Document:

Exhibit 10.5

Exhibit 10.5

A. SCHULMAN, INC.

AMENDED AND RESTATED

2006 INCENTIVE PLAN

INSTRUCTIONS FOR COMPLETING PERFORMANCE SHARE

AWARD AGREEMENT FOR EMPLOYEES

Code Sheet

The following codes are used in this Award Agreement and should be replaced using your computer’s
“Replace” function.

	 	 	 	 	 
	 

	 	VTA
	 	Grantee’s name (all capital letters)
	 
	 	 	 	 
	 

	 	VTB
	 	Grant Date (all capital letters)
	 
	 	 	 	 
	 

	 	Vtb
	 	Grant Date (initial capital letters only)
	 
	 	 	 	 
	 

	 	Vtc
	 	Person to contact for more information
	 
	 	 	 	 
	 

	 	Vtd
	 	Contact’s telephone number, including area code
	 
	 	 	 	 
	 

	 	Vte
	 	Date that is 30 days after the Grant Date (initial capital letters only)
	 
	 	 	 	 
	 

	 	Vtf
	 	Number of Performance Shares granted (insert only the number in Arabic
numerals)
	 
	 	 	 	 
	 

	 	Vtg
	 	Contact’s street address
	 
	 	 	 	 
	 

	 	Vth
	 	Contact’s city, state and zip code

 

 

 

A. SCHULMAN, INC.

AMENDED AND RESTATED

2006 INCENTIVE PLAN

PERFORMANCE SHARE AWARD AGREEMENT GRANTED TO

VTA on VTB

A. Schulman, Inc. (“Company”) believes that its business interests are best served by extending to
you an opportunity to earn additional compensation based on the growth of the Company’s business.
To this end, the Company adopted, and its stockholders approved, the A. Schulman, Inc. Amended and
Restated 2006 Incentive Plan (“Plan”) as a means through which employees like you may share in the
Company’s success. Capitalized terms that are not defined herein shall have the same meanings as in
the Plan.

This Award Agreement describes many features of your Award and the terms and conditions of your
Award. To ensure you fully understand these terms and conditions, you should:

	 	•	 	Read the Plan carefully to ensure you understand how the Plan works;
	 
	 	•	 	Read this Award Agreement carefully to ensure you understand the nature of your Award
and what you must do to earn it; and
	 
	 	•	 	Contact Vtc at Vtd if you have any questions about your Award.

Also, no later than Vte, you must return a signed copy of the Award Agreement to:

Vtc

A. Schulman, Inc.

Vtg

Vth

Nature of Your Award

The terms and conditions affecting your Award are described in this Award Agreement and the Plan,
both of which you should read carefully. If the terms and conditions are satisfied, your
Performance Shares will be settled and you will receive the Shares underlying such Performance
Shares. For purposes of this Award Agreement, each Performance Share represents the right to
receive one full Share.

Grant Date: Vtb.

Number of Performance Shares: You have been granted Vtf Performance Shares (“Total Shares”),
subject to the terms and conditions of this Award Agreement and the Plan.

 

1

 

When Your Award Will Vest

Your Performance Shares will be settled or will be forfeited depending on whether or not the terms
and conditions described in this Award Agreement and in the Plan are satisfied. For purposes of
this Award Agreement, the Performance Period is the period beginning on the Grant Date and ending
on the third anniversary thereof (the “Normal Vesting Date”).

Normal Vesting Date: Except as otherwise provided in this Award Agreement, the number of Total
Shares that will vest on the Normal Vesting Date will be determined by reference to both: [1]
whether the Company’s Total Shareholder Return is positive or negative during the Performance
Period; and [2] the relative performance of the Company’s Total Shareholder Return as compared to
the Peer Group Companies during the Performance Period. The number of Performance Shares that will
vest on the Normal Vesting Date will equal the number of Total Shares, multiplied by the applicable
percentage as set forth in the tables below. If the Company’s Total Shareholder Return is between
two percentages, the number of Performance Shares that vest will be interpolated by the Company.
Notwithstanding the foregoing, any Performance Shares that do not vest as of the Normal Vesting
Date shall be forfeited.

