Document:

EX-10.1

 

Exhibit 10.1

August 21, 2005

David R. Guyer, M.D.

Dear David:

     This letter is to confirm our understanding with respect to your continued employment with
(OSI) Eyetech, Inc., formerly known as Eyetech Pharmaceuticals, Inc. (the “Company”), following the
consummation of the merger described in the Agreement and Plan of Merger (“Merger Agreement”) among
OSI Pharmaceuticals, Inc. (the “Parent”), Merger Sub and Eyetech Pharmaceuticals, Inc., and your
future employment with Parent. If the Merger Agreement is terminated in accordance with its terms,
this Agreement shall immediately terminate. You acknowledge and understand that upon the
consummation of the merger, the Company will be a wholly-owned subsidiary of Parent.

     1. Employment. The Company will continue to employ you, and you agree to continue to
be employed by the Company, in your current position as Chief Executive Officer. In addition, you
agree to serve as an Executive Vice President of Parent. At a mutually agreeable time, you and
Parent will discuss a transition to an arrangement whereby you become a consultant to Parent and a
member of the Board of Directors of Parent (the “Board”) rather than an employee as described
herein.

     2. Compensation.

     (a) Base Salary. The Company will continue to pay you as your compensation for your
services and agreements hereunder a base salary payable at the bi-weekly rate of $20,192.31, which
annualized is $525,000 per year (the “Base Salary”), less any amounts required to be withheld under
applicable law.

     (b) Incentive Bonus. 

          (i) If the effective date of the merger contemplated by the Merger Agreement (the “Effective
Date”) occurs on or prior to November 30, 2005, you will be eligible to receive a pro-rated bonus
for calendar year 2005 (prorated on a monthly basis) based upon the Company’s current bonus program
which will be paid at the end of December 2005 or early January 2006.

          (ii) If the Effective Date occurs after December 1, 2005, you will be eligible to receive the
full portion of your bonus based upon the Company’s current bonus program for calendar year 2005,
which will be paid at a reasonable time after the Effective Date; provided that the Company has not
already paid you such bonus for calendar year 2005.

 

 

          (iii) Beginning in calendar year 2006, you will be eligible to participate in the Parent’s
annual performance-based incentive bonus plan as approved by the Board solely in its discretion. If
you received a pro-rated bonus for calendar year 2005, any bonus for calendar year 2006 will also
include a pro-rated amount, based upon the amount of the 2006 bonus, for that period of time in
2005 for which a bonus was not paid.

     (c) Equity Compensation. On the first day of the first month after the Effective
Date, you shall be granted stock options to purchase 100,000 shares of the Parent’s common stock,
at an exercise price equal to the closing price per share of the Parent’s common stock on the date
of grant as reported on NASDAQ®, and in accordance with the provisions of the Parent’s Amended and
Restated Stock Incentive Plan. One quarter of the options shall be exercisable on the first
anniversary of the grant and the remaining three-quarters of the options shall become exercisable
ratably on a monthly basis for the succeeding 36 months after such first anniversary.

     (d) Benefits. You shall be entitled to participate in employee benefit plans which
the Parent provides or may establish for the benefit of its employees and the employees of its
subsidiaries (including the Company after the Effective Date) in positions at a level comparable to
you. In addition, as set forth in the Merger Agreement, you may continue to participate in certain
Company benefit plans until the end of the plan year, and then transfer to the applicable Parent
plans.

     (e) Retention Bonus. If you remain employed by the Company on the date that is
fifteen (15) months after the Effective Date, you shall receive a retention bonus of $125,000 at
that time.

     3. Termination of Existing Employment Agreement. You acknowledge and agree that
immediately after the Effective Date, your Employment Agreement with the Company dated April 12,
2000, as amended August 25, 2003 (the “Employment Agreement”), shall terminate and be of no further
force or effect and you shall no longer be entitled to any payments or benefits thereunder, other
than as expressly provided in this Section 3 or in Section 4 below.

     BY ACCEPTING THE OFFER OF EMPLOYMENT EVIDENCED HEREBY, YOU SPECIFICALLY ACKNOWLEDGE AND AGREE
THAT YOU WILL NOT MAKE ANY CLAIM FOR SEVERANCE BASED ON YOUR TERMINATING YOUR EMPLOYMENT WITH THE
COMPANY FOR GOOD REASON (AS SUCH TERM IS DEFINED IN THE EMPLOYMENT AGREEMENT), PROVIDED THAT YOU
RETAIN THE RIGHT TO MAKE A CLAIM UNDER CLAUSE (iii) OF SUCH DEFINITION, AT ANY TIME PRIOR TO THE
EFFECTIVE DATE OR DURING THE PERIOD TWELVE (12) MONTHS AFTER THE EFFECTIVE DATE.

     4. Severance Compensation.

     (a) For purposes of this Agreement, “Cause” shall be defined as, (i) an intentional action or
intentional failure to act by you which was performed in bad faith and to the material detriment of
the Company; (ii) you intentionally refuse or intentionally fail to act in accordance with any
lawful and proper direction or order of the Board of Directors of the Company or the Parent; (iii)
you willfully and habitually neglect the duties of your employment; or (iv) you are

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convicted of a
felony crime involving moral turpitude; provided, however, that in the event that any of the
foregoing events under clauses (i), (ii), (iii) or (iv) above is capable of being cured, the
Company shall provide written notice to you describing the nature of such event and you shall
thereafter have ten (10) business days to cure such event.

