Document:

Exhibit 10.11

 

STOCK OPTION AGREEMENT

 

STOCK
OPTION AGREEMENT dated as of the Grant Date (as hereafter defined), by and
between SIRVA, Inc., a Delaware corporation (the “Company”), and the
grantee whose name appears on the signature page hereof (the “Grantee”).

 

W  I
T  N  E  S  S  E  T  H:

 

WHEREAS,
to motivate key employees, consultants and non-employee directors of the
Company and the Subsidiaries by providing them an ownership interest in the
Company, the Board of Directors of the Company (the “Board”) has established,
and the shareholders of the Company have approved, the SIRVA, Inc. Amended and
Restated Omnibus Stock Incentive Plan, as the same may be amended from time to
time (the “Plan”); and

 

WHEREAS,
pursuant to the Plan, the Compensation Committee of the Board (the “Committee”)
has authorized the grant to the Grantee of non-qualified stock options to
purchase the aggregate number of shares of Common Stock listed on Schedule A
hereto under the heading “Total Number of Shares Subject to the Options” (each,
a “Share” and, collectively, the “Shares”), at the exercise price
per Share listed on Schedule A hereto under the heading “Exercise Price”; and

 

WHEREAS,
the Grantee and the Company desire to enter into an agreement to evidence and
confirm the grant of such stock options on the terms and conditions set forth
herein.

 

NOW,
THEREFORE, to evidence the stock options so granted, and to set forth the terms
and conditions governing such stock options, the Company and the Grantee hereby
agree as follows:

 

1.             Certain
Definitions. Capitalized terms used herein without definition shall have
the meanings set forth in the Plan. As used in this Agreement, the following
terms shall have the following meanings:

 

(a)           “Aggregate Exercise
Price” shall have the meaning set forth in Section 6 hereof.

 

(b)           “Alternative Option”
shall have the meaning set forth in Section 9(c) hereof.

 

(c)           “Business” shall
have the meaning set forth in Section 4(c) hereof.

 

(d)           “Covered Options”
shall have the meaning set forth in Section 4(b) hereof.

 

 

(e)           “Exercise Date”
shall have the meaning set forth in Section 6 hereof.

 

(f)            “Exercise Price”
shall mean, with respect to each Share covered by an Option, the exercise price
at which the Grantee may purchase such Share specified in Section 2(b) hereof.

 

(g)           “Exercise Shares”
shall have the meaning set forth in Section 6 hereof.

 

(h)           “Financial Gain”
shall have the meaning set forth in Section 4(c) hereof.

 

(i)            “Grant Date”
shall mean the date specified on Schedule A hereto under the heading “Grant Date”,
which is the date on which the Options are granted to the Grantee.

 

(j)            “Grantee” shall
have the meaning set forth in the introductory paragraph hereto.

 

(k)           “Normal Expiration
Date” shall mean the seventh anniversary of the date hereof.

 

(l)            “One-Year Date”
shall have the meaning set forth in Section 4(c) hereof.

 

(m)          “Option” shall
mean the right granted to the Grantee hereunder to purchase one share of Common
Stock for a purchase price equal to the Exercise Price and otherwise subject to
the terms and conditions of this Agreement.

 

(n)           “Securities Act”
shall mean the U.S. Securities Act of 1933, as amended.

 

(o)           “Share” or “Shares”
shall have the meaning specified in the preambles hereto.

 

(p)           “Sufficient Shares”
shall mean the smallest number of Shares which, when sold, will produce an
amount at least equal to the relevant Tax Liability (after deduction of
brokerage and any other charges or taxes on the sale).

 

(q)           “Taxable Event”
means any of the following events which may give rise to liabilities for income
tax, with or without corresponding liabilities for national insurance
contributions (or their equivalents in any jurisdiction):

 

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(i)            the exercise of the
Option; or

 

(ii)           any other taxable event
in relation to the Option; or

 

(iii)          the sale of Shares
acquired on exercise of the Option; or

 

(iv)          any other taxable event
in relation to shares acquired on exercise of the Option.

 

(r)            “Tax Liability”
means
the total of:

 

(i)            any PAYE income tax
and primary class 1 (employee) national insurance contributions (or any similar
liability to withhold amounts in respect of income tax or social security
contribution in any jurisdiction) that the Company or any employer (or former
employer) of the Grantee is liable to account for as a result of any Taxable
Event; and

 

(ii)           if such amounts may be
lawfully recovered from the Grantee, any secondary class 1 (employer) national
insurance contributions (or any similar liability for social security
contribution in any jurisdiction) that the Company or any employer (or former
employer) of the Grantee is liable to pay as a result of any Taxable Event.

 

(s)           “Wrongful Conduct”
shall have the meaning set forth in Section 4(c) hereof.

 

(t)            “Wrongful Conduct
Period” shall have the meaning set forth in Section 4(c) hereof.

 

2.             Grant of Options.

 

(a)           Confirmation of
Grant. The Company hereby evidences and confirms its grant to the Grantee,
effective as of the date hereof, of Options to purchase the number of Shares listed
on Schedule A hereto under the heading “Total Number of Shares Subject to the
Options”. The Options are not intended to be incentive stock options under the
U.S. Internal Revenue Code of 1986, as amended. This Agreement is subordinate
to, and the terms and conditions of the Options granted hereunder are subject
to, the terms and conditions of the Plan, which are incorporated by reference
herein. If there is any inconsistency between the terms hereof and the terms of
the Plan, the terms of the Plan shall govern.

 

(b)           Exercise Price. Each
Share covered by an Option shall have the Exercise Price specified on Schedule
A hereto under the heading “Exercise Price”, subject to adjustment as provided
in the Plan. As of the date hereof, the

 

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Exercise Price is not less than the fair market value
of one share of Common Stock as determined under section 409A of the Code.

 

3.             Exercisability.

 

(a)           Options. Except
as otherwise provided in Section 7(a) of this Agreement and subject to the
continuous employment of the Grantee with the Company or one or more of the
Subsidiaries until the applicable vesting date, the Options shall become vested
as specified on Schedule A hereto under the heading “Vesting Schedule”.