	 	 	 	 
	Relative Performance of Total Shareholder	 	 	 
	Return to Peer Group Companies	 	Negative Total Shareholder Return	 
	Less than 50th Percentile
	 	0	%
	50th Percentile
	 	25	%
	75th Percentile or Greater
	 	50	%

	 	 	 	 
	Relative Performance of Total Shareholder	 	 	 
	Return to Peer Group Companies	 	Positive Total Shareholder Return	 
	25th Percentile or Less
	 	0	%
	50th Percentile
	 	50	%
	75th Percentile or Greater
	 	100	%

As used in this Award Agreement, “Total Shareholder Return” for the Performance Period is
calculated by first taking the theoretical value of $100 invested in the Shares at the 30-day
average price of the Shares as of the Grant Date (i.e., the average daily closing price over the
30-day period preceding the Grant Date) and the theoretical value of $100 invested with each of the
peer group companies in the S&P Special Chemicals Index (the “Peer Group Companies”) using the same
30-day average methodology as of the Grant Date. On the Normal Vesting Date, the value of the
Shares (using the average daily closing price over the 30 days preceding the Normal Vesting Date
and assuming all dividends are reinvested) is compared with the value of each of the Peer Group
Companies (using the same 30-day average methodology as of the Normal Vesting Date and again
assuming that all dividends are reinvested).

However, your Award may vest earlier in the circumstances described below.

How Your Award Might Vest Earlier Than the Normal Vesting Date: Your Award will immediately vest if
there is a Change in Control.

 

2

 

How Your Termination of Employment Will Affect Your Award: You may forfeit your Award if you
Terminate before the Normal Vesting Date, although this will depend on why you Terminate.

[1] If you Terminate because of [a] death, [b] Disability or [c] after qualifying for Retirement
if the Committee agrees to treat your Termination as a Retirement, you will receive a prorated
number of the Shares underlying your Performance Shares granted through this Award Agreement but
only if the performance criteria described above are actually met at the Normal Vesting Date. If
they are not, all of your Performance Shares will be forfeited. If those performance criteria
are met, you will receive a number of Shares equal to:

	 	 	 	 	 	 	 
	 

	 	Number of Shares that

would have been due to
you if you had not

Terminated before the

Normal Vesting Date
	 	X
	 	the number of whole months between

 the Grant Date and your Termination date

36

[2] If you Terminate under any other circumstances, all of the Performance Shares granted
through this Award Agreement will be forfeited.

Settling Your Award

If all applicable terms and conditions have been met, you will receive the Shares underlying your
vested Performance Shares as soon as administratively feasible, but no later than 60 days, after
the Normal Vesting Date.

Other Rules Affecting Your Award

Rights During the Performance Period:

[1] During the Performance Period, you will have no voting rights with respect to the Shares
underlying the Performance Shares and, except as provided in subsection [2] below, you will have
no dividend rights with respect to the Shares underlying the Performance Shares.

[2] You shall be entitled to receive any cash dividends that are declared and paid during the
Performance Period with respect to Shares underlying one-half of your Total Shares (the “Target
Shares”), subject to the terms and conditions of the Plan and this Award Agreement. If a cash
dividend is declared and paid during the Performance Period on the Shares underlying the Target
Shares, you will be deemed to have been credited with a cash amount equal to the product of [a]
the number of Target Shares that have not been settled or forfeited as of the dividend payment
date, multiplied by [b] the amount of the cash dividend paid per Share. Such amount shall be
subject to the same terms and conditions as the related Target Shares and shall vest and be
settled in cash if, when and to the extent the related Target Shares vest and are settled. In
the event a Target Share is forfeited under this Award Agreement, the related dividends will
also be forfeited.

