Document:

ex_128739.htm

Exhibit 10.01

 

 

	
			

				
			PDF Solutions, Inc.

			 

			333 West San Carlos Street, Suite 1000

			San Jose, California 95110 USA

			

 

 

June 27, 2018

Christine Russell

VIA EMAIL: Christine.Russell@comcast.net

 

Re:  Employment Offer

 

Dear Christine,

 

On behalf of PDF Solutions, Inc. (the “Company”), I am pleased to extend to you this offer of full-time employment. Your initial position will be that of Vice President, Finance, reporting to me. Subject to appointment by PDF’s Board of Directors at a date thereafter to be decided in the Company’s discretion, it is the Company’s intention that your position will also be that of Chief Financial Officer. You will be based in our San Jose area office, currently at 333 W. San Carlos Street, Suite 1000, San Jose, CA 95110. This offer of employment with PDF is conditioned upon your acceptance, in writing, of the terms and conditions as enumerated below.

 

	
			1.

				
			Compensation. Commencing on your Start Date (as defined below), you shall be paid a base salary of THREE HUNDRED THIRTY THOUSAND U.S. dollars ($330,000) per annum, paid to you semi-monthly at the rate of $13,750 per payroll period. Your salary shall be paid in accordance with the Company's standard payroll policies (subject to applicable withholding taxes as required by law). Your salary will be reviewed by the Compensation Committee each year and adjusted in their discretion, if at all.

			

 

	
			2.

				
			Pay for Performance Compensation Program (“PPCP”). Named Executive Officer (“NEOs”) are eligible to participate in our Company-sponsored Pay for Performance Compensation Program of which the structure of such plans and the amount of any bonus awarded under such plans is defined and governed by the Compensation Committee of the Board of Directors (and subject to change based on Compensation Committee approval). The pay-for-performance component of our executive compensation program as it applies to the calendar year period as the performance period under the PPCP, will be based on specific goals set by the Compensation Committee, which currently include revenue and non-GAAP profitability. Currently as outlined in the program, 50% of each eligible participant’s total annual cash incentive bonus opportunity and 50% of each eligible participant’s total annual equity opportunity will be subject to achievement of the goals under the PPCP (the remaining percentage of total annual cash incentive bonus opportunity is provided via the Company’s Annual Discretionary Incentive Bonuses program described in Section 3 and the remaining percentage of total annual equity opportunity is provided via the Company-sponsored Annual Discretionary Long-Term Equity Incentive Awards program described in Section 4). All cash incentive bonus payouts are conditioned on you being an employee at the time of such payment and are subject to applicable withholding taxes as required by law.

			

 

	
			3.

				
			Annual Discretionary Incentive Bonuses. NEO’s are eligible to participate in our Company-sponsored Annual Discretionary Incentive Bonuses program. The percentage of each eligible participant’s total annual cash incentive bonus opportunity that is not subject to the PPCP (the “Discretionary Bonus”) will be based on achieving performance objectives as determined by the Compensation Committee. All Annual Discretionary Incentive Bonuses program payouts are conditioned on you being an employee at the time of such payment and are subject to applicable withholding taxes as required by law.

			

 

 

 

 

Christine Russell

Page 2 of 9

June 27, 2018

 

 

However, in any case, your guaranteed minimum cash bonus for the 2018 calendar year is EIGHTY TWO THOUSAND FIVE HUNDRED U.S. dollars ($82,500) prorated, which will be paid in 2019 when other NEOs’ 2018 bonuses are paid and, in any event, no later than March 15, 2019.  

 

	
			4.

				
			Annual Discretionary Long–Term Equity Incentive Awards. NEOs are eligible to participate in our Company-sponsored Annual Discretionary Long-Term Equity Incentive Awards program. The percentage of each eligible participant’s total annual equity opportunity that is not subject to the PPCP (the “Discretionary Equity Award”) will be based on achieving performance objectives as determined by the Compensation Committee of the Board of Directors and granted with the Company-wide merit/refresh awards in the Compensation Committee’s discretion, which is typically around May – June each year.

			

 

	
			5.

				
			Stock Options. As soon as practicable following the commencement of your employment, and subject to approval of the Compensation Committee of the grant, you will be awarded an option to purchase 80,000 shares (the “Total Option Shares”) of the Company’s Common Stock with an exercise price equal to the fair market value of the Common Stock on the effective date of grant (the effective date of grant and Vesting Start dates are generally the first day of the month following approval). Such option shall vest over a four year period commencing on the Vesting Start date, according to the following vesting schedule: 1/4th of the Total Option Shares shall vest and become exercisable on the one (1) year anniversary of the Vesting Start Date and thereafter 1/48th of Total Option Shares shall vest and become exercisable on the same day of the month as the Vesting Start Date of each month thereafter until fully vested, subject to your continued service through each applicable vesting date. The options will be non-qualified options and will be subject to the terms of the Company’s 2011 Stock Plan (as amended and restated) and execution of an applicable Stock Option Agreement to be entered into between you and the Company.

