Document:

mye-ex10z_397.htm

 

Exhibit 10(z)

 OPTION AGREEMENT 
(Non-Qualified Stock Option)

This Option Agreement is made as of the __ day of ________, 201__ between Myers Industries, Inc., an Ohio corporation (hereinafter called the “Company”), and ______________, an employee of the Company or one or more of its Subsidiaries (hereinafter called the “Employee”).

WHEREAS, the Company has heretofore adopted the 2008 Incentive Stock Plan of Myers Industries, Inc., as amended and restated (the “Plan”); and

WHEREAS, it is a requirement of the Plan that an Option Agreement be executed to evidence the Non-Qualified Stock Option granted to the Employee.

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, and for other good and valuable consideration, the parties hereto have agreed, and do hereby agree, as follows:

1.Grant of Option.  The Company hereby grants to the Employee the right and option (hereinafter called the “Option”) to purchase all or any part of an aggregate of _____ shares of the common stock, no par value, of the Company (“Shares”) (such number being subject to adjustment as set forth herein and in the Plan) on the terms and conditions set forth herein and in the Plan.

2.Type of Option.  The Option granted under this Option Agreement is a non-qualified stock option and shall not be treated by the Company or the Employee as an incentive stock option for federal income tax purposes.

3.Option Price.  The option price of the Shares covered by the Option is $_____ per Share.

4.Term of Option.  The term of the Option shall be for a period of ten (10) years from the date hereof, subject to earlier termination as provided in the Plan or this Agreement.

5.Exercise of Option.

(a)Prior to its expiration or termination, and except as hereinafter provided, the Employee’s right to exercise the Option shall vest, and the Employee may exercise the Option, as follows:

(i)At any time after the first anniversary of the date of this Option Agreement, the Option may be exercised as to not more than one third (1/3) of Shares originally subject to this Option;

(ii)At any time after the second anniversary of the date of this Option Agreement, the Option may be exercised as to not more than an aggregate of two thirds (2/3) of the Shares originally subject to this Option; and

(iii)At any time after the third anniversary of the date of this Option Agreement, the Option may be exercised as to all or any part of the Shares originally subject to this Option.

(iv)Notwithstanding anything to the contrary herein, if the Employee’s employment with the Company and its Subsidiaries is terminated by reason of the Employee’s death, Disability or retirement on or after the Employee’s sixty-fifth birthday, the Option shall become exercisable in full as of the date of such termination.

(v)Notwithstanding anything to the contrary herein, if (x)  the Employee’s employment with the Company and its Subsidiaries is completely terminated by the Company for any reason other than Cause or by the Employee for Good Reason, in either case, following a Change in Control, the Option shall become exercisable in full immediately prior to such termination of employment or (y) the Option is 

 

 

terminated in connection with a Change in Control and not assumed or replaced with a substituted option or other right having a substantially equivalent value and substantially equivalent or better terms and conditions, then the Option shall become exercisable in full prior to such termination as provided in the Plan. 

(b)In order to exercise the Option, the person or persons entitled to exercise it shall deliver to the Company written notice of the number of full Shares with respect to which the Option is to be exercised.  Such notice shall be delivered to the Company’s Chief Financial Officer or such other person as the Committee may designate.  Unless (i) the Company, in its discretion, establishes “cashless exercise” procedures pursuant to Section 13.2 of the Plan, and (ii) the Committee, in its discretion, permits the person or persons entitled to exercise the Option to utilize such “cashless exercise” procedures, the notice shall be accompanied by payment in full for any Shares being purchased, which payment shall be in cash, in Shares that have been held free and clear of all liens and encumbrances for at least six (6) months valued at their Fair Market Value on the date of exercise, or by a combination of cash and Shares.

(c)No Shares shall be issued until full payment therefor has been made, and the Employee shall have none of the rights of a shareholder in respect of such Shares until full payment therefor has been made.

6.Nontransferability.  The Option shall not be transferable, other than:  (a) by will or the laws of descent and distribution, and the Option may be exercised, during the lifetime of the holder of the Option, only by him, or in the event of death, his Successor, or in the event of disability, his personal representative, or (b) pursuant to a qualified domestic relations order, as defined in the Code or ERISA or the rules thereunder.

