Document:

exv10w57

 

EXHIBIT
10.57

 

	 	 	 	 	 
	

	 	ACE American Insurance Company

(A Stock Company)

Philadelphia, PA

(Herein called We, Us, Our)
	 	Description of Coverage

Accident Benefits for Motorola, Inc.

You are a Covered Person and eligible for coverage under the plan, if You are in the eligible class
defined below. For benefits to be payable the Policy must be in force, the required premium must be
paid and You must be engaging in one of the Covered Activities described below. If You are not in
Active Service on the date Your insurance would otherwise be effective, it will go into effect on
the date You return to Active Service.

Class 2                     All Non-employee Directors of Motorola, Inc.

Your Dependents (lawful spouse and unmarried children, subject to Dependent age limits in the state
where the Policy is issued) are also covered, if they are traveling with You on the business of
Motorola.

Period of Coverage: You will be insured on the later of: 1) January 1, 2008 or 2) the date that
You become eligible. Your coverage will end on the earliest of the
date: 1) January 1, 2011; 2) You
are no longer eligible; or 3) the period ends for which the required premium is paid. Dependents
coverage will end on the earliest of the date: 1) he or she is no longer a Dependent; 2) Your
coverage ends; or 3) the period ends for which the required premium is paid.

Schedule of Benefits

Plan Benefits and Covered Activities:

ACCIDENTAL DEATH & DISMEMBERMENT BENEFITS

	 	 	 
	Principal Sum:
	 	 
	Class 2
	 	 $500,000
	 
	Spouse of Class 2
	 	 $50,000
	 
	Children of Class 2
	 	 $25,000
	 
	Time Period for Loss:
	 	 365 days from the date of a Covered Accident

	 	 	 
	Coma Benefit
	 	 
	 
	 	 
	 

	 	Benefits are payable initially as 1% of the Principal Sum per Month up to 11
months and thereafter in a lump sum of 100% of the Principal Sum.
	Disability Benefit (Does not apply to Dependents)
	Benefit Waiting Period:

	 	 365 days
	 
	 	 
	Time Period for Loss:

	 	 365 days from the date of the Covered Accident
	 
	 	 
	Benefit Amount:

	 	 100% of the Principal Sum
	 
	 	 
	Emergency Medical Benefits
	 	 
	Benefit Maximum:

	 	 up to $10,000
	 
	 	 
	Emergency Medical Evacuation Benefit
	 	 
	Benefit Maximum:

	 	 100% of Covered Expenses
	 
	 	 
	Rehabilitation Benefit
	 	 
	Benefit Amount:

	 	  $50,000
	 
	 	 
	Repatriation of Remains Benefit
	 	 
	Benefit Maximum:

	 	  100% of Covered Expenses
	 
	 	 
	Seatbelt and Airbag Benefit
	 	 
	Seatbelt Benefit Amount:

	 	  $25,000

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	Airbag Benefit Amount:
	 	  $10,000
	 
	 	 
	Default Benefit Amount:
	 	  $1,000
	 
	 	 
	Special Adaptation Benefit
	 	 
	Benefit Maximum:
	 	10% of the Covered Person’s
Principal Sum up to a Maximum Benefit of $10,000
	 
	 	 
	 
	 	 
	Special Counseling Benefit
	 	 
	Benefit Amount:
	 	$100
	 
	 	 
	Special Counseling Benefit
	 	 
	Maximum number of sessions:
	 	10
	 
	 	 
	Benefit Maximum Amount per
Covered Accident:
	 	$1,000

24-Hour Coverage (Does not apply to Dependents)

We will pay the benefits described in the Policy when a Covered Person suffers a Covered Accident
any time while insured by the Policy. Unless otherwise specified, We will pay benefits only once
for a Covered Accident.

Business Travel (Applies to Dependents of Class 2 Insureds)

The Covered Accident must take place while traveling:

	1.	 	on business for the Policyholder; and
	 
	2.	 	in the course of the Policyholder’s business.

This coverage does not include commuting between home and the place of work. 

This coverage will start at the actual start of the trip. It does not matter whether the trip
starts at the Covered Person’s home, place of work, or other place. It will end on the first of the
following dates to occur:

	1.	 	the date a Covered Person returns to his or her home;
	 
	2.	 	the date a Covered Person returns to his or her place of work; or
	 
	3.	 	the date a Covered Person’s Personal Deviation is more than 7 day(s).

“Personal Deviation” means:

	1.	 	an activity that is not reasonably related to the Policyholder’s business; and
	 
	2.	 	not incidental to the purpose of the trip.

Exposure & Disappearance

Coverage under this hazard includes exposure to the elements after the forced landing, stranding,
sinking, or wrecking of a vehicle in which the Covered Person was traveling.

A Covered Person is presumed dead if:

	1.	 	he or she is in a vehicle that disappears, sinks, or is stranded or wrecked on a trip covered by
this Policy; and
	 
	2.	 	the body is not found within one year of the Covered Accident.

Felonious Assault

The Covered Accident must:

	1.	 	take place on the Policyholder’s premises; and
	 
	2.	 	be in the course of a Covered Person’s job; and,
	 
	3.	 	be caused by or results directly and independently from a Felonious Assault, as defined below.

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The assault must be inflicted by a person other than another person covered by the Policy, a
Covered Person’s Immediate Family Member, or Household Member. A police report detailing the
felonious assault must be provided.

The Covered Accident must occur during any of the following:

	1.	 	actual or attempted robbery or holdup; or
	 
	2.	 	actual or attempted kidnapping; or
	 
	3.	 	any other type of intentional assault that is a crime classified as a felony by the governing
statute or common law in the state where the assault occurred.

“Felonious Assault” means a criminal act or an act of physical violence against a person covered by
this Policy. “Immediate Family Member” means a Covered Person’s parent, sister, brother, husband,
wife, or children. “Household Member” means a person who maintains residence at the same address as
the Covered Person.

Hijacking and Air Piracy

The Covered Accident must:

	1.	 	take place during the:

	 	a.	 	hijacking of an Aircraft;
	 
	 	b.	 	air piracy; or
	 
	 	c.	 	unlawful seizure or attempted seizure of an Aircraft; and

	2.	 	take place while the Insured is in the course of the Policyholder’s business.

Coverage begins with the onset of the hijacking or air piracy and continues while the Covered
Person is subject to the control of the person or persons responsible for the hijacking/air piracy
and during travel directly to his or her home or scheduled destinations.

“Hijacking” or “Air Piracy,” as used here, means the unlawful seizure or wrongful exercise of
control of an aircraft or conveyance, or the crew thereof, in which the Covered Person is traveling
solely as a passenger.

Owned, Leased, or Controlled Aircraft

The Covered Accident must take place while:

	1.	 	the Covered Person is riding in, or getting on or off of, a covered aircraft; or
	 
	2.	 	as a result of a Covered Person being struck by a covered aircraft.
	 
	3.	 	away from the Policyholder’s premises in the Covered Person’s city of permanent assignment;
	 
	4.	 	on business for the Policyholder; and
	 
	5.	 	in the course of the Policyholder’s business.

This coverage will start at the actual start of the trip. It does not matter whether the trip
starts at the Covered Person’s home, place of work, or other place. It will end on the first of the
following dates to occur:

	1.	 	the date a Covered Person returns to his or her home;
	 
	2.	 	the date a Covered Person returns to his or her place of work; or

	 
	3.	 	the date a Covered Person’s Personal Deviation is more than 7 day(s).

“Personal Deviation” means:

	1.	 	an activity that is not reasonably related to the Policyholder’s business; and
	 
	2.	 	not incidental to the purpose of the trip.

An aircraft will be deemed “controlled” by the Policyholder if the Policyholder may use it for more
than 10 straight days, or more than 15 days in any year.

Description of Aircraft Covered: The Policy Schedule of Benefits will list type of Aircraft,
license number, and passenger seating capacity.

Aircraft Restrictions

If the Covered Accident happens while a Covered Person is riding in, or getting on or off of, an
aircraft, We will pay benefits, but only if:

	1.	 	the aircraft has a valid certificate of airworthiness; and
	 
	2.	 	the aircraft is flown by a pilot with a valid license.

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Relocation

The Covered Accident must take place while the Covered Person is traveling on a Relocation Trip at
the expense and direction of the Policyholder.

“Relocation Trip” means a trip in connection with the Insured’s transfer or proposed transfer by
the Policyholder to a new worksite.

This coverage will start at the actual start of the trip. It does not matter whether the trip
starts at the Covered Person’s home, place of work, or other place. It will end on the first of the
following dates to occur:

	1.	 	the date a Covered Person returns to his or her home;
	 
	2.	 	the date a Covered Person returns to his or her place of work; or
	 
	3.	 	the date a Covered Person’s Personal Deviation is more than 7 day(s).

“Personal Deviation” means:

	1.	 	an activity that is not reasonably related to the Policyholder’s business; and
	 
	2.	 	not incidental to the purpose of the trip.

Terrorism

The Covered Accident must:

	1.	 	take place while the Covered Person is on the Policyholder’s premises, or in the course of a)
the Policyholder’s business and/or b) the Insured’s job; and,
	 
	2.	 	be caused by or results directly and independently from Terrorism or Terrorist Act, as
defined below.

“Terrorism or Terrorist Acts” means an activity that: 1) involves any violent act or any act
dangerous to human life and that threatens or causes Injury to persons; and 2) appears to be in any
way intended to: a) intimidate or coerce a civilian population; or b) disrupt any segment of a
nation’s economy; or c) influence the policy of a government by intimidation or coercion; or d)
affect the conduct of a government by mass destruction, assassination, kidnapping, or hostage
taking; or e) respond to governmental action or policy. It includes any incident declared to be an
act of terrorism by an official, department, or agency that has been specifically authorized by
federal statute to make such a determination. It shall also include the use of any nuclear weapon
or device or the emission, discharge, dispersal, release, or escape of any solid liquid or gaseous
chemical or biological agent.

