Document:

EX-10.2

 Exhibit 10.2 
 NONQUALIFIED STOCK OPTION AGREEMENT 
 RED MOUNTAIN RESOURCES, INC.

 2012 LONG-TERM INCENTIVE PLAN 
 1. Grant of Option. Pursuant to the Red Mountain Resources, Inc. 2012 Long-Term Incentive Plan (the “Plan”) for Employees, Contractors, and Outside Directors of Red Mountain
Resources, Inc., a Florida corporation (the “Company”), the Company grants to 
  

 
 (the
“Participant”), 
 an option (the “Option” or “Stock Option”) to
purchase a total of                     
(                    ) full shares of Common Stock of the Company (the “Optioned Shares”) at an “Option
Price” equal to $             per share (being the Fair Market Value per share of the Common Stock on the Date of Grant). 

The “Date of Grant” of this Stock Option is
                    . The “Option Period” shall commence on the Date of Grant and shall expire on the date immediately
preceding the tenth (10th) anniversary of the Date of
Grant, unless terminated earlier in accordance with Section 4 below. The Stock Option is a Nonqualified Stock Option. This Stock Option is intended to comply with the provisions governing nonqualified stock options under the final
Treasury Regulations issued on April 17, 2007, in order to exempt this Stock Option from application of Section 409A of the Code. 
 2. Subject to Plan. The Stock Option and its exercise are subject to the terms and conditions of the Plan, and the terms of the Plan shall control to the extent not otherwise inconsistent with the
provisions of this Nonqualified Stock Option Agreement (the “Agreement”). The capitalized terms used herein that are defined in the Plan shall have the same meanings assigned to them in the Plan. The Stock Option is subject
to any rules promulgated pursuant to the Plan by the Board or the Committee and communicated to the Participant in writing. 

3. Vesting; Time of Exercise. Except as specifically provided in this Agreement and subject to certain restrictions and conditions
set forth in the Plan, the Optioned Shares shall be vested and the Stock Option shall be exercisable as follows: 

a.
                     of the total Optioned Shares shall vest and that portion of the Stock Option shall be exercisable on the first
anniversary of the Date of Grant, provided the Participant is employed by (or, if the Participant is a Contractor or an Outside Director, is providing services to) the Company or a Subsidiary on that date. 

b.
                     of the total Optioned Shares shall vest and that portion of the Stock Option shall become exercisable on the second
anniversary of the Date of Grant, provided the Participant is employed by (or, if the Participant is a Contractor or an Outside Director, is providing services to) the Company or a Subsidiary on that date. 

c.
                     of the total Optioned Shares shall vest and that portion of the Stock Option shall become exercisable on third
anniversary of the Date of Grant, provided the Participant is employed by (or, if the Participant is a Contractor or an Outside Director, is providing services to) the Company or a Subsidiary on that date. 

 In the event that a Change in Control occurs, then immediately prior to the effective date of such Change in
Control, the total Optioned Shares not previously vested shall thereupon immediately become vested and this Stock Option shall become fully exercisable. 
 In the event of the Participant’s death, then immediately upon his or her death, the total Optioned Shares not previously vested shall thereupon immediately become vested and this Stock Option shall
become fully exercisable. 
 4. Term; Forfeiture. 

a. Except as otherwise provided in this Agreement, to the extent the unexercised portion of the Stock Option relates to
Optioned Shares which are not vested on the date of the Participant’s Termination of Service, the Stock Option will be terminated on that date. The unexercised portion of the Stock Option that relates to Optioned Shares which are vested will
terminate at the first of the following to occur: 
 i. 5 p.m. on the date the Option Period terminates;

 ii. 5 p.m. on the date which is twelve (12) months following the date of the Participant’s
Termination of Service due to death, Retirement or Total and Permanent Disability; 
 iii. immediately upon the
Participant’s Termination of Service by the Company for Cause (as defined herein); 
 iv. 5 p.m. on the date
which is three (3) months following the date of the Participant’s Termination of Service for any reason not otherwise specified in this Section 4.a.; 

