Document:

EX-10.40

 Exhibit 10.40 

 
  
 THE HANOVER INSURANCE GROUP, INC. 
 2006 LONG-TERM INCENTIVE PLAN

 RESTRICTED STOCK UNIT AGREEMENT 

 
 This Restricted Stock Unit
Agreement (the “Agreement”) is effective as of <GRANT DATE> (the “Grant Date”) by and between The Hanover Insurance Group, Inc., a Delaware corporation (the “Company”), and <PARTICIPANT
NAME> (the “Participant” or “you”). Capitalized terms used without definition herein shall have the meanings set forth in The Hanover Insurance Group, Inc. 2006 Long-Term Incentive Plan (the
“Plan”). 
 P R E A M B L E 
 WHEREAS, pursuant to the Plan and subject to the terms of this Agreement, the Administrator has agreed to grant to the Participant an Award of restricted stock units (the “RSUs”).

 NOW, THEREFORE, for and in consideration of the foregoing and the mutual covenants and promises hereinafter set forth, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  

	 	1.	RSUs. The Administrator hereby grants to the Participant <NUMBER OF RSUS> RSUs, each representing the right to receive one share of Stock upon and subject
to the restrictions, terms and conditions set forth below. The Stock issued upon vesting of the RSUs, if any, shall be referred to hereinafter as the “Shares”. 

 

	 	2.	Vesting. The RSUs shall vest on the third anniversary of the Grant Date (the “Vesting Date”); provided Participant is continuously an
Employee of the Company or one of its subsidiaries or affiliates (the Company and its subsidiaries and affiliates hereinafter referred to as “THG”) throughout the period from the Grant Date until the Vesting Date.

 As soon as reasonably practicable following vesting of the RSUs, but in no event later than 60 days following
vesting, the Company shall make delivery of the Shares. In the event the Vesting Date falls on a non-business day (weekend or holiday on which banks are not generally open in the Commonwealth of Massachusetts), the Vesting Date shall be the next
following business day. 
  

	 	3.	Termination. Except as provided in Sections 4, 5 and 6, upon the termination of Participant’s Employment with THG for whatever reason, whether with or
without Cause, for good reason or otherwise, any non-vested RSUs shall be automatically cancelled and forfeited and be returned to the Company for no consideration. 

 

	 	4.	Disability. Subject to the remainder of this Section 4, if the Participant is placed in a long term disability status (as such term is defined in the
Company’s Long-Term Disability Program, as in effect at such time)(“LTD Status”), and provided Participant remains in LTD Status through such date, the RSUs shall continue to vest in accordance with this Agreement until the
first anniversary of the date Participant was placed in LTD Status (the “LTD Extension Period”). At the expiration of the LTD Extension Period (i) a pro-rated portion of the RSUs shall automatically vest, and (ii) the
remaining unvested RSUs shall be automatically cancelled and forfeited and be returned to the Company for no consideration. For purposes of this subsection, the pro-ration of the RSUs that vest on the expiration of the LTD Extension Period, shall be
determined by dividing the number of days since the Grant Date by 1,095 and applying this percentage to the RSUs. Any fractional units shall be rounded up such that only whole shares are issued. 

If, prior to the expiration of the LTD Extension Period, Participant is removed from LTD Status and immediately thereafter returns to
active Employment with THG, Participant shall be treated (for the purposes of this Agreement) as if he/she were never placed in LTD Status and remained an active Employee of THG, shall be given credit toward vesting for the period Participant was in
LTD Status and this Agreement shall remain in full force and effect in accordance with its terms. 

	 	5.	Death. If Participant dies (i) a pro-rated portion of the RSUs shall automatically vest, and (ii) the remaining unvested RSUs shall be automatically
cancelled and forfeited and be returned to the Company for no consideration. For purposes of this subsection, the pro-ration of the RSUs that vest upon Participant’s death shall be determined by dividing the number of days that the Participant
was an active Employee since the Grant Date by 1,095 and applying this percentage to the RSUs. Any fractional units shall be rounded up such that only whole shares are issued. 

