Document:

exv10w1

Exhibit 10.1

JULIAN MICHAEL CUSACK

AND

ASPEN INSURANCE UK SERVICES LIMITED

 

AMENDED AND RESTATED SERVICE AGREEMENT

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Clause	 	 	 	Page	 	 
	 
	1.

	 	INTERPRETATION
	 	 	3	 
	2.

	 	AMENDMENT AND RESTATEMENT
	 	 	4	 
	3.

	 	POSITION
	 	 	4	 
	4.

	 	TERM
	 	 	4	 
	5.

	 	DUTIES
	 	 	4	 
	6.

	 	REMUNERATION AND COMMISSION
	 	 	5	 
	7.

	 	PENSION AND INSURANCE BENEFITS
	 	 	6	 
	8.

	 	EXPENSES
	 	 	7	 
	9.

	 	HOLIDAYS AND HOLIDAY PAY
	 	 	7	 
	10.

	 	DISABILITY OR DEATH
	 	 	7	 
	11.

	 	CONFIDENTIAL INFORMATION
	 	 	8	 
	12.

	 	COPYRIGHT AND DESIGNS
	 	 	9	 
	13.

	 	GRATUITIES AND CODES OF CONDUCT
	 	 	9	 
	14.

	 	RESTRICTIVE COVENANTS
	 	 	9	 
	15.

	 	TERMINATION BY RECONSTRUCTION OR AMALGAMATION;
CHANGE IN CONTROL
	 	 	9	 
	16.

	 	TERMINATION OF EMPLOYMENT BY THE COMPANY FOR CAUSE
	 	 	12	 
	17.

	 	TERMINATION OF EMPLOYMENT BY THE COMPANY WITHOUT CAUSE
	 	 	12	 
	18.

	 	TERMINATION OF EMPLOYMENT BY THE EXECUTIVE
	 	 	13	 
	19.

	 	OBLIGATIONS UPON TERMINATION OF EMPLOYMENT;
CERTAIN OTHER TERMINATIONS
	 	 	14	 
	20.

	 	EFFECT OF TERMINATION OF THIS AGREEMENT
	 	 	15	 
	21.

	 	GENERAL RELEASE
	 	 	15	 
	22.

	 	OTHER TERMS AND CONDITIONS
	 	 	16	 
	23.

	 	NOTICES
	 	 	16	 
	24.

	 	PREVIOUS AND OTHER AGREEMENTS
	 	 	16	 
	25.

	 	ENTIRE AGREEMENT/AMENDMENT
	 	 	17	 
	26.

	 	ASSIGNMENT
	 	 	17	 
	27.

	 	SEVERABILITY
	 	 	17	 
	28.

	 	SUCCESSORS/BINDING AGREEMENT
	 	 	17	 
	29.

	 	CO-OPERATION
	 	 	17	 
	30.

	 	GOVERNING LAW
	 	 	17	 
	31.

	 	COUNTERPARTS
	 	 	18	 

 

 

AMENDED AND RESTATED SERVICE AGREEMENT

DATE: 
                     
                     
                     
27 October 2011

PARTIES:

	(1)	 	JULIAN MICHAEL CUSACK of 115 Providence Square, London, SE1 2ED (the “Executive”); and

	(2)	 	ASPEN INSURANCE UK SERVICES LIMITED (Registered in England No. 1184193), 30 Fenchurch St,
London, EC3M 3BD, England (the “Company”).

OPERATIVE TERMS:

	1.	 	INTERPRETATION

	1.1	 	In this Agreement:

	 	 	 	 	 

	 

	 	   “Affiliate”
	 	means any entity directly or indirectly controlling,
controlled by, or under common control with the
Company; or any other entity designated by the Board
in which the Company or an Affiliate has an interest;
	 
	 	 	 	 
	 

	 	   “Board”
	 	means the Board of Directors of Holdings from time to
time;
	 
	 	 	 	 
	 

	 	   “Group”
	 	means the Company and its Affiliates (and “Group
Company” means the Company or any one of its
Affiliates);
	 
	 	 	 	 
	 

	 	   “Holdings”
	 	means Aspen Insurance Holdings Limited, a
Bermuda limited company, the ultimate holding company
of the Company and its Affiliates;
	 
	 	   “Manager”	 	 
	 

	 	
	 	means the Chief Executive Officer of Holdings
or such other person as the Company may nominate from
time to time as the person to whom the Executive
shall report.

	1.2	 	In this Agreement references to any statutory provision shall include such provision as from
time to time amended, whether before on or (in the case of re-enactment or consolidation only)
after the date hereof, and shall be deemed to include provision of earlier legislation (as
from time to time amended) which have been re-enacted (with or without modification) or
replaced (directly or indirectly) by such provision and shall further include all statutory
instruments or orders from time to time made pursuant thereto.

 

 

	2.	 	AMENDMENT AND RESTATEMENT
	 
	 	 	This Agreement shall serve as a complete amendment and restatement of (i) the Service
Agreement entered into between the Executive and Holdings, and (ii) the Service Agreement
entered into between the Executive and the Company, each dated 1 May 2008 (which were
themselves an amendment and restatement of the Service Agreement entered into between
Julian Cusack and Holdings dated 1 May 2007 (such agreement being undated when signed but
effective following the transfer of Group CFO responsibilities)) (collectively the
“Original Agreements”). Except as otherwise provided herein, all terms of the Original
Agreements shall be superseded by the terms of this Agreement and, upon execution of this
Agreement, the Original Agreements shall be of no further force and effect.
	 
	3.	 	POSITION
	 
	 	 	The Company shall employ the Executive as Chief Risk Officer of the Group or such other
duties as may be agreed between the Executive and the Manager from time to time.
	 
	4.	 	TERM
	 
	4.1	 	The Company shall employ the Executive, and the Executive shall serve the Company, on the
terms and conditions set forth in this Agreement, beginning on the date hereof (the “Effective
Date”) and continuing unless and until terminated in accordance with the provisions contained
in this Agreement.
	 
	4.2	 	Notwithstanding the provisions of Clause 3, it is anticipated that the Executive’s employment
will terminate by mutual agreement when the Executive reaches the age of 70 years.
	 
	5.	 	DUTIES
	 
	5.1	 	During his employment hereunder the Executive shall:

	 	(a)	 	report to the Manager and perform the duties and exercise the powers and
functions which from time to time may reasonably be assigned to or vested in him by
the Board in relation to Holdings and any other Group Company to the extent consistent
with his job title set out in Clause 3 (without being entitled to any additional
remuneration in respect of such duties for any Group Company) ;

	 	(b)	 	devote the whole of his working time, attention and ability to his duties in
relation to the Company and any other Group Company at such place or places as the
Board shall determine. The Executive shall carry out his duties under this Agreement
at the Company’s premises at 30 Fenchurch St, London EC3M 3BD,, or such other place as
the Company and the Executive shall mutually agree, provided that the Executive shall
not be required to reside outside of the United Kingdom;

	 	(c)	 	comply with all reasonable requests, instructions and regulations given or
made by the Board (or by any one authorised by it) and promptly provide such
explanations, information and assistance as to the performance of his duties assigned
to him under this Agreement as the Board may reasonably require;

 

 

	 	(d)	 	faithfully and loyally serve Holdings and each other Group Company to the
best of his ability and use his utmost endeavours to promote its interests in all
respects;

	 	(e)	 	not engage in any activities which would detract from the proper performance
of his duties hereunder, nor without the prior written consent of the Board in any
capacity including as director, shareholder, principal, consultant, agent, partner or
employee of any other company, firm or person (save as the holder for investment of
securities which do not exceed three percent (3%) in nominal value of the share
capital or stock of any class of any company quoted on a recognised stock exchange)
engage or be concerned or interested directly or indirectly in any other trade,
business or occupation whatsoever; and

	 	(f)	 	comply (and shall use every reasonable endeavour to procure that his spouse
and minor children will comply) with all applicable rules of law, stock exchange
regulations, individual registration requirements (at a cost to be borne by the
Company) and codes of conduct of Holdings and any other Group Company in effect with
respect to dealing in shares, debentures or other securities of Holdings or other
Group Company.

	5.2	 	Nothing herein shall preclude the Executive from (a) serving on the boards of directors of a
reasonable number of other corporations subject to the approval of the Chief Executive Officer
of the Company in each case, which approval shall not be unreasonably withheld, (b) serving on
the boards of a reasonable number of trade associations subject to the approval of the Board,
which approval shall not unreasonably be withheld, and/or charitable organizations, (c)
engaging in any charitable activities and community affairs, and (d) managing his personal
investments and affairs, provided that such activities set forth in this Clause 5.2 do not
significantly interfere with the performance of his duties and responsibilities to any Group
Company.
	 
	6.	 	REMUNERATION AND COMMISSION
	 
	6.1	 	The Executive shall be paid by way of remuneration for his services during his employment
hereunder a salary at the rate (the “Salary Rate”) of £370,000 per annum (less necessary
deductions for income tax and national insurance and any other authorised deductions), subject
to increase pursuant to Clause 6.3, which shall be inclusive of any fees to which the
Executive may be entitled as a director of Holdings or of any other Group Company.
	 
	6.2	 	The Executive shall be eligible for a cash bonus, based on a bonus potential of 100% of his
annual salary, during his employment hereunder of such amounts (if any) at such times and
subject to such conditions as the Compensation Committee of the Board (the “Compensation
Committee”) may in its absolute discretion decide; provided, however, that notwithstanding the
preceding language of this Clause 6.2, the Executive shall participate in all management
incentive plans made available to the Company’s senior executives at a level commensurate with
Executive’s status and position at the Company.
	 
	6.3	 	The Company shall review the Salary Rate for increase at least once each year, and any change
in the Salary Rate resulting from such review will take effect from 1 April. The Company’s
review shall take into consideration, among other factors, the base salary paid to individuals
performing similar services at comparable companies based in Bermuda,

 

 

	 	 	the United Kingdom and the United States, as well as other relevant local or global
talent pool comparables, it being expressly understood that while it is intended that the
Company shall consider these factors, it shall have no obligation to take any specific
action based on such factors.
	 