 

3

 

Beneficiary Designation: You may name a beneficiary or beneficiaries to receive any portion of your
Award and any other right under the Plan that is unsettled at your death. To do so, you must
complete a beneficiary designation form by contacting Vtc at Vtd or the address below. If you
previously completed a valid beneficiary designation form, such form shall apply to the Award until
changed or revoked. If you die without completing a beneficiary designation form or if you do not
complete that form correctly, your beneficiary will be your surviving spouse or, if you do not have
a surviving spouse, your estate.

Tax Withholding: Applicable withholding taxes must be withheld with respect to your Award. These
taxes may be paid in one (or a combination) of several ways. They are:

	 	•	 	By the Company withholding this amount from other amounts owed to you (e.g., from your
salary);
	 
	 	•	 	By the Company withholding all or a portion of any cash amount owed to you with respect
to dividends credited with respect to the Shares that are to be distributed to you;
	 
	 	•	 	By giving the Company a check (payable to “A. Schulman, Inc.”) in an amount equal to
the taxes that must be withheld; or
	 
	 	•	 	By having the Company withhold a portion of the Shares that otherwise would be
distributed to you. The number of Shares withheld will have a fair market value equal to
the taxes that must be withheld.

You must choose the approach you prefer before the Shares are transferred to you, although the
Company may reject your preferred method for any reason (or for no reason). If this happens, the
Company will specify (from among the alternatives just listed) how these taxes are to be paid.

If you do not choose a method within 30 days of the Normal Vesting Date, the Company will withhold
either through payroll practices or a portion of the Shares that otherwise would be distributed to
you. The number of Shares withheld will have a fair market value equal to the taxes that must be
withheld and the balance of the Shares will be distributed to you.

Transferring Your Award: Normally, your Award may not be transferred to another person. However, as
described above, you may complete a beneficiary designation form to name the person to receive any
portion of your Award that is settled after you die. Also, the Committee may allow you to transfer
your Performance Shares to certain Permissible Transferees, including a trust established for your
benefit or the benefit of your family. Contact Vtc at the address or number given below if you are
interested in doing this.

Governing Law: This Award Agreement will be construed in accordance with and governed by the laws
(other than laws governing conflicts of laws) of the State of Ohio, except to the extent that the
Delaware General Corporation Law is mandatorily applicable.

 

4

 

Other Agreements: Also, your Award will be subject to the terms of any other written agreements
between you and the Company or a Related Entity to the extent that those other agreements do not
directly conflict with the terms of the Plan or this Award Agreement.

Adjustments to Your Award: Subject to the terms of the Plan, your Award will be adjusted, if
appropriate, to reflect any change to the Company’s capital structure (e.g., the number of your
Performance Shares will be adjusted to reflect a stock split).

Other Rules: Your Award also is subject to more rules described in the Plan. You should read the
Plan carefully to ensure you fully understand all the terms and conditions of this Award.

*****

You may contact Vtc at the address or number given below if you have any questions about your Award
or this Award Agreement.

*****

Your Acknowledgment of Award Conditions

Note: You must sign and return a copy of this Award Agreement to Vtc at the address given below no
later than Vte.

By signing below, I acknowledge and agree that:

	 	•	 	A copy of the Plan has been made available to me;
	 
	 	•	 	I understand and accept the conditions placed on my Award;
	 
	 	•	 	I will consent (in my own behalf and in behalf of my beneficiaries and without any
further consideration) to any change to my Award or this Award Agreement to avoid paying
penalties under Section 409A of the Code, even if those changes affect the terms of my
Award and reduce its value or potential value; and
	 
	 	•	 	I must return a signed copy of this Award Agreement to the address shown below by Vte.

 

5

 

	 	 	 	 	 	 	 	 	 	 	 
	VTA	 	 	 	A. SCHULMAN, INC.
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	   
	(signature)
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date signed:	 	 	 	Date signed:	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

A signed copy of this Award Agreement must be sent to the following address no later than Vte:

Vtc

A. Schulman, Inc.

Vtg

Vth

Vtd

 

6Exhibit 10.6

Exhibit 10.6

A. SCHULMAN, INC.

AMENDED AND RESTATED

2006 INCENTIVE PLAN

INSTRUCTIONS FOR COMPLETING TIME-BASED AND PERFORMANCE-BASED

CASH AWARD AGREEMENT

FOR EMPLOYEES IN MEXICO, CANADA AND EUROPE

Code Sheet

The following codes are used in this Award Agreement and should be replaced using your computer’s
“Replace” function.

