Document:

ex10-2.htm

    
      

    

    Exhibit 10.2

     

    
      

       

      2008
Long-Term Incentive Plan

       

       

      The
Long-Term Incentive Plan for 2008 will include restricted stock in the amounts
set forth in Schedule
A hereto comprised of 50% time-based restricted stock awards and 50%
performance-based restricted stock awards.

       

      
        	 	
                A.

              	
                Time-Based
      Restricted Stock Awards

              

      

       

      Executives
receive awards of restricted stock that vest in 16 equal quarterly
installments.

       

      
        	 	
                B.

              	
                Performance-Based
      Restricted Stock Awards

              

      

       

      Executives
receive awards of restricted stock that vest in 33% annual increments starting
with the year that includes the first anniversary of the grant
date.  Executives earn annual tranches of awards, which vest on each
of the first three anniversaries from the date of grant, to the extent that the
Company achieves certain revenue and EBITDA targets established by the Board of
Directors for each respective year in the performance cycle.  The
Company will either meet or not meet both goals in a given year.  With
respect to all shares of performance-based restricted stock that do not vest
during any of the three years, 50% of such shares will vest on the fourth
anniversary of the date of the grant.

       

      The
vesting of any restricted stock (including both time-based and
performance-based) is subject to the executive being an employee in good
standing on the date of vesting.Transition Services Agreement

 Exhibit 10.1 
 TRANSITION SERVICES AGREEMENT 
 THIS TRANSITION SERVICES AGREEMENT (the
“Agreement”) is made as of March 19, 2008 (the “Effective Date”) by and between ELECTRONIC ARTS INC., a Delaware corporation with offices at 209 Redwood Shores Parkway, Redwood City, CA 94062
(“Company” or “EA”) and WARREN JENSON (the “Jenson”). 
 A. Jenson is
EA’s Chief Financial and Administrative Officer (“CFO”). He has announced his intention to resign from his position and leave EA, and EA wishes to have him continue his employment through September 2008 in order to
ensure an orderly transition. 
 B. EA and Jenson desire to reach an agreement as to the rights, benefits and obligations of the parties arising out
of Jenson’s continued employment by EA. 
 NOW, THEREFORE, EA and Jenson agree as follows: 
 1. Term of Employment. The Company hereby agrees to employ Jenson, and Jenson hereby accepts employment with the Company, upon the terms set forth
in this Agreement, for a term to commence on March 24, 2008 (the “Commencement Date”) and expire on September 30, 2008 (the “Expiration Date”). The period between the Commencement Date and
Expiration Date shall be the “Term.” All unused paid time off (PTO) shall be paid out upon termination, per EA policy. Should the parties agree that Jenson’s employment shall continue beyond the Term, such employment
shall be at will and subject to the same terms and conditions for other executive employees employed at EA’s Redwood City, CA offices. 
 2. Title; Capacity; Duties. 
 2.1 Title. Jenson shall continue to serve as CFO, reporting to John
Riccitiello, until EA has appointed a new CFO and that person has commenced employment with EA. At the time a new CFO has commenced employment, Jenson will become the Special Finance Advisor, reporting to the CFO, through the remainder of the Term
(or earlier if the Agreement is terminated prior to the end of the Term). 
 2.2 Duties; Best Efforts and Company
Rules. Jenson agrees to devote his best efforts, attention and energies to the business and interests of the Company. In this regard, without limiting the foregoing, Jenson agrees to actively participate in the fiscal year end close, earnings
and financial reporting processes and shall provide to the Company signed certifications that are consistent with and reflect in all material respects the certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act. Jenson agrees to
abide by the rules, regulations, instructions, personnel practices and policies of the Company and any changes therein which may be adopted from time to time by the Company and which are not inconsistent with the terms of this Agreement. 

3. Compensation and Benefits. Jenson shall continue to receive the salary in effect on the Effective Date. Jenson shall continue to be entitled
to those benefits that are standard for executive persons in similar positions in the Company, including without limitation coverage under EA’s health, life insurance and disability plans and eligibility to participate in EA’s 401(k) plan.
He will be eligible to participate in EA’s discretionary bonus program for fiscal year 2008 at the discretionary bonus target in effect on the Effective Date. To receive payment of his bonus, Jenson must be employed at the time annual bonus
payments are made to executives. 

 4. Disability 
 In the event that Jenson becomes physically or mentally disabled or incapacitated such that he is unable to perform the services required of him under this Agreement, then three (3) months after the onset of said
physical or mental disability, this Employment Agreement will terminate; provided, however, that during this three (3) month period all compensation, benefits and other terms of this Agreement shall continue; however, such continued payments by
the Company shall be integrated with any disability, workers’ compensation, or other insurance payments received, such Chief Financial and Administrative Officer that the total amount does not exceed the compensation as provided by this
Agreement. 
 5. Termination of Employment. This Agreement (and Jenson’s employment with the Company) may only be terminated in
accordance with the provisions below. 
 (a) Termination Due to Jenson’s New Employment. If Jenson obtains
employment with a new employer during the Term, this Agreement (and Jenson’s employment with the Company) shall terminate upon the commencement of such new employment. In such event, Jenson shall be entitled to the compensation and benefits
otherwise payable to him under this Agreement through the last day of his actual employment with the Company. 
 (b)
Termination for Cause by the Company. The Company may terminate this Agreement for cause upon the occurrence of any of the following: 
  

	 	1.	An intentional act of fraud, embezzlements or theft; 

  

	 	2.	An act or omission constituting gross negligence or gross misconduct which is materially injurious to the Company, including any material breaches of this Employment Agreement;