			

 

	
			6.

				
			Restricted Stock Units. As soon as practicable following the commencement of your employment, and subject to approval of the Compensation Committee of the grant, you will be awarded a restricted stock unit (“RSU”) for 80,000 shares (the “Total RSUs”) of the Company’s Common Stock. This award is subject to the terms of the Company’s 2011 Stock Plan (as amended and restated). Such RSUs are generally granted and start vesting (the “RSU Vesting Start Date”) on the first day of the month following the month the award is approved according to the following vesting schedule: 25% of Total RSUs shall vest (and shares will be issued) on the one (1) year anniversary of the RSU Vesting Start Date and thereafter 12.5% of the Total RSUs shall vest (and shares will be issued) every six (6) months thereafter until fully vested, subject to your continued service through each applicable vesting date.

			

 

 

 

 

Christine Russell

Page 3 of 9

June 27, 2018

 

 

	
			7.

				
			Start Date. This offer is contingent upon the satisfactory completion of reference/background checks. Subject to fulfillment of any conditions imposed by this letter agreement, you will commence your new position with the Company on a date to be determined and agreed upon with the Company. Your “Anticipated Start Date” is currently expected by the Company to be July 16, 2018. The date you actually start working at the Company is referred to as your “Start Date.”

			

 

	
			8.

				
			General Duties. During the term of your employment, you agree that at all times and to the best of your ability you will loyally and conscientiously perform all of the duties and obligations required of you in your job and by the Company. You further agree that you will not render commercial or professional services of any nature to any person or organization, whether or not for compensation, without the prior written consent of the Company, and that you will not directly or indirectly engage in or participate in any business that is competitive in any manner with the business of the Company. You also agree to comply with any and all policies of the Company as in effect from time to time.

			

 

	
			9.

				
			Proof of Right to Work. In compliance with federal immigration laws, you will be required to provide to the Company documentary evidence of your identity and eligibility for employment in the United States. Such documentation must be provided within three (3) business days of your Start Date. Your failure to meet this condition could result in termination of your employment with the Company.

			

 

	
			10.

				
			Benefits. Effective on the first day of the month following your Start Date, the Company will make available to you the regular health insurance program and other benefits as established by the Company for its employees from time to time.

			

 

	
			11.

				
			Change of Control.  In the event that the Company undergoes a Change in Control (as defined below) after the first (1st) anniversary of your Start Date and, at any time over the next twelve (12) months after consummation of such Change of Control, your employment is terminated without Cause or as a result of your Disability (as such terms are defined below), then following your Separation and upon meeting the Separation Conditions (as such terms are defined below) you will be entitled to all of the following:

			

 

	 	
			(i)

				
			vesting acceleration of your then outstanding and unvested stock options and RSUs as if you provided continuous service to the Company for an additional twelve (12) months after your Separation Date, effective as of the Release Deadline Date;

			

 

	 	
			(ii)

				
			severance equal to twelve (12) months of your then-current annual base salary, paid in accordance with the Company's standard payroll procedures over a twelve-month period, with the first payment commencing on the Company's first regular payroll date following the Release Deadline Date (as defined below) (subject to applicable withholding taxes required by law); provided that the first payment shall be equal to the number of business days between the Separation Date and the date of the first payment multiplied by your daily base salary rate;

			

 

 

 

 

Christine Russell

Page 4 of 9

June 27, 2018

 

 

	 	
			(iii)

				
			severance equal to one hundred percent (l00%) of the PPCP annual cash incentive bonus and Annual Discretionary Incentive Bonus paid to you for the immediately preceding performance period, which will be paid in a single lump sum payment on the Company's first regular payroll date following the Release Deadline Date (subject to applicable withholding taxes required by law); and,

			

 

	 	
			(iv)

				
			the Company's portion of the health insurance premium paid just prior to termination to supplement your COBRA coverage from the last date on which you receive health care coverage as a Company employee until the earlier of: (I) the date the Company has paid for twelve (12) months of COBRA premiums; or (2) the date you become eligible to be covered under another employer's health coverage plan, with the first of such premium payments made when due immediately following the date on which you have made your COBRA election, which you will elect within sixty (60) days following your Separation Date; provided that the Company shall treat any payment of COBRA premiums as taxable to the extent required to avoid adverse consequences to you or the Company under either Section 105(h) of the Internal Revenue Code of 1986, as amended (the "Code") or the Patient Protection and Affordable Care Act of 2010.

