Document:

Exhibit 10.4

Exhibit 10.4

A. SCHULMAN, INC.

AMENDED AND RESTATED

2006 INCENTIVE PLAN

INSTRUCTIONS FOR COMPLETING 2010 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	 	34% of Maximum Amount of Time-based Award granted (insert only the number in Arabic numerals)

	 	Vtg	 	33% of Maximum Amount of TSR Award granted (insert only the number in Arabic numerals)

	 	Vth	 	33% of Maximum Amount of ROIC Award (insert only the number in Arabic numerals)

	 	Vti	 	Contact’s street address

	 	Vtj	 	Contact’s city, state and zip code

 

 

 

A. SCHULMAN, INC.

AMENDED AND RESTATED

2006 INCENTIVE PLAN

2010 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.

Vti

Vtj

	1.	 	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.

	 	a.	 	Grant Date: Vtb.

	 	b.	 	Amount of Award: You have been granted a Cash-Based Award equal to $Vtf (“Time-based
Award”) and two Cash-Based Awards: (i) one equal to $Vtg (“TSR Award”) and (ii) one equal
to $Vth (“ROIC Award”). The Time-based Award, TSR Award and the ROIC Award are hereinafter
referred to collectively as the “Award” and are granted subject to the terms and conditions
of this Award Agreement and the Plan.

 

1

 

	2.	 	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.

	 	a.	 	Time-based Award

	 	(i)	 	Normal Time-based Vesting Date: Except as otherwise provided in this Award
Agreement, 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 (i) each 12-month period ending on an
anniversary of the Grant Date shall be referred to as a “Vesting Year.”

	 	(ii)	 	Change in Control. Notwithstanding the foregoing, your Time-based Award will
immediately vest if there is a Change in Control.

	 	(iii)	 	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.

	 	(A)	 	Termination Due to Death or Disability. If you Terminate
because of (1) death or (2) Disability, your Time-based Award will fully vest
on your Termination date.

	 	(B)	 	Termination Due to Retirement. 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.

	 	(C)	 	Termination for Any Other Reason. 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.

	 	b.	 	TSR Award

	 	(i)	 	Normal TSR Vesting Date: Except as otherwise provided in this Award Agreement,
your TSR Award normally will vest on the third anniversary of the Grant Date (the
“Normal TSR Vesting Date”) and the amount of your TSR Award that actually vest may be
between 0% and 100% of the your TSR Award.

 

2

 

The amount of your TSR Award that will vest on the Normal TSR Vesting Date will be
determined by reference to both: (A) whether the Company’s Total Shareholder Return
is positive or negative during the TSR Performance Period; and (B) the relative
performance of the Company’s Total Shareholder Return as compared to the Peer Group
Companies during the TSR Performance Period. The amount of your TSR Award that will
vest on the Normal TSR Vesting Date will equal the total amount of your TSR Award,
multiplied by the applicable percentage as set forth in the tables below.

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

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

If the Company’s Total Shareholder Return is between two percentages, the amount of
your TSR Award that vests will be interpolated by the Company. Notwithstanding the
foregoing, any portion of your TSR Award that does not vest as of the Normal TSR
Vesting Date shall be forfeited.

As used in this Award Agreement:

	 	(1)	 	“Total Shareholder Return” for the TSR 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 using the same 30-day average methodology as of the Grant Date. On
the Normal TSR Vesting Date, the value of the Shares (using the average daily
closing price over the 30 days preceding the Normal TSR 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 TSR Vesting Date and again assuming that all dividends are reinvested).

	 	(2)	 	“TSR Performance Period” means the period beginning on the
Grant Date and ending on the third anniversary thereof.

	 	(3)	 	“Peer Group Companies” means the peer group companies in the
S&P Specialty Chemicals Index.

	 	(ii)	 	Change in Control. Notwithstanding the foregoing, your Award will immediately
vest and all performance objectives will be deemed to have been met if there is a
Change in Control.

 

3

 

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

	 	(A)	 	Termination Due to Death, Disability or Retirement. If you
Terminate because of (1) death, (2) Disability or (3i) after qualifying for
Retirement if the Committee agrees to treat your Termination as a Retirement, a
prorata portion of your TSR Award granted through this Award Agreement will
vest but only if the performance criteria described above are actually met at
the Normal TSR Vesting Date. If those performance criteria are met, you will
receive a TSR Award equal to:

	 	 	 	 	 
	Amount of
TSR Award
that would
have
vested if
you had
not
Terminated
before the
Normal TSR
Vesting
Date

	 	x
	 	the number of whole months between the Grant Date and your Termination date 
	 
	 	 	 	36

If the performance criteria set forth in Section 2(b)(1)(A) are not satisfied at the
Normal TSR Vesting Date, all of your TSR Award will be forfeited.

