Just in case anyone is interested I've figured out how to use ultimatum effectivly now...
I answered my own question by experimentation and (i think) that freewills shield stops appearing if it is broken while the buff is active BUT it resets the damage each time you recast it (although I still need to check if you have to wait for the buff to end first and then recast or just recasting is good enough).
As i have already said casting ultimatum reduces damage to you shield. Basicly if you cast ultimatum and then freewill, most of the damage to your shield will be the 10% health decay. If you keep your vitality low then this is really small.
I currently have ~ 500 instint and 100 vitality. This shields me from 2500 damage over 5 turns and I recieve around 300-200 per turn from ultimatum. that means that if you recieve less than 1000 damage over those 5 turns your shields won't break and you can recast them again and again.
1000 damage doesn't sound like a lot but as ultimatum prevents 95% of damage that equates to 20k or 4k per turn. You are unlikly to recieve that much damage EACH turn but it is still possible. That said as a level 23 my shield didn't break agaist the final boss.
bear in mind if you DID manage to minimize your vitatly this could realistily be up to twice as effective.
I'd like to thank transitive for his amazing guide. My build an electric build now; just with a bit of ultimatum and sacrifice (you don't need allies if you can't be healed).
I'd like to try my build out against a pure electric so if someone could kindly post their charater code...
Thanks