Document:

Exhibit

 

ARCHROCK, INC. 

LONG-TERM INCENTIVE AWARD NOTICE AND AGREEMENT
Stock-Settled Performance Award Schedule 

Archrock, Inc. (the “Company”) has granted to you (the “Participant”) an equity award under the Archrock, Inc. 2013 Stock Incentive Plan (as may be amended from time to time, the “Plan”).  All capitalized terms not explicitly defined in the Terms and Conditions and in this Schedule (together constituting the Equity Award Notice and Agreement (the “Award Notice”)) shall have the respective meanings ascribed to them in the Plan.  
	
		
	Grant Date
	January 25, 2019

	Award Type
	Stock-settled performance units, the payout of which is based on the attainment of certain performance objectives (the “Performance Units”).  Each Performance Unit is granted in tandem with a corresponding Dividend Equivalent.
The Award is stated at target; however, the actual number of Performance Units that becomes earned and payable hereunder may be greater or less than the target number.

	Important Documents
	Click the hyperlink to access the following documents:
Archrock, Inc. 2013 Stock Incentive Plan
2013 Stock Incentive Plan Prospectus 

	Vesting Schedule
	One hundred percent (100%) of the Earned Units subject to this Award will vest on January 25, 2022 (the “Vest Date”) upon satisfaction of the following criteria:
Performance Achievement.  Your Award will become payable (as provided below) at 0% to 200% of the target Performance Units awarded based on the achievement of the pre-determined Performance Measures over the Performance Period as set out herein.  The target Performance Units equals the number of Performance Units (or the cash equivalent thereof) that would be earned and paid if the Performance Measures are met at the target level over the Performance Period; and
Employment Criteria.  Except as set forth below, you must remain in continuous service as an Employee of the Company or one of its Affiliates at all times from the Grant Date up to and including the Vest Date for the Award to vest.

	Stockholder Rights
	The Performance Units represent an unfunded, unsecured and contingent right to receive payment.  You have no rights as a stockholder with respect to any Performance Units unless and until you receive shares of Common Stock of the Company in respect of your vested Earned Units. The grant of the Performance Units under your Award shall be implemented by a credit to a bookkeeping account maintained by the Company.

	Termination of Service – Voluntary or Involuntary
	If you terminate employment for any reason (other than death or Disability), the unvested portion of your Award (after taking into account any accelerated vesting that occurs in connection with such termination, if any) will be automatically forfeited on the date of such termination unless the Committee directs otherwise.

	Termination of Service – Death or Disability
	If you terminate employment due to death or Disability, the unvested portion of your Award (after taking into account any accelerated vesting that occurs in connection with such termination, if any) will immediately vest in full and all restrictions applicable to your Award will cease as of that date.

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	Termination of Service Following a Change of Control
	Notwithstanding anything to the contrary in this Award Notice, this section will govern the vesting of your Award in the event of your Termination of Service on and after the date a Corporate Change is consummated.
(a)     Determination of Achievement Percentage.  
If a Corporate Change is consummated prior to the end of the Performance Period and you are employed by the Company or an Affiliate as of such consummation date, then
(i)    the Committee, in its discretion, shall determine in good faith the Achievement Percentage based on performance during the portion of the Performance Period commencing on the first day of the Performance Period and ending on the date the Corporate Change is consummated, or 
(ii)    if the Committee determines, in its discretion, that no such determination can reasonably be made, then the Achievement Percentage shall be deemed to be 100% (and your Earned Units (as defined below) will be determined based upon such Achievement Percentage).

(b)    Termination of Service Following a Corporate Change.  
If your status as an Employee of the Company or an Affiliate is terminated on or within eighteen (18) months following the date a Corporate Change is consummated (i) by the Company or such Affiliate without Cause, (ii) by you for Good Reason or (iii) as a result of your death or Disability, then the unvested portion of your Award as of the date of your Termination of Service as an Employee will immediately vest in full as of the date of your Termination of Service as an Employee (the “Corporate Change Vest Date”).  
If your status as an Employee is terminated by the Company with Cause or by you without Good Reason on or after the date the Corporate Change is consummated, then the unvested portion of your Award and the Dividend Equivalents (including any amounts credited thereunder) corresponding with such unvested portion of your Award will be automatically forfeited on the date of your Termination of Service as an Employee.  
Unless otherwise provided in a written agreement between the Company or an Affiliate and you, “Good Reason” means the occurrence of any of the following without your express written consent:  
(i)    A reduction of 10% or more of your base salary;  
(ii)    Your being required to be based at any other office or location of employment more than 50 miles from your primary office or location of employment immediately prior to the Corporate Change; or
(iii)    The willful failure by the Company or an Affiliate to pay you your compensation when due;  
provided, however, unless otherwise provided in a written agreement between the Company or an Affiliate and you, that Good Reason does not exist with respect to a matter unless you give the Company or an Affiliate, as applicable, a notice of termination due to such matter within 20 days of the date such matter first exists.  If you fail to give a notice of termination timely, you shall be deemed to have waived all rights you may have under the Award Notice with respect to such matter.  The Company or an Affiliate will have 30 days from the date of your notice of termination to cure the matter.  If the Company or an Affiliate cures the matter, your notice of termination shall be deemed rescinded.  If the Company or an Affiliate (as applicable) fails to cure the matter timely, your status as an Employee shall be deemed to have been terminated by the Company for Good Reason at the end of the 30-day cure period.

