-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 Va1GmsiMYRbArs2d5F8cw1VkELMdxzIVzSa3JH42/9i8koug4bZOQ2mEVRTfTwRd
 QoZ5RlxarrfEkRoUgvBhaw==

<SEC-DOCUMENT>0000950152-06-010424.txt : 20061228
<SEC-HEADER>0000950152-06-010424.hdr.sgml : 20061228
<ACCEPTANCE-DATETIME>20061228122402
ACCESSION NUMBER:		0000950152-06-010424
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20061221
ITEM INFORMATION:		Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20061228
DATE AS OF CHANGE:		20061228

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ULTRALIFE BATTERIES INC
		CENTRAL INDEX KEY:			0000875657
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690]
		IRS NUMBER:				161387013
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-20852
		FILM NUMBER:		061302104

	BUSINESS ADDRESS:	
		STREET 1:		2000 TECHNOLOGY PARKWAY
		CITY:			NEWARK
		STATE:			NY
		ZIP:			14513
		BUSINESS PHONE:		3153327100

	MAIL ADDRESS:	
		STREET 1:		2000 TECHNOLOGY PARKWAY
		CITY:			NEWARK
		STATE:			NY
		ZIP:			14513
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>l23874ae8vk.htm
<DESCRIPTION>ULTRALIFE BATTERIES    8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>Ultralife Batteries    8-K</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>United States<BR>
Securities and Exchange Commission</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>Current Report Pursuant to<BR>
Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>December&nbsp;21, 2006</B><BR>
(Date of Report)
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>ULTRALIFE BATTERIES, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B><BR>
(State of incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>000-20852</B><BR>
(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>16-1387013</B><BR>
(IRS Employer Identification No.)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="center"><B>2000 Technology Parkway, Newark, New York</B><BR>
(Address of principal executive offices)<BR></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>14513</B><BR>
(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>(315)&nbsp;332-7100</B><BR>
(Registrant&#146;s telephone number, including area code)
</DIV>

<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 100%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation
of the registrant under any of the following provisions (see General Instruction A.2. below):</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">