 

	 	6.	Covered Transaction/Change in Control. In the event of a Covered Transaction (other than a Change in Control, whether or not it is a Covered Transaction), the
RSUs shall be fully governed by the applicable provisions of Section 7(a) of the Plan. Notwithstanding the terms of the Plan, in the event of a Change in Control (whether or not it is a Covered Transaction), the following rules shall apply:

 (a) Except as provided below in Section 6(b), in the event of a Change in Control the Participant shall
automatically vest in 100% of the RSUs. 
 (b) Notwithstanding Section 6(a), no acceleration of vesting shall occur with
respect to the RSUs if the Administrator reasonably determines in good faith prior to the occurrence of a Change in Control that this Award of RSUs shall be honored or assumed, or new rights substituted therefor (such honored, assumed or substituted
award hereinafter called an “Alternative Award”), by Participant’s employer (or the parent or a subsidiary of such employer) immediately following the Change in Control, provided that any such Alternative Award must:

 (i) be based on stock which is traded, or will be traded upon consummation of the Change in Control, on an established
securities market; 
 (ii) provide such Participant (or each Participant in a class of Participants) with rights and
entitlements substantially equivalent to or better than the rights, terms and conditions applicable under this Award, including, but not limited to, an identical or better vesting schedule; 

(iii) have substantially equivalent economic value to this Award (determined at the time of the Change in Control); and 

(iv) have terms and conditions which provide that in the event that the Participant’s employment is involuntarily terminated (other
than for Cause) or Participant terminates employment for “Good Reason” (as defined below) prior to the Vesting Date, the Participant shall automatically vest in 100% of the Alternative Award and any conditions on a Participant’s
rights under, or any restrictions on transfer or exercisability applicable to, the vested portion of such Alternative Award shall be waived or shall lapse. 
 For this purpose, “Good Reason” shall mean the occurrence of one or more of the events listed below following a Change in Control: 

(x) to the extent you are a “Participant” (as that term is defined in the CIC Plan) in the Company’s
Amended and Restated Employment Continuity Plan or its successor plan (the “CIC Plan”), the occurrence of any of the events enumerated under the definition of “Good Reason” applicable to Participant’s “Tier”
level as set forth in the CIC Plan; or 
 (y) if you are not a “Participant” in the CIC Plan, the
occurrence of any of the following (A) a reduction in your rate of annual base salary as in effect immediately prior to such Change in Control; (B) a reduction in your annual short-term incentive compensation plan target award (but
excluding the conversion of any cash incentive arrangement into an equity incentive 

  
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arrangement of commensurate value or vice versa) from that which was in effect immediately prior to such Change in Control; or (C) any requirement that you relocate to an office more than 35
miles from the facility where you were located immediately prior to the Change in Control. 
 (c) In the event a Participant
believes that a “Good Reason” event has been triggered, the Participant must give the Company written notice within 30 days of the occurrence of such triggering event and a proposed termination date which shall be not sooner than 60 days
nor later than 90 days after the date of such notice. Such notice shall specify the Participant’s basis for determining that “Good Reason” has been triggered. The Company shall have the right to cure a purported “Good
Reason” within 30 days of receipt of said notice 
 (d) Notwithstanding Sections 6(a) and (b) above, the Administrator
may elect, in its sole discretion, exercised prior to the effective date of the Change in Control, to accelerate all, or a greater percentage of the RSUs, than is otherwise required pursuant to the terms of this Section 6. 

 

	 	7.	Notices. Notices hereunder shall be in writing and, if to the Company, shall be delivered personally to the Human Resources Department or such other party as
designated by the Company or mailed to its principal office and, if to the Participant, shall be delivered personally or mailed to the Participant at his or her address on the records of the Company. 

