Document:

EX-10.1

Exhibit 10.1

EMPLOYMENT AGREEMENT

BETWEEN

MYERS INDUSTRIES, INC.

AND

DAVID B. KNOWLES

Effective Date: June 19, 2009

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	1. DEFINITIONS
	 	 	1	 
	2. EMPLOYMENT TERM
	 	 	5	 
	3. POSITION, DUTIES, AND RESPONSIBILITIES
	 	 	5	 
	4. SALARY, BONUS AND BENEFITS
	 	 	5	 
	5. TERMINATION OF EMPLOYMENT
	 	 	8	 
	6. SEVERANCE COMPENSATION
	 	 	8	 
	7. CHANGE IN CONTROL
	 	 	10	 
	8. SEVERANCE PLAN
	 	 	11
	 
	9. PLAN AMENDMENTS
	 	 	11	 
	10. CONFIDENTIAL INFORMATION
	 	 	11	 
	11. NON-COMPETITION
	 	 	11	 
	12. ARBITRATION
	 	 	11	 
	13. NOTICES
	 	 	12	 
	14. ASSIGNMENT; BINDING EFFECT
	 	 	13	 
	15. INVALID PROVISIONS
	 	 	14	 
	16. ALTERNATIVE SATISFACTION OF COMPANY’S OBLIGATIONS
	 	 	14	 
	17. ENTIRE AGREEMENT, MODIFICATION
	 	 	14	 
	18. WAIVER OF BREACH
	 	 	14	 
	19. GOVERNING LAW
	 	 	14	 
	20. TAX WITHHOLDING
	 	 	14	 
	21. EXPENSES OF ENFORCEMENT FOLLOWING A CHANGE IN CONTROL
	 	 	15	 
	22. REPRESENTATION
	 	 	15	 
	23. SUBSIDIARIES AND AFFILIATES
	 	 	15	 
	24. NO MITIGATION OR OFFSET
	 	 	15	 
	25. SOLE REMEDY
	 	 	16	 

 

 

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT is entered into as of the 19th day of June, 2009, by and
between MYERS INDUSTRIES, INC., an Ohio corporation (the “Company”), and DAVID B. KNOWLES (the
“Executive”).

     WITNESSETH:

     WHEREAS, the Company and the Executive (collectively “the Parties”) desire to enter into this
Employment Agreement (this “Agreement”) as hereinafter set forth;

     NOW, THEREFORE, the Company and the Executive agree as follows:

     1. DEFINITIONS. For purposes of this Agreement, the following terms shall have the meanings
set forth in this Section 1 when used in this Agreement. Certain other terms are defined in the
body of this Agreement.

     (a) Agreement. The term this “Agreement” shall mean this Employment Agreement, as it
may be amended in writing from time-to-time.

     (b) Annual Bonus. The term “Annual Bonus” shall mean the bonus paid to executives or
other employees of the Company pursuant to a formal or informal bonus plan or individual
annual bonus arrangement.

     (c) Base Salary. The term “Base Salary” shall mean the salary provided for in Section 4
or any increased salary granted to the Executive in accordance with Section 4.

     (d) Board. The term “Board” shall mean the Board of Directors of the Company.

     (e) Cause. The term “Cause” shall mean:

     (i) Commission by the Executive (evidenced by a conviction or written,
voluntary and freely given confession) of a criminal act constituting a felony or
which involves fraud, dishonesty or moral turpitude;

     (ii) Commission by the Executive of a material breach or material default of
any of the Executive’s agreements or obligations under any provision of this
Agreement, including, without limitation, the Executive’s agreements and obligations
under Subsections 3(a) through 3(d), Section 10 or Section 11 of this Agreement,
which is not substantially cured in all material respects to the reasonable
satisfaction of the Board within thirty (30) days after the Board gives written
notice thereof to the Executive;

     (iii) Commission by the Executive, when carrying out the Executive’s duties
under this Agreement, of acts or the omission of any act, which in the reasonable
judgment of the Board both (A) constitutes gross negligence, willful misconduct or a
breach of fiduciary duty and (B) results in material economic harm to the Company or has a materially adverse effect on the Company’s
operations, properties or business relationships; or

 

 

     (iv) Commission by the Executive, whether when carrying out the Executive’s
duties under this Agreement or otherwise, of acts or the omission of any act, which
in the reasonable judgment of the Board causes or is likely to cause material damage
to the reputation or standing of the Company in the business community or the
community as a whole.

     (f) Change in Control. The term “Change in Control” shall mean 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 Securities Exchange Act of 1934, as
amended, as in effect on the date of this Agreement (the “Exchange Act”), 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:

     (i) Any “person” (as defined in Sections 13(d) and 14(d) of the Exchange Act),
other than Stephen E. Myers, Ellen J. Myers, Kathryn A. Myers, or The Mary S. Myers
Revocable Trust dated September 21, 1989, as amended, becomes the “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing twenty percent (20%) 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;

     (ii) 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

     (iii) There occurs (A) a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation 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 eighty percent (80%) of the combined
voting power of the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation, or (B) the approval by
the stockholders of the Company of a plan of complete liquidation of the Company, or
(C) the sale or disposition by the Company of more than fifty percent (50%) of the
Company’s assets. For purposes of this Subsection 1(f)(iii), 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.

