Document:

exv10w1

Exhibit 10.1

WAIVER TO

DEPOSITARY AND DISBURSEMENT AGREEMENT

     This WAIVER TO DEPOSITARY AND DISBURSEMENT AGREEMENT (this “Waiver”), dated as of
September 5, 2008, is made by and among PANDA HEREFORD ETHANOL, L.P., as Borrower, SOCIÉTÉ
GÉNÉRALE, as Administrative Agent (in such capacity, the “Administrative Agent”),
Disbursement Agent and a Lender, and the LENDERS (collectively, the “Parties”).
Capitalized terms not defined in this Waiver shall have the meanings given in the Financing
Agreement, dated as of July 28, 2006 (as amended, the “Financing Agreement”), by and among
Borrower, the Agents, the Lenders from time to time party thereto, the LC Fronting Bank and the
Lead Arranger.

RECITALS

     WHEREAS, Borrower, the Lenders, the Administrative Agent and Société Générale, as Disbursement
Agent, have previously entered into the Depositary and Disbursement Agreement, dated as of July 28,
2006 (as amended, the “Disbursement Agreement”);

     WHEREAS, the Borrower has requested that the Majority Lenders permit (a) a Borrowing of
Tranche B Term Loans as requested by the Borrower’s Notice of Borrowing dated September 4, 2008 and
(b) disbursement of (i) the amounts requested by the Borrower’s Construction Draw Request dated
September 4, 2008 and (ii) the fees, costs and expenses due to the Administrative Agent and the
Lenders in connection herewith and therewith (collectively, the “Requested Borrowing and
Draw”); and

     WHEREAS, the Financing Agreement requires the approval of the Majority Lenders with respect to
the waivers described above.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein,
and other good and valuable consideration, the receipt and adequacy of which is hereby
acknowledged, the Parties agree as follows:

     1. Waiver.

     The Administrative Agent and the undersigned Lenders hereby waive the requirements of Section
3.5 of the Financing Agreement and the Construction Draw Conditions set forth in Section 1.2(c) of
the Disbursement Agreement solely to allow the Requested Borrowing and Draw to be made and
disbursed on or promptly after the date this Waiver becomes effective, subject to the
Administrative Agent’s satisfaction in its sole discretion with, among other things, the accuracy
of the Borrower’s disclosures to the Administrative Agent and the Lenders. If a Lender does not
execute this Waiver by the deadline described in Section 3(b) hereof, the amount of the Requested
Borrowing and Draw shall be reduced by the amount of the fee that would otherwise have been payable
to such Lender under Section 3(b), and the Notice of Borrowing and the Construction Draw Request
described in the second WHEREAS clause hereof shall be deemed automatically amended to remove the
payment of such fee to such Lender and to reduce the amount of the Requested Borrowing and Draw
accordingly.

 

 

     2. Agreements.

     (a) In order to induce the undersigned Lenders to execute this Waiver, the Borrower
hereby agrees:

          (i) To cooperate in good faith to reach an agreement regarding the
restructuring of the Borrower’s obligations by September 30, 2008, including,
without limitation, under the Financing Documents and the Project Documents;

          (ii) That, if a Bankruptcy Event with respect to the Borrower occurs, (A) the
Borrower will agree that the Lenders are adequately protected by the Collateral, (B)
the Borrower will, to the extent that it has sufficient funds and is otherwise not
precluded from doing so, support any motion or other request of the Administrative
Agent and the Lenders for payment of interest, fees and expenses with respect to the
Loans and other Obligations during such Bankruptcy Event and (C) the Borrower will
have first sought debtor-in-possession financing from the Lenders; and

          (iii) That, beginning the date this Waiver becomes effective, the Applicable
Margin shall be increased to 4.25%.

     (b) The Administrative Agent and the Lenders party hereto agree not to exercise any
rights and remedies that constitute acceleration, foreclosure or other actions against the
Collateral with respect to any Default, Event of Default or other circumstances previously
disclosed by the Borrower in writing to the Lenders until October 1, 2008, provided,
however, that nothing contained herein shall (i) constitute a waiver of such
Default, Event of Default or circumstance, (ii) permit the Borrower to make any Borrowing or
Construction Draw (other than the Requested Borrowing and Draw) or (iii) otherwise permit
the Borrower to exercise any right it may have under the Financing Documents if such
Default, Event of Default or circumstance did not exist.

     3. Effectiveness. This Waiver shall be deemed effective upon the receipt by the
Administrative Agent of the following:

     (a) this Waiver duly executed by Borrower, the Administrative Agent and the Majority
Lenders;

     (b) the payment in immediately available funds of a waiver fee, for the account of each
Lender that delivered their executed signature page hereto on or before 5:00 p.m., New York
City time, on September 5, 2008, in the amount of 0.50% of the Commitments and Loans of such
Lenders; and

     (c) such other instruments, documents and agreements as the Administrative Agent may
reasonably request, in form and substance reasonably satisfactory to the Administrative
Agent.

     4. Representations and Warranties. Borrower hereby represents and warrants to the
Administrative Agent and the Lenders as follows:

2

 

     (a) Borrower has all the requisite power and authority to execute this Waiver and to
perform all of its respective obligations hereunder, and this Waiver has been duly executed
and delivered by Borrower and constitutes the legal, valid and binding obligations of
Borrower, enforceable in accordance with its terms;

     (b) The execution, delivery and performance by Borrower of this Waiver have been duly
authorized by all necessary action and do not (i) require any authorization, consent or
approval by any governmental department, commission, board, bureau, agency or
instrumentality, domestic or foreign; (ii) violate any provision of any law, rule or
regulation or of any order, writ, injunction or decree presently in effect, having
applicability to Borrower or the organizational documents of Borrower; or (iii) result in a
breach or constitute a default under any loan or credit agreement or any other agreement,
lease or instrument to which Borrower is a party or by which any of its respective
properties may be bound or effected;

     (c) No Default or Event of Default exists under the Financing Documents on and as of
the date hereof except as previously disclosed to the Lenders in writing;

     (d) All amounts requested listed on Annex I to the Construction Draw Request described
above constitute Qualified Project Construction Expenses; and

     (e) After giving effect to this Waiver, Borrower hereby represents that all
representations and warranties made by it to the Senior Secured Parties in the Financing
Agreement and the other Financing Documents are true and correct in all material respects
with the same force and effect as if made on and as of the date hereof (except to the extent
such statements, representations and warranties made in any such Financing Document or
writing executed prior to the date hereof related to a specific prior date).

     5. No Modification.

     Except as expressly set forth herein, the Financing Agreement, each other Financing Document
and each document executed in connection therewith shall continue to be, and shall remain, in full
force and effect in accordance with the provisions thereof. Except as expressly set forth herein,
this Agreement shall not be deemed to be an amendment or waiver of, or consent to any departure
from, any other term or condition of the Financing Agreement, any other Financing Document or any
document executed in connection therewith or to prejudice any other right or rights which the
Administrative Agent, any Lender or any other Secured Party may now have or may have in the future
under or in connection with the Financing Agreement, any other Financing Document or any document
executed in connection therewith.