7.Termination of Employment.  In the event of the complete termination of the Employee’s employment with the Company and its Subsidiaries for any reason other than cause, death, Disability or retirement on or after the Employee’s sixty-fifth (65th) birthday (the date of such termination of employment, the “Termination Date”), then (a) the Option may be exercised by the Employee (to the extent that he shall have been entitled to do so as of the Termination Date) at any time within three (3) months after the Termination Date, but not beyond the original term thereof, (b) the portion of the Option that has not vested (i.e., that is not then exercisable, taking into account Section 5.1(a)(v)) as of the Termination Date shall automatically terminate as of the Termination Date, and (c) the vested portion of the Option shall automatically terminate upon the expiration of the three (3) month period described above to the extent not theretofore exercised.  So long as the Employee shall continue to be an employee of the Company or one or more of its Subsidiaries, the Option shall not be affected by any change of duties or position.  Nothing in this Option Agreement shall confer upon the Employee any right to continue in the employ of the Company or any of its Subsidiaries or interfere in any way with the right of the Company or any such Subsidiary to terminate his employment at any time.  Anything contained herein to the contrary notwithstanding, in the event of the complete termination of the Employee’s employment with the Company and its Subsidiaries for cause, the Option, to the extent not theretofore exercised, shall automatically terminate as of the date of the Employee’s complete termination of employment with the Company and its Subsidiaries for cause.

8.Death or Disability of Employee.  If the Employee shall die while he shall be employed by the Company or one or more of its Subsidiaries, or within the period described in Section 7(a) above after the complete termination of his employment with the Company and its Subsidiaries other than for Cause if by the Company, or if the employment of the Employee shall terminate on account of his Disability, then (a) the Option may be exercised by the Employee’s Successor or personal representative, as the case may be, at any time within one (1) year after the date of the Employee’s death or Disability, but not beyond the term of the Option, and (b) the  Option shall automatically terminate upon the expiration of the one (1) year period described above to the extent not theretofore exercised.  For purposes of this Option Agreement, “Disability” shall mean permanent and total disability within the meaning of Section 22(e)(3) of the Code.

9.Retirement of Employee.  If the employment of the Employee with the Company and its Subsidiaries shall terminate as a result of his retirement on or after his sixty-fifth (65th) birthday, then the Option may be exercised in full  by the Employee (or in the event of the Employee’s subsequent death, the Employee’s Successor) at any time during the remaining term of the Option.

10.Taxes.  The Company shall have the right to require a person entitled to receive Shares pursuant to the exercise of the Option to pay the Company the amount of any taxes which the Company is or will be required to withhold 

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with respect to such Shares before the certificate for such Shares is delivered pursuant to the Option.  Furthermore, the Company may elect to deduct such taxes from any amounts then payable in cash or in shares or from any other amounts payable any time thereafter to the Employee.   

11.Adjustments Upon Changes in Capitalization.  In the event of changes in all of the outstanding Shares by reason of stock dividends, stock splits, reclassifications, recapitalizations, mergers, consolidations, combinations, exchanges of shares, separations, reorganizations, liquidations, or similar events, or in the event of extraordinary cash or non-cash dividends being declared with respect to the Shares, or similar transactions or events, the number and class of Shares subject to the Option hereby granted, the option price and all of the other applicable provisions thereof shall, subject to the provisions of the Plan, be correspondingly equitably adjusted by the Committee (which adjustment may, but need not, include payment to the holder of the Option, in cash or in shares, in an amount equal to the difference between the option price and the then current Fair Market Value of the Shares subject to the Option as equitably determined by the Committee) in order to prevent the diminution or enlargement of the benefits under this Option, as the Committee shall decide in its sole discretion.  Any such adjustment may provide for the elimination of any fractional share which might otherwise be subject to the Option.

12.Delivery of Shares on Exercise.  Delivery of certificates for Shares pursuant to the exercise of the Option may be postponed by the Company for such period as may be required for it, with reasonable diligence, to comply with any applicable requirements of any federal, state or local law or regulation or any administrative or quasi-administrative requirement applicable to the sale, issuance, distribution or delivery of such Shares.  The Committee may, in its sole discretion, require the holder of the Option to furnish the Company with appropriate representations and a written investment letter prior to the exercise of the Option or the delivery of any Shares pursuant to the Option.

13.Acknowledgment.  The Employee acknowledges that none of the Company, the Board, the Committee or any of the Company’s affiliates, officers, employees, agents or representatives has provided or is providing the undersigned with tax advice regarding the receipt of the Option or the exercise of the Option for Shares, and the Company has urged the Employee to consult the Employee’s own tax advisor with respect to the income taxation consequences of receiving, holding and disposing of the Option or any Shares acquired upon exercise of the Option.