			

 

In the event the Change of Control referenced above occurs before the first (1st) anniversary of your Start Date and, at any time over the next twelve (12) months after consummation of such Change of Control, your employment is terminated without Cause or as a result of your Disability, then following your Separation and upon meeting the Separation Conditions (defined below) you will be entitled to:

 

	 	
			(v)

				
			vesting acceleration with respect to fifty percent (50%) of your then outstanding and unvested Total Option Shares and Total RSUs, effective as of the Release Deadline Date.

			

 

	
			12.

				
			Termination without Cause or Disability. In the event of the Company terminates your employment at any time without Cause or as a result of your Disability and a Separation occurs, then subject to the Separation Conditions, you will be entitled to all of the following:

			

 

	 	
			(i)

				
			vesting acceleration of your then outstanding and unvested stock options and RSUs as if you provided continuous service to the Company for an additional six (6) months after your Separation Date, effective as of the Release Deadline Date;

			

 

	 	
			(ii)

				
			severance equal to six (6) months of your then-current annual base salary, paid in accordance with the Company's standard payroll procedures over a six-month period, with the first payment commencing on the Company's first regular payroll date following the Release Deadline Date (subject to applicable withholding taxes required by law); provided that the first payment shall be equal to the number of business days between the Separation Date and the date of the first payment multiplied by your daily base salary rate;

			

 

 

 

 

Christine Russell

Page 5 of 9

June 27, 2018

 

 

	 	(iii)	severance equal to fifty percent (50%) of the PPCP annual cash incentive bonus and Annual Discretionary Incentive Bonus paid to you for the immediately preceding performance period, which will be paid in a single lump sum payment on the Company's first regular payroll date following the Release Deadline Date (subject to applicable withholding taxes required by law) ; and,
	 	 	 
	 	
			(iv)

				
			the Company's portion of the health insurance premium paid just prior to termination to supplement your COBRA coverage from the last date on which you receive health care coverage as a Company employee until the earlier of: (I) the date the Company has paid for six (6) months of COBRA premiums; or (2) the date you become eligible to be covered under another employer's health coverage plan, with the first of such premium payments made when due immediately following the date on which you have made your COBRA election, which you will elect within sixty (60) days following your Separation Date; provided that the Company shall treat any payment of COBRA premiums as taxable to the extent required to avoid adverse consequences to you or the Company under either Code Section 105(h) or the Patient Protection and Affordable Care Act of 2010.

			

 

	 	
			13.

				
			Definitions. As used in this letter:

			

 

	 	
			(a)

				
			"Cause" means (i) your unauthorized use or disclosure of the Company's confidential information or trade secrets; (b) your material breach of any agreement between you and the Company, which remains uncured by you more than five (5) days from the date of your receipt of written notice of such material breach from the Company; (c) your repeated or material failure to comply with the Company's written policies or rules, including without limitation the Company's Code of Ethics, and including actions or omissions for which the Company undergoes more than one formal investigation for potential violations; (d) your conviction of, or your plea of "guilty" or "no contest" to, a felony under the laws of the United States or any State; (e) your gross negligence or willful misconduct; (f) your continuing failure to perform or initiating performance of assigned duties for which there is no reasonable basis for you disputing and/or failing to so perform for ten (10) days after receiving written notification of the failure from the Board of Directors; or, (g) your failure to cooperate in good faith with a governmental or internal investigation of the Company or its directors, officers or employees, if the Company has requested your cooperation.

			

 

	 	
			(b)

				
			"Change of Control" means a change in ownership or control of the Company effected through a merger, consolidation or acquisition by any person or related group of persons (other than an acquisition by the Company or by a Company-sponsored employee benefit plan or by a person or persons that directly or indirectly controls, is controlled by, or is under common control with, the Company) of beneficial ownership (within the meaning of Rule 13d-3 of the Securities Exchange Act of 1934) of securities possessing more than fifty percent (50%) of the total combined voting power of the outstanding securities of the Company.

			

 

 

 

 

Christine Russell

Page 6 of 9

June 27, 2018

 

 

	 	
			(c)

				
			"Disability" means your inability to perform the essential functions of your position, with reasonable accommodation, for a period of one hundred and twenty (120) consecutive days because of your physical or mental impairment, provided your disability also qualifies as a “disability” as defined in the regulations under Section 409A (as defined below).

			

 

	 	
			(d)

				
			"Release" means the Company's standard general release of all claims that you may have against the Company or persons affiliated with the Company, subject to good-faith negotiation between you and the Company.

			

 

	 	
			(e)

				
			"Separation" means a "separation from service," as defined in the regulations under Section 409A.

			

 

	 	
			(f)

				
			"Separation Conditions" means you have (i) returned all Company property in your possession promptly after your Separation Date and, in any event, no later than ten (10) days after your Separation Date; and, (ii) executed the Release, and not revoked it through any deadline applicable to such revocation, such that the Release is effective within sixty (60) days after your Separation Date (the "Release Deadline Date"). The foregoing condition in subsection (ii) is contingent on the Company delivering the form of release to you within two (2) days after your Separation Date.

