Document:

EX-10.1 Equity Incentive Plan

 

Exhibit 10.1

A. Schulman, Inc. 2002 Equity Incentive Plan

Restricted Stock Unit Award Agreement

 

Congratulations on your selection as a Participant in the A. Schulman, Inc. 2002 Equity
Incentive Plan (the “Plan”). This Award Agreement is between you, as the undersigned Participant
in the Plan, and A. Schulman, Inc., a Delaware corporation (the “Company”). This Award Agreement
and the Plan together govern your rights under the Plan and set forth all of the conditions and
limitations affecting such rights. A copy of the Plan is attached to this Award Agreement.

Capitalized terms used in this Award Agreement shall have the meanings ascribed to them in the Plan
or in this Award Agreement. If there is any inconsistency between the terms of this Award Agreement
and the terms of the Plan, the Plan’s terms shall supersede and replace the conflicting terms of
this Award Agreement.

OVERVIEW OF YOUR RESTRICTED STOCK UNITS

	 	 	 	 	 
	1.	 	Name:                     
                                     
                  
     .
	 
	 	 	 	 
	2.	 	Number of Units
Granted:                                              .
	 
	 	 	 	 
	3.	 	Date of Grant:      (“Date of Grant”).
	 
	 	 	 	 
	4.	 	Vesting Period: The Restricted Stock Units shall vest in accordance with the following schedule:
	 
	 	 	 	 
	

	 	(a)
	 	One hundred percent (100%) of the Restricted Stock Units will vest on the fourth
(4th) anniversary of the Date of Grant provided you have continued in the
employment of the Company, its Affiliates, and/or its Subsidiaries through such date (this
time period is referred to herein as the “Vesting Period”).
	 
	 	 	 	 
	

	 	(b)
	 	All restrictions shall lapse and the Restricted Stock Units shall become one hundred
percent (100%) vested upon your termination of employment due to death, or Disability,
provided you have continued in the employment of the Company, its Affiliates, and/or its
Subsidiaries through such event.
	 
	 	 	 	 
	

	 	(c)
	 	If you terminate employment due to Retirement, the Restricted Stock Units will vest on
a prorated basis, with the prorated amount determined by taking the number of Units granted
to you multiplied by a fraction, the numerator of which is the number of completed months
that have elapsed since the Date of Grant through your effective date of Retirement, and
the denominator of which is forty-eight (48).
	 
	 	 	 	 
	 	 	If you take a leave of absence for medical reasons (as determined in accordance with the
Company’s disability plans—meaning you qualify for disability benefits/salary continuation
benefits), you will continue to vest in your Award. If you take a leave of absence for
nonmedical

 

 

	 	 	 	 	 
	 	 	reasons (except for military service as described in the next sentence of this paragraph) and
you are on leave for more than three (3) months (excluding allowable time off which includes,
but is not limited to, holidays, sick days, and vacation) during the Vesting Period, you will
forfeit the unvested Units awarded to you under this Award Agreement; provided, however, if the
law that you are subject to allows you to take a leave of absence for nonmedical reasons for a
period in excess of three (3) months, and the law requires the Company to continue to provide
benefits under all Company benefit plans, the requirements of such law shall override this
general provision. Notwithstanding anything herein to the contrary, if you take a leave of
absence for any service, voluntary or involuntary, in the armed forces, you will continue to
vest in your Award.
	 
	 	 	 	 
	5.	 	Termination of Employment for Other Reasons: In the event that you terminate employment with
the Company, its Affiliates, and/or its Subsidiaries for any reason other than those reasons
set forth in Paragraphs 3(b) and 3(c), or in the event that the Company, its Affiliates,
and/or its Subsidiaries terminates your employment for any reason or no reason, all of the
unvested Units you hold at the time of your employment termination shall be cancelled without
payment by the Company of any consideration for the Units.
	 