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	Dividends / Dividend Equivalent Rights
	Re-written/clarified:
A dividend equivalent right (a “DER”) is granted in tandem with each Performance Unit granted hereunder and is subject to the same terms as the associated Performance Unit.  A DER is a right to receive the equivalent value in cash of any dividend (including any extraordinary or non-recurring dividend) paid on a share of Common Stock (the “Dividend Equivalent”).  
The DER shall remain outstanding from the Grant Date until the earlier of the vesting and payment or the forfeiture of the Performance Unit to which it corresponds (the “DER Period”).
During the DER Period and no later than thirty (30) days following the date on which a dividend is paid to the Company’s stockholders, the Dividend Equivalent on each unvested Performance Unit shall be credited and entered into a bookkeeping account on your behalf.  However, payments shall not be made to you prior to the date on which the following two conditions are satisfied:  (1) the associated Performance Unit becomes an Earned Unit and (2) the associated Performance Unit vests.  
Dividend Equivalent book entry credits shall be forfeited if the associated Performance Unit is forfeited (1) because it does not become an Earned Unit or (2) due to your termination of service prior to vesting of the associated Performance Unit.
Upon the vesting of a Performance Unit, the book-entry Dividend Equivalents payable on such Performance Unit shall be paid in cash in a single lump sum no later than sixty (60) days following the Vest Date.  Upon expiration of the DER Period, the DERs on the Performance Unit shall automatically terminate and no further Dividend Equivalents shall be allocated thereunder.

	Payment
	As soon as administratively practicable following the conclusion of the Performance Period (or, if earlier, the date on which a Corporate Change is consummated), the Committee shall certify in writing the level of performance achieved with respect to the Performance Measures (the “Achievement Percentage”).  The actual number of Performance Units payable under your Award shall be equal to the product of the target number of Performance Units multiplied by the Achievement Percentage or, in the event of your termination due to your death or Disability during the Performance Period, a Qualifying Termination during the Performance Period or a Corporate Change during the Performance Period in connection with which the Committee determines, in its discretion, it cannot reasonably determine the Achievement Percentage, 100% of the Performance Units (in any case, such number of Performance Units payable under your Award, the “Earned Units”).  
As soon as administratively practicable after your Earned Units vest, but in no event later than the sixtieth (60th) day thereafter, you will receive payment in respect of such vested Earned Units in the form of an equivalent number of shares of Common Stock of the Company as of the Vest Date, Accelerated Vest Date or Corporate Change Vest Date of such vested Earned Units. Payments in respect of any corresponding Dividend Equivalents shall be paid in the form of cash.  
This Award and the Dividend Equivalents are intended to be exempt under Section 409A of the Code (“Section 409A”) under the short-term deferral exclusion and will be interpreted and operated consistent with such intent.  If, for any reason, the Company determines that this Award and/or the Dividend Equivalents are subject to Section 409A, the Company shall have the right in its sole discretion (without any obligation to do so or to indemnify you or any other person for failure to do so) to adopt such amendments to the Plan or this Award Notice, or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, as the Company determines are necessary or appropriate to provide for either the Performance Units and/or Dividend Equivalents to be exempt from the application of Section 409A or to comply with the requirements of Section 409A.  The Dividend Equivalents and any amounts that may become distributable in respect thereof shall be treated separately from the Performance Units and the rights arising in connection therewith for purposes of Section 409A (as defined below) (including for purposes of the designation of the time and form of payments required by Section 409A).

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	Performance Features
	See Exhibit.

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ARCHROCK, INC. 