v. 5 p.m. on the date the Company causes any portion of the Stock Option to be forfeited pursuant to Section 7
hereof. 
 b. For purposes hereof, “Cause” shall mean (i) the Participant’s
commission of a dishonest or fraudulent act in connection with the Participant’s employment, or the misappropriation of Company property; (ii) the Participant’s conviction of, or plea of nolo contendere to, a felony or crime involving
dishonesty; (iii) the Participant’s inattention to duties, unsatisfactory performance, or failure to perform the Participant duties hereunder, provided in each case the Company gives the Participant written notice and thirty (30) days
to correct the Participant’s performance to the Company’s satisfaction; (iv) a substantial failure to comply with the Company’s policies; (v) a material and willful breach of the Participant’s fiduciary duties in any
material respect, provided in each case the Company gives the Participant written notice and thirty (30) days to correct; (vi) the Participant’s failure to comply in any material respect with any legal written directive of the Board;
or (vii) any act or omission of the Participant which is of substantial detriment to the Company because of the Participant’s intentional failure to comply with any statute, rule or regulation, except any act or omission believed by the
Participant in good faith to have been in or not opposed to the best interest of the Company (without intent of the Participant to gain, directly or indirectly, a profit to which the Participant was not legally entitled). Any determination of
whether an the Participant should be terminated for Cause pursuant to this Agreement shall be made in the sole, good faith discretion of the Board, and shall be binding upon all parties affected thereby. 

  
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 5. Who May Exercise. Subject to the terms and conditions set forth in Sections 3
and 4 above, during the lifetime of the Participant, the Stock Option may be exercised only by the Participant, or by the Participant’s guardian or personal or legal representative. If the Participant’s Termination of Service is due to
his death prior to the dates specified in Section 4.a. hereof, and the Participant has not exercised the Stock Option as to the maximum number of vested Optioned Shares as set forth in Section 3 hereof as of the date of
death, the following persons may exercise the exercisable portion of the Stock Option on behalf of the Participant at any time prior to the earliest of the dates specified in Section 4.a. hereof: the personal representative of his
estate, or the person who acquired the right to exercise the Stock Option by bequest or inheritance or by reason of the death of the Participant; provided that the Stock Option shall remain subject to the other terms of this Agreement, the Plan, and
Applicable Laws, rules, and regulations. 
 6. No Fractional Shares. The Stock Option may be exercised only with respect
to full shares, and no fractional share of stock shall be issued. 
 7. Manner of Exercise. Subject to such
administrative regulations as the Committee may from time to time adopt, the Stock Option may be exercised by the delivery of written notice to the Committee setting forth the number of shares of Common Stock with respect to which the Stock Option
is to be exercised, the date of exercise thereof (the “Exercise Date”) which shall be at least three (3) days after giving such notice unless an earlier time shall have been mutually agreed upon. On the Exercise Date,
the Participant shall deliver to the Company consideration with a value equal to the total Option Price of the shares to be purchased, payable as follows: (a) cash, check, bank draft, or money order payable to the order of the Company,
(b) if the Company, in its sole discretion, so consents in writing, Common Stock (including Restricted Stock) owned by the Participant on the Exercise Date, valued at its Fair Market Value on the Exercise Date, and which the Participant has not
acquired from the Company within six (6) months prior to the Exercise Date, (c) if the Company, in its sole discretion, so consents in writing, by delivery (including by FAX) to the Company or its designated agent of an executed
irrevocable option exercise form together with irrevocable instructions from the Participant to a broker or dealer, reasonably acceptable to the Company, to sell certain of the shares of Common Stock purchased upon exercise of the Stock Option or to
pledge such shares as collateral for a loan and promptly deliver to the Company the amount of sale or loan proceeds necessary to pay such purchase price, (d) by a “net exercise” method whereby the Company withholds from the delivery
of Common Stock for which the Option was exercised that number of shares of Common Stock having a Fair Market Value equal to the aggregate Option Price for the Common Stock for which the Option was exercised and/or (e) in any other form of
valid consideration that is acceptable to the Committee in its sole discretion. 
 Upon payment of all amounts due from the
Participant, the Company shall cause certificates for the Common Stock then being purchased to be delivered to the Participant (or the person exercising the Participant’s Stock Option in the event of his death) at its principal business office
promptly after the Exercise Date. The obligation of the Company to deliver shares of Common Stock shall, however, be subject to the condition that, if at any time the Company shall determine in its discretion that the listing, registration, or
qualification of the Stock Option or the Common Stock upon any securities exchange or inter-dealer quotation system or under any state or federal law, or the consent or approval of any governmental regulatory body, is necessary as a condition of, or
in connection with, the Stock Option or the issuance or purchase of shares of Common Stock thereunder, then the Stock Option may not be exercised in whole or in part unless such listing, registration, qualification, consent, or approval shall have
been effected or obtained free of any conditions not reasonably acceptable to the Committee. 
 If the Participant fails to pay
for any of the Optioned Shares specified in such notice or fails to accept delivery thereof, that portion of the Participant’s Stock Option and right to purchase such Optioned Shares may be forfeited by the Participant. 