     (b) In the event that your employment hereunder is terminated by the Company without “Cause”
during the period beginning on the Effective Date and ending twelve (12) months after the Effective
Date, in exchange for your execution of a general release of all claims against the Company and the
Parent as set forth below, the Company will provide the following, subject to Section 5(d):

          (i) within fifteen (15) days of such termination, one lump sum payment equivalent to
twenty-four (24) months of your then Base Salary, less applicable state and federal withholdings;
and

          (ii) for a period of eighteen (18) months (or until comparable benefits coverage becomes
available to you, if sooner), the Company shall reimburse you (or pay you directly at the Company’s
option) the costs associated with the continuation of you and your dependents’ medical and dental
benefits under COBRA as in effect immediately prior to the termination of your employment.

     (c) Release. You agree to execute a general release of all claims against the Company
and the Parent and their employees, officers, directors and agents in a form reasonably acceptable
to the Company and Parent.

     (d) “Key Employee” Status. Section 409(A) of the Internal Revenue Code of 1986, as
amended (the “Code”) provides for significant tax penalties for employees who are deemed to be “key
employees” under Section 416(i) of the Code. Such a finding could result in significant additional
taxes being owed by you if you receive payments within six (6) months of the termination of your
employment with the Company. In order to avoid this potential issue, if you are deemed to be a key
employee, the Company will make the payments due under Section 5(b) as follows:

          (i) on the first day of the seventh (7th) month following the date your employment
with the Company is terminated, you will receive twenty-four (24) months of your Base Salary, less
applicable state and federal withholdings (instead of receiving such payment within fifteen (15)
days) and the Company will reimburse you for amounts that you paid for COBRA coverage during the
preceding six (6) months; and

          (ii) thereafter, the Company will either directly pay the COBRA premiums or reimburse you for
your monthly premiums on the first day of each month for the next twelve (12) months.

     (e) Golden Parachute Taxes. Notwithstanding anything contained in this letter
agreement to the contrary, to the extent that payments and benefits provided to you under this
letter agreement and benefits provided to you, or for your benefit, under any other Company plan or
agreement (such payments or benefits are collectively referred to as the “Payments”) would be
subject to the excise tax (the “Excise Tax”) imposed under Section 4999 of the Internal Revenue

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Code of 1986, as amended (the “Code”), the Payments shall be reduced (but not below zero) to the
extent necessary so that no Payment to be made or benefit to be provided to you shall be subject to
the Excise Tax, but only if, by reason of such reduction, the net after-tax benefit you receive
shall exceed the net after-tax benefit you receive if no such reduction was made. For purposes of
this Section 4(e), “net after-tax benefit” shall mean (a) the Payments which you receive or then
entitled to receive from the Company that would constitute “parachute payments” within the meaning
of Section 280G of the Code, less (b) the amount of all federal, state and local income taxes
payable with respect to the foregoing calculated at the maximum marginal income tax rate for each
year in which the foregoing shall be paid to you (based on the rate in effect for such year as set
forth in the Code as in effect at the time of the first payment of the foregoing), less (c) the
amount of excise taxes imposed with respect to the payments and benefits described in (a) above by
Section 4999 of the Code. The foregoing determination will be made by a nationally recognized
accounting firm (the “Accounting Firm”) selected by the Company (which may be, but will not be
required to be, the Company’s independent auditors). The Company will direct the Accounting Firm to
submit its determination and detailed supporting calculations to both you and the Company within
fifteen (15) days after the date of termination of your employment. If the Accounting Firm
determines that such reduction is required by this Section 4(e), you, in your sole and absolute
discretion, may determine which Payments shall be reduced to the extent necessary so that no
portion thereof shall be subject to the excise tax imposed by Section 4999 of the Code, and the
Company shall pay such reduced amount to you. The fees and expenses of the Accounting Firm for its
services in connection with the determinations and calculations contemplated by this Section 4 (e)
will be borne by the Company.

     5. Employment Covenants. You agree to execute and abide by the terms of the Employment
Covenants Agreement attached hereto and made a part hereof.

     6. Representations/Warranties. You hereby represent and warrant to the Company and
the Parent that you have no commitments or obligations inconsistent with this letter agreement.

     7. Governing Law. This letter agreement and the rights and obligations of the parties
hereunder will be construed in accordance with and governed by the laws of the State of New York,
without giving effect to the conflict of law principles thereof.

     If the foregoing accurately sets forth our agreement, please so indicate by signing and
returning to us the enclosed copy of this letter.

	 	 	 	 	 
	 	Very truly yours,

OSI PHARMACEUTICALS, INC.

 	 
	 	By:  	/s/ Barbara A. Wood
 	 
	 	 	Barbara A. Wood, Esq. 	 
	 	 	Vice President and General Counsel 	 

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Accepted and Approved:

	 	 	 	 
	/s/ David R. Guyer

	 	August 21, 2005	 
	 
	 	 	 	 
	David R. Guyer, M.D.

	 	Date	 

5

 

Employment Covenants

Dear Employee:

     This letter is to confirm our understanding with respect to (i) your agreement to protect and
preserve information and property which is confidential and proprietary to OSI Pharmaceuticals,
Inc. (“OSIP”), or any present or future parent, subsidiary or affiliate of OSIP (collectively,
“OSI”), (ii) your agreement with respect to the ownership of inventions, ideas, copyrights and
patents which may be used in the business of OSI and (iii) your agreement not to solicit employees
or customers of OSI (the terms and conditions agreed to in this letter are hereinafter referred to
as the “Agreement”). In consideration of the mutual promises and covenants contained in this
Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby mutually acknowledged, we have agreed as follows:

     1. Protected Information.

     (a) Treatment of Confidential Information. You will at all times, both during
the period while you are employed by OSI and after the termination of your employment with
OSI for any reason or for no reason, maintain in confidence and will not, without the prior
written consent of OSI, use, disclose or give to others, directly or indirectly, any
Confidential Information, except as required in the course of performance of your duties
for OSI or by court order. In the event you are questioned by anyone not employed by OSI
(including government agency personnel) or by an employee of or consultant to OSI not
authorized to receive Confidential Information, in regard to any Confidential Information,
or concerning any fact or circumstance relating thereto, you will promptly notify OSI. Upon
the termination of your employment with OSI for any reason or for no reason, or if OSI
otherwise requests, you will return to OSI all tangible Confidential Information and copies
thereof (regardless how such Confidential Information or copies are maintained). All
Confidential Information shall be the sole property of OSI and its assigns. You hereby
assign to OSI any right you may have or acquire in such Confidential Information. The
terms of this Section 1 are in addition to, and not in lieu of, any statutory or other
contractual or legal obligation that you may have relating to the protection of
Confidential Information.

