Document:

exv10w2

 

Exhibit 10.2

TRANSITIONAL SERVICES AND DEPARTURE AGREEMENT

     This Transitional Services and Departure Agreement (the “Agreement”) is entered into
by and between iRobot Corporation (the “Company”) and Geoffrey P. Clear
(“Executive”) as of April 30, 2008.

WITNESSETH:

     WHEREAS, as of the date of this Agreement, Executive is employed by the Company as its
Principal Financial Officer (“PFO”);

     WHEREAS, Executive has indicated his decision to transition from his employment at the
Company, and Executive and the Company have mutually agreed that his employment will end on or
before December 31, 2008 (the actual last day of Executive’s employment shall be referred to herein
as the “Departure Date”);

     WHEREAS, on a later date, the Company and the Executive may mutually agree to enter into a
supplementary agreement pursuant to which the Executive provides services to the Company that are
outside of the usual course of the Company’s business on a part-time, independent contractor basis,
at the rate of $1500 per full work day of services;

     WHEREAS, Executive wishes to pursue consulting opportunities in emerging growth companies with
revenues of $50 to $300 million;

     WHEREAS, Executive and the Company now desire to extinguish all prior agreements relating to
severance pay and benefits including, without limitation, the Executive Agreement by and among
iRobot Corporation and Executive dated March 15, 2006 (the “Executive Agreement”) (except
to the extent certain sections of the Executive Agreement are specifically preserved herein) and
replace all such agreements with this Agreement which sets forth the terms and conditions of the
Executive’s transition and ending of his employment with the Company.

 

 

     NOW THEREFORE, in consideration of the mutual promises contained in this Agreement, Executive
and Company agree as follows:

     1. Continuation of Services. The Company will continue to employ Executive on an
at-will basis through the Departure Date and, unless otherwise directed by the Company, Executive
shall continue to work and provide services as PFO to the Company on a regular full-time basis
through the Departure Date; provided, however, the Company may, in its discretion, reduce
Executive’s duties, responsibilities and required time commitment (but not his Salary (as defined
below)). It is understood that the Company has commenced a search for a replacement PFO. If the
Company’s search efforts are successful and a new PFO commences his employment prior to December
31, 2008, the Executive shall work cooperatively with the Company for as long as the Company pays
the Executive his Salary pursuant to Section 2(a) and, regardless of whether Executive remains an
employee, to transition his responsibilities to the new PFO (“Transitional Services”). It
is further understood and agreed that, from the date a new PFO commences employment at the Company
through the Departure Date, the Executive shall no longer be PFO and shall be the “Senior
Finance Advisor to the CEO.” As Senior Finance Advisor to the CEO, Executive will no longer be
a member of the Company’s senior management team and, among other things, he will not be eligible
to participate in the Senior Executive Incentive Compensation Plan.

     2. Payments and Benefits to Executive.

          (a) Salary Continuation. Executive will continue to receive his current salary at the rate of
$10,700 per bi-weekly pay period, less applicable deductions and withholdings (“Salary”)
on the Company’s regular payroll dates through the Departure Date; provided however, if the
Departure Date occurs prior to December 31, 2008 because (i) the Company

	 	 	 	 	 
	Clear Separation Agreement
	 	2
	 	 
	April 30, 2008	 	 	 	 

 

 

terminates Executive’s employment without Cause, or (ii) Executive resigns from employment at
the Company in order to commence alternative employment at a non-competitive entity, the Company
shall continue Executive’s Salary through December 31, 2008 provided Executive signs and does not
revoke (within the time frames set forth in the document) a general release of claims in a form
acceptable to the Company (“General Release”) and Executive continues to provide Company
with Transitional Services and/or such other post-employment assistance that the Company may
reasonably require until December 31, 2008. For purposes of this Agreement, “Cause” shall mean any
one or more of the following: (i) Executive’s willful failure or refusal (except due to disability
or a condition reasonably likely to be deemed a disability with the passage of time) to perform
substantially his/her duties on behalf of the Company for a period of thirty (30) days after
receiving written notice identifying in reasonable detail the nature of such failure or refusal;
(ii) Executive’s conviction of, entry of a plea of guilty or nolo contendere to, or admission of
guilt in connection with a felony; (iii) disloyalty, willful misconduct or breach of fiduciary duty
by Executive which causes material harm to the Company; or (iv) Executive’s willful violation of
any confidentiality, inventions or non-competition agreement which causes material harm to the
Company. Notwithstanding the foregoing, Executive shall not be deemed to have been terminated for
Cause unless and until there shall have been delivered to him a copy of a resolution duly adopted
by the Company’s Board of Directors (the “Board”) (excluding Executive if he is a Director)
at a meeting of the Board called and held for (but not necessarily exclusively for) that purpose
(after reasonable notice to Executive and an opportunity for Executive, together with counsel of
his choice, to be heard by the Board) finding that Executive has, in the good faith opinion of the
Board, engaged in conduct constituting Cause and specifying the particulars thereof in reasonable
detail.

	 	 	 	 	 
	Clear Separation Agreement
	 	3
	 	 
	April 30, 2008	 	 	 	 

 

 

          (b) Usual Benefits. Consistent with the Company’s policies, Executive shall continue to be
eligible for employee benefits, including medical and dental benefits, and shall continue to accrue
vacation through the Departure Date. The Company shall pay Executive any accrued but unused
vacation no later than the next regular payroll date following the Departure Date. In addition,
the Company shall reimburse Executive for business expenses incurred on or before the Departure
Date, in accordance with Company’s expense reimbursement practices. Executive’s eligibility to
participate in other employee benefits, including in the Company’s 401(k) Savings Plan, ceases as
of the Departure Date consistent with the terms of those plans.