  
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 8. Nonassignability. The Stock Option is not assignable or transferable by the
Participant except by will or by the laws of descent and distribution. 
 9. Rights as Shareholder. The Participant will
have no rights as a shareholder with respect to any of the Optioned Shares until the issuance of a certificate or certificates to the Participant for the shares of Common Stock. The Optioned Shares shall be subject to the terms and conditions of
this Agreement. Except as otherwise provided in Section 10 hereof, no adjustment shall be made for dividends or other rights for which the record date is prior to the issuance of such certificate or certificates. The Participant, by his
or her execution of this Agreement, agrees to execute any documents requested by the Company in connection with the issuance of the shares of Common Stock. 
 10. Adjustment of Number of Optioned Shares and Related Matters. The number of shares of Common Stock covered by the Stock Option, and the Option Prices thereof, shall be subject to adjustment in
accordance with Articles 11 - 13 of the Plan. 
 11. Nonqualified Stock Option. The Stock Option shall not be
treated as an Incentive Stock Option. 
 12. Voting. The Participant, as record holder of some or all of the Optioned
Shares following exercise of this Stock Option, has the exclusive right to vote, or consent with respect to, such Optioned Shares until such time as the Optioned Shares are transferred in accordance with this Agreement; provided,
however, that this Section shall not create any voting right where the holders of such Optioned Shares otherwise have no such right. 
 13. Specific Performance. The parties acknowledge that remedies at law will be inadequate remedies for breach of this Agreement and consequently agree that this Agreement shall be enforceable by
specific performance. The remedy of specific performance shall be cumulative of all of the rights and remedies at law or in equity of the parties under this Agreement. 
 14. Participant’s Representations. Notwithstanding any of the provisions hereof, the Participant hereby agrees that he or she will not exercise the Stock Option granted hereby, and that the
Company will not be obligated to issue any shares to the Participant hereunder, if the exercise thereof or the issuance of such shares shall constitute a violation by the Participant or the Company of any provision of any law or regulation of any
governmental authority. Any determination in this connection by the Company shall be final, binding, and conclusive. The obligations of the Company and the rights of the Participant are subject to all Applicable Laws, rules, and regulations.

 15. Investment Representation. Unless the shares of Common Stock are issued to the Participant in a transaction
registered under applicable federal and state securities laws, by his or her execution hereof, the Participant represents and warrants to the Company that all Common Stock which may be purchased hereunder will be acquired by the Participant for
investment purposes for his or her own account and not with any intent for resale or distribution in violation of federal or state securities laws. Unless the Common Stock is issued to him or her in a transaction registered under the applicable
federal and state securities laws, all certificates issued with respect to the Common Stock shall bear an appropriate restrictive investment legend and shall be held indefinitely, unless they are subsequently registered under the applicable federal
and state securities laws or the Participant obtains an opinion of counsel, in form and substance satisfactory to the Company and its counsel, that such registration is not required. 

  
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 16. Participant’s Acknowledgments. The Participant acknowledges that a copy of
the Plan has been made available for his or her review by the Company, and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts this Stock Option subject to all the terms and provisions thereof. The
Participant hereby agrees to accept as binding, conclusive, and final all decisions or interpretations of the Committee or the Board, as appropriate, upon any questions arising under the Plan or this Agreement. 

17. Law Governing. This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Texas
(excluding any conflict of laws rule or principle of Texas law that might refer the governance, construction, or interpretation of this Agreement to the laws of another state). 

18. No Right to Continue Service or Employment. Nothing herein shall be construed to confer upon the Participant the right to
continue in the employ or to provide services to the Company or any Subsidiary, whether as an Employee or as a Contractor or as an Outside Director, or interfere with or restrict in any way the right of the Company or any Subsidiary to discharge the
Participant as an Employee, Contractor or Outside Director at any time. 
 19. Legal Construction. In the event that any
one or more of the terms, provisions, or agreements that are contained in this Agreement shall be held by a court of competent jurisdiction to be invalid, illegal, or unenforceable in any respect for any reason, the invalid, illegal, or
unenforceable term, provision, or agreement shall not affect any other term, provision, or agreement that is contained in this Agreement and this Agreement shall be construed in all respects as if the invalid, illegal, or unenforceable term,
provision, or agreement had never been contained herein. 
 20. Covenants and Agreements as Independent Agreements. Each
of the covenants and agreements that is set forth in this Agreement shall be construed as a covenant and agreement independent of any other provision of this Agreement. The existence of any claim or cause of action of the Participant against the
Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants and agreements that are set forth in this Agreement. 