     6. Miscellaneous.

     (a) Each reference in the Disbursement Agreement to “this Agreement” and each reference
in each of the Financing Documents to the “Disbursement Agreement” shall be deemed to refer
to the Disbursement Agreement as modified by this Waiver.

     (b) This Waiver will be a Financing Document for all purposes of the Financing
Agreement.

3

 

     (c) This Waiver shall be governed by and construed in accordance with the laws of the
State of New York, without regard to the conflict of law provisions thereof (other than
Section 5.1401 of the General Obligations Law and any successor statute thereto).

     (d) Except as expressly modified or amended herein, the Financing Agreement and the
Disbursement Agreement shall each continue in effect and shall continue to bind the parties
thereto.

     (e) This Waiver shall not constitute a waiver or modification of any of the Lenders’ or
Agents’ rights and remedies or of any of the terms, conditions, warranties, representations,
or covenants contained in the Financing Documents, except as specifically set forth above,
and the Lenders and the Administrative Agent hereby reserve all of their rights and remedies
pursuant to the Financing Documents and applicable law.

     (f) This Waiver may be executed in any number of counterparts and by the different
Parties hereto in separate counterparts, each of which when so executed and delivered will
be deemed an original and all of which counterparts, taken together, will constitute one and
the same instrument.

     (g) As a material part of the consideration for the Administrative Agent and the
undersigned Lenders entering into this Waiver, the Borrower, on behalf of itself and its
officers, directors, equity holders, Affiliates, successors and assigns, hereby releases and
forever discharges each of the Secured Parties and their respective predecessors, officers,
managers, directors, shareholders, employees, agents, attorneys, representatives,
subsidiaries, and Affiliates (each a “Lender Party”) from any and all Claims of any
nature whatsoever existing on the date hereof, including, without limitation, all Claims for
contribution and indemnity, whether arising at law or in equity, whether liability be direct
or indirect, liquidated or unliquidated, whether absolute or contingent, foreseen or
unforeseen, and whether or not heretofore asserted, which the Borrower may have or claim to
have against any Lender Party in any way related to this Waiver or any other Financing
Documents.

     (h) As of the date hereof: (i) the aggregate outstanding principal amount of (A)
Tranche A Term Loans is $63,100,000, (B) Tranche B Term Loans is $0, and (C) Working Capital
Loans is $0; and (ii) the aggregate undrawn face amount of the Letter of Credit is
$51,452,055. Interest and fees have accrued on the Loans and Letter of Credit as provided
in the Financing Agreement.

[Signatures follow]

4

 

     IN WITNESS WHEREOF, the parties hereto have caused this Waiver to Depositary and Disbursement
Agreement to be duly executed and delivered by their respective officers on the date first written
above.

	 	 	 	 	 
	 	PANDA HEREFORD ETHANOL, L.P., as Borrower

 	 
	 	By:  	PHE I, LLC, its sole general partner
 	 
	 	 	 
	 	By:  	                                                                        /s/ Natasha Ray
 	 
	 	 	Name:  	Natasha Ray 	 
	 	 	Title:  	CFO/Treasurer 	 

5

 

	 	 	 	 	 

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to Depositary and Disbursement
Agreement to be duly executed and delivered by their respective officers on the date first written
above.

	 	 	 	 	 
	 	SOCIÉTÉ GÉNÉRALE, as Administrative Agent, Disbursement Agent and a
Lender

 	 
	 	By:  	/s/ Robert Preminger
 	 
	 	 	Name:  	Robert Preminger 	 
	 	 	Title:  	Director 	 

6

 

	 	 	 	 	 

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to Depositary and Disbursement
Agreement to be duly executed and delivered by their respective officers on the date first written
above.

	 	 	 	 	 
	 	AMMC CLO III, LIMITED, as Lender

 	 
	 	By:  	American Money Management Corp.,

As Collateral Manager
 	 
	 	 	 
	 	By:  	                       /s/ Kenneth J. Bushman
 	 
	 	 	Name:  	Kenneth J. Bushman 	 
	 	 	Title:  	Vice President 	 

7

 

	 	 	 	 	 

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to Depositary and Disbursement
Agreement to be duly executed and delivered by their respective officers on the date first written
above.

	 	 	 	 	 
	 	AMMC CLO IV, LIMITED, as Lender

 	 
	 	By:  	American Money Management Corp.,
 	 
	 	 	As Collateral Manager 	 
	 	 	 
	 	By:  	                       /s/ Kenneth J. Bushman
 	 
	 	 	Name:  	Kenneth J. Bushman 	 
	 	 	Title:  	Vice President 	 

8

 

	 	 	 	 	 

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to Depositary and Disbursement
Agreement to be duly executed and delivered by their respective officers on the date first written
above.

	 	 	 	 	 
	 	AMMC CLO V, LIMITED, as Lender

 	 
	 	By:  	American Money Management Corp.,
 	 
	 	 	As Collateral Manager 	 
	 	 	 
	 	By:  	                       /s/ Kenneth J. Bushman
 	 
	 	 	Name:  	Kenneth J. Bushman 	 
	 	 	Title:  	Vice President 	 

9

 

	 	 	 	 	 

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to Depositary and Disbursement
Agreement to be duly executed and delivered by their respective officers on the date first written
above.

	 	 	 	 	 
	 	AMMC CLO VI, LIMITED, as Lender

 	 
	 	By:  	American Money Management Corp.,
 	 
	 	 	As Collateral Manager 	 
	 	 	 
	 	By:  	                       /s/ Kenneth J. Bushman
 	 
	 	 	Name:  	Kenneth J. Bushman 	 
	 	 	Title:  	Vice President 	 

10

 

	 	 	 	 	 

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to Depositary and Disbursement
Agreement to be duly executed and delivered by their respective officers on the date first written
above.

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as Lender

 	 
	 	By:  	/s/ Heather L. Harper
 	 
	 	 	Name:  	Heather L. Harper 	 
	 	 	Title:  	Vice President 	 

11

 

	 	 	 	 	 

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to Depositary and Disbursement
Agreement to be duly executed and delivered by their respective officers on the date first written
above.

	 	 	 	 	 
	 	BRENTWOOD CLO LTD., as Lender

 	 
	 	By:  	/s/ Michael Pusateri
 	 
	 	 	Name:  	Michael Pusateri 	 
	 	 	Title:  	Chief Operating Officer 	 

12

 

	 	 	 	 	 

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to Depositary and Disbursement
Agreement to be duly executed and delivered by their respective officers on the date first written
above.