			

 

	 	
			(g)

				
			"Separation Date" means the date that the termination or resignation of your employment becomes an effective Separation.

			

 

 

 

 

Christine Russell

Page 7 of 9

June 27, 2018

 

 

	 	
			14.

				
			Tax Considerations. For purposes of Code Section 409A, the regulations and other guidance there under and any state law of similar effect (collectively "Section 409A"), each payment that is paid, and benefit that is provided, pursuant to this agreement is hereby designated as a separate payment. The parties intend that all payments made or to be made, and benefits provided or to be provided, under this agreement comply with, or are exempt from, the requirements of Section 409A so that none of the payments or benefits will be subject to the adverse tax penalties imposed under Section 409A, and any ambiguities herein will be interpreted to so comply or be so exempt. Specifically, any severance payments or benefits made in connection with your Separation under this agreement and paid or provided on or before the fifteenth (15th) day of the third (3rd) month following the end of your first (1st) tax year in which your Separation occurs or, if later, the fifteenth (15th) day of the third (3rd) month following the end of the Company’s first (1st) tax year in which your Separation occurs, shall be exempt from Section 409A to the maximum extent permitted pursuant to Treasury Regulation Section 1.409A-1(b)(4) and any additional severance payments and benefits provided in connection with any Separation are intended to be exempt from Section 409A pursuant to Treasury Regulation Section l.409A-l(b )(9)(iii). Notwithstanding anything set forth herein, to the extent that the severance payments and/or benefits provided in this letter do not qualify for any reason to be exempt from Section 409A pursuant to Treasury Regulation Section 1.409A-1(b)(4), Treasury Regulation Section 1.409A-1(b)(9)(iii), or any other applicable exemption, as described herein, and as reasonably determined by the Company, and the Company determines that you are a "specified employee" under Section 409A(a)(2)(B)(i) of the Code at the time of the Separation, then, to the extent required by Section 409A, all payments and benefits that otherwise would have been paid or provided during the first six (6) months after the effective date of the Separation will be paid in a lump sum or provided on the first (1st) day of the seventh (7th) month after the Separation.

			

 

	
			 

				
			You are encouraged to obtain your own tax advice regarding your compensation from the Company. You agree that the Company does not have a duty to design its compensation policies in a manner that minimizes your tax liabilities, and you will not make any claim against the Company or its Board of Directors related to tax liabilities arising from your compensation or any severance paid hereunder.

			

 

	
			15.

				
			Confidential Information and Invention Assignment Agreement. Your acceptance of this offer and commencement of employment with the Company is contingent upon your execution of the Company’s Confidential Information and Invention Assignment Agreement (the “Confidentiality Agreement”), a copy of which is enclosed for your review. An executed copy of the Confidentiality Agreement must be delivered to the PDF Human Resources Department on or before your Start Date. The Confidentiality Agreement relates to confidential information received in regards to the Company’s business, technology, and intellectual property, as well as information about the Company’s customers. The Confidentiality Agreement also addresses the Company’s ownership of intellectual property generated during your employment at the Company. You are required, to the best of your ability, to hold such information as confidential even after an event terminating your employment with the Company.

			

 

 

 

 

Christine Russell

Page 8 of 9

June 27, 2018

 

 

	
			16.

				
			Arbitration. Any dispute, claim or controversy between you as Employee and PDF Solutions as Employer arising out of or relating to (i) our employment relationship or any of the events or circumstances leading up to your employment with PDF Solutions including, without limitation, your interview process and all negotiations relating to your employment with PDF Solutions and the execution of this agreement; and/or (ii) this agreement or any of its provisions, or the breach, termination, enforcement, interpretation or validity thereof, shall be subject to and resolved exclusively by arbitration before a single arbitrator in accordance with the National Rules for the Resolution of Employment Disputes, also called the "Employment Arbitration Rules and Mediation Procedures"(the "Rules") of the American Arbitration Association (the "AAA"), a copy of which can be found as of the date of this letter at the following internet website: https://www.adr.org/sites/default/files/Commercial%20Rules.pdf Such Rules of the AAA in effect at the time of your accepting this offer of employment and entering this agreement by that acceptance are to be used, provided that they remain applicable and do not contravene applicable law at the time of any actual arbitration. The single arbitrator will be selected by the AAA pursuant to its Rules. The decision of the arbitrator and any arbitration award shall be final, binding, non-appealable and conclusive on and as to the parties thereto. No recourse may be made to any court except solely to enforce a final award in a court of competent jurisdiction. California law, without regard to conflict of law principles or the choice of law provisions of other states, applies to this agreement to arbitrate, as well as exclusively to all other matters regarding your employment or arising respecting it at any time, except to the extent that the Federal Arbitration Act (FAA) and federal law regarding arbitration is applicable, in which case as to those issues, federal law governs. In this regard, it is acknowledged that the employee's employment is specifically understood to "involve commerce" and that the FAA governs and applies in those circumstances. The provisions of this offer letter, specifically including the agreement to arbitrate, are the product of arm's length negotiations with you and they are agreed to and are entered after due consideration and voluntarily with the intention to be bound by them, including the agreement to arbitrate, and it is agreed and acknowledged that this is an individually negotiated agreement and plan, not an employer-promulgated plan, and that you have been given the opportunity to have this agreement, including the provision for arbitration, reviewed prior to our signing by counsel of your own choice and at your sole expense.

