# EDGAR Filing Document

**Accession Number:** 0000069488
**File Stem:** 0000950170-23-005988
**Filing Date:** 2023-3
**Character Count:** 410994
**Document Hash:** e4c73fb8b32937e38ad539864f4298f6
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-23-005988.hdr.sgml**: 20230303

**ACCESSION NUMBER**: 0000950170-23-005988

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 117

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230303

**DATE AS OF CHANGE**: 20230303

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** MYERS INDUSTRIES INC
- **CENTRAL INDEX KEY:** 0000069488
- **STANDARD INDUSTRIAL CLASSIFICATION:** PLASTICS PRODUCTS, NEC [3089]
- **IRS NUMBER:** 340778636
- **STATE OF INCORPORATION:** OH
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-08524
- **FILM NUMBER:** 23703678

**BUSINESS ADDRESS:**
- **STREET 1:** 1293 S MAIN ST
- **CITY:** AKRON
- **STATE:** OH
- **ZIP:** 44301
- **BUSINESS PHONE:** 330-253-5592

**MAIL ADDRESS:**
- **STREET 1:** 1293 SOUTH MAIN STREET
- **CITY:** AKRON
- **STATE:** OH
- **ZIP:** 44301

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MYERS TIRE SUPPLY CO
- **DATE OF NAME CHANGE:** 19720609

?xml version="1.0" encoding="ASCII"? 10-K

2019

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM** 10-K

☒**ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**FOR THE FISCAL YEAR ENDED** **December 31,** 2022

**OR**

☐**TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ________ TO ________**

**COMMISSION FILE NUMBER** 001-08524

MYERS INDUSTRIES, INC.

**(Exact name of registrant as specified in its charter)**

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| | |
|:---|:---|
| OH**IO** | 34-0778636 |
| **(State or other jurisdiction of**<br>**incorporation or organization)** | **(IRS Employer Identification Number)** |

---

---

| | | |
|:---|:---|:---|
| 1293 S. MAIN STREET**,** AKRON**,** OH**IO**<br>**(Address of Principal Executive Offices)** | 44301<br>**(Zip Code)** | **(**330**)** 253-5592<br>**(Telephone Number)** |

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**Securities registered pursuant to Section 12(b) of the Act:**

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| | | |
|:---|:---|:---|
| **Title of Each Class** | **Trading Symbol** | **Name of Exchange on Which Registered** |
| Common Stock, without par value | MYE | New York Stock Exchange |

---

**Securities Registered Pursuant to Section 12(g) of the Act: None**

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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| | | | |
|:---|:---|:---|:---|
| Large accelerated filer  | ☐ | Accelerated filer  | ☒ |
| Non-Accelerated filer  | ☐ | Smaller reporting company  | ☐ |
|  |  | Emerging growth company  | ☐ |

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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive oﬃcers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the closing sale price on the New York Stock Exchange as of June 30, 2022: $470,633,174

Indicate the number of shares outstanding of registrant's common stock as of February 24, 2023: 36,563,078 Shares of Common Stock, without par value.

**DOCUMENTS INCORPORATED BY REFERENCE:**

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Portions of the Registrant's Definitive Proxy Statement for its 2022 Annual Meeting of Stockholders are incorporated by reference in Part III of this Form 10-K.

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| [<u>PART I</u>](#part_i) |  |  |
|  | [<u>ITEM 1. Business</u>](#item_1_business) | 4 |
|  | [<u>ITEM 1A. Risk Factors</u>](#item_1a_risk_factors) | 10 |
|  | [<u>ITEM 1B. Unresolved Staff Comments</u>](#item_1b_unresolved_staff_comments) | 17 |
|  | [<u>ITEM 2. Properties</u>](#item_2_properties) | 18 |
|  | [<u>ITEM 3. Legal Proceedings</u>](#item_3_legal_proceedings) | 19 |
| [<u>PART II</u>](#part_ii) |  |  |
|  | [<u>ITEM 5. Market for Registrant's Common Stock, Related Stockholder Matters and Issuer Purchases of Equity Securities</u>](#item_5_market_for_registrants_common_sto) | 20 |
|  | [<u>ITEM 6. Reserved</u>](#item_6_selected_financial_data) | 21 |
|  | [<u>ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#item_7_managements_discussion_analysis_r) | 22 |
|  | [<u>ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk</u>](#item_7a_quantitative_qualitative_disclos) | 26 |
|  | [<u>ITEM 8. Financial Statements and Supplementary Data</u>](#item_8_financial_statements_supplementar) | 27 |
|  | [<u>Report of Independent Registered Public Accounting Firm - Ernst & Young LLP (PCAOB Firm ID No.</u> 42<u>)</u>](#report_independent_registered_public_acc) | 27 |
|  | [<u>Consolidated Statements of Operations</u>](#consolidated_statements_operations) | 29 |
|  | [<u>Consolidated Statements of Comprehensive Income (Loss)</u>](#consolidated_statements_comprehensive_in) | 30 |
|  | [<u>Consolidated Statements of Financial Position</u>](#consolidated_statements_financial_positi) | 31 |
|  | [<u>Consolidated Statements of Shareholders' Equity</u>](#consolidated_statements_shareholders_equ) | 32 |
|  | [<u>Consolidated Statements of Cash Flows</u>](#consolidated_statements_cash_flows) | 33 |
|  | [<u>Notes to Consolidated Financial Statements</u>](#notes_to_consolidated_financial_statemen) | 34 |
|  | [<u>ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</u>](#item_9_changes_in_disagreements_with_acc) | 56 |
|  | [<u>ITEM 9A. Controls and Procedures</u>](#item_9a_controls_procedures) | 56 |
|  | [<u>ITEM 9B. Other Information</u>](#item_9b_or_information) | 59 |
|  | [<u>ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections</u>](#item_9c_foreign_jurisdictions) | 59 |
| [<u>PART III</u>](#part_iii) |  |  |
|  | [<u>ITEM 10. Directors, Executive Officers and Corporate Governance</u>](#item_10_directors_executive_ficers__regi) | 60 |
|  | [<u>ITEM 11. Executive Compensation</u>](#item_11_executive_compensation) | 60 |
|  | [<u>ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters</u>](#item_12_security_ownership_certain_benef) | 61 |
|  | [<u>ITEM 13. Certain Relationships and Related Transactions, and Director Independence</u>](#item_13_certain_relationships_related_tr) | 61 |
|  | [<u>ITEM 14. Principal Accounting Fees and Services</u>](#item_14_principal_accounting_fees_servic) | 61 |
| [<u>PART IV</u>](#part_iv) |  |  |
|  | [<u>ITEM 15. Exhibits, Financial Statement Schedules</u>](#item_15_exhibits_financial_statement_sch) | 62 |
| [<u>SIGNATURES</u>](#signatures) | [<u>SIGNATURES</u>](#signatures) | 65 |
|  | Exhibit 21 |  |
|  | Exhibit 23 |  |
|  | Exhibit 31(a) |  |
|  | Exhibit 31(b) |  |
|  | Exhibit 32 |  |
|  | Exhibit 101 |  |

---

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**PART I**

**ITEM 1. Business**

**General Development of Business**

Myers Industries, Inc. (the "Company") was founded in 1933 and is headquartered in Akron, Ohio. The terms "Myers Industries," "Company," "we," "us," or "our" wherever used herein refer to the Company, unless the context indicates to the contrary. Since its founding, the Company has grown from a small storefront distributing tire service supplies into an international manufacturing and distribution enterprise. In 1971, the Company went public, and the stock is traded on the New York Stock Exchange under the ticker symbol MYE.

The Company is a leader in the manufacturing of plastic reusable material handling containers and pallets, and plastic fuel tanks as well as the largest distributor of tools, equipment and supplies for the tire, wheel and under-vehicle service industry in the United States. Our plastic bulk containers replace single-use packaging, reducing waste and improving sustainability.

As of December 31, 2022, the Company operated seventeen manufacturing facilities, seven sales offices, nine distribution centers and three distribution branches located throughout North and Central America; and has approximately 2,500 employees.

Serving customers around the world, Myers Industries' brands provide sustainable solutions to a wide variety of customers in diverse niche markets. Myers Industries' diverse products and solutions help customers to improve shop productivity with point of use inventory, to store and transport products more safely and efficiently, to improve sustainability through reuse, to lower overall material handling costs, to improve ergonomics for their labor force, to eliminate waste and to ultimately increase profitability.

The Company's business strategy is focused on transforming its Material Handling Segment into a high-growth, customer-centric innovator of engineered plastic solutions while continuing to optimize and grow its Distribution Segment. Myers Industries' long-term plan is comprised of three, three-year horizons, each outlining specific actions to drive profitable revenue growth. Actions during the first horizon are focused on four strategic pillars:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•driving organic growth through sales and commercial excellence, pricing focus, innovation and e-commerce;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•operational excellence through continuous improvement, purchasing rigor and selling, general and administrative ("SG&A") expense optimization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•complementing organic growth through bolt on acquisitions that can expand opportunities in current and adjacent markets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•developing a high-performance mindset and culture focused on safety first, talent development, inclusion, servant leadership and community involvement.

The Company has made substantial progress against the first horizon of its strategic plan, which was introduced in late 2020. In 2023, the Company is beginning the transition from horizon one to horizon two, continuing to execute on the four pillars above while exploring larger acquisitions.

**Description of Business**

The Company conducts its business activities in two distinct business segments, Material Handling and Distribution, consistent with the manner in which the Company's Chief Operating Decision Maker evaluates performance and makes resource allocation decisions.

The Material Handling Segment manufactures a broad selection of durable plastic reusable containers that are used repeatedly during the course of their service life. At the end of their service life, these highly sustainable products can be recovered, recycled, and reprocessed into new products. The Material Handling Segment's products include pallets, small parts bins, bulk shipping containers, storage and organization products, OEM parts, custom plastic products, consumer fuel containers and tanks for water, fuel and waste handling. Products in the Material Handling Segment are primarily injection molded, rotationally molded or blow molded. Injection molding and blow molding primarily use electric power to heat and press resin into molds to form the products. Rotational molding involves multi-axis rotation of molds in natural gas fired ovens to form the resin into our products. The Material Handling Segment conducts operations in the United States and Canada. The Material Handling Segment serves a wide variety of markets, including industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational vehicles, marine vehicles, healthcare, appliance, bakery, electronics, textiles, consumer markets, among others. Products are sold both directly to end-users and through distributors.

The Distribution Segment is engaged in the distribution of tools, equipment and supplies used for tire servicing, wheel and automotive under-vehicle service on passenger, heavy truck and off-road vehicles and the manufacturing of tire repair materials and custom rubber

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products. The Distribution Segment also manufactures and sells permanent and temporary reflective highway marking tape. The Distribution Segment operates domestically through its sales offices and nine regional distribution centers in the United States, and in certain foreign countries through export sales as well as branch operations principally in Central America. The Distribution Segment serves retail and truck tire dealers, commercial auto and truck fleets, truck stop operations, auto dealers, general service and repair centers, tire re-treaders, and government agencies.

On May 31, 2022, the Company acquired the assets of Mohawk Rubber Sales of New England Inc. ("Mohawk"), a leading auto aftermarket distributor, which is included in the Company's Distribution Segment. Mohawk's annual sales were approximately $65 million at the time of the acquisition.

On July 30, 2021, the Company acquired the assets of Trilogy Plastics, Inc. ("Trilogy"), a manufacturer of custom products for the industrial, consumer, lawn and garden, heavy truck, medical and other markets, which is included in the Company's Material Handling Segment. Trilogy's annual sales were approximately $35 million at the time of the acquisition.

On November 10, 2020, the Company acquired the assets of Elkhart Plastics, Inc. ("Elkhart Plastics"), a manufacturer of engineered products for the recreational vehicle, marine, agricultural, construction, truck and other industries, which is included in the Company's Material Handling Segment. Elkhart Plastics' annual sales were approximately $100 million at the time of the acquisition.

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The following table summarizes the key attributes of the business segments for the year ended December 31, 2022:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Material Handling Segment** | **Material Handling Segment** | **Material Handling Segment** | **Material Handling Segment** | **Material Handling Segment** | **Material Handling Segment** | **Material Handling Segment** | **Material Handling Segment** | **Material Handling Segment** |
| **Net** <br>**Sales** |  | **Key Product Areas** |  | **Product Brands** |  | **Key Capabilities &** <br>**Services** |  | **Representative Markets** |
| $647.6 |  | Plastic Reusable Containers & |  | Akro-Mils® |  | Plastic Rotational Molding |  | Agriculture |
| 72% |  | Pallets |  | Jamco® |  | Plastic Injection Molding |  | Automotive |
|  |  | Plastic Storage & |  | Buckhorn® |  | Structural Foam Molding |  | Food Processing |
|  |  | Organizational Products |  | Ameri-Kart® |  | Plastic Blow Molding |  | Food Distribution |
|  |  | Plastic and Metal Carts |  | Scepter® |  | Material Regrind & Recycling |  | Healthcare |
|  |  | Metal Cabinets |  | Elkhart Plastics™ |  | Product Design |  | Industrial |
|  |  | Custom Products |  | Trilogy Plastics |  | Prototyping |  | Manufacturing |
|  |  |  |  |  |  | Product Testing |  | Retail Distribution |
|  |  |  |  |  |  | Material Formulation |  | Wholesale Distribution |
|  |  |  |  |  |  | Plastic Thermoforming |  | Consumer |
|  |  |  |  |  |  | Infrared Welding |  | Recreational Vehicle |
|  |  |  |  |  |  | Metal Forming |  | Marine |
|  |  |  |  |  |  | Stainless Steel Forming |  | Military |
|  |  |  |  |  |  | Powder Coating |  | Custom |
| **Distribution Segment** | **Distribution Segment** | **Distribution Segment** | **Distribution Segment** | **Distribution Segment** | **Distribution Segment** | **Distribution Segment** | **Distribution Segment** | **Distribution Segment** |
| **Net** <br>**Sales** |  | **Key Product Areas** |  | **Product Brands** |  | **Key Capabilities &** <br>**Services** |  | **Representative Markets** |
| $252.0 |  | Tire Valves & Accessories |  | Myers Tire Supply® |  | Broad Sales Coverage |  | Retail Tire Dealers |
| 28% |  | Tire Changing & |  | Myers Tire Supply |  | Local Sales |  | Truck Tire Dealers |
|  |  | Balancing Equipment |  | International |  | Nine Strategically Placed  |  | Auto Dealers |
|  |  | Lifts & Alignment Equipment |  | Patch Rubber Company® |  | Distribution Centers |  | Commercial Auto & Truck |
|  |  | Service Equipment |  | Elrick |  | International Distribution |  | Fleets |
|  |  | Hand Tools |  | Fleetline |  | Personalized Service |  | General Repair & Services |
|  |  | Tire Repair & Retread |  | MTS |  | National Accounts |  | Facilities |
|  |  | Equipment & Supplies |  | Mohawk Rubber Sales |  | Product Training |  | Tire Re-treaders |
|  |  | Brake, Transmission & Allied |  | Seymoure |  | Repair/Service Training |  | Tire Repair |
|  |  | Service Equipment & Supplies |  | Tuffy |  | New Products/Services |  | Governmental Agencies |
|  |  | Highway Markings |  | Advance Traffic Markings |  | "Speed to Market" |  | Telecommunications |
|  |  | Industrial Rubber |  | MXP™ |  | Rubber Mixing |  | Industrial |
|  |  | General Shop Supplies |  |  |  | Rubber Compounding |  | Road Construction |
|  |  | Tire Pressure Monitoring System |  |  |  | Rubber Calendaring |  | Mining |
|  |  |  |  |  |  | Tiered Product Offerings |  | Truck Stop Operations |

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**Segments Overview**

Material Handling Segment

The Material Handling Segment manufactures highly engineered polymer packaging containers, storage and safety products, and specialty molded parts. The brands within this segment include **Buckhorn**<sup>®</sup>, **Akro-Mils**<sup>®</sup>, **Jamco**<sup>®</sup>, **Ameri-Kart**<sup>®</sup>**, Elkhart Plastics**<sup>™</sup>**, Trilogy Plastics and Scepter**<sup>®</sup>**.**

Buckhorn's reusable containers and pallets are used in closed-loop supply chain systems to help customers improve product protection, increase handling efficiencies, reduce freight costs and eliminate solid waste and disposal costs. Buckhorn offers products to replace costly single use cardboard boxes, wooden pallets, and steel containers. Buckhorn has a broad product line that includes injection-molded and structural foam-molded constructions. Buckhorn's product lines include hand-held containers used for inventory control, order management and transportation of retail goods; collapsible and fixed-wall bulk transport containers for light and heavy-duty tasks; intermediate bulk containers for the storage and transport of food, liquid, powder, and granular products; plastic pallets; and specialty boxes designed for storage of items such as seed. Buckhorn also produces a wide variety of specialty products for niche applications and custom products designed according to exact customer specifications.

Akro-Mils material handling products provide customers everything they need to store, organize and transport a wide range of goods while increasing overall productivity and profitability. Serving industrial, commercial and consumer markets, Akro-Mils products range from AkroBins<sup>®</sup> — the industry's leading small parts bins — to Super-Size AkroBins, metal panel and bin hanging systems, metal and plastic storage cabinet and bin systems, wire shelving systems, plastic and metal transport carts and a wide variety of custom storage and transport products. Akro-Mils products deliver storage and organization solutions in a wide variety of applications, from creating assembly line workstations to organizing medical supplies and retail displays. Emphasis is placed on product bundling and customizing systems to create specific storage and organization configurations for customers' operations.

Jamco Products is well established in industrial and commercial markets with its wide selection of welded steel service carts, platform trucks, mobile work centers, racks and cabinets for plastic bins, safety cabinets, medical cylinder carts and more. Jamco Products' quality product offering, relationships with industrial distributors and reputation for quality and service complements Myers Industries' other Material Handling businesses.

Ameri-Kart is an industry leading rotational molder of water, fuel and waste handling tanks, plastic trim and interior parts used in the production of seat components, consoles, and other applications throughout the recreational vehicle, marine, and industrial markets. Ameri-Kart also thermoforms certain parts for the recreational vehicle and other industries. In addition to standard marine parts, Ameri-Kart is well respected within the marine market for its patented Enviro-Fill<sup>®</sup> overfill prevention system ("OPS") technology and is the industry's only turnkey provider of an integrated, Environmental Protection Agency ("EPA")-compliant marine fuel tank and patented Enviro-Fill diurnal system.

Elkhart Plastics, which was acquired in November 2020, is another industry leading manufacturer of rotationally molded water, fuel and waste handling tanks, intermediate bulk containers, plastic trim and parts used in recreational vehicle, marine, agriculture, commercial construction equipment, heavy truck equipment, material handling and more. Custom plastics are manufactured in a variety of lengths, shapes and thicknesses to meet customer needs.

Trilogy Plastics, acquired in July 2021, is a world-class custom rotational molder specializing in high quality, high tolerance parts and assemblies. Trilogy manufactures custom products for the industrial, consumer, lawn and garden, heavy truck, medical and other markets.

Scepter is a leading producer of portable plastic fuel containers, portable marine fuel tanks and water containers, ammunition containers and storage totes. Scepter was the first provider of Jerry Cans to North America which offer safe, reliable transportation and storage of fuel for the consumer market. Scepter also manufactures a variety of blow molded products for military applications from high quality containers to safely store and transport large caliber ammunition, to military specified portable fuel and water canisters. Scepter's in-house product engineering and state of the art mold capabilities complements Myers Industries' Material Handling Segment through an increased product offering and global reach.

Distribution Segment

The Distribution Segment includes the **Myers Tire Supply**<sup>®</sup>, **Myers Tire Supply International**, **Tuffy Manufacturing, Mohawk Rubber Sales** and **Patch Rubber Company**<sup>®</sup> brands. Within the Distribution Segment the Company sources and manufactures top of the line products for the tire, wheel and under-vehicle service industry.

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With these brands, the Distribution Segment is the largest U.S. distributor and single source for tire, wheel and under-vehicle service tools, equipment and supplies. The Company buys and sells over 30,000 unique items — everything that professionals need to service passenger, truck and off-road tires, wheels and related components. Independent tire dealers, mass merchandisers, commercial auto and truck fleets, truck stop operations, auto dealerships, tire re-treaders and general repair facilities rely on our broad product selection, rapid availability and personal service to be more productive and profitably grow their businesses.

While the needs and composition of our distribution markets constantly change, we adapt and deliver new products and services that are crucial to our customers' success. The new product pipeline is driven by a thorough understanding of the market, its customers' needs and working closely with suppliers to develop innovative products and services to meet these needs. Tailored products, services and field support including access to leading suppliers, an expansive customer care team and a strong national footprint are supported through the Company's leading brands including Myers Tire Supply, Tuffy Manufacturing and Mohawk Rubber Sales. On an international scale, Myers Tire Supply International further distributes these product offerings and services in Central America, through its branch offices, and to other foreign countries, through its U.S. export business.

Patch Rubber Company manufactures one of the most comprehensive lines of tire repair and retreading products in the United States. Service professionals rely on our extensive product selection and quality for safe, cost-effective repairs to passenger, truck and off-road tires. Products include the plug that fills a puncture, the cement that seals the plug, the tire innerliner patch and the final sealing compound. Patch brand repair products maintain a strong position in the tire service markets including sales through the Myers Tire Supply sales network. Patch Rubber also employs its rubber calendering and compounding expertise to create a diverse portfolio of products outside of the tire repair market, such as permanent and temporary reflective highway marking tape. Our rubber-based tape and symbols provide the durability and brightness that construction professionals demand to replace paint for marking road repair, intersections and hazardous areas.

**Raw Materials & Suppliers** 

The Company purchases substantially all of its raw materials from a wide range of third-party suppliers. These materials are primarily polyethylene, polypropylene, and polystyrene plastic resins and steel, all used within the Material Handling Segment, as well as synthetic and natural rubber. Most raw materials are commodity products and are available from several domestic suppliers. We believe that the loss of any one supplier or group of suppliers would not have a material adverse effect on our business, although there are limited suppliers of certain grades of plastic resins, where the market supply can be temporarily disrupted by an unanticipated loss of capacity from any one such supplier. Additionally, certain components of the Company's products are manufactured through supply arrangements using proprietary molds owned by the Company, and unanticipated loss of one of these suppliers could temporarily disrupt a product line. Our Distribution Segment purchases substantially all of its components from third-party suppliers and has multiple sources for its products.

Deliveries of our materials and supplies are primarily made by commercial truck from the United States and Canadian suppliers, but in the case of resin, may also be delivered by rail to certain of our facilities. Within the Distribution Segment many of the products we distribute are imported.

**Competition**

Competition in our Material Handling Segment is substantial and varied in form and size from manufacturers of similar products to those of other products which can be substituted for products produced by the Company. In general, most direct competitors with the Company's brands are private entities. Myers Industries maintains strong brand presence and market positions in the niche sectors of the markets it serves. The Company does not command substantial, overall market presence in the broad market sectors.

Competition in our Distribution Segment is generally comprised of small companies, regional distributors and national auto parts chains where product offerings may overlap. Within the overall tire, wheel and under-vehicle service market, Myers Industries is the largest U.S. distributor of tools, equipment and supplies offered based on national coverage.

**Customer Dependence**

In 2022, 2021 and 2020, there were no customers that accounted for more than ten percent of total net sales. Myers Industries serves thousands of customers who demand value through product selection, innovation, quality, delivery and responsive personal service. Our brands foster satisfied, loyal customers who have recognized our performance through numerous supplier quality awards.

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**Human Capital Management**

Myers employees are located throughout North and Central America. Employee levels are managed to align with the pace of business and management believes it has sufficient human capital to operate its business successfully. The Company employed approximately 2,500 people globally in both a full-time and part-time capacity as of December 31, 2022. Of these, approximately 1,800 were employed in the Company's Material Handling Segment while the Distribution Segment employed approximately 600. The Company had approximately 100 Corporate and shared service employees. As of December 31, 2022, the Company had approximately 120 employees represented by a labor union. The collective bargaining agreement between us and the labor union expires June 30, 2025. Myers considers its relationships with its employees and union to be in good standing. The Myers employee base provides the foundation for our Company's success.

Our employees are responsible for upholding our core values:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Integrity: Our word is our bond; we do what we say we are going to do.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Optimism: We work with the assumption that people are fair, honest and have good intent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Customer Focus: We strive to deliver the right product, at the right time, every time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Can-do Spirit: We will always find a way...we have a can-do spirit. We will deliver. For our employees, our customers, our communities, our shareholders.

Additionally, Myers and its employees are committed to working safely and collaboratively, conducting all aspects of business with the highest standards of integrity, leveraging processes and procedures to drive continuous improvement, empowering individuals and teams across the Company, embracing change as we embark on our One Myers strategic vision, attracting and developing diverse talent, and demonstrating servant leadership to drive improvements in the communities where we live and operate.

<u>Health and Safety</u>

The health, safety, and well-being of our employees is very important to us. The Company has developed a health and safety program that focuses on implementing policies and training programs to ensure all employees can expect workplace safety. The Company's health and safety strategies are consistently reviewed and updated as changes occur and key metrics are discussed in our Corporate Safety Committee meetings. The results of these critical safety statistics and metrics are distributed internally. Safety awareness and employee engagement programs have been implemented at the Company's facilities and are a critical consideration in our town hall meetings.

<u>Diversity and Inclusion</u>

As part of our human capital management initiatives, we are continuing to develop and improve our internal reporting on key talent metrics, including workforce demographics, critical role pipeline data, and diversity hiring analytics. These initiatives align with our goal of creating a positive and dynamic workplace where all employees can flourish. A truly innovative workforce needs to be diverse and leverage the skills and perspectives of a broad range of backgrounds and experiences.

<u>Talent Development</u>

Successful execution of the Company's strategy depends on attracting and retaining highly qualified individuals. The Company believes it is important to reward associates with competitive wages and benefits to recognize professional excellence and career progression. The Company also believes it is important to provide pay and benefits that are competitive and equitable based on its local markets.

The Company believes that having open, honest dialogue with its employees is a key tenet in evolving its culture and keeping it thriving. As a function of this approach, the Company conducts surveys on a periodic basis to measure and report employee engagement and areas of concern. The Company also provides professional development and training opportunities to advance the skills and expertise of Myers' employees.

**Backlog**

The backlog of orders for our operations is estimated to have been approximately $102 million at December 31, 2022 and approximately $109 million at December 31, 2021. Generally, our lead time between customer order and product delivery is less than 90 days, and thus our estimated backlog is expected to be substantially delivered within the succeeding three months. During periods of shorter lead times, backlog may not be a meaningful indicator of future sales. Accordingly, we do not believe our backlog data and comparisons thereof, as of different dates, reliably indicate future sales or shipments.

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**Available Information**

<u>Filings with the SEC.</u> As a public company, we regularly file reports and proxy statements with the Securities and Exchange Commission ("SEC"), such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•annual reports on Form 10-K;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•quarterly reports on Form 10-Q;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•current reports on Form 8-K; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•proxy statements on Schedule 14A.

The SEC maintains an internet website that contains our reports, proxy and information statements, and our other SEC filings; the address of that site is http://www.sec.gov.

We make our SEC filings available free of charge on our own internet site as soon as reasonably practicable after we have filed with the SEC. Our internet address is http://www.myersindustries.com. The content on the Company's website is available for informational purposes only and is not incorporated by reference into this Form 10-K.

Our website also contains additional information about our corporate governance policies, including the charters of our standing board committees, as described further under Part II, Item 10 of this Form 10-K. Any of these items are available in print to any shareholder who requests them. Requests should be sent to Corporate Secretary, Myers Industries, Inc., 1293 S. Main Street, Akron, Ohio 44301.

**ITEM 1A. Risk Factors** 

This Form 10-K and the information we are incorporating by reference contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including information regarding the Company's financial outlook, future plans, objectives, business prospects and anticipated financial performance. You can identify forward-looking statements by words such as "will," "believe," "anticipate," "expect," "estimate," "intend," "plan," or variations of these words, or similar expressions. These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, these statements inherently involve a wide range of inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. The Company's actual actions, results, and financial condition may differ materially from what is expressed or implied by the forward-looking statements. Specific factors that could cause such a difference include those set forth below and other important factors disclosed previously and from time to time in our other filings with the SEC. Given these factors, as well as other variables that may affect our operating results, you should not rely on forward-looking statements, assume that past financial performance will be a reliable indicator of future performance, nor use historical trends to anticipate results or trends in future periods. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. We expressly disclaim any obligation or intention to provide updates to the forward-looking statements and the estimates and assumptions associated with them.

Risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable statements include, but are not limited to:

**<u>Risks Relating to Our Business and Operations</u>**

**Significant increase in the cost of raw materials or disruption in the availability of raw materials could adversely affect our financial performance.**

Market conditions may limit our ability to raise selling prices to offset increases in our raw material input costs. If we are unsuccessful in developing ways to mitigate raw material cost increases, we may not be able to improve productivity or realize our ongoing cost

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reduction programs sufficiently to help offset the impact of these increased raw material costs. As a result, higher raw material costs could result in declining margins and operating results.

Raw material availability is subject to the risk of our suppliers' ability to supply products to us, which could be affected by the suppliers' ability to produce and deliver raw materials due to material or labor shortages or labor disputes or strikes. Changes in raw material availability may also occur due to events beyond our control, including natural disasters such as floods, tornadoes, hurricanes and other extreme weather conditions. Our specific molding technologies and/or product specifications can limit our ability to timely locate alternative suppliers to produce certain products. This can occur when there are limited suppliers of certain grades of plastic resins, where the market supply can be temporarily disrupted by an unanticipated loss of capacity from any one such supplier.

In some instances, we rely on a limited number of key suppliers to manufacture custom made components for certain of our products using proprietary molds that we own. We have not and do not expect disruption from these key suppliers, and our sourcing team has taken measures to mitigate this risk. However, if suppliers of these custom made components are unable to meet our requirements, fail to make shipments in a timely manner, or ship defective components, we could experience a shortage or delay in supply or fail to meet our customers' demand, which could adversely affect our financial condition and results of operations.

Changes in trade policies could result in new tariffs or other restrictions on products, components or raw materials sourced, directly or indirectly, from foreign countries, which could increase raw material costs and adversely impact profitability. However, as the Company has limited foreign operations and sources much of its raw materials domestically, we do not believe new tariffs would have a material impact on our operations. We also believe that adverse impacts can be mitigated over time through increases in price or sourcing through an alternate supply chain.

**We operate in a very competitive business environment, which could affect our financial condition and results of operations.**

Both of our segments participate in markets that are highly competitive. We compete primarily on the basis of product quality and performance, value, and supply chain competency. Our competitive success also depends on our ability to maintain strong brands, customer relationships and the belief that customers will need our solutions to meet their growth requirements. The development and maintenance of such brands require continuous investment in brand building, marketing initiatives and advertising. The competition that we face in all of our markets — which varies depending on the particular business segment, product lines and customers — may prevent us from achieving sales, product pricing and income goals, which could affect our financial condition and results of operations.

Ongoing industry consolidation continues to create competitors with greater financial and other resources. Competitive pressures may require us to reduce prices and attempt to offset such price reductions with improved operating efficiencies and reduced expenditures, for which options may be limited or unavailable. Additionally, larger competitors may be better positioned to weather prolonged periods of reduced prices, which may incentivize them to reduce prices even when not dictated by market and competitive conditions.

**Our operations depend on our ability to maintain continuous, uninterrupted production at our manufacturing facilities, which are subject to physical and other risks that could disrupt production.**

We are subject to inherent risks from our diverse manufacturing and distribution activities, including but not limited to product quality, safety, licensing requirements and other regulatory issues, environmental events, loss or impairment of key manufacturing or distribution sites, disruptions in logistics and transportation services, labor disputes and industrial accidents. While we maintain insurance covering our manufacturing and production facilities, including business interruption insurance, a catastrophic loss of the use of all or a portion of our facilities due to accident, fire, explosion, natural disaster or any other reason, whether short or long-term, could have a material adverse effect on our business, financial condition and results of operations.

Unexpected failures of our equipment, machinery and manufacturing processes may also result in production delays, revenue loss and significant repair costs, as well as injuries to our employees. Any interruption in production capability may require us to make large capital expenditures to remedy the situation, which could have a negative impact on our profitability and cash flows. Our business interruption insurance may not be sufficient to offset the lost revenues or increased costs that we may experience during a disruption of our operations. A temporary or long-term business disruption could result in a permanent loss of customers. If this were to occur, our future sales levels, and therefore our profitability, could be materially adversely affected.

Additionally, we depend on skilled labor in the manufacturing of our products. High demand for skilled manufacturing labor in the United States has resulted in difficulty hiring, training, and retaining labor. Difficulties in securing skilled labor can result in increased hiring and training costs, increased overtime to meet demand, and increased wage rates to attract and retain workers, and lower manufacturing efficiency due to fewer and less experienced workers which could adversely affect our business or our ability to meet customer demand.

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**Our future performance depends in part on our ability to develop and market new products if there are changes in technology, regulatory requirements or competitive processes.**

Changes in technology, regulatory requirements and competitive processes may render certain of our products obsolete or less attractive. Our performance in the future will depend in part on our ability to develop and market new products that will gain customer acceptance and loyalty, as well as our ability to adapt our product offerings and control our costs to meet changing market conditions. Our operating performance would be adversely affected if we were to incur delays in developing new products or if such products did not gain market acceptance. There can be no assurance that existing or future products will be sufficiently successful to enable us to effectively compete in our markets or, should new product offerings meet with significant customer acceptance, that one or more current or future competitors will not introduce products that render our products noncompetitive.

**We may not be successful in protecting our intellectual property rights, including our unpatented proprietary know-how and trade secrets, or in avoiding claims that we infringed on the intellectual property rights of others.**

In addition to relying on patent and trademark rights, we rely on unpatented proprietary know-how and trade secrets and employ various methods, including confidentiality agreements with employees and consultants, to protect our know-how and trade secrets. However, these methods and our patents and trademarks may not afford complete protection and there can be no assurance that others will not independently develop the know-how and trade secrets or develop better production methods than us. Further, we may not be able to deter current and former employees, contractors and other parties from breaching confidentiality agreements and misappropriating proprietary information and it is possible that third parties may copy or otherwise obtain and use our information and proprietary technology without authorization or otherwise infringe on our intellectual property rights. Additionally, in the future we may license patents, trademarks, trade secrets and similar proprietary rights to third parties. While we attempt to ensure that our intellectual property and similar proprietary rights are protected when entering into business relationships, third parties may take actions that could materially and adversely affect our rights or the value of our intellectual property, similar proprietary rights or reputation. In the future, we may also rely on litigation to enforce our intellectual property rights and contractual rights and, if not successful, we may not be able to protect the value of our intellectual property. We have been, and may in the future be, subject to claims asserting the infringement of the intellectual property rights of third parties seeking damages, the payment of royalties or licensing fees and/or injunctions against the sale of our products. Any litigation could be protracted and costly and could have a material adverse effect on our business and results of operations regardless of its outcome.

**Our business operations could be adversely affected if we lose key employees or members of our senior management team.**

Our success depends to a significant degree upon the continued contributions of our key employees and senior management team. Our senior management team has extensive marketing, sales, manufacturing, finance and engineering experience, which we believe is instrumental to our continued success. Our future success will depend, in part, on our ability to attract and retain qualified personnel who have experience in the application of our products and are knowledgeable about our business, markets and products. We cannot assure that we will be able to retain our existing senior management personnel or other key employees or attract additional qualified personnel when needed, and we may modify our management structure from time to time or reduce our overall workforce, which may create marketing, operational and other business risks. The loss of key employees or executive officers in the future could adversely impact our business and operations, including our ability to successfully implement our business strategy, financial plans, expansion of services, marketing and other objectives.

