Document:

ENTR 2014.12.31 EX10.45 PSU Grant

EXHIBIT 10.45

ENTROPIC COMMUNICATIONS, INC.  
RESTRICTED STOCK UNIT AWARD GRANT NOTICE 
2007 EQUITY INCENTIVE PLAN AND EXECUTIVE MANAGEMENT BONUS PLAN

Entropic Communications, Inc. (the “Company”), pursuant to its 2007 Equity Incentive Plan (the “Equity Plan”) and its Executive Management Bonus Plan (the “Bonus Plan”), hereby awards to Participant a Restricted Stock Unit Award in respect of the target and maximum number of restricted stock units (“RSUs”) set forth below (the “Award”).  The Award is subject to all of the terms and conditions as set forth herein, including the Vesting Criteria set forth on Exhibit A hereto, the Equity Plan, the Bonus Plan, and the Restricted Stock Unit Award Agreement.  Capitalized terms not otherwise defined herein shall have the meanings set forth in the Vesting Criteria, the Equity Plan, the Bonus Plan or the Restricted Stock Unit Agreement, as applicable.  Except as explicitly provided herein, in the event of any conflict between such provisions, the terms of the Plan shall control.
	
		
	Participant:
	 

	Date of Grant:
	 

	Number of RSUs subject to Target Award:
	 

	Number of RSUs subject to Maximum Award:
	 

	Performance Period:
	 

		
	Vesting Criteria: 
	The Award will vest contingent upon attainment of the performance and service conditions specified on the attached Exhibit A (the “Vesting Criteria”).   

Determination of Actual Award: On the Date of Grant, the Committee will determine the Number of RSUs subject to Participant’s Target Award.  On the date that the Committee certifies that the applicable Threshold Performance Goal has been achieved for a Performance Period, and provided that the Participant is in Continuous Service through the Measurement Date for such Performance Period, the Company will credit the Participant with an Actual Award representing the number of Restricted Stock Units (“RSUs”), which may be equal to all or a portion (including none) of the Maximum Award, as determined by the Committee under the Bonus Plan and in accordance with the Vesting Criteria.

		
	Issuance Schedule:
	The shares of Common Stock to be issued in respect of the Award will be issued in accordance with the issuance schedule set forth in Section 6 of the Restricted Stock Unit Agreement.

Additional Terms/Acknowledgements:  The undersigned Participant acknowledges receipt of, and understands and agrees to, this Restricted Stock Unit Grant Notice, the Restricted Stock Unit Agreement and the Plan.  Participant further acknowledges that as of the Date of Grant, this Restricted Stock Unit Grant Notice including the Vesting Criteria, the Restricted Stock Unit Agreement, the Bonus Plan and the Equity Plan set forth the entire understanding between Participant and the Company regarding the Award and supersedes all prior oral and written agreements on that subject.
	
					
	ENTROPIC COMMUNICATIONS, INC.
	 
	PARTICIPANT

	By:
	 
	 
	By:
	 

	 
	Signature
	 
	 
	Signature

	 
	 
	 
	 
	 

	Title:
	 
	 
	Date:
	 

	 
	 
	 
	 
	 

	Date:
	 
	 
	 
	 

 
 

EXHIBIT A

VESTING CRITERIA

Subject to the Participant’s Continuous Service through, as applicable, the First Interim Measurement Date, the Second Interim Measurement Date and the Final Measurement Date (each as defined below), the Restricted Stock Units granted hereunder shall vest on the applicable Performance Vesting Date in an amount equal to the product of (1) the Number of RSUs subject to Target Award and (2) the applicable Total Shareholder Return Multiplier, as determined below.  
The Total Shareholder Return Multiplier shall be based on the Company’s Total Shareholder Return performance relative to other companies in the Peer Group (the “Relative Total Shareholder Return Percentile Rank”) as follows:
	
		
	Relative Total Shareholder Return Percentile Rank
	Total Shareholder Return Multiplier