	6.4	 	The Executive’s salary will be payable by equal monthly installments; each monthly
installments will be in respect of a calendar month and will be paid on or before the last day
of such calendar month. Where the employment has begun or ended in a calendar month, salary in
respect of that month will be the proportion of a normal month’s installments which the days
of employment in that month bear to the total days in the month.
	 
	6.5	 	The Company may withhold from amounts payable under this Agreement all applicable taxes that
are required to be withheld by applicable laws or regulations.
	 
	7.	 	PENSION AND INSURANCE BENEFITS
	 
	7.1	 	During his employment hereunder, the Executive shall be entitled to participate in all
employee benefit and perquisite plans and programs made available to the Company’s senior
level executives or to its employees generally, as such plans or programs may be in effect
from time to time.
	 
	7.2	 	The Executive will be eligible for reimbursement of reasonable expenses incurred in
connection with his relocation from Bermuda to the UK. Such relocation expenses will include
the costs of Business Class airfares for the Executive and his spouse, together with the costs
of transportation of the Executive and his spouse’s personal effects. For the avoidance of
doubt all tax payable on these costs shall be borne by the Company.
	 
	7.3	 	During his employment hereunder, the Company shall (subject to the relevant insurers’ terms
and conditions) provide the Executive with:

	 	7.3.1	 	medical insurance;
	 
	 	7.3.2	 	permanent health insurance;
	 
	 	7.3.3	 	personal accident insurance; and
	 
	 	7.3.4	 	Contract life insurance.

	 	 	The Board shall have the right to change the arrangements for the provision of such
benefits as it sees fit or, if in the reasonable opinion of the Board, the Company is
unable to secure any such insurance under the rules of any applicable scheme or otherwise
at reasonable rates to cease to provide any or all of the insurances unless in either case
the Executive or a member of his family is at that time suffering from a medical condition
which would entitle them to benefits under the policy in question in which case the
existing policy is to be maintained in force by the Company or an alternative policy
provided which would provide the same benefit in relation to the medical condition in
question.
	 
	8.	 	EXPENSES

 

 

	 	 	The Company shall reimburse to the Executive all traveling, hotel, entertainment and other
expenses properly and reasonably incurred by him in the performance of his duties hereunder
and properly claimed and vouched for in accordance with the Company’s expense reporting
procedure in force from time to time.
	 
	9.	 	HOLIDAYS AND HOLIDAY PAY
	 
	9.1	 	The Executive shall be entitled to an aggregate of 30 working days’ paid holiday per holiday
year (in addition to public holidays) in relation to his employment by the Company and, if
applicable, such additional days as are set out in the Company’s standard terms and conditions
of employment from time to time, during each holiday year to be taken at such time or times as
may be agreed with the Manager. Except as otherwise provided in the Company’s holiday policy,
the Executive may not carry forward any unused part of his holiday entitlement to a subsequent
holiday year and the Executive shall not be entitled to any salary in lieu of untaken holiday.
	 
	9.2	 	For the holiday year during which the Executive’s employment hereunder commences or
terminates he shall be entitled to such proportion of his annual holiday entitlement as the
period of his employment in each such holiday year bears to one holiday year as set out in the
Company’s holiday policy. Upon termination of his employment for whatever reason, he shall, if
appropriate, be entitled to salary in lieu of any outstanding holiday entitlement.
	 
	10.	 	DISABILITY OR DEATH
	 
	10.1	 	The Company reserves the right at any time to require the Executive (at the expense of the
Company) to be examined by a medical adviser nominated by the Company and the Executive
consents to the medical adviser disclosing the results of the examination to the Company and
shall provide the Company with such formal consents as may be necessary for this purpose.
	 
	10.2	 	If the Executive shall be prevented by illness, accident or other incapacity from properly
performing his duties hereunder he shall report this fact forthwith to the Company Secretary’s
office and if he is so prevented for seven or more consecutive days he shall if required by
the Company provide an appropriate doctor’s certificate.
	 
	10.3	 	If the Executive shall be absent from his duties hereunder owing to illness, accident or
other incapacity duly certified in accordance with the provisions of clause 10.2 he shall be
paid his full remuneration for any period of absence of up to a maximum of 26 weeks in
aggregate in any period of 52 consecutive weeks and thereafter, subject to the provisions of
clause 17, to such remuneration (if any) as the Board shall in its absolute discretion allow
provided that the Company may not terminate the employment of the Executive under this clause
without his consent at a time when he is unable to perform his duties through illness if the
consequence of such termination would be to deprive him of any benefits that would otherwise
be payable to him under the provisions of any permanent health insurance policy taken out by
the Company.
	 
	10.4	 	In the event that the Executive’s employment is terminated due to his death, his estate or
his beneficiaries, as the case may be, shall be entitled to: (a) salary at his Salary Rate up
to and including the end of the month in which his death occurs, (b) the annual incentive
award, if any, to which the Executive would have been entitled to pursuant to Clause 6.2

 

 

	 	 	for the year in which the Executive’s death occurs, multiplied by a fraction, the numerator
of which is the number of days that the Executive was employed during the applicable year
and the denominator of which is 365, and (c) the unpaid balance of all previously earned
cash bonus and other incentive awards with respect to performance periods which have been
completed, all of which amounts shall be payable in a lump sum in cash within 30 days after
his death, except that the pro-rated incentive award shall be payable when such award would
have otherwise been payable had the Executive not died.
	 
	11.	 	CONFIDENTIAL INFORMATION
	 
	11.1	 	Except as otherwise provided in this Section, the Executive shall not during his employment
hereunder or at any time after his termination for any reason whatsoever disclose to any
person whatsoever or otherwise make use of any Confidential Information.
	 
	11.2	 	As used in this Section, the term “Confidential Information” shall mean any confidential or
secret information which he has or may have acquired in the course of his employment relating
to Holdings or any other Group Company or any customers or clients of the Holdings or any
other Group Company, including without limiting the generality of foregoing:

	 	11.2.1	 	confidential or secret information relating to the past, current or future business,
finances, activities and operations of Holdings or any other Group Company;
	 
	 	11.2.2	 	confidential or secret information relating to the past, current or future business,
finances, activities and operations of any third party to the extent that such
information was obtained by Holdings or any other Group Company pursuant to a
confidentiality agreement;

	 	 	but shall not include information that is generally known to, or recognised as standard
practice in, the industry in which the Company is engaged unless such information is known
or recognised as a result of the Executive’s breach of this covenant.
	 
	11.3	 	The Executive will only use Confidential Information for the benefit of Holdings or any other
Group Company in the course of his employment and shall at all times exercise all due care and
diligence to prevent the unauthorised disclosure or use of Confidential Information.
	 
	11.4	 	In the event that the Executive becomes compelled by a court or administrative order to
disclose any of the Confidential Information other than as permitted pursuant to this Section,
he will provide prompt notice to Holdings so that Holdings may seek a protective order or
other appropriate remedy. In the event that Holdings fails to seek, or seeks and fails to
obtain, such a protective order or other protective remedy, the Executive will furnish only
that portion of the Confidential Information that, in the opinion of his counsel, he is
legally required to furnish.
	 
	12.	 	COPYRIGHT AND DESIGNS
	 
	12.1	 	The Executive hereby assigns to the Company all present and future copyright, design rights
and other proprietary rights if any for the full term thereof throughout the world in respect
of all works originated by him at any time during the period of his employment

 

 

	 	 	by the Company or any other Group Company whether during the course of his normal duties or
other duties specifically assigned to him (whether or not during normal working hours)
either alone or in conjunction with any other person and in which copyright or design
rights may subsist except only those designs or other works written, originated, conceived
or made by him wholly unconnected with his service hereunder.
	 
	12.2	 	The Executive agrees and undertakes that he will execute such deeds or documents and do all
such acts and things as may be necessary or desirable to substantiate the rights of the
Company in respect of the matters referred to in this Clause. To secure his obligation under
this Agreement the Executive irrevocably appoints the Company to be his attorney in his name
and on his behalf to execute such deeds or documents and do all such acts and things as may be
necessary or desirable to substantiate the rights of the Company in respect of the matters
referred to in this Clause.
	 
	12.3	 	The Executive hereby irrevocably waives all moral rights that he had or may have in any of
the works referred to in Clause 12.1, subject to the exception therein.
	 
	13.	 	GRATUITIES AND CODES OF CONDUCT
	 
	13.1	 	The Executive shall comply with all codes of conduct from time to time adopted by the Board.
	 
	13.2	 	The Executive shall not, except in accordance with the Company’s Gift and Hospitality Policy
and any other code of conduct adopted by the Board or with the prior written consent of the
Board, directly or indirectly accept any commission, rebate, discount, gratuity or gift, in
cash or in kind from any person who has or is likely to have a business relationship with the
Company or any other Group Company and shall notify the Company upon acceptance by the
Executive of any commission, rebate, discount, gratuity or gift in accordance with the
Company’s Gift and Hospitality Policy or any such code of conduct from time to time.
	 
	14.	 	RESTRICTIVE COVENANTS
	 
	14.1	 	For the purpose of this Clause:
	 
	 	 	“the Business” means the business of the Group or any Group Company at the date of
termination of the Executive’s employment with which the Executive has been concerned to a
material extent at any time in the Relevant Period;
	 
	 	 	references to the “Group” and “Group Companies” shall only be reference to the Group and
Group Companies in respect of which the Executive has carried out material duties in the
Relevant Period;
	 
	 	 	“Relevant Period” shall mean the period of 24 months immediately preceding the date on
which the Restricted Period defined in clause 14.3 commences or the date on which the
Company seeks to enforce the restriction in question;
	 
	 	 	“Restricted Person” shall mean any person who or which has at any time during the Relevant
Period done business with the Company or any other Group Company as customer or client or
consultant and whom or which the Executive shall have had

 

 

	 	 	personal dealings with, contact with or responsibility for (each, in a business or
commercial capacity) during the Relevant Period;
	 
	 	 	“Key Employee” shall mean any person who at the date of termination of the Executive’s
employment is employed or engaged by the Company or any other Group Company with whom the
Executive has had material contact during the Relevant Period and (a) is employed or
engaged in the capacity of Manager, Underwriter or otherwise in a senior capacity or in any
other capacity as may be agreed in writing between the Executive Committee and the
Executive from time to time and/or (b) is in the possession of Confidential Information
and/or (c) is directly managed by or reports to the Executive.
	 