	 	 	 	 	 
	 	FIRST TRUST/HIGHLAND CAPITAL FLOATING RATE INCOME FUND, as Lender

 	 
	 	By:  	/s/ M. Jason Blackburn
 	 
	 	 	Name:  	M. Jason Blackburn 	 
	 	 	Title:  	Treasurer 	 

13

 

	 	 	 	 	 

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to Depositary and Disbursement
Agreement to be duly executed and delivered by their respective officers on the date first written
above.

	 	 	 	 	 
	 	GRAND CENTRAL ASSET TRUST, HLD SERIES, 
as Lender

 	 
	 	By:  	/s/ Adams Jacob
 	 
	 	 	Name:  	Adams Jacob 	 
	 	 	Title:  	Attorney-in-Fact 	 

14

 

	 	 	 	 	 

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to Depositary and Disbursement
Agreement to be duly executed and delivered by their respective officers on the date first written
above.

	 	 	 	 	 
	 	GRAYSON CLO, LTD., as Lender

 	 
	 	By:  	/s/ Michael Pusateri
 	 
	 	 	Name:  	Michael Pusateri 	 
	 	 	Title:  	Chief Operating Officer 	 

15

 

	 	 	 	 	 

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to Depositary and Disbursement
Agreement to be duly executed and delivered by their respective officers on the date first written
above.

	 	 	 	 	 
	 	GREAT AMERICAN INSURANCE COMPANY,
 as Lender

 	 
	 	By:  	American Money Management Corp.,
 	 
	 	 	as Portfolio Manager 	 
	 	 	 
	 	By:  	                       /s/ Kenneth J. Bushman
 	 
	 	 	Name:  	Kenneth J. Bushman 	 
	 	 	Title:  	Vice President 	 

16

 

	 	 	 	 	 

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to Depositary and Disbursement
Agreement to be duly executed and delivered by their respective officers on the date first written
above.

	 	 	 	 	 
	 	GREAT AMERICAN LIFE INSURANCE COMPANY, 
as Lender

 	 
	 	By:  	American Money Management Corp.,
 	 
	 	 	as Portfolio Manager 	 
	 	 	 
	 	By:  	                   /s/ Kenneth J. Bushman
 	 
	 	 	Name:  	Kenneth J. Bushman 	 
	 	 	Title:  	Senior Vice President 	 

17

 

	 	 	 	 	 

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to Depositary and Disbursement
Agreement to be duly executed and delivered by their respective officers on the date first written
above.

	 	 	 	 	 
	 	HIGHLAND FLOATING RATE ADVANTAGE FUND, as Lender

 	 
	 	By:  	/s/ M. Jason Blackburn
 	 
	 	 	Name:  	M. Jason Blackburn 	 
	 	 	Title:  	Treasurer 	 

18

 

	 	 	 	 	 

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to Depositary and Disbursement
Agreement to be duly executed and delivered by their respective officers on the date first written
above.

	 	 	 	 	 
	 	HIGHLAND FLOATING RATE FUND, as Lender

 	 
	 	By:  	/s/ M. Jason Blackburn
 	 
	 	 	Name:  	M. Jason Blackburn 	 
	 	 	Title:  	Treasurer 	 

19

 

	 	 	 	 	 

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to Depositary and Disbursement
Agreement to be duly executed and delivered by their respective officers on the date first written
above.

	 	 	 	 	 
	 	KNOX CDO LTD., as Lender

 	 
	 	By  	Highland Capital Management, L.P., As Collateral Manager
 	 
	 	 	 
	 	By:  	     Strand Advisors, Inc., Its General Partner
 	 
	 	 	 
	 	By:  	                   /s/ Michael Pusateri
 	 
	 	 	Name:  	Michael Pusateri 	 
	 	 	Title:  	Chief Operating Officer 	 

20

 

	 	 	 	 	 

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to Depositary and Disbursement
Agreement to be duly executed and delivered by their respective officers on the date first written
above.

	 	 	 	 	 
	 	KFW IPEX-Bank, as Lender

 	 
	 	By:  	/s/ Bellman
 	 
	 	 	Name:  	Bellman 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	     /s/ Krisch
 	 
	 	 	Name:  	Krisch 	 
	 	 	Title:  	 	 

21

 

	 	 	 	 	 

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to Depositary and Disbursement
Agreement to be duly executed and delivered by their respective officers on the date first written
above.

	 	 	 	 	 
	 	LOAN FUNDING VII LLC, as Lender

 	 
	 	By  	Highland Capital Management, L.P., as Collateral Manager
 	 
	 	 	 
	 	By:  	
Strand Advisors, Inc., its General Partner
 	 
	 	 	 
	 	By:  	                   /s/ Michael Pusateri
 	 
	 	 	Name:  	Michael Pusateri 	 
	 	 	Title:  	Chief Operating Officer 	 

22

 

	 	 	 	 	 

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to Depositary and Disbursement
Agreement to be duly executed and delivered by their respective officers on the date first written
above.

	 	 	 	 	 
	 	NEDBANK LIMITED, as Lender

 	 
	 	By:  	/s/ D. McDonnell
 	 
	 	 	Name:  	D. McDonnell 	 
	 	 	Title:  	Authorized Officer 	 
	 
	 	 	 
	 	By:  	                      /s/ P. Swift
 	 
	 	 	Name:  	P. Swift 	 
	 	 	Title:  	Authorized Signatory 	 

23

 

	 	 	 	 	 

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to Depositary and Disbursement
Agreement to be duly executed and delivered by their respective officers on the date first written
above.

	 	 	 	 	 
	 	PIONEER FLOATING RATE TRUST, as Lender

 	 
	 	By:  	/s/ M. Jason Blackburn
 	 
	 	 	Name:  	M. Jason Blackburn 	 
	 	 	Title:  	Treasurer 	 

24

 

	 	 	 	 	 

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to Depositary and Disbursement
Agreement to be duly executed and delivered by their respective officers on the date first written
above.

	 	 	 	 	 
	 	WESTCHESTER CLO, LTD.

 	 
	 	By:  	Highland Capital Management, L.P.,

As Collateral Manager 	 
	 	 	 
	 	By:  	Strand Advisors, Inc., Its General Partner
 	 
	 	 	 
	 	By:  	                   /s/ Michael Pusateri
 	 
	 	 	Name:  	Michael Pusateri 	 
	 	 	Title:  	Chief Operating Officer 	 
	 

25exv10w1

Exhibit 10.1

SPARTECH CORPORATION

SEVERANCE AND NON-COMPETITION POLICY

Policy

It shall be the general practice of Spartech Corporation (the “Company”) to enter into a Severance
and Noncompetition Agreement with each officer employed by the Company whose compensation is
subject to the authority of the Compensation Committee of the Board of Directors. The Severance
and Noncompetition Agreement shall generally be in the form attached hereto as Exhibit A
and incorporated herein by reference; however, with respect to the Chief Executive Officer of the
Company, the Severance and Noncompetition Agreement shall be in the form attached hereto as
Exhibit B, and with respect to any Chief Financial Officer, General Counsel or Executive
Vice President of the Company, the Severance and Noncompetition Agreement shall be in the form
attached hereto as Exhibit C. Subject to the terms of the Compensation Committee Charter,
the Board of Directors delegates to the Compensation Committee full authority to make any
determinations regarding amendments to the terms of the attached Severance and Noncompetition
Agreements or the interpretation of the provisions of this Policy, in its sole discretion, and to
oversee the administration of this Policy.

