TRIMAS CORP (Form: 10-Q, Received: 04/30/2020 11:03:10)

Compensatory

Range of damages sought (dollars in millions)

$0.0 to $0.6

$0.6 to $5.0

Number of claims

false--12-31Q120200000842633210000024000000.010.01400000000400000000445626794340955244562679434095520P25YP12YP15YP30YP1YP15YP5YP1YP17Y60000060000025000005000000500000050000000006000006000002500000500000050000005000000P5Y0.010.011000000001000000000000 0000842633 2020-01-01 2020-03-31 0000842633 2019-01-01 2019-03-31 0000842633 2020-04-22 0000842633 2020-03-31 0000842633 2019-12-31 0000842633 2019-03-31 0000842633 2018-12-31 0000842633 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0000842633 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0000842633 us-gaap:CommonStockMember 2020-01-01 2020-03-31 0000842633 us-gaap:CommonStockMember 2020-03-31 0000842633 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0000842633 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0000842633 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0000842633 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0000842633 us-gaap:RetainedEarningsMember 2019-12-31 0000842633 us-gaap:CommonStockMember 2019-12-31 0000842633 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0000842633 us-gaap:RetainedEarningsMember 2020-03-31 0000842633 us-gaap:CommonStockMember 2018-12-31 0000842633 us-gaap:RetainedEarningsMember 2018-12-31 0000842633 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000842633 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0000842633 us-gaap:CommonStockMember 2019-03-31 0000842633 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000842633 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000842633 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0000842633 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0000842633 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000842633 us-gaap:RetainedEarningsMember 2019-03-31 0000842633 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember trs:LamonsDivisionMember 2019-12-20 0000842633 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember 2019-01-01 2019-03-31 0000842633 trs:LamonsDivisionMember 2020-01-01 2020-03-31 0000842633 trs:AerospacecustomerendmarketMember 2020-01-01 2020-03-31 0000842633 trs:AerospacecustomerendmarketMember 2019-01-01 2019-03-31 0000842633 trs:ConsumercustomerendmarketMember 2020-01-01 2020-03-31 0000842633 trs:ConsumercustomerendmarketMember 2019-01-01 2019-03-31 0000842633 trs:IndustrialcustomerendmarketMember 2019-01-01 2019-03-31 0000842633 trs:IndustrialcustomerendmarketMember 2020-01-01 2020-03-31 0000842633 trs:TaplastS.p.A.Member 2018-01-01 2018-12-31 0000842633 trs:RSAEngineeredProductsMemberMember 2020-01-01 2020-03-31 0000842633 trs:PlasticSrlMember 2019-01-01 2019-03-31 0000842633 trs:RSAEngineeredProductsMemberMember 2020-02-27 0000842633 us-gaap:CostOfSalesMember 2019-01-01 2019-03-31 0000842633 trs:PlasticSrlMember 2018-01-01 2018-12-31 0000842633 trs:TaplastS.p.A.Member 2019-04-01 2019-06-30 0000842633 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-01-01 2019-03-31 0000842633 trs:RSAEngineeredProductsMemberMember 2019-01-01 2019-12-31 0000842633 trs:RSAEngineeredProductsMemberMember us-gaap:CostOfSalesMember 2020-01-01 2020-03-31 0000842633 us-gaap:CustomerRelationshipsMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-01-01 2019-03-31 0000842633 us-gaap:OtherIntangibleAssetsMember us-gaap:CostOfSalesMember 2020-01-01 2020-03-31 0000842633 us-gaap:CustomerRelationshipsMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2020-01-01 2020-03-31 0000842633 us-gaap:OtherIntangibleAssetsMember us-gaap:CostOfSalesMember 2019-01-01 2019-03-31 0000842633 trs:AerospaceDefenseReportableSegmentMember 2019-12-31 0000842633 trs:AerospaceDefenseReportableSegmentMember 2020-01-01 2020-03-31 0000842633 trs:PackagingReportableSegmentMember 2019-12-31 0000842633 trs:PackagingReportableSegmentMember 2020-01-01 2020-03-31 0000842633 trs:SpecialtyProductsReportableSegmentMember 2020-03-31 0000842633 trs:SpecialtyProductsReportableSegmentMember 2020-01-01 2020-03-31 0000842633 trs:SpecialtyProductsReportableSegmentMember 2019-12-31 0000842633 trs:PackagingReportableSegmentMember 2020-03-31 0000842633 trs:AerospaceDefenseReportableSegmentMember 2020-03-31 0000842633 trs:MachinedProductsReportingUnitMember 2020-03-31 0000842633 srt:MaximumMember 2020-01-01 2020-03-31 0000842633 us-gaap:CustomerRelationshipsMember 2020-03-31 0000842633 trs:UsefulLifeFifteenToTwentyfiveYearsMember us-gaap:CustomerRelationshipsMember 2019-12-31 0000842633 trs:UsefulLifeSeventeenToThirtyYearsMember us-gaap:OtherIntangibleAssetsMember 2019-12-31 0000842633 us-gaap:TrademarksAndTradeNamesMember 2020-03-31 0000842633 trs:UsefulLifeFifteenToTwentyfiveYearsMember us-gaap:CustomerRelationshipsMember 2020-03-31 0000842633 us-gaap:OtherIntangibleAssetsMember 2019-12-31 0000842633 trs:UsefulLifeFiveToTwelveYearsMember us-gaap:CustomerRelationshipsMember 2020-03-31 0000842633 us-gaap:CustomerRelationshipsMember 2019-12-31 0000842633 trs:UsefulLifeSeventeenToThirtyYearsMember us-gaap:OtherIntangibleAssetsMember 2020-03-31 0000842633 us-gaap:OtherIntangibleAssetsMember 2020-03-31 0000842633 trs:UsefulLifeOneToFifteenYearsMember us-gaap:OtherIntangibleAssetsMember 2020-03-31 0000842633 trs:UsefulLifeFiveToTwelveYearsMember us-gaap:CustomerRelationshipsMember 2019-12-31 0000842633 trs:UsefulLifeOneToFifteenYearsMember us-gaap:OtherIntangibleAssetsMember 2019-12-31 0000842633 us-gaap:TrademarksAndTradeNamesMember 2019-12-31 0000842633 srt:MinimumMember 2020-01-01 2020-03-31 0000842633 srt:MinimumMember trs:UsefulLifeFiveToTwelveYearsMember us-gaap:CustomerRelationshipsMember 2020-01-01 2020-03-31 0000842633 srt:MaximumMember trs:UsefulLifeFifteenToTwentyfiveYearsMember us-gaap:CustomerRelationshipsMember 2020-01-01 2020-03-31 0000842633 srt:MaximumMember trs:UsefulLifeOneToFifteenYearsMember us-gaap:OtherIntangibleAssetsMember 2020-01-01 2020-03-31 0000842633 srt:MinimumMember trs:UsefulLifeOneToFifteenYearsMember us-gaap:OtherIntangibleAssetsMember 2020-01-01 2020-03-31 0000842633 srt:MaximumMember trs:UsefulLifeFiveToTwelveYearsMember us-gaap:CustomerRelationshipsMember 2020-01-01 2020-03-31 0000842633 srt:MaximumMember trs:UsefulLifeSeventeenToThirtyYearsMember us-gaap:OtherIntangibleAssetsMember 2020-01-01 2020-03-31 0000842633 srt:MinimumMember trs:UsefulLifeFifteenToTwentyfiveYearsMember us-gaap:CustomerRelationshipsMember 2020-01-01 2020-03-31 0000842633 srt:MinimumMember trs:UsefulLifeSeventeenToThirtyYearsMember us-gaap:OtherIntangibleAssetsMember 2020-01-01 2020-03-31 0000842633 us-gaap:SellingGeneralAndAdministrativeExpensesMember us-gaap:SegmentContinuingOperationsMember 2020-01-01 2020-03-31 0000842633 us-gaap:SegmentContinuingOperationsMember 2020-01-01 2020-03-31 0000842633 us-gaap:CostOfSalesMember us-gaap:SegmentContinuingOperationsMember 2020-01-01 2020-03-31 0000842633 us-gaap:CostOfSalesMember us-gaap:SegmentContinuingOperationsMember 2019-01-01 2019-03-31 0000842633 us-gaap:SellingGeneralAndAdministrativeExpensesMember us-gaap:SegmentContinuingOperationsMember 2019-01-01 2019-03-31 0000842633 us-gaap:SegmentContinuingOperationsMember 2019-01-01 2019-03-31 0000842633 us-gaap:MachineryAndEquipmentMember 2020-03-31 0000842633 us-gaap:BuildingMember 2019-12-31 0000842633 us-gaap:LandAndLandImprovementsMember 2019-12-31 0000842633 us-gaap:BuildingMember 2020-03-31 0000842633 us-gaap:MachineryAndEquipmentMember 2019-12-31 0000842633 us-gaap:LandAndLandImprovementsMember 2020-03-31 0000842633 trs:A4.875SeniorUnsecuredNotesDue2025Member us-gaap:DebtInstrumentRedemptionPeriodFourMember us-gaap:SeniorNotesMember 2020-01-01 2020-03-31 0000842633 trs:A4.875SeniorUnsecuredNotesDue2025Member us-gaap:DebtInstrumentRedemptionPeriodThreeMember us-gaap:SeniorNotesMember 2020-01-01 2020-03-31 0000842633 trs:A4.875SeniorUnsecuredNotesDue2025Member us-gaap:DebtInstrumentRedemptionPeriodTwoMember us-gaap:SeniorNotesMember 2020-01-01 2020-03-31 0000842633 us-gaap:SeniorNotesMember 2020-03-31 0000842633 trs:CreditAgreementMember 2019-12-31 0000842633 us-gaap:SeniorNotesMember 2019-12-31 0000842633 trs:CreditAgreementMember 2020-03-31 0000842633 us-gaap:SeniorNotesMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000842633 us-gaap:SeniorNotesMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000842633 us-gaap:RevolvingCreditFacilityMember trs:CreditAgreementMember 2020-03-31 0000842633 us-gaap:RevolvingCreditFacilityMember trs:CreditAgreementMember 2019-12-31 0000842633 us-gaap:RevolvingCreditFacilityMember trs:CreditAgreementMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000842633 us-gaap:RevolvingCreditFacilityMember trs:CreditAgreementMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000842633 us-gaap:RevolvingCreditFacilityMember 2019-12-31 0000842633 trs:A4.875SeniorUnsecuredNotesDue2025Member us-gaap:SeniorNotesMember 2020-01-01 2020-03-31 0000842633 us-gaap:RevolvingCreditFacilityMember 2020-01-01 2020-03-31 0000842633 trs:A4.875SeniorUnsecuredNotesDue2025Member us-gaap:SeniorNotesMember 2020-03-31 0000842633 trs:A4.875SeniorUnsecuredNotesDue2025Member us-gaap:DebtInstrumentRedemptionPeriodOneMember us-gaap:SeniorNotesMember 2020-01-01 2020-03-31 0000842633 trs:RevolvingCreditAndTermLoanFacilitiesMember 2020-03-31 0000842633 us-gaap:RevolvingCreditFacilityMember 2020-03-31 0000842633 us-gaap:LetterOfCreditMember 2020-03-31 0000842633 us-gaap:RevolvingCreditFacilityMember 2020-03-31 0000842633 us-gaap:LetterOfCreditMember 2019-12-31 0000842633 us-gaap:DesignatedAsHedgingInstrumentMember 2020-01-01 2020-03-31 0000842633 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-03-31 0000842633 srt:MaximumMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-03-31 0000842633 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2020-03-31 0000842633 srt:MinimumMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-03-31 0000842633 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-01-01 2020-03-31 0000842633 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-01-01 2019-03-31 0000842633 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0000842633 us-gaap:ForeignExchangeContractMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000842633 us-gaap:ForeignExchangeContractMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000842633 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000842633 us-gaap:ForeignExchangeContractMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000842633 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000842633 us-gaap:ForeignExchangeContractMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000842633 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000842633 us-gaap:ForeignExchangeContractMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000842633 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000842633 us-gaap:ForeignExchangeContractMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000842633 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000842633 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000842633 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000842633 us-gaap:ForeignExchangeContractMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000842633 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000842633 us-gaap:ForeignExchangeContractMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000842633 us-gaap:OtherAssetsMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-03-31 0000842633 us-gaap:OtherAssetsMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0000842633 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000842633 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2019-01-01 2019-03-31 0000842633 us-gaap:AsbestosIssueMember 2020-01-01 2020-03-31 0000842633 us-gaap:AsbestosIssueMember 2019-12-31 0000842633 us-gaap:AsbestosIssueMember 2018-01-01 2018-12-31 0000842633 us-gaap:AsbestosIssueMember 2020-03-31 0000842633 us-gaap:AsbestosIssueMember 2018-12-31 0000842633 us-gaap:AsbestosIssueMember 1991-01-01 2020-03-31 0000842633 trs:PunitiveOnlyDamagesMember us-gaap:PendingLitigationMember us-gaap:AsbestosIssueMember 2020-03-31 0000842633 trs:CompensatoryOnlyDamagesMember us-gaap:PendingLitigationMember us-gaap:AsbestosIssueMember 2020-03-31 0000842633 trs:PunitiveOnlyDamagesMember us-gaap:PendingLitigationMember us-gaap:AsbestosIssueMember 2020-01-01 2020-03-31 0000842633 trs:Range3Member trs:CompensatoryOnlyDamagesMember us-gaap:PendingLitigationMember us-gaap:AsbestosIssueMember 2020-03-31 0000842633 trs:Range1Member trs:CompensatoryOnlyDamagesMember us-gaap:PendingLitigationMember us-gaap:AsbestosIssueMember 2020-03-31 0000842633 trs:Range2Member trs:CompensatoryOnlyDamagesMember us-gaap:PendingLitigationMember us-gaap:AsbestosIssueMember 2020-03-31 0000842633 srt:MinimumMember trs:Range3Member trs:PunitiveOnlyDamagesMember us-gaap:AsbestosIssueMember 2020-01-01 2020-03-31 0000842633 srt:MinimumMember trs:Range1Member trs:PunitiveOnlyDamagesMember us-gaap:AsbestosIssueMember 2020-01-01 2020-03-31 0000842633 srt:MaximumMember trs:Range1Member trs:PunitiveOnlyDamagesMember us-gaap:AsbestosIssueMember 2020-01-01 2020-03-31 0000842633 srt:MaximumMember trs:Range2Member trs:PunitiveOnlyDamagesMember us-gaap:AsbestosIssueMember 2020-01-01 2020-03-31 0000842633 srt:MinimumMember trs:Range2Member trs:PunitiveOnlyDamagesMember us-gaap:AsbestosIssueMember 2020-01-01 2020-03-31 0000842633 srt:MinimumMember trs:Range1Member trs:CompensatoryOnlyDamagesMember us-gaap:AsbestosIssueMember 2020-01-01 2020-03-31 0000842633 srt:MinimumMember trs:Range3Member trs:CompensatoryOnlyDamagesMember us-gaap:AsbestosIssueMember 2020-01-01 2020-03-31 0000842633 srt:MaximumMember trs:Range2Member trs:CompensatoryOnlyDamagesMember us-gaap:AsbestosIssueMember 2020-01-01 2020-03-31 0000842633 srt:MinimumMember trs:Range2Member trs:CompensatoryOnlyDamagesMember us-gaap:AsbestosIssueMember 2020-01-01 2020-03-31 0000842633 srt:MaximumMember trs:Range1Member trs:CompensatoryOnlyDamagesMember us-gaap:AsbestosIssueMember 2020-01-01 2020-03-31 0000842633 srt:MaximumMember trs:Range2Member trs:CompensatoryAndPunitiveDamagesMember us-gaap:AsbestosIssueMember 2020-01-01 2020-03-31 0000842633 srt:MaximumMember trs:Range1Member trs:CompensatoryAndPunitiveDamagesMember us-gaap:AsbestosIssueMember 2020-01-01 2020-03-31 0000842633 srt:MinimumMember trs:Range1Member trs:CompensatoryAndPunitiveDamagesMember us-gaap:AsbestosIssueMember 2020-01-01 2020-03-31 0000842633 srt:MinimumMember trs:Range3Member trs:CompensatoryAndPunitiveDamagesMember us-gaap:AsbestosIssueMember 2020-01-01 2020-03-31 0000842633 srt:MinimumMember trs:Range2Member trs:CompensatoryAndPunitiveDamagesMember us-gaap:AsbestosIssueMember 2020-01-01 2020-03-31 0000842633 us-gaap:OperatingSegmentsMember trs:SpecialtyProductsReportableSegmentMember 2019-01-01 2019-03-31 0000842633 us-gaap:OperatingSegmentsMember trs:PackagingReportableSegmentMember 2020-01-01 2020-03-31 0000842633 us-gaap:OperatingSegmentsMember trs:AerospaceDefenseReportableSegmentMember 2019-01-01 2019-03-31 0000842633 us-gaap:CorporateNonSegmentMember us-gaap:CorporateNonSegmentMember 2019-01-01 2019-03-31 0000842633 us-gaap:OperatingSegmentsMember trs:PackagingReportableSegmentMember 2019-01-01 2019-03-31 0000842633 us-gaap:CorporateNonSegmentMember us-gaap:CorporateNonSegmentMember 2020-01-01 2020-03-31 0000842633 us-gaap:OperatingSegmentsMember trs:AerospaceDefenseReportableSegmentMember 2020-01-01 2020-03-31 0000842633 us-gaap:OperatingSegmentsMember trs:SpecialtyProductsReportableSegmentMember 2020-01-01 2020-03-31 0000842633 srt:MinimumMember trs:TotalshareholderreturnmetricMember us-gaap:RestrictedStockUnitsRSUMember trs:Plan3Member 2020-01-01 2020-03-31 0000842633 trs:TotalshareholderreturnmetricMember us-gaap:RestrictedStockUnitsRSUMember trs:Plan3Member 2019-01-01 2019-12-31 0000842633 srt:MaximumMember trs:AveragestockpriceMember us-gaap:RestrictedStockUnitsRSUMember trs:Plan2Member 2020-01-01 2020-03-31 0000842633 srt:DirectorMember us-gaap:RestrictedStockUnitsRSUMember trs:Plan5Member 2020-01-01 2020-03-31 0000842633 us-gaap:RestrictedStockUnitsRSUMember trs:Plan2Member 2020-01-01 2020-03-31 0000842633 srt:MinimumMember trs:AveragestockpriceMember us-gaap:RestrictedStockUnitsRSUMember trs:Plan2Member 2020-01-01 2020-03-31 0000842633 us-gaap:RestrictedStockUnitsRSUMember trs:Plan1Member 2020-01-01 2020-03-31 0000842633 srt:MinimumMember trs:TotalshareholderreturnmetricMember us-gaap:RestrictedStockUnitsRSUMember trs:Plan8Member 2020-01-01 2020-03-31 0000842633 us-gaap:EmployeeStockOptionMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-01-01 2019-03-31 0000842633 srt:MaximumMember trs:TotalshareholderreturnmetricMember us-gaap:RestrictedStockUnitsRSUMember trs:Plan8Member 2020-01-01 2020-03-31 0000842633 us-gaap:RestrictedStockUnitsRSUMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2020-01-01 2020-03-31 0000842633 srt:MaximumMember trs:TotalshareholderreturnmetricMember us-gaap:RestrictedStockUnitsRSUMember trs:Plan3Member 2020-01-01 2020-03-31 0000842633 us-gaap:RestrictedStockUnitsRSUMember trs:Plan8Member 2020-01-01 2020-03-31 0000842633 us-gaap:RestrictedStockUnitsRSUMember 2020-01-01 2020-03-31 0000842633 srt:MaximumMember trs:A3YearEpsCagrMetricMember us-gaap:RestrictedStockUnitsRSUMember trs:Plan8Member 2020-01-01 2020-03-31 0000842633 us-gaap:RestrictedStockUnitsRSUMember trs:Plan5Member 2020-01-01 2020-03-31 0000842633 us-gaap:RestrictedStockUnitsRSUMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-01-01 2019-03-31 0000842633 us-gaap:EmployeeStockOptionMember 2020-03-31 0000842633 trs:TotalshareholderreturnmetricMember us-gaap:RestrictedStockUnitsRSUMember trs:Plan3Member 2020-01-01 2020-03-31 0000842633 us-gaap:EmployeeStockOptionMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2020-01-01 2020-03-31 0000842633 us-gaap:RestrictedStockUnitsRSUMember 2020-03-31 0000842633 us-gaap:RestrictedStockUnitsRSUMember 2019-12-31 0000842633 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-03-31 0000842633 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-03-31 0000842633 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-03-31 0000842633 trs:A10b51sharerepurchaseprogramMember 2020-03-31 0000842633 trs:A10b51sharerepurchaseprogramMember 2020-01-01 2020-03-31 0000842633 trs:A10b51sharerepurchaseprogramMember 2019-01-01 2019-03-31 0000842633 trs:A10b51sharerepurchaseprogramMember 2015-12-31 0000842633 us-gaap:PensionPlansDefinedBenefitMember 2019-01-01 2019-03-31 0000842633 us-gaap:PensionPlansDefinedBenefitMember 2020-01-01 2020-03-31 0000842633 us-gaap:PensionPlansDefinedBenefitMember 2020-03-31 0000842633 us-gaap:AccumulatedTranslationAdjustmentMember 2019-01-01 2019-03-31 0000842633 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-03-31 0000842633 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-03-31 0000842633 trs:AccumulatedNetGainLossfromHedgesAttributabletoParentMember 2019-01-01 2019-03-31 0000842633 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-31 0000842633 trs:AccumulatedNetGainLossfromHedgesAttributabletoParentMember 2018-12-31 0000842633 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 0000842633 us-gaap:AccumulatedTranslationAdjustmentMember 2019-03-31 0000842633 trs:AccumulatedNetGainLossfromHedgesAttributabletoParentMember 2019-03-31 0000842633 trs:AccumulatedNetGainLossfromHedgesAttributabletoParentMember 2019-12-31 0000842633 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-01-01 2020-03-31 0000842633 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-03-31 0000842633 us-gaap:AccumulatedTranslationAdjustmentMember 2019-12-31 0000842633 us-gaap:AccumulatedTranslationAdjustmentMember 2020-01-01 2020-03-31 0000842633 trs:AccumulatedNetGainLossfromHedgesAttributabletoParentMember 2020-03-31 0000842633 trs:AccumulatedNetGainLossfromHedgesAttributabletoParentMember 2020-01-01 2020-03-31 0000842633 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-12-31 0000842633 us-gaap:AccumulatedTranslationAdjustmentMember 2020-03-31 0000842633 trs:RapakMember us-gaap:SubsequentEventMember 2020-04-17 0000842633 trs:RapakMember 2019-01-01 2019-12-31 trs:claimants iso4217:USD xbrli:shares xbrli:shares trs:cases iso4217:USD utreg:Rate xbrli:pure

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON D.C. 20549

FORM 10-Q



(Mark One)
☒	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended		March 31, 2020
Or
☐	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Transition Period from to .

Commission file number 001-10716

TRIMAS CORPORATION

(Exact name of registrant as specified in its charter)



Delaware		38-2687639
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

38505 Woodward Avenue, Suite 200

Bloomfield Hills, Michigan 48304

(Address of principal executive offices, including zip code)

(248) 631-5450

(Registrant's telephone number, including area code)



Title of each class	Trading symbol(s)	Name of exchange on which registered
Common stock, $0.01 par value	TRS	The NASDAQ Global Market LLC

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐.

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.



Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 22, 2020, the number of outstanding shares of the Registrant's common stock, $0.01 par value, was 43,409,552 shares.

Table of Contents

TriMas Corporation

Index



Part I.	Financial Information

		Forward-Looking Statements	2

	Item 1.	Consolidated Financial Statements	3

		Consolidated Balance Sheet as of March 31, 2020 and December 31, 2019	3

		Consolidated Statement of Income for the Three Months Ended March 31, 2020 and 2019	4

		Consolidated Statement of Comprehensive Income for the Three Months Ended March 31, 2020 and 2019	5

		Consolidated Statement of Cash Flows for the Three Months Ended March 31, 2020 and 2019	6

		Consolidated Statement of Shareholders' Equity for the Three Months Ended March 31, 2020 and 2019	7

		Notes to Consolidated Financial Statements	8

	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	24

	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	37

	Item 4.	Controls and Procedures	37

Part II.	Other Information

	Item 1.	Legal Proceedings	38

	Item 1A.	Risk Factors	38

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	39

	Item 3.	Defaults Upon Senior Securities	39

	Item 4.	Mine Safety Disclosures	39

	Item 5.	Other Information	39

	Item 6.	Exhibits	40

	Signatures		41

Table of Contents

Forward-Looking Statements

This report may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 about our financial condition, results of operations and business. These forward-looking statements can be identified by the use of forward-looking words, such as “may,” “could,” “should,” “estimate,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “target,” “plan” or other comparable words, or by discussions of strategy that may involve risks and uncertainties.

