Document:

Form of Indemnification Agreement

 Exhibit 10.53 
 INDEMNIFICATION AGREEMENT 
 THIS INDEMNIFICATION AGREEMENT (this
“Agreement”) is made and entered into this      day of                     , 2007, by and
between AMEDICA CORPORATION, a Delaware corporation (the “Corporation”), and                     
(“Agent”). 
 RECITALS 
 WHEREAS, Agent performs a valuable service to the Corporation in his capacity as [a director and/or an officer] of the Corporation; 
 WHEREAS, the Corporation has adopted provisions providing for indemnification of directors, officers, employees and other agents included in its Restated Certificate of Incorporation, as heretofore amended, and
its Amended and Restated By-Laws and, in connection with an initial public offering of shares of the Corporation’s common stock (the “IPO”), the Corporation expects to amend the same by adopting an Amended and Restated
Certificate of Incorporation (the “Charter”) and Amended and Restated Bylaws (the “Bylaws”) that will include provisions providing for the indemnification of the directors, officers, employees and
other agents of the Corporation, including persons serving at the request of the Corporation in such capacities with other corporations or enterprises, as authorized by the Delaware General Corporation Law, as amended (the
“DGCL”); 
 WHEREAS, the Charter, the Bylaws and the DGCL, by their non-exclusive nature, permit contracts
between the Corporation and its directors, officers, employees and other agents with respect to indemnification of such persons; 
 WHEREAS, in recognition of Agent’s need for (a) substantial protection against personal liability based on Agent’s reliance on the Charter and the Bylaws, and (b) specific contractual assurance that the protection
provided in the Charter and the Bylaws will be available to Agent (regardless of, among other things, any amendment to or revocation of the Charter and/or the Bylaws, any change in the composition of the Corporation’s board of directors or a
change in control of the Corporation); and 
 WHEREAS, in order to induce Agent to continue to serve as [a director/an officer] of the
Corporation, the Corporation has determined and agreed to enter into this Agreement with Agent. 
 NOW, THEREFORE, in consideration of
Agent’s service as [a director and/or an officer] of the Corporation following the date hereof, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Corporation and Agent hereby agree
as follows: 
 1. Services to the Corporation. Agent will serve, at the will of the Corporation or under separate contract, if any
such contract exists, as [a director/an officer] of the Corporation or as a director, officer or other fiduciary of an affiliate of the Corporation (including any employee benefit plan of the Corporation) faithfully and to the best of his ability so
long as he [is duly elected and qualified in accordance with the provisions of the Bylaws or other applicable charter documents/is a duly appointed officer] of the Corporation or such affiliate; provided, however, that Agent may at any
time and for any reason resign from such position (subject to any contractual obligation that Agent may have assumed apart from this Agreement) and that the Corporation or any affiliate shall have no obligation under this Agreement to continue Agent
in any such position. 

 2. Indemnity of Agent. The Corporation agrees to hold harmless and indemnify Agent to the fullest
extent authorized or permitted by the provisions of the Charter, the Bylaws and the DGCL, as the same may be amended from time to time (but, only to the extent that such amendment permits the Corporation to provide broader indemnification rights
than the Charter, the Bylaws or the DGCL permitted prior to adoption of such amendment). 
 3. Additional Indemnity. In addition to
and not in limitation of the indemnification otherwise provided for herein, and subject only to the exclusions set forth in Section 4 hereof, the Corporation further agrees to hold harmless and indemnify Agent: 
 (a) against any and all expenses (including attorneys’ fees), witness fees, damages, judgments, fines and amounts paid in
settlement and any other amounts that Agent becomes legally obligated to pay (including (i) reasonable compensation for time spent by Agent on behalf of the Corporation during which Agent is not otherwise compensated by the Corporation or a
third party and (ii) any federal, state or local taxes imposed on Agent as a result of receipt of reimbursements or advances of expenses under this Agreement) because of any claim or claims made against or by him in connection with any
threatened, pending or completed action, suit or proceeding, including any appeal and the premium, security for, and other costs relating to any costs bond, supersedes bond, or other appeal bond or its equivalent, whether civil, criminal,
arbitrational, administrative or investigative, whether formal or informal (including an action by or in the right of the Corporation), to which Agent is, was or at any time becomes a party or a witness, or is threatened to be made a party or a
witness, by reason of the fact that Agent is, was or at any time becomes a director, officer, employee or other agent of the Corporation, or is or was serving or at any time serves at the request of the Corporation as a director, officer, employee
or other agent of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise; and 
 (b) otherwise to the fullest extent as may be provided to Agent by the Corporation under the non-exclusivity provisions of the DGCL, the Charter and the Bylaws. 
 4. Limitations on Additional Indemnity. No indemnity pursuant to Section 3 hereof shall be paid by the Corporation: 
 (a) on account of any claim or proceeding against Agent for an accounting of profits made from the purchase or sale by Agent of
securities of the Corporation pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934, as heretofore or hereafter amended (the “Exchange Act”), or similar provisions of any federal, state or
local law, provided, however, if and when Agent ultimately establishes in any such proceeding that no recovery of profits from Agent is permitted under Section 16(b) of the Exchange Act or such similar provision of any similar federal,
state or local law, then, notwithstanding anything to the contrary provided in this Section 4(a), indemnification pursuant to this Agreement shall then be permitted; 
 (b) on account of Agent’s conduct that is established by a final judgment as knowingly fraudulent or deliberately dishonest or
that constituted willful misconduct; 
 (c) on account of Agent’s conduct that is established by a final judgment
as constituting a breach of Agent’s duty of loyalty to the Corporation or resulting in any personal profit or advantage to which Agent was not legally entitled; 
 (d) for which payment is actually made to Agent under a valid and collectible insurance policy or under a valid and enforceable
indemnity clause, bylaw or agreement, except in respect of any excess beyond payment under such insurance, clause, bylaw or agreement; 
  