 

	 	8.	Dividend and Voting Rights. The Participant will not be entitled to any dividends (or dividend equivalency rights) upon the RSUs or have any voting rights until
and to the extent the RSUs vest and are exchanged for Shares. 

  

	 	9.	Non-Hire/Solicitation/Confidentiality. As a condition of Participant’s eligibility to receive the RSUs and regardless of whether such RSUs vest,
Participant agrees that he or she will (i) not, directly or indirectly, during the term of your employment with THG, and for a period of one year thereafter, hire, solicit, entice away or in any way interfere with THG’s relationship with,
any of its officers or employees, or in any way attempt to do so or participate with, assist or encourage a third party to do so, and (ii) neither disclose any of THG’s confidential and proprietary information to any third party, nor use
such information for any purpose other than for the benefit of THG and in accordance with THG policy. The terms of this Section 9 shall survive the expiration or earlier termination of this Agreement. 

 

	 	10.	Damages/Specific Performance. 

 (a) The Participant hereby acknowledges and agrees that in the event of any breach of Section 9 of this Agreement, the Company would be irreparably harmed and could not be made whole by monetary
damages. The Participant accordingly agrees to waive the defense in any action for injunctive relief or specific performance that a remedy at law would be adequate and that the Company, in addition to any other remedy to which it may be entitled at
law or in equity, shall be entitled to an injunction or to compel specific performance of Section 9. 
 (b) In addition to
any other remedy to which the Company may be entitled at law or in equity (including the remedy provided in the preceding paragraph), the Participant hereby acknowledges and agrees that in the event of any breach of Section 9 of this Agreement,
Participant shall be required to refund to the Company the value received by Participant upon vesting of the RSUs; provided, however, that the Company makes any such claim, in writing, against Participant alleging a violation of Section 9 not
later than two years following your termination of employment with the Company. 
  

	 	11.	Successors. The provisions of this Agreement will benefit and will be binding upon the permitted assigns, successors in interest, personal representatives,
estates, heirs and legatees of each of the parties hereto. However, the RSUs are non-assignable, except as may be permitted by the Plan. 

  
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	 	12.	Interpretation. The terms of the RSUs are as set forth in this Agreement and in the Plan. The Plan is incorporated into this Agreement by reference, which means
that this Agreement is limited by and subject to the express terms and provisions of the Plan. In the event of a conflict between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall control. 

 

	 	13.	Governing Law. This Agreement shall be construed and applied (except as to matters governed by the Delaware General Corporation Law, as to which Delaware law
shall apply) in accordance with the laws of the Commonwealth of Massachusetts. 

  

	 	14.	Facsimile and Electronic Signature. The parties may execute this Agreement by means of a facsimile or electronic signature. 

 

	 	15.	Entire Agreement; Counterparts. This Agreement and the Plan contains the entire understanding between the parties concerning the subject contained in this
Agreement. Except for the Agreement and the Plan, there are no representations, agreements, arrangements, or understandings, oral or written, between or among the parties hereto, relating to the subject matter of this Agreement, that are not fully
expressed herein. This Agreement may be signed in one or more counterparts, all of which shall be considered one and the same agreement. 

  

	 	16.	Further Assurances. Each party to this Agreement agrees to perform all further acts and to execute and deliver all further documents as may be reasonably
necessary to carry out the intent of this Agreement. 

  

	 	17.	Severability. In the event that any of the provisions, or portions thereof, of this Agreement are held to be unenforceable or invalid by any court of competent
jurisdiction, the validity and enforceability of the remaining provisions, or portions thereof, will not be affected, and such unenforceable provisions shall be automatically replaced by a provision as similar in terms as may be valid and
enforceable. 