			

 

	
			17.

				
			At-Will Employment and Other Conditions. Your employment will be at-will, meaning that you or PDF may terminate the employment relationship at any time, with or without cause, with or without notice (“At-Will”). This offer is contingent upon: (i) receiving satisfactory references from former employers, (ii) Satisfactory completion of a background investigation, (iii) Verification of your right to work in the United States, as demonstrated by your completion of the I-9 form upon hire and your submission of acceptable documentation (as noted on the I-9 form) verifying your identity and work authorization within three days of starting employment. (iv) Your execution of PDF's Agreements and Policies as enclosed, that need to be executed prior to commencing work and (v) PDF’s receiving verification that you hold the following qualification(s) as listed in your resume. Your failure to meet these conditions individually or collectively could result in termination of your employment with the Company.

			

 

	
			18.

				
			Severability; Electronic Signature. If any provision of this offer is determined to be invalid or unenforceable, the remainder shall be unaffected and shall be enforceable. This offer may be executed by one or both parties electronically, and in counterparts, each of which shall be deemed an original and all of which together shall be deemed one and the same original agreement.

			

 

 

 

 

Christine Russell

Page 9 of 9

June 27, 2018

 

 

We are all delighted to be able to extend you this offer and look forward to working with you. Should you have any additional questions, please reach out to Pamela Fong at 408-938-4462 or by email at the address listed below. To indicate your acceptance of this offer, please sign and date this letter in the space provided below and return a scanned copy to Pamela by email to pamela.fong@pdf.com.

 

THIS OFFER EXPIRES ON July 9, 2018 at 5:00 PM.

 

	 	
			Sincerely,

			 

			PDF SOLUTIONS, INC.

			
	 	 
	 	/s/ John K. Kibarian
	 	 
	 	John K. Kibarian

			Chief Executive Officer and President

 

 

ACKNOWLEDGMENTS & ACCEPTANCE

 

I accept this employment offer with the understanding that it is not a contract for a fixed term or specified period of time. I understand that my employment is voluntary, (“At Will”), and can be terminated either by me or by the company at any time, with or without notice and with or without cause. The provisions stated above supersede all prior representations or agreements, whether written or oral. This offer letter may not be modified or amended except by a written agreement, signed by the Company and me.

 

THE FOREGOING TERMS AND CONDITIONS ARE HEREBY AGREED TO AND ACCEPTED:

 

	Signed:	/s/ Christine Russell	 	 	 	 
	 	 	 	 	 	 
	Name:	Christine Russell	 	Date:	Jul 6, 2018upl-ex103_161.htm

Exhibit 10.3

RESTRICTED STOCK UNIT AGREEMENT

(“AGREEMENT”)

PURSUANT TO THE ULTRA PETROLEUM 2017 STOCK INCENTIVE PLAN,
AS AMENDED AND RESTATED EFFECTIVE JUNE 8, 2018

		
	
Name of Participant:
	
[●] (“Participant”)

	
Date of Grant of RSUs:
	
[●] (“Grant Date”)

	
Restricted Stock Units Granted:
	
[●] (the “Target Number”)

The Compensation Committee of the Board of Directors of Ultra Petroleum Corp., a Yukon corporation (the “Company”) has approved an award of restricted stock units (“RSUs”) to you, an employee of Ultra Resources, Inc. (“Employer”), and the Company does hereby grant to you, as of the Grant Date specified above, the number of RSUs specified above. The RSUs will only vest to the extent provided in and subject to the conditions described in the attached Schedule 1.

Please indicate your acceptance of this Agreement by signing below, and then returning the original to the Company.

You should keep a copy of this Agreement for your records.

ULTRA PETROLEUM CORP.

By: _____________________________

	
 
	

	
Brad Johnson
Interim Chief Executive Officer

AGREED AND ACCEPTED: 

Participant:[●]

Signature:____________________

 

 

 

RESTRICTED STOCK UNIT AGREEMENT 
SCHEDULE 1

This award described in the cover letter to which this Schedule 1 is attached (the “Letter”) is subject to the terms and conditions set forth herein and in the Plan. Definitions of certain terms used herein are in the last section hereof.

	
2.
	

	
1.
	