          (c) Health Benefit Continuation. In the event (i) Executive’s employment is terminated by the
Company without Cause or (ii) Executive resigns from employment at the Company in order to commence
alternative employment at a noncompetitive entity prior to December 31, 2008, Executive will be
provided with the opportunity to receive Company-paid health benefit continuation. Specifically,
if Executive signs and does not revoke a General Release, and continues to provide the Company
Transitional Services and/or such other post-employment assistance that the Company may reasonably
require until December 31, 2008, and elects to continue his medical and dental insurance coverage
after the Departure Date under the law known as COBRA, the Company shall pay a percentage of the
medical and dental insurance premiums for Executive and his dependents, equal to the same
percentage of such premiums paid by the Company during the Executive’s employment, from the
Departure Date until the earlier of: (i) December 31, 2008, (ii) the date Executive and his
dependents become eligible for health or dental insurance through another employer, or (iii) the
date Executive and his dependents become ineligible for COBRA for any reason (the “Benefit
Continuation Period”). Executive shall promptly notify the Company upon becoming eligible for
health or dental insurance from

	 	 	 	 	 
	Clear Separation Agreement
	 	4
	 	 
	April 30, 2008	 	 	 	 

 

 

another employer or upon becoming otherwise ineligible for COBRA. If Executive elects COBRA
continuation coverage, he may continue coverage for himself and any dependents after the end of the
Benefit Continuation Period at his own expense for the remainder of the COBRA period, to the extent
he and they remain eligible.

          (d) Acceleration of Unvested Stock Options and Restricted Stock. Schedule A hereto
sets forth a summary of certain outstanding stock options and restricted stock awards granted to
Executive by the Company pursuant to the Company’s stock option and incentive plans (“Stock
Option Plans”) and the relevant award agreements related to such grants (collectively, the
“Award Agreements”). Subject to the Executive satisfying each of the Separation
Conditions, any then unvested options and restricted stock shall vest effective on the Departure
Date. All provisions of the Award Agreements shall remain in full force and effect in accordance
with their respective terms. Nothing in this Section 2(d) shall be construed to amend, change or
alter Executive’s rights and obligations with respect to exercising his vested options, including
those pursuant to his December 19, 2002 Option Grant under the Amended and Restated 1994 Stock Plan
which provides, among other things, that Executive has 60 days from the Departure Date to exercise
his vested options. For purposes of this Agreement “Separation Conditions” shall mean,
Executive: (i) fulfills his service duties and responsibilities as set forth in Sections 1 and
2(a) of this Agreement in a satisfactory manner as determined in good faith by the Board of
Directors through the Departure Date; (ii) is not terminated by the Company for Cause, and (iii)
after the Departure Date, signs (within 21 days after receipt) and does not revoke (within seven
days after signing) a General Release.

          (e) Bonus Payment. Executive has the opportunity to earn a bonus payment (the “Bonus
Payment”) provided that each of the following conditions are met: (i) bonuses are

	 	 	 	 	 
	Clear Separation Agreement
	 	5
	 	 
	April 30, 2008	 	 	 	 

 

 

paid pursuant to either (x) the Senior Executive Incentive Compensation Plan in effect for the
Company’s 2008 fiscal year (“FY2008”) or (y) bonuses are paid pursuant to the Company’s
2008 Incentive Compensation Plan, and (ii) Executive satisfies each of the Separation Conditions
set forth in Section 2(d). Executive’s Bonus Payment, if any, shall be calculated as follows:
(Executive’s Salary) x (the percentage of FY2008 during which Executive was employed by the Company
as PFO) x (the percentage that the Company would have used to calculate the Executive’s bonus
pursuant to the Senior Executive 2008 Incentive Compensation Plan if Executive had satisfied the
employee conditions of the Plan, such percentage not to exceed 40%) + (Executive’s Salary) x (the
percentage of FY2008 during which Executive was employed by the Company as Senior Finance Advisor
to the CEO) x (the percentage that the Company would have used to calculate the Executive’s bonus
pursuant to the 2008 Incentive Compensation Plan if Executive had satisfied the employee conditions
of the Plan, such percentage not to exceed 40%). The Bonus Payment shall not be earned unless and
until all of the Separation Conditions are fully satisfied and provided the Company is satisfied
that the Executive continued to provide Company with Transitional Services and/or such other
post-employment assistance that the Company reasonably required through December 31, 2008. The
Bonus Payment shall be paid at such time as when the Company’s other employees receive bonus
payments but in no event later than March 15, 2009. The Bonus Payment opportunity set forth in
this Section 2(e) shall be in lieu of and fully supersede any rights Executive may have or have had
to bonus or other incentive compensation.

     3. General Release of Claims. Executive hereby irrevocably and unconditionally
releases, acquits and forever discharges the Company, its affiliated and related entities, its and
their respective predecessors, successors and assigns, its and their respective employee benefit

	 	 	 	 	 
	Clear Separation Agreement
	 	6
	 	 
	April 30, 2008	 	 	 	 

 

 

plans and fiduciaries of such plans, and the current and former officers, directors,
shareholders, employees, attorneys, accountants and agents of each of the foregoing in their
official and personal capacities (collectively referred to as the “Releasees”) generally
from all claims, demands, debts, damages and liabilities of every name and nature, known or unknown
(“Claims”) that, as of the date when Executive signs this Agreement, Executive has, ever
had, now claims to have or ever claimed to have had against any or all of the Releasees. This
release includes, without limitation, all Claims: relating to Executive’s employment by and
termination of employment with the Company; of wrongful discharge; of breach of contract; of breach
of the Executive Agreement; of retaliation or discrimination under federal, state or local law of
the United States (including, without limitation, Claims of age discrimination or retaliation under
the Age Discrimination in Employment Act, Claims of disability discrimination or retaliation under
the Americans with Disabilities Act, and Claims of discrimination or retaliation under Title VII of
the Civil Rights Act of 1964); under any other federal or state statute; of defamation or other
torts; of violation of public policy; for wages, bonuses, incentive compensation, stock, stock
options, vacation pay or any other compensation or benefits; and for damages or other remedies of
any sort, including, without limitation, compensatory damages, punitive damages, injunctive relief
and attorney’s fees; provided, however, that this release shall not affect his rights under this
Agreement. As a material inducement to the Company to enter into this Agreement, Executive
represents that he has not assigned to any third party and has not filed with any agency or court
any Claim released by this Agreement.