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 (e) if indemnification is not lawful (and, in this respect, both the Corporation
and Agent have been advised that the Securities and Exchange Commission believes that indemnification for liabilities arising under the federal securities laws is against public policy and is, therefore, unenforceable and that claims for
indemnification should be submitted to appropriate courts for adjudication); or 
 (f) in connection with any
proceeding (or part thereof) initiated by Agent, or any proceeding by Agent against the Corporation or its directors, officers, employees or other agents, unless (i) such indemnification is expressly required to be made by law, (ii) the
proceeding was authorized by the board of directors of the Corporation, (iii) such indemnification is provided by the Corporation, in its sole discretion, pursuant to the powers vested in the Corporation under the DGCL, or (iv) the
proceeding is initiated pursuant to Section 11 hereof. 
 5. Continuation of Indemnity. All agreements and obligations of the
Corporation contained herein shall continue during the period Agent is a director, officer, employee or other agent of the Corporation (or is or was serving at the request of the Corporation as a director, officer, employee or other agent of another
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise) and shall continue thereafter so long as Agent shall be subject to any possible claim or threatened, pending or completed action, suit or proceeding, whether
civil, criminal, arbitrational, administrative or investigative, by reason of the fact that Agent was serving in the capacity referred to herein. 
 6. Partial Indemnification. Agent shall be entitled under this Agreement to indemnification by the Corporation for a portion of the expenses (including attorneys’ fees), witness fees, damages, judgments, fines and amounts paid
in settlement and any other amounts that Agent becomes legally obligated to pay in connection with any action, suit or proceeding referred to in Section 3 hereof even if not entitled hereunder to indemnification for the total amount thereof,
and the Corporation shall indemnify Agent for the portion thereof to which Agent is entitled. 
 7. Notification and Defense of Claim.
As soon as practicable, and in any event, not later than thirty (30) days after Agent becomes aware, by written or other overt communication, of any pending or threatened litigation, claim or assessment, Agent will, if a claim in respect
thereof is to be made against the Corporation under this Agreement, notify the Corporation of such pending or threatened litigation, claim or assessment; but the omission so to notify the Corporation will not relieve it from any liability which it
may have to Agent otherwise than under this Agreement. With respect to any such pending or threatened litigation, claim or assessment as to which Agent notifies the Corporation of the commencement thereof: 
 (a) the Corporation will be entitled to participate therein at its own expense; 
 (b) except as otherwise provided below, the Corporation may, at its option and jointly with any other indemnifying party similarly
notified and electing to assume such defense, assume the defense thereof, with counsel reasonably satisfactory to Agent. After notice from the Corporation to Agent of its election to assume the defense thereof, the Corporation will not be liable to
Agent under this Agreement for any legal or other expenses subsequently incurred by Agent in connection with the defense thereof except for reasonable costs of investigation or otherwise as provided below. Agent shall have the right to employ
separate counsel in such action, suit or proceeding but the fees and expenses of such counsel incurred after notice from the Corporation of its assumption of the defense thereof shall be at the expense of Agent unless (i) the employment of
counsel by Agent has been authorized by the Corporation, (ii) Agent shall have reasonably 

  

