Document:

Exhibit 10.2

 

CHASE CORPORATION

 

Long Term Incentive Plan

Award Design and Grant Process

Fiscal Year Ending August 31, 2008

 

Key Provisions

 

·                  Long term
incentive:  performance shares

·                  Performance measures:  Earnings
Before Tax (EBT) as approved by the Board of Directors

·                  Performance
measurement period:  September 1,
2007 through August 31, 2008

·                  Vesting:  2 years after performance measurement period
(August 31, 2010)

·                  Grant date:  first day of measurement period

·                  Stock price for
award:  closing price for last trading day
prior to grant date ($17.27)

·                  Threshold:  the point at which an award is earned (80% of
target).  Between threshold and target
the award increases on a pro-rata basis.

·                  Stretch
area:  performance in excess of target
awarded at a higher rate (150% for 120% achievement) with no cap.

·                  Termination
provisions

 

	
  Termination Event

  	
   

  	
  Vesting

  	
   

  	
  Payment
  in Shares

  
	
  Retirement

  	
   

  	
  Pro-rated

  	
   

  	
  Paid
  as scheduled

  
	
  Voluntary

  	
   

  	
  All
  shares forfeit

  	
   

  	
  No
  payment

  
	
  Without
  cause

  	
   

  	
  Pro-rated

  	
   

  	
  Paid
  as scheduled

  
	
  With
  cause

  	
   

  	
  All
  shares forfeit

  	
   

  	
  No
  payment

  
	
  Upon
  change of control

  	
   

  	
  Acceleration
  at target

  	
   

  	
  Paid
  at change of control

  
	
  Death
  or disability

  	
   

  	
  Pro-rated

  	
   

  	
  Paid
  as scheduled

  

 

	
  Example: 

  	
   

  	
   

  
	
   

  	
  Grant 1000 performance shares

  	
   

  	
   

  
	
   

  	
  Stock price (8/31/07) is $17.27

  	
   

  	
   

  
	
   

  	
  Threshold is 80% of target

  	
   

  	
   

  
	
   

  	
  Stretch area pays out pro-rata at rate of 150% for 120% achievement.

  	
   

  	
   

  

 

	
  Performance

  	
   

  	
  EBT

  	
   

  	
  Payout %
  of Target

  	
   

  	
  Vesting
  Shares

  	
   

  
	
  Threshold

  	
   

  	
  80% of Target

  	
   

  	
  50%

  	
   

  	
  500

  	
   

  
	
  Target

  	
   

  	
  100% of Target

  	
   

  	
  100%

  	
   

  	
  1000

  	
   

  
	
  Stretch at 120%

  	
   

  	
  120% of Target

  	
   

  	
  150%

  	
   

  	
  1500

  	
   

  

 

 

·                  Eligibility:  Recommended award levels @ Target

 

	
  Participant

  	
  Shares @

  Target

  	
   

  
	
   

  	
   

  	
   

  
	
  Peter R. Chase (CEO)

  	
  26,962

  	
   

  
	
   

  	
   

  	
   

  
	
  Adam P. Chase (COO)

  	
  9,357

  	
   

  
	
   

  	
   

  	
   

  
	
  Terry M. Jones (CMO)

  	
  6,809

  	
   

  
	
   

  	
   

  	
   

  
	
  Kenneth L. Dumas (CFO)

  	
  5,472

  	
   

  
	
   

  	
   

  	
   

  
	
  Total

  	
  48,600

  	
   

  

 

Pre-tax expense at target is 48,600 @ $17.27=$839,322 spread over 3
years.

 

Award opportunities are set annually and the plan is subject to the
approval of the Compensation and Management Development (C&MD) Committee
and may be modified from time to time.

 

FY 2008 SCHEDULE

 

·                  Q4/07      Board approves continuance of plan and
sets grant date

·                  Q1/08      Goals and awards proposed by management
for 2008

·                  Q1/08      C&MD Committee reviews and approves
2007 vesting and 2008 plan

·                  Q1/09      Management presents assessment of goal
achievement and 2009 proposal

·                  Q1/09      C&MD Committee approves 2008 vesting
and 2009 goals/awards

·                  Q4/10      Vested 2008 shares are released to
participantExhibit 10.3

 

CHASE CORPORATION

 

RESTRICTED
STOCK AGREEMENT UNDER THE 2005 INCENTIVE PLAN

FOR NON
EMPLOYEE DIRECTORS

 

This
Restricted Stock Agreement (the “Agreement”),
dated as of                 ,
is by and between Chase Corporation (the “Company”) and                   
(the “Restricted Stockholder”).