     (b) Definition of Confidential Information. For purposes of this Agreement,
“Confidential Information” means confidential and proprietary

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information of OSI, whether
in written, oral, electronic or other form, including, without limitation, systems,
processes, formulae, data, functional specifications, computer software, programs and
displays, know-how, improvements, discoveries, inventions, developments, designs,
techniques, marketing plans,
strategies, forecasts, new and proposed products and technologies, unpublished
financial statements and financial information, business plans, budgets, projections,
licenses, prices, costs, training methods and materials, sales prospects, and customer,
supplier, manufacturer, collaborator, partner and client lists and any and all intellectual
properties, including any scientific, technical or trade secrets of OSI or of any third
party provided to you or OSI under a condition of confidentiality, provided that
Confidential Information will not include information that is in the public domain other
than through any fault or act by you.

     2. Ownership of Ideas, Copyrights and Patents.

     (a) Property of OSI.

     (i) All ideas, discoveries, creations, manuscripts and properties,
innovations, improvements, know-how, inventions, designs, developments, apparatus,
techniques, methods, biological processes, cell lines, laboratory notebooks and
formulae (collectively, the “Inventions”) which may be used in the current or
planned business of OSI or which in any way relates to such business, whether
patentable, copyrightable or not, which you may conceive, reduce to practice or
develop while you are employed by OSI (and, if based on or related to any
Confidential Information, within two (2) years after termination of such employment
for any reason or for no reason), alone or in conjunction with another or others,
whether during or out of regular business hours, whether or not on OSI’s premises
or with the use of its equipment, and whether at the request or upon the suggestion
of OSI or otherwise, will be the sole and exclusive property of OSI, and that you
will not publish any of the Inventions without the prior written consent of OSI.
You agree that you will promptly disclose to OSI all of the foregoing and you
hereby assign to OSI all of your right, title and interest in and to all of the
foregoing.

     (ii) Without limiting the terms of Section 2(a)(i), you also acknowledge that
all original works of authorship which are made by you (solely or jointly with
others) within the scope of your employment or which relate to the business of OSI,
including, without limitation, marketing and/or business plans, and which are
protectable by copyright are “works made for hire” pursuant to the United States
Copyright Act (17 U.S.C. Section 101) and will be the sole and exclusive property
of OSI. You agree that you will promptly disclose to OSI all of the foregoing and
you hereby assign to OSI all of your right, title and interest in and to all of the
foregoing.

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     (iii) You represent that, to the best of your knowledge and belief, none of
the Inventions and works made for hire set forth in Sections 2(a)(i) and (ii), will
violate or infringe upon any right, patent, copyright, trademark or right of
privacy, or constitute libel or slander against or
violate any other rights of any person, firm or corporation, and that you will
use your best efforts to prevent any such violation.

     (b) Cooperation. At any time during your employment with OSI or after the
termination of your employment with OSI for any reason or for no reason, you will cooperate
fully with OSI and its attorneys and agents in the preparation and filing of all papers and
other documents as may be required to perfect OSI’s rights in and to any of such
Inventions, including, without limitation, joining in any proceeding to obtain letters
patent, copyrights, trademarks or other legal rights with respect to any such Inventions in
the United States and in any and all other countries, provided that OSI will bear the
expense of such proceedings, and that any patent or other legal right so issued to you
personally will be assigned by you to OSI without charge by you.

     (c) Licensing and Use of Inventions. With respect to any Inventions, and work
of any similar nature (from any source), whenever created, which you have not prepared or
originated in the performance of your employment, but which you provide to OSI or
incorporate in any OSI product or system, you hereby grant to OSI a royalty-free, fully
paid-up, non-exclusive, perpetual and irrevocable license throughout the world to use,
modify, create derivative works from, disclose, publish, translate, reproduce, deliver,
perform, dispose of, and to authorize others so to do, all such Inventions. You will not
include in any Inventions you deliver to OSI or use on its behalf, without the prior
written approval of OSI, any material which is or will be patented, copyrighted or
trademarked by you or others unless you provide OSI with the written permission of the
holder of any patent, copyright or trademark owner for OSI to use such material in a manner
consistent with then-current OSI policy.

     (d) Other Inventions. Listed on Exhibit A to this Agreement are any
and all Inventions in which you claim or intend to claim any right, title and interest
(collectively, “Other Inventions”), including, without limitation, patent, copyright and
trademark interests, which to the best of your knowledge will be or may be delivered to OSI
in the course of your employment, or incorporated into any OSI product or system. You
acknowledge that your obligation to disclose Other Inventions is ongoing while you are
employed hereunder.

     3. Prohibited Activities.

     (a) Certain Acknowledgements and Agreements.

     (i) We have discussed, and you recognize and acknowledge the competitive and
proprietary aspects of the business of OSI.