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     (iv) For purposes of this Agreement, a “Change in Control” will be deemed to
occur:

     (A) on the day on which a twenty percent (20%) or greater ownership
interest described in Subsection 1(f)(i) is acquired, provided that a
subsequent increase in such ownership interest after it first equals or
exceeds twenty percent (20%) shall not be deemed a separate Change in
Control;

     (B) on the day on which “Continuing Directors,” as hereinafter defined,
cease to be a majority of the Board as described in Subsection 1(f)(ii);

     (C) on the day of a merger, consolidation or sale of assets as
described in Subsection 1(f)(iii); or

     (D) on the day of the approval of a plan of complete liquidation as
described in Subsection 1(f)(iii).

     (v) For purposes of this Subsection 1(f), 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.

     (g) Company. The term “Company” shall mean Myers Industries, Inc., an Ohio corporation,
and its successors and assigns to the extent permitted under this Agreement.

     (h) Compensation Committee. The term “Compensation Committee” shall mean the
Compensation Committee of the Board or its successor.

     (i) Director. The term “Director” shall mean a member of the Board.

     (j) Disability. The term “Disability” shall mean a physical or mental incapacity that
prevents the Executive from performing the essential functions of the Executive’s position
hereunder, with or without reasonable accommodation, for a period of one hundred eighty
(180) consecutive days or a cumulative total of three hundred (300) days in any period of
two consecutive fiscal years of the Company.

     (k) Effective Date. The term “Effective Date” shall mean the effective date of this
Agreement, which shall be June 19, 2009.

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     (l) Employment Term. The term “Employment Term” shall have the meaning set forth in
Subsection 2(b) of this Agreement.

     (m) Good Reason. The term “Good Reason” shall mean the occurrence of (i) any material
reduction in the position, authority or office of the Executive, (ii) any material reduction
in the Executive’s responsibilities or duties for the Company, (iii) any material adverse
change or reduction in the aggregate “Minimum Benefits,” as hereinafter defined, provided to
the Executive as of the Effective Date (provided that any material reduction in such
aggregate Minimum Benefits that is required by law or applies generally to all employees of
the Company shall not constitute “Good Reason” as defined hereunder), (iv) any relocation of
the Executive’s principal place of work with the Company to a place more than sixty (60)
miles from the geographical center of Akron, Ohio, or (v) the material breach or material
default by the Company of any of its agreements or obligations under any provision of this
Agreement which remains substantially uncured forty five (45) days after the Executive
provides written notice thereof to the Board. As used in this Subsection 1(m), an “adverse
change or material reduction” in the aggregate Minimum Benefits shall be deemed to result
from any reduction or any series of reductions which, in the aggregate, exceeds five percent
(5%) of the value of such aggregate Minimum Benefits determined as of the Effective Date. As
used in this Subsection 1(m), Minimum Benefits are life insurance, accidental death, long
term disability, short term disability, medical, dental, and vision benefits and the
Company’s expense reimbursement policy. The Executive shall give written notice to the
Company on or before the date of termination of employment for Good Reason stating that the
Executive is terminating employment with the Company and specifying in detail the reasons
for such termination. If the Company does not object to such notice by notifying the
Executive in writing within forty five (45) days following the date of the Company’s receipt
of the Executive’s notice of termination, the Company shall be deemed to have agreed that
such termination was for Good Reason. The parties agree that “Good Reason” will not be
deemed to have occurred merely because the Company becomes a subsidiary or division of
another entity following a “Change in Control,” as defined herein, provided the Executive
continues to serve as the Executive Vice President and Chief Operating Officer of the new
parent company and its subsidiaries. The parties further agree that “Good Reason” will be
deemed to have occurred if the purchaser, in a Change in Control transaction, does not
assume this Agreement in accordance with Section 14 hereof.

     (n) Parties. The term “Parties” shall mean the Company and the Executive.

     (o) Retirement. The term “Retirement” shall have the definition ascribed to such term
in the Company’s Executive Supplemental Retirement Plan as in effect on the Effective Date.

     (p) Severance Benefit Plan. The term “Severance Benefit Plan” shall mean any plan,
policy or arrangement providing severance benefits for executive officers (and any other
employees) of the Company.

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     2. EMPLOYMENT TERM.

     (a) During the Employment Term, the Company shall employ the Executive, and the
Executive shall serve the Company, as its Executive Vice President and Chief Operating
Officer, based on the terms and subject to the conditions set forth herein.

     (b) The Employment Term shall commence on the Effective Date and shall continue for two
years from the Effective Date. This Agreement will automatically be renewed for successive
one year terms thereafter unless notice of termination is provided by either Party pursuant
to Section 5 of this Agreement.

     3. POSITION, DUTIES, AND RESPONSIBILITIES. At all times during the Employment Term, the
Executive shall:

     (a) Hold the position of the Company’s Executive Vice President and Chief Operating
Officer, an executive officer, reporting to the Chief Executive Officer;

     (b) Have those duties and responsibilities, and the authority, customarily possessed by
an Executive Vice President and Chief Operating Officer of a major corporation and such
additional duties as may be assigned to the Executive from time-to-time by the Chief
Executive Officer or the Board, as applicable, which are consistent with the positions
stated herein;

     (c) Adhere to such written policies and such unwritten policies and directives as are
of common knowledge to executive officers of the Company, as may be promulgated from
time-to-time by the Board and which are applicable to executive officers of the Company; and

     (d) Devote the Executive’s entire business time, energy, and talent (subject to
vacation time in accordance with the Company’s policy applicable to executive officers,
illness or injury) to the business, and to the furtherance of the purposes and objectives,
of the Company, and neither directly nor indirectly act as an executive of or render any
business, commercial, or professional services to any other person, firm or organization for
compensation, without the prior written approval of the Board.