	 	 	 	 	 
	 

	 	VTA
	 	Grantee’s name (all capital letters)
	 
	 	 	 	 
	 

	 	VTB
	 	Grant Date (all capital letters)
	 
	 	 	 	 
	 

	 	Vtb
	 	Grant Date (initial capital letters only)
	 
	 	 	 	 
	 

	 	Vtc
	 	Person to contact for more information
	 
	 	 	 	 
	 

	 	Vtd
	 	Contact’s telephone number, including area code
	 
	 	 	 	 
	 

	 	Vte
	 	Date that is 30 days after the Grant Date (initial capital letters only)
	 
	 	 	 	 
	 

	 	Vtf
	 	Amount of Time-based Award granted (insert only the number in Arabic numerals)
	 
	 	 	 	 
	 

	 	Vtg
	 	Amount of Performance-based Award granted (insert only the number in Arabic
numerals)
	 
	 	 	 	 
	 

	 	Vth
	 	Contact’s street address
	 
	 	 	 	 
	 

	 	Vti
	 	Contact’s city, state and zip code

 

 

 

A. SCHULMAN, INC.

AMENDED AND RESTATED

2006 INCENTIVE PLAN

TIME-BASED AND PERFORMANCE-BASED

CASH AWARD AGREEMENT GRANTED TO VTA on VTB

A. Schulman, Inc. (“Company”) believes that its business interests are best served by extending to
you an opportunity to earn additional compensation based on the growth of the Company’s business.
To this end, the Company adopted, and its stockholders approved, the A. Schulman, Inc. Amended and
Restated 2006 Incentive Plan (“Plan”) as a means through which employees like you may share in the
Company’s success. Capitalized terms that are not defined herein shall have the same meanings as
in the Plan.

This Award Agreement describes many features of your Award and the terms and conditions of your
Award. To ensure you fully understand these terms and conditions, you should:

	 	•	 	Read the Plan carefully to ensure you understand how the Plan works;

	 	•	 	Read this Award Agreement carefully to ensure you understand the nature of your Award
and what you must do to earn it; and

	 	•	 	Contact Vtc at Vtd if you have any questions about your Award.

Also, no later than Vte, you must return a signed copy of the Award Agreement to:

Vtc

A. Schulman, Inc.

Vth

Vti

Nature of Your Award

You have been granted a Cash-Based Award. The conditions affecting your Award are described in
this Award Agreement and the Plan, both of which you should read carefully.

Grant Date: Vtb.

Amount of Award: You have been granted a Cash-Based Award equal to $Vtf (“Time-based Award”) and a
Cash-Based Award equal to $Vtg (“Performance-based Award”), subject to the terms and conditions of
this Award Agreement and the Plan. The Time-based Award and the Performance-based Award are
hereinafter referred to collectively as the “Award.”

 

1

 

When Your Award Will Vest

Your Award will be settled or will be forfeited depending on whether the applicable terms and
conditions have been met.

	[1]	 	Time-based Award

Normal Time-based Vesting Date: Normally, subject to your continued employment with the
Company or a Related Entity, your Time-based Award will vest with respect to 33 1/3% of the
total amount underlying such Time-based Award on each of the first, second and third
anniversaries of the Grant Date. For purposes of this Section [1], each 12-month period
ending on an anniversary of the Grant Date shall be referred to as a “Vesting Year.”

However, your Time-based Award may vest earlier in the circumstances described below.

How Your Time-based Award Might Vest Earlier Than the Normal Time-based Vesting Date: Your
Time-based Award will immediately vest if there is a Change in Control.

