EX-10.2






EXHIBIT 10.2



MATERION CORPORATION




Restricted Stock Units Agreement (Cash-Settled)




WHEREAS,       , (the “Grantee”) is an employee of Materion Corporation (named Brush
Engineered Materials Inc. on the Date of Grant), an Ohio corporation (the “Corporation”) or a
Subsidiary; and



WHEREAS, the execution of an agreement in the form hereof (this “Agreement”) has been
authorized by a resolution of the Compensation Committee (the “Committee”) of the Board of
Directors of the Corporation that was duly adopted on March 1, 2011 (the “Date of Grant”);



NOW, THEREFORE, pursuant to the Corporation’s 2006 Stock Incentive Plan (the “Plan”), the
Corporation hereby confirms to the Grantee the grant, effective on the Date of Grant, of      
Restricted Stock Units (as defined in the Plan) (“RSUs”), subject to the terms and conditions of
the Plan and the following additional terms, conditions, limitations and restrictions:



ARTICLE I




DEFINITIONS




All terms used herein with initial capital letters that are defined in the Plan shall have the
meanings assigned to them in the Plan when used herein with initial capital letters.



ARTICLE II




CERTAIN TERMS OF RESTRICTED STOCK UNITS




1. RSUs Not Transferable. The RSUs covered by the Agreement shall not be transferable
other than by will or pursuant to the laws of descent and distribution prior to payment.



2. Vesting and Payment of RSUs.




(a) General. Subject to the provisions of Sections 2(b), 2(c) and 2(d) of this
Article II, all of the RSUs covered by this Agreement shall become nonforfeitable if the
Grantee shall have remained in the continuous employ of the Corporation or a Subsidiary for
three years from the Date of Grant and shall be payable in cash to the Grantee on such date.




(b) Death or Disability. Notwithstanding the provisions of Section 2(a) of
this Article II, all of the RSUs covered by this Agreement shall immediately become
nonforfeitable and shall be immediately payable if the Grantee dies or becomes permanently
disabled (as hereinafter defined) while in the employ of the Corporation or a Subsidiary
during the three-year period from the Date of Grant. The Grantee shall be considered to
have become permanently disabled if the Grantee has suffered a permanent disability within
the meaning of the long-term disability plan in effect for, or applicable to, the Grantee
and is “disabled” within the meaning of Section 409A(a)(2)(C) of the Code.




(c) Retirement.




(i) If the Grantee should Retire (as hereinafter defined) one year or more
after the Date of Grant, notwithstanding the requirement of continuous employment
contained in Section 2(a) of this Article II, the RSUs covered by this Agreement
shall continue to vest and shall become payable three years from the Date of Grant,
provided that the RSUs shall be paid on any earlier date when payment would
otherwise have been made under this Section 2 of Article II if the Grantee had
continued employment through such date.




(ii) If the Grantee should Retire less than one year from the Date of Grant,
the RSUs covered by this Agreement shall be forfeited, unless the Committee
determines that such RSUs will continue to vest and become nonforfeitable three
years from the Date of Grant.




(iii) “Retire” shall mean the Grantee’s retirement from the Corporation or a
Subsidiary at age 65 or older or at 55 or older with 10 or more years of continuous
employment with the Corporation or a Subsidiary.




(d) Change in Control.




(i) Notwithstanding Section 2(a) of Article II above, the RSUs granted hereby
shall immediately become nonforfeitable and payable if at any time during the
employment of the Grantee and prior to the end of the three-year vesting period:




	 	(A)	 	a Change in Control (as defined in Section 2(g)
of this Article II) shall occur after the Date of Grant; and






	 	(B)	 	within two years following the Change in
Control the Grantee’s employment with the Corporation or a Subsidiary
is terminated by the Grantee as a Termination for Good Cause (as
defined in Section 2(f)) or the Grantee is terminated by the
Corporation other than as a “Termination for Cause.” If the Change in
Control constitutes a “change in control” for purposes of Section 409A
of the Code and if the Grantee incurs a “separation from service” for
purposes of Section 409A of the Code within two years following such
Change in Control, payment for the RSUs will be made upon the Grantee’s
separation from service, provided however, that if at
such time the Grantee is a “specified employee” as determined pursuant
to the identification methodology adopted by the Corporation in
compliance with Section 409A of the Code, the date of payment for the
RSUs shall be the first business day of the seventh month after the
date of the Grantee’s separation from service (or if earlier the
Grantee’s death). If payment is not made pursuant to the preceding
sentence because the Change in Control does not constitute a
“change-in-control” for purposes of Section 409A of the Code, then
payment shall be made at the earliest date that payment would have been
made under Section 2 of Article II if no Change in Control had
occurred, assuming continued employment through such date.