 

1.             Grant
of Award.  Pursuant to the terms of
the Chase Corporation 2005 Incentive Plan (the “Plan”), effective as of                     
(the “Grant Date”), the Company hereby grants to the Restricted Stockholder an
award of            
shares of the Company’s common stock, par value $.10 per share,  subject to the terms and conditions of
this Agreement and the Plan.  As more
fully described below, the shares granted hereby are subject to forfeiture by
the Restricted Stockholder if certain criteria are not satisfied.

 

2.             Restrictions
on Stock.  Until the termination of
restrictions as provided in Section 3 hereof, the Restricted Stock may not
be sold, assigned, transferred, pledged or otherwise encumbered except as
provided in this Agreement.  No rights or
interests of the Restricted Stockholder under this Agreement or under the Plan
may be assigned, encumbered or transferred other than (i) to the extent
permitted and in accordance with such procedures adopted by the Administrator
from time to time and (ii) by will or the laws of descent and
distribution.  The naming of a designated
beneficiary will not constitute a transfer.

 

3.             Termination of Restrictions.

 

(a)           Vesting.  The Restricted Stock Award shall vest and
become nonforfeitable and all restrictions set forth in Sections 2 and 3 hereof
shall lapse, on                                             
(the “Vest Date”), provided the Restricted Stockholder’s status as a director
of the Company has not terminated or ceased on or prior to the Vest Date.

 

(b)           Termination of Service.  If the Restricted Stockholder’s status as a
director of the Company is terminated prior to the Vest Date by reason of the
Restricted Stockholder’s retirement, death or disability (as determined by the
Administrator) or the Company terminating his service without cause, the
Restricted Stock Award shall vest, pro-rated on the date service is terminated,
and the restrictions on the pro-rated vested shares shall lapse on the date of
termination of service.  If the
Restricted Stockholder’s status as a director of the Company is terminated by
the Restricted Stockholder or by the Company for cause prior to the Vest Date,
the Restricted Stock Award will immediately and irrevocably be forfeited and neither the Restricted Stockholder nor
any successors, heirs, assigns, or legal representatives of the Restricted
Stockholder shall thereafter have any further rights or interest in such
forfeited Restricted Stock or the certificates thereof.

 

(c)           Acceleration of Vesting upon
Change in Control.  Unless otherwise
provided for in the vote granting such restricted stock, upon the consummation
of a transaction resulting in a Change in Control of the Company prior to the
Vest Date, all restrictions remaining on any Restricted Stock shall lapse.

 

 

4.             Rights as Stockholder.  Upon the issuance of a certificate or
certificates representing the Restricted Stock, the Restricted Stockholder
shall thereupon be a stockholder and, subject to the provisions of Sections 2
and 3 hereof, have all the rights of a stockholder with respect to such
Restricted Stock, including the right to vote and receive all dividends or
other distributions made or paid with respect to such Restricted Stock;
provided, however, that such Restricted Stock and any new, additional or
different securities the Restricted Stockholder may become entitled to receive
with respect to such Restricted Stock by virtue of a stock split, dividend or
other change in the corporate or capital structure of the Company shall be
subject to the vesting and forfeiture provisions, restrictions on transfer and
other restrictions set forth in this Agreement and the Plan.

 

5.             Stock Certificates; Legend.  Certificates for Restricted Stock shall be issued in
the Restricted Stockholder’s name and shall be held by the Company until the
Restricted Stock shall become vested and all restrictions thereon have
lapsed.  The Company shall serve as
attorney-in-fact for the Restricted Stockholder during the period during which
the shares of Restricted Stock are unvested with full power and authority in
the Restricted Stockholder’s name to assign and convey to the Company any
Restricted Stock held by the Company for the Restricted Stockholder if the
Restricted Stockholder forfeits the shares under the terms of the this
Agreement and the Plan.  Certificates
representing the Restricted Stock shall bear the following legend:

 

“The Shares represented by this Stock Certificate have been granted as
restricted stock under the Chase Corporation 2005 Equity Incentive Plan.  The Shares represented by this Stock
Certificate may not be sold, exchanged, assigned, transferred, pledged,
hypothecated or otherwise encumbered or disposed of unless the restrictions set
forth in the Restricted Share Agreement between the registered holder of these
Shares and Chase Corporation shall have lapsed.

 

Upon the vesting of the
Restricted Stock, the Company shall so notify the Secretary of the Company and
the Secretary shall obtain from the Company certificates representing all such
shares that have vested, which certificates shall not bear any restrictive
endorsement making reference to this Agreement, and shall deliver such
certificates to the Restricted Stockholder.