21. Entire Agreement. This Agreement together with the Plan supersede any and all other prior understandings and agreements,
either oral or in writing, between the parties with respect to the subject matter hereof and constitute the sole and only agreements between the parties with respect to the said subject matter. All prior negotiations and agreements between the
parties with respect to the subject matter hereof are merged into this Agreement. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party or by anyone
acting on behalf of any party, which are not embodied in this Agreement or the Plan and that any agreement, statement or promise that is not contained in this Agreement or the Plan shall not be valid or binding or of any force or effect. 

22. Parties Bound. The terms, provisions, and agreements that are contained in this Agreement shall apply to, be binding upon, and
inure to the benefit of the parties and their respective heirs, executors, administrators, legal representatives, and permitted successors and assigns, subject to the limitation on assignment expressly set forth herein. 

23. Modification. No change or modification of this Agreement shall be valid or binding upon the parties unless the change or
modification is in writing and signed by the parties; provided, however, that the Company may change or modify this Agreement without the Participant’s consent or signature if the Company determines, in its sole discretion, that such change or
modification is necessary for purposes of compliance with or exemption from the requirements of Section 409A of the Code or any regulations or other guidance issued thereunder. Notwithstanding the preceding sentence, the Company may amend the
Plan to the extent permitted by the Plan. 

  
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 24. Headings. The headings that are used in this Agreement are used for reference and
convenience purposes only and do not constitute substantive matters to be considered in construing the terms and provisions of this Agreement. 
 25. Gender and Number. Words of any gender used in this Agreement shall be held and construed to include any other gender, and words in the singular number shall be held to include the plural, and
vice versa, unless the context requires otherwise. 
 26. Notice. Any notice required or permitted to be delivered
hereunder shall be deemed to be delivered only when actually received by the Company or by the Participant, as the case may be, at the addresses set forth below, or at such other addresses as they have theretofore specified by written notice
delivered in accordance herewith: 
 a. Notice to the Company shall be addressed and delivered as follows:

 Red Mountain Resources, Inc. 

2515 McKinney Avenue, Suite 900 
 Dallas, TX 75201 

Attn:                   
                      
 Facsimile: (214) 871-0406 
 b. Notice to the Participant shall
be addressed and delivered as set forth on the signature page. 
 27. Tax Requirements. The Participant is hereby
advised to consult immediately with his or her own tax advisor regarding the tax consequences of this Agreement. The Company or, if applicable, any Subsidiary (for purposes of this Section 27, the term “Company”
shall be deemed to include any applicable Subsidiary), shall have the right to deduct from all amounts paid in cash or other form in connection with the Plan, any Federal, state, local, or other taxes required by law to be withheld in connection
with this Award. The Company may, in its sole discretion, also require the Participant receiving shares of Common Stock issued under the Plan to pay the Company the amount of any taxes that the Company is required to withhold in connection with the
Participant’s income arising with respect to this Award. Such payments shall be required to be made when requested by the Company and may be required to be made prior to the delivery of any certificate representing shares of Common Stock. Such
payment may be made (i) by the delivery of cash to the Company in an amount that equals or exceeds (to avoid the issuance of fractional shares under (iii) below) the required tax withholding obligations of the Company; (ii) if the
Company, in its sole discretion, so consents in writing, the actual delivery by the exercising Participant to the Company of shares of Common Stock that the Participant has not acquired from the Company within six (6) months prior to the date
of exercise, which shares so delivered have an aggregate Fair Market Value that equals or exceeds (to avoid the issuance of fractional shares under (iii) below) the required tax withholding payment; (iii) if the Company, in its sole
discretion, so consents in writing, the Company’s withholding of a number of shares to be delivered upon the exercise of the Stock Option, which shares so withheld have an aggregate Fair Market Value that equals (but does not exceed) the
required tax withholding payment; or (iv) any combination of (i), (ii), or (iii). The Company may, in its sole discretion, withhold any such taxes from any other cash remuneration otherwise paid by the Company to the Participant 

  
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 * * * * * * * * 
 [Remainder of Page Intentionally Left Blank 
 Signature Page
Follows.] 

