Document:

ex_222764.htm

 

 

Exhibit 10.2

 

H.B. FULLER COMPANY

 

NON-QUALIFIED STOCK OPTION AGREEMENT

(Under the H.B. Fuller Company 2020 Master Incentive Plan)

(CEO TSR)

 

THIS AGREEMENT, dated as of ________________, 20__ (the "Grant Date") is entered into between H.B. Fuller Company, a Minnesota corporation (the “Company”), and ______________, an employee of the Company or an Affiliate of the Company (the “Participant”).

 

WHEREAS, the Company, pursuant to the H.B. Fuller Company 2020 Master Incentive Plan (the “Plan”), wishes to grant stock options for the purchase of Common Stock, par value $1.00 per share, of the Company (“Common Stock”), to the Participant on the terms and conditions contained in this Agreement and the Plan;

 

WHEREAS, the Participant’s rights to receive options for the purchase of Common Stock hereunder are sometimes referred to as the “Option(s)” in this Agreement.

 

NOW, THEREFORE, in consideration of the premises and agreements set forth herein, the parties hereto hereby agree as follows:

 

1.           Grant of Option. The Company, effective as of the date of this Agreement, hereby grants to the Participant, as a matter of separate agreement and not in lieu of salary or other compensation for services rendered, the right and option (the “Option”) to purchase all or any part of an aggregate of ____________ [ENTER MAX PERFORMANCE SHARES] shares of Common Stock (the “Shares”) at the price of $______ [INSERT CLOSING PRICE ON GRANT DATE] per share on the terms and conditions set forth in this Agreement. The Option is not intended to be an incentive stock option within the meaning of the Internal Revenue Code of 1986 (the “Code”), as amended.

 

2.           Vesting and Term of Option.

 

(a)     If the Participant remains continuously employed by the Company or an Affiliate through January 27, 2024 (the “Measurement Date”), the Option Shares that vest and become exercisable pursuant to this Section 2 will be determined by reference to the Company’s relative total shareholder return as provided in the table below:

 

 

	
			Relative Total Shareholder Return (“TSR”) 

			Performance

				
			% of Option Shares Vested

			(as % of Target)

				
			Number of shares

			
	
			<25th Percentile

				
			0

				
			-0-

			
	
			25th Percentile (“Threshold”)

				
			50%

				
			[___]

			
	
			50th Percentile (“Target”)

				
			100%

				
			[___]

			
	
			75th Percentile or higher (“Maximum”)

				
			200%

				
			[___]

			

 

-1-

 

 

Note:  Performance between threshold and superior maximum will be calculated on a pro rata basis.  Payout is calculated for each incremental increase in performance (straight line interpolation).  Fractional vested Shares will be rounded down to the nearest whole Share.

 

For purposes of this Section 2(a), relative “TSR” is defined as set forth on Exhibit A which is attached hereto and incorporated by reference.

 

The Option shall in all events terminate on January 27, 2031 or such earlier date as prescribed herein.

 

(b)     Notwithstanding the vesting provision contained in Section 2(a) above, but subject to the other terms and conditions set forth herein, in the event of a Change in Control of the Company and the Participant incurs a Qualifying Termination of Employment during the Protected Period prior to the Measurement Date, all Option Shares shall vest and become exercisable at target performance level.

 

(c)      For the purposes of this Agreement, a “Change in Control” shall be deemed to have occurred upon any of the following events:

 

(i)     a public announcement (which, for purposes hereof, shall include, without limitation, a report filed pursuant to Section 13(d) of the Exchange Act) that any individual, corporation, partnership, association, trust or other entity becomes the beneficial owner (as defined in Rule 13(d)(3) promulgated under the Exchange Act), directly or indirectly, of securities of the Company representing 30% or more of the Voting Power of the Company then outstanding;

 

(ii)     the individuals who, as of the date of this Agreement, are members of the Board of Directors of the Company (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board (provided, however, that if the election or nomination for election by the Company’s shareholders of any new director was approved by a vote of at least a majority of the Incumbent Board, such new director shall be considered to be a member of the Incumbent Board);

 

(iii)     the approval of the shareholders of the Company, and consummation, of (A) any consolidation, merger or statutory share exchange of the Company with any person in which the surviving entity would not have as its directors at least 60% of the Incumbent Board and as a result of which those persons who were shareholders of the Company immediately prior to such transaction would not hold, immediately after such transaction, at least 60% of the Voting Power of the Company then outstanding or the combined voting power of the surviving entity’s then outstanding voting securities; (B) any sale, lease, exchange or other transfer in one transaction or series of related transactions substantially all of the assets of the Company; or (C) the adoption of any plan or proposal for the complete or partial liquidation or dissolution of the Company; or

 

(iv)     a determination by a majority of the members of the Incumbent Board, in their sole and absolute discretion, that there has been a Change in Control of the Company.

 

-2-

 

 

(d)      For the purposes of this Agreement, a “Qualifying Termination of Employment” shall mean either (i) an involuntary termination of employment by the Company or an Affiliate other than for Cause or Disability during the Protected Period; or (ii) a voluntary resignation by the Participant for Good Reason during the Protected Period.