War Risk Coverage: We will pay benefits for Covered Losses due to Covered Accidents resulting from
war or acts of war worldwide, excluding: 1) the United States; 2) the Covered Person’s Home Country
3) the Covered Person’s Country of Permanent Assignment and, 4) Afghanistan, Chechnya, Iran, Iraq,
Pakistan, Saudi Arabia and Somalia. The war exclusion is deleted to the extent coverage is provide
by the terms and conditions of War Risk Coverage.

“Home Country” means a country from which the Covered Person holds a passport. If the Covered
Person holds passports from more than one Country, his or her Home Country will be the country that
he or she has declared to Us in writing as his or her Home Country.

“Country of Permanent Assignment” means a country, other than a Covered Person’s Home Country, in
which the Policyholder requires a Covered Person to work for a period of time that exceeds 180
continuous days.

We will not pay more than $15,000,000 per occurrence for war risk benefits. This limit shall apply
to Injuries sustained from all acts of war in a consecutive 72-hour period. If but for this limit
We would pay more than $15,000,000, then the benefits We will pay to each Covered Person will be
reduced in the same proportion, so that the total amount We will pay for war risk coverage is
$15,000,000.

Aggregate Limit:

			
	Benefit Maximum:

	 	per Covered Accident: $15,000,000

We will not pay more than the Benefit Maximum for all losses per Covered Accident. If, in the
absence of this provision, We would pay more than Benefit Maximum for all losses from one
Covered Accident, then the benefits payable to each person with a valid claim will be reduced
proportionately, so the total amount We will pay is the Benefit Maximum.

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Description of Benefits

Accidental Death and Dismemberment Benefits

If Injury to the Covered Person results, within the Time Period for Loss shown in the Schedule of
Benefits, in any one of the losses shown below, We will pay the Benefit Amount shown below for that
loss. The Principal Sum is shown in the Schedule of Benefits. If multiple losses occur, only one
Benefit Amount, the largest, will be paid for all losses due to the same Covered Accident.

Schedule of Covered Losses

	 	 	 
	Covered Loss	 	Benefit Amount
	Life

	 	100% of the Principal Sum
	Two or more Members

	 	100% of the Principal Sum
	Quadriplegia

	 	100% of the Principal Sum
	One Member

	 	50% of the Principal Sum
	Hemiplegia

	 	75% of the Principal Sum
	Paraplegia

	 	75% of the Principal Sum
	Thumb and Index Finger of the Same Hand

	 	25% of the Principal Sum

“Quadriplegia” means total Paralysis of both upper and lower limbs. “Hemiplegia” means total
Paralysis of the upper and lower limbs on one side of the body. “Paraplegia” means total Paralysis
of both lower limbs or both upper limbs. “Paralysis” means total loss of use. A Doctor must
determine the loss of use to be complete and not reversible at the time the claim is submitted.

“Member” means Loss of Hand or Foot, Loss of Sight, Loss of Speech and Loss of Hearing. “Loss of
Hand or Foot” means complete Severance through or above the wrist or ankle joint. “Loss of Sight”
means the total, permanent Loss of Sight of one eye. “Loss of Speech” means total and permanent
loss of audible communication that is irrecoverable by natural, surgical or artificial means. “Loss
of Hearing” means total and permanent Loss of Hearing in both ears that is irrecoverable and cannot
be corrected by any means. “Loss of a Thumb and Index Finger of the Same Hand” means complete
Severance through or above the metacarpophalangeal joints of the same hand (the joints between the
fingers and the hand). “Severance” means the complete separation and dismemberment of the part from
the body.

Coma Benefit

We will pay the Coma Benefit shown in the Schedule of Benefits if a Covered Person becomes Comatose
within 31 days of a Covered Accident and remains in a Coma for at least 31 days. 

We reserve the right, at the end of the first 31 days of Coma, to require proof that the Covered
Person remains Comatose. This proof may include, but is not limited to, requiring an independent
medical examination at Our expense.

We will pay this benefit in periodic payments and a lump sum as shown in the Schedule of Benefits.
Periodic payments will end on the first of the following dates:

	1.	 	the end of the month in which the Covered Person dies;
	 
	2.	 	the end of the 11th month for which this benefit is payable;
	 
	3.	 	the end of the month in which the Insured recovers from the Coma.

A person is deemed “Comatose” or in a “Coma” if he or she is in a profound stupor or state of
complete and total unconsciousness, as the result of a Covered Accident.

Disability Benefit (Permanent Total Disability)

We will pay the Disability Benefit shown in the Schedule of Benefits if an Insured is under age 70
and Permanently Totally Disabled as a direct result of, and from no other cause but, a Covered
Accident. Disability Benefits will begin when:

1. the applicable Benefit Waiting Period shown in the Schedule of Benefits for this benefit is
satisfied; and

2. the Insured provides satisfactory proof of Permanent Total Disability to Us.

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“Total Disability” or “Totally Disabled” means, due to an Injury from a Covered Accident, an Insured:

	1.	 	if employed, cannot do any work for which he or she is, or may become, qualified by reason of education, experience or training; and
	 
	2.	 	if not employed, cannot perform the normal and customary activities of a healthy person of like age and sex.

“Permanent Total Disability” or “Permanently Totally Disabled” means an Insured is Totally Disabled and is expected to remain so disabled, as certified by a Doctor, for the rest of his or her life.

Permanent Total Disability must be the result of the same Covered Accident that caused the Total Disability.

Emergency Medical Benefits

We will pay Emergency Medical Benefits as shown in the Schedule of Benefits for Covered Expenses incurred for emergency medical services to treat a Covered Person. Benefits are payable up to the Maximum Benefit shown in the Schedule of Benefits if the Covered Person:

	1.	 	suffers a Medical Emergency during the course of the Trip; and
	 
	2.	 	is traveling 100 miles or more away from his or her place of permanent residence.

Covered Expenses:

	1.  Medical Expense Guarantee: expenses for guarantee of payment to a medical provider.
	 
	2.  Hospital Admission Guarantee: expenses for guarantee of payment to a Hospital or treatment facility.

Benefits for these Covered Expenses will not be payable unless:

	1.	 	the charges incurred are Medically Necessary and do not exceed the charges for similar treatment, services or supplies in the locality where the expense is incurred; and
	 
	2.	 	do not include charges that would not have been made if there were no insurance.

Benefits will not be payable unless We authorize in writing, or by an authorized electronic or telephonic means, all expenses in advance, and services are rendered by Our assistance provider.

Emergency Medical Evacuation Benefit

We will pay Emergency Medical Evacuation Benefits as shown in the Schedule of Benefits for Covered Expenses incurred for the medical evacuation of a Covered Person. Benefits are payable up to the Benefit Maximum shown in the Schedule of Benefits if the Covered Person:

	1.	 	suffers a Medical Emergency during the course of the Trip;
	 
	2.	 	requires Emergency Medical Evacuation; and
	 
	3.	 	is traveling 100 miles or more away from his or her place of permanent residence.

Covered Expenses:

	1.	 	Medical Transport: expenses for transportation under medical supervision to a different hospital, treatment facility or to the Covered Person’s place of residence for Medically Necessary treatment in the event of the Covered Person’s Medical Emergency and upon the request of the Doctor designated by Our assistance provider in consultation with the local attending Doctor.
	 
	2.	 	Dispatch of a Doctor or Specialist: the Doctor’s or specialist’s travel expenses and the medical services provided on location, if, based on the information available, a Covered Person’s condition cannot be adequately assessed to evaluate the need for transport or evacuation and a doctor or specialist is dispatched by Our service provider to the Covered Person’s location to make the assessment.
	 
	3.	 	Return of Dependent Child(ren): expenses to return each Dependent child who is under age 18 to his or her principal residence if a) the Covered Person is age 18 or older; and b) the Covered Person is the only person traveling with the minor Dependent child(ren); and c) the Covered Person suffers a Medical Emergency and must be confined in a Hospital.
	 
	4.	 	Escort Services: expenses for an Immediate Family Member or companion who is traveling with the Covered Person to join the Covered Person during the Covered Person’s emergency medical evacuation to a different hospital, treatment facility or the Covered Person’s place of residence.

Benefits for these Covered Expenses will not be payable unless:

	1.	 	the Doctor ordering the Emergency Medical Evacuation certifies the severity of the Covered Person’s Medical
Emergency requires an Emergency Medical Evacuation;

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	2.	 	all transportation arrangements made for the Emergency Medical Evacuation are by the most direct
and economical conveyance and route possible;
	 
	3.	 	the charges incurred are Medically Necessary and do not exceed the Usual and Customary
Charges for similar transportation, treatment, services or supplies in the locality where the
expense is incurred; and
	 
	4.	 	do not include charges that would not have been made if there were no insurance.

Benefits will not be payable unless We authorize in writing, or by an authorized electronic or
telephonic means, all expenses in advance, and services are rendered by Our assistance provider.

“Medical Emergency” means a condition caused by an Injury or Sickness that manifests itself by
symptoms of sufficient severity that a prudent lay person possessing an average knowledge of health
and medicine would reasonably expect that failure to receive immediate medical attention would
place the health of the person in serious jeopardy.

“Sickness” means an illness, disease or condition of the Covered Person that causes a loss for
which a Covered Person incurs medical expenses while covered under this Policy. All related
conditions and recurrent symptoms of the same or similar condition will be considered one Sickness.

“Trip” means travel by air, land, or sea from the Covered Person’s Home Country.

