Document:

exv10w33

 

EXHIBIT 10.33

INCENTIVE STOCK OPTION AGREEMENT

     THIS INCENTIVE STOCK OPTION AGREEMENT (this “Agreement”), dated as of                     
(the “Grant Date”), is between First Mercury Holdings, Inc., a Delaware corporation (the
“Company”), and                      (the “Participant”).

     WHEREAS, the Company desires, by affording the Participant an opportunity to purchase shares
of the Company’s Common Stock (the “Common Stock”) as hereinafter provided, to carry out the
purposes of the First Mercury Holdings, Inc. 1998 Stock Compensation Plan, as amended, and assumed
by the Company (the “Plan”); and

     WHEREAS, the Committee has duly made all determinations necessary or appropriate to the grants
hereunder.

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

1. Definitions.

     For purposes of this Agreement, the definitions of terms contained in the Plan hereby are
incorporated by reference, except to the extent that any term is specifically defined in this
Agreement.

2. Grant of Option, Option Price and Term.

     (a) The Company hereby grants to the Participant, as a matter of separate agreement and
not in lieu of salary or any other compensation for services, the right and option (the
“Option”) to purchase ___shares of the Common Stock of the Company (the “Option
Shares”) on the terms and conditions herein set forth. The Participant shall have all the
rights and obligations as provided for in this Agreement. The Option granted hereunder is
designated as an “incentive stock option” as that term is defined in Section 422 of the
Internal Revenue Code of 1986, as amended (the “Code”).

     (b) For each of the Option Shares purchased, the Participant shall pay to the Company
$                     per share (the “Option Price”). Accordingly, the aggregate Option Price to
exercise all of the Option is $                     (the “Aggregate Option Price”).

     (c) The term of this Option shall be a period of five (5) years from the grant Date
(the “Option Period”). The termination of the Option Period shall result in the termination
and cancellation of the Option. In no event shall the Option be exercisable for any period
greater than the Option Period. During the Option Period, the Option shall be exercisable
in accordance with the determination of the Committee.

     (d) The Option shall be exercisable to the extent vested. The percentage of the Option
which is vested shall be determined in accordance with the following schedule:

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Eighty percent (80%) of the Option shall vest in equal percentages on each
of the first four (4) anniversaries of the Grant Date, and the remainder
shall vest on the day prior to the fifth anniversary of the Grant Date
(i.e., 20% of the Option shall vest each year).

The Option shall vest on the first anniversary of the Grant Date.

     (e) Notwithstanding the foregoing Section 2(d), the Option shall be one hundred percent
(100%) vested in the event of a Change in Control.

     (f) If the Participant incurs a Termination of Employment due to death, the Option
shall become one hundred percent (100%) vested and shall thereafter be fully exercisable for
a period of ninety (90) days following the date of the appointment of a Representative or
until the expiration of the Option Period, whichever period is shorter.

     (g) If the Participant incurs a Termination of Employment due to a Disability, the
Option shall become one hundred percent (100%) vested and shall thereafter be fully
exercisable by the Participant for the period of ninety (90) days immediately following the
date of such Termination of Employment or until the expiration of the Option Period,
whichever period is shorter, and the Participant’s death at any time following such
Termination of Employment due to a Disability shall not affect the foregoing.

     (h) If the Participant incurs a Termination of Employment due to Retirement, or the
Termination of Employment is involuntary on the part of the Participant (but is not due to
death or Disability or with Cause), the Option shall thereupon terminate, except that such
Option, to the extent then vested and exercisable, may be exercised for the lesser of the
ninety (90) day period commencing with the date of such Termination of Employment or until
the expiration of the Option Period. If the Participant incurs a Termination of Employment
which is voluntary on the part of the Participant (and is not due to Retirement) the Option
shall terminate thirty (30) days after such Termination. If the Participant’s Termination
of Employment is for Cause, the Option shall terminate immediately. The death or Disability
of the Participant after a Termination of Employment otherwise provided herein shall not
extend the time permitted to exercise an Option.

     (i) The Company shall not be required to issue any fractional Option Shares, but the
Fair Market Value of such fractional Option Shares, as of the date of exercise, shall be
paid in cash to the Participant.