  

	 	18.	Construction. Whenever used in this Agreement, the singular number will include the plural, and the plural number will include the singular, and the masculine or
neuter gender shall include the masculine, feminine, or neuter gender. The headings of the Sections of this Agreement have been inserted for purposes of convenience and shall not be used for interpretive purposes. The Administrator shall have full
discretion to interpret and administer this Agreement. Any actions or decisions by the Administrator in connection with this Agreement shall be conclusive and binding upon the Participant. 

 

	 	19.	No Effect on Employment. Nothing contained in this Agreement shall be construed to limit or restrict the right of THG to terminate the Participant’s
employment at any time, with or without cause, or to increase or decrease the Participant’s compensation from the rate of compensation in existence at the time this Agreement is executed. 

 

	 	20.	Taxes. If at the time the RSUs vest the Company determines that under applicable law and regulations it could be liable for the withholding of any federal, state
or local tax, Participant shall remit to the Company any amounts determined by the Company to be required to be withheld or the Company may, at its option, withhold from such units, or the Shares which such units represent, a sufficient number of
units/Shares to satisfy the minimum federal, state and local tax withholding due, if any, and remit the balance of the units/Shares to the Participant. 

 The Company makes no representations to Participant with respect to the tax treatment of any amount paid or payable pursuant to this Award. While this Award is intended to be interpreted and operated to
the extent possible so that any such amounts shall be exempt from the requirements of Section 409A of the Internal Revenue Code (“Section 409A”), in no event shall the Company be liable to Participant for or with respect to any
taxes, penalties and/or interest which may be imposed upon any such amounts pursuant to Section 409A or any other federal or state tax law. To the extent that any such amount should be subject to Section 409A (or any other federal or state
tax law), the Participant shall bear the entire risk of any such taxes, penalties and or interest. 

  
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	 	21.	Waiver of Jury Trial. By accepting this Award under the Plan, Participant waives any right to a trial by jury in any action, proceeding or counterclaim
concerning any rights under (i) the Plan, (ii) the Prior Plan, (iii) any Award, (iv) any award under the Prior Plan, or (v) any amendment, waiver, consent, instrument, document or other agreement delivered or which in the
future may be delivered in connection with any of the foregoing, and agrees that any such action, proceedings or counterclaim shall be tried before a court and not before a jury. 

IN WITNESS WHEREOF, the parties hereto have entered into this Agreement as of the Grant Date. 

 

			
	THE HANOVER INSURANCE GROUP, INC.
		
	By:	 	  

	Name:	 	Maribeth Bearfield
	Title:	 	Executive Vice President & Chief Human Resources Officer
	
	  

	<PARTICIPANT NAME>

  
 - 5 -Form of Restricted Stock Terms and Conditions

 Exhibit 10.45 

 
 

 
 Kellogg Company 
 Restricted Stock Unit Terms and Conditions 
 Type of Award: Restricted Stock Unit
(“RSU”) grants are typically provided on an ad hoc basis to key employees, upon the approval of the Compensation Committee of the Board of Directors or an appropriately designated proxy. 

Vesting: RSUs become unrestricted and no longer subject to forfeiture and vest on the third anniversary of the grant date, but the
Compensation Committee may impose such other vesting conditions on RSU grants as it determines in its sole discretion at the time of grant. Employees generally will immediately forfeit any non-vested RSUs if they are no longer employed by the
Company or any Subsidiary for any reason other than death, Disability, Retirement or Change in Control (each, as defined in the Company’s applicable Long-Term Incentive Plan (the “Plan”). RSUs generally will become fully vested if an
employee’s employment terminates because of death, Disability, Retirement or in certain situations, Change in Control (as described below) prior to a vesting date. This restricted stock unit award will be forfeited if the participant is
terminated for any other reason. 
 Change in Control: Notwithstanding the above, in the event of a Change in Control, all
outstanding RSU grants will fully vest immediately as of the Change in Control and will be considered fully earned and will be payable promptly as practicable following the Change in Control if the grants have not been assumed or replaced by
a Substitute Award, as defined below. 
 An award will qualify as a Substitute Award (“Substitute Award”)if it is assumed by any
successor corporation, affiliate thereof, person or other entity, or replaced with awards that, solely in the discretionary judgment of the Compensation Committee preserves the existing value of the outstanding RSU grants at the time of the Change
in Control and provide vesting and payout terms, as applicable, that are at least as favorable to participants as vesting and payout terms applicable to the RSU grants (including the terms and conditions that would apply in the event of a subsequent
Change in Control). 
 If and to the extent that RSU grants are assumed by the successor corporation (or affiliate, person or other entity
thereto) or are replaced with Substitute Awards, then all such Substitute Awards thereof shall remain outstanding and be governed by their respective terms and the provisions of the applicable plan. 