Amendment

The Board of Directors shall have the unilateral right to amend, waive or cancel this Policy at any
time if it determines in its sole discretion that such action would be in the best interests of the
Corporation and its stockholders.

 

 

EXHIBIT A

SEVERANCE AND NONCOMPETITION AGREEMENT

     THIS SEVERANCE AND NONCOMPETITION AGREEMENT (this “Agreement”) is made by and between SPARTECH
CORPORATION, a Delaware corporation (together with its subsidiaries, the “Company”) and
                                        
(“Employee”)
effective as of the ___ day of                     , 20___.

     In consideration of the terms and conditions hereof, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and
Employee agree as follows:

     1. Severance.

     (a) If Employee’s employment with the Company is terminated by the Company for any reason
other than for Cause, or if Employee’s employment with the Company is terminated by the Company for
any reason other than for Cause within 24 months following a Change in Control, or if Employee
terminates his or her employment with the Company for Good Reason, Employee shall be entitled to
receive as a severance payment to be paid in equal installments over the twelve months following
Employee’s termination, and in accordance with the Company’s normal payroll practices, an aggregate
amount equal to: (i) twelve months’ base salary at the highest rate paid to Employee during the
three years prior to Employee’s termination, plus (ii) the average annual bonus awarded to Employee
for the three fiscal years ended prior to Employee’s termination (or for the period of Employee’s
employment by the Company if less than three years), provided, however, in the event the
termination occurs during the first fiscal year of Employee’s employment and prior to the award of
an annual bonus, the calculation of the bonus portion of the severance payment under this
subsection 1(a)(ii) shall be based on Employee’s target bonus for the fiscal year in which
termination occurs. In addition to the foregoing severance payment, Employee shall be entitled to
receive during the twelve months following Employee’s termination continuing health insurance
benefits at least equal to the benefits received by Employee at the time of termination.

     (b) As used herein:

     “Cause” means, in each case in the reasonable discretion of the Company’s board of directors
(the “Board”): (i) Employee being charged with commission of a crime that constitutes a felony
(provided that if following Employee’s termination the charges are dropped or Employee is acquitted
then Employee shall be entitled to the severance payment); (ii) acts of Employee which constitute
willful fraud or dishonesty on the part of Employee in connection with his or her duties; (iii)
Employee willfully engaging in conduct materially injurious to the Company or gross misconduct,
including but not limited to the willful or grossly negligent failure or refusal of Employee to
comply with the lawful instruction of the Board or Employee’s supervisor, after a written demand
for compliance is delivered to Employee by the Board or Employee’s supervisor which specifically
identifies the manner in which the Board or Employee’s supervisor believes that Employee has
violated this provision; (iv) Employee’s failure, whether or not intentional, to fully comply with:
(a) the Company’s Code of Business Conduct and Ethics for Directors, Officers and Employees, (b)
the Company’s Code of Ethics for Chief Executive Officer and Senior Financial Officers; or (c) the
Company’s Statement of Policy Regarding Securities Trades by Company Personnel; or (v) Employee’s
failure to fully cooperate in good faith with any internal, governmental or regulatory
investigation involving or in any way related to the Company or its operations. Any act or failure
to act based upon authority given pursuant to a resolution duly adopted by the Board or based on
the advice of a senior officer or counsel for the Company shall be conclusively presumed to be
done, or omitted to be done, by Employee in good faith and in the best interests of the Company.

     “Change in Control” means the successful consummation of a transaction resulting in a change
in the ownership or effective control of the Company or ownership of a substantial portion of the
assets of the Company within the meaning of Section 409A(a)(2)(C)(v) of the Internal Revenue Code
of 1986, as amended, or any successor statute (“Code”).

     “Good Reason” means any of the following: (i) one or more reductions of Employee’s base salary
amounting to 10% or more from Employee’s highest previous base salary, provided that any reduction
which is generally consistent with across-the-board reductions in pay of the Company as a whole
shall not be counted for this purpose unless a Change in Control has occurred; (ii) the Company’s
requiring Employee to be based at any office or location greater than 50 miles from the office of
the Company at which Employee is

 

 

employed as of the date of this Agreement; (iii) after a Change in Control, a relocation of
the office of the Company at which Employee is employed as of the date of this Agreement more than
50 miles from its present location; or (iv) one or more other actions by the Company which
collectively amount to a constructive discharge of Employee.

     (c) If Employee is a “specified employee” (within the meaning of Code Section
409A(a)(2)(B)(i)) of the Company at the time of his or her termination of employment with the
Company and if the separation payments under Section (a) are on account of his or her “involuntary
separation from service” (as defined in Treasury Regulation Section 1.409A-1(n), or a successor
regulation), Employee shall receive payments during the six (6) month period immediately following
the date of such termination as otherwise provided under Section (a) for such six month period
except that the total amount of such payments shall not exceed the lesser of the amount specified
under (i) Treasury Regulation Section 1.409A-1(b)(9)(iii)(A)(1) or (ii) Treasury Regulation Section
1.409A-1(b)(9)(iii)(A)(2) or successor regulations. To the extent the amounts otherwise payable
during such six (6) month period under Section (a) exceed the amounts payable under the immediately
preceding sentence, such excess amounts, together with interest on such amounts from the date of
Employee’s termination of employment with the Company to the date of payment, shall be paid in a
single sum on the first regular payroll date of the Company immediately following the six (6) month
anniversary of the date of such termination. If the Company reasonably determines that such
termination is not an “involuntary separation from service” (as defined in Treasury Regulation
Section 1.409A-1(n), or a successor regulation), amounts otherwise payable during such six (6)
month period immediately following the date of Employee’s termination under Section (a), together
with interest on such amounts from the date of Employee’s termination of employment with the
Company to the date of payment, shall be paid in a single sum on the first payroll date of the
Company immediately following the six (6) month anniversary of such termination. For purposes of
this Section (c), “interest” means the prime rate, as announced from time to time by the Company’s
primary commercial bank during the six month period described above, plus two percentage points,
compounded annually.