	 	 	 	 
	6.	 	Voting Rights and Dividends: Restricted Stock Units are not shares of stock and do not
entitle you to any rights (including voting rights) of a stockholder of the Company, provided,
however, that your Restricted Stock Unit account shall be credited for all dividends and other
distributions paid with respect to shares of common stock of the Company. The amount of
dividends credited to your Restricted Stock Unit account shall be equal to (i) the dividend
paid with respect to one share of common stock of the Company multiplied by (ii) the number of
Restricted Stock Units that have been previously awarded to you and that have not yet vested.
No payment shall be made to you in respect of dividends and/or distributions credited with
respect to any of your Units until and unless the Units vest as provided in Paragraph 7
hereof.
	 
	 	 	 	 
	7.	 	Change in Control: In the event of a Change in Control, all Restricted Stock Units shall
immediately vest.
	 
	 	 	 	 
	8.	 	Payment: At the time your Restricted Stock Units vest, the Company (or applicable Affiliate
or Subsidiary) shall pay you an amount equal to (a) (i) the closing price of the Company’s
common stock on the date of vesting multiplied by (ii) the number of Restricted Stock Units
that vest, plus (b) any dividends credited to your Restricted Stock Unit account pursuant to
Paragraph 5 hereof.
	 
	 	 	 	 
	9.	 	Nontransferability: Restricted Stock Units awarded pursuant to this Award Agreement may not
be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated (“Transfer”).
If any Transfer, whether voluntary or involuntary, of Restricted Stock Units is made, or if
any attachment, execution, garnishment, or lien shall be issued against or placed upon the
Restricted Stock Units, your right to any payment with respect to such Units shall be
immediately forfeited, and this Award Agreement shall lapse.
	 
	 	 	 	 
	10.	 	Requirements of Law: The granting of Restricted Stock Units under the Plan shall be subject
to all applicable laws, rules, and regulations, and to such approvals by any governmental
agencies, national securities exchanges or automated quotation systems as may be required.
You will take all steps necessary to comply with all applicable federal and state securities
laws in exercising your rights under this Award Agreement.

 

 

	 	 	 	 	 
	11.	 	Tax Withholding: The Company shall deduct or withhold from any payment due upon the vesting
of a Restricted Stock Unit an amount sufficient to satisfy federal, state, and local taxes,
domestic or foreign, required by law or regulation to be withheld with respect to such
payment.
	 
	 	 	 	 
	12.	 	Administration: This Award Agreement and your rights hereunder are subject to all the terms
and conditions of the Plan, as the same may be amended from time to time, as well as to such
rules and regulations as the Compensation Committee of the Board of Directors (the
“Committee”) may adopt for administration of the Plan. It is expressly understood that the
Committee is authorized to administer, construe, and make all determinations necessary or
appropriate to the administration of the Plan and this Award Agreement, all of which shall be
binding upon you, the Participant.
	 
	 	 	 	 
	13.	 	Continuation of Employment: This Award Agreement shall not confer upon you any right to
continuation of employment by the Company, its Affiliates, and/or its Subsidiaries, nor shall
this Award Agreement interfere in any way with the Company’s, its Affiliates’, and/or its
Subsidiaries’ right to terminate your employment at any time.
	 
	 	 	 	 
	14.	 	Amendment to the Plan: Subject to certain limitations, the Committee may terminate, amend,
or modify the Plan; provided, however, that no such termination, amendment, or modification of
the Plan may in any way adversely affect your rights under this Award Agreement, without your
written approval.
	 
	 	 	 	 
	15.	 	Successor: All obligations of the Company under the Plan and this Award Agreement, with
respect to the Restricted Stock Units, shall be binding on any successor to the Company,
whether the existence of such successor is the result of a direct or indirect purchase,
merger, consolidation, or otherwise, of all or substantially all of the business and/or assets
of the Company. In the event such successor does not agree to be bound by this Award
Agreement, the Restricted Stock Units granted hereunder shall immediately vest.
	 
