Exhibit 10.2



 






Exhibit 10.2




A. Schulman, Inc. 2002 Equity Incentive Plan

Restricted Stock Award Agreement


Congratulations on your selection as a Participant in the A. Schulman, Inc.
2002 Equity Incentive Plan (the “Plan”). This Award Agreement is between you,
as the undersigned Participant in the Plan, and A. Schulman, Inc., a Delaware
corporation (the “Company”). This Award Agreement and the Plan together govern
your rights under the Plan and set forth all of the conditions and limitations
affecting such rights. A copy of the Plan is attached to this Award Agreement.



Capitalized terms used in this Award Agreement shall have the meanings ascribed
to them in the Plan or in this Award Agreement. If there is any inconsistency
between the terms of this Award Agreement and the terms of the Plan, the Plan’s
terms shall supersede and replace the conflicting terms of this Award
Agreement.




Overview of Your Restricted Stock





	1.	 	Number of Shares Granted:                                                          
	 
	2.	 	Date of Grant:                                                                             (“Date of
Grant”).
	 
	3.	 	Vesting Period: The Restricted Stock shall vest in accordance with the
following schedule:






	(a)	 	One hundred percent (100%) of the Restricted Stock will vest on the
fourth (4th) anniversary of the Date of Grant provided you have
continued in the employment of the Company, its Affiliates, and/or its
Subsidiaries through such date (this time period is referred to herein
as the “Vesting Period”).
	 
	(b)	 	All restrictions shall lapse and the Restricted Stock shall become
one hundred percent (100%) vested upon your termination of employment
due to death or Disability, provided you have continued in the
employment of the Company, its Affiliates, and/or its Subsidiaries
through such event.
	 
	(c)	 	If you terminate employment due to Retirement, upon your
termination as an Employee due to such Retirement the Restricted Stock
will vest on a prorated basis, with the prorated amount determined by
taking the number of Shares of Restricted Stock granted to you
multiplied by a fraction, the numerator of which is the number of
completed months that have elapsed since the Date of Grant through your
effective date of Retirement, and the denominator of which is
forty-eight (48). Any remaining Shares of Restricted Stock that have
not vested in accordance with the preceding sentence shall be forfeited
to the Company in accordance with Paragraph 4 of this Award Agreement.






	 	 	If you take a leave of absence for medical reasons (as determined in
accordance with the Company’s disability plans—meaning you qualify for
disability benefits/salary continuation benefits), you will continue to vest
in your Award. If you take a leave of absence for nonmedical reasons
(except for military service as described in the next sentence of this
paragraph) and you are on leave for more than three (3) months (excluding
allowable time off which includes, but is not limited to, holidays, sick
days, and vacation) during the Vesting Period, you will forfeit the




[Employee Form]


1









 






	 	 	unvested
Shares of Restricted Stock awarded to you under this Award Agreement;
provided, however, if the state law that you are subject to allows you to
take a leave of absence for nonmedical reasons for a period in excess of
three (3) months, and the state law requires the Company to continue to
provide benefits under all Company benefit plans, the requirements of such
state law shall override this general provision. Notwithstanding anything
herein to the contrary, if you take a leave of absence for any service,
voluntary or involuntary, in the armed forces of the United States, you will
continue to vest in your Award.






	4.	 	Termination of Employment: In the event that you terminate employment
with the Company, its Affiliates, and/or its Subsidiaries for any reason
other than those reasons set forth in Paragraph 3(b) of this Award
Agreement, or in the event that the Company, its Affiliates, and/or its
Subsidiaries terminates your employment for any reason or no reason, all
of the unvested Shares of Restricted Stock you hold at the time of your
employment termination shall be forfeited to the Company without payment
by the Company of any consideration for the Restricted Stock. If any
Restricted Stock is forfeited, you hereby authorize the Company to cancel
the Restricted Stock and any certificates therefore and irrevocably
appoint the Company as your attorney-in-fact for this purpose.
	 
	5.	 	Removal of Restrictions: Certificates representing the Restricted Shares
issued in accordance with Paragraph 6 of this Award Agreement will be held
by the Company until the Vesting Period has lapsed or terminated pursuant
to this Paragraph 5 of this Award Agreement. Except as may otherwise be
provided herein and in the Plan, the Restricted Stock awarded pursuant to
this Award Agreement shall become freely transferable upon the vesting of
such Restricted Stock in accordance with Paragraph 3 (and as applicable,
the lapse of restrictions as set forth in Paragraph 7) of this Award
Agreement, subject to any restrictions on your ability to sell, pledge or
otherwise transfer such Shares under applicable federal, state and local,
domestic or foreign, securities laws. Subject to Paragraph 10, once the
Restricted Stock is no longer subject to any vesting restrictions, at your
request, a stock certificate will be delivered to you. Certificates
delivered to you evidencing such Shares may bear a legend to the effect
that they may only be sold, pledged or otherwise transferred in accordance
with applicable federal, state and local, domestic or foreign, securities
laws. You agree to sell or transfer such Shares only in accordance with
applicable laws.
	 