     Nothing in this Agreement shall preclude the Executive from devoting reasonable periods of
time to charitable and community activities or the management of the Executive’s investment assets,
provided such activities do not unreasonably interfere with the performance by the Executive of the
Executive’s duties hereunder.

     4. SALARY, BONUS AND BENEFITS. For services rendered by the Executive on behalf of the Company
during the Employment Term, the following salary, bonus and benefits shall be provided to the
Executive by the Company:

     (a) The Company shall pay to the Executive, in equal installments, according to the
Company’s then current practice for paying its executive officers in effect from
time-to-time during the Employment Term, an annual Base Salary at the initial rate of
Four Hundred Thousand
Dollars ($400,000.00). This salary will be reviewed on the first
anniversary of the Effective date and thereafter from time-to-time as the Compensation
Committee may determine.

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     (b) For the Annual Bonus for the fiscal year ending December 31, 2009, an Annual Bonus
of not less than One Hundred Fifty Thousand Dollars ($150,000.00) shall be awarded and paid.
In subsequent fiscal years, the Executive’s Annual Bonus opportunity shall be calculated
based on the achievement of metrics to be established by the Compensation Committee,
provided that the target Annual Bonus opportunity shall have a maximum aggregate award of
not less than one hundred fifty percent (150%) of the Executive’s Base Salary for such
fiscal year. Each Annual Bonus shall be paid in the calendar year immediately following the
calendar year to which such Annual Bonus relates.

     (c) The Executive shall be eligible for participation in such other benefit plans,
including, but not limited to, the Company’s profit sharing plan, Executive Supplemental
Retirement Plan, short-term and long-term disability plans, group term life insurance plan,
medical plan or PPO, dental plan, and the 2008 Incentive Stock Plan of Myers Industries,
Inc., as the Company may adopt from time-to-time and in which the Company’s executive
officers, or employees in general, are eligible to participate. This Subsection 4(c) shall
not be deemed to prevent participation in any special plan or arrangement providing special
benefits to the Executive which are not available to other employees. Such participation
shall be subject to the terms and conditions set forth in the applicable plan documents. As
is more fully set forth in Section 8 hereof, the Executive shall not be entitled to
duplicative payments under this Agreement and any Severance Benefit Plan.

     (d) Without limiting the generality of Subsection 4(c) above, with respect to life
insurance, the Executive shall be entitled to participate in the Company’s group term life
insurance plan.

     (e) Without limiting the generality of Subsection 4(c) above, the Executive shall be
entitled to a One Thousand Five Hundred Dollars ($1,500.00) per month automobile allowance
for each full month during the Employment Term, such allowance to be paid on a monthly
basis.

     (f) The Executive shall be entitled to four weeks vacation time per calendar year
during the Employment Term.

     (g) On the later of the Effective Date or the date that the Executive begins his
employment with the Company, Executive shall be granted stock options (which, to the
greatest extent possible, will be incentive stock options) to acquire 30,000 shares of the
Company’s common stock, per the 2008 Incentive Stock Plan of Myers Industries, Inc. and the
terms generally provided to executives of the Company other than John C. Orr. At the
customary time for granting stock options under the 2008 Incentive Stock Plan of Myers
Industries, Inc., the Executive will be granted the option to purchase an amount of
the Company’s common stock commensurate and in recognition of the Executive’s
position as
Executive Vice President and Chief Operating Officer of the Company, with terms and
provisions similar to those in effect under such plan as of the Effective Date, or such
other grant of stock based benefits as determined by the Compensation Committee on like
terms as granted to all executives of the Company. The exercise price of all such stock
options shall not be less than the fair market value of the Company’s common stock on the
date of grant.

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     (h) The Executive shall be eligible to participate in the Company’s Executive
Supplemental Retirement Plan (the “SERP”), as amended by the Amendment to the Myers
Industries, Inc. Supplemental Retirement Plan for David B. Knowles, dated as of the
Effective Date (“Amendment”), which Amendment provides that the “Benefit Amount” (as defined
in the Amendment) shall be Seventy-Five Thousand Dollars ($75,000.00) per year for ten (10)
years.

     (i) The Executive shall be provided with a one-time reimbursement of reasonable costs
associated with the Executive’s professional move of personal property from the Executive’s
principal place of residence wherever located on or immediately before the Effective Date to
the Akron, Ohio area. The Executive shall also be entitled to reimbursement for rental
expenses of a furnished, two bedroom residence in the Akron, Ohio area (“Temporary Housing”)
with an initial term of three months, and thereafter on a month-to-month basis for Temporary
Housing; provided that the number of months of Temporary Housing does not exceed twelve (12)
months in the aggregate and the cost of the Temporary Housing does not exceed a gross amount
of One Thousand Five Hundred Dollars ($1,500.00) per month. Any amounts to be reimbursed to
the Executive pursuant to this Subsection 4(i) shall be paid by the end of the calendar year
following the calendar year in which the reimbursement amount relates.

     (j) The Executive shall be provided with a one-time payment equal to Fifty Thousand
Dollars ($50,000.00) for: (i) any closing costs or other expenses associated with the sale
of Executive’s principal place of residence wherever located on or immediately before the
Effective Date; and (ii) any closing costs or other expenses associated with the purchase of
Executive’s new principal place of residence in the Akron, Ohio area. This allowance shall
be paid on or before March 15, 2010.