 

(b)           Conditions. The
Committee, in its sole discretion, may accelerate the vesting or exercisability
of any Option, all Options or any class of Options, at any time and from time
to time. Shares covered by vested Options may, subject to the provisions
hereof, be purchased at any time and from time to time on or after the date the
corresponding Options become vested in accordance with the provisions of this
Section 3 until the date one day prior to the date on which such Options
terminate.

 

4.             Termination of
Options.

 

(a)           Normal Expiration
Date. Subject to Sections 4 and 7, the Options shall terminate and be
canceled on the Normal Expiration Date.

 

(b)           Early Termination.

 

(i)            Except as provided in
this Section 4 and Section 7, if the Grantee’s employment with the Company or
any Subsidiary is voluntarily or involuntarily terminated for any reason prior
to the Normal Expiration Date, any Options held by the Grantee that have not
become vested on or before the effective date of such termination of employment
shall terminate and be canceled immediately upon such termination of employment.
For purposes of the Plan, all Options held by the Grantee on the effective date
of such termination of employment that shall have become vested on or before
such effective date shall be referred to as the “Covered Options.”

 

(ii)           Notwithstanding
anything to the contrary contained herein, but subject to the provisions of
Section 7, following a termination of Grantee’s employment by reason of such
Grantee’s death or Disability, all of the Grantee’s Options (whether or not
then vested or exercisable) shall become immediately exercisable in full and
shall remain exercisable solely until the twelve-month anniversary of the date
of such termination of employment (even if such anniversary falls after the Normal
Expiration

 

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Date), and shall automatically terminate and be
canceled upon the expiration of such period.

 

(iii)          Subject to the
provisions of Section 7, following a termination of Grantee’s employment by
reason of the Grantee’s Retirement, the Covered Options shall remain
exercisable until the first to occur of (A) the twelve-month anniversary
following the date of such Grantee’s Retirement, or (B) the Normal
Expiration Date; provided that, if the Grantee agrees to be bound by certain
restrictive covenants, including customary non-competition, non-solicitation,
non-disclosure and non-disparagement covenants, then during the three-year
period following the Grantee’s Retirement, the Covered Options shall remain
exercisable until the earlier of (1) the third anniversary of the Grantee’s
Retirement or, if the Grantee dies prior to the third anniversary of his
Retirement, the twelve-month anniversary following the date of the Grantee’s
death and (2) the Normal Expiration Date; and any Options that are not Covered
Options shall continue to become exercisable in accordance with their
respective terms during such three-year period as if the Grantee’s employment
had not terminated due to his Retirement, and shall automatically terminate and
be canceled upon the earlier of (x) the expiration of whichever of such
periods is applicable and (y) the breach by the Grantee of any of such
covenants.

 

(iv)          Subject to the
provisions of Section 7, if the Grantee’s employment is terminated for any
reason other than (x) Retirement, (y) death or Disability or (z)
for Cause, the Covered Options shall remain exercisable solely until the first
to occur of (A) the 60th day following the date of such termination and
(B) the Normal Expiration Date, and shall automatically terminate and be
canceled upon the expiration of whichever of such periods is applicable.

 

(v)           Notwithstanding
anything else contained in this Agreement, if the Grantee’s employment with the
Company or any Subsidiary is terminated for Cause (or if, following the date of
termination of the Grantee’s employment for any reason, the Committee
determines that circumstances exist such that the Grantee’s employment could
have been terminated for Cause), all Options (whether or not then vested or
exercisable) shall automatically terminate and be canceled immediately upon
such termination.

 

(c)           Forfeiture. By
accepting these Options, the Grantee acknowledges and agrees that the Options
have been granted as an incentive to the Grantee to remain employed by the
Company and the Subsidiaries, and to use his or her best

 

5

 

efforts to enhance the value of the Company and the
Subsidiaries over the long-term. Accordingly, notwithstanding anything
contained in this Agreement to the contrary, if, (A) during the Grantee’s
employment with the Company or any Subsidiary, (B) during any
post-termination option exercise period, or (C) during the period ending
one (1) year after the expiration of any post-termination option exercise
period (the date such period expires, the “One-Year Date”), the Grantee,
except with the prior written consent of the Committee,

 

(i)  directly or
indirectly, owns any interest in, operates, joins, controls or participates as
a partner, director, principal, officer, or agent of, enters into the
employment of, acts as a consultant to, or performs any services for any entity
which has operations that compete with any business of the Company and the
Subsidiaries in which the Grantee was employed (in any capacity) in any
jurisdiction in which such business is engaged, or in which any of the Company
and the Subsidiaries have documented plans to become engaged of which the
Grantee has knowledge at the time of the Grantee’s termination of employment
(the “Business”), except where (x) the Grantee’s interest or
association with such entity is unrelated to the Business, (y) such
entity’s gross revenue from the Business is less than 10% of such entity’s
total gross revenue, and (z) the Grantee’s interest is directly or
indirectly less than two percent (2%) of the Business;

 

(ii)  directly
or indirectly, solicits for employment, employs or otherwise interferes with
the relationship of the Company or any of its Affiliates with any natural person
throughout the world who is or was employed by or otherwise engaged to perform
services for the Company or any of its Affiliates at any time during the
Grantee’s employment with the Company or any Subsidiary (in the case of any
such activity during such time) or during the twelve-month period preceding
such solicitation, employment or interference (in the case of any such activity
after the termination of the Grantee’s employment); or

 

(iii)  directly
or indirectly, discloses or misuses any confidential information of the Company
or any of its Affiliate (such activities to be collectively referred to as “Wrongful
Conduct”), then

 

all Options granted hereunder, to the extent they
remain unexercised, shall automatically terminate and be canceled immediately as
of the date on which the Grantee first engaged in such Wrongful Conduct and, in
such case and in the case of the Grantee’s termination for Cause, the Grantee
shall pay to the Company in cash any Financial Gain the Grantee realized from
exercising all or a portion of the Options granted hereunder within the period
commencing six (6) months prior to the termination of the Grantee’s employment
and ending on the One-Year Date (such period, the “Wrongful Conduct Period”).
For

 

6

 

purposes of this Section 4(c), “Financial Gain”
shall equal, on each date of exercise during the Wrongful Conduct Period, the
excess of (x) the greater of (I) the Fair Market Value on the
date of exercise and (II) the Fair Market Value on the date of sale of
the Exercise Shares, over (y) the Exercise Price, multiplied by the
number of shares of Common Stock purchased pursuant to the exercise (without
reduction for any shares of Common Stock surrendered or attested to). By
executing this Option Agreement, the Grantee hereby consents to and authorizes
the Company and the Subsidiaries to deduct from any amounts payable by such
entities to the Grantee any amounts the Grantee owes to the Company under this
Section 4(c). This right of set-off is in addition to any other remedies the
Company may have against the Grantee for the Grantee’s breach of this Agreement.
The Grantee’s obligations under this Section 4(c) shall be cumulative (but not
duplicative) of any similar obligations the Grantee has under this Agreement or
pursuant to any other agreement with the Company or any Subsidiary.