Rehabilitation Benefit

We will pay the Rehabilitation Benefits shown in the Schedule of Benefits, if:

	1.	 	a Covered Person suffers an Accidental Dismemberment covered under the Policy; and
	 
	2.	 	is participating in a Rehabilitation program due to an Accidental Dismemberment; and
	 
	3.	 	the Rehabilitation Program is prescribed by a Doctor.

Benefits are payable for:

	1.	 	the facility providing the Rehabilitation Program in which the Covered Person is participating;
and

	 
	2.	 	Immediate Family Members who incur expenses for travel to and from the location at which the
Covered Person is participating in a Rehabilitation Program provided actual receipts are
submitted with the claim.

Benefits will end when the first of the following events occur:

	1.	 	the date the Covered Person completes the Rehabilitation Program;
	 
	2.	 	the date the Covered Person dies.

“Immediate Family Member” means a Covered Person’s parent, grandparent, spouse, child, brother,
sister, or in-laws.

“Rehabilitation Program” means a specialized, intensive program for rehabilitation or assimilation
at an accredited medical facility specializing in research, surgery, and training of persons with
Accidental Dismemberment Covered Losses as outlined in the Schedule of Covered Losses.

Repatriation of Remains Benefit

We will pay Repatriation of Remains Benefits as shown in the Schedule of Benefits for preparation
and return of a Covered Person’s body to his or her home if he or she dies as a result of a Medical
Emergency while traveling 100 miles or more away from his or her place of permanent residence.
Covered expenses include:

	1.	 	expenses for embalming or cremation;
	 
	2.	 	the least costly coffin or receptacle adequate for transporting the remains;

	 
	3.	 	transporting the remains.
	 
	4.	 	Escort Services: expenses for an Immediate Family Member or companion who is traveling with
the Covered Person to join the Covered Person’s body during the repatriation to the Covered
Person’s place of residence.

All transportation arrangements must be made by the most direct and economical route and conveyance
possible and may not exceed the Usual and Customary Charges for similar transportation in the
locality where the expense is incurred.

Benefits will not be payable unless We authorize in writing, or by an authorized electronic or
telephonic means, all expenses in advance, and services are rendered by Our assistance provider.

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Seatbelt and Airbag Benefit

We will pay benefits shown in the Schedule of Benefits, subject to the conditions described below,
when a Covered Person dies or is dismembered directly and independently from Injuries sustained
while wearing a seatbelt and operating or riding as a passenger in an Automobile. An additional
benefit is provided, if the Covered Person was also positioned in a seat protected by a
properly-functioning and properly deployed Supplemental Restraint System (Airbag).

Verification of proper use of the seatbelt at the time of the Covered Accident and that the
Supplemental Restraint System properly inflated upon impact must be a part of an official police
report of the Covered Accident or be certified, in writing, by the investigating officer(s) and
submitted with the Covered Person’s claim to Us.

If such certification or police report is not available or it is unclear whether the Covered Person
was wearing a seatbelt or positioned in a seat protected by a properly functioning and properly
deployed Supplemental Restraint System, We will pay a default benefit shown in the Schedule of
Benefits to the Covered Person’s beneficiary.

In the case of a child, seatbelt means a child restraint, as required by state law and approved by
the National Highway Traffic Safety Administration, properly secured and being used as recommended
by its manufacturer for children of like age and weight at the time of the Covered Accident.

“Supplemental Restraint System” means an airbag that inflates upon impact for added protection to
the head and chest areas.

“Automobile” means a self-propelled, private passenger motor vehicle with four or more wheels that
is a type both designed and required to be licensed for use on the highway of any state or country.
Automobile includes, but is not limited to, a sedan, station wagon, sport utility vehicle, or a
motor vehicle of the pickup, van, camper, or motor-home type. Automobile does not include a mobile
home or any motor vehicle that is used in mass or public transit.

Special Adaptation Benefit

We will pay Special Adaptation Benefits as shown in the Schedule of Benefits if a Covered Person:

	1.	 	suffers a “Presumptive Disability” from a Covered Accident; and
	 
	2.	 	requires a special housing adaptation; or
	 
	3.	 	a special Vehicle to accommodate the disability.

Benefits will not be payable unless the Covered Person’s Doctor certifies them as necessary.

“Presumptive Disability” means We will presume a Covered Person is Totally Disabled if he or she
suffers the complete and irrecoverable loss of sight of both eyes, speech, hearing in both ears, or
of any two limbs, hands or feet, provided the loss occurs within one year of the Covered Accident.

“Vehicle” means a private passenger land motor vehicle. It includes automobiles, vans, and four
wheel drive vehicles. It does not include a vehicle used for farming, commercial business, racing
or any type of competitive speed event.

Special Counseling Benefit

We will pay the Special Counseling Benefit shown in the Schedule of Benefits for mental health
counseling to assist a Covered Person in dealing with a Covered Loss, if he or she:

	1.	 	suffers an Injury that results in a loss as outlined in the Schedule of Covered Losses for which the
Accidental Death and Dismemberment Benefit is payable; and
	 
	2.	 	obtains mental health counseling.

Exclusions and Limitations: We will not pay benefits for any loss or Injury that is caused by, or
results from:

	•	 	intentionally self-inflicted Injury.
	 
	•	 	suicide or attempted suicide.
	 
	•	 	war or any act of war, whether declared or not (except as provided by the Policy).
	 
	•	 	a Covered Accident that occurs while on active duty service in the military, naval or air
force of any country or international organization. Upon Our receipt of proof of service, We will
refund any premium paid for this time. Reserve or National Guard active duty training is not
excluded unless it extends beyond 31 days.
	 
	•	 	sickness, disease, bodily or mental infirmity, bacterial or viral infection, or medical or
surgical treatment thereof, except for any bacterial infection resulting from an accidental
external cut or wound or accidental ingestion of contaminated food.

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This insurance does not apply to the extent that trade or economic sanctions or regulations
prohibit Us from providing insurance, including, but not limited to, the payment of claims.

Definitions: Covered Accident: means an accident that occurs while coverage is in force for a
Covered Person and results directly of all other causes in a loss or Injury covered by the Policy
for which benefits are payable. Covered Person: means any eligible person for whom the required
premium is paid. Injury: means accidental bodily harm sustained by a Covered Person that results
directly from all other causes from a Covered Accident. All injuries sustained by one person in any
one Covered Accident, including all related conditions and recurrent symptoms of these injuries,
are considered a single Injury. We, Our, Us: means the insurance company underwriting this
insurance or its authorized agent. You or Your: means a person insured under the Policy.

If You need to file a Claim, please call: ACE USA at 800-336-0627 (from within the USA and Canada)
or 302-476-6194 (from outside the USA or Canada). Our fax number is 302-476-6154 and our address is
1 Beaver Valley Road, PO Box 15417, Wilmington, DE, 19850

You must notify ACE USA within 90 days of an Accident or Loss. If notice cannot be given within
that time, it must be given as soon as reasonably possible. This notice should identify You, Your
employer, and the Policy Number.

Policy Number: ADD N04156870, Underwritten by ACE American Insurance Company, 436 Walnut Street,
Philadelphia, PA 19106

Travel Assistance Services: In addition to the insurance protection provided by this plan, ACE USA
has arranged with Europ Assistance USA to provide You with access to its travel assistance services
around the world. These services include:

	•	 	Medical Assistance including referral to a doctor or medical specialist, medical monitoring
when You are hospitalized, emergency medical evacuation to an adequate facility, medically
necessary repatriation, and return of mortal remains.
	 
	•	 	Personal Assistance including pre-trip medical referral information and while You are on a
trip: emergency medication, embassy and consular information, lost document assistance,
emergency referral to a lawyer, translator or interpreter access, medical benefits
verification, and medical claims assistance.
	 
	•	 	Travel Assistance including emergency travel arrangements, arrangements for the return of
Your traveling companion or dependents, and vehicle return.

Contact
Information: For customer service, eligibility verification, benefit plan information, and
benefit payments, contact: ACE USA at 800-336-0627 (from inside the U.S.) or 302-476-6194 (from
outside the U.S.); fax 302-467-6154 for claims or inquiries or e-mail diane.basa@ace-ina.com. Mail
claims to: ACE USA, PO Box 15417, Wilmington, DE 19850. For medical evacuation, repatriation, or
other assistance services call: Europ Assistance at 800-243-6124 (inside the U.S.) or call collect
202-659-7803 (from outside the U.S.) or e-mail OPS@europassistance-usa.com.

When You call, please be prepared with the following information: 1) name of caller, phone number,
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provider; and 5) other insurance information including health insurance, workers’ compensation, or
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 Page 9exv10w1

 

Exhibit 10.1

EXECUTIVE EMPLOYMENT AGREEMENT

     THIS EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of February 15, 2007
(the “Effective Date”), by and among Calamos Asset Management, Inc., a Delaware corporation
(“CAM”), Calamos Advisors LLC, a Delaware limited liability company (“Advisors”) and wholly-owned
subsidiary of its sole managing member, Calamos Holdings LLC (“Holdings”) (together with each of
its successors and assigns permitted under this Agreement sometimes referred to herein as the
"Company”), and James F. Baka (“Executive”).

RECITALS

     WHEREAS, the Executive currently serves as Executive Vice President — Wealth Management of
the Company; and

     WHEREAS, the Company and Executive each desire to enter into this Agreement.