	 	(B)	 	Termination for Any Reason Other Than Due to Death, Disability
or Retirement. If you Terminate for any reason other than specified in Section
3(a), all of your TSR Award granted through this Award Agreement will be
forfeited.

	 	c.	 	ROIC Award

	 	(i)	 	Normal Vesting Date. Except as otherwise provided in this Award Agreement,
your ROIC Shares normally will vest on the third anniversary of the Grant Date (the
“Normal ROIC Vesting Date”) and the amount of your ROIC Award that actually vest may be
between 0% and 100% of the your ROIC Award.

	 	(A)	 	Performance Objectives. You ROIC Award will vest only to the
extent that the Company’s Average ROIC (as defined below) is positive during
the ROIC Performance Period. No amount of your ROIC Award will vest if the
Company’s Average ROIC is negative during the ROIC Performance Period. The
amount of your ROIC that vest on the Normal ROIC Vesting Date will equal the
amount of your ROIC Award, multiplied by the applicable percentage as set forth
in the tables below, based on the relative performance of the Company’s Average
ROIC as compared to the Peer Group Companies’ ROIC used for the ROIC
Performance Period.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Average ROIC Percentile Ranking Relative to the Company’s Peer	 
	 	 	Group Companies’ ROIC	 
	 	 	≤ Peers’ 25%	 	 	Equal to Peers’ 50%	 	 	≥ Peer’s 75%	 
	ROIC	 	Percentile	 	 	Percentile	 	 	Percentile	 
	Negative
	 	0% vested	 	0% vested	 	0% vested
	Positive
	 	0%  vested	 	50% vested	 	100% vested

 

4

 

If the Company’s ROIC is between two percentages, the amount of your ROIC Award that
vest will be interpolated by the Company. Notwithstanding the foregoing, any
portion of your ROIC Award that does not vest as of the Normal ROIC Vesting Date
shall be forfeited.

	 	(B)	 	Committee Certification. Notwithstanding the foregoing, to the
extent that the Company intends the ROIC Award to constitute “performance-based
compensation” for purposes of Section 162(m) of the Internal Revenue Code of
1986, as amended, no portion of your ROIC Award shall vest until the Committee
(as defined in the Plan) shall have certified the extent to which the
performance objectives described in Section 2(a)(i) have been satisfied during
the relevant ROIC Performance Period.

	 	(C)	 	Definitions. As used in this Award Agreement:

	 	(1)	 	“Average ROIC” is equal to the sum of the
Company’s ROIC for each 12 consecutive calendar month period during the
ROIC Performance Period, divided by three.

	 	(2)	 	“ROIC Performance Period” is the 36 consecutive
calendar month period beginning on the November 30 closest to the Grant
Date.

	 	(3)	 	The Company shall determine its “ROIC” for the
four fiscal quarters beginning each December 1 and ending November 30
during the ROIC Performance Period, by dividing EBIT for such period by
Average Invested Capital for such period.

	 	(4)	 	The Company’s “EBIT” for any relevant period is
the Company’s earnings before interest and taxes based on the Company’s
unaudited financial statements.

	 	(5)	 	The Company’s “Average Invested Capital” for
any relevant period is the sum of the Company’s beginning equity,
short-term and long-term debt for such period plus the Company’s ending
equity, short-term and long-term debt for such period, divided by two.

	 	(6)	 	“Peer Group Companies” means the peer group
companies in the S&P Specialty Chemicals Index.

	 	(7)	 	The Company shall determine the “Peer Group
Companies’ ROIC” in the same manner as it determine its ROIC; provided,
however, that EBIT and Average Invested Capital shall be determined
using information reported for the four consecutive calendar quarter
period ending each September 30 (for Peer Group Companies whose fiscal
year is the calendar year) and the quarter-ending date closest to
August 31 (for Peer Group Companies whose fiscal year is other than the
calendar year).

 

5

 

	 	(ii)	 	Change in Control. Notwithstanding the foregoing, your Award will immediately
vest if there is a Change in Control.