  

	 	3.	Jenson’s death, disability or incapacity pursuant to Section 4 above. 

 If the Company terminates Jenson’s employment for cause pursuant to this section, the Company shall pay Jenson the compensation and
benefits otherwise payable to him under this Agreement through the last day of his actual employment by the Company. 
 (c)
Termination at Jenson’s Option. Jenson may terminate this Agreement at any time by giving twenty (20) business days written notice to the Company. In such event, Jenson shall be entitled to the compensation and benefits otherwise
payable to him under this Agreement through the last day of his actual employment with the Company. On or after receiving such notice from Jenson, the Company may pay Jenson’s compensation, benefits and option vesting continuation through the
effective date of his resignation and immediately terminate Jenson. 
 6. Proprietary Information and Developments. Jenson signed a
New Hire/Proprietary Information Agreement (“PIA”) upon commencement of employment with the Company, and this PIA will remain in full force and effect through the Term and thereafter, as applicable. 

 7. Forum Selection: Any and all legal action arising out of or relating to the validity,
interpretation, enforceability, or performance of this Transition Services Agreement shall be instituted in state court in San Mateo County or in federal court in the Northern District of California. 
 8. Notices. All notices required or permitted under this Agreement shall be in writing and shall be deemed effective upon personal delivery, upon
deposit of postage prepaid registered or certified mail in the United States Post Office, or by delivery from a recognized courier service, addressed to the other party at the address shown above, or at such other address or addresses as either
party shall designate to the other in accordance with this Section 8. 
 9. Entire Agreement; Severability. This Agreement
supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter of this Agreement. In case any provision of this Agreement shall be invalid, illegal or otherwise unenforceable, the validity, legality and
enforceability of the remaining provisions shall in no way be affected or impaired thereby. 
 10. Governing Law. This Agreement shall
be construed, interpreted and enforced in accordance with the laws of the state of California. 
 11. Indemnification and Insurance.
Any indemnification or fiduciary insurance maintained by the Company shall remain in effect as to Jenson to the same extent permitted by such applicable insurance policy and that said indemnification and/or fiduciary insurance remains in effect for
all officers and directors of the Company. 
 12. Counterparts. This Transition Services Agreement may be executed in counterparts,
and the counterparts, taken together, shall constitute the original. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement
as of the Effective Date set forth above. 
  

			
	ELECTRONIC ARTS INC.
		
	By:	 	/s/ Gabrielle Toledano
		
	Title:	 	EVP, Human Resources
		
	Dated:	 	March 21, 2008
	
	WARREN JENSON
	
	/s/ Warren Jenson
	Warren Jenson
		
	Dated:	 	March 23, 2008Stock-Based Compensation Plan

 
EXHIBIT 10.1 
 FREMONT MICHIGAN INSURACORP, INC. 
 STOCK-BASED COMPENSATION PLAN 
 November 18, 2003, as amended and restated
effective December 11, 2007 
  

	1.	PURPOSES 

 The general purposes of this Stock-Based
Compensation Plan (the “Plan”) are to encourage employees and non-employee directors of and consultants to Fremont Michigan InsuraCorp, Inc. (the “Company”) and its Affiliates (as defined below) to acquire a proprietary interest
in the Company in order to create an increased incentive to contribute to the Company's future success and prosperity, and to enhance the ability of the Company and its Affiliates to attract and retain exceptionally qualified individuals upon whom
the sustained progress, growth, and profitability of the Company depend, thus enhancing the value of the Company for the benefit of its stockholders. 
  

	2.	DEFINITIONS 

 “Affiliate”
means any entity in which the Company directly or indirectly has a significant equity interest under generally accepted accounting principles and any other entity in which the Company has a significant direct or indirect equity interest as
determined by the Committee. The term shall also include any entity which, with respect to the Company, satisfies the definitions of “parent corporation” or “subsidiary corporation” stated in Section 424 of the Code.

 “Award” means any Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Performance Award, Dividend
Equivalent, or Other Stock-Based Award granted under the Plan. 
 “Award Agreement” means a written agreement,
contract, or other instrument or document evidencing an Award. 
 “Board” means the Board of Directors of the
Company. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Committee” means the Board acting as a whole, unless a committee of the Company’s directors is designated by the Board (and
changed in the Board's discretion at any time and from time to time) to administer the Plan and composed of not less than two directors, each of whom is a “non-employee director" within the meaning of Rule 16b-3, or, to the extent provided in
Section 3 of the Plan, another director or group of directors to whom authority has been delegated pursuant to Section 3(m). The above, despite the fact that a Committee member shall fail to qualify under the above requirements, shall not
invalidate any Award made by the Committee, if the Award is otherwise validly made under the Plan. 
 “Disability”
means, with respect to a given Participant at a given time, any medically determinable physical or mental impairment that the Committee, on the basis of competent, medical evidence, reasonably determines has rendered or will render the Participant
permanently and totally disabled within the meaning of Section 422(c)(6) of the Code (or such successor section as is in effect at the time). 
 “Dividend Equivalent” means a right granted under Section 6(e) of the Plan. 
 “Effective
Date” means October 15, 2004, the date on which the Fremont Mutual Insurance Company was converted from a Michigan mutual property and casualty insurance company to a Michigan stock property and casualty insurance company and
the Company closed its initial public offering of common stock. 
 “Exchange Act” means the Securities Exchange Act
of 1934, as amended. 
 “Fair Market Value" means, with respect to a Share on a given date: (a) if the Shares are listed for
trading on a national securities exchange (including, for this purpose, the National Market System (“NMS”) of the National Association of Securities Dealers Automated Quotation System (“NASDAQ”)) on that date, the closing Share
price on that exchange (or, if there is more then 