These forward-looking statements are subject to numerous assumptions, risks and uncertainties which could materially affect our business, financial condition or future results including, but not limited to: the severity and duration of the ongoing corona virus (“COVID-19”) pandemic on our operations, customers and suppliers, as well as related actions taken by governmental authorities and other third parties in response, each of which is uncertain, rapidly changing and difficult to predict; general economic and currency conditions; material and energy costs; risks and uncertainties associated with intangible assets, including goodwill or other intangible asset impairment charges; competitive factors; future trends; our ability to realize our business strategies; our ability to identify attractive acquisition candidates, successfully integrate acquired operations or realize the intended benefits of such acquisitions; information technology and other cyber-related risks; the performance of our subcontractors and suppliers; supply constraints; market demand; intellectual property factors; litigation; government and regulatory actions, including, without limitation, the impact of tariffs, quotas and surcharges; our leverage; liabilities imposed by our debt instruments; labor disputes; changes to fiscal and tax policies; contingent liabilities relating to acquisition activities; the disruption of operations from catastrophic or extraordinary events, including natural disasters or public health crises; the potential impact of Brexit; tax considerations relating to the Cequent spin-off; our future prospects; and other risks that are discussed in Part I, Item 1A, "Risk Factors," in our Annual Report on Form 10-K for the year ended December 31, 2019 and elsewhere in this report. The risks described in our Annual Report on Form 10-K and elsewhere in this report are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deemed to be immaterial also may materially adversely affect our business, financial position and results of operations or cash flows.

The cautionary statements set forth above should be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. We caution readers not to place undue reliance on the statements, which speak only as of the date of this report. We do not undertake any obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statement to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events, except as required by law.

We disclose important factors that could cause our actual results to differ materially from our expectations implied by our forward-looking statements under Part I, Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations," and elsewhere in this report. These cautionary statements qualify all forward-looking statements attributed to us or persons acting on our behalf. When we indicate that an event, condition or circumstance could or would have an adverse effect on us, we mean to include effects upon our business, financial and other conditions, results of operations, prospects and ability to service our debt.

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

TriMas Corporation

Consolidated Balance Sheet

(Dollars in thousands)



	March 31, 2020			December 31, 2019
Assets	(unaudited)
Current assets:
Cash and cash equivalents	$	206,110		$	172,470
Receivables, net of reserves of approximately $2.4 million and $2.1 million as of March 31, 2020 and December 31, 2019, respectively	122,580			108,860
Inventories	140,420			132,660
Prepaid expenses and other current assets	16,230			20,050
Total current assets	485,340			434,040
Property and equipment, net	208,440			214,330
Operating lease right-of-use assets	29,490			27,850
Goodwill	375,670			334,640
Other intangibles, net	193,260			161,390
Deferred income taxes	3,630			500
Other assets	24,590			19,950
Total assets	$	1,320,420		$	1,192,700
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable	$	59,460		$	72,670
Accrued liabilities	39,660			42,020
Operating lease liabilities, current portion	5,380			5,100
Total current liabilities	104,500			119,790
Long-term debt, net	444,980			294,690
Operating lease liabilities	24,440			23,100
Deferred income taxes	32,820			16,830
Other long-term liabilities	38,220			40,810
Total liabilities	644,960			495,220
Preferred stock, $0.01 par: Authorized 100,000,000 shares; Issued and outstanding: None	—			—
Common stock, $0.01 par: Authorized 400,000,000 shares; Issued and outstanding: 43,409,552 shares at March 31, 2020 and 44,562,679 shares at December 31, 2019	430			450
Paid-in capital	751,440			782,880
Accumulated deficit	(66,730		)	(79,850		)
Accumulated other comprehensive loss	(9,680		)	(6,000		)
Total shareholders' equity	675,460			697,480
Total liabilities and shareholders' equity	$	1,320,420		$	1,192,700

The accompanying notes are an integral part of these financial statements.

Table of Contents

TriMas Corporation

Consolidated Statement of Income

(Unaudited—dollars in thousands, except for per share amounts)



	Three months ended March 31,
	2020			2019
Net sales	$	182,790		$	173,370
Cost of sales	(136,420		)	(126,580		)
Gross profit	46,370			46,790
Selling, general and administrative expenses	(26,540		)	(26,990		)
Operating profit	19,830			19,800
Other expense, net:
Interest expense	(3,580		)	(3,440		)
Other expense, net	(80		)	(570		)
Other expense, net	(3,660		)	(4,010		)
Income before income tax expense	16,170			15,790
Income tax expense	(3,050		)	(1,240		)
Income from continuing operations	13,120			14,550
Income from discontinued operations, net of tax	—			4,540
Net income	$	13,120		$	19,090
Basic earnings per share:
Continuing operations	$	0.30		$	0.32
Discontinued operations	—			0.10
Net income per share	$	0.30		$	0.42
Weighted average common shares—basic	44,201,053			45,578,815
Diluted earnings per share:
Continuing operations	$	0.30		$	0.32
Discontinued operations	—			0.10
Net income per share	$	0.30		$	0.42
Weighted average common shares—diluted	44,470,472			45,992,182

The accompanying notes are an integral part of these financial statements.

Table of Contents

TriMas Corporation

Consolidated Statement of Comprehensive Income

(Unaudited—dollars in thousands)



	Three months ended March 31,
	2020			2019
Net income	$	13,120		$	19,090
Other comprehensive income (loss):
Defined benefit plans (Note 16)	150			100
Foreign currency translation	(8,260		)	700
Derivative instruments (Note 10)	4,430			2,220
Total other comprehensive income (loss)	(3,680		)	3,020
Total comprehensive income	$	9,440		$	22,110

The accompanying notes are an integral part of these financial statements.

Table of Contents

TriMas Corporation

Consolidated Statement of Cash Flows

(Unaudited—dollars in thousands)



	Three months ended March 31,
	2020			2019
Cash Flows from Operating Activities:
Net income	$	13,120		$	19,090
Income from discontinued operations	—			4,540
Income from continuing operations	13,120			14,550
Adjustments to reconcile income from continuing operations to net cash provided by operating activities, net of acquisition impact:
Loss on dispositions of assets	50			10
Depreciation	6,660			5,690
Amortization of intangible assets	4,850			4,630
Amortization of debt issue costs	290			280
Deferred income taxes	2,570			2,210
Non-cash compensation expense	1,940			1,320
Increase in receivables	(10,610		)	(4,530		)
Increase in inventories	(110		)	(420		)
Increase in prepaid expenses and other assets	(110		)	(860		)
Decrease in accounts payable and accrued liabilities	(14,780		)	(7,980		)
Other operating activities	(470		)	150
Net cash provided by operating activities of continuing operations	3,400			15,050
Net cash used for operating activities of discontinued operations	—			(6,970		)
Net cash provided by operating activities, net of acquisition impact	3,400			8,080
Cash Flows from Investing Activities:
Capital expenditures	(3,930		)	(6,230		)
Acquisition of businesses, net of cash acquired	(84,270		)	(22,270		)
Net proceeds from disposition of business, property and equipment	1,880			—
Net cash used for investing activities of continuing operations	(86,320		)	(28,500		)
Net cash used for investing activities of discontinued operations	—			(410		)
Net cash used for investing activities	(86,320		)	(28,910		)
Cash Flows from Financing Activities:
Proceeds from borrowings on revolving credit facilities	198,290			26,250
Repayments of borrowings on revolving credit facilities	(48,330		)	(25,870		)
Shares surrendered upon exercise and vesting of equity awards to cover taxes	(1,830		)	(2,620		)
Payments to purchase common stock	(31,570		)	(670		)
Net cash provided by (used for) financing activities of continuing operations	116,560			(2,910		)
Net cash provided by financing activities of discontinued operations	—			—
Net cash provided by (used for) financing activities	116,560			(2,910		)
Cash and Cash Equivalents:
Increase (decrease) for the period	33,640			(23,740		)
At beginning of period	172,470			108,150
At end of period	$	206,110		$	84,410
Supplemental disclosure of cash flow information:
Cash paid for interest	$	370		$	300
Cash paid for taxes	$	1,850		$	1,870

The accompanying notes are an integral part of these financial statements.

Table of Contents

TriMas Corporation

Consolidated Statement of Shareholders' Equity

Three Months Ended March 31, 2020 and 2019

(Unaudited—dollars in thousands)



	Common Stock			Paid-in Capital			Accumulated Deficit			Accumulated Other Comprehensive Loss			Total
Balances, December 31, 2019	$	450		$	782,880		$	(79,850	)	$	(6,000	)	$	697,480
Net income	—			—			13,120			—			13,120
Other comprehensive loss	—			—			—			(3,680		)	(3,680		)
Purchase of common stock	(20		)	(31,550		)	—			—			(31,570		)
Shares surrendered upon exercise and vesting of equity awards to cover taxes	—			(1,830		)	—			—			(1,830		)
Non-cash compensation expense	—			1,940			—			—			1,940
Balances, March 31, 2020	$	430		$	751,440		$	(66,730	)	$	(9,680	)	$	675,460



	Common Stock		Paid-in Capital			Accumulated Deficit			Accumulated Other Comprehensive Loss			Total
Balances, December 31, 2018	$	460	$	816,500		$	(179,660	)	$	(16,850	)	$	620,450
Net income	—		—			19,090			—			19,090
Other comprehensive income	—		—			—			3,020			3,020
Purchase of common stock	—		(670		)	—			—			(670		)
Shares surrendered upon exercise and vesting of equity awards to cover taxes	—		(2,620		)	—			—			(2,620		)
Non-cash compensation expense	—		1,320			—			—			1,320
Impact of accounting standards adoption	—		—			1,190			(1,270		)	(80		)
Balances, March 31, 2019	$	460	$	814,530		$	(159,380	)	$	(15,100	)	$	640,510

The accompanying notes are an integral part of these financial statements.

Table of Contents

TRIMAS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. Basis of Presentation

TriMas Corporation ("TriMas" or the "Company"), and its consolidated subsidiaries, designs, engineers and manufactures innovative products under leading brand names for customers primarily in the consumer products, aerospace & defense, and industrial markets.

In the first quarter of 2020, TriMas began reporting its machined components operations, located in Stanton, California and Tolleson, Arizona, as part of its Aerospace segment. The operations were previously reported in the Specialty Products segment. The move of these operations into TriMas Aerospace facilitates a more rapid approach to achieving anticipated synergies from the recent RSA Engineered Products ("RSA") acquisition, allowing the Company to better leverage the machining competencies and resources across its aerospace businesses. See Note 13, "Segment Information," for further information on each of the Company's reportable segments.

In addition, on December 20, 2019, the Company completed the sale of its Lamons division (“Lamons”), a transaction entered into with an investment fund sponsored by First Reserve on November 1, 2019. Lamons was sold for approximately $135 million in cash. The financial results of Lamons were previously reported within the Company's Specialty Products segment, and are presented as discontinued operations for all periods presented in the financial statements attached hereto.

The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries and, in the opinion of management, contain all adjustments, including adjustments of a normal and recurring nature, necessary for a fair presentation of financial position and results of operations. The preparation of financial statements also requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities. Actual results may differ from such estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to the ongoing outbreak of a new strain of the coronavirus (“COVID-19”). While the full impact of COVID-19 is unknown and cannot be reasonably estimated at this time, the Company has made appropriate accounting estimates based on the facts and circumstances available as of the reporting date. To the extent there are differences between these estimates and actual results, the Company's consolidated financial statements may be materially affected.

Results of operations for interim periods are not necessarily indicative of results for the full year, and certain prior year amounts have been reclassified to conform to current year presentation. The accompanying consolidated financial statements and notes thereto should be read in conjunction with the Company's 2019 Annual Report on Form 10-K.

2. New Accounting Pronouncements

Recently Issued Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" ("ASU 2019-12"), which removes specific exceptions to the general principles in Topic 740, simplifies the accounting for income taxes and provides clarification of certain aspects of current guidance. ASU 2019-12 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020, with early adoption permitted. The Company is in the process of assessing the impact of adoption on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20)" ("ASU 2018-14"), which modifies the disclosure requirements for employers who sponsor defined benefit pension or other postretirement plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020, with early adoption permitted. ASU 2018-14 is to be applied retrospectively to all periods presented. The Company is in the process of assessing the impact of adoption on its consolidated financial statements.

Recently Adopted Accounting Pronouncements

In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"), which simplifies the test for goodwill impairment by eliminating the requirement to perform a hypothetical purchase price allocation to measure the amount of goodwill impairment. The Company adopted ASU 2017-04 on January 1, 2020. The adoption of ASU 2017-04 did not have a material impact on the Company's consolidated financial statements.

Table of Contents

TRIMAS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

3. Discontinued Operations

On December 20, 2019, the Company completed the sale of Lamons to two wholly-owned subsidiaries of an investment fund sponsored by First Reserve, pursuant to an Asset and Stock Purchase Agreement dated as of November 1, 2019 (the “Purchase Agreement”), for a purchase price of $135 million, subject to certain adjustments as set forth in the Purchase Agreement. The transaction was finalized in the first quarter of 2020 and resulted in a $1.8 million payment to the Company.

The Company's historical results for Lamons are shown in the accompanying consolidated statement of income as a discontinued operation. Results of discontinued operations are summarized as follows (dollars in thousands):



	Three months ended March 31,
	2019
Net sales	$	47,920
Cost of sales	(34,890		)
Gross profit	13,030
Selling, general and administrative expenses	(6,980		)
Operating profit	6,050
Other expense, net	(110		)
Income from discontinued operations, before income taxes	5,940
Income tax expense	(1,400		)
Income from discontinued operations, net of tax	$	4,540

4. Revenue

The following table presents the Company’s disaggregated net sales by primary market served (dollars in thousands):



	Three months ended March 31,
Customer Markets	2020		2019
Consumer Products	$	76,270	$	67,490
Aerospace & Defense	48,920		45,580
Industrial	57,600		60,300
Total net sales	$	182,790	$	173,370

The Company’s Packaging segment earns revenues from the consumer products (comprised of the beauty and personal care, home care, food and beverage, and health, including pharmaceutical and nutraceutical submarkets) and industrial markets. The Aerospace segment earns revenues from the aerospace & defense market (comprised of commercial, regional and business jet and military submarkets). The Specialty Products segment earns revenues from a variety of submarkets within the industrial market.

5. Acquisitions

2020 Acquisitions

On February 27, 2020, the Company acquired RSA Engineered Products, a manufacturer of complex, highly-engineered and proprietary ducting, connectors and related products for air management systems used in aerospace and defense applications, for an aggregate amount of approximately $84.3 million, net of cash acquired, subject to normal course adjustments. The fair value of assets acquired and liabilities assumed included approximately $80.2 million of goodwill and intangible assets, $10.1 million of net working capital, $2.1 million of property and equipment, and $8.7 million of net deferred tax liabilities. RSA, which is reported in the Company's Aerospace segment, is located in Simi Valley, California and historically generated approximately $30 million in annual revenue.

Table of Contents

TRIMAS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

In connection with the acquisition of RSA, the Company recorded approximately $0.5 million of non-cash purchase accounting-related expenses during the three months ended March 31, 2020 within cost of sales related to the step-up in value and subsequent sale of inventory.

2019 Acquisitions

In April 2019, the Company acquired Taplast S.p.A. ("Taplast"), a designer and manufacturer of dispensers, closures and containers for the beauty and personal care, home care, and food and beverage packaging markets, for an aggregate amount of approximately $44.7 million, net of cash acquired. With manufacturing locations in both Italy and Slovakia, Taplast serves markets in Europe and North America and historically generated approximately $32 million in annual revenue. Taplast is reported in the Company's Packaging segment.

In January 2019, the Company acquired Plastic Srl, a manufacturer of single-bodied and assembled polymeric caps and closures for use in home care products, for an aggregate amount of approximately $22.4 million, net of cash acquired. Located in Italy, Plastic Srl serves the home care market throughout Italy and other European countries and historically generated approximately $12 million in annual revenue. Plastic Srl is reported in the Company's Packaging segment.

In connection with the acquisition of Plastic Srl, the Company recorded approximately $1.0 million of non-cash purchase accounting-related expenses during the three months ended March 31, 2019, of which approximately $0.9 million was recognized within selling, general and administrative expenses, primarily related to the write-off of the Plastic Srl trade name acquired that will not be used. In addition, approximately $0.1 million was recognized during the three months ended March 31, 2019, within cost of sales related to the step-up in value and subsequent sale of inventory.

6. Goodwill and Other Intangible Assets

The Company assesses goodwill and other intangible assets for impairment on an annual basis as of October 1, and more frequently if there are changes in the business climate or as a result of a triggering event taking place. The Company considered the current and potential future market and economic impacts that may result from the COVID-19 crisis, including its impact on the Company's reporting units, and also assessed the change in its market capitalization during the first quarter of 2020. Based on this review, and after consideration of the historical excess in fair value over carrying value within the Company's reporting units, the Company determined that there was not a triggering event which would require an interim impairment test to be performed.

In the first quarter of 2020, the Company began reporting its machined products operations within the Aerospace segment. These operations were previously reported in the Company's Specialty Products segment. As a result of the reporting structure change, goodwill of approximately $12.7 million was reassigned from the Specialty Products segment to the Aerospace segment.

Changes in the carrying amount of goodwill for the three months ended March 31, 2020 are summarized as follows (dollars in thousands):



	Packaging			Aerospace		Specialty Products			Total
Balance, December 31, 2019	$	181,650		$	133,690	$	19,300		$	334,640
Goodwill from acquisitions	—			43,260		—			43,260
Goodwill reassigned in segment realignment	—			12,740		(12,740		)	—
Foreign currency translation and other	(2,230		)	—		—			(2,230		)
Balance, March 31, 2020	$	179,420		$	189,690	$	6,560		$	375,670

Table of Contents

TRIMAS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

The Company amortizes its other intangible assets over periods ranging from one to 30 years. The gross carrying amounts and accumulated amortization of the Company's other intangibles are summarized below (dollars in thousands):



	As of March 31, 2020					As of December 31, 2019
Intangible Category by Useful Life	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Finite-lived intangible assets:
Customer relationships, 5 – 12 years	$	100,000	$	(51,740	)	$	73,860	$	(49,910	)
Customer relationships, 15 – 25 years	122,280		(57,620		)	122,280		(56,010		)
Total customer relationships	222,280		(109,360		)	196,140		(105,920		)
Technology and other, 1 – 15 years	54,060		(30,480		)	52,430		(29,790		)
Technology and other, 17 – 30 years	43,300		(38,120		)	43,300		(37,620		)
Total technology and other	97,360		(68,600		)	95,730		(67,410		)
Indefinite-lived intangible assets:
Trademark/Trade names	51,580		—			42,850		—
Total other intangible assets	$	371,220	$	(177,960	)	$	334,720	$	(173,330	)

Amortization expense related to intangible assets as included in the accompanying consolidated statement of income is summarized as follows (dollars in thousands):



	Three months ended March 31,
	2020		2019
Technology and other, included in cost of sales	$	1,210	$	1,200
Customer relationships, included in selling, general and administrative expenses	3,640		3,430
Total amortization expense	$	4,850	$	4,630

7. Inventories

Inventories consist of the following components (dollars in thousands):



	March 31, 2020		December 31, 2019
Finished goods	$	72,880	$	68,350
Work in process	33,930		30,560
Raw materials	33,610		33,750
Total inventories	$	140,420	$	132,660

Table of Contents

TRIMAS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

8. Property and Equipment, Net

Property and equipment consists of the following components (dollars in thousands):



	March 31, 2020		December 31, 2019
Land and land improvements	$	19,000	$	19,110
Buildings	84,930		84,880
Machinery and equipment	323,120		326,990
	427,050		430,980
Less: Accumulated depreciation	218,610		216,650
Property and equipment, net	$	208,440	$	214,330

Depreciation expense as included in the accompanying consolidated statement of income is as follows (dollars in thousands):



	Three months ended March 31,
	2020		2019
Depreciation expense, included in cost of sales	$	6,360	$	5,430
Depreciation expense, included in selling, general and administrative expenses	300		260
Total depreciation expense	$	6,660	$	5,690

9. Long-term Debt

The Company's long-term debt consists of the following (dollars in thousands):



	March 31, 2020			December 31, 2019
4.875% Senior Notes due October 2025	$	300,000		$	300,000
Credit Agreement	150,000			—
Debt issuance costs	(5,020		)	(5,310		)
Long-term debt, net	$	444,980		$	294,690

Senior Notes

In September 2017, the Company issued $300.0 million aggregate principal amount of 4.875% senior notes due October 15, 2025 ("Senior Notes") at par value in a private placement under Rule 144A of the Securities Act of 1933, as amended. The Senior Notes accrue interest at a rate of 4.875% per annum, payable semi-annually in arrears on April 15 and October 15, commencing on April 15, 2018. The payment of principal and interest is jointly and severally guaranteed, on a senior unsecured basis, by certain subsidiaries of the Company (each a "Guarantor" and collectively the "Guarantors"). The Senior Notes are pari passu in right of payment with all existing and future senior indebtedness and subordinated to all existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness.

Table of Contents

TRIMAS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Prior to October 15, 2020, the Company may redeem up to 35% of the principal amount of the Senior Notes at a redemption price of 104.875% of the principal amount, plus accrued and unpaid interest, if any, to the redemption date, with the net cash proceeds of one or more equity offerings provided that each such redemption occurs within 90 days of the date of closing of each such equity offering. In addition, the Company may redeem all or part of the Senior Notes at a redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date, plus a "make whole" premium. On or after October 15, 2020, the Company may redeem all or part of the Senior Notes at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and unpaid interest, if any, to the redemption date, if redeemed during the twelve-month period beginning on October 15 of the years indicated below:



Year	Percentage
2020	102.438	%
2021	101.219	%
2022 and thereafter	100.000	%

Credit Agreement

The Company is a party to a credit agreement ("Credit Agreement") consisting of a $300.0 million senior secured revolving credit facility, which permits borrowings denominated in specific foreign currencies, subject to a $125.0 million sub limit, matures on September 20, 2022 and is subject to interest at London Interbank Offered Rate ("LIBOR") plus 1.50%. The interest rate spread is based upon the leverage ratio, as defined, as of the most recent determination date.

The Credit Agreement also provides incremental revolving credit facility commitments in an amount not to exceed the greater of $200.0 million and an amount such that, after giving effect to such incremental commitments and the incurrence of any other indebtedness substantially simultaneously with the making of such commitments, the senior secured net leverage ratio, as defined, is no greater than 3.00 to 1.00. The terms and conditions of any incremental revolving credit facility commitments must be no more favorable than the existing credit facility.

The Company's revolving credit facility allows for the issuance of letters of credit, not to exceed $40.0 million in aggregate. At March 31, 2020, the Company had $150.0 million outstanding under its revolving credit facility and had approximately $131.2 million potentially available after giving effect to approximately $18.8 million of letters of credit issued and outstanding. At December 31, 2019, the Company had no amounts outstanding under its revolving credit facility and had approximately $283.9 million potentially available after giving effect to approximately $16.1 million of letters of credit issued and outstanding. The Company's borrowing capacity was not reduced by leverage restrictions contained in the Credit Agreement as of March 31, 2020 and December 31, 2019. In March 2020, the Company drew $150 million on its revolving credit facility to defend against potential uncertainty or liquidity issues in the financial markets as a result of the COVID-19 crisis.

The debt under the Credit Agreement is an obligation of the Company and certain of its domestic subsidiaries and is secured by substantially all of the assets of such parties. Borrowings under the $125.0 million (equivalent) foreign currency sub limit of the $300.0 million senior secured revolving credit facility are secured by a cross-guarantee amongst, and a pledge of the assets of, the foreign subsidiary borrowers that are a party to the agreement. The Credit Agreement also contains various negative and affirmative covenants and other requirements affecting the Company and its subsidiaries, including the ability, subject to certain exceptions and limitations, to incur debt, liens, mergers, investments, loans, advances, guarantee obligations, acquisitions, assets dispositions, sale-leaseback transactions, hedging agreements, dividends and other restricted payments, transactions with affiliates, restrictive agreements and amendments to charters, bylaws, and other material documents. The terms of the Credit Agreement also require the Company and its restricted subsidiaries to meet certain restrictive financial covenants and ratios computed quarterly, including a maximum total net leverage ratio (total consolidated indebtedness plus outstanding amounts under the accounts receivable securitization facility, less the aggregate amount of certain unrestricted cash and unrestricted permitted investments, as defined, over consolidated EBITDA, as defined), a maximum senior secured net leverage ratio (total consolidated senior secured indebtedness, less the aggregate amount of certain unrestricted cash and unrestricted permitted investments, as defined, over consolidated EBITDA, as defined) and a minimum interest expense coverage ratio (consolidated EBITDA, as defined, over the sum of consolidated cash interest expense, as defined, and preferred dividends, as defined). At March 31, 2020, the Company was in compliance with its financial covenants contained in the Credit Agreement.