(ii) Notwithstanding anything in this Section 2(d) to the contrary, in
connection with a Business Combination (as defined below in Section 2(g)) the result
of which is that the Outstanding Corporation Voting Stock (as defined below in
Section 3(g)) is exchanged for or becomes exchangeable for securities of another
entity, cash or a combination thereof, if the entity resulting from such Business
Combination does not assume the RSUs evidenced hereby and the Corporation’s
obligations hereunder, or replace the RSUs evidenced hereby with a substantially
equivalent security of the entity resulting from such Business Combination, then the
RSUs evidenced hereby shall become exercisable as of immediately prior to such
Business Combination. Payment for the RSUs will be upon such Change in Control;
provided, however, if the Change in Control does not constitute a
“change in control” for purposes of Section 409A(a)(2)(A)(v) of the Code, then
payment for the RSUs will be made upon the date that payment otherwise would have
been made under Section 2 of Article II if no Change in Control had occurred,
assuming continued employment through such date.




(e) “Termination for Cause” means a termination of Grantee’s employment by
the Corporation for “Cause” (as defined in Section 7(f) of this Agreement).




(f) “Termination for Good Cause” shall mean the Grantee’s termination of the Grantee’s
employment with the Corporation or a Subsidiary as a result of the occurrence of any of the
following:




(i) a change in the Grantee’s principal location of employment that is greater
than 50 miles from its location as of the date hereof without the Grantee’s consent;
provided, however, that the Grantee hereby acknowledges that the Grantee may be
required to engage in travel in connection with the performance of the Grantee’s
duties hereunder and that such travel shall not constitute a change in the Grantee’s
principal location of employment for purposes hereof;




(ii) a material diminution in the Grantee’s base compensation;




(iii) a change in the Grantee’s position with the Corporation without the
Grantee’s consent such that there is a material diminution in the Grantee’s
authority, duties or responsibilities; or




(iv) any other action or inaction that constitutes a material breach by the
Corporation of the agreement under which the Grantee provides services.



Notwithstanding the foregoing, the Grantee’s termination of the Grantee’s employment with the
Corporation as a result of the occurrence of any of the foregoing shall not constitute a
“Termination for Good Cause” unless (a) the Grantee gives the Corporation written notice of such
occurrence within 90 days of such occurrence and such occurrence is not cured by the Corporation
within 30 days of the date on which such written notice is received by the Corporation and (b) the
Grantee actually terminates his or her employment with the Corporation prior to the 365th day
following such occurrence.




(g) For purposes of this Agreement, “Change in Control” means:




(i) The acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of voting securities of the Corporation
where such acquisition causes such Person to own (A) 30% or more of the combined
voting power of the then outstanding voting securities of the Corporation entitled
to vote generally in the election of directors (the “Outstanding Corporation Voting
Securities”) without the approval of the Incumbent Board as defined in (ii) below or
(B) 35% or more of the Outstanding Voting Securities of the Corporation with the
approval of the Incumbent Board; provided, however, that for purposes of this
subsection (i), the following acquisitions shall not be deemed to result in a Change
of Control: (I) any acquisition directly from the Corporation that is approved by
the Incumbent Board (as defined in subsection (ii), below), (II) any acquisition by
the Corporation or a subsidiary of the Corporation, (III) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Corporation
or any corporation controlled by the Corporation, (IV) any acquisition by any Person
pursuant to a transaction described in clauses (A), (B) and (C) of subsection (iii)
below, or (V) any acquisition by, or other Business Combination (as defined in (iii)
below) with, a person or group of which employees of the Corporation or any
subsidiary of the Corporation control a greater than 25% interest (a “MBO”) but only
if the Grantee is one of those employees of the Corporation or any subsidiary of the
Corporation that are participating in the MBO; provided, further, that if any
Person’s beneficial ownership of the Outstanding Corporation Voting Securities
reaches or exceeds 30% or 35%, as the case may be, as a result of a transaction
described in clause (I) or (II) above, and such Person subsequently acquires
beneficial ownership of additional voting securities of the Corporation, such
subsequent acquisition shall be treated as an acquisition that causes such Person to
own 30% or 35% or more, as the case may be, of the Outstanding Corporation Voting
Securities; and provided, further, that if at least a majority of the members of the
Incumbent Board determines in good faith that a Person has acquired beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
30% or more of the Outstanding Corporation Voting Securities inadvertently, and such
Person divests as promptly as practicable a sufficient number of shares so that such
Person beneficially owns (within the meanings of Rule 13d-3 promulgated under the
Exchange Act) less than 30% of the Outstanding Corporation Voting Securities, then
no Change of Control shall have occurred as a result of such Person’s acquisition;
or