	6.	 	Voting Rights and Dividends: The Company will issue Shares of Restricted
Stock registered in your name upon your acceptance of this Award Agreement
as contemplated below and receipt by the Company of a stock power for the
Restricted Stock duly executed in blank in the form attached hereto as
Exhibit A. Thereafter, during the Vesting Period, you shall have all of
the rights of a stockholder of the Company with respect to the Restricted
Shares, including the ability to exercise full voting rights. In
addition, you shall be credited for all dividends and other distributions
paid with respect to the Shares of Restricted Stock. If any such dividends
or distributions are paid in Shares, the Shares shall be subject to the
same restrictions on transferability as are the Shares of Restricted Stock
with respect to which they were paid. In respect of all Restricted Stock
granted to you under this Award Agreement, the Company will pay to you in
cash (or issue to you in the case of distributions paid in Shares), within
thirty (30) days after the vesting of such Restricted Stock in accordance
with Paragraph 3 (and as applicable,




2









 






	 	 	the lapse of restrictions as set
forth in Paragraph 7) of this Award Agreement, an amount equal to all such
dividends and distributions declared since the Date of Grant of each
vested Share of Restricted Stock. No payment of any consideration shall
be made to you in respect of dividends and/or distributions credited with
respect to any of your Restricted Stock that has been forfeited under this
Agreement.
	 
	7.	 	Change in Control: In the event of a Change in Control, all restrictions
on the transferability of outstanding unvested Shares of Restricted Stock
as set forth in this Award Agreement (including those received pursuant to
Paragraph 6 of this Award Agreement) shall immediately lapse, and
thereafter such Shares shall be freely transferable, subject to applicable
federal, state and local, domestic or foreign, securities laws.
	 
	8.	 	Nontransferability: During the Vesting Period or until the earlier lapse
of restrictions as set forth in Paragraph 3 or 7 of this Award Agreement,
Restricted Stock awarded pursuant to this Award Agreement may not be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated
(“Transfer”), other than by will or by the laws of descent and
distribution, except as provided in the Plan. If any Transfer, whether
voluntary or involuntary, of Restricted Stock is made, or if any
attachment, execution, garnishment, or lien shall be issued against or
placed upon the Restricted Stock, your right to such Restricted Stock
shall be immediately forfeited to the Company, and this Award Agreement
shall lapse.
	 
	9.	 	Requirements of Law: The granting of Restricted Stock under the Plan
shall be subject to all applicable laws, rules, and regulations, and to
such approvals by any governmental agencies, national securities exchanges
or automated quotation systems as may be required. You will take all
steps necessary to comply with all applicable federal and state securities
laws in exercising your rights under this Award Agreement.
	 
	10.	 	Tax Withholding: The Company shall have the power and the right to
deduct or withhold, or require you or your beneficiary to remit to the
Company, an amount sufficient to satisfy federal, state, and local taxes,
domestic or foreign, required by law or regulation to be withheld with
respect to any taxable event arising as a result of this Award Agreement.
In this regard, to the extent that the Company shall be required to deduct
or withhold, or you or your beneficiary are required to remit to the
Company, any such taxes upon the vesting of the Restricted Stock (together
with any Shares received pursuant to Paragraph 6 of this Award Agreement)
(collectively, the “Vesting Shares”) that you hold in accordance with
Paragraph 3 (and as applicable, the lapse of restrictions as set forth in
Paragraph 7) of this Award Agreement, and amounts available to the Company
for such withholding are insufficient, the Company shall have the right to
retain the certificates representing the Vesting Shares until such time as
you have paid to the Company an amount sufficient to satisfy all such
federal, state and local taxes (including your FICA obligations) required
by law with respect to the lapse of restrictions on the Vesting Shares
(the “Tax Liability”). In the event your employment with the Company
terminates prior to paying to the Company an amount sufficient to
discharge the Tax Liability, and notwithstanding any provision in the Plan
or this Award Agreement to the contrary, you shall forfeit all right and
title to such Vesting Shares for no consideration and the Company shall
have no further obligation with respect to such Vesting Shares. In the
event you shall not have so paid to the Company by the date that is six
(6) months after the date hereof an amount sufficient to satisfy the Tax
Liability, the Company shall have the right to sell such number of the
Vesting