	Above 90th Percentile 
	300%

	89.9th Percentile
	200%

	75th Percentile
	150%

	50th Percentile 
	100%

	40th Percentile 
	75%

	30th Percentile
	50%

	Below 30th Percentile 
	0%

The Total Shareholder Return Multiplier shall be a linear interpolation for any achievement of the Relative Total Shareholder Return Percentile Rank which falls between the 30th Percentile and the 89.9th Percentile; provided that there shall be no linear interpolation for a Relative Total Shareholder Return Percentile Rank that is less than the 30th Percentile or greater than the 90th Percentile.  The maximum possible payout is 300% of the Target RSUs.  Notwithstanding anything herein to the contrary, the Total Shareholder Return Multiplier will in no event exceed 100% if the Company’s Total Shareholder Return for the Performance Period is negative.
The Committee shall determine (A) the Company’s Total Shareholder Return for each applicable Performance Period and (B) the Total Shareholder Return for same Performance Period of each company that was in the Peer Group (as defined below).  The Company’s Relative Total Shareholder Return Percentile Rank will be determined by ranking the companies in the Peer Group from highest to lowest according to their respective Total Shareholder Return, then calculating the Total Shareholder Return percentile ranking of the Company relative to other companies in the Peer Group.
For purposes of this Agreement, the following terms shall be defined as follows:

 
 

		
	•
	“Beginning Stock Price” shall mean, for the Company and for each Company in the Peer Group, the average closing price per share of common stock for the sixty (60) trading days immediately prior to the first trading day of the Performance Period.

		
	•
	“Ending Stock Price” shall mean, for each of the Company and each company in the Peer Group, respectively, the average closing price per share of common stock for the sixty (60) trading days immediately prior to and including the First Interim Measurement Date, the Second Interim Measurement Date and the last day of the Performance Period, as applicable.

		
	•
	“Final Measurement Date” shall mean February 14, 2017.  

		
	•
	“Final Measurement Period” shall mean the period beginning on February 15, 2014 and ending on the Final Measurement Date. 

		
	•
	“First Interim Measurement Date” shall mean February 14, 2015.

		
	•
	“First Interim Measurement Period” shall mean the period beginning on February 15, 2014 and ending on the Frist Interim Measurement Date.

		
	•
	“Measurement Date” shall mean, as applicable, the First Interim Measurement Date, the Second Interim Measurement Date or the Final Measurement Date.

		
	•
	“Peer Group” shall mean the companies that comprise the Standard & Poor’s Semiconductors Select Industry Index as in effect at the beginning of the Performance Period other than the Company even if it is included in the Standard & Poor’s Semiconductors Select Industry Index during some or all of the Performance Period.

		
	•
	“Performance Period” shall mean, as applicable the First Interim Measurement Period, the Second Interim Measurement Period, or the Final Measurement Period.  

		
	•
	“Performance Vesting Date” shall be the date on which the Committee certifies in writing the Total Shareholder Return Multiplier which, with respect to the First Interim Measurement Period shall in no event be later than December 31, 2015, with respect to the Second Interim Measurement Period shall in no event be later than December 31, 2016, and with respect to the Final Measurement Period shall in no event be later than December 31, 2017. 

		
	•
	“Qualified Termination” shall mean an involuntary termination without Cause on or within 12 months after a Change in Control, including resignation with Good Reason, as defined in the Participant’s employment agreement or Change in Control agreement, and in all cases conditioned upon the Participant executing (and not revoking) a release of claims.

		
	•
	“Second Interim Measurement Date” shall mean February 14, 2016.  

		
	•
	“Second Interim Measurement Period” shall mean the period beginning on February 15, 2014 and ending on the Second Interim Measurement Date.  

		
	•
	“Threshold Performance Goal” means a Relative Total Shareholder Return Percentile Rank at or greater than the 30th Percentile.

 
 

		
	•
	“Total Shareholder Return” shall mean an amount equal to (x) the Ending Stock Price minus the Beginning Stock Price, plus (y) the amount of any dividends paid on a per share basis (calculated as if such dividends had been reinvested in the applicable company’s common stock on the applicable ex-dividend date) cumulatively over the Performance Period, divided by (z) the Beginning Stock Price.