 

5.             Restrictions
on Exercise; Non-Transferability of Options.

 

(a)           Restrictions on Exercise. Once vested in accordance with the
provisions of this Agreement, the Options may be exercised only with respect to
full shares of Common Stock. No fractional shares of Common Stock shall be
issued. Notwithstanding any other provision of this Agreement, the Options may
not be exercised in whole or in part, and no certificates representing Shares
shall be delivered, (i) unless all requisite approvals and consents of
any governmental authority of any kind having jurisdiction over the exercise of
the Options shall have been secured, and (ii) unless Section 5(c)
shall have been satisfied.

 

(b)           Non-Transferability
of Options. The Options may be exercised only by the Grantee or, following
his death, by the Grantee’s estate. The Options are not assignable or
transferable, in whole or in part, and may not, directly or indirectly, be offered,
transferred, sold, pledged, assigned, alienated, hypothecated or otherwise
disposed of or encumbered (including without limitation by gift, operation of
law or otherwise) other than by will or by the laws of descent and distribution
to the estate of the Grantee upon the Grantee’s death, provided that the
deceased Grantee’s beneficiary or the representative of the Grantee’s estate
shall acknowledge and agree in writing, in a form reasonably acceptable to the
Company, to be bound by the provisions of this Agreement and the Plan as if
such beneficiary or the estate were the Grantee.

 

(c)           Withholding. Whenever
Shares are to be issued pursuant to the Options, the Company may require the
recipient of the Shares to remit to the Company an amount in cash sufficient to
satisfy the statutory minimum U.S. federal, state and local and non-U.S. tax
withholding requirements as a condition to the issuance of such Shares. In the
event any cash is paid to the Grantee or the Grantee’s estate or beneficiary
pursuant to Section 7 hereof or Article X of the

 

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Plan, the Company shall have the right to withhold an
amount from such payment sufficient to satisfy the statutory minimum U.S.
federal, state and local and non-U.S. tax withholding requirements. The
Committee may, in its discretion, require or permit the Grantee to elect,
subject to such conditions as the Committee shall impose, to meet such
obligations by having the Company withhold the least number of Shares having a
Fair Market Value sufficient to satisfy all or part of the Grantee’s estimated
total statutory minimum U.S. federal, state, and local and non-U.S. tax
obligation with respect to the issuance of Shares upon exercise of Options.

 

(d)           Additional United
Kingdom Tax Provisions.

 

(i)            Without limiting the
generality of Section 5(c) or Section 13.4 of the Plan, the Grantee irrevocably
agrees to (A) pay to the Company, his employer or former employer (as
appropriate) the amount of any Tax Liability and (B) enter into
arrangements to the satisfaction of the Company, his employer or former
employer (as appropriate) for payment of any Tax Liability. In addition, the Grantee
irrevocably agrees that (I) the Grantee will reimburse the Company, his
employer or former employer (as appropriate) for any secondary class 1
(employer) national insurance contributions (or any similar liability for
social security contribution in any jurisdiction) which (x) the Company
or any employer (or former employer) of the Grantee is liable to pay as a
result of any Taxable Event; and (y) may be lawfully recovered by the
Company or any employer (or former employer) from the Grantee and (II) at
the request of the Company, his employer or former employer, the Grantee shall
join that person in making a valid election to transfer to the Grantee the
whole or any part of the liability for secondary class 1 (employer) national
insurance contributions (or any similar liability for social security
contribution in any jurisdiction) described in clause (I) of this sentence.

 

(ii)           If (A) the
Grantee does not fulfil his obligations arising under the first sentence of
Section 5(d)(i) in respect of any Tax Liability relating to the exercise of the
Option within seven days after the date of exercise and (B) Shares are
readily saleable at that time, the Company shall withhold Sufficient Shares
from the Shares which would otherwise be delivered to the Grantee. From the net
proceeds of sale of those withheld Shares, the Company shall (I) retain
(if the Company is to account for or pay the relevant Tax Liability), (II)
pay to the Grantee’s employer or former employer (if that person is liable to
account for or pay the relevant Tax Liability), or (III) an amount equal
to the Tax Liability, and shall pay any balance to the Grantee. The Grantee’s
obligations under

 

8

 

Section 5(d)(i) shall not be affected by any failure
of the Company to withhold shares under this Section 5(d)(ii).

 

(iii)          The Grantee irrevocably
agrees to enter into a joint election in respect of the Option Shares under
section 431(1) or section 431(2) of ITEPA 2003, if required to do so by the
Company, his employer or former employer, on or before the date of exercise of
the Option.

 

(iv)          The Grantee hereby
appoints the Company (acting by any of its directors from time to time) as the
Grantee’s agent and attorney to (A) sell the Sufficient Shares specified
in Section 5(d)(ii) and deal with the proceeds of that sale in accordance with Section
5(d)(ii); and (II) execute any joint election required to be entered
into under Section 5(d)(iii), in the Grantee’s name and on the Grantee’s behalf.
The Company may appoint one or more persons to act as substitute agent(s) and
attorney(s) for the Grantee and to exercise one or more of the powers conferred
on the Company by the power of attorney set out in this Section 5(d)(iv), other
than the power to appoint a substitute attorney. The Company may subsequently
revoke any such appointment. The power of attorney set out in this Section 5(d)(iv)
shall be irrevocable, save with the consent of the Company, and is given by way
of security to secure the interest of the Company (for itself and as trustee
under this Agreement on behalf of any employer or former employer of the Grantee)
as a person liable to account for or pay any relevant Tax Liability. The
Grantee declares that a person who deals in good faith with the Company or any
substitute attorney as the Grantee’s attorney appointed under this Section 5(d)(iv)
may accept a written statement signed by that person to the effect that this
power of attorney has not been revoked as conclusive evidence of that fact.