3









 






	 	 	Shares as shall have a fair market value at the time of sale equal
to the amount of the Tax Liability and the Company shall be permitted to
apply the proceeds of such sale in satisfaction of the Tax Liability. In
furtherance of the right of the Company to sell such Vesting Shares as
provided herein, upon the Company’s request you will take such actions as
necessary to enable the Company to sell such Vesting Shares, including,
without limitation, bargaining, assigning and transferring the Vesting
Shares to the Company and delivering to the Company such additional stock
powers of attorney for the Vesting Shares executed in blank in such form
as requested by the Company, irrevocably constituting and appointing the
holder of such power of attorney to, in your name and stead, assign,
transfer and set over all or any part of the said Vesting Shares, and for
that purpose, to make and execute all necessary acts of assignment and
transfer, and one or more persons to substitute with like full power.
	 
	11.	 	Administration: This Award Agreement and your rights hereunder are
subject to all the terms and conditions of the Plan, as the same may be
amended from time to time, as well as to such rules and regulations as the
Committee may adopt for administration of the Plan. It is expressly
understood that the Committee is authorized to administer, construe, and
make all determinations necessary or appropriate to the administration of
the Plan and this Award Agreement, all of which shall be binding upon you,
the Participant.
	 
	12.	 	Continuation of Employment: This Award Agreement shall not confer upon
you any right to continuation of employment by the Company, its
Affiliates, and/or its Subsidiaries, nor shall this Award Agreement
interfere in any way with the Company’s, its Affiliates’, and/or its
Subsidiaries’ right to terminate your employment at any time.
	 
	13.	 	Amendment to the Plan: Subject to certain limitations, the Committee may
terminate, amend, or modify the Plan; provided, however, that no such
termination, amendment, or modification of the Plan may in any way
adversely affect your rights under this Award Agreement, without your
written approval.
	 
	14.	 	Successor: All obligations of the Company under the Plan and this Award
Agreement, with respect to the Restricted Stock, shall be binding on any
successor to the Company, whether the existence of such successor is the
result of a direct or indirect purchase, merger, consolidation, or
otherwise, of all or substantially all of the business and/or assets of
the Company. In the event such successor does not agree to be bound by
this Award Agreement, the Restricted Stock granted hereunder shall
immediately vest and all restrictions shall lapse.
	 
	15.	 	Applicable Laws and Consent to Jurisdiction: The validity, construction,
interpretation, and enforceability of this Award Agreement shall be
determined and governed by the laws of the State of Ohio without giving
effect to the principles of conflicts of law. For the purpose of
litigating any dispute that arises under this Award Agreement, the parties
hereby consent to exclusive jurisdiction and agree that such litigation
shall be conducted in the federal or state courts of the State of Ohio.
	 
	16.	 	Severability: The provisions of this Award Agreement are severable and
if any one or more provisions are determined to be illegal or otherwise
unenforceable, in whole or in part, the remaining provisions shall
nevertheless be binding and enforceable.




4









 







	17.	 	Additional Information: Please refer any questions you may have
regarding your Award to Marilyn Shriner at the Company’s executive
offices, 3550 West Market Street, Akron, Ohio 44333, or such other
administrator as designated from time to time by the Company.
	 
	18.	 	Acknowledgement: By executing this Award Agreement below, you will be
agreeing to participate in the Plan and abide by all of the governing
terms and provisions of the Plan and this Award Agreement. By agreeing to
participate, you acknowledge that you have reviewed the Plan and this
Award Agreement, and fully understand all of your rights under the Plan
and this Award Agreement, and the Company’s remedies if you violate the
terms of this Award Agreement, as well as, all of the terms and conditions
that may limit your eligibility to retain and receive the Restricted Stock
and/or Shares issued pursuant to the Plan and this Award Agreement.





	 	 	 
	                                  , 20         

	 	A. SCHULMAN, INC.
	 
	 	 
	

	 	By:


	 
	 	 
	

	 	Its:









Acknowledged and Agreed to this          , day of                                       , 20         




	 	 	 
	 

	 	

	

	 	PARTICIPANT







5









 







Exhibit A




Stock Power





 









 








STOCK POWER



FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto                                                                                                                                                                                                                                                        
(                                                         ) Shares of the Common Stock of A. Schulman, Inc.
standing in my name on the books of said Corporation represented by Certificate(s)
No(s).                     herewith, and do hereby irrevocably constitute and appoint                                                                                                                                                        
attorney to transfer the said stock on the books of said Corporation with
full power of substitution in the premises, hereby ratifying and confirming all
that the undersigned’s said attorney shall lawfully do by virtue hereof.




Dated