	14.2	 	The Executive covenants with the Company that he will not in connection with the carrying on
of any business in competition with the Business during his employment or any Restricted
Period applicable upon the termination of the Executive’s employment (as defined in clause
14.3) without the prior written consent of the Board either alone or jointly with or on behalf
of any person directly or indirectly:

	 	14.2.1	 	canvass, solicit or approach or cause to be canvassed or solicited or approached for
orders in respect of any services provided and/or any products sold by the Company or
any other Group Company any Restricted Person;
	 
	 	14.2.2	 	solicit or entice away or endeavour to solicit or entice away from the Company or
any other Group Company any Key Employee;
	 
	 	14.2.3	 	be employed, engaged, interested in or concerned with any business or undertaking
which is engaged in or carries on business in the United Kingdom, Bermuda or the USA
which is or is about to be in competition with the Business;

	14.3	 	The length of the Restricted Period depends upon the circumstances in which the Executive’s
employment terminates as follows:-

	 	14.3.1	 	if the Executive serves 12 months’ notice to terminate his employment without Good
Reason under clause 18.2 the Restricted Period shall be a period of 12 months (or 18
months in respect of clause 14.2.2 only) from the date on which notice is served which
period shall run concurrently with the 12 month notice period irrespective of whether
the Executive is working his notice, on garden leave or his employment has terminated
prior to the expiry of the notice period as a result of the Company making a payment
pursuant to clause 19.2 within the time period specified in that clause;
	 
	 	14.3.2	 	if the Company serves notice to terminate the Executive’s employment without Cause
under clause 17 the Restricted Period shall be a period of 6 months from the date on
which notice is served by the Company which period shall run concurrently with the 12
month notice period irrespective of whether the Executive is working his notice, on
garden leave or his employment has terminated prior to the expiry of the notice period
as a result of the Company making a payment pursuant to clause 19.2 within the time
period specified in that clause;
	 
	 	14.3.3	 	if the Executive serves immediate notice to terminate his employment with Good
Reason under clause 18.1 the Restricted Period shall be 6 months from the date

 

 

	 		 	of termination provided the Executive is paid the payment due under clause
19.2 within the time period specified in that clause;
	 
	 	14.3.4	 	if the Company serves immediate notice to terminate the Executive’s employment with
Cause under clause 16.1 the Restricted Period shall be 6 months from the date of
termination provided the Company complies with clause 16.1;

	14.4	 	The covenants contained in Clauses 14.2.1, 14.2.2 and 14.2.3 are intended to be separate and
severable and enforceable as such. It is expressly understood and agreed that although the
Executive and the Company consider the restrictions contained in this Clause 14 to be
reasonable, if a final judicial determination is made by a court of competent jurisdiction
that the time or territory or any other restriction contained in this Agreement is an
unenforceable restriction against the Executive, the provisions of this Agreement shall not be
rendered void but shall be deemed amended to apply as to such maximum time and territory and
to such maximum extent as such court may judicially determine to be enforceable.
Alternatively, if any court of competent jurisdiction finds that any restriction contained in
this Agreement is unenforceable, and such restriction cannot be amended so as to make it
enforceable, such finding shall not affect the enforceability of any of the other restrictions
contained herein.
	 
	14.5	 	The Executive acknowledges and agrees that the Company’s remedies at law for a breach of any
of the provisions of Clauses 11, 12 or 14 would be inadequate and the Company would suffer
irreparable damages as a result of such breach. In recognition of this fact, the Executive
agrees that, in the event of such a breach, in addition to any remedies at law, the Company,
without posting any bond, shall be entitled to obtain equitable relief in the form of specific
performance, temporary restraining order, temporary or permanent injunction or any other
equitable remedy which may then be available.
	 
	15.	 	TERMINATION BY RECONSTRUCTION OR AMALGAMATION; CHANGE IN CONTROL
	 
	15.1	 	If the employment of the Executive hereunder shall be terminated solely by reason of the
liquidation of any Group Company for the purposes of amalgamation or reconstruction or as part
of any arrangement for the amalgamation of the undertaking of such Group Company not involving
liquidation (in each case, other than a “Change in Control”, as defined below) and the
Executive shall be offered employment with the amalgamated or reconstructed company on the
same terms as the terms of this Agreement, the Executive shall have no claim against the
Company or any Group Company in respect of the termination of his employment by the Company.
	 
	15.2	 	If the employment of the Executive hereunder shall be terminated by the Company without Cause
or by the Executive with Good Reason within the six-month period prior to a Change in Control
or within the two-year period after a Change in Control, in addition to the benefits provided
in Clause 19.2, the Executive shall be entitled to the following benefits: other than share
options and other equity based awards granted in 2004 and 2005, which shall vest and be
exercisable in accordance with the terms of their grant agreements, all share options and
other equity -based awards shall immediately vest and remain exercisable for the remainder of
their terms.

 

	 	 	For purposes of this Agreement, “Change in Control” shall have the same meaning as under
the Aspen Insurance Holdings 2003 Share Incentive Plan as in effect as of the date hereof.
	 
	16.	 	TERMINATION OF EMPLOYMENT BY THE COMPANY FOR CAUSE
	 
	16.1	 	The Company, without prejudice to any remedy which it may have against the Executive for the
breach or non-performance of any of the provisions of this Agreement, may by notice in writing
to the Executive forthwith terminate his employment for “Cause”. In the event the Company
terminates the Executive’s employment for Cause, the Executive shall be entitled to salary at
his Salary Rate through the date of termination.
	 
	 	 	For purposes of this Agreement, “Cause” shall mean circumstances where the Executive:

	 	(a)	 	becomes bankrupt or becomes the subject of an interim order under the
Insolvency Act 1986 or makes any arrangement or composition with his creditors; or
	 
	 	(b)	 	is convicted of any criminal offence (other than an offence under road
traffic legislation in the United Kingdom or elsewhere for which a penalty other than
imprisonment is imposed); or
	 
	 	(c)	 	is guilty of any serious misconduct, any conduct tending to bring the Company
or any other Group Company or himself into disrepute, or any material breach or
non-observance of any of the provisions of this Agreement, or conducts himself in a
way which is materially prejudicial or calculated to be materially prejudicial to the
business of the Group; or
	 
	 	(d)	 	is disqualified from being a director of any company by reason of an order
made by any competent court; or
	 
	 	(e)	 	is guilty of any repeated breach or non-observance of any code of conduct or
fails or ceases to be registered (where such registration is, in the reasonable
opinion of the Board, required for the performance of his duties) by any regulatory
body in the United Kingdom or elsewhere.

	17.	 	TERMINATION OF EMPLOYMENT BY THE COMPANY WITHOUT CAUSE
	 
	17.1	 	The Company may terminate the employment of the Executive at any time during the employment
hereunder without Cause by either (i) giving to the Executive 12 months’ prior notice in
writing; or (ii) terminating the employment of the Executive immediately and paying the
Executive in lieu of the notice to which he would have otherwise been entitled under (i) above
(which payment in lieu shall be deemed to be included within the Severance Payment referred to
in Clause 19.2) provided that the Company may not terminate the employment of the Executive
under this clause without his consent at a time when he is unable to perform his duties
through illness if the consequence of such termination would be to deprive him of any benefits
that would otherwise be payable to him under the provisions of any permanent health insurance
policy taken out by the Company.
	 
	18.	 	TERMINATION OF EMPLOYMENT BY THE EXECUTIVE

 

	18.1	 	The Executive shall have the right to terminate his employment at any time for Good Reason by
immediate notice if, following submission of the written notice by the Executive to the
Company detailing the events alleged to constitute Good Reason in accordance with this Clause,
the Company shall have failed to cure such events within the 30 day period following
submission of such notice. For purposes of this Agreement, “Good Reason” shall mean (i) a
reduction in the Executive’s annual base salary or annual bonus opportunity, or the failure to
pay or provide the same when due, (ii) a material diminution in the Executive’s duties,
authority, responsibilities or title, or the assignment to the Executive of duties or
responsibilities which are materially inconsistent with his positions, (iii) the removal of
the Executive from the position described in Clause 3; (iv) the Company’s requiring the
Executive to be based at any office or location more than fifty (50) miles from the
Executive’s office as of the date hereof; or (v) any other fundamental breach of this
Agreement; provided, however, that no such event(s) shall constitute “Good Reason” unless the
Company shall have failed to cure such event(s) within 30 days after receipt by the Company
from the Executive of written notice describing in detail such event(s).
	 
	18.2	 	The Executive shall have the right to terminate his employment at any time without Good
Reason upon giving 12 months’ prior written notice to the Company.
	 
	18.3	 	If the Executive gives notice to terminate his employment without Good Reason under Clause
18.2 or if the Executive seeks to terminate his employment without Good Reason and without the
notice required by Clause 18.2 or the Company gives notice to terminate the Executive’s
employment under Clause 17.1(i), then provided the Company continues to provide the Executive
with the salary and contractual benefits in accordance with this Agreement, the Company has,
at its discretion, the right for the period (the “Garden Leave Period”) then outstanding until
the date of the termination of the Executive’s employment:

	 	(a)	 	to exclude the Executive from any premises of the Company or any Group
Company and require the Executive not to attend at any premises of the Company or any
Group Company; and/or
	 
	 	(b)	 	to require the Executive to carry out no duties; and/or
	 
	 	(c)	 	to require the Executive not to communicate or deal with any employees,
agents, consultants, clients or other representatives of the Company or any other
Group Company; and/or
	 
	 	(d)	 	to require the Executive to resign with immediate effect from any offices he
holds with the Company or any other Group Company (and any related trusteeships);
and/or
	 
	 	(e)	 	to require the Executive to take any holiday which has accrued under clause 9
during the Garden Leave Period.