     (k) The Executive shall be provided, at the Company’s expense, with director’s and
officer’s liability insurance coverage to the same extent as are the Company’s other
executive officers with respect to claims against the Executive arising in connection with
the Executive’s activities performed on behalf of or in connection with the Executive’s
service as an officer or Director of the Company or any affiliate.

     (l) The Executive shall be entitled to use the Company’s corporate membership at
Firestone Country Club, as per the Company policy for such use. Executive shall be
responsible for any costs related to Executive’s personal use of the Company’s corporate
membership at Firestone Country Club.

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     5. TERMINATION OF EMPLOYMENT. As indicated in Subsection 2(b), the Employment Term may
terminate prior to the date specified therein as follows:

     (a) The Executive’s employment hereunder will terminate without further notice upon the
death of the Executive.

     (b) The Company may terminate the Executive’s employment hereunder upon the Executive’s
Disability, but in any such event the Executive shall be entitled to full compensation and
benefits hereunder until the date of termination.

     (c) The Executive may terminate the Executive’s employment due to the Executive’s
Retirement.

     (d) The Company may terminate the Executive’s employment hereunder effective
immediately upon giving written notice of such termination for “Cause.”

     (e) The Company may terminate the Executive’s employment hereunder without Cause at any
time upon thirty (30) days written notice.

     (f) The Executive may terminate the Executive’s employment hereunder effective
immediately upon giving written notice of such termination for “Good Reason.”

     (g) The Executive may terminate the Executive’s employment hereunder without Good
Reason at any time upon thirty (30) days written notice.

     (h) Either Party may terminate this Agreement by delivering written notice of
non-renewal not later than sixty (60) days prior to the expiration of the Employment Term
(or any subsequent renewal term).

     6. SEVERANCE COMPENSATION. If the Executive’s employment terminates, the following severance
provisions will apply:

     (a) Except as otherwise provided in Subsection 7(a), if the Executive’s employment is
terminated by the Company other than for Cause or Disability or is terminated by the
Executive for Good Reason, then for a period of one (1) year commencing on the Executive’s
termination date (“Payment Term”), the Company shall:

     (i) continue to pay to the Executive his annual Base Salary in effect on the
date of such termination of the Executive’s employment, less all withholding and
similar requirements, payable in accordance with the Company’s normal payroll
practice for other employees of the Company;

     (ii) pay to the Executive within ninety (90) days following the Executive’s
termination of employment a single sum payment equal to one (1) times the
Executive’s Annual Bonus at the highest rate in effect during the prior three (3)
year period, plus the sum of any accrued Annual Bonus earned in the
year prior to the termination of employment but unpaid at the date of such
termination, less all withholding and similar requirements;

8

 

     (iii) pay to the Executive the entire cost of the premiums for continued
medical coverage in accordance with Code Section 4980(B) (“COBRA”) for a one-year
period commencing on the date of Executive’s termination of employment, and continue
in effect the long term disability protection and any life insurance protection
being provided to the Executive immediately prior to the Executive’s termination of
employment;

     (iv) continue to pay the automobile allowances as provided in Subsections 4(e)
hereof for a one-year period commencing on the date of Executive’s termination of
employment; and

     (v) pay for executive outplacement services for the Executive from a nationally
recognized executive outplacement firm at the level provided for the most senior
executives for a one year period commencing on the date of termination of
Executive’s employment.

Notwithstanding the foregoing, if the Company is a “public company” within the meaning of
Internal Revenue Code Section 409A (“Section 409A”), any amounts payable to the Executive
during the first six months and one day following the date of termination pursuant to this
Section 6(a) which are “deferred compensation” under Section 409A and the Treasury
Regulations thereunder, after taking into account any exceptions under Treasury Regulation
Section 1.409A-1(b)(9)(iii), will be deferred until the date which is six months and one day
following such termination, and if any such payments are required to be so deferred the
first payment will be in an amount equal to the total amount to which the Executive would
otherwise have been entitled during the period following the date of termination of
employment if deferral had not been required.

     (b) If the Executive’s employment with the Company is terminated by reason of the
Executive’s death or Disability during the Employment Term, the Executive or the Executive’s
surviving spouse shall be entitled to receive (i) the Base Salary and Annual Bonus accrued
in the year prior to the year in which the death or Disability occurs and unpaid to the date
of death or Disability, (ii) any amounts payable under any employee benefit plan of the
Company in accordance with the terms of such plan, and (iii) if the Executive and/or the
Executive’s surviving spouse and dependents properly elect continued medical coverage in
accordance with COBRA, the Company shall pay the entire cost of the premiums for such
continued medical coverage for the longer of (A) the maximum required period of coverage
under Code Section 4980B(f) or (B) thirty-six (36) months.

     (c) If the Executive’s employment hereunder is terminated by the Company for Cause or
terminated by the Executive other than for Good Reason, then no further compensation or
benefits will be provided to the Executive by the Company under this Agreement following the
date of such termination of employment other than payment of compensation earned to the date
of termination of employment but not yet paid. This Subsection 6(c) shall not be interpreted to deny the Executive any benefits to which
the Executive may be entitled under any plan or arrangement of the Company applicable to the
Executive.

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     (d) If the Executive’s employment is terminated as a result of the nonrenewal of this
Agreement by the Company, then for a period of one (1) year commencing on the Executive’s
termination date, the Company shall continue to pay to the Executive his annual Base Salary
in effect on the date of such termination of the Executive’s employment, less all
withholding and similar requirements, payable in accordance with the Company’s normal
payroll practice for other employees of the Company and no other severance payment
obligations shall be payable to the Executive under this Section 6. If the Executive’s
employment is terminated as a result of the nonrenewal of this Agreement by the Executive,
then the termination shall be treated as a termination with Cause and no severance payment
obligations shall be payable to the Executive under this Section 6 as a result of a
non-renewal by Executive.