 
one, the principal such exchange), or, for the NMS, the last sale price, on the day immediately preceding the date as of which fair market value is being
determined, or on the next preceding day on which Shares were there traded if no Shares were traded on the immediately preceding day; (b) if the Shares are not listed for trading on any securities exchange (including the NMS) on that date but
are reported by NASDAQ, and market information concerning the Shares is published on a regular basis in The Wall Street Journal or The New York Times, the average of the daily bid and low asked prices of the Shares, as so published, on the day
nearest preceding the date in question for which the prices were published; (c) if (a) is inapplicable and market information concerning the Shares is not regularly published as described in (b), the average of the high bid and low asked
prices of the Shares in the over-the-counter market on the day nearest preceding the date in question as reported by NASDAQ (or, if NASDAQ does not report prices for the Shares, another generally accepted reporting service); or (d) if none of
the above are applicable, the fair market value of a Share as, of the date in question, determined by the Committee. 
 “Non-Qualified Stock Option” means an Option that is not an Incentive Stock Option. 
 “Option” means an option to buy Shares granted under Section 6(a) of the Plan. 
 “Other
Stock-Based Award” means a right granted under Section 6(f) of the Plan. 
 “Participant” means
an employee or non-employee director of or consultant to the Company or any Affiliate designated to be granted an Award under the Plan. 
 “Performance Award” means a right granted under Section 6(d) of the Plan. 
 “Restricted
Period” means the period of time during which an Award of Restricted Stock or Restricted Stock Units is subject to transfer restrictions and potential forfeiture. 
 “Restricted Stock” means a Share granted under Section 6(c) of the Plan. 
 “Restricted Stock Unit” means a right granted under Section 6(c) of the Plan that is denominated in Shares. 
 “Rule 16b-3” means Securities and Exchange Commission Rule 16b-3 (or any successor rule or regulation), as applicable with
respect to the Company at a given time. 
 “Section 16” means Section 16 of the Exchange Act and the rules and
regulations implementing it, or any successor provision, rule, or regulation in effect at a given time. 
 “Section 16 Reporting
Person” means a person who is a director or officer of the Company for purposes of Section 16. 
 “Shares” means shares of the Company's common stock, no par value per share, or such other securities or property as may become the subject of Awards, or become subject to Awards, pursuant to an adjustment made under
Section 4 (b) of the Plan. 
 “Stock Appreciation Right” means a right granted under Section 6(b) of
the Plan. 
  

	3.	ADMINISTRATION 

 The Committee shall administer the
Plan. Subject to the terms and limitations stated in the Plan, and to applicable law, the Committee’s authority shall include without limitation the power to: 
 (a) designate Participants; 
 (b) determine the types of Awards to be granted and the times at which Awards
will be granted; 
 (c) determine the number of Shares to be covered by Awards and any payments, rights, or other matters to be calculated in
connection with them; 
 (d) determine the terms and conditions of Awards and amend the terms and conditions of outstanding Awards, including
the acceleration of vesting of rights granted by Awards and the shortening of a Restricted Period; 

 (e) determine how, whether, to what extent, and under what circumstances Awards may be settled or
exercised in cash, Shares, other Awards, or other securities or property, or canceled, forfeited, or suspended; 
 (f) determine how,
whether, to what extent, and under what circumstances cash, Shares, other Awards, other securities or property, or other amounts payable with respect to an Award shall be deferred, whether automatically or at the election of the holder or of the
Committee; 
 (g) determine the methods and procedures for establishing the value of any property (including, without limitation, Shares or
other securities) transferred, exchanged, given, or received with respect to the Plan or any Award; 
 (h) prescribe and amend the forms of
Award Agreements and other instruments required under or advisable with respect to the Plan; 
 (i) interpret and administer the Plan, Award
Agreements, Awards, and any contract, document, instrument, or agreement relating to it; 
 (j) establish, amend, suspend, or waive such
rules and regulations and appoint such agents as it shall deem appropriate for the administration of the Plan; 
 (k) decide all questions
and settle all controversies and disputes which may arise in connection with the Plan, Award Agreements, or Awards; 
 (l) delegate to one or
more other directors of the Company (who need not be "non-employee directors" within the meaning of Rule 16b-3) the authority to designate and grant Awards to Eligible Participants, provided those Participants are not Section 16 Reporting
Persons; and 
 (m) make any other determination and take any other action that the Committee deems necessary or desirable for the
interpretation, application, or administration of the Plan, Award Agreements, or Awards. 
 All designations, determinations,
interpretations, and other decisions with respect to the Plan, Award Agreements, or any Award shall be within the sole discretion of the Committee, may be made at any time, and shall be final, conclusive, and binding. To the extent that and for so
long as the Committee may delegate to one or more other directors its authority to designate Participants and grant Awards as permitted by subsection (l) above, subsequent references in the Plan to the "Committee" shall be construed to include
such other director or directors acting pursuant to the delegated authority. 
  