Incorporation By Reference; Plan Document. Except as provided herein, this Agreement is subject in all respects to the terms and provisions of the Plan (including, without limitation, any amendments thereto adopted at any time and from time to time unless such amendments are expressly intended not to apply to the Award provided hereunder), all of which terms and provisions are made a part of and incorporated in this Agreement as if they were each expressly set forth herein. Except as provided otherwise herein, any capitalized term not defined in this Agreement shall have the same meaning as is ascribed thereto in the Plan. Participant acknowledges the Plan has been made available to Participant and Participant has read or could have read and understood the Plan.

	
2.
	
Grant of Award. The Company hereby grants to Participant, as of the Grant Date specified in the Letter, the number of RSUs specified in the Letter. Except as otherwise provided by the Plan, Participant understands and agrees that nothing contained in this Agreement provides, or is intended to provide, Participant with any protection against potential future dilution of Participant’s interest in the Company for any reason, and no adjustments shall be made for dividends in cash or other property, distributions or other rights in respect of the shares of common stock underlying the Restricted Stock Units (“RSUs”), except as otherwise specifically provided for in the Plan or this Agreement.

	
3.
	
Vesting; Forfeiture.

	
 
	
3.1.
	
The Target Number of RSUs will be subject to both time-based and performance-based vesting.  The RSUs will performance-vest based on the extent to which the Performance Criterion outlined in Exhibit A attached hereto are satisfied on or before the third anniversary of the [Grant Date][first date of your employment with the Company] (such three year period, the “Performance Period”). 

	
 
	
3.2.
	
All RSUs that have not fully vested as of Participant’s date of termination (determined after application of Section 3.5) shall be immediately forfeited.  Any RSU that does not performance vest prior to the conclusion of the Performance Period will automatically be forfeited for no consideration at the conclusion of the Performance Period.

	
 
	
3.3.
	
Any RSUs that performance vest during the Performance Period in accordance with the Performance Criterion will be subject to time-based vesting in accordance with the following schedule: 

	
 
	
(i)
	
one-third (1/3) of any Base RSUs (as defined below) and one-fourth (1/4) of any Supplemental RSUs (as defined below) that have previously performance vested will time-vest on the date on which such RSUs performance vest; and

	
 
	
(ii)
	
one-third (1/3) of any Base RSUs and one-fourth (1/4) of any Supplemental RSUs that 

	
 
		
have previously performance vested will time-vest on the first two (in the case of Base RSUs) or three (in the case of Supplemental RSUS) anniversaries of the date on which such RSUs performance vest.  For this purpose, “Base RSUs” means the number of RSUs that performance vest  up to 100% of the Target Number of RSUs granted hereby, and “Supplemental RSUs” means the number of RSUs that performance vest in excess of 100% of the Target Number of RSUs granted hereby. 

	
 
	
3.4.
	
Any RSU that has both performance vested and time vested (including time vesting pursuant to Section 3.5 hereof) shall be referred to herein as a “Vested RSU”.

	
 
	
3.5.
	
One-hundred percent (100%) of any Base RSUs and Supplemental RSUs that have previously performance vested will immediately vest in  the event of Participant’s termination due to death, disability, termination by the Company without Cause, subject to the Participant executing and not revoking a customary release of claims provided by the Company no later than the 60th day following the Participant’s termination of employment.  Any RSUs that have not performance-vested in accordance with Section 3.1 hereof will automatically expire and terminate for no consideration as of the date of the Participant’s termination of employment.

	
4.
	
Payment; Withholding.

	
 
	
4.1.
	
Except as otherwise provided herein or in the Plan, the Company will deliver to Participant an amount of shares of its common stock equal to the number of Vested RSUs awarded to Participant herein no later than the conclusion of the fiscal quarter in which such RSU first became a Vested RSU.

	
 
	
4.2.
	
Participant agrees and acknowledges that the Company has the power and right to deduct or withhold, or require Participant to remit to the Company, an amount sufficient to satisfy any federal, state, local and foreign taxes of any kind (including, but not limited to, Participant’s FICA and SDI obligations) which the Company, in its good faith discretion, deems necessary to be withheld or remitted to comply with the Code and/or any other applicable law, rule or regulation with respect to the RSUs, and if the withholding requirement cannot be satisfied, the Company may otherwise refuse to issue or transfer any shares of common stock otherwise required to be issued pursuant to this Agreement. Without limiting the foregoing, Participant agrees that the Company may withhold shares of common stock otherwise deliverable to Participant hereunder with a Fair Market Value equal to Participant’s total income and employment taxes imposed as a result of 

Schedule 2 – Page 1

 

 

	
 
		
the vesting and/or settlement of the RSUs to the extent provided in the Plan.

	
5.
	
Non-Transferability. 

	
 
	
5.1.
	