	 	 	The Executive shall continue to be bound by the duties set out in Clause 5 (insofar as they
are compatible with being placed on garden leave), the restrictions set out in Clause 14.2
and all duties of good faith and fidelity during the Garden Leave Period.

 

	18.4	 	If the Executive is required to take garden leave under clause 18.3 the Company will during
this time (where the Company has served notice to terminate his employment Without Cause under
clause 17.1(i) but not otherwise) pay to the Executive an annual incentive award equal to the
lesser of (x) the target annual incentive award for the year in which notice was served and
(y) the average annual incentive awards received by the Executive in the prior three years (or
if less the number of prior years in which the Executive was employed by the Company)
multiplied by a fraction, the numerator of which is the number of days that the Executive was
on garden leave and the denominator of which is 365 such award to be paid on the completion of
garden leave.
	 
	19.	 	OBLIGATIONS UPON TERMINATION OF EMPLOYMENT; CERTAIN OTHER TERMINATIONS
	 
	19.1	 	Upon the termination of his employment hereunder for whatever reason the Executive shall:

	 	(a)	 	forthwith tender his resignation as a Director of the Company and of any
other Group Company without compensation, but without prejudice to any other rights
which he may have under this Agreement. To secure his obligation under this Agreement
the Executive irrevocably appoints the Company to be his attorney in his name and on
his behalf to sign any documents and do any things necessary to give effect thereto,
if the Executive shall fail to sign or do the same himself;
	 
	 	(b)	 	deliver up to the Company all keys, credit cards, correspondence, documents,
specifications, reports, papers and records (including any computer materials such as
discs or tapes) and all copies thereof and any other property (whether or not similar
to the foregoing or any of them) belonging to the Company or any other Group Company
which may be in his possession or under his control, and (unless prevented by the
owner thereof) any such property belonging to others which may be in his possession or
under his control and which relates in any way to the business or affairs of the
Company or any other Group Company or any supplier, agent, distributor or customer of
the Company or any other Group Company, and he shall not without written consent of
the Board retain any copies thereof;
	 
	 	(c)	 	if so requested send to the Company Secretary a signed statement confirming
that he has complied with Clause 19.1(b); and
	 
	 	(d)	 	not at any time make any untrue or misleading oral or written statement
concerning the business and affairs of the Company or any other Group Company or
represent himself or permit himself to be held out as being in any way connected with
or interested in the business of the Company or any other Group Company (except as a
former employee for the purpose of communicating with prospective employers or
complying with any applicable statutory requirements).

	19.2	 	In the event of a termination of Executive’s employment hereunder by the Executive with Good
Reason or by the Company without Cause (other than by reason of death), the Executive shall be
entitled to (a) salary at his Salary Rate through the date in which his termination occurs;
(b) the lesser of (x) the target annual incentive award for the year in which the Executive’s
termination occurs, and (y) the average of the annual incentive

 

	 	 	awards received by the Executive in the prior three years (or, if less the number of prior
years in which the Executive was employed by the Company), multiplied by a fraction, the
numerator of which is the number of days that the Executive was employed during the
applicable year and the denominator of which is 365; (c) subject to Clause 19.3below, the
sum of (x) the Executive’s highest Salary Rate during the term of this Agreement and (y)
the average bonus under the Company’s annual incentive plan actually earned by the
Executive during the three years (or number of complete years employed by the Company, if
fewer) immediately prior to the year of termination (the sum of (x) and (y) hereafter
referred to as the “Severance Payment”), and (d) the unpaid balance of all previously
earned cash bonus and other incentive awards with respect to performance periods which have
been completed, but which have not yet been paid, all of which amounts shall be payable in
a lump sum in cash within 30 days after his termination. In the event that the Company
terminates the Executive’s employment without Cause under the provisions of Clause 17.1(ii)
the parties acknowledge that the Severance Payment will be inclusive of the Executive’s
rights to be paid in lieu of the 12 months’ notice period to which he is entitled under
that Clause.
	 
	19.3	 	In the event that the Executive’s employment is terminated by the Company without Cause under
the provisions of Clause 17.1 (i) and the Company exercises all or any of its rights under
Clause 18.3 during the 12 months’ notice period, the Severance Payment shall be reduced by a
sum equal to the total salary and bonus payments received by the Executive during the Garden
Leave Period.
	 
	19.4	 	Upon any termination of employment, the Executive shall be entitled to (a) any expense
reimbursement due to him and (b) other benefits (if any) in accordance with the applicable
plans and programs of the Company.
	 
	19.5	 	In the event of any termination of employment under this Agreement, the Executive shall be
under no obligation to seek other employment and there shall be no offset against amounts due
the Executive under this Agreement on account of any remuneration attributable to any
subsequent employment that he may obtain.
	 
	20.	 	EFFECT OF TERMINATION OF THIS AGREEMENT
	 
	 	 	The expiry or termination of this Agreement however arising shall not operate to affect any
of the provisions hereof which are expressed to operate or have effect thereafter and shall
not prejudice the exercise of any right or remedy of either party accrued beforehand.
	 
	21.	 	GENERAL RELEASE
	 
	 	 	Notwithstanding any provision herein to the contrary, prior to payment of any amount
pursuant to Clauses 15.2 and 19.2, the Executive shall execute a valid general release, in
the form attached hereto (except to the extent that the Company considers that a change in
law or any current practice existing at the date of termination requires a modification to
such release), pursuant to which the Executive shall release the Group and its
shareholders, directors, officers, employees and agents, to the maximum extent permitted by
law, from any and all claims the Executive may have against the Group that relate to or
arise out of the Executive’s employment or termination of employment, except such claims
arising under this Agreement.
	 
	22.	 	OTHER TERMS AND CONDITIONS

 

	22.1	 	The Executive’s period of continuous employment which began on 1st July 1989 shall be
recognised by the Company.
	 
	22.2	 	The Company shall maintain a directors’ and officers’ liability insurance policy covering the
Executive which is no less favorable than the policy covering other senior executive officers
of the Company. In addition, the Company expressly acknowledges that the Executive is in the
class of individuals entitled to be an “Indemnified Person” (as such term is defined in the
Amended and Restated Bye-Laws of the Company (the “Bye-Laws”)). As such, the Executive shall
be entitled to the greatest of any and all protections regarding indemnity, insurance and
advancement and reimbursement of expenses provided under the Bye-Laws as in existence on the
date hereof, the directors’ and officers’ policy described above, or such greater protection
as may be provided under applicable law, provided, however, that if the Bye-Laws are amended
after the date hereof, and, as amended, they provide greater benefits than the existing
Bye-Laws, the Executive shall be entitled to such greater benefits.
	 
	22.3	 	In the event that a new Bermuda work permit is required to enable the Executive to take up
his new position, and the Company is unable to obtain such a permit (other than by reason of
an action by the Executive) within 6 months after the Executive was scheduled to take on his
new position, then the Company will use reasonable efforts to provide the Executive with
alternative employment in Bermuda or the United Kingdom with the Company or one of its
Affiliates at a level commensurate with the proposed role of Chairman, AIL. If the Company is
unable to do so, then the Executive’s employment with the Company will be terminated by mutual
agreement, but the Executive will receive the financial benefits of this contract on the same
terms as if he had been terminated without Cause.
	 
	23.	 	NOTICES
	 
	 	 	Any notice to be given hereunder shall be in writing. Notice to the Executive shall be
sufficiently served by being delivered personally to him or be being sent by first class
post addressed to him at his usual or last known place of residence, Notice to the Company
shall be sufficiently served by being delivered to the Company Secretary or by being sent
by first class post to the registered office of the Company. Any notice if so posted shall
be deemed served upon the third day following that on which it was posted.
	 
	24.	 	PREVIOUS AND OTHER AGREEMENTS
	 
	 	 	This Agreement shall take effect in substitution for all previous agreements and
arrangements (whether written, oral or implied) between the Company and the Executive
(including, without limitation, the Original Agreement) relating to his employment which
shall be deemed to have been terminated by mutual consent with effect from the commencement
of this Agreement.
	 
	25.	 	ENTIRE AGREEMENT/AMENDMENT
	 
	 	 	This Agreement contains the entire understanding of the parties with respect to the
employment of the Executive by the Company. There are no restrictions, agreements,
promises, warranties, covenants or undertakings between the parties with respect to the
subject matter herein other than those expressly set forth herein. This Agreement may not

 

 

	 	 	be altered, modified, or amended except by written instrument signed by the parties hereto.
	 
	26.	 	ASSIGNMENT
	 
	 	 	This Agreement, and all of the Executive’s rights and duties hereunder, shall not be
assignable or delegable by the Executive. Any purported assignment or delegation by the
Executive in violation of the foregoing shall be null and void ab initio and of no force
and effect. This Agreement may be assigned by the Company to a person or entity that is the
successor in interest to substantially all of the business operations of the Company. Upon
such assignment, the rights and obligations of the Company hereunder shall become the
rights and obligations of such successor person or entity. Failure by such successor of the
Company to expressly assume this Agreement shall constitute an event of “Good Reason”,
entitling Executive to the Benefits set forth in Clause 15 or 19, as applicable.
	 
	27.	 	SEVERABILITY
	 
	 	 	In the event that any one or more of the provisions of this Agreement shall be or become
invalid, illegal or unenforceable in any respect, the validity, legality and enforceability
of the remaining provisions of this Agreement shall not be affected thereby.
	 
	28.	 	SUCCESSORS/BINDING AGREEMENT
	 
	 	 	This Agreement shall inure to the benefit of and be binding upon personal or legal
representatives, executors, administrators, successors, heirs, distributees, devisees and
legatees of the parties hereto.
	 