 

(v)           As the Grantee is an
employee in the United Kingdom the provisions of this Section 5(d) (but only
this Section 5(d)) shall be governed by and construed in accordance with laws
of England and Wales.

 

6.             Manner
of Exercise. To the extent that any outstanding Options shall have become
and remain vested and exercisable as provided in Sections 3 and 4 and subject
to such reasonable administrative regulations as the Committee may have
adopted, such Options may be exercised, in whole or in part, by notice to the
Secretary of the Company in writing given at least 5 business days prior to the
date as of which the Grantee will so exercise the Options (the “Exercise
Date”), specifying the number of whole Shares with respect to which the
Options are being exercised (the “Exercise Shares”) and the aggregate
Exercise Price for such Exercise Shares. On or before the Exercise Date, the
Grantee (i) shall deliver to the Company full payment for the Exercise
Shares in United

 

9

 

States dollars in cash, or cash equivalents
satisfactory to the Company, and in an amount equal to the product of the
number of Exercise Shares, multiplied by the Exercise Price (such product, the “Aggregate
Exercise Price”) and (ii) the Company shall deliver to the Grantee a
certificate or certificates representing the Exercise Shares and registered in
the name of the Grantee. In lieu of tendering cash, the Grantee may tender
shares of Common Stock that have been owned by the Grantee for at least six
months, having an aggregate Fair Market Value on the Exercise Date equal to the
Aggregate Exercise Price or may deliver a combination of cash and such shares
of Common Stock having an aggregate Fair Market Value equal to the difference
between the Aggregate Exercise Price and the amount of such cash as payment of
the Aggregate Exercise Price, subject to such rules and regulations as may be
adopted by the Committee to provide for the compliance of such payment
procedure with applicable law, including Section 16(b) of the Exchange Act. The
Company may require the Grantee to furnish or execute such other documents as
the Company shall reasonably deem necessary (i) to evidence such
exercise and (ii) to comply with or satisfy the requirements of the
Securities Act, applicable state or non-U.S. securities laws or any other law.

 

7.             Change in Control.

 

(a)           Options. Subject
to Section 7(c), in the event of a Change in Control, all of the Options
outstanding immediately prior to the consummation of the transaction
constituting the Change in Control (regardless of whether such Options are at
such time otherwise vested or exercisable) shall become exercisable or, at the
discretion of the Committee, any or all of such Options shall be canceled in
exchange for a payment in accordance with Section 7(b) of an amount equal to
the product of (i) the Change in Control Price over the Exercise Price,
multiplied by (ii) the aggregate number of Shares covered by all such
Options immediately prior to the Change in Control.

 

(b)           Timing of Option
Cancelation Payments. Payment of the amount calculated in accordance with
Section 7(a) shall be made in cash or, if determined by the Committee (as
constituted immediately prior to the Change in Control), in shares of the
common stock of the New Employer having an aggregate fair market value equal to
such amount and shall be payable in full, as soon as reasonably practicable,
but in no event later than 30 days, following the Change in Control. For
purposes hereof, the fair market value of a share of common stock of the New
Employer shall be determined by the Committee (as constituted immediately prior
to the Change in Control), in good faith.

 

(c)           Alternative Options.
Notwithstanding Sections 7(a) and 7(b), no cancellation, termination,
acceleration of exercisability or vesting or settlement or other payment shall
occur with respect to any Option if the Committee (as constituted immediately
prior to the consummation of the transaction constituting

 

10

 

the Change in Control) reasonably determines, in good
faith, prior to the Change in Control that the Options shall be honored or
assumed, or new rights substituted therefor (such honored, assumed or
substituted Option being hereinafter referred to as an “Alternative Option”)
by the New Employer, provided that any Alternative Options must:

 

(i)  be based on
shares of voting capital stock that are traded on an established U.S.
securities market;

 

(ii)  provide
the Grantee with rights and entitlements substantially equivalent to the rights
and entitlements applicable under the terms of the Options immediately prior to
the consummation of the transaction constituting the Change in Control,
including, but not limited to, an identical exercise and vesting schedule and
identical timing and methods of exercise or payment;

 

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

 

(iv)  have terms
and conditions which provide that in the event that the Grantee suffers an
involuntary termination within two years following a Change in Control any
conditions on the Grantee’s rights under, or any restrictions on transfer or
exercisability applicable to, each such Alternative Option shall be waived or
shall lapse, as the case may be; and

 

(v)  not be
subject to the requirements of section 409A of the Code.

 

8.             No
Rights as Stockholder. The Grantee shall have no voting or other rights as
a stockholder of the Company with respect to any Shares covered by the Options
until the exercise of the Options and the issuance of a certificate or
certificates to the Grantee for such Shares. No adjustment shall be made for
dividends or other rights for which the record date is prior to the issuance of
such certificate or certificates.

 

9.             Capital
Adjustments. Subject to the terms of the Plan, in the event of any
Adjustment Event affecting the Common Stock such that an adjustment is required
to preserve, or to prevent enlargement of the benefits or potential benefits
made available to the Grantee under the Plan or this Agreement, then the
Committee shall, in such manner as the Committee shall deem equitable, adjust
any or all of the number of shares of Common Stock covered by the Options and
the grant, exercise or conversion price with respect to such Options. In
addition, the Committee may make provision for a cash payment to the Grantee. The
number of shares of Common Stock subject to any Option shall be rounded to the
nearest whole number. Notwithstanding anything to the contrary

 

11

 

contained in this Section 9, the Committee shall not
make any adjustment that would cause the Options to be subject to the
requirements of section 409A of the Code.