**<u>Risks Relating to the Execution of Our Strategy</u>**

**Our strategic growth initiatives have inherent risks and may not achieve anticipated benefits.**

Our growth initiatives include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Organic growth driven by strong brands and new product innovation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Development of new, high-growth markets and expansion in existing niche markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Strengthened customer relationships through value-added initiatives and key product partnerships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Investments in new technology and processes to reinforce market strength and capabilities in key business groups;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Consolidation and rationalization activities to further reduce costs and improve productivity within our manufacturing and distribution footprint;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•An opportunistic and disciplined approach to strategic acquisitions to accelerate growth in our market positions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Potential divestitures of businesses with non-strategic products or markets.

While this is a continuous process, all of these activities and initiatives have inherent risks and there remain significant challenges and uncertainties, including economic and general business conditions that could limit our ability to achieve anticipated benefits associated

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with announced strategic initiatives and affect our financial results. We may not achieve any or all of these goals and are unable to predict whether these initiatives will produce significant revenues or profits.

**We may not realize the improved operating results that we anticipate from past acquisitions, including Mohawk and Trilogy, or from acquisitions we may make in the future, and we may experience difficulties in integrating the acquired businesses or may inherit significant liabilities related to such businesses.** 

We explore opportunities to acquire businesses that we believe are related to the execution of the Company's long-term strategies, with a focus on, among other things, alignment with the Company's existing technologies and competencies, flexible operations, and leadership in niche markets. Some of these acquisitions may be material to us. We expect such acquisitions will produce operating results consistent with our other operations and our strategic goals; however, we may be unable to achieve the benefits expected to be realized from our acquisitions. In addition, we may incur additional costs and our management's attention may be diverted because of unforeseen expenses, difficulties, complications, delays and other risks inherent in acquiring businesses, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We may have difficulty integrating the acquired businesses as planned, which may include integration of systems of internal controls over financial reporting and other financial and administrative functions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We may have delays in realizing the benefits of our strategies for an acquired business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The increasing demands on our operational systems and integration costs, including diversion of management's time and attention, may be greater than anticipated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We may not be able to retain key employees necessary to continue the operations of an acquired business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Acquisition costs may be met with cash or through increased debt, increasing the risk that we will be unable to satisfy current and future financial obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Acquired companies may have unknown liabilities that could require us to spend significant amounts of additional capital.

**<u>Risks Relating to Economic Conditions and Currency Exchange Rates</u>**

**Our results of operations and financial condition could be adversely affected by a downturn or inflationary conditions in the United States economy or global markets.**

We operate in a wide range of regions, primarily in North America. Additionally, some of our end markets are cyclical, and some of our products are a capital expense for our customers. Worldwide and regional business and political conditions and overall strength of the worldwide, regional and local economies, including changes in the economic conditions of the broader markets and in our individual niche markets, could have an adverse effect on one or both of our operating segments.

Inflationary economic conditions in North America and the other regions in which we operate could adversely impact the cost of labor, and commodity and other raw material prices. Market conditions may limit our ability to raise selling prices to offset increased costs and prices caused by inflation. To the extent we are not able to offset increased costs and prices caused by inflation we may not be able to maintain current margins and operating results.

**We derive a portion of our revenues from direct and indirect sales outside the United States and are subject to the risks of doing business in foreign countries.**

We currently operate manufacturing, sales and service facilities outside of the United States, particularly in Canada and Central America. For the year ended December 31, 2022, international net sales accounted for approximately 6% of our total net sales. Accordingly, we are subject to risks associated with operations in foreign countries, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Fluctuations in currency exchange rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Limitations on the remittance of dividends and other payments by foreign subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Limitations on foreign investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Additional costs of compliance with local regulations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•In certain countries, higher rates of inflation than in the United States.

In addition, our operations outside the United States are subject to the risk of new and different legal and regulatory requirements in local jurisdictions, potential difficulties in staffing and managing local operations and potentially adverse tax consequences. The costs related to our international operations could adversely affect our operations and financial results in the future.

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**<u>Risks Relating to Our Debt and Capital Structure</u>**

**If we are unable to maintain access to credit financing, our business may be adversely affected.**

The Company's ability to make payments on or refinance our indebtedness, fund planned capital expenditures, finance acquisitions and pay dividends depends on our ability to continue to generate sufficient cash flow and retain access to credit financing. This, to some extent, is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control.

We cannot provide assurance that our business will continue to generate sufficient cash flow from operating activities or that future borrowings will be available to us in amounts sufficient to enable us to service debt, make necessary capital expenditures or fund other liquidity needs. We may need to refinance all or a portion of our indebtedness, on or before maturity. We cannot ensure that we would be able to refinance any of our indebtedness on commercially reasonable terms or at all.

Our current credit facilities require us to maintain specified financial ratios, and our ability to satisfy those requirements may be affected by events beyond our control. A breach of any of those financial ratio covenants or other covenants could result in a default and upon such a default the lenders could elect to declare the applicable outstanding indebtedness immediately due and payable and terminate all commitments to extend further credit. We cannot be sure that our lenders would waive a default or that we could pay the indebtedness in full if it were accelerated.

**Equity Ownership Concentration**

Based solely on the Schedule 13D/A filed on November 25, 2022, by Mario J. Gabelli, Gabelli Funds, LLC, GAMCO Asset Management Inc., MJG Associates, Inc., Teton Advisors, Inc., Gabelli Foundation, Inc., GGCP, Inc., GAMCO Investors, Inc., Associated Capital Group, Inc. and Gabelli & Company Investment Advisors, Inc., (collectively, the "Gamco Group"), for which the Company disclaims any responsibility for accuracy, the Gamco Group beneficially owned 5,364,631 shares of our common stock, which represented approximately 14.7% of the 36,500,020 shares outstanding at December 31, 2022.

Based solely on the Schedule 13G/A filed on January 23, 2023, by Blackrock, Inc., ("Blackrock"), for which the Company disclaims any responsibility for accuracy, Blackrock beneficially owned 5,767,999 shares of our common stock, which represented approximately 15.8% of the 36,500,020 shares outstanding at December 31, 2022.

Individually or combined, these parties may have sufficient voting power to influence actions requiring the approval of our shareholders.

**<u>Risks Related to Data Privacy and Information Security</u>**

**Our information technology systems have in the past and may in the future experience an interruption or a breach in security.**

We rely on information technology systems to process, transmit and store electronic information and manage and operate our business. Such systems are vulnerable to damage or interruption from natural disasters, power loss, telecommunication failures, computer viruses, computer denial-of-service attacks, unauthorized intrusion, and other events, any of which could interrupt our business operations. While we have implemented security measures designed to prevent and mitigate the risk of breaches, information security risks have generally increased in recent years because of the proliferation of new technologies and the increased sophistication and activities of perpetrators of cybersecurity attacks. A failure in or a breach of security in our information technology systems could expose us, our customers and our suppliers to risks of misuse of confidential information, manipulation and destruction of data, production downtimes and operations disruptions, which in turn could negatively affect our reputation, competitive position, business, results of operations or cash flows. Furthermore, because the techniques used to carry out cybersecurity attacks change frequently and in many instances are not recognized until after they are used against a target, we may be unable to anticipate these changes or implement adequate preventative measures.

**Changes in privacy laws, regulations and standards may negatively impact our business.**

Personal privacy and data security have become significant issues in the United States and in many other jurisdictions where we offer our products. The regulatory framework for privacy and security issues worldwide is rapidly evolving and is likely to remain uncertain for the foreseeable future. Federal, state, or foreign government bodies or agencies have in the past adopted and may in the future adopt, laws and regulations affecting data privacy which may require us to incur significant compliance costs. In many jurisdictions, enforcement actions and consequences for noncompliance are rising. Any inability to adequately address privacy and security concerns, even if unfounded, or comply with applicable privacy and data security laws, rules and regulations could result in significant cost and liability to us, damage our reputation, inhibit our sales and adversely affect our business.

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**<u>Risks Related to Legal, Compliance and Regulatory Matters</u>**

**Future claims, litigation and regulatory actions could adversely affect our financial condition and our ability to conduct our business.**

The nature of our business exposes us, from time to time, to breach of contract, warranty or recall claims, claims for negligence, or product liability, strict liability, personal injury or property damage claims. We strive to ensure that our products comply with applicable government regulatory standards and internal requirements and that our products perform effectively and safely; however, customers from time to time could claim that our products do not meet contractual requirements, and users could be harmed by use or misuse of our products. This could give rise to breach of contract, warranty or recall claims, claims for negligence, product liability, strict liability, personal injury or property damage. Such claims can be expensive to defend or address and may divert the attention of management for significant time periods. While we currently maintain what we believe to be suitable and adequate product liability insurance coverage, such coverage may not be available or adequate in all circumstances and claims may increase the cost of such insurance coverage. In addition, claims may arise related to patent infringement, environmental liabilities, distributor terminations, commercial contracts, antitrust or competition law, employment law and employee benefits issues and other regulatory matters. While we have in place processes and policies to mitigate these risks and to investigate and address such claims as they arise, we cannot predict the underlying costs to defend or resolve such claims.

**Current and future environmental and other governmental laws and requirements could adversely affect our financial condition and our ability to conduct our business.**

Our operations are subject to federal, state, local and foreign environmental laws and regulations that impose limitations on the discharge of pollutants into the air and water and establish standards for the handling, use, treatment, storage and disposal of, or exposure to, hazardous wastes and other materials and require clean-up of contaminated sites. Some of these laws and regulations require us to obtain permits, which contain terms and conditions that impose limitations on our ability to emit and discharge hazardous materials into the environment and periodically may be subject to modification, renewal and revocation by issuing authorities. Fines, penalties and other civil or criminal sanctions may be imposed for non-compliance with applicable environmental laws and regulations and the failure to have or to comply with the terms and conditions of required permits. Certain environmental laws in the United States, such as the federal Comprehensive Environmental Response, Compensation and Liability act of 1980, as amended, 42 U.S.C. §§ 9601 et seq. ("CERCLA" or "Superfund law") and similar state laws, impose liability for the cost of investigation or remediation of contaminated sites upon the current or, in some cases, the former site owners or operators (or their predecessor entities) and upon parties who arranged for the disposal of wastes or transported or sent those wastes to an off-site facility for treatment or disposal, regardless of when the release of hazardous substances occurred or the lawfulness of the activities giving rise to the release. Such liability can be imposed without regard to fault and, under certain circumstances, can be joint and several, resulting in one party being held responsible for the entire obligation.

While we have not been required historically to make significant capital expenditures in order to comply with applicable environmental laws and regulations, we cannot predict with any certainty our future capital expenditure requirements because of continually changing compliance standards and environmental technology. Furthermore, violations or contaminated sites that we do not know about, including contamination caused by prior owners and operators of such sites, or at sites formerly owned or operated by us or our predecessors in connection with discontinued operations, could result in additional compliance or remediation costs or other liabilities, which could be material.

As more fully described in Note 9 to the consolidated financial statements, we are a potentially responsible party ("PRP") in an environmental proceeding and remediation matter in which substantial amounts may be involved. It is possible that adjustments to reserved expenses will be necessary as new information is obtained, including after finalization and EPA approval of the work plan for the remedial investigation and feasibility study ("RI/FS"). Estimates of Buckhorn's environmental liabilities are based on current facts, laws, regulations and technology. Estimates of Buckhorn's environmental liabilities are further subject to uncertainties regarding the nature and extent of site contamination, the range of remediation alternatives available, evolving remediation standards, imprecise engineering evaluation and cost estimates, the extent of remedial actions that may be required, the extent of oversight by the EPA and the number and financial condition of other PRPs that may be named, as well as the extent of their responsibility for the remediation. At this time, we have not accrued for such remediation costs as we are unable to estimate the liability at this time. Additionally, we are party to a consent decree regarding another location pursuant to which we are required to contribute to the costs of the remediation project.

We have limited insurance coverage for potential environmental liabilities associated with historic and current operations and we do not anticipate increasing such coverage in the future. We may also assume significant environmental liabilities in acquisitions. Such costs or liabilities could adversely affect our financial situation and our ability to conduct our business.

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**Environmental regulations specific to plastic products and containers could adversely affect our ability to conduct our business.**

Federal, state, local and foreign governments could enact laws or regulations concerning environmental matters that increase the cost of producing, or otherwise adversely affect the demand for, plastic products. Legislation that would prohibit, tax or restrict the sale or use of certain types of plastic and other containers, and would require diversion of solid wastes such as packaging materials from disposal in landfills, has been or may be introduced in the U.S. Congress, in state legislatures and other legislative bodies. While container legislation has been adopted in a few jurisdictions, similar legislation has been defeated in public referenda in several states, local elections and many state and local legislative sessions. There can be no assurance that future legislation or regulation would not have a material adverse effect on us. Furthermore, a decline in consumer preference for plastic products due to environmental considerations could have a negative effect on our business.

**Our insurance coverage may be inadequate to protect against potential hazardous incidents to our business.**

We maintain property, business interruption, product liability and casualty insurance coverage, but such insurance may not provide adequate coverage against potential claims, including losses resulting from war risks, terrorist acts, whether domestic or foreign, or product liability claims relating to products we manufacture. Consistent with market conditions in the insurance industry, premiums and deductibles for some of our insurance policies have been increasing and may continue to increase in the future. In some instances, some types of insurance may become available only for reduced amounts of coverage, if at all. In addition, there can be no assurance that our insurers would not challenge coverage for certain claims. If we were to incur a significant liability for which we were not fully insured or that our insurers disputed, it could have a material adverse effect on our financial position, results of operations or cash flows.

**Changes in laws and regulations may have an adverse impact on our operations.**

Changes in laws and regulations and approvals and decisions of courts, regulators, and governmental bodies on any legal claims known or unknown, could have an adverse effect on the Company's financial results. Additionally, changes in tax laws, particularly in light of changes in the composition of Congress, or new guidance or directives issued by the U.S. Treasury Department, the IRS, and other standard-setting bodies could impact our future effective tax rate and may result in a material adverse effect on our business, financial condition, results of operations, or cash flows.

**<u>General Risk Factors</u>**

**If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results. As a result, current and potential shareholders could lose confidence in our financial reporting, which would harm our business and the trading price of our common stock.**

Internal control systems are intended to provide reasonable assurance regarding the preparation and fair presentation of published financial statements. Any failure to maintain effective controls or implement required new or improved controls could cause us to fail to meet our periodic reporting obligations or result in material misstatements in our consolidated financial statements, and substantial costs and resources may be required to rectify these internal control deficiencies. If we have an internal control deficiency and our remedial measures are insufficient, material weaknesses or significant deficiencies in our internal control over financial reporting could be discovered or occur in the future, and our consolidated financial statements may contain material misstatements. See Item 9A – Controls and Procedures for further discussion.

**The COVID-19 pandemic could negatively affect our business, financial position, results of operations and/or liquidity.**

First identified in December 2019, the novel coronavirus ("COVID-19") became a global pandemic and had widespread direct and indirect effects, including in our primary markets and supply chain. Regulatory actions in response to COVID-19 varied across jurisdictions and included closure of nonessential businesses. The most acute effects from the pandemic appear to have subsided to increased immunity levels in the general population and improved therapeutics to treat severe infections. However, recurrences or new variants of COVID-19 or similar pandemics could result in reimplementation of any measures that have been removed or relaxed or the implementation of new regulations, requirements or restrictions. The overall magnitude of the COVID-19 pandemic or any future pandemic, including the extent of its direct and indirect impact on our business, financial position, results of operations or liquidity continues to be inherently uncertain. We may also incur costs or experience further disruption to comply with new or changing regulations in response to the pandemic.

**Unforeseen events, including natural disasters, unusual or severe weather events and patterns, public health crises, geopolitical crises, and other catastrophic events may negatively impact our economic condition.**

Future events may occur that would adversely affect our business. Such events may include, but are not limited to, strategic decisions made in response to changes in economic and competitive conditions, the impact of the economic environment on our customer base, a material adverse change in our relationship with significant customers, natural disasters, unusual or severe weather events or patterns,

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public health crises, geopolitical, or other catastrophic events beyond our control. Any of these events may adversely affect our financial condition and results of operations, whether by disrupting our operations or critical systems, adversely affecting the facilities of our suppliers, or other third-party providers, or customers. Moreover, these types of events could negatively impact customer spending or trends in our end markets in impacted regions or depending upon the severity, globally, which could adversely impact our operating results.

**ITEM 1B. Unresolved Staff Comments**

None.

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**ITEM 2. Properties**

The following table sets forth certain information with respect to each of the Company's principal properties owned and facilities leased by the Company as of December 31, 2022:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Business Location** | **Segment** | **Principal Use** | **Owned/Leased** | **Lease Expiration** |
| Akron, Ohio | Corporate/Distribution | Administration and distribution center | Owned | N/A |
| Akron, Ohio | Material Handling/Corporate | Administration and warehousing | Owned | N/A |
| Miami, Oklahoma | Material Handling | Manufacturing and distribution | Owned | N/A |
| Roanoke Rapids, North Carolina | Distribution | Manufacturing and distribution | Owned | N/A |
| Scarborough, Ontario | Material Handling | Manufacturing and distribution | Owned | N/A |
| Springfield, Missouri | Material Handling | Manufacturing and distribution | Owned | N/A |
| Wadsworth, Ohio | Material Handling | Manufacturing and distribution | Owned | N/A |
| Alpharetta, Georgia | Distribution | Sales and distribution center | Leased | 2023 |
| Atlantic, Iowa | Material Handling | Manufacturing and distribution | Leased | 2023 |
| Cuyahoga Falls, Ohio | Distribution | Distribution center | Leased | 2023 |
| Milford, Ohio | Material Handling | Administration and sales | Leased | 2023 |
| Mixco, Guatemala | Distribution | Distribution center | Leased | 2023 |
| Salt Lake City, Utah | Distribution | Sales and distribution center | Leased | 2023 |
| Salt Lake City, Utah | Distribution | Sales and distribution center | Leased | 2023 |
| Southaven, Mississippi | Distribution | Distribution center | Leased | 2023 |
| Springfield, Missouri | Material Handling | Warehousing | Leased | 2023 |
| Littleton, Colorado | Material Handling | Manufacturing and distribution | Leased | 2024 |
| Middlebury, Indiana | Material Handling | Manufacturing and distribution | Leased | 2024 |
| San Salvador, El Salvador | Distribution | Distribution center | Leased | 2024 |
| Alliance, Ohio | Material Handling | Warehousing | Leased | 2025 |
| Houston, Texas | Distribution | Sales and distribution center | Leased | 2025 |
| White Pigeon, Michigan | Material Handling | Manufacturing and distribution | Leased | 2025 |
| Bristol, Indiana | Material Handling | Manufacturing and distribution | Leased | 2026 |
| Juan Diaz, Panama | Distribution | Distribution center | Leased | 2026 |
| Midland, Michigan | Corporate | Administration | Leased | 2026 |
| Decatur, Georgia | Material Handling | Manufacturing and distribution | Leased | 2027 |
| South Bend, Indiana | Material Handling | Manufacturing and distribution | Leased | 2027 |
| Hingham, Massachusetts | Distribution | Sales and distribution center | Leased | 2028 |
| Pomona, California | Distribution | Sales and distribution center | Leased | 2028 |
| Ridgefield, Washington | Material Handling | Manufacturing and distribution | Leased | 2029 |
| South Beloit, Illinois | Material Handling | Manufacturing and distribution | Leased | 2031 |
| Alliance, Ohio | Material Handling | Manufacturing and distribution | Leased | 2032 |
| Alliance, Ohio | Material Handling | Manufacturing and distribution | Leased | 2032 |
| Bristol, Indiana | Material Handling | Manufacturing and distribution | Leased | 2036 |

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The Company also leases facilities for its sales offices and sales branches in the United States and Central America. All of these locations are used by the Distribution Segment.

The Company believes that all of its properties, machinery and equipment generally are well maintained and adequate for the purposes for which they are used.

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**ITEM 3. Legal Proceedings**

The Company is a defendant in various lawsuits and a party to various other legal proceedings arising in the ordinary course of business, some of which are covered in whole or in part by insurance. When a loss arising from these matters is probable and can reasonably be estimated, the most likely amount of the estimated probable loss is recorded, or if a range of probable loss can be estimated and no amount within the range is a better estimate than any other amount, the minimum amount in the range is recorded. As additional information becomes available, any potential liability related to these matters is assessed and the estimates revised, if necessary.

Based on currently available information, management believes that the ultimate outcome of these matters, including those described specifically below, will not have a material adverse effect on our financial position, cash flows or overall trends in our results of operations. However, these matters are subject to inherent uncertainties. If new information becomes available or an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on the financial position and results of operations in the period in which such change in estimate occurs or in future periods.

For information relating to the New Idria Mercury Mine matter, the New Almaden Mine matter, and the Patent Infringement matter, see Note 9, Contingencies, to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

**INFORMATION ABOUT OUR EXECUTIVE OFFICERS**

Set forth below is certain information concerning the executive officers of the Registrant as of February 24, 2023. Executive officers are appointed annually by the Board of Directors.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Title** |
| Michael P. McGaugh | 49 | President and Chief Executive Officer |
| Monica P. Vinay | 54 | Interim Chief Financial Officer |
| Jeffrey J. Baker | 60 | Vice President, Shared Services |
| James H. Gurnee | 65 | Vice President, Sales, Marketing, and Commercial Excellence |
| Paul A. Johnson | 58 | Vice President, Distribution Segment |

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Mr. McGaugh, President and Chief Executive Officer, was appointed to his current position on April 6, 2020. Prior to joining the Company, he served as Executive Vice President and Chief Operating Officer of BMC Stock Holdings, Inc. Prior to that, Mr. McGaugh served in various leadership roles with The Dow Chemical Company, including Global General Manager, Dow Building Solutions; Global General Manager, Growth & Innovation Business Portfolio; and Global Director and leader of the Integration Management Office.

Ms. Vinay was named Interim Chief Financial Officer effective July 1, 2022, and has been Vice President Investor Relations and Treasurer since July 2013. From 2010, to 2013, Ms. Vinay held various roles at the Company, including Director of Finance and IT for the Distribution segment, Director of Investor and Financial Relations and Director of Investor Relations and Communications. Prior to joining Myers, Ms. Vinay worked at Barnes Group, Inc., in various financial roles including Controller, Barnes Distribution N.A., and Director of Finance, Logistics and Manufacturing Services.

Mr. Baker, Vice President, Shared Services, was appointed to his current position effective November 29, 2021. Previously, he served as Vice President, Purchasing and Supply Chain since joining the Company on September 1, 2020. Prior to that, Mr. Baker spent 34 years at The Dow Chemical Company serving in various roles, including most recently as Associate Director Logistics Purchasing.

Mr. Gurnee, Vice President, Sales, Marketing, and Commercial Excellence, was appointed to his position on August 17, 2020. Prior to joining the Company, he spent 37 years with The Dow Chemical Company in multiple sales and marketing roles. Most recently, he served as the Global Innovation Discipline Director.

Mr. Johnson, Vice President, Distribution Segment, was appointed to his position on March 15, 2021. Prior to joining the Company, he served as President of International Brake Industries and has held various sales, finance and leadership positions at General Motors, Federal-Mogul Corporation and NTN Corporation. He started his career as an engineer with Boeing Commercial Airplanes.

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**PART II**

**ITEM 5. Market for Registrant's Common Stock and Related Stockholder Matters and Issuer Purchases of Equity Securities**

The Company's common stock is traded on the New York Stock Exchange under the symbol MYE. The number of shareholders of record at December 31, 2022 was 862. Dividends for the last two years were:

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| | | |
|:---|:---|:---|
| **Quarter Ended** | **2022** | **2021** |
| March 31 | $0.135 | $0.135 |
| June 30 | 0.135 | 0.135 |
| September 30 | 0.135 | 0.135 |
| December 31 | 0.135 | 0.135 |

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**Purchases of equity securities by the issuer**

The following table presents information regarding the Company's stock repurchase plan during the three months ended December 31, 2022.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Total Number of<br>Shares Purchased** | **Average Price Paid<br>per Share** | **Total Number of<br>Shares Purchased as<br>Part of the Publicly<br>Announced Plans or<br>Programs** | **Maximum number<br>of Shares that may<br>yet be Purchased<br>Under the Plans or<br>Programs (1)** |
| 10/1/2022 to 10/31/2022 |  | $— | 5547665 | 2452335 |
| 11/1/2022 to 11/30/2022 |  |  | 5547665 | 2452335 |
| 12/1/2022 to 12/31/2022 |  |  | 5547665 | 2452335 |

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(1) On July 11, 2013, the Board authorized the repurchase of up to an additional five million shares of the Company's common stock. This authorization was in addition to the 2011 Board authorized repurchase of up to five million shares. The Company completed the repurchase of approximately 2.0 million shares in 2011 pursuant to Rule 10b5-1 plans, which were adopted pursuant to the 2011 authorized share repurchase.

See Item 12 of this Form 10-K for the Equity Compensation Plan Information Table.

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**Comparison of 5 Year Cumulative Total Return**

**Assumes Initial Investment of $100**

**December 31, 2022**

The chart below compares the Company's cumulative total shareholder return for the five years ended December 31, 2022, to that of the Standard & Poor's 500 Index – Total Return, the Russell 2000 Index and the Standard & Poor's 600 Materials (Sector) Index. In all cases, the information is presented on a dividend-reinvested basis and assumes investment of $100 on December 31, 2017.

![img84728145_0.jpg](img84728145_0.jpg)

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2017** | **2018** | **2019** | **2020** | **2021** | **2022** |
| **Myers Industries Inc.** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Annual Return % |  | (20.39) | 13.84 | 29.33 | (1.11) | 14.04 |
| &nbsp;&nbsp;&nbsp;Cum $ | 100.00 | 79.61 | 90.63 | 117.21 | 115.91 | 132.18 |
| **S&P 500 Index - Total Return** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Annual Return % |  | (4.38) | 31.49 | 18.40 | 28.71 | (18.11) |
| &nbsp;&nbsp;&nbsp;Cum $ | 100.00 | 95.62 | 125.72 | 148.85 | 191.58 | 156.88 |
| **Russell 2000 Index** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Annual Return % |  | (11.01) | 25.52 | 19.96 | 14.82 | (20.44) |
| &nbsp;&nbsp;&nbsp;Cum $ | 100.00 | 88.99 | 111.70 | 134.00 | 153.85 | 122.41 |
| **S&P 600 Materials (Sector) Index** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Annual Return % |  | (22.25) | 20.57 | 22.68 | 18.41 | (6.09) |
| &nbsp;&nbsp;&nbsp;Cum $ | 100.00 | 77.75 | 93.74 | 115.00 | 136.18 | 127.88 |

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NOTE: Index Data: Copyright Standard and Poor's, Inc. Used with permission. All rights reserved.

NOTE: Index Data: Copyright Russell Investments. Used with permission. All rights reserved.

**ITEM 6. Reserved**

Not applicable.

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**ITEM 7. Management's Discussion and Analysis of Results of Financial Condition and Operations**

**Executive Overview**

The Company conducts its business activities in two distinct segments: The Material Handling Segment and the Distribution Segment.

The Company designs, manufactures, and markets a variety of plastic, metal and rubber products. The Material Handling Segment manufactures a broad selection of plastic reusable containers, pallets, small parts bins, bulk shipping containers, storage and organization products, OEM parts, custom plastic products, consumer fuel containers and tanks for water, fuel and waste handling. Products in the Material Handling Segment are primarily injection molded, rotationally molded or blow molded. The Distribution Segment is engaged in the distribution of tools, equipment and supplies used for tire, wheel and under vehicle service on passenger, heavy truck and off-road vehicles, as well as the manufacturing of tire repair and retreading products.

The Company's results of operations for the year ended December 31, 2022 compared with the year ended December 31, 2021 are discussed below. The current economic environment includes heightened risks from inflation, interest rates, volatile commodity costs, supply chain disruptions and labor availability stemming from the broader economic effects of the international geopolitical climate, including the conflict between Russia and Ukraine, and the COVID-19 pandemic. Russia's invasion of Ukraine in the first quarter of 2022 has increased volatility in global commodity markets, including oil (a component of many plastic resins), energy and agricultural commodities. While many of the public safety measures in response to the COVID-19 pandemic have been lifted or relaxed, it is possible that new or previously lifted measures could be implemented in the future. Some of our businesses have been and may continue to be affected by these broader economic effects, including customer demand for our products, supply chain disruptions, labor availability and inflation. The Company believes it is well-positioned to manage through this uncertainty as it has a strong balance sheet with sufficient liquidity and borrowing capacity as well as a diverse product offering and customer base.

**Results of Operations: 2022 Compared with 2021**

**Net Sales:**

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| | | | | |
|:---|:---|:---|:---|:---|
| (dollars in thousands) | **Year Ended December 31,** | **Year Ended December 31,** |  |  |
| **Segment** | **2022** | **2021** | **Change** | **% Change** |
| Material Handling | $647619 | $564068 | $83551 | 14.8% |
| Distribution | 251966 | 197427 | 54539 | 27.6% |
| Inter-company sales | (38) | (60) | 22 |  |
| &nbsp;&nbsp;&nbsp;Total net sales | $899547 | $761435 | $138112 | 18.1% |

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Net sales for the year ended December 31, 2022 were $899.5 million, an increase of $138.1 million or 18.1% compared to the prior year. Net sales increased due to higher pricing of $95.8 million. Net sales also increased due to $63.8 million of incremental sales from the acquisitions of Mohawk on May 31, 2022, included in the Distribution Segment, and Trilogy on July 30, 2021, included in the Material Handling Segment. Mohawk's annual sales were approximately $65 million and Trilogy's annual sales were approximately $35 million at the times of their acquisitions. Partially offsetting the increases to net sales was lower overall volume/mix of $19.7 million and the effect of unfavorable currency translation of $1.8 million. Beginning in February 2021, the Company began to implement a series of pricing increases across a majority of its portfolio of products in response to rapidly rising raw material and other production costs.

Net sales in the Material Handling Segment increased $83.6 million or 14.8% for the year ended December 31, 2022 compared to the prior year. Net sales increased due to higher pricing of $78.7 million and due to $24.0 million of incremental sales from the acquisition of Trilogy on July 30, 2021. Partially offsetting the increases to net sales was lower volume/mix of $17.3 million and the effect of unfavorable currency translation of $1.8 million.

Net sales in the Distribution Segment increased $54.5 million or 27.6% in the year ended December 31, 2022 compared to the prior year, primarily due to higher pricing of $17.1 million and due to $39.8 million of incremental sales from the acquisition of Mohawk on May 31, 2022 offset by lower volume/mix of $2.4 million.

**Cost of Sales & Gross Profit:**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |  |  |
| (dollars in thousands) | **2022** | **2021** | **Change** | **% Change** |
| Cost of sales | $616181 | $550014 | $66167 | 12.0% |
| Gross profit | $283366 | $211421 | $71945 | 34.0% |
| Gross profit as a percentage of sales | 31.5% | 27.8% |  |  |

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Gross profit increased $71.9 million, or 34.0%, for the year ended December 31, 2022 compared to the prior year due to increased contribution from higher pricing and the acquisitions of Mohawk on May 31, 2022 and Trilogy on July 30, 2021 and $3.0 million of lower raw material costs, partly offset by lower volume/mix as described under Net Sales above, $5.9 million due to cost inflation and $0.8 million from the effect of unfavorable currency translation. As a result, gross profit margin increased to 31.5% for the year ended December 31, 2022 compared to 27.8% for the same period in 2021.

**Selling, General and Administrative Expenses:**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |  |  |
| (dollars in thousands) | **2022** | **2021** | **Change** | **% Change** |
| SG&A expenses | $199489 | $163502 | $35987 | 22.0% |
| SG&A expenses as a percentage of sales | 22.2% | 21.5% |  |  |

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Selling, general and administrative ("SG&A") expenses for the year ended December 31, 2022 were $199.5 million, an increase of $36.0 million or 22.0% compared to the prior year. Increases in SG&A expenses in 2022 were primarily due to $10.7 million of incremental SG&A from the acquisitions of Mohawk on May 31, 2022 and Trilogy on July 30, 2021, $3.8 million of higher salaries and benefits and $12.1 million of higher incentive compensation and commissions. SG&A expenses also increased $3.8 million due to higher variable selling expenses, $3.1 million due to higher facility costs and $1.8 million due to higher legal and professional fees. Environmental matters described in Note 9 to the consolidated financials resulted in a net $1.4 million expense in the year ended December 31, 2022, including the probable insurance recovery of previously recorded charges, which compared to $0.7 million of charges in the year ended December 31, 2021.

**Gain on Disposal of Fixed Assets:**

During the year ended December 31, 2022, gains on disposal of fixed assets totaled $0.7 million. During the year ended December 31, 2021, gains on disposal of fixed assets totaled $1.4 million, primarily related to the sale and leaseback of a facility as discussed in Note 6 to the consolidated financial statements.

**Other (Income) Expenses:**

During the year ended December 31, 2022, a $0.6 million pre-tax impairment loss was recorded to fully impair an investment in a Distribution segment joint venture that was formed in 2013 to distribute tools, supplies and equipment to the auto aftermarket in India. See further discussion in Note 1 to the consolidated financial statements.

During the year ended December 31, 2020, the company recognized an $11.9 million pre-tax gain related to the release from a lease guarantee from HC Companies, Inc. in conjunction with a 2015 sale of its Lawn and Garden business as discussed in Note 1 to the consolidated financial statements.

**Net Interest Expense:**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |  |  |
| (dollars in thousands) | **2022** | **2021** | **Change** | **% Change** |
| Net interest expense | $5731 | $4208 | $1523 | 36.2% |
| Average outstanding borrowings, net | $112318 | $87410 | $24908 | 28.5% |
| Weighted-average borrowing rate | 4.87% | 4.56% |  |  |

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Net interest expense for the year ended December 31, 2022 was $5.7 million compared to $4.2 million during 2021. The higher net interest expense was due to higher average outstanding borrowings in the current year, mainly related to the acquisition of Mohawk, and a higher weighted-average borrowing rate in the current year.

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**Income Taxes:**

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
| (dollars in thousands) | **2022** | **2021** |
| Income from continuing operations before income taxes | $78210 | $45093 |
| Income tax expense | $17943 | $11555 |
| Effective tax rate | 22.9% | 25.6% |

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The effective tax rate was 22.9% for the year ended December 31, 2022 compared to 25.6% in the prior year. The decrease in the effective tax rate was primarily the result of the recognition of a previously unrecognized tax benefit and a reduction in state income taxes due to income being earned in lower taxed jurisdictions.

**Financial Condition & Liquidity and Capital Resources**

The Company's primary sources of liquidity are cash on hand, cash generated from operations and availability under the Loan Agreement (defined below). At December 31, 2022, the Company had $23.1 million of cash, $188.3 million available under the Loan Agreement and outstanding debt with face value of $103.4 million, including the finance lease liability of $9.4 million. Our primary contractual obligations relate to our debt and lease arrangements as described in Notes 10 and 13 to the consolidated financial statements. Based on this liquidity and borrowing capacity, the Company believes it is well-positioned to manage through the working capital demands and heightened uncertainty in the current macroeconomic environment. The Company believes that cash on hand, cash flows from operations and available capacity under its Loan Agreement will be sufficient to meet expected business requirements including capital expenditures, dividends, working capital, debt service, and to fund future growth, including selective acquisitions.

**Operating Activities**

Cash provided by operating activities was $72.6 million and $44.9 million for the years ended December 31, 2022 and 2021, respectively. The increase was primarily due to higher net income for the year ended December 31, 2022.

**Investing Activities**

Net cash used by investing activities was $50.4 million for the year ended December 31, 2022 compared to cash used of $50.3 million for the year ended December 31, 2021. In 2022, the Company paid $27.6 million to acquire Mohawk as discussed in Note 3 to the consolidated financial statements. The Company also received in 2022 proceeds of $1.5 million from the sale of fixed assets. In 2021, the Company paid $34.5 million to acquire Trilogy and also settled a working capital adjustment of $1.2 million related to the November 10, 2020 acquisition of Elkhart Plastics as discussed in Note 3 to the consolidated financial statements. The Company also received in 2021 proceeds from the sale of a facility of $2.8 million as discussed in Note 6 to the consolidated financial statements. Capital expenditures were $24.3 million and $17.9 million for the years ended December 31, 2022 and 2021. Capital expenditures in 2022 included $1.4 million to purchase the manufacturing assets of a rotational molding facility in Decatur, Georgia.