	4.	SHARES AVAILABLE FOR AWARDS 

 (a) Shares
Available. Subject to adjustment as provided in Section 4(b): 
 (i) Initial Authorization. There shall be an
amount of Shares equal to 43,105 shares, being 5% of the Shares issued in the initial public stock offering of the Company, initially available for issuance under the Plan. Pursuant to Section 4(b) of the Plan, the number of shares subject to
the Plan was increased to 86,210 to adjust for the two-for-one stock split paid on November 17, 2006. 
 (ii)
Accounting for Awards. For purposes of this Section 4: 
 (A) if an Award (other than a Dividend Equivalent) is
denominated in Shares, the number of Shares covered by the Award, or to which the Award relates, shall be counted on the date of grant of the Award against the aggregate number of Shares available for granting Awards under the Plan, to the extent
determinable on that date, and, as long as the number of Shares is not then determinable, under procedures adopted by the Committee consistent with the purposes of the Plan; and 
 (B) Dividend Equivalents and Awards not denominated in Shares shall be counted against the aggregate number of Shares available for
granting Awards under the Plan in such amount and at such time as the Committee shall determine under procedures adopted by the Committee consistent with the purposes of the Plan; PROVIDED, HOWEVER, that Awards that operate in tandem with (whether
granted simultaneously with or at a different time from), or that are substituted for, other Awards or restricted stock awards or stock options granted under any other plan of the Company may be counted or not counted under procedures adopted by the
Committee in order to avoid double counting. 

 (iii) Sources of Shares Deliverable under Awards. Any Shares delivered pursuant to
an Award may consist, in whole or in part, of authorized but unissued Shares or of Shares reacquired by the Company, including but not limited to Shares purchased on the open market. 
 (b) Adjustments. Upon the occurrence of any nonrecurring dividend or other distribution (whether in the form of cash, Shares, other securities, or
other property), change in the capital or shares of capital stock, recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of shares or other securities of
the Company, issuance of warrants or other rights to purchase Shares or other securities of the Company, or extraordinary transaction or event which affects the Shares, then the Committee shall cause there to be made an equitable adjustment to
prevent dilution or enlargement of rights, as appropriate, in (i) the number and type of Shares (or other securities or property) which may be made the subject of Awards under the Plan, (ii) outstanding Awards, including, without
limitation, the number and type of Shares (or other securities or property) subject to them, and (iii) the grant, purchase, or exercise price with respect to outstanding Awards, and, if deemed appropriate, make provision for cash payments to
the holders of outstanding Awards; provided, however, that the number of Shares subject to any Award denominated in Shares shall always be a whole number. 
 (c) Limitations Upon Awards. No participant shall be granted, during any calendar year, Awards with respect to more than 17,000 Shares, which number shall be calculated and adjusted pursuant to
Section 4(b) above only to the extent that such calculation or adjustment will not affect the status of any Award theretofore issued or that may thereafter be issued as “performance based compensation” under Section 162(m) of the
Code. 
  

	5.	ELIGIBILITY 

 (a) Any employee or non-employee
director of or consultant rendering services to the Company or any Affiliate, including any officer or officer-director of the Company or any Affiliate, as may be selected from time to time by the Committee or by the directors to whom authority may
be delegated pursuant to Section 3(m) of this Plan, is eligible to be designated a Participant with respect to any Award, except that an Other Stock-Based Award may not be granted to a Section 16 Reporting Person. 
 (b) Any Participant may decline to participate in the Plan by providing written notice of the declination to the Committee within 120 days after
receiving notice of an award granted under the Plan. 
  

	6.	AWARDS 

 (a) Options. The Committee is
authorized to grant Options to eligible Participants. 
 (i) Committee Determinations. Subject to the terms and
limitations of the Plan, the Committee shall determine: 
 (A) the number of shares subject to each Option and the exercise
price per Share (which shall not be less than 100% of the Fair Market Value of a Share on the date the Option is granted); 
 (B) the term of each Option; and 
 (C) the time or times at which an Option may be exercised, in whole or in part,
and the method or methods by which and the form or forms (including, without limitation, cash, Shares, other Awards, or other property, or any combination of them, having a fair market value on the exercise date equal to the relevant exercise price)
in which payment of the exercise price with respect to it may be made or deemed to have been made. 
 The Committee may impose such
additional or other conditions or restrictions on any Option as it deems appropriate and as are not inconsistent with the terms of the Plan. 