 

(e)     For purposes of this Agreement, “Protected Period” means the 24-month period beginning on and immediately following each and every Change in Control. “Cause” means any act by the Participant that is materially inimical to the best interests of the Company and that constitutes common law fraud, a felony or other gross malfeasance of duty on the part of the Participant. “Disability” means disabled within the meaning of Section 409A(a)(2)(C)(i) of the Code. “Good Reason” shall mean the occurrence of any of the following events, in each case, after the Participant has provided written notice to the Company within 60 days of the occurrence of such event and the Company has failed to cure the cause of such event within 60 days after the date of such written notice (and the Participant terminates employment within 60 days of the expiration of such cure period), except for the occurrence of such an event in connection with the termination or reassignment of the Participant’s employment by the Company or an Affiliate for Cause or for Disability:

 

(i) a material change in the Participant’s pay consisting of a 10% or more reduction in total cash compensation opportunity as in effect immediately prior to the Change in Control (unless such reduction is part of an across-the-board uniformly applied reduction affecting all similarly situated Participants); or

 

(ii) a significant diminution in the Participant’s authority and duties as in effect immediately prior to the Change of Control (excluding an isolated, insubstantial or inadvertent action not taken in bad faith that is remedied promptly by the Company after receiving notice); provided, however, that a change of the individual or officer to whom the Participant reports, in and of itself, would not constitute diminution; or

 

(iii) a change of the Participant’s principal work location of 50 or more miles from that immediately prior to the Change in Control.

 

For purposes of Section 2(c), “Voting Power” when used with reference to the Company shall mean the voting power of all classes and series of capital stock of the Company now or hereafter authorized.

 

3.           Effect of Termination of Employment. The Option shall terminate and may no longer be exercised if the Participant ceases to be employed by the Company or an Affiliate of the Company, except that:

 

(a)     If the Participant voluntarily terminates the Participant’s employment or if the Company or an Affiliate of the Company terminates the Participant’s employment for any reason other than Cause, Disability, Retirement or death, the Participant may exercise the Option at any time within ninety (90) days after such termination of employment to the extent that the Option was exercisable by the Participant on the date of such termination, but not after the expiration of the term of the Option.

 

-3-

 

 

(b)     If the Company or an Affiliate of the Company terminates the Participant’s employment for Cause, the Option shall be terminated as of the date of termination of the Participant’s employment.

 

(c)     If the Participant’s employment is terminated by reason of Disability the restrictions on the Participant’s ability to exercise any percentage of the Option as set forth in Section 2(a), shall lapse and the Option shall vest in full at target performance level. If the Participant’s employment is terminated by reason of Disability, the Participant may exercise the Option at any time within three years after such termination of employment, but not after the expiration of the term of the Option. If the Participant shall die following any such termination, the Option may be exercised at any time within 12 months after the date of the Participant’s death by the personal representatives or administrators of the Participant or by any beneficiary designated in a manner established by the Committee or person or persons to whom the Option has been transferred by will or the applicable laws of descent and distribution, subject to the condition that the Option shall not be exercisable after the expiration of the term of the Option.

 

(d)     If the Participant’s employment is terminated by reason of Retirement, as long as such Retirement is on or after the Measurement Date, any Option Shares that vest and become exercisable under Section 2 will remain outstanding and exercisable until the expiration of the term of the Option. In addition, if the Participant’s employment is terminated by reason of a Retirement prior to the Measurement Date that is consistent with the Company’s succession plan for the Chief Executive Officer of the Company as mutually agreed upon in writing by the Compensation Committee and the Participant, then the Option Shares shall remain outstanding with the opportunity to vest in accordance with Section 2, and any vested Option Shares shall remain exercisable until the expiration of the term of the Option. The Participant may exercise all or any portion of the vested Option at any time prior to the end of the term of the Option, but not after the expiration of the term of the Option. If the Participant shall die following any Retirement, the Option, to the extent vested, may be exercised at any time within 12 months after the later of the date of the Participant’s death or the Measurement Date by the personal representatives or administrators of the Participant or by any beneficiary designated in a manner established by the Committee or person or persons to whom the Option has been transferred by will or the applicable laws of descent and distribution, subject to the condition that the Option shall not be exercisable after the expiration of the term of the Option.

 

(e)     If the Participant shall die while in the employ of the Company or an Affiliate of the Company, the restrictions on the Participant’s (or his or her heirs’) ability to exercise any percentage of the Option as set forth in Section 2(a), shall lapse and the Option shall vest in full at target performance level. The Option may be exercised at any time within 12 months after the date of the Participant’s death by the personal representatives or administrators of the Participant or by any beneficiary designated in a manner established by the Committee or person or persons to whom the Option has been transferred by will or the applicable laws of descent and distribution, subject to the condition that the Option shall not be exercisable after the expiration of the term of the Option.

 

-4-

 

 

For purposes of this Agreement, “Retirement” shall mean the voluntary or involuntary termination of the Participant’s employment for any reason other than Cause, Disability or death, after the Participant has completed at least ten years of service as an employee of the Company and/or an Affiliate and has attained age 55.

 

For avoidance of doubt, if the Participant is employed by an Affiliate that is sold or otherwise ceases to be an Affiliate of the Company, the Participant shall incur a termination of employment by the Company and all Affiliates of the Company under this Agreement.

 

4.           Method of Exercising Option.

 

(a)     Subject to the terms and conditions of this Agreement, the Option shall be exercised by following the procedures established by the Company from time to time, which may require the delivery of a written or electronic notice of exercise (the “Notice”) to the Company (to the attention of the Equity Compensation Specialist) or its agent. The Notice shall be in such form as the Company may prescribe and shall state the election to exercise the Option, the number of Shares as to which the Option is being exercised and the manner of payment and shall be signed by the person or persons so exercising the Option. The Notice shall be accompanied by payment in full of the exercise price for all Shares designated in the notice. The Notice shall also be accompanied by such other information and documents as the Company, in its discretion, may request. To the extent that the Option is exercised after the Participant’s death, the Notice shall also be accompanied by appropriate proof of the right of such person or persons to exercise the Option.