Subject to the Committee’s certification of the Company’s achievement of the Threshold Performance Goal for the First Interim Measurement Period, the Participant will vest on the applicable Performance Vesting Date in a number of RSUs equal to 50% of one-third (1/3) of the Number of RSUs subject to the Target Award, multiplied by the Total Shareholder Return Multiplier applicable to the First Interim Measurement Period (the “First Interim Vesting RSUs”).  Subject to the Company’s achievement of the Threshold Performance Goal for the Second Interim Measurement Period, the Participant will vest on the applicable Performance Vesting Date in a number of RSUs (the “Second Interim Vesting RSUs”) equal to (i) the product of 50% of two-thirds (2/3) of the Number of RSUs subject to the Target Award, multiplied by the Total Shareholder Return Multiplier applicable to the Second Interim Measurement Period, minus (ii) the number of First Interim Vesting RSUs. Subject to the Company’s achievement of the Threshold Performance Goal for the Final Measurement Period, the Participant will vest on the applicable Performance Vesting Date in a number of RSUs equal to (i) the product of the Number of RSUs subject to the Target Award, multiplied by the applicable Total Shareholder Return Multiplier applicable to the Final Interim Measurement Period, minus (ii) the sum of First Interim Vesting RSUs plus the Second Interim Vesting RSUs.  For purposes of illustration only, assume that (i) Participant is granted a Target Award of 30,000 RSUs, (ii) the Relative Total Shareholder Return Percentile Rank for the First Interim Measurement Period is at the 50th Percentile, (iii) the Relative Total Shareholder Return Percentile Rank for the Second Interim Measurement Period is at the 75th Percentile, and (iv) the Relative Total Shareholder Return Percentile Rank for the Final Measurement Period is at the 50th Percentile.  Subject to Participant’s Continuous Service through each applicable Measurement Date, the participant would vest in 5,000 RSUs (30,000 x 1/3 x 50% x 100%) with respect to the First Interim Measurement Period, 15,000 RSUs ((30,000 x 2/3 x 50% x 150%) – 5,000) with respect to the Second Interim Measurement Period and 10,000 RSUs ((30,000 x 100%) – (5,000 + 15,000)) with respect to the Final Measurement Period.   
Notwithstanding the foregoing, in the event of a Change in Control of the Company prior to a Measurement Date, the Committee shall certify the Relative Total Shareholder Return Percentile Rank and determine the number of RSUs conditionally earned as of the Change in Control; provided that the RSUs will vest, subject to Participant’s Continuous Service with the Company, on each remaining original Measurement Date.  In addition, and notwithstanding the foregoing and notwithstanding any other provision in an employment or other agreement between the Participant and the Company, in the event the Participant’s Continuous Service is terminated due to a Qualified Termination, the RSUs that are conditionally earned upon the Change in Control shall accelerate in full.Exhibit 10.12 Non-Stat SO Agreement

		
			Exhibit 10.12
		

		
			 
		

		
			UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC.
		

		
			 
		

		
			NON-STATUTORY STOCK OPTION AGREEMENT
		

		
			 
		

		
			 
		

		
			 
		

		
			1.Grant of Options
		

		
			 
		

		
			UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC., a Delaware corporation (the "Company"), hereby grants to «FirstName» «LastName» (the "Optionee"), «NumberofShares» Options (the "Options"), pursuant to the Company's Omnibus Incentive Plan as amended (the "Plan"), to purchase an aggregate of «NumberofShares» shares of common stock, $.001 par value per share ("Common Stock"), of the Company at a price of $per share (the "Exercise Price Per Share"), purchasable as set forth in and subject to the terms and conditions of this Option Agreement and the Plan.  All undefined capitalized terms herein shall have the same meaning as set forth in the Plan.
		

