RESTRICTED SHARE UNITS AGREEMENT This RESTRICTED SHARE UNITS AGREEMENT (the “Agreement”) is made and entered into between OMNOVA Solutions Inc., an Ohio corporation (“Company”), and the individual identified as the “Participant” (such individual, the...
EXHIBIT 10.12
OMNOVA Solutions Inc.
Participant: [participant name]
Global ID: [participant global ID]
Award Type: Restricted Stock Units
Plan Name: 2017 EIP - Restricted Share Units
Award Date: [award date]
Award Expiration Date: N/A
Total Granted: [total granted]
Award Price: USD [award price per share]
Vesting Schedule
Shares/Options Awarded Vest Date
[amount vesting 1] [vest date 1]
[amount vesting 2] [vest date 2]
[amount vesting 3] [vest date 3]
RESTRICTED SHARE UNITS AGREEMENT
This RESTRICTED SHARE UNITS AGREEMENT (the “Agreement”) is made and entered into
between OMNOVA Solutions Inc., an Ohio corporation (“Company”), and the individual identified as the
“Participant” (such individual, the “Director”) on the cover page preceding this Agreement (such cover
page, the “Grant Report”), effective as of the Award Date specified on the Grant Report
WHEREAS, under the terms of the OMNOVA Solutions Inc. 2017 Equity Incentive Plan as in
effect on the date hereof (the “Plan”), the Company is authorized to issue restricted share units.
NOW, THEREFORE, in consideration of the premises and the mutual covenants set forth in this
Agreement and for other good and valuable consideration, the parties hereto agree as follows:
1. Grant of Restricted Share Units. In consideration for the services to be rendered by the
Director to the Company, the Company hereby issues to the Director, the number of restricted share units
under the Plan identified as the Total Granted on the Grant Report (the “Restricted Share Units”). Each
Restricted Share Unit represents the right to receive one common share, par value $0.10 per share, of
the Company (each, a “Common Share”), subject to the terms and conditions set forth in this Agreement
and the Plan. The Restricted Share Units shall be credited to a separate account maintained for the
Director on the books and records of the Company (the “Account”). All amounts credited to the Account
shall continue for all purposes to be part of the general assets of the Company.
2. Vesting.
(a) Ordinary Vesting. Except as otherwise provided herein, the Restricted Share
Units will vest and no longer be subject to any restrictions upon the later of (x) one year from the
date of this agreement and (y) the Director’s Separation from Service from the Board for any
reason (such later date, the “Vesting Date”); provided, however, that if the Director’s Separation
from Service with the Board occurs on or before June 30th in the same calendar year as the date
of this agreement, then the Director shall only be entitled to receive one half of the Restricted
Share Units upon vesting on the Vesting Date, and the remaining Restricted Share Units will be
forfeited. The period between the date of this Agreement and the Vesting Date shall be referred
to herein as the “Restricted Period.”
(b) Change in Control Vesting.
i. Failure to Receive a Replacement Award. If, prior to or in connection with
the Change in Control, Director does not receive a Replacement Award in exchange for
his or her unvested Restricted Share Units, then the Vesting Date of the unvested
Restricted Share Units shall be deemed to be the date and time that is immediately prior
to the Change in Control, and at such time all restrictions thereon shall lapse and the
Common Shares there underlying shall be delivered to Director. Any Replacement Award
granted to Director shall be deemed a complete and full substitution for, and shall be
accepted in full satisfaction of, the unvested Restricted Share Units.
ii. Separation from Service Following Change in Control. If Director has
received a Replacement Award prior to or in connection with a Change in Control and,
following the Change in Control, Director terminates his or her employment for Good
Reason, or Employee is involuntarily terminated for reasons other than for Cause, in either
case within twenty four (24) months of the Change in Control, then the Vesting Date of the
Replacement Award shall be deemed to be the date of such termination, all restrictions
thereon shall lapse, and the Common Shares there underlying shall be delivered to
Director.
3. Restrictions. Subject to any exceptions set forth in this Agreement or the Plan, during the
Restricted Period and until such time as the Restricted Share Units are settled in accordance with Section
7, neither the Restricted Share Units nor any rights relating thereto may be assigned, alienated, pledged,
attached, sold or otherwise transferred or encumbered by the Director. Any attempt to assign, alienate,
pledge, attach, sell or otherwise transfer or encumber the Restricted Share Units or the rights relating
thereto shall be wholly ineffective and, if any such attempt is made, the Restricted Share Units will be
forfeited by the Director and all of the Director’s rights to such units shall immediately terminate without
any payment or consideration by the Company.