(ii) individuals who, as of the date hereof, constitute the Board (the
“Incumbent Board” (as modified by this clause (ii)) cease for any reason to
constitute at least a majority of the Board; provided, however, that any individual
becoming a director subsequent to the date hereof whose election, or nomination for
election by the Corporation’s shareholders, was approved by a vote of at least a
majority of the directors then comprising the Incumbent Board (either by a specific
vote or by approval of the proxy statement of the Corporation in which such person
is named as a nominee for director, without objection to such nomination) shall be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of office
occurs as a result of an actual or threatened election contest with respect to the
election or removal of directors or other actual or threatened solicitation of
proxies or consents by or on behalf of a Person other than the Board; or




(iii) the consummation of a reorganization, merger or consolidation or sale or
other disposition of all or substantially all of the assets of the Corporation or
the acquisition of assets of another corporation, or other transaction (“Business
Combination”) excluding, however, such a Business Combination pursuant to which (A)
the individuals and entities who were the ultimate beneficial owners of voting
securities of the Corporation immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 65% of, respectively, the then
outstanding shares of common stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the entity resulting from such Business
Combination (including, without limitation, an entity that as a result of such
transaction owns the Corporation or all or substantially all of the Corporation’s
assets either directly or through one or more subsidiaries), (B) no Person
(excluding any employee benefit plan (or related trust) of the Corporation, the
Corporation or such entity resulting from such Business Combination) beneficially
owns, directly or indirectly (I) 30% or more, if such Business Combination is
approved by the Incumbent Board or (II) 35% or more, if such Business Combination is
not approved by the Incumbent Board, of the combined voting power of the then
outstanding securities entitled to vote generally in the election of directors of
the entity resulting from such Business Combination and (C) at least a majority of
the members of the board of directors of the corporation resulting from such
Business Combination were members of the Incumbent Board at the time of the
execution of the initial agreement, or of the action of the Board, providing for
such Business Combination; or




(iv) approval by the shareholders of the Corporation of a complete liquidation
or dissolution of the Corporation except pursuant to a Business Combination
described in clauses (A), (B) and (C) of subsection (iii), above.



3. Form and Time of Payment of RSUs. Except as otherwise provided for in Section 2 of
Article III, payment for the RSUs shall be made in form of cash at the time the RSUs vest and
become nonforfeitable or otherwise become payable in accordance with Section 2 of this Article II.
The cash payment shall be equal to (a) Market Value per Share on the date the RSUs vest and become
nonforfeitable times (b) the number of RSUs covered by this Agreement plus any dividend equivalents
accrued on the RSUs since the Date of Grant (as provided in Section 5 of this Article II below).
Payments will be made in U.S. Dollars, less any applicable federal, state, local or foreign
withholding taxes. For the avoidance of doubt, in no event shall the Grantee be entitled to
receive payment in any form other than cash, and under no circumstances shall the Grantee be
entitled to receive Common Shares or any other security hereunder.



4. Forfeiture of RSUs. The RSUs shall be forfeited, except as otherwise provided in
Section 2(b), 2(c) or 2(d) of this Article II above, if the Grantee ceases to be employed by the
Corporation or a Subsidiary prior to three years from the Date of Grant.