 

(b)     Payment of the exercise price shall be made to the Company through one or a combination of the following methods:

 

(i)       delivery of a certified or cashier’s check, or a wire transfer, payable to the Company or cash, in United States currency;

 

(ii)      delivery of shares of Common Stock acquired by the Participant more than six months prior to the date of exercise having a Fair Market Value on the date of exercise equal to the Option exercise price. The Participant shall duly endorse all certificates delivered to the Company in blank and shall represent and warrant in writing that the Participant is the owner of the shares so delivered, free and clear of all liens, encumbrances, security interests and restrictions;

 

(iii)     if permitted by the Company in its sole discretion, by executing a “cashless exercise” through the Company’s designated broker; or

 

(iv)     delivery of an attestation from the Participant that the Participant owns a number of shares of Common Stock acquired by the Participant more than six months prior to the date of exercise having a Fair Market Value on the date of exercise equal to the Option exercise price (the “Exercise Price Shares”). In such attestation, the Participant shall represent and warrant that the Participant is the owner of the Exercise Price Shares. In the event the Participant exercises the Option in this manner, the number of shares of Common Stock issued to the Participant upon exercise of the Option shall be (A) the number of shares subject to the Option exercise, less (B) the number of Exercise Price Shares.

 

-5-

 

 

5.           Income Tax Withholding. In order to provide the Company with the opportunity to claim the benefit of any income tax deduction which may be available to it upon the exercise of the Option, and in order to comply with all applicable federal, state, local and foreign income tax laws or regulations, the Company may take such action as it deems appropriate to ensure that all applicable federal, state, local or foreign payroll, withholding, income or other taxes, which are the sole and absolute responsibility of the Participant, are withheld or collected from the Participant. The Participant may, at the Participant’s election (the “Tax Election”), satisfy applicable tax withholding obligations by (a) electing to have the Company withhold a portion of the Shares of Common Stock otherwise to be delivered upon exercise of the Option having a Fair Market Value equal to the amount of such taxes (but only to the extent necessary to satisfy minimum statutory withholding requirements if required under ASC Topic 718) or (b) delivering to the Company shares of Common Stock having a Fair Market Value equal to the amount of such taxes. The Tax Election must be made on or before the date that the amount of tax to be withheld is determined.

 

6.           Securities Matters. No Shares shall be issued hereunder prior to such time as counsel to the Company shall have determined that the issuance of the Shares will not violate any federal or state securities or other laws, rules or regulations. The Company shall not be required to deliver any Shares of Common Stock until the requirements of any applicable securities or other laws, rules or regulations (including the rules of any securities exchange) as may be determined by the Company to be applicable are satisfied. In addition, the grant of this Option and/or the delivery of any Shares of Common Stock under this Agreement are subject to the Company’s Executive and Key Manager Compensation Clawback Policy and any other clawback policies the Company may adopt in the future to conform to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (or any other applicable law) and any applicable rules and regulations of the Securities and Exchange Commission or applicable stock exchange.

 

7.           Tax Consequences. The Participant agrees that the Company does not have a duty to design or administer the Plan or its other compensation programs in a manner that minimize the Participant’s tax liabilities. The Participant will not make any claim against the Company, or any of its officers, directors, employees or Affiliates related to tax liabilities arising from the Option or the Participant’s other compensation.

 

8.           Adjustments. In the event that the Committee shall determine that any dividend or other distribution (whether in the form of cash, shares, other securities or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of shares or other securities of the Company, issuance of warrants or other rights to purchase shares or other securities of the Company or other similar corporate transaction or event affects the Shares covered by the Option such that an adjustment is necessary to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under this Agreement, then the Committee shall, in such manner as it may deem equitable, in its sole discretion, adjust any or all of the number and type of the Shares covered by the Option and the exercise price of the Option.

 

9.           General Provisions.

 

(a)     Interpretations. This Agreement is subject in all respects to the terms of the Plan. Terms used herein which are defined in the Plan shall have the respective meanings given to such terms in the Plan, unless otherwise defined herein. In the event that any provision of this Agreement is inconsistent with the terms of the Plan, the terms of the Plan shall govern. Any question of administration or interpretation arising under this Agreement shall be determined by the Committee, and such determination shall be final, conclusive and binding upon all parties in interest.

 

-6-

 

 

(b)     No Rights as a Shareholder. Neither the Participant nor the Participant’s legal representatives shall have any of the rights and privileges of a shareholder of the Company with respect to the Shares of Common Stock subject to the Option until such Shares shall have been issued upon exercise of the Option.

 

(c)     No Right to Employment. Nothing in this Agreement or the Plan shall be construed as giving the Participant the right to be retained as an employee of the Company or any Affiliate. In addition, the Company or an Affiliate may at any time dismiss the Participant from employment, free from any liability or any claim under this Agreement, unless otherwise expressly provided in this Agreement or the Plan.

 

(d)     Option Not Transferable. The Option shall not be transferable other than (i) by will or by the laws of descent and distribution, or (ii) by designating a beneficiary or beneficiaries (in a manner established by the Committee) to exercise the rights of the Participant and receive any property distributable with respect to any Option upon the death of the Participant. During the Participant’s lifetime the Option shall be exercisable only by the Participant or, if permissible under applicable law, by the Participant’s guardian or legal representative. The Option may not be pledged, alienated, attached or otherwise encumbered, and any purported pledge, alienation, attachment or encumbrance of the Option shall be void and unenforceable against the Company.

 

(e)     Reservation of Shares. The Company shall at all times during the term of the Option reserve and keep available such number of shares of Common Stock as will be sufficient to satisfy the requirements of this Agreement.