3. Exercise. The Option shall be exercisable during the Participant’s lifetime only by the
Participant (or his or her guardian or legal representative), and after the Participant’s death
only by the Representative. The Option may only be exercised by the delivery to the Company of a
properly completed written notice, substantially in the form attached hereto as Exhibit A
or in such other form satisfactory to the Committee, which notice shall specify the number of
Option Shares to be purchased and the aggregate Option Price for such Option Shares, together with
payment in full of such aggregate Option Price. Payment shall only be made:

     (a) in cash or by check;

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     (b) with the prior written approval of the Committee, by the delivery to the Company of
a valid and enforceable stock certificate (or certificates) representing shares of Common
Stock held by the Participant for a period of six (6) months, which is endorsed in blank or
accompanied by an executed stock power (or powers) and guaranteed in a manner acceptable to
the Committee;

     (c) at the discretion of the Committee, by a loan extended by the Company;

     (d) in cash by a broker-dealer approved by the Committee to whom the Participant has
submitted a notice of exercise; or

     (e) in any combination of (a), (b), (c) or (d).

If any part of the payment of the Option Price is made in shares of Common Stock, such shares shall
be valued by using their Fair Market Value as of their date of delivery.

     The Option shall not be exercised unless there has been compliance with all the preceding
provisions of this Section 3, and, for all purposes of this Agreement, the date of the exercise of
the Option shall be the date upon which there is compliance with all such requirements.

4. Payment of Withholding Taxes. If the Company is obligated to withhold an amount on
account of any tax imposed as a result of the exercise of the Option, the Participant shall be
required to pay such amount to the Company, as provided in the Plan.

5. Requirements of Law; Registration and Transfer Requirements; Agreement Among
Stockholders. The Company shall not be required to sell or issue any shares under the Option
if the issuance of such shares shall constitute a violation of any provision of any law or
regulation of any governmental authority applicable to the Company. The Option and each and every
obligation of the Company hereunder are subject to the requirement that the Option may not be
exercised or performed, in whole or in part, unless and until the Option Shares are listed,
registered or qualified, properly marked with a legend or other notation, or otherwise restricted,
as in provided for in the Plan. Any Option Shares issued in connection with this Option shall be
subject to the First Amended and Restated Agreement Among Stockholders of the Company, effective as
of October 23, 1998, as amended or restated (the “Stockholders Agreement”), and the Participant
shall be required to sign a counterpart of the Stockholders Agreement in connection with the
Participant’s exercise of this Option (if the Participant has not already signed a counterpart of
the Stockholders Agreement).

6. Adjustments / Change in Control. In the event of a Change in Control or other corporate
restructuring provided for in the Plan, the Participant shall have such rights, and the committee
shall take such actions, as are provided for in the Plan or as otherwise provided herein.

7. Transferability. The Option and any interest in the Option may not be sold, assigned,
conveyed, gifted, pledged, hypothecated or otherwise transferred in any manner without the prior
written consent of the Company, and any such attempted sale, assignment, conveyance, gift, pledge,
hypothecation or transfer other than as permitted herein shall be null and void.

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8. Plan. Notwithstanding any other provision of this Agreement, the Option is granted
pursuant to the Plan, as has been adopted by the Company, and is subject to all the terms and
conditions of the Plan, as the same may be amended from time to time; provided, however, that no
provision of the Plan shall deprive the Participant, without the Participant’s consent, of the
Option or of any of the Participant’s rights under this Agreement. The reasonable interpretation
and construction by the Committee of the Plan, this Agreement, the Option and such rules and
regulations as may be adopted by the Committee for the purpose of administering the Plan, shall be
final and binding upon the Participant.

9. Stockholder Rights. Until the Option shall have been duly exercised to purchase Option
Shares, and such Option Shares have been officially recorded as issued on the Company’s official
stockholder records, no person or entity shall be entitled to vote, receive distributions or
dividends or be deemed for any purpose the holder of any Option Shares, and adjustments for
dividends or otherwise shall be made only if the record date therefor is subsequent to the date
such shares are recorded and after the date of exercise and without duplication of any adjustments.