 

10.           Miscellaneous.

 

(a)           Notices. All
notices and other communications required or permitted to be given under this
Agreement shall be in writing and shall be deemed to have been given if
delivered personally or sent by certified or express mail, return receipt
requested, postage prepaid, or by any recognized international equivalent of
such delivery, to the Company or the Grantee, as the case may be, at the
following addresses or to such other address as the Company or the Grantee, as
the case may be, shall specify by notice to the others:

 

(i)  if to the
Company, to it at:

 

SIRVA,
Inc.

Law Department

700 Oakmont Lane

Westmont, Illinois  60559

Attention:  General Counsel

 

(ii)  if to the
Grantee, to the Grantee at the address specified on Schedule A hereto under the
heading “Grantee’s Address”.

 

All such notices and communications shall be deemed to
have been received on the date of delivery if delivered personally or on the
third business day after the mailing thereof, provided that the party giving
such notice or communication shall have attempted to telephone the party or
parties to which notice is being given during regular business hours on or
before the day such notice or communication is being sent, to advise such party
or parties that such notice is being sent.

 

(b)           Binding Effect;
Benefits. This Agreement shall be binding upon and inure to the benefit of
the parties to this Agreement and their respective successors and assigns. Nothing
in this Agreement, express or implied, is intended or shall be construed to
give any person other than the parties to this Agreement or their respective
successors or assigns any legal or equitable right, remedy or claim under or in
respect of any agreement or any provision contained herein.

 

(c)           Waiver; Amendment.

 

(i)            Waiver. Any
party hereto or beneficiary hereof may by written notice to the other parties (A)
extend the time for the performance of any of the obligations or other actions
of the other parties under this

 

12

 

Agreement, (B) waive compliance with any of the
conditions or covenants of the other parties contained in this Agreement and (C)
waive or modify performance of any of the obligations of the other parties
under this Agreement. Except as provided in the preceding sentence, no action
taken pursuant to this Agreement, including, without limitation, any
investigation by or on behalf of any party or beneficiary, shall be deemed to
constitute a waiver by the party or beneficiary taking such action of
compliance with any representations, warranties, covenants or agreements
contained herein. The waiver by any party hereto or beneficiary hereof of a
breach of any provision of this Agreement shall not operate or be construed as
a waiver of any preceding or succeeding breach and no failure by a party or
beneficiary to exercise any right or privilege hereunder shall be deemed a
waiver of such party’s or beneficiary’s rights or privileges hereunder or shall
be deemed a waiver of such party’s or beneficiary’s rights to exercise the same
at any subsequent time or times hereunder.

 

(ii)           Amendment. This
Agreement may not be amended, modified or supplemented orally, but only by a
written instrument executed by the Grantee and the Company; provided, that,
notwithstanding anything to the contrary contained in this Agreement, without
the Grantee’s consent, the Committee may amend (such amendment to have the
minimum economic effect necessary, as determined by the Committee in its sold
discretion) this Agreement in such manner as may be necessary or appropriate to
exempt the Options from section 409A of the Code.

 

(d)           Assignability. Neither
this Agreement nor any right, remedy, obligation or liability arising hereunder
or by reason hereof shall be assignable by the Company or the Grantee without
the prior written consent of the other parties; provided that the Company may
assign all or any portion of its rights hereunder to one or more persons or
other entities designated by it in connection with a Change in Control of the
Company.

 

(e)           Applicable Law. EXCEPT  AS OTHERWISE
EXPRESSLY PROVIDED HEREIN, THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK, EXCEPT TO THE EXTENT THAT THE
CORPORATE LAW OF THE STATE OF DELAWARE SPECIFICALLY AND MANDATORILY APPLIES.

 

(f)            Consent to
Electronic Delivery. By executing this Agreement, Grantee hereby consents
to the delivery of information (including, without

 

13

 

limitation, information required to be delivered to
the Grantee pursuant to applicable securities laws) regarding the Company and
the Subsidiaries, the Plan, the Options and the Shares subject to the Options
via Company web site or other electronic delivery.

 

(g)           Severability; Blue
Pencil. In the event that any one or more of the provisions of this
Agreement shall be or become invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained
herein shall not be affected thereby. Grantee and the Company agree that the
covenants contained in this Agreement are reasonable covenants under the
circumstances, and further agree that if, in the opinion of any court of
competent jurisdiction such covenants are not reasonable in any respect, such
court shall have the right, power and authority to excise or modify such
provision or provisions of these covenants as to the court shall appear not reasonable
and to enforce the remainder of these covenants as so amended.

 

(h)           Section and Other
Headings, etc. The section and other headings contained in this Agreement
are for reference purposes only and shall not affect the meaning or
interpretation of this Agreement.

 

(i)            No Guarantee of
Employment. Nothing in this Agreement shall interfere with or limit in any
way the right of the Company or any Subsidiary to terminate the Grantee’s
employment at any time, nor to confer upon the Grantee any right to continue in
the employ of the Company or any Subsidiary.

 

(j)            Counterparts. This
Agreement may be executed in any number of counterparts, each of which shall be
deemed to be an original and all of which together shall constitute one and the
same instrument.

 

(k)           Delegation. All
of the powers, duties and responsibilities of the Committee specified in this
Agreement may, to the full extent permitted by applicable law, be exercised and
performed by the Board of Directors of the Company or any duly constituted
committee thereof to the extent authorized by the Board or the Committee to
exercise and perform such powers, duties and responsibilities.

 

(l)            Gender and Number.
Except when otherwise indicated by the context, words in the masculine gender
used herein shall include the feminine gender, the singular shall include the
plural, and the plural shall include the singular.

 

-Signature page follows-

 

14

 

IN
WITNESS WHEREOF, the Company and the Grantee have executed this Agreement as of
the Grant Date.