     (e) Notwithstanding anything contained in this Agreement to the contrary, if the
Executive breaches any of the Executive’s obligations under Section 10 or 11 hereof, no
further severance payments or other benefits will be payable to the Executive under this
Section 6.

     7. CHANGE IN CONTROL.

     (a) In General. In the event of a Change in Control, the Executive shall have certain
special protections so that the Executive may more fully focus on the issues related to such
a Change in Control, and to reward the Executive for the substantial additional effort
involved in a Change in Control. The protections and rights are set forth in this Section 7.

     (i) In the event of a termination of the Executive’s employment by the Company
in connection with, or within three (3) months after, a Change in Control, the
Executive is entitled to, within thirty (30) days following Executive’s termination
of employment, and in lieu of any payments under Subsection 6(a)(i), a single sum
payment equal to one and one half (1 1/2) times Executive’s annual Base Salary on of
the date of termination, less all withholding and similar requirements.

     (ii) In the event of a termination of the Executive’s employment by the Company
in connection with, or within three (3) months after, a Change in Control, the
Executive is entitled to, within thirty (30) days following Executive’s termination
of employment, and in lieu of any payments under Subsection 6(a)(ii), a single sum
payment equal to one and one half (1 1/2) times the Executive’s Annual Bonus at the
highest rate in effect during the prior three (3) year period, plus the sum of any
accrued Annual Bonus earned in the year prior to the termination of employment but
unpaid at the date of such termination, less all withholding and similar
requirements.

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     (iii) In the event of a Change in Control, the Executive will become fully
vested in all outstanding stock options, restricted stock or similar awards and any
option shall become fully exercisable. The Executive shall have at least ninety (90)
days to exercise any option or right with respect to any such award in connection
with the Change in Control.

     (iv) In the event of a Change in Control, the Executive will have available the
expenses of enforcement provided in Section 21 hereof.

     8. SEVERANCE PLAN. It is the intention of the Parties that this Agreement provide special
benefits to the Executive. If at any time the Company maintains a Severance Benefit Plan that
would provide better cash severance benefits to the Executive than this Agreement, the Executive
may elect to receive such better cash severance benefits in lieu of the cash severance benefits
provided under Subsections 6(a)(i) and 6(a)(ii) of this Agreement while continuing to receive any
other non-cash severance benefits or coverages available under this Agreement. Under no
circumstances will the Executive receive cash severance benefits under both this Agreement and any
other Severance Benefit Plan.

     In such case, the cash severance benefits under this Agreement shall be in lieu of the cash
severance benefits payable under a Severance Benefit Plan.

     9. PLAN AMENDMENTS. To the extent any provisions of this Agreement modify the terms of any
existing plan, policy or arrangement affecting the compensation or benefits of the Executive, as
appropriate, (a) such modification as set forth herein shall be deemed an amendment to such plan,
policy or arrangement as to the Executive, and both the Company and the Executive hereby consent to
such amendment, (b) the Company will appropriately modify such plan, policy or arrangement to
correspond to this Agreement with respect to the Executive, or (c) the Company will provide an
“Alternative Benefit,” as defined in Section 16 hereof, to or on behalf of the Executive in
accordance with the provisions of such Section 16.

     10. CONFIDENTIAL INFORMATION. The Executive agrees that the Executive will not, during the
Employment 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 Company’s policies and procedures. Upon termination
of the Executive’s employment, and at any other time upon the request of the Company, the Executive
will return any and all Company property in the Executive’s possession or control including,
without limitation, all confidential, trade secret and proprietary information.

     11. NON-COMPETITION. In consideration of this Agreement and as a condition of employment with
the Company, the Executive agrees to execute that certain Non-Competition and Non-Disclosure
Agreement between the Parties, dated as of the Effective Date, and to abide by its terms in all
respects.

     12. ARBITRATION. The following arbitration rules shall apply to this Agreement:

     (a) In the event that the Executive’s employment shall be terminated by the Company
during the Employment Term or the Company shall withhold payments or
provision of benefits because the Executive is alleged to be engaged in activities
prohibited by Section 10 or 11 hereof or for any other reason, the
Executive or the Company
shall have the right, in addition to all other rights and remedies provided by law, at the
election of either the Executive or the Company, as the case may be, 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 other
Party or to institute a judicial proceeding, in either case within one hundred and twenty
(120) days after having received notice of termination of the Executive’s employment.

11

 

     (b) Notwithstanding Subsection 12(a), the Executive and the Company agree that this
Subsection 12(b) shall be strictly adhered to for any termination asserted to be for “Cause”
or for “Good Reason.” In the event that (i) the Company terminates the Executive’s
employment for Cause, or (ii) the Executive resigns the Executive’s employment for Good
Reason, the Company and the Executive each shall have thirty (30) days to demand of the
American Arbitration Association in writing (with a copy to the other Party) 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 the Executive’s findings to the Parties 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.

     During the period of resolution of a dispute under this Subsection 12(b), the Executive 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 Executive hereunder) and the
Executive shall have no duties for the Company. If the arbitrator determines that the Company did
not have Cause to terminate the Executive’s employment or that the Executive had Good Reason to
resign the Executive’s employment, as the case may be, the Company shall promptly pay the Executive
in a lump sum any compensation to which the Executive would have been entitled, for the period
commencing with the date of the Executive’s termination or resignation and ending on the date of
such determination, had the Executive’s employment not been terminated or had the Executive not
resigned.