		
			 
		

		
			2.Exercise of Options and Provisions for Termination
		

		
			 
		

		
			(a)Exercisability of Options.  The Options shall become exercisable and option shares may be purchased based on the number of full years of service for the Company or a Subsidiary that have expired since the date of grant (set forth on the signature page hereof), in accordance with the following schedule:
		

		
			 
		

			
					
						
Since First Date of Grant

					
					
						 

					
						 

					
						 

				
	
					
						 

					
						Number of Years of Service
Since First Date of Grant

					
					
						Percentage of Option Shares

					
						 Available

					
						for Purchase (Cumulative)

				
	
					
						1

					
					
						25%

				
	
					
						2

					
					
						50%

				
	
					
						3

					
					
						75%

				
	
					
						4

					
					
						100%

				

		
			 
		

		
			In the event that the Optionee obtains ten years of continuous service for the Company prior to the Expiration Date of grant (as defined below) the Options shall become exercisable and option shares may be purchased based on the number of anniversaries that have expired since the date of grant (set forth on the signature page hereof), in accordance with the schedule directly above without regard to continued service:
		

		
			 
		

		
			Notwithstanding the foregoing, the Options shall not be exercisable unless such exercise is in compliance with the Securities Act of 1933, as amended (the "Securities Act"), all other applicable laws and regulations (including state securities laws) and the requirements of any securities exchange on which the shares of Common Stock are listed. 
		

		
			 
		

		
			(b)Expiration Date.  Except as otherwise provided in this Option Agreement or the Plan, the Options may not be exercised after the date (hereinafter the "Expiration Date") that is the tenth anniversary of the date of grant.
		

		
			 
		

		
			(c)Effect of Termination of Employment. For those Optionees that have obtained ten years of continuous service for the Company prior to the Expiration Date of the grant, may purchase exercisable options prior to the Expiration Date.
		

		
			 
		

		
			For those Optionees that have not obtained ten years of continuous service for the Company prior to the Expiration Date of the grant the Options may not be exercised by an Optionee unless, at the time of such exercise, the Optionee is, and continuously since the date of grant of his or her Options has been, an employee of the Company or a Subsidiary, except that subject to the Options vesting as of the date of termination of employment:
		

		
			 
		

		
			(i)if the Optionee ceases to be an employee of the Company or a Subsidiary for any reason other than death or disability or a discharge for "cause" (as defined in (iv) below), the right to exercise the Options shall terminate three months after such cessation;
		

		
			 
		

		

		

		 

		

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		(ii)if the Optionee dies while an employee of the Company or a Subsidiary, or within three months after the Optionee ceases to be such an employee, the Options may be exercised by the administrator of the Optionee's estate, or by the person to whom the Options are transferred by will or the laws of descent and distribution, within the period of one year after the date of death;
		

		
			 
		

		
			(iii)if the Optionee becomes disabled (within the meaning of the Plan) while an employee of the Company or a Subsidiary, the Options may be exercised within the period of one year after the date the Optionee ceases to be an employee of the Company or Subsidiary because of such disability; and
		

		
			 
		

		
			(iv)if the Optionee, prior to the expiration date of the Options, ceases his or her services as an employee of the Company or a Subsidiary, because he or she is discharged for "cause" (as defined below), the right to exercise the Options shall terminate immediately upon such cessation of such services.  "Cause" shall mean:  willful misconduct in connection with the Optionee's performance of services for the Company or willful failure to perform his or her services in the best interest of the Company, as determined by the Board of Directors, which determination shall be conclusive;
		

		
			 
		

		
			provided,  however, that in no event may the Options be exercised after the expiration date thereof.
		

		
			 
		

		
			(d)Exercise Procedure.  Subject to the conditions set forth in this Agreement and, if applicable, Section 6 of the Plan, the Options shall be exercised by the Optionee's delivery of written notice of exercise to the Secretary of the Company, specifying the number of shares to be purchased and the Exercise Price Per Share to be paid therefor and accompanied by payment in accordance with Section 3 hereof.  The Optionee may purchase less than the total number of shares covered hereby, provided that no exercise of less than all the Options may be for less than 100 whole shares.
		

