Document:

Exhibit 10.44

 

Exhibit 10.44

TRIAD GUARANTY INC.

EXECUTIVE STOCK OPTION AGREEMENT

     This Stock Option Agreement (the “Agreement”), dated ____________, is entered into between
Triad Guaranty Inc., a Delaware corporation (the “Company”), and ____________,
(the “Optionee”).

     WHEREAS, the Company, pursuant to its 2006 Long-Term Stock Incentive Plan (the “Plan”),
desires to grant an Option (as defined in the Plan) to the Optionee, and the Optionee desires to
accept the Option, on the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth, the parties
hereto agree as follows:

     1. Grant of Option. The Company hereby grants to the Optionee an option to purchase from the
Company all or part of
____________ shares of Common Stock (par value $0.01 per share) of the
Company at $______   per share (the “Option Price”), during the period and upon the terms and
conditions stated herein and in the Plan.

     2. Termination of Option. This Option shall terminate entirely on the earliest of:

     (a) ____________;

     (b) three (3) years following the termination of Optionee’s employment with the Company
and all of its subsidiaries by reason of Optionee’s retirement after age ___;

     (c) three (3) years following the termination of Optionee’s employment with the Company
and all of its subsidiaries by reason of Optionee’s death or disability; or

     (d) three (3) months following the termination of Optionee’s employment with the
Company and all of its subsidiaries for any reason other than (b) or (c) above.

     Optionee
may be released from the effects of Section 2 (b), (c) or (d) if the
Committee (as defined in the Plan) determines in its sole discretion
that such action is in  the best interests of the Company and its
stockholders.

     3. Vesting. 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 100
shares unless such purchase would entirely exhaust the option) and provided further that the
Optionee’s right to purchase Common Stock subject to this option shall vest as follows:

	 	 	 
	Date	 	Percentage
of Common
Stock
Subject to Option
	 

	On ____________
	 	___%
	On ____________
	 	___%
	On ____________
	 	100%

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     The Optionee’s right to exercise this Option will immediately accrue with respect to all
of the shares of Common Stock subject thereto upon a Termination or Constructive
Termination occurring within twelve (12) months following a Change in Control of the Company. For
purposes of this Agreement, the following terms shall have the meanings set forth below:

	 	(a)	 	“Termination” shall mean termination of the Optionee’s employment other than
for “misconduct” (as defined in the Plan) by the Company (or the successor to the
Company).
	 
	 	(b)	 	“Constructive Termination” shall mean the occurrence of any of the following
without the Optionee’s consent:
	 
	 	 	 	(i) assignment to Optionee of duties that are materially inconsistent with his/her
position with the Company at the time of announcement of the Change in Control;
	 
	 	 	 	(ii) a material reduction in the non-variable compensation (i.e. the aggregate of
all components of compensation other than bonus, equity awards and such other
components which by their nature are expected to vary from year to year) of the
Optionee from his/her non-variable compensation at the time of the announcement of
the Change in Control; or
	 
	 	 	 	(iii) requirement that the Optionee relocate his/her principal business office more
than fifty (50) miles from the Optionee’s principal business office at the time of
the announcement of the Change in Control.
	 
	 	(c)	 	“Change in Control” shall mean the occurrence of any of the following events:
	 
	 	 	 	(a) any person or persons acting as a group, as that term is defined in Rule 13d-3
under the Securities Exchange Act of 1934 (other than Collateral Holdings, Ltd., an
Alabama limited partnership, and any of its affiliates) shall become the beneficial
owner of securities of the Company representing more than fifty percent (50%) of the
combined voting power of the Company’s then outstanding securities; or
	 
	 	 	 	(b) individuals who constitute the board of directors of the Company as of the date
hereof (the “Incumbent Board”) cease for any reason to constitute at least a
majority thereof, provided that any person becoming a director subsequent to the
date hereof whose election or nomination for election was approved by a vote of at
least three-quarters of the directors comprising the Incumbent Board (either by a
specific vote or by approval of the proxy statement of the Company in which such
person is named as a nominee for director, without objection to such nomination)
shall be, for purposes of this clause (ii) considered as though such person were a
member of the Incumbent Board; or
	 
	 	 	 	(c) any consolidation or merger to which the Company is a party, if following such
consolidation or merger, stockholders of the Company immediately prior to

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	 	 	 	such consolidation or merger shall not beneficially own securities representing more
than fifty percent (50%) of the combined voting power of the outstanding voting
securities of the surviving or continuing corporation; or
	 
	 	 	 	(d) any sale, lease, exchange or other transfer (in one transaction or in a series
of related transactions) of all, or substantially all, of the assets of the Company,
other than to an entity (or entities) of which the Company or the stockholders of
the Company immediately prior to such transaction beneficially own securities
representing more than fifty percent (50%) of the combined voting power of the
outstanding voting securities.