 

(f)     Headings. Headings are given to the sections and subsections of this Agreement solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of this Agreement or any provision hereof.

 

(g)     Venue and Governing Law. The internal law, and not the law of conflicts, of the State of Minnesota will govern all questions concerning the validity, construction and effect of this Agreement. For purposes of any action, lawsuit or other proceedings brought to enforce the Agreement, relating to it, or arising from it, the parties hereby submit to and consent to the sole and exclusive jurisdiction of the courts of Ramsey County, Minnesota, or the federal courts for the United States for the District of Minnesota, and no other courts, where this grant is made and/or to be performed.

 

(h)      Consent to Collection/Processing/Transfer of Personal Data.  Pursuant to applicable personal data protection laws, the Company hereby notifies the Participant of the following in relation to the Participant’s personal Data (as defined below) and the collection, use, processing and transfer of such Data in relation to the Company’s grant of this award and the Participant’s participation in the Plan.  The collection, use, processing and transfer of the Participant’s Data is necessary for the Company’s administration of the Plan and the Participant’s participation in the Plan, and the Participant’s denial and/or objection to the collection, use, processing and transfer of Data may affect the Participant’s participation in the Plan.  As such, the Participant hereby voluntarily acknowledges and consents (where required under applicable law) to the collection, use, processing and transfer of Data as described in this paragraph.

 

-7-

 

 

(i)     The Company and the Participant hold certain personal information about the Participant, including the Participant’s name, home address, email address and telephone number, date of birth, social security number, passport number or other employee identification number, salary, nationality, job title, any shares of Common Stock or directorships held in the Company, details of all stock awards or any other entitlement to shares of Common Stock awarded, canceled, purchased, vested, unvested or outstanding in the Participant’s favor, for the purpose of managing and administering the Plan (“Data”). Data may be provided by the Participant or collected, where lawful, from third parties, and Company will process Data for the exclusive purpose of implementing, administering and managing the Participant’s participation in the Plan. Data processing will take place through electronic and non-electronic means according to logics and procedures strictly correlated to the purposes for which Data are collected and with confidentiality and security provisions as set forth by applicable laws and regulations in the Participant’s country of residence. Data processing operations will be performed minimizing the use of personal and identification data when such operations are unnecessary for the processing purposes sought. Data will be accessible within Company’s organization only by those persons requiring access for purposes of the implementation, administration and operation of the Plan and for the Participant’s participation in the Plan.

 

(ii)     Company and the Participant’s employer (if the Participant’s employer is not the Company) “Employer” will transfer Data amongst themselves as necessary for the purpose of implementation, administration and management of the Participant’s participation in the Plan, and Company and the Employer may each further transfer Data to any third parties assisting Company in the implementation, administration and management of the Plan. As permitted by applicable personal data protection laws, if Company or the Employer becomes involved in a merger, acquisition, sale of assets, joint venture, securities offering, bankruptcy, reorganization, liquidation, dissolution, or other transaction or if the ownership of all or substantially all of Company or the Employer otherwise changes, Company or the Employer may transfer Data to a third party or parties in connection therewith.  These recipients may be located in the European Economic Area, or elsewhere throughout the world, such as the United States. The Participant hereby authorizes (where required under applicable law) them to receive, possess, use, retain and transfer Data, in electronic or other form, for purposes of implementing, administering and managing the Participant’s participation in the Plan, including any requisite transfer of such Data as may be required for the administration of the Plan and/or the subsequent holding of shares of Common Stock on the Participant’s behalf to a broker or other third party with whom the Participant may elect to deposit any shares of Common Stock acquired pursuant to the Plan.

 

(iii)     The Participant may, at any time, exercise his or her rights provided under applicable personal data protection laws, which may include the right to (a) obtain confirmation as to the existence of Data, (b) verify the content, origin and accuracy of Data, (c) request the integration, update, amendment, deletion, or blockage (for breach of applicable laws) of Data, and (d) to oppose, for legal reasons, the collection, processing or transfer of Data which is not necessary or required for the implementation, administration and/or operation of the Plan and the Participant’s participation in the Plan. The Participant may seek to exercise these rights by contacting the Employer’s local HR manager or Company’s Human Resources Department. The Participant understands that he or she is providing the consent herein on a purely voluntary basis. If the Participant does not consent or later seeks to remove his or her consent, the Participant’s salary from or employment with the Employer will not be affected; the only consequence of refusing or withdrawing his or her consent is that Company would not be able to grant the Option or other equity awards or participate in the Plan.

 

-8-

 

 

(iv)     Finally, the Participant understands that Company may rely on a different legal basis for the processing and/or transfer of Data in the future and/or request that the Participant provide another data privacy consent or acknowledgment. If applicable and upon request of Company or the Employer, the Participant agrees to provide an executed acknowledgment or data privacy consent form (or any other acknowledgment, agreement or consent) to Company or the Employer that Company and/or the Employer may deem necessary to obtain under the data privacy laws in the Participant’s country, either now or in the future. The Participant understands that he or she will not be able to participate in the Plan if the Participant fails to execute any such acknowledgment or consent requested by Company or the Employer.

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective as of the date first set forth above.

 

	
			 

				
			H.B. FULLER COMPANY

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	 	 	 
	 	 	 
	
			 

				Participant	
			 

			
	 	 	 	 
	 	Date:	 	 

 

-9-

 

 

Exhibit A

 

 

TSR Performance Period: Fiscal Year 2021 through Fiscal Year 2023

 

 

Definition of Total Shareholder Return

 

	 	
			●

				
			Total Shareholder Return (TSR)” shall mean the change in the value, expressed as a percentage of a given dollar amount invested in a company’s most widely publicly traded stock over the Performance Period, taking into account both stock price appreciation (or depreciation) and the reinvestment of dividends (including the cash value of non-cash dividends) in additional stock of the company.