10. Employment Rights. No provision of this Agreement or of the Option granted hereunder
shall give the Participant any right to continue in the employ of the Company or any of its
Affiliates, create any inference as to the length of employment of the Participant, affect the
right of the Company or its Affiliates to terminate the employment of the Participant, with or
without Cause, or give the Participant any right to participate in any employee welfare or benefit
plan or other program (other than the Plan) of the Company or any of its Affiliates.

11. Disclosure Rights. The Company shall have no duty or obligation to affirmatively
disclose to the Participant or a Representative, and the Participant or Representative shall have
no right to be advised of, any material information regarding the Company or an Affiliate at any
time prior to, upon or in connection with the exercise of the Option or the Company’s purchase of
Common Stock in accordance with the terms of this Agreement.

12. Changes in Company’s Capital Structure. This existence of the Option shall not affect
in any way the right or authority of the Company or its stockholders to make or authorize any or
all adjustments, recapitalizations, reorganizations or other changes in the Company’s capital
structure or its business, or any merger or consolidation of the Company, or any issue of bonds,
debentures, preferred or prior preference stock ahead of or affecting the Common Stock or the
rights thereof, or the dissolution or liquidation of the Company, or any sale or transfer of all or
any part of its assets or business, or any other corporate act or proceeding, whether of a similar
character or otherwise.

13. Investment Representation and Agreement. If, in the opinion of counsel for the
Company, a particular representation is required under the Securities Act of 1933 or any other
applicable federal or state law, or any regulation or rule of any governmental agency, the Company
may require such other representations as the Company reasonably may be determine to be necessary.

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14. Governing Law. This Agreement and the Option granted hereunder shall be governed by,
and construed and enforced in accordance with, the laws of the State of Michigan (other than its
laws respecting choice of law).

15. Entire Agreement. This Agreement, together with the Plan, constitutes the entire
obligation of the parties hereto with respect to the subject matter hereof and shall supersede any
prior expressions of intent or understanding with respect to this transaction.

16. Amendment. Any amendment to this Agreement shall be in writing and signed by the
Company and the Participant.

17. Waiver; Cumulative Rights. The failure or delay of either party to require performance
by the other party of any provision hereof shall not affect its right to require performance of
such provision unless and until such performance has been waived in writing. Each and every right
hereunder is cumulative and may be exercised in part or in whole from time to time.

18. Counterparts. This Agreement may be signed in two counterparts, each of which shall be
an original, but both of which shall constitute but one and the same instrument.

19. Notices. Any notice which either party hereto may be required or permitted to give the
other shall be in writing and may be delivered personally or by mail, postage prepaid, addressed to
the Secretary of the Company, at its then corporate headquarters, and the Participant at his or her
address as shown on the Company’s records, or to such other address as the Participant, by notice
to the Company, may designate in writing from time to time.

20. Headings. The headings contained in this Agreement are for reference purposes only and
shall not affect the meaning or interpretation of this Agreement.

21. Severability. If any provision of this Agreement shall for any reason be held to be
invalid or unenforceable, such invalidity or unenforceability shall not affect any other provision
hereof, and this Agreement shall be construed as if such invalid or unenforceable provision were
omitted.

22. Successors and Assigns. This Agreement shall inure to the benefit of and be binding
upon each successor and assign of the Company. All obligations imposed on the Participant or a
Representative, and all rights granted to the Company hereunder, shall be binding upon the
Participant’s or the Representative’s heirs, legal representatives and successors.

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     IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an officer
thereunto duly authorized, and the Participant has hereunto set his or her hand, all as of the day
and year first above written.

	 	 	 	 	 	 
	 	 	FIRST MERCURY HOLDINGS, INC.
	 	 	 	 	 
	 
	 	By:	 	 
	 
	 	 	 	 
	 
	 	Name:	 	 
	 
	 	 	 	 
	 
	 	Its:	 	 
	 
	 	 	 	 
	 	 	 	 	 
	 	 	PARTICIPANT
	 	 	 	 	 
	 	 	 	 	 
	 	 	 
	 	 	[Participant Name]

[Signature Page to Option Agreement]

 

 

Incentive Stock Option Agreement

Exhibit A

INSTRUCTIONS

FOR EXERCISING STOCK OPTION GRANTED

UNDER THE

FIRST MERCURY HOLDINGS, INC.