No portion of or interest in the RSUs may be sold, assigned, transferred, encumbered, hypothecated or pledged by Participant, other than to the Company as a result of forfeiture of the RSUs as provided herein.

	
 
	
5.2.
	
The Participant shall not, directly or indirectly, Transfer any shares of Common Stock acquired upon settlement of the RSUs granted hereunder, unless in each such instance the Participant (or estate or legal representative) shall have first made an irrevocable offer to the Company for the Common Stock proposed to be Transferred.  The right of first refusal must be exercised by the Company by delivering to the Participant (or the estate or legal representative) written notice of such exercise within ten (10) business days following the Company's receipt of written notification of the irrevocable offer.  Upon the exercise of a right of first refusal, the Common Stock offered to the Company shall be purchased by the Company at the closing price per share on the day offered to the Company.  The notice of exercise of the right of first refusal shall specify the date and location for the closing of such purchase, which closing shall take place no later than four (4) business days following the expiration of the ten (10) business day offer period.  Notwithstanding the foregoing, the Participant shall not, without Committee consent, directly or indirectly Transfer more than twenty-five percent (25%) of the aggregate shares of Common Stock acquired pursuant to this RSU in any fiscal quarter.

	
6.
	
Dividends; Rights as Stockholder. Cash dividends on the number of shares of Common Stock issuable hereunder shall be credited to a dividend book entry account on behalf of Participant with respect to each RSU granted to Participant, provided that such cash dividends shall not be deemed to be reinvested in shares of Common Stock and shall be held uninvested and without interest and paid in cash at the same time that the shares of Common Stock underlying the RSUs are delivered to Participant in accordance with the provisions hereof. Stock or property dividends on shares of Common Stock shall be credited to a dividend book entry account on behalf of Participant with respect to each RSU granted to Participant, provided that such stock or property dividends shall be paid in (i) shares of Common Stock, (ii) in the case of a spin-off, shares of stock of the entity that is spun-off from the Company, or (iii) other property, as applicable and in each case, at the same time that the shares of Common Stock underlying the RSUs are delivered to Participant in accordance with the provisions hereof. Except as otherwise provided herein, Participant shall have no rights as a stockholder with respect to any shares of Common Stock covered by any RSU unless and until Participant has become the holder of record of such shares.

	
7.
	
Additional Provisions.

	
 
	
7.1.
	
All questions concerning the construction, validity and interpretation of this Agreement shall be 

	
 
		
governed by, and construed in accordance with, the laws of the State of Texas, without regard to the choice of law principles thereof.

	
 
	
7.2.
	
The Company may at any time place legends referencing any applicable federal, state or foreign securities law restrictions on all certificates, if any, representing shares of common stock issued pursuant to this Agreement. Participant shall, at the request of the Company, promptly present to the Company any and all certificates, if any, representing shares of common stock acquired pursuant to this Agreement in the possession of Participant in order to carry out the provisions of this paragraph.

	
 
	
7.3.
	
No waiver or non-action by either party hereto with respect to any breach by the other party of any provision of this Agreement shall be deemed or construed to be a waiver of any succeeding breach of such provision, or as a waiver of the provision itself.

	
 
	
7.4.
	
This Agreement, together with the Plan, contains the entire agreement between the parties hereto with respect to the subject matter contained herein, and supersedes all prior agreements or prior understandings, whether written or oral, between the parties relating to such subject matter. The Compensation Committee shall have the right, in its sole discretion, to modify or amend this Agreement from time to time in accordance with and as provided in the Plan. This Agreement may also be modified or amended by a writing signed by both the Company and Participant. The Company shall give written notice to Participant of any such modification or amendment of this Agreement as soon as practicable after the adoption thereof.

	
 
	
7.5.
	
Any notice hereunder by Participant shall be given to the Company in writing and such notice shall be deemed duly given only upon receipt thereof by the Director of Human Employer and the General Counsel of the Company. Any notice by the Company shall be given to Participant in writing and such notice shall be deemed duly given only upon receipt thereof at such address as Participant may have on file with the Company.

	
 
	
7.6.
	
Any questions as to whether and when there has been a Termination and the cause of such Termination shall be determined in the sole discretion of the Committee. Nothing in this Agreement shall interfere with or limit in any way the right of the Company, its Subsidiaries or its Affiliates to terminate Participant’s employment or service at any time, for any reason and with or without Cause.

	
 
	
7.7.
	
Participant unambiguously authorizes, agrees and consents to transmission by the Company (or any Subsidiary) of any personal data information related to the RSUs awarded under this Agreement for legitimate business purposes (including, without limitation, the administration of the Plan). This consent and authorization is freely given.

	
 
	
7.8.
	