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     (ii) You acknowledge that your employment by OSI creates a relationship of
confidence and trust between OSI and you with respect to certain information
relating to the business and affairs of OSI or applicable to the business of any
client, customer, consultant, partner,
external collaborator or service provider of OSI, which may be made known to you by
OSI or by any client, customer, consultant, partner, external collaborator or
service provider of OSI, or learned by you during the period of your affiliation
with OSI.

     (iii) You further acknowledge that, while you are employed with OSI, OSI will
furnish, disclose or make available to you Confidential Information (as defined in
Section 1(b) above related to the business of OSI (whether or not the information
has commercial value to OSI’s business). You also acknowledge that such
Confidential Information has been developed and will be developed by OSI through
the expenditure by OSI of substantial time, effort and money and that all such
Confidential Information could be used by you to compete with OSI. You also
acknowledge that if you become employed or affiliated with any competitor of OSI,
it is possible that you would disclose Confidential Information to such competitor
and would use Confidential Information, knowingly or unknowingly, on behalf of such
competitor.

     (b) Covenants. While you are employed by OSI and for a period of one (1) year
following the termination of your employment with OSI for any reason or for no reason, you
will not, without the prior written consent of OSI:

     (i) Engage, directly or indirectly, for your benefit or the benefit of others,
in any activity or employment in the performance of which any Confidential
Information obtained during the course of your employment would, by necessity, need
to be disclosed by you in order to engage in any such activity or employment. This
covenant shall not be construed to limit in any way your obligation not to use or
disclose Confidential Information as set forth in Section 1 above.

     (ii) Either individually or on behalf of or through any third party, directly
or indirectly, solicit, divert or appropriate or attempt to solicit, divert or
appropriate, any customers of OSI or any prospective customers with respect to
which OSI has developed or made a sales presentation (or similar offering of
services) for the purpose of directly competing with OSI with respect to OSI’s
“principal marketed products” (i.e., those products which are in the first or
second detail position); or

     (iii) Either individually or on behalf of or through any third party, directly
or indirectly, (A) solicit, entice or persuade or attempt to solicit, entice or
persuade any employees of or consultants to OSI to leave the service of OSI for any
reason, or (B) employ, cause to be employed, or

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solicit the employment of, any
employees of or consultants to OSI while any such person is providing services to
OSI; or

     (iv) Either individually or on behalf of or through any third party, directly
or indirectly, interfere with, or attempt to interfere with, the
relations between OSI and any manufacturer or supplier to or customer of OSI.

     (c) Reasonableness of Restrictions. You understand that the provisions set
forth in Section 3(b) are not meant to prevent you from earning a living or fostering your
career. They are intended, however, to prevent competitors of OSI from gaining an unfair
advantage from your knowledge of Confidential Information. You understand that, by making
any other employer aware of the provisions set forth in this Section 3, that employer can
take such action as to avoid your breach of this Section 3.

4. Records. Upon termination of your employment with OSI for any reason or
for no reason and at any other time requested by OSI, you will deliver to OSI any property
of OSI which may be in your possession, including products, materials, memoranda, notes,
records, reports, or other documents or photocopies of the same.

     5. Termination of Agreement and Survival of Obligations.

     (a) Termination. This Agreement shall terminate upon the termination of your
employment with OSI for any reason or for no reason.

     (b) Survival. Your acknowledgements, agreements and obligations set forth in
Sections 1 through 6 of this Agreement will survive the termination of this Agreement and
the termination of your employment with OSI for any reason or for no reason.

     6. Miscellaneous.

     (a) Injunctive Relief. You hereby expressly acknowledge that any breach or
threatened breach of any of the terms and/or conditions set forth in Sections 1 through 4
of this Agreement will result in substantial, continuing and irreparable injury to OSI.
Therefore, in addition to any other remedy that may be available to OSI, OSI will be
entitled to injunctive or other equitable relief by a court of appropriate jurisdiction in
the event of any breach or threatened breach of the terms of Sections 1 through 4 of this
Agreement. The period during which the covenants contained in Section 3 will apply will be
extended by any periods during which you are found by a court to have been in violation of
such covenants.

     (b) Entire Agreement. This Agreement embodies the entire agreement and
understanding between the parties hereto with respect to the subject matter hereof and
supersedes all prior oral or written agreements and understandings relating to the subject
matter hereof.

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     (c) Governing Law. This Agreement and the rights and obligations of the
parties hereunder will be construed in accordance with and governed by the
law of the State of New York, without giving effect to the conflict of law principles
thereof.

     (d) Assignment. OSI may assign its rights and obligations hereunder,
including, without limitation, those with respect to Sections 1 through 6 of this Agreement
to any person or entity that succeeds to all or substantially all of OSI’s business or that
aspect of OSI’s business in which you are principally involved. You may not assign your
rights and obligations under this Agreement without the prior written consent of OSI and
any such attempted assignment by you without the prior written consent of OSI will be void.

     (e) Benefit. All statements, representations, warranties, covenants and
agreements in this Agreement will be binding on the parties hereto and will inure to the
benefit of the respective successors and permitted assigns of each party hereto.

     (f) Modifications and Amendments. The terms and provisions of this Agreement
may be modified or amended only by written agreement executed by the parties hereto.

     (g) Severability. The parties intend this Agreement to be enforced as
written. However, (a) if any portion or provision of this Agreement is to any extent
declared illegal or unenforceable by a duly authorized court having jurisdiction, then the
remainder of this Agreement, or the application of such portion or provision in
circumstances other than those as to which it is so declared illegal or unenforceable, will
not be affected thereby, and each portion and provision of this Agreement will be valid and
enforceable to the fullest extent permitted by law and (b) if any provision, or part
thereof, is held to be unenforceable because of the duration of such provision or the
geographic area covered thereby, the court making such determination will have the power to
reduce the duration and/or geographic area of such provision, and/or to delete specific
words and phrases (“blue-pencilling”), and in its reduced or blue-pencilled form such
provision will then be enforceable and will be enforced.