LONG-TERM INCENTIVE AWARD NOTICE AND AGREEMENT
Terms and Conditions 

Archrock, Inc. (the “Company”) has granted to you (the “Participant”) an equity award under the Archrock, Inc. 2013 Stock Incentive Plan (as may be amended from time to time, the “Plan”).  All capitalized terms not explicitly defined in these Term and Conditions and the Schedule (together constituting the Long-Term Incentive Award Notice and Agreement (the “Award Notice”) but defined in the Plan shall have the respective meanings ascribed to them in the Plan.  
The material terms of your Award are provided below and in the Schedule.
1.No Right to Continued Service.  Nothing in this Award Notice guarantees your continued service as an Employee, Director or other service provider of the Company or any of its Affiliates or interferes in any way with the right of the Company or its Affiliates to terminate your status as an Employee, Director or other service provider at any time.
2.Non–Transferability.  Prior to vesting, you cannot sell, transfer, pledge, exchange or otherwise dispose of your Award except as otherwise set forth in Paragraph XV(i) of the Plan. 
3.Data Privacy.  You consent to the collection, use, processing and transfer of your personal data as described in this paragraph.  You understand that the Company and/or its Affiliates hold certain personal information about you (including your name, address, telephone number, date of birth, social security number, social insurance number, etc. (“Data”)) for the purpose of implementing, administering, and managing the Plan.  You also understand that the Company and/or its Affiliates will transfer this Data amongst themselves as necessary for the purpose of implementing, administering and managing your participation in the Plan, and that the Company and/or its Affiliates may also transfer this Data to any third parties assisting the Company in the implementation, administration and management of the Plan.  You authorize the Company, its Affiliates, and any third parties assisting the Company and/or its Affiliates to receive, possess, use, retain and transfer the Data, in electronic or other form, for these purposes.  You also understand that you may, at any time, review the Data, require any necessary changes to the Data or withdraw your consent in writing by contacting the Company.  You further understand that withdrawing your consent may affect your ability to participate in the Plan.
4.Withholding.  Your Award, and any dividends or Dividend Equivalents with respect to the Award paid as compensation income, is subject to applicable income and/or social insurance tax withholding obligations (including, without limitation, any applicable FICA, employment tax or other social security contribution obligations).  If you are an Employee, the Company and its Affiliates may, in their sole discretion, withhold, as applicable, cash payable to you, cash from your regular earnings or a sufficient number of shares of Common Stock that are otherwise issuable to you pursuant to your Award (including the payment of associated dividends or Dividend Equivalents, as referenced above) to satisfy any such withholding obligations.  If you are a Director, the Company and its Affiliates may elect, with your consent, to withhold a sufficient number of shares of Common Stock that are otherwise issuable or payable to you pursuant to this Award to satisfy any applicable withholding obligations.
5.Plan Governs.  This Award Notice is subject to the terms of the Plan, a copy of which is available at no charge by accessing your account or which will be provided to you upon request as indicated herein.  All the terms and conditions of the Plan, as may be amended from time to time, and any rules, guidelines and procedures which may from time to time be established pursuant to the Plan, are hereby incorporated into this Award Notice, including, but not limited to, Paragraphs XV(l) (“Section 409A of the Code”) and XV(j) 

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(“Clawback”) thereof. In the event of a discrepancy between this Award Notice and the Plan, the Plan shall govern. 
6.Adjustment.  This Award shall be subject to adjustment as provided in Paragraph XIII of the Plan. 
7.Modifications.  This Award Notice can be amended at any time in a writing signed by you and the Company; provided, however, the Company may amend this Award Notice without your written or electronic consent if the amendment is not adverse to your rights under this Award Notice or the Plan.  Section 8 below can only be amended by a written agreement signed by you and the Company. 
8.Non-Solicitation/Confidentiality Agreement. The greatest assets of the Company and its Affiliates (“Archrock” in this Section) are its employees, customers, and confidential information.  In recognition of the increased risk of unfairly losing any of these assets, Archrock has adopted this Non-Solicitation/Confidentiality Agreement as set forth in this Section, the terms of which you accept and agree to by accepting the Award (the “Agreement”). 
a.    In order to assist you with your employment or services to Archrock, Archrock has provided and shall continue to provide you with access to confidential and proprietary operational information and other confidential information which is either information not known by actual or potential competitors and third parties or is proprietary information of Archrock (“Confidential Information”).  Such Confidential Information includes, without limitation, information regarding Archrock’s customers and suppliers; employees; business operations; product lines; services; pricing and pricing formulae; machines and inventions; research; knowhow; manufacturing and fabrication techniques; engineering and product design specifications; financial information; business plans and strategies; information derived from reports and computer systems; work in progress; marketing and sales programs and strategies; cost data; methods of doing business; ideas; and materials or information prepared or performed for, by or on behalf of Archrock.  You agree, during your employment or service for Archrock and at all times thereafter, not to use, divulge, furnish, or make accessible to any third party, company, or other entity or individual, without Archrock’s written consent, any Confidential Information of Archrock, except as required by your job-related duties to Archrock.  Notwithstanding the foregoing or anything herein to the contrary, you understand that (a) nothing contained herein will prohibit you from filing a charge with, reporting possible violations of federal law or regulation to, participating in any investigation by, or cooperating with any governmental agency or entity or making other disclosures that are protected under the whistleblower provisions of applicable law or regulation; (b) nothing herein is intended to or will prevent you from communicating directly with, cooperating with, or providing information (including trade secrets) in confidence to, any federal, state or local government regulator (including, but not limited to, the U.S. Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission, or the U.S. Department of Justice) for the purpose of reporting or investigating a suspected violation of law, or from providing such information to your attorney or in a sealed complaint or other document filed in a lawsuit or other governmental proceeding; and (c) pursuant to 18 USC Section 1833(b), you will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made: (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

b.    Upon request, and, in any event, without request whenever your service as an Employee or other service provider of Archrock ends for any reason, you agree to immediately return:  (i) all documents, whether in hard copy or electronic form, containing or referring to Archrock’s Confidential 

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Information as may be in your possession and/or control; (ii) all Archrock computer and computer-related equipment and software; and (iii) all other Archrock property, forms, files, records, documents, drawings, specifications, lists, equipment and other similar items relating to Archrock’s business coming into your possession and/or control during your employment or service for Archrock. 