     4. Change in Control Benefits. In the event of a Change in Control (as defined in the
Executive Agreement), prior to the Departure Date Executive shall be entitled to immediate
accelerated vesting as set forth in Section 6 of the Executive Agreement. In addition, Section 10

	 	 	 	 	 
	Clear Separation Agreement
	 	7
	 	 
	April 30, 2008	 	 	 	 

 

 

of the Executive Agreement shall remain in full force and effect and is hereby incorporated by
reference. In all other respects, the Executive Agreement is superseded by this Agreement.

     5. Tax Treatment. The Company shall undertake to make deductions, withholdings and
tax reports with respect to payments and benefits under this Agreement to the extent that it
reasonably and in good faith determines that it is required to make such deductions, withholdings
and tax reports. Payments under this Agreement shall be subject to any such deductions or
withholdings. Nothing in this Agreement shall be construed to require the Company to make any
payments to compensate Executive for any adverse tax effect associated with any payments or
benefits or for any deduction or withholding from any payment or benefit.

     6. Return of Property. Executive acknowledges that all documents, records, apparatus,
equipment and other physical property which were furnished or will be furnished to Executive in
connection with his employment at the Company remain and will remain the sole property of the
Company. Executive will return to the Company all such materials and property when requested by
the Company. In any event, Executive will return all such materials and property on or before the
Departure Date, including, without limitation, all computer equipment, laptops, software, keys and
access cards, credit cards, cell phone, files and any documents (including computerized data and
any copies made of any computerized data or software) containing information concerning the
Company, its business or its business relationships (in the latter two cases, actual or
prospective). In the event that Executive discovers that he continues to retain any such property
after the termination of his employment, he shall return it to the Company immediately. After
fulfilling his return of property obligations, Executive shall delete and finally purge any
duplicates of files or documents that may contain Company information from any computer or other
device that remains his property after the Departure Date.

	 	 	 	 	 
	Clear Separation Agreement
	 	8
	 	 
	April 30, 2008	 	 	 	 

 

 

Notwithstanding the above, Executive will be allowed to keep his current laptop computer and
PDA/cell phone, including portability of the cell phone number, provided all company data has been
removed (restored to its original purchase condition) by the Company’s IT department.

     7. Confidentiality and Existing Restrictive Covenants. Executive shall not disclose
to any third party any information which, during his employment, he knew, or reasonably should have
known, is considered by the Company to be confidential and/or proprietary. The foregoing
obligation is in addition to, and not in lieu of, any obligation set forth in any confidentiality
or non-disclosure agreement previously signed by Executive including the iRobot Corp. Invention
Confidentiality Agreement dated February 3, 2003 which terms and conditions shall remain in full
force and effect and are hereby incorporated by reference. Similarly, the terms of any existing
agreement between the Company and Executive containing restrictive covenants, including, without
limitation, the Noncompetition and Nonsolicitation Agreement between Executive and the Company
dated March 15, 2006 (all such agreements referred to in this Section 6 shall be collectively
referred to as “Restrictive Covenants”) shall remain in full force and effect and are
hereby incorporated by reference.

     8. Future Cooperation. During his employment and thereafter, Executive agrees to
cooperate reasonably with the Company and all of its affiliates and related entities, including its
and their outside counsel, in connection with the contemplation, prosecution and defense of all
phases of existing, past and future litigation about which the Company believes Executive may have
knowledge or information. Executive further agrees to make himself available at mutually
convenient times during and outside of regular business hours as reasonably deemed necessary by the
Company’s counsel. Executive agrees to appear without the necessity of a subpoena and to testify
truthfully in any legal proceedings in which the Company calls him as a witness. The

	 	 	 	 	 
	Clear Separation Agreement
	 	9
	 	 
	April 30, 2008	 	 	 	 

 

 

Company shall reimburse Executive for out-of-pocket business expenses incurred directly as the
result of requested future cooperation, in accordance with Company’s expense reimbursement
practices.

     9. Suspension /Termination of Payments. In the event that Executive fails to comply
with any of his obligations under this Agreement including but not limited to the provisions of the
Agreement which have been incorporated by reference, in addition to any other legal or equitable
remedies it may have for such breach the Company shall have the right to terminate or suspend its
payments or benefits to or made on behalf of Executive under this Agreement. The termination or
suspension of such payments in the event of such breach by Executive will not affect his continuing
obligations under this Agreement.

     10. Legal Representation. This Agreement is a legally binding document and his
signature will commit Executive to its terms. Executive acknowledges that he has been advised to
discuss all aspects of this Agreement with his attorney, and that he has carefully read and fully
understands all of the provisions of this Agreement and that he is voluntarily entering into this
Agreement.

     11. Absence of Reliance. In signing this Agreement, Executive is not relying upon any
promises or representations made by anyone at or on behalf of the Company.

     12. Non-Admission. This Agreement shall not in any way be construed as an admission
by the Company of any liability or any act of wrongdoing whatsoever against Executive. The Company
specifically disclaims any liability or wrongdoing whatsoever against Executive or any other person
on the part of the Company, its affiliates, and their current and former agents, employees and
shareholders.

	 	 	 	 	 
	Clear Separation Agreement
	 	10
	 	 
	April 30, 2008	 	 	 	 

 

 

     13. Enforceability. If any portion or provision of this Agreement (including, without
limitation, any portion or provision of any section of this Agreement or portions of the Agreement
that have been incorporated by reference) shall to any extent be declared illegal or unenforceable
by a court of competent jurisdiction, then the remainder of this Agreement, or the application of
such portion or provision in circumstances other than those as to which it is so declared illegal
or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement
shall be valid and enforceable to the fullest extent permitted by law.

     14. Waiver. No waiver of any provision of this Agreement shall be effective unless
made in writing and signed by the waiving party. The failure of any party to require the
performance of any term or obligation of this Agreement, or the waiver by any party of any breach
of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be
deemed a waiver of any subsequent breach.

     15. Enforcement.

          (a) Jurisdiction. Executive and the Company hereby agree that the courts of the Commonwealth
of Massachusetts shall have the exclusive jurisdiction to consider any matters related to this
Agreement, including without limitation any claim for violation of this Agreement. With respect to
any such court action, Executive (i) submits to the jurisdiction of such courts, (ii) consents to
service of process, and (iii) waives any other requirement (whether imposed by statute, rule of
court or otherwise) with respect to personal jurisdiction or venue.