     2. Nondisclosure. During the period of Employee’s employment with the Company, and
after the termination thereof for any reason, Employee agrees to use his or her best efforts to
maintain and protect the secrecy of the Confidential Information and not to directly or indirectly
undertake or attempt to undertake: (i) any disclosure of any Confidential Information to any other
person or entity; (ii) to use any Confidential Information for Employee’s own purposes; (iii) to
make any copies or reproductions of any Confidential Information; (iv) to authorize or permit any
other person or entity to use, copy, disclose, publish or distribute any Confidential Information;
or (v) any activity the Company is prohibited from undertaking or attempting to undertake by any of
its present or future clients, customers, suppliers, vendors, consultants, agents or contractors.
As used herein, “Confidential Information” means any knowledge, information or property relating
to, or used or possessed by, the Company, and includes, without limitation, the following: trade
secrets; manufacturing or production know-how, methods and processes, patents, copyrights, software
(including, without limitation, all programs, specifications, applications, routines, subroutines,
techniques and ideas for formulas); concepts, data, drawings, designs and documents; names of
clients, customers, employees, agents, contractors, and suppliers; marketing information; financial
information and other business records; and all copies of any of the foregoing, including notes,
extracts, memoranda prepared or directed to be prepared by Employee based on any Confidential
Information. Employee agrees that all information possessed by Employee, or disclosed to Employee,
or to which Employee obtains access during the course of Employee’s employment with the Company
shall be presumed to be Confidential Information under the terms of this Agreement. Confidential
Information shall not include any information which is publicly available or which is generally
known to persons employed in the plastics processing business. Upon termination of Employee’s
employment with the Company for any reason, Employee agrees not to retain or remove from the
Company’s premises any Confidential Information whatsoever, and to surrender the same to the
Company, wherever it is located, immediately upon termination of Employee’s employment.

     3. Noncompetition/Nonsolicitation. Employee agrees that, during the term of
Employee’s employment with the Company and for a period of one (1) year after the termination of
Employee’s employment with the Company (whether such termination is with or without Cause or Good
Reason or results from Employee’s resignation) Employee shall not, directly or indirectly, in any
market in which the Company then is engaged in business activities (the “Geographic Area”): (i)
engage in, consult with, be employed by or be connected with any business or activity which
directly or indirectly competes with the

 

 

Company’s business (a “Competing Business”), (ii) canvass, solicit or accept any business from
any of the Company’s current or former clients, (iii) own any interest in any Competing Business
(provided, however, Employee may own up to 1% of the outstanding equity interests of any publicly
traded Competing Business); (iv) assist others to open or operate any Competing Business; (v)
solicit, recommend or induce any employee of the Company to terminate his or her employment with
the Company; or (vi) solicit, recommend or induce any customers, suppliers or any other person or
entity which has a business relationship with the Company to discontinue, reduce or modify such
relationship.. Employee agrees and acknowledges that the Geographic Area is reasonable in scope
and that the one (1) year period is reasonable in length. Employee has agreed to the foregoing
noncompetition agreement because: (a) Employee recognizes that the Company has a legitimate
interest in protecting the confidentiality of its business secrets (including the Confidential
Information), (b) Employee agrees that such noncompetition agreement is not oppressive to Employee
nor injurious to the public, and (c) the Company has provided specialized and valuable training and
information to Employee.

     4. Injunction. Because the award of monetary damages would be an inadequate remedy,
in the event of a breach or threatened breach by Employee of any of the provisions of this
Agreement, the Company shall be entitled to an injunction restraining Employee from undertaking any
such breach or threatened breach. Nothing herein shall be construed as prohibiting the Company
from pursuing any other remedies for such breach or threatened breach, including the recovery of
damages from Employee.

     5. Amendment. No amendment, whether express or implied, to this Agreement shall be
effective unless it is in writing and signed by both parties hereto.

     6. Waiver. No consent or waiver, express or implied, by the Company to or of any
breach or default by Employee in the performance of his or her agreements hereunder shall operate
as a consent to or waiver of any other breach or default in the performance of the same or any
other obligations of Employee hereunder. The Company’s failure to complain of any such breach or
default shall not constitute a waiver by the Company of its rights hereunder, irrespective of how
long such failure continues.

     7. Governing Law; Venue. This Agreement shall be governed by, and construed under,
the laws of the State of Delaware. Each of the parties submits to the jurisdiction of the state
court sitting in St. Louis County, Missouri or federal court sitting in St. Louis, Missouri, in any
action or proceeding arising out of or relating to this Agreement and agrees that all such claims
may be heard and determined in any such court.

     8. Severability. The invalidity or unenforceability of any provision hereof shall in
no way affect the validity or enforceability of any other provision. In addition, should any time
or area restriction contained herein be found by a court to be unreasonable, such restriction shall
nevertheless remain as to the time or area such court finds reasonable, and as so amended, shall be
enforced.

     9. Miscellaneous. This Agreement shall apply to all periods when Employee is employed
by the Company irrespective of whether or not this Agreement is re-executed at the beginning of
each such period. This Agreement is binding upon and shall inure to the benefit of the parties’
heirs, representatives, affiliates, successors or assigns. The use of any gender shall include all
other genders.

	 	 	 	 	 	 	 	 	 	 	 
	SPARTECH
CORPORATION
	 	 	 	EMPLOYEE	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

 

 

EXHIBIT B

SEVERANCE AND NONCOMPETITION AGREEMENT

     THIS SEVERANCE AND NONCOMPETITION AGREEMENT (this “Agreement”) is made by and between SPARTECH
CORPORATION, a Delaware corporation (together with its subsidiaries, the “Company”) and
                                        
(“Employee”) effective as of the ___ day of                     , 20___.

     In consideration of the terms and conditions hereof, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and
Employee agree as follows:

     1. Severance.

     (a) If Employee’s employment with the Company is terminated by the Company for any reason
other than for Cause, or if Employee’s employment with the Company is terminated by the Company for
any reason other than for Cause within 24 months following a Change in Control, or if Employee
terminates his or her employment with the Company for Good Reason, Employee shall be entitled to
receive as a severance payment to be paid in equal installments over the twenty-four months
following Employee’s termination, and in accordance with the Company’s normal payroll practices, an
aggregate amount equal to: (i) twenty-four months’ base salary (or thirty months’ base salary, in
the event the termination results from a Change in Control) at the highest rate paid to Employee
during the three years prior to Employee’s termination, plus (ii) two times the average annual
bonus awarded to Employee for the three fiscal years ended prior to Employee’s termination (or for
the period of Employee’s employment by the Company if less than three years), such bonus to be
multiplied by 2.5 in the event the termination results from a Change in Control; provided, however,
in the event the termination occurs during the first fiscal year of Employee’s employment and prior
to the award of an annual bonus, the calculation of the bonus portion of the severance payment
under this subsection 1(a)(ii) shall be based on Employee’s target bonus for the fiscal year in
which termination occurs. In addition to the foregoing severance payment, Employee shall be
entitled to receive during the twenty-four months following Employee’s termination (or thirty
months, in the event the termination results from a Change in Control) continuing health insurance
benefits at least equal to the benefits received by Employee at the time of termination.