     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. Payment may be made by check payable to
the Company. The Committee (as defined in the Plan) may, in its discretion, permit the Optionee to
make payment in shares of Common Stock, valued at the Fair Market Value thereof (as defined in the
Plan), as partial or full payment therefor. Shares of Common Stock that may be used for the
payment may include shares which were received by the Optionee upon the exercise of one or more
options and shares which the Optionee directs the Company to withhold, for the purpose of paying
the Option Price (and any applicable withholding taxes), from shares which the Optionee would have
received upon the exercise of one or more options. 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.

     4. Transferability. Except as permitted by the Plan, the Option may not be sold, transferred,
pledged, assigned or otherwise alienated at any time, and any attempt to sell, transfer, pledge,
assign or otherwise alienate the Option need not be recognized by the Company.

     5. Committee Interpretations Binding. All determinations and interpretations made by the
Committee with regard to any question arising hereunder or under the Plan shall be binding and
conclusive on Optionee and on his legal representatives and beneficiaries.

6. No Rights as Stockholder.

     (a) Optionee shall have none of the rights of a stockholder with respect to shares
subject to the Option until such shares shall be issued on exercise of the Option[; and,
except as otherwise provided in Section 6(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 Share Change or Organic Change (each as defined in the Plan), the number of shares
subject to the Option shall be adjusted so that Optionee 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 Optionee 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

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     adjusted accordingly, so that there will be no change in the aggregate purchase price
payable upon exercise of the Option].

     7. Controlling Documents. The Option granted hereby is subject to:

     (a) All terms and conditions of the Plan (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 Committee to conform with the Plan as amended from time to
time.

     The Optionee acknowledges receipt of a copy of the Plan, represents and warrants that he has
read the Plan and agrees that this Agreement shall be subject to all of the terms and conditions of
the Plan.

     8. No Guarantee of Employment. This Agreement shall not interfere with or limit in any way
the right of the Company to terminate the Optionee’s employment at any time, or confer upon the
Optionee any right to continue in the employment of the Company.

     9. Governing Law. This Agreement shall be governed by the law of the State of Delaware and
construed in accordance therewith.

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

	 	 	 	 	 
	OPTIONEE:

	 	COMPANY:
	 
	 	 	 	 
	 

	 	TRIAD GUARANTY INC.
	 
	 	 	 	 
	 	 
	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Its:	 	 
	 

	 	 	 	 

4Exhibit 10.45

 

Exhibit 10.45

TRIAD GUARANTY INC.

OUTSIDE DIRECTOR RESTRICTED STOCK AGREEMENT

     This Restricted Stock Agreement (the “Agreement”), dated
____________ is entered into between
Triad Guaranty Inc., a Delaware corporation (the
“Company”), and ____________ (the “Participant”).

     WHEREAS, the Company, pursuant to its 2006 Long-Term Stock Incentive Plan (the “Plan”),
desires to grant Restricted Stock (as defined in the Plan) to the Participant, and the Participant
desires to accept the Restricted Stock, on the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth, the parties
hereto agree as follows:

     1. Grant of Restricted Stock. The Company hereby grants to the Participant, on the terms and
conditions set forth herein,
____________ shares of Restricted Stock (the “Shares”).

     2. Vesting. The Shares granted hereunder will vest according to the following schedule:

	 	 	 
	Date	 	Vested Percentage
	 	 	 
	____________
	 	___%
	____________
	 	___%
	____________
	 	100%

Notwithstanding the vesting schedule set forth above, the Shares granted hereunder shall fully vest
in the event of a “Change in Control” of the Company. For purposes of this Agreement, “Change in
Control” shall mean the occurrence of any of the following events:

     (i) any person or persons acting as a group, as that term is defined in Rule 13d-3
under the Securities Exchange Act of 1934 (other than Collateral Holdings, Ltd., an Alabama
limited partnership, and any of its affiliates) shall become the beneficial owner of securities of
the Company representing more than fifty percent (50%) of the combined voting power of the
Company’s then outstanding securities; or