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     If the foregoing accurately sets forth our agreement, please so indicate by signing and
returning to us the enclosed copy of this Agreement.

	 	 	 	 	 
	 	Very truly yours,

OSI Pharmaceuticals, Inc.

 	 
	 	By:  	/s/ Barbara A. Wood
 	 
	 	 	Barbara A. Wood, Esq. 	 
	 	 	Vice President and General Counsel 	 
	 

	 	 	 	 
	Accepted and Approved:

	 	 	 	 
	 
	 	 	 	 
	/s/ David R. Guyer

	 	August 21, 2005	 
	 
	 	 	 	 
	David R. Guyer, M.D.

	 	Date	 

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EXHIBIT A

OTHER INVENTIONSEX-10.1

 

Exhibit 10.1

ASSURANT, INC.

AMENDED AND RESTATED DIRECTORS COMPENSATION PLAN

ARTICLE 1

PURPOSE

     1.1     PURPOSE. The purpose of the Assurant, Inc. Amended and Restated Directors Compensation
Plan is to attract, retain and compensate highly-qualified individuals who are not employees of
Assurant, Inc. or any of its subsidiaries or affiliates for service as members of the Board by
providing them with competitive compensation and an ownership interest in the Common Stock of the
Company. The Company intends that the Plan will benefit the Company and its stockholders by
allowing Non-Employee Directors to have a personal financial stake in the Company through an
ownership interest in the Common Stock and will closely associate the interests of Non-Employee
Directors with that of the Company’s stockholders.

     1.2     ELIGIBILITY. All active Non-Employee Directors shall automatically be participants in the
Plan.

ARTICLE 2

DEFINITIONS

     2.1     DEFINITIONS. Unless the context clearly indicates otherwise, the following terms shall
have the following meanings:

     (a)     “Base Annual Retainer” means the annual cash retainer (excluding meeting fees and
expenses) payable by the Company to a Non-Employee Director pursuant to Section 5.1 hereof for
service as a director of the Company (i.e., excluding any Supplemental Annual Retainer), as such
amount may be changed from time to time.

     (b)     “Board” means the Board of Directors of the Company.

     (c)     “Company” means Assurant, Inc., a Delaware corporation.

     (d)     “Common Stock” means the common stock, par value $0.01 per share, of the Company.

     (e)     “Disability” means any illness or other physical or mental condition of a Non-Employee
Director that renders him or her incapable of performing as a director of the Company, or any
medically determinable illness or other physical or mental condition resulting from a bodily
injury, disease or mental disorder which, in the judgment of the Board, is permanent and continuous
in nature. The Board may require such medical or other evidence as it deems necessary to judge the
nature and permanency of a Non-Employee Director’s condition.

     (f)     “Effective Date” has the meaning set forth in Section 8.6 of the Plan.

 

 

     (g)     “Fair Market Value,” on any date, means (i) if the Common Stock is listed on a securities
exchange or is traded over the Nasdaq National Market, the closing sales price on the immediately
preceding date on which sales were reported, or (ii) if the Common Stock is not listed on a
securities exchange or traded over the Nasdaq National Market, the mean between the bid and offered
prices as quoted by Nasdaq for such immediately preceding trading date, provided that if it is
determined that the fair market value is not properly reflected by such Nasdaq quotations, Fair
Market Value will be determined by such other method as the Board determines in good faith to be
reasonable.

     (h)     “Non-Employee Director” means a director of the Company who is not an employee of the
Company or Fortis Insurance N.V (“Fortis”), or any of its respective subsidiaries or affiliates,
and who is not a director of the Company designated by Fortis pursuant to the Shareholders’
Agreement between the Company and Fortis.

     (i)     “Plan” means the Assurant, Inc. Directors Compensation Plan, as amended from time to time.

     (j)     “Plan Year(s)” means the approximate twelve-month periods between annual meetings of the
stockholders of the Company, which, for purposes of the Plan, are the periods for which annual
retainers are earned.

     (k)     “Stock Appreciation Rights” or “SARs” has the meaning set forth in Section 6.2 of the
Plan.

     (l)     “Stock Grant Date” has the meaning set forth in Section 6.1(c) of the Plan.

     (m)     “Supplemental Annual Retainer” means the annual retainer (excluding meeting fees and
expenses) payable by the Company to a Non-Employee Director pursuant to Section 5.2 hereof for
service as a member or chair of a committee of the Board, as such amount may be changed from time
to time.

ARTICLE 3

ADMINISTRATION

     3.1     ADMINISTRATION. The Plan shall be administered by the Board. Subject to the provisions of
the Plan, the Board shall be authorized to interpret the Plan, to establish, amend and rescind any
rules and regulations relating to the Plan, and to make all other determinations necessary or
advisable for the administration of the Plan. The Board’s interpretation of the Plan, and all
actions taken and determinations made by the Board pursuant to the powers vested in it hereunder,
shall be conclusive and binding upon all parties concerned including the Company, its stockholders
and persons granted awards under the Plan. The Board may appoint a plan administrator to carry out
the ministerial functions of the Plan, but the administrator shall have no other authority or
powers of the Board.

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     3.2     RELIANCE. In administering the Plan, the Board may rely upon any information furnished by
the Company, its public accountants and other experts. No individual will have personal liability
by reason of anything done or omitted to be done by the Company or the Board in connection with the
Plan.