     (b) As used herein:

     “Cause” means, in each case in the reasonable discretion of the Company’s board of directors
(the “Board”): (i) Employee being charged with commission of a crime that constitutes a felony
(provided that if following Employee’s termination the charges are dropped or Employee is acquitted
then Employee shall be entitled to the severance payment); (ii) acts of Employee which constitute
willful fraud or dishonesty on the part of Employee in connection with his or her duties; (iii)
Employee willfully engaging in conduct materially injurious to the Company or gross misconduct,
including but not limited to the willful or grossly negligent failure or refusal of Employee to
comply with the lawful instruction of the Board, after a written demand for compliance is delivered
to Employee by the Board which specifically identifies the manner in which the Board believes that
Employee has violated this provision; (iv) Employee’s failure, whether or not intentional, to fully
comply with: (a) the Company’s Code of Business Conduct and Ethics for Directors, Officers and
Employees, (b) the Company’s Code of Ethics for Chief Executive Officer and Senior Financial
Officers; or (c) the Company’s Statement of Policy Regarding Securities Trades by Company
Personnel; or (v) Employee’s failure to fully cooperate in good faith with any internal,
governmental or regulatory investigation involving or in any way related to the Company or its
operations. Any act or failure to act based upon authority given pursuant to a resolution duly
adopted by the Board or based on the advice of a senior officer or counsel for the Company shall be
conclusively presumed to be done, or omitted to be done, by Employee in good faith and in the best
interests of the Company.

     “Change in Control” means the successful consummation of a transaction resulting in a change
in the ownership or effective control of the Company or ownership of a substantial portion of the
assets of the Company within the meaning of Section 409A(a)(2)(C)(v) of the Internal Revenue Code
of 1986, as amended, or any successor statute (“Code”).

     “Good Reason” means any of the following: (i) one or more reductions of Employee’s base salary
amounting to 10% or more from Employee’s highest previous base salary, provided that any reduction
which is generally consistent with across-the-board reductions in pay of the Company as a whole
shall not be

 

 

counted for this purpose unless a Change in Control has occurred; (ii) the Company’s requiring
Employee to be based at any office or location greater than 50 miles from the principal executive
offices of the Company; (iii) after a Change in Control, a relocation of the principal offices of
the Company more than 50 miles from its present location; or (iv) one or more other actions by the
Company which collectively amount to a constructive discharge of Employee.

     (c) If Employee is a “specified employee” (within the meaning of Code Section
409A(a)(2)(B)(i)) of the Company at the time of his or her termination of employment with the
Company and if the separation payments under Section (a) are on account of his or her “involuntary
separation from service” (as defined in Treasury Regulation Section 1.409A-1(n), or a successor
regulation), Employee shall receive payments during the six (6) month period immediately following
the date of such termination as otherwise provided under Section (a) for such six month period
except that the total amount of such payments shall not exceed the lesser of the amount specified
under (i) Treasury Regulation Section 1.409A-1(b)(9)(iii)(A)(1) or (ii) Treasury Regulation Section
1.409A-1(b)(9)(iii)(A)(2) or successor regulations. To the extent the amounts otherwise payable
during such six (6) month period under Section (a) exceed the amounts payable under the immediately
preceding sentence, such excess amounts, together with interest on such amounts from the date of
Employee’s termination of employment with the Company to the date of payment, shall be paid in a
single sum on the first regular payroll date of the Company immediately following the six (6) month
anniversary of the date of such termination. If the Company reasonably determines that such
termination is not an “involuntary separation from service” (as defined in Treasury Regulation
Section 1.409A-1(n), or a successor regulation), amounts otherwise payable during such six (6)
month period immediately following the date of Employee’s termination under Section (a), together
with interest on such amounts from the date of Employee’s termination of employment with the
Company to the date of payment, shall be paid in a single sum on the first payroll date of the
Company immediately following the six (6) month anniversary of such termination. For purposes of
this Section (c), “interest” means the prime rate, as announced from time to time by the Company’s
primary commercial bank during the six month period described above, plus two percentage points,
compounded annually.

     2. Nondisclosure. During the period of Employee’s employment with the Company, and
after the termination thereof for any reason, Employee agrees to use his or her best efforts to
maintain and protect the secrecy of the Confidential Information and not to directly or indirectly
undertake or attempt to undertake: (i) any disclosure of any Confidential Information to any other
person or entity; (ii) to use any Confidential Information for Employee’s own purposes; (iii) to
make any copies or reproductions of any Confidential Information; (iv) to authorize or permit any
other person or entity to use, copy, disclose, publish or distribute any Confidential Information;
or (v) any activity the Company is prohibited from undertaking or attempting to undertake by any of
its present or future clients, customers, suppliers, vendors, consultants, agents or contractors.
As used herein, “Confidential Information” means any knowledge, information or property relating
to, or used or possessed by, the Company, and includes, without limitation, the following: trade
secrets; manufacturing or production know-how, methods and processes, patents, copyrights, software
(including, without limitation, all programs, specifications, applications, routines, subroutines,
techniques and ideas for formulas); concepts, data, drawings, designs and documents; names of
clients, customers, employees, agents, contractors, and suppliers; marketing information; financial
information and other business records; and all copies of any of the foregoing, including notes,
extracts, memoranda prepared or directed to be prepared by Employee based on any Confidential
Information. Employee agrees that all information possessed by Employee, or disclosed to Employee,
or to which Employee obtains access during the course of Employee’s employment with the Company
shall be presumed to be Confidential Information under the terms of this Agreement. Confidential
Information shall not include any information which is publicly available or which is generally
known to persons employed in the plastics processing business. Upon termination of Employee’s
employment with the Company for any reason, Employee agrees not to retain or remove from the
Company’s premises any Confidential Information whatsoever, and to surrender the same to the
Company, wherever it is located, immediately upon termination of Employee’s employment.

     3. Noncompetition/Nonsolicitation. Employee agrees that, during the term of
Employee’s employment with the Company and for a period of one (1) year after the termination of
Employee’s employment with the Company (whether such termination is with or without Cause or Good
Reason or results from Employee’s resignation) Employee shall not, directly or indirectly, in any
market in which the Company then is engaged in business activities (the “Geographic Area”): (i)
engage in, consult with, be

 

 

employed by or be connected with any business or activity which directly or indirectly
competes with the Company’s business (a “Competing Business”), (ii) canvass, solicit or accept any
business from any of the Company’s current or former clients, (iii) own any interest in any
Competing Business (provided, however, Employee may own up to 1% of the outstanding equity
interests of any publicly traded Competing Business); (iv) assist others to open or operate any
Competing Business; (v) solicit, recommend or induce any employee of the Company to terminate his
or her employment with the Company; or (vi) solicit, recommend or induce any customers, suppliers
or any other person or entity which has a business relationship with the Company to discontinue,
reduce or modify such relationship.. Employee agrees and acknowledges that the Geographic Area is
reasonable in scope and that the one (1) year period is reasonable in length. Employee has agreed
to the foregoing noncompetition agreement because: (a) Employee recognizes that the Company has a
legitimate interest in protecting the confidentiality of its business secrets (including the
Confidential Information), (b) Employee agrees that such noncompetition agreement is not oppressive
to Employee nor injurious to the public, and (c) the Company has provided specialized and valuable
training and information to Employee.