1998 STOCK COMPENSATION PLAN

     In order to exercise your Option granted under the First Mercury Holdings, Inc. 1998 Stock
Compensation Plan, as amended, and assumed by the Company (the “Plan”), pursuant to your Incentive
Stock Option Agreement, please complete the items below. In the space provided below, you should
indicate the number of Option Shares for which you are exercising the Option and the aggregate
Option Price therefor. You should be aware that you will be required to pay any required taxes on
the gain on the stock you have acquired. Checks should be made payable to First Mercury Holdings,
Inc. (the “Company”).

	 	 	 	 	 
	 

	 	Number of Option Shares:                                          
	 
	 

	 	Aggregate Option Price:                                             
	 	

Check One:

	 	 	 	 	 
	(a)

	 	—
	 	I am herewith delivering or agree to deliver a check to the
Company equal to the aggregate Option Price specified above
to exercise the Option.
	 
	 	 	 	 
	(b)

	 	—
	 	I will deliver the necessary cash or property to satisfy the
aggregate Option Price specified above at a future date. I
understand that the exercise will not be effective until such
cash or property is delivered

ACKNOWLEDGEMENT/EXECUTION

     I hereby exercise the Option to the extent specified, and understand that I am responsible for
the tax consequences relating to the exercise of the Option and the receipt of shares of Common
Stock.

     Executed this         day of                     ,           .

     Signature:                                                                

     Print Name:                                                             

A-1exv10w34

 

Exhibit 10.34

FIRST MERCURY FINANCIAL CORPORATION

OMNIBUS INCENTIVE PLAN OF 2006

STOCK OPTION GRANT NOTICE AND AGREEMENT

To: [Name] (referred to herein as “Grantee” or “you”)

First Mercury Financial Corporation (the “Company”) is pleased to confirm that you have been
granted a stock option Award (this “Award”), effective
_________ ___, 20___(the “Grant Date”). This
Award is subject to the terms of this Stock Option Grant Notice and Agreement (this “Agreement”)
and is made under the First Mercury Financial Corporation Omnibus Incentive Plan of 2006 (the
“Plan”) which is incorporated into this Agreement by reference. Any capitalized terms used herein
that are otherwise undefined shall have the same meaning provided in the Plan.

     1. Acceptance of Terms and Conditions. By accepting this Award, you agree to be bound by the
terms and conditions herein, the Plan and any and all conditions established by the Company in
connection with Awards issued under the Plan, and understand that this Award does not confer any
legal or equitable right (other than those rights constituting the Award itself) against the
Company or any Subsidiary directly or indirectly, or give rise to any cause of action at law or in
equity against the Company.

     2. Exercise Right. Your Award is to purchase, on the terms and conditions set forth below,
the following number of shares (the “Option Shares”) of the Company’s common stock, par value $.01
per share (the “Common Stock”) at the exercise price specified below (the “Exercise Price”).

	 	 	 	 	 
	Number of Option Shares	 	Exercise Price Per Option Share
	 
	 	$	 	 

     3. Option Type. This Award is comprised of [non-qualified OR incentive] stock options and is
intended to conform in all respects with the Plan. Copies of the Plan and the Participation
Guide/Prospectus for the Plan (the “Plan Prospectus”) are incorporated herein by reference, and are
available from the Company’s Compensation Committee. This Award [is OR is not] intended to qualify
as an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of
1986, as amended.

     4. Expiration Date. The Option Shares granted herein expire on the seventh anniversary of the
Grant Date (the “Expiration Date”), subject to earlier expiration upon your death, disability or
other termination of employment, as provided below.

     5. Vesting. This Award may be exercised only to the extent it has vested. Subject to
Paragraphs 6 and 7 below, and provided that, for each of the below-stated anniversary dates on
which you continue to be employed by the Company or any of its Subsidiaries (collectively, the
“First Mercury Companies”), you will vest in the below-stated percentage of the total number Option
Shares awarded under this Agreement until you are 100% vested in your Award:

	 	 	 
	Anniversary Date

	 	Vested % of Option Shares Awarded
	 
	 	 
	[Date]
	 	[%]
	[Date]
	 	[%]
	[Date]
	 	[%]

 

 

     6. Death, or Total Disability. In the event that you cease active employment with the First
Mercury Companies because of your death or permanent and total disability (as defined under the
appropriate disability benefit plan if applicable), all Option Shares will vest as of the date of
death or the date you are determined to be permanently and totally disabled, and the last date on
which Option Shares may be exercised is the six-month anniversary of the date of death or the date
you are determined to be permanently and totally disabled.