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concluded, and so notified the Corporation, that there is an actual conflict of interest between the Corporation and Agent in the conduct of the defense of
such action, or (iii) the Corporation shall not in fact have employed counsel to assume the defense of Agent in connection with such action, in any of such cases the fees and expenses of Agent’s separate counsel shall be at the expense of
the Corporation. The Corporation shall not be entitled to assume the defense of any action, suit or proceeding brought by or on behalf of the Corporation or as to which Agent shall have made the conclusion provided for in clause (ii) above; and

 (c) the Corporation shall not be liable to indemnify Agent under this Agreement for any amounts paid in settlement
of any action or claim effected without its written consent, which shall not be unreasonably withheld or delayed. The Corporation shall be permitted to settle any action or claim except that it shall not settle any action or claim in any manner
which would impose any penalty or limitation on Agent without Agent’s written consent, which may be given or withheld in Agent’s sole discretion. 
 8. Expenses. The Corporation shall advance, prior to the final disposition of any proceeding, promptly following request therefor, all expenses incurred by Agent in connection with such proceeding upon the
Corporation’s receipt of an undertaking by or on behalf of Agent to repay said amounts if it shall be determined ultimately that Agent is not entitled to be indemnified under the provisions of this Agreement, the Charter, the Bylaws, the DGCL
or otherwise. Such undertaking shall be accepted by the Corporation without regard to the financial ability of Agent to make such repayment. Without limiting the foregoing, if any action, suit or proceeding is disposed of on the merits or otherwise
(including a disposition without prejudice), without (i) the final disposition being adverse to Agent, (ii) a final adjudication that Agent was liable to the Corporation, (iii) a plea of guilty (iv) a final adjudication that
Agent did not act in good faith, and in a manner he reasonably believed to be in or not opposed to the best interests of the Corporation, and (v) with respect to any criminal proceeding, a final adjudication that Agent had reasonable cause to
believe his conduct was unlawful, Agent shall be considered for the purposes hereof to have been wholly successful with respect thereto. 
 9. Information Sharing. To the extent that the Corporation receives a request or requests from a governmental third party or other licensing or regulating organization (the “Requesting Agency”), whether formal
or informal, to produce documentation or other information concerning an investigation, whether formal or informal, being conducted by the Requesting Agency, and such investigation is reasonably likely to include review of any actions or failures to
act by Agent, the Corporation shall promptly give notice to Agent of said request or requests and any subsequent request. In addition, the Corporation shall provide Agent with a copy of any and all information or documentation that the Corporation
shall provide to the Requesting Agency. 
 10. No Imputation. The knowledge and/or actions, or failure to act, of any director,
officer, agent or employee of the Corporation or the Corporation itself shall not be imputed to Agent for purposes of determining any rights under this Agreement. 
 11. Enforcement. Any right to indemnification or advances granted by this Agreement to Agent shall be enforceable by or on behalf of Agent in any court of competent jurisdiction if (i) the claim for
indemnification or advances is denied, in whole or in part, or (ii) no disposition of such claim is made within sixty (60) days of request therefor. Agent, in such enforcement action, if successful in whole or in part, shall be entitled to
be paid also the expense of prosecuting his claim. It shall be a defense to any action for which a claim for indemnification is made under Section 3 hereof (other than an action brought to enforce a claim for advance or reimbursement of
expenses 

  