     NOW THEREFORE, the parties agree as follows:

     1. Term. Subject to earlier termination as provided herein, the Company hereby agrees
to continue Executive in its employ, and Executive hereby agrees to remain in the employ of the
Company, for the period commencing on the Effective Date and ending on December 31, 2009; provided,
however, that commencing on January 1, 2009, and on each January 1 thereafter, the term of
Executive’s employment under this Agreement shall be extended automatically for one (1) additional
year, creating a new two (2)-year term commencing as of such January 1 until such date on which
either the Board of Directors of CAM (the “Board”), on behalf of Holdings, or Executive gives
written notice to the other, in accordance with Section 15(d), below, that such automatic extension
of Executive’s employment under this Agreement shall cease, in which event, as of the effective
date of such notice, the term of employment shall become a fixed term ending on the December 31 of
the calendar year in which the first anniversary of the date of such notice falls. Any such notice
shall be effective immediately upon delivery. The term of Executive’s employment as provided in
this Section 1 shall be hereinafter referred to as the “Term.”

     2. Duties.

          (a) Executive’s Positions and Titles. Executive’s positions and titles shall be
Executive Vice President, of Advisors. Executive shall also serve as Executive Vice President —
Wealth Management of CAM and Holdings, and in such positions with Holdings’ subsidiaries
(“Subsidiaries”), to which Executive may be appointed.

          (b) Executive’s Duties. Executive shall have such power and authority to act for and
in the name of the Company, as provided in the operating agreement of Advisors, the By-laws of CAM
or resolutions of the manager of Advisors (the “Manager”) or the Board. The duties and
responsibilities of Executive are and shall continue to be of an executive nature as shall be
required by the Company in the conduct of its business and shall include the performance of such
lawful and reasonable duties and responsibilities as the Board or the Manager may from time to time
assign to

- 1 -

 

Executive not inconsistent with Executive’s position(s). Executive recognizes that during the
period of Executive’s employment hereunder, Executive owes an undivided duty of loyalty to the
Company, and Executive will use Executive’s good faith efforts to promote and develop the business
of the Company. However, the Company recognizes that during the period of Executive’s employment
hereunder, Executive may provide certain services to Calamos Family Partners, Inc. and its
affiliates and related entities, and the Company acknowledges and agrees that Executive’s provision
of such services shall not be in breach of this Agreement so long as the provision of such services
does not (i) interfere with Executive’s primary duties and responsibilities hereunder and (ii)
involve Executive providing investment advisory services except as may be approved by the
Compensation Committee of CAM (the “Compensation Committee”) (each such services a “Permitted
Activity”). Recognizing and acknowledging that it is essential for the protection and enhancement
of the name and business of the Company and the goodwill pertaining thereto, Executive shall
perform his duties under this Agreement professionally, in accordance with the applicable laws,
rules and regulations and such standards, policies and procedures established by Employer and the
industry from time to time. Executive will not perform any duties for any other business, other
than a Permitted Activity without the prior written consent of the Compensation Committee, but may
engage in charitable, civic or community activities, provided that such duties or activities do not
materially interfere with the proper performance of Executive’s duties under this Agreement.

          (c) Board Service. If so elected, Executive agrees that he will serve as a member of
the Board and/or the board of directors or managers, as applicable, of any of its subsidiaries and
affiliates, as well as to serve as a member of any committee of any of said boards, to which
Executive may be elected or appointed.

     3. Compensation and Benefits.

          (a) Base Salary. During the Term, Executive shall receive a base salary (“Base
Salary”), paid in accordance with the normal payroll practices of the Company, at an annual rate of
$250,000. The Base Salary shall be reviewed from time to time in accordance with the Company’s
policies and practices, but no less frequently than once annually and may be increased, but not
decreased (other than as part of an across-the-board reduction applicable to the Company’s senior
executive officers), at any time and from time to time by action of the Board or the Compensation
Committee. The term “Base Salary” shall include any such increases or any permitted decreases to
the Base Salary from time to time.

          (b) Annual Bonus Programs. In addition to the Base Salary, Executive shall be
eligible to participate throughout the Term in such annual bonus plans and programs (“Annual Bonus
Programs”), as may be in effect from time to time in accordance with the Company’s compensation
practices and the terms and provisions of any such plans or programs; provided that Executive’s
eligibility for and participation in each Annual Bonus Program shall be at a level and on terms and
conditions no less favorable than those for other senior executives, excluding the Portfolio
Managers Incentive Plan applicable to senior executives of the Company with portfolio management
responsibilities. If Executive achieves his target performance goals, as determined by the
Compensation Committee on an annual basis, Executive shall have a target annual bonus (“Target

- 2 -

 

Bonus”) under such Annual Bonus Programs equal to not less than 200% of his Base Salary and a
maximum annual bonus opportunity equal to not less than 150% of such Target Bonus.

          (c) Long Term Incentive Programs. In addition to the Base Salary and participation in
the Annual Bonus Programs, Executive shall be eligible to participate throughout the Term in such
long term bonus plans and programs including stock option, restricted stock unit, restricted
shares, performance stock unit and other similar programs (“Long Term Incentive Programs”), as may
be in effect from time to time in accordance with the Company’s compensation practices and the
terms and provisions of any such plans or programs; provided that Executive’s participation in each
Long Term Incentive Program shall be at a level and on terms and conditions no less favorable than
participation by other senior executives of the Company; and, provided further that subject to the
discretion of the Compensation Committee based upon the performance of the Company and the
Executive and competitive pay practices, it is expected that the Executive shall receive annually
Long Term Incentive Program awards with a value equal to 200% of Base Salary.

          (d) Other Incentive Plans. During the Term, Executive shall be eligible to
participate, subject to the terms and conditions thereof, in all other incentive plans and
programs, including such cash and deferred bonus programs as may be in effect from time to time
with respect to senior executives employed by the Company on as favorable a basis as provided to
other similarly situated senior executives so as to reflect Executive’s responsibilities.

          (e) Pension and Welfare Benefit Plans. During the Term, Executive and Executive’s
dependents, as the case may be, shall be eligible to participate in all pension and similar benefit
plans (qualified, non-qualified and supplemental), profit sharing, 401(k), as well as all medical
and dental, disability, group and executive life, accidental death and travel accident insurance,
and other similar welfare benefit plans and programs of the Company, subject to the terms and
conditions thereof, as in effect from time to time with respect to senior executives employed by
the Company so as to reflect Executive’s responsibilities.

          (f) Perquisites. During the Term, Executive shall be entitled to participate in
perquisite programs, as such are made available to senior executives of the Company.

          (g) Expenses. During the Term, Executive shall be entitled to receive prompt
reimbursement for all reasonable expenses incurred by him in accordance with the policies and
practices of the Company as in effect from time to time.

          (h) Vacation. During the Term, Executive shall be entitled to paid vacation in
accordance with the policies and practices of the Company as in effect from time to time with
respect to senior executives employed by the Company, but in no event shall such vacation time be
less than four (4) weeks per calendar year.

          (i) Certain Amendments. Nothing herein shall be construed to prevent the Company from
amending, altering, eliminating or reducing any plans, benefits or programs so long as Executive
continues to receive compensation and benefits consistent with Sections 3(a) through (i).

     4. Termination.

- 3 -

 

          (a) Permanent Disability. Either Executive or the Company may terminate Executive’s
employment, after having established Executive’s Permanent Disability, by giving notice of his or
its intention to terminate Executive’s employment. For purposes of this Agreement, Executive shall
be deemed to have a “Permanent Disability” for purposes of this Agreement if Executive has any
medically determinable physical or mental impairment that has lasted for a period of not less than
six (6) months in any twelve (12)-month period and that renders Executive unable to perform the
duties required under the Agreement. Such determination shall be made by written certification
(“Certificate”) of Executive’s Permanent Disability by a physician jointly selected by the Company
and the Executive; provided that if the Company and Executive cannot reach agreement on the
physician, the Certification shall be by a panel of physicians consisting of one physician selected
by the Company, one physician selected by the Executive and a third physician jointly selected by
those two physicians.

          (b) Cause.

               (i) The Company may terminate Executive’s employment at any time for Cause, if Cause as
defined below exists.

               (ii) For purposes of this Agreement, “Cause” means with respect to Executive the
occurrence of any of the following events:

                    (A) Executive’s conviction of any felony or other serious crimes;

                    (B) Executive’s material breach of any of the terms of the Agreement or any
other written agreement or material Company policy to which Executive and the
Company are parties or are bound, if such breach shall be willful and shall continue
beyond a period of twenty (20) days immediately after written notice thereof by the
Company to Executive;

                    (C) wrongful misappropriation by Executive of any money, assets, or other
property of the Company or a client of the Company;

                    (D) willful actions of failure to act by the Executive which subject the
Executive or the Company to censure by the Securities and Exchange Commission as
described in and pursuant to Section 203(e) or 203(f) of the Investment Advisers Act
of 1940 or Section 9(b) of the Investment Company Act of 1940 or to censure by a
state securities administrator pursuant to applicable state securities laws or
regulations;

                    (E) Executive’s commission of fraud or gross moral turpitude; or

                    (F) Executive’s continued willful failure to substantially perform Executive’s
duties under this Agreement after receipt of written notice thereof and an
opportunity to so perform.

               (iii) Cause shall be determined by the affirmative vote of at least seventy five
percent (75%) of the members of the Board (excluding the Executive, if a Board

- 4 -

 

member, and excluding any member of the Board involved in events leading to the Board’s
consideration of terminating Executive for Cause). Executive shall be given twenty (20)
days written notice of the Board meeting at which Cause shall be decided (which notice shall
be deemed to be notice of the existence of Cause if Cause is found to exist by the Board),
and shall be given an opportunity prior to the vote on Cause to appear before the Board,
with or without counsel, at Executive’s election, to present arguments on his own behalf.
The notice to Executive of the Board meeting shall include a description of the specific
reasons for such consideration of Cause. The pendency of the notice period described herein
shall not prevent or delay the Company’s ability to enforce the Restrictive Covenants
contained herein.