**Financing Activities**

Net cash used by financing activities was $16.3 million for the year ended December 31, 2022 compared to cash used of $5.2 million for the year ended December 31, 2021. Net borrowings on the credit facility for the year ended December 31, 2022 and December 31, 2021 were $3.0 million and $53.0 million, respectively. In 2021, the Company repaid the $40.0 million Senior Unsecured Note that matured in January 2021 with a combination of cash and proceeds under the Loan Agreement (defined below). Fees paid for the amendment and extension of the Loan Agreement in September 2022 and March 2021 totaled $0.9 million and $1.1 million, respectively. Net proceeds from the issuance of common stock in connection with incentive stock option exercises were $2.3 million and $3.8 million in 2022 and 2021, respectively. The Company also used cash to pay dividends of $19.8 million and $19.6 million in 2022 and 2021, respectively.

**Credit Sources**

On September 29, 2022, the Company entered into a Seventh Amended and Restated Loan Agreement (the "Seventh Amendment"), which amended the Sixth Amended and Restated Loan Agreement (the "Sixth Amendment"), dated March 12, 2021. The Seventh Amendment, among other things, extended the maturity date to September 2027 from March 2024. There was no change to the credit facility's borrowing limit of $250 million.

In March 2021, the Company entered into the Sixth Amendment, which amended the Fifth Amended and Restated Loan Agreement (collectively with the Sixth and Seventh Amendments, the "Loan Agreement") dated March 2017. The Sixth Amendment increased the

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senior revolving credit facility's borrowing limit to $250 million from $200 million, extended the maturity date to March 2024 from March 2022, and increased flexibility of the financial and other covenants and provisions.

As of December 31, 2022, $188.3 million was available under the Loan Agreement, after borrowings and $5.7 million of letters of credit issued related to insurance and other financing contracts in the ordinary course of business, including the $2 million provided to the EPA as discussed in Note 9 to the consolidated financial statements. Borrowings under the Loan Agreement bear interest at the Term SOFR, RFR, EURIBOR and CDOR-based borrowing rates.

At December 31, 2022, $38 million face value of Senior Unsecured Notes are outstanding. The series of notes range in face value from $11 million to $15 million, with interest rates ranging from 5.25% to 5.45%, payable semiannually. As described in Note 10, $26.0 million of the Senior Unsecured Notes mature on January 15, 2024 and $12.0 million mature on January 15, 2026.

As of December 31, 2022, the Company was in compliance with all of its debt covenants. The most restrictive financial covenants for all of the Company's debt are an interest coverage ratio (defined as earnings before interest, taxes, depreciation and amortization, as adjusted, divided by interest expense) and a leverage ratio (defined as total debt divided by earnings before interest, taxes, depreciation and amortization, as adjusted). The ratios as of and for the period ended December 31, 2022 are shown in the following table:

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| | | | |
|:---|:---|:---|:---|
|  | **Required Level** | **Actual Level** | **Actual Level** |
| Interest Coverage Ratio | 3.00 to 1 (minimum) |  | 20.34 |
| Leverage Ratio | 3.25 to 1 (maximum) |  | 0.94 |

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**Off-Balance Sheet Arrangements**

The Company does not have any off-balance sheet arrangements that have, or are reasonably expected to have, a material current or future effect on its financial condition, results of operations, liquidity, capital expenditures or capital resources at December 31, 2022.

**Critical Accounting Policies and Estimates**

The discussion and analysis of the Company's financial condition and results of operations are based on the accompanying consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). As indicated in the Summary of Significant Accounting Policies included in the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K, the amount of assets, liabilities, revenue and expenses reported are affected by estimates and judgments that are necessary to comply with U.S. GAAP. The Company bases its estimates on prior experience and other assumptions that they consider reasonable to their circumstances. The Company believes the following matters may involve a high degree of judgment and complexity.

Contingencies — In the ordinary course of business, the Company is involved in various legal proceedings and contingencies, including environmental matters. When a loss arising from these matters is probable and can reasonably be estimated, the most likely amount of the estimated probable loss is recorded, or if a range of probable loss can be estimated and no amount within the range is a better estimate than any other amount, the minimum amount in the range is recorded. Disclosure of contingent losses is also provided when there is a reasonable possibility that the ultimate loss could exceed the recorded provision or if such probable loss cannot be reasonably estimated. As additional information becomes available, any potential liability related to these contingent matters is assessed and the estimates are revised, if necessary. The actual resolution of these contingencies may differ from these estimates, and it is possible that future earnings could be affected by changes in estimated outcomes of these contingencies. If a contingency were settled for an amount greater than our estimate, a future charge to income would result. Likewise, if a contingency were settled for an amount that is less than our estimate, a future credit to income would result. See disclosure of contingencies in Note 9 to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K.

Income Taxes — In the ordinary course of business there is inherent uncertainty in quantifying certain income tax positions. The Company evaluates uncertain tax positions for all years subject to examination based upon management's evaluations of the facts, circumstances and information available at the reporting date. Income tax positions must meet a more-likely-than-not recognition threshold at the reporting date to be recognized. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense.

Business Combinations – The Company uses the acquisition method of accounting to allocate costs of acquired businesses to the assets acquired and liabilities assumed based on their estimated fair values at the dates of acquisition. The excess costs of acquired businesses over the fair values of the assets acquired and liabilities assumed are recognized as goodwill. The valuations of the acquired assets and liabilities will impact the determination of future operating results. Determining the fair value of assets acquired and liabilities assumed requires management's judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, revenue growth rates, discount rates, customer attrition rates, royalty rates, asset lives,

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contributory asset charges, and market multiples, among other items. The Company determines the fair values of intangible assets acquired generally in consultation with third-party valuation advisors. See disclosure of acquisitions in Note 3 to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K.

**Recent Accounting Pronouncements**

Information regarding the recent accounting pronouncements is contained in the Summary of Significant Accounting Policies footnote of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

**Year Ended December 31, 2021 Compared to Year Ended December 31, 2020**

For a comparison of the Company's results of operations for the fiscal years ended December 31, 2021 and December 31, 2020, see "Part II, Item 7. Management's Discussion and Analysis of Results of Operations and Financial Condition" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the SEC on March 10, 2022.

**ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk**

**Market Risk and Derivative Financial Instruments**

**Interest Rate Risk**

The Company has certain financing arrangements that require interest payments based on floating interest rates, and to that extent, the Company's financial results are subject to changes in the market rate of interest. Borrowings under the Loan Agreement bear interest at the Term SOFR, RFR, EURIBOR and CDOR-based borrowing rates. At present, the Company has not entered into any interest rate swaps or other derivative instruments to fix the interest rate on any portion of its financing arrangements with floating rates. Based on current debt levels at December 31, 2022, if market interest rates increase one percent, the Company's variable interest expense would increase approximately $0.6 million annually.

**Foreign Currency Exchange Risk**

Some of the Company's subsidiaries operate in foreign countries and their financial results are subject to exchange rate movements. The Company has operations in Canada with foreign currency exposure, primarily due to sales made from businesses in Canada to customers in the United States ("U.S."). These sales are denominated in U.S. dollars. The Company has a systematic program to limit its exposure to fluctuations in exchange rates related to certain assets and liabilities of its operations in Canada that are denominated in U.S. dollars. The net exposure generally is less than $1 million. The foreign currency contracts and arrangements created under this program are not designated as hedged items under Financial Accounting Standards Board ("FASB") Accounting Standard Codification ("ASC") 815, Derivatives and Hedging, and accordingly, the changes in the fair value of the foreign currency arrangements, which have been immaterial, are recorded in the Consolidated Statement of Operations. The Company's foreign currency arrangements are typically three months or less and are settled before the end of a reporting period. At December 31, 2022, the Company had no foreign currency arrangements or contracts in place.

**Commodity Price Risk**

The Company uses certain commodities, primarily plastic resins and natural rubber, in its manufacturing processes. The cost of operations can be affected as the market for these commodities changes. The Company currently has no derivative contracts to hedge changes in raw material pricing; however, the Company also has no significant obligations to purchase fixed quantities of such commodities in future periods. The Company may from time to time enter into forward buy positions for certain utility costs, which were not material at December 31, 2022. Significant future increases in the cost of these commodities or other adverse changes in the general economic environment could have a material adverse impact on the Company's financial position, results of operations or cash flows.

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**ITEM 8. Financial Statements and Supplementary Data**

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and the Board of Directors of Myers Industries, Inc. and Subsidiaries

**Opinion on the Financial Statements**

We have audited the accompanying consolidated statements of financial position of Myers Industries, Inc. and Subsidiaries (the Company) as of December 31, 2022 and 2021, the related consolidated statements of operations, comprehensive income (loss), shareholders' equity and cash flows for each of the three years in the period ended December 31, 2022, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated March 3, 2023 expressed an unqualified opinion thereon.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matter** 

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

---

| | |
|:---|:---|
|  | **New Idria Mercury Mine (New Idria Mine) Environmental Liability** |
| Description of the matter | As discussed in Note 9 of the consolidated financial statements, in 2015, the U.S. Environmental Protection Agency ("EPA") informed a subsidiary of the Company that it considers it to be a potentially responsible party ("PRP") in connection with the New Idria Mine. At December 31, 2022, the Company has recorded liabilities for the estimated cost primarily to execute a Remedial Investigation/Feasibility Study ("RI/FS") work plan being developed with the EPA associated with the New Idria mine. The Company has not accrued for remediation costs associated with this site because the amount of such costs or a range of reasonably possible costs cannot be estimated at this time. <br>Auditing the determination of the amount of the RI/FS liability ("the Liability") involved a high degree of subjectivity as estimates performed by the Company's third-party consultant that impact the determination of the Liability were based on factors unique to the affected site and subject to various laws and regulations governing the protection of the applicable environment.  |

---

------

---

| | |
|:---|:---|
| How we addressed the matter in our audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of the Company's controls over the determination of the Liability. Our audit procedures included, among others, testing controls over management's determination of the estimated costs to perform the RI/FS. <br>To test the Liability, we performed audit procedures that included, among others, inquiring of senior management, senior internal counsel, and management's third-party consultant to understand recent activity in the RI/FS process, inspecting written communications from the EPA to corroborate the anticipated scope of work under the RI/FS, and testing management's accrual determination by comparing to the cost estimates provided by the third-party consultant. Further, we, with the assistance of our environmental specialists, compared the cost estimates used by management to historical data and trends, including historical costs for work previously completed by the EPA and trends for cost of RI/FS work performed in similar areas for similar sized sites, as well as notifications or decisions from regulatory agencies. In addition, we evaluated the competency and objectivity of management's third-party consultant, and we obtained written representations from senior internal counsel and external counsel. We assessed the adequacy of the disclosures in the consolidated financial statements related to the New Idria Mine.  |

---

/s/ Ernst & Young LLP

We have served as the Company's auditor since 2011.

Akron, Ohio

March 3, 2023

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Consolidated Statements of Operations**

**For the Years Ended December 31, 2022, 2021, and 2020**

(Dollars in thousands, except per share data)

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2022** | **2021** | **2020** |
| Net sales | $899547 | $761435 | $510369 |
| Cost of sales | 616181 | 550014 | 338409 |
| &nbsp;&nbsp;&nbsp;Gross profit | 283366 | 211421 | 171960 |
| Selling, general and administrative expenses | 199489 | 163502 | 130331 |
| (Gain) loss on disposal of fixed assets | (667) | (1382) | 3 |
| Other (income) expenses | 603 |  | (11924) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income | 83941 | 49301 | 53550 |
| Interest expense, net | 5731 | 4208 | 4688 |
| Income before income taxes | 78210 | 45093 | 48862 |
| Income tax expense | 17943 | 11555 | 12093 |
| Net income | $60267 | $33538 | $36769 |
| Net income per common share: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $1.66 | $0.93 | $1.03 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $1.64 | $0.92 | $1.02 |
| Dividends declared per share | $0.54 | $0.54 | $0.54 |

---

The accompanying notes are an integral part of these statements.

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Consolidated Statements of Comprehensive Income (Loss)**

**For the Years Ended December 31, 2022, 2021, and 2020**

(Dollars in thousands)

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2022** | **2021** | **2020** |
| Net income | $60267 | $33538 | $36769 |
| Other comprehensive income (loss): |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustment | (2475) | 39 | 628 |
| &nbsp;&nbsp;&nbsp;Pension liability, net of tax expense (benefit) of $28, $111 and ($18), respectively | 83 | 333 | (52) |
| Total other comprehensive income | (2392) | 372 | 576 |
| Comprehensive income | $57875 | $33910 | $37345 |

---

The accompanying notes are an integral part of these statements.

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Consolidated Statements of Financial Position**

**As of December 31, 2022 and 2021**

(Dollars in thousands)

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| **Assets** |  |  |
| **Current Assets** |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $23139 | $17655 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, less allowances of $3,259 and $3,229, respectively | 133716 | 100691 |
| &nbsp;&nbsp;&nbsp;Income tax receivable |  | 2517 |
| &nbsp;&nbsp;&nbsp;Inventories, net | 93351 | 93551 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 7001 | 5500 |
| **Total Current Assets** | 257207 | 219914 |
| Property, plant, and equipment, net | 101566 | 92049 |
| Right of use asset - operating leases | 28908 | 29285 |
| Goodwill | 95157 | 88778 |
| Intangible assets, net | 51752 | 50181 |
| Deferred income taxes | 129 | 106 |
| Other | 7915 | 4236 |
| **Total Assets** | $542634 | $484549 |
| **Liabilities and Shareholders' Equity** |  |  |
| **Current Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $73536 | $81690 |
| &nbsp;&nbsp;&nbsp;Accrued employee compensation | 24664 | 21616 |
| &nbsp;&nbsp;&nbsp;Income taxes payable | 2054 |  |
| &nbsp;&nbsp;&nbsp;Accrued taxes payable, other than income taxes | 3169 | 2759 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 1264 | 966 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 26380 | 19628 |
| &nbsp;&nbsp;&nbsp;Operating lease liability - short-term | 6177 | 5341 |
| &nbsp;&nbsp;&nbsp;Finance lease liability - short-term | 518 | 500 |
| **Total Current Liabilities** | 137762 | 132500 |
| Long-term debt | 93962 | 90945 |
| Operating lease liability - long-term | 22786 | 23815 |
| Finance lease liability - long-term | 8919 | 9437 |
| Other liabilities | 15270 | 13086 |
| Deferred income taxes | 7508 | 5441 |
| **Total Liabilities** | 286207 | 275224 |
| **Shareholders' Equity** |  |  |
| &nbsp;&nbsp;&nbsp;Serial Preferred Shares (authorized 1,000,000 shares; none issued and outstanding) |  |  |
| &nbsp;&nbsp;&nbsp;Common Shares, without par value (authorized 60,000,000 shares; <br> outstanding 36,500,020 and 36,262,259; net of treasury shares <br> of 6,052,437 and 6,290,198, respectively) | 22332 | 22172 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 315865 | 306720 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (17793) | (15401) |
| &nbsp;&nbsp;&nbsp;Retained deficit | (63977) | (104166) |
| **Total Shareholders' Equity** | 256427 | 209325 |
| **Total Liabilities and Shareholders' Equity** | $542634 | $484549 |

---

The accompanying notes are an integral part of these statements.

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**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Consolidated Statements of Shareholders' Equity**

**For the Years Ended December 31, 2022, 2021 and 2020**

(Dollars in thousands, except share data)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Shares** | **Common Shares** | **Additional<br>Paid-In** | **Accumulated<br>Other<br>Comprehensive** | **Retained** | **Total<br>Shareholders'** |
|  | **Number** | **Amount** | **Capital** | **Income (Loss)** | **Deficit** | **Equity** |
| **Balance at January 1, 2020** | 35710934 | $21785 | $296363 | $(16349) | $(135117) | $166682 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  |  |  | 36769 | 36769 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuances under option plans | 127049 | 77 | 1554 |  |  | 1631 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividend reinvestment plan | 7668 | 5 | 96 |  |  | 101 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted stock vested | 118686 | 72 | (72) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock compensation expense |  |  | 3534 |  |  | 3534 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares withheld for employee taxes on<br> equity awards | (43312) |  | (623) |  |  | (623) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustment |  |  |  | 628 |  | 628 |
| &nbsp;&nbsp;&nbsp;Declared dividends - $0.54 per share |  |  |  |  | (19570) | (19570) |
| &nbsp;&nbsp;&nbsp;Pension liability, net of tax of ($18) |  |  |  | (52) |  | (52) |
| **Balance at December 31, 2020** | 35921025 | 21939 | 300852 | (15773) | (117918) | 189100 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  |  |  | 33538 | 33538 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuances under option plans | 221060 | 135 | 3561 |  |  | 3696 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividend reinvestment plan | 4636 | 3 | 94 |  |  | 97 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted stock vested | 155406 | 95 | (95) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock compensation expense |  |  | 3196 |  |  | 3196 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares withheld for employee taxes on<br> equity awards | (39868) |  | (888) |  |  | (888) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustment |  |  |  | 39 |  | 39 |
| &nbsp;&nbsp;&nbsp;Declared dividends - $0.54 per share |  |  |  |  | (19786) | (19786) |
| &nbsp;&nbsp;&nbsp;Pension liability, net of tax of $111 |  |  |  | 333 |  | 333 |
| **Balance at December 31, 2021** | 36262259 | 22172 | 306720 | (15401) | (104166) | 209325 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  |  |  | 60267 | 60267 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuances under option plans | 127881 | 78 | 2157 |  |  | 2235 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividend reinvestment plan | 4218 | 3 | 82 |  |  | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted stock vested | 130386 | 79 | (79) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock compensation expense |  |  | 7436 |  |  | 7436 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares withheld for employee taxes on<br> equity awards | (24724) |  | (451) |  |  | (451) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustment |  |  |  | (2475) |  | (2475) |
| &nbsp;&nbsp;&nbsp;Declared dividends - $0.54 per share |  |  |  |  | (20078) | (20078) |
| &nbsp;&nbsp;&nbsp;Pension liability, net of tax of $28 |  |  |  | 83 |  | 83 |
| **Balance at December 31, 2022** | 36500020 | $22332 | $315865 | $(17793) | $(63977) | $256427 |

---

The accompanying notes are an integral part of these statements.

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Consolidated Statements of Cash Flows**

**For the Years Ended December 31, 2022, 2021 and 2020**

(Dollars in thousands)

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2022** | **2021** | **2020** |
| **Cash Flows From Operating Activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $60267 | $33538 | $36769 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by (used for) operating activities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 21216 | 20422 | 20530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs | 441 | 463 | 400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash stock-based compensation expense | 7436 | 3196 | 3534 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on disposal of fixed assets | (667) | (1382) | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of notes receivable |  |  | (11924) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred taxes | 2072 | 2826 | 8732 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 1520 | (1403) | 4225 |
| &nbsp;&nbsp;&nbsp;Cash flows provided by (used for) working capital |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (23625) | (15273) | (11589) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 7955 | (24885) | (7868) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (1409) | (676) | (969) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | (2585) | 28088 | 4664 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used for) operating activities | 72621 | 44914 | 46507 |
| **Cash Flows From Investing Activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures | (24292) | (17867) | (13421) |
| &nbsp;&nbsp;&nbsp;Acquisition of business, net of cash acquired | (27626) | (35758) | (63334) |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of property, plant and equipment | 1537 | 3336 | 2 |
| &nbsp;&nbsp;&nbsp;Proceeds on sale of notes receivable |  |  | 1200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used for) investing activities | (50381) | (50289) | (75553) |
| **Cash Flows From Financing Activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Borrowings on revolving credit facility | 1264200 | 886600 |  |
| &nbsp;&nbsp;&nbsp;Repayments on revolving credit facility | (1261200) | (833600) |  |
| &nbsp;&nbsp;&nbsp;Repayments of long-term debt |  | (40000) |  |
| &nbsp;&nbsp;&nbsp;Payments on finance lease | (500) | (402) |  |
| &nbsp;&nbsp;&nbsp;Cash dividends paid | (19797) | (19596) | (19425) |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock | 2320 | 3793 | 1732 |
| &nbsp;&nbsp;&nbsp;Shares withheld for employee taxes on equity awards | (451) | (888) | (623) |
| &nbsp;&nbsp;&nbsp;Deferred financing fees | (889) | (1095) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used for) financing activities | (16317) | (5188) | (18316) |
| Foreign exchange rate effect on cash | (439) | (83) | 136 |
| Net increase (decrease) in cash | 5484 | (10646) | (47226) |
| Cash at January 1 | 17655 | 28301 | 75527 |
| Cash at December 31 | $23139 | $17655 | $28301 |
| **Supplemental Disclosures of Cash Flow Information** |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid during the year for: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest | $4574 | $4279 | $4505 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes | $13023 | $10936 | $5355 |

---

The accompanying notes are an integral part of these statements.

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**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements**

**(Dollars in thousands, except where otherwise indicated)**

**<u>1. Summary of Significant Accounting Policies</u>**

**Basis of Presentation**

The consolidated financial statements include the accounts of Myers Industries, Inc. and all wholly owned subsidiaries (collectively, the "Company"). All intercompany accounts and transactions have been eliminated in consolidation. All subsidiaries that are not wholly owned and are not included in the consolidated operating results of the Company are immaterial investments which have been accounted for under the equity or cost method. The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the timing and amount of assets, liabilities, equity, revenues, and expenses recorded and disclosed. Actual results could differ from those estimates.

In 2015, the Company sold its former Lawn and Garden business to the L&G Buyer, which later became HC Companies, Inc. ("HC"). The terms of the sale included promissory notes from HC, which were fully reserved for in 2018 due to uncertainty of collection. Also, in connection with the sale of the Lawn and Garden business, the Company became a guarantor for any remaining rent payments under one of HC's facility leases. The carrying value of the lease contingency as of December 31, 2019 was $10.7 million. In January 2020, the Company sold to HC the fully-reserved promissory notes in exchange for $1.2 million and the release from the lease guarantee resulting in an $11.9 million pre-tax gain recorded as Other income.

**Accounting Standards Adopted**

In December 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU is intended to improve the accounting for acquired contracts with customers in business combinations by addressing diversity in practice by requiring the acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. The amendments within this ASU are required to be applied prospectively to business combinations occurring on or after the effective date. The Company adopted this standard effective January 1, 2023 and the adoption of this standard did not have a material impact on its consolidated financial statements.

**Translation of Foreign Currencies**

All asset and liability accounts of consolidated foreign subsidiaries are translated at the current exchange rate as of the end of the accounting period and income statement items are translated monthly at an average currency exchange rate for the period. The resulting foreign currency translation adjustment is recorded in other comprehensive income (loss) as a separate component of shareholders' equity.

**Fair Value Measurement**

Fair value is the price to hypothetically sell an asset or transfer a liability in an orderly manner in the principal market for that asset or liability. Accounting standards prioritize the use of observable inputs in measuring fair value. The level of a fair value measurement is determined entirely by the lowest level input that is significant to the measurement. The three levels are (from highest to lowest):

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2: Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical similar assets or liabilities in markets that are not active or inputs that are observable either directly or indirectly.

Level 3: Unobservable inputs for which there is little or no market data or which reflect the entity's own assumptions.

The Company has financial instruments, including cash, accounts receivable, accounts payable and accrued expenses. The fair value of these financial instruments approximates carrying value due to the nature and relative short maturity of these assets and liabilities.

The fair value of debt under the Company's Loan Agreement, as defined in Note 10, approximates carrying value due to the floating rates and relative short maturity (less than 90 days) of the revolving borrowings under this agreement. The fair value of the Company's fixed rate senior unsecured notes was estimated using market observable inputs for the Company's comparable peers with public debt, including quoted prices in active markets and interest rate measurements, which are considered Level 2 inputs. At December 31, 2022 and 2021, the aggregate fair value of the Company's outstanding fixed rate senior unsecured notes was estimated at $37.4 million and $41.0 million, respectively.

The purchase price allocations associated with the May 31, 2022 acquisition of Mohawk Rubber Sales of New England Inc. ("Mohawk"), the July 30, 2021 acquisition of Trilogy Plastics, Inc. ("Trilogy") and the November 10, 2020 acquisition of Elkhart Plastics, Inc.

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements - (Continued)**

**(Dollars in thousands, except where otherwise indicated)**

("Elkhart"), as described in Note 3, required fair value measurements using unobservable inputs which are considered Level 3 inputs. The fair value of the acquired intangible assets was determined using an income approach. Similarly, impairment testing of goodwill and indefinite-lived intangible assets as described in Note 4 involves determination of fair value using unobservable inputs, which are considered Level 3 inputs. The fair values of the reporting units in accordance with the goodwill impairment test were determined using the income and/or market approaches.

**Concentration of Credit Risk**

Financial instruments that potentially subject the Company to concentration of credit risk primarily consist of trade accounts receivable. The concentration of accounts receivable credit risk is generally limited based on the Company's diversified operations, with customers spread across many industries and countries. In 2022, there were no customers that accounted for more than ten percent of net sales. The Company does not have a material concentration of sales in any country outside of the United States.

**Allowance for Credit Losses**

Management has established certain requirements that customers must meet before credit is extended. The financial condition of customers is continually monitored and collateral is usually not required. The Company evaluates the collectability of accounts receivable based on a combination of factors. The Company reviews historical trends for credit loss as well as current economic conditions in determining an estimate for its allowance for credit losses. Additionally, in circumstances where the Company is aware of a specific customer's inability to meet its financial obligations, a specific allowance for credit losses is recorded against amounts due to reduce the net recognized receivable to the amount the Company reasonably expects will be collected. Expense related to bad debts was approximately $0.5 million, $0.7 million and $1.4 million for 2022, 2021 and 2020, respectively, and is recorded within Selling, general and administrative expenses in the Consolidated Statements of Operations. Deductions from the allowance for doubtful accounts, net of recoveries, were approximately $0.4 million, $0.9 million and $0.4 million for 2022, 2021 and 2020, respectively.

Changes in the allowance for credit losses for the years ended December 31, 2022 and 2021 were as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Balance at January 1 | $2173 | $2335 |
| Provision for expected credit loss, net of recoveries | 540 | 737 |
| Write-offs and other | (440) | (899) |
| Balance at December 31 | $2273 | $2173 |

---

**Inventories**

Inventories are valued at the lower of cost or market for last-in, first-out ("LIFO") inventory and lower of cost or net realizable value for first-in, first-out ("FIFO") inventory. Approximately 35 percent of our inventories are valued using the LIFO method of determining cost. All other inventories are valued at the FIFO method of determining cost.

Inventories at December 31 consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| Finished and in-process products | $54991 | $56684 |
| Raw materials and supplies | 38360 | 36867 |
|  | $93351 | $93551 |

---

If the FIFO method of inventory cost valuation had been used exclusively by the Company, inventories would have been $8.6 million and $7.0 million higher than reported at December 31, 2022 and 2021, respectively. Cost of sales decreased by $0.8 million, $0.1 million and $0.1 million in 2022, 2021 and 2020, respectively, as a result of the liquidation of LIFO inventories.

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**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements - (Continued)**

**(Dollars in thousands, except where otherwise indicated)**

**Property, Plant and Equipment**

Property, plant and equipment are carried at cost less accumulated depreciation and amortization. The Company provides for depreciation and amortization on the basis of the straight-line method over the estimated useful lives of the assets as follows:

---

| | |
|:---|:---|
| Buildings | 20 to 40 years |
| Machinery and equipment | 3 to 10 years |
| Leasehold improvements | 5 to 10 years |

---

The Company's property, plant and equipment by major asset class at December 31 consists of:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| Land | $6907 | $6733 |
| Buildings and leasehold improvements | 60982 | 59199 |
| Machinery and equipment | 311822 | 296809 |
|  | 379711 | 362741 |
| Less allowances for depreciation and amortization | (278145) | (270692) |
|  | $101566 | $92049 |

---

**Long-Lived Assets**

The Company reviews its long-lived assets and identifiable intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Determination of potential impairment related to assets to be held and used is based upon undiscounted future cash flows resulting from the use and ultimate disposition of the asset and related asset group. For assets held for sale, the amount of potential impairment may be based upon appraisal of the asset, estimated market value of similar assets or estimated cash flow from the disposition of the asset.

**Accumulated Other Comprehensive Income (Loss)**

Changes in accumulated other comprehensive income (loss) were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Foreign<br>Currency** | **Defined Benefit<br>Pension Plans** | **Total** |
| Balance at January 1, 2020 | $(14602) | $(1747) | $(16349) |
| &nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before reclassifications | 628 | (113) | 515 |
| &nbsp;&nbsp;&nbsp;Amounts reclassified from accumulated other comprehensive income, net<br> of tax of ($20) (1) |  | 61 | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net current-period other comprehensive income (loss) | 628 | (52) | 576 |
| Balance at December 31, 2020 | (13974) | (1799) | (15773) |
| &nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before reclassifications | 39 | 269 | 308 |
| &nbsp;&nbsp;&nbsp;Amounts reclassified from accumulated other comprehensive income, net<br> of tax of ($21) (1) |  | 64 | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net current-period other comprehensive income (loss) | 39 | 333 | 372 |
| Balance at December 31, 2021 | (13935) | (1466) | (15401) |
| &nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before reclassifications | (2475) | 33 | (2442) |
| &nbsp;&nbsp;&nbsp;Amounts reclassified from accumulated other comprehensive income, net<br> of tax of ($17) (1) |  | 50 | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net current-period other comprehensive income (loss) | (2475) | 83 | (2392) |
| Balance at December 31, 2022 | $(16410) | $(1383) | $(17793) |

---

(1)The accumulated other comprehensive income (loss) components related to defined benefit pension plans are included in the computation of net periodic pension cost. See Note 12, Retirement Plans for additional details.

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements - (Continued)**

**(Dollars in thousands, except where otherwise indicated)**

**Stock Based Compensation**

The Company has stock incentive plans that provide for the granting of stock-based compensation to employees and directors. Shares issued for option exercises, restricted stock units and performance units may be either from authorized, but unissued shares or treasury shares. For equity-classified awards, the fair value is determined on the date of the grant and not remeasured. The fair value of restricted stock units and performance units without a relative Total Shareholder Return ("rTSR") modifier are determined using the closing price of the Company's common stock on the grant date (Level 1 measurement). The fair value of performance units with a rTSR modifier is determined using a Monte Carlo simulation, which determines the probability of satisfying the market condition included in the award using market-based inputs (Level 2 measurement). For these awards, the performance-based vesting requirements determine the number of shares that ultimately vest, which can vary from 0% to 250% of target depending on the level of achievement of established performance criteria. The fair value of options is determined using a binomial lattice option pricing model as further described in Note 8, which uses market-based inputs (Level 2 measurement). When awards contain a required holding period after vesting, the fair value is discounted to reflect the lack of marketability. Expense for restricted stock units and stock options is recognized on a straight-line basis over the requisite service period, which is generally equivalent to the vesting term. Compensation expense for performance units is recognized over the requisite service period subject to adjustment based on the probable number of shares expected to vest under the performance condition. Forfeitures result in reversal of previously recognized expenses for unvested shares and are recognized in the period in which the forfeiture occurs.

**Income Taxes**

Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences are expected to be received or settled. Any effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period the change is enacted.

Deferred tax assets are reduced by a valuation allowance, if based on all available evidence, it is more likely than not that the deferred tax asset will not be realized. The Company evaluates the recovery of its deferred tax assets by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income inherently rely heavily on estimates.

In the ordinary course of business, there is inherent uncertainty in quantifying certain income tax positions. The Company evaluates uncertain tax positions for all years subject to examination based upon management's evaluations of the facts, circumstances and information available at the reporting date. Income tax positions must meet a more-likely-than-not recognition threshold at the reporting date to be recognized. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense.

**Cash and Cash Equivalents**

The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates market value.

Capital expenditures in the Consolidated Statement of Cash Flows excludes accrued, but unpaid, capital expenditures. Changes in the amount accrued increased (reduced) cash used for capital expenditures by $(0.6) million, $(0.2) million and $(1.6) million 2022, 2021 and 2020, respectively.

**Investments**

In 2013, the Company invested in a joint venture to distribute tools, supplies and equipment to the Indian auto aftermarket. The Company's minority ownership interest has been accounted for under ASC 321, Investments - Equity Securities, as the Company cannot exercise significant influence over operating and financial policies of the joint venture. Under ASC 321, for each reporting period, a qualitative assessment is completed to evaluate whether the investment is impaired. During the fourth quarter of 2022, impairment triggers were identified and the investment in the joint venture was fully impaired, resulting in a $0.6 million pre-tax impairment loss in Other (income) expenses in the Consolidated Statement of Operations.

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements - (Continued)**

**(Dollars in thousands, except where otherwise indicated)**

**<u>2. Revenue Recognition</u>**

The Company's revenue by major market is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2022** | **For the Year Ended December 31, 2022** | **For the Year Ended December 31, 2022** | **For the Year Ended December 31, 2022** |
|  | **Material<br>Handling** | **Distribution** | **Inter-company** | **Consolidated** |
| Consumer | $113339 | $— | $— | $113339 |
| Vehicle | 165139 |  |  | 165139 |
| Food and beverage | 125111 |  |  | 125111 |
| Industrial | 244030 |  | (38) | 243992 |
| Auto aftermarket |  | 251966 |  | 251966 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total net sales | $647619 | $251966 | $(38) | $899547 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2021** | **For the Year Ended December 31, 2021** | **For the Year Ended December 31, 2021** | **For the Year Ended December 31, 2021** |
|  | **Material<br>Handling** | **Distribution** | **Inter-company** | **Consolidated** |
| Consumer | $116707 | $— | $— | $116707 |
| Vehicle | 170322 |  |  | 170322 |
| Food and beverage | 83817 |  |  | 83817 |
| Industrial | 193222 |  | (60) | 193162 |
| Auto aftermarket |  | 197427 |  | 197427 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total net sales | $564068 | $197427 | $(60) | $761435 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2020** | **For the Year Ended December 31, 2020** | **For the Year Ended December 31, 2020** | **For the Year Ended December 31, 2020** |
|  | **Material<br>Handling** | **Distribution** | **Inter-company** | **Consolidated** |
| Consumer | $92301 | $— | $— | $92301 |
| Vehicle | 77085 |  |  | 77085 |
| Food and beverage | 54752 |  |  | 54752 |
| Industrial | 119746 |  | (59) | 119687 |
| Auto aftermarket |  | 166544 |  | 166544 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total net sales | $343884 | $166544 | $(59) | $510369 |

---

Revenue is recognized when obligations under the terms of a contract with customers are satisfied. In both the Distribution and Material Handling segments, this generally occurs with the transfer of control of the Company's products. This transfer of control may occur at either the time of shipment from a Company facility, or at the time of delivery to a designated customer location. Obligations under contracts with customers are typically fulfilled within 90 days of receiving a purchase order from a customer, and generally no other future obligations are required to be performed. The Company generally does not enter into contracts with customers for longer than one year. Based on the nature of the Company's products and customer contracts, no deferred revenue has been recorded with the exception of cash advances or deposits received from customers prior to transfer of control of the product. These advances are typically fulfilled within the 90 day time frame mentioned above.

Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the products. Certain contracts with customers include variable consideration, such as rebates or discounts. The Company recognizes estimates of this variable consideration each period, primarily based on the most likely level of consideration to be paid to the customer under the specific terms of the underlying programs. While the Company's contracts with customers do not generally include explicit rights to return product, the Company will in practice allow returns in the normal course of business and as part of the customer relationship. Thus, the Company estimates the expected returns each period based on an analysis of historical experience. For certain businesses where physical recovery of the product from returns occurs, the Company records an estimated right to return asset from such recovery, based on the approximate cost of the product.