     4. Injunction. Because the award of monetary damages would be an inadequate remedy,
in the event of a breach or threatened breach by Employee of any of the provisions of this
Agreement, the Company shall be entitled to an injunction restraining Employee from undertaking any
such breach or threatened breach. Nothing herein shall be construed as prohibiting the Company
from pursuing any other remedies for such breach or threatened breach, including the recovery of
damages from Employee.

     5. Amendment. No amendment, whether express or implied, to this Agreement shall be
effective unless it is in writing and signed by both parties hereto.

     6. Waiver. No consent or waiver, express or implied, by the Company to or of any
breach or default by Employee in the performance of his or her agreements hereunder shall operate
as a consent to or waiver of any other breach or default in the performance of the same or any
other obligations of Employee hereunder. The Company’s failure to complain of any such breach or
default shall not constitute a waiver by the Company of its rights hereunder, irrespective of how
long such failure continues.

     7. Governing Law; Venue. This Agreement shall be governed by, and construed under,
the laws of the State of Delaware. Each of the parties submits to the jurisdiction of the state
court sitting in St. Louis County, Missouri or federal court sitting in St. Louis, Missouri, in any
action or proceeding arising out of or relating to this Agreement and agrees that all such claims
may be heard and determined in any such court.

     8. Severability. The invalidity or unenforceability of any provision hereof shall in
no way affect the validity or enforceability of any other provision. In addition, should any time
or area restriction contained herein be found by a court to be unreasonable, such restriction shall
nevertheless remain as to the time or area such court finds reasonable, and as so amended, shall be
enforced.

     9. Miscellaneous. This Agreement shall apply to all periods when Employee is employed
by the Company irrespective of whether or not this Agreement is re-executed at the beginning of
each such period. This Agreement is binding upon and shall inure to the benefit of the parties’
heirs, representatives, affiliates, successors or assigns. The use of any gender shall include all
other genders.

	 	 	 	 	 	 	 	 	 	 	 
	SPARTECH
CORPORATION
	 	 	 	EMPLOYEE	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 

 

 

EXHIBIT C

SEVERANCE AND NONCOMPETITION AGREEMENT

     THIS SEVERANCE AND NONCOMPETITION AGREEMENT (this “Agreement”) is made by and between SPARTECH
CORPORATION, a Delaware corporation (together with its subsidiaries, the “Company”) and
                                        
(“Employee”) effective as of the ___ day of                     , 20___.

     In consideration of the terms and conditions hereof, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and
Employee agree as follows:

     1. Severance.

     (a) If Employee’s employment with the Company is terminated by the Company for any reason
other than for Cause, or if Employee’s employment with the Company is terminated by the Company for
any reason other than for Cause within 24 months following a Change in Control, or if Employee
terminates his or her employment with the Company for Good Reason, Employee shall be entitled to
receive as a severance payment to be paid in equal installments over the twelve months following
Employee’s termination, and in accordance with the Company’s normal payroll practices, an aggregate
amount equal to: (i) twelve months’ base salary (or eighteen months’ base salary, in the event the
termination results from a Change in Control) at the highest rate paid to Employee during the three
years prior to Employee’s termination, plus (ii) the average annual bonus awarded to Employee for
the three fiscal years ended prior to Employee’s termination (or for the period of Employee’s
employment by the Company if less than three years); provided, however, in the event the
termination occurs during the first fiscal year of Employee’s employment and prior to the award of
an annual bonus, the calculation of the bonus portion of the severance payment under this
subsection 1(a)(ii) shall be based on Employee’s target bonus for the fiscal year in which
termination occurs. In addition to the foregoing severance payment, Employee shall be entitled to
receive during the twelve months following Employee’s termination (or eighteen months, in the event
the termination results from a Change in Control) continuing health insurance benefits at least
equal to the benefits received by Employee at the time of termination.

     (b) As used herein:

     “Cause” means, in each case in the reasonable discretion of the Company’s board of directors
(the “Board”): (i) Employee being charged with commission of a crime that constitutes a felony
(provided that if following Employee’s termination the charges are dropped or Employee is acquitted
then Employee shall be entitled to the severance payment); (ii) acts of Employee which constitute
willful fraud or dishonesty on the part of Employee in connection with his or her duties; (iii)
Employee willfully engaging in conduct materially injurious to the Company or gross misconduct,
including but not limited to the willful or grossly negligent failure or refusal of Employee to
comply with the lawful instruction of the Board or Employee’s supervisor, after a written demand
for compliance is delivered to Employee by the Board or Employee’s supervisor which specifically
identifies the manner in which the Board or Employee’s supervisor believes that Employee has
violated this provision; (iv) Employee’s failure, whether or not intentional, to fully comply with:
(a) the Company’s Code of Business Conduct and Ethics for Directors, Officers and Employees, (b)
the Company’s Code of Ethics for Chief Executive Officer and Senior Financial Officers; or (c) the
Company’s Statement of Policy Regarding Securities Trades by Company Personnel; or (v) Employee’s
failure to fully cooperate in good faith with any internal, governmental or regulatory
investigation involving or in any way related to the Company or its operations. Any act or failure
to act based upon authority given pursuant to a resolution duly adopted by the Board or based on
the advice of a senior officer or counsel for the Company shall be conclusively presumed to be
done, or omitted to be done, by Employee in good faith and in the best interests of the Company.

     “Change in Control” means the successful consummation of a transaction resulting in a change
in the ownership or effective control of the Company or ownership of a substantial portion of the
assets of the Company within the meaning of Section 409A(a)(2)(C)(v) of the Internal Revenue Code
of 1986, as amended, or any successor statute (“Code”).

     “Good Reason” means any of the following: (i) one or more reductions of Employee’s base salary
amounting to 10% or more from Employee’s highest previous base salary, provided that any reduction
which is generally consistent with across-the-board reductions in pay of the Company as a whole
shall not be

 

 

counted for this purpose unless a Change in Control has occurred; (ii) the Company’s requiring
Employee to be based at any office or location greater than 50 miles from the office of the Company
at which Employee is employed as of the date of this Agreement; (iii) after a Change in Control, a
relocation of the office of the Company at which Employee is employed as of the date of this
Agreement more than 50 miles from its present location; or (iv) one or more other actions by the
Company which collectively amount to a constructive discharge of Employee.