               (iv) For purposes of this Section 4(b), no act or failure to act, on the part of
Executive, shall be considered willful if it is done, or omitted to be done, by him in good
faith and with a reasonable belief that his action or omission was in the best interests of
the Company.

          (c) Good Reason.

               (i) Executive may terminate Executive’s employment at any time for Good Reason, if:

               (A) (1) An event or condition occurs which constitutes any of (B)(1) through
(B)(5) below; (2) Executive provides the Company with written notice pursuant to
Section 15(d) that he intends to resign for Good Reason and such written notice
includes (I) a designation of at least one of (B)(1) through (B)(5) below (the
“Designated Section”) and (II) specifically describes the events or conditions
Executive is relying upon to satisfy the requirements of the Designated Section(s);
(3) as of the twentieth (20th) day following the date notice is given by Executive
to the Company, such events or conditions have not been corrected in all material
respects; and (4) Executive’s resignation is effective within ninety (90) days of
the date Executive first has actual knowledge of the occurrence of the first event
or condition upon which Executive relies upon to satisfy any of the Designated
Section(s).

               (B) “Good Reason” shall mean the occurrence of any of the following without the
express written consent of Executive:

                    (1) any material breach by the Company of the Agreement (including any
reduction in Executive’s Base Salary, Target Bonus opportunity or maximum
bonus opportunity);

                    (2) any material adverse change in the status, position or
responsibilities of Executive, including a change in Executive’s reporting
relationship;

- 5 -

 

                    (3) assignment of duties to Executive that are materially inconsistent
with Executive’s position and responsibilities described in this Agreement;

                    (4) the failure of the Company to assign this Agreement to a successor
to the Company or failure of a successor to the Company to explicitly assume
and agree to be bound by this Agreement;

                    (5) requiring Executive to be principally based at any office or
location more than forty (40) miles from the current offices of the Company
in Naperville, Illinois; or

                    (6) delivery by the Company of written notice to Executive to cease the
automatic extension provision set forth in Section 1 above.

          (d) Termination by Executive Without Good Reason. Executive may, at any time without
Good Reason, by at least thirty (30) days’ prior notice, voluntarily terminate this Agreement
without liability.

          (e) Termination by the Company Without Cause. The Company may terminate Executive’s
employment at any time without Cause.

          (f) Notice of Termination. Any termination of Executive’s employment by the Company
for Permanent Disability or for or without Cause, or by Executive for Disability or for or without
Good Reason, shall be communicated by a Notice of Termination to the other party hereto given in
accordance with Section 15(d). For purposes of this Agreement, a “Notice of Termination” means a
written notice which (i) indicates the specific termination provision in this Agreement relied
upon; (ii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis
for termination of Executive’s employment under the provision so indicated; and (iii) specifies the
Date of Termination (defined below); provided, such Notice of Termination may be conditional if
coupled with a notice of the Board’s consideration of “Cause” or Executive’s intention to resign
for “Good Reason,” as the case may be, as provided above.

          (g) Date of Termination. “Date of Termination” means the date Notice of Termination
is given pursuant to Section 15(d) or any later date specified therein; provided, (i) any Notice of
Termination pursuant to Section 4(a) shall be effective ninety (90) days after the date given, (ii)
any Notice of Termination pursuant to Section 4(b) or Section 4(c) shall be effective not less than
twenty (20) days after the date given, (iii) any Notice of Termination pursuant to Section 4(d)
shall be effective not less than thirty (30) days after the date given, and (iv) in every other
case any Notice of Termination shall be effective not more than fifteen (15) days after the date
given. Executive’s Date of Termination shall be the date of his death if applicable.

     5. Obligations of the Company upon Termination. Executive’s entitlements upon
termination of employment are set forth below. Except to the extent otherwise provided in this
Agreement, all benefits, including stock option grants, restricted shares, restricted stock units
and awards under the Long Term Incentive Programs, shall be subject to the terms and conditions of
the

- 6 -

 

plan or arrangement under which such benefits accrue, are granted or are awarded. For
purposes of this Section 5, the term “Accrued Obligations” shall mean, as of the Date of
Termination, (i) Executive’s full Base Salary through the Date of Termination, at the rate in
effect at the time Notice of Termination is given (disregarding any reduction constituting Good
Reason), to the extent not theretofore paid, (ii) the amount of any bonus, incentive compensation,
deferred compensation and other cash compensation earned (and not forfeited hereunder) by Executive
as of the Date of Termination to the extent not theretofore paid, and (iii) any vacation pay,
expense reimbursements and other cash entitlements accrued by Executive as of the Date of
Termination to the extent not theretofore paid. For purposes of determining an Accrued Obligation
under this Section 5, amounts shall be deemed to accrue ratably over the period during which they
are earned (and not forfeited hereunder), but no discretionary compensation shall be deemed earned
or accrued until it is specifically approved by the Board or the Compensation Committee in
accordance with the applicable plan, program or policy.

          (a) Death. If Executive’s employment is terminated by reason of Executive’s death,
then this Agreement shall terminate without further obligations by the Company to Executive’s legal
representatives under this Agreement, except as set forth in this Section 5(a) or as contained in
an applicable Company plan or program which takes effect at the date of his death, but in no event
shall the Company’s obligations be less than those provided by this Agreement.

               (i) Executive’s Accrued Obligations not theretofore paid;

               (ii) from and after the Date of Termination, Executive’s surviving spouse, other named
beneficiaries or other legal representatives, as the case may be, shall be entitled to
receive those benefits payable to them under the provisions of any plan or program described
in Section 3 above;

               (iii) Executive’s eligible dependents shall receive continuation of medical benefits
upon the same terms as exist immediately prior to the termination of employment for the
eighteen (18)-month period immediately following the Date of Termination; and

               (iv) all unexercised stock options and all unpaid restricted shares, restricted stock
units and other equity-incentive compensation awards theretofore granted to Executive shall
be vested or forfeited, as the case may be, and any vested stock options shall be
exercisable, in accordance with the provisions of the applicable agreement or award.

          (b) Permanent Disability. If Executive’s employment is terminated by reason of
Executive’s Disability, then Executive shall be entitled to receive as of the Date of Termination:

               (i) Executive’s Accrued Obligations not theretofore paid;

               (ii) disability benefits, if any, at least equal to those then provided by the Company
to disabled executives and their families;

               (iii) Executive and Executive’s eligible dependents shall be entitled to receive those
benefits payable to them under the provisions of any applicable plan or program described in
Section 3 and above and shall receive continuation of medical benefits

- 7 -

 

upon the same terms as exist immediately prior to the termination of employment for the
eighteen (18) month period immediately following the Date of Termination; and

               (iv) all unexercised stock options and all unpaid restricted shares, restricted stock
units and other equity-incentive compensation awards theretofore granted to Executive shall
be vested or forfeited, as the case may be, and any vested stock options shall be
exercisable, in accordance with the provisions of the applicable agreement or award.

          (c) Cause/Other Than for Good Reason. If Executive’s employment is terminated for
Cause by the Company or if Executive terminates Executive’s employment without Good Reason, then
the Company shall pay Executive all Accrued Obligations. All unexercised stock options and all
unpaid restricted shares, restricted stock units and other equity-incentive compensation awards
theretofore awarded to Executive shall be vested or forfeited, as the case may be, and any vested
stock options shall be exercisable, in accordance with the provisions of the applicable agreement
or award.

          (d) Other Than for Cause, Death or Permanent Disability; For Good Reason. If the
Company terminates Executive’s employment other than for Cause or Permanent Disability or if
Executive terminates; Executive’s employment for Good Reason, then:

               (i) The Company shall pay to Executive the following amounts:

                    (A) Executive’s Accrued Obligations not theretofore paid; and

                    (B) an amount (subject to reduction as provided in Section 5(b)(iv)) equal to
one and one-half (1.5) times the Executive’s Base Salary at the highest annual rate
in effect at any time during the twenty-four (24)-month period ending on the date
the Notice of Termination is given, which amount shall be payable in eighteen (18)
monthly installments commencing with the month following the Date of Termination
(such eighteen (18)-month period, the “Salary Continuation Period”);

                    (C) a pro-rated Target Bonus for the year of termination (which Target Bonus is
to be based on the Base Salary used under paragraph (i)(B) above), payable at the
time bonuses are paid to other senior executives;

               (ii) the Company shall provide to Executive the health and welfare benefits (or, if
such benefits are not available, the value thereof in cash) specified in Section 3(e) to
which Executive is entitled as of the Date of Termination during the Salary Continuation
Period, provided that the amount of the monthly payments pursuant to Section 5(d)(i)(B)
above shall be reduced by the employee’s portion of the cost of such benefits, which
Executive would be required to pay if he were actually employed during such period; provided
that, such benefits will cease when such Salary Continuation Period ends, at which time a
COBRA qualifying event shall be deemed to occur;

               (iii) all unexercised stock options and all unpaid restricted shares, restricted stock
units and other equity-incentive compensation awards theretofore granted to

- 8 -

 

Executive shall be vested or forfeited, as the case may be, and any vested stock
options shall be exercisable, in accordance with the provisions of the applicable agreement
or award.

               (iv) in the event the Executive shall commence employment with or otherwise provide
compensated services on a full-time basis during the Salary Continuation Period to any
person or entity, other than the Company or CAM or in connection with any Permitted
Activity, then the Executive shall notify the Company in writing and the monthly payments
described in paragraph (i)(B) above shall cease, and in lieu of monthly payments then
remaining to be paid, the Company shall pay a lump sum cash payment within ten (10) business
days to Executive equal to fifty percent (50%) of the aggregate amount of such remaining
payments; and

               (v) the compensation and benefits described in this Section 5(d) shall be in lieu of
compensation and benefits provided under any severance plan or agreement of the Company.