 (ii) Other Terms. Unless otherwise determined by the Committee: 
 (A) A Participant electing to exercise an Option shall give written notice to the Company, as may be specified by the Committee, of
exercise of the Option and the number of Shares elected for exercise, such notice to be accompanied by such instruments or documents as may be required by the Committee, and shall tender the aggregate exercise price of the Shares elected for
exercise. 
 (B) At the time of exercise of an Option, payment in full in cash shall be made for all Shares then being
purchased. 
 (C) If the employment, directorship or consulting arrangement of a Participant terminates for any reason
(including termination by reason of the fact that an entity is no longer an Affiliate) other than the Participant’s death or Disability, the Participant may afterwards exercise the Option as provided below, except that the Committee may
terminate the unexercised portion of the Option concurrently with or at any time following termination of the employment or consulting arrangement (including termination of employment upon a change of status from employee to consultant) if it shall
determine that the Participant has engaged in any activity detrimental to the interests of the Company or an Affiliate. If the termination is voluntary on the part of the Participant (other than by reason of retirement of an employee-Participant on
or after normal retirement date), the Option may be exercised only within thirty days after the date of termination. If the termination is involuntary on the part of the Participant, if an employee-Participant retires on or after normal retirement
date, the Option may be exercised within three months after the date of termination or retirement. For purposes of this subsection (C), a Participant's employment or consulting arrangement shall not be considered terminated (i) in the case of
approved sick leave or other bona fide leave of absence (not to exceed one year), (ii) in the case of a transfer of employment or the consulting arrangement among the Company and Affiliates, or (iii) by virtue of a change of status from
employee to consultant or from consultant to employee, except as provided above. 
 (D) If a Participant dies or becomes
subject to a Disability at a time when entitled to exercise an Option, then the Option shall be fully vested and may be exercised in full or in part, as determined by the Participant’s personal representative, at any time or times within one
year after death or the date of termination due to a Disability. The Company may decline to deliver Shares to a designated beneficiary until it receives indemnity against claims of third parties satisfactory to the Company. Except as so exercised,
the Option shall expire at the end of that period. 
 (E) An Option may be exercised only if and to the extent the Option was
exercisable at the date of termination of employment, directorship or the consulting arrangement, and an Option may not be exercised at any time when the Option would not have been exercisable had the Participant's employment, directorship or
consulting arrangement continued. 
 (iii) Restoration Options. At the time of grant of an Option (for purposes of this
subsection, an “original Option”) that is not itself a Restoration Option (as defined below), or at the time a Restoration Option arises, or at any other time while the grantee continues to be eligible for Awards and the original Option or
a Restoration Option (either, a “predecessor Option”) is outstanding, the Committee may provide that the predecessor Option shall carry with it a right to receive an Option (for purposes of this subsection, a “Restoration
Option”) if, while still eligible to be granted an Option, the grantee exercises the predecessor Option (or a portion of it) and pays some or all of the applicable exercise price in Shares that have been owned by the grantee for at least six
months prior to exercise. In addition to being subject to any other terms and conditions (including additional limitations on exercisability) that the Committee deems appropriate, and except to the extent the Committee otherwise provides with
respect to a given Restoration Option, each Restoration Option shall be subject to the following; 
 (A) the number of Shares
subject to the Restoration Option shall be the lesser of: (x) the number of whole Shares delivered in exercise of the predecessor Option, or (y) the number of Shares available for grant under the Plan at the time the Restoration Option
arises; 
 (B) the Restoration Option automatically shall arise and be granted (if ever) at the time of payment of the
exercise price in respect of the predecessor Option; 
 (C) the per Share exercise price of the Restoration Option shall be
the Fair Market Value of a Share on the date the Restoration Option arises; 
 (D) the expiration date of the Restoration
Option shall be the same as that of the predecessor Option; 
 (E) the Restoration Option shall first become exercisable six
months after it arises; and 

 (F) the Restoration Option shall be a Nonqualified Stock Option. 
 (b) Stock Appreciation Rights. The Committee is authorized to grant Stock Appreciation Rights to eligible Participants. Subject to the terms of
the Plan, a Stock Appreciation Right granted under the Plan shall confer on the holder of it of a right to receive, upon exercise of it, the excess of (i) the Fair Market Value of one Share on the date of exercise or, if the Committee shall so
determine in the case of any such right other than one related to an Incentive Stock Option, at any time during a specified period before or after the date of exercise over (ii) the grant price of the right as specified by the Committee.
Subject to the terms of the Plan, the Committee shall determine the grant price, term, methods of exercise and settlement of the Stock Appreciation Right, the effect of termination of the Participant's employment, directorship or consulting
relationships, and any other terms of the Stock Appreciation Right the Committee deems appropriate. The Committee may impose such conditions or restrictions on the exercise of any Stock Appreciation Right as it may deem appropriate. 
 (c) Restricted Stock and Restricted Stock Units. 
 (i) Grants. The Committee is authorized to grant Awards of Restricted Stock to eligible Participants. The Award shall consist of Shares or Restricted Stock Units, which shall give the Participant the right to
receive cash, Shares, other securities, other Awards, or other property, in each case subject to the termination of the Restricted Period for the Award determined by the Committee. 
 (ii) Restrictions. The Restricted Period determined by the Committee for Restricted Stock and Restricted Stock Units may differ
among Participants, and any Restricted Period may have different expiration dates with respect to portions of Shares or Units covered by the same Award. During the applicable Restricted Period, Restricted Stock Units and Restricted Stock shall be
nontransferable (except as provided in Section 6 (g) (v) of the Plan) and subject to forfeiture as provided in subsection (iv) of this Section 6 (c). Subject to the terms of the Plan, Awards of Restricted Stock and
Restricted Stock Units also shall be subject to such other restrictions as the Committee may impose (including, without limitation, limitations on the right to vote Restricted Stock or the right to receive any dividend or other right or property),
which restrictions may lapse separately or in combination, at such time or times, in installments or otherwise, as the Committee may determine. Unless the Committee shall otherwise determine, any Shares or other securities distributed with respect
to Restricted Stock or which a Participant is otherwise entitled to receive by reason of the Shares shall be subject to the restrictions contained in the above restrictions and the provisions of the Plan. Participants shall have all of the rights of
a stockholder with respect to Shares of Restricted Stock. 
 (iii) Certificates. Any Shares granted as Restricted Stock
shall be evidenced by certificates bearing such restrictive transfer legend as the Committee determines to be advisable in order to prevent impermissible transfer of the Shares prior to the end of the applicable Restricted Period, and the
certificates shall be retained in the possession of the Company until the Shares no longer are subject to forfeiture. Each Award Agreement concerning an Award of Restricted Stock shall include the grantee's consent to transfer to the Company of any
forfeited Restricted Stock without the need for any further consent, direction, or other action by the grantee. 
 (iv)
Forfeiture. Except as otherwise determined by the Committee: 
 (A) If the employment, directorship or consulting
arrangement of a Participant terminates for any reason (including termination by reason of the fact that any entity is no longer an Affiliate), other than the Participant's death or Disability or, in the case of an employee, retirement on or after
normal retirement date, all Shares of Restricted Stock and all Restricted Stock Units that were awarded to the Participant which are still subject to restrictions shall upon such termination of employment, directorship or the consulting relationship
be forfeited and (in the case of Restricted Stock) transferred back to the Company. For purposes of this subsection (A), a Participant's employment or consulting arrangement shall not be considered terminated (i) in the case of approved sick
leave or other bona fide leave of absence (not to exceed one year), (ii) in the case of a transfer of employment or the consulting arrangement among the Company and Affiliates, or (iii) other than as provided in subsection (D) of this
Section 6(c)(iv), by virtue of a change of status from employee to consultant or from consultant to employee. 
 (B) If a
Participant ceases to be employed or retained by the Company or an Affiliate by reason of death or Disability, or if following retirement a Participant continues to have rights under an Award of Restricted Stock or Restricted Stock Units and then
dies, the Award shall fully vest and no longer be subject to forfeiture. 