c.    In connection with your acceptance of the Award under the Plan, and in exchange for the consideration provided hereunder, including, without limitation, the Award and the Confidential Information, you agree that you will not, during your service as an Employee or other service provider  of Archrock, and for eighteen (18) months thereafter, directly or indirectly, for any reason, for your own account or on behalf of or together with any other person, entity or organization, encourage, entice, solicit or otherwise induce any current employee of Archrock (or person who was employed with Archrock in the 90 days prior to your separation from employment or service with Archrock) to leave Archrock to join a Competitive Business.  A “Competitive Business” means a business that provides natural gas compression services; maintenance, repair, recondition, or overhaul of natural gas compression equipment; the sale of parts and components for natural gas compression equipment; or any other business which Archrock may be engaged in at the time of your separation from employment or service with Archrock.  With respect to the enforcement of this Agreement in Louisiana this paragraph shall be enforceable only in the Restricted Area as defined below.

d.    In connection with your acceptance of the Award under the Plan, and in exchange for the consideration provided hereunder, including, without limitation, the Award and the Confidential Information, you agree that you will not, during your service as an Employee or other service provider of Archrock, and for eighteen (18) months thereafter, directly or indirectly, for your own account or on behalf of or together with any other person, entity or organization: (i) divert or attempt to divert the business of a Covered Customer to a Competitive Business in the Restricted Area, or (ii) perform services for a Covered Customer on behalf of a Competitive Business in the Restricted Area.  “Restricted Area” means: (x) for a Participant residing in Louisiana at the time this Agreement is to be enforced against the Participant, the Parishes in Louisiana of Bossier, Caddo, Calcasieu, Cameron, Claiborne, De Soto, East Baton Rouge, East Carroll, Evangeline, Franklin, Iberia, Jackson, Jefferson, Jefferson Davis, La Salle, Lafayette, Lafourche, Lincoln, Livingston, Orleans, Ouachita, Plaquemines, Pointe Coupee, Rapides, Red River, Richland, Sabine, Saint Bernard, Saint Charles, Saint Landry, Saint Martin, Saint Mary, Tangipahoa, Terrebonne, Union, Vermilion, Vernon, Webster; and (y) for a Participant residing in any state other than Louisiana at the time this Agreement is to be enforced against the Participant, the Restricted Area shall be the Participant’s state of residence and any other state in which Participant provided work-related services to Archrock during the twenty-four (24) month period immediately prior to Participant’s separation from employment or service from Archrock. “Covered Customer” means any customer of Archrock with whom the Participant had contact on behalf of Archrock during the twenty-four (24) month period immediately prior to Participant’s separation from employment or service or any customer of Archrock about whom Participant  had access to Confidential Information.

e.    You agree that (i) the restrictive covenants in this Section are ancillary to and part of an otherwise enforceable agreement (this Award Notice); (ii) the consideration provided by Archrock under this Section is not illusory and both parties enter this agreement intending to be legally bound; (iii) the restrictions of this Section are necessary and reasonable for the protection of the legitimate business interests and goodwill of Archrock, including Archrock’s trade secrets; and (iv) the consideration given by Archrock under this Section, including without limitation, the Award and the Confidential Information, gives rise to Archrock’s interests in the covenants set forth in this Section. 

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f.    You and Archrock agree that it was both parties’ intention to enter into a valid and enforceable agreement.  You agree that if any covenant contained in this Section is found by a court of competent jurisdiction to contain limitations as to time, geographic area, or scope of activity that are not reasonable and impose a greater restraint than is necessary to protect the goodwill, trade secrets, or other business interests of Archrock, then the court shall reform the covenant to the extent necessary to cause the limitations contained in the covenant as to time, geographic area, and scope of activity to be restrained to be reasonable and to impose a restraint that is not greater than necessary to protect the goodwill, trade secrets, and other business interests of Archrock.

g.    In the event that Archrock determines that you have breached or attempted or threatened to breach any term of this Section, in addition to any other remedies at law or in equity Archrock may have available to it, it is agreed that Archrock shall be entitled, upon application to any court of proper jurisdiction, to a temporary restraining order or preliminary injunction (without necessity of (i) proving irreparable harm, (ii) establishing that monetary damages are inadequate, or (iii) posting any bond with respect thereto, where permitted by law) against you prohibiting such breach or attempted or threatened breach by proving only the existence of such breach or attempted or threatened breach.  You agree that, where permitted by law, the period during which the covenants contained in this Section are in effect shall be computed by excluding from such computation any time during which you are in violation of any provision of this Section.

h.    You hereby acknowledge that the Award being granted to you under the Plan is an extraordinary item of compensation and is not part of, nor in lieu of, your ordinary wages for services you may render to Archrock.

i.    You understand that this agreement is independent of and does not affect the enforceability of any other restrictive covenants by which you have agreed to be bound in any other agreement with Archrock.

j.    Notwithstanding any other provision of this Award, the provisions of this Section shall be governed, construed and enforced in accordance with the laws of the State of Texas, without giving effect to the conflict of law principles thereof.  Any action or proceeding seeking to enforce any provision of this Section shall be brought only in the courts of Harris County, Texas, or, if it has or can acquire jurisdiction, in the United States District Court for the Southern District of Texas, Houston, Division, and the parties consent to the jurisdiction of such courts in any such action or proceeding and waive any objection to jurisdiction and venue laid therein.  However, only with respect to the enforcement of this Agreement in Louisiana, Louisiana law shall control and venue shall be in a parish with appropriate jurisdiction in Louisiana. 