 

	
   

  	
  SIRVA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE GRANTEE

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: «Name»

  
					

 

 

Schedule A

 

Option
Grant Information

 

	
  Grantee

  	
  «name»

  
	
   

  	
   

  
	
  Grantee Address

  	
  «address»

  «citystatezip»

  
	
   

  	
   

  
	
  Grant Date

  	
  «grantdate»

  
	
   

  	
   

  
	
  Total Number of Shares Subject to
  the Options

  	
  «options»

  
	
   

  	
   

  
	
  Exercise Price

  	
  «exerciseprice»

  
	
   

  	
   

  
	
  Vesting Schedule

  	
  Over four (4) years in equal installments on each of
  the first four anniversaries of the Grant Date, subject to the Grantee’s
  continuous employment with the Company or a Subsidiary from the Grant Date to
  such anniversaryExhibit 10.12

 

RESTRICTED
STOCK AGREEMENT

 

RESTRICTED
STOCK AGREEMENT, dated as of the Grant Date specified on Schedule A hereto
under the heading “Grant Date”, by and between SIRVA, Inc., a Delaware
corporation (the “Company”), and the grantee whose name appears on the
signature page hereof (the “Grantee”).

 

W  I
T  N  E  S  S  E  T  H:

 

WHEREAS,
to motivate key employees, consultants and non-employee directors of the
Company and the Subsidiaries by providing them an ownership interest in the
Company, the Board of Directors (the “Board”) has established, and the
shareholders of the Company have approved, the SIRVA, Inc. Amended and Restated
Stock Incentive Plan, as the same may be amended from time to time (the “Plan”);
and

 

WHEREAS,
pursuant to the Plan, the Compensation Committee of the Board has authorized
the grant to the Grantee of Restricted Stock (as defined below); and

 

WHEREAS,
the Grantee and the Company desire to enter into an agreement to evidence and
confirm the grant of such Restricted Stock on the terms and conditions set
forth herein.

 

NOW,
THEREFORE, to evidence the Restricted Stock so granted, and to set forth the
terms and conditions governing such Restricted Stock, the Company and the
Grantee hereby agree as follows:

 

1. Grant
of Restricted Stock. The Company hereby evidences and confirms its grant to
the Grantee, effective as of the date hereof (the “Grant Date”), of the
number of shares of the common stock, par value $.01 per share, of the Company
(each, a “Share” and, collectively, the “Shares”) specified on
Schedule A hereto under the heading “Restricted Stock”. All Shares received by
the Grantee under this Agreement are subject to the restrictions contained
herein and are referred to herein as “Restricted Stock.”  This Agreement is subordinate to, and the
terms and conditions of the Restricted Stock granted hereunder are subject to,
the terms and conditions of the Plan, which are incorporated by reference
herein. If there is any inconsistency between the terms hereof and the terms of
the Plan, the terms of the Plan shall govern. Any capitalized terms used herein
without definition shall have the meanings set forth in the Plan.

 

2. Vesting
of Restricted Stock.

 

(a)  Restricted Period. Except as provided
in Section 2(b)(i) or Section 6 hereof, the Restricted Stock granted hereby may
not be sold, assigned, transferred, pledged, hypothecated or otherwise directly
or indirectly encumbered or disposed of until the end

 

 

of the Restriction
Period (the “Restriction Period”) set forth on the signature page hereof
under the heading “Restriction Period” or at such earlier date as such
restrictions shall otherwise lapse under the terms of this Agreement or the
Plan.

 

(b)  Termination of Employment. Notwithstanding
anything contained in this Agreement to the contrary, (i) subject
to the provisions of Article X of the Plan, if the Grantee’s employment is
terminated due to his death or Disability during the Restriction Period, the Restriction
Period shall terminate with respect to a pro rata portion of the Shares
underlying the Restricted Stock then held by the Grantee based on the number of
months the Grantee was employed during the applicable Restriction Period, and
the remaining Restricted Stock for which the Restriction Period has not then
expired shall be forfeited and canceled as of the date of such termination, and
(ii) if the Grantee’s employment is terminated for any other reason
during the Restriction Period, any Restricted Stock held by the Grantee for
which the Restriction Period has not then expired shall be forfeited and
canceled as of the date of such termination. Nothing in the Agreement shall be
deemed to confer on the Grantee any right to continue in the employ of the
Company or any Subsidiary, or to interfere with or limit in any way the right
of the Company or Subsidiary to terminate such employment at any time.

 

(c)  Committee Discretion. Notwithstanding
anything contained in this Agreement to the contrary, the Committee, in its
sole discretion, may accelerate the expiration date of the Restriction Period
with respect to any Restricted Stock under this Agreement, at such times and
upon such terms and conditions as the Committee shall determine.

 

3. Delivery
of Restricted Stock.

 

(a)  Stock Certificates; Share Register. On
or as soon as practicable after the Grant Date, the Company shall either (i)
issue one or more stock certificates evidencing the grant of Restricted Stock
to Grantee, which shall be held by the Company until the expiration of the Restriction
Period, at which time the Shares shall be delivered to the Grantee, or (ii)
register the grant of Restricted Stock in the name of the Grantee through a
book entry credit in the records of the Company’s transfer agent, which shall
be registered as restricted until the expiration of the Restriction Period.

 

(b)  Stock Powers. In the event that the
Company issues one or more stock certificates evidencing the grant of
Restricted Stock to the Grantee, the Grantee shall deposit with the Secretary
of the Company stock powers or other instruments of transfer or assignment,
duly endorsed in blank with signature guaranteed, corresponding to each
certificate for all Shares until the expiration of the Restriction Period, at
which time the stock powers shall be returned to the Grantee.

 

2

 

4. Grantee’s
Representations, Warranties and Covenants.

 

The
Grantee represents and warrants that the Restricted Stock has been, and any
Shares will be, acquired by the Grantee solely for the Grantee’s own account
for investment and not with a view to or for sale in connection with any
distribution thereof. The Grantee further understands, acknowledges and agrees
that the Restricted Stock, and any Shares, may not be transferred, sold,
pledged, hypothecated or otherwise disposed of except to the extent expressly
permitted hereby and at all times in compliance with the U.S. Securities Act of
1933, as amended, and the rules and regulations of the Securities Exchange
Commission thereunder, and in compliance with applicable state securities or “blue
sky” laws and non-U.S. securities laws.