     7. Retirement. The retirement provisions described in this Paragraph apply solely to this
Agreement. If you cease active employment with the First Mercury Companies after attaining age 55
or older and completing at least ten years of service with the First Mercury Companies, then this
Award will continue to vest subject to Paragraph 5, and the last date on which Option Shares may be
exercised is the Expiration Date.

     8. Other Terminations of Employment and Change in Control.

     a. Involuntary Termination With Severance. If your employment with the Company is
terminated by the Company and you are eligible to receive severance benefits under any
written severance plan of the Company (a “Severance Event Termination”), then all unvested
Option Shares continue to vest for 90 days after the date of termination, after which they
are forfeited, and the last date on which vested Option Shares may be exercised is 90 days
after the date of termination.

     b. Non-Severance Event Termination. If your employment is terminated by the Company
and you are not eligible for severance pay under the Company’s severance plans (i.e. your
employment is terminated for Cause) then all vested and unvested Option Shares are forfeited
on the date of termination and may not be exercised.

     c. Voluntary Termination. If you voluntarily terminate your employment with the
Company, other than as described in Paragraph 7 above, then all unvested Option Shares are
forfeited on the date of termination, and the last date on which vested Option Shares may be
exercised is the 90-day anniversary of the date of termination.

     d. Change in Control. In the event of a Change of Control as defined in the Plan, all
then outstanding Option Shares shall become vested and exercisable [and any Performance
Criteria shall be deemed achieved at target levels].

     9. Exercise. This Award may be exercised in whole or in part for the number of Option Shares
designated by you on either a paper form specified by the Company or via electronic instructions to
the Company’s designated agent. Any such exercise of this Award shall be accompanied by full
payment of the Exercise Price for such number of Option Shares. Payment of the Exercise Price may
be made in one of the following forms:

     a. in cash;

     b. by surrendering previously acquired shares of Common Stock having a Fair Market
Value at the time of exercise equal to the Exercise Price;

     c. by certifying ownership of shares of Common Stock having a Fair Market Value at the
time of exercise equal to the Exercise Price in exchange for a
reduction in the number of shares of Common Stock issuable upon the exercise of the Award; or

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     d. to the extent permitted by applicable law, by delivery of irrevocable instructions
to a broker to (1) promptly deliver to the Company the amount of sale proceeds from the
Stock Option shares or loan proceeds to pay the Exercise Price and any withholding taxes due
to the Company, and (2) deliver to you the balance of the Stock Option proceeds in the form
of cash or shares of Common Stock (as you select).

In connection with any payment of the Exercise Price by surrender or attesting to the ownership of
shares of Common Stock, proof acceptable to the Company shall be submitted substantiating the
shares owned. The value of previously acquired shares submitted (directly or by attestation) in
payment for the Option Shares purchased upon exercise shall be equal to the aggregate fair market
value (as defined in the Plan) of such previously acquired shares on the date of the exercise.
Option Shares will be considered finally exercised on the date on which your payment of the
Exercise Price has been received by the Company. The exercise of any portion of this Award will be
considered your acceptance of all terms and conditions specified in this Agreement. You are
personally responsible for the payment of all taxes related to the exercise.

