SEC Contract Filing

Filing Date: 2018-01-18

Document Content:
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>tv483543_ex10-4.htm
<DESCRIPTION>EXHIBIT 10.4
<TEXT>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0; text-align: right"><B>Exhibit 10.4</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>RESTRICTED STOCK UNIT AWARD AGREEMENT</B><BR>
<B>PERFORMANCE-BASED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>VANGUARD NATURAL RESOURCES, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2017 Management Incentive Plan</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Restricted Stock
Unit Award Agreement (this &ldquo;<U>Agreement</U>&rdquo;) is made as of the [&#9679;] day of [&#9679;], 2018 (the &ldquo;<U>Grant
Date</U>&rdquo;) between Vanguard Natural Resources, Inc. (the &ldquo;<U>Company</U>&rdquo;), and [&#9679;] (&ldquo;<U>Participant</U>&rdquo;),
and is made pursuant to the terms of the Vanguard Natural Resources, Inc. 2017 Management Incentive Plan (the &ldquo;<U>Plan</U>&rdquo;).
Any capitalized term used herein but not defined shall have the meaning set forth in the Plan.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><U>Section&nbsp;1</U>.</B>&#9;<B><U>Grant
of Restricted Stock Units</U>.</B> The Company hereby grants to Participant, on the terms and conditions hereinafter set forth,
a Restricted Stock Unit Award consisting of a maximum of [&#9679;] restricted stock units (&ldquo;<U>Restricted Stock Units</U>&rdquo;),
subject to the terms and conditions set forth in this Agreement and the Plan. Subject to Section 2(b) hereof, Participant&rsquo;s
right to receive all or any portion of the Restricted Stock Units granted hereunder is contingent upon the Company&rsquo;s achievement
of the performance goal (&ldquo;<U>Performance Goal</U>&rdquo;) specified in the performance matrix attached as <U>Exhibit A</U>
to this Agreement (the &ldquo;<U>Performance Matrix</U>&rdquo;), measured over the &ldquo;<U>Performance Period</U>&rdquo; indicated
in the Performance Matrix. Participant&rsquo;s overall target-level Award hereunder is equal to [&#9679;] Restricted Stock Units
(the &ldquo;<U>Target Award</U>&rdquo;). Subject to the terms and conditions set forth in this Agreement and the Plan, each Restricted
Stock Unit represents the right to receive one share of Common Stock.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B><U>Section&nbsp;2</U>.</B>&#9;<B><U>Vesting
of the Restricted Stock Units</U>.</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-weight: normal">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Determination of Earned Award</U>. Subject to Section 2(b) hereof, within 60 days following the end of the Performance
Period, the Committee shall certify whether and to what extent the Award has been earned for the Performance Period (the actual
date of such Committee certification, the &ldquo;<U>Determination Date</U>&rdquo;). The Committee&rsquo;s determination of the
foregoing shall be final and binding on Participant absent a showing of manifest error or that the Committee acted in bad faith.
Upon such determinations by the Committee, the applicable portion of the Restricted Stock Units determined by the Payout Percentage
(as defined in the Performance Matrix) as a fraction of the Target Award shall vest and become non-forfeitable (subject to Participant&rsquo;s
continuous Service from the Grant Date through the end of the Performance Period). On the Determination Date, any Restricted Stock
Units which do not vest in accordance with the immediately preceding sentence shall immediately be forfeited and cancelled, and
Participant shall not be entitled to any compensation or other amount with respect thereto. Notwithstanding any other provision
of this Agreement, but subject to Sections 2(b) and 3 hereof, no portion of the Restricted Stock Units shall vest until the Committee
has made the foregoing determinations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-weight: normal">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Qualified Liquidity Event</U>.&#9;For purposes of this Agreement, the term &ldquo;<U>Qualified Liquidity Event</U>&rdquo;
shall have the definition set forth in the Plan, except that 60% shall be deemed to replace 40% in clause (c) of the definition
in the Plan. Upon the occurrence of a Qualified Liquidity Event prior to the end of the Performance Period where a Replacement
Award (as defined below) is provided to Participant