     13. NOTICES. For purposes of this Agreement, 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 registered or certified mail, return receipt requested, postage prepaid, addressed as
follows:

(a) If the notice is to the Company:

Myers Industries, Inc.

1293 South Main Street

12

 

Akron, OH 44301

Attn: President and Chief Executive Officer

With a copy to:

Benesch Friedlander Coplan & Aronoff LLP

200 Public Square, Suite 2300

Cleveland, Ohio 44114

Attn: Megan L. Mehalko, Esq.

(b) If the notice is to the Executive:

David B. Knowles

7755 Tecumseh Trail

Cincinnati, Ohio 45243

or to such other address as either Party may have furnished to the other in writing and in
accordance herewith; except that notices of change of address shall be effective only upon receipt.

     14. ASSIGNMENT; BINDING EFFECT. This Agreement shall be binding upon and inure to the benefit
of the parties to this Agreement and their respective successors, heirs (in the case of the
Executive) and permitted assigns. No rights or obligations of the Company under this Agreement may
be assigned or transferred by the Company except that such rights or obligations may be assigned or
transferred in connection with the sale or transfer of all or substantially all of the assets of
the Company, provided that the assignee or transferee is the successor to all or substantially all
of the assets of the Company and such assignee or transferee expressly assumes the liabilities,
obligations and duties of the Company, as contained in this Agreement, either contractually or as a
matter of law. The Company further agrees that, in the event of a sale or transfer of assets as
described in the preceding sentence, it shall be a condition precedent to the consummation of any
such transaction that the assignee or transferee expressly assumes the liabilities, obligations and
duties of the Company hereunder. No rights or obligations of the Executive under this Agreement may
be assigned or transferred by the Executive other than the Executive’s rights to compensation and
benefits, which may be transferred only by will or operation of law, except as provided in this
Section 14.

     The Executive 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 Executive’s death by giving the Company written notice thereof. In the absence of
such a selection, any compensation or benefit payable under this Agreement following the death of
the Executive shall be payable to the Executive’s spouse, or if such spouse shall not survive the
Executive, to the Executive’s estate. In the event of the Executive’s death or a judicial
determination of the Executive’s incompetence, reference in this Agreement to the Executive shall
be deemed, where appropriate, to refer to the Executive’s beneficiary, estate or other legal
representative.

13

 

     15. INVALID PROVISIONS. Any provision of this Agreement 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 Agreement
shall continue to be in full force and effect. In the event that any provision of this Agreement
shall be determined to be invalid or unenforceable, the Parties will negotiate in good faith 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.

     16. ALTERNATIVE SATISFACTION OF COMPANY’S OBLIGATIONS. In the event this Agreement provides
for payments or benefits to or on behalf of the Executive 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 the Executive would adversely affect the tax qualified or tax advantaged status of such
plans, policies or arrangements for the Executive or other participants therein, the Company may
provide the Executive with an “Alternative Benefit,” as defined in this Section 16, in lieu
thereof. The Alternative Benefit is a benefit or payment which places the Executive and the
Executive’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 Agreement (a) were provided exactly as called for by
this Agreement, and (b) had the favorable economic, tax and legal characteristics customary for
plans, policies or arrangements of that type.

     17. ENTIRE AGREEMENT, MODIFICATION. This Agreement contains the entire agreement between the
Parties with respect to the employment of the Executive by the Company and supersedes all prior and
contemporaneous agreements, representations, and understandings of the Parties, whether oral or
written. No modification, amendment, or waiver of any of the provisions of this Agreement shall be
effective unless in writing, specifically referring hereto, and signed by both Parties.

     18. WAIVER OF BREACH. The failure at any time to enforce any of the provisions of this
Agreement or to require performance by the other Party of any of the provisions of this Agreement
shall in no way be construed to be a waiver of such provisions or to affect either the validity of
this Agreement or any part of this Agreement or the right of either Party thereafter to enforce
each and every provision of this Agreement in accordance with the terms of this Agreement.

     19. GOVERNING LAW. This Agreement has been made in, and shall be governed and construed in
accordance with the laws of, the State of Ohio. The Parties agree that this Agreement is not an
“employee benefit plan” or part of an “employee benefit plan” which is subject to the provisions of
the Employee Retirement Income Security Act of 1974, as amended.

     20. TAX WITHHOLDING. The Company may withhold from any amounts payable under this Agreement
such federal, state or local taxes or other amounts as shall be required to be withheld pursuant to
any applicable law or regulation. Where withholding applies to shares of the Company’s common
stock, the Company shall make cashless withholding available to the Executive if permissible by
law.