     10. Forfeiture. Notwithstanding anything contained in this Agreement to the contrary, if,
while employed with or providing services to the Company and continuing for the lesser of 24 months
after termination of your service for any reason or the longest period permitted by applicable law,
you engage in any activity inimical, contrary or harmful to the interests of the Company or any
Subsidiary, including but not limited to: (1) competing, directly or indirectly (either as owner,
employee or agent), with any of the businesses of the Company, (2) violating the Company’s business
standards and practices, including, but not limited to, the Company’s Code of Business Conduct and
Ethics, Code of Ethics Applicable to Senior Finance Executives, and insider trading policy, (3)
soliciting any present or future employees or customers of the Company to terminate such employment
or business relationship(s) with the Company, (4) disclosing or misusing any confidential
information regarding the Company, (5) participating in any activity not approved by the Board of
Directors which could reasonably be foreseen as contributing to or resulting in a Change of Control
of the Company (as defined in the Plan) or (6) disparaging or criticizing, orally or in writing,
the business, products, policies, decisions, directors, officers or employees of Company or any of
its subsidiaries or affiliates to any person, such activities as described above to be collectively
referred to as “wrongful conduct,” then (i) this Award, to the extent it remains unexercised, shall
terminate automatically on the date on which you first engaged in such wrongful conduct and (ii)
you shall pay to the Company in cash any financial gain you realized from exercising all or a
portion of this Award within the 12-month period immediately preceding such wrongful conduct. For
purposes of this Paragraph 10, financial gain shall equal, on each date of exercise during the 12-
month period immediately preceding such wrongful conduct, the difference between the fair market
value of the Common Stock on the date of exercise and the Exercise Price, multiplied by the number
of shares of Common Stock purchased pursuant to that exercise (without reduction for any shares of
Common Stock surrendered or attested to) reduced by any taxes paid in countries other than the
United States to acquire and or exercise and which taxes are not otherwise eligible for refund from
the taxing authorities. By accepting this Award, you consent to and authorize the Company to
deduct from any amounts payable by the Company to you, any amounts you owe to the Company under
this Paragraph 10.

     11. Adjustments. If the number of outstanding shares of Company Common Stock is changed as a
result of a stock split or the like without additional consideration to the Company, the number of
Option Shares subject to this Award and the Exercise Price shall be adjusted to correspond to the
change in the outstanding shares of Common Stock.

     12. Rights as a Stockholder. You will have no rights as a stockholder with respect to any
Option Shares until and unless ownership of such Option Shares has been transferred to you.

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     13. Public Offer Waiver. By voluntarily accepting this Award, you acknowledge and understand
that your rights under the Plan are offered to you strictly as an employee of the First Mercury
Companies and that this Award is not an offer of securities made to the general public.

     14. Transferability of Option Shares. You may not offer, sell or otherwise dispose of any
Common Stock covered by the Option Shares in a way which would: (i) require the Company to file any
registration statement with the Securities and Exchange Commission (or any similar filing under
state law or the laws of any other country) or to amend or supplement any such filing or (ii)
violate or cause the Company to violate the Securities Act of 1933, as amended, the Securities
Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, any other state
or federal law, or the laws of any other country. The Company reserves the right to place
restrictions on Common Stock received by you pursuant to this Award.

     15. Conformity with the Plan. This Award is intended to conform in all respects with, and is
subject to all applicable provisions of the Plan. Inconsistencies between this Agreement, the
Plan, or Plan Prospectus shall be resolved in accordance with the terms of the Plan. By your
acceptance of this Agreement, you agree to be bound by all of the terms of this Agreement, the
Plan, and the Plan Prospectus.

     16. Interpretations. Any dispute, disagreement or question which arises under, or as a result
of, or in any way relates to the interpretation, construction or application of the Plan, this
Agreement, or the Plan Prospectus will be determined and resolved by the Committee or its
authorized delegate. Such determination or resolution by the Committee or its authorized delegate
will be final, binding and conclusive for all purposes.

     17. No Rights to Continued Employment. By voluntarily acknowledging and accepting this Award,
you acknowledge and understand that this Award shall not form part of any contract of employment
between you and any of the First Mercury Companies. Nothing in the Agreement, the Plan Prospectus,
or the Plan confers on any Grantee any right to continue in the employ of the First Mercury
Companies or in any way affects the First Mercury Companies’ right to terminate the Grantee’s
employment without prior notice at any time or for any reason. You further acknowledge that this
grant is for future services to the First Mercury Companies and is not under any circumstances to
be considered compensation for past services.