If an RSU Award is assumed or replaced with a Substitute Award and the participant’s employment with the Company is thereafter terminated by
(i) the Company or successor, as the case may be, for any reason other than Cause (as defined in the Plan); or (ii) a participant eligible to participate in the Kellogg Company Change of Control Severance Policy for Key

 

 
  

 Executives, for Good Reason (as defined in that Policy), in each case, within the two year period
commencing on the date of the Change in Control, then all Substitute Awards for that participant will fully vest immediately as of the date of such participant’s termination and will be considered fully earned and will be payable promptly as
practical following the date of such termination. 
 The Compensation Committee of the Board of Directors may make additional adjustments or
settlements of outstanding Awards as it deems appropriate and consistent with the Plan’s purposes, including adjustments related to adverse tax consequences for participants or the Company. 

Payment: RSUs will be paid upon vesting in shares of Kellogg Company common stock based on the applicable number of vested RSUs unless
Kellogg Company determines otherwise (see ‘Tax and Legal Issues’ below). Until the time of vesting, no shares of common stock will be issued for the RSUs. In the event that the RSUs are characterized as deferred compensation for purposes
of Section 409A of the Internal Revenue Code, payment of the RSUs will be made in a manner that complies with Section 409A, which may include a six-month delay in payment if payment is triggered as a result of a separation from service
from Kellogg Company. 
 Dividends: Dividends will be not earned or deemed earned on the RSUs. 

Voting: The RSUs will not give their holder any voting rights, or any other right of a holder of Kellogg Company common stock. The shares
of Kellogg Company common stock that are issued for the RSUs upon vesting will have voting rights. 
 Taxes: Prior to payment of
the RSUs, Kellogg Company shall have the power and right to deduct or withhold or require the participant to remit to Kellogg Company an amount sufficient to satisfy any tax withholding obligation of the Company. In general, income taxes will be due
when the shares underlying the RSUs are paid based on the Fair Market Value (as defined in the Plan) of the shares on the payment date. Income recognized in connection with the payment of RSUs will be considered taxable compensation and will be
included in W2 income for U.S. employees, T4 income for Canadian employees or the appropriate tax reporting form for other employees. Employees may pay withholding taxes by selling shares on the market, subject to the limitations of applicable law,
or by electing to have Kellogg Company withhold shares (and delivering to the participant the net shares of common stock) having a Fair Market Value equal to the amount sufficient to satisfy Kellogg Company’s minimum statutory withholding
obligations. Taxes include Federal or national, social insurance or FICA taxes, state and local, if applicable and as required by local requirements. 
 Administration: Participants will not receive stock certificates when the RSUs vest. The shares of Kellogg Company common stock issued in payment for the RSUs will initially be held via book
entry at Merrill Lynch. Those shares will be registered in the employee’s name. Employees can change the registration of the shares after the vesting period. Contact Merrill Lynch within in the U.S. at 1-866-866-4050 or outside the U.S. at
1-609-818-8669. 

  

 

 
  

 Communication: Each participant will be provided with a written confirmation of the RSU
award and a summary of plan provisions. Participants will also receive a notice after vesting and payment of the RSUs that explains the number of shares issued as well as the number of shares to be sold to pay the withholding tax. 