          (b) Relief. Executive agrees that it would be difficult to measure any harm caused to the
Company that might result from any breach by Executive of his promises set forth in Sections 6, 7
or 8 and that in any event money damages would be an inadequate remedy for any such breach.
Accordingly, if Executive breaches, or proposes to breach, any portion of his

	 	 	 	 	 
	Clear Separation Agreement
	 	11
	 	 
	April 30, 2008	 	 	 	 

 

 

obligations under Sections 6, 7 or 8, the Company shall be entitled, in addition to all other
remedies it may have, to an injunction or other appropriate equitable relief to restrain any such
breach, without showing or proving any actual damage to the Company and without the necessity of
posting a bond.

     16. Governing Law; Interpretation. This Agreement shall be interpreted and enforced
under the laws of the Commonwealth of Massachusetts without regard to conflict of laws principles.
In the event of any dispute, this Agreement is intended by the parties to be construed as a whole,
to be interpreted in accordance with its fair meaning, and not to be construed strictly for or
against either Executive or the Company or the “drafter” of all or any portion of this
Agreement. 

     17. Entire Agreement. This Agreement, including all provisions that are incorporated
by reference, the Indemnification Agreement, the Stock Option Plan, Award Agreements, and the
Restrictive Covenants between Executive and the Company constitute the entire agreement between
Executive and the Company. This Agreement supersedes any previous agreements or understandings
between Executive and the Company relating to the subject matter herein including, without
limitation, the Executive Agreement, except as specifically provided in Section 4 of this
Agreement.

     18. Time for Consideration and Effective Date. Executive acknowledges and agrees that
he had the opportunity to consider this Agreement for more than twenty-one (21) days before signing
it and that no modifications to this Agreement had the effect of restarting the twenty one day
consideration period. To accept this Agreement, Executive must return a signed original of this
Agreement so that it is received by the undersigned at or before April 24, 2008. If Executive
signs this Agreement before April 24, 2008, he acknowledges by signing this

	 	 	 	 	 
	Clear Separation Agreement
	 	12
	 	 
	April 30, 2008	 	 	 	 

 

 

Agreement that such decision was entirely voluntary and that he had the opportunity to
consider this Agreement for more than a twenty-one (21) day period. For the period of seven (7)
days from the date when this Agreement becomes fully executed, Executive has the right to revoke
this Agreement by written notice to the undersigned. For such a revocation to be effective, it
must be delivered so that it is received by the undersigned at or before the expiration of the
seven (7) day revocation period. This Agreement shall not become effective or enforceable during
the revocation period. This Agreement shall become effective on the first business day following
the expiration of the revocation period (the “Effective Date”). Notwithstanding the
foregoing, the Company may withdraw the offer of this Agreement or may void this Agreement before
the Effective Date if Executive (i) is terminated by the Company for Cause; (ii) fails to cooperate
reasonably with requests by the Company; (iii) breaches any other provision of this Agreement.

     19. Attorneys’ Fees. Each party shall bear his or its own costs and attorney’s fees
in connection with the negotiation and drafting of this Agreement. In the event of any legal
action to enforce this Agreement, including those provisions that have been incorporated by
reference, the party that prevails in such action shall be entitled to recover his, or its
attorney’s fees and costs from the non-prevailing party or parties.

     20. No Transfer. Executive represents that he has not assigned or transferred, or
purported to assign or transfer, to any person or entity, any Claim against any of the Releasees or
any portion thereof or interest therein.

     21. Binding Nature of Agreement. This Agreement shall be binding upon each of the
parties and upon the heirs, administrators, representatives, executors, successors and assigns of
each of them, and shall inure to the benefit of each party and to the heirs, administrators,
representatives, executors, successors, and assigns of each of them.

	 	 	 	 	 
	Clear Separation Agreement
	 	13
	 	 
	April 30, 2008	 	 	 	 

 

 

     22. Modification of Agreement. This Agreement may be amended, revoked, changed, or
modified only upon a written agreement executed by both parties. No waiver of any provision of
this Agreement will be valid unless it is in writing and signed by the party against whom such
waiver is charged.

     23. Counterparts. This Agreement may be executed in counterparts, and each
counterpart, when executed, shall have the efficacy of a signed original.

(The remainder of this page is intentionally blank.)

	 	 	 	 	 
	Clear Separation Agreement
	 	14
	 	 
	April 30, 2008	 	 	 	 

 

 

     24. Definition. For purposes of this Agreement, the term “Company” shall include the
Company and its affiliated and related entities, and its and their respective predecessors,
successors and assigns.

     This Agreement has been executed as a sealed instrument by Executive and the Company.

	 	 	 	 	 	 	 	 	 	 	 
	EXECUTIVE	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Geoffrey P. Clear
	 	 	 	April 30, 2008	 	 
	 	 	 	 	 	 	 
	Geoffrey P. Clear	 	 	 	Date	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	iRobot Corporation	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Colin Angle	 	 	 	April 30, 2008	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Colin Angle
	 	 	 	Date	 	 
	 

	 	Title:
	 	CEO	 	 	 	 	 	 

	 	 	 	 	 
	Clear Separation Agreement
	 	15
	 	 
	April 30, 2008	 	 	 	 

 

 

EXHIBIT A

Stock Options

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Number of	 	 
	 	 	 	 	 	 	Number of	 	Unexercised	 	 
	Date of Option	 	 	 	 	 	Unexercised	 	Options Vested	 	Name of Stock
	Grant	 	Exercise Price	 	Options	 	as of 4/30/08	 	Plan
	12/19/2002	 	$	0.55	 	 	 	46,440	 	 	 	46,440	 	 	Amended and
Restated 1994 Stock
Plan

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	2/8/2005	 	$	4.96	 	 	 	12,000	 	 	 	6,000	 	 	Amended and
Restated 2004 Stock
Option and
Incentive Plan