			
	 	 	 

	 	
			●

				
			For purposes of calculating TSR:

			
	 	 	 

	 	
			o

				
			The beginning price shall be equal to the 20 trading-day average closing price for H.B. Fuller and each peer company immediately prior to the Performance Period; and

			

 

	 	
			o

				
			The ending price shall be equal to the 20 trading-day average closing price for H.B. Fuller and each peer company ending with the last day of the Performance Period.

			

 

Payment Schedule

 

	
			Relative TSR Performance

				
			Share Payout

			(as % of Target)

				
			Number of shares

			
	
			<25th Percentile

				
			0

				
			-0-

			
	
			25th Percentile (“Threshold”)

				
			50%

				
			[___]

			
	
			50th Percentile (“Target”)

				
			100%

				
			[___]

			
	
			75th Percentile or higher (“Maximum”)

				
			200%

				
			[___]

			

 

	 	
			●

				
			H.B. Fuller's TSR during the Performance Period will be compared, according to percentile rank, to the TSRs of a defined group of 50 peer companies during the same period (see Exhibit B below)

			

	 	
			●

				
			For performance between threshold and target, and between target and maximum, the number units will be determined by interpolation

			

	 	
			●

				
			Cap: If H.B. Fuller’s TSR is negative, then the payout is capped at 100% of target

			

 

-10-

 

 

Exhibit B

 

For purposes of calculating Relative TSR Performance, the peer group consists of the following 50 companies:

 

	 	●	
			AdvanSix Inc.

				
			ASIX

			
	 	●	
			Albemarle Corporation

				
			ALB

			
	 	●	
			Allegheny Technologies Incorporated

				
			ATI

			
	 	●	
			American Vanguard Corporation

				
			AVD

			
	 	●	
			Arconic Corporation

				
			ARNC

			
	 	●	
			Ashland Global Holdings Inc.

				
			ASH

			
	 	●	
			Avery Dennison Corporation

				
			AVY

			
	 	●	
			Avient Corporation

				
			AVNT

			
	 	●	
			Balchem Corporation

				
			BCPC

			
	 	●	
			Boise Cascade Company

				
			BCC

			
	 	●	
			Cabot Corporation

				
			CBT

			
	 	●	
			Carpenter Technology Corporation

				
			CRS

			
	 	●	
			Celanese Corporation

				
			CE

			
	 	●	
			Century Aluminum Company

				
			CENX

			
	 	●	
			Clearwater Paper Corporation

				
			CLW

			
	 	●	
			Cleveland-Cliffs Inc.

				
			CLF

			
	 	●	
			Donaldson Company, Inc.

				
			DCI

			
	 	●	
			Ferro Corporation

				
			FOE

			
	 	●	
			FMC Corporation

				
			FMC

			
	 	●	
			FutureFuel Corp.

				
			FF

			
	 	●	
			GCP Applied Technologies Inc.

				
			GCP

			
	 	●	
			Glatfelter Corporation

				
			GLT

			
	 	●	
			Graco Inc.

				
			GGG

			
	 	●	
			Hawkins, Inc.

				
			HWKN

			
	 	●	
			Haynes International, Inc.

				
			HAYN

			
	 	●	
			Innospec Inc.

				
			IOSP

			
	 	●	
			International Flavors & Fragrances Inc.

				
			IFF

			
	 	●	
			Kaiser Aluminum Corporation

				
			KALU

			
	 	●	
			Koppers Holdings Inc.

				
			KOP

			
	 	●	
			Kraton Corporation

				
			KRA

			
	 	●	
			Livent Corporation

				
			LTHM

			
	 	●	
			Materion Corporation

				
			MTRN

			
	 	●	
			Mercer International Inc.

				
			MERC

			
	 	●	
			Myers Industries, Inc.

				
			MYE

			
	 	●	
			Neenah, Inc.

				
			NP

			
	 	●	
			Nordson Corporation

				
			NDSN

			
	 	●	
			Olin Corporation

				
			OLN

			
	 	●	
			Olympic Steel, Inc.

				
			ZEUS

			
	 	●	
			Quaker Chemical Corporation

				
			KWR

			
	 	●	
			Rayonier Advanced Materials Inc.

				
			RYAM

			
	 	●	
			RPM International Inc.

				
			RPM

			
	 	●	
			Schweitzer-Mauduit International, Inc.

				
			SWM

			
	 	●	
			Sensient Technologies Corporation

				
			SXT

			
	 	●	
			Stepan Company

				
			SCL

			
	 	●	
			SunCoke Energy, Inc.

				
			SXC

			
	 	●	
			TimkenSteel Corporation

				
			TMST

			
	 	●	
			Tredegar Corporation

				
			TG

			
	 	●	
			Trinseo S.A.

				
			TSE

			
	 	●	
			U.S. Concrete, Inc.

				
			USCR

			
	 	●	
			Warrior Met Coal, Inc.

				
			HCC

			

 

 

The Committee shall have discretion in determining the manner of including or the exclusion of peer companies that are no longer publicly traded as of the end of the TSR Performance Period. In general, peer companies that are no longer publicly traded as of the end of the period shall be excluded from the determination of percentile rank.

 

Peer companies that are no longer publicly traded as of the end of the Performance Period due to filing for bankruptcy prior to the end of the Performance Period shall be assigned a TSR -100% for the TSR.

 

In the case of a merger or acquisition involving two peer companies during the performance period, the acquiree or merged company (as applicable) shall be removed from the list of peer companies, and the acquirer or successor company (as applicable), shall remain on the list of peer companies.

