SEC Contract Filing

Filing Date: 2020-04-23

Document Content:
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<TYPE>EX-10.3
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<FILENAME>a151012211922019sarformo.htm
<DESCRIPTION>EXHIBIT 10.3
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<DIV><FONT size="1" style="font-size:1pt;color:white"> Exhibit 10.3 MATERION CORPORATION Appreciation Rights Agreement WHEREAS, __________ (the &#8220;Grantee&#8221;) is an employee of Materion Corporation (the &#8220;Corporation&#8221;) or a Subsidiary. WHEREAS, the execution of an agreement in the form hereof (this &#8220;Agreement&#8221;) has been authorized by a resolution of the Compensation Committee (the &#8220;Committee&#8221;) of the Board of Directors (the &#8220;Board&#8221;) of the Corporation that was duly adopted on _______ __, 2020. NOW, THEREFORE, the Corporation hereby confirms to the Grantee the grant, effective __________, 20__ (the &#8220;Date of Grant&#8221;), pursuant to the Materion Corporation 2006 Stock Incentive Plan (As Amended and Restated as of May 3, 2017) (the &#8220;Plan&#8221;), of __________ Free- standing Appreciation Rights (&#8220;SARs&#8221;), subject to the terms and conditions of the Plan and the terms and conditions described below. 1. Definitions As used in this Agreement: (A) &#8220;Base Price&#8221; means $_______ which was the Market Value per Share on the Date of Grant. (B) &#8220;Detrimental Activity&#8221; shall have the meaning set forth in Section 7 of this Agreement. (C) &#8220;Spread&#8221; means the excess of the Market Value per Share on the date when a SAR is exercised over the Base Price. (D) Capitalized terms without definition shall have the meanings assigned to them in the Plan. 2. Grant of SARs. The Corporation hereby grants to the Grantee the number of SARs set forth above. The SARs are a right to receive Common Shares in an amount equal in value (as described herein) to 100% of the Spread at the time of exercise. 3. Vesting of SARs. (A) The SARs granted hereby shall become exercisable in three substantially equal installments on each of the first three anniversaries of the Date of Grant, provided, except as otherwise provided in this Section 3, that the Grantee shall have remained in the continuous employ of the Corporation or any Subsidiary through each such date. (B) Notwithstanding Section 3(A) above, the SARs granted hereby shall (to the extent not already forfeited or exercisable) become immediately exercisable in full if (i) </FONT></DIV>
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<DIV><FONT size="1" style="font-size:1pt;color:white"> the Grantee should die while in the employ of the Corporation or any Subsidiary, or (ii) the Grantee should become permanently disabled (as hereinafter defined) while in the employ of the Corporation or any Subsidiary. The Grantee shall be considered to have become permanently disabled if the Grantee has suffered a permanent disability within the meaning of the long-term disability plan of the Corporation in effect for, or applicable to, the Grantee and is &#8220;disabled&#8221; within the meaning of Section 409A(a)(2)(C) of the Code. (C) (i) Notwithstanding Section 3(A) above, the SARs granted hereby shall (to the extent not already forfeited or exercisable) become immediately exercisable in full if at any time during the employment of the Grantee and prior to the termination of the SARs: (a) a Change in Control shall occur after the Date of Grant; and (b) within two years following the Change in Control, the Grantee&#8217;s employment with the Corporation or a Subsidiary is terminated by the Grantee as a Termination for Good Cause (as defined in Section 3(E) below) or the Grantee is terminated by the Corporation other than as a Termination for Cause (as defined in Section 3(D) below). (ii) Notwithstanding anything in this Section 3(C) to the contrary, in connection with a Business Combination, the result of which is that the Outstanding Company Voting Securities are exchanged for or become exchangeable for securities of another entity, cash or a combination thereof, if the entity resulting from such Business Combination does not assume the SARs evidenced hereby and the Corporation&#8217;s obligations hereunder, or replace the SARs evidenced hereby with a substantially equivalent security of the entity resulting from such Business Combination, then the SARs evidenced hereby shall (to the extent not already forfeited or exercisable) become immediately exercisable in full as of immediately prior to such Business Combination. (D) &#8220;Termination for Cause&#8221; means a termination of Grantee&#8217;s employment by the Corporation for &#8220;Cause&#8221; (as defined in Section 7(F) of this Agreement). (E) &#8220;Termination for Good Cause&#8221; shall mean the Grantee&#8217;s termination of the Grantee&#8217;s employment with the Corporation or a Subsidiary as a result of the occurrence of any of the following: (i) a change in the Grantee&#8217;s principal location of employment that is greater than 50 miles from its location as of the date hereof without the Grantee&#8217;s consent; provided, however, that the Grantee hereby acknowledges that the Grantee may be required to engage in travel in connection with the performance of the Grantee&#8217;s duties hereunder and that such travel shall not constitute a change in the Grantee&#8217;s principal location of employment for purposes hereof; (ii) a material diminution in the Grantee&#8217;s base compensation; (iii) a change in the Grantee&#8217;s position with the Corporation without the Grantee&#8217;s co