<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Item&nbsp;5.02</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>A.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Nancy Naigle Resignation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December&nbsp;27, 2006, Nancy Naigle tendered her resignation (effective December&nbsp;31, 2006) as
the Vice President of Sales and Marketing of Ultralife Batteries, Inc. (the &#147;Company&#148;). Ms.&nbsp;Naigle
will remain employed by the Company as a Vice President and will provide sales, marketing and
administrative support services to the Company. As a result of her resignation, Ms.&nbsp;Naigle will no
longer be an executive officer of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>B.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Executive Compensation Arrangements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December&nbsp;21, 2006, the Board of Directors (the &#147;Board&#148;) of the Company on the
recommendation of its Compensation and Management Committee (the &#147;Committee&#148;) adopted certain
material compensation arrangements for the Company&#146;s executive officers, including the Named
Executive Officers. The Company&#146;s Named Executive Officers are those executive officers for whom
disclosure is required in the Company&#146;s filings with the Securities and Exchange Commission
pursuant to Item 402(c) of Regulation&nbsp;S-K.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The material compensation arrangements for executive officers adopted by the Board consist of
(1)&nbsp;a base compensation plan, (2)&nbsp;a non-equity incentive plan, and (3)&nbsp;a long-term equity incentive
plan, under which stock options, performance-vested restricted shares, and time-vested restricted
shares can be awarded. In addition, the Committee adopted a policy to encourage ownership of the
Company&#146;s stock by the executive officers. Each of these arrangements and the new stock
ownership policy is summarized below. The Company&#146;s compensation policies will be discussed in
detail in the Compensation Discussion &#038; Analysis to be included in the Company&#146;s 2007 proxy
statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Base Compensation Plan</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the base compensation plan for 2007, each of the Named Executive Officers will receive
annual base compensation in the amount set forth opposite his name.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="18%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Title</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">John D. Kavazanjian
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief Executive Officer
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom">331,250</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">William A. Schmitz
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Operating Officer
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom">230,000</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Robert W. Fishback
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President of Finance and Chief
Financial Officer
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom">202,500</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Peter F. Comerford
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President of Administration and
General Counsel
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom">178,750</TD>
    <TD nowrap valign="bottom">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Non-Equity Incentive Plan</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Kavazanjian will be eligible to receive a cash award in an amount equal to up to 50% of
his 2007 annual base compensation under the non-equity incentive plan for 2007. The determination
as to whether Mr.&nbsp;Kavazanjian receives such cash award and the amount of such award actually paid
to him, if any, will be based on whether the Company meets predetermined targets for its operating
performance. The Company&#146;s operating performance must exceed 90% of the applicable targets in
order for Mr.&nbsp;Kavazanjian to receive a non-equity incentive plan award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Schmitz will be eligible to receive a cash award in an amount equal to up to 40% of his
2007 annual base compensation under the non-equity incentive plan for 2007. The determination as
to whether Mr.&nbsp;Schmitz receives such cash award and the amount of such award actually paid to him,
if any, will be based on whether the Company meets predetermined targets for its operating
performance. The Company&#146;s operating performance must exceed 90% of the applicable targets in
order for Mr.&nbsp;Schmitz to receive a non-equity incentive plan award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Fishback will be eligible to receive a cash award in an amount equal to up to 40% of his
2007 annual base compensation under the non-equity incentive plan for 2007. The determination as
to whether Mr.&nbsp;Fishback receives such cash award and the amount of such award actually paid to him,
if any, will be based on two factors, each of which is given equal weight and the satisfaction of
either of which could entitle Mr.&nbsp;Fishback to receive a cash award in an amount equal to up to 20%
of his 2007 annual base compensation. The first factor is whether the Company meets its
predetermined targets for operating performance. The second factor is the Committee&#146;s subjective
evaluation of Mr.&nbsp;Fishback&#146;s performance. The Company&#146;s operating performance must exceed 90% of
the applicable targets in order for Mr.&nbsp;Fishback to receive a non-equity incentive plan award on
account of the satisfaction of the first factor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Comerford will be eligible to receive a cash award in an amount equal to up to 30% of his
2007 annual base compensation under the non-equity incentive plan for 2007. The determination as
to whether Mr.&nbsp;Comerford receives such cash award and the amount of such award actually paid to
him, if any, will be based on two factors, each of which is given equal weight and the satisfaction
of either of which could entitle Mr.&nbsp;Comerford to receive a cash award in an amount equal to up to
15% of his 2007 annual base compensation. The first factor is whether the Company meets its
predetermined targets for operating performance. The second factor is the Committee&#146;s subjective
evaluation of Mr.&nbsp;Comerford&#146;s performance. The Company&#146;s operating performance must exceed 90% of
the applicable targets in order for Mr.&nbsp;Comerford to receive a non-equity incentive plan award on