The grant of RSUs and the issuance of shares of common stock hereunder shall be subject to, and shall comply with, any applicable requirements of 

Schedule 2 – Page 2 

 

 

	
 
		
any foreign and U.S. federal and state securities laws, rules and regulations (including, without limitation, the provisions of the Securities Act, the Exchange Act and in each case any respective rules and regulations promulgated thereunder) and any other applicable law, rule, regulation or exchange requirement. The Company shall not be obligated to issue RSUs or shares of common stock pursuant to this Agreement if any such issuance would violate any such requirements. As a condition to settlement of the RSUs, the Company may require Participant to satisfy any qualifications necessary or appropriate to evidence compliance with any applicable law or regulation.

	
 
	
7.9.
	
This Agreement shall inure to the benefit of, be binding upon, and be enforceable by the Company and its successors and assigns. Participant shall not assign any part of this Agreement without the prior express written consent of the Company.

	
 
	
7.10.
	
The titles and headings herein are for convenience of reference only and shall not be deemed to be a part of this Agreement.

	
 
	
7.11.
	
This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same instrument.

	
 
	
7.12.
	
Each party hereto shall do and perform (or shall cause to be done and performed) all such further acts and shall execute and deliver all such other agreements, certificates, instruments and documents as either party hereto reasonably may request in order to carry out the intent and accomplish the purposes hereof and the consummation of the transactions contemplated in this Agreement and the Plan; provided that no such additional documents shall contain terms or conditions inconsistent with the terms and conditions of this Agreement.

	
 
	
7.13.
	
 The invalidity or unenforceability of any provisions of this Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Agreement in such jurisdiction or the validity, legality or enforceability of any provision of this Agreement in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law.

	
 
	
7.14.
	
Participant acknowledges and agrees that: (a) the Company may terminate or amend the Plan at any time; (b) the award of RSUs made under this Agreement is completely independent of any other award or grant and is made at the sole discretion of the Company; (c) no past grants or awards (including, without limitation, the RSUs awarded hereunder) give Participant any right to any grants or awards in the future whatsoever; and (d) any benefits granted under this Agreement are not part of Participant’s ordinary salary, and shall not be considered as part of such salary in the event of severance, redundancy or resignation.

	
8.
	
Definitions. Certain terms used herein are defined in the Plan. Certain other terms are defined below:

	
 
	
8.1.
	
“Code” means the Internal Revenue Code of 1986, as amended.

	
 
	
8.2.
	
“Employer” means Ultra Resources, Inc.

	
 
	
8.3.
	
“Participant” is defined in the Letter.

	
 
	
8.4.
	
“Plan” means the Ultra Petroleum Corp. 2017 Stock Incentive Plan as Amended and Restated effective as of June 8, 2018.

 

Schedule 2 – Page 3 

 

 

EXHIBIT A

PERFORMANCE CRITERION

During the Performance Period, the RSUs subject to this Agreement will performance vest based on the “60-Day VWAP” (as defined below) as follows:

	
 
	
•
	
15% of the Base RSUs will performance-vest if the 60-Day VWAP is above $[●];
	
 

	
 
	
•
	
an additional 25% of the Base RSUs will performance-vest if the 60-Day VWAP is above $[●] (for an aggregate of 40% of the Target Number of RSUs);
	
 

	
 
	
•
	
an additional 50% of the Base RSUs will performance-vest if the 60-Day VWAP is above $[●] (for an aggregate of 90% of the Target Number of RSUs);
	
 

	
 
	
•
	
the remaining 10% of the Base RSUs granted will performance-vest if the 60-Day VWAP is above $[●] (for an aggregate of 100% of the Target Number of RSUs);
	
 

	
 
	
•
	
an additional 25% of the RSUs will performance-vest if the 60-Day VWAP is above $[●] (for an aggregate of 125% of the Target Number of RSUs);
	
 

	
 
	
•
	
an additional 25% of the RSUs will performance-vest if the 60-Day VWAP is above $[●] (for an aggregate of 150% of the Target Number of RSUs);
	
 

	
 
	
•
	
an additional 25% of the RSUs will performance-vest if the 60-Day VWAP is above $[●] (for an aggregate of 175% of the Target Number of RSUs); and
	
 

	
 
	
•
	
an additional 25% of the RSUs will performance-vest if the 60-Day VWAP is above $[●] (for an aggregate of 200% of the Target Number of RSUs).
	
 

ADDITIONAL PROVISIONS AND CLARIFICATIONS:

	
1.
	
As used herein, the term “60-Day VWAP” means, as of any date, the volume-weighted average price per share of the common stock of Ultra Petroleum Corp. measured from 9:30 am eastern time on the trading day that is sixty (60) trading days preceding such date to 4:00 pm eastern time on the trading day immediately preceding such date.

	
2.
	
For the sake of clarity, the RSUs that performance vest pursuant to the first four bullets above are Base  RSUs and the RSUs that performance vest pursuant to the last four bullets above are Supplemental RSUs (as those terms are used in Schedule 1 to the Agreement).

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