 (C) If an employee ceases to be employed by the Company or an Affiliate by reason of
retirement on or after normal retirement date, the restrictions contained in the Award of Restricted Stock shall continue to lapse in the same manner as though employment had not terminated. 
 (D) However, notwithstanding the provisions of subsections (B) and (C) above, if a Participant continues to hold an Award of
Restricted Stock or Restricted Stock Units following termination of his employment or consulting arrangement (including retirement and termination of employment upon a change of status from employee to consultant), the Restricted Stock or Restricted
Stock Units which remain subject to restrictions shall nonetheless be forfeited, and (in the case of Restricted Stock) transferred back to the Company, if the Committee at any time later determines that the Participant has engaged in any activity
detrimental to the interests of the Company or an Affiliate. 
 (E) At the expiration of the Restricted Period as to Shares
covered by an Award of Restricted Stock, or as to Restricted Stock Units to be settled in Shares, the Company shall deliver the Shares as to which the Restricted Period has expired, as follows: 
 (1) if an assignment to a trust has been made in accordance with Section 6(g)(v)(B)(2)(c), to the trust; or 
 (2) if the Restricted Period has expired by reason of death and a beneficiary has been designated in form approved by the Company, to the
beneficiary so designated; or 
 (3) in all other cases, to the Participant or the legal representative of the Participant's
estate. 
 (d) Performance Awards. The Committee is authorized to grant Performance Awards to eligible Participants. Subject to the
terms of the Plan, a Performance Award granted under the Plan (i) may be denominated or payable in cash, Shares (including, without limitation, Restricted Stock), other securities, other Awards, or other property and (ii) shall confer on
the holder rights valued as determined by the Committee and payable to, or exercisable by, the holder of the Performance Award, in whole or in part, upon the achievement of such performance goals during such performance period, as the Committee
shall establish. Subject to the terms of the Plan, the performance goals to be achieved during any performance period, the length of any performance period, the amount of any Performance Award granted, the amount of any payment or transfer to be
made pursuant to any Performance Award, and the other terms and conditions of any Performance Award, including the effect upon the Award, of termination of the Participant's employment, directorship or consulting relationships, shall be determined
by the Committee. 
 (e) Dividend Equivalents. The Committee is authorized to grant to eligible Participants Awards under which the
holders shall be entitled to receive payments equivalent to dividends or interest with respect to a number of Shares determined by the Committee, and the Committee may provide that such amounts (if any) shall be deemed to have been reinvested in
additional Shares or otherwise reinvested. Subject to the term of the Plan, the Awards may have such terms and conditions as the Committee shall determine. 
 (f) Other Stock-Based Awards. The Committee is authorized to grant to eligible Participants such other Awards that are denominated or payable in, valued in whole or in part by reference to, or otherwise based
on or related to Shares (including, without limitation, securities convertible into Shares), as are deemed by the Committee to be consistent with the purposes of the Plan; PROVIDED, HOWEVER, that the grants may not be made to Section 16
Reporting Persons. Subject to the terms of the Plan, the Committee shall determine the terms and conditions of such Other Stock-Based Awards. Shares or other securities delivered pursuant to a purchase right granted under this Section 6(f)
shall be purchased for such consideration, which may be paid by such method or methods and in such form or forms, including, without limitation, cash, Shares, other securities, other Awards, other property, or any combination of the above, as the
Committee shall determine. 
 (g) General. 
 (i) No Cash Consideration for Awards. Awards may be granted for no cash consideration or for such minimal cash consideration as may
be required by applicable law. 
 (ii) Awards May Be Granted Separately or Together. Awards may, in the discretion of
the Committee, be granted either alone or in addition to, in tandem with, or in substitution for, any other Award or any award granted under any other plan of the Company or any Affiliate. Awards granted in addition to or in tandem with other
Awards, or in addition to or in tandem with the awards granted under another plan of the Company or an Affiliate, may be granted either at the same time as or at a different time from the grant of the other Awards or awards. 

