Document:

Exhibit 10.2 

 

FORM OF EXECUTIVE RESTRICTED STOCK
UNIT AGREEMENT

 

This Restricted 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 [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 Restricted Stock Units. Pursuant to Section 9
of the Plan, the Company hereby issues to the Participant on the Grant Date an Award consisting of [NUMBER] Restricted Stock Units
(the “Restricted Stock Units”). Each Restricted Stock Unit represents the right to receive one Common Share,
subject to the terms and conditions set forth in this Agreement and the Plan. The Restricted Stock 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 Restricted Stock 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, provided that the Participant remains in continuous service through the applicable
vesting date, the Restricted Stock Units will vest in accordance with the schedule set forth in the chart below (the period during
which restrictions apply, the “Restricted Period”). Once vested, the Restricted Stock Units shall become “Vested
Units.”

 

	Vesting Date	 	Percentage of Vested Units	 	[Number of Vested Units]
	[First anniversary of the Grant Date]	 	25%	 	 
	[Second anniversary of the Grant Date]	 	25%	 	 
	[Third anniversary of the Grant Date]	 	25%	 	 
	[Fourth anniversary of the Grant Date]	 	25%	 	 

 

4.            Termination
of Service/Employment. 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 Restricted Stock Units
have vested, the Participant’s unvested Restricted Stock 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, a minimum of 12.5% of the Restricted
Stock Units shall become Vested Units as of the date of such termination of employment. 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
any portion of the Participant’s Restricted Stock Units scheduled to become ‎vested within twelve (12) months after the
Participant’s termination date shall be vested on his or ‎her termination date; and (ii) ‎if the Participant
experiences a Qualifying Termination, any Restricted Period in effect on the date of such Qualifying Termination shall expire as
of such date.

 

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5.            Restrictions.
Subject to any exceptions set forth in this Agreement or the Plan, during the Restricted Period and until such time as the Restricted
Stock Units are settled, the Restricted Stock 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 Restricted Stock Units or the rights relating thereto shall be wholly ineffective and, if any such attempt
is made, the Restricted Stock 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 Restricted Stock Units
unless and until the Restricted Stock Units vest and are settled by the issuance of such Common Shares. Upon and following the
settlement of the Restricted Stock Units, the Participant shall be the record owner of the Common Shares underlying the Restricted
Stock 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 Restricted
Stock 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 Restricted Stock 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 Restricted Stock Units to which they are attributable and shall be paid on the same date that the Restricted
Stock 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 Restricted Stock Units that are cancelled will not be paid and will be immediately forfeited upon cancellation
of the Restricted Stock Units.

 

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7.            Settlement
of Restricted Stock Units. 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 Restricted Stock 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 Restricted Stock Units, less an amount equal to any required tax withholdings.

 

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 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 Restricted Stock 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.

 

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 Restricted Stock 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 Restricted Stock 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 Restricted Stock 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.

 

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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 Restricted Stock Units or the subsequent sale of any shares; and (b) does
not commit to structure the Restricted Stock 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 Restricted Stock 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.

 

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.

 

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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 Restricted Stock 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 Restricted Stock Units in this Agreement does not create any contractual
right or other right to receive any Restricted Stock 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 Restricted Stock 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.

 

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 shall not be delivered 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 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 shall be delivered to the Participant on such New Payment Date, and any remaining shares 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 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.

 

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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 Restricted Stock 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 Restricted Stock 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 Restricted
Stock 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:	 

 

    7EX-4.1

 AUBURN NATIONAL BANCORPORATION, INC AND SUBSIDIARIES 

EXHIBIT 4.1 
 DESCRIPTION OF
THE REGISTRANT’S SECURITIES 
 REGISTERED PURSUANT TO SECTION 12 OF THE 

SECURITIES EXCHANGE ACT OF 1934 
 The following
summarizes the terms of certain securities of Auburn National Bancorporation, Inc., a Delaware corporation (the “Company”). The Company’s common stock is registered under Section 12(b) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”). The following summary does not purport to be complete and is qualified in its entirety by reference to the Company’s Certificate of Incorporation (as amended, the
“Charter”) and Amended and Restated Bylaws (as amended, the “Bylaws”), each previously filed with the U.S. Securities and Exchange Commission, as well as reference to federal and state banking laws and regulations
and the Delaware General Corporations Law (the “DGCL”). 
 Authorized Capital 

The Company’s authorized capital stock consists of 8,500,000 shares of common stock, $.01 par value per share and 200,000 shares of preferred stock, $.01
par value per share. 
 Common Stock 
 Voting
Rights. Each holder of common stock is entitled to one vote for each share held on all matters on which our shareholders are entitled to vote. Directors are elected by a majority vote, and no shareholder has the right to cumulative voting with
respect to the election of directors. 
 Dividend Rights. Subject to the prior rights of holders of any then-outstanding shares of preferred stock,
each share of common stock has equal rights to participate in dividends when, as and if declared by the board of directors out of funds legally available therefor. 