	29.	 	CO-OPERATION
	 
	 	 	During employment by the Company and thereafter, the Executive shall provide his reasonable
co-operation in connection with any action or proceeding (or any appeal from any action or
proceeding) that relates to events occurring during the Executive’s employment; provided,
however, that after the Executive’s employment by the Company has ended, (i) any request
for such co-operation shall accommodate the demands of the Executive’s then existing
schedule and (ii) if any such request will involve more than a de minimis amount of the
Executive’s time, the Executive shall be entitled to reasonable compensation therefor.
	 
	30.	 	GOVERNING LAW
	 
	 	 	English law shall apply to this Agreement.
	 
	31.	 	COUNTERPARTS
	 
	 	 	This Agreement may be signed in counterparts, each of which shall be an original, with the
same effect as if the signatures thereto and hereto were upon the same instrument.

 

 

IN WITNESS whereof this Agreement has been duly executed and delivered as a deed the day and year
first before written.

	 	 	 

	SIGNED as a Deed
	 	 
	and DELIVERED by
	 	 
	JULIAN MICHAEL CUSACK

	 	/s/ Julian Cusack
	in the presence of:
	 	 
	 
	 	 
	Witness Signature:

	 	/s/ Michael Cain
	Witness Name:

	 	Michael Cain
	Witness Address:

	 	34 Crofton Lane, Orpington,
	

	 	UK
	Witness Occupation:

	 	Solicitor

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	 	 
	 	 	 

	 	 	 	 	 
	 	  ASPEN INSURANCE UK 

  SERVICES LIMITED
 	 
	 
	 	  By:  	/s/ Richard Houghton      
 	 
	 	 	Name:  	Richard Houghton 	 
	 	 	Title:  	Director 	 

 

 

	 	 	 	 	 

DATED _____________________

ASPEN INSURANCE UK SERVICES LIMITED

and

JULIAN MICHAEL CUSACK

 

SEVERANCE AGREEMENT

 

 

 

THIS AGREEMENT is made as of the           day of             [20[ ]]

BETWEEN:

	(1)	 	ASPEN INSURANCE UK SERVICES LIMITED (Registered in England No. 1184193), 30 Fenchurch St,
London, EC3M 3BD, England (the “Company”); and

	 
	(2)	 	JULIAN MICHAEL CUSACK of Baywatch, 8 Williamsville Drive, Southampton, Bermuda (hereinafter
referred to as the “Executive”).

IT IS AGREED AS FOLLOWS:

	1.	 	INTERPRETATION

	 
	1.1	 	In this Agreement:

	 	 	 	 	 
	 

	 	“Affiliate”

	 	means any entity directly or indirectly controlling,
controlled by, or under common control with the
Company; or any other entity designated by the Board
in which the Company or an Affiliate has an interest.

	 

	 	 
	 	 

	 

	 	“Board”

	 	means the Board of Directors of the Company from time
to time;

	 

	 	 
	 	 

	 

	 	“Group”

	 	means the Company and its Affiliates (and “Group
Company” means the Company or any one of its
Affiliates).;

	 

	 	 
	 	 

	 

	 	“Holdings”

	 	means Aspen Insurance Holdings Limited, a Bermuda
limited company, the ultimate holding company of the
Company and its Affiliates;

	 

	 	 
	 	 

	 

	 	“Option Agreement”

	 	means the nonqualified share option agreement entered
into by the Executive and the Company on 20 August
2003; and

	 

	 	 
	 	 

	 

	 	“Service Agreement”

	 	shall mean the service agreement entered into between
the Executive and the Company dated [ ], as
subsequently amended.

	2.	 	TERMINATION DATE

	 
	 	 	The Executive’s employment with the Company [will end][ended] on [date] (the “Termination
Date”).

	 
	3.	 	PAYMENT OF SALARY ETC

 

 

	 	 	The Company will continue to provide the Executive with his salary and all other
contractual benefits up to the Termination Date in the normal way. Within 14 days of the
Termination Date the Company will also pay the Executive in respect of his accrued but
untaken holiday (less such deductions for income tax and national insurance as are required
by law).

	 
	4.	 	TERMINATION SUMS

	 
	 	 	Subject to the Executive agreeing to all of the conditions set out below, and receipt by
the Company of a copy of this Agreement signed by the Executive and the attached
certificate signed by the Executive’s legal adviser, the Company will pay the Executive the
following sums:

	 	(i)	 	£[appropriate figure to be inserted] in respect of the Executive’s
entitlement to an annual incentive award for the year in which the termination of the
Executive’s employment with the Company occurs, as calculated in accordance with
Clause 19.2 (b) of the Service Agreement;

	 
	 	(ii)	 	the sum of £[appropriate figure to be inserted] in respect of the Executive’s
entitlement to a Severance Payment, as calculated and defined in accordance with
Clauses 19.2(c) and 19.3 of the Service Agreement; and

	 
	 	(iii)	 	the sum of £[appropriate figure to be inserted] in respect of the
Executive’s entitlement to the unpaid balance of all previously earned cash bonus and
other incentive awards with respect to performance periods which have been completed
as at the Termination Date but not yet paid, as calculated in accordance with Clause
19.2(d) of the Service Agreement.

	 	 	The sums set out in (i) to (iii) above will be subject to such deductions for income tax
and national insurance as are required by law and will be paid to the Executive within [14]
days of the date of signature by him of this Agreement and signature by his legal adviser
of the attached certificate. Payment will be made by transfer to the Executive’s bank
account.

	5.	 	SHARE OPTIONS

	 
	 	 	[The Company confirms that:

	 	(a)	 	with respect to share options issued under the Option Agreement;
notwithstanding any provision in the Option Agreement to the contrary, the Shares
underlying the Time Option (as defined in the Option Agreement) vested and became
exercisable on 31 December 2006; and it is agreed that the Shares underlying the
Performance-Accelerated Option (as defined in the Option Agreement) that remain
unvested at the date of this Agreement shall continue to vest and become exercisable
in accordance with the provisions of clause 2(b) of the Option Agreement
notwithstanding the termination of the Executive’s employment; and

	 
	 	(b)	 	with respect to other share options, the extent to which share options held
by the Executive as at the Termination Date shall be exercisable following the
Termination Date will be determined solely in accordance with terms of the

 

 

	 	 	 	agreements under which such share options were granted.] or [Other than in relation
to share options granted to the Executive in 2004 and 2005, the Company confirms
that all share options granted to the Executive have vested and will remain
exercisable for the remainder of their terms.]1

	6.	 	WAIVER OF CLAIMS

	 
	 	 	The Executive accepts the terms set out in this Agreement in full and final settlement of
all and any claims that he has or may have against the Company, the Board, Holdings or any
other Group Company or any of its or their current or former shareholders, directors,
officers, employees or agents, whether contractual (whether known or unknown, existing now
or in the future), statutory or otherwise, arising out of or in connection with his
employment with the Company or the termination of his employment and his directorship of
the Company and any Group Company or his resignation therefrom. The Executive also agrees
to waive irrevocably and release the Company, the Board and all Group Companies (and all of
its or their current or former shareholders, directors, officers, employees or agents) from
and against any claims whether contractual (whether known or unknown, existing now or in
the future), statutory or otherwise, arising out of or in connection with his employment
with the Company or the termination of his employment and his directorship of the Company
and any Group Company or his resignation therefrom. This waiver shall not apply in relation
to any claim relating to his pension rights that have accrued up to the Termination Date.

	 
	7.	 	CONFIRMATION OF NO BREACHES

	 
	 	 	The Executive confirms and warrants to the Company that he has not at any time during his
employment committed a fundamental breach of the terms of the Service Agreement.

	 
	8.	 	SATISFACTION OF STATUTORY CONDITIONS

	 
	 	 	The Executive is aware of his rights under the Employment Act 2000 and the Human Rights
Amendment Act 1987 and has informed the Company of any and all claims that he might seek to
bring arising from his employment or termination of employment. This agreement relates to
his claims under the Employment Act 2000 and the Human Rights Amendment Act 1987.

	 
	 	 	Second alternative to be used in the event of qualifying termination in connection with a
Change of Control under Clause 15.2 of the Service Agreement.

	 
	9.	 	RESIGNATION OF DIRECTORSHIP

	 
	 	 	At the same time as executing this Agreement the Executive will resign with immediate
effect from his directorship of the Company and from all directorships and offices held
with other Group Companies (and all related trusteeships) by signing and delivering the
attached letters of resignation.

	 
	10.	 	POST-TERMINATION RESTRAINTS

	 
	 	 	The Executive acknowledges that the provisions of Clause 11 (Confidentiality) and Clause 14
(Restrictive Covenants) of the Service Agreement will (to the extent that they are
applicable in the circumstances of the termination of the Executive’s employment

 

 

	 	 	with the Company) remain in full force and effect notwithstanding the termination of his
employment.

	 
	11.	 	RETURN OF COMPANY PROPERTY

	 
	 	 	Before any payment under Clause 4 above is made, the Executive will, in accordance with
Clause 19.1(b) of the Service Agreement, deliver up to the Company all vehicles, keys,
credit cards, correspondence, documents, specifications, reports, papers and records
(including any computer materials such as discs or tapes) and all copies thereof and any
other property (whether or not similar to the foregoing or any of them) belonging to the
Company or any other Group Company which may be in his possession or under his control, and
(unless prevented by the owner thereof) any such property belonging to others which may be
in his possession or under his control and which relates in any way to the business or
affairs of the Company or any other Group Company or any supplier, agent, distributor or
customer of the Company or any other Group Company, and he confirms that he has not
retained any copies thereof.

	 
	12.	 	CONFIDENTIALITY

	 
	 	 	Save by reason of any legal obligation or to enforce the terms of this letter, the parties
will not:

	 	(a)	 	disclose the existence or terms of this Agreement to anyone (other than to
their professional advisers, the relevant tax authorities or any other competent
authority or in the case of the Executive, to his spouse);

	 
	 	(b)	 	directly or indirectly disseminate, publish or otherwise disclose (or allow
to be disseminated, published or otherwise disclosed) by any means (whether oral,
written or otherwise) or medium (including without limitation electronic, paper, radio
or television) any information directly or indirectly relating to the termination of
the Executive’s employment; or

	 
	 	(c)	 	make any derogatory or disparaging comments about the other or in the case of
the Executive in relation to the Company, any Group Company or any of its or their
shareholders, directors, officers, employees or agents.