          (e) Qualified Change of Control.

               (i) If (I) Executive is terminated by the Company without Cause or Executive resigns
for Good Reason during the period commencing on a Qualified Change of Control and ending on
the second (2nd) anniversary of the Qualified Change of Control (such two (2) year period
being the “Protection Period” hereunder) or (II) Executive reasonably demonstrates that such
termination of employment (or event constituting Good Reason) prior to a Qualified Change of
Control was at the request of a third party who was taking steps reasonably calculated to
effect a Qualified Change of Control and a Qualified Change of Control actually occurs (each
a “Qualifying Termination”), then Executive shall be entitled to receive:

                    (A) a pro-rata annual bonus for the year of termination based on the bonus
amount determined under Section 5(e)(i)(B)(II) below;

                    (B) an amount in cash equal to three (3) times the sum of (I) Executive’s
annual Base Salary (at the highest annual rate in effect at any time during the
twenty-four (24)-month period ending on the date the Notice of Termination is given
and (II) annual Target Bonus (which Target Bonus is to be based on such Base Salary)
or if greater, the actual bonus earned with respect to the fiscal year immediately
preceding the Change in Control, and

                    (C) continuation of medical benefits and dental until the second anniversary of
the Date of Termination upon the same terms as exist for Executive immediately prior
to the Date of Termination.

               (ii) The Company shall continue to have all other rights available hereunder (including
all rights under the Restrictive Covenants and any restrictive covenants set forth in any
plan, award and agreement applicable to Executive, at law or in equity).

- 9 -

 

               (iii) The amounts described in Section 5(e)(i)(A) and (B) shall be paid in a lump sum
within ten (10) days after the Date of Termination. Such amounts or benefits shall not be
subject to mitigation or offset, except that medical benefits may be offset by comparable
benefits obtained by Executive in connection with subsequent employment.

               (iv) Anything set forth in any equity plan, equity award or any other provision of this
Agreement between the Company and Executive to the contrary notwithstanding, all of
Executive’s outstanding equity grants shall fully vest upon the occurrence of a Qualified
Change of Control (to the extent not previously vested). In addition, on the Date of
Termination, all options theretofore granted to Executive and not exercised by Executive
shall become fully vested and all other equity-based compensation (including restricted
shares and restricted stock units) granted to Executive prior to the Date of Termination
which had not vested shall become fully vested and non-forfeitable, and shall be exercisable
or payable in accordance with the terms of the applicable award or agreement.

               (v) “Qualified Change of Control” shall be deemed to have occurred in the event that
any person, entity or group shall become the beneficial owner of such number of shares of
Class A and/or Class B Common Stock, and/or any other class of stock of CAM, then
outstanding that is entitled to vote in the election of directors (or is convertible into
shares so entitled to vote) as together possess more than fifty percent (50%) of the voting
power of all of the then outstanding shares of all such classes of voting stock of CAM so
entitled to vote. For purposes of the preceding sentence, “person, entity or group” shall
not include (i) any employee benefit plan of the Company or (ii) the Calamos Family; and for
purposes of this paragraph (v) “group” shall mean persons who act in concert as described in
Section 14(d)(2) of the 1934 Act and “Calamos Family” shall mean John P. Calamos, Sr., Nick
P. Calamos and/or John P. Calamos, Jr., and their respective spouses and lineal descendants,
and each corporation, trust or other entity controlled by any of the foregoing individuals.

               (vi) The compensation and benefits described in Section 5(e) shall be in lieu of
compensation and benefits provided otherwise for a termination under Section 5(d) of this
Agreement and any other severance plan or agreement of the Company.

          (f) General Release. Executive acknowledges and agrees that Executive’s right to
receive severance pay and other benefits pursuant to Section 5(d) or (e) of this Agreement (other
than his Accrued Obligations) is contingent upon Executive’s compliance with the Restrictive
Covenants set forth in Section 11 of this Agreement and Executive’s execution and acceptance of the
terms and conditions of, and the effectiveness of, a general release in a form substantially
similar to that attached hereto as Exhibit A with such changes as may be necessary under
then-existing law (the “Release”). If Executive fails to comply with the covenants set forth in
Section 11 or if Executive fails to execute the Release or revokes the Release during the seven
(7)-day period following his execution of the Release, then Executive shall not be entitled to any
severance payments or other benefits to which Executive would otherwise be entitled under Section
5(d) or (e).

- 10 -

 

     6. Additional Payments. If it is determined that any amount, right or benefit paid or
payable (or otherwise provided or to be provided) to Executive by the Company or any of its
affiliates under this Agreement or any other plan, program or arrangement under which Executive
participates or is a party (collectively, the “Payments”), would constitute an “excess parachute
payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended from
time to time (the “Code”), subject to the excise tax imposed by Section 4999 of the Code, as
amended from time to time (the “Excise Tax”), then Executive shall be entitled to receive an
additional payment from the Company (a “Gross-Up Payment”) in an amount such that, after payment by
Executive of all taxes (including any interest or penalties imposed with respect to such taxes),
including any income and employment taxes (and any interest and penalties imposed with respect
thereto) and Excise Tax imposed upon the Gross-Up Payment (and any interest and penalties imposed
with respect thereto), Executive retains an amount of the Gross-Up Payment equal to the Excise Tax
(including any interest and penalties imposed with respect thereto) imposed upon the Payments. All
determinations required to be made under this Section 6, including whether and when a Gross-Up
Payment is required, the amount of such Gross-Up Payment and the assumptions to be utilized in
arriving at such determination, shall be made by an independent, nationally recognized accounting
firm mutually acceptable to the Company and Executive (the “Auditor”). The Auditor shall provide
detailed supporting calculations to both the Company and Executive within fifteen (15) business
days of the receipt of notice from Executive or the Company that there has been a Payment, or such
earlier time as is requested by the Company. All fees and expenses of the Auditor shall be paid by
the Company. Any Gross-Up Payment, as determined pursuant to this Section 6, shall be paid by the
Company to Executive within five (5) days of the receipt of the Auditor’s determination. All
determinations made by the Auditor shall be binding upon the Company and Executive; provided that
if, notwithstanding the Auditor’s initial determination, the Internal Revenue Service (or other
applicable taxing authority) determines that an additional Excise Tax is due with respect to the
Payments, then the Auditor shall recalculate the amount of the Gross-Up Payment based upon the
determinations made by the Internal Revenue Service (or other applicable taxing authority) after
taking into account any additional interest and penalties (the “Recalculated Amount”) and the
Company shall pay to Executive the excess of the Recalculated Amount over the Gross-Up Payment
initially paid to Executive within five (5) days of the receipt of the Auditor’s recalculation of
the Gross-Up Payment.

     7. Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit
Executive’s continuing or future participation in any benefit, bonus, incentive or other plan or
program provided by the Company and for which Executive may qualify, nor shall anything herein
limit or otherwise affect such rights as Executive may have under any stock option, restricted
shares or other agreement with the Company or any of its affiliated companies. Except as otherwise
provided herein, amounts and benefits which are vested benefits or which Executive is otherwise
entitled to receive under any plan, program, agreement or arrangement of the Company at or
subsequent to the Date of Termination shall be payable in accordance with such plan or program.

     8. No Set-Off; No Mitigation. Except as provided herein, the Company’s obligation to
make the payments provided for in this Agreement and otherwise to perform its obligations hereunder
shall not be affected by any circumstances, including any set-off, counterclaim, recoupment,
defense or other right which the Company may have against Executive or others. In no event shall
Executive be obligated to seek other employment or take any other action by way of

- 11 -

 

mitigation of the amounts payable to Executive under any of the provisions of this Agreement,
and such amounts shall not be reduced whether or not Executive obtains other employment except as
provided in Section 5(d)(iv).

     9. Arbitration of Disputes. Except as set forth in Section 11(g), any controversy or
claim arising out of or related to (A) this Agreement, (B) the breach thereof or (C) Executive’s
employment with the Company or the termination of such employment shall be settled by arbitration
in Chicago, Illinois, before a single arbitrator administered by the American Arbitration
Association (“AAA”) under its National Rules for the Resolution of Employment Disputes, effective
as of January 1, 2004 (the “Employment Rules”), and judgment on the award rendered by the
arbitrator may be entered in any court having jurisdiction thereof. Notwithstanding the foregoing,
Rule R-34 of the AAA’s Commercial Arbitration Rules amended and restated as of July 1, 2003
(instead of Rule 27 of the Employment Rules), shall apply to interim measures. References herein
to any arbitration rule(s) shall be construed as referring to such rule(s) as amended or renumbered
from time to time and to any successor rules. References to the AAA include any successor
organization.

     10. Entire Agreement. Executive acknowledges and agrees that this Agreement includes
the entire agreement and understanding between the parties and supercedes any prior agreements,
written or oral, with respect to the subject matter hereof, including the termination of
Executive’s employment during the Term and all amounts to which Executive shall be entitled whether
during the Term or thereafter and any restrictive covenants to which Executive may be subject.
Executive also acknowledges and agrees that Executive’s right to receive severance pay and other
benefits pursuant to Section 5(d)(i)(B), Section 5(d)(ii), Section 5(d)(iv), and Section 5(e)(i)(B)
and (C) of this Agreement is contingent upon Executive’s compliance with the Restrictive Covenants
set forth in Section 11 of this Agreement.