     3.3     INDEMNIFICATION. Each person who is or has been a member of the Board or who otherwise
participates in the administration or operation of the Plan shall be indemnified by the Company
against, and held harmless from, any loss, cost, liability or expense that may be imposed upon or
incurred by him or her in connection with or resulting from any claim, action, suit or proceeding
in which such person may be involved by reason of any action taken or failure to act under the Plan
and shall be fully reimbursed by the Company for any and all amounts paid by such person in
satisfaction of judgment against him or her in any such action, suit or proceeding, provided he or
she will give the Company an opportunity, by written notice to the Board, to defend the same at the
Company’s own expense before he or she undertakes to defend it on his or her own behalf. This right
of indemnification shall not be exclusive of any other rights of indemnification.

ARTICLE 4

SHARES

     4.1     SHARES SUBJECT TO THE PLAN. Subject to Section 6.2(c)(vi), the shares of Common Stock that
may be issued pursuant to the Plan shall not exceed in the aggregate 500,000. Such shares may be
authorized and unissued shares or treasury shares.

ARTICLE 5

CASH COMPENSATION

     5.1     BASE ANNUAL RETAINER. Each Non-Employee Director shall be paid a Base Annual Retainer for
service as a director during each Plan Year, payable quarterly beginning on the first day of the
Plan Year, or the Effective Date in the case of the Plan Year ending on the 2005 annual meeting of
stockholders. The amount of the Base Annual Retainer shall be established from time to time by the
Board. Until changed by the Board, the Base Annual Retainer shall be $40,000 for a full Plan Year.
Each person who first becomes a Non-Employee Director on a date other than an annual meeting date
shall be paid a pro-rata retainer equal to the Base Annual Retainer for such Plan Year, multiplied
by a fraction, the numerator of which is the number of full months before the next regularly
scheduled annual meeting of the Company’s stockholders, and the denominator of which is 12. Payment
of such prorated Base Annual Retainer shall begin on the date that the person first becomes a
Non-Employee Director.

     5.2     SUPPLEMENTAL ANNUAL RETAINER. Certain Non-Employee Directors shall be paid a Supplemental
Annual Retainer for service as Chairman of the Board or as a member or chair of a committee of the
Board during a Plan Year, payable quarterly at the same times as installments of the Base Annual
Retainer are paid. The amount of the Supplemental Annual Retainer shall be established from time
to time by the Board. Until changed by the Board, the Supplemental Annual Retainer for a full Plan
Year shall be as follows:

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	 	 	Chair	 	 	Non-Chair Member	 
	Chairman of the Board
	 	$	7,500	 	 	 	n/a	 
	Audit Committee
	 	$	25,000	 	 	$	10,000	 
	Compensation Committee
	 	$	7,500	 	 	$	3,750	 
	Governance/ Nominating Committee
	 	$	5,000	 	 	$	2,500	 
	Executive Committee
	 	$	0	 	 	$	0	 
	Any additional committee formed in the future
	 	$	5,000	 	 	$	2,500	 

A pro-rata Supplemental Annual Retainer will be paid to any Non-Employee Director who becomes
chairman or joins a committee of the Board on a date other than the beginning of a Plan Year, based
on the number of full months between the date such Non-Employee Director became chairman or joined
such committee and the beginning of the next Plan Year.

     5.3     FEES. Each Non-Employee Director shall be paid a fee for each meeting or conference call
of the Board or committee thereof in which he or she participates. The amount of the fees shall be
established from time to time by the Board. Until changed by the Board, the fee for attending a
meeting of the Board or any committee thereof shall be $2,000, and the fee for participating in a
conference call of the Board or any committee thereof shall be $500; provided that no more than one
fee will be payable for meetings or conference calls held on a single day. For purposes of this
provision, the Chairman of the Board or chairman of the respective Board committee may authorize
the full meeting fee to be payable with respect to any extended conference call or any other
special off-site meeting required as part of a Non-Employee Director’s service on the Board or any
committee thereof.

     5.4     TRAVEL EXPENSE REIMBURSEMENT. All Non-Employee Directors shall be reimbursed for
reasonable travel expenses (including spouse’s expenses to attend events to which spouses are
invited) in connection with attendance at meetings of the Board and its committees, or other
Company functions at which the Chief Executive Officer requests the Non-Employee Director to
participate. If the travel expense is related to the reimbursement of commercial airfare, such
reimbursement will not exceed full-coach rates for domestic travel or business-class rates for
international travel. If the travel expense is related to reimbursement of non-commercial air
travel, such reimbursement shall not exceed the rate for comparable travel by means of commercial
airlines.

     5.5     FINANCIAL PLANNING. During each Plan Year, each Non-Employee Director shall be entitled
to receive, at the Company’s expense, financial planning services having a value of up to $5,000 to
be provided by a financial advisor selected by the Company. Any such expenses in excess of $5,000
shall be borne by the Non-Employee Director.

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ARTICLE 6

EQUITY COMPENSATION

     6.1     STOCK GRANTS.

     (a)     Initial Stock Grant. Each Non-Employee Director shall receive, on the later of the
Effective Date of the Plan or the first date he or she becomes a Non-Employee Director, an award of
shares of Common Stock having an aggregate Fair Market Value on the grant date equal to $60,000.
Such shares shall be subject to the transfer restrictions described below in Section 6.1(d). For
purposes of computing the number of shares subject to an Initial Stock Grant, fractional shares
shall be rounded up to the nearest whole share.