  
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 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer, and the Participant, to evidence his consent and approval of all the terms hereof, has duly executed this Agreement, as of the date specified in Section 1 hereof. 

 

			
	COMPANY:
	
	RED MOUNTAIN RESOURCES, INC.
		
	By:	 	
                    
                     

 
			
	Name:	 	  

			
	Title:	 	  

			
	
	PARTICIPANT:
	
	  

	Signature

 
			
		
	Name:	 	  

			
	Address:	 	  

		 	  

  
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 Exhibit 10(l) 
 MATERIAL SCIENCES CORPORATION 
 FY 201_ LONG-TERM INCENTIVE PLAN

 NON-QUALIFIED STOCK OPTION AGREEMENT 
 THIS NON-QUALIFIED STOCK OPTION AGREEMENT (this “Agreement”) is entered into between Material Sciences Corporation, a Delaware corporation (the “Company”), and
                     (“Employee”), pursuant to the MATERIAL SCIENCES CORPORATION 2012 Incentive Compensation Plan (the
“Plan”), to document an award made as of                     , 201     (“Grant Date”).
All capitalized terms used, but otherwise not defined herein, have the meanings set forth in the Plan. 
  

	 	1.	Option Grant. Subject to the terms and conditions set forth in the Plan, the FY 201_ LTIP and this Agreement, the Company hereby grants to the Employee the right
to purchase (the “Option”) from the Company                      shares (the “Option Shares”) of the Company’s common stock,
$.02 par value (the “Common Stock”) at an exercise price per share (the “Option Price”) equal to $             (which is the closing price of a share of the Common Stock
on the NASDAQ Stock Market (“NASDAQ”) as of the trading day immediately preceding the Grant Date, rounded up to the next highest Twenty-Five Cent ($0.25) amount), to be exercisable at the times and on the terms and subject to the
conditions set forth herein. The Option shall be null and void unless the Employee executes this Agreement and returns it to the Secretary of the Company at its office in Elk Grove Village, Illinois, within thirty (30) days of receipt by the
Employee. The Option will expire on the seventh anniversary of the Grant Date (the “Final Expiration Date”), unless terminated earlier as provided under Sections 3 or 4. The Option is not intended to be an “incentive stock
option” within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”) and shall be interpreted and construed in accordance with that intention. 

 

	 	2.	Vesting and Exercise. The Option shall be exercisable only to the extent vested in accordance with this Section 2. 

 

	 	a)	The Option shall become vested as to one hundred percent (100%) of the Option Shares on the third anniversary of the Grant Date, provided that Employee remains
continuously in Employment by the Company through such date. 

  

	 	b)	Notwithstanding Section 2(a) hereof, but subject to the provisions of this Section 2(b) hereof, the Option shall become vested in one hundred percent
(100%) of the Option Shares on the date of Employee’s death or Disability or upon a Change in Control. Death, Disability, and Change in Control are the only events that accelerate the vesting of the Option granted under this Agreement.

  

	 	c)	Notwithstanding Section 2(a) hereof, but subject to the provisions of this Section 2(b) hereof, the Option shall become vested for Retirement and Termination
of Employment without Cause as follows: 

  

	 	i)	Option shall become vested as to a number of Option Shares (rounded to the whole nearest share) equal to the product of (A) the total number of Option Shares,
multiplied by (B) a fraction, (y) the numerator equals the number of whole or partial calendar months which have elapsed from the Grant Date, and (z) the denominator of which is 36. 

	 	d)	Any portion of the Option that is not, or shall not have become, vested as of the termination of Employee’s Employment by the Company, shall be forfeited to the
Company effective on the termination date of Employee’s Employment by the Company. Any portion of the Option that is or shall have become vested as of the termination of Employee’s Employment by the Company, shall be exercisable in
accordance with the applicable terms of this Agreement. 

  

	 	e)	Subject to the foregoing, the Option shall be exercisable, and Employee shall have the right to purchase the Option Shares, from time to time and in whole or in part,
only if Employee is in Employment by the Company on the exercise date, except as provided under Section 3 or Section 4, as applicable. 

  

	 	f)	Eligibility for this FY 201_ LTIP is based on the employee being actively employed on the day the grant is granted. 