 

In the case of a spinoff involving a peer company during the Performance Period, such company shall remain on the list of peer companies, and any new company formed as a result of the spinoff shall not be added to the list of peer companies.

 

-11-Exhibit 10.1

 

DEED OF IRREVOCABLE UNDERTAKING

 

To:

 

AMS Holdco 2 Limited (the “Offeror”)

c/o King & Spalding International LLP

125 Old Broad Street

London EC2N 1AR

United Kingdom

 

_______________________ 2021

 

Dear Sirs,

 

Acquisition of Scapa Group plc
(the “Company”)

 

		1	Background 

 

I, the undersigned, understand
that the Offeror intends to announce its firm intention to make an offer for the entire issued share capital of the Company (the
 “Acquisition”) by way of a scheme of arrangement (pursuant to Part 26 of the Companies Act 2006) (the “Scheme”)
substantially on the terms and conditions set out in or referred to in the announcement to be made by the Offeror, a copy of which
is annexed hereto (subject to such non-material modifications to the Announcement as may be agreed by the Offeror and the Company)
(the “Announcement”), and/or on such terms and conditions as may be required by the City Code on Takeovers and
Mergers (the “Code”), the Panel on Takeovers and Mergers (the “Panel”) and/or the requirements
of the London Stock Exchange plc (the “London Stock Exchange”) or any other relevant regulatory body or securities
exchange and/or as are customarily included in offers made under the Code.

 

I understand that the Acquisition
is expected to be implemented by way of a Scheme but that the Offeror is entitled, in the circumstances set out in the Announcement
and with consent of the Panel, to implement the Acquisition by way of a takeover offer within the meaning of section 974 of the
Companies Act 2006 (“Offer”). The full terms of the Scheme will be set out in a formal circular to be sent to
shareholders of the Company containing, amongst other things, an explanatory statement in respect of the Scheme (the “Scheme
Document”).

 

All capitalised
terms used in this Deed shall have the meaning given to them in the Announcement, unless otherwise defined herein.

 

		2	Irrevocable Undertakings 

 

		2.1	I irrevocably and unconditionally undertake, confirm, represent and warrant to the Offeror that:

 

    

     

    

 

		2.1.1	I am the registered holder and/or the beneficial owner of (or am otherwise able to control the
exercise of all rights attaching to, including voting rights and the ability to procure the transfer of), that number of ordinary
shares of £0.05 each in the capital of the Company as are set out against my name in the first column of the Schedule to
this Deed (the “Shares”, which expression shall include any other shares in the Company issued after the date hereof
to me and attributable to or derived from such shares) and confirm that this represents a complete and accurate list of all the
shares and other securities in the Company of which I am the beneficial owner or otherwise able to control the exercise of all
rights attaching to them;

 

		2.1.2	I have full power and authority (free from any legal or other restrictions), and will at all times
continue to have all relevant power and authority and the right to transfer the Shares free from all liens, equities, charges,
encumbrances, options, rights of pre-emption and any other third-party rights and interests of any nature and together with all
rights attaching to them, including voting rights;

 

		2.1.3	the Shares shall be acquired by the Offeror pursuant to the terms of the Scheme (or, as applicable,
the Offer), free from all liens, equities, charges, encumbrances, options, rights of pre-emption and any other third party rights
and interests of any nature and together with all rights attaching or accruing to them, including voting rights;

 

		2.1.4	prior to the Scheme becoming effective (or, if applicable, the Offer closing, being withdrawn or
lapsing) or my obligations terminating in accordance with the terms of this Deed (whichever is earlier), I shall not:

 

		(a)	(other than pursuant to the Scheme), sell, transfer, pledge, charge, encumber, grant any option
over or otherwise dispose of or permit the sale, transfer, pledge, charging or other disposition or creation or grant of any other
encumbrance or option of or over all or any of such Shares or interest in such Shares except under the Scheme, or accept any other
offer in respect of all or any of such Shares (whether conditionally or unconditionally); or

 

		(b)	(other than pursuant to the Scheme) enter into any agreement or arrangement or permit any agreement
or arrangement to be entered into or incur any obligation or permit any obligation to arise which would or might preclude, restrict
or impede me from complying with my obligations under paragraphs 2.1.2, 2.1.4 or 3.4 of this Deed, and references in this paragraph
2.1.3 to any agreement, arrangement or obligation shall include any such agreement, arrangement or obligation whether or not subject
to any conditions or which is to take effect upon or following the Scheme becoming effective or the Offer closing, being withdrawn
or lapsing or upon or following this Deed ceasing to be binding or upon or following any other event;

 

		(c)	exercise any voting rights attaching to the Shares to vote in favour of any scheme of arrangement
or other transaction competing with the Acquisition;

 

    

     

    

 

		(d)	in my capacity as a shareholder of the Company, without the consent of the Offeror, convene or
requisition, or join in the convening or requisitioning of, any general or class meeting of the Company for the purposes of voting
on any resolution referred to under paragraphs 2.1.4(b) to 2.1.4(d) of this Deed;

 

		(e)	save as set out in paragraph 2.1.4, I will not acquire any shares or other securities of the Company
(or any interest therein);

 

		2.1.5	[I have been granted options and awards over shares in the Company under the Company’s share
scheme(s) as set out in the second column of the table in the Schedule to this Deed (the “Awards”), the Awards
are still subsisting and I am beneficially entitled to the Awards. I shall accept any proposal made by or on behalf of you to holders
of options and awards over shares in compliance with Rule 15 of the Code in respect of all such Awards held by me not later than
seven days after you send such proposals to the holders of options and awards or otherwise ensure that any Shares arising on the
exercise of options or vesting of awards prior to the effective date of the Scheme participate in the Scheme]; and

 

		2.1.6	I have full power and authority and the right (free from any legal or other restrictions), and
will at all times continue to have all relevant power and authority and the right, to enter into and perform my obligations under
this Deed in accordance with their terms.