 (iii) Forms of Payment under Awards. Subject to the terms of the Plan and of any
applicable Award Agreement, payments or transfers to be made by the Company or an Affiliate upon the grant, exercise, or payment of an Award may be made in such form or forms as the Committee shall determine, including, without limitation, cash,
Shares, other securities, other Awards, or other property, or any combination, and may be made in a single payment or transfer, in installments, or on a deferred basis, in each case in accordance with rules and procedures established by the
Committee. The rules and procedures may include, without limitation, provisions for the payment or crediting of reasonable interest on installment or deferred payments or the grant or crediting of Dividend Equivalents in respect of installment or
deferred payments. 
 (iv) Limits on Transfer of Awards. 
 (A) Except as the Committee may otherwise determine, no Award or right under any Award may be sold, encumbered, pledged, alienated,
attached, assigned, or otherwise transferred in any manner, and any attempt to do any of the above shall be void and unenforceable against the Company. 
 (B) Despite the provisions of paragraph (A) above, except as provided in paragraph (C) below: 
 (1) An Option may be transferred: 
 (a) to a death beneficiary designated by the Participant
in writing on a form approved by the Committee; or 
 (b) by will or the applicable laws of descent and distribution to the
personal representative, executor or administrator of the Participant's estate. 
 (2) A Participant may assign or transfer
rights under an Award of Restricted Stock or Restricted Stock Units: 
 (a) to a death beneficiary designated by the
Participant in writing on a form approved by the Committee; 
 (b) by will or the applicable laws of descent and distribution
to the personal representative, executor or administrator of the Participant's estate; or 
 (c) to a revocable grantor trust
established by the Participant for the sole benefit of the Participant during the Participant's life, and under the terms of which the Participant is and remains the sole trustee until death or physical or mental incapacity. The assignment shall be
effected by a written instrument in form and content satisfactory to the Committee, and the Participant shall deliver to the Committee a true copy of the agreement or other document evidencing the trust. If in the judgment of the Committee the trust
does not meet the criteria of a trust to which an assignment is permitted by the terms of it, or if, after assignment (whether because of amendment, by operation of law, or for any other reason) the trust no longer meets the criteria, the attempted
assignment shall be void and may be disregarded by the Committee and the Company and all rights to the Awards shall revert to and remain solely in the Participant. Notwithstanding a qualified assignment, the Participant, and not the trust to which
rights under an Award may be assigned, for the purpose of determining compensation arising by reason of the Award shall continue to be considered an employee, director or consultant, as the case may be, of the Company or an Affiliate but the trust
and the Participant shall be bound by all of the terms and conditions of the Award Agreement and this Plan. Shares issued in the name of and delivered to the trust shall be conclusively considered issuance and delivery to the Participant.

 (3) The Committee shall not permit Section 16 Reporting Persons to transfer or assign Awards except as and to the
extent (if any) permitted under Rule 16b-3. 
 (C) The Committee, the Company, and its officers, agents, and employees may
rely upon any beneficiary designation, assignment, or other instrument of transfer, copies of trust agreements, and any other documents delivered to any of them by or on behalf of a Participant, which they believe genuine, and any action taken by
any of them in reliance shall be conclusive and binding upon the Participant, the personal representatives of the Participant's estate, and all persons asserting a claim 

 
based on an Award to the Participant. The delivery by a Participant of a beneficiary designation, or an assignment of rights under an Award as permitted
under it, shall constitute the Participant's irrevocable undertaking to hold the Committee, the Company, and its officers, agents, and employees harmless against claims, including any cost or expense incurred in defending against claims, of any
person (including the Participant) which may be asserted or alleged to be based on an Award subject to a beneficiary designation or an assignment. In addition, the Company may decline to deliver Shares to a beneficiary until it receives indemnity
against claims of third parties satisfactory to the Company. 
 (v) No Change in Control. 
 (A) Notwithstanding any of the provisions of this Plan or any Award Agreement, upon a Change in Control of the Company (as defined below)
the vesting of all rights of Participants under outstanding Awards shall be accelerated and all restrictions shall terminate in order that Participants may fully realize the benefits intended to be made available under the Awards. The acceleration
shall include, without limitation, the immediate exercisability in full of all Options and the termination of restrictions on Restricted Stock and Restricted Stock Units. Further, upon the Change in Control, in addition to the Committee's authority
described in Section 4(b), the Committee, as constituted, before the Change in Control, is authorized and has sole discretion, as to any Award, to take any one or more of the following actions: (i) cause any Award then outstanding to be
assumed, or new rights substituted, by the acquiring or surviving entity or other person giving rise to the Change in Control; (ii) make such adjustment to any Award then outstanding as the Committee deems appropriate to reflect the Change in
Control; and (iii) provide for the purchase of any Award, upon the Participant's request, for an amount of cash equal to the amount that could have been attained upon the exercise of the Award or realization of the Participant's rights had the
Award been currently exercisable or payable. 
 (B) A Change in Control shall occur if, after the Effective Date: 

(1) any “person” or “group” (as those terms are used in Sections 13(d) and 14(d) of the Exchange Act and
applicable regulations), other than pursuant to a transaction or agreement previously approved by the Board (whether before, at, or after the Effective Date and including, but not limited to, a transaction or agreement contemplated by the Plan of
Conversion pursuant to which Fremont Mutual Insurance Company is converted from a Michigan mutual property and casualty insurance company to a Michigan stock property and casualty insurance company), directly or indirectly purchases or otherwise
becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of voting securities representing 30 percent or more of the combined voting power of all outstanding voting securities of the Company; or 
 (2) the stockholders of the Company approve (i) an agreement to merge or consolidate the Company in a transaction in which the
Company is not the surviving entity, (ii) an agreement to sell or dispose of substantially all of the Company's assets, or (iii) a plan to liquidate the Company, unless, in the case of an event described in (i), (ii), or (iii), the Board
determines prior to the occurrence of the event that the effects described in Section 6(g)(v)(A) will not apply with respect to the event. 
 (vi) Cash Settlement. Aside from any provision of this Plan or of any Award Agreement to the contrary, any Award outstanding under it may at any time be canceled in the Committee's sole discretion upon payment
of the value of the Award to the holder of it in cash or in another Award under it, such value to be determined by the Committee in its sole discretion. 
 (vii) Certain Securities Law Considerations. The Company intends, as soon as possible after the Effective Date, to register with the Securities and Exchange Commission on Form S-8 the total number of Shares
that may be acquired by Participants under the Plan. Awards granted under the Plan may not be exercised until the Form S-8 is filed and effective. 
 (viii) Award Agreements. Each Award shall be evidenced by an Award Agreement in such form as the Committee shall prescribe. 
  