     18. Consent to Transfer Personal Data. By accepting this Award, you voluntarily acknowledge
and consent to the collection, use, processing and transfer of personal data as described in this
Paragraph. You are not obliged to consent to such collection, use, processing and transfer of
personal data. However, failure to provide the consent may affect your ability to participate in
the Plan. The Company holds certain personal information about you, that may include your name,
home address and telephone number, fax number, email address, family size, marital status, sex,
beneficiary information, emergency contacts, passport / visa information, age, language skills,
drivers license information, date of birth, birth certificate, social security number or other
employee identification number, nationality, C.V. (or resume), wage history, employment references,
job title, employment or severance contract, current wage and benefit information, personal bank
account number, tax related information, plan or benefit enrollment forms and elections, option or
benefit statements, any shares of stock or directorships in the Company, details of all options or
any other entitlements to shares of stock awarded, canceled, purchased, vested, unvested or
outstanding in the Grantee’s favor, for the purpose of managing and administering the Plan
(“Data”). The Company and/or its Subsidiaries will transfer Data amongst themselves as necessary
for the purpose of implementation, administration and management of your participation in the Plan,
and the Company may further transfer Data to any third parties assisting the Company in the
implementation, administration and management of the Plan. These recipients may be located
throughout the world,

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including the United States. You authorize them to receive, possess, use, retain and transfer
the Data, in electronic or other form, for the purposes of implementing, administering and managing
your participation in the Plan, including any requisite transfer of such Data as may be required
for the administration of the Plan and/or the subsequent holding of shares of stock on your behalf
to a broker or other third party with whom you may elect to deposit any shares of stock acquired
pursuant to the Plan. You may, at any time, review Data, require any necessary amendments to it or
withdraw the consents herein in writing by contacting the Company; however, withdrawing your
consent may affect your ability to participate in the Plan.

     19. Miscellaneous.

     a. Modification. The grant of this Award is documented by the records of the Committee
or its delegate which shall be the final determinant of the number of shares granted and the
conditions of this Agreement. The Committee may amend or modify this Award in any manner to
the extent that the Committee would have had the authority under the Plan initially to grant
such Award, provided that no such amendment or modification shall impair your rights under
this Agreement without your consent. Except as in accordance with the two immediately
preceding sentences and Paragraph 21, this Agreement may be amended, modified or
supplemented only by an instrument in writing signed by both parties hereto.

     b. Governing Law. All matters regarding or affecting the relationship of the Company
and its stockholders shall be governed by the General Corporation Law of the State of
Delaware. All other matters arising under this Agreement including matters of validity,
construction and interpretation, shall be governed by the internal laws of the State of
Michigan, without regard to any state’s conflict of law principles. You and the Company
agree that all claims in respect of any action or proceeding arising out of or relating to
this Agreement shall be heard or determined in any state or federal court sitting in
Michigan, and you agree to submit to the jurisdiction of such courts, to bring all such
actions or proceedings in such courts and to waive any defense of inconvenient forum to such
actions or proceedings. A final judgment in any action or proceeding so brought shall be
conclusive and may be enforced in any manner provided by law.

     c. Successors and Assigns. Except as otherwise provided herein, this Agreement will
bind and inure to the benefit of the respective successors and permitted assigns of the
parties hereto whether so expressed or not.

     d. Waiver. The failure of the Company to enforce at any time any provision of this
Award shall in no way be construed to be a waiver of such provision or any other provision
hereof.

     e. Severability. Whenever feasible, each provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement is held to be prohibited by or invalid under applicable law,
such provision will be ineffective only to the extent of such prohibition or invalidity,
without invalidating the remainder of this Agreement.

     f. Impact Upon Termination of Employment. By voluntarily acknowledging and accepting
this Award, you agree that no benefits accruing under the Plan will be reflected in any
severance or indemnity payments that the Company may make or be required to make to you in
the future, regardless of the jurisdiction in which you may be located.

-5-

 

     20. Amendment. By accepting this Award, you agree that the granting of the Award is at the
discretion of the Committee and that acceptance of this Award is no guarantee that future Awards
will be granted under the Plan. Notwithstanding anything in this Agreement, the Plan Prospectus,
or the Plan or to the contrary, this Award may be amended by the Company without the consent of the
Grantee, including but not limited to modifications to any of the rights granted to the Grantee
under this Agreement, at such time and in such manner as the Company may consider necessary or
desirable to reflect changes in law. The Grantee understands that the Company may amend, resubmit,
alter, change, suspend cancel, or discontinue the Plan at any time without limitation.

     21. Plan Documents. The Plan and Plan Prospectus are available by contacting the Compensation
Committee, c/o Corporate Secretary, 29621 Northwestern Highway, Southfield, Michigan 48034.

-6-

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