 

	 	3.	Termination of Employment. Subject to this Section 3, the Option shall expire and permanently terminate upon, and shall not be exercisable or exercised
after, Employee’s Termination of Employment for any reason other than a cessation of employment due to death or Disability. Upon a Termination of Employment described in this Section 3, except as specifically set forth in Section 4,
Employee may exercise the Option, to the extent vested, until the earlier to occur of (a) the ninetieth (90th) day after the effective date of the Termination of Employment or (b) the Final Expiration Date; provided, however that no
portion of the Option may be exercised in the event of or after Executive’s dismissal for Cause. 

  

	 	4.	Death, Disability, or Retirement. If Employee (a) dies while in Employment by the Company, (b) incurs a Disability while in Employment by the Company,
or (c) terminates his employment as a result of Retirement, the Option, to the extent vested, may be exercised until the earlier to occur of (i) the third (3rd) anniversary of Employee’s death, Disability, or Retirement, as
applicable, and (ii) the Final Expiration Date. 

  

	 	5.	Method of Exercise and Payment. Subject to the limitations herein set forth, Employee or Employee’s beneficiary, if applicable, may exercise the Option by
delivery of written notice to the Secretary of the Company in Elk Grove Village, Illinois, specifying the number of Option Shares to be purchased and payment of the Option Price, as described below; provided, however, that no
fractional shares may be purchased hereunder at any time. Payment of the Option Price shall be made (a) in cash or by check, bank draft or money order to the order of Material Sciences Corporation (collectively, “cash”),
(b) at the discretion of Employee and with the consent of the Committee, in shares of Common Stock (valued as of the date of the notice of exercise) with a total value equal to or less than the aggregate Option Price, plus cash in the amount,
if any, by which the aggregate Option Price exceeds the value of such shares of Common Stock or (c) at the discretion of the Committee, by delivery of a properly executed exercise notice together with such other documentation as the Committee
and a qualified broker, if applicable, shall require to effect an exercise of the Option, and delivery to the Company of the proceeds required to pay the exercise price; provided, however, that this method of payment shall not be
available to an “Executive Officer” (as defined in Rule 3b-7 of the Securities Exchange Act of 1934, as amended from time to time, and any successor thereto) if it would constitute a loan by the Company to the Employee.

  
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	 	6.	Tax Withholding. As a condition precedent to the exercise of the Option, Employee shall, if requested by the Company, pay to the Company, in addition to the
aggregate Option Price, such amount of cash as the Company may be required, under applicable federal, state or local law or regulations, to withhold and pay over as income or other withholding taxes. 

 

	 	7.	Delivery of Option Shares. Upon the exercise of the Option in whole or in part, the Company shall deliver a certificate or certificates representing the number
of shares of Common Stock purchased against full payment therefore in the manner set forth in Section 5 hereof, and the Company shall pay all original issue or transfer taxes and all other fees and expenses incident to such delivery except as
otherwise provided in Section 6 hereof. 

  

	 	8.	Transferability. None of the Option, this Agreement or any rights under this Agreement may be transferred other than by will or the laws of descent and
distribution, and during Employee’s lifetime the Option shall be exercisable only by Employee or his or her legal representative. Any other transfer or any attempted assignment, pledge or hypothecation, whether or not by operation of law, shall
be void and shall nullify the Option. The Option shall not be subject to execution, attachment or other process, and no person or entity shall be entitled to exercise any rights of Employee under this Agreement or possess any rights under this
Agreement by virtue of any attempted execution, attachment or other process. Notwithstanding the foregoing, the Option may be transferred by law or pursuant to the laws of descent and distribution or by domestic relations order.

  

	 	9.	Adjustments. Upon the occurrence of any of the following events, the Option shall be adjusted as follows: 

 

	 	a)	In case the number of outstanding shares of Common Stock shall be increased by stock split, stock dividend, or other relevant change in the capitalization of the
Company (which shall not include the sale by the Company of shares of Common Stock or securities convertible into shares of Common Stock), the number of Option Shares which may thereafter be purchased under the Option shall be proportionately
increased and the Option Price shall be proportionately decreased. 

  

	 	b)	In case the number of outstanding shares of Common Stock shall be decreased by reverse stock split, combination of shares, recapitalization or other relevant change in
the capitalization of the Company (which shall not include the purchase or retirement by the Company of shares of Common Stock or securities convertible into such shares of Common Stock), the number of Option Shares which may thereafter be purchased
hereunder shall be proportionately decreased and the Option Price shall be proportionately increased. 