	13.	 	NO ADMISSION OF LIABILITY

	 
	 	 	This agreement is made without any admission on the part of the Company or any Group
Company that it has or they have in any way breached any law or regulation or that the
Executive has any claims against the Company or any Group Company.

	 
	14.	 	TAX INDEMNITY

	 
	 	 	The Executive hereby agrees to be responsible for the payment of any tax and employee’s
national insurance contributions imposed by any competent taxation authority in respect of
any of the payments and benefits provided under this Agreement (other than for the
avoidance of doubt, any tax and/or employee’s national insurance contributions deducted or
withheld by the Company in paying the sums to the Executive). The Executive further agrees
to indemnify the Company and all Group Companies and keep them indemnified on an ongoing
basis against any claim or demand which is made by any competent

 

 

	 	 	taxation authority against the Company or any Group Company in respect of any liability of
the Company or any Group Company to deduct an amount of tax or an amount in respect of tax
or any employee’s national insurance contributions from the payments made and benefits
provided under this Agreement, including any related interest or penalties imposed by any
competent taxation authority.

	 
	15.	 	ENTIRE AGREEMENT

	 
	 	 	This letter sets out the entire agreement between the Executive and the Company and, save
as set out in Clauses 5 and 10 above, supersedes all prior arrangements, proposals,
representations, statements and/or understandings between the Executive, the Company and
any Group Company.

	 
	16.	 	APPLICABLE LAW

	 
	 	 	This agreement is subject to English law and the exclusive jurisdiction of the Bermuda
courts.

 

Julian Michael Cusack

 

dated

 

For and on behalf of ASPEN INSURANCE UK SERVICES LIMITED

 

dated

 

 

To the board of Directors

Aspen Insurance Holdings Limited

[date]

Dear Sirs

Aspen Insurance Holdings Limited (the “Company”)

I hereby irrevocably and unconditionally resign from the office of Director of the Company with
immediate effect, and I acknowledge and confirm that I have no claim of whatsoever kind outstanding
for compensation or otherwise against the Company, its servants, officers, agents or employees in
respect of the termination of my appointment.

Yours faithfully

	 	 	 

	SIGNED as a DEED
	 	)
	and DELIVERED
	 	)
	by JULIAN MICHAEL CUSACK
	 	)
	in the presence of:
	 	)

Witness signature:

Witness Name:

Witness address:

[note: separate individual similar letters of resignation should be produced for any other Group
companies of which the individual is a director]EX-10.1

Table of Contents

 

    Exhibit 10.1

 

    AVNET EMPLOYEE STOCK PURCHASE PLAN

    (2011 Restatement)

 

    

1
    

 

 

    AVNET EMPLOYEE
    STOCK PURCHASE PLAN

    (2011 Restatement)

    

    Table of Contents

 

	 	 	 	 	 	 	 	 	 
	

    Section

	
 
	
    Page

	 

	 
	

    1.

	 
	
 
	
    Purpose and History
	
 
	 
	
    B-3
	 

	 
	

    2.

	 
	
 
	
    Definitions
	
 
	 
	
    B-3
	 

	 
	

    3.

	 
	
 
	
    Plan Administration
	
 
	 
	
    B-4
	 

	 
	
 
	 
	
 
	
    (a) Committee Members
	
 
	 
	
    B-4
	 

	 
	
 
	 
	
 
	
    (b) Powers and Duties of the Committee
	
 
	 
	
    B-4
	 

	 
	
 
	 
	
 
	
    (c) Committee Action
	
 
	 
	
    B-4
	 

	 
	
 
	 
	
 
	
    (d) Exoneration of Committee Members
	
 
	 
	
    B-5
	 

	 
	

    4.

	 
	
 
	
    Eligibility to Participate in Offerings
	
 
	 
	
    B-5
	 

	 
	

    5.

	 
	
 
	
    Offerings
	
 
	 
	
    B-5
	 

	 
	

    6.

	 
	
 
	
    Participation in Offerings
	
 
	 
	
    B-5
	 

	 
	

    7.

	 
	
 
	
    Payroll Deductions
	
 
	 
	
    B-5
	 

	 
	

    8.

	 
	
 
	
    Grant of Option
	
 
	 
	
    B-6
	 

	 
	

    9.

	 
	
 
	
    Exercise of Option
	
 
	 
	
    B-6
	 

	 
	

    10.

	 
	
 
	
    Delivery
	
 
	 
	
    B-6
	 

	 
	

    11.

	 
	
 
	
    Withdrawal; Termination of Employment
	
 
	 
	
    B-7
	 

	 
	

    12.

	 
	
 
	
    Interest
	
 
	 
	
    B-7
	 

	 
	

    13.

	 
	
 
	
    Stock Subject to the Plan
	
 
	 
	
    B-7
	 

	 
	

    14.

	 
	
 
	
    Disposition Upon Death
	
 
	 
	
    B-8
	 

	 
	

    15.

	 
	
 
	
    Transferability
	
 
	 
	
    B-8
	 

	 
	

    16.

	 
	
 
	
    Share Transfer Restrictions
	
 
	 
	
    B-8
	 

	 
	

    17.

	 
	
 
	
    Amendment or Termination
	
 
	 
	
    B-8
	 

	 
	

    18.

	 
	
 
	
    Notices
	
 
	 
	
    B-8
	 

	 
	

    19.

	 
	
 
	
    Miscellaneous
	
 
	 
	
    B-9
	 

	 
	
 
	 
	
 
	
    (a) Rules of Construction
	
 
	 
	
    B-9
	 

	 
	
 
	 
	
 
	
    (b) Headings and Captions
	
 
	 
	
    B-9
	 

	 
	
 
	 
	
 
	
    (c) Governing Law
	
 
	 
	
    B-9
	 

	 
	
 
	 
	
 
	
    (d) Plan Not A Contract of Employment
	
 
	 
	
    B-9
	 

    

    2

Table of Contents

    AVNET EMPLOYEE
    STOCK PURCHASE PLAN

    (2011 Restatement)

 

    1.  Purpose and
    History.

 

    The purpose of this Avnet Employee Stock Purchase Plan (the
    “Plan”) is to advance the interests of Avnet, Inc, a
    New York corporation (“the Company”), and its
    shareholders by providing Eligible Employees (as defined in
    Section 2(g), below) of the Company and its Designated
    Subsidiaries (as defined in Section 2(f), below) with an
    opportunity to acquire an ownership interest in the Company by
    purchasing Common Stock of the Company on favorable terms
    through payroll deductions. It is the intention of the Company
    that the Plan qualify as an “employee stock purchase
    plan” under section 423 of the Internal Revenue Code
    of 1986, as amended (the “Code”). Accordingly,
    provisions of the Plan shall be construed so as to extend and
    limit participation in a manner consistent with the requirements
    of section 423 of the Code.

 

    The Plan was originally effective on October 1, 1995. This
    amendment and restatement of the Plan is effective as of the
    first Offering Date (as defined below) that occurs after this
    amendment and restatement of the Plan is approved by the
    Company’s shareholders at the Company’s 2011 Annual
    Meeting (the “Effective Date”).

 

    2.  Definitions.

 

    (a) “Board” means the Board of Directors
    of the Company.

 

    (b) “Business Day” means a day when the
    New York Stock Exchange is open.

 

    (c) “Common Stock” means the common stock,
    par value $1.00 per share, of the Company, or the number and
    kind of shares of stock or other securities into which such
    common stock may be changed in accordance with Section 13.

 

    (d) “Committee” means the entity
    administering the Plan, as provided in Section 3, below.

 

    (e) “Compensation” means the total cash
    compensation, including salary, wages, overtime pay, and
    bonuses, paid to an Eligible Employee by reason of his
    employment with the Company or a Designated Subsidiary
    (determined prior to any reduction thereof by operation of a
    salary reduction election under a plan described in
    section 401(k) of the Code or section 125 of the
    Code), as reported on IRS
    Form W-2,
    but excluding any amounts not paid in cash which are required to
    be accounted for as imputed income on IRS
    Form W-2,
    any reimbursements of expenses and equity-based awards.

 

    (f) “Designated Subsidiary” means a
    Subsidiary that has been designated by the Committee from time
    to time, in its sole discretion, as eligible to participate in
    the Plan. Notwithstanding any other provision of the Plan, only
    those Subsidiaries in the United States of America or Canada may
    be Designated Subsidiaries under the Plan.

 

    (g) “Eligible Employee” means, with
    respect to any Offering, an individual who is an Employee at all
    times during the period beginning three (3) months before
    the Offering Date and ending on the Offering Date. In accordance
    with Treas. Reg. §1.421-1(h)(2), an Employee will be
    considered to be employed during military or sick leave or any
    other bona fide leave of absence that does not exceed three
    months and during any period longer than three months if his
    right to reemployment is guaranteed by statute or contract.

 

    (h) “Employee” means any person, including
    an Insider, who, as of a particular Offering Date, is employed
    by the Company or one of its Designated Subsidiaries, exclusive
    of any such person whose customary employment with the Company
    or a Designated Subsidiary is for less than 20 hours per
    week.

 

    (i) “Exchange Act” means the Securities
    Exchange Act of 1934, as amended.

 

    (j) “Fair Market Value” generally means,
    with respect to any share of Common Stock, as of any date under
    the Plan, the closing price of the Common Stock on the New York
    Stock Exchange on a particular date.

 

    (k) “Insider” means any Participant who is
    subject to section 16 of the Exchange Act.

    

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    (l) “Offering” means any of the offerings
    to Participants of options to purchase Common Stock under the
    Plan, each continuing for one month, as described in
    Section 5, below.