Table of Contents

TRIMAS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Fair Value of Debt

The valuations of the Senior Notes and other debt were determined based on Level 2 inputs under the fair value hierarchy, as defined. The carrying amounts and fair values were as follows (dollars in thousands):



	March 31, 2020				December 31, 2019
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Senior Notes	$	300,000	$	284,470	$	300,000	$	309,000
Revolving credit facility	150,000		150,000		—		—

10. Derivative Instruments

Derivatives Designated as Hedging Instruments

In October 2018, the Company entered into cross-currency swap agreements to hedge its net investment in Euro-denominated assets against future volatility in the exchange rate between the U.S. dollar and the Euro. By doing so, the Company synthetically converted a portion of its U.S. dollar-based long-term debt into Euro-denominated long-term debt. The agreements have a five year tenor at notional amounts declining from $125.0 million to $75.0 million over the contract period. Under the terms of the swap agreements, the Company is to receive net interest payments at a fixed rate of approximately 2.9% of the notional amount. At inception, the cross-currency swaps were designated as net investment hedges.

As of March 31, 2020 and December 31, 2019, the fair value carrying amount of the Company's derivative instruments are recorded as follows (dollars in thousands):



		Asset / (Liability) Derivatives
Derivatives designated as hedging instruments	Balance Sheet Caption	March 31, 2020		December 31, 2019
Net Investment Hedges
Cross-currency swaps	Other assets	$	10,400	$	4,460

The following table summarizes the income recognized in accumulated other comprehensive income (loss) ("AOCI") on derivative contracts designated as hedging instruments as of March 31, 2020 and December 31, 2019, and the amounts reclassified from AOCI into earnings for the three months ended March 31, 2020 and 2019 (dollars in thousands):



	Amount of Income Recognized in AOCI on Derivative (Effective Portion, net of tax)					Amount of Income (Loss) Reclassified from AOCI into Earnings
						Three months ended March 31,
	As of March 31, 2020		As of December 31, 2019		Location of Income (Loss) Reclassified from AOCI into Earnings (Effective Portion)	2020		2019
Net Investment Hedges
Cross-currency swaps	$	8,660	$	4,230	Other income (expense), net	$	—	$	—

Over the next 12 months, the Company does not expect to reclassify any pre-tax deferred amounts from AOCI into earnings.

Table of Contents

TRIMAS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Derivatives Not Designated as Hedging Instruments

As of March 31, 2020, the Company was party to foreign currency exchange forward contracts to economically hedge changes in foreign currency rates with notional amounts of approximately $77.3 million. The Company uses foreign exchange contracts to mitigate the risk associated with fluctuations in currency rates impacting cash flows related to certain of its receivables, payables and intercompany transactions denominated in foreign currencies. The foreign exchange contracts primarily mitigate currency exposures between the U.S. dollar and the Euro, British pound and the Chinese yuan, and have various settlement dates through September 2020. These contracts are not designated as hedge instruments; therefore, gains and losses on these contracts are recognized each period directly into the consolidated statement of income.

The following table summarizes the effects of derivatives not designated as hedging instruments on the Company's consolidated statement of income (dollars in thousands):



		Amount of Loss Recognized in Earnings on Derivatives
		Three months ended March 31,
	Location of Loss Recognized in Earnings on Derivatives	2020			2019
Derivatives not designated as hedging instruments
Foreign exchange contracts	Other expense, net	$	(70	)	$	—

Fair Value of Derivatives

The fair value of the Company's derivatives are estimated using an income approach based on valuation techniques to convert future amounts to a single, discounted amount. Estimates of the fair value of the Company's cross-currency swaps and foreign exchange contracts use observable inputs such as interest rate yield curves and forward currency exchange rates. Fair value measurements and the fair value hierarchy level for the Company's assets and liabilities measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 are shown below (dollars in thousands):



Description	Frequency	Asset / (Liability)			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
March 31, 2020
Cross-currency swaps	Recurring	$	10,400		$	—	$	10,400		$	—
Foreign exchange contracts	Recurring	$	(790	)	$	—	$	(790	)	$	—
December 31, 2019
Cross-currency swaps	Recurring	$	4,460		$	—	$	4,460		$	—
Foreign exchange contracts	Recurring	$	(770	)	$	—	$	(770	)	$	—

11. Leases

The Company leases certain equipment and facilities under non-cancelable operating leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet; expense related to these leases is recognized on a straight-line basis over the lease term.

Table of Contents

TRIMAS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

The components of lease expense are as follows (dollars in thousands):



	Three Months Ended March 31, 2020		Three Months Ended March 31, 2019
Operating lease cost	$	1,650	$	1,520
Short-term, variable and other lease costs	310		240
Total lease cost	$	1,960	$	1,760

Maturities of lease liabilities are as follows (dollars in thousands):



Year ended December 31,	Operating Leases^(a)
2020 (excluding the three months ended March 31, 2020)	$	5,110
2021	6,100
2022	5,340
2023	4,530
2024	3,780
Thereafter	10,790
Total lease payments	35,650
Less: Imputed interest	(5,830		)
Present value of lease liabilities	$	29,820

__________________________


^(a)	The maturity table excludes cash flows associated with exited lease facilities. Liabilities for exited lease facilities are included in accrued liabilities and other long-term liabilities in the accompanying consolidated balance sheet.

The weighted-average remaining lease term of the Company's operating leases as of March 31, 2020 is approximately 6.6 years. The weighted-average discount rate as of March 31, 2020 is approximately 4.9%.

Cash paid for amounts included in the measurement of operating lease liabilities was approximately $1.7 million and $1.6 million during the three months ended March 31, 2020 and 2019, respectively, and is included in cash flows provided by operating activities in the consolidated statement of cash flows.

Right-of-use assets obtained in exchange for lease liabilities were approximately $2.9 million, primarily due to the acquisition of RSA, and $0.1 million during the three months ended March 31, 2020 and 2019, respectively.

Table of Contents

TRIMAS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

12. Commitments and Contingencies

Asbestos

As of March 31, 2020, the Company was a party to 348 pending cases involving an aggregate of 4,719 claims primarily alleging personal injury from exposure to asbestos containing materials formerly used in gaskets (both encapsulated and otherwise) manufactured or distributed by Lamons and certain other related subsidiaries for use primarily in the petrochemical, refining and exploration industries. The following chart summarizes the number of claims, number of claims filed, number of claims dismissed, number of claims settled, the average settlement amount per claim and the total defense costs, excluding amounts reimbursed under the Company's primary insurance, at the applicable date and for the applicable periods:



	Claims pending at beginning of period	Claims filed during period	Claims dismissed during period	Claims settled during period	Claims pending at end of period	Average settlement amount per claim during period		Total defense costs during period
Three Months Ended March 31, 2020	4,759	54	89	5	4,719	$	56,000	$	650,000
Fiscal Year Ended December 31, 2019	4,820	143	172	32	4,759	$	16,616	$	2,250,000

In addition, the Company acquired various companies to distribute its products that had distributed gaskets of other manufacturers prior to acquisition. The Company believes that many of its pending cases relate to locations at which none of its gaskets were distributed or used.

The Company may be subjected to significant additional asbestos-related claims in the future, the cost of settling cases in which product identification can be made may increase, and the Company may be subjected to further claims in respect of the former activities of its acquired gasket distributors. The Company is unable to make a meaningful statement concerning the monetary claims made in the asbestos cases given that, among other things, claims may be initially made in some jurisdictions without specifying the amount sought or by simply stating the requisite or maximum permissible monetary relief, and may be amended to alter the amount sought. The large majority of claims do not specify the amount sought. Of the 4,719 claims pending at March 31, 2020, 55 set forth specific amounts of damages (other than those stating the statutory minimum or maximum). At March 31, 2020, of the 55 claims that set forth specific amounts, there was one claim seeking more than $5 million for punitive damages. Below is a breakdown of the compensatory damages sought for those claims seeking specific amounts:

In addition, relatively few of the claims have reached the discovery stage and even fewer claims have gone past the discovery stage.

Total settlement costs (exclusive of defense costs) for all such cases, some of which were filed over 25 years ago, have been approximately $9.7 million. All relief sought in the asbestos cases is monetary in nature. To date, approximately 40% of the Company's costs related to settlement and defense of asbestos litigation have been covered by its primary insurance. Effective February 14, 2006, the Company entered into a coverage-in-place agreement with its first level excess carriers regarding the coverage to be provided to the Company for asbestos-related claims when the primary insurance is exhausted. The coverage-in-place agreement makes asbestos defense costs and indemnity insurance coverage available to the Company that might otherwise be disputed by the carriers and provides a methodology for the administration of such expenses. The Company's primary insurance exhausted in November 2018, and the Company will be solely responsible for defense costs and indemnity payments prior to the commencement of coverage under this agreement, the duration of which would be subject to the scope of damage awards and settlements paid.

Table of Contents

TRIMAS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Based on the settlements made to date and the number of claims dismissed or withdrawn for lack of product identification, the Company believes that the relief sought (when specified) does not bear a reasonable relationship to its potential liability. Based upon the Company's experience to date, including the trend in annual defense and settlement costs incurred to date, and other available information (including the availability of excess insurance), the Company does not believe these cases will have a material adverse effect on its financial position and results of operations or cash flows.

Claims and Litigation

The Company is subject to other claims and litigation in the ordinary course of business, but does not believe that any such claim or litigation will have a material adverse effect on its financial position and results of operations or cash flows.

13. Segment Information

TriMas reports its operations in three reportable segments: Packaging, Aerospace, and Specialty Products. Each of these segments has discrete financial information that is regularly evaluated by TriMas' president and chief executive officer (chief operating decision maker) in determining resource, personnel and capital allocation, as well as assessing strategy and performance. The Company utilizes its proprietary TriMas Business Model as a standardized set of processes to manage and drive results and strategy across its multi-industry businesses.

Within each of the Company's reportable segments, there are no individual products or product families for which reported net sales accounted for more than 10% of the Company's consolidated net sales. See below for more information regarding the types of products and services provided within each reportable segment:

Packaging – The Packaging segment, which consists primarily of the Rieke^®, Taplast and Stolz brands, develops and manufactures a broad array of dispensing products (such as foaming pumps, lotion and soap pumps, beverage dispensers, perfume sprayers, nasal sprayers and trigger sprayers), polymeric and steel caps and closures (such as food lids, flip-top closures, child resistance caps, drum closures and flexible spouts), and polymeric jar products for a variety of consumer products submarkets including, but not limited to, beauty and personal care, home care, food and beverage, and health (including pharmaceutical and nutraceutical), as well as the industrial market.

Aerospace – The Aerospace segment, which includes the Monogram Aerospace Fasteners^™, Allfast Fastening Systems^®, Mac Fasteners^™, RSA Engineered Products and Martinic Engineering^™ brands, develops, qualifies and manufactures highly-engineered, precision fasteners and machined products and assemblies to serve the aerospace and defense market.

Specialty Products – The Specialty Products segment, which includes the Norris Cylinder^™ and Arrow^® Engine brands, designs, manufactures and distributes highly-engineered steel cylinders, wellhead engines and compression systems for use within industrial markets.

Table of Contents

TRIMAS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Segment activity is as follows (dollars in thousands):



	Three months ended March 31,
	2020			2019
Net Sales
Packaging	$	100,050		$	88,840
Aerospace	48,920			45,580
Specialty Products	33,820			38,950
Total	$	182,790		$	173,370
Operating Profit (Loss)
Packaging	$	18,280		$	17,640
Aerospace	5,080			5,810
Specialty Products	3,430			4,700
Corporate	(6,960		)	(8,350		)
Total	$	19,830		$	19,800

14. Equity Awards

Stock Options

The Company did not grant any stock option awards during the three months ended March 31, 2020. Information related to stock options at March 31, 2020 is as follows:



	Number of Stock Options	Weighted Average Option Price		Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding at January 1, 2020	150,000	$	17.87
Granted	—	—
Exercised	—	—
Cancelled	—	—
Expired	—	—
Outstanding at March 31, 2020	150,000	$	17.87	6.3	$	784,500

As of March 31, 2020, 150,000 stock options outstanding were exercisable under the Company's long-term equity incentive plans. As of March 31, 2020, there was no unrecognized compensation cost related to stock options remaining.

The Company recognized no stock-based compensation expense related to stock options during the three months ended March 31, 2020 and approximately$0.1 million in the three months ended March 31, 2019. The stock-based compensation expense is included in selling, general and administrative expenses in the accompanying consolidated statement of income.

Table of Contents

TRIMAS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Restricted Stock Units

The Company awarded the following restricted stock units ("RSUs") during the three months ended March 31, 2020:


•	Granted 178,666 RSUs to certain employees, which are subject only to a service condition and vest ratably over three years so long as the employee remains with the Company; and


•	Granted 30,590 RSUs to its non-employee independent directors, which vest one year from date of grant so long as the director and/or Company does not terminate the director's service prior to the vesting date.


•	Issued 986 RSUs related to director fee deferrals during the three months ended March 31, 2020 as certain of the Company's directors elected to defer all or a portion of their directors fees and to receive the amount in Company common stock at a future date.

During the three months ended March 31, 2020, the Company awarded 113,146 performance-based RSUs to certain Company key employees which vest three years from the grant date as long as the employee remains with the Company. These awards are earned 50% based upon the Company's achievement of an earnings per share compound annual growth rate ("EPS CAGR") metric over a period beginning January 1, 2020 and ending December 31, 2022. The remaining 50% of the awards are earned based on the Company's total shareholder return ("TSR") relative to the TSR of the common stock of a pre-defined industry peer-group, measured over the performance period. TSR is calculated as the Company's average closing stock price for the 20 trading days at the end of the performance period plus Company dividends, divided by the Company's average closing stock price for the 20 trading days prior to the start of the performance period. The Company estimates the grant-date fair value subject to a market condition using a Monte Carlo simulation model, using the following weighted average assumptions: risk-free rate of 0.56% and annualized volatility of 26.2%. Depending on the performance achieved for these two metrics, the amount of shares earned, if any, can vary for each metric from 0% of the target award to a maximum of 200% of the target award.

In addition, the Company awarded 87,034 performance-based RSUs to certain Company key divisional employees which vest three years from the grant date as long as the employee remains with the Company. These awards are earned based upon the Company's stock price performance over the period from January 1, 2020 and ending December 31, 2022. The stock price achievement is calculated based on the Company's average closing stock price for each quarter end for the 20 trading days up to and including March 31, June 30, September 30, and December 31, 2022, respectively. The Company estimates the grant-date fair value subject to a market condition using a Monte Carlo simulation model, using the following weighted average assumptions: risk-free rate of 0.85% and annualized volatility of 25.2%. Depending on the performance achieved for this metric, the amount of shares earned if any, can vary from 0% of the target award to a maximum of 160% of the target award, although it automatically is earned at the target award level if the Company's stock price is equal to or greater than a specified stock price for either five consecutive trading days or 20 total trading days during the performance period.

During 2017, the Company awarded performance-based RSUs to certain Company key employees which were earned based upon the Company's TSR relative to the TSR of the common stock of a pre-defined industry peer-group and measured over a period beginning January 1, 2017 and ending on December 31, 2019. Depending on the performance achieved, the amount of shares earned could vary from 0% of the target award to a maximum of 200% of the target award. The Company attained 127.4% of the target, resulting in an increase of 27,567 shares during the three months ended March 31, 2020.

Table of Contents

TRIMAS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

Information related to RSUs at March 31, 2020 is as follows:



	Number of Unvested RSUs		Weighted Average Grant Date Fair Value		Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding at January 1, 2020	622,528		$	30.77
Granted	437,989		21.30
Vested	(172,496	)	27.86
Cancelled	(4,382	)	31.57
Outstanding at March 31, 2020	883,639		$	26.91	1.6	$	20,412,061

As of March 31, 2020, there was approximately $14.3 million of unrecognized compensation cost related to unvested RSUs that is expected to be recorded over a weighted average period of 2.4 years.

The Company recognized stock-based compensation expense related to RSUs of approximately $1.9 million and $1.3 million during the three months ended March 31, 2020 and 2019, respectively. The stock-based compensation expense is included in selling, general and administrative expenses in the accompanying consolidated statement of income.

15. Earnings per Share

Net income is divided by the weighted average number of common shares outstanding during the period to calculate basic earnings per share. Diluted earnings per share is calculated to give effect to stock options and RSUs. The following table summarizes the dilutive effect of RSUs and options to purchase common stock for the three months ended March 31, 2020 and 2019:



	Three months ended March 31,
	2020	2019
Weighted average common shares—basic	44,201,053	45,578,815
Dilutive effect of restricted stock units	217,074	333,020
Dilutive effect of stock options	52,345	80,347
Weighted average common shares—diluted	44,470,472	45,992,182

In March 2020, the Company announced its Board of Directors had authorized the Company to increase the purchase of its common stock up to $250 million in the aggregate. The initial authorization, approved in November 2015, authorized up to $50 million in the aggregate of its common stock. In the three months ended March 31, 2020, the Company purchased 1,253,650 shares of its outstanding common stock for approximately $31.6 million. During the three months ended March 31, 2019, the Company purchased 24,900 shares of its outstanding common stock for approximately $0.7 million.

Table of Contents

TRIMAS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

16. Defined Benefit Plans

Net periodic pension benefit costs for the Company's defined benefit pension plans cover certain foreign employees, union hourly employees and salaried employees. The components of net periodic pension cost are as follows (dollars in thousands):



	Pension Plans
	Three months ended March 31,
	2020			2019
Service costs	$	320		$	260
Interest costs	240			270
Expected return on plan assets	(370		)	(350		)
Amortization of net loss	220			140
Net periodic benefit cost	$	410		$	320

The service cost component of net periodic benefit cost is recorded in cost of goods sold and selling, general and administrative expenses, while non-service cost components are recorded in other income (expense), net in the accompanying consolidated statement of income.

The Company contributed approximately $0.5 million to its defined benefit pension plans during the three months ended March 31, 2020. The Company expects to contribute approximately $1.1 million to its defined benefit pension plans for the full year 2020.

Table of Contents

TRIMAS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

17. Other Comprehensive Income (Loss)

Changes in AOCI by component for the three months ended March 31, 2020 are summarized as follows, net of tax (dollars in thousands):



	Defined Benefit Plans			Derivative Instruments		Foreign Currency Translation			Total
Balance, December 31, 2019	$	(9,930	)	$	4,230	$	(300	)	$	(6,000	)
Net unrealized gains (losses) arising during the period ^(a)	—			4,430		(8,260		)	(3,830		)
Less: Net realized losses reclassified to net income	(150		)	—		—			(150		)
Net current-period other comprehensive income (loss)	150			4,430		(8,260		)	(3,680		)
Balance, March 31, 2020	$	(9,780	)	$	8,660	$	(8,560	)	$	(9,680	)

__________________________


^(a)	Derivative instruments, net of income tax of approximately $1.5 million. See Note 10, "Derivative Instruments," for further details.

Changes in AOCI by component for the three months ended March 31, 2019 are summarized as follows, net of tax (dollars in thousands):



	Defined Benefit Plans			Derivative Instruments			Foreign Currency Translation			Total
Balance, December 31, 2018	$	(7,200	)	$	940		$	(10,590	)	$	(16,850	)
Net unrealized gains arising during the period ^(a)	—			2,220			700			2,920
Less: Net realized losses reclassified to net income	(100		)	—			—			(100		)
Net current-period other comprehensive income	100			2,220			700			3,020
Reclassification of stranded tax effects	(1,260		)	(10		)	—			(1,270		)
Balance, March 31, 2019	$	(8,360	)	$	3,150		$	(9,890	)	$	(15,100	)

__________________________


^(a)	Derivative instruments, net of income tax of approximately $0.7 million. See Note 10, "Derivative Instruments," for further details.

18. Subsequent Events

On April 17, 2020, the Company paid approximately $11.4 million to complete the previously announced acquisition of certain bag-in-box product lines, related assets and the tradename Rapak® (collectively "Rapak") from Liqui-Box. Rapak generated approximately $30 million in net sales in 2019 and will be reported in TriMas' Packaging segment.

Table of Contents

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition contains forward-looking statements regarding industry outlook and our expectations regarding the performance of our business. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the risks and uncertainties described under the heading "Forward-Looking Statements," at the beginning of this report. Our actual results may differ materially from those contained in or implied by any forward-looking statements. You should read the following discussion together with the Company's reports on file with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2019.

Introduction

We are a diversified global manufacturer and provider of products for customers primarily in the consumer products, aerospace & defense and industrial markets. Our wide range of innovative product solutions are engineered and designed to solve application-specific challenges that our customers face. We believe our businesses share important and distinguishing characteristics, including: well-recognized and leading brand names in the focused markets we serve; innovative product technologies and features; customer approved processes and qualified products; established distribution networks; relatively low ongoing capital investment requirements; strong cash flow conversion and long-term growth opportunities. While the majority of our revenue is in the United States, we manufacture and supply products globally to a wide range of companies. We are principally engaged in three reportable segments: Packaging, Aerospace and Specialty Products.

In December 2019, we completed the sale of our Lamons division ("Lamons"), a manufacturer and distributor of industrial sealing, fastening and specialty products primarily used in the petrochemical and petroleum-refining industries, to two wholly-owned subsidiaries of an investment fund sponsored by First Reserve. The sale of Lamons was an important strategic step for TriMas, in streamlining our portfolio of businesses, as it significantly reduced our exposure to the oil and gas market and allowed us to further focus on the businesses reported in our Packaging and Aerospace segments and the markets they serve. We received net after-tax proceeds from the sale of approximately $110.9 million in 2019, subject to certain adjustments as set forth in the Purchase Agreement which were finalized in the first quarter of 2020, resulting in a $1.8 million payment to us. The financial results of Lamons were previously reported within our Specialty Products segment. The financial position, results of operations and cash flows of Lamons are reflected as discontinued operations for all periods presented through the date of disposition.

Key Factors Affecting Our Reported Results

Our businesses and results of operations depend upon general economic conditions. We serve customers in industries that are highly competitive, cyclical and that may be significantly impacted by changes in economic or geopolitical conditions.

Our first quarter 2020 consolidated results from operations were generally in line with our expectations, and fairly consistent with the results in first quarter 2019 except for the impact of acquisitions. While the coronavirus ("COVID-19") pandemic impacted our first quarter 2020 results, this impact is difficult to quantify. Our divisions were impacted at differing levels and times, beginning with our Asian facilities in late January, followed by our European (primarily Italy) and North American facilities in February and March. Our facilities experienced varying degrees of production inefficiencies, whether from short-term idling of production, increased absenteeism, and lower efficiency levels due to social distancing and other proactive protective measures to ensure the safety of our employees. We were able to attain expected consolidated operating profit levels as a result of robust demand for many of our Packaging segment's products, which help fight the spread of germs, which offset the impact of lower sales particularly in our Specialty Products segment. We do not expect to attain the previously expected growth rates and profit levels as we move forward into second quarter 2020, as the impacts of COVID-19 are expected to be much greater on our results of operations.

First quarter 2020 net sales increased approximately $9.4 million, or 5.4%, primarily as a result of acquisitions, which added $10.5 million during the quarter. Organic sales growth within each of the primary markets in our Packaging segment was more than offset by lower sales of industrial cylinder and upstream oil and gas-related products in our Specialty Products segment.

The most significant drivers of change in results of operations compared with first quarter 2019 were the impact of our two recent acquisitions, lower customer demand and further weakness in the oil & gas market within our Specialty Products segment, and an increase in our effective tax rate.

We acquired Taplast S.p.A. ("Taplast") in April 2019. Taplast is a designer and manufacturer of dispensers, closures and containers for the beauty and personal care, home care, and food and beverage packaging markets. Taplast contributed approximately $7.5 million of net sales during first quarter 2020 within our Packaging segment. Our Taplast acquisition provides opportunities for future growth, as well as additional manufacturing and engineering capacity, in the European market. While Taplast was accretive to first quarter 2020 operating profit dollars, its relative contribution at a lower margin reduced the Packaging segment's operating profit margin overall. We expect, over time, to fully integrate this acquisition utilizing the TriMas Business Model ("TBM"), achieving planned synergies and increase margins over time.