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under this Agreement, provided that the required undertaking has been tendered to the Corporation) that Agent is not entitled to indemnification
because of the limitations set forth in Section 4 hereof. Neither the failure of the Corporation (including its board of directors or its stockholders) to have made a determination prior to the commencement of such enforcement action that
indemnification of Agent is proper in the circumstances, nor an actual determination by the Corporation (including its board of directors or its stockholders) that such indemnification is improper shall be a defense to the action or create a
presumption that Agent is not entitled to indemnification under this Agreement or otherwise. 
 12. Subrogation. In the event of
payment under this Agreement, the Corporation shall be subrogated to the extent of such payment to all of the rights of recovery of Agent, who shall execute all documents required and shall do all acts that may be necessary to secure such rights and
to enable the Corporation effectively to bring suit to enforce such rights. 
 13. Non-Exclusivity of Rights. The rights conferred on
Agent by this Agreement shall not be exclusive of any other right which Agent may have or hereafter acquire under any statute, provision of the Charter or Bylaws, agreement, vote of stockholders or directors, or otherwise, both as to action in his
official capacity and as to action in another capacity while holding office. 
 14. Survival of Rights. 
 (a) The rights conferred on Agent by this Agreement shall continue after Agent has ceased to be a director, officer, employee or
other agent of the Corporation or to serve at the request of the Corporation as a director, officer, employee or other agent of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, and shall inure to the
benefit of Agent’s heirs, executors and administrators. 
 (b) The Corporation shall require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Corporation, expressly to assume and agree to perform this Agreement in the same manner and to the same extent
that the Corporation would be required to perform if no such succession had taken place. 
 15. Separability. Each of the provisions
of this Agreement is a separate and distinct agreement and independent of the others, so that if any provision hereof shall be held to be invalid or unenforceable for any reason, such invalidity or unenforceability shall not affect the validity or
enforceability of the other provisions hereof. Furthermore, if this Agreement shall be invalidated in its entirety on any ground, then the Corporation shall nevertheless indemnify Agent to the fullest extent provided by the Charter, the Bylaws, the
DGCL or any other applicable law. 
 16. Governing Law. This Agreement shall be governed by, and construed and enforced in accordance
with, the laws of the State of Delaware, without regard to its principles of conflicts of laws. The Corporation and Agent hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this
Agreement may be brought in the Delaware Court of Chancery, (ii) consent to submit to the jurisdiction of the Delaware Court of Chancery for purposes of any action or proceeding arising out of or in connection with this Agreement,
(iii) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court of Chancery, and (iv) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware
Court of Chancery has been brought in an improper or inconvenient forum. 
  

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 17. Amendment and Termination. No amendment, modification, termination or cancellation of this
Agreement shall be effective unless in writing signed by both parties hereto. 
 18. Identical Counterparts. This Agreement may be
executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute but one and the same Agreement. Only one such counterpart need be produced to evidence the existence of
this Agreement. 
 19. Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be
deemed to have been duly given (i) upon delivery if delivered by hand to the party to whom such communication was directed or (ii) upon the third business day after the date on which such communication was mailed if mailed by certified or
registered mail with postage prepaid: 
 (a) If to Agent, at the address indicated on the signature page hereof.

 (b) If to the Corporation, to: 
  

											
	Amedica Corporation	  		  		  		  	
	615 Arapeen Drive	  		  		  		  	
	Suite 302	  		  		  		  	
	Salt Lake City, UT 84108	  		  		  		  	
	Attention:    	  	Chief Executive Officer	  		  		  		  	
		  	Chief Financial Officer	  		  		  		  	

 or to such other address as may have been furnished to Agent by the Corporation. 
 20. Headings. The headings of the sections of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this
Agreement or to affect the construction hereof. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Indemnification Agreement on and as of
the day and year first above written. 
  

			
	AMEDICA CORPORATION
		
	By:	 	  
	Name:	 	
	Title:	 	
	
	AGENT
	
	  
	[Insert Name of Agent]
	
	Address:
	
	  
	  

  

 7Form of Agreement for Stock Option Grants

 Exhibit 10.32 
 ARTHUR J. GALLAGHER & CO. 
 1988 NONQUALIFIED STOCK OPTION AGREEMENT 
 (2007 GRANT) 
 THIS AGREEMENT
(“Agreement”), dated May 15, 2007 (the “Effective Date”), between ARTHUR J. GALLAGHER & CO., a Delaware corporation (the “Corporation”), and
                                        ,
an employee of the Company (the “Employee”). For purposes of this Agreement, the term “Company” shall mean the Corporation and any corporation 50% or more of the stock of which is beneficially owned directly by the Corporation or
indirectly through another corporation or corporations in which the Corporation is the beneficial owner of 50% or more of the stock. 
 WITNESSETH 
 WHEREAS, the Company on May 10, 1988 adopted the “Arthur J. Gallagher & Co. 1988
Nonqualified Stock Option Plan” (herein, as the same may be amended from time to time, called the “Plan”); and 
 WHEREAS, the
purpose of the Plan is to attract, retain and reward employees, to increase stock ownership and identification with the Company’s interests, and to provide incentive for remaining with and enhancing the long-term value of the Company;

 NOW, THEREFORE, in consideration of the premises and the promises herein contained, the parties hereby agree as follows: 
 1. As a matter of separate inducement and agreement in connection with his employment by the Company, the Employee is hereby granted the option to
purchase from the Company all or part of              shares of Common Stock (par value $1.00 per share) of the Company at $28.65 per share, during the period and upon the terms and
conditions stated herein and in the Plan as amended. The Employee understands and agrees that determination of the personal tax consequences of any exercise of this option or subsequent disposition of shares so acquired is entirely and solely the
responsibility of the Employee. 
 2. Subject to the provisions of the Plan and this Agreement, shares subject to this stock option shall be
purchasable at any time during the term of the option after the Effective Date of this Agreement. This option shall terminate entirely on the earliest of the following: 
 (a) May 15, 2017 (not more than 10 years from date of grant); 
 (b) upon the severance of the employment
relationship between the Company and the Employee for any reason other than by death or disability of the Employee as such conditions are defined in the Plan. 