 

5. Grantee’s
Rights with Respect to Restricted Stock.

 

(a)  Restrictions on Transferability. During
the Restriction Period, the Restricted Stock granted hereby is not assignable
or transferable, in whole or in part, and may not, directly or indirectly, be
offered, transferred, sold, pledged, assigned, alienated, hypothecated or
otherwise disposed of or encumbered (including without limitation by gift,
operation of law or otherwise) other than by will or by the laws of descent and
distribution to the estate of the Grantee upon the Grantee’s death; provided
that the deceased Grantee’s beneficiary or representative of the Grantee’s
estate shall acknowledge and agree in writing, in a form reasonably acceptable
to the Company, to be bound by the provisions of this Agreement and the Plan as
if such beneficiary or the estate were the Grantee.

 

(b)  Rights as Stockholder. Except as
otherwise provided in this Agreement or the Plan, Grantee shall have, with respect
to all Restricted Stock, the right to vote such Restricted Stock and the right
to receive cash and other dividends, if any, as may be declared on the
Restricted Stock from time to time, but shall otherwise enjoy none of the
rights of a stockholder unless and until the expiration of the Restriction
Period with respect to such Restricted Stock. Any securities issued to or
received by the Grantee with respect to Restricted Stock as a result of a stock
split, a dividend payable in capital stock or other securities, a combination
of shares or any other change or exchange of the Restricted Stock for other
securities, by reclassification, reorganization, distribution, liquidation,
merger, consolidation, or otherwise, shall have the same status and bear the same
legend as the Restricted Stock and shall be held by the Company if the
Restricted Stock is being so held, unless otherwise determined by the
Committee.

 

(c)  Legend. Any certificate evidencing the
Restricted Stock and any book entry credit shall reflect the following legend: “THE
SHARES REPRESENTED BY THIS CERTIFICATE OR THIS BOOK ENTRY ARE SUBJECT TO THE
TERMS AND CONDITIONS (INCLUDING FORFEITURE) CONTAINED IN THE SIRVA, INC. AMENDED
AND RESTATED OMNIBUS STOCK INCENTIVE PLAN AND THE SHARES EVIDENCED HEREBY ARE
NOT ASSIGNABLE OR OTHERWISE

 

3

 

TRANSFERABLE
EXCEPT IN ACCORDANCE WITH SUCH PLAN, A COPY OF WHICH IS ON FILE WITH THE
SECRETARY OF THE COMPANY.”

 

(d)  Forfeiture. By accepting the
Restricted Stock, the Grantee acknowledges and agrees that the Restricted Stock
have been granted as an incentive to the Grantee to remain employed by the
Company and the Subsidiaries, and to use his or her best efforts to enhance the
value of the Company and the Subsidiaries over the long-term. Accordingly,
notwithstanding anything contained in this Agreement to the contrary, if, (A)
during the Grantee’s employment with the Company or any Subsidiary, (B)
during any post-termination period where the Restriction Period may continue to
lapse, or (C) during the period ending one (1) year after the expiration
of any post-termination period (the date such period expires, the “One-Year
Date”), the Grantee, except with the prior written consent of the
Committee,

 

(i)  directly or indirectly, owns any interest in,
operates, joins, controls or participates as a partner, director, principal,
officer, or agent of, enters into the employment of, acts as a consultant to,
or performs any services for any entity which has operations that compete with
any business of the Company and the Subsidiaries in which the Grantee was
employed (in any capacity) in any jurisdiction in which such business is
engaged, or in which any of the Company and the Subsidiaries have documented
plans to become engaged of which the Grantee has knowledge at the time of the
Grantee’s termination of employment (the “Business”), except where (x)
the Grantee’s interest or association with such entity is unrelated to the
Business, (y) such entity’s gross revenue from the Business is less than
10% of such entity’s total gross revenue, and (z) the Grantee’s interest
is directly or indirectly less than two percent (2%) of the Business;

 

(ii)  directly or indirectly, solicits for
employment, employs or otherwise interferes with the relationship of the
Company or any of its Affiliates with any natural person throughout the world
who is or was employed by or otherwise engaged to perform services for the
Company or any of its Affiliates at any time during the Grantee’s employment
with the Company or any Subsidiary (in the case of any such activity during
such time) or during the twelve-month period preceding such solicitation,
employment or interference (in the case of any such activity after the
termination of the Grantee’s employment); or

 

(iii)  directly or indirectly, discloses or misuses
any confidential information of the Company or any of its Affiliate (such
activities to be collectively referred to as “Wrongful Conduct”), then

 

all Restricted Stock granted hereunder, to the extent
they remain subject to the Restriction Period, shall automatically terminate
and be canceled immediately as of the date on

 

4

 

which the Grantee first engaged in such Wrongful
Conduct and, in such case and in the case of the Grantee’s termination for
Cause, the Grantee shall pay to the Company in cash any Financial Gain the
Grantee realized from the lapse of the Restriction Period on all or a portion
of the Restricted Stock granted hereunder within the period commencing six (6)
months prior to the termination of the Grantee’s employment and ending on the
One-Year Date (such period, the “Wrongful Conduct Period”). For purposes
of this Section 4(c), “Financial Gain” shall equal, on each date of lapse
of the Restriction Period, the greater of (x) the Fair Market Value on
the date of lapse of the Restriction Period and (y) the Fair Market
Value on the date of sale of the Shares, multiplied by the number of shares of
Common Stock no longer subject to the Restriction Period (without reduction for
any shares of Common Stock surrendered or attested to). By executing this Restricted
Stock Agreement, the Grantee hereby consents to and authorizes the Company and
the Subsidiaries to deduct from any amounts payable by such entities to the
Grantee any amounts the Grantee owes to the Company under this Section 4(d). This
right of set-off is in addition to any other remedies the Company may have
against the Grantee for the Grantee’s breach of this Agreement. The Grantee’s
obligations under this Section 4(d) shall be cumulative (but not duplicative)
of any similar obligations the Grantee has under this Agreement or pursuant to
any other agreement with the Company or any Subsidiary.

 

6. Change
in Control.

 

(a)  Subject to Section 6(b), in the event of a
Change in Control, the Restriction Period applicable to all of the Grantee’s
shares of Restricted Stock outstanding shall lapse immediately prior to the
consummation of the transaction constituting the Change in Control.