Table of Contents

In February 2020, we completed the acquisition of RSA Engineered Products ("RSA"), a provider of highly-engineered and proprietary components for air management systems used in critical flight applications, for an aggregate amount of approximately $84.3 million, net of cash acquired. RSA is located in Simi Valley, California and designs, engineers and manufactures highly-engineered components, including air ducting products, connectors and flexible joints, predominantly used in aerospace and defense engine bleed air, anti-icing and environmental control system applications. RSA contributed approximately $3.0 million of net sales during the quarter within our Aerospace segment.

In addition to the impact of acquisitions, our first quarter 2020 net sales and operating profit declined from first quarter 2019 due to decreased customer demand for our cylinders used in construction and heating, ventilating and air conditioning ("HVAC") applications and for engines, compressors and related parts used in upstream oil and gas applications, all within our Specialty Products segment.

Our effective income tax rate for first quarter 2020 and 2019 was 18.9% and 7.9%, respectively. The increase in the rate was primarily a result of discrete tax benefits that occurred during first quarter 2019, primarily related to share-based compensation that vested in the quarter, and a reduction in deferred tax liabilities following the implementation of state tax planning initiatives.

Additional Key Risks that May Affect Our Reported Results

In March 2020, the President of the United States declared the COVID-19 outbreak a national emergency, as the World Health Organization determined it was a pandemic. In response to the COVID-19 pandemic, federal, provincial, state, county and local governments and public health organizations or authorities around the world have implemented a variety of measures intended to control the spread of the virus, including quarantines, "shelter-in-place" or "stay-at-home" and similar orders, travel restrictions, business curtailments and closures, social distancing, personal hygiene requirements, and other measures.

We are focused on making sure our employees are safe and our operations have the ability to deliver the products needed to support the COVID-19 crisis. Virtually all of our manufacturing sites have been deemed essential operations and remain open, although a few of our sites were forced to shut down on a temporary basis due to government mandates globally. These facilities are back on line with varying levels of capacity and efficiency. The health of our employees, and the ability of our facilities to remain operational in the current regulated environment, will be critical to our future results of operations.

While we do not believe there was a material impact from COVID-19 on our first quarter results, we expect it will impact us much more significantly in second quarter 2020 and beyond, at varying levels. We expect increased and robust customer demand for our Packaging segment's dispensers and closures used in personal care and home care (such as cleaning and laundry applications). We are actively collaborating with our customers and strategic supply partners to manage production capacity and supply chain availability as efficiently as possible. We believe industrial demand in North America will be lower than in 2019 across all of TriMas' businesses, and we are uncertain how demand will be impacted as many of the shelter-in-place orders are lifted, particularly in North America, where orders for our industrial cylinders, for example, are heavily influenced by spring and summer levels of construction and HVAC activity. Two markets we expect to experience a more severe dislocation in are aerospace and oil and gas. With the current travel restrictions and significant drop in passenger miles, we expect demand for our products tied to commercial aircraft build rates to decline significantly. Given further declines in oil prices and related oil-field activity, we expect further sales and operating pressure, albeit the impact will be less significant to overall TriMas given it represents less than 5% of consolidated net sales.

We are proactively assessing realignment actions across all of our divisions to protect against the uncertain end market demand. However, as a result of these macro factors, and their potential impact to our future results of operations, as well as to TriMas' market capitalization, we may record cash and non-cash charges related to our realignment actions, as well as for uncollectible customer account balances, excess inventory and idle production equipment. Further, we may be required to conduct an evaluation of triggering events as to whether there is a reduction in the fair value of our goodwill and intangible assets (particularly in our Aerospace divisions), which could result in an impairment charge.

Despite the expected decline in future demand levels and results of operations, at present, we believe our capital structure is in a solid position, and we have ample cash and available liquidity under our revolving credit facility sufficient to meet our debt service obligations, capital expenditure requirements and other short-term and long-term obligations for the foreseeable future.

The extent of the COVID-19 pandemic's effect on our operational and financial performance will depend in large part on future developments, which cannot be predicted with confidence at this time. Future developments include the duration, scope and severity of the pandemic, the actions taken to contain or mitigate its impact, and the resumption of widespread economic activity. Due to the inherent uncertainty of the unprecedented and rapidly evolving situation, we are unable to predict with any confidence the likely impact of the COVID-19 pandemic on our future operations.

Table of Contents

Beyond the unique risks presented by the COVID-19 pandemic, other critical factors affecting our ability to succeed include: our ability to create organic growth through product development, cross-selling and extending product-line offerings, and our ability to quickly and cost-effectively introduce new products; our ability to acquire and integrate companies or products that supplement existing product lines, add new distribution channels or customers, expand our geographic coverage or enable better absorption of overhead costs; our ability to manage our cost structure more efficiently via supply base management, internal sourcing and/or purchasing of materials, selective outsourcing and/or purchasing of support functions, working capital management, and greater leverage of our administrative functions.

Our overall business does not experience significant seasonal fluctuation, other than our fourth quarter, which has tended to be the lowest net sales quarter of the year due to holiday shutdowns at certain customers or other customers deferring capital spending to the following year. Given the short-cycle nature of most of our businesses, we do not consider sales order backlog to be a material factor. A growing amount of our sales is derived from international sources, which exposes us to certain risks, including currency risks.

We are sensitive to price movements in our raw materials supply base. Our largest material purchases are for resins (such as polypropylene and polyethylene), steel, aluminum and other oil and metal-based purchased components. While material cost changes did not have a significant impact in first quarter 2020 compared with first quarter 2019, there has been some volatility over the past two years as a direct and indirect result of foreign trade policy, where tariffs on certain of our commodity-based products sourced from Asia have been instituted, and certain North American suppliers have opportunistically increased their prices. As needed, we have taken swift actions, and will continue to take actions, to mitigate such increases, including implementing commercial pricing adjustments, resourcing to alternate suppliers and insourcing of previously sourced products to better leverage our global manufacturing footprint. Although we believe we are generally able to mitigate the impact of higher commodity costs, we may experience additional material costs and disruptions in supply in the future and may not be able to pass along higher costs to our customers in the form of price increases or otherwise mitigate the impacts to our operating results.

Our Arrow Engine business in our Specialty Products segment is sensitive to the demand for natural gas and crude oil in North America. For example, demand for engine, pump jack and compressor products are impacted by active oil and gas rig counts and wellhead investment activities. Separately, oil-based commodity costs are a significant driver of raw materials and purchased components used within our Packaging segment.

Although we have escalator/de-escalator clauses in commercial contracts with certain of our customers, or can modify prices based on market conditions to recover higher costs, we cannot be assured of full cost recovery in the open market.

Each year, as a core tenet of the TBM, our businesses target cost savings from Kaizen and continuous improvement initiatives in an effort to reduce, or otherwise offset, the impact of increased input and conversion costs through increased throughput and yield rates, with a goal of at least covering inflationary and market cost increases. In addition, we continuously review our operating cost structures to ensure alignment with current market demand.

We continue to evaluate alternatives to redeploy the cash generated by our businesses, one of which includes returning capital to our shareholders. In November 2015, our Board of Directors authorized up to $50 million in share repurchases. During 2019, our Board of Directors increased the authorization to $75 million in February, and later to $150 million in November. In first quarter 2020, our Board of Directors further increased the authorization to $250 million. In the three months ended March 31, 2020, we purchased 1,253,650 shares of our outstanding common stock for approximately $31.6 million. During the three and three months ended March 31, 2019, we purchased 24,900 shares of our outstanding common stock for approximately $0.7 million.

Each increase in share repurchase authorization includes the value of shares already purchased under the previous authorization. We will continue to evaluate opportunities to return capital to shareholders through the purchase of our common stock, depending on market conditions and other factors. In March 2020, given the uncertainty surrounding the COVID-19 crisis, we temporarily suspended our share repurchase program in order to conserve available cash.

Table of Contents

Segment Information and Supplemental Analysis

The following table summarizes financial information for our reportable segments for the three months ended March 31, 2020 and 2019 (dollars in thousands):



	Three months ended March 31,
	2020			As a Percentage of Net Sales		2019			As a Percentage of Net Sales
Net Sales
Packaging	$	100,050		54.7	%	$	88,840		51.2	%
Aerospace	48,920			26.8	%	45,580			26.3	%
Specialty Products	33,820			18.5	%	38,950			22.5	%
Total	$	182,790		100.0	%	$	173,370		100.0	%
Gross Profit
Packaging	$	28,680		28.7	%	$	27,970		31.5	%
Aerospace	11,910			24.3	%	11,800			25.9	%
Specialty Products	5,780			17.1	%	7,020			18.0	%
Total	$	46,370		25.4	%	$	46,790		27.0	%
Selling, General and Administrative Expenses
Packaging	$	10,400		10.4	%	$	10,330		11.6	%
Aerospace	6,830			14.0	%	5,990			13.1	%
Specialty Products	2,350			6.9	%	2,320			6.0	%
Corporate	6,960			N/A		8,350			N/A
Total	$	26,540		14.5	%	$	26,990		15.6	%
Operating Profit (Loss)
Packaging	$	18,280		18.3	%	$	17,640		19.9	%
Aerospace	5,080			10.4	%	5,810			12.7	%
Specialty Products	3,430			10.1	%	4,700			12.1	%
Corporate	(6,960		)	N/A		(8,350		)	N/A
Total	$	19,830		10.8	%	$	19,800		11.4	%
Depreciation
Packaging	$	4,090		4.1	%	$	3,260		3.7	%
Aerospace	1,690			3.5	%	1,660			3.6	%
Specialty Products	840			2.5	%	700			1.8	%
Corporate	40			N/A		70			N/A
Total	$	6,660		3.6	%	$	5,690		3.3	%
Amortization
Packaging	$	2,330		2.3	%	$	2,370		2.7	%
Aerospace	2,400			4.9	%	2,140			4.7	%
Specialty Products	120			0.4	%	120			0.3	%
Corporate	—			N/A		—			N/A
Total	$	4,850		2.7	%	$	4,630		2.7	%

Results of Operations

The principal factors impacting us during the three months ended March 31, 2020, compared with the three months ended March 31, 2019, were:


•	the impact of our two recent acquisitions, Taplast in April 2019 and RSA in February 2020, respectively, which drove the overall sales growth;


•	lower sales and related profit within our Specialty Products reportable segment; and


•	an overall less favorable product sales mix, as well as production inefficiencies, partially impacted by disruptions related to the ongoing COVID-19 pandemic; and


•	an increase in our effective tax rate as a result of the recognition of certain discrete items in first quarter 2019.

Table of Contents

Three Months Ended March 31, 2020 Compared with Three Months Ended March 31, 2019

Overall, net sales increased approximately $9.4 million, or 5.4%, to $182.8 million for the three months ended March 31, 2020, as compared with $173.4 million in the three months ended March 31, 2019, driven by our recent Taplast and RSA acquisitions, which contributed $10.5 million of sales in the three months ended March 31, 2020. Organic sales, excluding the impact of currency exchange, decreased approximately $0.1 million, as sales increases in each of our primary Packaging segment end markets, as well as increased sales in our Aerospace segment, were offset by lower sales of cylinder and engine-related products in our Specialty Products segment. In addition, net sales were lower by approximately $1.0 million due to unfavorable currency exchange, as our reported results in U.S. dollars were negatively impacted as a result of the stronger U.S. dollar relative to foreign currencies.

Gross profit margin (gross profit as a percentage of sales) approximated 25.4% and 27.0% for the three months ended March 31, 2020 and 2019, respectively. Gross profit margin decreased, as the impact of higher sales levels was more than offset by the impact of a less favorable product sales mix, production inefficiencies due largely to scheduling and other factors related to COVID-19, lower fixed cost absorption, and higher depreciation expense.

Operating profit margin (operating profit as a percentage of sales) approximated 10.8% and 11.4% for the three months ended March 31, 2020 and 2019, respectively. Operating profit remained relatively flat at $19.8 million. Operating profit margin declined as the impact of higher sales levels and lower corporate expenses was more than offset by a less favorable product sales mix, production inefficiencies, lower fixed cost absorption and higher depreciation expense.

Interest expense increased approximately $0.2 million to $3.6 million for the three months ended March 31, 2020, as compared to $3.4 million for the three months ended March 31, 2019, primarily as a result of increased weighted average borrowings from approximately $320.7 million during the three months ended March 31, 2019 to approximately $361.6 million during the three months ended March 31, 2020.

Other expense, net decreased approximately $0.5 million, to $0.1 million for the three months ended March 31, 2020, as compared to $0.6 million for the three months ended March 31, 2019, primarily due to a decrease in losses on transactions denominated in foreign currencies.

The effective income tax rate for the three months ended March 31, 2020 and 2019 was 18.9% and 7.9%, respectively. The increase in the rate was primarily a result of discrete tax benefits that occurred in the three months ended March 31, 2019, including excess tax benefits related to share based compensation that vested in the quarter and a reduction in deferred tax liabilities resulting from the implementation of state tax planning initiatives, that were greater than the discrete tax benefits in the three months ended March 31, 2020.

Net income decreased approximately $1.4 million, to $13.1 million for the three months ended March 31, 2020, as compared to $14.6 million for the three months ended March 31, 2019. While operating profit remaining relatively unchanged, net income decreased primarily as a result of increased income tax expense of approximately $1.8 million, which was partially offset by a decrease in losses denominated in foreign currencies.

See below for a discussion of operating results by segment.

Packaging. Net sales increased approximately $11.2 million, or 12.6%, to $100.1 million in the three months ended March 31, 2020, as compared to $88.8 million in the three months ended March 31, 2019. The acquisition of Taplast, in April 2019, contributed approximately $7.5 million of sales. Sales of products used in industrial markets increased by approximately $2.1 million primarily due to higher demand within North America, some of which we believe is attributable to higher sales of products used for sanitizer and bulk industrial cleaning applications. Sales of products used in food and beverage markets increased by approximately $2.0 million, primarily due to higher sales of beverage pumps in North America. Sales of dispensing products used in personal care and home care applications increased by approximately $1.6 million, primarily for personal hygiene applications as demand rose, in part, due to the COVID-19 crisis, while sales of products used for beauty-related applications, such as perfume sprayers, declined approximately $1.0 million. These increases were partially offset by approximately $1.0 million due to unfavorable currency exchange, as our reported results in U.S. dollars were negatively impacted as a result of the stronger U.S. dollar relative to foreign currencies.

Table of Contents

Gross profit increased approximately $0.7 million to $28.7 million, or 28.7% of sales, in the three months ended March 31, 2020, as compared to $28.0 million, or 31.5% of sales, in the three months ended March 31, 2019. While the increase in net sales contributed incremental gross profit dollars, gross profit margins declined due to a less favorable product sales mix and the fact that the beauty and personal care set of products manufactured under our Taplast brand, which comprises most of Taplast's sales, has a gross margin below the overall segment average. In addition, gross profit and margin were impacted by production inefficiencies resulting from temporary facility shutdowns in Asia and production scheduling inefficiencies in Europe and North America as a result of the COVID-19 crisis.

Selling, general and administrative expenses increased approximately $0.1 million to $10.4 million, or 10.4% of sales, in the three months ended March 31, 2020, as compared to $10.3 million, or 11.6% of sales, in the three months ended March 31, 2019, as the impact of higher ongoing selling, general and administrative costs associated with our acquisition of Taplast was mostly offset by an approximate $0.8 million non-cash charge during the three months ended March 31, 2019 related to the write-off of the trade name acquired in the Plastic Srl acquisition that was not used.

Operating profit increased approximately $0.6 million to $18.3 million, or 18.3% of sales, in the three months ended March 31, 2020, as compared to $17.6 million, or 19.9% of sales, in the three months ended March 31, 2019, as a result of increased sales, partially offset by the impact of a less favorable product sales mix and production inefficiencies.

Aerospace. Net sales for the three months ended March 31, 2020 increased approximately $3.3 million, or 7.3%, to $48.9 million, as compared to $45.6 million in the three months ended March 31, 2019. The February 2020 acquisition of RSA contributed approximately $3.0 million of sales. Additionally, sales of our fastener products increased approximately $0.9 million, as strong demand levels more than offset the expected impact of lower build rates and resulting lower fastener sales for 737 Max production. Sales of our existing machined components products decreased approximately $0.6 million.

Gross profit increased approximately $0.1 million to $11.9 million, or 24.3% of sales, in the three months ended March 31, 2020, from $11.8 million, or 25.9% of sales, in the three months ended March 31, 2019. While the increase in net sales contributed incremental gross profit dollars, this impact was mostly offset by a $0.5 million purchase accounting non-cash charge related to the step-up of RSA's inventory to fair value and subsequent amortization. In addition, we experienced a less favorable product sales mix in first quarter 2020 compared with first quarter 2019, as well as production inefficiencies and lower fixed cost absorption in one of our facilities, in part related to temporarily idling the facility for a deep cleaning in March 2020 following a suspected case of COVID-19.

Selling, general and administrative expenses increased approximately $0.8 million to approximately $6.8 million, or 14.0% of sales, in the three months ended March 31, 2020, as compared to $6.0 million, or 13.1% of sales, in the three months ended March 31, 2019, primarily due to increased investment in our sales force to support growth initiatives, as well as ongoing costs of RSA.

Operating profit decreased approximately $0.7 million to $5.1 million, or 10.4% of sales, in the three months ended March 31, 2020, as compared to $5.8 million, or 12.7% of sales in the three months ended March 31, 2019, primarily due to the recognition of the purchase accounting adjustment related to RSA's inventory step-up to fair value and subsequent amortization, higher selling, general and administrative expenses and production inefficiencies in one of our facilities.

Specialty Products. Net sales for the three months ended March 31, 2020 decreased approximately $5.1 million, or 13.2%, to $33.8 million, as compared to $39.0 million in the three months ended March 31, 2019. Sales of our cylinder products decreased approximately $3.6 million, as lower demand for steel cylinders used in construction and HVAC activity in North America more than offset an increase in the sale of cylinders used for oxygen and other medical applications. Sales of engines, compressors and related parts used in upstream oil and gas applications decreased by approximately $1.5 million, primarily as a result low oil-field activity in North America given further reductions in the price of oil.

Gross profit decreased approximately $1.2 million to $5.8 million, or 17.1% of sales, in the three months ended March 31, 2020, as compared to $7.0 million, or 18.0% of sales, in the three months ended March 31, 2019. Gross profit decreased primarily as a result of lower sales levels, as well as due to lower absorption of our fixed costs.

Selling, general and administrative expenses remained essentially flat at $2.4 million, or 6.9% of sales, in the three months ended March 31, 2020, as compared to $2.3 million, or 6.0% of sales, in the three months ended March 31, 2019.

Operating profit decreased approximately $1.3 million to $3.4 million, or 10.1% of sales, in the three months ended March 31, 2020, as compared to $4.7 million, or 12.1% of sales, in the three months ended March 31, 2019, primarily as a result of decreased sales levels and lower fixed cost absorption.

Table of Contents

Corporate. Corporate expenses consist of the following (dollars in millions):



	Three months ended March 31,
	2020			2019
Corporate operating expenses	$	5.4		$	5.9
Non-cash stock compensation	1.9			1.3
Legacy (income) expense, net	(0.3		)	1.2
Corporate expenses	$	7.0		$	8.4

Corporate expenses decreased approximately $1.4 million to $7.0 million for the three months ended March 31, 2020, from $8.4 million for the three months ended March 31, 2019. Corporate operating expenses declined as a result of reduced professional fees in support of corporate development activities. Non-cash stock compensation increased due to the timing and nature of new awards in first quarter 2020. Legacy (income) expense, net decreased approximately $1.5 million from $1.2 million of expense in first quarter 2019 to approximately $0.3 million of income in first quarter 2020, primarily due to the favorable resolution of a legacy matter.

Liquidity and Capital Resources

Cash Flows

Cash flows provided by operating activities were approximately $3.4 million for the three months ended March 31, 2020, as compared to approximately $15.1 million for the three months ended March 31, 2019. Significant changes in cash flows provided by operating activities and the reasons for such changes were as follows:

•

For the three months ended March 31, 2020, the Company generated approximately $29.0 million of cash, based on the reported net income from continuing operations of approximately $13.1 million and after considering the effects of non-cash items related to depreciation, amortization, loss on dispositions of assets, changes in deferred income taxes, stock-based compensation and other operating activities. For the three months ended March 31, 2019, the Company generated approximately $28.8 million in cash flows based on the reported net income from continuing operations of approximately $14.6 million and after considering the effects of similar non-cash items.

•

Increases in accounts receivable resulted in a use of cash of approximately $10.6 million and $4.5 million for the three months ended March 31, 2020 and 2019, respectively. The increased use of cash for each of the three month periods is due primarily to the timing of sales and collection of cash related thereto within the periods. Days sales outstanding of receivables increased by approximately two days compared to first quarter 2019.


•	We increased our investment in inventory by approximately $0.1 million for the three months ended March 31, 2020, and by approximately $0.4 million for the three months ended March 31, 2019. Our days sales in inventory increased by approximately two days in the first quarter of 2020 compared with 2019 as we have continued to moderate inventory levels in line with sales levels.


•	Increases in prepaid expenses and other assets resulted in a use of cash of approximately $0.1 million for the three months ended March 31, 2020 and of approximately $0.9 million for the three months ended March 31, 2019. These changes were primarily a result of the timing of payments made for income taxes and certain operating expenses.

•

Decreases in accounts payable and accrued liabilities resulted in a use of cash of approximately $14.8 million and $8.0 million for the three months ended March 31, 2020 and 2019, respectively, primarily as a result of the timing of payments made to suppliers and the mix of vendors and related terms. Our days accounts payable on hand decreased by approximately eight days in the first quarter of 2020 compared with 2019.

Net cash used for investing activities of continuing operations for the three months ended March 31, 2020 and 2019 was approximately $86.3 million and $28.5 million, respectively. During the first three months of 2020, we paid approximately $84.3 million, net of cash acquired, to acquire RSA. We incurred approximately $3.9 million in capital expenditures, as we continued our investment in growth, capacity and productivity-related capital projects. We also received proceeds from disposition of business, property and equipment of approximately $1.9 million. During the first three months of 2019, we incurred approximately $6.2 million in capital expenditures and paid approximately $22.3 million, net of cash acquired, to acquire Plastic Srl.

Table of Contents

Net cash provided by financing activities for the three months ended March 31, 2020 was approximately $116.6 million, while net cash used for financing activities was $2.9 million for the three months ended March 31, 2019. During the first three months of 2020, we received proceeds from borrowings, net of repayments, of approximately $150.0 million on our revolving credit facilities. We also purchased approximately $31.6 million of outstanding common stock and used a net cash amount of approximately $1.8 million related to our stock compensation arrangements. During the first three months of 2019, we made net repayments of approximately $0.4 million on our revolving credit facilities. We also purchased approximately $0.7 million of outstanding common stock and used a net cash amount of approximately $2.6 million related to our stock compensation arrangements.

Our Debt and Other Commitments

The $300.0 million aggregate principal amount of senior notes accrue interest at a rate of 4.875% per annum, payable semi-annually in arrears on April 15 and October 15, commencing on April 15, 2018 ("Senior Notes"). The payment of principal and interest is jointly and severally guaranteed, on a senior unsecured basis by certain named subsidiaries of the Company (each a "Guarantor" and collectively the "Guarantors"). The Senior Notes are pari passu in right of payment with all existing and future senior indebtedness and subordinated to all existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness. For the three months ended March 31, 2020, our consolidated subsidiaries that do not guarantee the Senior Notes represented approximately 21% of the total of guarantor and non-guarantor net sales, treating each as a consolidated group and excluding intercompany transactions between guarantor and non-guarantor subsidiaries. In addition, our non-guarantor subsidiaries represented approximately 33% and 12% of the total guarantor and non-guarantor assets and liabilities, respectively, as of March 31, 2020, treating the guarantor and non-guarantor subsidiaries each as a consolidated group and excluding intercompany transactions between such groups.

Prior to October 15, 2020, we may redeem up to 35% of the principal amount of the Senior Notes at a redemption price of 104.875% of the principal amount, plus accrued and unpaid interest, if any, to the redemption date, with the net cash proceeds of one or more equity offerings provided that each such redemption occurs within 90 days of the date of closing of each such equity offering. In addition, we may redeem all or part of the Senior Notes at a redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date, plus a "make whole" premium.