14.Cause and Good Reason.  For purposes of this Agreement the terms “Cause” and “Good Reason” shall have the following meanings:

(a)“Cause” means:

(i)The commission by the Employee (evidenced by a conviction or written, voluntary and freely given confession) of a criminal act constituting a felony involving fraud or moral turpitude;

(ii)the repeated failure of the Employee to follow the reasonable directives of the Employee’s superiors after having been given written notice thereof; or

(iii)commission by the Employee of any act, which both (A) constitutes gross negligence or willful misconduct and (B) results in material economic harm to the Company or has a materially adverse effect on the Company’s operations, properties or business relationships.

(b)“Good Reason” means the occurrence of one or more of the following conditions arising without the consent of the Employee:

(i)a material diminution in the Employee’s annual base salary;

(ii)a material diminution in the Employee’s duties and responsibilities; or

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(iii)a material change in the geographic location at which the Employee must perform his Duties. 

In order for a condition to constitute a Good Reason, the Employee must provide written notification to the Company of the existence of the condition within forty-five (45) days of the initial existence of the condition (or within forty-five (45) days following the Employee actually becoming aware of such condition, if later), upon the notice of which the Company shall have a period of thirty (30) days during which it may remedy the condition.  Furthermore, to constitute a Good Reason, the Employee must voluntarily terminate employment with the Company within one hundred eighty (180) days following the initial existence of the condition (or within one hundred eighty (180) days following the Employee actually becoming aware of such condition.  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.

15.Incorporation of Provisions of the Plan.  All of the provisions of the Plan, pursuant to which this Option is granted, are hereby incorporated by reference and made a part hereof as if specifically set forth herein, and to the extent of any conflict between this Option Agreement and the terms contained in the Plan, the Plan shall control.  To the extent any capitalized terms are not otherwise defined herein, they shall have the meanings set forth in the Plan.

16.Invalidity of Provisions.  The invalidity or unenforceability of any provision of this Option Agreement as a result of a violation of any state or federal law, or of the rules or regulations of any governmental regulatory body, or any securities exchange shall not affect the validity or enforceability of the remainder of this Option Agreement.

17.Waiver and Modification.  The provisions of this Option Agreement may not be waived or modified unless such waiver or modification is in writing and signed by the parties hereto.

18.Interpretation.  All decisions or interpretations made by the Committee, in its reasonable discretion, with regard to any question arising under the Plan or this Option Agreement as provided by Section 4 of the Plan, shall be binding and conclusive on the Company and the Employee.

19.Multiple Counterparts.  This Option Agreement may be signed in multiple counterparts, all of which when taken together shall constitute an original agreement.  The execution by one party of any counterpart shall be sufficient execution by that party, whether or not the same counterpart has been executed by any other party.

20.Governing Law.  This Option Agreement shall be governed by the laws of the State of Ohio.

IN WITNESS WHEREOF, the Company has caused this Option Agreement to be duly executed by its duly authorized officer, and the Employee has hereunto set his hand, all as of the day and year first above written.

 

			
	
MYERS INDUSTRIES, INC.

	
 
	
 

	
By:
	
 

	
 
	
 

	
Its:
	
 

	
 

	
 

	
 
	
, Employee

 

 

8997210 v1

 

4mye-ex10aa_1002.htm

Exhibit 10(aa)

LONG-TERM CASH AWARD AGREEMENT

This Long-Term Cash Award Agreement (the “Agreement”) is made as of the __ day of March 2015, between __________________ (the “Employee”) and Myers Industries, Inc., an Ohio corporation (the “Company”).

WHEREAS, the Company has adopted the Performance Bonus Plan (the “Plan”).

WHEREAS, it is a requirement of the Plan that a Long-Term Cash Award Agreement be executed to evidence the Long-Term Cash Award awarded to the Employee.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

1.Defined Terms.  For purposes of this Agreement, the following terms shall have the meanings set forth below:

(a)“Applicable Percentage” means, with respect to any calendar year, an amount, expressed as a percentage, determined pursuant to the following table by reference to the Return on Invested Capital for such calendar year:

		
	
Return on Invested Capital:
	
Applicable Percentage:

	
 
	
 

	
Less than 8.5%
	
0%

	
8.5%
	
50%

	
8.51% - 13.49%
	
100%, minus the amount, expressed as a percentage, determined by dividing (x) the number of percentage points (not to exceed  5 percentage points) by which the ROIC is lower than 13.5% by (y) 5%

	
13.5%
	
100%

	
13.51% - 18.49%
	
100%, plus the amount, expressed as a percentage, determined by dividing (x) the number of percentage points (not to exceed 5 percentage points) by which the ROIC exceeds 13.5% by (y) 5%

	
18.5% or more
	
200%

 

(b)“Average Percentage” means the amount, expressed as a percentage, equal to the sum of the Applicable Percentages with respect to the 2015, 2016, and 2017 calendar years, divided by three (3).