  
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	 	10.	Registration. The Option and this Agreement is subject to the condition that if at any time the Committee shall determine, in its discretion, that the listing of
the Option Shares on any securities exchange, or the registration or qualification of the Option Shares under any federal or state law, or the consent or approval of any regulatory body, shall be necessary or desirable as a condition of, or in
connection with, the granting of this Option or the purchase or delivery of Option Shares, the Option may not be exercised, in whole or in part, and the Option Shares may not be delivered, as the case may be, unless and until such listing,
registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee. The Company agrees to make every reasonable effort to effect or obtain any such listing, registration,
qualification, consent or approval. 

  

	 	11.	Reservation. The Company shall at all times prior to the expiration or termination of the Option reserve and keep available, either in its treasury or out of its
authorized but unissued shares of Common Stock, the full number of shares subject hereto from time to time. 

  

	 	12.	No Privileges. Employee shall not be entitled to any privileges of ownership with respect to the Option Shares unless and until purchased and delivered upon the
exercise in whole or in part of the Option. 

  

	 	13.	Rights of Employee. In no event shall the granting of the Option or the acceptance of this Agreement by Employee interfere with or limit in any way the right of
the Company to terminate Employee’s employment at any time with or without cause, nor confer upon Employee any right to continue in Employment by the Company for any period of time or to continue his or her present or any other rate of
compensation. 

  

	 	14.	Beneficiary Designation. Subject to Section 8, Employee may name, from time to time, beneficiaries as provided in the Plan. 

 

	 	15.	Committee Resolution. The Committee shall have the right and discretion to resolve all questions which may arise in connection with the Option and with its
exercise. 

  

	 	16.	Miscellaneous. 

  

	 	a)	This Agreement shall be binding upon and inure to the benefit of any successor or successors of the Company and any person or persons (or entity or entities) who shall,
upon the death of Employee, acquire any rights hereunder. 

  

	 	b)	The parties to this Agreement agree to execute such further instruments and to take such further actions as may reasonably be required to carry out the intent of this
Agreement. 

  

	 	c)	Any notice required or permitted under this Agreement shall be given in writing and shall be deemed effectively given when personally delivered or five
(5) business days after deposit in the United States Post Office, by certified mail with postage and fees prepaid, return receipt requested. Notices shall be addressed, in the case of Employee, to the address set forth below his or her
signature on the signature page hereto and in the case of the Company, to it at its principal executive office, or at such other address as such party may designate by ten (10) days’ advance written notice to the other party.

  
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	 	d)	This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof. 

 

	 	e)	The corporate law of the State of Delaware shall govern all questions concerning the relative rights of the Company and its shareowners. All other questions concerning
the construction, validity and interpretation of this Agreement shall be governed by the internal laws (and not the laws of conflicts) of the State of Illinois. 

 

	 	f)	The captions used herein are for convenience of reference only and shall not be considered in the interpretation of the provisions hereof. 

 

	17.	Certain Definitions. As used herein, the following terms have the following meanings: 

 

	 	a)	“Affiliate” means any corporation, partnership, limited liability company, association, joint-stock company, trust, unincorporated association or other
entity (other than the Company) that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with the Company, including the subsidiaries of the Company and other entities controlled by such
subsidiaries. 

  

	 	b)	“Agreement” has the meaning set forth in the preamble hereof. 

 

	 	c)	“Cause” with respect to the termination of Employee’s Employment by the Company, means one or more of the following: (i) Employee’s
commission of a felony or other crime involving moral turpitude or the commission of any other act or omission involving dishonesty, disloyalty or fraud with respect to the Company or any of its Affiliates or any of their customers or suppliers,
(ii) Employee’s reporting to work under the influence of alcohol or illegal drugs, the use of illegal drugs (whether or not at the workplace) or other conduct causing the Company or any of its Affiliates public disgrace or disrepute or
economic harm, (iii) failure by Employee to perform duties as reasonably directed by the Company officer or other employee to whom Employee primarily reports (or, with respect to the Chief Executive Officer, the Board), (iv) any willful
act or omission aiding or abetting a competitor, supplier or customer of the Company or any of its subsidiaries to the disadvantage or detriment of the Company and its Affiliates, (v) breach of fiduciary duty, gross negligence or willful
misconduct with respect to the Company or any of its Affiliates or (vi) if Employee is covered by an employment agreement with the Company or an Affiliate, any breach of such agreement which is not cured to the Company’s Chief Executive
Officer (or, with respect to such Chief Executive Officer, the Board) reasonable satisfaction within fifteen (15) days after written notice thereof to Employee. 