We are party to a credit agreement ("Credit Agreement") consisting of a $300.0 million senior secured revolving credit facility, which permits borrowings denominated in specific foreign currencies, subject to a $125.0 million sub limit. The Credit Agreement matures on September 20, 2022 and is subject to interest at London Interbank Offered Rate ("LIBOR") plus 1.50%. The interest rate spread is based upon the leverage ratio, as defined, as of the most recent determination date. The Credit Agreement allows issuance of letters of credit, not to exceed $40.0 million in aggregate, against revolving credit facility commitments.

The Credit Agreement also provides for incremental revolving credit commitments in an amount not to exceed the greater of $200.0 million and an amount such that, after giving effect to such incremental commitments and the incurrence of any other indebtedness substantially simultaneously with the making of such commitments, the senior secured net leverage ratio, as defined in the Credit Agreement, is no greater than 3.00 to 1.00. The terms and conditions of any incremental revolving credit facility commitments must be no more favorable than the existing credit facility.

Table of Contents

Amounts drawn under our revolving credit facility fluctuate daily based upon our working capital and other ordinary course needs. Availability under our revolving credit facility depends upon, among other things, compliance with our Credit Agreement's financial covenants. Our Credit Agreement contains various negative and affirmative covenants and other requirements affecting us and our subsidiaries, including the ability to, subject to certain exceptions and limitations, incur debt, liens, mergers, investments, loans, advances, guarantee obligations, acquisitions, asset dispositions, sale-leaseback transactions, hedging agreements, dividends and other restricted payments, transactions with affiliates, restrictive agreements and amendments to charters, bylaws, and other material documents. The terms of our Credit Agreement require us and our subsidiaries to meet certain restrictive financial covenants and ratios computed quarterly, including a maximum total net leverage ratio (total consolidated indebtedness plus outstanding amounts under the accounts receivable securitization facility, less the aggregate amount of certain unrestricted cash and unrestricted permitted investments, as defined, over consolidated EBITDA, as defined), a maximum senior secured net leverage ratio (total consolidated senior secured indebtedness, less the aggregate amount of certain unrestricted cash and unrestricted permitted investments, as defined, over consolidated EBITDA, as defined) and a minimum interest expense coverage ratio (consolidated EBITDA, as defined, over the sum of consolidated cash interest expense, as defined, and preferred dividends, as defined). Our permitted total net leverage ratio under the Credit Agreement is 4.00 to 1.00 as of March 31, 2020. If we were to complete an acquisition which qualifies for a Covenant Holiday Period, as defined in our Credit Agreement, then our permitted total net leverage ratio cannot exceed 4.50 to 1.00 during that period. Our actual total net leverage ratio was 2.19 to 1.00 at March 31, 2020. Our permitted senior secured net leverage ratio under the Credit Agreement is 3.50 to 1.00 as of March 31, 2020. If we were to complete an acquisition which qualifies for a Covenant Holiday Period, as defined in our Credit Agreement, then our permitted senior secured net leverage ratio cannot exceed 4.00 to 1.00 during that period. Our actual senior secured net leverage ratio was 0.31 to 1.00 at March 31, 2020. Our permitted interest expense coverage ratio under the Credit Agreement is 3.00 to 1.00 as of March 31, 2020. Our actual interest expense coverage ratio was 13.63 to 1.00 at March 31, 2020. At March 31, 2020, we were in compliance with our financial covenants.

Table of Contents

The following is a reconciliation of net income, as reported, which is a GAAP measure of our operating results, to Consolidated Bank EBITDA, as defined in our Credit Agreement, for the twelve months ended March 31, 2020 (dollars in thousands). We present Consolidated Bank EBITDA to show our performance under our financial covenants.



	Twelve Months Ended March 31, 2020
Net income	$	92,650
Bank stipulated adjustments:
Interest expense	14,090
Income tax expense	31,550
Depreciation and amortization	47,240
Non-cash compensation expense⁽¹⁾	7,070
Other non-cash expenses or losses	5,650
Non-recurring expenses or costs⁽²⁾	4,180
Extraordinary, non-recurring or unusual gains or losses	3,000
Effects of purchase accounting adjustments	430
Business and asset dispositions	170
Permitted acquisitions	5,750
Permitted dispositions⁽³⁾	(51,630		)
Consolidated Bank EBITDA, as defined	$	160,150



	March 31, 2020
Total Indebtedness, as defined⁽³⁾	$	350,000
Consolidated Bank EBITDA, as defined	160,150
Total net leverage ratio	2.19		x
Covenant requirement	4.00		x



	March 31, 2020
Total Senior Secured Indebtedness	$	50,000
Consolidated Bank EBITDA, as defined	160,150
Senior secured net leverage ratio	0.31		x
Covenant requirement	3.50		x



	Twelve Months Ended March 31, 2020
Interest expense	$	14,090
Bank stipulated adjustments:
Interest income	(980		)
Non-cash amounts attributable to amortization of financing costs	(1,360		)
Total Consolidated Cash Interest Expense, as defined	$	11,750

Table of Contents



	March 31, 2020
Consolidated Bank EBITDA, as defined	$	160,150
Total Consolidated Cash Interest Expense, as defined	11,750
Actual interest expense coverage ratio	13.63		x
Covenant requirement	3.00		x

_____________________________


⁽¹⁾	Non-cash compensation expenses resulting from the grant of equity awards.


⁽²⁾	Non-recurring costs and expenses relating to diligence and transaction costs, purchase accounting costs, severance, relocation, restructuring and curtailment expenses.


⁽³⁾	EBITDA from permitted dispositions, as defined.

At March 31, 2020, we had $150.0 million outstanding under our revolving credit facility and had approximately $131.2 million potentially available after giving effect to approximately $18.8 million of letters of credit issued and outstanding. At December 31, 2019, we had no amounts outstanding under our revolving credit facility and had approximately $283.9 million potentially available after giving effect to approximately $16.1 million of letters of credit issued and outstanding. The letters of credit are used for a variety of purposes, including support of certain operating lease agreements, vendor payment terms and other subsidiary operating activities, and to meet various states' requirements to self-insure workers' compensation claims, including incurred but not reported claims. Our borrowing capacity was not reduced by leverage restrictions contained in the Credit Agreement as of March 31, 2020 and December 31, 2019.

We rely upon our cash flow from operations and available liquidity under our revolving credit facility to fund our debt service obligations and other contractual commitments, working capital and capital expenditure requirements. At the end of each quarter, we typically use cash on hand from our domestic and foreign subsidiaries to pay down amounts outstanding under our revolving credit facility, as applicable. Given the potential uncertainty surrounding the financial markets as a result of the COVID-19 pandemic, we took an action to borrow $150 million on our revolving credit facility to ensure availability of cash on hand.

Our weighted average borrowings during the first three months of 2020 approximated $361.6 million, compared to approximately $320.7 million during the first three months of 2019.

Cash management related to our revolving credit facility is centralized. We monitor our cash position and available liquidity on a daily basis and forecast our cash needs on a weekly basis within the current quarter and on a monthly basis outside the current quarter over the remainder of the year. Our business and related cash forecasts are updated monthly.

In considering the economic uncertainty surrounding the potential business impacts from the COVID-19 pandemic with respect to our operations, supply chains, distribution channels, and end-market customers, we have taken certain defensive actions as we monitor our cash position and available liquidity. These actions have included suspending our repurchase of our common stock, borrowing on our revolving credit facility, tightening our capital expenditures, advanced monitoring of our accounts receivable balances and flexing cost structures of operations expected to be most impacted by COVID-19.

While the majority of our cash on hand as of March 31, 2020 is located within the U.S., given available funding under our revolving credit facility of $131.2 million at March 31, 2020 (after consideration of the aforementioned leverage restrictions) and based on forecasted cash sources and requirements inherent in our business plans, we believe that our liquidity and capital resources, including anticipated cash flows from operations, will be sufficient to meet our debt service, capital expenditure and other short-term and long-term obligations for the foreseeable future.

We are subject to variable interest rates on our revolving credit facility. At March 31, 2020, 1-Month LIBOR approximated 0.99%. Based on our variable rate-based borrowings outstanding at March 31, 2020, a 1% increase in the per annum interest rate would increase our interest expense by approximately $1.5 million annually.

In addition to our long-term debt, we have other cash commitments related to leases. We account for these lease transactions as operating leases, and annual rent expense for continuing operations related thereto approximated $7.5 million in 2019. We expect leasing will continue to be an available financing option to fund future capital expenditure requirements.

Table of Contents

In March 2020, we announced our Board of Directors had authorized us to increase the purchase of our common stock up to $250 million in the aggregate, an increase of $100 million from the prior authorization. In the three months ended March 31, 2020, we purchased 1,253,650 shares of our outstanding common stock for an aggregate purchase price of approximately $31.6 million. Since the initial authorization through March 31, 2020 we have purchased 2,926,332 shares of our outstanding common stock for an aggregate purchase price of approximately $80.5 million. We will continue to evaluate opportunities to return capital to shareholders through the purchase of our common stock, depending on market conditions, including the potential impact of the COVID-19 pandemic and other factors. In March 2020, given the uncertainty surrounding the COVID-19 crisis, we suspended, at least temporarily, our share repurchase program.

Market Risk

We conduct business in various locations throughout the world and are subject to market risk due to changes in the value of foreign currencies. The functional currencies of our foreign subsidiaries are primarily the local currency in the country of domicile. We manage these operating activities at the local level and revenues and costs are generally denominated in local currencies; however, results of operations and assets and liabilities reported in U.S. dollars will fluctuate with changes in exchange rates between such local currencies and the U.S. dollar.

We use derivative financial instruments to manage currency risks associated with our procurement activities denominated in currencies other than the functional currency of our subsidiaries and the impact of currency rate volatility on our earnings. As of March 31, 2020, we were party to foreign exchange forward and swap contracts to hedge changes in foreign currency exchange rates with notional amounts of approximately $77.3 million. We also use cross-currency swap agreements to mitigate currency risks associated with the net investment in certain of our foreign subsidiaries. See Note 10, "Derivative Instruments," included in Part 1, Item 1, "Notes to Unaudited Consolidated Financial Statements," within this quarterly report on Form 10-Q for additional information.

We are also subject to interest risk as it relates to our long-term debt. We have historically used interest rate swap agreements to fix the variable portion of our debt to manage this risk. See Note 9, "Long-term Debt," included in Part 1, Item 1, "Notes to Unaudited Consolidated Financial Statements," within this quarterly report on Form 10-Q for additional information.

Common Stock

TriMas is listed in the NASDAQ Global Select Market^SM. Our stock trades under the symbol "TRS."

Credit Rating

We and certain of our outstanding debt obligations are rated by Standard & Poor's and Moody's. On June 7, 2019, Moody's affirmed a Ba3 rating to our Senior Notes, as presented in Note 9, "Long-term Debt" included in Part I, Item 1, "Notes to Unaudited Consolidated Financial Statements" within this quarterly report on Form 10-Q. Moody's also affirmed a Ba2 Corporate Family Rating and maintained its outlook as stable. On February 12, 2020, Standard & Poor's affirmed a BB- rating to our senior unsecured debt, affirmed a BB corporate credit rating and maintained its outlook as stable. If our credit ratings were to decline, our ability to access certain financial markets may become limited, our cost of borrowings may increase, the perception of us in the view of our customers, suppliers and security holders may worsen and as a result, we may be adversely affected.

Outlook

While first quarter 2020 results were as expected, we do not expect to attain the previously expected growth rates and profit levels as we move forward into second quarter 2020, as the impacts of COVID-19 are expected to significantly pressure our results of operations, most notably in our Aerospace and Specialty Products segments. Due to the current demand, operational and economic uncertainty, we are withdrawing our guidance for full year 2020 until a clearer picture emerges for our business, as we are unable to predict the full extent or duration of these impacts at this time.

We are managing production capacity to prevailing demand conditions and have taken steps to reduce controllable costs. As we navigate through this uncertain period, it will be our goal to take appropriate realignment actions to mitigate against lower volumes, while also taking strategic manufacturing footprint actions, so we in turn may gain early leads when certain end markets begin to recover. For those end markets where demand may increase, such as for our Packaging segment's dispensers and closures used in applications that help fight the spread of germs, improve personal hygiene, and advance home and industrial cleaning, we will continue to collaborate with our customers and strategic supply partners to ensure availability of capacity to fulfill requisite orders, while also investing in localizing supply where necessary.

Table of Contents

As a result of these uncertainties, and their potential impact to our future results of operations, as well as to TriMas' market capitalization, we may record cash and non-cash charges related to our realignment actions, as well for uncollectible customer account balances, excess inventory and idle production equipment. Further, we may be required to conduct an evaluation of triggering events as to whether there is a reduction in the fair value of our goodwill and intangible assets, particularly in our Aerospace divisions, which we believe could result in an impairment charge. At this time, we are not able to practically estimate the extent or amount of such potential cash and non-cash charges.

Despite the expected pressure to future demand levels and results of operations, at present, we believe our capital structure is in solid position. We believe we have sufficient headroom under our financial covenants, and ample cash and available liquidity under our revolving credit facility that will be sufficient to meet our debt service, capital expenditure and other short-term and long-term obligations for the foreseeable future.

We expect to continue to leverage the tenets of the TriMas Business Model to address the challenges presented by the COVID-19 pandemic, and on a longer-term basis, achieve our growth plans, execute continuous improvement initiatives to offset inflationary pressures, and seek lower-cost sources for input costs, all while continuously assessing the appropriateness of our manufacturing footprint and fixed-cost structure.

Impact of New Accounting Standards

See Note 2, "New Accounting Pronouncements," included in Part 1, Item 1, "Notes to Unaudited Consolidated Financial Statements," within this quarterly report on Form 10-Q.

Critical Accounting Policies

Certain of our accounting policies require the application of significant judgment by management in selecting the appropriate assumptions used in calculating financial estimates. By their nature, these judgments are subject to an inherent degree of uncertainty. These judgments are based on our historical experience, our evaluation of business and macroeconomic trends, and information from other outside sources, as appropriate.

During the quarter ended March 31, 2020, there were no material changes to the items that we disclosed as our critical accounting policies in Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations," in the Annual Report on Form 10-K for the year ended December 31, 2019.

Table of Contents

Item 3. Quantitative and Qualitative Disclosures About Market Risk

In the normal course of business, we are exposed to market risk associated with fluctuations in foreign currency exchange rates. We are also subject to interest risk as it relates to long-term debt. See Part I, Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations," for details about our primary market risks, and the objectives and strategies used to manage these risks. Also see Note 9, "Long-term Debt," and Note 10, "Derivative Instruments," in Part I, Item 1, "Notes to Unaudited Consolidated Financial Statements," included within this quarterly report on Form 10-Q for additional information.

Item 4. Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports that the Company files or submits under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to the Company's management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.

Evaluation of disclosure controls and procedures

As of March 31, 2020, an evaluation was carried out by management, with the participation of the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company's disclosure controls and procedures (as such term is defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act) pursuant to Rule 13a-15 of the Exchange Act. The Company's disclosure controls and procedures are designed only to provide reasonable assurance that they will meet their objectives. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that as of March 31, 2020, the Company's disclosure controls and procedures are effective to provide reasonable assurance that they would meet their objectives.

Changes in internal control over financial reporting

In response to the COVID-19 pandemic, we have required certain employees, some of whom are involved in the operation of our internal controls over financial reporting, to work from home. Despite this change, there have been no changes in the Company's internal control over financial reporting during the quarter ended March 31, 2020 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting. We are continually monitoring and assessing the COVID-19 pandemic on our internal controls to minimize any impact it may have on their design and operating effectiveness.

Table of Contents

PART II. OTHER INFORMATION

TRIMAS CORPORATION

Item 1. Legal Proceedings

See Note 12, "Commitments and Contingencies," included in Part I, Item 1, "Notes to Unaudited Consolidated Financial Statements," within this quarterly report on Form 10-Q.

Item 1A. Risk Factors

The information set forth in this report, including without limitation, the risk factor presented below, updates and should be read in conjunction with, the risk factors and information disclosed in Part 1, Item 1A., "Risk Factors," in our Annual Report on Form 10-K for the year ended December 31, 2019.

The recent outbreak of the novel coronavirus (COVID-19) pandemic may have a significant impact on the Company's operations and results.

Since late January 2020, we have been managing matters related to the global COVID-19 pandemic, including impacts to our operations and strategic supplier-partners in Asia, and, more recently, our manufacturing operations in Europe and North America. As a result of COVID-19, we have experienced temporary disruptions in the operation and workforce staffing of certain of our manufacturing facilities, as we were early adopters of many of the workplace guidelines recently published by the U.S. Centers for Disease Control and Prevention ("CDC") and took precautionary measures when necessary. COVID-19 has also affected our customers and suppliers, and we are collaborating with them to minimize supply chain disruptions. In response to the pandemic and related mitigation measures, we also implemented pandemic and business continuity plans, as well as other precautionary measures on behalf of our customers and employees, including supporting remote work opportunities for certain of our employees. While we believe that all these measures have been necessary or appropriate, they have resulted in additional costs and may adversely impact our business and financial performance in the future or expose us to additional unknown risks.

Although it is not possible to predict the ultimate impact of COVID-19, including on our business, results of operations, financial position or cash flows, such impacts that may be material include, but are not limited to: (i) shifting customer demand for many of our products, including those used in cosmetic, personal care, pharmaceutical, household product, food and beverage, and industrial markets, as well as aerospace markets; (ii) increased credit risk, including increased failure by customers experiencing business disruptions to make timely payments; (iii) reduced availability and productivity of employees, as well as increased costs associated with our high-deductible medical insurance plan if our employees become ill; (iv) increased operational risks as a result of manufacturing facility disruptions or remote work arrangements, including the potential effects on internal controls and procedures, as well as cybersecurity risks and increased vulnerability to security breaches, information technology disruptions and other similar events; (v) delays and disruptions in the availability of and timely delivery of materials and components used in our operations, as well as increased costs for such materials and components; (vi) customer requirements to accelerate the relocation of certain of our production lines to North America, which may increase our capital investment needs and launch costs; (vii) a negative impact on liquidity position; (viii) any impairment in value of tangible or intangible assets which could be recorded as a result of weaker economic conditions; and (ix) increased costs and less ability to access funds under our existing credit facility and the capital markets.

In addition, because we cannot predict the impact that COVID-19 will ultimately have, the actual impact may also exacerbate other risks discussed in Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, any of which could have a material effect on us. The situation is changing rapidly and the likelihood of an adverse impact could increase the longer the global pandemic lasts.

Table of Contents

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table provides information about purchases made by the Company, or on behalf of the Company by an affiliated purchaser, of shares of the Company's common stock during the three months ended March 31, 2020.



Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs ⁽¹⁾	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program ⁽¹⁾
January 1, 2020 to January 31, 2020	292,000	$	31.08	292,000	$	92,036,196
February 1, 2020 to February 29, 2020	8,000	$	29.59	8,000	$	91,799,495
March 1, 2020 to March 31, 2020	953,650	$	23.34	953,650	$	169,543,834
Total	1,253,650	$	25.18	1,253,650	$	169,543,834

__________________________

⁽¹⁾

In March 2020, the Company announced its Board of Directors had authorized the Company to increase the purchase of its common stock up to $250 million in the aggregate from its previous authorization of $150 million. Pursuant to this share repurchase program, during the three months ended March 31, 2020, the Company repurchased 1,253,650 shares of its common stock at a cost of approximately $31.6 million. The increased authorization includes the value of shares already purchased under the previous authorization. The share repurchase program is effective and has no expiration date.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Not applicable.

Table of Contents

Item 6. Exhibits

Exhibits Index:



3.1	Fourth Amended and Restated Certificate of Incorporation of TriMas Corporation (Incorporated by reference to the Exhibits filed with TriMas Corporation's Quarterly Report on Form 10-Q filed on August 3, 2007 (File No. 001-10716)).
3.2	Third Amended and Restated By-laws of TriMas Corporation (Incorporated by reference to the Exhibits filed with TriMas Corporation's Current Report on Form 8-K filed on December 18, 2015 (File No. 001-10716)).
10.1	Form of Performance Stock Units Agreement - 2020 LTI - under the 2017 Equity and Incentive Compensation Plan.*
10.2	Form of Restricted Stock Units Agreement (Three-Year Vest) - 2020 LTI - under the 2017 Equity and Incentive Compensation Plan.*
10.3	Form of Restricted Stock Units Agreement (Board Of Directors) (One-Year Vest) - 2020 LTI - under the 2017 Equity and Incentive Compensation Plan.*
31.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes‑Oxley Act of 2002.
31.2	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes‑Oxley Act of 2002.
32.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002.
32.2	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002.
101	The following materials from TriMas Corporation's Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, formatted in Inline XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheet, (ii) the Consolidated Statement of Income, (iii) the Consolidated Statement of Comprehensive Income, (iv) the Consolidated Statement of Cash Flows, (v) the Consolidated Statement of Shareholders' Equity, (vi) Notes to Consolidated Financial Statements, and (vii) document and entity information.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

*Management contracts and compensatory plans or arrangements.

Table of Contents

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



		TRIMAS CORPORATION (Registrant)

			/s/ ROBERT J. ZALUPSKI

Date:	April 30, 2020	By:	Robert J. Zalupski Chief Financial Officer

Exhibit 10.1

1/1/20 - 12/31/22 Award

Performance Stock Units

TRIMAS CORPORATION

2017 EQUITY AND INCENTIVE COMPENSATION PLAN

PERFORMANCE STOCK UNITS AGREEMENT

TriMas Corporation (the “Company”), as permitted by the TriMas Corporation 2017 Equity and Incentive Compensation Plan (“Plan”), and as approved by the Committee, has granted to the individual listed below (“Grantee”), the opportunity to earn performance-based Restricted Stock Units (“PSUs”) in the amount designated in this Performance Stock Units Agreement (“Agreement”), subject to the terms and conditions of the Plan and this Agreement.

Unless otherwise defined in this Agreement or in one or more Appendices to this Agreement, the terms used in this Agreement have the same meanings as defined in the Plan.

I. NOTICE OF PSU AWARD



Grantee:	[specify Grantee’s name]
Date of Agreement:	As of [enter date]
Date of Grant:	[Grant Date]
Number of PSUs in Award:	[number of PSUs] (“Target”), subject to addition or subtraction as set forth on Appendix A depending on achievement of applicable Management Objectives
Performance Period:	Beginning on January 1, 2020, and continuing through December 31, 2022
Settlement Date	March 11, 2023
Settlement Method:	Earned and vested PSUs will be settled by delivery of one share of Common Stock for each PSU being settled

II. AGREEMENT

A. Grant of PSUs. The Company has granted to Grantee (who, pursuant to this award is a Participant in the Plan) the opportunity to earn the number of PSUs described above, subject to the terms of this Agreement (this “Award”). The PSUs evidenced by this Agreement are payable only in shares of Common Stock as described in this Agreement. Notwithstanding anything to the contrary anywhere else in this Agreement, the PSUs subject to this Award are subject to the terms and provisions of the Plan, which are incorporated by reference into this Agreement.

1. Vesting. Except as otherwise designated in this Agreement, Grantee must be a Service Provider on the Settlement Date (as such term is defined in Section II.A.7 below) to be eligible to earn and receive payment for any PSUs, and any PSUs subject to this Award will be canceled and forfeited if Grantee terminates as a Service Provider prior to the Settlement Date. Any PSUs that remain unearned after the “Determination Date” (as such term is defined in Appendix A) will be cancelled and forfeited.

2. Performance Goals to Earn PSUs. Grantee will only receive shares of Common Stock related to, and to the extent that such shares are earned pursuant to, the Management Objectives and goals specified in Appendix A to this Agreement (“Performance Goals”).

3. Dividend Equivalent Rights. Grantee shall be credited with cash per PSU equal to the amount of each cash dividend paid by the Company (if any) to holders of Common Stock generally with a record date occurring on or after the Date of Grant and prior to the time when the PSUs are earned and/or vest and are settled in accordance with Section II.A.7 hereof. Any amounts credited pursuant to the immediately preceding sentence shall be subject to the same applicable terms and conditions (including earning, vesting, payment, and forfeitability) as apply to the PSUs based on which the dividend equivalents were credited, and such amounts shall be paid in either cash or Common Stock, as determined by the Committee in its sole discretion, at the same time as the PSUs to which they relate. If such amounts are paid in Common Stock, the number of shares so paid shall be rounded down to the nearest whole number and shall be determined by dividing such credited amounts by the Market Value per Share on the payment date.

