Table of Contents 16. Stock Based Compensation Cancellation and Expiration of Outstanding Predecessor Equity Awards Successor Company Stock Based Awards Summary of Plans Restricted Stock Units - Employee Grants Hexion Inc. |  106  | 2020 Form 10-K In September 2019, Hexion Holdings granted RSUs that time vest over three years with an aggregate grant date fair value of approximately $16. The fair value was determined using the estimated aggregate fair value of equity per share on the grant date. Compensation cost is recognized equally over the 3 year service period. For certain retirement eligible associates, the stock-based compensation cost is accelerated according to the plan documents. Upon vesting, RSUs are settled in shares at the end of the three year vesting period. As of December 31, 2020, a total of 344,700 RSUs had vested. On August 8, 2019, the Board of Directors of Hexion Holdings approved the Hexion Holdings Corporation 2019 Omnibus Incentive Plan (the “2019 Incentive Plan”), whereby Hexion Holdings is reserving shares of Class B Common Stock, par value $0.01 per share, representing 10% of Hexion Holding’s fully diluted equity as of the date of approval of the 2019 Incentive Plan, for issuance to employees, directors, and other key service providers in connection with stock options, restricted stock units, performance-based stock units and other equity-based awards (such as performance stock units) to be awarded from time to time as the Board determines. The restricted and performance stock units are deemed to be equivalent to one share of common stock of Hexion Holdings. The awards contain restrictions on transferability and other typical terms and conditions. As of the Effective Date, in conjunction with the Company’s emergence from Chapter 11, all outstanding unvested unit options and restricted deferred units of the Predecessor Company’s parent company, TopCo, were canceled, effective immediately (See Note 6 for more information). There was no financial statement impact as a result of these cancellations. The following is a summary of the new stock based compensation plans issued after Emergence and their related outstanding shares as of December 31, 2020: (1) Shares outstanding includes shares awarded to associates related to the Held for Sale Business. Plan Name Grant Date Shares Outstanding Plan Expiration Vesting Terms/Status Number of Shares Authorized Hexion Holdings Corporation 2019 Omnibus Incentive Plan August 2029 7,635,389  Restricted Stock Units (“RSUs”) and Performance Stock Units (“PSUs”): 2019 Grants RSUs September 2019 1,034,100 Time-vest ratably over 3 years, but must be employed on July 1, 2022 in order to receive shares; Accelerated vesting upon change in control. PSUs September 2019 2,412,894 Performance based with market conditions: Step vest over 4 years based on a 20 consecutive trading-day volume weighted average price per share from $20 to $30 per share. PSUs that vest by June 30, 2022 will be settled in July 2022 and remaining PSUs that vest by June 30, 2023 will be settled in July 2023. 2020 Grants RSUs March 2020 692,441 Time-vest ratably over 3 years; Accelerated vesting upon change in control. PSUs March 2020 811,425 Performance based: 50% vest upon achievement of adjusted return on invested capital targets as of December 31, 2022. 50% vest upon achievement of Hexion Segment EBITDA Margin targets as of December 31, 2022. PSUs that vest will be settled in July 2023. 2020 Non-employee Grants RSUs January 2020 73,332 Time-vest ratably over 3 years; Accelerated vesting upon change in control. Settled upon vesting. RSUs August 2020 60,664 100% vest on June 1, 2021; Accelerated vesting upon change in control. RSUs that vest will be settled upon the date the non-employee director leaves board service. (1)