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	5/25/2007	 	$	16.03	 	 	 	12,000	 	 	 	0	 	 	2005 Stock Option
and Incentive Plan

Restricted Stock and Restricted Stock Units (RSU)

	 	 	 	 	 	 	 	 	 	 	 
	Date of Restricted	 	Number of	 	Number of Restricted	 	 
	Stock or RSU	 	Restricted Shares	 	Shares or RSUs Vested	 	 
	Grant	 	or RSUs	 	as of 4/30/08	 	Name of Stock Plan
	5/25/2007	 	 	3,000	 	 	 	[0	 	 	2005 Stock Option
and Incentive Plan

	 	 	 	 	 	 	 	 	 	 	 

	3/28/2008	 	 	3,350	 	 	 	0	 	 	2005 Stock Option
and Incentive Plan

	 	 	 	 	 
	Clear Separation Agreement

	 	16
	 	 
	April 30, 2008Table of Contents

Exhibit 10.1

ASPEN INSURANCE HOLDINGS LIMITED

2008 EMPLOYEE SHARE PURCHASE PLAN

The following constitute the provisions of the 2008 Employee Share Purchase Plan of Aspen Insurance Holdings Limited.

1.    Purpose.    The purpose of the Plan is to provide employees of the Company and its Designated Subsidiaries with an opportunity to purchase Shares of the Company through accumulated payroll deductions. It is the intention of the Company to have the Plan qualify as an ‘‘Employee Stock Purchase Plan’’ under Section 423 of the Code, and the Plan shall be construed in a manner consistent with the requirements of such Section of the Code.

2.    Definitions.    

(a)    ‘‘Account’’ shall mean the funds accumulated with respect to a Participant as a result of authorized payroll deductions for the purpose of purchasing Shares under this Plan. The funds allocated to a Participant’s Account shall remain the property of the Participant at all times, but may be commingled with the general funds of the Company.

(b)    ‘‘Administrator’’ shall mean the Board or any committee designated by the Board to administer the Plan pursuant to Section 15.

(c)    ‘‘Board’’ shall mean the Board of Directors of the Company.

(d)    ‘‘Code’’ shall mean the Internal Revenue Code of 1986, as amended.

(e)    ‘‘Company’’ shall mean Aspen Insurance Holdings Limited, a Bermuda holding company.

(f)    ‘‘Compensation’’ shall mean the base pay received by an Eligible Employee during an Offering Period. Compensation shall not include any other type of pay, including, but not limited to, long term disability or workers compensation payments, expense reimbursement payments or payments under any other form of equity or fringe benefit program.

(g)    ‘‘Designated Subsidiary’’ shall mean any Subsidiary selected by the Board, in its sole discretion, as eligible to participate in the Plan which may include corporations (as such term in described by Internal Revenue Regulation 1.421-1) which may become subsidiaries of the Company after the adoption of this Plan.

(h)    ‘‘Effective Date’’ shall mean March 17, 2008.

(i)    ‘‘Eligible Employee’’ shall mean any individual who is a common law employee of the Company or any Designated Subsidiary.

(j)    ‘‘Fair Market Value’’ shall mean, as of any Trading Day, the closing sale price for such Shares (or the closing bid, if no sales were reported) as quoted on the New York Stock Exchange or any other established stock exchange or national market system.

(k)    ‘‘International Plan’’ shall mean the Aspen Insurance Holdings Limited 2008 International Employee Share Purchase Plan.

(l)    ‘‘Offering Date’’ shall mean the first Trading Day of each Offering Period.

(m)    ‘‘Offering Period’’ shall mean a two (2) year or other period as determined by the Administrator; provided, however, that in no event shall the Offering Period extend for a period of longer than twenty-seven (27) months. The first Offering Period shall commence on the Plan’s first Offering Date, which shall be as soon as administratively practicable after the Effective Date and end on the second anniversary of the Offering Date.

(n)    ‘‘Option’’ shall mean a right granted under this Plan to an Eligible Employee to purchase Shares.

1

Table of Contents

(o)    ‘‘Participant’’ shall mean an Eligible Employee who enrolls in the Plan pursuant to Section 4.

(p)    ‘‘Plan’’ shall mean the Aspen Insurance Holdings Limited 2008 Employee Share Purchase Plan.

(q)    ‘‘Purchase Date’’ shall mean the last Trading Day of each Offering Period or such other period as may be determined by the Board.

(r)    ‘‘Purchase Price’’ shall mean eighty-five percent (85%) of the Fair Market Value of a Share, or fractional portion thereof (as the case may be), on the Offering Date; provided, however, that the Purchase Price may be adjusted by the Administrator pursuant to Section 17.

(s)    ‘‘Share’’ shall mean the ordinary shares of the common equity of the Company, par value $0.0015144558 per share.

(t)    ‘‘Subsidiary’’ shall mean any subsidiary corporation (other than the Company) in an unbroken chain or corporations beginning with the Company, as described in Code Section 424(f).

(u)    ‘‘Trading Day’’ shall mean a day on which national stock exchanges and the New York Stock Exchange are open for trading.

(v)    ‘‘UK Sharesave Plan’’ shall mean the Aspen Insurance Holdings Limited Sharesave Plan.

3.    Eligibility.    Any Eligible Employee of the Company or a Designated Subsidiary who is an employee on an Offering Date is eligible to participate in the Plan. Notwithstanding the foregoing, no otherwise Eligible Employee may become a Participant for an Offering Period to the extent that: (i) immediately following the grant of the Option, such Eligible Employee (or any other person whose Shares would be attributed to such Eligible Employee pursuant to Section 424(d) of the Code) would own Shares and/or hold outstanding Options to purchase such Shares possessing five percent (5%) or more of the total combined voting power or value of all classes of the shares of the Company or of any Subsidiary, or (ii) to the extent that his or her rights to purchase Shares under all employee stock purchase plans of the Company and its Subsidiaries accrues at a rate which exceeds Twenty-Five Thousand U.S. Dollars ($US25,000) worth of Shares (determined at the Fair Market Value of the Shares at the time such Option is granted) for each calendar year in which such Option is outstanding at any time.