9.Additional Information.  If you require additional information concerning your Award, contact the Company’s Stock Plan Administrator at 281.836.8055 or at mystock@archrock.com.  You may also contact UBS at 713.654.4713. 
10.Conformity to Applicable Law.  You acknowledge that the Plan and the Award Notice are intended to conform to the extent necessary with all applicable laws, including, without limitation, the provisions of the Exchange Act, and any and all regulations and rules promulgated thereunder by the Securities and Exchange Commission, and state securities laws and regulations.  Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Award is granted, only in such a manner as to conform to applicable law.  To the extent permitted by applicable law, the Plan and the Award Notice shall be deemed amended to the extent necessary to conform to applicable law. 

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11.Limitations Applicable to Section 16 Persons.  Notwithstanding any other provision of the Plan or this Award Notice, if you are subject to Section 16 of the Exchange Act, the Plan, the Award and the Award Notice shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule.  To the extent permitted by applicable law, the Award Notice shall be deemed amended to the extent necessary to conform to such applicable exemptive rule. 
12.Electronic Delivery.  The Company may deliver any documents related to the Award granted under this Award Agreement and participation in the Plan by electronic means or to request Participant’s consent to participate in the Plan by electronic means.  Participant hereby consents to receive such documents by electronic delivery and, if requested, to agree to participate in the Plan and sign the Award Agreement through an on-line or electronic system established and maintained by the Company or another third party designated by the Company. 
13.Participant Acceptance.  If you agree with the terms and conditions of this Award, indicate your acceptance in UBS One Source by selecting “Accept.”  To decline the Award, select “Reject.”  
If you reject the Award or do not accept the Award within 45 days of the Grant Date, the Award will be forfeited.  

9usap-ex108_41.htm

 

 
 
 

Exhibit 10.8

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT made as of the 5th day of November 2018, by and between UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC., a Delaware corporation (the "Company"), and Alyssa H. Snider (the "Executive").

WITNESSETH:

In consideration of the covenants and agreements herein contained, and intending to be legally bound hereby, the Company and Executive agree as follows:

Article 1. - Employment

	
1.1.
	
Employment.  The Company agrees to employ Executive, and Executive agrees to serve the Company, for the period stated in Article 2 hereof (the "Term of Employment") and upon the other terms and conditions herein provided.

	
1.2.
	
Position and Responsibilities.  The Company employs Executive, and Executive agrees to serve as Vice President of Human Resources and Chief Human Resource Officer of the Company and to accept such other responsibilities as may be assigned to Executive by the Company from time to time during the Term of Employment. 

	
1.3.
	
Duties.  During the Term of Employment, Executive shall devote all of Executive’s business time, attention, skill and efforts to the faithful performance of Executive’s duties hereunder.

	
1.4.
	
No Breach of Other Obligations.  The Executive represents that, in the course of performing services for the Company, Executive will not breach any agreement Executive may have with others with respect to confidential information and will not bring to the Company or use in any way any materials or documents obtained from others under an agreement of confidentiality.

 

Article 2. - Term

The Term of Employment shall commence as of November 5, 2018 (the "Effective Date") and shall continue until November 30, 2019 (the "Initial Term").  Thereafter, subject to the termination provisions of this Agreement, this Agreement will be automatically extended for successive one-year terms unless either party provides written notice to the other party on or before October 1st of any year, of his/her or its election not to extend the term of this Agreement.

 

 

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Article 3. - Compensation

	
3.1.
	
Salary.  As compensation to the Executive for the performance of services hereunder, the Company shall pay to the Executive an annual base salary (the "Salary") of $215,000.00.  Installments of the Salary shall be paid to the Executive in accordance with the standard procedure of the Company, which at the present time is once every two weeks.  During the period of this Agreement, Executive's salary shall be reviewed at least annually and may be increased if the Board of Directors of the Company acting after approval of the Compensation Committee, determines that an increase is appropriate on the basis of the types of factors it generally takes into account in increasing the salaries of employees similarly situated in the Company.

	
3.2.
	
Reimbursement of Expenses.  The Company will reimburse the Executive for those customary and necessary business expenses incurred by Executive in the performance of Executive’s duties and activities on behalf of the Company.  Except as provided in this Agreement, such expenses will be reimbursed only on presentation by the Executive of appropriate documentation to substantiate such expenses pursuant to the policies and procedures of the Company governing reimbursement of business expenses to its executives.

	
3.3.
	
Participation in Plans.  The Executive shall be entitled to participate in any life, medical, dental, health, hospitalization, travel, accident and/or disability insurance plans and in any sick leave and/or salary continuation plan, vacation (which shall not be less than four (4) weeks per calendar year), holiday pay, retirement or employee benefit plan or program generally offered by the Company to its salaried employees.  In addition, Executive shall be entitled to participate in the Variable Incentive Compensation plan as described on Schedule A attached hereto.

 

Article 4. - Termination of Employment

 

	
4.1.
	
Definitions.  For the purposes hereof:

	
(a)
	
"Disability" shall be deemed to have occurred when the Executive is eligible, due to a health condition, to collect benefits under the Company’s short term disability plan and has been determined by the Board of Directors to be unable to perform substantially the duties associated with the Executives position for a period of three months.