		
			 
		

		
			3.Payment of Purchase Price
		

		
			 
		

		
			Payment of the Exercise Price Per Share for shares purchased upon exercise of an Option shall be made by delivery to the Company of the purchase price, payable in cash (by check) or any other method of payment that is permitted by the Plan and specifically authorized by the Committee on or before the time of exercise.
		

		
			 
		

		
			4.Delivery of Shares
		

		
			 
		

		
			The Company shall, upon payment of the Exercise Price Per Share for the number of shares purchased and paid for, make prompt delivery of such shares to the Optionee.  No shares shall be issued and delivered upon exercise of an Option unless and until, in the opinion of counsel for the Company, any applicable registration requirements of the Securities Act, any applicable listing requirements of any national securities exchange on which stock of the same class is then listed, and any other requirements of law, including state securities laws, or of any regulatory bodies having jurisdiction over such issuance and delivery, shall have been fully complied with.
		

		
			 
		

		
			5.Non-transferability of Options
		

		
			 
		

		
			Except as provided in Section 2(c)(ii) hereof, the Options are personal and no rights granted hereunder may be transferred, assigned, pledged or hypothecated in any way (whether by operation of law or otherwise), except by will or the laws of descent and distribution, nor shall any such rights be subject to execution, attachment or similar process.  Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of an Option or of such rights contrary to the provisions hereof, or upon the levy of any attachment or similar process upon any Option or such rights, this Option Agreement and such rights shall, at the election of the Company, become null and void.
		

		
			 
		

		
			6.No Special Employment Rights
		

		
			 
		

		
			Nothing contained in the Plan or this Option Agreement shall be construed or deemed by any person under any circumstances to bind the Company to continue the services of the Optionee for the period within which the Options may be exercised.  However, during the period in which the Optionee is rendering services, the Optionee shall render diligently and faithfully the services which are assigned to him or her from time to time by the Board of Directors or by the executive officers of the Company and shall at no time take any action which directly or indirectly would be inconsistent with the best interests of the Company.
		

		 

		

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			7.Rights as a Stockholder
		

		
			 
		

		
			The Optionee shall have no rights as a stockholder with respect to any shares which may be purchased by exercise of the Options unless and until a certificate representing such shares is duly issued to the Optionee.  Except as otherwise expressly provided in the Plan, no adjustment shall be made for dividends or other rights for which the record date is prior to the date on such stock certificate.
		

		
			 
		

		
			8.Recapitalization
		

		
			 
		

		
			In the event that the outstanding shares of Common Stock of the Company are changed into or exchanged for a different number or kind of shares or other securities of the Company by reason of any recapitalization, reclassification, stock split, stock dividend, combination or subdivision, an appropriate and proportionate adjustment shall be made in the number and kind of shares subject to the Plan and in the number, kind, and per share exercise price, of shares subject to unexercised Options or portions thereof granted prior to such adjustment.  Any such adjustment to an outstanding Option shall be made without change in the total price applicable to the unexercised portion of such Option as of the date of the adjustment.
		

		
			 
		

		
			9.Reorganization
		

		
			 
		

		
			In the event the Company is merged or consolidated with another entity and the Company is not a surviving entity, or in the event all or substantially all of the assets or more than 20% of the outstanding voting stock of the Company entitled to vote for directors is acquired by any other entity or person other than an Affiliate, or in the event of a reorganization or liquidation of the Company, prior to the Expiration Date or termination of this Option Agreement, the Optionee shall, with respect to the Options or any unexercised portion hereof, be entitled to the rights and benefits, and be subject to the limitations, set forth in the Plan.
		

		
			 
		

		
			10.Withholding Taxes
		

		
			 
		

		
			The Company's obligation to deliver shares upon the exercise of an Option shall be subject to the Optionee's satisfaction of all applicable federal, state and local income and employment tax withholding requirements ("Withholding Taxes") with respect to the Option.  The Optionee shall pay the Withholding Taxes to the Company in cash prior to the issuance, or release from escrow, of shares of Common Stock.  In satisfaction of the Withholding Taxes, the Committee may, in its discretion and subject to compliance with applicable securities laws and regulations, withhold a portion of the shares issuable to the Optionee upon exercise of the Option having an aggregate Fair Value on the date preceding the date of such issuance equal to the Withholding Taxes.
		