14

 

     21. EXPENSES OF ENFORCEMENT FOLLOWING A CHANGE IN CONTROL. The Company is aware that upon the
occurrence of a Change in Control the Board or a shareholder of the Company may then cause or
attempt to cause the Company to refuse to comply with its obligations under this Agreement, or may
cause or attempt to cause the Company to institute, or may institute, litigation seeking to have
this Agreement declared unenforceable, or may take, or attempt to take, other action to deny the
Executive the benefits intended under this Agreement. In these circumstances, the purpose of this
Agreement could be frustrated. It is the intent of the Company that the Executive not be required
to incur the expenses associated with the enforcement of the Executive’s rights under this
Agreement by litigation or other legal action because the cost and expense thereof would
substantially detract from the benefits intended to be extended to the Executive hereunder, nor be
bound to negotiate any settlement of the Executive’s rights hereunder under threat of incurring
such expenses. Accordingly, if following a Change in Control it should appear to the Executive that
the Company has failed to comply with any of its obligations under this Agreement or in the event
that the Company or any other person takes any action to declare this Agreement void or
unenforceable, or institutes any litigation or other legal action designed to deny, diminish or to
recover from, the Executive, the benefits intended to be provided to the Executive hereunder, and
that the Executive has complied with all of the Executive’s obligations under this Agreement, the
Company irrevocably authorizes the Executive from time to time to retain counsel of his choice at
the expense of the Company as provided in this Section 21, to represent the Executive in connection
with the initiation or defense of any litigation or other legal action, whether by or against the
Company or any Director, officer, shareholder or other person affiliated with the Company, in any
jurisdiction. Notwithstanding any existing or prior attorney-client relationship between the
Company and such counsel, the Company irrevocably consents to the Executive entering into an
attorney-client relationship with such counsel, and in that connection the Company and the
Executive agree that a confidential relationship shall exist between the Executive and such
counsel. The reasonable fees and expenses of counsel selected from time to time by the Executive as
herein provided shall be paid or reimbursed to the Executive by the Company on a regular, periodic
basis upon presentation by the Executive of a statement or statements prepared by such counsel in
accordance with its customary practices, up to a maximum aggregate amount of Five Hundred Thousand
Dollars ($500,000.00).

     22. REPRESENTATION. The Company represents and warrants that it is fully authorized and
empowered to enter into this Agreement and that the performance of its obligations under this
Agreement will not violate any agreement between it and any other person, firm or organization.

     23. SUBSIDIARIES AND AFFILIATES. Notwithstanding any contrary provision of this Agreement, to
the extent it does not adversely affect the Executive, the Company may provide the compensation and
benefits to which the Executive is entitled hereunder through one or more subsidiaries or
affiliates.

     24. NO MITIGATION OR OFFSET. In the event of any termination of employment, the Executive
shall be under no obligation to seek other employment. Amounts due the Executive under this
Agreement shall not be offset by any remuneration attributable to any subsequent employment the
Executive may obtain.

15

 

     25. SOLE REMEDY. The Parties agree that the remedies of each against the other for breach of
this Agreement shall be limited to enforcement of this Agreement and recovery of the amounts and
remedies provided for herein. The Parties, however, further agree that such limitation shall not
prevent either Party from proceeding against the other to recover for a claim other than under this
Agreement.

[Remainder of the page intentionally left blank, signature page follows]

16

 

     IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of the day
and year first above written.

	 	 	 	 	 
	 

	 	MYERS INDUSTRIES, INC.:

(the “Company”)	 	 
	 
	 	 	 	 
	 

	 	     /s/ John C. Orr
 

John C. Orr, President and

Chief Executive Officer
	 	 
	 
	 	 	 	 
	 

	 	EXECUTIVE:	 	 
	 
	 	 	 	 
	 

	 	     /s/ David B. Knowles
 

David B. Knowles
	 	 

17EX-10.2

Exhibit
10.2

NON-DISCLOSURE AND NON-COMPETITION AGREEMENT

     THIS AGREEMENT is entered into between Myers Industries, Inc. (the “Company”) and David B.
Knowles (“Employee”), effective as of June 19, 2009. The Company, as used in this Agreement,
includes Myers Industries, Inc., its successors and assignees, and any of their existing and future
subsidiaries in the United States and foreign countries.

     In consideration of Employee’s employment with the Company under an Employment Agreement dated
of even date herewith (the “Employment Agreement”), and other valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, Employee covenants and agrees as follows:

I. NON-DISCLOSURE. Employee covenants and agrees so long as this Agreement is in effect, and after
the termination of this Agreement, that:

     A. Without the prior written consent of the Company, Employee shall not at any time, directly
or indirectly, use for Employee’s own benefit or purposes or for the benefit or purposes of any
other person, firm, partnership, association, corporation or business organization, or disclose to
any person, firm, partnership, association, corporation or business organization, any trade
secrets, information, data, know-how or knowledge (including, but not limited to, trade secrets,
information, data, know-how or knowledge relating to customers, clients, products, technical
services, business methods and techniques, print outs, reports, market development programs,
revenues, costs, pricing structures, management practices, manuals, contracts, documents, designs,
computer programs, computer operating systems, computer applications, software designs, inventions,
processes, plans or employees) belonging to, or relating to the affairs of the Company except where
required in good faith to transact the business of the Company.

     B. Employee shall return to the Company, at its request, and in any event within three (3)
days after termination of Employee’s employment, in good condition, reasonable wear and tear
excepted, all documentation and records which are the property of the Company and any and all
copies thereof, including, but not limited to, all manuals, promotional and instructional
materials, and similar aids and equipment, all correspondence, customer lists, files, plans,
contracts, cost and pricing structures, accounting records, memoranda and reports as well as all of
the Company’s equipment and other property in Employee’s hands or under Employee’s control at the
time of the termination of Employee’s employment.

     C. Employee shall keep in strict confidence all trade information, product data, technical
services, management practices, business and pricing methods and techniques, customer and prospect
lists, trade secrets and other confidential information concerning the Company’s business and the
Company’s methods of doing business.