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements - (Continued)**

**(Dollars in thousands, except where otherwise indicated)**

Amounts included in the Consolidated Statements of Financial Position related to revenue recognition include:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,** | **December 31,** | **Statement of Financial<br>Position** |
|  | **2022** | **2021** | **Classification** |
| Returns, discounts and other allowances | $(986) | $(1056) | Accounts receivable |
| Right of return asset | $350 | $361 | Inventories, net |
| Customer deposits | $(5896) | $(1816) | Other current liabilities |
| Accrued rebates | $(4711) | $(3378) | Other current liabilities |

---

Sales, value added, and other taxes the Company collects concurrently with revenue from customers are excluded from net sales. The Company has elected to recognize the cost for shipments to customers when control over products has transferred to the customer. Costs for shipments to customers are classified as Selling, general and administrative expenses for the Company's manufacturing businesses and as cost of sales for the Company's distribution business in the accompanying Consolidated Statements of Operations. The Company incurred costs for shipments to customers of approximately $13.1 million, $10.4 million and $7.1 million in selling, general and administrative expenses for the years ended December 31, 2022, 2021 and 2020, respectively, and $10.5 million, $7.3 million and $6.4 million in cost of sales for the years ended December 31, 2022, 2021 and 2020, respectively.

Based on the short term nature of contracts described above, the Company does not incur significant contract acquisition costs. These costs, as well as other incidental items that are immaterial in the context of the contract, are recognized as expense as incurred.

**<u>3. Acquisitions</u>**

<u>Mohawk</u>

On May 31, 2022, the Company acquired the assets of Mohawk, a leading auto aftermarket distributor, which is included in the Distribution Segment. The Mohawk acquisition aligns with the Company's long-term objective to optimize and grow its Distribution business. Cash consideration was $27.6 million, net of $1.1 million of cash acquired. Total cash consideration also includes a $3.3 million working capital adjustment, which was settled in November 2022. The Company estimated additional consideration payable of $0.1 million, subject to finalization of working capital and other adjustments. The Company funded the acquisition with proceeds from the Loan Agreement described in Note 10.

The acquisition of Mohawk was accounted for using the acquisition method, whereby all of the assets acquired and liabilities assumed were recognized at their fair value on the acquisition date, with any excess of the purchase price over the estimated fair value recorded as goodwill. The following table summarizes the allocation of the purchase price based on the estimated fair value of assets acquired and liabilities assumed based on their preliminary estimated fair values at the acquisition date, which are subject to adjustment. Measurement period adjustments for the year ended December 31, 2022 are also summarized in the table below. The purchase accounting will be finalized within one year from the acquisition date.

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements - (Continued)**

**(Dollars in thousands, except where otherwise indicated)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Initial Allocation of Consideration** | **Measurement Period Adjustments(1)** | **Updated Preliminary Allocation** |
| **Assets acquired:** |  |  |  |
| Accounts receivable | $10137 | $345 | $10482 |
| Inventories | 8209 | (16) | 8193 |
| Prepaid expenses | 104 |  | 104 |
| Other assets - long term | 30 |  | 30 |
| Property, plant and equipment | 1432 | (261) | 1171 |
| Right of use asset - operating leases | 1367 |  | 1367 |
| Intangible assets | 7720 | 90 | 7810 |
| Goodwill | 7485 | (403) | 7082 |
| &nbsp;&nbsp;&nbsp;Assets acquired | $36484 | $(245) | $36239 |
| **Liabilities assumed:** |  |  |  |
| Accounts payable | $5996 | $(191) | $5805 |
| Accrued expenses | 1414 | (70) | 1344 |
| Operating lease liability - short term | 399 |  | 399 |
| Operating lease liability - long term | 968 |  | 968 |
| &nbsp;&nbsp;&nbsp;Total liabilities assumed | 8777 | (261) | 8516 |
| &nbsp;&nbsp;&nbsp;Net acquisition cost | $27707 | $16 | $27723 |

---

<sup>(1)</sup> The Company's preliminary purchase price allocation changed due to additional information and further analysis.

The goodwill represents the future economic benefits arising from other assets acquired that could not be individually and separately recognized, and the Company expects that the goodwill recognized for the acquisition will be deductible for tax purposes.

The intangible assets included above consist of the following:

---

| | | |
|:---|:---|:---|
|  | **Fair Value** | **Weighted Average<br>Estimated<br>Useful Life** |
| Customer relationships | $5500 | 12.0 years |
| Trade name | 2000 | 5.0 years |
| Non-competition agreements | 310 | 5.0 years |
| &nbsp;&nbsp;&nbsp;Total amortizable intangible assets | $7810 |  |

---

<u>Trilogy Plastics</u>

On July 30, 2021, the Company acquired the assets of Trilogy, a custom rotational molder specializing in high quality parts and assemblies, which is included in the Material Handling Segment. The Trilogy acquisition aligns with the Company's long-term strategic plan to transform the Company into a high-growth, customer-centric innovator of value-added engineered plastic solutions. The purchase price for the acquisition was $34.5 million, including a working capital adjustment of $0.3 million which was settled in November 2021. The Company funded the acquisition with proceeds from the Loan Agreement described in Note 10.

The acquisition of Trilogy was accounted for using the acquisition method, whereby all of the assets acquired and liabilities assumed were recognized at their fair value on the acquisition date, with any excess of the purchase price over the estimated fair value recorded as goodwill. The following table summarizes the allocation of the purchase price based on the estimated fair value of assets acquired

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements - (Continued)**

**(Dollars in thousands, except where otherwise indicated)**

and liabilities assumed based on the estimated fair values at the acquisition date. There were no measurement period adjustments recorded for the year ended December 31, 2022.

---

| | |
|:---|:---|
| **Assets acquired:** |  |
| Accounts receivable | $3929 |
| Inventories | 2752 |
| Prepaid expenses | 63 |
| Other assets - long term | 93 |
| Property, plant and equipment | 4903 |
| Right of use asset - operating leases | 8685 |
| Intangible assets | 14333 |
| Goodwill | 10003 |
| &nbsp;&nbsp;&nbsp;Assets acquired | $44761 |
| **Liabilities assumed:** |  |
| Accounts payable | $765 |
| Accrued expenses | 777 |
| Operating lease liability - short term | 576 |
| Operating lease liability - long term | 8108 |
| &nbsp;&nbsp;&nbsp;Total liabilities assumed | 10226 |
| &nbsp;&nbsp;&nbsp;Net acquisition cost | $34535 |

---

The goodwill represents the future economic benefits arising from other assets acquired that could not be individually and separately recognized, and the Company expects that the goodwill recognized for the acquisition will be deductible for tax purposes.

The intangible assets included above consist of the following:

---

| | | |
|:---|:---|:---|
|  | **Fair Value** | **Weighted Average<br>Estimated<br>Useful Life** |
| Customer relationships | $12463 | 18.0 years |
| Trade name | 1870 | 10.0 years |
| &nbsp;&nbsp;&nbsp;Total amortizable intangible assets | $14333 |  |

---

<u>Elkhart Plastics</u>

On November 10, 2020, the Company acquired the assets of Elkhart Plastics, a manufacturer of engineered products for the RV, marine, agricultural, construction, truck and other industries, which is included in the Company's Material Handling Segment. The Elkhart Plastics acquisition aligns with the Company's long-term strategic plan to transform the Company into a high-growth, customer-centric innovator of value-added engineered plastic solutions. The purchase price for the acquisition was $63.8 million, including a working capital adjustment of $1.2 million, which was settled in 2021. The Company funded the acquisition using available cash.

**<u>4. Goodwill and Intangible Assets</u>**

The Company tests goodwill and indefinite-lived intangible assets for impairment annually and between annual tests if impairment indicators are present. Such indicators may include, but are not limited to, significant changes in economic and competitive conditions, the impact of the economic environment on the Company's customer base or its businesses, or a material negative change in its relationships with significant customers.

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements - (Continued)**

**(Dollars in thousands, except where otherwise indicated)**

The Company's annual goodwill impairment assessment as of October 1 for all of its reporting units found no impairment in 2022, 2021 or 2020. During 2022, management performed a qualitative assessment for all of its reporting units, with the exception of the Trilogy, Elkhart and Ameri-Kart reporting units for which a quantitative assessment was performed. Effective October 1, 2022, the Trilogy, Elkhart and Ameri-Kart reporting units were combined to form a single reporting unit, following certain structural and organizational changes at the Company, including further integration of the Trilogy and Elkhart businesses which were acquired on July 30, 2021 and November 10, 2020, respectively. The goodwill of the three individual pre-integration reporting units was aggregated to the respective combined reporting unit and management performed a quantitative impairment assessment for the respective reporting units on a before and after basis. The results of the quantitative impairment assessments indicated that the fair value of the Company's reporting units for the before and after basis all had cushion above the carrying value on the assessment date, as of October 1, 2022.

The Company performed a quantitative impairment assessment at October 1, 2021 and a qualitative analysis as of October 1, 2020 for which the results of each of those assessments also indicated that the fair value of the Company's reporting units exceeded carrying value for all reporting units as of October 1, 2021 and 2020, respectively.

The quantitative fair values of the Company's six reporting units in accordance with the goodwill impairment test were determined using the income and/or market approaches. The income approach employs the discounted cash flow method reflecting projected cash flows expected to be generated by market participants and then adjusted for time value of money factors, and requires management to make significant estimates and assumptions related to forecasts of future revenues, earnings before interest, taxes, depreciation, and amortization (EBITDA), and discount rates. The market approach utilizes an analysis of comparable publicly traded companies and requires management to make significant estimates and assumptions related to the forecasts of future revenues, EBITDA, and multiples that are applied to management's forecasted revenues and EBITDA estimates.

The techniques used in the Company's impairment test have incorporated a number of assumptions that the Company believes to be reasonable and to reflect known market conditions at the measurement date. The variables and assumptions used, all of which are Level 3 fair value inputs, include the projections of future revenues and expenses, working capital, terminal values, discount rates and long term growth rates. The estimate of the fair values of these reporting units, and the related goodwill, could change over time based on a variety of factors, including the aggregate market value of the Company's common stock, actual operating performance of the underlying businesses or the impact of future events on the cost of capital and the related discount rates used.

The changes in the carrying amount of goodwill for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Distribution** | **Material<br>Handling** | **Total** |
| January 1, 2021 | $7648 | $71608 | $79256 |
| &nbsp;&nbsp;&nbsp;Acquisition |  | 10003 | 10003 |
| &nbsp;&nbsp;&nbsp;Purchase accounting adjustment |  | (520) | (520) |
| &nbsp;&nbsp;&nbsp;Foreign currency translation |  | 39 | 39 |
| December 31, 2021 | $7648 | $81130 | $88778 |
| &nbsp;&nbsp;&nbsp;Acquisition | 7485 |  | 7485 |
| &nbsp;&nbsp;&nbsp;Purchase accounting adjustment | (403) |  | (403) |
| &nbsp;&nbsp;&nbsp;Foreign currency translation |  | (703) | (703) |
| December 31, 2022 | $14730 | $80427 | $95157 |

---

Intangible assets were established in connection with acquisitions. These intangible assets, other than goodwill and certain indefinite lived trade names, are amortized over their estimated useful lives. The Company performed a quantitative annual impairment assessment for the indefinite lived trade names as of October 1, 2022, 2021 and 2020. In performing these assessments, the Company determined the estimated fair value of the trade name exceeded the carrying value and accordingly, no impairment was indicated. An impairment charge would be recorded if the carrying value of the trade name exceeds the estimated fair value at the date of assessment. Refer to Note 3 for the intangible assets acquired through the Mohawk and Trilogy acquisitions during 2022 and 2021, respectively.

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements - (Continued)**

**(Dollars in thousands, except where otherwise indicated)**

Intangible assets at December 31, 2022 and 2021 consisted of the following:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2022** | **2022** | **2022** | **2021** | **2021** | **2021** |
|  | **Weighted Average<br>Remaining Useful<br>Life (years)** | **Gross** | **Accumulated<br>Amortization** | **Net** | **Gross** | **Accumulated<br>Amortization** | **Net** |
| Trade names - indefinite lived |  | $9782 | $— | $9782 | $9782 | $— | $9782 |
| Trade names | 7.0 | 10267 | (2142) | 8125 | 8267 | (1035) | 7232 |
| Customer relationships | 13.0 | 75110 | (45621) | 29489 | 70794 | (44221) | 26573 |
| Technology | 1.6 | 24980 | (21441) | 3539 | 24980 | (19169) | 5811 |
| Non-competition agreements | 2.7 | 1510 | (693) | 817 | 1200 | (417) | 783 |
| Patents |  | 11730 | (11730) |  | 11730 | (11730) |  |
|  |  | $133379 | $(81627) | $51752 | $126753 | $(76572) | $50181 |

---

Intangible amortization expense was $6.2 million, $5.2 million and $6.3 million in 2022, 2021 and 2020, respectively. Estimated annual amortization expense for intangible assets with finite lives for the next five years is: $6.6 million in 2023; $5.4 million in 2024; $3.9 million in 2025; $3.2 million in 2026 and $2.9 million in 2027.

**<u>5. Net Income Per Common Share</u>**

Net income per common share, as shown on the accompanying Consolidated Statements of Operations, is determined on the basis of the weighted average number of common shares outstanding during the periods as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2022** | **2021** | **2020** |
| Weighted average common shares outstanding basic | 36411389 | 36138571 | 35785798 |
| Dilutive effect of stock options and restricted stock | 379450 | 220398 | 130832 |
| Weighted average common shares outstanding diluted | 36790839 | 36358969 | 35916630 |

---

Options to purchase 114,540, 26,814 and 462,332 shares of common stock that were outstanding at December 31, 2022, 2021 and 2020, respectively, were not included in the computation of diluted earnings per share as the exercise prices of these options was greater than the average market price of common shares, and were therefore anti-dilutive.

**<u>6. Restructuring</u>**

In March 2019, the Company committed to implementing a restructuring plan involving its Ameri-Kart Corp. subsidiary ("Ameri-Kart"), a rotational molding business within the Material Handling Segment. The Company is consolidating certain manufacturing operations into a new facility in Bristol, Indiana (the "Ameri-Kart Plan"). In December 2019, as amended in March 2021, Ameri-Kart entered into a lease agreement for a newly constructed manufacturing and distribution facility in Bristol, Indiana. The building became substantially complete in March 2021 as defined in the lease agreement, and the 15-year finance lease of the new Bristol facility commenced. In connection with the lease agreement, Ameri-Kart agreed to sell its original Bristol facility and lease it back for a period of 5 years. During the second quarter of 2021, the sale of the original facility for net proceeds of $2.8 million was completed, which resulted in a gain of $1.0 million, and the lease back commenced. As of December 31, 2022 the new Bristol facility is in service. In the first half of 2023, the original facility is planned to be closed. Remaining costs to complete this consolidation are expected to be approximately $3.4 million, including approximately $1.0 million in 2023 related to severance and remaining equipment moves and $2.4 million to be incurred through 2026 related to remaining lease and maintenance costs for the idled facility.

The Company incurred $0.7 million of restructuring charges during the year ended December 31, 2022, which were recorded within Cost of sales and $0.3 million related to loss on disposal of fixed assets during the year ended December 31, 2022. The accrual for unpaid restructuring expenses at December 31, 2021 was $0.5 million and no restructuring charges were accrued at December 31, 2022. The Company incurred $0.9 million of restructuring charges classified as Cost of sales during the year ended December 31, 2021, including $0.1 million of non-cash inventory write-offs. No restructuring charges were incurred during the year ended December 31, 2020.

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements - (Continued)**

**(Dollars in thousands, except where otherwise indicated)**

**<u>7. Other Liabilities</u>**

The balance of Other current liabilities is comprised of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| Customer deposits and accrued rebates | $10607 | $5194 |
| Dividends payable | 5722 | 5441 |
| Accrued litigation, claims and professional fees | 596 | 777 |
| Current portion of environmental reserves | 3284 | 1429 |
| Other accrued expenses | 6171 | 6787 |
|  | $26380 | $19628 |

---

The balance of Other liabilities (long-term) is comprised of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| Environmental reserves | $13078 | $8298 |
| Supplemental executive retirement plan liability | 824 | 1176 |
| Pension liability | 184 | 421 |
| Other long-term liabilities | 1184 | 3191 |
|  | $15270 | $13086 |

---

**<u>8. Stock Compensation</u>**

The Company's Amended and Restated 2017 Incentive Stock Plan (the "2017 Plan") authorizes the Compensation and Management Development Committee of the Board of Directors ("Compensation Committee") to issue up to 5,126,950 shares of various stock awards including stock options, performance stock units, restricted stock units and other forms of equity-based awards to key employees and directors. No new awards were permitted to be issued under the 2017 Plan after April 29, 2021. Options granted and outstanding vest over the requisite service period and expire ten years from the date of grant.

The Company's 2021 Long-Term Incentive Plan (the "2021 Plan") was adopted by the Board of Directors on March 4, 2021, amended by the Board of Directors on April 20, 2021, and approved by shareholders in the annual shareholder meeting on April 29, 2021. The 2021 Plan authorizes the Compensation Committee to issue up to 2,000,000 additional various stock awards including stock options, performance stock units, restricted stock units and other forms of equity-based awards.

Stock compensation expense was approximately $7.4 million, $3.2 million and $3.5 million for the years ended December 31, 2022, 2021 and 2020, respectively, and are included in Selling, general and administrative expenses. Total unrecognized compensation cost related to non-vested share-based compensation arrangements at December 31, 2022 was approximately $8.6 million, which will be recognized over the next three years, as such compensation is earned.

There were no options granted in 2022, 2021 and 2020. Options exercised in 2022, 2021 and 2020 were as follows:

---

| | | |
|:---|:---|:---|
| **Year** | **Options Exercised** | **Exercised<br>Price** |
| 2022 | 83102 | $12.96 to $21.30 |
| 2021 | 192504 | $11.62 to $21.30 |
| 2020 | 97779 | $10.10 to $18.69 |

---

In addition, options totaling 588, 30,094 and 81,944 expired or were forfeited during the years ended December 31, 2022, 2021 and 2020, respectively.

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements - (Continued)**

**(Dollars in thousands, except where otherwise indicated)**

Options outstanding and exercisable at December 31, 2022, 2021 and 2020 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Year** | **Outstanding** | **Range of Exercise<br>Prices** | **Exercisable** | **Weighted Average<br>Exercise Price** |
| 2022 | 224882 | $11.62 to $21.30 | 224882 | $18.82 |
| 2021 | 308572 | $11.62 to $21.30 | 297295 | $18.64 |
| 2020 | 531170 | $11.62 to $21.30 | 460341 | $17.94 |

---

The following table provides a summary of stock option activity for the period ended December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Average<br>Exercise<br>Price** | **Weighted<br>Average<br>Life (in Years)** |
| Outstanding at December 31, 2021 | 308572 | $18.64 |  |
| &nbsp;&nbsp;&nbsp;Options granted |  |  |  |
| &nbsp;&nbsp;&nbsp;Options exercised | (83102) | 18.14 |  |
| &nbsp;&nbsp;&nbsp;Canceled or forfeited | (588) | 18.58 |  |
| &nbsp;&nbsp;&nbsp;Expired |  |  |  |
| Outstanding at December 31, 2022 | 224882 | 18.82 | 2.60 |
| Exercisable at December 31, 2022 | 224882 | $18.82 | 2.60 |

---

The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. The intrinsic value of stock options exercised in 2022, 2021 and 2020 was $0.3 million, $1.0 million and $0.5 million, respectively. The intrinsic value of stock options outstanding at December 31, 2022 was $0.8 million.

The following table provides a summary of restricted stock units, including performance-based restricted stock units, and restricted stock activity for the year ended December 31, 2022:

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Average<br>Grant-Date<br>Fair Value** |
| Unvested shares at December 31, 2021 | 500852 |  |
| &nbsp;&nbsp;&nbsp;Granted | 437900 | $19.70 |
| &nbsp;&nbsp;&nbsp;Vested | (111644) | $18.09 |
| &nbsp;&nbsp;&nbsp;Canceled or forfeited | (121374) | $18.39 |
| Unvested shares at December 31, 2022 | 705734 |  |

---

Restricted stock units are rights to receive shares of common stock, subject to forfeiture and other restrictions, which vest over a one or three year period. Restricted stock units are considered to be non-vested shares under the accounting guidance for share-based payment and are not reflected as issued and outstanding shares until the restrictions lapse. At that time, the shares are released to the grantee and the Company records the issuance of the shares. At December 31, 2022, restricted stock awards had vesting periods through December 2025. Included in the December 31, 2022 unvested shares are 444,397 performance-based restricted stock units.

**<u>9. Contingencies</u>**

The Company is a defendant in various lawsuits and a party to various other legal proceedings arising in the ordinary course of business, some of which are covered in whole or in part by insurance. When a loss arising from these matters is probable and can reasonably be estimated, the most likely amount of the estimated probable loss is recorded, or if a range of probable loss can be estimated and no amount within the range is a better estimate than any other amount, the minimum amount in the range is recorded. As additional information becomes available, any potential liability related to these matters is assessed and the estimates are revised, if necessary.

Based on current available information, management believes that the ultimate outcome of these matters, including those described below, will not have a material adverse effect on our financial position, cash flows or overall trends in our results of operations. However,

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements - (Continued)**

**(Dollars in thousands, except where otherwise indicated)**

these matters are subject to inherent uncertainties, and unfavorable rulings could occur. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on the financial position and results of operations of the period in which the ruling occurs, or in future periods.

<u>New Idria Mercury Mine</u>

In September 2015, the U.S. Environmental Protection Agency ("EPA") informed a subsidiary of the Company, Buckhorn, Inc. ("Buckhorn") via a notice letter and related documents (the "Notice Letter") that it considers Buckhorn to be a potentially responsible party ("PRP") in connection with the New Idria Mercury Mine site ("New Idria Mine"). New Idria Mining & Chemical Company ("NIMCC"), which owned and/or operated the New Idria Mine through 1976, was merged into Buckhorn Metal Products Inc. in 1981, which was subsequently acquired by Myers Industries, Inc. in 1987. As a result of the EPA Notice Letter, Buckhorn and the Company engaged in negotiations with the EPA with respect to a draft Administrative Order of Consent ("AOC") proposed by the EPA for the Remedial Investigation/Feasibility Study ("RI/FS") to determine the extent of remediation necessary and the screening of alternatives.

During the fourth quarter of 2018, Buckhorn and the EPA finalized the AOC and related Statement of Work ("SOW") with regards to the New Idria Mine. The AOC is effective as of November 27, 2018, the date that it was executed by the EPA. The AOC and accompanying SOW document the terms, conditions and procedures for Buckhorn's performance of the RI/FS. In addition, the AOC required $2 million of financial assurance to be provided to the EPA to secure Buckhorn's performance during the estimated life of the RI/FS. In January 2019, a letter of credit was provided to satisfy this assurance requirement. The AOC also includes provisions for payment of the EPA's costs of oversight of the RI/FS. A draft work plan for the RI/FS, in accordance with the AOC and related SOW, was submitted to the EPA for review and approval in July 2019. Upon preparation of the draft work plan for the RI/FS, Buckhorn received preliminary estimates from its environmental consultants for the cost of the execution of the work plan. In late 2021 and throughout 2022, Buckhorn and the EPA continue to actively discuss the scope of the activities in the work plan, resulting in changes to the estimated costs to perform the work plan from time to time. Cost estimates will continue to be refined as the work plan is finalized and as the activities are performed over a period expected to last several years. In the fourth quarter of 2022, Buckhorn reached an agreement with respect to certain insurance coverage related to defense costs, which is expected to apply to a substantial portion of the estimated remediation investigation costs. As of December 31, 2022, Buckhorn established a receivable related to the expected insurance recovery of these costs totaling $6.0 million, of which $2.8 million is classified in Accounts receivable and $3.2 million is classified in Other (long-term) on the Consolidated Statements of Financial Position.

As part of the Notice Letter in 2015, the EPA also made a claim for approximately $1.6 million in past costs for actions it claims it has taken in connection with the New Idria Mine from 1993 through February 2014 ("Past Costs Claim"). In December 2020, the EPA updated its Past Costs Claim to include costs incurred from March 2014 through June 2020, which it further revised through September 2022 to a total claim of $2.0 million, plus interest. Buckhorn has reached an agreement with the EPA to resolve the past costs claim for $1.9 million with no interest, which Buckhorn expects to pay in the first quarter of 2023.

Since October 2011, when the New Idria Mine was added to the Superfund National Priorities List by the EPA, Buckhorn has recognized $15.5 million of cumulative charges, made cumulative payments of $5.6 million, received insurance recoveries of $2.0 million and recorded $6.0 million of expected insurance recoveries as of December 31, 2022. These costs are comprised primarily of estimates to perform the RI/FS, negotiation of the AOC, identification of possible other PRPs, EPA oversight fees, past cost claims made by the EPA, periodic monitoring, and responses to demands issued by the EPA under the AOC. Expenses (gain), net of expected insurance recoveries, of $(1.6) million, $0.7 million, and $0.5 million were recorded in the years ended December 31, 2022, 2021 and 2020, respectively, in Selling, general and administrative expenses. As of December 31, 2022, Buckhorn has a total reserve of $11.9 million related to the New Idria Mine, of which $3.0 million is classified in Other current liabilities and $8.9 million is classified in Other liabilities (long-term) on the Consolidated Statements of Financial Position.

It is possible that adjustments to the aforementioned reserves will be necessary as new information is obtained, including after finalization and EPA approval of the work plan for the RI/FS. Estimates of Buckhorn's liability are based on current facts, laws, regulations and technology. Estimates of Buckhorn's environmental liabilities are further subject to uncertainties regarding the nature and extent of site contamination, the range of remediation alternatives available, evolving remediation standards, imprecise engineering evaluation and cost estimates, the extent of remedial actions that may be required, the extent of oversight by the EPA and the number and financial condition of other PRPs that may be named, as well as the extent of their responsibility for the remediation.

Given the circumstances referred to above, including the fact that the final remediation strategy has not yet been determined, Buckhorn has not accrued for remediation costs in connection with this site as it is unable to estimate the range of a reasonably possible liability for remediation costs.

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements - (Continued)**

**(Dollars in thousands, except where otherwise indicated)**

<u>New Almaden Mine</u>

A number of parties, including the Company and its subsidiary, Buckhorn (as successor to NIMCC), were alleged by trustee agencies of the United States and the State of California to be responsible for natural resource damages due to environmental contamination of areas comprising the historical New Almaden mercury mines located in the Guadalupe River Watershed region in Santa Clara County, California ("County"). In 2005, Buckhorn and the Company, without admitting liability or chain of ownership of NIMCC, resolved the trustees' claim against them through a consent decree that required them to contribute financially to the implementation by the County of an environmentally beneficial project within the impacted area. Buckhorn and the Company negotiated an agreement with the County ("Cost Sharing Agreement"), whereby Buckhorn and the Company agreed to reimburse one-half of the County's costs of implementing the project. A detailed estimate was received from the County in 2016, and estimated costs for implementing the project to range between $3.3 million and $4.4 million. In 2022, the County informed the Company that it may begin implementation of the project in 2023 and that costs were expected to be higher. In January 2023, the County informed Buckhorn that the project will commence in 2023 and that it had accepted a bid to complete the project for approximately $9.0 million. The Company and Buckhorn intend to vigorously challenge, under the terms of the Cost Sharing Agreement, their responsibility to share in the entirety of the project cost increases. In the year ended December 31, 2022, expense of $3.0 million was recorded in Selling, general and administrative expenses based on the updated information received from the County. No costs were incurred related to New Almaden in the years ended December 31, 2021 and 2020. As of December 31, 2022, Buckhorn has a total reserve of $4.5 million related to the New Almaden Mine, of which $0.3 million is classified in Other current liabilities and $4.2 million is classified in Other liabilities (long-term) on the Consolidated Statements of Financial Position.

As work on the project occurs and dispute resolution proceeds, it is possible that adjustments to the aforementioned reserves will be necessary to reflect new information. In addition, the Company may have claims against and defenses to claims by the County under the 2005 agreement that could reduce or offset its obligation for reimbursement of some of these potential additional costs. With the assistance of environmental consultants, the Company will closely monitor this matter and will continue to assess its reserves as additional information becomes available.

<u>Patent Infringement</u>

On December 11, 2018, No Spill Inc. filed suit against Scepter Manufacturing LLC in the United States District Court for the District of Kansas asserting infringement of two patents, breach of contract, and trade dress claims in relation to plastic gasoline containers Scepter manufactures and sells in the United States. Scepter Canada, Inc. was later added in a second amended complaint. A claim construction hearing was held on May 13, 2021 and the District Court held on June 23, 2021, that the claims of the patents were definite. On December 28, 2019, Scepter Canada, Inc. had filed petitions with the District Court for inter partes review ("IPR") of the two patents asserted by No Spill, Inc. The U.S. Patent & Trademark Office ("USPTO") instituted one IPR and denied the other. With respect to the instituted IPR, the USPTO's Patent Trial and Appeal Board issued a final decision on July 2, 2021, finding the claims of the patent valid, which does not affect Scepter's primary defenses in the matter.

On June 28, 2021, the Scepter companies filed with the District Court a motion for leave to add new parties and assert counterclaims alleging antitrust related violations of certain provisions of the Sherman Act and Clayton Act. The Court granted the motion and the Scepter companies filed a Second Amended Complaint on October 1, 2021. On November 15, 2021, No Spill and the new counterclaim defendants filed a Motion to Dismiss the counterclaims, which was granted by the District Court on April 6, 2022. On January 6, 2022, the District Court bifurcated the patent infringement and invalidity issues from the antitrust and other issues in the case. Initial discovery has concluded and dispositive motions have been filed in the matter. The trial on patent infringement and invalidity is scheduled for March 2023.

The Scepter companies intend to continue defending themselves vigorously in this matter. Based on available information, an unfavorable outcome is not considered to be probable, and any possible losses from an adverse outcome are not reasonably estimable, so no contingent loss has been recorded. Due to the inherent uncertainties of litigation, the Company cannot accurately predict whether any unfavorable outcome of this matter could have a material impact on its results of operations, financial condition, or cash flows.

<u>Other Matters</u>

On February 14, 2023, a lawsuit was filed by Nan Morgan McCartney in the Circuit Court of Escambia County, Florida against the Company, Scepter US Holding Company, Scepter Manufacturing, LLC, Scepter Canada Inc., Walmart Inc., and Wal-Mart Stores East, LP. The complaint seeks compensatory damages and court costs for harm caused to Ms. McCartney allegedly arising from use of a 5-gallon portable fuel container manufactured by a Scepter company and alleges amounts in controversy in excess of $30 thousand exclusive of costs. The Company has not been served the complaint as of the date of this filing and cannot assess with any meaningful probability of outcome or damages.

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements - (Continued)**

**(Dollars in thousands, except where otherwise indicated)**

**<u>10. Long-Term Debt and Loan Agreements</u>**

Long-term debt at December 31, 2022 and 2021 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| Loan Agreement | $56000 | $53000 |
| 5.25% Senior Unsecured Notes due January 15, 2024 | 11000 | 11000 |
| 5.30% Senior Unsecured Notes due January 15, 2024 | 15000 | 15000 |
| 5.45% Senior Unsecured Notes due January 15, 2026 | 12000 | 12000 |
|  | 94000 | 91000 |
| Less unamortized deferred financing costs | 38 | 55 |
|  | 93962 | 90945 |
| Less current portion long-term debt |  |  |
| Long-term debt | $93962 | $90945 |

---

On September 29, 2022, the Company entered into a Seventh Amended and Restated Loan Agreement (the "Seventh Amendment"), which amended the Sixth Amended and Restated Loan Agreement (the "Sixth Amendment"), dated March 12, 2021. The Seventh Amendment, among other things, extended the maturity date to September 2027 from March 2024. The Seventh Amendment did not change the senior revolving credit facility's $250 million borrowing limit, which includes a letter of credit subfacility and swingline subfacility, or the outstanding letters of credit. In connection with the Seventh Amendment, the Company incurred $0.9 million of deferred financing fees, which are included in Other Assets (long-term), which are expected to be amortized to Interest expense over the term of the Loan Agreement (defined below).

In March 2021, the Company entered into the Sixth Amendment, which amended the Fifth Amended and Restated Loan Agreement (collectively with the Sixth and Seventh Amendments, the "Loan Agreement") dated March 2017. The Sixth Amendment increased the senior revolving credit facility's borrowing limit to $250 million from $200 million, extended the maturity date to March 2024 from March 2022, and increased flexibility of the financial and other covenants and provisions. In connection with the Sixth Amendment, the Company incurred $1.1 million of deferred financing fees, which are included in Other Assets (long-term) and being amortized to Interest expense over the term of the Loan Agreement.

As of December 31, 2022, the Company had $188.3 million available under the Loan Agreement, which is available for the ongoing working capital requirements of the Company and its subsidiaries and for general corporate purposes. The Company had $5.7 million of letters of credit issued related to insurance and other contracts requiring financial assurance in the ordinary course of business. Borrowings under the Loan Agreement bear interest at the Term SOFR, RFR, EURIBOR and CDOR-based borrowing rates. Amounts borrowed under the credit facility are secured by pledges of stock of certain of the Company's foreign subsidiaries and guaranties of certain of its domestic subsidiaries.

The Company also holds Senior Unsecured Notes with face values ranging from $11 million to $15 million, interest rates ranging from 5.25% to 5.45%, payable semiannually, and maturing between January 2024 and January 2026. At December 31, 2022, $38.0 million of the Notes were outstanding. In January 2021, the Company repaid the $40.0 million note upon maturity with a combination of cash and proceeds under the Loan Agreement.

Amortization expense of the deferred financing costs was $0.4 million, $0.5 million, and $0.4 million for the years ended December 31, 2022, 2021 and 2020, respectively, and is included in Interest expense.

The weighted average interest rate on borrowings under the Company's loan agreements were 4.87% for 2022, 4.56% for 2021, and 6.28% for 2020, which includes a quarterly facility fee on the used and unused portion, as well as amortization of deferred financing costs.

As of December 31, 2022, the Company was in compliance with all of its debt covenants associated with its Loan Agreement and Notes. The most restrictive financial covenants for all of the Company's debt are an interest coverage ratio (defined as earnings before interest, taxes, depreciation and amortization, as adjusted, divided by interest expense) and a leverage ratio (defined as total debt divided by

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements - (Continued)**

**(Dollars in thousands, except where otherwise indicated)**

earnings before interest, taxes, depreciation and amortization, as adjusted). The ratios as of December 31, 2022 are shown in the following table:

---

| | | | |
|:---|:---|:---|:---|
|  | **Required Level** | **Actual Level** | **Actual Level** |
| Interest Coverage Ratio | 3.00 to 1 (minimum) |  | 20.34 |
| Leverage Ratio | 3.25 to 1 (maximum) |  | 0.94 |

---

**<u>11. Income Taxes</u>**

The effective tax rate from continuing operations was 22.9%, 25.6% and 24.7% in 2022, 2021 and 2020, respectively. A reconciliation of the federal statutory income tax rate to the Company's effective tax rate is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Percent of Income before<br>Income Taxes** | **Percent of Income before<br>Income Taxes** | **Percent of Income before<br>Income Taxes** |
|  | **2022** | **2021** | **2020** |
| Statutory federal income tax rate | 21.0% | 21.0% | 21.0% |
| State income taxes - net of federal tax benefit | 2.0 | 3.1 | 3.3 |
| Foreign tax rate differential | 0.6 | 1.3 | 0.3 |
| Non-deductible expenses | 0.4 | 0.4 | 0.7 |
| Tax carryforward expiration | 2.5 |  |  |
| Changes in unrecognized tax benefits | (1.0) |  | (0.8) |
| Valuation allowances | (2.3) |  |  |
| Other | (0.3) | (0.2) | 0.2 |
| &nbsp;&nbsp;&nbsp;Effective tax rate for the year | 22.9% | 25.6% | 24.7% |

---

Income before income taxes was attributable to the following sources:

---

| | | | |
|:---|:---|:---|:---|
|  | **2022** | **2021** | **2020** |
| United States | $66646 | $36203 | $45070 |
| Foreign | 11564 | 8890 | 3792 |
| Totals | $78210 | $45093 | $48862 |

---

Income tax expense consisted of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2022** | **2021** | **2020** |
| Current: |  |  |  |
| Federal | $11583 | $4901 | $957 |
| State and local | 1739 | 1439 | 1014 |
| Foreign | 2549 | 2389 | 1390 |
| &nbsp;&nbsp;Total current provision | 15871 | 8729 | 3361 |
| Deferred: |  |  |  |
| Federal | 1675 | 2534 | 8702 |
| State and local | 230 | 345 | 356 |
| Foreign | 167 | (53) | (326) |
| &nbsp;&nbsp;Total deferred provision | 2072 | 2826 | 8732 |
| &nbsp;&nbsp;Provision for income taxes | $17943 | $11555 | $12093 |

---

During 2018, the Company recorded a provision and related deferred tax liability of $0.6 million related primarily to the earnings of the Company's subsidiary in Guatemala, which were deemed by management to no longer be permanently reinvested. The earnings and profits for all foreign subsidiaries had been previously included in the calculation of the one-time deemed repatriation transition tax, and thus, should there be a repatriation of earnings from any other foreign subsidiaries in future periods, the Company expects to be subject to only foreign withholding tax. Management does not currently anticipate a repatriation of earnings from any other foreign subsidiaries, except as provided above, as these earnings are deemed to be permanently reinvested.