4. Rights as a Stockholder. This Award does not entitle Grantee to any ownership interest in any actual shares of Common Stock unless and until such shares of Common Stock are issued to Grantee pursuant to the terms of the Plan. Except as otherwise provided in Section II.A.3 hereof, until shares of Common Stock are issued to Grantee in settlement of earned PSUs under this Award, Grantee will have none of the rights of a stockholder of the Company with respect to the shares of Common Stock issuable in settlement of the PSUs, including the right to vote the shares of Common Stock. Shares of Common Stock issuable in settlement of PSUs will be delivered to Grantee on the Settlement Date in book entry form or in such other manner as the Committee may determine.

5. Adjustments. The PSUs covered by this Award will be subject to adjustment as provided in Section 11 of the Plan.

6. Termination of Service; Forfeiture.

(a) Voluntary Termination; Termination by Company; Breach of Other Obligations. Any PSUs subject to this Award will be canceled and forfeited if, prior to the Settlement Date, Grantee voluntarily terminates as a Service Provider (other than for Good Reason as provided below), if Grantee’s status as a Service Provider is terminated by the Company or a Subsidiary for any reason (other than death, Disability, or Retirement), or if Grantee violates the provisions of Section II.B.4 below.

(b) Qualifying Termination Prior to a Change in Control. Notwithstanding the foregoing, and except as set forth in subsection (f) of this Section II.A.6, if Grantee ceases to be a Service Provider prior to the Settlement Date as a result of Grantee’s Qualifying Termination, Grantee shall vest in a pro-rata portion of the number of PSUs, if any, that are earned under Section II.A.2 due to the achievement of the performance measures specified in Appendix A during the performance period specified in the table above (the “Performance Period”). The pro-rata percentage of the number of PSUs to be earned and settled under Section II.A.7 shall be equal to (x) the amount determined under Section II.A.2 above at the end of the Performance Period, multiplied by (y) a fraction (not

greater than 1), the numerator of which is the number of whole calendar months Grantee was employed or rendering services from the beginning of the Performance Period through the date of Grantee’s Qualifying Termination, and the denominator of which is 36.

(c) Disability. Notwithstanding the foregoing, if Grantee ceases to be a Service Provider prior to the Settlement Date as a result of Grantee’s Disability, Grantee shall become vested at the end of the Performance Period in the number of PSUs that would have been actually earned due to the achievement of the performance measures specified in Appendix A, assuming Grantee had continued to be a Service Provider through the Settlement Date.

(d) Death. Notwithstanding the foregoing, if Grantee ceases to be a Service Provider prior to the Settlement Date as a result of Grantee’s death, Grantee’s PSUs shall immediately become fully vested based on the Target number set forth in “Number of PSUs in Award” in Section I.

(e) Retirement. If Grantee ceases to be a Service Provider as a result of Grantee’s Retirement, the Committee may, in its discretion, permit Grantee to receive a pro-rata amount of PSUs, with the pro-rata amount determined in accordance with subsection (b) of this Section II.A.6.

(f) Change in Control. In the event of a Change in Control that occurs prior to the Settlement Date, the PSUs will vest in accordance with this Section II.A.6(f).

(1) Notwithstanding anything set forth herein to the contrary, if at any time before the Settlement Date or forfeiture of the PSUs, and while Grantee is continuously a Service Provider, a Change in Control occurs, then the PSUs will vest (except to the extent that a Replacement Award is provided to Grantee in accordance with Section II.A.6(f)(2) to continue, replace or assume the PSUs covered by this Agreement (the “Replaced Award”)) as follows: the number of PSUs subject to this Award that shall become vested and non-forfeitable shall equal (x) the Target number set forth in “Number of PSUs in Award” in Section I, less (y) the number of PSUs that had already become vested as of the date of such termination, but in no event may negative discretion be exercised with respect to the number of PSUs vested. Any PSUs that are not earned and do not vest in accordance with the foregoing sentence shall terminate and be forfeited.

(2) For purposes of this Agreement, a “Replacement Award” means an award (A) of the same type (e.g., performance stock units) as the Replaced Award, (B) that has a value at least equal to the value of the Replaced Award, (C) that relates to publicly traded equity securities of the Company or its successor in the Change in Control or another entity that is affiliated with the Company or its successor following the Change in Control, (D) if Grantee holding the Replaced Award is subject to U.S. federal income tax under the Code, the tax consequences of which to such Grantee under the Code are not less favorable to such Grantee than the tax consequences of the Replaced Award, and (E) the other terms and conditions of which are not less favorable to Grantee holding the Replaced Award than the terms and conditions of the Replaced Award (including the provisions that would apply in the event of a subsequent Change in Control). A Replacement Award may be granted only to the extent it does not result in the Replaced Award or Replacement Award failing to comply with or be exempt from Section 409A of the Code. Without limiting the generality of the foregoing, the Replacement Award may take the form of a continuation of the Replaced Award if the requirements of the two preceding sentences are satisfied. The determination of whether the conditions of this Section II.A.6(f)(2) are satisfied will be made by the Committee, as constituted immediately before the Change in Control, in its sole discretion.

(3) If, after receiving a Replacement Award, Grantee experiences a Qualifying Termination with the Company or a Subsidiary (or any of their successors) (as applicable, the “Successor”) within a period of two years after the Change in Control and prior to the Settlement Date, the number of PSUs subject to this Award that shall become vested and non-forfeitable shall equal (x) the Target number set forth in “Number of PSUs in Award” in Section I, less (y) the number of PSUs that had already become vested as of the date of such termination, but in no event may negative discretion be exercised with respect to the number of PSUs vested. Any PSUs that are not earned and do not vest in accordance with the foregoing sentence shall terminate and be forfeited.

Any PSUs that are not earned and do not vest in accordance with this Section II.A.6. shall terminate and be forfeited as of the date Grantee ceases to be a Service Provider. However, in particular, this Award is subject to Section 18(c) of the Plan.

7. Determination of PSUs Earned and Vested; Settlement.

(a)General. Subject to Section II.A.7(b), upon the Committee’s certification of achievement of the Performance Goals, and Grantee’s satisfaction of the vesting requirements in Section II.A.1 and Section II.A.6 above, as applicable, this Award shall be settled by issuing to Grantee the number of shares of Common Stock determined pursuant to Appendix A (subject to pro-ration as described in Section II.A.6, if applicable), and Grantee’s name shall be entered as the shareholder of record on the books of the Company with respect to such shares. This settlement shall occur on March 11, 2023 (the “Settlement Date”).

(b)Other Payment Events. Notwithstanding Section II.A.7(a), to the extent that the PSUs are vested on the dates set forth below, payment with respect to the PSUs will be made as follows:

(1) to the extent the PSUs are vested as a result of Section II.A.6 (and have not previously been settled) on the date of Grantee’s death, such vested PSUs will be settled by issuing to Grantee one share of Common Stock for each such vested PSU within 30 days of Grantee’s death, and Grantee’s name shall be entered as the shareholder of record on the books of the Company with respect to such shares; and

(2) to the extent the PSUs are vested as a result of Section II.A.6 (and have not previously been settled) on the date of a Change in Control, such vested PSUs will be settled by issuing to Grantee one share of Common Stock for each such vested PSU within 30 days of the Change in Control, and Grantee’s name shall be entered as the shareholder of record on the books of the Company with respect to such shares; provided, however, that if such Change in Control would not qualify as a permissible date of distribution under Section 409A(a)(2)(A) of the Code, and the regulations thereunder, and where Section 409A of the Code applies to such distribution, Grantee is entitled to receive the corresponding payment on the date that would have otherwise applied pursuant to Sections II.A.7(a) or II.A.7(b)(1) as though such Change in Control had not occurred.

(c)Any unearned PSUs at the end of the Performance Period, or if earlier, the time of settlement, will be canceled and forfeited. In all circumstances, the number of PSUs earned or vested will be rounded down to the nearest whole PSU, unless otherwise determined by the Committee.

B. Other Terms and Conditions.

1. Non-Transferability of Award. Except as described below, this Award and the PSUs subject to this Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution. The terms of this Award are binding on the executors, administrators, heirs, successors and assigns of Grantee.

2. Withholding. To the extent that the Company is required to withhold federal, state, local or foreign taxes or other amounts in connection with any payment made or benefit realized by Grantee under this Agreement, and the amounts available to the Company for such withholding are insufficient, it shall be a condition to the receipt of such payment or the realization of such benefit that Grantee make arrangements satisfactory to the Company for payment of the balance of such taxes or other amounts required to be withheld. If Grantee’s benefit is to be received in the form of shares of Common Stock, then (a) if Grantee is subject to Section 16 of the Exchange Act, Grantee agrees that the Company will withhold shares of Common Stock having a value equal to the amount required to be withheld, and (b) if Grantee is not subject to Section 16 of the Exchange Act, Grantee may elect that all or any part of such withholding requirement be satisfied by the retention by the Company of a portion of the Common Stock to be delivered to Grantee, by delivering to the Company other Common Stock held by Grantee, or by tendering sufficient funds in cash or cash equivalent to the Company. The shares of Common Stock used for tax or other withholding will be valued at an amount equal to the fair market value of such shares of Common Stock on the date the benefit is to be included in Grantee’s income. In no event will the fair market value of the shares of Common Stock to be withheld and/or delivered pursuant to this Section II.B.2 to satisfy applicable withholding taxes or other amounts in connection with the benefit exceed (x) the maximum amount that could be required to be withheld or (y) if so determined by the Committee after the date hereof, the minimum amount required to be withheld.

3. Dispute Resolution. Grantee and the Company agree that any disagreement, dispute, controversy, or claim arising out of or relating to this Agreement, its interpretation, validity, or the alleged breach of this Agreement, will be settled exclusively and, consistent with the procedures specified in this Section II.B.3, irrespective of its magnitude, the amount in controversy, or the nature of the relief sought, in accordance with the following:

(a) Negotiation. Grantee and the Company will use their best efforts to settle the dispute, claim, question or disagreement. To this effect, they will consult and negotiate with each other in good faith and, recognizing their mutual interests, attempt to reach a just and equitable solution satisfactory to both parties.

(b) Arbitration. If Grantee and the Company do not reach a solution within a period of 30 days from the date on which the dispute, claim, disagreement, or controversy arises, then, upon written notice by Grantee to the Company or the Company to Grantee, all disputes, claims, questions, controversies, or differences will be submitted to arbitration administered by the American Arbitration Association (the “AAA”) in accordance with the provisions of its Employment Arbitration Rules and Mediation Procedures (the “Arbitration Rules”).

(1) Arbitrator. The arbitration will be conducted by one arbitrator skilled in the arbitration of executive employment matters. The parties to the arbitration will jointly appoint the arbitrator within 30 days after initiation of the arbitration. If the parties fail to appoint an arbitrator as provided above, an arbitrator with substantial experience in executive employment matters will be appointed by the AAA as provided in the Arbitration Rules. The Company will pay all of the reasonable fees, if any, and expenses of the arbitrator and the arbitration, unless otherwise determined by the arbitrator. Each party to the arbitration will be responsible for his/its respective attorneys’ fees or other costs of representation.

(2) Location. The arbitration will be conducted in Oakland County, Michigan.

(3) Procedure. At any oral hearing of evidence in connection with the arbitration, each party or its legal counsel will have the right to examine its witnesses and cross-examine the witnesses of any opposing party. No evidence of any witness may be presented in any form unless the opposing party or parties has the opportunity to cross-examine the witness, except under extraordinary circumstances in which the arbitrator determines that the interests of justice require a different procedure.

(4) Decision. Any decision or award of the arbitrator is final and binding on the parties to the arbitration proceeding. The parties agree that the arbitration award may be enforced against the parties to the arbitration proceeding or their assets wherever they may be found and that a judgment upon the arbitration award may be entered in any court having jurisdiction.

(5) Power. Nothing contained in this Agreement may be deemed to give the arbitrator any authority, power, or right to alter, change, amend, modify, add to, or subtract from any of the provisions of this Agreement.

The provisions of this Section II.B.3 survive the termination or expiration of this Agreement, are binding on the Company’s and Grantee’s respective successors, heirs, personal representatives, designated beneficiaries and any other person asserting a claim described above, and may not be modified without the consent of the Company. To the extent arbitration is required, no person asserting a claim has the right to resort to any federal, state or local court or administrative agency concerning the claim unless expressly provided by federal statute, and the decision of the arbitrator is a complete defense to any action or proceeding instituted in any tribunal or agency with respect to any dispute, unless precluded by federal statute.

4. Restrictive Covenants.

(a)Generally. The Company would not be providing PSUs or Common Stock to Grantee without Grantee’s agreement to abide by the restrictive covenants described herein. The provisions herein are appropriate in light of the position that Grantee has with the Company and the relationships and confidential and trade secret information that Grantee has been and will be exposed to because of Grantee’s position. Notwithstanding anything herein to the contrary, if Grantee is subject to the restrictive covenants set forth in Section 7 (or any successor provision) of the TriMas Corporation Executive Severance/Change of Control Policy (or any successor policy), then (1) such restrictive covenants, rather than the restrictive covenants in this Section II.B.4, shall apply to Grantee, and (2) Grantee’s violation of such restrictive covenants shall be treated as a violation of the restrictive covenants in this Section II.B.4 for purposes of this Agreement.

disclosure (1) is made in confidence to a federal, state or local government official or to an attorney for the sole purpose of reporting or investigating a suspected violation of law or (2) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b). Notwithstanding anything in this Agreement to the contrary, nothing in this Agreement prevents Grantee from providing, without prior notice to the Company, information to governmental authorities regarding possible legal violations or otherwise testifying or participating in any investigation or proceeding by any governmental authorities regarding possible legal violations, and for purpose of clarity Grantee is not prohibited from providing information voluntarily to the Securities and Exchange Commission pursuant to Section 21F of the Exchange Act.

(c)Covenants Against Competition and Solicitation. Grantee agrees that, while Grantee is employed by the Company, and for 12 months thereafter, Grantee shall not engage, either directly or indirectly, as a principal for Grantee’s own account or jointly with others, or as a stockholder in any corporation or joint stock association, or as a partner or member of a general or limited liability entity, or as an employee, officer, director, agent, consultant or in any other advisory capacity in any Competitive Business that designs, develops, manufactures, distributes, sells or markets the type of products or services sold, distributed or provided by the Company, during the one-year period prior to the date of employment termination and with which Grantee was involved and/or oversaw (the “Business”); provided that nothing herein shall prevent Grantee from owning, directly or indirectly, not more than five percent of the outstanding shares of, or any other equity interest in, any entity engaged in the Business and listed or traded on a national securities exchange or in an over-the-counter securities market.

Grantee further understands and agrees that during and within 12 months after being employed by the Company, Grantee shall not directly or indirectly (1) employ or solicit, or receive or accept the performance of services by, any then-current employee of the Company who is employed primarily in connection with the Business or any former employee of the Company who was employed by the Company primarily in connection with the Business at any time within the 12-month period immediately prior to such employment, solicitation, receipt or acceptance, except in connection with general, non-targeted recruitment efforts such as advertisements and job listings, or directly or indirectly induce any employee of the Company to leave the Company, or assist in any of the foregoing, or (2) solicit business (relating to the Business) from; attempt to entice away from the Company; or interfere with the Company’s relationship with any entity that is a client or customer of the Company at the time of such solicitation, enticement, or interference; or that was or was identified or solicited as a client or customer of the Company during the time that Grantee performed services for the Company, unless such entity shall have ceased to have been such a customer for a period of at least six months as of the time of such solicitation.

(d)Determination by the Board. Upon entering into this Agreement, Grantee understands and agrees that a determination of the Board shall be final and binding on the issue of whether Grantee’s actions are or will be in violation of this Section II.B.4. Grantee may request in writing from the Board an advance determination as to whether Grantee’s proposed actions will violate this Section II.B.4.

(e)Certain Definitions. The following definitions shall apply solely with respect to this Section II.B.4:

the Grantee’s employment with the Company, and (B) after the Grantee’s termination of employment with the Company, the Company and any and all direct and indirect subsidiary, parent, affiliated or related companies of the Company for which Grantee worked or had responsibility at the time of the Grantee’s termination of employment and at any time during the one-year period prior to such termination of employment.

(2) “Competitive Business” means a person or entity that engages in any business engaged in by the Company, and that does so in a geographic area in which the Company engage(s) in that business, and “engages” includes actively planning to engage in the business.

(3) “Confidential Information” means trade secrets of the Company and all other confidential or proprietary information that relates to any aspect of the Company’s businesses that cannot freely and readily be obtained from sources outside of the Company. Confidential Information is meant to encompass the broadest enforceable definition of the Company’s intellectual property, and includes but is not limited to: financial and business information; customer and potential customer lists; customer contact information; pricing policies; vendor lists and information; third-party agreements and relationships; contractual, business, and financial information relating to the Company’s customers or other third parties which the Company is obligated to hold in confidence and/or not disclose; personnel, medical, compensation, and benefits information relating to employees, former employees, and persons affiliated with the Company; systems, login identifications and passwords, processes, methods, and policies; company strategies and plans; databases, company data, and technologies related to the Company’s business; and marketing and advertising materials which have not been published. “Confidential Information” shall not include information that Grantee can establish was already in the public domain at the time of disclosure through no fault of Grantee.

(f) Separate Covenants. Each of the covenants contained in this Section II.B.4 are separate and distinct covenants of Grantee.

5. Section 409A of the Code. To the extent applicable, it is intended that this Agreement and the Plan comply with or be exempt from the provisions of Section 409A of the Code. This Agreement and the Plan shall be administered in a manner consistent with this intent, and any provision that would cause this Agreement or the Plan to fail to satisfy Section 409A of the Code shall have no force or effect until amended to comply with or be exempt from Section 409A of the Code (which amendment may be retroactive to the extent permitted by Section 409A of the Code and may be made by the Company without the consent of the Grantee).

6. No Continued Right as Service Provider. Nothing in the Plan or in this Agreement confers on Grantee any right to continue as a Service Provider, or interferes with or restricts in any way the rights of the Company or any Subsidiary, which are hereby expressly reserved, to discharge Grantee at any time for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written employment agreement between Grantee and the Company or any Subsidiary.

7. Effect on Other Benefits. In no event will the value, at any time, of the PSUs or any other payment or right to payment under this Agreement be included as compensation or earnings for purposes of any other compensation, retirement, or benefit plan offered to employees of, or other Service Providers to, the Company or any Subsidiary unless otherwise specifically provided for in such plan.

8. Third-Party Beneficiaries. If Grantee is or was employed by a subsidiary of the Company, then such subsidiary is intended to be a third-party beneficiary of this Agreement and shall have the right to enforce this Agreement, including, but not limited to, the provisions of Section II.B.4.

9. Unfunded and Unsecured General Creditor. Grantee, as a holder of PSUs and rights under this Agreement has no rights other than those of a general creditor of the Company. The PSUs represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of this Agreement and the Plan.

10. Severability. If any provision of this Agreement or the application of any provision hereof to any person or circumstances is held invalid or unenforceable, the remainder of this Agreement and the application of such provision to any other person or circumstances shall not be affected, and the provisions so held to be invalid or unenforceable shall be reformed to the extent (and only to the extent) necessary to make it enforceable and valid.

11. Electronic Delivery. The Company may, in its sole discretion, deliver any documents related to the PSUs and Grantee’s participation in the Plan, or future awards that may be granted under the Plan, by electronic means or request Grantee’s consent to participate in the Plan by electronic means. Grantee hereby consents to receive such documents by electronic delivery and, if requested, agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.

12. Nature of Grant. In accepting this Award, Grantee acknowledges that:

(a) the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time unless otherwise provided in the Plan or this Agreement;

(b) the grant of this Award is voluntary and occasional and does not create any contractual or other right to receive future grants of awards, or benefits in lieu of awards, even if awards have been granted repeatedly in the past,

(d) Grantee is voluntarily participating in the Plan;

(e) the PSUs and the Common Stock subject to the PSUs are an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to the Company or Grantee’s employer, and which is outside the scope of Grantee’s employment contract, if any;

(f) the PSUs and the Common Stock subject to the PSUs are not intended to replace any pension rights or compensation;

(g) the future value of the underlying Common Stock is unknown and cannot be predicted with certainty;

(h) Awards and resulting benefits are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments insofar as permitted by law;

(i) in consideration of the grant of the PSUs, no claim or entitlement to compensation or damages shall arise from forfeiture of the PSUs resulting from termination of Grantee’s employment with the Company or Grantee’s employer (for any reason whatsoever and whether or not in breach of local labor laws) and Grantee irrevocably releases the Company and Grantee’s employer from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, Grantee shall be deemed irrevocably to have waived any entitlement to pursue such claim; and

(j) in the event Grantee ceases to be a Service Provider (whether or not in breach of local labor laws), Grantee’s right to vest in the PSUs under the Plan, if any, will terminate effective as of the date that Grantee is no longer a Service Provider and will not be extended by any notice period mandated under local law (e.g., active service would not include a period of “garden leave” or similar period pursuant to local law); the Committee shall have the exclusive discretion to determine when Grantee is no longer a Service Provider for purposes of the PSUs.

13. Addenda for Certain Participants.

(a) Non-U.S. Participants. Notwithstanding any provisions in this Agreement, the PSUs shall also be subject to the special terms and conditions set forth in the Non-U.S. Addendum attached as Appendix C to this Agreement for Grantee’s country. Moreover, if Grantee relocates to one of the countries included in the Non-U.S. Addendum, the special terms and conditions for such country will apply to Grantee to the extent the Company determines that the application of such terms and conditions are necessary or advisable in order to comply with local law or facilitate the administration of the Plan. The Non-U.S. Addendum attached hereto as Appendix C constitutes part of this Agreement.

(b) California Participants. Notwithstanding any provisions in this Agreement, the PSUs shall also be subject to the special terms and conditions set forth in the California Addendum attached as Appendix D to this Agreement if Grantee is employed and/or resides in California or if the Company determines that the application of such terms and conditions is necessary or advisable in order to comply with applicable law. The California Addendum attached hereto as Appendix D constitutes part of this Agreement.

14. Amendments. Any amendment to the Plan shall be deemed to be an amendment to this Agreement to the extent that the amendment is applicable hereto; provided, however, that (a) no amendment shall materially adversely affect the rights of Grantee under this Agreement without Grantee’s written consent, and (b) Grantee’s consent shall not be required to an amendment that is deemed necessary by the Company to ensure compliance with Section 409A of the Code or Section 10D of the Exchange Act.

15. Relation to Plan. This Agreement is subject to the terms and conditions of the Plan. In the event of any inconsistency between the provisions of this Agreement and the Plan, the Plan shall govern. The Committee acting pursuant to the Plan, as constituted from time to time, shall, except as expressly provided otherwise herein or in the Plan, have the right to determine any questions which arise in connection with this Agreement.

16. Governing Law. This Agreement is governed by and construed in accordance with the laws of the State of Delaware, notwithstanding conflict of law provisions.

17. Clawback Policy.

(a)Any shares of Common Stock issued to Grantee in settlement of the PSUs (plus dividend equivalent payments) shall be subject to the terms of this Agreement and the Company’s recoupment policy, if any, as in effect from time to time. Further, notwithstanding anything in this Agreement to the contrary, Grantee acknowledges and agrees that (a) this Agreement and this Award described herein (and any settlement thereof) are subject to the terms and conditions of such policy, or any other form of Company recoupment (or similar) policy (if any) as may be in effect from time to time including specifically to implement Section 10D of the Exchange Act and any applicable rules or regulations promulgated thereunder (including applicable rules and regulations of any national securities exchange on which the Common Stock may be traded) (the “Compensation Recovery Policy”), and (b) applicable provisions of this Agreement shall be deemed superseded by and subject to the terms and conditions of the Compensation Recovery Policy from and after the effective date thereof.

(b)Without limiting the foregoing, violation of Section II.B.4 of this Agreement prior to the Settlement Date and thereafter, as determined by the Board, shall result in the forfeiture of the PSUs, and clawback and recoupment of any shares of Common Stock issued or transferred to Grantee in settlement of the PSUs (plus dividend equivalent payments).

(Signature Page Follows)

This Agreement may be executed in two or more counterparts, each of which is deemed an original and all of which constitute one document.

TRIMAS CORPORATION



Dated as of: [grant date]	By: /s/ Joshua A. Sherbin Name: Joshua A. Sherbin Title: Senior Vice President and General Counsel

GRANTEE ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS AGREEMENT, NOR IN THE PLAN, CONFERS ON GRANTEE ANY RIGHT WITH RESPECT TO CONTINUATION AS A SERVICE PROVIDER OF THE COMPANY OR ANY PARENT OR SUBSIDIARY, NOR INTERFERES IN ANY WAY WITH GRANTEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE GRANTEE’S SERVICE PROVIDER RELATIONSHIP AT ANY TIME, WITH OR WITHOUT CAUSE AND WITH OR WITHOUT PRIOR NOTICE.