Disposition at Vesting: After the shares are issued, participants can leave the shares with Merrill Lynch, ask Merrill Lynch to sell the
shares, have a certificate issued to the participant or have the shares electronically transferred to another broker. Certain fees may apply to selling or transferring shares – contact Merrill Lynch for details. 

Benefits: RSU grants and income recognized in connection with payments in respect thereof will not be included in earnings for the purposes
of determining benefits, including defined benefit pension, defined contribution retirement, disability, life insurance and other survivor benefits. 
 Insiders: Insiders cannot dispose of the shares issued without prior approval of the Legal Department and will be subject to any applicable blackout restrictions. 

Tax and Legal Issues: Prior to vesting, the Company reserves the right to replace the RSU granted with a cash equivalent benefit if there
are any adverse tax or legal consequences for either the employee or Company related to the ownership of Kellogg Company shares (generally for participants outside North America). This award is also otherwise subject to the terms and conditions of
the Plan which prevails in the event of any inconsistency. 
 Clawback: If at any time (including after the vesting date but prior
to payment) the Committee, including any person authorized pursuant to Section 3.2 of the Plan (any such person, an “Authorized Officer”), reasonably believes that a participant has committed an act of misconduct as described in this
Section, the Committee or an Authorized Officer may suspend such participant’s right to participate in an Award pending a determination of whether an act of misconduct has been committed. If the Committee or an Authorized Officer determines
such participant has engaged in any activity that is contrary or harmful to the interests of the Company or any of its subsidiaries, including, but not limited to, (i) conduct relating to employment for which either criminal or civil penalties
may be sought, (ii) breaching a fiduciary duty or deliberately disregarding any of the Company’s (or any of its subsidiaries’) policies or code of conduct, (iii) violating the Company’s insider trading policy,
(iv) accepting employment with or serving as a consultant, advisor, or in any other capacity to an entity or person that is in competition with or acting against the interests of the Company or any of its subsidiaries, (v) directly or
indirectly soliciting, hiring, or otherwise encouraging any present, former, or future employee of the Company or any of its subsidiaries to leave the Company or any of its subsidiaries, (vi) disclosing or misusing any confidential information
or material concerning the Company or any of its subsidiaries, or (vii) participating in a hostile takeover attempt of the 

  

 

 
  

 Company, then the grant of RSU’s under the Plan and all rights thereunder shall terminate
immediately without notice effective the date on which such participant performs such act of misconduct, unless terminated sooner by operation of another term or condition of this award or the Plan. In addition, if the Committee determines that a
participant engaged in an act of fraud or intentional misconduct during employment that caused the Company to restate all or a portion of the Company’s financial statements (“Misconduct”), such participant may be required to repay to
the Company, in cash and upon demand, any payment in shares from the RSU Award made during the plan year of the misstatement. The return of RSU payments is in addition to and separate from any other relief available to the Company due to Misconduct.
For anyone who is an executive officer for purposes of Section 16 of the Exchange Act, the determination of the Committee shall be subject to the approval of the Board of Directors. 
 The rights contained in this section shall be in addition to, and shall not limit, any other rights or remedies that the Company may have under law or in equity, including, without limitation,
(i) any right that the Company may have under any other Company recoupment policy or other agreement or arrangement with a participant, or (ii) any right or obligation that the Company may have regarding the claw back of
“incentive-based compensation” under Section 10D of the Securities Exchange Act of 1934, as amended (as determined by the applicable rules and regulations promulgated thereunder from time to time by the U.S. Securities and Exchange
Commission). 
 Assignability and Transfer: RSUs may not be assigned, transferred, sold, exchanged, encumbered, pledged or
otherwise hypothecated or disposed of, except as provided in the Plan. 
 These terms and conditions are subject to the terms and conditions of
the Plan, and any additional terms and conditions as determined by the Compensation Committee of the Board of Directors. Updated February 2013.

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