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements - (Continued)**

**(Dollars in thousands, except where otherwise indicated)**

Significant components of the Company's deferred taxes as of December 31, 2022 and 2021 are as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Deferred income tax assets |  |  |
| &nbsp;&nbsp;&nbsp;Compensation accruals | $2449 | $2387 |
| &nbsp;&nbsp;&nbsp;Inventory valuation | 1553 | 2008 |
| &nbsp;&nbsp;&nbsp;Allowance for uncollectible accounts | 510 | 489 |
| &nbsp;&nbsp;&nbsp;Non-deductible accruals | 4137 | 3538 |
| &nbsp;&nbsp;&nbsp;Operating lease liability | 5932 | 6220 |
| &nbsp;&nbsp;&nbsp;Finance lease liability | 1981 | 2087 |
| &nbsp;&nbsp;&nbsp;Other deductible non-goodwill intangibles | 5369 | 5291 |
| &nbsp;&nbsp;&nbsp;State deferred taxes | 32 | 176 |
| &nbsp;&nbsp;&nbsp;Capital loss carryforwards | 127 | 1982 |
| &nbsp;&nbsp;&nbsp;Net operating loss carryforwards | 21 | 30 |
|  | 22111 | 24208 |
| &nbsp;&nbsp;&nbsp;Valuation allowance | (127) | (1982) |
|  | 21984 | 22226 |
| Deferred income tax liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment | 10508 | 8983 |
| &nbsp;&nbsp;&nbsp;Goodwill and indefinite-lived intangibles | 9438 | 8755 |
| &nbsp;&nbsp;&nbsp;Right of use asset - operating leases | 5832 | 6150 |
| &nbsp;&nbsp;&nbsp;Finance lease assets | 1906 | 2051 |
| &nbsp;&nbsp;&nbsp;Other | 1679 | 1622 |
|  | 29363 | 27561 |
| Net deferred income tax liability | $(7379) | $(5335) |

---

During 2017, the Company sold its investments in certain Brazilian subsidiaries. In connection with this divestiture, the Company incurred a capital loss of $9.5 million on its investment in the Myers do Brazil business and recorded a deferred tax asset of $2.0 million for this capital loss carryforward. A full valuation allowance of $2.0 million was recorded against this deferred tax asset, as the recovery of this asset was deemed not more likely than not. As of December 31, 2022, the five year capital loss carryforward period expired and, as a result, both the deferred tax asset of $2.0 million and the offsetting valuation allowance were released. In 2022, the Company impaired its investment in a joint venture, as described in Note 1, incurring a capital loss for which a deferred tax asset of $0.1 million was recorded. As of December 31, 2022 a valuation allowance of $0.1 million was recorded against this capital loss deferred tax asset, as the recovery is not more likely than not.

The following table summarizes the activity related to the Company's unrecognized tax benefits:

---

| | | | |
|:---|:---|:---|:---|
|  | **2022** | **2021** | **2020** |
| Balance at January 1 | $774 | $774 | $1098 |
| &nbsp;&nbsp;&nbsp;Increases related to previous year tax positions |  |  | 59 |
| &nbsp;&nbsp;&nbsp;Reductions due to lapse of applicable statute of limitations | (774) |  | (383) |
| Balance at December 31 | $— | $774 | $774 |

---

The total amount of gross unrecognized tax benefits that would reduce the Company's effective tax rate was $0.0 million, $0.8 million and $0.8 million at December 31, 2022, 2021 and 2020, respectively.

The Company and its subsidiaries file U.S. Federal, state and local, and non-U.S. income tax returns. As of December 31, 2022, the Company is no longer subject to U.S. Federal examinations by tax authorities for tax years before 2019. In addition, the Company is subject to non-U.S. income tax examinations for tax years of 2017 through 2021.

**<u>12. Retirement Plans</u>**

The Company and certain of its subsidiaries have pension and profit sharing plans covering substantially all of their employees. The Company's defined benefit pension plan, The Pension Agreement between Akro-Mils and United Steelworkers of America Local No. 1761-02, (the "Plan") provides benefits primarily based upon a fixed amount for each year of service. The Plan was frozen in 2007, and no benefits for service have accumulated after this date.

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements - (Continued)**

**(Dollars in thousands, except where otherwise indicated)**

Net periodic pension cost of the Plan for the years ended December 31, 2022, 2021 and 2020 was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2022** | **2021** | **2020** |
| Interest cost | $162 | $151 | $191 |
| Expected return on assets | (156) | (193) | (206) |
| Amortization of net loss | 67 | 85 | 81 |
| &nbsp;&nbsp;&nbsp;Net periodic pension cost | $73 | $43 | $66 |

---

The reconciliation of changes in the Plan's projected benefit obligations and assets are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| Change in benefit obligation: |  |  |
| &nbsp;&nbsp;&nbsp;Projected benefit obligation at beginning of year | $6298 | $6749 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest cost | 162 | 151 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Actuarial (gain) loss | (1347) | (258) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Benefits paid | (330) | (344) |
| &nbsp;&nbsp;&nbsp;Projected benefit obligation at end of year | $4783 | $6298 |
| Change in plan assets: |  |  |
| &nbsp;&nbsp;&nbsp;Fair value of plan assets at beginning of year | $5877 | $5808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Actual return on plan assets | (1148) | 294 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Company contributions | 200 | 119 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Benefits paid | (330) | (344) |
| &nbsp;&nbsp;&nbsp;Fair value of plan assets at end of year | $4599 | $5877 |
| Funded status | $(184) | $(421) |

---

The Plan's funded status shown above is included in Other liabilities (long term) in the Company's Consolidated Statements of Financial Position at December 31, 2022 and 2021. The Company expects to make voluntary contributions to the plan of approximately $0.2 million in 2023. Because the Plan has been frozen, the accumulated benefit obligation is equal to the projected benefit obligation. The actuarial gain incurred during the years ended December 31, 2022 and 2021 was due to an increase in the discount rate for benefit obligations.

The assumptions used to determine the Plan's net periodic benefit cost and benefit obligations are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2020** |
| Discount rate for net periodic pension cost | 2.65% | 2.30% | 3.10% |
| Discount rate for benefit obligations | 5.05% | 2.65% | 2.30% |
| Expected long-term return of plan assets | 4.50% | 5.25% | 6.25% |

---

The expected long-term rate of return is based on the long-term expected returns for the investment mix consistent with the Plan's current asset allocation and investment policy. The Plan's asset allocation and investment policy increases the allocation of fixed income investments that are managed to match the duration of the underlying pension liability as the funding status improves. The assumed discount rates represent long-term high-quality corporate bond rates commensurate with the liability duration of the Plan.

The fair value of Plan assets at December 31, 2022 and 2021 consist of mutual funds valued at $1.0 million and $2.0 million, respectively, and pooled separate accounts valued at $3.6 million and $3.8 million. Fair values of all Plan assets are categorized as Level 1. Mutual fund values are determined based on period end, closing quoted prices in active markets. The pooled separate accounts are measured at net asset value, which is made readily available to investors. Each of the pooled separate accounts invest in multiple fixed securities and provide for daily redemptions by the plan with no advance notice requirements, and have redemption prices that are also determined by the fund's net asset value per unit with no redemption fees.

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements - (Continued)**

**(Dollars in thousands, except where otherwise indicated)**

The weighted average asset allocations for the Plan at December 31, 2022 and 2021 were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| U.S. equities securities | 22% | 35% |
| U.S. debt securities | 78% | 65% |
|  | 100% | 100% |

---

Benefit payments projected for the Plan are as follows:

---

| | |
|:---|:---|
| 2023 | $360 |
| 2024 | 360 |
| 2025 | 360 |
| 2026 | 370 |
| 2027 | 370 |
| 2028-2032 | 1770 |

---

The Company maintains defined contribution plans for its U.S.-based employees, who are not covered under defined benefit plans and have met eligibility service requirements. The Company recognized expense related to the 401(k) employer matching contribution in the amount of, $4.2 million, $3.4 million and $2.7 million in 2022, 2021 and 2020, respectively.

In addition, the Company has a Supplemental Executive Retirement Plan ("SERP") to provide certain former senior executives with retirement benefits in addition to amounts payable under the 401(k) plan. Net expense (benefit) related to the SERP was not meaningful for the years ended December 2022, 2021 and 2020, respectively. The SERP liability was based on the discounted present value of expected future benefit payments using a discount rate of 5.1% at December 31, 2022 and 2.7% at December 31, 2021. The SERP liability was approximately $1.2 million and $1.5 million at December 31, 2022 and 2021, respectively, and is included in Accrued employee compensation and other liabilities (long term) on the accompanying Consolidated Statements of Financial Position. The SERP is unfunded.

**<u>13. Leases</u>**

The Company determines if an arrangement is a lease at inception. The Company has leases for manufacturing facilities, distribution centers, warehouses, office space and equipment, with remaining lease terms of one to thirteen years. Certain of these leases include options to extend the lease for up to five years, and some include options to terminate the lease early. Leases with an initial term of 12 months or less are not recorded on the Consolidated Statements of Financial Position; the Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. Operating leases with an initial term greater than 12 months are included in Right of use asset – operating leases ("ROU assets"), Operating lease liability – short term, and Operating lease liability – long term and finance leases are included in Property, plant and equipment, Finance lease liability – short term, and Finance lease liability – long term in the Consolidated Statements of Financial Position.

The ROU assets represent the right to use an underlying asset for the lease term and the lease liabilities represent the obligation to make lease payments. ROU assets and lease liabilities are recognized at commencement date based on the present value of the lease payments over the lease term. When leases do not provide an implicit rate, the Company's incremental borrowing rate is used, which is then applied at the portfolio level, based on the information available at commencement date in determining the present value of lease payments. The Company has also elected not to separate lease and non-lease components. The lease terms include options to extend or terminate the lease when it is reasonably certain the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term.

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements - (Continued)**

**(Dollars in thousands, except where otherwise indicated)**

Amounts included in the Consolidated Statements of Financial Position related to leases were:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31,** | **December 31,** |
|  | **Classification** | **2022** | **2021** |
| **Assets:** |  |  |  |
| Operating lease assets | Right of use asset - operating leases | $28908 | $29285 |
| Finance lease assets | Property, plant and equipment, net | 9075 | 9765 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total lease assets** |  | $37983 | $39050 |
| **Liabilities:** |  |  |  |
| Current | Operating lease liability - short-term | $6177 | $5341 |
| Long-term | Operating lease liability - long-term | 22786 | 23815 |
| &nbsp;&nbsp;&nbsp;**Total operating lease liabilities** |  | 28963 | 29156 |
| Current | Finance lease liability - short-term | 518 | 500 |
| Long-term | Finance lease liability - long-term | 8919 | 9437 |
| &nbsp;&nbsp;&nbsp;**Total finance lease liabilities** |  | 9437 | 9937 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total lease liabilities** |  | $38400 | $39093 |

---

The components of lease expense include:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| **Lease Cost** | **Classification** | **2022** | **2021** | **2020** |
| Operating lease cost (1) | Cost of sales | $5673 | $5095 | $2008 |
| Operating lease cost (1) | Selling, general and administrative expenses | 2884 | 2328 | 1729 |
| Finance lease cost |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Amortization expense | Cost of sales | 689 | 574 |  |
| &nbsp;&nbsp;&nbsp;Interest expense on lease liabilities | Interest expense, net | 340 | 298 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total lease cost |  | $9586 | $8295 | $3737 |

---

<sup>(1)</sup> Includes short-term leases and variable lease costs, which are immaterial

Supplemental cash flow information related to leases was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| **Supplemental Cash Flow Information** | **2022** | **2021** | **2020** |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating cash flows from operating leases | $6941 | $5952 | $2683 |
| &nbsp;&nbsp;&nbsp;Operating cash flows from finance leases | $340 | $298 | $— |
| &nbsp;&nbsp;&nbsp;Financing cash flows from finance leases | $500 | $402 | $— |
| Right-of-use assets obtained in exchange for new lease liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating leases | $4371 | $7438 | $1116 |
| &nbsp;&nbsp;&nbsp;Finance leases | $— | $10339 | $— |

---

---

| | | |
|:---|:---|:---|
| **Lease Term and Discount Rate** | **December 31, 2022** | **December 31, 2021** |
| Weighted-average remaining lease term (years): |  |  |
| &nbsp;&nbsp;&nbsp;Operating leases | 6.44 | 7.27 |
| &nbsp;&nbsp;&nbsp;Finance leases | 13.17 | 14.17 |
| Weighted-average discount rate: |  |  |
| &nbsp;&nbsp;&nbsp;Operating leases | 3.6% | 3.4% |
| &nbsp;&nbsp;&nbsp;Finance leases | 3.5% | 3.5% |

---

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements - (Continued)**

**(Dollars in thousands, except where otherwise indicated)**

---

| | | | |
|:---|:---|:---|:---|
| **Maturity of Lease Liabilities - As of December 31, 2022** | **Operating Leases** | **Finance Leases** | **Total** |
| 2023 | $6991 | $840 | $7831 |
| 2024 | 5375 | 861 | 6236 |
| 2025 | 4522 | 865 | 5387 |
| 2026 | 3885 | 865 | 4750 |
| 2027 | 3235 | 887 | 4122 |
| After 2027 | 8361 | 7521 | 15882 |
| &nbsp;&nbsp;&nbsp;Total lease payments | 32369 | 11839 | 44208 |
| Less: interest | (3406) | (2402) | (5808) |
| &nbsp;&nbsp;&nbsp;Present value of lease liabilities | $28963 | $9437 | $38400 |

---

In March 2021, a 15-year finance lease for a new manufacturing and distribution facility in Bristol, Indiana commenced. As described in Note 6, this lease agreement was in connection with the Ameri-Kart Plan, which includes facility consolidation for this business within the Material Handling Segment.

The Company has operating leases for four facilities within the Material Handling Segment that are with a related party. Total right of use assets related to these related party leases were $4.0 million and $3.6 million at December 31, 2022 and 2021, respectively. Total operating lease liabilities related to these related party leases were $3.9 million and $3.4 million at December 31, 2022 and 2021, respectively. Total lease expense from these related party leases was $1.8 million, $1.8 million and $0.1 million in the years ended December 31, 2022, 2021 and 2020, respectively.

**<u>14. Segments</u>**

The Company manages its business under two operating segments, Material Handling and Distribution, consistent with the manner in which our Chief Operating Decision Maker ("CODM") evaluates performance and makes resource allocation decisions. None of the reportable segments include operating segments that have been aggregated. These segments contain individual business components that have been combined on the basis of common management, customers, products, production processes and other economic characteristics. Intersegment sales are recorded with a reasonable margin and are eliminated in consolidation.

The Material Handling Segment manufactures a broad selection of durable plastic reusable containers that are used repeatedly during the course of their service life. At the end of their service life, these highly sustainable products can be recovered, recycled, and reprocessed into new products. The Material Handling Segment's products include pallets, small parts bins, bulk shipping containers, storage and organization products, OEM parts, custom plastic products, consumer fuel containers and tanks for water, fuel and waste handling. Products in the Material Handling Segment are primarily injection molded, rotationally molded or blow molded. This segment conducts its primary operations in the United States and Canada. Markets served include industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational vehicles, marine vehicles, healthcare, appliance, bakery, electronics, textiles and consumer, among others. Products are sold both directly to end-users and through distributors. The acquisitions of Trilogy and Elkhart Plastics, described in Note 3, are included in the Material Handling Segment.

The Distribution Segment is engaged in the distribution of equipment, tools, and supplies used for tire servicing and automotive under-vehicle repair and the manufacture of tire repair and retreading products. The product line includes categories such as tire valves and accessories, tire changing and balancing equipment, lifts and alignment equipment, service equipment and tools, and tire repair/retread supplies. The Distribution Segment also manufactures and sells certain traffic markings, including reflective highway marking tape. The Distribution Segment operates domestically through its sales offices and nine regional distribution centers in the United States, and in certain foreign countries through export sales. In addition, the Distribution Segment operates directly in certain foreign markets, principally Central America, through foreign branch operations. Markets served include retail and truck tire dealers, commercial auto and truck fleets, truck stop operations, auto dealers, general service and repair centers, tire re-treaders, and government agencies. The acquisition of Mohawk, described in Note 3, is included in the Distribution Segment.

Total sales from foreign business units were approximately $54.2 million, $48.0 million, and $39.8 million for the years ended December 31, 2022, 2021 and 2020, respectively. Export sales from the Company's U.S. operations were approximately $31.7 million, $29.9 million, and $17.7 million for the years ended December 31, 2022, 2021 and 2020, respectively. Sales made to customers in Canada accounted for approximately 4.3%, 4.6% and 4.8% of total net sales in 2022, 2021 and 2020, respectively. There are no other individual foreign countries for which sales are material. Long-lived assets in foreign countries, primarily in Canada, consisted of property, plant and equipment, and were approximately $10.4 million and $11.3 million at December 31, 2022 and 2021, respectively.

------

**MYERS INDUSTRIES, INC. AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements - (Continued)**

**(Dollars in thousands, except where otherwise indicated)**

---

| | | | |
|:---|:---|:---|:---|
|  | **2022** | **2021** | **2020** |
| **Net Sales** |  |  |  |
| &nbsp;&nbsp;&nbsp;Material Handling | $647619 | $564068 | $343884 |
| &nbsp;&nbsp;&nbsp;Distribution | 251966 | 197427 | 166544 |
| &nbsp;&nbsp;&nbsp;Inter-company sales | (38) | (60) | (59) |
| Total net sales | $899547 | $761435 | $510369 |
| **Operating income** |  |  |  |
| &nbsp;&nbsp;&nbsp;Material Handling (2) | $104079 | $62187 | $55072 |
| &nbsp;&nbsp;&nbsp;Distribution (3) (4) | 15862 | 15428 | 12157 |
| &nbsp;&nbsp;&nbsp;Corporate (1) (4) (5) | (36000) | (28314) | (13679) |
| Total operating income | 83941 | 49301 | 53550 |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (5731) | (4208) | (4688) |
| Income before income taxes | $78210 | $45093 | $48862 |
| **Total Assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;Material Handling | $385722 | $370499 | $292596 |
| &nbsp;&nbsp;&nbsp;Distribution | 119652 | 88757 | 80708 |
| &nbsp;&nbsp;&nbsp;Corporate | 37260 | 25293 | 26711 |
| Total assets | $542634 | $484549 | $400015 |
| **Capital Additions, Net** |  |  |  |
| &nbsp;&nbsp;&nbsp;Material Handling | $22528 | $17173 | $12207 |
| &nbsp;&nbsp;&nbsp;Distribution | 705 | 402 | 931 |
| &nbsp;&nbsp;&nbsp;Corporate | 1059 | 292 | 283 |
| Total capital additions, net | $24292 | $17867 | $13421 |
| **Depreciation and Amortization** |  |  |  |
| &nbsp;&nbsp;&nbsp;Material Handling | $17814 | $17803 | $17834 |
| &nbsp;&nbsp;&nbsp;Distribution | 2889 | 2208 | 2300 |
| &nbsp;&nbsp;&nbsp;Corporate (6) | 954 | 874 | 796 |
| Total depreciation and amortization | $21657 | $20885 | $20930 |

---

<sup>(1)</sup> The Company recognized $1.4 million, $0.7 million and $0.5 million of expense to the estimated environmental reserve, net of expected insurance recoveries in the years ended December 31, 2022, 2021 and 2020, respectively, as described in Note 9. Environmental charges are not included in segment results and are shown with Corporate.

<sup>(2)</sup> In the year ended December 31, 2021, the Company recognized a $1.0 million gain on the sale of a building within the Material Handling Segment as described in Note 6.

<sup>(3)</sup> In the year ended December 31, 2022, the Company recognized a $0.6 million impairment loss on an investment in a legacy joint venture within the Distribution Segment as described in Note 1.

<sup>(4)</sup> In the year ended December 31, 2021, the Company recognized $0.8 million of executive severance, of which $0.5 million was recognized in the Distribution Segment and $0.3 million was recognized in Corporate. This executive severance cost includes $0.5 million of severance and benefits and $0.3 million of charges for acceleration of stock compensation.

<sup>(5)</sup> In the year ended December 31, 2020, the Company recognized an $11.9 million gain related to the sale of the HC notes receivable and the release of a lease guarantee as discussed in Note 1.

<sup>(6)</sup> Corporate depreciation and amortization includes amortization of deferred financing costs of $0.4 million, $0.5 million and $0.4 million in the years ended December 31, 2022, 2021 and 2020, respectively.

------

**ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.**

None.

**ITEM 9A. CONTROLS AND PROCEDURES**

**Evaluation of Disclosure Controls and Procedures**

The Company maintains disclosure controls and procedures, as defined under Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended, that are designed to ensure that information required to be disclosed in the Company's reports under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms and that such information is accumulated and communicated to the Company's management, including its Chief Executive Officer and Interim Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure.

The Company carries out a variety of procedures, under the supervision and with the participation of the Company's management, including the Company's Chief Executive Officer and Interim Chief Financial Officer, to evaluate the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based on the foregoing, the Company's Chief Executive Officer and Interim Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of December 31, 2022.

Management's report on internal control over financial reporting, and the report of the independent registered public accounting firm on internal control over financial reporting are titled "Management's Annual Assessment of and Report on Internal Control Over Financial Reporting" and "Report of Independent Registered Public Accounting Firm," respectively, and are included herein.

**Changes in Internal Control Over Financial Reporting**

There have been no changes in our internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**Management's Annual Assessment of and Report on Internal Control Over Financial Reporting**

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Exchange Act Rule 13a-15(f). The Company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.

Because of its inherent limitation, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Under the supervision and with the participation of management, including the Chief Executive Officer and Interim Chief Financial Officer, the Company conducted an evaluation of the effectiveness of the Company's internal control over financial reporting based on the framework in "Internal Control – Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). Based on this assessment, management concluded that the Company maintained effective internal control over financial reporting as of December 31, 2022.

On May 31, 2022, the Company acquired the assets of Mohawk as described more fully in Note 3 to the consolidated financial statements. Mohawk represented approximately 6% of the Company's consolidated total assets at December 31, 2022 and approximately 4% of the Company's consolidated net sales for the year ended December 31, 2022. As permitted by the Securities and Exchange Commission, management has elected to exclude Mohawk from its assessment of internal control over financial reporting as of December 31, 2022.

------

The effectiveness of the Company's internal control over financial reporting as of December 31, 2022 has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in their report included herein.

---

| | |
|:---|:---|
| **Michael P. McGaugh** | **Monica P. Vinay** |
| President and | Interim Chief Financial Officer |
| Chief Executive Officer |  |

---

------

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and the Board of Directors of Myers Industries, Inc. and Subsidiaries

**Opinion on Internal Control Over Financial Reporting**

We have audited Myers Industries, Inc. and Subsidiaries internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Myers Industries, Inc. and Subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on the COSO criteria.

As indicated in the accompanying Management's Annual Assessment of and Report on Internal Control Over Financial Reporting, management's assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of Mohawk (as defined in Note 3), which is included in the 2022 consolidated financial statements of the Company and constituted 6% of total assets(inclusive of acquired intangible assets) as of December 31, 2022 and 4% of revenues for the year then ended. Our audit of internal control over financial reporting of the Company also did not include an evaluation of the internal control over financial reporting of Mohawk.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements of financial position of the Company as of December 31, 2022 and 2021, and the related consolidated statements of operations, comprehensive income (loss), shareholders' equity and cash flows for each of the three years in the period ended December 31, 2022 and the related notes and our report dated March 3, 2023 expressed an unqualified opinion thereon.

**Basis for Opinion**

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Annual Assessment of and Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

**Definition and Limitations of Internal Control Over Financial Reporting**

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Akron, Ohio

March 3, 2023

------

**ITEM 9B. Other Information.**

None.

**ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.**

None.

------

**PART III**

**ITEM 10. Directors, Executive Officers and Corporate Governance**

The information required by Item 401 of Regulation S-K concerning the executive officers of the Company is incorporated herein by reference from the disclosure included under the caption "Information About Our Executive Officers" in Part I of this Annual Report on Form 10-K.

For information about the directors of the Company, see the sections titled "Proposal No. 1 – Election of Directors", "Nominees," "Corporate Governance Guidelines," "Corporate Governance and Compensation Practices," "Board and Committee Independence," "Board Committees and Meetings," "Committee Charters and Policies," and "Shareholder Nomination Policy" of the Company's Proxy Statement filed with the Securities and Exchange Commission for the Company's annual meeting of shareholders to be held on April 27, 2023 ("Proxy Statement"), which is incorporated herein by reference.

The Company has established a separately-designated standing audit committee in compliance with the Exchange Act Section 3(a)(58)(A). The members of the Audit Committee are Yvette Dapremont Bright, William A. Foley, F. Jack Liebau, Jr. and Lori Lutey. Each member of the Company's Audit Committee is financially literate and independent as defined under the Company's Independence Criteria Policy and the independence standards set by the New York Stock Exchange. The Board has identified F. Jack Liebau, Jr. and Lori Lutey as "Audit Committee Financial Experts."

Disclosures by the Company with respect to family relationships and legal proceedings appear under the section entitled "Proposal No. 1 – Election of Directors" in the Proxy Statement, and is incorporated herein by reference. Disclosures by the Company with respect to compliance with Section 16(a) appear under the section entitled "Section 16(a) Beneficial Ownership Reporting Compliance" in the Proxy Statement, and is incorporated herein by reference.

Our Board of Directors has adopted Charters for each of the Audit Committee, the Compensation Committee, and the Nominating and Governance Committee as well as Corporate Governance Guidelines as contemplated by the applicable sections of the New York Stock Exchange Listed Company Manual.

In accordance with the requirements of Section 303A.10 of the New York Stock Exchange Listed Company Manual, the Board of Directors has also adopted a Code of Ethics and Business Conduct for our employees and members of our Board of Directors. We will satisfy any disclosure requirement under Item 5.05 of Form 8-K regarding an amendment to, or waiver from, any provision of this Code with respect to our executive officers or directors by disclosing the nature of that amendment or waiver.

The text of each of our Board Committee Charters, our Corporate Guidelines, the Code of Ethics and Business Conduct, and other governance policies, is posted on our website on the "Corporate Governance" page accessed from the page titled "Investor Relations." For further information about our Code of Ethics and Business Conduct, see the section titled "Corporate Governance and Compensation Practices" of our Proxy Statement, which is incorporated herein by reference.

**ITEM 11. Executive Compensation**

See the sections titled "Director Compensation," "Compensation Discussion and Analysis," "Summary of Cash and Certain Other Compensation," "Grants of Plan Based Awards," "Outstanding Equity Awards at Fiscal Year End," "Option Exercises and Stock Vested for Fiscal Year End 2022," "Nonqualified Deferred Compensation," "Severance Arrangements upon Termination Including Change in Control," "Summary of Potential Termination Payments and Benefits," "Risk Assessment of Compensation Practices," "CEO Pay Ratio," "Compensation and Management Development Committee Interlocks and Insider Participation," and "Compensation and Management Development Committee Report on Executive Compensation" of the Proxy Statement, which are incorporated herein by reference.

------

**ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters**

See the section titled "Security Ownership of Certain Beneficial Owners and Management" of the Proxy Statement, which is incorporated herein by reference.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **(A)** |  | **(B)** |  | **(C)** |
| **Plan Category** | **Number of Securities<br>to be Issued Upon<br>Exercise of<br>Outstanding Options,<br>Warrants and Rights** |  | **Weighted-average<br>Exercise Price of<br>Outstanding Options,<br>Warrants and Rights** |  | **Number of Securities<br>Remaining Available for<br>Future Issuance Under<br>Equity Compensation<br>Plans (Excluding<br>Securities Reflected in<br>Column (A))** |
| Equity Compensation Plans Approved by Security Holders | 930616 | (1) | $18.82 | (2) | 1252666 |
| Equity Compensation Plans Not Approved by Security Holders | –0– |  | –0– |  | –0– |
| Total | 930616 |  |  |  | 1252666 |

---

<sup>(1)</sup> This information is as of December 31, 2022 and includes outstanding stock option and restricted stock unit awards, including performance-based restricted stock unit awards, granted under the 2021 Incentive Stock Plan and the 2017 Incentive Stock Plan.

<sup>(2)</sup> Represents the weighted average exercise price of outstanding stock options and does not take into account outstanding restricted stock unit awards, which do not have an exercise price.

**ITEM 13. Certain Relationships and Related Transactions, and Director Independence**

See the sections titled "Policies and Procedures with Respect to Related Party Transactions," "Corporate Governance Guidelines," "Corporate Governance and Compensation Practices" and "Board and Committee Independence" of the Proxy Statement, which are incorporated herein by reference.

**ITEM 14. Principal Accounting Fees and Services**

Required information regarding fees paid to and services provided by the Company's independent registered public accounting firm and the pre-approval policies and procedures of the Audit Committee of the Company's Board of Directors is set forth under the section titled "Matters Relating to the Independent Registered Public Accounting Firm" of the Proxy Statement, which is incorporated herein by reference.

------

**PART IV**

**ITEM 15. Exhibits, Financial Statement Schedules**

The following consolidated financial statements of the Registrant appear in Part II of this Report:

**15. (A)(1) Financial Statements**

Consolidated Financial Statements of Myers Industries, Inc. and Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Report of Independent Registered Public Accounting Firm - Ernst & Young LLP (PCAOB Firm ID No. 42)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Consolidated Statements of Operations For The Years Ended December 31, 2022, 2021 and 2020

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Consolidated Statements of Comprehensive Income (Loss) For the Years Ended December 31, 2022, 2021 and 2020

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Consolidated Statements of Financial Position As of December 31, 2022 and 2021

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Consolidated Statements of Shareholders' Equity For The Years Ended December 31, 2022, 2021 and 2020

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Consolidated Statements of Cash Flows For The Years Ended December 31, 2022, 2021 and 2020

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Notes to Consolidated Financial Statements

**15. (A)(2) Financial Statement Schedules**

All schedules are omitted because they are inapplicable, not required, or because the information is included in the consolidated financial statements or notes thereto which appear in Part II of this Report.