     11. Executive’s Covenants.

          (a) Executive’s Acknowledgment. Executive agrees and acknowledges that in order to
assure the Company that it will retain its value and that of the Business as a going concern, it is
necessary that Executive not utilize special knowledge of the Business and its relationships with
customers to compete with the Company. For purposes of this Agreement, “Business” means the
provision of investment management, investment advisory, portfolio management, financial analysis,
research or similar services relating to the investment of international or domestic equity or debt
securities or other activities or services of the type provided by the Company or its affiliates to
its clients on a worldwide basis including, without limitation, open-end and closed-end, registered
and unregistered, investment companies (“Funds”), and the direct and indirect sale and/or
distribution of equity interests in the Funds; and “Competing Activity” or “Competing Activities”
means engaging in the Business. Executive further acknowledges that:

               (i) the Company is and will be engaged in the Business during the Term and thereafter;

               (ii) Executive will occupy a position of trust and confidence with the Company, and
during the Term, Executive will become familiar with the Company’s trade secrets and with
other proprietary and Confidential Information concerning the Company and the Business;

- 12 -

 

               (iii) the agreements and covenants contained in this Section 11 are essential to
protect the Company, the near permanent client relationships and the goodwill of the
Business and compliance with such agreements and covenants will not impair Executive’s
ability to procure subsequent and comparable employment; and

               (iv) Executive’s employment with the Company has special, unique and extraordinary
value to the Company and the Company would be irreparably damaged if Executive were to
provide services to any person or entity in violation of the provisions of this Agreement.

          (b) Confidential Information. For purposes of this Agreement, “Confidential
Information” shall mean trade secrets and other proprietary information concerning the products,
processes or services of the Company or any of its affiliates, which information (i) has not been
made generally available to the public, and is useful or of value to Company’s current or
anticipated business activities or of those of any affiliate or client of Company or (ii) has been
identified to Executive as confidential, either orally or in writing, including but not limited to,
computer programs; research and other statistical data and analyses; marketing, organizational or
other research and development, or business plans; personnel information, including the identity of
other Executives of the Company, their responsibilities, competence, abilities, and compensation;
financial, accounting and similar records of Company, its affiliates and/or any Fund or account
managed by the Company or its affiliates (such Funds or accounts referred to herein as “Company
Funds”); current and prospective client lists and information on clients and their Executives;
client investment objectives, the nature of their investment portfolios and contractual agreements
with the Company or its affiliates; information concerning planned or pending investment products,
acquisitions or divestitures; and information concerning the marketing and/or sale or distribution
of equity interests in the Funds. Confidential Information shall not include information which:
(a) is in or hereafter enters the public domain through no fault of Executive; (b) is obtained by
Executive from a third party having the legal right to use and disclose the same; or (c) is in the
possession of Executive prior to receipt from the Company (as evidenced by Executive’s written
records pre-dating the date of employment). All notes, reports, plans, published memoranda or
other documents created, developed, generated or held by Executive during employment, concerning or
related to the Company’s or its affiliates business, and whether containing or relating to
Confidential Information or not, and all tangible personal property of the Company or its
affiliates entrusted to Executive or in Executive’s direct or indirect possession or control, are
the property of the Company, and will be promptly delivered to the Company and not thereafter used
by Executive upon termination of Executive’s employment for any reason whatsoever.

          (c) Non-Disclosure. Executive agrees that during employment with the Company
(including any employment following the Term) and at all times thereafter, Executive shall not
reveal to any competitor or other person or entity (other than current employees of the Company)
any Confidential Information regarding Clients (as defined herein) that Executive obtains while
performing services for the Company, except as may be required in Executive’s reasonable judgment
to fulfill his duties hereunder.

          (d) Non-Compete. Except as otherwise provided below or approved by the Compensation
Committee in writing, during the term of Executive’s employment with the Company

- 13 -

 

and, after such termination of employment, for a period after such termination ending upon the
eighteen (18)-month anniversary of the Date of Termination (such period the “Post-Termination
Non-Compete Period”), Employee shall not engage in, or own or control any interest in, or act as an
officer, director or employee of, or consultant, advisor or lender to any firm, corporation,
institution, business or entity (each an “Entity”) directly or indirectly engaged in the Business.

          (e) “Calamos” Name. Employee understands that Company’s name, the name of any Funds
and accounts managed by the Company (such proprietary Funds, accounts and any other client account
managed by the Company, the “Company Accounts”) and the investment performance of any Company
Account and Company’s relationships with its clients and employees are extremely valuable and are
the result of the expenditure of substantial time, effort and resources by the Company. Therefore,
during the period of Executive’s employment and the Post-Termination Non-Compete Period, Employee
agrees that he will not, directly or indirectly, on his or her behalf or another’s behalf:

               (i) solicit the Company’s or its affiliates’ clients to provide, offer to provide, or
provide to any such clients, services or products of the kind generally offered or provided
by Company or its affiliates; or

               (ii) solicit, induce or encourage any person who is then in the employ of the Company
to leave his or her employment, agency or office with Company, or employ or be employed with
any such person or persons, for the purpose of providing or offering to provide, services or
products of the kind generally offered by Company or its affiliates; or

               (iii) refer to the Company, “Calamos”, “Calamos Investments” or “Calamos Asset
Management” or any other name used by the Company, any Company Account or the investment
performance thereof, or Executive’s prior association with the Company or its affiliates or
any Company Account in any public filing or in any advertisement or marketing of any service
or product which is a Competing Activity; or

               (iv) maintain a relationship of the type described in paragraph (d) above with any
Entity which refers to the Company, any Company Account or the investment performance
thereof, or Executive’s prior association with Company or any Company Account in any public
filing or in any advertisement or marketing of any service or product which is a Competing
Activity.

          (f) Notwithstanding the foregoing, nothing in paragraph (d) or (e) of this Section 11 shall
prohibit Executive from engaging in Permitted Activities or prohibit Executive or any other person
or Entity from referring to information described in said paragraphs, provided such reference is
not made in advertising or marketing in newspapers, magazines, trade journals or other public
media, or direct advertising or marketing materials, and such information is limited to the extent
that (i) such information is contained in any SEC filings previously made by the Company or (ii)
reference to such information is otherwise required by law. The Company and Employee agree that,
based on applicable rules, regulations and court decisions in effect as of the date this Agreement
is entered into, information relating to the investment performance of any Company Account is not
information reference to which “is otherwise required by law” within the meaning of said clause
(ii). During the Post-Termination Non-Compete Period, nothing in paragraph (d) of this

- 14 -

 

Section 11
shall prohibit Executive from directly or indirectly owning or controlling any interest in, or
acting as an officer, director, employee, consultant or advisor of, or otherwise rendering services
to any Entity which is directly or indirectly involved in Competing Activities, if, prior to
commencing such relationship, Executive has delivered to such Entity a copy of Section 11 of this
Agreement and then, for only for so long as Executive (A) complies with his other obligations under
this Agreement; (B) does not directly or indirectly take or otherwise participate in or assist such
Entity with respect to any acts or actions described in Section 11(e); and (C) upon request of the
Company, provides the Company with a written representation of his compliance with his obligations
and restrictions set forth in this Agreement and such other information as is reasonably requested
by the Company to demonstrate such compliance by Executive. In addition, Section 11 shall not
prohibit Executive from being a passive owner of not more than an aggregate of two percent (2%) of
the outstanding shares of any class of securities of an Entity which is publicly traded, so long as
Executive does not have any active participation in the business of such Entity.

          (g) Non-Exclusive Remedy for Restrictive Covenants. Executive acknowledges and agrees
that the covenants set forth in this Section 11 (collectively, the “Restrictive Covenants”) are
reasonable and necessary for the protection of the Company’s business interests, that irreparable
injury will result to the Company if Executive breaches any of the terms of the Restrictive
Covenants, and that in the event of Executive’s actual or threatened breach of any such Restrictive
Covenants, the Company will have no adequate remedy at law. Executive accordingly agrees that in
the event of any actual or threatened breach by him of any of the Restrictive Covenants, the
Company shall be entitled to immediate temporary injunctive and other equitable relief, without the
necessity of showing actual monetary damages or the posting of bond. Nothing contained herein
shall be construed as prohibiting the Company from pursuing any other remedies available to it for
such breach or threatened breach, including the recovery of damages. The duration of a Restrictive
Covenant shall be extended by such time during which such breach or threatened breach continues
without cure by Executive.

     12. Indemnification.

          (a) The Company agrees that if Executive is made a party to or involved in, or is threatened
to be made a party to or otherwise to be involved in, any action, suit or proceeding, whether
civil, criminal, administrative or investigative (a “Proceeding”), by reason of the fact that he is
or was a director, officer or employee of the Company or is or was serving at the request of the
Company as a director, officer, member, employee or agent of another corporation, limited liability
corporation, partnership, joint venture, trust or other enterprise, including service with respect
to employee benefit plans, whether or not the basis of such Proceeding is Executive’s alleged
action in an official capacity while serving as a director, officer, member, employee or agent,
Executive shall be indemnified and held harmless by the Company against any and all liabilities,
losses, expenses, judgments, penalties, fines and amounts reasonably paid in settlement in
connection therewith, and shall be advanced reasonable expenses (including attorneys’ fees) as and
when incurred in connection therewith, to the fullest extent legally permitted or authorized by the
Company’s By-laws or, if greater, by the laws of the State of Delaware, as may be in effect from
time to time. The rights conferred on Executive by this Section 12(a) shall not be exclusive of
any other rights which Executive may have or hereafter acquire under any statute, the By-laws,
agreement, vote of stockholders or disinterested directors, or otherwise. The indemnification and
advancement of

- 15 -

 

expenses provided for by this Section 12 shall continue as to Executive after he ceases to be
a director, officer or employee and shall inure to the benefit of his heirs, executors and
administrators.

          (b) During the Term and thereafter for the duration of any statute of limitations or other
period during which a claim might be successfully brought against Executive, Executive shall be
covered to the same extent as directors by any directors’ and officers’ liability insurance policy
maintained by the Company from time to time.