 3. Subject to the provisions of Section 2 hereof, this option may be exercised at any time as to all
or any of the shares then purchasable hereunder (but not for less than the smaller of (a) 100 shares of Common Stock, or (b) 10% of the shares of Common Stock subject to the option, unless a purchase of fewer shares would entirely exhaust
the option) and provided further that the optionee’s cumulative purchases of Common Stock subject to this option may not exceed the following: 
  

			
	 Years Following Date of Grant
	  	 Percentage of
 Common Stock
 Subject to Option

	 Remainder of 2007 through May 14, 2008
	  	0
	 As of May 15, 2008
	  	20
	 As of May 15, 2009
	  	40
	 As of May 15, 2010
	  	60
	 As of May 15, 2011
	  	80
	 As of May 15, 2012 through expiration
	  	100

 An option shall be exercised by giving notice to the Company, on a form which the Secretary of the Company will
supply upon request, specifying the number of whole shares to be purchased and accompanied by payment of the purchase price therefore. Such exercise shall be effective upon receipt by the Secretary of the Company, at the main office of the Company,
of such written notice and payment. If the Employee’s employment with the Company is terminated due to death or disability (as defined in the Plan) and, to the extent Section 5 is applicable, the Employee has neither engaged in nor
expressed an intention to engage in any of the activities described in Section 5(a), then the restrictions contained in the above vesting schedule are removed as of the date employment is terminated for those reasons and the Employee may
thereafter exercise any portion or all of the shares subject to grant, subject only to the fact that the entire grant and all rights to exercise all or any portion thereunder shall expire on May 15, 2017. If the Employee’s employment with
the Company is terminated due to retirement (s defined in the Plan) and, to the extent Section 5 is applicable, the Employee has neither engaged in nor expressed an intention to engage in any of the activities described in Section 5(a),
then the Employee may thereafter exercise any portion or all of the shares subject to grant, but only to the extent the option was exercisable immediately prior to the date employment is terminated for such reason, subject only to the fact that the
entire grant and all rights to exercise all or any portion thereunder shall expire on May 15, 2017. Furthermore, in addition, an Employee’s ability to exercise an option may be limited by the Company’s policy regarding insider
trading. 
 4.(a) In the event the shares issuable on an exercise of this option have not been registered under the Securities Act of 1933,
as amended (the “Act”), or if the effectiveness of any such registration shall lapse, any certificates evidencing shares of the Common Stock of the Company issued pursuant to such exercise of option or right hereunder shall bear upon its
face the following legend or any other legend which counsel for the Company considers necessary or advisable to comply with the Act or any applicable state securities laws: 
  

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 “THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933 OR UNDER THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR TRANSFERRED EXCEPT UPON SUCH REGISTRATION OR UPON THE RECEIPT BY THE CORPORATION OF ANY OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE CORPORATION THAT
REGISTRATION IS NOT REQUIRED FOR SUCH SALE OR TRANSFER.” 
 (b) The Employee agrees and represents that the shares of Common Stock
acquired by him upon exercise will be acquired for investment and not with a view to the sale or distribution thereof. The Employee further agrees that he will not sell or transfer any shares except in strict compliance with applicable securities
laws. The Company may, but shall in no event be obligated to, register any securities issued in connection with this Agreement pursuant to the Act (as now in effect or as hereafter amended); and in the event any shares are so registered the Company
may remove any legend on certificates representing such shares. 
 5.(a)(i) If, at any time within (A) the ten year term of this grant;
(B) two years after the termination of employment; or (C) two years after the Employee exercises any portion of this grant, whichever is the latest, the Employee, in the determination of the management of the Company, engages in any
activity in competition with any activity of the Company, or inimical, contrary or harmful to the interests of the Company, including, but not limited to: (1) conduct related to his employment for which either criminal or civil penalties
against him may be sought, (2) violation of Company policies, including, without limitation, the Company’s Insider Trading Policy, (3) directly or indirectly, soliciting, placing, accepting, aiding, counseling or consulting in the
renewal, discontinuance or replacement of any insurance or reinsurance by, or handling self-insurance programs, insurance claims or other insurance administrative functions (“insurance services”) for, any existing Company account or any
actively solicited prospective account of the Company for which he performed any of the foregoing functions during the two-year period immediately preceding such termination or providing any employee benefit brokerage, consulting, or administration
services, in the areas of group insurance, defined benefit and defined contribution pension plans, individual life, disability and capital accumulation products, and all other employee benefit areas (“benefit services”) the Company is
involved with, for any existing Company account or any actively solicited prospective account of the Company for which he performed any of the foregoing functions during the two-year period immediately preceding such termination or, if the Employee
has not terminated employment, the date of the prohibited activity (the term Company account as used in this paragraph shall be construed broadly to include all users of insurance services or benefit services including commercial and individual
consumers, risk managers, carriers, agents and other insurance intermediaries), (4) the rendering of services for any organization which is competitive with the Company, (5) employing or recruiting any current or former employee of the
Company, (6) disclosing or misusing any confidential information or material concerning the Company, or (7) participating in a hostile takeover attempt of the Company, then this option and all 