 

6.             No
Right to Continued Service.  This
Agreement shall not confer upon the Restricted Stockholder any right with
respect to continuance of   service with, the Company, nor shall it
interfere in any way with the right of the Company to terminate the Restricted
Stockholder’s service at any time and for any reason.

 

7.             Adjustment
to Common Stock.  In the event of any
stock split, stock dividend, recapitalization, reorganization, merger,
consolidation, combination, exchange of shares, liquidation, spin-off or other
similar change in capitalization or event, or any distribution to holders of
Common Stock other than a normal cash dividend, the Committee shall make
approximate and equitable adjustments in the Restricted Stock corresponding to
adjustments made by the Committee in the number and kind of shares which may be
issued under the Plan.  Any new,
additional or different securities to which the Restricted Stockholder shall be
entitled in respect of Restricted Stock by reason of such adjustment shall be
deemed to be Restricted Stock and shall be subject to the same terms,
conditions and restrictions as the Restricted Stock so adjusted.

 

 

8.             Withholding Taxes.  The Restricted Stockholder acknowledges that the
Company is not responsible for the tax consequences to the Restricted
Stockholder of the granting or vesting of the Restricted Stock, and that it is
the responsibility of the Restricted Stockholder to consult with the Restricted
Stockholder’s personal tax advisor regarding all matters with respect to the
tax consequences of the granting and vesting of the Restricted Stock.  The Company shall have the right to deduct
from the Restricted Stock or any payment to be made with respect to the
Restricted Stock any amount that federal, state, local or foreign tax law
required to be withheld with respect to the Restricted Stock or any such
payment.  Alternatively, the Company may
require that the Restricted Stockholder, prior to or simultaneously with the
Company incurring any obligation to withhold any such amount, pay such amount
to the Company in cash or in shares of the Company’s Common Stock (including
shares of Common Stock retained from the Restricted Share Award creating the
tax obligation), which shall be valued at the Fair Market Value of such shares
on the date of such payment.  In any case
where it is determined that taxes are required to be withheld in connection
with the issuance, transfer or delivery of the shares, the Company may reduce
the number of shares so issued, transferred or delivered by such number of
shares as the Company may deem appropriate to comply with such
withholding.  The Company may also impose
such conditions on the payment of any withholding obligations as may be
required to satisfy applicable regulatory requirements under the Exchange Act.

 

9.             Governing
Law.  This Agreement shall be
construed and administered in accordance with and governed by the laws of the
Commonwealth of Massachusetts, without giving effect to any conflict or choice
of laws provisions thereof that would cause the application of the domestic
substantive laws of any other jurisdiction.

 

10.           Notice of Election Under Section 83(b).
If the Restricted Stockholder makes an election under Section 83(b) of
the Internal Revenue Code of 1986, as amended, and the regulations and rulings
promulgated thereunder, he will provide a copy thereof to the Company within
thirty days of the filing of such election with the Internal Revenue Service.

 

11.           Notices.  Any notice
hereunder to the Company shall be addressed to the Company at its principal
business office, 26 Summer Street, Bridgewater, Massachusetts 02324. Attention Chief
Financial Officer, and any notice hereunder to the Restricted Stockholder shall
be sent to the address reflected on the records of the Company, subject to the
right of either party to designate at any time hereafter in writing some other
address.

 

12.           Amendment of Agreement.  The Company may amend, modify  or terminate this Agreement, provided that the Restricted
Stockholder’s consent to such action
shall be required unless the Company determines that the action, taking into
account any related action, would not materially and adversely affect the
Restricted Stockholder.

 

13.           Successors and Assigns; No Third
Party Beneficiaries.  Except as
otherwise expressly provided herein, the provisions hereof shall inure to the
benefit of, and be binding upon,
the successors, assigns, heirs, executors and administrators of the parties
hereto.  There are no third party
beneficiaries of this Agreement.

 

14.           Entire Agreement.  This Agreement and the Plan constitute the
full and entire understanding and agreement of the parties with regard to the
Restricted Stock and supersede in their entirety all other prior agreements,
whether oral or written, with respect thereto.

 

 

15.           Severability.  In case any provision of this Agreement shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions of this Agreement shall not in any way be affected
or impaired thereby, and each provision of this Agreement shall be enforced to
the fullest extent permitted by law.

 

16.           Waivers.  Any waiver by the Company of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of
any subsequent breach of such provision or any other provision hereof.

 

17.           Defined Terms.  Capitalized terms used but not defined in this
Agreement will have the meanings specified in the Plan.

 

IN WITNESS WHEREOF, the
parties have executed this Agreement as a sealed instrument as of the         
day of                       ,
200     .

 

 

	
  RESTRICTED
  STOCKHOLDER

  	
   

  	
  CHASE
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  Signature

  	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
  Title:

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