**15. (A)(3) Exhibits**

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| 3.1 | [<u>Myers Industries, Inc. Second Amended and Restated Articles of Incorporation. Reference is made to Exhibit 3.1 to Form 8-K filed with the SEC on April 29, 2021.</u>](https://www.sec.gov/Archives/edgar/data/69488/000156459021021972/mye-ex31_8.htm) |
| 3.2 | [<u>Myers Industries, Inc. Amended and Restated Code of Regulations. Reference is made to Exhibit 3.2 to Form 8-K filed with the SEC on April 29, 2021.</u>](https://www.sec.gov/Archives/edgar/data/69488/000156459021021972/mye-ex32_9.htm) |
| 4 | [<u>Description of Capital Stock. Reference is made to Exhibit 4 to Form 10-K filed with the Commission on March 11, 2021.</u>](https://www.sec.gov/Archives/edgar/data/69488/000156459021012511/mye-ex4_452.htm) |
| 10.1 | [<u>Myers Industries, Inc. Employee Stock Purchase Plan. Reference is made to Exhibit 99.1 to Form S-8 filed with the Commission on November 21, 2018.</u>](https://www.sec.gov/Archives/edgar/data/69488/000119312518332368/d657983dex991.htm) |
| 10.2 | [<u>Amendment to Myers Industries, Inc. Employee Stock Purchase Plan effective October 1, 2022. (filed herewith)</u>](mye-ex10_2.htm) |
| 10.3 | [<u>Form of Indemnification Agreement for Directors and Officers. Reference is made to Exhibit 10.4 to Form 10-Q filed with the Commission on May 6, 2021.</u>](https://www.sec.gov/Archives/edgar/data/69488/000156459021024983/mye-ex104_90.htm) |
| 10.4 | [<u>Myers Industries, Inc. Amended and Restated Dividend Reinvestment and Stock Purchase Plan. Reference is made to Exhibit 99 to Post-Effective Amendment No. 2 to Form S-3 filed with the Commission on March 19, 2004.</u>](https://www.sec.gov/Archives/edgar/data/69488/000095015204002103/l06153aexv99.htm) |
| 10.5 | [<u>Performance Bonus Plan of Myers Industries, Inc. Reference is made to Exhibit 10.1 to Form 8-K filed with the Commission on April 30, 2013.\*</u>](https://www.sec.gov/Archives/edgar/data/69488/000119312513185488/d529546dex101.htm) |
| 10.6 | [<u>Note Purchase Agreement between Myers Industries, Inc. and the Note Purchasers, dated October 22, 2013, regarding the issuance of $40,000,000 of 4.67% Series A Senior Notes due January 15, 2021, $11,000,000 of 5.25% Series B Senior Notes due January 15, 2024, $29,000,000 of 5.30% Series C Senior Notes due January 15, 2024, and $20,000,000 of 5.45% Series D Senior Notes due January 15, 2026. Reference is made to Exhibit 4.1 to Form 8-K filed with the Commission on October 24, 2013.</u>](https://www.sec.gov/Archives/edgar/data/69488/000119312513409133/d616903dex41.htm) |
| 10.7 | [<u>First Amendment to the Note Purchase Agreement between Myers Industries, Inc. and the Note Purchasers, regarding the issuance of $40,000,000 of 4.67% Series A Senior Notes due January 15, 2021, $11,000,000 of 5.25% Series B Senior Notes due January 15, 2024, $29,000,000 of 5.30% Series C Senior Notes due January 15, 2024, and $20,000,000 of 5.45% Series D Senior Notes due January 15, 2026, dated July 21, 2015. Reference is made to Exhibit 10.1 to Form 8-K filed with the Commission on July 23, 2015.</u>](https://www.sec.gov/Archives/edgar/data/69488/000119312515260591/d11979dex101.htm) |
| 10.8 | [<u>Non-Competition and Confidentiality Agreement between Myers Industries, Inc. and Michael P. McGaugh dated April 6, 2020. Reference is made to Exhibit 10.2 to the Form 8-K filed with the Commission on March 16, 2020.\*</u>](https://www.sec.gov/Archives/edgar/data/69488/000119312520073955/d901710dex102.htm) |
| 10.9 | [<u>Second Amendment to the Note Purchase Agreement among the Subsidiary Guarantors identified therein and each of the institutions which is a signatory thereto, dated March 8, 2017. Reference is made to Exhibit 10.2 to Form 8-K filed with the Commission on March 9, 2017.</u>](https://www.sec.gov/Archives/edgar/data/69488/000119312517075607/d320090dex102.htm) |

---

------

---

| | |
|:---|:---|
| 10.10 | [<u>Form of Director Stock Award Agreement under the Amended and Restated 2017 Incentive Stock Plan. Reference is made to Exhibit 10(ac) to Form 10-K filed with the Commission on March 8, 2019.</u>](https://www.sec.gov/Archives/edgar/data/69488/000156459019007003/mye-ex10ac_470.htm) |
| 10.11 | [<u>Amended and Restated 2017 Stock Incentive Plan of Myers Industries, Inc.\* Reference is made to Exhibit 10(ao) to Form 10-K filed with the Commission on March 9, 2018.</u>](https://www.sec.gov/Archives/edgar/data/69488/000156459018005141/mye-ex10ao_160.htm) |
| 10.12 | [<u>Form of 2019 Option Award Agreement under the Amended and Restated 2017 Incentive Stock Plan of Myers Industries, Inc.\* Reference is made to Exhibit 10.1 to Form 10-Q filed with the Commission on May 8, 2019.</u>](https://www.sec.gov/Archives/edgar/data/69488/000156459019016886/mye-ex101_97.htm) |
| 10.13 | [<u>Administrative Settlement Agreement and Order on Consent For Remedial Investigation/Feasibility Study, effective November 27, 2018, by and between the United States Environmental Protection Agency and Buckhorn, Inc. Reference is made to Exhibit 10.1 to Form 8-K filed with the Commission on December 13, 2018.</u>](https://www.sec.gov/Archives/edgar/data/69488/000119312518348837/d642319dex101.htm) |
| 10.14 | [<u>Executive Nonqualified Excess Plan effective January 1, 2018\* Reference is made to Exhibit 10(ai) to Form 10-K filed with the Commission on March 8, 2019.</u>](https://www.sec.gov/Archives/edgar/data/69488/000156459019007003/mye-ex10ai_496.htm) |
| 10.15 | [<u>Form of 2020 Restricted Stock Unit Award Agreement under the Amended and Restated 2017 Incentive Stock Plan of Myers Industries, Inc.\* Reference is made to Exhibit 10(a) to Form 10-Q filed with the Commission on July 30, 2020.</u>](https://www.sec.gov/Archives/edgar/data/69488/000156459020034762/mye-ex10a_119.htm) |
| 10.16 | [<u>Form of 2020 Performance Stock Unit Award Agreement under the Amended and Restated 2017 Incentive Stock Plan of Myers Industries, Inc.\* Reference is made to Exhibit 10(b) to Form 10-Q filed with the Commission on July 30, 2020.</u>](https://www.sec.gov/Archives/edgar/data/69488/000156459020034762/mye-ex10b_120.htm) |
| 10.17 | [<u>Myers Industries, Inc. Senior Officer Severance Plan (as amended). \* (filed herewith)</u>](mye-ex10_17.htm) |
| 10.18 | [<u>Sixth Amended and Restated Loan Agreement dated March 12, 2021, among Myers Industries, Inc., MYE Canada Operations Inc., Scepter Canada Inc. and the other foreign subsidiary borrowers, the lenders and JPMorgan Chase Bank, National Association, as administrative agent. Reference is made to Exhibit 10.1 to Form 8-K and filed with the Commission on March 16, 2021.</u>](https://www.sec.gov/Archives/edgar/data/69488/000156459021013647/mye-ex101_24.htm) |
| 10.19 | [<u>Third Amendment to Note Purchase Agreement, dated March 12, 2021, among Myers Industries, Inc., the subsidiary guarantors identified therein and each of the institutions which is a signatory thereto. Reference is made to Exhibit 10.2 to Form 8-K filed with the Commission on March 16, 2021.</u>](https://www.sec.gov/Archives/edgar/data/69488/000156459021013647/mye-ex102_25.htm) |
| 10.20 | [<u>Non-Competition and Confidentiality Agreement between the Company and Sonal P. Robinson dated January 26, 2021 and effective February 1, 2021. Reference is made to Exhibit 10.1 to Form 8-K filed with the Commission on January 27, 2021.\*</u>](https://www.sec.gov/Archives/edgar/data/69488/000119312521018533/d27990dex101.htm) |
| 10.21 | [<u>Non-Competition and Confidentiality Agreement between the Company and Paul Johnson effective as of February 8, 2021.\* (filed herewith)</u>](mye-ex10_21.htm) |
| 10.22 | [<u>Change in Control Addendum between the Company and Paul Johnson effective as of February 8, 2021 as amended and restated as of February 28, 2023.\* (filed herewith)</u>](mye-ex10_22.htm) |
| 10.23 | [<u>Confidentiality Agreement between the Company and Jeffrey J. Baker effective as of September 1, 2020.\* (filed herewith)</u>](mye-ex10_23.htm) |
| 10.24 | [<u>Confidentiality Agreement between the Company and Jim Gurnee effective as of August 17, 2020.\* (filed herewith)</u>](mye-ex10_24.htm) |
| 10.25 | [<u>Form of 2021 Restricted Stock Unit Award Agreement for Executive Officers under the Amended and Restated 2017 Incentive Stock Plan of Myers Industries, Inc.\* Reference is made to Exhibit 10.5 to Form 10-Q filed with the Commission on May 6, 2021.</u>](https://www.sec.gov/Archives/edgar/data/69488/000156459021024983/mye-ex105_89.htm) |
| 10.26 | [<u>Form of 2021 Performance Stock Unit Award Agreement for Executive Officers under the Amended and Restated 2017 Incentive Stock Plan of Myers Industries, Inc.\* Reference is made to Exhibit 10.6 to Form 10-Q filed with the Commission on May 6, 2021.</u>](https://www.sec.gov/Archives/edgar/data/69488/000156459021024983/mye-ex106_245.htm) |
| 10.27 | [<u>Myers Industries, Inc. 2021 Long-Term Incentive Plan.\* Reference is made to Exhibit 99.1 to Form S-8 filed with the Commission on April 29, 2021.</u>](https://www.sec.gov/Archives/edgar/data/69488/000156459021022049/mye-ex991_7.htm) |
| 10.28 | [<u>Form of 2022 Restricted Stock Unit Award Agreement for Executive Officers under the 2021 Long-Term Incentive Plan of Myers Industries, Inc.\* Reference is made to Exhibit 10.1 to Form 10-Q filed with the Commission on May 5, 2022.</u>](https://www.sec.gov/Archives/edgar/data/69488/000095017022007814/mye-ex10_1.htm) |
| 10.29 | [<u>Form of 2022 Performance Stock Unit Award Agreement for Executive Officers under the 2021 Long-Term Incentive Plan of Myers Industries, Inc.\* Reference is made to Exhibit 10.2 to Form 10-Q filed with the Commission on May 5, 2022.</u>](https://www.sec.gov/Archives/edgar/data/69488/000095017022007814/mye-ex10_2.htm) |
| 10.30 | [Seventh Amended and Restated Loan Agreement, dated September 29, 2022, among Myers Industries, Inc., MYE Canada Operations Inc., Scepter Canada Inc. and the other foreign subsidiary borrowers, the lenders and JPMorgan Chase Bank, National Association, as administrative agent.\*\*\*](https://www.sec.gov/Archives/edgar/data/69488/000095017022019269/mye-ex10_1.htm)Reference is made to Exhibit 10.1 to Form 8-K filed with the SEC on October 4, 2022. |
| 10.31 | [<u>Fourth Amendment to Note Purchase Agreement, dated September 29, 2022, among Myers Industries, Inc., the subsidiary guarantors identified therein and each of the institutions which is a signatory thereto</u>](https://www.sec.gov/Archives/edgar/data/69488/000095017022019269/mye-ex10_2.htm)<u>.</u> <u>Reference is made to Exhibit 10.2 to Form 8-K filed with the SEC on October 4, 2022.</u> |
| 10.32 | [<u>2023 Non-employee Director Compensation.\* (filed herewith)</u>](mye-ex10_32.htm) |
| 14 | [<u>Myers Industries, Inc. Code of Ethics and Business Conduct. Reference is made to Exhibit 14.1 to Form 8-K filed with the Commission on March 6, 2017.</u>](https://www.sec.gov/Archives/edgar/data/69488/000119312517071658/d333488dex141.htm) |
| 21 | [<u>List of Direct and Indirect Subsidiaries, and Operating Divisions, of Myers Industries, Inc.</u>](mye-ex21.htm) |
| 23 | [<u>Consent of Independent Registered Public Accounting Firm.</u>](mye-ex23.htm) |

---

------

---

| | |
|:---|:---|
| 24 | [<u>Power of Attorney for Yvette Dapremont Bright, Sarah R. Coffin, Ron DeFeo, William A. Foley, Jeffrey Kramer, F. Jack Liebau, Jr., Bruce M. Lisman, and Lori Lutey.</u>](mye-ex24.htm) |
| 31.1 | [<u>Certification of Michael P. McGaugh, President and Chief Executive Officer of Myers Industries, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](mye-ex31_1.htm) |
| 31.2 | [<u>Certification of Monica P. Vinay, Interim Chief Financial Officer of Myers Industries, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](mye-ex31_2.htm) |
| 32 | [<u>Certifications of Michael P. McGaugh, President and Chief Executive Officer, and Monica P. Vinay, Interim Chief Financial Officer, of Myers Industries, Inc. pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</u>](mye-ex32.htm) |
| 101 | The following financial information from Myers Industries, Inc. Annual Report on Form 10-K for the year ended December 31, 2022, formatted in inline XBRL includes: (i) Consolidated Statements of Financial Position (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) Consolidated Statements of Cash Flows, (v) Consolidated Statements of Shareholders' Equity, and (vi) the Notes to Consolidated Financial Statements. |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |

---

\* Indicates executive compensation plan or arrangement.

\*\* Pursuant to Item 601(b)(2) of Regulation S-K, certain exhibits and schedules have been omitted from this filing. The registrant agrees to furnish the Commission on a supplemental basis a copy of any omitted exhibit or schedule.

\*\*\* Pursuant to Item 601(b)(10) of Regulation S-K, certain exhibits and schedules have been omitted from this filing. The registrant agrees to furnish the Commission on a supplemental basis a copy of any omitted provisions, exhibit or schedule.

------

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| |
|:---|
| MYERS INDUSTRIES, INC. |
| <br>/s/ Monica P. Vinay |
| **Monica P. Vinay** |
| **Interim Chief Financial Officer** <br>**(Principal Financial and Accounting Officer)** |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **<u>SIGNATURE</u>** | **<u>TITLE</u>** | **<u>DATE</u>** |
| /s/ Michael P. McGaugh | President, Chief Executive Officer and Director (Principal Executive Officer) | March 3, 2023 |
| MICHAEL P. MCGAUGH |  |  |
| /s/ Monica P. Vinay | Interim Chief Financial Officer (Principal Financial and Accounting Officer) | March 3, 2023 |
| MONICA P. VINAY |  |  |
| /s/ Yvette Dapremont Bright\* | Director | March 3, 2023 |
| YVETTE DAPREMONT BRIGHT  |  |  |
| /s/ Sarah R. Coffin\* | Director | March 3, 2023 |
| SARAH R. COFFIN |  |  |
| /s/ Ron DeFeo\* | Director | March 3, 2023 |
| RON DEFEO |  |  |
| /s/ William A. Foley\* | Director | March 3, 2023 |
| WILLIAM A. FOLEY |  |  |
| /s/ Jeffrey Kramer\* | Director | March 3, 2023 |
| JEFFREY KRAMER |  |  |
| /s/ F. Jack Liebau, Jr.\* | Director | March 3, 2023 |
| F. JACK LIEBAU, JR. |  |  |
| /s/ Bruce M. Lisman\* | Director | March 3, 2023 |
| BRUCE M. LISMAN |  |  |
| /s/ Lori Lutey\* | Director | March 3, 2023 |
| LORI LUTEY |  |  |

---

\*The above named Directors of the Registrant execute this report by Michael P. McGaugh and Monica P. Vinay, their attorneys-in-fact, pursuant to the power of attorney executed by the above-named Directors all in the capacities indicated and on the 1<sup>st</sup> day of March 2023, and filed herewith.

---

| | |
|:---|:---|
| By: /s/ Michael P. McGaugh | By: /s/ Monica P. Vinay |
| Michael P. McGaugh | Monica P. Vinay |
| Attorney-in-Fact | Attorney-in-Fact |

---

------

## Ex-10

**Exhibit 10.2**

**Myers Industries, Inc. Employee Stock Purchase Plan**

**Amendment Effective as of October 1, 2022**

**Whereas**, Myers Industries, Inc. (the "Company") maintains the Myers Industries, Inc. Employee Stock Purchase Plan (the "Plan"), which was last amended effective as of January 1, 2019;

**WHEREAS**, the Plan is administered by the Committee;

**WHEREAS**, pursuant to Section 19.9 of the Plan, the Committee may, at any time, in its sole discretion, amend the Plan; and

**WHEREAS**, the Committee desires to amend the Plan as set forth in this Amendment.

**NOW THEREFORE**, effective as of October 1, 2022 (the "Amendment Effective Date") the Company hereby amends the Plan as follows:

Eligibility Terms and Suspended contributions, if within 30 days of close of quarter no purchase is made

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Section 2.11 is hereby replaced in its entirety with the following:

2.11 "**Eligible Employee**" means an Employee who (i) has been employed by the Company or a Participating Subsidiary for at least thirty (30) days and (ii) is customarily employed for at least twenty (20) hours per week.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Section 10.1 is hereby replaced in its entirety with the following:

10.1 **<u>Withdrawal Procedure</u>**. A Participant may withdraw from an Offering by submitting to the Company a revised Enrollment Form indicating his or her election to withdraw at least thirty (30) days before the Purchase Date. The accumulated payroll deductions held on behalf of a Participant in his or her notional account (that have not been used to purchase shares of Common Stock) shall be refunded to the Participant as soon as administratively practicable after the applicable Purchase Date. If a Participant withdraws from an Offering Period, no payroll deductions will be made during any succeeding Offering Period, unless the Participant re-enrolls in accordance with Section 6.1 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Section 11 is hereby replaced in its entirety with the following:

11. **<u>Termination of Employment; Change in Employment Status</u>**. Upon termination of a Participant's employment for any reason, including death, disability or retirement, or a change in the Participant's employment status following which the Participant is no longer an Eligible Employee, which in either case occurs at least thirty (30) days before the Purchase Date, the Participant will be deemed to have withdrawn from the Plan and the payroll deductions in the Participant's notional account (that have not been used to purchase shares of Common Stock) shall be refunded to the Participant, or in the case of the Participant's death, to the person(s) entitled to such amounts under Section 17, as soon as administratively practicable after the applicable Purchase Date, and the Participant's option to purchase shall be automatically terminated. If the Participant's termination of employment or change in status occurs less than thirty (30) days before a Purchase Date, the accumulated payroll deductions shall be used to purchase shares on the Purchase Date.

All other provisions of the Plan document shall remain in full force and in effect as presently written.

------

## Ex-10

**Exhibit 10.17**

**MYERS INDUSTRIES, INC.**

**SENIOR OFFICER SEVERANCE PLAN**

**(As Amended Effective July 20, 2022)**

**Myers Industries, Inc.**

**Senior Officer Severance Plan**

**Adopted effective February 21, 2020**

**As amended effective April 6, 2020 and July 20 2022**

**WHEREAS,** Myers Industries, Inc., a corporation organized and existing under the laws of the State of Ohio (the "**Company**"), recognizes that one of its most valuable assets are the members of its senior leadership team;

**WHEREAS**, the Company desires to establish the Myers Industries, Inc. Senior Officer Severance Plan (the "**Plan**") to provide certain severance benefits for senior officers eligible to participate in the Plan, including severance benefits in the event of certain terminations of employment, including in connection with a Change in Control of the Company;

**WHEREAS**, the Plan is intended to replace and supersede the Severance and Change in Control Agreements and Change in Control Agreements previously entered into between the Company and certain of its senior officers; and

**WHEREAS**, to the extent that an otherwise eligible senior officer remains covered by a previously executed Severance and Change in Control Agreement or Change in Control Agreement on the Effective Date of this Plan, such officer shall not be entitled to any benefit under this Plan until that individual has agreed to terminate such agreement;

**NOW, THEREFORE**, the Company hereby adopts the Plan initially effective as of February 21, 2020, as amended effective April 6, 2020 and as further amended effective July 20 2022.

------

**MYERS INDUSTRIES, INC.**

**SENIOR OFICER SEVERANCE PLAN**

**1.** **ADOPTION AND OBJECTIVE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1** **Adoption.** Myers Industries, Inc., an Ohio, hereby adopts, assumes and establishes this plan for certain of its senior officers to be known as the "Myers Industries, Inc. Senior Officer Severance Plan" (as it may be amended from time to time, the "**Plan**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2** **Objective.** The Plan is designed to attract and retain certain senior officers of the Company and the Company's Affiliates and to reward such employees by providing replacement income and certain benefits if such an individual's employment with the Company or the Company's Affiliates is terminated in certain circumstances, including in connection with a Change in Control of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3** **Purpose.** The Plan is intended to constitute the type of arrangement identified as a "severance pay arrangement" within the meaning of Section 3(2)(B)(i) of ERISA, as further elaborated in regulations promulgated by the Secretary of Labor at Title 29, Code of Federal Regulations, § 2510.3-2(b), and which qualifies as a "top hat" plan for a select group of management or highly compensated employees. No Covered Officer shall have a vested right to the benefits under the Plan. The Plan is intended to constitute the type of arrangement identified as a "severance pay arrangement" within the meaning of Section 3(2)(B)(i) of ERISA, as further elaborated in regulations promulgated by the Secretary of Labor at Title 29, Code of Federal Regulations, § 2510.3-2(b), which is subject to ERISA. No Covered Officer shall have a vested right to the benefits under the Plan. The benefits paid by the Plan are not intended as deferred compensation nor is the Plan intended to be an "employee pension benefit plan or "pension plan" as those terms are defined in Section 3(2) of ERISA.

**2.** **DEFINITIONS**

As used in the Plan, the following terms and phrases shall have the meanings set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1**"**Accrued Obligations**" means the portion of the Base Salary accrued but unpaid through the Termination Date and earned but unused vacation time, in each case to the extent not theretofore paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2**"**Affiliate**" and "**Affiliates**" mean, when used with respect to any entity, individual, or other person, any other entity, individual, or other person which, directly or indirectly, through one or more intermediaries controls, or is controlled by, or is under common control with such entity, individual or person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3**"**Annual Bonus**" means the cash bonus payable to the Covered Officer pursuant to a formal or informal Company annual bonus plan or individual bonus arrangement on a calendar year basis; provided that the Annual Bonus shall not include any long-term cash award under any Company long-term performance bonus plan.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4** **"Assets"** means assets of any kind owned by the Company, including but not limited to securities of the Company's direct and indirect subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5**"**Base Salary**" means a Covered Officer's annual base salary as in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.6** "**Beneficial Owner**" shall have the meaning ascribed to the term in Rule 13d-3 of the General Rules and Regulations under the Exchange Act or any successor act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.7**"**Benefit Plans**" means any bonus, incentive, profit sharing, performance, savings, retirement or pension policy, plan, program or arrangement, including, but not limited to, any deferred compensation, supplemental executive retirement or other retirement income, stock option, stock purchase, stock appreciation, restricted stock, deferred stock unit, employee stock ownership or similar policy, plan, program or arrangement of the Company (or any substitute or alternative plan) or any employee welfare benefit plan (within the meaning of Section 3(1) or ERISA) maintained by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.8**"**Board**" means the Board of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.9**"**Cause**" means

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)commission by the Covered Officer (evidenced by a conviction or written, voluntary and freely given confession) of a felony, crime of moral turpitude or any crime involving fraud, breach of trust or misappropriation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)any breach by the Covered Officer of the Covered Officer's fiduciary duties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)continued failure by the Covered Officer to perform the Covered Officer's Duties in any material respect (other than any failure resulting from the Covered Officer's incapacity due to physical or mental illness), or the commission by the Covered Officer of a breach or default of any agreement relating to Covered Officer's employment with the Company or the code of conduct or any other policy of the Company which breach or default results in material economic harm to the Company or has a materially adverse effect on the Company's reputation, operations, properties or business relationships, in each case which continued failure or breach or default is not substantially cured in all material respects within thirty (30) days after the Board gives written notice thereof to the Covered Officer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)commission by the Covered Officer, when carrying out the Covered Officer's Duties, of acts or the omission of any act, which both (A) constitutes gross negligence or willful misconduct and (B) results in material economic harm to the Company or has a materially adverse effect on the Company's reputation<u>,</u> operations, properties or business relationships.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.10**"**Change in Control**" means a change in control of the Company of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Exchange Act as in effect on the date of this Agreement, whether or not the Company is then subject to such reporting requirement; provided that, without limitation, a Change in Control shall be deemed to have occurred if:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)any "person" (as defined in Sections 13(d) and 14(d) of the Exchange Act) becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing thirty percent (30%) or more of the combined voting power of the Company's then outstanding securities; provided that a Change in Control shall not be deemed to occur under this clause (i) by reason of the acquisition of securities by the Company or an employee benefit plan (or any trust funding such a plan) maintained by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)during any period of one (1) year there shall cease to be a majority of the Board comprised of "Continuing Directors" as hereinafter defined; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)there occurs (i) a Merger of the Company with any other corporation, other than a Merger which would result in the Voting Securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into Voting Securities of the surviving entity) more than fifty percent (50%) of the combined voting power of the Voting Securities of the Company or such surviving entity outstanding immediately after such Merger, (ii) the approval by the stockholders of the Company of a plan of complete liquidation of the Company, or (iii) the sale or disposition by the Company of more than fifty percent (50%) of the Company's assets. For purposes of this **<u>Section 2.10(c)</u>**, a sale of more than fifty percent (50%) of the Company's assets includes a sale of more than fifty percent (50%) of the aggregate value of the assets of the Company and its subsidiaries or the sale of stock of one or more of the Company's subsidiaries with an aggregate value in excess of fifty percent (50%) of the aggregate value of the Company and its subsidiaries or any combination of methods by which more than fifty percent (50%) of the aggregate value of the Company and its subsidiaries is sold.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)For purposes of this Agreement, a "Change in Control" will be deemed to occur on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)the day on which a thirty percent (30%) or greater ownership interest described in Subsection 2.10(a) is acquired, provided that a subsequent increase in such ownership interest after it first equals or exceeds thirty percent (30%) shall not be deemed a separate Change in Control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)on the day on which "Continuing Directors", as hereinafter defined, cease to be a majority of the Board as described in **<u>Section 2.10(b)</u>**;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)on the day of a Merger or sale of assets as described in **<u>Section 2.10(c)</u>**; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)on the day of the approval of a plan of complete liquidation as described in **<u>Section 2.10(c)</u>**.

For purposes herein, the words "Continuing Directors" mean individuals who at the beginning of any period (not including any period prior to the date of this Agreement) of one (1) year constitute the Board and any new Director(s) whose election by the Board or nomination for election by the Company's stockholders was approved by a vote of at least a majority of the Directors then still in office who either were Directors at the beginning of the period or whose election or nomination for election was previously so approved.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.11**"**Code**" means the Internal Revenue Code of 1986, as amended, or any successor act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.12**"**Company**" means Myers Industries, Inc., an Ohio corporation, and any Successor by Merger or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13**"**Compensation Committee**" means the Compensation and Management Development Committee of the Board or its successor. After a Change in Control, "Compensation Committee" means (a) the individuals (not fewer than three (3) in number) who, on the date six months prior to the Change in Control constitute the Compensation Committee of the Board, plus, (b) in the event that fewer than three (3) individuals are available from the group specified in clause (a) above for any reason, such individuals as may be appointed by the individual or individuals so available (including for this purpose any individual or individuals previously so appointed under this clause (b)); provided, however, that the maximum number of individuals constituting the Compensation Committee after a Change in Control shall not exceed six (6).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.14**"**Covered Officer**" means a senior officer of the Employer designated as eligible to participate in the Plan under the provisions of **<u>Section 3</u>**, and shall include, as of the Effective Date of the Plan, the individuals holding the positions of: (a) President/Chief Executive Officer, (b) Chief Financial Officer, (c) Vice President, Shared Services, (d) Vice President, Sales, Marketing and Commercial Excellence, , and (e) Vice President, Distribution Segment (but not individuals serving in such capacities on an interim basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.15**"**Director**" means a member of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.16**"**Disability**" means a physical or mental incapacity that prevents the Covered Officer from performing his duties for a total of one hundred eighty (180) days in any twenty four (24) month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.17**"**Duties**" means the duties and responsibilities customarily required of a similar officer of a major corporation as the position held by a Covered Officer or such additional duties as may be assigned from time to time to the Covered Officer by the Chief Executive Officer of the Company or, with respect to the Chief Executive Officer, as may be assigned from time to time by the Board, and which are consistent with the position held by such Covered Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.18** "**Effective Date**" means February 21, 2020, the date as of which the Plan was initially adopted, and each amendment date thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.19**"**Employer**" means the Company or any Affiliate that adopts the Plan pursuant to the provisions of **<u>Section 17</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.20**"**Entity**" means any corporation, partnership, association, joint-stock company, limited liability company, trust, unincorporated organization or other business entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.21**"**ERISA**" means the Employee Retirement Income Security Act of 1974, as amended, or any successor act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.22**"**Exchange Act**" means the Securities Exchange Act of 1934, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.23**"**Fiscal Year**" means the fiscal year of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.24**"**Good Reason**" means the occurrence of one or more of the following conditions arising without the consent of the Covered Officer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)a material diminution in the Covered Officer's annual Base Salary or a material diminution in the Covered Officer's aggregate compensation package, in either case, below the level in effect on the later of the Effective Date or the date a Covered Officer becomes a participant in the Plan pursuant to Section 3; provided, however, that for purposes of this **<u>Section 2.24(a)</u>** a material diminution will not be deemed to have occurred (i) solely because of changes to the allocation among compensation components such as the Company's long-term incentive plan, Annual Bonus, Base Salary, or other cash or equity awards, or (ii) from the failure to achieve applicable performance targets under a short-term or long-term performance based plan or program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)a reduction or series of reductions in the aggregate value of the life insurance, accidental death, long term disability, short term disability, medical, dental and vision benefits and expense reimbursement policy available to the Covered Officer as of the Effective Date which, in the aggregate is material, unless such reduction or series of reductions is consistent with reductions applicable to all employees of the Company or its Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)a material diminution in the Covered Officer's Duties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)a change of more than fifty (50) miles in the geographic location at which the Covered Officer must perform the Covered Officer's Duties; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)any other action or inaction that constitutes a material breach by the Company of this Agreement or any other agreements under which the Covered Officer provides services to the Company or its Affiliates (specifically including a failure of the purchaser in a Change in Control transaction, to assume this Agreement in accordance with **<u>Section 19</u>** hereof).

In order for a condition to constitute a Good Reason, the Covered Officer must provide written notification to the Company of the existence of the condition within forty-five (45) days of the initial existence of the condition (or within forty-five (45) days following the Covered Officer actually becoming aware of such condition, if later), upon the notice of which the Company shall have a period of thirty (30) days during which it may remedy the condition. Furthermore, to constitute a Good Reason, the Covered Officer must voluntarily terminate employment with the Company within ninety (90) days following the initial existence of the condition or within ninety (90) days following the date the Covered Officer actually becomes aware of such condition, if later.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.25** "**Merger**" means a merger, consolidation or similar transaction.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.26** "**Person**" shall have the meaning ascribed to the term in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended, or any successor act, and used in Sections 13(d) and 14(d) thereof, including a "group" as defined in Section 13(d) thereof, except that the term shall not include (a) the Company, the Employer or any of their Affiliates, (b) a trustee or other fiduciary holding Company securities under an employee benefit plan of the Company or any of its Affiliates, (c) an underwriter temporarily holding securities pursuant to an offering of those securities or (d) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.27**"**Section 409A**" means Section 409A of the Code and the rules and regulations issued thereunder by the Internal Revenue Service and the Department of Treasury.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.28**"**Separation From Service**" means a Covered Officer's termination of employment with the Company or Employer, provided that such termination constitutes a separation from service within the meaning ascribed to such term under Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.29**"**Specified Employee**" means a Covered Officer who, as of the date of his Separation from Service, is deemed to be a "specified employee" within the meaning ascribed to that term under Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.30**"**Specified Owner**" means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)an Affiliate of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)an employee benefit plan (or related trust) sponsored or maintained by the Company or any Affiliate of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)a Person that becomes a Beneficial Owner of the Company's outstanding Voting Securities representing 30 percent or more of the combined voting power of the Company's then outstanding Voting Securities as a result of the acquisition of securities directly from the Company and/or its Affiliates; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)a Person that becomes a Beneficial Owner of the Company's outstanding Voting Securities representing 30 percent or more of the combined voting power of the Company's then outstanding Voting Securities as a result of a Merger if the individuals and Entities who were the Beneficial Owners of the Voting Securities of the Company outstanding immediately prior to such Merger own, directly or indirectly, at least 50 percent of the combined voting power of the Voting Securities of any of the Company, the surviving Entity or the parent of the Company or the surviving Entity outstanding immediately after such Merger in substantially the same proportions as their ownership of the Voting Securities of the Company outstanding immediately prior to such Merger.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.31**"**Successor**" means a person with or into which the Company shall have been merged or consolidated or to which the Company shall have transferred its assets as an entirety or substantially as an entirety.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.32**"**Target Bonus**" means a Covered Officer's Annual Bonus at the target level in effect during the applicable calendar year.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.33**"**Term**" means the period commencing on the Effective Date and ending on the date on which the Plan is terminated by the Board as provided in **<u>Section 16</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.34**"**Termination Date**" means the date as of which a Covered Officer incurs a Separation From Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.35**"**Voting Securities**" means the outstanding securities entitled to vote generally in the election of Directors or other governing body.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.36**"**Wholly-Owned Subsidiary**" means an Entity that is, directly or indirectly, wholly owned by the Company.

**3.** **ELIGIBILITY**

The Company shall notify an individual officer of his or her eligibility to participate in the Plan as a Covered Officer by furnishing such officer a written notification of participation.

Notwithstanding any other provision of the Plan, the Committee may discontinue an individual's participation in the Plan at any time by providing written notice (the "**Notice**") that the individual shall no longer be eligible to participate in the Plan; provided, however, that a Change in Control has not occurred. If a Change in Control occurs within ninety (90) days after the date a Notice is provided, then the applicable individual may be eligible to receive a benefit under Section 5 of the Plan in connection with that Change in Control.

Participation in the Plan shall supersede, be in lieu of, and terminate any and all agreements and rights that the Covered Officer has under any prior employment, severance, or change in control agreements between the Covered Officer and the Company or its Affiliates other than the Non-Competition and Non-Disclosure Agreements described in **<u>Sections 10</u>** and **<u>11</u>**; provided, however, that participation in the Plan shall not prevent or limit a Covered Officer's eligibility to participate in any benefit, bonus, incentive or other plan, program, policy or practice provided by the Company or its Affiliates for its senior officers. Notwithstanding a Covered Officer's participation in the Plan, the Covered Officer's employment shall continue to be "at-will" as described in **<u>Section 14</u>**.

**4.** **SEVERANCE BENEFITS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1**If the Covered Officer's employment is terminated by the Company other than for Cause or is terminated by the Covered Officer for Good Reason, but not in connection with a Change in Control as set forth in **<u>Section 5</u>** below, and provided such termination constitutes a Separation From Service, and further provided that Covered Officer delivers an effective release of claims as required under **<u>Section 6</u>** below, the Covered Officer will be entitled to the following severance benefits (the "**Severance Benefits**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)a single lump sum payment, within thirty (30) days following the later of the Termination Date and the Release Effective Date, in an amount equal to the Accrued Obligations, plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)for the President/Chief Executive Officer, one and one-half (1.5) times his or her Base Salary in effect on the Termination Date (or, if such Base Salary

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has decreased during the one (1) year period ending on the Termination Date, at the highest rate in effect during such period); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)for a Covered Officer other than the President/Chief Executive Officer, one (1) times his or her Base Salary in effect on the Termination Date (or if such Base Salary has decreased during the one (1) year period ending on the Termination Date, at the highest rate in effect during such period);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)for the applicable period under Code Section 4980B (the "**COBRA Period**"), but in no event more than twelve (12) months following the Termination Date, coverage under the Company's group medical and dental plans (the "**Health Care Plans**" all at the levels being provided to the Covered Officer immediately prior to the Termination Date (the "**Health Care Coverage**") and the Company shall pay the entire cost of the premiums for such continued Health Care Coverage, provided that if Covered Officer shall become eligible to participate in medical and dental plans provided by another employer, the Company shall be relieved of the requirement to provide such continued coverage under this Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)for a period of one (1) year, beginning with the month following the Termination Date, provide long-term disability coverage, including long-term disability protection under policies that are the same or substantially similar to those in effect as of the date hereof (the "**Disability Coverage**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)for a period of one (1) year, beginning with the month following the Termination Date, provide life insurance protection under policies that are the same or substantially similar to those in effect as of the date hereof (the "**Life Insurance Coverage**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)for a one (1) year period commencing on the Termination Date, the Company pay for executive outplacement services for the Covered Officer from a nationally recognized executive outplacement firm at a level appropriate for the most senior officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)any other amounts or benefits provided under any plan, policy, practice, program, contract or arrangement of or provided by the Company, including, but not limited to, the Benefit Plans, which shall be governed by the terms thereof (except as explicitly modified by this Plan); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)the treatment of all outstanding stock options, restricted stock, restricted stock units, or similar awards granted to the Covered Officer under the Company's long-term incentive plan or any successor or replacement equity-based incentive plan shall be subject to the terms and conditions of the respective award or option agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2**With respect to **<u>Section 4.1(b)</u>**, the Health Care Coverage provided to the Covered Officer during any calendar year during the Term will not affect the Health Care Coverage provided to him or her in any other calendar year. The Covered Officer's right to receive the Health Care Coverage is not subject to liquidation or exchange for any other benefit, whether under this Agreement or otherwise. With respect to **<u>Section 4.1(c)</u>**, the Disability Coverage provided to the Covered Officer during any calendar year during the Term will not affect the Disability Coverage provided to him or her in any other calendar year. The Covered Officer's

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right to receive the Disability Coverage is not subject to liquidation or exchange for any other benefit, whether under this Agreement or otherwise. With respect to **<u>Section 4.1(d)</u>**, the Life Insurance Coverage provided to the Covered Officer during any calendar year during the Term will not affect the Life Insurance Coverage provided to him or her in any other calendar year. The Covered Officer's right to receive the Life Insurance Coverage is not subject to liquidation or exchange for any other benefit, whether under this Agreement or otherwise. Notwithstanding the foregoing, Covered Officer shall be entitled to receive the same Disability Coverage, Life Insurance Coverage and Health Care Coverage as is made available to Company employees generally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3**If the Covered Officer's employment with the Company is terminated by reason of the Covered Officer's death or Disability during the Term, the Covered Officer or his or her surviving spouse shall be entitled to receive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the Accrued Obligations and a pro rata portion of the Target Bonus for the period commencing on the first day of the Fiscal Year in which the death or Disability occurs and ending on the date of death or Disability, within 30 days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)any other amounts or benefits provided under any plan, policy, practice, program, contract or arrangement of or provided by the Company, including, but not limited to, the Benefit Plans, which shall be governed by the terms thereof (except as explicitly modified by this Plan);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)if the Covered Officer and/or his or her surviving spouse and dependents properly elect continued medical coverage in accordance with Code Section 4980B ("**COBRA**"), the Company shall pay the entire cost of the premiums for such continued medical coverage (the "**Medical Coverage**") for the longer of (A) the maximum required period of coverage under Code Section 4980B(f) or (B) twelve (12) months, provided, however, that such Medical Coverage provided to the Covered Officer in any calendar year during such period will not affect the Medical Coverage provided to him in any other calendar year and the Covered Officer's right to receive the Medical Coverage is not subject to liquidation or exchange for any other benefit, whether under this Agreement or otherwise; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)the Covered Officer will become immediately and fully vested in all outstanding stock options, restricted stock, restricted stock units, or similar awards under the Company's long-term incentive plan or any successor or replacement equity-based incentive plan, and any such award or options shall be then and thereafter fully exercisable until the termination of such award or options pursuant to the terms of the respective award or option agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4**If the Covered Officer's employment hereunder is terminated by the Company for Cause or by the Covered Officer other than for Good Reason, then no further compensation or benefits will be provided to the Covered Officer by the Company under this Agreement following the Termination Date other than payment of (a) the Accrued Obligations within 30 days after the Termination Date, and (b) any other amounts or benefits provided under any plan, policy, practice, program, contract or arrangement of or provided by the Company, including, but not limited to,

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the Benefit Plans, which shall be governed by the terms thereof (except as explicitly modified by this Plan).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5**Notwithstanding anything contained in this Agreement to the contrary, if the Covered Officer breaches any of the obligations under **<u>Sections 10</u>** or **<u>11</u>** hereof, and such breach is not substantially cured in all material respects within thirty (30) days after the Company or the Board gives written notice thereof to the Covered Officer, no further severance payments or other benefits will be payable to the Covered Officer under this **<u>Section 4</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.6**The Company shall be entitled to set-off any amounts owed to the Company by the Covered Officer against Severance Benefits payable by the Company to the Covered Officer pursuant to this Plan.