4.    Enrollment.    An Eligible Employee who meets the requirements of Section 3 may become a Participant by enrolling in the Plan by completing a payroll deduction authorization and Plan enrollment form at least ten (10) business days prior to the beginning of the applicable Offering Period or as otherwise prescribed by the Administrator prior to an applicable Offering Date.

5.    Offering Periods.    The Plan shall be implemented by a series of consecutive Offering Periods as determined by the Administrator and shall continue until terminated in accordance with Section 18 or Section 24 hereof. The Administrator shall have the power to change the duration and/or frequency of the Offering Periods with respect to future Offering Periods. A Participant shall be granted a separate Option for each Offering Period in which a Participant participates.

6.    Participation.

(a)     On the Offering Date, Participants shall be granted an Option for as many Shares as the Participant will be able to purchase with the payroll deductions credited to his or her Account during that Offering Period. Subject to Section 3 hereof and subject to such rules as may be prescribed by the Administrator, an Eligible Employee may authorize payroll deductions at the rate of any whole percentage or in a specified amount of the Eligible Employee’s Compensation; in either case, not to exceed Five Hundred U.S. Dollars ($US500) per month. All payroll deductions may be held by the Company and commingled with other corporate funds. No interest shall be paid or credited to the Participant with respect to such payroll deductions.

(b)     To the extent necessary to comply with Code Section 423(b)(8) and Section 3 hereof, a Participant’s payroll deductions may be decreased to zero percent (0%) at any time during an Offering Period.

2

Table of Contents

(c)    If, on the Purchase Date, the Purchase Price of a Share for the applicable Offering Period exceeds the Fair Market Value of a Share on such date, no Shares will be purchased, and any payroll deductions shall be promptly refunded to the Participant.

(d)    Subject to the Administrator’s absolute right to prohibit such increases or decreases, a Participant may increase or decrease his or her payroll deduction by filing a new payroll deduction authorization at any time during an Offering Period.

7.    Exercise of Option.

(a)    Each Eligible Employee who is a Participant on the Purchase Date of an Offering Period shall be deemed to have exercised his or her Option on such date and shall be deemed to have purchased from the Company the maximum number of full Shares at the applicable Purchase Price which may be purchased with the accumulated payroll deductions in his or her Account. The Administrator may determine from time to time whether fractional shares may be purchased. If the purchase of fractional shares is not permitted, any payroll deductions accumulated in a Participant’s Account which are not sufficient to purchase a full share shall be promptly refunded to the Participant.

(b)    At the time the Option is exercised, in whole or in part, or at the time some or all of the Company’s Shares issued under the Plan are disposed of, the Participant must make adequate provision, in such manner as may be required by the Administrator, for the Company’s federal, state, or other tax withholding obligations, if any, which arise upon the exercise of the Option or the disposition of the Shares. At any time, the Company may, but shall not be obligated to, withhold from the Participant’s Compensation the amount necessary for the Company to meet applicable withholding obligations, including any withholding required to make available to the Company any tax deductions or benefits attributable to sale or early disposition of Shares by the Participant.

8.    Withdrawal/Termination of Participation.

(a)    A Participant may withdraw from an Offering Period, in whole but not in part, at any time prior to the Purchase Date of the Offering Period by delivering to the Company a notice of withdrawal at least ten (10) days prior to the end of the Offering Period, in which event the Company will refund the entire balance of the Participant’s Account to the Participant as soon as reasonably practicable thereafter. No further payroll deductions will be made for such a Participant during such Offering Period.

(b)    A Participant’s withdrawal from an Offering Period shall not have any effect upon his or her eligibility to participate in any similar plan which may hereafter be adopted by the Company or in succeeding Offering Periods which commence after the termination of the Offering Period from which the Participant withdraws.

9.    Termination of Employment.    Upon termination of employment or loss of eligibility to participate in the Plan for any reason whatsoever, including but not limited to death or retirement, the balance in a Participant’s Account shall be paid to the Participant or to the Participant’s beneficiary, as designated under Section 21, or if no beneficiary is so designated, to the Participant’s estate.

10.    Shares Reserved for Plan.    Subject to adjustment upon changes in capitalization of the Company as provided in Section 17 hereof, there shall be reserved for issuance and purchase under the Plan, the International Plan attached hereto as Appendix A and the UK Sharesave Plan, an aggregate of Eight Hundred and Seventy Thousand (870,000) Shares. Shares subject to the Plan shall be authorized but unissued shares, or previously issued shares, at the discretion of the Board. Shares needed to satisfy the needs of the Plan, the UK Sharesave Plan and the International Plan may be newly issued by the Company or acquired by purchases at the expense of the Company on the open market or in private transactions. Shares that are issued under the Plan, the International Plan or the UK Sharesave Plan or that are subject to outstanding Options under any of the foregoing will be applied to reduce the maximum number of Shares remaining available for issuance under the Plan. Any Shares that are subject to an Option under the Plan or the International Plan that is terminated 

3

Table of Contents

unexercised will automatically again become available for issuance under the Plan. If the total number of Shares which would otherwise be purchased pursuant to Options granted under the Plan or the International Plan on a Purchase Date or Shares under the UK Sharesave Plan exceeds the number of Shares then available under the Plan (after deduction of all Shares for which Options have been exercised or are then outstanding) or there is insufficient unissued share capital of the Company, the Administrator shall make a pro rata allocation of the Shares remaining in as uniform a manner as shall be practicable and as it shall determine to be equitable and in compliance with the provisions of Section 423 of the Code. In such event, the Administrator shall give written notice to each Participant of such reduction of the number of Shares affected thereby and shall similarly reduce the rate of payroll deductions, if necessary.

11.    Rights as Shareholder.    No Participant shall have any right as a shareholder with respect to any Shares until the Shares have been purchased and the Participant becomes the holder of record of Shares pursuant to Section 13 hereof. Except as otherwise provided under the Plan, no adjustment will be made for dividends or distributions with respect to Options as to which there is a record date preceding the date the Participant becomes the beneficial owner of such Shares, except as the Board may determine in its sole discretion.

12.    Conditions Upon Issuance of Shares.

(a)    Shares shall not be issued with respect to an Option unless the exercise of such Option and the issuance and delivery of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the Shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance.