Liquidation Rights. Subject to the prior rights of creditors and the satisfaction of any liquidation preference granted to the holders of any
outstanding shares of preferred stock, if any, in the event of a liquidation, the holders of common stock will be entitled to share ratably in any assets remaining after payment of all debts and other liabilities. 

Other. Holders of common stock have no subscription, conversion or preemptive rights. 

Exchange and Trading Symbol. The common stock is listed for trading on the NASDAQ Global Market under the symbol “AUBN.” 

Transfer Agent and Registrar. The transfer agent and registrar for the common stock is Computershare Investor Services LLC. 

Preferred Stock 
 Shares of preferred stock may be issued
for any purpose and in any manner permitted by law, in one or more distinctly designated series, including as a dividend or for such consideration as the board of directors may determine by resolution or resolutions adopted from time to time. The
board of directors is expressly authorized to fix and state, by resolution or resolutions adopted from time to time prior to the issuance of any shares of a particular series of preferred stock, the designations, voting powers (if any), preferences,
and relative, participating, optional or other special rights, and qualifications, limitations or restrictions thereof. The rights of the holders of the common stock will generally be subject to the rights of the holders of any existing outstanding
shares of preferred stock with respect to dividends, liquidation preferences and other matters. 
 As of the date hereof, the Company has no outstanding
shares of preferred stock. 

 Anti-takeover Effects 

Certain provisions of the Charter and Bylaws could make a merger, tender offer or proxy contest more difficult, even if such events were perceived by many of
shareholders as beneficial to their interests. These provisions include (1) requiring, under certain circumstances, that a “Business Combination” (as defined in the Charter) be approved by (i) holders of at least 80% of the
outstanding shares entitled to vote, and (ii) by a majority of shares held by persons other than “Related Persons” (as defined in the Charter), (2) prohibiting shareholders from removing directors without cause, and, in order to
remove a director for cause, requiring approval of (i) at least 80% of the outstanding shares entitled to vote and (ii) a majority of shares held by persons other than “Related Persons,” (3) advance notice for nominations of
directors and shareholders’ proposals, and (4) authority to issue “blank check” preferred stock with such designations, rights and preferences as may be determined from time to time by the board of directors. In addition, as a
Delaware corporation, the Company is subject to Section 203 of the Delaware General Corporation Law which, in general, prevents an “interested shareholder,” defined generally as a person owning 15% or more of a corporation’s
outstanding voting stock, from engaging in a business combination with the corporation for three years following the date that person became an interested shareholder unless certain specified conditions are satisfied. 

Restrictions on Ownership 
 The ability of a third party
to acquire the Company is limited under applicable U.S. banking laws and regulations. The Bank Holding Company Act, or BHC Act, requires any bank holding company to obtain Federal Reserve approval prior to acquiring, directly or indirectly, more
than 5% of the outstanding voting securities of the bank holding company. Any “company” (as defined in the BHC Act) other than a bank holding company would be required to obtain Federal Reserve approval before acquiring “control”
of a bank holding company. “Control” generally means (i) the ownership or control of 25% or more of a class of voting securities, (ii) the ability to elect a majority of the directors or (iii) the ability otherwise to
exercise a controlling influence over management and policies. A holder of 25% or more of the outstanding common stock of a bank holding company, other than an individual, is subject to regulation and supervision as a bank holding company under the
BHC Act. In addition, under the Change in Bank Control Act of 1978, as amended, and the Federal Reserve’s regulations thereunder, any person, either individually or acting through or in concert with one or more persons, is required to provide
notice to the Federal Reserve prior to acquiring, directly or indirectly, 10% or more of the outstanding voting securities of a bank holding company, and receive nonobjection from the Federal Reserve.

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