  

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other stock options held by the Employee shall terminate effective the date on which the Employee enters into such activity, unless terminated sooner by
operation of another term or condition of this grant or the Plan, and any option gain realized by the Employee from exercising all or a portion of this or any other option shall be paid by the Employee to the Company. Such option gain shall be
calculated based on the difference between exercise price per share of the option and the closing price per share of the Company’s common stock as quoted on the New York Stock Exchange on the date of exercise, multiplied by the number of shares
exercised on such date, plus interest measured from the first date the Employee engaged in any of the prohibited activities set forth above at the highest rate allowable under Delaware law. 
 (ii) The Employee acknowledges that Employee’s engaging in activities and behavior in violation of Section 5(a)(i) above will result in a loss to the Company
which cannot reasonably or adequately be compensated in damages in an action at law, that a breach of this Agreement will result in irreparable and continuing harm to the Company and that therefore, in addition to and cumulative with any other
remedy which the Company may have at law or in equity, the Company shall be entitled to injunctive relief for a breach of this Agreement by the Employee. The Employee acknowledges and agrees that the requirement in Section 5(a)(i) above that
Employee disgorge and pay over to the Company any option gain realized by the Employee is not a provision for liquidated damages. The Employee agrees to pay any and all costs and expenses, including reasonable attorneys’ fees, incurred by the
Company in enforcing any breach of any covenant in this Agreement. 
 (b) By accepting this grant, the Employee consents to deductions from
any amounts the Company owes the Employee from time to time (including amounts owed as wages or other compensation, fringe benefits or vacation pay, as well as any other amounts owed to the Employee by the Company) to the extent of the amounts the
Employee owes the Company under Section 5(a) above. Whether or not the Company elects to make any set-off in whole or in part, if the Company does not recover by means of set-off the full amount owed, calculated as set forth above, the Employee
agrees to pay immediately the unpaid balance to the Company. 
 6. Notwithstanding anything contained herein to the contrary, the obligations
of the Employee contained in Section 5 shall become null and void and have no further effect immediately upon a Hostile Change in Control of the Corporation as defined herein. The Company shall send written notice to the Employee within ten
(10) days of a Hostile Change in Control of the Corporation, notifying the Employee that such event has taken place. Failure of the Company to send such notice shall not preclude the release of the Employee from the obligations contained in
Section 5. For the purposes of this Section 6, the following definitions apply: 
 (a) The term “Hostile Change in
Control” means a transaction, event or election constituting a Change in Control, which was not approved by, or, in an election, the directors elected were not nominated by, at least two-thirds of the members of the Board of Directors of
the Corporation in office immediately prior to the Change in Control who have not died or become permanently disabled. 
  

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 (b) The term “Change in Control” of the Corporation means and includes each and all of
the following occurrences: 
 1. A Business Combination, unless: 
 (a) the Business Combination is approved or authorized by the affirmative vote of the holders of not less than 80% of the outstanding shares of voting
stock of the Corporation and the affirmative vote of the holders of not less than 67% of the outstanding shares of the voting stock held by shareholders other than Related Persons; or 
 (b) the Continuing Directors of the Corporation by a two-thirds vote (i) have expressly approved in advance the acquisition of outstanding shares of
voting stock of the corporation that caused the Related Person to become a Related Person, or (ii) have approved the Business Combination prior to the Related Person involved in the Business Combination having become a Related Person; or