(b)    As a condition to the exercise of an Option, the Company may require the Participant exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned applicable provisions of law.

13.    Evidence of Share Ownership.    Subject to the terms and conditions of the Plan, promptly following the end of each Offering Period, each Participant shall become the beneficial owner of all Shares and any fractional interest in Shares purchased, if allowed by the Administrator, on his or her behalf.

14.    Transferability.

(a)    Neither payroll deductions credited to a Participant’s Account nor any rights with regard to the exercise of an Option or to receive Shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way by the Participant. Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds from an Offering Period in accordance with Section 7 hereof.

(b)    Unless otherwise determined by the Administrator, Shares delivered to a Participant hereunder may not be assigned, transferred, pledged or otherwise disposed of in any way by the Participant during the one year period following such delivery to the Participant (other than by will, the laws of descent and distribution) and the Shares shall bear a legend denoting such restrictions as may be determined by the Administrator to be appropriate.

15.    Administration.

(a)    The Administrator shall be vested with full and exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to determine eligibility and to adjudicate all disputed claims filed under the Plan, to supervise the administration of the Plan, and to take all action in connection therewith or in relation thereto as it deems necessary or advisable. Every 

4

Table of Contents

finding, decision and determination made by the Administrator shall, to the full extent permitted by law, be final and binding upon all parties. No Board or committee member shall be liable for any action or determination made in good faith with respect to the Plan or any Option granted thereunder. As permitted by applicable law, the Board or Administrator may delegate its authorities, duties and powers as identified hereunder to such persons or committees as the Board or the Administrator designates in its sole discretion.

(b)    The Administrator may establish and administer the International Plan attached hereto as Appendix A.

(c)    All costs and expenses incurred in administering the Plan shall be paid by the Company. Any brokerage fees for the purchase of Shares by a Participant under the Plan shall be paid by the Company, but brokerage fees for the resale of Shares by a Participant shall be borne by the Participant.

16.    Reports.    Statements of each Participant’s Account shall be given to Participants at least annually, which statements shall set forth the amounts of payroll deductions, the Purchase Price, the number of Shares purchased and the remaining cash balance, if any.

17.    Changes in Capitalization/Corporate Transaction.

(a)    In the event of a reorganization, recapitalization, stock split, stock dividend, combination of shares, merger, consolidation, offerings of rights, or any other change in the structure of the common equity of the Company, the Board shall make such adjustment, if any, as it may deem appropriate in the number, kind, and the price of shares available for purchase under the Plan, and in the number of shares which a Participant is entitled to purchase.

(b)    In the event of the sale of all or substantially all of the assets of the Company, or the merger, amalgamation or consolidation of the Company with or into another entity, or the entry by the Company into a scheme of arrangement, or the dissolution or liquidation of the Company, a Purchase Date shall be deemed to occur on the Trading Day immediately preceding the date of such event, unless otherwise provided by the Board in its sole discretion, including the exercise of such discretion to provide for the assumption or substitution of each Option under the Plan by the successor or surviving corporation, or a parent or subsidiary thereof.

18.    Amendment or Termination.

(a)    The Administrator may at any time and for any reason terminate or amend the Plan. Except as otherwise provided in the Plan, no such termination shall adversely affect Options previously granted, provided that an Offering Period may be terminated by the Administrator on any Purchase Date if the Administrator determines that the termination of the Offering Period or the Plan is in the best interests of the Company and its shareholders. Except as provided in Section 17 and this Section 18 hereof, no amendment may make any change in any Option theretofore granted which adversely affects the rights of any Participant. To the extent necessary to comply with Section 423 of the Code (or any successor rule or provision or any other applicable law, regulation or stock exchange rule), the Company shall obtain shareholder approval in such a manner and to such a degree as required under Section 423 of the Code of any other applicable law, regulation or stock exchange or national or international quotation system rule.

(b)    In the event the Plan is terminated, the Board may elect to terminate all outstanding Options either immediately or upon completion of the purchase of Shares on the next Exercise Date, or may elect to permit Options to expire in accordance with their terms (and participation to continue through such expiration dates). If the Options are terminated prior to expiration, all funds contributed to the Plan that have not been used to purchase Shares shall be returned to the Participants.

19.    Notices.    All notices or other communications by a Participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form and manner specified by the Company at the location, or by the person, designated by the Company for the receipt thereof.

5

Table of Contents

20.    Designation of Beneficiary.    A Participant may file with the Company a written designation of a beneficiary who is to receive Shares and cash, if any, under the Plan in the event of such Participant’s death prior to delivery of such shares or cash to such Participant. In the event of the death of a Participant who has not filed a designation of beneficiary with the Company, the Company will deliver such Shares or cash to the Participant’s estate.

21.    No Employment Rights.    The Plan does not, directly or indirectly, create any right for the benefit of any employee or class of employees to purchase any Shares under the Plan, or create in any employee or class of employees any right with respect to continuation of employment by the Company or any of its Subsidiaries, and it shall not be deemed to interfere in any way with the Company or Subsidiary’s right to terminate, or otherwise modify, an employee’s employment at any time.

22.    Governing Law.    The Plan shall be construed and administered in accordance with the laws of Bermuda without regard for conflict of law principles.

23.    Successors and Assigns.    The Plan will be binding upon and inure to the benefit of the successors and permitted assigns of the Company.

24.    Term of Plan.    The Plan shall become effective on the date determined by the Board, subject to approval by the Company’s shareholders. It shall continue in effect until the earliest to occur of: (a) the date the Plan is terminated pursuant to Section 19, or (b) ten years from the effective date of the Plan.

6

Table of Contents

APPENDIX A

ASPEN INSURANCE HOLDINGS LIMITED

2008 INTERNATIONAL EMPLOYEE SHARE PURCHASE PLAN

The following constitute the provisions of the 2008 International Employee Share Purchase Plan of Aspen Insurance Holdings Limited.

1.    Purpose     The purpose of the International Plan is to provide employees of the Company’s International Designated Subsidiaries with an opportunity to purchase Shares of the Company through accumulated payroll deductions. All of the provisions of the International Plan is governed by the Plan unless otherwise provided herein.