account of the satisfaction of the first factor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All other executive officers will be eligible to receive a cash award in an amount equal to up
to 30% of their 2007 annual base compensation under the non-equity incentive plan for 2007. The
determination as to whether those executive officers receive such cash award and the amount of such
award actually paid to an executive officer, if any, will be based on two factors, each of which is
given equal weight and the satisfaction of either of which could entitle the executive officer to
receive a cash award in an amount equal to up to 15% of his 2007 annual base compensation. The
first factor is whether the Company meets its predetermined targets for
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">operating performance. The second factor is the Committee&#146;s subjective evaluation of the
executive officer&#146;s performance. The Company&#146;s operating performance must exceed 90% of the
applicable targets in order for the executive officer to receive a non-equity incentive plan award
on account of the satisfaction of the first factor.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Long-Term Incentive Plan</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Long-Term Incentive Plan of the Company consists of three components: (1)&nbsp;stock options,
(2)&nbsp;performance-vested restricted shares, and (3)&nbsp;time-vested restricted shares. Each component is
addressed, in turn, below.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Stock Options</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board granted options to purchase shares of the Company&#146;s common stock under the Company&#146;s
Long-Term Incentive Plan to its executive officers. The options have a seven-year term and vest
over a three-year period in equal installments. Mr.&nbsp;Kavazanjian received an option to purchase
30,000 shares, Mr.&nbsp;Schmitz and Mr.&nbsp;Fishback each received an option to purchase 15,000 shares, and
Mr.&nbsp;Comerford received an option to purchase 7,500 shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Performance-Vested Restricted Shares</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board granted performance-vested restricted shares of the Company&#146;s common stock under the
Company&#146;s Long-Term Incentive Plan to its executive officers. These shares vest in three equal
installments and become unrestricted only if the Company meets or exceeds the same predetermined
target for its operating performance for 2007, 2008 and 2009 as used for determining cash awards
pursuant to the non-equity incentive plan. Mr.&nbsp;Kavazanjian was granted 15,000 performance-vested
restricted shares, Mr.&nbsp;Schmitz and Mr.&nbsp;Fishback each were granted 7,500 performance-vested
restricted shares, and Mr.&nbsp;Comerford was granted 4,500 performance-vested restricted
shares. All other executive officers were granted 3,000 performance-vested restricted shares. The
plan also contemplates the ability to apply any excess operating performance to a prior year or a
subsequent year for purposes of satisfying the vesting requirements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Time-Vested Restricted Shares</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board granted time-vested restricted shares of the Company&#146;s common stock under the
Company&#146;s Long-Term Incentive Plan to its executive officers. These shares vest over a three-year
period in equal installments, commencing on first anniversary of the grant date. Mr.&nbsp;Kavazanjian
was granted 2,000 time-vested restricted shares, Mr.&nbsp;Schmitz and Mr.&nbsp;Fishback were each granted
2,500 time-vested restricted shares, and Mr.&nbsp;Comerford was granted 1,500 time-vested restricted
shares. Other executive officers were granted 1,000 time-vested restricted shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Stock Ownership Policy for Executive Officers</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board adopted a stock ownership policy for the Company&#146;s executive officers. Pursuant to
the policy, executive officers must own and hold a certain minimum number of shares of the
Company&#146;s common stock during a three-year period. During the first such period,
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Kavazanjian will be expected to own and hold shares of the Company&#146;s common stock having
an aggregate value equal to his 2007 annual base compensation, Mr.&nbsp;Schmitz will be expected to own
and hold shares having a value equal to one-half of his 2007 annual base compensation, Mr.&nbsp;Fishback
will be expected to own and hold shares having a value equal to one-half of his 2007 annual base
compensation, and Mr.&nbsp;Comerford will be expected to own and hold shares having a value equal to
one-third of his 2007 annual base compensation. All other executive officers will be expected to
own and hold shares having a value equal to one-third of their 2007 annual base compensation. The
Board expects to re-evaluate these stock ownership standards every three years.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At any time that an executive officer owns fewer shares than the applicable target ownership
amount, then until such time as he reaches the target ownership amount, any time he exercises an
option, he will be required to hold 50% of the net shares received on exercise (net being
determined by taking the maximum number of shares exercised and subtracting (a)&nbsp;that number of
shares sold in a broker-assisted cashless exercise to fund the exercise price and (b)&nbsp;that number
of shares sold to fund the tax payment, if any, required). Otherwise, there are no adverse
consequences to an executive officer owning fewer shares than the applicable target ownership
amount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Financial Statements and Exhibits</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit&nbsp;99.1 Naigle Resignation Letter
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date: December&nbsp;28, 2006
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>ULTRALIFE BATTERIES, INC.</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Peter F. Comerford</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Peter F. Comerford<BR>
Vice President of Administration &#038;<BR>
General Counsel</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>l23874aexv99w1.htm
<DESCRIPTION>EX-99.1
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="l23874al2387401.gif">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">December&nbsp;27, 2006
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Peter F. Comerford<BR>
Corporate Secretary<BR>
Ultralife Batteries, Inc.<BR>
2000 Technology Parkway<BR>
Newark, NY 14513