  
 -5-

	 	d)	“Change in Control” means: 

  

	 	i)	the acquisition by any Person or Persons acting in concert, of beneficial ownership (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended
(“Exchange Act”)), directly or indirectly, of more than fifty percent (50%) of the outstanding stock of the Company (calculated as provided in paragraph (d) of Rule 13d-3 under the Exchange Act in the case of rights to
acquire stock); or 

  

	 	ii)	the consummation of (A) any consolidation or merger of the Company, other than a consolidation or merger of the Company in which holders of its stock immediately
prior to the consolidation or merger hold proportionately at least a majority of the outstanding common stock of the continuing or surviving corporation; or (B) any sale, lease, exchange or other transfer (in one transaction or a series of
related transactions) of all or substantially all the assets of the Company (“Transfer Transaction”), except where (1) the Company owns all of the outstanding stock of the transferee entity or (2) the holders of the
Company’s common stock immediately prior to the Transfer Transaction own proportionately at least a majority of the outstanding stock of the transferee entity, immediately after the Transfer Transaction; or (C) any consolidation or merger
of the Company where, after the consolidation or merger, one Person owns one hundred percent (100%) of the shares of stock of the Company (except where the holders of the Company’s common stock immediately prior to such merger or
consolidation own proportionately at least a majority of the outstanding stock of such Person immediately after such consolidation or merger). 

  

	 	e)	“Code” has the meaning set forth in Section 1 hereof. 

 

	 	f)	“Committee” means the Company’s Compensation, Organization and Corporate Governance Committee or other committee authorized by the Company’s
Board of Directors to administer the Plan (or any successor plan thereto). 

  

	 	g)	“Common Stock” has the meaning set forth in Section 1 hereof. 

 

	 	h)	“Company” has the meaning set forth in the preamble hereof. 

 

	 	i)	“Disability” means a mental or physical illness that entitles Employee to receive benefits under the long-term disability plan of the Company, or if
there is no such plan or Employee is not covered by such a plan or a mental or physical illness that renders Employee totally and permanently incapable of performing Employee’s duties for the Company, as determined by the Committee. The
determination of Disability for purposes of this Agreement shall not be construed to be an admission of disability for any other purpose. 

  

	 	j)	“Employee” has the meaning set forth in the preamble hereof. 

 

	 	k)	“Employment by the Company” shall mean continuous employment by the Company or an Affiliate. For purposes of determining whether Employee has been
continuously employed, any leave of absence for periods and purposes conforming to the personnel policies of the Company and approved by the Committee shall not be deemed to be an interruption of continuous service. 

  
 -6-

	 	l)	“Final Expiration Date” has the meaning set forth in Section 1 hereof 

 

	 	m)	“Grant Date” has the meaning set forth in the preamble hereof. 

 

	 	n)	“Option Price” has the meaning set forth in Section 1 hereof 

 

	 	o)	“Option Shares” has the meaning set forth in Section 1 hereof. 

 

	 	p)	“Person” has the meaning provided in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, including a
“group” as defined in Section 13(d) except that such term shall not include: (i) the Company or any of its subsidiaries; (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or
any of its Affiliates; (iii) an underwriter temporarily holding securities pursuant to an offering of such securities; or (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company. 

  

	 	q)	“Plan” has the meaning set forth in the preamble hereof. 

  

	 	r)	“Retirement” means Employee’s voluntary termination of Employee’s Employment by the Company after Employee has attained his or her full
Social Security retirement age (i.e., the age at which the Participant may receive unreduced Social Security benefits), other than a termination by the Company or an Affiliate for Cause. 

 

	 	s)	“Termination of Employment” means Employee ceasing to be in continuous Employment by the Company for any reason whatsoever, including without
limitation, Employee’s death, Disability or discharge. 

  
 -7-

 IN WITNESS WHEREOF, this Agreement has been duly executed as of the day and year first
written above. 
  

			
	MATERIAL SCIENCES CORPORATION
		
	By:	 	 
		
	Name:	 	
	
	Title: Corporate Director, Human Resources
	
	Employee
		
	By:	 	 
		
	 Name:
	 	

  
 -8-

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