II. NON-COMPETITION. Employee acknowledges that Employee will be dealing with confidential
information, trade secrets and business methods which are the Company’s property. Employee further
acknowledges that the training, materials, customer lists and other confidential information and
trade secrets, all provided to Employee by the Company, are of value to the Company and that it is
reasonable and necessary for the protection of the Company that the Employee not compete with the Company within the area and for the duration hereinafter set forth.

 

 

     A. Accordingly, Employee covenants and agrees that Employee shall not, for the term hereof and
for a period of three (3) years following the termination of Employee’s employment with the Company
(the “Restricted Period”), for any reason directly or indirectly (which means acting alone, as a
sole proprietor, as a partner, employee or agent of a partnership; as an officer, director,
employee or shareholder or agent of any other corporation; or as a trustee, fiduciary, consultant,
independent contractor, agent or other representative) engage in any or all of the following
activities within the Restricted Area (as defined below):

1. Become employed or affiliated in any capacity with, perform services of any type
on behalf of, or enter into or engage in any business or other pursuit that competes
with and/or is similar to the Company’s business in any way; or

2. Promote the business of any person, firm, association, or corporation engaged in
a business which competes with and/or is similar in any way with the business of the
Company; or

3. Solicit, divert or take away or attempt to solicit, divert, or take away, any of
the Company’s customers, clients, accounts, sales and/or service representatives,
independent contractors or subcontractors, agents, suppliers or patronage; or

4. Attempt to seek or cause any of the Company’s customers, clients, accounts, sales
and/or service representatives, independent contractors or suppliers to refrain from
patronizing the Company; or

5. Knowingly employ or engage, or attempt to employ or engage, in any capacity, any
person employed by the Company, or any sales and/or service representative, or any
independent contractor or agent of the Company, who was an employee, representative,
contractor, or agent of the Company during the period of three (3) years prior to
Employee’s termination.

     B. For purposes of this Agreement, the “Restricted Area” shall be anywhere in the world.

III. MISCELLANEOUS.

     A. The existence of any claim or cause of action of the Employee against the Company shall not
constitute a defense to the enforcement by the Company of the above covenants or obligations.
Employee agrees that if Employee breaches any of the covenants or obligations set forth above, the
Restricted Period shall be suspended until such time as said violation shall cease. Employee
further agrees that if Employee breaches any of Employee’s covenants or obligations set forth
above, the Company shall have the right, in addition to other rights provided herein or any other
rights that it may have in law or equity, to seek and obtain from any court of competent
jurisdiction relief by way of injunction. Employee acknowledges and agrees that should Employee
breach any of Employee’s covenants and obligations above, the Company would suffer irreparable
damages and the Company would have no adequate remedy at law.
Employee further agrees that if the Company prevails in any legal proceeding to enforce this
Agreement, the Company shall be awarded, in addition to such other relief it may be granted,
attorneys’ fees and costs incurred in connection with such proceeding.

2

 

     B. Employee agrees that each of the above covenants are separate and distinct covenants,
independent of each other, and that the illegality or invalidity of any one or more of them or any
part of one or more of them shall not render the others illegal or invalid, and that if the
invalidity or unenforceability is due to the unreasonableness of the time or geographic area
covered by said covenants, said covenants shall nevertheless be enforced to the maximum extent
permitted by law and effective for such period of time and for such area as may be determined to be
reasonable by a court of competent jurisdiction.

     C. If any portion of this Agreement shall be determined to be invalid or unenforceable, then
such determination shall not affect any other portion of this Agreement and such other portions
shall remain in full force and effect.

     D. The term of this Agreement is co-extensive with the term of the Employment Agreement, as it
may, from time to time, be amended or otherwise extended; it being understood that Employee’s
post-employment obligations under this Agreement survive this Agreement.

     E. Employee covenants and acknowledges that Employee executed this Agreement prior to the
commencement of employment with Company and that this Agreement is supported by good, valuable and
sufficient consideration.

     F. For purposes of this Agreement, 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
registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

	 	(a)	 	If the notice is to the Company:
	 
	 	 	 	Myers Industries, Inc.

1293 South Main Street

Akron, OH 44301

Attn: President and Chief Executive Officer
	 
	 	 	 	With a copy to:
	 
	 	 	 	Benesch Friedlander Coplan & Aronoff LLP

200 Public Square, Suite 2300

Cleveland, Ohio 44114

Attn: Megan L. Mehalko

3

 

	 	(b)	 	If the notice is to the Executive:
	 
	 	 	 	Mr. David B. Knowles

7755 Tecumseh Lane

Cincinnati, Ohio 45243

or to such other address as either party may have furnished to the other in writing and in
accordance herewith; except that notices of change of address shall be effective only upon receipt.

     G. This Agreement may not be modified or amended except by a written instrument signed by both
the Company and Employee. This Agreement shall inure to the benefit of the successors and assigns
of the Company and shall be binding upon Employee’s heirs, executors, administrators and
successors.

     H. This Agreement and any dispute arising from or in relation to it shall be governed by and
construed in accordance with the laws of the State of Ohio. Venue of any action or dispute of any
kind arising from or relating to Employee’s employment with the Company is limited exclusively to
the courts of the State of Ohio. Employee acknowledges and agrees that this Agreement may be
assigned by the Company without Employee’s consent.

	 	 	 	 	 
	 	MYERS INDUSTRIES, INC.

 	 
	 	By:  	     /s/ John C. Orr
 	 
	 	 	John C. Orr, President and 	 
	 	 	Chief Executive Officer 	 
	 
	 	EMPLOYEE:

 	 
	 	     /s/ David B. Knowles
 	 
	 	David B. Knowles 	 
	 	 	 
	 

4

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