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dear Mr.&nbsp;Comerford:
</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Please accept this communication as my resignation as an officer of Ultralife Batteries, Inc.,
effective December&nbsp;31, 2006.</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">I look forward to working with you in my new role as Vice President.</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Thank you for your consideration.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Yours very truly,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="l23874al2387400.gif">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Nancy C. Naigle
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Ultralife Batteries, Inc. <B>&#149;</B> 2000 Technology Parkway <B>&#149;</B> Newark, NY 14513 <B>&#149;</B> 315-332-7100 <B>&#149;</B> Fax: 315-331-7800<BR>
www.ultralifebatteries.com
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>3
<FILENAME>l23874al2387401.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 l23874al2387401.gif
M1TE&.#EAS@!/`)$``)^%.@```/___P```"'Y!```````+`````#.`$\```+_
MC(\AR^GB$(.Q6G7SW"TKWE7@9%'><XKFR:7JXFIQ-,+L6-8V/1_K_/.T>KX0
M47*4@%RUG*YT##*!F^1G9\5DKR3F\M4419/2RS!JM):I7>_YH2MC8VLA.YVH
M<[<&?>I]`ZCT1.,GAD97!66&-[:E>-?81UCH2/3E)-FG$<<HF*<Y&9JIV:D"
M%E88]SD8JF=*.@JI:DA;2@F'BJ.[^MIV&#MK*_L+-Y?G>9N*TC,Z7&Q\C)R,
MR>OK)TN]!LO,UKQL*Z,M'`V-5B==9"ZZR_-=V\JJGN[#"5[N'&A/';RNY1V)
M'*ALX_RQ,_C'52!ZW*8!3-0.E;A^Q.0EI/?PF3]X_X/>50MGQEY$C2'Y\7&%
MRR%$CQ:YO!+Y$1_&F03U461X":,UG0C_[>094\D^/I,*EKHIJ5=02T3CH>0T
M,6'3>C]U%FS*,2!-=%E93-U4M>N\GE.^CD4IUBE/L]L:0A28T^S9K6I&=L.*
M-*U+LD/EVNU(YJ]<)&$#"[ZH5\A2=N<.#VZ;\NUBF&1@HDWK=C!5C7PY=]ZK
M]QI<QCGO:0;KV6I>04I;NWX-.[;LV;1KV[Z-.[?NW;Q[^_X-/+APW0"*&S^.
M/+GRY<R;.W\./;KTZ=2K6U=>X[KV[=R[>_\.GGGV\.3+FS^/'OKX].S;NW\O
M?3W\^?3KGY=O/[_^_?%!\/__#V"`QXT@H''#'8C@@04^EV"##L:VH'4/3DCA
M`A%^5V&&OUUXGX8>SL;A>Q^.&$>(]I&(H@`F_I=BA=[AMZ)Z+2)HWFTQS@A<
M>QL&B.-N\]&87X^V!>D@?4)"R)^+.AZIE(`?IL=D;NZ16&.4OE5)97A6!@?>
MC%UN*=R+7HH)9IC:"<E=F0F>B>9U0LZURRHRI>&<6I#("5HQ>%I(W1*F*-(+
MG-4H=5!,*=5Y0'&X_)E20PST5P4L7606*`R$%OH%H8\R%P!V?F(ZZ1.M;<*!
MC)$N:@.C%%0*ZBR!YME"J<EUNERLK:8JZJ6PJBA>K(VN&D9L=KJZ9Z7^'8=`
MK4:PJ#H2GKORFIR?A`![ZZU-F.!6L7*6"`"MSNV@+0ZO";KI@+X&NVJUSXH+
M[#WAYMJ)=.3B>JVF[7*KZ+EQ8D$);!^H&RJZVVX;7:?6'JSKO:OD>ZK`V$9F
M[0_3=L`LO+@\9_"S!P_+[VT:NQ1Q6&KR:>K()J,(Z<DJ>QC=RBYKF/++,J_)
MX,PVT]S<S3H#J>S./N?8\\]"\Q;TT$9+B=S12A-G[M).U];TTU(C.;5M!0``
!.S\_
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>4
<FILENAME>l23874al2387400.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 l23874al2387400.gif
M1TE&.#EASP`R`(```````/___R'Y!```````+`````#/`#(```+_C(^IR^T/
MHYRTVHNSWKQ'`(+>2);F:88JRK;N6XH(`-?VC1MK0N?^#\ST%K*@\8C4#8G)
MIA-79#ZGU%-4L:QJMY8KEJM1><&WK)0S!N[29!?[8/Y^DB%>O.V^SQABB;X\
M]H>7(JC#5_=1^,+V-DC2:(@%Z81(-.F(IFAV2:E7B=D">?4)1CI3IP@J5%BT
M@V<*)Y:JVL7:T_>:)@O;-CLA*OO`6<,KXXKI^RO8Q\A[X>P7AX@J#?US/-(L
M0J/]:`WA56E<_0U87GNXS>UP'CTL"1\+)WF;S$)M[V>W':">3ICOE)V!_;*(
M"TA(R3UNN);H>@<.8KR"!H=4;(4PV[A0_Z1<W9'(#MNS>A7W"#RIQF+&,`ZK
MR?ME"20\4U%:DES90:8WE"\5AL1U"F>L0`Z#*J%&02?/:Z,VJ?P#=%^,<`91
MVB1H*:?03!-]^B3Z4:1)K5:?*FP94ZG7E"[G'?6H,ITGL>C*^J/8[VU:H6JY
M9G6["V^]?R[;"9-#D>'@O'>'CCK3H"\:?=,4=QT:";/AD`1K'JN\SS/DOT8N
MB21*SZWCO&1/XL.&\>7%R[1S2/Z'677BK6L3^^XM>IK4H,N"@7-4V6E@C4Z/
M'B9N<;AS6YQNP\`G5^_*S4GM[EY,RT-490VQUD:!76_XJ72CO=W%V^_S]1M`
M>VO/)3ZH-?KI%S;TCT%'_=%GW2"P#1A>@0:V!6!.#8Y$VH.K2%A!6!1.>*$[
6TF58(8?NJ*-@@AZ2-]Z($9G81@$`.S\_
`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