     (c) If Employee is a “specified employee” (within the meaning of Code Section
409A(a)(2)(B)(i)) of the Company at the time of his or her termination of employment with the
Company and if the separation payments under Section (a) are on account of his or her “involuntary
separation from service” (as defined in Treasury Regulation Section 1.409A-1(n), or a successor
regulation), Employee shall receive payments during the six (6) month period immediately following
the date of such termination as otherwise provided under Section (a) for such six month period
except that the total amount of such payments shall not exceed the lesser of the amount specified
under (i) Treasury Regulation Section 1.409A-1(b)(9)(iii)(A)(1) or (ii) Treasury Regulation Section
1.409A-1(b)(9)(iii)(A)(2) or successor regulations. To the extent the amounts otherwise payable
during such six (6) month period under Section (a) exceed the amounts payable under the immediately
preceding sentence, such excess amounts, together with interest on such amounts from the date of
Employee’s termination of employment with the Company to the date of payment, shall be paid in a
single sum on the first regular payroll date of the Company immediately following the six (6) month
anniversary of the date of such termination. If the Company reasonably determines that such
termination is not an “involuntary separation from service” (as defined in Treasury Regulation
Section 1.409A-1(n), or a successor regulation), amounts otherwise payable during such six (6)
month period immediately following the date of Employee’s termination under Section (a), together
with interest on such amounts from the date of Employee’s termination of employment with the
Company to the date of payment, shall be paid in a single sum on the first payroll date of the
Company immediately following the six (6) month anniversary of such termination. For purposes of
this Section (c), “interest” means the prime rate, as announced from time to time by the Company’s
primary commercial bank during the six month period described above, plus two percentage points,
compounded annually.

     2. Nondisclosure. During the period of Employee’s employment with the Company, and
after the termination thereof for any reason, Employee agrees to use his or her best efforts to
maintain and protect the secrecy of the Confidential Information and not to directly or indirectly
undertake or attempt to undertake: (i) any disclosure of any Confidential Information to any other
person or entity; (ii) to use any Confidential Information for Employee’s own purposes; (iii) to
make any copies or reproductions of any Confidential Information; (iv) to authorize or permit any
other person or entity to use, copy, disclose, publish or distribute any Confidential Information;
or (v) any activity the Company is prohibited from undertaking or attempting to undertake by any of
its present or future clients, customers, suppliers, vendors, consultants, agents or contractors.
As used herein, “Confidential Information” means any knowledge, information or property relating
to, or used or possessed by, the Company, and includes, without limitation, the following: trade
secrets; manufacturing or production know-how, methods and processes, patents, copyrights, software
(including, without limitation, all programs, specifications, applications, routines, subroutines,
techniques and ideas for formulas); concepts, data, drawings, designs and documents; names of
clients, customers, employees, agents, contractors, and suppliers; marketing information; financial
information and other business records; and all copies of any of the foregoing, including notes,
extracts, memoranda prepared or directed to be prepared by Employee based on any Confidential
Information. Employee agrees that all information possessed by Employee, or disclosed to Employee,
or to which Employee obtains access during the course of Employee’s employment with the Company
shall be presumed to be Confidential Information under the terms of this Agreement. Confidential
Information shall not include any information which is publicly available or which is generally
known to persons employed in the plastics processing business. Upon termination of Employee’s
employment with the Company for any reason, Employee agrees not to retain or remove from the
Company’s premises any Confidential Information whatsoever, and to surrender the same to the
Company, wherever it is located, immediately upon termination of Employee’s employment.

     3. Noncompetition/Nonsolicitation. Employee agrees that, during the term of
Employee’s employment with the Company and for a period of one (1) year after the termination of
Employee’s employment with the Company (whether such termination is with or without Cause or Good
Reason or results from Employee’s resignation) Employee shall not, directly or indirectly, in any
market in which the

 

 

Company then is engaged in business activities (the “Geographic Area”): (i) engage in, consult
with, be employed by or be connected with any business or activity which directly or indirectly
competes with the Company’s business (a “Competing Business”), (ii) canvass, solicit or accept any
business from any of the Company’s current or former clients, (iii) own any interest in any
Competing Business (provided, however, Employee may own up to 1% of the outstanding equity
interests of any publicly traded Competing Business); (iv) assist others to open or operate any
Competing Business; (v) solicit, recommend or induce any employee of the Company to terminate his
or her employment with the Company; or (vi) solicit, recommend or induce any customers, suppliers
or any other person or entity which has a business relationship with the Company to discontinue,
reduce or modify such relationship.. Employee agrees and acknowledges that the Geographic Area is
reasonable in scope and that the one (1) year period is reasonable in length. Employee has agreed
to the foregoing noncompetition agreement because: (a) Employee recognizes that the Company has a
legitimate interest in protecting the confidentiality of its business secrets (including the
Confidential Information), (b) Employee agrees that such noncompetition agreement is not oppressive
to Employee nor injurious to the public, and (c) the Company has provided specialized and valuable
training and information to Employee.

     4. Injunction. Because the award of monetary damages would be an inadequate remedy,
in the event of a breach or threatened breach by Employee of any of the provisions of this
Agreement, the Company shall be entitled to an injunction restraining Employee from undertaking any
such breach or threatened breach. Nothing herein shall be construed as prohibiting the Company
from pursuing any other remedies for such breach or threatened breach, including the recovery of
damages from Employee.

     5. Amendment. No amendment, whether express or implied, to this Agreement shall be
effective unless it is in writing and signed by both parties hereto.

     6. Waiver. No consent or waiver, express or implied, by the Company to or of any
breach or default by Employee in the performance of his or her agreements hereunder shall operate
as a consent to or waiver of any other breach or default in the performance of the same or any
other obligations of Employee hereunder. The Company’s failure to complain of any such breach or
default shall not constitute a waiver by the Company of its rights hereunder, irrespective of how
long such failure continues.

     7. Governing Law; Venue. This Agreement shall be governed by, and construed under,
the laws of the State of Delaware. Each of the parties submits to the jurisdiction of the state
court sitting in St. Louis County, Missouri or federal court sitting in St. Louis, Missouri, in any
action or proceeding arising out of or relating to this Agreement and agrees that all such claims
may be heard and determined in any such court.

     8. Severability. The invalidity or unenforceability of any provision hereof shall in
no way affect the validity or enforceability of any other provision. In addition, should any time
or area restriction contained herein be found by a court to be unreasonable, such restriction shall
nevertheless remain as to the time or area such court finds reasonable, and as so amended, shall be
enforced.

     9. Miscellaneous. This Agreement shall apply to all periods when Employee is employed
by the Company irrespective of whether or not this Agreement is re-executed at the beginning of
each such period. This Agreement is binding upon and shall inure to the benefit of the parties’
heirs, representatives, affiliates, successors or assigns. The use of any gender shall include all
other genders.

	 	 	 	 	 	 	 	 	 	 	 
	SPARTECH
CORPORATION
	 	 	 	EMPLOYEE	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]