5. Dividend Equivalents. From and after the Date of Grant and until the earlier of
(a) the time when the RSUs vest and become nonforfeitable and payable in accordance with Section 2
of this Article II or (b) the time when the Grantee’s right to receive cash payment of the RSUs is
forfeited in accordance with Section 4 of this Article II, on the date that the Corporation pays a
cash dividend (if any) to holders of Common Shares generally, the Grantee shall be entitled to a
number of additional whole RSUs determined by dividing (i) the product of (A) the dollar amount of
the cash dividend paid per Common Share on such date and (B) the total number of RSUs (including
dividend equivalents paid thereon) previously credited to the Grantee as of such date, by (ii) the
Market Value per Share on such date. Such dividend equivalents (if any) shall be subject to the
same terms and conditions and shall be paid or forfeited in the same manner and at the same time as
the RSUs to which the dividend equivalents were credited.



6. Effect of Detrimental Activity. Notwithstanding anything herein to the contrary,
if the Grantee, either during employment by the Corporation or a Subsidiary or within one year
after termination of such employment, shall engage in any Detrimental Activity, (as hereinafter
defined) and the Board shall so find, the Grantee shall:




(a) Forfeit all RSUs held by the Grantee.




(b) With respect to any RSUs that have become nonforfeitable and been paid out pursuant
to this Agreement, pay to the Corporation in cash an amount equal to the payment Grantee
received when the RSUs became nonforfeitable.




(c) To the extent that the amount referred to in Section 6(b) above are not paid to the
Corporation, the Corporation may set off the amounts so payable to it against any amounts
that may be owing from time to time by the Corporation or a Subsidiary to the Grantee,
whether as wages, deferred compensation or vacation pay or in the form of any other benefit
or for any other reason, except that no setoff shall be permitted against any amount that
constitutes “deferred compensation” within the meaning of Section 409A of the Code.



7. For purposes of this Agreement, the term “Detrimental Activity” shall include:




(a) (i) Engaging in any activity in violation of the Section entitled “Competitive
Activity; Confidentiality; Nonsolicitation” in the Severance Agreement between the
Corporation and the Grantee, if such agreement is in effect at the date hereof, or in
violation of any corresponding provision in any other agreement between the Corporation and
the Grantee in effect on the date hereof providing for the payment of severance
compensation; or




(ii) If no such severance agreement is in effect as of the date hereof or if a
severance agreement does not contain a Section corresponding to “Competitive
Activity; Confidentiality; Nonsolicitation”:




(A) Competitive Activity During Employment. Competing with the
Corporation anywhere within the United States during the term of the Grantee’s
employment, including, without limitation:




(I) entering into or engaging in any business which competes with the
business of the Corporation;




(II) soliciting customers, business, patronage or orders for, or
selling, any products or services in competition with, or for any business
that competes with, the business of the Corporation;




(III) diverting, enticing or otherwise taking away any customers,
business, patronage or orders of the Corporation or attempting to do so; or




(IV) promoting or assisting, financially or otherwise, any person,
firm, association, partnership, corporation or other entity engaged in any
business which competes with the business of the Corporation.




(B) Following Termination. For a period of one year following the
Grantee’s termination date:




(I) entering into or engaging in any business which competes with the
Corporation’s business within the Restricted Territory (as hereinafter
defined);




(II) soliciting customers, business, patronage or orders for, or
selling, any products or services in competition with, or for any business,
wherever located, that competes with, the Corporation’s business within the
Restricted Territory;




(III) diverting, enticing or otherwise taking away any customers,
business, patronage or orders of the Corporation within the Restricted
Territory, or attempting to do so; or




(IV) promoting or assisting, financially or otherwise, any person,
firm, association, partnership, corporation or other entity engaged in any
business which competes with the Corporation’s business within the
Restricted Territory.




For the purposes of Sections 7(a)(ii)(A) and (B) above, inclusive, but
without limitation thereof, the Grantee will be in violation thereof if the
Grantee engages in any or all of the activities set forth therein directly
as an individual on the Grantee’s own account, or indirectly as a partner,
joint venturer, employee, agent, salesperson, consultant, officer and/or
director of any firm, association, partnership, corporation or other entity,
or as a stockholder of any corporation in which the Grantee or the Grantee’s
spouse, child or parent owns, directly or indirectly, individually or in the
aggregate, more than five percent (5%) of the outstanding stock.