 

		2.2	I have full power and authority to, and (unless the Offeror otherwise requests me in writing in
advance) shall, exercise, or where applicable, procure the exercise of, all votes (whether on a show of hands or a poll and whether
in person or by proxy) in relation to the Shares at:

 

		2.2.1	the meeting of the Company’s ordinary shareholders convened by order of the Court (including
any adjournment thereof) for the purpose of considering and, if thought fit, approving the Scheme (the “Court Meeting”);
and

 

		2.2.2	the general meeting of the Company’s ordinary shareholders (including any adjournment thereof)
to be convened in connection with the Scheme (the “GM”),

 

in favour
of the Scheme and in respect of any resolutions (whether or not amended) required to give effect to the Scheme (the “Resolutions”)
as set out in the notices of meeting in the Scheme Document.

 

		2.3	I shall, after the despatch of the Scheme Document to the Company’s shareholders (and without
prejudice to my right to attend and vote in person at the Court Meeting and the GM):

 

		2.3.1	return (or, where I am not the registered holder of the relevant Shares, take all steps necessary
to procure the return of) the signed forms of proxy enclosed with the Scheme Document (completed so as to appoint the chair of
the relevant meeting as my/our proxy in respect of the Shares, signed and voting in favour of the Scheme and the Resolutions) in
accordance with the instructions printed on the forms of proxy as soon as possible and in any event within ten (10) days after
the date of despatch of the Scheme Document; and

 

    

     

    

 

		2.3.2	not revoke or withdraw the forms of proxy once they have been returned in accordance with paragraph
2.3.1.

 

		2.4	I irrevocably and unconditionally undertake that:

 

		2.4.1	I shall exercise, or, where applicable, procure the exercise of, all voting rights attaching to
the Shares on any resolution (whether or not amended and whether put on a show of hands or a poll) which is proposed at any general
meeting of the Company (including any adjournment thereof) or at any meeting of holders of shares in the Company convened by a
Court (including any adjournment thereof) which:

 

		(a)	is reasonably necessary to implement the Scheme;

 

		(b)	might reasonably be expected to have any impact on the fulfilment of any condition of the Scheme;

 

		(c)	might reasonably be expected to impede or frustrate the Scheme in any way (which shall include
any resolution to approve a scheme of arrangement relating to the acquisition of any shares in the Company by a third party); or

 

		(d)	might reasonably be expected otherwise to impact on the success of the Scheme,

 

only in accordance with the
Offeror’s instructions,

 

		2.4.2	I shall exercise, or, where applicable, procure the exercise of, all rights attaching to the Shares
to requisition or join in the requisitioning of any general meeting of the Company for the purposes of voting on any resolution
referred to under paragraph 2.4.1 of this Deed, or to require the Company to give notice of any such meeting, only in accordance
with the Offeror’s instructions; and

 

		2.4.3	for the purpose of voting on any resolution referred to under paragraph 2.4.1 of this Deed, I shall,
if required by the Offeror, execute any form of proxy required by the Offeror appointing any person nominated by the Offeror to
attend and vote at the relevant meetings.

 

		3	Secrecy and Publicity

 

		3.1	I understand that the information provided to me in relation to the Acquisition is given in confidence
and must be kept confidential, save as required by law or any rule of any relevant regulatory body or stock exchange, until the
Announcement containing details of the Scheme is released or the information has otherwise become generally or publicly available.
If and to the extent any of the information is inside information for the purposes of the Criminal Justice Act 1993 or the Market
Abuse (Amendment) (EU Exit) Regulations 2019, I shall comply with the applicable restrictions in those enactments on dealing in
securities and disclosing inside information. The obligations in this paragraph 3.1 shall survive termination of this Deed.

 

    

     

    

 

		3.2	I consent to:

 

		3.2.1	the announcement of the Acquisition containing references to me and to this Deed substantially
in the terms set out in the Announcement;

 

		3.2.2	the inclusion of references to me and particulars of this deed being set out in the Scheme Document;

 

		3.2.3	this deed being published on a website as required by Rule 26.2 and Note 4 on Rule 21.2 of the
Code.

 

		3.3	I acknowledge that I am obliged to make appropriate disclosure under Rule 2.10 of the Code promptly
after becoming aware that I will not be able to comply with the terms of this deed or no longer intend to do so.

 

		3.4	I shall immediately notify you in writing of any change to or inaccuracy in any information supplied
by me or representation or warranty given by me under this Deed.

 

		4	Termination 

 

		4.1	This Deed shall not oblige the Offeror to announce the Acquisition. However, without prejudice
to any accrued rights or liabilities, my obligations under this Deed shall terminate and be of no further force and effect if:

 

		4.1.1	a press announcement substantially in the form of the Announcement is not released by [●]
2021 (or such later date as the Offeror and the Company may agree);

 

		4.1.2	the Offeror announces, with the consent of the Panel, and before the Scheme Document is published,
that it does not intend to proceed with the Acquisition and no new, revised or replacement Scheme is announced by the Offeror in
accordance with Rule 2.7 of the Takeover Code; or

 

		4.1.3	the Scheme (or, as applicable, the Offer) is withdrawn or lapses in accordance with its terms,
provided that the following shall not apply:

 

    

     

    

 

		(a)	where the Scheme is withdrawn or lapses as a result of the Offeror exercising its right to implement
the Acquisition by way of an Offer rather than a Scheme; or

 

		(b)	if the lapse or withdrawal either is not confirmed by the Offeror or is followed within five business
days by an announcement under Rule 2.7 of the Code by the Offeror (or a person acting in concert with it) to implement the Acquisition
either by a new, revised or replacement scheme of arrangement pursuant to Part 26 of the Companies Act 2006 or takeover offer (within
the meaning of section 974 of the Companies Act 2006).