		
			 
		

		
			11.Optionee Representations; Legend
		

		
			 
		

		
			(a)Representations.  The Optionee represents, warrants and covenants that he or she has had such opportunity as he or she has deemed adequate to obtain from representatives of the Company such information as is necessary to permit the Optionee to evaluate the merits and risks of his or her investment in the Company.  The Optionee understands that there may be restrictions on his or her ability to resell any shares acquired on exercise of an Option, including insider trading laws and the Company's insider trading policy, as well as other restrictions that will apply if the Optionee is an "affiliate" of the Company.  By making payment upon exercise of an Option, the Optionee shall be deemed to have reaffirmed, as of the date of such payment, the representations made in this Section 11.
		

		
			 
		

		
			(b)Legend on Stock Certificate.  The Optionee understands that, any shares of Common Stock acquired upon exercise of an Option may not have been registered under the Securities Act nor the securities laws of any state.  Accordingly, unless all such registrations are then in effect, all stock certificates representing shares of Common Stock issued to the Optionee upon exercise of an Option shall have affixed thereto a legend substantially in the following form, in addition to any other legends required by applicable state law:
		

		
			 
		

		
			"THE SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, NOR THE SECURITIES LAW OF ANY STATE.  CONSEQUENTLY, THE SHARES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION, OR AN EXEMPTION FROM REGISTRATION UNDER SUCH LAWS."
		

		 

		

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			12.Miscellaneous
		

		
			 
		

		
			In the event that the Plan terminates prior to the expiration date of the Options granted hereunder, this Option Agreement shall incorporate by reference all applicable provisions of the Plan until the earlier of  the close of business on the day the Option(s) granted hereunder expire, or  the date on which all shares available for issuance hereunder shall have been issued pursuant to the exercise of Options granted hereunder.
		

		
			 
		

		
			Except as provided herein or in the Plan, this Option Agreement may not be amended or otherwise modified unless evidenced in writing and signed by the Company and the Optionee.
		

		
			 
		

		
			All notices under this Option Agreement shall, unless otherwise provided herein, be mailed or delivered by hand to the parties at their respective addresses set forth beneath their names below or at such other address as may be designated in writing by either of the parties to the other.
		

		
			 
		

		
			This Option Agreement shall be governed by and construed in accordance with the laws of the State of Delaware.
		

		
			 
		

		
			This Option Agreement shall be binding upon and inure to the heirs, successors and assigns of the Optionee (subject, however, to the limitations set forth herein with respect to assignment of the Options or rights therein) and the Company, and shall be construed in a manner that is consistent with the provisions of the Plan.
		

		
			 
		

		
			 
		

			
					
						Date of Grant:

					
					
						 

					
					
						Universal Stainless & Alloy Products, Inc.

				
	
					
						 

					
					
						 

					
					
						By:

					
					
						_______________________________

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Address:

					
					
						 

				

		
			 
		

		

		

		 

		

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		OPTIONEE'S ACCEPTANCE
		

		
			 
		

		
			 
		

		
			The undersigned hereby accepts the foregoing Option Agreement regarding Stock Options granted as of and agrees to the terms and conditions thereof.  The undersigned hereby acknowledges receipt of a copy of the Company's Omnibus Incentive Plan.  The undersigned understands and agrees that the Option Agreement is not meant to interpret, extend, or change the Plan in any way, nor to represent the full terms of the Plan.  If there is any discrepancy, conflict or omission between this Option Agreement and the provisions of the Plan as interpreted by the Company, the provisions of the Plan shall govern.
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						OPTIONEE:

				
	
					
						 

					
					
						 

					
					
						By:

					
					
						______________________________

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						«FirstName» «LastName»

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						«JobTitle»

				
	
					
						 

					
					
						 

					
					
						Address:

					
					
						«Address1»

					
						«Address2»

					
						«City»,  «State»    «PostalCode»

				

		
			 
		

		
			 
		

		 

		

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