SEC Contract Filing

Filing Date: 2016-06-30

Document Content:
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>schnex102_2016531-q3.htm
<DESCRIPTION>FOR OF LONG-TERM INCENTIVE AWARD AGREEMENT
<TEXT>
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 <title>Exhibit</title>
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<div><a name="sa5374ef1408f4506b7dff3fa7116dbfd"></a></div><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><div><br></div><div style="line-height:120%;text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Exhibit 10.2</font></div><div style="line-height:120%;text-align:left;padding-left:576px;text-indent:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;padding-bottom:4px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">SCHNITZER STEEL INDUSTRIES, INC.</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">LONG-TERM INCENTIVE AWARD AGREEMENT</font></div><div style="line-height:120%;padding-bottom:16px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">(2nd Half FY 2016-FY2018 Performance Period)</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On April 27, 2016, the Compensation Committee (the &#8220;Committee&#8221;) of the Board of Directors (the &#8220;Board&#8221;) of Schnitzer Steel Industries, Inc. (the &#8220;Company&#8221;) authorized and granted a performance-based award to </font><font style="font-family:inherit;font-size:10pt;font-weight:bold;">_______________</font><font style="font-family:inherit;font-size:10pt;">&#32;(&#8220;Recipient&#8221;) pursuant to Section 10 of the Company&#8217;s 1993 Stock Incentive Plan (the &#8220;Plan&#8221;). Compensation paid pursuant to the award is intended to qualify as performance-based compensation under Section 162(m) of the Internal Revenue Code of 1986 (the &#8220;Code&#8221;). By accepting this award, Recipient agrees to all of the terms and conditions of this Agreement.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">1.&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Award</font><font style="font-family:inherit;font-size:10pt;">. Subject to the terms and conditions of this Agreement, the Company shall issue to the Recipient the number of shares of Class A Common Stock of the Company (&#8220;Performance Shares&#8221;) determined under this Agreement based on (a) the performance of the Company during the 2&#189;-year period from March 1, 2016 to August 31, 2018 (the &#8220;Performance Period&#8221;) as described in Section 2, (b) Recipient&#8217;s continued employment during the Performance Period as described in Section 3, and (c) Recipient&#8217;s not engaging in actions prohibited by Section 4. Recipient&#8217;s &#8220;TSR Target Share Amount&#8221; for purposes of this Agreement is </font><font style="font-family:inherit;font-size:10pt;font-weight:bold;">_______</font><font style="font-family:inherit;font-size:10pt;">&#32;shares and Recipient&#8217;s &#8220;CFROI Target Share Amount&#8221; for purposes of this Agreement is ______ shares. This award does not include a dividend equivalent cash payment.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">2.&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Performance Conditions</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:96px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">2.1&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Payout Formula</font><font style="font-family:inherit;font-size:10pt;">. Subject to adjustment under Sections 3, 4, 5, 6, 7 and 8, the number of Performance Shares to be issued to Recipient shall be equal to the sum of (a) the TSR Payout Shares (as defined below), plus (b) the CFROI Payout Factor as determined under Section 2.3 below multiplied by the CFROI Target Share Amount. The &#8220;TSR Payout Shares&#8221; shall be equal to the TSR Payout Factor as determined under Section 2.2 below multiplied by the TSR Target Share Amount; provided, however, that the number of TSR Payout Shares shall be reduced as necessary to ensure that the total value of the TSR Payout Shares at the time of payout (calculated by multiplying the Value (as defined in Section 7 below) by the number of TSR Payout Shares) shall not be more than 400% of the value of the TSR Target Share Amount on the date of this Agreement (calculated by multiplying the closing market price for Class A Common Stock on the date of this Agreement by the TSR Target Share Amount).</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:96px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">2.2&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">TSR Payout Factor</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120