(c)“Disability” means a physical or mental incapacity that prevents the Employee from performing his duties for a period of one hundred eighty (180) consecutive days in any period of two (2) consecutive fiscal years of the Company.

(d)“EBIT” means, with respect to any calendar year, the Company’s income from continuing operations before income taxes for such calendar year, increased by the net interest expense for such calendar 

year, in each case as set forth on the Company’s audited financial statements for such calendar year and with such adjustments as may be approved by the Compensation Committee of the Company’s Board of Directors, in its discretion. 

(e)“Net Long-Term Debt” means, with respect to any calendar year, the excess of (i) the outstanding long‐term debt, including the current portion of the long‐term debt of the Company, less (ii) the Company’s cash balance, in each case as of December 31 of the applicable calendar year as set forth on the Company’s audited financial statements for such calendar year.

(f)“Return on Invested Capital” or “ROIC” means, with respect to any calendar year, the EBIT of the Company for such calendar year, divided by the average of the sum of the outstanding Net Long‐Term Debt and Shareholders’ Equity of the Company as of December 31 of such calendar year and as of December 31 of the immediately preceding calendar year, in each case as set forth on the Company’s audited financial statements for such calendar year or immediately preceding calendar year, which amount shall be expressed as a percentage.

2.Long-Term Cash Award Payment.

(a)At the time set forth in Section 2(b) of this Agreement, the Company shall make a payment to the Employee of an amount equal to the product of (x) the Average Percentage and (y) $________ (USD).

(b)Any payment to be made to the Employee pursuant to Section 2(a) above shall be paid in cash as soon as reasonably practicable following the determination of the Applicable Percentage for the 2017 calendar year and the resulting Average Percentage, but in no event earlier than January 1, 2018 or later than March 15, 2018.  Notwithstanding the foregoing, if the Employee’s employment with the Company is terminated prior to December 31, 2017 by reason of the Employee’s death or disability (an “Acceleration Event”), then (i) the Company shall pay the Employee an amount determined in accordance with Section 2(a), provided that for purposes of such calculation, the Average Percentage shall be deemed to be 100%, (ii) the Company shall make such payment to the Employee in cash as soon as reasonably practicable following such Acceleration Event, but in no event later than thirty (30) days after the Acceleration Event, and (iii) the Employee will not be entitled to any further payment pursuant to this Agreement.  For the avoidance of doubt, if the Employee’s employment with the Company is terminated by reason of retirement on or after the Employee’s sixty-fifth birthday, by the Company without Cause (as defined in any written employment agreement or severance agreement between the Company and the Employee in effect at the time of such termination of employment) or by the Employee for Good Reason (as defined in any written employment agreement or severance agreement between the Company and the Employee in effect at the time of such termination of employment), any payment to be made to the Employee pursuant to Section 2(a) above shall be paid in cash as soon as reasonably practicable following the determination of the Applicable Percentage for the 2017 calendar year and the resulting Average Percentage, but in no event earlier than January 1, 2018 or later than March 15, 2018.

(c)The Employee’s right to any payment pursuant to this Section 2 shall be forfeited and extinguished if (i) his employment with the Company is terminated by the Company for Cause (as defined in any written employment agreement or severance agreement between the Company and the Employee in effect at the time of such termination of employment) or without Good Reason (as defined in any written employment agreement or severance agreement between the Company and the Employee in effect at the time of such termination of employment) if by the Employee (which, for the avoidance of doubt, will not include a termination by reason of the Employee’s death, disability or retirement on or after the Employee’s sixty-fifth birthday) prior to the earlier of December 31, 2017, or (ii) the Average Percentage is zero.

(d)The Employee’s right to receive any payment specified in this Section 2 shall not be subject in any manner to anticipation, alienation, sale, transfer (other than by will or the laws of descent and distribution), assignment, pledge, encumbrance or charge, either voluntarily or involuntarily, and any attempt to so alienate, anticipate, sell, transfer, assign, pledge, encumber or charge the same shall be null and void.  The Company shall not be liable for, and no amounts payable under this Agreement may be used to satisfy, the debts, contracts, 

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liabilities, engagements or torts of any person to whom such amount is or may be payable, except as required under applicable law. 