     (ii) individuals who constitute the board of directors of the Company as of the date hereof
(the “Incumbent Board”) cease for any reason to constitute at least a majority thereof, provided
that any person becoming a director subsequent to the date hereof whose election or nomination for
election was approved by a vote of at least three-quarters of the directors comprising the
Incumbent Board (either by a specific vote or by approval of the proxy statement of the Company in
which such person is named as a nominee for director, without objection to such nomination) shall
be, for purposes of this clause (ii) considered as though such person were a member of the
Incumbent Board; or

     (iii) any consolidation or merger to which the Company is a party, if following such
consolidation or merger, stockholders of the Company immediately prior to such consolidation or
merger shall not beneficially own securities representing more than fifty percent (50%) of the
combined voting power of the outstanding voting securities of the surviving or continuing
corporation; or

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     (iv) any sale, lease, exchange or other transfer (in one transaction or in a series of related
transactions) of all, or substantially all, of the assets of the Company, other than to an entity
(or entities) of which the Company or the stockholders of the Company immediately prior to such
transaction beneficially own securities representing more than fifty percent (50%) of the combined
voting power of the outstanding voting securities.

     3. Stock Certificates. Any stock certificate evidencing any Shares shall contain such legends
and stock transfer instructions or limitations as may be determined or authorized by the Committee
in its sole discretion; and the Company may, in its sole discretion, retain custody of any such
certificate throughout the period during which any restrictions are in effect and require that the
Participant tender to the Company a stock power duly executed in blank relating thereto as a
condition to issuing any such certificate.

     4. Transferability. Until Shares have vested in accordance with Section 2 of this Agreement,
no such Shares may be sold, transferred, pledged, assigned or otherwise alienated at any time, and
any attempt to sell, transfer, pledge, assign or otherwise alienate such Shares need not be
recognized by the Company.

     5. Effect of Termination as a Director. In the event of the Participant’s termination as a
director for “Cause,” any Shares which have not vested in accordance with Section 2 of this
Agreement on the date of termination shall be forfeited in full. For the purposes of this
Agreement, “Cause” shall mean:

     (i) a material breach by Participant of his/her duties and obligations to the
Company, including but not limited to gross negligence in the performance of his/her
duties and responsibilities; provided he/she shall be entitled to reasonable notice
of, and if feasible a reasonable opportunity to cure, any such breach;

     (ii) willful misconduct by Participant which may be materially injurious to the
reputation or business of the Company or any of its subsidiaries;

     (iii) any act of fraud, misappropriation or other dishonesty by Participant; or

     (iv) Participant’s conviction of a felony.

     6. Rights as Shareholder. The Participant may exercise full voting and other rights as a
shareholder of the Company with respect to the Shares during the period of restriction. The
Participant shall be entitled to receive all dividends and other distributions paid with respect to
the Shares (subject to applicable withholding taxes), provided that if any such dividends or
distributions are paid in shares of the Company’s common stock, such shares shall be subject to the
same forfeiture restrictions and restrictions on transferability as apply to the Restricted Stock
with respect to which they were paid.

     7. Determinations. All determinations, interpretations, or other actions made or taken by the
Committee (as defined in the Plan) pursuant to the provisions of the Plan shall be final, binding,
and conclusive for all purposes and upon all persons.

     8. Controlling Documents. The Restricted Stock granted hereby is subject to:

     (a) All terms and conditions of the Plan (which is hereby incorporated by reference with the
same effect as if fully recited herein) as now or hereafter in effect; and

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     (b) All the terms and conditions of this Agreement as now in effect or as hereafter modified
at the discretion of the Committee to conform with the Plan as amended from time to time.

     The Participant acknowledges receipt of a copy of the Plan, represents and warrants that
he/she has read the Plan and agrees that this Agreement shall be subject to all of the terms and
conditions of the Plan.

     9. No Guarantee of Employment. This Agreement shall not interfere with or limit in any way the
right of the Company to terminate the Participant’s employment at any time, or confer upon the
Participant any right to continue in the employment of the Company.

     10. Assignment. This Agreement shall bind and inure to the benefit of the successors and
assigns of the Company. The rights of the Participant under this Agreement shall not be
transferable other than to the Participant’s executors, administrators, legatees and heirs to the
extent permitted by the Plan.

     11. Governing Law. This Agreement shall be governed by the law of the State of Delaware and
construed in accordance therewith.

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

	 	 	 	 	 
	PARTICIPANT:

	 	COMPANY:
	 
	 	 	 	 
	 

	 	TRIAD GUARANTY INC.
	 
	 	 	 	 
	 	 
	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

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