Common use of Incentive Compensation (Cash) Clause in Contracts

Incentive Compensation (Cash). (i) Ultra agrees to pay, and Executive shall be eligible to receive, cash incentive compensation (any such compensation, a “Cash Incentive”) pursuant to short-term incentive programs for Ultra established by the Compensation Committee (each such program, an “AIP”). Each AIP is expected to be for a one-year performance period and is expected to establish reasonable performance targets and goals that reflect and take into account Ultra’s shorter-term corporate objectives. (ii) Executive’s target Cash Incentive shall be equal to the percentage of Base Salary set forth on Schedule 1 attached hereto (as adjusted pursuant to the terms hereof, the “Target AIP Amount”). (iii) Executive’s Target AIP Amount will be reviewed at least annually by the Committee and the CEO and may be increased (but not decreased) based on the then-current market conditions for executives holding the same or equivalent positions with companies of comparable size, nature, and scope to Ultra. (iv) During the first quarter after the end of the performance period applicable to an AIP, the Committee will evaluate Ultra’s performance compared to the performance targets and goals in the then-applicable AIP and determine the aggregate amount that should be paid to participants in such AIP. Thereafter, the CEO and Ultra’s Director of Human Resources (the “HR Director”) shall determine, taking into account Executive’s performance, the amount of any AIP payout to Executive, which may be between 0% and 200% of Executive’s Target AIP Amount, and cause Ultra Resources to pay the applicable Cash Incentive, if any, to Executive. (v) An AIP for fiscal year 2017 has been established prior to the Effective Date, and Executive shall participate in it as though this Agreement were in place at the time it was established. (vi) Ultra and Executive expect an AIP to be established during the first quarter of 2018 and any other years while this Agreement or any Extension is in effect. Ultra and Executive agree that if an AIP is not established during the first quarter of any of such years, then the Compensation Committee will consider establishing an alternative incentive compensation program, which may provide for the payment of compensation in cash, appropriate for the then-applicable conditions at Ultra and in the oil and gas industry at such time. (vii) Executive must be employed by Ultra on the date a Cash Incentive is to be paid in order to receive the payment.

Incentive Compensation (Cash). (i) Ultra agrees to pay, and Executive shall be eligible to receive, cash incentive compensation (any such compensation, a “Cash Incentive”) pursuant to short-term incentive programs for Ultra established by the Compensation Committee (each such program, an “AIP”). Each AIP is expected to be for a one-year performance period and is expected to establish reasonable performance targets and goals that reflect and take into account Ultra’s shorter-term corporate objectives. (ii) Executive’s target Cash Incentive shall be equal to the percentage of Base Salary set forth on Schedule 1 attached hereto (as adjusted pursuant to the terms hereof, the “Target AIP Amount”). (iii) Executive’s Target AIP Amount will be reviewed at least annually by the Committee and the CEO and may be increased (but not decreased) based on the then-current market conditions for executives holding the same or equivalent positions with companies of comparable size, nature, and scope to Ultra. (iv) During the first quarter after the end of the performance period applicable to an AIP, the Committee will evaluate Ultra’s performance compared to the performance targets and goals in the then-applicable AIP and determine the aggregate amount that should be paid to participants in such AIP. Thereafter, the CEO CEO, the Supervisor, and Ultra’s Director of Human Resources (the “HR Director”) shall determine, taking into account Executive’s performance, the amount of any AIP payout to Executive, which may be between 0% and 200% of Executive’s Target AIP Amount, and cause Ultra Resources to pay the applicable Cash Incentive, if any, to Executive. (v) An AIP for fiscal year 2017 has been established prior to the Effective Date, and Executive shall participate in it as though this Agreement were in place at the time it was established. (vi) Ultra and Executive expect an AIP to be established during the first quarter of 2018 and any other years while this Agreement or any Extension is in effect. Ultra and Executive agree that if an AIP is not established during the first quarter of any of such years, then the Compensation Committee will consider establishing an alternative incentive compensation program, which may provide for the payment of compensation in cash, appropriate for the then-applicable conditions at Ultra and in the oil and gas industry at such time. (vii) Executive must be employed by Ultra on the date a Cash Incentive is to be paid in order to receive the payment.

Incentive Compensation (Cash). (i) Ultra agrees to pay, and Executive shall be eligible to receive, cash incentive compensation (any such compensation, a “Cash Incentive”) pursuant to short-term incentive programs for Ultra established by the Compensation Committee (each such program, an “AIP”). Each AIP is expected to be for a one-year performance period and is expected to establish reasonable performance targets and goals that reflect and take into account Ultra’s shorter-term corporate objectives. (ii) Executive’s target Cash Incentive shall be equal to the percentage of Base Salary set forth on Schedule 1 attached hereto (as adjusted pursuant to the terms hereof, the “Target AIP Amount”). (iii) Executive’s Target AIP Amount will be reviewed at least annually by the Compensation Committee and the CEO and may be increased (but not decreased) based on the then-current market conditions for executives holding the same or equivalent positions with companies of comparable size, nature, and scope to Ultra. (iv) During the first quarter after the end of the performance period applicable to an AIP, the Compensation Committee will evaluate Ultra’s performance compared to the performance targets and goals in the then-applicable AIP and determine the aggregate amount that should be paid to participants in such AIP. Thereafter, the CEO and Ultra’s Director of Human Resources (the “HR Director”) Compensation Committee shall determine, taking into account Executive’s performance, the amount of any AIP payout to Executive, which may be between 0% and 200% of Executive’s Target AIP Amount, and cause Ultra Resources to pay the applicable Cash Incentive, if any, to Executive. (v) An AIP for fiscal year 2017 has been established prior to the Effective Date, and Executive shall participate in it as though this Agreement were in place at the time it was established. (vi) Ultra and Executive expect an AIP to be established during the first quarter of 2018 and any other years while this Agreement or any Extension is in effect. Ultra and Executive agree that if an AIP is not established during the first quarter of any of such years, then the Compensation Committee will consider establishing an alternative incentive compensation program, which may provide for the payment of compensation in cash, appropriate for the then-applicable conditions at Ultra and in the oil and gas industry at such time. (vii) Executive must be employed by Ultra on the date a Cash Incentive is to be paid in order to receive the payment.