How Your Termination Will Affect Your Time-based Award: You may forfeit your Time-based
Award if you Terminate before the Normal Time-based Vesting Date, although this will depend
on why you Terminate.

	 	•	 	If you Terminate because of [a] death or [b] Disability, your Time-based Award
will fully vest on your Termination date.

	 	•	 	If you Terminate because of Retirement and if the Committee agrees to treat your
Termination as a Retirement, a prorata portion of your Time-based Award will vest
on your Retirement date equal to [1] the amount of your unvested Time-based Award
that would have become vested if you had remained employed through the end of the
Vesting Year in which you Terminate, multiplied by [2] a fraction, the numerator of
which is the number of whole months you were employed during such Vesting Year and
the denominator of which is 12.

	 	•	 	If you Terminate under any other circumstances, all of your Time-based Award
granted through this Award Agreement will be forfeited on your Termination date.

	[2]	 	 Performance-based Award

Normal Performance-based Vesting Date: Except as otherwise provided in this Award
Agreement, the amount of your Performance-based Award that will vest on the Normal
Performance-based Vesting Date will be determined by reference to both: [1] whether the
Company’s Total Shareholder Return is positive or negative during the Performance Period;
and [2] the relative performance of the Company’s Total Shareholder Return as compared to
the Peer Group Companies during the Performance Period. The amount of your
Performance-based Award that will vest on the Normal Performance-based

 

2

 

Vesting Date will equal the total amount of your Performance-based Award, multiplied by the
applicable percentage as set forth in the tables below. If the Company’s Total Shareholder
Return is between two percentages, the amount of your Performance-based Award that vests
will be interpolated by the Company. Notwithstanding the foregoing, any portion of your
Performance-based Award that does not vest as of the Normal Performance-based Vesting Date
shall be forfeited.

	 	 	 	 
	Relative Performance of Total Shareholder	 	 	 
	Return to Peer Group Companies	 	Negative Total Shareholder Return	 
	Less than 50th Percentile
	 	0	%
	50th Percentile
	 	25	%
	75th Percentile or Greater
	 	50	%

	 	 	 	 
	Relative Performance of Total Shareholder	 	 	 
	Return to Peer Group Companies	 	Positive Total Shareholder Return
	25th Percentile or Less
	 	0	%
	50th Percentile
	 	50	%
	75th Percentile or Greater
	 	100	%

“Total Shareholder Return” for the Performance Period is calculated by first taking the
theoretical value of $100 invested in the Shares at the 30-day average price of the Shares
as of the Grant Date (i.e., the average daily closing price over the 30-day period preceding
the Grant Date) and the theoretical value of $100 invested with each of the peer group
companies in the S&P Special Chemicals Index (the “Peer Group Companies”) using the same
30-day average methodology as of the Grant Date. On the third anniversary of the Grant Date
(the “Normal Performance-based Vesting Date”), the value of the Shares (using the average
daily closing price over the 30 days preceding the Normal Performance-based Vesting Date and
assuming all dividends are reinvested) is compared with the value of each of the Peer Group
Companies (using the same 30-day average methodology as of the Normal Performance-based
Vesting Date and again assuming that all dividends are reinvested).

For purposes of the Performance-based Award granted pursuant to this Award Agreement, the
Performance Period is the period beginning on the Grant Date and ending on the third
anniversary thereof.

However, your Performance-based Award may vest earlier in the circumstances described below.

How Your Performance-based Award Might Vest Earlier Than the Normal Performance-based
Vesting Date: Your Performance-based Award will immediately vest and all performance
objectives will be deemed to have been met if there is a Change in Control.

How Your Termination Will Affect Your Performance-based Award: You may forfeit your
Performance-based Award if you Terminate before the Normal Performance-based Vesting Date,
although this will depend on why you Terminate.