 

    (m) “Offering Date” means the first day of
    the period of an Offering under the Plan, as described in
    Section 5, below.

 

    (n) “Option Price” means 95% of the Fair
    Market Value of one share of Common Stock on the Termination
    Date.

 

    (o) “Participant” means an Eligible
    Employee who elects to participate in one or more Offerings
    under the Plan pursuant to Section 6, below.

 

    (p) “Securities Act” means the Securities
    Act of 1933, as amended.

 

    (q) “Subsidiary” means any corporation,
    other than the Company, in an unbroken chain of corporations,
    beginning with the Company, if, at the time an option is granted
    under the Plan, each of the corporations, other than the last
    corporation in the unbroken chain, owns stock possessing
    50 percent or more of the total combined voting power of
    all classes of stock in one of the other corporations in such
    chain.

 

    (r) “Termination Date” means the last day
    of the period of an Offering under the Plan, as described in
    Section 5, below.

 

    3.  Plan
    Administration.

 

    (a) Committee Members.

 

    The administration of the Plan shall be under the supervision of
    the committee for the Plan (the “Committee”) appointed
    by the Board from time to time. Members of the Committee shall
    serve at the pleasure of the Board and may be removed by the
    Board at any time without prior written notice. A Committee
    member may resign by giving written notice to the Board;
    provided, however, that an individual shall automatically cease
    to be a Committee member upon his termination of employment with
    the Company (or a Designated Subsidiary) or separation from the
    Board, as applicable.

 

    (b) Powers and Duties of the
    Committee.

 

    The Committee shall have full power to administer the Plan in
    all of its details, subject to the requirements of applicable
    law. For this purpose, the Committee’s powers shall include
    the following authority, in addition to all other powers
    provided by this Plan:

 

    (i) To adopt and apply, in a uniform and nondiscriminatory
    manner to all persons similarly situated, such rules and
    regulations as it deems necessary or proper for the efficient
    and proper administration of the Plan, including the
    establishment of any claims procedures that may include a
    requirement that all disputes that cannot be resolved between a
    Participant and the Committee will be subject to binding
    arbitration;

 

    (ii) To interpret the Plan and decide all questions
    concerning the Plan, such as the eligibility of any person to
    participate in the Plan, and the respective benefits and rights
    of Participants and others entitled thereto and the exclusive
    power to remedy ambiguities, inconsistencies and omissions in
    the terms of the Plan;

 

    (iii) To appoint such agents, counsel, accountants,
    consultants and other persons as may be required to assist in
    administering the Plan;

 

    (iv) To allocate and delegate its responsibilities under
    the Plan and to designate other persons to carry out any of its
    responsibilities under the Plan;

 

    (v) To prescribe such forms as may be necessary or
    appropriate for Eligible Employees to make elections under the
    Plan or to otherwise administer the Plan; and

 

    (vi) To do such other acts as it deems necessary or
    appropriate to administer the Plan in accordance with its terms,
    or as may be provided for or required by law.

    

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    (c) Committee Action.

 

    The certificate of a Committee member designated by the
    Committee that the Committee has taken or authorized any action
    shall be conclusive in favor of any person relying on, or
    subject to, the certificate. Any interpretation of the Plan, and
    any decision on any matter within the discretion of the
    Committee, made by the Committee in good faith shall be final
    and binding on all persons. A majority of the members of the
    Committee shall constitute a quorum. The Committee shall act by
    majority approval of the members and shall keep minutes of its
    meetings. Action of the Committee may be taken without a meeting
    if unanimous written consent is given. Copies of minutes of the
    Committee’s meetings and of its actions by written consent
    shall be kept with the corporate records of the Company.

 

    (d) Exoneration of Committee
    Members.

 

    No member of the Committee shall be liable for any action or
    determination made in good faith with respect to the Plan or any
    option granted under it. The Company hereby agrees to indemnify,
    defend and hold harmless, to the fullest extent permitted by
    law, any Committee member against any and all liabilities,
    damages, costs and expenses (including attorneys’ fees and
    amounts paid in settlement of any claims approved by the
    Company) occasioned by any act or omission to act in connection
    with the Plan, if such act or omission was not due to the gross
    negligence or willful misconduct of the Committee member.

 

    4.  Eligibility to Participate in
    Offerings.

 

    (a) An Eligible Employee is entitled to participate in
    Offerings in accordance with Sections 5 and 6, beginning
    with the first Offering Date after the Employee becomes an
    Eligible Employee, subject to the limitations imposed by
    section 423 of the Code.

 

    (b) Notwithstanding any other provision of the Plan, no
    Employee shall be granted an option under the Plan: (i) if
    immediately after the grant, the Employee (or any other person
    whose stock ownership would be attributed to such Employee
    pursuant to section 424(d) of the Code) would own shares of
    stock and/or
    hold outstanding options to purchase shares of stock possessing
    5% or more of the total combined voting power or value of all
    classes of shares of the Company or of any Subsidiary; or
    (ii) during the six-month period following a hardship
    withdrawal under a plan described in section 401(k) of the
    Code and sponsored by the Company or a Designated Subsidiary
    when the Employee is precluded from making pre-tax contributions
    under such a plan.

 

    5.  Offerings.

 

    Options to purchase shares of Common Stock shall be offered to
    Participants under the Plan through a continuous series of
    Offerings, each beginning on the first Business Day of the month
    (the “Offering Date”), and terminating on the last
    Business Day of such month (the “Termination Date”).
    Offerings under the Plan shall continue until either
    (a) the Committee decides, in its sole discretion, that no
    further Offerings shall be made because the Common Stock
    remaining available under the Plan is insufficient to make an
    Offering to all Eligible Employees, or (b) the Plan is
    terminated in accordance with Section 17, below.
    Notwithstanding the foregoing, Offerings shall be limited under
    the Plan so that no Eligible Employee will be permitted to
    purchase shares of Common Stock under all “employee stock
    purchase plans” (within the meaning of section 423 of
    the Code) of the Company and its Subsidiaries in excess of
    $25,000 of the Fair Market Value of such shares of Common Stock
    (determined with respect to each share as of the applicable
    Offering Date) for each calendar year in which an Offering is
    outstanding at any time.

 

    6.  Participation in
    Offerings.

 

    (a) An Eligible Employee may participate in Offerings under
    the Plan by completing a subscription agreement authorizing
    payroll deductions on the form provided by the Company (the
    “Participation Form”) and filing the Participation
    Form with the Company. The Participation Form shall be effective
    no later than the first Offering that starts at least
    15 days after the completed Participation Form is received
    by the Company.

    

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    (b) Subject to Section 7(a), below, payroll deductions
    for a Participant shall begin with the first paydate after the
    Offering Date as of which the Participant’s Participation
    Form has become effective and shall continue until the Plan is
    terminated, subject to earlier termination by the Participant as
    provided in Section 11, below, or increases or decreases by
    the Participant in the amount of payroll deductions as provided
    in Section 7(c), below.

 

    7.  Payroll Deductions.

 

    (a) By completing and filing a Participation Form, an
    Eligible Employee shall elect to have payroll deductions
    withheld from his total Compensation on each paydate (including
    paydates covering regular payroll, commissions and bonuses)
    during the time he is a Participant in the Plan in such amount
    as he shall designate on the Participation Form; provided,
    however, that: (i) payroll deductions must be in such
    percentages or whole dollar amounts, as determined by rules
    established by the Committee, as in effect and amended from time
    to time; (ii) the Committee may establish rules limiting
    the amount of an Eligible Employee’s payroll deductions,
    except that any percentage or dollar limitation must apply
    uniformly to all Eligible Employees; (iii) and each
    Participant’s payroll deductions must be equal to at least
    the minimum percentage or dollar amount established by the
    Committee from time to time, and no more than $23,750 (U.S.) per
    calendar year.

 

    (b) All payroll deductions authorized by a Participant
    shall be credited to an account established under the Plan for
    the Participant. The funds represented by such account shall be
    held as part of the Company’s general assets, usable for
    any corporate purpose, and the Company shall not be obligated to
    segregate such funds. A Participant may not make any separate
    cash payment or contribution to such account.

 

    (c) No increases or decreases of the amount of payroll
    deductions for a Participant may be made during an Offering. A
    Participant may increase or decrease the amount of his payroll
    deductions under the Plan for subsequent Offerings by completing
    an amended Participation Form and filing it with the Company
    (pursuant to such standards and procedures established by the
    Committee). Such amended Participation Form shall be effective
    as of the first Offering Date that starts at least 15 days
    after the amended Participation Form is received by the Company.

 

    (d) A Participant may discontinue his participation in the
    Plan at any time as provided in Section 11, below.

 

    8.  Grant of Option.

 

    On each Offering Date, each Participant shall be granted (by
    operation of the Plan) an option to purchase (at the Option
    Price) as many shares of Common Stock as he will be able to
    purchase with the payroll deductions credited to his account
    during his participation in the Offering beginning on such
    Offering Date. Notwithstanding the foregoing, the number of
    shares of Common Stock that an Employee may purchase under an
    Offering may not exceed the lesser of 500 (as may be adjusted
    from time to time under Section 13(b)) or the maximum
    number that may be purchased under the $25,000 rule described in
    Section 5, above.

 

    9.  Exercise of Option.

 

    (a) Unless a Participant gives written notice to the
    Company as provided in Section 9(c), below, or withdraws
    from the Plan pursuant to Section 11, below, his option for
    the purchase of shares of Common Stock granted under an Offering
    shall be exercised automatically at the Termination Date of such
    Offering for the purchase of the number of shares of Common
    Stock that the accumulated payroll deductions in his account on
    such Termination Date will purchase at the applicable Option
    Price (subject to the limits required by the Plan). Any
    accumulated payroll deductions not used to purchase shares by
    reason of a limit required by the Plan shall be returned to the
    Participant; provided, however, that an amount less than the
    Fair Market Value of a share on the Termination Date may be
    carried over to a subsequent Offering.