	 	 	 	 
	16.	 	Applicable Laws and Consent to Jurisdiction: The validity, construction, interpretation, and
enforceability of this Award Agreement shall be determined and governed by the laws of the
State of Ohio without giving effect to the principles of conflicts of law. For the purpose of
litigating any dispute that arises under this Award Agreement, the parties hereby consent to
exclusive jurisdiction and agree that such litigation shall be conducted in the federal or
state courts of the State of Ohio.
	 
	 	 	 	 
	17.	 	Severability: The provisions of this Award Agreement are severable and if any one or more
provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the
remaining provisions shall nevertheless be binding and enforceable.
	 
	 	 	 	 
	18.	 	Additional Information: Please refer any questions you may have regarding your Restricted
Stock Units to the Company’s Chief Financial Officer at the Company’s executive offices, 3550
West Market Street, Akron, Ohio 44333, or such other administrator as designated from time to
time by the Company.
	 
	 	 	 	 
	19.	 	Acknowledgement: By executing this Award Agreement below, you will be agreeing to
participate in the Plan and abide by all of the governing terms and provisions of the Plan and
this Award Agreement. By agreeing to participate, you acknowledge that you have reviewed the
Plan and this Award Agreement, and fully understand all of your rights under the Plan and this
Award

 

 

	 	 	 	 	 
	 	 	Agreement, and the Company’s remedies if you violate the terms of this Award Agreement, as well
as, all of the terms and conditions that may limit your eligibility to retain and receive the
Restricted Stock Units issued pursuant to the Plan and this Award Agreement.

	 	 	 	 	 
	                       , 20     	 	A. SCHULMAN, INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 
	 
	 	 	 	 
	

	 	Its:	 	 
	

	 	 	 
	 
	 	 	 	 
	Acknowledged and Agreed to this            , day of                          , 20     
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 	 	PARTICIPANTExhibit 10.1

 

EXHIBIT 10.1

SUMMARY OF EXECUTIVE COMPENSATION

On February 10, 2005, the Compensation Committee of the Board of Directors of Stoneridge, Inc. (the
“Company”) approved the annual base salaries (for fiscal year 2005) of the Company’s executive
officers after a review of performance and competitive market data. The following table sets forth
the annual base salary levels of the Company’s Named Executive Officers (which officers were
determined by reference to the Company’s proxy statement, dated March 11, 2005) and of the
Company’s Chief Financial Officer (who commenced employment with the Company in September 2004)
paid in 2004 and to be paid in 2005.

Also, on February 10, 2005, the Compensation Committee authorized the payment of annual incentive
(i.e., bonus) awards to each of the Company’s executive for the year ended December 31, 2004. The
bonuses paid to the executive officers are also set forth below.

	 	 	 	 	 	 	 
	 	 	 	 	Base Salary	 	Bonus
	Name and Position	 	Year	 	($)	 	(S)
	Gerald V. Pisani,
	 	2004	 	417,500	 	300,000
	President and Chief Executive Officer
	 	2005	 	510,000	 	 
	 
	 	 	 	 	 	 
	Edward F. Mosel,
	 	2004	 	249,917	 	160,000
	Executive Vice President and Chief Operating Officer
	 	2005	 	330,000	 	 
	 
	 	 	 	 	 	 
	Joseph M. Mallak,
	 	2004	 	72,917	 	90,000
	Vice President and Chief Financial Officer
	 	2005	 	270,000	 	 
	 
	 	 	 	 	 	 
	Thomas A. Beaver,
	 	2004	 	236,000	 	115,000
	Vice President of Global Sales and System Engineering
	 	2005	 	250,000	 	 
	 
	 	 	 	 	 	 
	Mark J. Tervalon,
	 	2004	 	202,974	 	120,000
	Vice President and General Manager Stoneridge
Electronics Group
	 	2005	 	235,000	 	 
	 
	 	 	 	 	 	 
	D.M. Draime
	 	2004	 	200,000	 	150,000
	Chairman of the Board of Directors
	 	2005	 	200,000

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