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

	 	(A)	 	Termination Due to Death, Disability or Retirement. If you
Terminate because of (1) death, (2) Disability or (3i) after qualifying for
Retirement if the Committee agrees to treat your Termination as a Retirement, a
prorata portion of your ROIC Award granted through this Award Agreement will
vest but only if the performance criteria described above are actually met at
the Normal ROIC Vesting Date. If those performance criteria are met, you will
receive a ROIC Award equal to:

	 	 	 	 	 
	Amount of
ROIC Award
that would
have
vested if
you had
not
Terminated
before the
Normal
ROIC
Vesting
Date

	 	x
	 	the number of whole months between
the Grant Date and your Termination date 
	 
	 	 	 	36

If the performance criteria set forth in Section 2(c)(1)(A) are not satisfied at the
Normal ROIC Vesting Date, all of your ROIC Award will be forfeited.

	 	(B)	 	Termination for Any Reason Other Than Due to Death, Disability
or Retirement. If you Terminate for any reason other than specified in Section
3(a), all of your TSR Award granted through this Award Agreement will be
forfeited.

	3.	 	Settling Your Award. Your vested Award will be settled within 60 days following the later
of: (i) the Normal Vesting Date; or (ii) the date on which the Committee certifies the
satisfaction of the performance objectives (if applicable) pursuant to Section 2(a)(ii).

	4.	 	Other Rules Affecting Your Award

	 	a.	 	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.

	 	b.	 	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: (i) by
the Company withholding this amount from other amounts owed to you (e.g., from your
salary); (ii) by giving the Company a check (payable to “A. Schulman, Inc.”) in an amount
equal to the taxes that must be withheld; or (iv) 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.

 

6

 

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.

	 	c.	 	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.

	 	d.	 	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.

	 	e.	 	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.

	 	f.	 	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.

	 	g.	 	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;

 

7

 

	 	•	 	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.

Vtg

Vti

Vtd

 

8Exhibit 10.5

Exhibit 10.5

A. SCHULMAN, INC.

AMENDED AND RESTATED

2006 INCENTIVE PLAN

2010 RESTRICTED STOCK UNIT AWARD AGREEMENT

GRANTED TO

JOSEPH M. GINGO on JANUARY      , 2010

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 Rand Torgler at (330) 668-7224 if you have any questions about your Award.

Also, no later than                     , 2010, you must return a signed copy of the Award Agreement to:

Rand Torgler

A. Schulman, Inc.

3550 West Market Street

Akron, Ohio 44333

	1.	 	Nature of Your Award. You have been granted Restricted Stock Units. Each Restricted Stock
Unit represents the right to receive cash equal to the Fair Market Value of a Share, subject
to the terms and conditions of this Award Agreement and the Plan. The terms and conditions
affecting your Restricted Stock Units are described in this Award Agreement and the Plan, both
of which you should read carefully.

	 	a.	 	Grant Date: 
 _____, 2010.

	 	b.	 	Number of Restricted Stock Units: You have been granted
 _____ 
Restricted Stock
Units (“Total Units”), subject to the terms and conditions of this Award Agreement and the
Plan.

 

 

 

	2.	 	When Your Award Will Vest. Your Restricted Stock Units will be settled or will be forfeited
depending on whether the applicable terms and conditions have been met. For purposes of this
Award Agreement, (a) “Performance Period” shall mean the period beginning on September 1, 2009
and ending on August 31, 2010 and (b) “Normal Vesting Date” shall mean August 31, 2010.

	 	a.	 	Normal Vesting Date: Except as otherwise provided in this Award Agreement, the
number of Total Units that will vest on the Normal Vesting Date will depend on the
achievement of the following Performance Objectives during the Performance Period: (i)
Net Income, (ii) Operating Income and (iii) Days of Working Capital, as set forth in
the 2010 Bonus Plan approved by the Committee on October 15, 2009. The Performance
Objectives will be dependent upon the Company’s consolidated worldwide performance
during the Performance Period.

With respect to each Performance Objective, the number of Restricted Stock Units that
will vest on the Normal Vesting Date will equal:

	 	•	 	Net Income: 33% of the Total Units, multiplied by the indicated
percentage at the Threshold, Target, Stretch Budget, Maximum and high performance
levels as set forth in the 2010 Bonus Plan approved by the Committee on October 15,
2009;

	 	•	 	Operating Income: 33% of the Total Units, multiplied by the indicated
percentage at the Threshold, Target, Stretch Budget, Maximum and high performance
levels as set forth in the 2010 Bonus Plan approved by the Committee on October 15,
2009; and

	 	•	 	Days of Working Capital: 34% of the Total Units, multiplied by the
indicated percentage at the Threshold, Target, Stretch Budget, Maximum and high
performance levels as set forth in the 2010 Bonus Plan approved by the Committee on
October 15, 2009.