     13. Successors.

          (a) This Agreement is personal to Executive and, without the prior written consent of the
Company, shall not be assignable by Executive otherwise than by will or the laws of descent and
distribution. This Agreement shall inure to the benefit of and be enforceable by Executive’s legal
representatives.

          (b) This Agreement shall inure to the benefit of and be binding upon the Company and its
successors. It shall not be assignable by the Company or its successors except in connection with
the sale or other disposition of all or substantially all the assets or business of the Company.
The Company shall require any successor to all or substantially all of the business or assets of
the Company, whether direct or indirect, by purchase, merger, consolidation, acquisition of stock,
or otherwise, by an agreement in form and substance reasonably satisfactory to Executive, expressly
to assume and agree to perform this Agreement in the same manner and to the same extent as the
Company would be required to perform if no such succession had taken place.

     14. Amendment; Waiver. This Agreement contains the entire agreement between the
parties with respect to the subject matter hereof and may be amended, modified or changed only by a
written instrument executed by Executive and the Company. No provision of this Agreement may be
waived except by a writing executed and delivered by the party sought to be charged. Any such
written waiver will be effective only with respect to the event or circumstance described therein
and not with respect to any other event or circumstance, unless such waiver expressly provides to
the contrary.

     15. Miscellaneous.

          (a) The provisions of Section 5 (Obligations of the Company upon Termination), Section 8 (No
Set-Off; No Mitigation), Section 9 (Arbitration of Disputes), Section 11 (Executive’s Covenants),
Section 12 (Indemnification), Section 13 (Successors), Section 14 (Amendment; Waiver) and this
Section 15(a) shall survive the termination Executive’s employment with the Company for any reason,
or the expiration of the Term of the Agreement pursuant to Section 1, and shall thereafter remain
in full force and effect.

          (b) In the event of any inconsistency between this Agreement and any other agreement, plan,
program, policy or practice (collectively, “Other Provision”) of the Company, the terms of this
Agreement shall control unless such Other Provision provides otherwise by a specific reference to
this Section 15(b).

- 16 -

 

          (c) This Agreement shall be governed by and construed in accordance with the laws of the State
of Illinois (except Section 12 which shall be governed by the laws of the State of Delaware),
without reference to principles of conflict of laws. The captions of this Agreement are not part
of the provisions hereof and shall have no force or effect.

          (d) All notices, demands or other communications to be given or delivered under or by reason
of the provisions of this Agreement shall be in writing and shall be deemed to have been duly given
(i) the following business day after deposit from within the United States with a reputable express
courier service (charges prepaid), (ii) three (3) days after mailing by certified or registered
mail, return receipt requested and postage prepaid, or (iii) upon receipt in all other cases. Such
notices, demands and other communications shall be sent to the addresses indicated below:

If to the Company:

Calamos Advisors LLC

Calamos Asset Management, Inc.

2020 Calamos Court

Naperville, IL 60563

Attn: General Counsel

If to Executive:

Address per the Company records

or to such other address or to the attention of such other person as the recipient party shall have
specified by prior written notice to the sending party.

          (e) Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction
will, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction will not invalidate or render unenforceable such provision in any other
jurisdiction.

          (f) All compensation payable to Executive from the Company shall be subject to all applicable
withholding taxes, normal payroll withholding and any other amounts required by law to be withheld.

          (g) This Agreement may be executed in multiple counterparts, each of which shall be deemed an
original, but all of which taken together shall constitute one and the same Agreement.

          (h) The descriptive headings in this Agreement are inserted for convenience of reference only
and are not intended to be part of or to affect the meaning or interpretation of this Agreement.
The use of the word “including” in this Agreement shall be by way of example rather than by
limitation.

          (i) The language used in this Agreement will be deemed to be the language chosen by the
parties hereto to express their mutual intent, and no rule of strict construction will be

- 17 -

 

applied against any party hereto. Neither Executive nor the Company shall be entitled to any
presumption in connection with any determination made hereunder in connection with any arbitration,
judicial or administrative proceeding relating to or arising under this Agreement.

[Signature Page Follows]

- 18 -

 

     IN WITNESS WHEREOF, each of the parties hereto has duly executed this Executive Employment
Agreement as of the date and year first set forth above.

	 	 	 	 	 	 	 	 	 
	 	 	CALAMOS ADVISORS LLC	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 

	 	Its:
	 	 

	 	 	 	 
	 

	 	 	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	CALAMOS ASSET MANAGEMENT, INC	 	 	.	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 

	 	Its:
	 	 

	 	 	 	 
	 

	 	 	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	EXECUTIVE 

JAMES F. BAKA	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

- 19 -

 

Exhibit A

GENERAL RELEASE OF ALL CLAIMS

     1. For valuable consideration, the adequacy of which is hereby acknowledged, the
undersigned (“Executive”), for himself, his spouse, heirs, administrators, children,
representatives, executors, successors, assigns, and all other persons claiming through
Executive, if any (collectively, “Releasers”), does hereby release, waive, and forever
discharge Calamos Asset Management, Inc., Calamos Holdings LLC and Calamos Advisors LLC
(collectively, “Company”), Company’s Subsidiaries, parents, affiliates, related
organizations, employees, officers, directors, attorneys, successors, and assigns
(collectively, the “Releasees”) from, and does fully waive any obligations of Releasees to
Releasers for, any and all liability, actions, charges, causes of action, demands, damages,
or claims for relief, remuneration, sums of money, accounts or expenses (including
attorneys’ fees and costs) of any kind whatsoever, whether known or unknown or contingent or
absolute, which heretofore has been or which hereafter may be suffered or sustained,
directly or indirectly, by Releasers in consequence of, arising out of, or in any way
relating to Executive’s employment with Company or any of its affiliates and the termination
of Executive’s employment. The foregoing release and discharge, waiver and covenant not to
sue includes, but is not limited to, all claims and any obligations or causes of action
arising from such claims, under common law including wrongful or retaliatory discharge,
breach of contract (including but not limited to any claims under the Executive Employment
Agreement between the Company and Executive, dated ___, as amended from time to
time (the “Employment Agreement”) and any claims under any stock option and restricted
shares agreements between Executive and the Company) and any action arising in tort
including libel, slander, defamation or intentional infliction of emotional distress, and
claims under any federal, state or local statute including Title VII of the Civil Rights Act
of 1964, the Civil Rights Act of 1866 and 1871 (42 U.S.C. § 1981), the National Labor
Relations Act, the Age Discrimination in Employment Act (ADEA), the Fair Labor Standards
Act, the Americans with Disabilities Act of 1990, the Rehabilitation Act of 1973, the
Illinois Human Rights Act, or the discrimination or employment laws of any state or
municipality, and/or any claims under any express or implied contract which Releasers may
claim existed with Releasees. This also includes a release by Executive of any claims for
breach of contract, wrongful discharge and all claims for alleged physical or personal
injury, emotional distress relating to or arising out of Executive’s employment with Company
or the termination of that employment; and any claims under the WARN Act or any similar law,
which requires, among other things, that advance notice be given of certain work force
reductions. This release and waiver does not apply to any claims or rights that may arise
after the date Executive signs this General Release. The foregoing release does not apply
to (a) any claims or rights for severance pay, benefits, indemnification and any other
surviving rights now existing under the Employment Agreement, the organization documents of
the Company or any other agreement providing for indemnification regardless of when any
claim is filed, (b) any claims or rights under directors and officers liability insurance.

     2. Excluded from this release and waiver are any claims which cannot be waived by law,
including but not limited to the right to participate in an investigation conducted by

A-1

 

certain government agencies. Executive does, however, waive Executive’s right to any
monetary recovery should any agency (such as the Equal Employment Opportunity Commission)
pursue any claims on Executive’s behalf. Executive represents and warrants that Executive
has not filed any complaint, charge, or lawsuit against the Releasees with any government
agency or any court.

     3. Executive agrees never to sue Releasees in any forum for any claim covered by the
above waiver and release language, except that Executive may bring a claim under the ADEA to
challenge this General Release. If Executive violates this General Release by suing
Releasees, other than under the ADEA or as otherwise set forth in Section 1 hereof,
Executive shall be liable to the Company for its reasonable attorneys’ fees and other
litigation costs incurred in defending against such a suit. Nothing in this General Release
is intended to reflect any party’s belief that Executive’s waiver of claims under ADEA is
invalid or unenforceable, it being the interest of the parties that such claims are waived.

     4. Executive acknowledges and recites that:

          (a) Executive has executed this General Release knowingly and voluntarily;

          (b) Executive has read and understands this General Release in its entirety;

          (c) Executive has been advised and directed orally and in writing (and this
subparagraph (c) constitutes such written direction) to seek legal counsel and any
other advice he wishes with respect to the terms of this General Release before
executing it;

          (d) Executive’s execution of this General Release has not been forced by any
employee or agent of the Company, and Executive has had an opportunity to negotiate
about the terms of this General Release; and

          (e) Executive has been offered twenty-one (21) calendar days after receipt of
this General Release to consider its terms before executing it.

     5. This General Release shall be governed by the internal laws (and not the choice of
laws) of the State of Illinois, except for the application of pre-emptive Federal law.

     6. Executive shall have seven (7) days from the date hereof to revoke this General
Release by providing written notice of the revocation to the Company, as provided in Section
15(d) of the Employment Agreement, in which event this General Release shall be
unenforceable and null and void.

A-2

 

     PLEASE READ THIS AGREEMENT CAREFULLY. IT CONTAINS A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

	 	 	 	 	 	 	 
	Date:

	 	 	 	Executive:	 	 
	 

	 	 
	 	 	 	 

A-3

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