	
(b)
	
 "Cause" shall mean any of the following:  (i) Executive's personal dishonesty or willful misconduct; (ii) Executive's willful violation of any law or material rule or regulation, provided that such violation is demonstrably injurious to the assets, operations or business prospects of the Company; (iii) the conversion or embezzlement for the personal benefit of the Executive of corporate funds or property or a material business opportunity of the Company; (iv) the misuse by the Executive for his/her personal benefit of any trade secrets or other information of the Company in violation of the provisions of Article 7 of this Agreement; or (v) Executive's material breach of any other provision of this Agreement which is not cured within thirty (30) days of receipt of notice of such breach from Company.

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(c)
	
"Good Reason" shall, absent the Executive’s consent to such action, mean the occurrence of any one of the following: (i) following a Change of Control, the removal of the Vice President of Finance, Chief Financial Officer and Treasurer (by reason other than death, Disability or Cause); (ii) any breach by the Company of a material obligation under this Agreement; (iii) a substantial and material alteration in the nature or status of Executive’s duties and responsibilities that renders the Executive’s position to be of substantially less responsibility or scope; (iv) a material reduction by the Company in the Executive’s Salary, except for proportional across-the-board salary reductions similarly affecting all senior executives of the Company; or (v) any material reduction by the Company of the benefits, taken as a whole, enjoyed by the Executive on the date of this Agreement under any savings, life insurance, medical, health and accident, disability or other employee welfare benefit plans or programs, including vacation programs, provided that this paragraph (v) shall not apply to any proportional across the board reduction or action similarly affecting all senior executives of the Company.

Notwithstanding the foregoing, no event of "Good Reason" shall be deemed to have occurred unless Executive provides to the Chairman of the Compensation Committee of the Board of Directors of the Company written notice of the facts and circumstances which Executive believes constitutes Good Reason under this Section 4.1(c) within 30 days of such initial occurrence and such facts and circumstances are not corrected or otherwise cured by the Company within thirty (30) days of receipt thereof. Termination by Executive for Good Reason must occur within 90 days of the initial occurrence of the Good Reason event. 

For purposes of this Agreement, a Change of Control shall be deemed to have occurred on the earlier of (x) if, in any transaction or series of related transactions consummated in a ninety day period, more than fifty percent (50%) of the then outstanding voting common stock of the Company is sold to a person or group; (y) a merger or consolidation of the Company and another entity in which the Company is not the surviving corporation or in which more than fifty percent(50%) of the equity ownership of the Company changes, or (z) the sale of 50% or more of all of the assets of the Company. 

	
(d)
	
"Notice of Termination" shall mean written notice which shall indicate the specific termination or resignation provisions in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for such termination or resignation under the provision so indicated and the Company shall submit to the Executive a certified statement signed by the Chairman of the Compensation Committee of the Board of Directors of the Company approving such termination in the case of a Termination by the Company for Cause or Without Cause.

	
(e)
	
"Date of Termination" shall mean the date specified in the Notice of Termination as the effective date the Executive's employment is terminated for any reason or the Executive's effective date of resignation, whichever is earlier.

 

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Article 5. - Compensation Upon Termination

	
5.1.
	
Death.  If the Executive's employment hereunder terminates by reason of his/her death, his/her beneficiaries shall be entitled to receive from the Company such amounts as are then provided pursuant to plans, programs or arrangements currently in effect or as approved from time to time by the Board of Directors.

	
5.2.
	
Disability. If the Executive's employment hereunder terminates by reason of his/her Disability, the Executive shall be entitled to receive such amounts as are then provided pursuant to Company’s then existing disability plans, programs or arrangements. Notwithstanding any provisions herein to the contrary, the Executive shall be entitled to receive all benefits to which the Executive is entitled as a terminated employee under the terms of any of the Company's qualified employee benefit plans and any other plan, program or arrangement relating to retirement or other benefits including, without limitation, any employee stock ownership plan or any plan now in effect or which is established (with approval of the Board of Directors) as a supplement to any of the forenamed plans, except as otherwise provided in such plans as a result of the Executive's termination of employment.

	
5.3.
	
Cause.  If the Executive's employment hereunder is terminated by the Company for Cause, the Company shall pay to the Executive his/her full base Salary through the Date of Termination but at a rate no greater than that in effect at the time Notice of Termination is given, and the Company shall have no further obligations to the Executive under this Agreement.

	
5.4.
	
By the Company Without Cause or by the Executive by Resignation for Good Reason.  If the Executive's employment hereunder is terminated by the Company without Cause or is terminated by the Executive pursuant to his/her resignation for Good Reason, then the Executive shall be entitled to the benefits provided below, which shall constitute complete satisfaction of the obligations of the Company to the Executive under this Agreement:

	
(a)
	
The Company shall pay the Executive his/her prorated annual base Salary through the Date of Termination at the rate in effect at the time Notice of Termination is given.

	
(b)
	
Subsequent to the Date of Termination: the Company shall pay as severance pay to the Executive, a severance equal to 12 months of the Executive's base monthly salary at the rate in effect at the time Notice of Termination is given; and such severance payment shall be made over a 12 month period.  Any such payment referred to in this section shall be made in accordance with the Company’s standard payroll schedule and shall be less applicable taxes and mandatory deductions.