	7.	AMENDMENT, SUSPENSION, OR TERMINATION; CERTAIN OTHER MATTERS. 

 Except to the extent prohibited by applicable law and unless otherwise expressly provided in an Award Agreement or in the Plan: 
 (a) Amendments, Suspension, or Termination. The Board may amend, suspend, or terminate the Plan or any portion of it at any time, with or without stockholder approval, and the Board or the Committee may amend
any outstanding Award; provided, however, that (i) no Plan amendment shall be effective until approved by stockholders of the Company, insofar as stockholder approval is required in order for the Plan to continue to satisfy the conditions of
Rule 16b-3 or any applicable requirements of a national securities exchange or the NMS, and (ii) without the consent of an affected Participant no amendment of the Plan or of any Award may impair the rights of the Participant under any
outstanding Award. 

 (b) Adjustments of Awards Upon The Occurrence of Certain Unusual or Nonrecurring Events. The
Committee shall make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including, without limitation, the events described in Section 4(b) or a Change in Control
as defined in Section 6(g)(v)) affecting the Company, any Affiliate, or the financial statements of the Company or any Affiliate, or of changes in applicable laws, regulations, or accounting principles, in order to prevent dilution or
enlargement of the benefits or potential benefits intended to be made available to holders of outstanding Awards under the Plan. 
 (c)
Correction of Defects, Omissions, And Inconsistencies. The Committee may correct any defect, supply any omission, or reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall deem desirable to effectuate
the Plan. 
  

	8.	MISCELLANEOUS 

 (a) No Rights to Awards.
Subject only to the express requirements of the Plan, there is no obligation for uniformity of treatment of Participants or holders or beneficiaries of Awards under the Plan, and no Participant or other person shall have any claim to be granted any
Award. The terms and conditions of Awards of the same type, and the determination of the Committee to grant a waiver or modification of the terms and conditions of any Award, need not be the same with respect to the Participant. 
 (b) Withholding. The Company or any Affiliate shall be authorized to withhold from any Award granted or any payment due or transfer made under any
Award or under the Plan the amount (in cash, Shares, other securities, other Awards or other property) of withholding taxes due in respect of an Award, its exercise, or any payment or transfer under the Award or under the Plan and to take such other
action as may be necessary in the opinion of the Company or Affiliate to satisfy all obligations for the payment of the taxes. 
 (c) No
Limit on Other Compensation Arrangements. Nothing contained in the Plan shall prevent the Company or any Affiliate from adopting or continuing in effect other or additional compensation arrangements, including the grant of options and other
stock-based awards, and the arrangements may be either generally applicable or applicable only in specific cases. 
 (d) No Right to
Employment. The grant of an Award shall not be construed as giving a Participant the right to be retained in the employ of the Company or any Affiliate. Further, the Company or an Affiliate may at any time dismiss a Participant from employment,
free from any liability, or any claim under the Plan, unless otherwise expressly provided in the Award Agreement or another written agreement with the Participant. 
 (e) Governing Law. Except to the extent, if any, preempted by Federal law, the validity, construction, and effect of the Plan, any rules and regulations relating to the Plan established by the Committee, and
any Award Agreement shall be determined in accordance with the laws of the State of Michigan. 
 (f) Severability. If any provision of
the Plan or any Award is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, the provision
shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, the provision shall be
stricken as to the jurisdiction, person or Award, and the remainder of the Plan and the Award shall remain in full force and effect. 
 (g)
No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Affiliate and a Participant or any other person. To
the extent that any person acquires a right to receive payments from the Company or any Affiliate pursuant to an Award, the right shall be no greater than the right of any unsecured general creditor of the Company or any Affiliate. 
 (h) No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine
whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional Shares, or whether the fractional Shares or any rights shall be canceled, terminated, or otherwise eliminated. 

 (i) Stockholder Status. Neither the grantee of an Award, nor any other person to whom the Award or
the grantee's rights under it may pass, shall be, or have any right or privileges of, a holder of Shares in respect of any Shares issuable pursuant to or in settlement of the Award, unless and until certificates representing the Shares have been
issued in the name of the grantee or other person. 
 (j) Headings. Headings are given to the Sections and Subsections of the Plan
solely as a convenience to facilitate reference. The headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision of it. 
  

	9.	EFFECTIVENESS AND DURATION 

 The adoption of the
Plan shall be effective as of the Effective Date and shall continue in effect until terminated by the Board or the expiration of 10 years from the Effective Date, whichever occurs first. 
 The Plan was approved by the Board of Directors on November 18, 2003. The Plan, as amended and restated, was approved by the Board of Directors on
December 11, 2007. 
  

			
	FREMONT MICHIGAN INSURACORP, INC.
		
	By	 	/s/ Richard E. Dunning
		 	 Richard E. Dunning

		 	 Its President

		
	By	 	/s/ Donald E. Bradford
		 	 Donald E. Bradford

		 	 Its Secretary

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