3.Taxes.  The Company shall have the right to deduct, from any amounts payable now or any time hereafter to the Employee, the amount of any taxes which the Company is or will be required by law to withhold, as and when required by law, with respect to the Employee’s receipt of a payment pursuant to this Agreement.

4.Source of Payments.  The right of the Employee to receive any payment pursuant to Section 2 of this Agreement shall be an unsecured claim against the general assets of the Company.  As such, the Employee shall rely solely on the unsecured promises of the Company as set forth in this Agreement for any payment set forth herein and nothing in this Agreement shall be construed to give the Employee any right, title, interest or claim in or to any specific asset, fund, reserve account or property of any kind whatsoever owned by the Company or in which the Company may have any right, title, interest or claim now or in the future, but the Employee shall have the right to enforce a claim against the Company in the same manner as any unsecured creditor.

5.Suspension of Payment Obligation.  Notwithstanding anything in this Agreement to the contrary, if the Company’s payment of any amount owed to the Employee pursuant to this Agreement would cause the Company to be in default, or would constitute a default, with the passage of time, the giving of notice or otherwise, under any loan or credit agreement or arrangement of the Company, the Company’s obligation to pay such amount shall be suspended until such time in the future as the Company is able to pay such amount without causing a default so long as such suspension of payment complies with the applicable provisions of Section 409A of the Internal Revenue Code of 1986, as amended.

6.Incorporation of Provisions of the Plan.  All of the provisions of the Plan pursuant to which the Long‐Term Cash Award is granted are hereby incorporated by reference and made a part hereof as if specifically set forth herein, and to the extent of any conflict between this Agreement and the terms contained in the Plan, the Plan shall control.  To the extent any capitalized terms are not otherwise defined herein, they shall have the meanings set forth in the Plan.

7.Modification.  No change, termination, waiver or modification of this Agreement shall be valid unless the same shall be in writing and signed by the parties hereto.

8.Parties to the Agreement.  This Agreement shall be binding upon and shall operate for the benefit of the Employee and his heirs, estate and personal representatives, and the Company and its successors.

9.No Rights to Employment.  Nothing in this Agreement shall confer upon the Employee any right to continue in the employ or service of the Company or interfere in any way with the right of the Company to terminate his employment or position at any time.

10.Acknowledgment and Section 409A Compliance.  

(a)The Employee acknowledges that neither the Company nor any of the Company’s affiliates, officers, employees, consultants, agents or representatives has provided or is providing the Employee with any tax advice regarding the Employee’s rights under this Agreement or any other tax matter, and the Company has urged the Employee to consult with the Employee’s own tax advisor with respect to the rights granted to the Employee under this Agreement and all other tax matters.

(b)It is intended that this Agreement comply with Section 409A of the Code, and the terms of this Agreement shall be interpreted and administered in a manner consistent with such intent, although in no event shall the Company have any liability to the Employee if this Agreement is determined not to comply with Section 409A of the Code.  For purposes of this Agreement, termination of employment means a “separation from service” within the meaning of Treasury Regulations Section 1.409A-1(b).

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(c)Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., payment may be made within thirty (3) days after an Acceleration Event), the actual date of payment within the specified period will be determined solely by the Company. 

(d)If the Employee is a “specified employee” within the meaning of Section 409A of the Code at the time of his “separation from service” within the meaning of Section 409A of the Code, then any payment otherwise required to be made to him under this Agreement on account of his separation from service, to the extent such payment (after taking into account all exclusions applicable to such payment under Section 409A of the Code) is properly treated as deferred compensation subject to Section 409A of the Code, shall not be made until the first business day after (i) the expiration of six months from the date of the Employee’s separation from service, or (ii) if earlier, the date of the Employee’s death.

11.Multiple Counterparts.  This Agreement may be executed in multiple counterparts, all of which taken together shall constitute an original agreement.  The execution by one party of any counterpart shall be sufficient execution by that party, whether or not the same counterpart has been executed by any other party.

12.Governing Law.  This Agreement shall be governed by the laws of the State of Ohio, without regard to conflict of laws principles.

13.Entire Agreement.  The whole and entire agreement of the parties is set forth in this Agreement and the parties are not bound by any agreements, understandings or conditions other than as expressly set forth herein.

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed, and the Employee has hereunto set his hand, all as of the day and year first above written.

 

MYERS INDUSTRIES, INC. 

 

 

By:

Its:

 

 

 

_______________________ Employee 

 

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