BY CLICKING THE “ACCEPT” BUTTON, GRANTEE ACKNOWLEDGES RECEIPT OF A COPY OF THE PLAN AND REPRESENTS THAT GRANTEE IS FAMILIAR WITH THE TERMS AND PROVISIONS OF THE PLAN. GRANTEE ACCEPTS THIS PERFORMANCE-BASED RESTRICTED STOCK UNITS AWARD SUBJECT TO ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT AND THE PLAN. GRANTEE HAS REVIEWED THE PLAN AND THIS AGREEMENT IN THEIR ENTIRETY. GRANTEE AGREES TO ACCEPT AS BINDING, CONCLUSIVE AND FINAL ALL DECISIONS OR INTERPRETATIONS OF THE COMMITTEE UPON ANY QUESTIONS ARISING UNDER THE PLAN OR THIS AWARD.

APPENDIX A

PERFORMANCE STOCK UNITS AGREEMENT

PERFORMANCE GOALS FOR PSU AWARD

The actual number of PSUs earned by Grantee will be determined by the Committee by March 11, 2023 following the end of the Performance Period (“Determination Date”), using data as of, and including, December 31, 2022 under the rules described below. Any PSUs not earned as of the Determination Date will be canceled and forfeited.

1. The actual number of shares of Common Stock delivered to Grantee in settlement of the PSUs earned under this Agreement will be determined based on actual performance results as described below, subject to Section II.A.1 of the Agreement.

2. The PSUs subject to this Award are earned based on the achievement of specific performance measures over the Performance Period (i.e., January 1, 2020 through December 31, 2022) and determined on the Determination Date.

3. 50% of the Target PSUs will be earned based on the achievement of EPS CAGR (the “EPS CAGR PSUs”), and 50% of the Target PSUs will be earned based on the achievement of Relative Total Shareholder Return (“RTSR PSUs”).

4. Definitions. For purposes hereof:

(A)

“EPS CAGR” means the cumulative average growth rate during the Performance Period of the diluted earnings per share from continuing operations as reported in the Company’s Income Statement within the applicable Form 10-Q and Form 10-K, plus or minus special items that may occur from time-to-time that the Committee believes should adjust the as-reported results for measurement of performance.


(B)	“Peer Group” means, of a benchmark group of 92 entities currently in the S&P SmallCap 600 Capped Industrials index (the names of which are attached hereto as Annex A), those entities that remain in the Peer Group as of the end of the Performance Period after application of the Peer Group Adjustment Protocol.

(C)

“Peer Group Adjustment Protocol” means: (i) if an entity listed in Annex A files for bankruptcy and/or liquidation, is operating under bankruptcy protection, or is delisted from its primary stock exchange because it fails to meet the exchange listing requirements, then such entity will remain in the Peer Group, but RTSR for the Performance Period will be calculated as if such entity achieved Total Shareholder Return placing it at the bottom (chronologically, if more than one such entity) of the Peer Group; (ii) if, by the last day of the Performance Period, an entity listed in Annex A has been acquired and/or is no longer existing as a public company that is traded on its primary stock exchange (other than for the reasons as described in subsection (i) above), then such entity will not remain in the Peer Group and RTSR for the Performance Period will be calculated as if such entity had never been a member of the Peer Group; and (iii) except as otherwise described in subsection (i) and (ii) above, for purposes of this performance goal, for each of the entities listed in Annex

A, such entity shall be deemed to include any successor to all or substantially all of the primary business of such entity at end of the Performance Period.


(D)	“Relative Total Shareholder Return” or “RTSR” means the percentile rank of the Company’s Total Shareholder Return among the Total Shareholder Returns of all members of the Peer Group, ranked in descending order, at the end of the Performance Period.

(E)

“Total Shareholder Return” means, with respect to the Common Stock and the common stock of each of the members of the Peer Group, a rate of return reflecting stock price appreciation, plus the reinvestment of dividends in additional shares of stock, from the beginning of the Performance Period through the end of the Performance Period. For purposes of calculating Total Shareholder Return for each of the Company and the members of the Peer Group, the beginning stock price will be based on the average closing stock price for the 20 trading days immediately preceding January 1, 2020 on the principal stock exchange on which the stock is then traded and the ending stock price will be based on the average closing stock price for the 20 trading days immediately preceding January 1, 2023 on the principal stock exchange on which the stock then trades.

5. EPS CAGR Performance Matrix. From 0% to 200% of the EPS CAGR PSUs will be earned based on achievement of the EPS CAGR performance goal during the Performance Period as follows:



EPS CAGR %	EPS CAGR PSUs Earned
	40.0%
	50.0%
	65.0%
	77.5.%
	90.0%
	100.0%
	120.0%
	140.0%
	160.0%
	180.0%
	200.0%

6. Number of EPS CAGR PSUs Earned. Following the Performance Period, on the Determination Date, the Committee shall determine whether and to what extent the EPS CAGR performance goal has been satisfied for the Performance Period and shall determine the number of EPS CAGR PSUs that shall become nonforfeitable hereunder and under the Agreement on the basis of the following:


(A)	Below Threshold. If, upon the conclusion of the Performance Period, EPS CAGR for the Performance Period falls below the lowest EPS CAGR level set forth in the Performance Matrix, no EPS CAGR PSUs shall become nonforfeitable.

(B)

Threshold or Above. If, upon the conclusion of the Performance Period, EPS CAGR for the Performance Period is exactly equal to one of the levels set forth in the Performance Matrix, a percentage of the EPS CAGR PSUs equal to the percentage set forth opposite such level in the Performance Matrix (rounded down to the nearest whole number of PSUs) shall become nonforfeitable. If, upon the conclusion of the Performance Period, EPS CAGR for the

Performance Period falls between two levels set forth in the Performance Matrix, a percentage of the EPS CAGR PSUs shall become nonforfeitable based on straight-line mathematical interpolation between the percentages applicable to such levels (rounded down to the nearest whole number of PSUs).

7. RTSR Performance Matrix. From 0% to 200% of the RTSR PSUs will be earned based on achievement of the RTSR performance goal during the Performance Period as follows:



Performance Level	Relative Total Shareholder Return	RTSR PSUs Earned
Threshold	Ranked below or at percentile	0%
Above Threshold	Ranked at percentile	50%
Target	Ranked at percentile	100%
Intermediate	Ranked at percentile	150%
Maximum	Ranked at or above percentile	200%

8. Number of RTSR PSUs Earned. Following the Performance Period, on the Determination Date, the Committee shall determine whether and to what extent the RTSR performance goal has been satisfied for the Performance Period and shall determine the number of RTSR PSUs that shall become nonforfeitable hereunder and under the Agreement on the basis of the following:


(A)	Threshold. If, upon the conclusion of the Performance Period, RTSR for the Performance Period equals or falls below the “Threshold” level, as set forth in the Performance Matrix, no RTSR PSUs shall become nonforfeitable.

(B)

Between Threshold and Above Threshold. If, upon the conclusion of the Performance Period, RTSR for the Performance Period exceeds the “Threshold” level, but is less than the “Above Threshold” level, as set forth in the Performance Matrix, a percentage between 0% and 50% (determined on the basis of straight-line mathematical interpolation) of the RTSR PSUs (rounded down to the nearest whole number of PSUs) shall become nonforfeitable.


(C)	Above Threshold. If, upon the conclusion of the Performance Period, RTSR for the Performance Period equals the “Above Threshold” level, as set forth in the Performance Matrix, 50% of the RTSR PSUs (rounded down to the nearest whole number of PSUs) shall become nonforfeitable.

(D)

Between Above Threshold and Target. If, upon the conclusion of the Performance Period, RTSR for the Performance Period exceeds the “Above Threshold” level, but is less than the “Target” level, as set forth in the Performance Matrix, a percentage between 50% and 100% (determined on the basis of straight-line mathematical interpolation) of the RTSR PSUs (rounded down to the nearest whole number of PSUs) shall become nonforfeitable.


(E)	Target. If, upon the conclusion of the Performance Period, RTSR for the Performance Period equals the “Target” level, as set forth in the Performance Matrix, 100% of the RTSR PSUs shall become nonforfeitable.


(F)	Between Target and Intermediate. If, upon the conclusion of the Performance Period, RTSR for the Performance Period exceeds the “Target” level, but is less than the “Intermediate” level, as set forth in the Performance Matrix, a percentage between 100% and 150%

iii

(determined on the basis of straight-line mathematical interpolation) of the RTSR PSUs (rounded down to the nearest whole number of PSUs) shall become nonforfeitable.


(G)	Intermediate. If, upon the conclusion of the Performance Period, RTSR for the Performance Period equals the “Intermediate” level, as set forth in the Performance Matrix, 150% of the RTSR PSUs shall become nonforfeitable.

(H)

Between Intermediate and Maximum. If, upon the conclusion of the Performance Period, RTSR for the Performance Period exceeds the “Intermediate” level, but is less than the “Maximum” level, as set forth in the Performance Matrix, a percentage between 150% and 200% (determined on the basis of straight-line mathematical interpolation) of the RTSR PSUs (rounded down to the nearest whole number of PSUs) shall become nonforfeitable.


(I)	Equals or Exceeds Maximum. If, upon the conclusion of the Performance Period, RTSR for the Performance Period equals or exceeds the “Maximum” level, as set forth in the Performance Matrix, 200% of the RTSR PSUs shall become nonforfeitable.

ANNEX A



S&P SmallCap 600 Industrials (January 1, 2020)
Company Name	Ticker		Company Name	Ticker	Company Name	Ticker
AAON, Inc.	AAON	Federal Signal Corporation		FSS	Park Aerospace Corp.	PKE
AAR Corp.	AIR	Forrester Research, Inc.		FORR	Patrick Industries, Inc.	PATK
ABM Industries Incorporated	ABM	Forward Air Corporation		FWRD	PGT Innovations, Inc.	PGTI
Aegion Corporation	AEGN	Foundation Building Materials, Inc.		FBM	Pitney Bowes Inc.	PBI
Aerojet Rocketdyne Holdings, Inc.	AJRD	Franklin Electric Co., Inc.		FELE	Powell Industries, Inc.	POWL
AeroVironment, Inc.	AVAV	Gibraltar Industries, Inc.		ROCK	Proto Labs, Inc.	PRLB
Alamo Group Inc.	ALG	GMS Inc.		GMS	Quanex Building Products Corporation	NX
Albany International Corp.	AIN	Granite Construction Incorporated		GVA	R.R. Donnelley & Sons Company	RRD
Allegiant Travel Company	ALGT	Griffon Corporation		GFF	Raven Industries, Inc.	RAVN
American Woodmark Corporation	AMWD	Harsco Corporation		HSC	Resources Connection, Inc.	RECN
Apogee Enterprises, Inc.	APOG	Hawaiian Holdings, Inc.		HA	Saia, Inc.	SAIA
Applied Industrial Technologies, Inc.	AIT	Heartland Express, Inc.		HTLD	Simpson Manufacturing Co., Inc.	SSD
ArcBest Corporation	ARCB	Heidrick & Struggles International, Inc.		HSII	SkyWest, Inc.	SKYW
Arcosa, Inc.	ACA	Hillenbrand, Inc.		HI	SPX Corporation	SPXC
Astec Industries, Inc.	ASTE	Hub Group, Inc.		HUBG	SPX FLOW, Inc.	FLOW
Atlas Air Worldwide Holdings, Inc.	AAWW	Insteel Industries, Inc.		IIIN	Standex International Corporation	SXI
AZZ Inc.	AZZ	Interface, Inc.		TILE	Team, Inc.	TISI
Barnes Group Inc.	B	John Bean Technologies Corporation		JBT	Tennant Company	TNC
Brady Corporation	BRC	Kaman Corporation		KAMN	The Greenbrier Companies, Inc.	GBX
Briggs & Stratton Corporation	BGG	Kelly Services, Inc.		KELY.A	Titan International, Inc.	TWI
Chart Industries, Inc.	GTLS	Korn Ferry		KFY	Triumph Group, Inc.	TGI
CIRCOR International, Inc.	CIR	Lindsay Corporation		LNN	TrueBlue, Inc.	TBI
Comfort Systems USA, Inc.	FIX	Lydall, Inc.		LDL	UniFirst Corporation	UNF
Cubic Corporation	CUB	Marten Transport, Ltd.		MRTN	Universal Forest Products, Inc.	UFPI
DXP Enterprises, Inc.	DXPE	Matson, Inc.		MATX	US Ecology, Inc.	ECOL
Echo Global Logistics, Inc.	ECHO	Matthews International Corporation		MATW	Veritiv Corporation	VRTV
Encore Wire Corporation	WIRE	Mobile Mini, Inc.		MINI	Viad Corp	VVI
Enerpac Tool Group Corp.	EPAC	Moog Inc.		MOG.A	Vicor Corporation	VICR
EnPro Industries, Inc.	NPO	Mueller Industries, Inc.		MLI	Wabash National Corporation	WNC
ESCO Technologies Inc.	ESE	MYR Group Inc.		MYRG	Watts Water Technologies, Inc.	WTS
Exponent, Inc.	EXPO	National Presto Industries, Inc.		NPK

APPENDIX B

PERFORMANCE STOCK UNITS AGREEMENT

GLOSSARY

For purposes of this Agreement:

“Cause” means (a) Grantee’s conviction of or plea of guilty or nolo contendere to a crime constituting a felony under the laws of the United States or any State thereof or any other jurisdiction in which the Company or its Subsidiaries conduct business; (b) Grantee’s willful misconduct in the performance of his or her duties to the Company or its Subsidiaries and failure to cure such breach within thirty (30) days following written notice thereof from the Company; (c) Grantee’s willful failure or refusal to follow directions from the Board (or direct reporting executive) and failure to cure such breach within thirty (30) days following written notice thereof from the Board; or (d) Grantee’s breach of fiduciary duty to the Company or its Subsidiaries for personal profit. Any failure by the Company or a Subsidiary of the Company to notify Grantee after the first occurrence of an event constituting Cause shall not preclude any subsequent occurrences of such event (or a similar event) from constituting Cause.

“Disability” (and similar terms) means Grantee’s physical or mental condition resulting from any medically determinable physical or mental impairment that renders Grantee incapable of engaging in any substantial gainful employment and that can be expected to result in death or that has lasted or can be expected to last for a continuous period of not less than 365 days. Notwithstanding the foregoing, Grantee shall not be deemed to be Disabled as a result of any condition that:


(a)	was contracted, suffered, or incurred while Grantee was engaged in, or resulted from Grantee having engaged in, a felonious activity;


(b)	resulted from an intentionally self-inflicted injury or an addiction to drugs, alcohol, or substances which are not administered under the direction of a licensed physician as part of a medical treatment plan; or


(c)	resulted from service in the Armed Forces of the United States for which Grantee received or is receiving a disability benefit or pension from the United States, or from service in the armed forces of any other country irrespective of any disability benefit or pension.

The Disability of Grantee and the date on which Grantee ceases to be a Service Provider by reason of Disability shall be determined by the Committee, in accordance with uniform principles consistently applied, on the basis of such evidence as the Committee and the Company deem necessary and desirable, and its good faith determination shall be conclusive for all purposes of the Plan. The Committee or the Company shall have the right to require Grantee to submit to an examination by a physician or physicians and to submit to such reexaminations as the Committee or the Company shall require in order to make a determination concerning Grantee’s physical or mental condition; provided, however, that Grantee may not be required to undergo a medical examination more often than once each 180 days. If Grantee engages in any occupation or employment (except for rehabilitation as determined by the Committee) for remuneration or profit, which activity would be inconsistent with the finding of Disability, or if the Committee, on the recommendation of the Company, determines on the basis of a medical examination that Grantee no longer has a Disability, or if Grantee refuses to submit to any medical examination properly requested by the Committee or the Company, then in any such event Grantee shall be deemed to have recovered from such Disability.

“Good Reason” means:


(a)	A material and permanent diminution in Grantee’s duties or responsibilities;


(b)	A material reduction in the aggregate value of base salary and bonus opportunity provided to Grantee by the Company; or


(c)	A permanent reassignment of Grantee to another primary office more than 50 miles from the current office location.

Grantee must notify the Company of Grantee’s intention to invoke termination for Good Reason within 90 days after Grantee has knowledge of such event and provide the Company 30 days’ opportunity for cure, and Grantee must actually terminate Grantee’s employment with the Company prior to the 365th day following such occurrence or such event shall not constitute Good Reason. Grantee may not invoke termination for Good Reason if Cause exists or Grantee has violated Section II.B.4 of the Agreement at the time of such termination.

“Qualifying Termination” means a termination of Grantee’s status as a Service Provider with the Company or a Subsidiary for any reason other than:

(i) death;

(ii) Disability; or

(iii) Cause; or

(iv) by Grantee without Good Reason.

“Retirement” means termination of Grantee’s status as a Service Provider with the consent of the Committee after attaining age 55 and five years of service with the Company and its Subsidiaries.

“Service Provider” means an individual actively providing services to the Company or a Subsidiary.

vii

Exhibit 10.2

Restricted Stock Units Award

Three-Year Vest

TRIMAS CORPORATION

2017 EQUITY AND INCENTIVE COMPENSATION PLAN

RESTRICTED STOCK UNITS AGREEMENT

TriMas Corporation (the “Company”), as permitted by the TriMas Corporation 2017 Equity and Incentive Compensation Plan (“Plan”), and as approved by the Committee, has granted to the individual listed below (“Grantee”), a Restricted Stock Units award (“Award”) for the number of Restricted Stock Units set forth below (“Restricted Stock Units”), subject to the terms and conditions of the Plan and this Restricted Stock Units Agreement (“Agreement”).

Unless otherwise defined in this Agreement or in Appendix A to this Agreement, the terms used in this Agreement have the same meanings as defined in the Plan.

I. NOTICE OF AWARD



Grantee:	[specify Grantee’s name]
Date of Agreement:	As of [enter date]
Date of Grant:	[grant date]
Number of Restricted Stock Units:	[number of Restricted Stock Units]

II. AGREEMENT

A. Grant of Restricted Stock Units. The Company has granted to Grantee (who, pursuant to this Award is a Participant in the Plan) the number of Restricted Stock Units set forth above, subject to the terms of this Agreement. The Restricted Stock Units granted under this Agreement are payable only in shares of Common Stock as described in Section II.A.2. Notwithstanding anything to the contrary anywhere else in this Agreement, the Restricted Stock Units evidenced by this Award are subject to the terms and provisions of the Plan, which are incorporated by reference into this Agreement.

1. Vesting.

(a)General. Subject to Section II.A.1(b), the Restricted Stock Units will vest in three substantially equal installments on the first three anniversaries of the Date of Grant (each, a “Vesting Date”), subject generally to Grantee’s continued status as a Service Provider through each such Vesting Date.

(b)Termination of Service; Forfeiture. Notwithstanding any other provision of this Agreement:

(i) Voluntary Termination; Termination for Cause; Breach of Other Obligations. Any unvested Restricted Stock Units subject to this Award will be canceled and forfeited if Grantee voluntarily terminates as a Service Provider (other than for Good Reason as provided below), if Grantee’s status as a Service Provider is involuntarily terminated by the Company or a Subsidiary for Cause, or if Grantee violates the provisions of Section II.B.4 below. Notwithstanding the foregoing, no termination of Grantee’s employment shall qualify as a termination for Cause unless (x) the Company notifies Grantee in writing of the Company’s intention to terminate Grantee’s employment for Cause within 90 days following the initial existence of the occurrence or event giving rise to Cause, (y) Grantee fails to cure such occurrence or event within 30 days after receipt of such notice from the Company and (z) the Company terminates Grantee’s employment within 45 days after the expiration of Grantee’s cure period in subsection (y).

(ii) Death; Disability. If Grantee ceases to be a Service Provider prior to any Vesting Date as a result of Grantee’s death or Disability, Grantee shall fully vest in the Restricted Stock Units subject to this Award that have not already vested as of the date on which Grantee ceases to be a Service Provider due to Grantee’s death or Disability.

(iii) Qualifying Termination Prior to a Change in Control. If Grantee has a Qualifying Termination that occurs prior to (or more than two years after) a Change in Control and before the final Vesting Date, Grantee shall vest in a pro-rata portion of Grantee’s unvested Restricted Stock Units, with the pro-rata amount calculated by (x) multiplying the total number of Restricted Stock Units subject to this Award by a fraction with (i) a numerator equaling the number of whole calendar months that have elapsed from the Date of Grant to the date of Grantee’s Qualifying Termination, and (ii) a denominator equal to 36, and then (y) subtracting the number of Restricted Stock Units that have already vested under this Award.

(iv) Retirement. If Grantee ceases to be a Service Provider as a result of Grantee’s Retirement, the Committee may, in its discretion, permit Grantee to receive a pro-rata portion of the Restricted Stock Units, with the pro-rata portion determined in accordance with Section II.A.1(b)(iii).

(v) Change in Control. In the event of a Change in Control that occurs prior to the vesting of any portion of the Restricted Stock Units subject to this Award, such unvested Restricted Stock Units shall vest in accordance with this Section II.A.1(b)(v).

(A) Notwithstanding anything to the contrary herein, if at any time before the vesting or forfeiture of Restricted Stock Units subject to this Award, and while Grantee is continuously a Service Provider, a Change in Control occurs, then the Restricted Stock Units will become nonforfeitable and payable to Grantee in accordance with Section II.A.2 hereof, except to the extent that a Replacement Award is provided to Grantee in accordance with Section II.A.1(b)(v)(B) to continue, replace or assume the Restricted Stock Units covered by this Award (the “Replaced Award”).

(B) For purposes of this Agreement, a “Replacement Award” means an award (1) of the same type (e.g., time-based restricted stock units) as the Replaced Award, (2) that has a value at least equal to the value of the Replaced Award, (3) that relates to publicly traded equity securities of the Company or its successor in the Change in Control or another entity that is affiliated with the Company or its

successor following the Change in Control, (3) if Grantee holding the Replaced Award is subject to U.S. federal income tax under the Code, the tax consequences of which to such Grantee under the Code are not less favorable to such Grantee than the tax consequences of the Replaced Award, and (E) the other terms and conditions of which are not less favorable to Grantee holding the Replaced Award than the terms and conditions of the Replaced Award (including the provisions that would apply in the event of a subsequent Change in Control). A Replacement Award may be granted only to the extent it does not result in the Replaced Award or Replacement Award failing to comply with or be exempt from Section 409A of the Code. Without limiting the generality of the foregoing, the Replacement Award may take the form of a continuation of the Replaced Award if the requirements of the two preceding sentences are satisfied. The determination of whether the conditions of this Section II.A.1(b)(v)(B) are satisfied will be made by the Committee, as constituted immediately before the Change in Control, in its sole discretion.

(C) If, after receiving a Replacement Award, Grantee experiences a Qualifying Termination with the Company or a Subsidiary (or any of their successors) (as applicable, the “Successor”) within a period of two years after the Change in Control and during the remaining vesting period for the Replacement Award, the Replacement Award shall become fully vested and nonforfeitable with respect to the time-based restricted stock units covered by such Replacement Award upon such termination.

(D) If a Replacement Award is provided, notwithstanding anything in this Agreement to the contrary, any outstanding Restricted Stock Units subject to this Award that at the time of the Change in Control are not subject to a “substantial risk of forfeiture” (within the meaning of Section 409A of the Code) will be deemed to be vested and nonforfeitable at the time of such Change in Control.

Any Restricted Stock Units that do not vest in accordance with Section II.A.1(a) or this Section II.A.1(b) shall be canceled and forfeited as of the date Grantee ceases to be a Service Provider. However, in particular, this Award is subject to Section 18(c) of the Plan.

2. Settlement.

(a) General. Subject to Section II.A.2(b) below, and as soon as administratively practicable following (but no later than thirty (30) days following) each applicable Vesting Date, the Company shall issue Grantee one share of Common Stock for each Restricted Stock Unit that is vested (but has not previously been settled) on such Vesting Date.

(b) Other Payment Events. Notwithstanding Section II.A.2(a), to the extent that the Restricted Stock Units are vested on the dates set forth below, payment with respect to the Restricted Stock Units will be made as follows:

(1) to the extent the Restricted Stock Units are vested as a result of Section II.A.1(b) (and have not previously been settled) on the date of Grantee’s separation from service (within the meaning of Section 409A(a)(2)(A)(i) of the Code), the Company shall issue Grantee one share of Common Stock for each vested Restricted Stock Unit as soon as

practicable following (but no later than thirty (30) days following) the date of such separation from service; and

(2) to the extent the Restricted Stock Units are vested as a result of Section II.A.1(b) (and have not previously been settled) on the date of a Change in Control, the Company shall issue Grantee one share of Common Stock for each vested Restricted Stock Unit as soon as practicable following (but no later than thirty (30) days following) the date of the Change in Control; provided, however, that if such Change in Control would not qualify as a permissible date of distribution under Section 409A(a)(2)(A) of the Code, and the regulations thereunder, and where Section 409A of the Code applies to such distribution, Grantee is entitled to receive the corresponding payment on the date that would have otherwise applied pursuant to Sections II.A.2(a) or II.A.2(b)(1) as though such Change in Control had not occurred.