**5.** **Termination in Connection with a Change in Control.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1**If at any time within ninety (90) days prior to a Change in Control or one hundred eighty (180) days following a Change in Control, the Covered Officer's employment is terminated by the Company without Cause or by the Covered Officer for Good Reason, or because in connection with a Change in Control the liabilities, obligations and duties of the Company under this Plan are required pursuant to **<u>Section 19</u>** hereof to be assumed by an assignee or transferee that is the successor to all or substantially all of the assets of the Company and this Plan is not so assumed or replaced with a substituted award or right having substantially equivalent economic value and substantially equivalent or better terms and conditions by such assignee or transferee that is the successor to all or substantially all of the assets of the Company, and provided such termination constitutes a Separation From Service, and further provided that the Covered Officer delivers an effective release of claims as required under **<u>Section 6</u>** below, the Covered Officer will be entitled to the following payments and benefits (the "**Change in Control Benefits**"), in lieu of the Severance Benefits outlined in **<u>Section 4</u>** hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)a single lump sum payment, within thirty (30) days following the later of the Termination Date and the Release Effective Date, in an amount equal to the Accrued Obligations plus the pro rata portion of the Target Bonus for the period commencing on the first day of the Fiscal Year in which the employment of the Covered Officer is terminated and ending on the Termination Date, plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)for the President/Chief Executive Officer, two (2) times the sum of (A) his or her Base Salary in effect on the Termination Date (or, if such Base Salary has decreased during the one (1) year period ending on the Termination Date, at the highest rate in effect during such period), plus (B) his or her Target Bonus; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)for a Covered Officer other than the President/Chief Executive Officer, one and one-half (1.5) times the sum of (A) his or her Base Salary in effect on the Termination Date (or if such Base Salary has decreased during the one (1) year period ending on the Termination Date, at the highest rate in effect during such period), plus (B) his or her Target Bonus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)for up to eighteen (18) months following the Termination Date, continued

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Health Care Coverage and the Company shall pay the entire cost of the premiums for such continued Health Care Coverage, provided that if Covered Officer shall become eligible to participate in Health Care Plans provided by another employer, the Company shall be relieved of the requirement to provide such continued Health Care Coverage under this Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)for a period of two (2) years, beginning with the month following the Termination Date, Disability Coverage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)for a period of two (2) years, beginning with the month following the Termination Date, Life Insurance Coverage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)for a one (1) year period commencing on the Termination Date, the Company pay for executive outplacement services for the Covered Officer from a nationally recognized executive outplacement firm at a level appropriate for the most senior officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)any other amounts or benefits provided under any plan, policy, practice, program, contract or arrangement of or provided by the Company, including, but not limited to, the Benefit Plans, which shall be governed by the terms thereof (except as explicitly modified by this Plan); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)the treatment of all outstanding stock options, restricted stock, restricted stock units, or similar awards granted to the Covered Officer under the Company's long-term incentive plan or any successor or replacement equity-based incentive plan shall be subject to the terms and conditions of the respective award or option agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2**With respect to Section 5.1(b), the Health Care Coverage provided to the Covered Officer during any calendar year during the Term will not affect the Health Care Coverage provided to him or her in any other calendar year. The Covered Officer's right to receive the Health Care Coverage is not subject to liquidation or exchange for any other benefit, whether under this Agreement or otherwise. With respect to Section 5.1(c), the Disability Coverage provided to the Covered Officer during any calendar year during the Term will not affect the Disability Coverage provided to him or her in any other calendar year. The Covered Officer's right to receive the Disability Coverage is not subject to liquidation or exchange for any other benefit, whether under this Agreement or otherwise. With respect to Section 5.1(d), the Life Insurance Coverage provided to the Covered Officer during any calendar year during the Term will not affect the Life Insurance Coverage provided to him or her in any other calendar year. The Covered Officer's right to receive the Life Insurance Coverage is not subject to liquidation or exchange for any other benefit, whether under this Agreement or otherwise. Notwithstanding the foregoing, Covered Officer shall be entitled to receive the same Disability Coverage, Life Insurance Coverage and Health Care Coverage as is made available to Company employees generally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3**Notwithstanding anything contained in this Agreement to the contrary, if the Covered Officer breaches any of the obligations under **<u>Sections 10</u>** or **<u>11</u>** hereof, and such breach is not substantially cured in all material respects within thirty (30) days after the Company or the Board gives written notice thereof to the Covered Officer, no further payments or other benefits will be payable to the Covered Officer under this **<u>Section 5</u>**.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.4**The Company shall be entitled to set-off any amounts owed to the Company by the Covered Officer against any Change in Control Benefits payable by the Company to the Covered Officer pursuant to this Plan.

**6.** **Release Required; Timing of Payments.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1**Prior to the payment of any Severance Benefits or Change in Control Benefits, a Covered Officer shall execute and allow to become effective a standard employment release agreement (the "Release") releasing the Company (and the other Released Parties named in the Release) from any and all claims Covered Officer (or any other Releasors, as defined in the Release) may have against such entities related to or arising in connection with events occurring prior to signing the release, including relating to or in connection with a Covered Officer's employment, the terms of such employment, and termination thereof within the time frame set forth therein, but not later than sixty (60) days following a Covered Officer's Separation from Service (the date such Release becomes effective, the "**Release Effective Date**"). No Severance Benefits shall be paid or provided prior to the Release Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2**The Release shall be in substantially the form attached hereto as Exhibit A, and shall specifically relate to all of a Covered Officer's rights and claims in existence at the time of such execution and shall confirm a Covered Officer's continuing obligations to the Company (including but not limited to obligations under any confidentiality, non-compete and/or non-solicitation agreement with the Company). Unless a Change in Control has occurred, the Board, in its sole discretion, may modify the form of the required Release to comply with applicable law and shall determine the form of the required Release, which may be incorporated into a termination agreement or other agreement with the Covered Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3**Within five (5) days following the Release Effective Date, the Company will pay (or commence payment of) the Severance Benefits or Change in Control Benefits, as the case may be, a Covered Officer would otherwise have received on or prior to such date but for the delay in payment related to the effectiveness of the Release, with the balance of benefits being paid as originally scheduled. Notwithstanding the foregoing, if the Company (or, if applicable, the successor entity thereto) determines that any of the Severance Benefits or Change in Control Benefits constitute "deferred compensation" under Section 409A (defined below), then, solely to the extent necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A, no Severance Benefits or Change in Control Benefits will be paid prior to the 60th day following a Covered Officer's Separation from Service. On the 60th day following the date of Separation from Service, the Company will pay to a Covered Officer the Severance Benefits or Change in Control Benefits that the Covered Officer would otherwise have received on or prior to such date, with the balance of the Severance Benefits or Change in Control Benefits being paid as originally scheduled.

**7.** **Expenses of Enforcement.**

A Covered Officer shall not be required to incur the expenses associated with the enforcement of the Covered Officer's rights under this Agreement by litigation or other legal action. Therefore, the Company shall pay, or cause to be paid, on a current basis, reasonable attorney fees and expenses incurred by a Covered Officer to enforce the provisions of this Agreement. The Covered Officer shall be required to repay any such amounts to the Company to

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the extent that a court of competent jurisdiction issues a final and non-appealable order setting forth the determination that the claims of the Covered Officer were frivolous.

**8.** **Limitation on Benefits Payable.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1**Notwithstanding anything herein to the contrary, if the amounts payable to a Covered Officer, either alone or together with other payments and benefits that the Covered Officer has the right to receive from the Company or any of its Affiliates, would constitute a "parachute payment" under Section 280G of the Code,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)such payments and benefits shall be reduced by the amount, if any, that is the minimum necessary to result in no portion of the payments or benefits constituting a parachute payment under Section 280G of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)to the extent that the Covered Officer has been employed with the Company and its Affiliates in the Covered Officer's current position for less than three full calendar years, such payments and benefits shall be reduced as described in section 8.1(a) if the Company's then current independent registered public accounting firm (the "Accounting Firm") determines that such reduction would result in the Covered Officer retaining, on an after-tax basis (taking into account federal, state and local income taxes, employment, social security and Medicare taxes, the imposition of the excise tax imposed by Section 4999 of Code or any interest or penalties with respect to such excise tax (such excise tax, together with any such interest or penalties, are collectively referred to as the "Excise Tax"), and all other taxes, determined by applying the highest marginal rate under Section 1 of the Code and under state and local laws which applied (or is likely to apply) to the Covered Officer's taxable income for the tax year in which the transaction which causes the application of Section 280G of the Code occurs, or such other rate(s) as the Accounting Firm determines to be likely to apply to the Covered Officer in the relevant tax year(s) in which any of the payments and benefits is expected to be made taxable) a larger amount as a result of such reduction than the Covered Officer would receive, on a similar after tax basis, if the Covered Officer received all of such payments and benefits.

If the payments and benefits are to be reduced, the reduction shall occur in the following order: (1) reduction of cash payments for which the full amount is treated as a "parachute payment" (as defined under Section 280G of the Code and the regulations thereunder); (2) cancellation of accelerated vesting (or, if necessary, payment) of cash awards for which the full amount is not treated as a parachute payment; (3) reduction of any continued employee benefits; and (4) cancellation or reduction of any accelerated vesting of equity awards. In selecting the equity awards (if any) for which vesting will be cancelled or reduced under clause (4) of the preceding sentence, awards shall be selected in a manner that maximizes the after-tax aggregate amount of reduced payments and benefits provided to the Covered Officer, provided that if (and only if) necessary in order to avoid the imposition of an additional tax under Section 409A, awards instead shall be selected in the reverse order of the date of grant. If two or more equity awards are granted on the same date, each award will be reduced on a pro-rata basis.

The Covered Officer and the Company shall furnish such documentation and documents as may be necessary for the Accounting Firm to perform the requisite Section 280G of the Code computations and analysis, and the Accounting Firm shall provide a written report of its

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determinations, hereunder, including detailed supporting calculations. If the Accounting Firm determines that aggregate payments and benefits should be reduced as described above, it shall promptly notify the Covered Officer and the Company to that effect. In the absence of manifest error, all determinations made by the Accounting Firm under this **<u>Section 8.1</u>** shall be binding on the Covered Officer and the Company and shall be made as soon as reasonably practicable and in no event later than thirty (30) days following the later of the Covered Officer's Termination Date or the date of the transaction which causes the application of Section 280G of the Code. The Company shall bear all costs, fees and expenses of the Accounting Firm.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2**To the extent requested by the Covered Officer, the Company shall cooperate with the Covered Officer in good faith in valuing, and the Accounting Firm shall take into account the value of, services to be provided by the Covered Officer (including the Covered Officer agreeing to refrain from performing services pursuant to a covenant not to compete under any Non-Competition and Non-Disclosure Agreement) before, on or after the date of the transaction which causes the application of Section 280G of the Code such that payments in respect of such services may be considered to be "reasonable compensation" within the meaning of Q&A-9 and Q&A-40 to Q&A-44 of the final regulations under Section 280G of the Code and/or exempt from the definition of the term "parachute payment" within the meaning of Q&A-2(a) of such final regulations in accordance with Q&A-5(a) of such final regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3**If it is ultimately determined (by IRS private letter ruling or closing agreement, court decision or otherwise) that the Covered Officer's payments and benefits were reduced by too much or by too little in order to accomplish the purpose of this **<u>Section 8</u>**, the Covered Officer and the Company shall promptly cooperate to correct such underpayment or overpayment in a manner consistent with the purpose of this **<u>Section 8</u>**.

**9.** **Withholding of Taxes; Tax Year.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1**The Company may withhold from any amounts payable under this Plan all federal, state, city, or other taxes as the Company is required to withhold pursuant to any applicable law, regulation or ruling.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2**If a payment under any provision of the Plan is payable during a period that includes more than one taxable year a Covered Officer shall have no right to specify the taxable year during which such payment shall be made.

**10.** **Confidential Information.**

Each Covered Officer agrees that the Covered Officer will not, during the Term or at any time thereafter, either directly or indirectly, disclose or make known to any other person, firm, or corporation any confidential information, trade secret or proprietary information of the Company in violation of the Non-Disclosure and Non-Competition Agreement between the Company and the Covered Officer, the continued effectiveness of which shall be a condition to participation in this Plan (each, the "**Non-Competition and Non-Disclosure Agreement**").

**11.** **Non-Competition.** 

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Payment of any Severance Benefits or Change in Control Benefits under this Plan is contingent upon a Covered Officer's compliance with the Non-Competition and Non-Disclosure Agreement, and each Covered Officer hereby acknowledges and reaffirms that, during the Term, and for the period set forth in the Non-Competition and Non-Disclosure Agreement, the Covered Officer shall not compete with the Company, as more fully set forth in the Non-Competition and Non-Disclosure Agreement.

**12.** **Death of Covered Officer.** 

A Covered Officer shall be entitled, to the extent permitted under any applicable law, to select and change a beneficiary or beneficiaries to receive any compensation or benefits payable hereunder following the Covered Officer's death by giving the Company written notice thereof. In the absence of such a selection, any compensation or benefit payable under this Plan following the death of the Covered Officer shall be payable to the Covered Officer's spouse or, if the Covered Officer does not have a surviving spouse, to the Covered Officer's estate. In the event of a Covered Officer's death or a judicial determination of a Covered Officer's incompetence, reference in this Plan to the Covered Officer shall be deemed, where appropriate, to refer to the Covered Officer's beneficiary, estate or other legal representative.

**13.** **Arbitration.** 

The following arbitration rules shall apply to this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.1**In the event that a Covered Officer's employment shall be terminated by the Company during the Term or the Company shall withhold payments or provision of benefits because the Covered Officer is alleged to be engaged in activities prohibited by **<u>Section 10</u>** or **<u>11</u>** hereof or for any other reason, the Covered Officer shall have the right, in addition to all other rights and remedies provided by law, at Covered Officer's election either to seek arbitration in the metropolitan area of Akron, Ohio, under the Commercial Arbitration Rules of the American Arbitration Association by serving a notice to arbitrate upon the Company or to institute a judicial proceeding, in either case within one hundred and twenty (120) days after having received notice of termination of Covered Officer's employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.2**Without limiting the generality of **<u>Section 13.1</u>**, this **<u>Section 13.2</u>** shall apply to termination asserted to be for "Cause" or for "Good Reason". In the event that (i) the Company terminates a Covered Officer's employment for Cause, or (ii) a Covered Officer resigns employment for Good Reason, the Company and the Covered Officer each shall have thirty (30) days to demand of the American Arbitration Association in writing (with a copy to the other party hereto) that arbitration be commenced to determine whether Cause or Good Reason, as the case may be, existed with respect to such termination or resignation. The parties shall have thirty (30) days from the date of such written request to select such third party arbitrator. Upon the expiration of such thirty (30) day period, the parties shall have an additional thirty (30) days in which to present to such third party arbitrator such arguments, evidence or other material (oral or written) as may be permitted and in accordance with such procedures as may be established by such third party arbitrator. The third party arbitrator shall furnish a written summary of his findings to the parties hereto not later than thirty (30) days following the last day on which the parties were entitled to present arguments, evidence or other material to the third party arbitrator.

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During the period of resolution of a dispute under this Section 13.2, a Covered Officer shall receive no compensation by the Company (other than payment by the Company of premiums due before or during such period on any insurance coverage applicable to the Covered Officer hereunder) and the Covered Officer shall have no duties to perform for the Company. If the arbitrator determines that the Company did not have Cause to terminate the Covered Officer's employment or that the Covered Officer had Good Reason to resign his or her employment, as the case may be, the Company shall promptly pay the Covered Officer in a lump sum any compensation to which the Covered Officer would have been entitled, for the period commencing with the date of the Covered Officer's termination or resignation and ending on the date of such determination, had his or her employment not been terminated or had he or she not resigned.

**14.** **Employment at Will.**

The adoption and maintenance of the Plan is not a contract between the Company and its employees that gives any employee the right to be retained in its employment. Likewise, it is not intended to interfere with the rights of an Employer to terminate an employee's employment at any time with or without notice and with or without cause or to interfere with an employee's right to terminate his employment at any time. Each Covered Officer acknowledges and confirms that such Covered Officer's employment by the Company is employment-at-will, and that such employment-at-will status cannot be modified except in a specific writing that has been authorized or ratified by the Board.

**15.** **Employment Actions.**

This Plan is not intended to create, and will not be construed as creating, an express or implied contract of employment. Nothing contained herein will prevent the Company at any time from terminating a Covered Officer's right and obligation to perform services to the Company or prevent the Company from removing a Covered Officer from any position which the Covered Officer holds with the Company, provided, however, that no such action shall affect the obligation of the Company to make payments and provide benefits if and to the extent required under this Plan. The payments and benefits provided in this Plan will be full and complete liquidated damages for any such employment action taken by the Company.

**16.** **Amendment, Termination.**

Subject to the restrictions set forth in this **<u>Section 16</u>**, the Board of Directors may amend or terminate the Plan at any time, provided, however, that (i) no amendment or Plan termination shall have effect to the extent that it would reduce the benefit otherwise payable under the Plan to a Covered Officer whose employment is terminated within 180 days after the date of such amendment or Plan termination, and (ii) if a Covered Officer had entered into a Severance and Change in Control Agreement or a Change in Control Agreement with the Company that was effective on the day preceding the Effective Date but was superseded by this Plan and the Plan is terminated or amended in a manner that materially reduces the severance benefits provided hereunder, the Company shall re-enter into such an agreement with the Covered Officer on the same substantive terms and conditions.

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**17.** **Adoption of Plan by Affiliates.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.1**With the written approval of the Compensation Committee, any entity that is an Affiliate may adopt the Plan by appropriate action of its board of directors or noncorporate counterpart, as evidenced by a written instrument executed by an authorized officer of such entity or an executed adoption agreement (approved by the board of directors or noncorporate counterpart of the Affiliate), agreeing to be bound by all the terms, conditions and limitations of the Plan and providing all information required by the Compensation Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.2**The provisions of the Plan shall apply separately and equally to each adopting Affiliate in the same manner as is expressly provided for the Company, except that the power to appoint the Compensation Committee and the power to amend or terminate the Plan shall be exercised by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.3**For purposes of the Code and ERISA, the Plan as adopted by the Affiliates shall constitute a single plan rather than a separate plan of each Affiliate.

**18.** **Notices.**

For purposes of this Plan, all communications provided for herein shall be in writing and shall be deemed to have been duly given when hand delivered or mailed by United States Express mail, postage prepaid, addressed as follows:

If the notice is to the Company:

Myers Industries, Inc.

1293 South Main Street

Akron, OH 44301

Attn: Chair of the Compensation Committee

With a copy to:

Myers Industries, Inc.

1293 South Main Street

Akron, OH 44301

Attn: Senior Legal Officer

If the notice is to a Covered Officer:

The residential address reflected in the Company's employment files for the Covered Officer

Or, to such other address as the Company or a Covered Officer may furnish in writing to the other in accordance herewith, provided that such notice of change of address shall be effective only upon actual receipt.

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**19.** **Assignment; Binding Effect.**

This Plan shall be binding up and inure to the benefit of the Company and the Covered Officers and their respective successors, heirs (in the case of Covered Officers) and permitted assigns. The Plan shall be binding upon any successor of the Company. Further, the Board shall not authorize a Change in Control that is a Merger or a sale transaction unless the Company's successor or purchaser agrees to take such actions as are necessary to expressly assume the liabilities, obligations and duties of the Company, as contained in this Agreement, either contractually or as a matter of law, and cause all Covered Officers to be paid or provided all benefits under the terms of the Plan as in effect immediately prior to the Change in Control. The Company further agrees that, in the event of a Merger or sale or transfer of assets constituting a Change in Control, it shall be a condition precedent to the consummation of any such transaction that the successor, assignee or transferee expressly assume the liabilities, obligations, and duties of the Company hereunder.

No rights, benefits, or obligations of a Covered Officer under this Agreement may be assigned or transferred by the Covered Officer other than the Covered Officer's rights to compensation and benefits transferred by will or operation of law, and except as provided in this **<u>Section 19</u>**. No benefits hereunder shall be subject to anticipation by a Covered Officer, to attachment by, interference with, or control of any creditor of a Covered Officer, or to being taken or reached by any legal or equitable process in satisfaction of any debt or liability of a Covered Officer prior to its actual receipt by the Covered Officer. Any attempted conveyance, transfer, assignment, mortgage, pledge, or encumbrance of the benefits hereunder prior to payment thereof shall be void.

**20.** **Invalid Provisions.**

Any provision of this Plan that is prohibited or unenforceable shall be ineffective to the extent, but only to the extent, of such prohibition or unenforceability without invalidating the remaining portions hereof and such remaining portions of this Plan shall continue to be in full force and effect. In the event that any provision of this Plan shall be determined to be invalid or unenforceable, the Company will in good faith seek to replace such provision with another provision that will be valid or enforceable and that is as close as practicable to the provisions held invalid or unenforceable.

**21.** **Alternate Satisfaction of Company's Obligations.**

In the event this Plan provides for payments or benefits to or on behalf of a Covered Officer which cannot be provided under the Company's benefit plans, policies or arrangements either because such plans, policies or arrangements no longer exist or no longer provide such benefits or because provision of such benefits to a Covered Officer would adversely affect the tax qualified or tax advantaged status of such plans, policies or arrangements for the Covered Officer or other participants therein, the Company may provide the Covered Officer with an "Alternative Benefit", as defined in this **<u>Section 21</u>**, in lieu thereof. The Alternative Benefit is a benefit or payment which places the Covered Officer and the Covered Officer's dependents or beneficiaries, as the case may be, in at least as good of an economic position as if the benefit promised by this Plan (a) were provided exactly as called for by this Plan, and (b) had the favorable economic, tax and legal characteristics customary for plans, policies or arrangements of that type. Furthermore, if such

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adverse consequence would affect a Covered Officer or the Covered Officer's dependents, the Covered Officer shall have the right to require that the Company provide such an Alternative Benefit. Notwithstanding the foregoing, if provision of an alternative benefit would constitute a violation of Internal Revenue Code Section 409A, the parties will be left to their legal remedies.

**22.** **Administration of Plan.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.1**The general administration of the Plan on behalf of the Company (as plan administrator under Section 3(16)(A) of ERISA) shall be placed with the Compensation Committee. The Compensation Committee shall have the full discretionary power and authority to construe, interpret and administer the Plan, to make eligibility determinations, to correct deficiencies in the Plan and to supply omissions. All decisions, actions and interpretations of the Compensation Committee shall be final, binding and conclusive upon the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.2**The Compensation Committee shall maintain such records regarding the fiscal and other transactions of the Plan and such other data as may be required to carry out its function under the Plan and to comply with applicable laws. The Company shall prepare and file as required by law or regulation all reports, forms, documents, and other items required by ERISA, the Code and other relevant statutes, each as amended from time to time, and all regulations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.3**The Plan shall be "unfunded" for the purposes of ERISA and the Code and the benefits and payments to be paid under the plan shall be paid out of the general assets of the Company as and when payable under the Plan. All Covered Officers shall be solely unsecured creditors of the Company. If the Company decides in its sole discretion to establish any advance reserve on its books against the future expense of the potential payments hereunder, or, if the Company decides in its sole discretion to fund a trust under the Plan, such reserve or trust shall not under any circumstances be deemed to be an asset of the Plan.

**23.** **Entire Agreement; Integration**

Except for the Non-Competition and Non-Disclosure Agreement between each Covered Officer and the Company or an Affiliate, and subject to the provisions of **<u>Section 24</u>** hereof, this Plan supersedes all prior and contemporaneous agreements, representations, and understandings, whether oral or written, with regard to the terms and conditions applicable to a Covered Officer's separation from the Company, including the provision of any Severance Benefits or Change in Control Benefits in connection therewith.

**24.** **Non-Exclusivity of Rights.**

Notwithstanding the foregoing provisions of **<u>Section 23</u>**, nothing in this Plan shall prevent or limit a Covered Officer's continuing or future participation in any benefit, bonus, incentive or other plan, program, policy or practice provided by the Company or its Affiliates for senior officers. Amounts which a Covered Officer or a Covered Officer's dependents or beneficiaries, as the case may be, are otherwise entitled to receive under any such plan, policy, practice or program shall not be reduced by this Plan unless specifically provided.

**25.** **Claims Procedure**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25.1**<u>Claims Review</u>. Any Covered Officer or Beneficiary (the claimant) who wishes to request a review of a claim for benefits under the Plan or who wishes an explanation of a benefit or its denial may direct to the Compensation Committee a written request for such review within 120 days of the denial. The Compensation Committee or its delegate shall respond to the request by issuing a notice to the claimant as soon as possible, but in no event later than 90 days (45 days for disability claims) from the date of receipt of the request, subject to an extension of an additional 90 days (60 days for a disability claim) in special cases. This notice furnished by the claims reviewer shall be written in a manner calculated to be understood by the claimant, shall be posted by first-class mail to the address of record of the claimant and shall include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The specific reason or reasons for any denial of benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The specific Plan provisions on which any denial is based;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)A description of any further material or information which is necessary for the claimant to perfect his or her claim and an explanation of why the material or information is needed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)To the extent that the appeal relates to a Disability claim, a discussion of the decision, including an explanation of the basis for disagreeing with or not following (1) the views presented by the claimant to the Plan of the health care professionals treating the claimant and vocational professionals who evaluated the claimant; (2) the views of medical or vocational experts whose advice was obtained on behalf of the Plan in connection with a claimant's adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination; and (3) any disability determination regarding the claimant presented by the claimant to the Plan made by the Social Security Administration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)An explanation of the Plan's claim appeals procedure; and

If the Compensation Committee or its delegate denies the claim or fails to respond to the claimant's written request for a review within 180 days of its receipt, the claimant shall be entitled to proceed to the claim appeals procedure described in Section 25.2. If the claimant does not respond to the notice within 60 days from receipt of the notice, the claimant shall be considered satisfied in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25.2**<u>Appeals Procedure</u>. In the event that the claimant wishes to appeal the claim review denial, the claimant or his or her duly authorized representative may submit to the Compensation Committee, within 60 days of his or her receipt of the notice, a written notification of appeal of the claim denial. The notification of appeal of the claim denial shall permit the claimant or his or her duly authorized representative to utilize the following claim appeals procedures:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)To review pertinent documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)To submit issues and comments in writing to which the Compensation Committee or its delegate shall respond;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)To the extent that the appeal relates to a Disability claim, a discussion of the

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decision, including an explanation of the basis for disagreeing with or not following (1) the views presented by the claimant to the Plan of the health care professionals treating the claimant and vocational professionals who evaluated the claimant; (2) the views of medical or vocational experts whose advice was obtained on behalf of the Plan in connection with a claimant's adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination; and (3) any disability determination regarding the claimant presented by the claimant to the Plan made by the Social Security Administration; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)A statement of the Covered Officer's right to bring a civil action under Section 502(a) of ERISA.

The Compensation Committee or its delegate shall furnish a final written decision on formal review not later than 60 days after receipt of the notification of appeal, unless special circumstances require an extension of the time for processing the appeal or the appeal relates to a Disability claim. In no event, however, shall the Compensation Committee or its delegate respond later than 120 days after a request for an appeal. The decision on the appeal shall be written in a manner calculated to be understood by the claimant, shall include specific reasons for the decision, shall contain specific references to the pertinent Plan provisions on which the decision is based, and shall include any other topics required to be addressed for a Disability claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25.3** Discretion Regarding Claims and Appeals. The Compensation Committee, or any individual or committee to whom responsibility for claims and appeals has been delegated, shall have complete discretion in deciding such claims and appeals and any such decision shall be final, conclusive and binding upon the claimant.

**26.** **Compliance with Section 409A of the Code.**

Certain payments contemplated by this Plan may be considered "deferred compensation" for purposes of Section 409A of the Code. Accordingly, the following provisions shall be in effect for purposes of avoiding or mitigating any adverse tax consequences to the Covered Officer under Section 409A:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26.1**A termination of employment will not be deemed to have occurred for purposes of any provision of this Plan providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a "separation from service" within the meaning of Code Section 409A, for purposes of any such provision of this Plan, references herein to "termination", "termination of employment" or similar terms will mean "separation from service".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26.2**The intent of the Company and the Covered Officers is that payments and benefits under this Plan comply with or be exempt from Code Section 409A and the regulations and guidance promulgated thereunder and, accordingly, to the maximum extent permitted, this Plan will be interpreted to be in compliance therewith or exempt therefrom. In no event whatsoever will the Company be liable for any additional tax, interest or penalty that may be imposed on a Covered Officer by Code Section 409A or damages for failing to comply with Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26.3**To the extent any provisions of this Plan would otherwise contravene one or more

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requirements or limitations of Code Section 409A, then the Company and a Covered Officer may, within any applicable time period provided under the Treasury Regulations issued under Code Section 409A, effect through mutual agreement the appropriate amendments to those provisions which are necessary in order to bring the provisions of this Plan into compliance with Code Section 409A, provided such amendments shall not reduce the dollar amount of any such item of deferred compensation or adversely affect the vesting provisions applicable to such item or otherwise reduce the present value of that item. If any legislation is enacted during the term of this Plan which imposes a dollar limit on deferred compensation, then a Covered Officer will cooperate with the Company in restructuring any items of compensation under this Plan that are deemed to be deferred compensation subject to such limitation, provided such restructuring shall not reduce the dollar amount of any such item or adversely affect the vesting provisions applicable to such item or otherwise reduce the present value of that item.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26.4**Notwithstanding any provision to the contrary in this Plan, if (i) the Company, in its good faith discretion, determines that any payments or benefits described in this Plan would constitute non-exempt deferred compensation for purposes of Section 409A of the Code, and (ii) a Covered Officer is a "specified employee" (within the meaning of Section 409A of the Code and the Treasury Regulations thereunder) at the time of his or her termination of employment, then such payments or benefits shall not be made or paid to the Covered Officer prior to the earlier of (A) the expiration of the six (6) month period measured from the date of such "separation from service" or (B) the date of his death (the <sup>"</sup>**Delay Period")**. Upon the expiration of the Delay Period, all payments deferred pursuant to this **<u>Section 26.4</u>** shall be paid in a lump sum to the Covered Officer, and any remaining payments due under this Plan shall be paid in accordance with the normal payment dates specified for them herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26.5**For purposes of Code Section 409A, a Covered Officer's right to receive any installment payment pursuant to this Plan will be treated as a right to receive a series of separate and distinct payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26.6**Whenever a payment under this Plan specifies a payment period with reference to a number of days (e.g., "payment will be made within thirty (30) days following the Termination Date"), the actual date of payment within the specified period will be determined solely by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26.7**Notwithstanding any other provision herein to the contrary, in no event will any payment that constitutes non-exempt deferred compensation subject to Code Section 409A, as determined in good faith by the Company, be subject to offset, counterclaim, or recoupment by any other amount payable to a Covered Officer unless otherwise permitted by Code Section 409A.

To the extent that reimbursements or other in-kind benefits under this Plan constitute non-exempt deferred compensation for purposes of Code Section 409A, (i) all expenses or other reimbursements hereunder shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by a Covered Officer, (ii) any right to such reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (iii) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year.

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**27.** **Miscellaneous.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**27.1** **Number and Gender.** As used in the Plan, unless the context otherwise expressly requires to the contrary, references to the singular include the plural, and vice versa; references to the masculine include the feminine and neuter; references to "including" means "including (without limitation)"; and references to Sections and clauses mean the sections and clauses of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**27.2** **Headings.** The headings of Sections herein are included solely for convenience, and if there is any conflict between such headings and the text of the Plan, the text shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**27.3** **Severability.** Each provision of the Plan may be severed. If any provision is determined to be invalid or unenforceable, that determination shall not affect the validity or enforceability of any other provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**27.4** **Waiver of Breach.** The failure at any time to enforce any of the provisions of this Plan or to require performance of any of the provisions of this Plan shall in no way be construed to be a waiver of such provisions or to affect either the validity of this Plan or any part of this Plan or the right to enforce each and every provision of this Plan in accordance with the terms of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**27.5** **Governing Law.** To the extent legally required, the Code and ERISA shall govern the Plan and, if any provision hereof is in violation of any applicable requirement thereof, the Company reserves the right to retroactively amend the Plan to comply therewith. To the extent not governed by the Code and ERISA, the provisions of the Plan shall be governed by the laws of the State of Ohio, without reference to rules relating to conflicts of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**27.6** **No Mitigation or Offset.** The Company agrees that if a Covered Officer's employment with the Company or any Affiliate terminates during the Term of the Plan, the Covered Officer is not required to seek other employment. Except as provided in **<u>Section 4.1(b)</u>** and **<u>Section 5.1(b)</u>** with respect to the Health Care Coverage, amounts due the Covered Officer pursuant to this Plan shall not be offset by any remuneration attributable to any subsequent employment a Covered Officer may obtain.

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**<u>EXHIBIT A</u>**

**FORM OF RELEASE AGREEMENT**

In consideration of receiving certain benefits under the Myers Industries, Inc. Senior Officer Severance Plan adopted effective February 21, 2020 (the "Plan"), I have agreed to sign this Release. I understand that I am not entitled to benefits under the Plan unless I sign this Release.

I understand that this Release, together with the Agreement, constitutes the complete, final and exclusive embodiment of the entire agreement between Myers Industries, Inc. (the "Company"), affiliates of the Company, and me with regard to the subject matter hereof. I am not relying on any promise or representation by the Company that is not expressly stated therein. Certain capitalized terms used in this Release and not defined herein are defined in the Plan.

Except as otherwise set forth in this Release, I, on behalf of myself and my heirs, executors, representatives, administrators, agents, insurers, and assigns (collectively, the "Releasors") hereby generally, completely and irrevocably waive, release, and discharge the Company and its current and former directors, officers, employees, stockholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates, and assigns (collectively, the "Released Parties") from any and all claims, liabilities obligations, and expenses (including attorneys' fees), both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to my signing this Release (collectively, the "Released Claims"). The Released Claims include, but are not limited to: (1) all claims arising out of or in any way related to my employment with the Company or its affiliates, or the termination of that employment; (2) all claims related to my compensation or benefits, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company or its affiliates; (3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (4) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (5) all federal, state, and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys' fees, or other claims arising under the federal Civil Rights Act of 1964, the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 ("ADEA"), the federal Employee Retirement Income Security Act of 1974 (ERISA), the federal Family and Medical Leave Act (FMLA), the federal Equal Pay Act, the federal Civil Rights Act of 1991, Section 1981 of U.S.C. Title 42, the federal Worker Adjustment and Retraining Notification (WARN) Act, the federal National Labor Relations Act (NLRA), the federal Older Workers Benefit Protection Act, the federal Fair Labor Standards Act, or any Ohio labor and employment law (including any law concerning unlawful and unfair labor and employment practices), all including any amendments and their respective implementing regulations.

Notwithstanding the foregoing, the following are not included in the Released Claims (the "Excluded Claims"): (1) any rights or claims for indemnification I may have pursuant to any written indemnification agreement with the Company to which I am a party, the Articles of Incorporation, Code of Regulations, or other organizational charter of the Company, or under

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applicable law; (2) any rights related to vested securities of the Company that were granted to me during the course of my employment with the Company or any shares of capital stock or other securities of the Company that I purchased other than pursuant to a Company stock option or stock plan; or (3) any rights which are not waivable as a matter of law. In addition, nothing in this Release prevents me from filing, cooperating with, or participating in any proceeding before the Equal Employment Opportunity Commission, the Department of Labor, or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer laws related to employment, against the Company, except that I hereby waive my right to any monetary benefits in connection with any such claim, charge or proceeding. I hereby represent and warrant that, other than the Excluded Claims, I am not aware of any claims I have or might have against any of the Released Parties that are not included in the Released Claims.

