SEC Contract Filing

Filing Date: 2023-02-24

Document Content:
<DOCUMENT>
<TYPE>EX-10.7
<SEQUENCE>7
<FILENAME>formofstockappreciationr.htm
<DESCRIPTION>EX-10.7
<TEXT>
<HTML>
<HEAD><!-- Document generated by Workiva Inc -->
<TITLE>formofstockappreciationr</TITLE>
</HEAD>
<BODY bgcolor="white">
<DIV align="center">
<DIV style="margin-left:1em;width:1055;"><!-- formofstockappreciationr001.jpg -->
<DIV style="padding-top:2em;">
<IMG src="formofstockappreciationr001.jpg" title="slide1" width="1055" height="1365">
<DIV><FONT size="1" style="font-size:1pt;color:white"> - 1 - Exhibit 10.7 STOCK APPRECIATION RIGHTS AGREEMENT THIS STOCK APPRECIATION RIGHTS AGREEMENT (the &#8220;Agreement&#8221;) is granted this __ day of ________, 20__ (the &#8220;Grant Date&#8221;), by PATRICK INDUSTRIES, INC. (the &#8220;Company&#8221;), to _________(the &#8220;Grantee&#8221;), pursuant to the Patrick Industries, Inc. Omnibus Incentive Plan (the &#8220;Plan&#8221;), as the same may be amended from time to time. Capitalized terms not otherwise defined herein shall have the meanings assigned to such terms in the Plan. In consideration of the premises, mutual covenants and agreements herein, the Company and the Grantee agree as follows: 1. Grant of Stock Appreciation Rights. The Company hereby grants to the Grantee an award of Stock Appreciation Rights relating to _________________ (XXXX) shares of Common Stock of the Company (&#8220;Shares&#8221;), pursuant to which the Grantee shall be eligible for the payment(s) described in paragraph 6 below. 2. Strike Price. The strike price for each Share to which this Stock Appreciation Right (&#8220;SAR&#8221;) relates shall be $XX.XX per share (the &#8220;Strike Price&#8221;), being not less than the Fair Market Value per Share (as determined under the Plan) on the Grant Date. 3. Vesting. Subject to the provisions of paragraphs 1, 4, 5, 6, and 9 hereof, this SAR may be exercised (as described in paragraph 6 hereof) to a maximum cumulative amount of __% of the total Shares from and after the first anniversary of the Grant Date, as to __% of the total Shares from and after the second anniversary of the Grant Date, as to __% of the total Shares from and after the third anniversary of the Grant Date, and as to 100% of the total Shares from and after the fourth anniversary of the Grant Date. The following schedule reflects the amounts and vesting dates in accordance with the schedule above: Vesting Schedule Vesting Date Cumulative Percent XX% XX% XX% 100% Cumulative Vested Shares Notwithstanding anything to the contrary in this Agreement whether express or implied, and except as provided in the following sentence, in the event the Grantee ceases to be an Employee of the Company or any Subsidiary, no further vesting (pro rata or otherwise) shall occur from and after the date the Grantee ceases to be an Employee even if Grantee continues to perform services for the Company or any Subsidiary as a Director or a Consultant. Notwithstanding the preceding sentence, in the event the Grantee ceases to be an Employee of the Company by reason of a termination of Grantee&#8217;s employment by the Company without Cause (as defined below), this SAR shall become fully vested and exercisable as to any Shares that have not otherwise vested as of the effective time of such termination of employment. </FONT></DIV>
<P><HR noshade><P>
<DIV style="page-break-before:always;">&nbsp;</DIV>
</DIV>
<!-- formofstockappreciationr002.jpg -->
<DIV style="padding-top:2em;">
<IMG src="formofstockappreciationr002.jpg" title="slide2" width="1055" height="1365">
<DIV><FONT size="1" style="font-size:1pt;color:white"> - 2 - 4. Term. Subject to earlier termination as provided in paragraph 5 hereof, the SAR shall terminate, and be of no force or effect after 5:00 p.m. (Eastern Time), on the ninth (9th) anniversary of the Grant Date (the &#8220;Expiration Date&#8221;). 5. Effect of Termination of Service. For purposes of this Agreement, if Grantee ceases to perform services for the Company or its Subsidiaries in the capacity as an Employee, Director or Consultant (a &#8220;Termination of Service&#8221;), this SAR shall lapse as provided in paragraph 5(a) or 5(b), as the case may be. (a) If Grantee has performed at least five (5) years of continuous services following the Grant Date as an Employee, Director or Consultant of the Company and its Subsidiaries, following Grantee&#8217;s Termination of Service for any reason, this SAR shall terminate and lapse on the Expiration Date. (b) If Grantee has performed less than five (5) years of continuous services following the Grant Date as an Employee, Director or Consultant of the Company and its Subsidiaries, following Grantee&#8217;s Termination of Service (x) subject to the last sentence of Section 3 hereof, any then unvested portion of this SAR shall be immediately cancelled and forfeited by the Grantee for no consideration and (y) any then vested portion of this SAR shall terminate and lapse as follows: (i) In the event of a Termination of Service for any reason other than death, Disability, Retirement, or Cause, this SAR shall lapse on the earlier of (1) the last day of the ninety (90) day period beginning on the date of such Termination of Service or (2) the Expiration Date. (ii) In the event of a Termination of Service by reason of Grantee&#8217;s death, Disability or Retirement, this SAR shall lapse on the earlier of (1) the last day of the one (1) year period beginning on the date of such Termination of Service or (2) the Expiration Date. For these purposes, &#8220;Retirement&#8221; shall mean a retirement in accordance with any retirement plan then in effect for the Company or any of its Subsidiaries. (iii) If the Grantee dies during the twelve (12) month period following a Termination of Service by reason of Disability or Retirement or during the ninety (90) day period following any other Termination of Service, then notwithstanding paragraphs 5(b)(i) and 5(b)(ii) above, this SAR shall lapse on the earlier of (1) the last day