If a Performance Objective is not achieved or is achieved at a performance level which
is less than Threshold, all of your Restricted Stock Units with respect to that
Performance Objective will be forfeited. If the achievement of a Performance Objective
is between performance levels, the number of Restricted Stock Units that vest will be
interpolated by the Company. Any Restricted Stock Units that do not vest as of the
Normal Vesting Date shall be forfeited.

	 	b.	 	Change in Control. Your Restricted Stock Units will immediately vest and all
Performance Objectives will be deemed to have been met at the Maximum performance level
if there is a Change in Control.

 

2

 

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

	 	a.	 	Termination Due to Death, Disability or Retirement. 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 Restricted Stock Units
granted through this Award Agreement will vest, but only if the Performance Objectives
described above are actually met at the Normal Vesting Date. If those Performance
Objectives are met, you will receive a number of Shares equal to:

	 	 	 	 	 
	Number of
Restricted
Stock
Units that
would have
vested if
you had
not
Terminated
before the
Normal
Vesting
Date

	 	x
	 	the number of whole months between
the Grant Date and your Termination date 
	 
	 	 	 	7

If the Performance Objectives set forth in Section 2(a) are not satisfied at the Normal
Vesting Date, all of your Restricted Stock Units will be forfeited.

	 	b.	 	Termination for Any Reason Other Than Due to Death, Disability or Retirement. If you
Terminate for any reason other than specified in Section 3(a), all of Restricted Stock
Units granted through this Award Agreement will be forfeited.

	4.	 	Settling Your Award. Your vested Restricted Stock Units will be settled no later than the
15th day of the third month following the applicable vesting date for a cash payment equal to
the whole number of vested Restricted Stock Units to be settled, multiplied by the Fair Market
Value of a Share on the applicable settlement date. All Restricted Stock Units relating to
fractional Shares will be cancelled without any consideration.

	5.	 	Other Rules Affecting Your Award.

	 	a.	 	Rights During the Performance Period: During the Performance Period, you will have no
voting rights with respect to the Shares underlying your Restricted Stock Units. You shall
be entitled to receive any cash dividends that are declared and paid during the Performance
Period with respect to the Shares underlying one-half of your Total Units (the “Target
Units”), 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 Units, you will be deemed to have been credited with a cash amount equal to the
product of (i) the number of the Target Units that have not been settled or forfeited as of
the dividend payment date, multiplied by (ii) the amount of the cash dividend paid per
Share. Such amount shall be subject to the same terms and conditions as the related Target
Units and shall vest and be settled in cash if, when and to the extent the related the
Target Units vest and are settled. In the event a Target Unit is forfeited under this
Award Agreement, the related dividends will also be forfeited.

	 	b.	 	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 Rand Torgler at
(330) 668-7224 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.

 

3

 

	 	c.	 	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: (i) by the Company
withholding this amount from other amounts owed to you (e.g., from your salary); (ii) by
giving the Company a check (payable to “A. Schulman, Inc.”) in an amount equal to the
taxes that must be withheld; or (iii) 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 Restricted Stock Units are 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.

	 	d.	 	Transferring Your Restricted Stock Units: Normally, your Restricted Stock Units 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 Restricted Stock Units that
are settled after you die. Also, the Committee may allow you to transfer your Restricted
Stock Units to certain Permissible Transferees, including a trust established for your
benefit or the benefit of your family. Contact Rand Torgler at the address or number given
below if you are interested in doing this.

	 	e.	 	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.

	 	f.	 	Other Agreements: Also, your Restricted Stock Units 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.

	 	g.	 	Adjustments to Your Restricted Stock Units: 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 Restricted Stock Units will be adjusted to reflect a
stock split , a stock dividend, recapitalization, including an extraordinary dividend,
merger consolidation combination, spin-off, distribution of assets to stockholders,
exchange of Shares or other similar corporate change affecting Shares).

	 	h.	 	Other Rules: Your Restricted Stock Units also are 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 Rand Torgler at the address or number given below if you have any questions about
your Award or this Award Agreement.

*****

 

4

 

Your Acknowledgment of Award Conditions

Note: You must sign and return a copy of this Award Agreement to Rand Torgler at the address given
below no later than
 _____, 2010.

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
                    , 2010.

	 	 	 	 	 	 	 	 	 	 	 
	JOSEPH M. GINGO	 	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                     ,
2010:

Rand Torgler

A. Schulman, Inc.

3550 West Market Street

Akron, Ohio 44333

(330) 668-7224

 

5

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