 (c) the Business Combination is solely between this corporation and another corporation, 50% or more of the voting stock of which is owned
by the Corporation and none of which is owned by the Related Person; or 
 (d) all of the following conditions are satisfied: 
 (i) The cash or fair market value of the property, securities or “other consideration to be received” per share by holders of common stock in
the Corporation in the Business Combination is not less than the higher of: 
 (A) the highest per share price (including brokerage
commissions, transfer taxes and soliciting dealers’ fees) paid by the Related Person in acquiring any of its holdings of the Corporation’s common stock, or 
 (B) an amount that bears that same percentage relationship to the market price of the Corporation’s common stock immediately prior to the announcement of such Business Combination as the highest per share price
determined in (A) above bears to the market price of the Corporation’s common stock immediately prior to the commencement of the acquisition of the Corporation’s voting stock that caused such Related Person to become a Related Person,
or 
  

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 (C) an amount calculated by multiplying the earnings per share of the Corporation’s common stock
for the four fiscal quarters immediately preceding the record date for determination of stockholders entitled to vote on such Business Combination by the price/earnings multiple of the Related Person as of the record date as customarily computed and
reported in the financial press. 
 Appropriate adjustments shall be made with respect to (A), (B) and (C) above for
recapitalizations and for stock splits, stock dividends, and like distributions; and 
 (ii) A timely mailing shall have been made to the
stockholders of the Corporation containing in a prominent place (x) any recommendations as to the advisability (or inadvisability) of the Business Combination that the Continuing Directors or Outside Directors may choose to state, if there are
at the time any such directors, and (y) the opinion of a reputable nationally recognized investment banking or financial services firm as to the fairness from the financial point of view of the terms of the Business Combination to the
stockholders of the Corporation other than the Related Person (such firm to be engaged solely on behalf of such other stockholders, to be paid a reasonable fee for its services by the Corporation upon receipt of such opinion, to be a firm that has
not previously been significantly associated with the Related Person and, if there are at the time any such directors, to be selected by a majority of the Continuing Directors and Outside Directors). 
 2. The acquisition of outstanding shares of the Corporation’s voting stock that causes an individual, a corporation, partnership or other person or
entity to become a Related Person. 
 3. Individuals who at the beginning of any period of three consecutive years constitute the entire
Board of Directors of the Corporation shall for any reason other than death or permanent disability during such period cease to constitute a majority thereof. 
 4. A change in control of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Securities Act of 1934, as amended. 
  

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 (c) The term “Business Combination” shall mean (i) any merger or consolidation of
the Corporation or a subsidiary of the Corporation with or into a Related Person, (ii) any sale, lease, exchange, transfer or other disposition, including without limitation a mortgage or any other security device, of all or any Substantial
Part of the assets either of the Corporation (including without limitation any voting securities of a subsidiary) or of a subsidiary, to a Related Person, (iii) any merger or consolidation of a Related Person with or into the Corporation or a
subsidiary of the Corporation, (iv) any sale, lease, exchange, transfer or other disposition of all or any Substantial Part of the assets of a Related Person to the Corporation or a subsidiary of the Corporation, (v) the issuance of any
securities of the Corporation or a subsidiary of the Corporation to a Related person, (vi) the acquisition by the Corporation or a subsidiary of the Corporation of any securities issued by a Related Person, (vii) any reclassification of
securities, recapitalization or other transaction designed to decrease the number of holders of the Corporation’s voting securities remaining, if there is a Related Person, and (viii) any agreement, contract or other arrangement providing
for any of the transactions described in this definition of Business Combination. 
 (d) The term “Related Person” shall mean
and include any individual, corporation, partnership or other person or entity which, together with their “Affiliates” and “Associates” (as defined as of November 1, 1983, in Rule 12b-2 under the Securities Exchange Act of
1934), “Beneficially Owns” (as defined as of November 1, 1983, in Rule 13d-3 under the Securities Exchange Act of 1934) in the aggregate 20% or more of the outstanding shares of the voting stock of the Corporation, and any Affiliate
or Associate of any such individual, corporation, partnership or other person or entity; provided that Related Person shall not include any person who beneficially owned 20% or more of the outstanding shares of the voting stock of the Corporation on
November 1, 1983. Without limitation, any shares of voting stock of the Corporation that any Related Person has the right to acquire pursuant to any agreement, or upon exercise of conversion rights, warrants or options, or otherwise, shall be
deemed beneficially owned by the Related Person. 
 (e) The term “Substantial Part” shall mean more than 30% of the fair
market value of the total assets of the corporation in question, as of the end of its most recent fiscal year ending prior to the time the determination is being made. 
 (f) The term “other consideration to be received” shall include, without limitation, capital stock of the Corporation retained by its existing public stockholders in the event of a Business
Combination in which the Corporation is the surviving corporation. 
 (g) The term “Continuing Director” shall mean a
director who was a member of the board of directors of the Corporation immediately prior to the time that the Related Person involved in a Business Combination became a Related Person, and the term “Outside Director” shall mean a
director who is not (a) an officer or 