	
(c)
	
The Company will provide health care benefits under the group policies covering the other corporate employees including Medical, Dental, Vision and Prescription Drugs, subject to any changes made to the group policies, as provided prior to the Date of Termination for the Executive and eligible dependents, that were covered prior to any Date of Termination, for a 

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period of: twelve (12) months at no cost to the Executive.  This period of coverage will not reduce the eligible COBRA period.

	
(d)
	
The Executive shall not be required to mitigate the amount of any payments provided for in this Agreement by seeking other employment or otherwise, nor shall the amount of any payment provided for in this Agreement be reduced by any compensation earned by the Executive as the result of employment by another employer, or otherwise.

	
(e)
	
Notwithstanding any provisions herein to the contrary, the Executive shall be entitled to receive all benefits to which the Executive is entitled as a terminated employee under the terms of any of the Company's qualified employee benefit plans and any other plan, program or arrangement relating to retirement or other benefits including, without limitation, any employee stock ownership plan or any plan now in effect or which is established (with approval of the Board of Directors) as a supplement to any of the forenamed plans, except as otherwise provided in such plans as a result of the Executive's termination of employment. 

 

Article 6. - Duties of Executive After
Termination of Employment

Following any termination of Executive's employment and for a period of ninety (90) days thereafter, the Executive shall fully cooperate with the Company in all matters relating to the winding up and orderly transfer of the Executive's work on behalf of the Company.  Not later than the effective date of any termination of the employment, the Executive will immediately deliver to the Company any and all of the Company's property of any kind or nature whatsoever in the Executive's possession, custody or control, including, without limitation any and all Confidential Information as that term is defined in Section 7.1 of this Agreement.

 

Article 7. - Confidentiality, Assignment, 

Non-Solicitation, Noncompetition

	
7.1.
	
Confidential Relationship.  Executive understands and agrees that all company manuals, company policies, marketing plans and surveys, product designs, schematics, specifications and product location and installation data, formulae, processes, methods, machines, compositions, customer information, ideas, inventions, financial information and plans of the Company and all records, correspondence, files, customer lists, data and other information pertaining to or concerning the Company, its principals, vendors and customers (collectively the "Confidential Information") contain valuable confidential information that is owned by the Company, and, therefore, that during the period of employment hereunder and at all times thereafter, Executive shall not utilize such Confidential Information for Executive’s own benefit or for the benefit of any person or entity other than the Company, nor shall Executive divulge or communicate any such Confidential Information to any person or entity without the express authorization of the Company. Confidential Information shall not include any information that is or becomes generally available to the public other than as a result of a disclosure by Executive. The Executive agrees that, on the termination of his/her employment, Executive will immediately 

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surrender to the Company any and all Confidential Information in his/her possession pertaining to the Company and its business.

	
7.2.
	
Assignment of Rights.  All inventions, discoveries, designs, developments, technology, computer programs, writings and reports that are made or conceived of by the Executive in the course of his/her employment with the Company, whether or not patentable or copyrightable, shall become and remain the sole property of the Company without additional compensation to Executive.  The Executive recognizes that all such works shall be considered works-for-hire and hereby transfers and assigns any right, title, copyright and interest that Executive acquires in such works to the Company and will, from time to time, give the Company all reasonable assistance, execute all papers and do all things that may reasonably be required to protect and preserve the rights of the Company in such works.

	
7.3.
	
Non-Solicitation.The Employee covenants and agrees that (i) during Employee’s engagement with the Company, and (ii) for a period of two (2) years following termination, Employee shall not, without the prior written consent of the Company, directly or indirectly, whether for his/her own account or on behalf of any person, firm, corporation, partnership, association or other entity or enterprise, solicit, recruit, hire or cause to be hired any employees of the Company or any of its affiliates, or any person who was an employee of the Company during the six (6) months preceding the Employee's date of termination of engagement, or solicit or encourage any employee of the Company or any of its affiliates to leave the employment of the Company or any of such affiliates, as applicable. 

	
 7.4.
	
Noncompetition.Employee agrees that (i) during Employee’s engagement with the Company, Employee shall not engage, directly or indirectly, as an employee, officer, Employee, partner, employees, manager, agent, owner or in any other capacity, in any competition with the Company or any of its subsidiaries. (ii) and for a period of two (2) years following the termination of Employee’s engagement for any reason or without reason, Employee shall not in any capacity whether in the capacity as an employee, officer, partner, manager, agent or owner directly or indirectly advise, manage, render or perform services to or for any person or entity which is engaged in a business competitive to that of the Company or any of its subsidiaries within the United States of America.

 

Article 8. - Source of Payments

All payments provided for under this Agreement shall be paid in cash from the general funds of the Company and no special or separate fund shall be established and no other segregation of assets shall be made to assure payment.  No trust or fiduciary relationship with respect to payments shall be deemed created hereby and, to the extent that any person acquires a right to receive payments hereunder, such right shall be no greater than the rights of a general creditor of the Company.

 

 

 

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Article 9. - Miscellaneous

	
9.1.
	
Indulgences, Etc.  Neither the failure nor any delay on the part of either party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence.

	
9.2.
	
Notices.  All notices or communications hereunder shall be in writing, addressed as follows:

 

	
	
To the Company:

	
 

	
Dennis M. Oates, Chairman, CEO and President

	
Universal Stainless & Alloy Products, Inc.