(C) “The Corporation.” For the purposes of this Section 7(a)(ii) of
Article II, the “Corporation” shall include any and all direct and indirect
subsidiaries, parents, and affiliated, or related companies of the Corporation for
which the Grantee worked or had responsibility at the time of termination of the
Grantee’s employment and at any time during the two year period prior to such
termination.




(D) “The Corporation’s Business.” For the purposes of this Section 7
of Article II inclusive, the Corporation’s business is defined to be the
manufacture, marketing and sale of high performance engineered materials serving
global telecommunications and computer, magnetic and optical data storage, aerospace
and defense, automotive electronics, industrial components and appliance markets, as
further described in any and all manufacturing, marketing and sales manuals and
materials of the Corporation as the same may be altered, amended, supplemented or
otherwise changed from time to time, or of any other products or services
substantially similar to or readily substitutable for any such described products
and services.




(E) “Restricted Territory.” For the purposes of Section 8(a)(ii)(B) of
Article II, the Restricted Territory shall be defined as and limited to:




(I) the geographic area(s) within a one hundred mile radius of any and
all of the Corporation’s location(s) in, to, or for which the Grantee
worked, to which the Grantee was assigned or had any responsibility (either
direct or supervisory) at the time of termination of the Grantee’s
employment and at any time during the two-year period prior to such
termination; and




(II) all of the specific customer accounts, whether within or outside
of the geographic area described in (I) above, with which the Grantee had
any contact or for which the Grantee had any responsibility (either direct
or supervisory) at the time of termination of the Grantee’s employment and
at any time during the two-year period prior to such termination.




(F) Extension. If it shall be judicially determined that the Grantee
has violated any of the Grantee’s obligations under Section 7(a)(ii)(B) of Article
II, then the period applicable to each obligation that the Grantee shall have been
determined to have violated shall automatically be extended by a period of time
equal in length to the period during which such violation(s) occurred.




(b) Non-Solicitation. Except as otherwise provided in Section 7(a)(i) of
Article II, Detrimental Activity shall also include directly or indirectly at any time
soliciting or inducing or attempting to solicit or induce any employee(s), sales
representative(s), agent(s) or consultant(s) of the Corporation and/or of its parents, or
its other subsidiaries or affiliated or related companies to terminate their employment,
representation or other association with the Corporation and/or its parent or its other
subsidiary or affiliated or related companies.




(c) Further Covenants. Except as otherwise provided in Section 7(a)(i) of
Article II, Detrimental Activity shall also include:




(i) directly or indirectly, at any time during or after the Grantee’s
employment with the Corporation, disclosing, furnishing, disseminating, making
available or, except in the course of performing the Grantee’s duties of employment,
using any trade secrets or confidential business and technical information of the
Corporation or its customers or vendors, including without limitation as to when or
how the Grantee may have acquired such information. Such confidential information
shall include, without limitation, the Corporation’s unique selling, manufacturing
and servicing methods and business techniques, training, service and business
manuals, promotional materials, training courses and other training and
instructional materials, vendor and product information, customer and prospective
customer lists, other customer and prospective customer information and other
business information. The Grantee specifically acknowledges that all such
confidential information, whether reduced to writing, maintained on any form of
electronic media, or maintained in the Grantee’s mind or memory and whether compiled
by the Corporation, and/or the Grantee, derives independent economic value from not
being readily known to or ascertainable by proper means by others who can obtain
economic value from its disclosure or use, that reasonable efforts have been made by
the Corporation to maintain the secrecy of such information, that such information
is the sole property of the Corporation and that any retention and use of such
information by the Grantee during the Grantee’s employment with the Corporation
(except in the course of performing the Grantee’s duties and obligations to the
Corporation) or after the termination of the Grantee’s employment shall constitute a
misappropriation of the Corporation’s trade secrets.




(ii) Upon termination of the Grantee’s employment with the Corporation, for any
reason, the Grantee’s failure to return to the Corporation, in good condition, all
property of the Corporation, including without limitation, the originals and all
copies of any materials which contain, reflect, summarize, describe, analyze or
refer or relate to any items of information listed in Section 7(c)(i) of Article II
of this Agreement.