I acknowledge that I am knowingly and voluntarily agreeing to all of the terms and conditions set forth in this Release, including waiving and releasing any rights I may have under the ADEA. I also acknowledge that the consideration given for the Released Claims is in addition to anything of value to which I was already entitled. I further acknowledge that I have been advised by this writing, as required by the ADEA, that: (a) the Released Claims do not apply to any rights or claims that arise after the date I sign this Release; (b) I should consult with an attorney prior to signing this Release (although I may choose voluntarily not to do so); (c) I have twenty-one (21) days to consider this Release (although I may choose to voluntarily sign it sooner); (d) I have seven (7) days following the date I sign this Release to revoke the Release by providing written notice to an officer of the Company; and (e) the Release will not be effective until the date upon which the revocation period has expired unexercised, which will be the eighth day after I sign this Release (the "Effective Date").

I hereby represent that I have been paid all compensation owed (except for any Severance Benefits or Change in Control Benefits I may be owed under the Plan) and for all hours worked, I have received all the leave and leave benefits and protections for which I am eligible, and I have not suffered any on-the-job injury for which I have not already filed a workers' compensation claim.

I hereby agree not to disparage the Company, or any other Released Party, in any manner likely to be harmful to its or their business, business reputation, or personal reputation; provided, however, that I will respond accurately and fully to any question, inquiry or request for information when required by legal process.

I acknowledge that to become effective, I must sign and return this Release to the Company so that it is received not later than twenty-one (21) days following the date it is provided to me, and I must not revoke it thereafter.

I HAVE READ THIS RELEASE AGREEMENT IN ITS ENTIRETY AND UNDERSTAND ALL OF ITS TERMS. I UNDERSTAND THAT THIS RELEASE AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS, EVEN THOSE UNKNOWN CLAIMS THAT, IF KNOWN BY ME, WOULD AFFECT MY DECISION TO ACCEPT THIS RELEASE AGREEMENT.

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Name:

Date:

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## Ex-10

**<u>Exhibit 10.21</u>**

**<u>NON-COMPETITION AND CONFIDENTIALITY AGREEMENT</u>**

THIS NON-COMPETITION and CONFIDENTIALITY AGREEMENT (this "**Agreement**") is entered into effective as of <u>February 8</u>, 2021 between Myers Industries, Inc., an Ohio Corporation (the "**Company**") and **Paul Johnson** (the "**Employee**").

**<u>RECITALS:</u>**

1. The Company is a diversified international manufacturer of polymer products for the industrial, agricultural, automotive, commercial and consumer markets and distributor of tools, equipment and supplies for tire service and under vehicle repair. The business of the Company is operated by the Company itself and through its various operating divisions, subsidiaries and other affiliated entities, all together with the Company being collectively referred to in this Agreement as the "Company Group."

2. Employee is being employed as <u>Vice President - MTS</u> by the Company, and the execution of this Agreement is a condition of such employment.

3. The Company Group has acquired and established valuable and competitively sensitive information through its business, research, development and practices, which information is described more extensively herein, and is collectively referred to as the "Confidential Information." To protect the interests of the Company Group and the competitive advantage derived from the Confidential Information, it is necessary that such Confidential Information be kept secret and confidential.

4. The Employee, from and after the commencement of employment, will be engaged in activities such that the Employee will have extensive access to and become familiar with, and may develop or contribute to, some or all of the Confidential Information. In addition, Employee will have extensive contact with; and/or receive Confidential Information concerning, the customers of the Company Group. The Employee recognizes that the Confidential Information and the Company Group's customer relationships are vital to the success of the Company and that extensive, irreparable harm would result were such Confidential Information to be disclosed outside the Company Group or if Employee were to engage in certain activity which competes with the Company Group members.

NOW, THEREFORE, in view of the above and in consideration for the mutual covenants and promises set forth below, the parties agree as follows:

1.<u>Confidential Information</u>: For purposes of this Agreement, Confidential Information includes, but is not limited to, business plans and strategies, marketing plans and strategies, customer lists, customer purchasing information, customer contact information, product design and development information, methods of operation, technical services, non-public financial information, business development plans and strategies, system analyses, quality control programs and information, computer programs, software and hardware configurations, information regarding the terms of the Company Group's relationships with suppliers, pricing information, processes and techniques, creations, innovations, and any other information which the Company Group members may reasonably treat or designate as confidential from time to time. The Company believes that all Confidential Information constitutes trade secret information under applicable law. Employee shall, however, maintain the confidentiality of all Confidential Information whether or not ultimately determined to be a trade secret.

2.<u>Confidentiality and Non-Competition</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.<u>Covenants</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Employee acknowledges he/she is being provided access to the Confidential Information in order to enhance and maximize Employee's performance in his/her position. Employee further acknowledges that the Company Group would be irreparably injured and the good will of the

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Company Group would be irreparably damaged if Employee were to breach the covenants set forth in this Paragraph 2. Employee further acknowledges that the covenants set forth in this Paragraph 2 are reasonable in scope and duration and do not unreasonably restrict Employee's association with other business entities, either as an employee or otherwise as set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During Employee's employment and any time thereafter, except as may be required by law, Employee shall not, directly or indirectly, disclose, disseminate, reveal, divulge, discuss, copy or otherwise use or suffer to be used, any Confidential Information other than in the authorized scope of Employee's employment. Upon termination of employment, no matter what the reason for such termination, and at any other time upon the request of any Company Group member, Employee shall immediately return any and all Confidential Information, and all other materials, property and information in tangible or electronic form concerning the business and affairs of the Company Group and/or its customers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Employee agrees that during Employee's employment and for a period of twelve (12) months following the termination of such employment, no matter what the reason for such termination, Employee will not directly or indirectly, whether on Employee's own behalf or on behalf of any other person or entity, do or suffer any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Own, manage, control, participate in the ownership, management or control of, be employed or engaged by or otherwise affiliated or associated as a consultant, independent contractor or otherwise with, any person or business entity that competes with any member of the Company Group which Employee was employed by, provided services to and/or was otherwise sufficiently involved with to possess knowledge of its Confidential Information and/or its customer relationships (each a "Protected Company Group Member") in the United States or in any geographic area(s) outside the United States in which any such Protected Company Group Member has operations or sells products or services (the "Restricted Territory). Without limiting the generality and scope of the foregoing, any business entity or person providing products or services competitive with those of a Protected Company Group Member in the Restricted Territory from either inside or outside the Restricted Territory is deemed to be competing within the Restricted Territory. For purposes of this Agreement, the phrase "competes with" means providing services and products which are the same as, similar to, reasonably substitutable for, or otherwise capable of displacing the services and products of a Protected Company Group Member. Notwithstanding the foregoing, Employee's passive investment ownership of not more than one percent (1%) of the stock of any publicly traded corporation shall not be deemed a violation of this provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Solicit, provide, sell, attempt to provide or sell, or otherwise deliver or supply any products or services which compete with the products or services of a Protected Company Group Member to any person or business entity which is or was a customer or prospective customer of such Protected Company Group Member at any time during the last thirty-six (36) months of Employee's employment, nor shall Employee in any way assist any other person or entity in such activity. For purposes of this Agreement, (1) the phrase "products or services which compete with the products or services of a Protected Company Group Member means products or services which are the same as, similar to, reasonably substitutable for, or otherwise capable of displacing the products or services of such Protected Company Group Member; and (2) the term "prospective customer" means any person or entity a Protected Company Group Member solicited, called on or otherwise specifically identified as a target for the sale of its products or services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Solicit, hire or otherwise engage the services of any person who then currently is, or who at any time during Employee's employment was, an employee, consultant or independent contractor of any Company Group member, or otherwise encourage or

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induce any such person to discontinue his or her relationship with any Company Group member. Employee will not engage in any business relationship with any subcontractor, supplier or service provider of any Company Group member which interferes with such Company Group member's relationship with such subcontractor, supplier or service provider, or in any way causes such subcontractor, supplier or service provider to reduce, alter, modify or discontinue the business it (they) do(es) with a Company Group member.

3.<u>Inventions:</u> Employee hereby expressly agrees that all research discoveries, inventions and innovations (whether or not reduced to practice or documented), improvements, developments, methods, designs, analyses, drawings, reports and all similar or related information (whether patentable or unpatentable, and whether or not reduced to writing), Confidential Information and copyrightable works, and similar and related information (in whatever form or medium), which (1) either (i) relate to actual or anticipated business, research and development or existing or future products or services of any Company Group member or (ii) result from or are suggested by any work performed by the Employee of any Company Group member and (2) are conceived, developed, made or contributed to in whole or in part by the Employee during his employment ("Work Product-), shall be and remain the sole and exclusive property of the Company or of any Company Group member designated by the Company for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Work Made for Hire</u>. The Employee acknowledges that, unless otherwise agreed in writing by the Company, all Work Product eligible for any form of copyright, trademark or patent protection made or contributed to in whole or in part by the Employee within the scope of Employee's employment during the period of Employee's employment shall be deemed a "work made for hire" and shall be owned by the applicable Company Group member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)<u>Assignment of Proprietary Rights</u>. The Employee hereby assigns, transfers and conveys to the applicable Company Group member any Work Product designed by the Company, and shall assign, transfer and convey thereto, all right, title and interest in and to all inventions, ideas, improvements, designs, processes, patent rights, copyrights, trademarks, service marks, trade names, trade secrets, trade dress, data, discoveries and other proprietary assets and proprietary rights in and of the Work Product (the "Proprietary Rights") for the applicable Company Group member's exclusive ownership and use, together with all rights to sue and recover for past and future infringement or misappropriation thereof

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)<u>Further Instruments</u>. At the request of the Company or any Company Group member during Employee's employment and thereafter, the Employee will promptly and fully assist the Company Group member designated by the Company in effecting the purpose of the foregoing assignment, including but not limited to the further acts of executing any and all documents necessary to secure for the applicable Company Group member such Proprietary Rights and other rights to all Work Product and all confidential information related thereto, providing cooperation and giving testimony.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)<u>Inapplicability of Section 3 in Certain Circumstances</u>. The Company expressly acknowledges and agrees that, and the Employee is hereby advised that, this Section 3 does not apply to any invention for which no equipment, supplies, facilities, trade secret information or Confidential Information of any Company Group member was used and which was developed entirely on the Employee's own time, unless (i) the invention relates to the business of any Company Group member or its actual or demonstrably anticipated research or development or (ii) the invention results from or is suggested by any work performed or observed by the Employee for any Company Group member.

4.<u>Remedies:</u> Employee acknowledges that the restrictions contained in paragraphs 2 and 3 of this Agreement are reasonable in light of Employee's position and are necessary to protect the Company Group from unfair

------

competitive harm. Employee further acknowledges that any breach of this Agreement will result in immediate irreparable harm to the Company Group and that the Company shall be entitled to immediate injunctive relief upon any such breach, in addition to all other legal and equitable remedies the Company may have. This Agreement is to be construed as separate and independent from any other obligations and any claim by Employee asserted against the Company Group or any member thereof and shall not constitute a defense to the enforcement of this Agreement. In the event any court determines that the restrictions set forth herein are unreasonable or unenforceable for any reason, the court will enforce such restrictions to the fullest extent permitted by law.

5.<u>Position of Employment</u>: Employee expressly acknowledges that the obligations contained in paragraphs 2 and 3 of this Agreement shall remain in full force and effect during Employee's employment in any position for any Company Group member and with respect to any Confidential Information.

6.<u>Validity</u>: In the event any provision of this Agreement, or portion thereof, is held by a court of competent jurisdiction to be unreasonable, arbitrary, or against public policy, then such provision, or portion thereof, shall be enforced against the Employee to the extent the court deems to be reasonable or in accordance with public policy. In the event any provision of this Agreement shall for any reason be wholly invalid, or unenforceable in any respect, such invalidity shall not affect the validity of any remaining portion which shall remain in full force and effect as if the invalid portion was never part of this Agreement.

7.<u>Miscellaneous</u>: Employee acknowledges that the Employee has carefully read this entire Agreement and fully agrees with and understands all of the provisions hereof. This Agreement supersedes all prior agreements between any Company Group member and the Employee regarding the subject matter of this Agreement and constitutes the entire agreement between the parties with respect to such subject matter. The Employee further agrees that in executing this Agreement, the Employee has not relied on any written or oral representations, promises, conditions, or understandings of any Company Group member, express or implied, except as set forth herein. This Agreement may not be amended or modified other than in writing signed by the parties. This Agreement and any disputes arising thereunder shall be governed by the laws of the State of Ohio without regard to any State's choice of law, rules or principles. Employee and the Company expressly agree that any legal action arising out of or related to this Agreement will be brought exclusively in the state or federal courts located in Summit County, Ohio, and each party expressly consents to the jurisdiction of such courts and waives any and all objections to the jurisdiction or venue thereof. This Agreement may be assigned to any successor-in-interest to the business of the Company or any Company Group member without the consent of Employee, but may not be assigned by Employee to any third party. This Agreement is not a contract of employment for any definite period and Employee acknowledges that Employee's employment is terminable at-will.

IN WITNESS WHEREOF, the parties have hereunto executed this Agreement as of the date first set forth above.

**COMPANY**

**MYERS INDUSTRIES, INC.**

---

| | | |
|:---|:---|:---|
| Date: <u>February 21, 2021</u> | By: | /s/ Michael McGaugh |
|  |  | Michael McGaugh |
|  |  | President and Chief Executive Officer |

---

**EMPLOYEE**

---

| | |
|:---|:---|
| Date: <u>February 8, 2021</u> | /s/ Paul Johnson |
|  | Paul Johnson |

---

------

## Ex-10

**Exhibit 10.22**

**CHANGE IN CONTROL ADDENDUM**

**(Amended and Restated February 28, 2023)**

**<u>DEFINITIONS</u>**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Annual Bonus** | &nbsp;&nbsp;The cash bonus payable to Employee pursuant to a formal or informal Company annual bonus plan or individual bonus arrangement on a calendar year basis. |
| &nbsp;&nbsp;**Base Salary** | &nbsp;&nbsp;Employee's annual base salary as in effect from time to time. |
| &nbsp;&nbsp;**Change in Control** | &nbsp;&nbsp;The sale or disposition by the Company of substantially all of the assets of Myers Tire Supply. For purposes of this Agreement, a "Change in Control" will be deemed to occur on the day of a sale of assets ("CIC Effective Date"). |
| &nbsp;&nbsp;**Good Reason** | &nbsp;&nbsp;"Good Reason" means the occurrence of one or more of the following: (i) a material diminution in Employee's annual base salary; (ii) Employee is no longer Vice President – Distribution or his duties and responsibilities are otherwise materially diminished; or (iii) any change in the geographic location at which the Employee must perform his duties. |
| &nbsp;&nbsp;**Target Bonus** | &nbsp;&nbsp;Employee's Annual Bonus at the target level in effect during the applicable calendar year. |
| &nbsp;&nbsp;**Termination Date** | &nbsp;&nbsp;The date of your separation from employment with the Company within 12 months following a Change in Control due to a termination by the Company or your resignation for Good Reason.  |

---

**<u>CHANGE IN CONTROL PAYMENT</u>**

If a Change in Control occurs, Employee will be entitled to the following payments (the "CIC Benefits") upon the Employee's Termination Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. One and one-half (1.5) times his Base Salary in effect on the Termination Date, plus one and one-half (1.5) times his Target Bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Notwithstanding the terms of any equity incentive plan or award agreements, as applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. all outstanding equity-based compensation awards that do not vest based on the attainment of performance goals shall become fully vested and the restrictions thereon shall lapse; provided that, any delays in the settlement or payment of such awards that are set forth in the applicable award agreement and that are required under Section 409A shall remain in effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. all outstanding equity-based compensation awards that vest based on the attainment of performance goals shall become fully vested at the target level and the restrictions thereon shall lapse; provided that, any delays in the settlement or payment of such awards that are set forth in the applicable award agreement and that are required under Section 409A shall remain in effect.

Within thirty (30) days following the Termination Date, the Company will pay the CIC Benefits.

If applicable, payments will be made in a manner that complies with Section 280g of the Internal Revenue Code and Section 409A.

------

<u>/s/ Michael McGaugh</u> 

Michael McGaugh

Chief Executive Officer

Acknowledged and Accepted:

<u>/s/ Paul Johnson</u> <u>February 28, 2023</u> 

(Signature) Paul Johnson Date

------

## Ex-10

**Exhibit 10.23**

**Myers Industries, Inc.**

**Confidentiality Agreement**

This Confidentiality Agreement (the "**Agreement**"), effective as of <u>September 1, 2020</u> (the "**Effective Date**"), is entered into by and between **Myers Industries, Inc.** (the "**Disclosing Party**") and <u>Jeffrey J. Baker</u> (the "**Recipient**", and together with the Disclosing Party, the "**Parties**", and each, a "**Party**").

WHEREAS, in connection with the evaluation of a potential business relationship between the Disclosing Party or one of its subsidiaries and/or affiliates and the Recipient (the "**Purpose**"), the Recipient desires to receive certain information from the Disclosing Party that is non-public, confidential, or proprietary in nature; and

WHEREAS, the Disclosing Party desires to disclose such information to the Recipient, subject to the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants, terms, and conditions set forth herein, the Parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Confidential Information</u>. Except as set forth in <u>Section 2</u> below, "**Confidential Information**" means all non-public, confidential, or proprietary information disclosed before, on, or after the Effective Date, by or on behalf of the Disclosing Party to the Recipient which relates to the Purpose, whether disclosed orally or disclosed or accessed in written, electronic or other form or media, and whether or not marked, designated, or otherwise identified as "confidential," and all notes, analyses, summaries, and other materials (the "**Notes**") prepared by or for the Recipient that contain, are based on, or otherwise reflect or are derived, in whole or in part, from any of the foregoing. "**Confidential Information**" shall not include information that: (a) is or becomes generally available to and known by the public other than as a result of any act or omission by the Recipient; (b) is or becomes available to the Recipient on a non-confidential basis from a third-party source that was not legally or contractually restricted from disclosing such information; (c) was known by or in the possession of the Recipient, as established by documentary evidence, prior to being disclosed by or on behalf of the Disclosing Party; or (d) was or is independently developed by the Recipient, as established by documentary evidence, without reference to or use of any Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Recipient Obligations</u>. The Recipient shall: (a) not disclose any Confidential Information to any third party; (b) use strict care to prevent unauthorized use or disclosure of Confidential Information; (c) not use Confidential Information, or permit it to be accessed or used, for any purpose other than the Purpose; (d) promptly notify the Disclosing Party of any unauthorized disclosure of Confidential Information or other breaches of this Agreement by the Recipient of which the Recipient has knowledge; and (e) fully cooperate with the Disclosing Party in any effort undertaken by the Disclosing Party to enforce its rights related to any such unauthorized disclosure. In addition, except as required by applicable law, or otherwise as mutually agreed in writing by the Parties, the Recipient shall not disclose to any third party: (a) that the Confidential Information has been made available to the Recipient; (b) that discussions may be or are underway regarding the Purpose, including the status thereof; or (c) any terms, conditions, or other arrangements that are being discussed or negotiated in relation to the Confidential Information or the Purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Required Disclosure</u>. If the Recipient is required by applicable law to disclose any Confidential Information, prior to making any such disclosure, the Recipient shall provide the Disclosing Party with: (a) prompt written notice of such requirement so that the Disclosing Party may seek a protective order or other remedy; and (b) reasonable assistance in opposing such disclosure or seeking a protective order or other limitations on disclosure. If, after providing such notice and assistance as required herein, the Recipient remains required to disclose any Confidential Information, the Recipient shall disclose no more than that portion of the Confidential Information which is required to be disclosed and shall use commercially reasonable efforts to obtain assurances from the applicable court or agency that such Confidential Information will be afforded confidential treatment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Return or Destruction of Confidential Information</u>. At the Disclosing Party's request, the Recipient shall promptly return to the Disclosing Party all copies, whether in written, electronic or other form or media, of the

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>No Obligations; No Representations or Warranties</u>. The Disclosing Party has no obligation under this Agreement to (a) disclose any Confidential Information or (b) negotiate for, enter into, or otherwise pursue the Purpose. The Disclosing Party provides all Confidential Information without any representation or warranty, expressed or implied, as to the accuracy or completeness thereof, and the Disclosing Party will have no liability to Recipient or any other person relating to the Recipient's use of any of the Confidential Information or any errors therein or omissions therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>No Transfer of Rights, Title, or Interest</u>. The Disclosing Party retains its entire right, title, and interest, including all intellectual property rights, in and to all Confidential Information. Any disclosure of such Confidential Information hereunder shall not be construed as an assignment, grant, option, license, or other transfer of any such right, title, or interest whatsoever to the Recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Remedies</u>. The Recipient acknowledges and agrees that any breach of this Agreement will cause injury to the Disclosing Party for which money damages would be an inadequate remedy and that, in addition to remedies at law, the Disclosing Party is entitled to equitable relief as a remedy for any such breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Governing Law</u>. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Ohio without giving effect to any choice or conflict of law provision or rule (whether of the State of Ohio or any other jurisdiction) that would cause the application of laws of any jurisdiction other than those of the State of Ohio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Miscellaneous</u>. This Agreement constitutes the sole and entire agreement between the Parties with respect to the subject matter contained herein and supersedes all prior and contemporaneous understandings, agreements, representations, and warranties, both written and oral, with respect to such subject matter. This Agreement may only be amended, modified, or supplemented by an agreement in writing signed by each Party hereto. If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement. Neither Party may assign any of its rights or delegate any of its obligations hereunder without the prior written consent of the other Party, provided that the Disclosing Party may assign any of its rights and delegate any of its obligations hereunder to any person or entity that acquires substantially all of the Disclosing Party's assets. Any purported assignment or delegation in violation of this <u>Section 9</u> shall be null and void.

[Signature Page Follows]

------

**IN WITNESS WHEREOF**, the Parties have executed this Agreement to be effective as of the Effective Date.

**<u>DISCLOSING PARTY</u>**

**Myers Industries, Inc.**

By: <u>/s/ Michael McGaugh</u> 

Name: Michael McGaugh

Title: President and CEO

**<u>RECIPIENT</u>**

By: <u>/s/ Jeffrey J. Baker</u> 

Name: Jeffrey J. Baker

Title: Vice President, Corporate Procurement

------

## Ex-10

**Exhibit 10.24**

**Myers Industries, Inc.**

**Confidentiality Agreement**

This Confidentiality Agreement (the "**Agreement**"), effective as of <u>August 17, 2020</u> (the "**Effective Date**"), is entered into by and between **Myers Industries, Inc.** (the "**Disclosing Party**") and <u>Jim Gurnee</u> (the "**Recipient**", and together with the Disclosing Party, the "**Parties**", and each, a "**Party**").

WHEREAS, in connection with the evaluation of a potential business relationship between the Disclosing Party or one of its subsidiaries and/or affiliates and the Recipient (the "**Purpose**"), the Recipient desires to receive certain information from the Disclosing Party that is non-public, confidential, or proprietary in nature; and

WHEREAS, the Disclosing Party desires to disclose such information to the Recipient, subject to the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants, terms, and conditions set forth herein, the Parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Confidential Information</u>. Except as set forth in <u>Section 2</u> below, "**Confidential Information**" means all non-public, confidential, or proprietary information disclosed before, on, or after the Effective Date, by or on behalf of the Disclosing Party to the Recipient which relates to the Purpose, whether disclosed orally or disclosed or accessed in written, electronic or other form or media, and whether or not marked, designated, or otherwise identified as "confidential," and all notes, analyses, summaries, and other materials (the "**Notes**") prepared by or for the Recipient that contain, are based on, or otherwise reflect or are derived, in whole or in part, from any of the foregoing. "**Confidential Information**" shall not include information that: (a) is or becomes generally available to and known by the public other than as a result of any act or omission by the Recipient; (b) is or becomes available to the Recipient on a non-confidential basis from a third-party source that was not legally or contractually restricted from disclosing such information; (c) was known by or in the possession of the Recipient, as established by documentary evidence, prior to being disclosed by or on behalf of the Disclosing Party; or (d) was or is independently developed by the Recipient, as established by documentary evidence, without reference to or use of any Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Recipient Obligations</u>. The Recipient shall: (a) not disclose any Confidential Information to any third party; (b) use strict care to prevent unauthorized use or disclosure of Confidential Information; (c) not use Confidential Information, or permit it to be accessed or used, for any purpose other than the Purpose; (d) promptly notify the Disclosing Party of any unauthorized disclosure of Confidential Information or other breaches of this Agreement by the Recipient of which the Recipient has knowledge; and (e) fully cooperate with the Disclosing Party in any effort undertaken by the Disclosing Party to enforce its rights related to any such unauthorized disclosure. In addition, except as required by applicable law, or otherwise as mutually agreed in writing by the Parties, the Recipient shall not disclose to any third party: (a) that the Confidential Information has been made available to the Recipient; (b) that discussions may be or are underway regarding the Purpose, including the status thereof; or (c) any terms, conditions, or other arrangements that are being discussed or negotiated in relation to the Confidential Information or the Purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Required Disclosure</u>. If the Recipient is required by applicable law to disclose any Confidential Information, prior to making any such disclosure, the Recipient shall provide the Disclosing Party with: (a) prompt written notice of such requirement so that the Disclosing Party may seek a protective order or other remedy; and (b) reasonable assistance in opposing such disclosure or seeking a protective order or other limitations on disclosure. If, after providing such notice and assistance as required herein, the Recipient remains required to disclose any Confidential Information, the Recipient shall disclose no more than that portion of the Confidential Information which is required to be disclosed and shall use commercially reasonable efforts to obtain assurances from the applicable court or agency that such Confidential Information will be afforded confidential treatment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Return or Destruction of Confidential Information</u>. At the Disclosing Party's request, the Recipient shall promptly return to the Disclosing Party all copies, whether in written, electronic or other form or media, of the

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>No Obligations; No Representations or Warranties</u>. The Disclosing Party has no obligation under this Agreement to (a) disclose any Confidential Information or (b) negotiate for, enter into, or otherwise pursue the Purpose. The Disclosing Party provides all Confidential Information without any representation or warranty, expressed or implied, as to the accuracy or completeness thereof, and the Disclosing Party will have no liability to Recipient or any other person relating to the Recipient's use of any of the Confidential Information or any errors therein or omissions therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>No Transfer of Rights</u>. Title, or Interest. The Disclosing Party retains its entire right, title, and interest, including all intellectual property rights, in and to all Confidential Information. Any disclosure of such Confidential Information hereunder shall not be construed as an assignment, grant, option, license, or other transfer of any such right, title, or interest whatsoever to the Recipient

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Remedies</u>. The Recipient acknowledges and agrees that any breach of this Agreement will cause injury to the Disclosing Party for which money damages would be an inadequate remedy and that, in addition to remedies at law, the Disclosing Party is entitled to equitable relief as a remedy for any such breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Governing Law</u>. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Ohio without giving effect to any choice or conflict of law provision or rule (whether of the State of Ohio or any other jurisdiction) that would cause the application of laws of any jurisdiction other than those of the State of Ohio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Miscellaneous</u>. This Agreement constitutes the sole and entire agreement between the Parties with respect to the subject matter contained herein and supersedes all prior and contemporaneous understandings, agreements, representations, and warranties, both written and oral, with respect to such subject matter. This Agreement may only be amended, modified, or supplemented by an agreement in writing signed by each Party hereto. If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement. Neither Party may assign any of its rights or delegate any of its obligations hereunder without the prior written consent of the other Party, provided that the Disclosing Party may assign any of its rights and delegate any of its obligations hereunder to any person or entity that acquires substantially all of the Disclosing Party's assets. Any purported assignment or delegation in violation of this <u>Section 9</u> shall be null and void.

[Signature Page Follows]

------

**IN WITNESS WHEREOF**, the Parties have executed this Agreement to be effective as of the Effective Date.

**<u>DISCLOSING PARTY</u>**

**Myers Industries, Inc.**

By: <u>/s/ Michael McGaugh</u> 

Name: Michael McGaugh

Title: President and CEO

**<u>RECIPIENT</u>**

By <u>/s/ Jim Gurnee</u> 

Name: Jim Gurnee

Title: Vice President – Commercial Excellence

------

## Ex-10

**Exhibit 10.32** 

Director Compensation

Each non-employee director of the Company shall receive for calendar year 2023 an annual retainer fee of $200,000, payable $100,000 in cash, quarterly in arrears, and $100,000 in restricted stock units to be awarded on the day of the 2023 annual meeting of shareholders subject to vesting on the one-year anniversary of the grant date. Non-employee directors with significant additional duties shall receive the following additional annual retainers: (i) $90,000 for the Chair of the Board of Directors; (ii) $12,500 for the Chairs of the Audit and Compensation and Management Development Committees, and (iii) $10,000 for the Chair of the Corporate Governance Committee.

------

## Ex-21

**Exhibit 21**

**Direct and Indirect Subsidiaries, and Operating Divisions, of Myers Industries, Inc.**

As of December 31, 2022

---

| | |
|:---|:---|
| **North, Central and South America Operations** |  |
| Ameri-Kart Corp. | Kansas |
| Ameri-Kart (MI) Corp. | Michigan |
| Buckhorn Inc. | Ohio |
| &nbsp;&nbsp;&nbsp;&nbsp;- Buckhorn Services, Inc. | Ohio |
| DSS Direct, Inc. | Ohio |
| Elkhart Plastics LLC | Indiana |
| Erie Island LLC | Ohio |
| Jamco Products Inc. | Illinois |
| MYE Canada Operations Inc. | Canada |
| MYECAP Financial Corp. | Ohio |
| Myers Holdings Brasil Ltda. (99%) | Brazil |
| Myers Tire Supply International, Inc. | Ohio |
| &nbsp;&nbsp;&nbsp;&nbsp;- Myers de El Salvador S.A. De C.V. (75%) | El Salvador |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Orientadores Comerciales S.A. | Guatemala |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Myers de Panama S.A. | Panama |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Myers TSCA, S.A. | Panama |
| Myers de El Salvador S.A. De C.V. (25%) | El Salvador |
| Myers Tire Supply Distribution, Inc. | Ohio |
| MyersTireSupply.com, Inc. | Ohio |
| Patch Rubber Company | North Carolina |
| Scepter Canada Inc. | Canada |
| Scepter US Holding Company | Ohio |
| &nbsp;&nbsp;&nbsp;&nbsp;- Scepter Manufacturing, LLC | Delaware |
| Trilogy Plastics Alliance, Inc. | Ohio |
| **Reported Operating Divisions of Myers Industries, Inc. and Subsidiaries** |  |
| Akro-Mils (of Myers Industries, Inc.) | Akron, Ohio |
| Myers Tire Supply (of Myers Industries, Inc.) | Akron, Ohio |
| Buckhorn Canada (of Myers Industries, Inc.) | Ontario, Canada |
| Myers Tire Supply Canada (of MYE Canada Operations Inc.) | Ontario, Canada |

---

------

## Ex-23

**Exhibit 23** 

**Consent of Independent Registered Public Accounting Firm**

We consent to the incorporation by reference in the following Registration Statements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Registration Statement (Form S-8 No. 333-207869) pertaining to the Amended and Restated 2008 Incentive Stock Plan of Myers Industries, Inc.,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Registration Statement (Form S-3 No. 033-50286) of Myers Industries, Inc.,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Registration Statement (Form S-8 No. 333-219683) pertaining to the 2017 Incentive Stock Plan of Myers Industries, Inc. as Amended and Restated,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)Registration Statement (Form S-8 No. 333-228515) pertaining to the Myers Industries, Inc. Employee Stock Purchase Plan,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)Registration Statement (Form S-3 No. 333-254164) of Myers Industries, Inc., and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)Registration Statement (Form S-8 No. 333-255617) pertaining to the Myers Industries, Inc. 2021 Long-Term Incentive Plan;

of our reports dated March 3, 2023, with respect to the consolidated financial statements of Myers Industries, Inc. and Subsidiaries and the effectiveness of internal control over financial reporting of Myers Industries, Inc. and Subsidiaries included in this Annual Report (Form 10-K) of Myers Industries, Inc. for the year ended December 31, 2022.

/s/ Ernst & Young LLP

Akron, Ohio

March 3, 2023

------

## Ex-24

Exhibit 24

**POWER OF ATTORNEY**

Each director of Myers Industries, Inc. (the "Company") whose signature appears below hereby appoints MICHAEL P. MCGAUGH and MONICA P. VINAY, and each of them, as the undersigned's attorney-in-fact to sign, in the undersigned's name and on behalf of each such director and in any and all capacities stated below, and to cause to be filed with the Securities and Exchange Commission (the "Commission"), the Company's Annual Report on Form 10-K (the "Form 10-K") for the 2022 fiscal year ended December 31, 2022, and likewise to sign and file with the Commission any and all amendments thereto, including any and all exhibits and other documents required to be included therewith, and the Company hereby also appoints MICHAEL P. MCGAUGH and MONICA P. VINAY, and each of them, as its attorney-in-fact with like authority to sign and file the Form 10-K and any amendments thereto, granting to such attorneys-in-fact full power of substitution and revocation, and hereby ratifying all that any such attorneys-in-fact or their substitutes may do by virtue hereof.

IN WITNESS WHEREOF, each of the undersigned has executed this instrument to be effective as of March 1, 2023.

---

| | |
|:---|:---|
| /s/ Yvette Dapremont Bright | Director |
| YVETTE DAPREMONT BRIGHT  |  |
| /s/ Sarah R. Coffin | Director |
| SARAH R. COFFIN |  |
| /s/ Ron DeFeo | Director |
| RON DEFEO |  |
| /s/ William A. Foley | Director |
| WILLIAM A. FOLEY |  |
| /s/ Jeffrey Kramer | Director |
| JEFFREY KRAMER |  |
| /s/ F. Jack Liebau, Jr. | Director |
| F. JACK LIEBAU, JR. |  |
| /s/ Bruce M. Lisman | Director |
| BRUCE M. LISMAN |  |
| /s/ Lori Lutey | Director |
| LORI LUTEY |  |
| /s/ Michael P. McGaugh | Director |
| MICHAEL P. MCGAUGH |  |

---

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## Ex-31

**Exhibit 31.1**

**Certification Per Section 302 of the Sarbanes-Oxley Act of 2002**

I, Michael P. McGaugh, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this annual report on Form 10-K of Myers Industries, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f), for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | March 3, 2023 | /s/ Michael P. McGaugh |
|  |  | Michael P. McGaugh, President and Chief Executive Officer |

---

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## Ex-31

**Exhibit 31.2**

**Certification Per Section 302 of the Sarbanes-Oxley Act of 2002**

I, Monica P. Vinay, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this annual report on Form 10-K of Myers Industries, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f), for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | March 3, 2023 | /s/ Monica P. Vinay |
|  |  | Monica P. Vinay, Interim Chief Financial Officer |

---

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## Ex-32

**Exhibit 32**

**CERTIFICATION**

**PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report of Myers Industries, Inc. (the Company) on Form 10-K for the period ended December 31, 2022, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Michael P. McGaugh, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Annual Report on Form 10-K of the Company for the period ended December 31, 2022 which this certification accompanies fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Dated: | March 3, 2023 | /s/ Michael P. McGaugh |
|  |  | Michael P. McGaugh, President and Chief Executive Officer |

---

**Exhibit 32**

**CERTIFICATION**

**PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report of Myers Industries, Inc. (the Company) on Form 10-K for the period ended December 31, 2022, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Monica P. Vinay, Interim Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Annual Report on Form 10-K of the Company for the period ended December 31, 2022 which this certification accompanies fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Dated: | March 3, 2023 | /s/ Monica P. Vinay |
|  |  | Monica P. Vinay, Interim Chief Financial Officer |

---

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

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