	
600 Mayer Street

	
Bridgeville, PA  15017

	
 

	
To the Executive:

	
 

	
Ms. Alyssa H. Snider

	
6239 Royal Lakes Estates Avenue

	
Gonzales, LA  70737

 

 

Any such notice or communication shall be sent by certified or registered mail, return receipt requested, postage prepaid, addressed as above (or to such other address as such party may designate in writing from time to time), and the actual date of receipt, as shown by the receipt therefore, shall determine the time at which notice was given.

	
9.3.
	
Assignment; Agreement.  This Agreement shall be binding upon and inure to the benefit of the heirs and personal representatives of the Executive and the successors and assigns of the Company, but neither this Agreement nor any rights hereunder shall be assignable or otherwise subject to hypothecation by the Executive.

	
9.4.
	
Entire Agreement; Amendment.  This Agreement represents the entire agreement of the parties with respect to the subject matter hereof.  This Agreement may be amended or any provision hereof waived at any time only by written agreement of the parties hereto.

	
9.5.
	
Arbitration Clause.  Any and all claims or disputes between Company and Executive arising out of or relating to this employment relationship including but not limited to this Employment Agreement, the hiring, performance or termination of employment and/or cessation of employment with the Company and/or against any employee, officer, alleged agent, director, affiliate, subsidiary or sister company relationship, or relating to an application or 

- 7 -

 

 
 
 

		
candidacy for employment shall be settled by final and binding arbitration administered by the American Arbitration Association under its Employment Arbitration Rules and Mediation Procedures and judgment upon the award rendered by the arbitrator(s) may be confirmed/entered in any court having competent jurisdiction.  Any such arbitration shall be conducted by an arbitrator experienced in employment law and any decision or award as a result of any such arbitration proceeding shall be in writing and shall provide an explanation for all conclusions of law and fact.  The Executive and Company agree that the Arbitration shall be held in the county and state where Executive currently works for Company or most recently worked for Company. This Agreement and its validity, interpretation, performance and enforcement shall be governed by the laws of the Commonwealth of Pennsylvania.  For claims arising under federal law, the Arbitrator(s) shall follow the substantive law applicable to the United States District Court for the Western District of Pennsylvania. 

	
9.6.
	
Severability.  If, for any reason, any provision of this Agreement is held invalid, such invalidity shall not affect any other provision of this Agreement not held so invalid, and each such other provision shall to the full extent consistent with law continue in full force and effect.  If any provision of this Agreement shall be held invalid in part, such invalidity shall in no way affect the remainder of such provision that is not held so invalid, and the remainder of such provision, together with all other provisions of this Agreement, shall to the full extent consistent with law continue in full force and effect.

	
9.7.
	
Headings.  The Article and Section headings in this Agreement are for convenience of reference only; they form no part of this Agreement and shall not affect its interpretation.

	
9.8.
	
Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the Company and the Executive have duly executed this Agreement as of the day and year first written above.

 

	
UNIVERSAL STAINLESS & ALLOY

	
   PRODUCTS, INC.

	
 
	
 

	
By:
	
/s/ Dennis M. Oates

	
 
	
Dennis M. Oates

	
 
	
Chairman, CEO and President

	
 
	
 

	
EXECUTIVE

	
 
	
 

	
By:
	
/s/ Alyssa H. Snider

	
 
	
Alyssa H. Snider

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Schedule A

 

 

	
 
	
1.
	
Incentive Compensation.  Executive will be entitled to participate in the Company’s Variable Incentive Compensation Plan as modified from time to time by the Board of Directors.  The Target award under such plan for the Executive shall be 67% of Executive’s annual base salary.  Note the bonus is prorated to length of service in the first year. A guaranteed minimum incentive compensation award for 2018 based on continued employment until the payout is made on or before March 15, 2019, for Executive shall be $25,000.00 provided employment is effective no later than November 19, 2018.

 

	
 
	
2.
	
Stock Options.  Executive shall be granted 15,000 stock options on Executive’s first day of employment pursuant to the Company’s stock option plan.  The exercise price of the stock options will be the closing price of the Company’s common stock on the day preceding the Grant Date or, if there was no closing price on such date, the closing price on the last date, with a closing price, preceding the Grant Date.

 

	
 
	
3.
	
Relocation and Temporary Living Expense.  Executive will be entitled to the following Relocation and Temporary Living Expense:

 

Universal will pay a gross amount of $75,000 to Executive relating to Executive’s relocation expenses and purchase of a residence in the Greater Pittsburgh area. The relocation allowance will be payable upon the closing associated with the purchase of a primary residence in the Greater Pittsburgh area. The closing of the purchase of the primary residence in the Greater Pittsburgh area must occur within two years of Executive’s date of hire. 

The relocation allowance amount of $75,000 is subject to Executive agreeing to work for Universal Stainless & Alloy Products, Inc., as the Vice President of Human Resources and Chief Human Resource Officer for a period of at least two (2) years from the date of the closing of the purchase of the primary residence in the Greater Pittsburgh area. Should Executive terminate employment before that time, the relocation allowance amount of $75,000 is to be returned to Universal Stainless & Alloy Products, Inc.

 

Universal will pay a gross amount of $10,000.00 for the temporary living expenses during Executive’s transition period. The payment will be made in the first regular pay after Executive’s start date.

 

 

************************

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