 

3

 

[A] If you Terminate because of [i] death, [ii] Disability or [iii] after qualifying
for Retirement if the Committee agrees to treat your Termination as a Retirement, a
prorata portion of your Performance-based Award granted through this Award Agreement
will vest but only if the performance criteria described above are actually met at
the Normal Performance-based Vesting Date:

	 	 	 	 	 	 	 
	 

	 	Amount of
Performance-based Award
that would have vested
if you had not
Terminated before the
Normal Performance-based
Vesting Date
	 	X
	 	the number of whole months between
the Grant Date and your Termination date
 

36

If those performance criteria are not met, all of your Performance-based Award will
be forfeited.

[B] If you Terminate under any other circumstances, all of your Performance-based
Award granted through this Award Agreement will be forfeited.

Settling Your Award

Your vested Award will be settled within 60 days following the applicable vesting date.

Other Rules Affecting Your Award

Beneficiary Designation: You may name a beneficiary or beneficiaries to receive any portion of
your Award and any other right under the Plan that is unsettled at your death. To do so, you must
complete a beneficiary designation form by contacting Vtc at Vtd or the address below. If you
previously completed a valid beneficiary designation form, such form shall apply to the Award until
changed or revoked. If you die without completing a beneficiary designation form or if you do not
complete that form correctly, your beneficiary will be your surviving spouse or, if you do not have
a surviving spouse, your estate.

Tax Withholding: Applicable withholding taxes must be withheld with respect to your Award. These
taxes may be paid in one of several ways. They are:

	 	•	 	By the Company withholding this amount from other amounts owed to you (e.g., from
your salary);

	 	•	 	By giving the Company a check (payable to “A. Schulman, Inc.”) in an amount equal to
the taxes that must be withheld; or

	 	•	 	By having the Company withhold a portion of the cash payment that otherwise would be
distributed to you equal to the taxes that must be withheld.

You must choose the approach you prefer before the Award is settled, although the Company may
reject your preferred method for any reason (or for no reason). If this happens or if you do not
choose a method within 30 days of the applicable settlement date, the Company will specify (from
among the alternatives just listed) how these taxes are to be paid.

 

4

 

Transferring Your Award: Normally, your Award may not be transferred to another person. However,
as described above, you may complete a beneficiary designation form to name the person to receive
any portion of your Award that is settled after you die.

Governing Law: This Award Agreement will be construed in accordance with and governed by the laws
(other than laws governing conflicts of laws) of the State of Ohio, except to the extent that the
Delaware General Corporation Law is mandatorily applicable.

Other Agreements: Also, your Award will be subject to the terms of any other written agreements
between you and the Company or a Related Entity to the extent that those other agreements do not
directly conflict with the terms of the Plan or this Award Agreement.

Adjustments to Your Award: Subject to the terms of the Plan, your Award will be adjusted, if
appropriate, to reflect any change to the Company’s capital structure.

Other Rules: Your Award also is subject to more rules described in the Plan. You should read the
Plan carefully to ensure you fully understand all the terms and conditions of this Award.

*****

You may contact Vtc at the address or number given below if you have any questions about your Award
or this Award Agreement.

*****

 

5

 

Your Acknowledgment of Award Conditions

Note: You must sign and return a copy of this Award Agreement to Vtc at the address given below no
later than Vte.

By signing below, I acknowledge and agree that:

	 	•	 	A copy of the Plan has been made available to me;

	 	•	 	I understand and accept the conditions placed on my Award and understand what I must
do to earn my Award;

	 	•	 	I will consent (in my own behalf and in behalf of my beneficiaries and without any
further consideration) to any change to my Award or this Award Agreement to avoid
paying penalties under Section 409A of the Code, even if those changes affect the terms
of my Award and reduce its value or potential value; and

	 	•	 	I must return a signed copy of this Award Agreement to the address shown below by
Vte.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	VTA	 	 	 	 	 	A. SCHULMAN, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	(signature)
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Date signed:	 	 	 	 	 	Date signed:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 

	 	 

A signed copy of this Award Agreement must be sent to the following address no later than Vte:

Vtc

A. Schulman, Inc.

Vth

Vti

Vtd

 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]