  

 7 

 
employee of the Corporation or any relative of an officer or employee or (b) a Related Person or an officer, director, employee, Associate or Affiliate
of a Related Person, or a relative of any of the foregoing. 
 7. All determinations and interpretations made by the Compensation Committee
with regard to any question arising hereunder or under the Plan shall be binding and conclusive on the Employee and on his legal representatives and beneficiaries. 
 8. The option granted hereby is subject to: 
 (a) all the terms and conditions of the Plan as amended (which
is hereby incorporated by reference with the same effect as if fully recited herein) as now or hereafter in effect; and 
 (b) all the terms
and conditions of this Agreement as now in effect or as hereafter modified at the discretion of the Company to conform with the Plan as amended from time to time. 
 The Employee acknowledges receipt of a copy of the Plan and represents and warrants that he has read the Plan and agrees that this option shall be subject to all of the terms and conditions of the Plan. 
 9.(a) The Employee shall have none of the rights of a shareholder with respect to shares subject to this option until such shares shall be issued on
exercise of the option; and, except as otherwise provided in Section 9(b) hereof, no adjustment for dividends, or otherwise, shall be made if the record date thereof is prior to the date of issuance of such shares. 
 (b) In the event that the outstanding Common Stock of the Company is changed by reason of a stock dividend, stock split, recapitalization, merger,
consolidation, or a combination or exchange of shares, the number of shares subject to this option shall be adjusted so that the Employee shall receive upon exercise of the option in whole or in part thereafter that number of shares of the class of
the capital stock of the Company or its successor that the Employee would have been entitled to receive had he exercised the option immediately prior to the record date for such event. In the event of such an adjustment, the per share option price
shall be adjusted accordingly, so that there will be no change in the aggregate purchase price payable upon exercise of the option. 
 10. By
accepting this option, Employee voluntarily acknowledges and consents to the collection, use, processing and transfer of personal data as described in this paragraph. Employee is not obliged to consent to such collection, use, processing and
transfer of personal data. However, failure to provide the consent may affect Employee’s ability to participate in the Plan. The Company, holds certain personal information about the Employee, that may include his/her name, home address and
telephone number, date of birth, social security number or other employee identification number, salary grade, hire data, salary, nationality, job title, any shares of stock held in the Company, or details of all stock options, restricted stock
awards or any other entitlement to shares of stock awarded, canceled, purchased, vested, or unvested, for the purpose of managing and administering 

  

 8 

 
the Plan (“Data”). Company will transfer Data amongst themselves as necessary for the purpose of implementation, administration and management of
Employee’s participation in the Plan, and the Company may further transfer Data to any third parties assisting Company in the implementation, administration and management of the Plan. These recipients may be located throughout the world,
including the United States. Employee authorizes such recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing Employee’s participation in the
Plan, including any requisite transfer of such Data as may be required for the administration of the Plan and/or the subsequent holding of shares of stock on the Employee’s behalf to a broker or other third party with whom the Employee may
elect to deposit any shares of stock acquired pursuant to the Plan. Employee may, at any time, review Data, require any necessary amendments to it or withdraw the consents herein in writing by contacting Company; however, withdrawing consent may
affect the Employee’s ability to participate in the Plan. 
 11. This Agreement shall not impose upon the Company any obligation to
continue to employ the Employee and the Company’s right to terminate him shall not be diminished or affected by reasons of the option granted him under this Agreement. 
 12. This Agreement shall bind and inure to the benefit of the successors and assigns of the Company. The rights of the Employee under this Agreement
shall not be transferable other than to the Employee’s executors, administrators, legatees and heirs to the extent permitted by the Plan as amended. During the lifetime of the Employee, this option shall be exercisable only by him. Whenever
required by the context hereof, the singular shall include the plural, and vice versa; the masculine gender shall include the feminine and neuter genders; and the neuter gender shall include the masculine and feminine genders. 
 13. This Agreement has been executed in two counterparts, each of which shall be deemed an original and both of which constitute one and the same
document. 
  

 9 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above
written. 
  

			
	ARTHUR J. GALLAGHER & CO.
		
	By:	 	  

	
	EMPLOYEE
	
	  

  

 10

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