 

On termination of this Deed I shall have no claim
against the Offeror and the Offeror shall have no claim against me, save in respect of any prior breach thereof.

 

		5	Takeover offer alternative

 

		5.1	I acknowledge that the Offeror shall in certain circumstances have the right to elect to implement
the Acquisition by way of an Offer as opposed to a Scheme.

 

		5.2	If such an Offer is made by the Offeror, I undertake and warrant that any Obligations shall apply
mutatis mutandis to such Offer and, in particular, I undertake to accept, or procure the acceptance of, such Offer, in respect
of the Shares within 21 days of such Offer or such shorter period as the Panel may determine to be the last date for satisfaction
of the acceptance condition under the timetable for the Offer to apply following the election of the Offeror to implement the Acquisition
by way of Offer. I further undertake, if so required by the Offeror, to execute or procure the execution of all such other documents
as may be necessary for the purpose of giving the Offeror the full benefit of the Obligations so applying with respect to such
Offer and, notwithstanding the provisions of the Code or any terms of the Offer regarding withdrawal, not to withdraw such acceptance.

 

		5.3	References in this Deed to:

 

		5.3.1	the Scheme becoming effective shall be read as references to the Offer becoming or being declared
unconditional in all respects;

 

		5.3.2	the Scheme lapsing or being withdrawn shall be read as references to the closing or lapsing of
the Offer; and

 

		5.3.3	to the Scheme or Offer shall include any extended, increased
or revised proposal by the Offeror for the acquisition of the Company, the terms of which are at least as favourable to shareholders
of the Company as the terms set out in the Announcement.

 

    

     

    

 

		6	Miscellaneous

 

		6.1	Without prejudice to any other rights or remedies which you may have, I acknowledge and agree that
damages may not be an adequate remedy for any breach by me of any of my obligations under or pursuant to this Deed. You shall be
entitled to seek the remedies of injunction, specific performance and other equitable relief for any threatened or actual breach
of any such obligation and no proof of special damages shall be necessary for the enforcement by you of your rights.

 

		6.2	I irrevocably and by way of security for my obligations hereunder appoint each of the Offeror,
and any director of the Offeror to be my attorney to execute on my behalf proxy forms for the Court Meeting or GM or forms of acceptance
to be issued with the offer document in respect of the Shares and to sign, execute and deliver any documents and to do all acts
and things as may be necessary for or incidental to my acceptance of the Scheme and/or performance of my obligations under this
Deed provided that such appointment shall not take effect until seven business days after the despatch of the Scheme Document and
only then if I have failed to comply with paragraph 2.3. Nothing in this paragraph 6.2 however shall permit any such attorney to
choose on my behalf the form(s) of consideration to be received by me pursuant to the Scheme (or, as applicable, the Offer) where
the terms of the Scheme (or, as applicable, the Offer) give shareholders the option of more than one form of consideration.

 

		6.3	Nothing in this undertaking shall constitute an obligation for me, in my capacity as a director
of the Company, to take any action which is not permitted by Practice Statement No. 29 issued by the Panel, nor should anything
in this undertaking impose any obligations on me in my capacity as a director of the Company which would in any way impede or prejudice
my obligations and duties, or fetter my discretion, as a director of the Company, and in particular (without prejudice to the generality
of the foregoing) nothing in this undertaking shall restrict my ability as a director of the Company to change my recommendation
to shareholders of the Company (if any) in accordance with my duties as a director of the Company. This undertaking is given by
me solely in my capacity as a shareholder of the Company.

 

		6.4	I acknowledge and agree that if the Panel determines any provision of this undertaking that requires
the Company to take or not to take action, whether as a direct obligation or as a condition to any other person’s obligation
(however expressed), is not permitted by Rule 21.2 of the Code, that provision shall have no effect and shall be disregarded.

 

		6.5	In respect of any Shares not registered in my name, I undertake to procure their registered holder
to comply with my obligations under this Deed.

 

		6.6	I shall from time to time promptly complete, execute and deliver such documents and do all such
other things as may be necessary to give full effect to each of my undertakings, agreements, warranties, representations, appointments
and consents as set out in this Deed.

 

		6.7	Time shall be of the essence as regards the obligations set out in this Deed.

 

    

     

    

 

		6.8	This deed shall bind my estate and personal representatives.

 

		6.9	The invalidity, illegality or unenforceability of any provision of this Deed shall not affect the
continuation in force of the remainder of this Deed.

 

		6.10	This Deed shall be governed by and construed in accordance with English law. Any matter, claim
or dispute, whether contractual or non-contractual, arising out of or in connection with this Deed is to be governed by and determined
in accordance with English law and shall be subject to the exclusive jurisdiction of the English courts.

 

I intend this document to be a deed and
execute and deliver it as a deed on the date first set out above.

 

Yours faithfully

 

	Executed and delivered as a deed by:	 	 
	 	 	 
	[●]	 	 
	 	 	 
	in the presence of:	 	 
	 	 	 
	Signature of witness	 	 
	 	 	 
	Name of witness	 	 
	 	 	 
	Address of witness	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Occupation of witness

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00320-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00320-of-00352.parquet"}]]