3. Dividend Equivalent Rights. Grantee shall be credited with cash per Restricted Stock Unit equal to the amount of each cash dividend paid by the Company (if any) to holders of Common Stock generally with a record date occurring on or after the Date of Grant and prior to the time when the Restricted Stock Units are settled in accordance with Section II.A.2 hereof. Any amounts credited pursuant to the immediately preceding sentence shall be subject to the same applicable terms and conditions (including vesting, payment or forfeitability) as apply to the Restricted Stock Units based on which the dividend equivalents were credited, and such amounts shall be paid in either cash or Common Stock, as determined by the Committee in its sole discretion, at the same time as the Restricted Stock Units to which they relate. If such amounts are paid in Common Stock, the number of shares so paid shall be rounded down to the nearest whole number and shall be determined by dividing such credited amounts by the Market Value per Share on the payment date.

4. Rights as a Stockholder. Grantee will not have any rights of a stockholder (including voting and dividend rights) with respect to the Restricted Stock Units covered by this Award (except as otherwise provided in Section II.A.3).

5. Adjustments. The Restricted Stock Units covered by this Award will be subject to adjustment as provided in Section 11 of the Plan.

B. Other Terms and Conditions.

1. Non-Transferability of Award. Except as described below, this Award and the Restricted Stock Units subject to this Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution. The terms of this Award are binding on the executors, administrators, heirs, successors and assigns of Grantee.

funds in cash or cash equivalent to the Company. The shares of Common Stock used for tax or other withholding will be valued at an amount equal to the fair market value of such shares of Common Stock on the date the benefit is to be included in Grantee’s income. In no event will the fair market value of the shares of Common Stock to be withheld or delivered pursuant to this Section II.B.2 to satisfy applicable withholding taxes or other amounts in connection with the benefit exceed (x) the maximum amount that could be required to be withheld or (y) if so determined by the Committee after the date hereof, the minimum amount required to be withheld.

(2) Location. The arbitration will be conducted in Oakland County, Michigan.

4. Restrictive Covenants.

(a) Generally. The Company would not be providing Restricted Stock Units or Common Stock to Grantee without Grantee’s agreement to abide by the restrictive covenants described herein. The provisions herein are appropriate in light of the position that Grantee has with the Company and the relationships and confidential and trade secret information that Grantee has been and will be exposed to because of Grantee’s position. Notwithstanding anything herein to the contrary, if Grantee is subject to the restrictive covenants set forth in Section 7 (or any successor provision) of the TriMas Corporation Executive Severance/Change of Control Policy (or any successor policy), then (1) such restrictive covenants, rather than the restrictive covenants in this Section II.B.4, shall apply to Grantee, and (2) Grantee’s violation of such restrictive covenants shall be treated as a violation of the restrictive covenants in this Section II.B.4 for purposes of this Agreement.

(b) Confidentiality. Recognizing Grantee’s fiduciary duties to the Company, as a condition of this Agreement, Grantee agrees that he or she shall not, at any time before or after termination of employment, in any fashion, form or manner, either directly or indirectly, use, divulge, disclose or communicate, or cause or permit any other person or entity to use, divulge, disclose or communicate, to any person, firm, company or entity, in any manner whatsoever, any Confidential Information (as defined below) of the Company except with the prior written consent of the Board or to the extent specifically required to be disclosed by applicable law. Grantee agrees to notify the Company as soon as reasonably possible after being subpoenaed or otherwise requested by any third party to disclose any Confidential Information. This Section II.B.4 shall not result in the forfeiture of Restricted Stock Units or any clawback or recoupment of the Award for the disclosure of a trade secret if that disclosure (1) is made in confidence to a federal, state or local government official or to an attorney for the sole purpose of reporting or investigating a suspected violation of law or (2) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b). Notwithstanding anything in this Agreement to the contrary, nothing in this Agreement prevents Grantee from providing, without prior notice to the Company, information to governmental authorities regarding possible legal violations or otherwise testifying or participating in any investigation or proceeding by any governmental authorities regarding possible legal violations, and for purpose of clarity Grantee is not prohibited from providing information voluntarily to the Securities and Exchange Commission pursuant to Section 21F of the Exchange Act.

entity, or as an employee, officer, director, agent, consultant or in any other advisory capacity in any Competitive Business that designs, develops, manufactures, distributes, sells or markets the type of products or services sold, distributed or provided by the Company, during the one-year period prior to the date of employment termination and with which Grantee was involved and/or oversaw (the “Business”); provided that nothing herein shall prevent Grantee from owning, directly or indirectly, not more than five percent of the outstanding shares of, or any other equity interest in, any entity engaged in the Business and listed or traded on a national securities exchange or in an over-the-counter securities market.

(d) Determination by the Board. Upon entering into this Agreement, Grantee understands and agrees that a determination of the Board shall be final and binding on the issue of whether Grantee’s actions are or will be in violation of this Section II.B.4. Grantee may request in writing from the Board an advance determination as to whether Grantee’s proposed actions will violate this Section II.B.4.

(e) Certain Definitions. The following definitions shall apply solely with respect to this Section II.B.4:

(1) “Company” means (A) during the Grantee’s employment with the Company, the Company and any and all direct and indirect subsidiary, parent, affiliated or related companies of the Company for which the Grantee has worked or had responsibility during the Grantee’s employment with the Company, and (B) after the Grantee’s termination of employment with the Company, the Company and any and all direct and indirect subsidiary, parent, affiliated or related companies of the Company for which Grantee worked or had responsibility at the time of the Grantee’s termination of employment and at any time during the one-year period prior to such termination of employment.

intellectual property, and includes but is not limited to: financial and business information; customer and potential customer lists; customer contact information; pricing policies; vendor lists and information; third-party agreements and relationships; contractual, business, and financial information relating to the Company’s customers or other third parties which the Company is obligated to hold in confidence and/or not disclose; personnel, medical, compensation, and benefits information relating to employees, former employees, and persons affiliated with the Company; systems, login identifications and passwords, processes, methods, and policies; company strategies and plans; databases, company data, and technologies related to the Company’s business; and marketing and advertising materials which have not been published. “Confidential Information” shall not include information that Grantee can establish was already in the public domain at the time of disclosure through no fault of Grantee.

(f) Separate Covenants. Each of the covenants contained in this Section II.B.4 are separate and distinct covenants of Grantee.

6. No Continued Right as Service Provider. Nothing in the Plan or in this Agreement confers on Grantee any right to continue as a Service Provider, or interferes with or restricts in any way the rights of the Company or any Subsidiary or Affiliate of the Company, which are hereby expressly reserved, to discharge Grantee at any time for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written employment agreement between Grantee and the Company or any Subsidiary.

7. Effect on Other Benefits. In no event will the value, at any time, of the Restricted Stock Units or any other payment or right to payment under this Agreement be included as compensation or earnings for purposes of any other compensation, retirement, or benefit plan offered to employees of, or other Service Providers to, the Company or any Subsidiary unless otherwise specifically provided for in such plan.

9. Severability. If any provision of this Agreement or the application of any provision hereof to any person or circumstances is held invalid or unenforceable, the remainder of this Agreement and the application of such provision to any other person or circumstances shall not be affected, and the provisions so held to be invalid or unenforceable shall be reformed to the extent (and only to the extent) necessary to make it enforceable and valid.

10. Electronic Delivery. The Company may, in its sole discretion, deliver any documents related to the Restricted Stock Units and Grantee’s participation in the Plan, or future awards that may be granted under the Plan, by electronic means or request Grantee’s consent to participate in the Plan by electronic means. Grantee hereby consents to receive such documents by electronic delivery and, if requested, agrees

to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.

11. Nature of Grant. In accepting this Award, Grantee acknowledges that:

(b) the grant of the Restricted Stock Units is voluntary and occasional and does not create any contractual or other right to receive future grants of restricted stock units, or benefits in lieu of restricted stock units, even if restricted stock units have been granted repeatedly in the past;

(c) all decisions with respect to future restricted stock unit grants, if any, will be at the sole discretion of the Committee;

(d) Grantee is voluntarily participating in the Plan;

(e) the Restricted Stock Units and the Common Stock subject to the Restricted Stock Units are an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to the Company or Grantee’s employer, and which is outside the scope of Grantee’s employment contract, if any;

(f) the Restricted Stock Units and the Common Stock subject to the Restricted Stock Units are not intended to replace any pension rights or compensation;

(g) the future value of the underlying Common Stock is unknown and cannot be predicted with certainty;

(i) in consideration of the grant of the Restricted Stock Units, no claim or entitlement to compensation or damages shall arise from forfeiture of the Restricted Stock Units resulting from termination of Grantee’s employment with the Company or Grantee’s employer (for any reason whatsoever and whether or not in breach of local labor laws) and Grantee irrevocably releases the Company and Grantee’s employer from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, Grantee shall be deemed irrevocably to have waived any entitlement to pursue such claim; and

(j) in the event Grantee ceases to be a Service Provider (whether or not in breach of local labor laws), Grantee’s right to vest in the Restricted Stock Units under the Plan, if any, will terminate effective as of the date that Grantee is no longer a Service Provider and will not be extended by any notice period mandated under local law (e.g., active service would not include a period of “garden leave” or similar period pursuant to local law); the Committee shall have the exclusive discretion to determine when Grantee is no longer a Service Provider for purposes of the Restricted Stock Units.

12. Addenda for Certain Participants.

(a) Non-U.S. Participants. Notwithstanding any provisions in this Agreement, the Restricted Stock Units shall also be subject to the special terms and conditions set forth in the Non-U.S. Addendum attached as Appendix B to this Agreement for Grantee’s country. Moreover, if Grantee relocates to one of the countries included in the Non-U.S. Addendum, the special terms and conditions for such country will apply to Grantee to the extent the Company determines that the application of such terms and conditions are necessary or advisable in order to comply with local law or facilitate the administration of the Plan. The Non-U.S. Addendum attached hereto as Appendix B constitutes part of this Agreement.

(b) California Participants. Notwithstanding any provisions in this Agreement, the Restricted Stock Units shall also be subject to the special terms and conditions set forth in the California Addendum attached as Appendix C to this Agreement if Grantee is employed and/or resides in California or if the Company determines that the application of such terms and conditions is necessary or advisable in order to comply with applicable law. The California Addendum attached hereto as Appendix C constitutes part of this Agreement.

13. Amendments. Any amendment to the Plan shall be deemed to be an amendment to this Agreement to the extent that the amendment is applicable hereto; provided, however, that (a) no amendment shall materially adversely affect the rights of Grantee under this Agreement without Grantee’s written consent, and (b) Grantee’s consent shall not be required to an amendment that is deemed necessary by the Company to ensure compliance with Section 409A of the Code or Section 10D of the Exchange Act.

14. Relation to Plan. This Agreement is subject to the terms and conditions of the Plan. In the event of any inconsistency between the provisions of this Agreement and the Plan, the Plan shall govern. The Committee acting pursuant to the Plan, as constituted from time to time, shall, except as expressly provided otherwise herein or in the Plan, have the right to determine any questions which arise in connection with this Agreement.

15. Governing Law. This Agreement is governed by and construed in accordance with the laws of the State of Delaware, notwithstanding conflict of law provisions.

16. Clawback.

(a) Any shares of Common Stock issued to Grantee in settlement of the Restricted Stock Units (plus dividend equivalent payments) shall be subject to the terms of this Agreement and the Company’s recoupment policy, if any, as in effect from time to time. Further, notwithstanding anything in this Agreement to the contrary, Grantee acknowledges and agrees that (a) this Agreement and this Award described herein (and any settlement thereof) are subject to the terms and conditions of such policy, or any other form of Company recoupment (or similar) policy (if any) as may be in effect from time to time including specifically to implement Section 10D of the Exchange Act and any applicable rules or regulations promulgated thereunder (including applicable rules and regulations of any national securities exchange on which the Common Stock may be traded) (the “Compensation Recovery Policy”), and (b) applicable provisions of this Agreement shall be deemed superseded by and subject to the terms and conditions of the Compensation Recovery Policy from and after the effective date thereof.

(b) Without limiting the foregoing, violation of Section II.B.4 of this Agreement prior to the final Vesting Date and thereafter, as determined by the Board, shall result in the forfeiture of the Restricted Stock Units, and clawback and recoupment of any shares of Common Stock issued or transferred to Grantee in settlement of the Restricted Stock Units (plus dividend equivalent payments).

(Signature Page Follows)

This Agreement may be executed in two or more counterparts, each of which is deemed an original and all of which constitute one document.

TRIMAS CORPORATION



Dated as of: [grant date]	By: /s/ Joshua A. Sherbin Name: Joshua A. Sherbin Title: Senior Vice President and General Counsel

BY CLICKING THE “ACCEPT” BUTTON BELOW, GRANTEE ACKNOWLEDGES RECEIPT OF A COPY OF THE PLAN AND REPRESENTS THAT GRANTEE IS FAMILIAR WITH THE TERMS AND PROVISIONS OF THE PLAN. GRANTEE ACCEPTS THIS AWARD SUBJECT TO ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT AND THE PLAN. GRANTEE HAS REVIEWED THE PLAN AND THIS AGREEMENT IN THEIR ENTIRETY. GRANTEE AGREES TO ACCEPT AS BINDING, CONCLUSIVE AND FINAL ALL DECISIONS OR INTERPRETATIONS OF THE COMMITTEE UPON ANY QUESTIONS ARISING UNDER THE PLAN OR THIS AWARD.

APPENDIX A

RESTRICTED STOCK UNITS AGREEMENT

GLOSSARY

For purposes of this Agreement:


(a)	was contracted, suffered, or incurred while Grantee was engaged in, or resulted from Grantee having engaged in, a felonious activity;


(b)	resulted from an intentionally self-inflicted injury or an addiction to drugs, alcohol, or substances which are not administered under the direction of a licensed physician as part of a medical treatment plan; or


(c)	resulted from service in the Armed Forces of the United States for which Grantee received or is receiving a disability benefit or pension from the United States, or from service in the armed forces of any other country irrespective of any disability benefit or pension.

to submit to any medical examination properly requested by the Committee or the Company, then in any such event Grantee shall be deemed to have recovered from such Disability.

“Good Reason” means:


(a)	A material and permanent diminution in Grantee’s duties or responsibilities;


(b)	A material reduction in the aggregate value of base salary and bonus opportunity provided to Grantee by the Company; or


(c)	A permanent reassignment of Grantee to another primary office more than 50 miles from the current office location.

“Qualifying Termination” means a termination of Grantee’s status as a Service Provider with the Company or a Subsidiary for any reason other than:

(i) death;

(ii) Disability; or

(iii) Cause; or

(iv) by Grantee without Good Reason.

“Service Provider” means an individual actively providing services to the Company or a Subsidiary.

Exhibit 10.3

Restricted Stock Units Award

To Board of Directors

TRIMAS CORPORATION

2017 EQUITY AND INCENTIVE COMPENSATION PLAN

RESTRICTED STOCK UNITS AGREEMENT

Corporation (the “Company”), as permitted by the TriMas Corporation 2017 Equity and Incentive Compensation Plan (“Plan”), and as approved by the Committee, has granted to the individual listed below (“Grantee”), a Restricted Stock Units award (“Award”) for the number of Restricted Stock Units set forth below (“Restricted Stock Units”), subject to the terms and conditions of the Plan and this Restricted Stock Units Agreement (“Agreement”).

Unless otherwise defined in this Agreement, the terms used in this Agreement have the same meanings as defined in the Plan. The term “Service Provider” as used in this Agreement means an individual actively providing services to the Company or a Subsidiary. A Service Provider includes a member of the Board.

I. NOTICE OF AWARD



Grantee:	[specify Grantee’s name]
Date of Agreement:	As of [enter date]
Date of Grant:	[grant date]
Number of Restricted Stock Units:	[number of Restricted Stock Units]

II. AGREEMENT

A. Grant of Restricted Stock Units. The Company has granted to Grantee (who, pursuant to this Award is a Participant in the Plan) the number of Restricted Stock Units set forth above, subject to the terms of this Agreement. The Restricted Stock Units evidenced by this Agreement are payable only in shares of Common Stock as described in Section II.A.2. Notwithstanding anything to the contrary anywhere else in this Agreement, the Restricted Stock Units subject to this Award are subject to the terms and provisions of the Plan, which are incorporated by reference into this Agreement.

1. Vesting.

(a)General. Subject to Section II.A.1(b), the Restricted Stock Units will vest in full on the first anniversary of the Date of Grant (the “Vesting Date”), subject generally to Grantee’s continued status as a Service Provider through such Vesting Date. In particular, this Award is subject to Section 18(c) of the Plan.

(b)Termination of Service; Forfeiture. Any unvested Restricted Stock Units subject to this Award will be canceled and forfeited if Grantee terminates as a Service Provider, or if Grantee’s status as a Service Provider is terminated by the Company, for any reason before the Vesting Date;

-1-

provided, however, if Grantee ceases to be a Service Provider prior to the Vesting Date as a result of Grantee’s death, Disability or Retirement, Grantee shall fully vest in the Restricted Stock Units subject to this Award as of the date on which Grantee ceases to be a Service Provider due to Grantee’s death, Disability or Retirement.

(c)Disability Definition. For purposes of this Agreement, “Disability” (and similar terms) means Grantee’s physical or mental condition resulting from any medically determinable physical or mental impairment that renders Grantee incapable of engaging in any substantial gainful employment and that can be expected to result in death or that has lasted or can be expected to last for a continuous period of not less than 365 days. Notwithstanding the foregoing, Grantee shall not be deemed to be Disabled as a result of any condition that:

(1) was contracted, suffered, or incurred while Grantee was engaged in, or resulted from Grantee having engaged in, a felonious activity;

(2) resulted from an intentionally self-inflicted injury or an addiction to drugs, alcohol, or substances which are not administered under the direction of a licensed physician as part of a medical treatment plan; or

(3) resulted from service in the Armed Forces of the United States for which Grantee received or is receiving a disability benefit or pension from the United States, or from service in the armed forces of any other country irrespective of any disability benefit or pension.

(d)Retirement Definition. For purposes of this Agreement, “Retirement” means termination of Grantee’s status as a Service Provider with the consent of the Committee after attaining age 55 and five years of service with the Company and its Subsidiaries.

2. Settlement.

(a)General. Subject to Section II.A.2(b) below, and as soon as administratively practicable following (but no later than thirty (30) days following) the Vesting Date, the Company shall issue Grantee one share of Common Stock for each vested Restricted Stock Unit.

(b)Other Payment Events. Notwithstanding Section II.A.2(a), to the extent the Restricted Stock Units are vested as a result of Section II.A.1(b) (and have not previously been settled)

-2-

on the date of Grantee’s separation from service (within the meaning of Treasury Regulation Section 1.409A-1(h)), the Company shall issue Grantee one share of Common Stock for each vested Restricted Stock Unit as soon as practicable following (but no later than thirty (30) days following) the date of such separation from service.

5. Adjustments. The Restricted Stock Units covered by this Award will be subject to adjustment as provided in Section 11 of the Plan.

B. Other Terms and Conditions.

2. Taxes. Grantee is responsible for the payment of any and all taxes that arise with respect to this Award. Grantee agrees to tender sufficient funds to satisfy any applicable taxes arising in connection with the vesting of the Restricted Stock Units (or other applicable events) under this Award.

(a)Negotiation. Grantee and the Company will use their best efforts to settle the dispute, claim, question or disagreement. To this effect, they will consult and negotiate with each other in good faith and, recognizing their mutual interests, attempt to reach a just and equitable solution satisfactory to both parties.

(b)Arbitration. If Grantee and the Company do not reach a solution within a period of 30 days from the date on which the dispute, claim, disagreement, or controversy arises, then, upon written notice by Grantee to the Company or the Company to Grantee, all disputes, claims, questions, controversies, or differences will be submitted to arbitration administered by the American Arbitration

-3-

Association (the “AAA”) in accordance with the provisions of its Employment Arbitration Rules and Mediation Procedures (the “Arbitration Rules”).

(2) Location. The arbitration will be conducted in Oakland County, Michigan.

4. Section 409A of the Code. To the extent applicable, it is intended that this Agreement and the Plan comply with or be exempt from the provisions of Section 409A of the Code. This Agreement and the Plan shall be administered in a manner consistent with this intent, and any provision that would cause this Agreement or the Plan to fail to satisfy Section 409A of the Code shall have no force or effect until amended to comply with Section 409A of the Code (which amendment may be retroactive to the extent permitted by Section 409A of the Code and may be made by the Company without the consent of Grantee).

5. No Continued Right as Service Provider. Nothing in the Plan or in this Agreement confers on Grantee any right to continue as a Service Provider, or interferes with or restricts in any way the rights of the Company or any Subsidiary of the Company, which are hereby expressly reserved.

-4-

6. Severability. If any provision of this Agreement or the application of any provision hereof to any person or circumstances is held invalid or unenforceable, the remainder of this Agreement and the application of such provision to any other person or circumstances shall not be affected, and the provisions so held to be invalid or unenforceable shall be reformed to the extent (and only to the extent) necessary to make it enforceable and valid.

7. Governing Law. This Agreement is governed by and construed in accordance with the laws of the State of Delaware, notwithstanding conflict of law provisions.

8. Electronic Delivery. The Company may, in its sole discretion, deliver any documents related to the Restricted Stock Units and Grantee’s participation in the Plan, or future awards that may be granted under the Plan, by electronic means or request Grantee’s consent to participate in the Plan by electronic means. Grantee hereby consents to receive such documents by electronic delivery and, if requested, agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.

9. Amendments. Any amendment to the Plan shall be deemed to be an amendment to this Agreement to the extent that the amendment is applicable hereto; provided, however, that (a) no amendment shall materially adversely affect the rights of Grantee under this Agreement without Grantee’s written consent, and (b) Grantee’s consent shall not be required to an amendment that is deemed necessary by the Company to ensure compliance with Section 409A of the Code or Section 10D of the Exchange Act.

10. Relation to Plan. This Agreement is subject to the terms and conditions of the Plan. In the event of any inconsistency between the provisions of this Agreement and the Plan, the Plan shall govern. The Committee acting pursuant to the Plan, as constituted from time to time, shall, except as expressly provided otherwise herein or in the Plan, have the right to determine any questions which arise in connection with this Agreement.

(Signature Page Follows)

-5-

This Agreement may be executed in two or more counterparts, each of which is deemed an original and all of which constitute one document.

TRIMAS CORPORATION



Dated as of: [grant date]	By: /s/ Joshua A. Sherbin Name: Joshua A. Sherbin Title: Senior Vice President and General Counsel

-6-

Exhibit 31.1

Certification

Pursuant to Section 302 of The Sarbanes-Oxley Act of 2002

(Chapter 63, Title 18 U.S.C. Section 1350(A) and (B))

I, Thomas A. Amato, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of TriMas Corporation;


2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;


4.	The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:


a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and


5.	The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):


a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and


b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: April 30, 2020



	/s/ THOMAS A. AMATO
	Thomas A. Amato Chief Executive Officer

Exhibit 31.2

Certification

Pursuant to Section 302 of The Sarbanes-Oxley Act of 2002

(Chapter 63, Title 18 U.S.C. Section 1350(A) and (B))

I, Robert J. Zalupski, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of TriMas Corporation;


2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;


4.	The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:


a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and


5.	The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):


a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and


b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: April 30, 2020



	/s/ ROBERT J. ZALUPSKI
	Robert J. Zalupski Chief Financial Officer

Exhibit 32.1

Certification Pursuant to

18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of TriMas Corporation (the “Company”) on Form 10-Q for the period ended March 31, 2020 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas A. Amato, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:


1.	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and


2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: April 30, 2020



	/s/ THOMAS A. AMATO
	Thomas A. Amato Chief Executive Officer

Exhibit 32.2

Certification Pursuant to

18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of TriMas Corporation (the “Company”) on Form 10-Q for the period ended March 31, 2020 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Robert J. Zalupski, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:


1.	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and


2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: April 30, 2020



	/s/ ROBERT J. ZALUPSKI
	Robert J. Zalupski Chief Financial Officer