

					
					
						  

					
					
						Performance
Period (Q2)
($)

					
					
						  

					
					
						  

					
					
						Performance
Period (Q3)
($)

					
					
						  

					
					
						  

					
					
						Performance
Period (Q4)
($)

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						84 

					
					
						 

					
					
						 

					
					
						86 

					
					
						 

					
					
						 

					
					
						105 

					
					
						 

					
					
						 

					
					
						89 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Actual Quarterly Performance Bonus

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Percentage of Target Quarterly Performance Bonus Earned

					
					
						 

					
					
						 

					
					
						0%

					
					
						 

					
					
						 

					
					
						83%

					
					
						 

					
					
						 

					
					
						125%

					
					
						 

					
					
						 

					
					
						100%

					
					
						 

				
	
					
						Actual Quarterly Performance Bonus Payable

					
					
						 

					
					
						 

					
					
						0 

					
					
						 

					
					
						 

					
					
						83 

					
					
						 

					
					
						 

					
					
						125 

					
					
						 

					
					
						 

					
					
						100Exhibit 10.4

 

PROMISSORY
NOTE

 

	$115,000.00	As
    of October 31, 2014

 

 

E-compass
Acquisition Corp. (“Maker”) promises to pay to the order of Lodestar Investment Holdings I LLC (“Payee”)
the principal sum of One Hundred Fifteen Thousand Dollars and No Cents ($115,000.00) in lawful money of the United States of America,
on the terms and conditions described below. This Note supersedes and replaces all outstanding notes from Maker to Payee.

 

1.Principal.
The principal balance of this Note shall be repayable on the earlier of (i) October 31, 2015, (ii) the date on which Maker consummates
an initial public offering of its securities (“IPO”) or (iii) the date on which Maker determines to not proceed with
such IPO.

 

2.Interest.
No interest shall accrue on the unpaid principal balance of this Note.

 

3.Application
of Payments. All payments shall be applied first to payment in full of any costs incurred in the collection of any sum due
under this Note, including (without limitation) reasonable attorneys’ fees, then to the payment in full of any late charges
and finally to the reduction of the unpaid principal balance of this Note.

 

4.Events
of Default. The following shall constitute Events of Default:

 

(a)Failure
to Make Required Payments. Failure by Maker to pay the principal of this Note within five (5) business days following the
date when due.

 

(b)Voluntary
Bankruptcy, Etc. The commencement by Maker of a voluntary case under the Federal Bankruptcy Code, as now constituted or hereafter
amended, or any other applicable federal or state bankruptcy, insolvency, reorganization, rehabilitation or other similar law,
or the consent by it to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator
(or other similar official) of Maker or for any substantial part of its property, or the making by it of any assignment for the
benefit of creditors, or the failure of Maker generally to pay its debts as such debts become due, or the taking of corporate
action by Maker in furtherance of any of the foregoing.

 

(c)Involuntary
Bankruptcy, Etc. The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of maker
in an involuntary case under the Federal Bankruptcy Code, as now or hereafter constituted, or any other applicable federal or
state bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator
(or similar official) of Maker or for any substantial part of its property, or ordering the winding-up or liquidation of its affairs,
and the continuance of any such decree or order unstayed and in effect for a period of 60 consecutive days.

 

    	 

    	 

    

 

5.Remedies.

 

(a)Upon
the occurrence of an Event of Default specified in Section 4(a), Payee may, by written notice to Maker, declare this Note to be
due and payable, whereupon the principal amount of this Note, and all other amounts payable thereunder, shall become immediately
due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, anything
contained herein or in the documents evidencing the same to the contrary notwithstanding.

 

(b)Upon
the occurrence of an Event of Default specified in Sections 4(b) and 4(c), the unpaid principal balance of, and all other sums
payable with regard to, this Note shall automatically and immediately become due and payable, in all cases without any action
on the part of Payee.

 

6.Waivers.
Maker and all endorsers and guarantors of, and sureties for, this Note waive presentment for payment, demand, notice of dishonor,
protest, and notice of protest with regard to the Note, all errors, defects and imperfections in any proceedings instituted by
Payee under the terms of this Note, and all benefits that might accrue to Maker by virtue of any present or future laws exempting
any property, real or personal, or any part of the proceeds arising from any sale of any such property, from attachment, levy
or sale under execution, or providing for any stay of execution, exemption from civil process, or extension of time for payment;
and Maker agrees that any real estate that may be levied upon pursuant to a judgment obtained by virtue hereof, on any writ of
execution issued hereon, may be sold upon any such writ in whole or in part in any order desired by Payee.

 

7.Unconditional
Liability. Maker hereby waives all notices in connection with the delivery, acceptance, performance, default, or enforcement
of the payment of this Note, and agrees that its liability shall be unconditional, without regard to the liability of any other
party, and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or
consented to by Payee, and consents to any and all extensions of time, renewals, waivers, or modifications that may be granted
by Payee with respect to the payment or other provisions of this Note, and agree that additional makers, endorsers, guarantors,
or sureties may become parties hereto without notice to them or affecting their liability hereunder.

 

8.Notices.
Any notice called for hereunder shall be deemed properly given if (i) sent by certified mail, return receipt requested, (ii) personally
delivered, (iii) dispatched by any form of private or governmental express mail or delivery service providing receipted delivery,
(iv) sent by telefacsimile or (v) sent by e-mail, to the following addresses or to such other address as either party may designate
by notice in accordance with this Section:

 

If
to Maker:

 

E-compass
Acquisition Corp.

6F/Tower,
2 West Prosper Centre 

No
5, Guanghua Road, Chaoyang District 

Beijing,
100020, P.R. China

  

    	2

    	 

    

 

If
to Payee:

 

Lodestar
Investment Holdings I LLC 

[Address] 

 

Notice
shall be deemed given on the earlier of (i) actual receipt by the receiving party, (ii) the date shown on a telefacsimile transmission
confirmation, (iii) the date on which an e-mail transmission was received by the receiving party’s on-line access provider
(iv) the date reflected on a signed delivery receipt, or (vi) two (2) Business Days following tender of delivery or dispatch by
express mail or delivery service.

 

9.Construction.
This Note shall be construed and enforced in accordance with the domestic, internal law, but not the law of conflict of laws,
of the State of New York.

 

10.Severability.
Any provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and
any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

IN
WITNESS WHEREOF, Maker, intending to be legally bound hereby, has caused this Note to be duly executed by its Chief Executive
Officer the day and year first above written.

 

	 	E-COMPASS
    ACQUISITION CORP.
	 	 	 
	 	By:	/s/
    Richard Xu
	 	 	Name:
    Richard Xu
	 	 	Title:
    Chairman and CEO

 

 

3

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