(d) Discoveries and Inventions. Except as otherwise provided in Section
8(a)(i) of Article II, Detrimental Activity shall also include the failure or refusal of the
Grantee to assign to the Corporation, its successors, assigns or nominees, all of the
Grantee’s rights to any discoveries, inventions and improvements, whether patentable or not,
made, conceived or suggested, either solely or jointly with others, by the Grantee while in
the Corporation’s employ, whether in the course of the Grantee’s employment with the use of
the Corporation’s time, material or facilities or that is in any way within or related to
the existing or contemplated scope of the Corporation’s business. Any discovery, invention
or improvement relating to any subject matter with which the Corporation was concerned
during the Grantee’s employment and made, conceived or suggested by the Grantee, either
solely or jointly with others, within one year following termination of the Grantee’s
employment under this Agreement or any successor agreements shall be irrebuttably presumed
to have been so made, conceived or suggested in the course of such employment with the use
of the Corporation’s time, materials or facilities. Upon request by the Corporation with
respect to any such discoveries, inventions or improvements, the Grantee will execute and
deliver to the Corporation, at any time during or after the Grantee’s employment, all
appropriate documents for use in applying for, obtaining and maintaining such domestic and
foreign patents as the Corporation may desire, and all proper assignments therefor, when so
requested, at the expense of the Corporation, but without further or additional
consideration.




(e) Work Made For Hire. Except as otherwise provided in Section 7(a)(i) of
Article II, Detrimental Activity shall also include violation of the Corporation’s rights in
any or all work papers, reports, documentation, drawings, photographs, negatives, tapes and
masters therefore, prototypes and other materials (hereinafter, “items”), including without
limitation, any and all such items generated and maintained on any form of electronic media,
generated by Grantee during the Grantee’s employment with the Corporation. The Grantee
acknowledges that, to the extent permitted by law, all such items shall be considered a
“work made for hire” and that ownership of any and all copyrights in any and all such items
shall belong to the Corporation. The item will recognize the Corporation as the copyright
owner, will contain all proper copyright notices, e.g., “(creation date) [Corporation’s
Name], All Rights Reserved,” and will be in condition to be registered or otherwise placed
in compliance with registration or other statutory requirements throughout the world.




(f) Termination for Cause. Except as otherwise provided in Section 8(a)(i) of
Article II, Detrimental Activity shall also include activity that results in termination for
Cause. For the purposes of this Section, “Cause” shall mean that, the Grantee shall have:




(i) been convicted of a criminal violation involving fraud, embezzlement, theft
or violation of federal antitrust statutes or federal securities laws in connection
with his duties or in the course of his employment with the Corporation or any
affiliate of the Corporation;




(ii) committed intentional wrongful damage to property of the Corporation or
any affiliate of the Corporation; or




(iii) committed intentional wrongful disclosure of secret processes or
confidential information of the Corporation or any affiliate of the Corporation;




and any such act shall have been demonstrably and materially harmful to the
Corporation.




(g) Other Injurious Conduct. Detrimental Activity shall also include any other
conduct or act determined to be injurious, detrimental or prejudicial to any significant
interest of the Corporation or any subsidiary unless the Grantee acted in good faith and in
a manner he or she reasonably believed to be in or not opposed to the best interests of the
Corporation.




(h) Reasonableness. The Grantee acknowledges that the Grantee’s obligations
under this Section 7 of Article II are reasonable in the context of the nature of the
Corporation’s business and the competitive injuries likely to be sustained by the
Corporation if the Grantee were to violate such obligations. The Grantee further
acknowledges that this Agreement is made in consideration of, and is adequately supported by
the agreement of the Corporation to perform its obligations under this Agreement and by
other consideration, which the Grantee acknowledges constitutes good, valuable and
sufficient consideration.



ARTICLE III




GENERAL PROVISIONS




1. Compliance with Law. The Corporation shall make reasonable efforts to comply with
all applicable federal and state securities laws.