 

(b)  Notwithstanding Section 6(a) hereof, no
cancellation, termination, acceleration of vesting, lapse of a Restriction
Period or settlement or other payment shall occur with respect to any
outstanding Restricted Stock if the Committee (as constituted immediately prior
to the Change in Control) reasonably determines, in good faith, prior to the
Change in Control that such outstanding Restricted Stock shall be honored or
assumed, or new rights substituted therefor (such honored, assumed or
substituted Restricted Stock being hereinafter referred to as an “Alternative
Award”) by the New Employer, provided that any Alternative Award must:

 

(i)  be based on
shares of voting common stock that are traded on an established U.S. securities
market;

 

(ii)  provide
the Grantee with rights and entitlements substantially equivalent to the
rights, terms and conditions applicable under such Restricted Stock, including,
but not limited to, an identical vesting schedule and identical timing and
method of payment;

 

5

 

(iii)  have
terms and conditions which provide that in the event that the Grantee suffers
an involuntary termination within two years following a Change in Control any
conditions on the Grantee’s rights under, or any Restriction Period applicable
to, all such Restricted stock held by the Grantee shall be waived or shall
lapse, as the case may be.

 

7. Miscellaneous.

 

(a)  Notices. All notices and other
communications required or permitted to be given under this Agreement shall be
in writing and shall be deemed to have been given if delivered personally or
sent by certified or express mail, return receipt requested, postage prepaid,
or by any recognized international equivalent of such delivery, to the Company
or Grantee, as the case may be, at the following addresses or to such other
address as the Company or Grantee, as the case may be, shall specify by notice
to the others:

 

(i)  if to the Company, to it at:

 

SIRVA, Inc.

Law Department

700 Oakmont Lane

Westmont, Illinois  60559

Attention:  General Counsel

 

(ii)  if to Grantee, to the Grantee at the address
set forth on Schedule A hereto under the heading “Grantee’s Address”.

 

(b)  Binding Effect; Benefits. This
Agreement shall be binding upon and inure to the benefit of the parties to this
Agreement and their respective successors and assigns. Nothing in this
Agreement, express or implied, is intended or shall be construed to give any
person other than the parties to this Agreement or their respective successors
or assigns any legal or equitable right, remedy or claim under or in respect of
any agreement or any provision contained herein.

 

(c)  Waiver. Any party hereto may by
written notice to the other party (A) extend the time for the
performance of any of the obligations or other actions of the other party under
this Agreement, (B) waive compliance with any of the conditions or
covenants of the other party contained in this Agreement, and (C) waive
or modify performance of any of the obligations of the other party under this
Agreement. Except as provided in the preceding sentence, no action taken
pursuant to this Agreement, including, without limitation, any investigation by
or on behalf of any party, shall be deemed to constitute a waiver by the party
taking such action of compliance with any representations, warranties,
covenants or agreements contained herein. The waiver by any party hereto of

 

6

 

a breach of any
provision of this Agreement shall not operate or be construed as a waiver of
any preceding or succeeding breach and no failure by a party to exercise any
right or privilege hereunder shall be deemed a waiver of such party’s rights or
privileges hereunder or shall be deemed a waiver of such party’s rights to
exercise the same at any subsequent time or times hereunder.

 

(d)  Amendment. This Agreement may not be
amended, modified or supplemented orally, but only by a written instrument
executed by the Grantee and the Company.

 

(e)  Assignability. Neither this Agreement
nor any right, remedy, obligation or liability arising hereunder or by reason
hereof shall be assignable by the Company or Grantee without the prior written
consent of the other party; provided that the Company may assign all or any
portion of its rights or obligations under this Agreement to one or more
persons or other entities designated by it in connection with a Change in
Control of the Company.

 

(f)  Tax Withholding. The Company may
require the recipient of the Shares to remit to the Company an amount in cash
sufficient to satisfy the statutory minimum U.S. federal, state and local and
non-U.S. tax withholding requirements as a condition to the issuance of such
Shares. In the event any cash is paid to the Grantee or the Grantee’s estate or
beneficiary pursuant to Section 6 hereof or Article IX of the Plan, the Company
shall have the right to withhold an amount from such payment sufficient to
satisfy the statutory minimum U.S. federal, state and local and non-U.S. tax
withholding requirements. The Committee may, in its discretion, require or
permit the Grantee to elect, subject to such conditions as the Committee shall
impose, to meet such obligations by having the Company withhold or sell the
least number of shares of Restricted Stock having a Fair Market Value sufficient
to satisfy all or part of the Grantee’s estimated total statutory minimum U.S.
federal, state and local and non-U.S. tax obligation with respect to the
issuance of or lapse of restrictions on the Shares.

 

(g)  Applicable Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK, EXCEPT TO THE EXTENT THAT THE
CORPORATE LAW OF THE STATE OF DELAWARE SPECIFICALLY AND MANDATORILY APPLIES.

 

(h)  Consent to Electronic Delivery. By
executing this Agreement, Grantee hereby consents to the delivery of
information (including, without limitation, information required to be
delivered to the Grantee pursuant to applicable securities laws) regarding the
Company and the Subsidiaries, the Plan, and the Restricted Stock via Company
web site or other electronic delivery.

 

7

 

(i)  Section and Other Headings, etc. The
section and other headings contained in this Agreement are for reference
purposes only and shall not affect the meaning or interpretation of this
Agreement.

 

(j)  Counterparts. This Agreement may be
executed in any number of counterparts, each of which shall be deemed to be an
original and all of which together shall constitute one and the same
instrument.

 

–  Signature
page follows –

 

8

 

IN
WITNESS WHEREOF, the Company and Grantee have executed this Agreement as of the
Grant Date.

 

	
   

  	
  SIRVA,
  Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GRANTEE

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:
  «name»

  
					

 

 

Schedule A

 

	
  Grantee

  	
  «name»

  
	
   

  	
   

  
	
  Grantee’s Address

  	
  «address»

  «citystatezip»

  
	
   

  	
   

  
	
  Grant Date

  	
  «grantdate»

  
	
   

  	
   

  
	
  Restricted Stock

  	
  «restrictedstock»

  
	
   

  	
   

  
	
  Restriction Period

  	
  Lapses over five (5) years in equal installments on
  each of the first five anniversaries of the Grant Date, subject to the
  Grantee’s continuous employment with the Company or a Subsidiary from the
  Grant Date to such anniversary

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