4. Shareholder Rights. The Director shall not have any rights of a shareholder with respect
to the Company common shares, par value $0.10 per share (the “Common Shares”) underlying the
Restricted Share Units unless and until the Restricted Share Units vest and are settled by the issuance
of such Common Shares. Upon and following the settlement of the Restricted Share Units in accordance
with Section 7, the Director shall be the beneficial owner of the Common Shares issued in satisfaction of
the Restricted Share Units unless and until such shares are sold or otherwise disposed of by Director,
and as beneficial owner Director shall be entitled to all rights of a shareholder of the Company (including
voting rights).
5. Automatic Dividend Reinvestment. If, prior to the settlement date, the Company declares
a cash or stock dividend on its Common Shares, then, on the payment date of the dividend, the Account
shall be credited with dividend equivalents in an amount equal to the dividends that would have been
paid to Director if Director had held an amount of Common Shares equivalent to the number of Restricted
Share Units on such payment date. The dividend equivalents credited to the Director’s Account will be
deemed to be reinvested in additional Restricted Share Units (rounded to the nearest whole share) and
will be subject to the same terms and conditions as the Restricted Share Units to which they are
attributable and shall vest or be forfeited at the same time as the Restricted Share Units to which they
are attributable. Such additional Restricted Share Units shall also be credited with additional Restricted
Share Units as any further dividends are declared.
6. Adjustments. If any change is made to the outstanding Common Shares or the capital
structure of the Company the Restricted Share Units shall be adjusted or terminated to the extent
contemplated by Section 11 of the Plan.
7. Settlement. Promptly following the Vesting Date, and in any event no later than two and
one half months following the Vesting Date, the Company shall issue and deliver to Director the number
of Common Shares equal to the number of Restricted Share Units so vesting (the date on which such
settlement occurs, the “Settlement Date”).
8. Beneficiary Designation. Director may designate any beneficiary or beneficiaries
(contingently or successively) to whom the Restricted Share Units are to be paid if Director dies during
the Restricted Period, and may at any time revoke or change any such designation. Absent such
designation, any Common Shares which are to be delivered to the Director in respect of Restricted Share
Units under this Agreement will be payable to Director’s estate upon Director’s death. The designation of
a Beneficiary will be effective only when Director has delivered a completed Designation of Beneficiary
form to the Company’s Secretary or followed other appropriate Beneficiary designation procedures
established by the Company’s Secretary from time to time. A subsequent Beneficiary designation will
revoke a prior designation.
9. Tax Matters. Notwithstanding any action the Company takes with respect to any or all
income tax, social insurance, payroll tax, or other tax-related withholding (“Tax-Related Items”), the
ultimate liability for all Tax-Related Items is and remains the Director's responsibility and the Company
(a) makes no representation or undertakings regarding the treatment of any Tax-Related Items in
connection with the grant, vesting, or settlement of the Restricted Share Units or the subsequent sale of
any shares; and (b) does not commit to structure the Restricted Share Units to reduce or eliminate the
Director’s liability for Tax-Related Items.
10. Defined Terms. Capitalized terms used, but not defined, herein, shall have the meetings
provided to them in the Plan.
11. Disputes and Conflicts. The Committee shall have the authority to determine all disputes
and controversies concerning the interpretation of this Agreement. All determinations and decisions made
in good faith by the Committee pursuant to the provisions of the Plan and all related orders and
resolutions of the Committee made in good faith shall be final, conclusive and binding on all persons. In
the event of any conflict between this Agreement and the Plan, the terms of the Plan shall control.
12. Notices. All written notices and communications directed to the Company pursuant to this
Agreement must be addressed to OMNOVA Solutions Inc., 00000 Xxxxxxx Xxxx, Xxxxxxxxx, Xxxx
00000; Attention: Corporate Secretary. All communications directed to Director pursuant to this
Agreement will be mailed to the Director’s current address as recorded in the record maintained by the
Corporate Secretary.
13. Governing Law. To the extent not preempted by federal law, this Agreement will be
governed by and interpreted in accordance with the laws of the State of Ohio.
14. Section 409A. This Agreement is intended to comply with Section 409A of the Code or an
exemption thereunder and shall be construed and interpreted in a manner that is consistent with the
requirements for avoiding additional taxes or penalties under Section 409A of the Code. Notwithstanding
the foregoing, the Company makes no representations that the payments and benefits provided under
this agreement comply with Section 409A of the Code and in no event shall the Company be liable
hereunder for all or any portion of any taxes, penalties, interest or other expenses that may be incurred
by the Director on account of non-compliance with Section 409A of the Code.
15. Grant Acceptance. In consideration of my receipt of the grant of Restricted Share
Units as specified on the Grant Report, I acknowledge by accepting the grant (evidenced in writing
or through my acknowledgement of the grant through the Company’s third-party equity plan
administrator), I agree to the terms, conditions and restrictions set forth in this Agreement and
the Plan.