2. Dilution and Other Adjustments. The Committee shall make such adjustments in the
RSUs covered by this Agreement as such Committee in its sole discretion, exercised in good faith,
may determine is equitably required to prevent dilution or enlargement of the rights of the Grantee
that otherwise would result from (a) any stock dividend, stock split, combination of shares,
recapitalization or other change in the capital structure of the Corporation, or (b) any merger,
consolidation, spin-off, reorganization, partial or complete liquidation or other distribution of
assets, or issuance of warrants or other rights to purchase securities, or (c) any other corporate
transaction or event having an effect similar to any of the foregoing. In the event of any such
transaction or event, the Committee may provide in substitution for this award of RSUs such
alternative consideration as it may in good faith determine to be equitable under the circumstances
and may require in connection therewith the surrender of this award of RSUs so replaced.



3. Continuous Employment. For purposes of this Agreement, the continuous employment
of the Grantee with the Corporation or a Subsidiary shall not be deemed to have been interrupted,
and the Grantee shall not be deemed to have ceased to be an employee of the Corporation or a
Subsidiary, by reason of the transfer of his employment among the Corporation and its Subsidiaries
or a leave of absence approved by the Board.



4. No Employment Contract; Right to Terminate Employment. The grant of the RSUs to
the Grantee is a voluntary, discretionary award being made on a one-time basis and it does not
constitute a commitment to make any future awards. The grant of the RSUs and any payments made
hereunder will not be considered salary or other compensation for purposes of any severance pay or
similar allowance, except as otherwise required by law. Nothing in this Agreement will give the
Grantee any right to continue employment with the Corporation or any Subsidiary, as the case may
be, or interfere in any way with the right of the Corporation or a Subsidiary to terminate the
employment of the Grantee at any time.



5. Relation to Other Benefits. Any economic or other benefit to the Grantee under
this Agreement or the Plan shall not be taken into account in determining any benefits to which the
Grantee may be entitled under any profit-sharing, retirement or other benefit or compensation plan
maintained by the Corporation or a Subsidiary and shall not affect the amount of any life insurance
coverage available to any beneficiary under any life insurance plan covering employees of the
Corporation or a Subsidiary.



6. Information. Information about the Grantee and the Grantee’s participation in the
Plan may be collected, recorded and held, used and disclosed for any purpose related to the
administration of the Plan. The Grantee understands that such processing of this information may
need to be carried out by the Corporation and its Subsidiaries and by third party administrators
whether such persons are located within the Grantee’s country or elsewhere, including the United
States of America. The Grantee consents to the processing of information relating to the Grantee
and the Grantee’s participation in the Plan in any one or more of the ways referred to above.



7. Amendments. Any amendment to the Plan shall be deemed to be an amendment to this
Agreement to the extent that the amendment is applicable hereto; provided, however,
that no amendment shall adversely affect the rights of the Grantee under this Agreement without the
Grantee’s consent. Notwithstanding the foregoing, the limitation requiring the consent of a
Grantee to certain amendments shall not apply to any amendment that is deemed necessary by the
Corporation to ensure compliance with Section 409A of the Code.



8. Severability. In the event that one or more of the provisions of this Agreement
shall be invalidated for any reason by a court of competent jurisdiction, any provision so
invalidated shall be deemed to be separable from the other provisions hereof, and the remaining
provisions hereof shall continue to be valid and fully enforceable.



9. Governing Law. This agreement is made under, and shall be construed in accordance
with, the internal substantive laws of the State of Ohio.



10. Compliance with Section 409A of the Code. To the extent applicable, it is
intended that this Agreement and the Plan comply with the provisions of Section 409A of the Code,
so that the income inclusion provisions of Section 409A(a)(1) of the Code do not apply to the
Grantee. This Agreement and the Plan shall be administered in a manner consistent with this
intent. Reference to Section 409A of the Code is to Section 409A of the Internal Revenue Code of
1986, as amended, and will also include any regulations or any other formal guidance promulgated
with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue
Service.



11. Relation to Severance Agreement. Section 2(d) of Article II hereof shall
supersede the provisions of any Severance Agreement between the Grantee and the Corporation, in
effect at the Date of Grant, providing for earlier vesting of the RSUs granted hereby in the event
of a Change in Control.



The undersigned Grantee hereby accepts the award granted pursuant to this Agreement on the
terms and conditions set forth herein.



Dated:



Grantee



Executed in the name of and on behalf of the Corporation at Mayfield Heights, Ohio as of this
     day of      , 2011.




BRUSH ENGINEERED MATERIALS INC.




By




[NAME]




[TITLE]