     (b)     Annual Stock Grants. On the day following the 2005 annual meeting of the Company’s
stockholders, and on the day following each subsequent annual meeting of the Company’s
stockholders, each Non-Employee Director in service on that date (other than a director who first
became a Non-Employee Director at the stockholders meeting held on the previous day) will receive
an award of shares having a Fair Market Value on the date of grant equal to $60,000. Such shares
shall be subject to the transfer restrictions described below in Section 6.1(d). In no event will a
director receive both an initial award and an annual award of shares for the same Plan Year. For
purposes of computing the number of shares subject to an Annual Stock Grant, fractional shares
shall be rounded up to the nearest whole share.

     (c)     Reduced Awards. Each day that shares are to be granted under the Plan is referred
to hereinafter as a “Stock Grant Date.” If on any Stock Grant Date, shares of Common Stock are not
available under the Plan to grant to Non-Employee Directors the full amount of a grant contemplated
by Section 6.1(a) or (b), then each Non-Employee Director then entitled to an award of shares shall
receive a reduced grant of shares (a “Reduced Grant”) in an amount equal to the number of shares of
Common Stock then available under the Plan, divided by the number of Non-Employee Directors
entitled to an award of shares as of the applicable Stock Grant Date. Fractional shares shall be
ignored and not granted. If a Reduced Grant has been made and, thereafter, during the term of the
Plan, additional shares of Common Stock become available for grant (e.g., by an amendment to the
Plan approved by the stockholders), then each person who was a Non-Employee Director both on the
Stock Grant Date on which the Reduced Grant was made and on the date additional shares of Common
Stock become available (a “Continuing Non-Employee Director”) shall receive an additional grant of
shares. The number of newly available shares shall be divided equally among the shares granted to
the Continuing Non-Employee Directors up to the full number of shares that were due to be granted.
If more than one Reduced Grant has been made, available shares shall be granted beginning with the
earliest such Stock Grant Date.

     (d)     Minimum Holding Period. A Non-Employee Director receiving shares of Common Stock
under Section 6.1(a) or (b) of the Plan shall not sell, transfer, exchange, assign, pledge,
hypothecate, or otherwise encumber such shares to or in favor of any party other than the Company,
or subject such shares to any lien, obligation, or liability of the grantee to any other party
other than the Company, until the earlier of (i) the fifth anniversary of the date of grant, or
(ii) the Non-Employee Director’s termination as a director of the Company for any reason.

-5-

 

     6.2     STOCK APPRECIATION RIGHTS.

     (a)     Initial SAR Grant. Each Non-Employee Director shall receive, on the later of the
Effective Date of the Plan or the first date he or she becomes a Non-Employee Director, an award of
Stock Appreciation Rights (“SARs”) with respect to that number of shares of Common Stock having an
aggregate Fair Market Value on the grant date equal to $60,000. For purposes of computing the
number of SARs subject to an Initial SAR Grant, fractional shares shall be rounded up to the
nearest whole share.

     (b)     Annual SAR Grants. On the day following the 2005 annual meeting of the Company’s
stockholders, and on the day following each subsequent annual meeting of the Company’s
stockholders, each Non-Employee Director in service on that date (other than a director who first
became a Non-Employee Director at the stockholders meeting held on the previous day) will receive
an award of SARs with respect to that number of shares of Common Stock having a Fair Market Value
on the date of grant equal to $60,000. For purposes of computing the number of SARs subject to an
Annual SAR Grant, fractional shares shall be rounded up to the nearest whole share. In no event
will a director receive both an initial award and an annual award of SARs for the same Plan Year.

     (c)     Terms and Conditions of SARs.

     (i)     Base Value and Benefit. The base value of each SAR granted under the Plan shall equal the
Fair Market Value of a share of Common Stock on the date of grant of the SAR. Each SAR entitles the
grantee, in accordance with and subject to the restrictions set forth in this Section 6.2, to
receive from the Company upon the exercise of the SAR that number of shares of Common Stock having
a Fair Market Value, as of the date of such exercise, equal to the excess, if any, of (a) the Fair
Market Value of one share of Common Stock on the date of exercise; over (b) the base value of the
SAR. For purposes of computing the number of Shares that a Non-Employee Director has the right to
acquire by exercise of a SAR, fractional shares shall be disregarded, and the Committee shall
determine whether cash shall be given in lieu of fractional Shares or whether such fractional
Shares shall be eliminated by rounding up or down.

     (ii)     Term, Vesting and Exercise of SARs. The term of the SARs shall be for a period of five
years. The SARs shall be fully vested and exercisable on the date of grant. Notwithstanding the
foregoing, to the extent not previously exercised, all SARs granted hereunder shall be
automatically exercised (and shall thereupon expire) on earlier of (i) the first anniversary of a
Non-Employee Director’s termination as a director of the Company for any reason, or (ii) the fifth
anniversary of the date of grant of the SAR. The Board may at its discretion force the early
exercise of SARs (which shall thereupon expire) for any reason. In requiring such mandatory
exercise, the Board in its discretion shall select which SARs shall be exercised.

     (iii)     Restrictions on Transfer and Pledge; Minimum Holding Period. The SARs may not be
pledged, encumbered, or hypothecated to or in favor of any party other than the Company, nor shall
they be subject to any lien, obligation, or liability of the grantee to any party other than

-6-

 

the Company. The SARs are not assignable or transferable by the grantee other than by will or
the laws of descent and distribution. The SARs may be exercised during the lifetime of the grantee
only by the grantee. The shares of Common Stock issuable upon exercise of the SARs may not be sold,
transferred, exchanged, assigned, pledged, hypothecated, or otherwise encumbered to or in favor of
any party other than the Company, or subjected to any lien, obligation, or liability of the grantee
to any other party other than the Company, until the earlier of (i) the fifth anniversary of the
date of grant, or (ii) the Non-Employee Director’s termination as a director of the Company for any
reason.