 

    (b) No Participant (or any person claiming through such
    Participant) shall have any interest in any Common Stock subject
    to an option under the Plan until such option has been
    exercised, at which point such interest shall be limited to the
    interest of a purchaser of the Common Stock pending the delivery
    of

    

6
    

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    such Common Stock in accordance with Section 10, below.
    During his lifetime, a Participant’s option to purchase
    shares of Common Stock under the Plan is exercisable only by him.

 

    (c) A Participant who has initiated payroll deductions and
    does not wish to exercise his option may terminate his
    participation in the Plan and withdraw such payroll deductions
    by following the procedures set forth in Section 11, below,
    before the end of the Business Day on the applicable Termination
    Date.

 

    10.  Delivery.

 

    As promptly as practicable after the Termination Date of each
    Offering, the Company will deliver, or cause to be delivered, on
    behalf of each Participant, a certificate representing the
    shares of Common Stock purchased upon exercise of his option
    granted for such Offering to a brokerage firm designated by the
    Company that has rights to execute trades on the New York Stock
    Exchange. Such shares will be deposited in an account
    established for the Participant at a brokerage firm selected by
    the Committee and may be held in street name.

 

    11.  Withdrawal; Termination of
    Employment.

 

    (a) A Participant may terminate his participation in the
    Plan and withdraw all, but not less than all, of the payroll
    deductions credited to his account under the Plan at any time
    prior to the end of the Business Day on a Termination Date
    corresponding to an Offering, by giving written notice to the
    Company. Such notice shall state that the Participant wishes to
    terminate his involvement in the Plan, specify a Termination
    Date and request the withdrawal of all of the Participant’s
    payroll deductions held under the Plan. All of the
    Participant’s payroll deductions credited to his account
    will be paid to him as soon as practicable after the Termination
    Date specified in the notice of termination and withdrawal (or,
    if no such date is specified, as soon as practicable after
    receipt of his notice of termination and withdrawal), and his
    option for such Offering will be automatically canceled, and no
    further payroll deductions for the purchase of shares of Common
    Stock will be made for such Offering or for any subsequent
    offering, except in accordance with a new Participation Form
    filed pursuant to Section 6, above.

 

    (b) Upon termination, or notice of termination, of a
    Participant’s employment for any reason, including
    retirement or death, any payroll deductions authorized under
    Section 7 shall be canceled immediately. Thereafter, any
    payroll deductions that were previously accumulated in the
    Participant’s account prior to his termination or notice of
    termination shall be applied in accordance with the provisions
    of Section 9. However, if a termination of employment
    precludes an Employee from being classified as an Eligible
    Employee with respect to an Offering, then the payroll
    deductions accumulated in his account shall be returned to him
    as soon as practicable after such termination or, in the case of
    his death, to the person or persons entitled thereto under
    Section 14, below, and his option will be automatically
    canceled. For purposes of the Plan, the termination date of
    employment shall be the Participant’s last date of actual
    employment and shall not include any period during which such
    Participant receives any severance payments. A transfer of
    employment between the Company and a Designated Subsidiary or
    between one Designated Subsidiary and another Designated
    Subsidiary, or an absence or leave described in
    Section 2(g), shall not be deemed a termination of
    employment under this Section 11(b).

 

    (c) A Participant’s termination and withdrawal
    pursuant to Section 11(a), above, shall not have any effect
    upon his eligibility to participate in a subsequent Offering by
    completing and filing a new Participation Form pursuant to
    Section 6, above, or in any similar plan that may hereafter
    be adopted by the Company.

 

    12.  Interest.

 

    No interest shall accrue on a Participant’s payroll
    deductions under the Plan.

 

    13.  Stock Subject to the
    Plan.

 

    (a) The maximum number of shares of Common Stock reserved
    for sale under the Plan shall be 4,500,000 shares, minus
    the sum of the shares sold under the Plan from the time of
    inception until immediately prior to the Effective Date, and
    subject to adjustment upon changes in capitalization of the
    Company as provided in Section 13(b), below. The shares to
    be sold to Participants under the Plan may be,

    

   7

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    at the election of the Company, either treasury shares or shares
    authorized but unissued and may be derived from shares of Common
    Stock purchased by the Company. If, on any Termination Date, the
    total number of shares of Common Stock that would otherwise be
    subject to options granted pursuant to Section 8, above,
    exceeds the number of shares then available under the Plan
    (after deduction of all shares for which options have been
    exercised or are then outstanding), the Company shall make a pro
    rata allocation of the shares of Common Stock remaining
    available for issuance in a uniform and equitable determined by
    the Committee. In such event, the Company shall give written
    notice of such reduction of the number of shares subject to the
    option to each Participant affected thereby and shall return any
    excess funds accumulated in each Participant’s account as
    soon as practicable after the Termination Date of such Offering.

 

    (b) If any option under the Plan is exercised after any
    Common Stock dividend,
    split-up,
    recapitalization, merger, consolidation, combination or exchange
    of Common Stock or the like, the number of shares of Common
    Stock to which such option shall be applicable and the Option
    Price for such Common Stock shall be appropriately adjusted by
    the Company.

 

    14.  Disposition Upon
    Death.

 

    If a Participant dies, shares of Common Stock
    and/or cash,
    if any, attributable to the Participant’s account under the
    Plan (when cash or shares of Common Stock are held for his
    account) shall be delivered to the executor or administrator of
    the estate of the Participant; or, if no such executor or
    administrator has been appointed (to the knowledge of the
    Company), the Company, in its discretion, may deliver such
    shares of Common Stock
    and/or cash
    to the spouse or to any one or more dependents or relatives of
    the Participant; or, if no spouse, dependent or relative is
    known to the Company, then to such other person as the Company
    may designate.

 

    15.  Transferability.

 

    Neither payroll deductions credited to a Participant’s
    account nor any rights relating to the exercise of an option or
    to receive shares of Common Stock under the Plan may be
    assigned, transferred, pledged or otherwise disposed of in any
    way (other than by will, the laws of descent and distribution,
    or as provided in Section 14, above) by the Participant.
    Any such attempt at assignment, transfer, pledge or other
    disposition shall be without effect, except that the Company may
    treat such act as an election to withdraw funds in accordance
    with Section 11(a), above.

 

    16.  Share Transfer
    Restrictions.

 

    (a) Shares of Common Stock shall not be issued under the
    Plan unless such issuance is either registered under the
    Securities Act and applicable state securities laws or is exempt
    from such registrations.

 

    (b) Shares of Common Stock issued under the Plan may not be
    sold, assigned, transferred, pledged, encumbered or otherwise
    disposed of (whether voluntarily or involuntarily), except
    pursuant to registration under the Securities Act and applicable
    state securities laws, or pursuant to exemptions from such
    registrations.

 

    (c) Notwithstanding any other provision of the Plan or any
    documents entered into pursuant to the Plan and except as
    permitted by the Committee in its sole discretion, any shares of
    Common Stock issued to a Participant who is an Insider may not
    be sold, assigned, transferred, pledged, encumbered or otherwise
    disposed of for a six-month period after the Option Price is
    determined on or after the Termination Date corresponding to the
    Offering with respect to which they were issued.

 

    17.  Amendment or
    Termination.

 

    (a) The Plan may be amended by the Committee from time to
    time to the extent that the Committee deems necessary or
    appropriate in light of, and consistent with, section 423
    of the Code; provided, however, that any amendment that either
    changes the composition, function or duties of the Committee or
    modifies the terms and conditions pursuant to which options are
    granted hereunder must be approved by the Board.

    

    8

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    (b) The Board also may terminate the Plan or the granting
    of options pursuant to the Plan at any time; provided, however,
    that, except as provided under Section 13(b), the Board
    shall not have the right to modify, cancel or amend any
    outstanding option granted pursuant to the Plan before such
    termination unless each Participant consents in writing to such
    modification, amendment or cancellation.

 

    (c) Notwithstanding the foregoing, no amendment adopted by
    either the Committee or the Board shall be effective, without
    approval of the shareholders of the Company, if shareholder
    approval of the amendment is then required under
    section 423 of the Code.

 

    18.  Notices.

 

    All notices or other communications by a Participant to the
    Company in connection with the Plan shall be deemed to have been
    duly given when received by the Secretary of the Company or by
    any other person designated by the Company for the receipt of
    such notices or other communications, in the form and at the
    location specified by the Company.

 

    19.  Miscellaneous.

 

    (a) Rules of Construction.

 

    Whenever used in the Plan, except as otherwise expressly
    provided, (i) words in the masculine gender shall be deemed
    to refer to females as well as to males; (ii) words in the
    singular shall be deemed to refer also to the plural;
    (iii) the word “include” shall mean
    “including but not limited to”; (iv) references
    to a statute or regulation or statutory or regulatory provision
    shall refer to that provision (or to a successor provision of
    similar import) as currently in effect, as amended, or as
    reenacted, and to any regulations and other formal guidance of
    general applicability issued thereunder; (v) references to
    a law shall include any statute, regulation, rule, court case,
    or other requirement established by an exchange or a
    governmental authority or agency, and applicable law shall
    include any tax law that imposes requirements in order to avoid
    adverse tax consequences; and (vi) references to Sections
    shall be to sections of the Plan.

 

    (b) Headings and Captions.

 

    The headings to Sections, subsections, and paragraphs of the
    Plan are provided for reference and convenience only, shall not
    be considered part of the Plan, and shall not be employed in the
    construction of the Plan.

 

    (c) Governing Law.

 

    The Plan shall be interpreted and construed in accordance with
    the internal laws of the State of New York to the extent that
    such laws are not superseded by the federal laws of the United
    States of America.

 

    (d) Plan Not A Contract of
    Employment.

 

    The Plan does not constitute a contract of employment, and
    participation in the Plan does not give any Employee or
    Participant the right to be retained in the employ of the
    Company or a Designated Subsidiary, nor give any person a right
    or claim to any benefit under the Plan, unless such right or
    claim has specifically accrued under the terms of the Plan.

    

    9

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