     (iv)     Award Agreements. All awards of SARs under the Plan shall be evidenced by a written Award
Agreement between the Company and the Non-Employee Director, which shall include such provisions,
not inconsistent with the Plan, as may be specified by the Board.

     (v)     Beneficiaries. A Non-Employee Director may, in the manner determined by the Board,
designate a beneficiary to exercise the rights of the Non-Employee Director and to receive any
distribution with respect to any SAR upon his or her death. A beneficiary, legal guardian, legal
representative, or other person claiming any rights under the Plan is subject to all terms and
conditions of the Plan and any Award Agreement applicable to the Non-Employee Director, except to
the extent the Plan and Award Agreement otherwise provide, and to any additional restrictions
deemed necessary or appropriate by the Board. If no beneficiary has been designated or survives
the Non-Employee Director, payment shall be made to the Non-Employee Director’s estate. Subject to
the foregoing, a beneficiary designation may be changed or revoked by a Non-Employee Director at
any time provided the change or revocation is filed with the Board.

     (vi)     Source of Shares. The SARs described in this Section 6.2 shall be deemed to be granted
pursuant to the Assurant, Inc. 2004 Long-Term Incentive Plan (the “LTIP”), and the shares of Common
Stock issuable pursuant to the exercise of such SARs shall be issued pursuant to the LTIP.

     6.3     ADJUSTMENTS. In the event that the Board determines that any distribution (whether in the
form of cash, Common Stock, other securities, or other property), recapitalization,
reclassification, stock split, reverse stock split, reorganization, merger, consolidation,
split-up, spin-off, combination, repurchase, or exchange of Common Stock or other securities of the
Company, issuance of warrants or other rights to purchase Common Stock or other securities of the
Company, or other similar corporate transaction or event, in the Board’s sole discretion, affects
the Common Stock such that an adjustment is determined by the Board to be appropriate in order to
prevent dilution or enlargement of the benefits or potential benefits intended to be made available
under the Plan or with respect to an award or awards hereunder, then the Board shall, in such
manner as it may deem equitable, adjust the number and type of shares (or other securities or
property) which may be granted under the Plan. Any decision of the Board pursuant to the terms of
this Section 6.3 shall be final, binding and conclusive upon the Non-Employee Directors, the
Company and all other interested parties. Without limiting the foregoing, in the event of a
subdivision of the outstanding Common Stock (stock-split), a declaration of a dividend payable in
shares of Common Stock, or a combination or consolidation of the outstanding Common Stock into a
lesser number of shares, the authorization limit under

-7-

 

Article 4 shall automatically be adjusted proportionately, any outstanding SARs shall
automatically be adjusted proportionately, and any resulting shares payable with respect to shares
of Common Stock granted under Section 6.1(a) or (b) of the Plan, or shares issued upon the exercise
of SARs granted under Section 6.2(a) or (b) of this Plan, shall be subject to any remaining minimum
holding period for such shares imposed under Section 6.1(d) or Section 6.2(c)(iii) hereof.

ARTICLE 7

AMENDMENT, MODIFICATION AND TERMINATION

     7.1     AMENDMENT, MODIFICATION AND TERMINATION. The Board may, at any time and from time to time,
amend, modify or terminate the Plan without stockholder approval; provided, however, that if an
amendment to the Plan would, in the reasonable opinion of the Board, (i) materially increase the
number of shares of Common Stock available under the Plan, (ii) expand the types of awards
available under the Plan, (iii) materially extend the term of the Plan, or (iv) otherwise
constitute a material change requiring shareholder approval under applicable laws, policies or
regulations or the applicable listing or other requirements of a securities exchange on which the
Common Stock is listed or traded, then such amendment shall be subject to stockholder approval; and
provided further, that the Board may condition any other amendment or modification on the approval
of stockholders of the Company for any reason.

ARTICLE 8

GENERAL PROVISIONS

     8.1     ELECTION TO DEFER PAYMENT. A Participant may elect to defer receipt of any cash payment
under the Plan. Such election shall be made in writing and delivered to the plan administrator in
compliance with, and such deferral shall be governed solely by the terms of, the Assurant, Inc.
Deferred Compensation Plan.

     8.2     RESTRICTIONS OF LENDERS. The Company’s obligations under the Plan shall be subject to, and
may from time to time be prohibited by, agreements that may be in effect from time to time among or
between the Company or its affiliates and their respective lenders. In the event that the Company
would not be able to perform any of its agreements or fulfill any of its obligations hereunder
without violating such a loan agreement, the Company shall be excused from such performance or
fulfillment with no liability therefor to the Non-Employee Directors; provided that if and when
such performance or fulfillment would no longer be such a violation, the Company shall have the
obligation to complete such performance or fulfillment at that time.

     8.3     DURATION OF THE PLAN. The Plan shall remain in effect until the day immediately following
the 2013 annual meeting of Company’s stockholders, unless terminated earlier by the Board.

     8.4     EXPENSES OF THE PLAN. The expenses of administering the Plan shall be borne by the
Company.

-8-

 

     8.5     GOVERNING LAW. To the extent not governed by federal law, the Plan and all Award
Certificates shall be construed in accordance with and governed by the laws of the State of
Delaware.

     8.6     EFFECTIVE DATE. The Plan was originally adopted by the Board on October 15, 2003 and was
approved by the sole stockholder on October 15, 2003. The Plan was amended by the Board on December
12, 2003, became effective on February 4, 2004 (the “Effective Date”), and was further amended and
restated on June 3, 2005.

	 	 	 	 	 
	 	ASSURANT, INC.

 	 
	 	/s/ Robert Haertel
 	 
	 	By:    Robert Haertel 	 
	 	Senior Vice President 	 
	 

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