2.    Definitions.    The definitions in Section 2 of the Plan shall govern the International Plan, except the following terms shall have the meaning indicated below:

(a)    ‘‘Effective Date’’ shall mean March 17, 2008.

(b)    ‘‘Eligible Employee’’ shall mean any individual who is a common law employee of any International Designated Subsidiary.

(c)    ‘‘International Designated Subsidiary’’ shall mean any Subsidiary selected by the Board, in its sole discretion, as eligible to participate in the International Plan which may include corporations (as such term in described by Internal Revenue Regulation 1.421-1) which may become subsidiaries of the Company after the adoption of this International Plan.

(d)    ‘‘International Plan’’ shall mean the Aspen Insurance Holdings Limited 2008 International Employee Share Purchase Plan.

(e)    ‘‘Plan’’ shall mean the Aspen Insurance Holdings Limited 2008 Employee Share Purchase Plan.

3.    Eligibility.    Any Eligible Employee of the Company or a Designated Subsidiary who is an employee on an Offering Date is eligible to participate in the International Plan. Notwithstanding the foregoing, no otherwise Eligible Employee may become a Participant for an Offering Period to the extent that: (i) immediately following the grant of the Option, such Eligible Employee (or any other person whose Shares would be attributed to such Eligible Employee pursuant to Section 424(d) of the Code) would own Shares and/or hold outstanding Options to purchase such Shares possessing five percent (5%) or more of the total combined voting power or value of all classes of the shares of the Company or of any Subsidiary, or (ii) to the extent that his or her rights to purchase Shares under all employee stock purchase plans of the Company and its subsidiaries accrues at a rate which exceeds Twenty-Five Thousand U.S. Dollars ($US25,000) worth of Shares (determined at the Fair Market Value of the Shares at the time such Option is granted) for each calendar year in which such Option is outstanding at any time.

4.    Enrollment.    An Eligible Employee who meets the requirements of Section 3 may become a Participant by enrolling in the Plan by completing a payroll deduction authorization and International Plan enrollment form at least ten (10) business days prior to the beginning of the applicable Offering Period or as otherwise prescribed by the Administrator prior to an applicable Offering Date.

5.    Offering Periods.    The International Plan shall be implemented by a series of consecutive Offering Periods as determined by the Administrator and shall continue until terminated in accordance with Section 18 or Section 24 hereof. The Administrator shall have the power to change the duration and/or frequency of the Offering Periods with respect to future Offering Periods. A Participant shall be granted a separate Option for each Offering Period in which a Participant participates.

6.    Participation.

(a)    On the Offering Date, Participants shall be granted an Option for as many Shares as the Participant will be able to purchase with the payroll deductions credited to his or her Account 

7

Table of Contents

during that Offering Period. Subject to Section 3 hereof and subject to any such rules as may be prescribed by the Administrator, an Eligible Employee may authorize payroll deductions at the rate of any whole percentage or in a specified amount of the Eligible Employee’s Compensation; in either case, not to exceed Five Hundred U.S. Dollars ($US500) per month. All payroll deductions may be held by the Company and commingled with other corporate funds. No interest shall be paid or credited to the Participant with respect to such payroll deductions.

(b)    To the extent necessary to comply with Code Section 423(b)(8) and Section 3 hereof, a Participant’s payroll deductions may be decreased to zero percent (0%) at any time during an Offering Period.

(c)    If, on the Purchase Date, the Purchase Price of a Share for the applicable Offering Period exceeds the Fair Market Value of a Share on such date, no Shares will be purchased, and any payroll deductions shall be promptly refunded to the Participant.

(d)    Subject to the Administrator’s absolute right to prohibit such increases or decreases, a Participant may increase or decrease his or her payroll deduction by filing a new payroll deduction authorization at any time during an Offering Period.

7.    Exercise of Option.

(a)    All purchases of Shares under the International Plan are to be made with U.S. Dollars into which the payroll deductions for the Offering Period or other approved contributions have been converted in accordance with Section 7(b) below. Each Eligible Employee who is a Participant on the Purchase Date of an Offering Period shall be deemed to have exercised his or her Option on such date and shall be deemed to have purchased from the Company the maximum number of full Shares at the applicable Purchase Price which may be purchased with the accumulated payroll deductions in his or her Account. The Administrator may determine from time to time whether fractional shares may be purchased. If the purchase of fractional shares is not permitted, any payroll deductions accumulated in a Participant’s Account which are not sufficient to purchase a full share shall be promptly refunded to the Participant.

(b)    For purposes of determining the number of Shares purchasable by a Participant, the payroll deductions credited to each Participant’s Account during each Offering Period shall be converted into U.S. Dollars on the Purchase Date for that Offering Period on the basis of the exchange rate in effect on such date. The Administrator shall have the absolute discretion to determine the applicable exchange rate to be in effect for each purchase date by any reasonable method (including, without limitation, the exchange rate actually used by the Company for its intra-Company financial transactions for the month of such transfer). Any changes or fluctuations in the exchange rate at which the payroll deductions or other approved contributions collected on the Participant’s behalf are converted into U.S. Dollars on each purchase date shall be borne solely by the Participant.

(c)    At the time the Option is exercised, in whole or in part, or at the time some or all of the Company’s Shares issued under the International Plan are disposed of, the Participant must make adequate provision, in such manner as may be required by the Administrator, for the Company’s federal, state, or other tax withholding obligations, if any, which arise upon the exercise of the Option or the disposition of the Shares. At any time, the Company may, but shall not be obligated to, withhold from the Participant’s Compensation the amount necessary for the Company to meet applicable withholding obligations, including any withholding required to make available to the Company any tax deductions or benefits attributable to sale or early disposition of Shares by the Participant.

8.    Withdrawal/Termination of Participation.    A Participant may withdraw from an Offering Period, in whole but not in part, at any time prior to the Purchase Date of the Offering Period by delivering to the Company a notice of withdrawal at least ten (10) days prior to the end of the Offering Period, in which event the Company will refund the entire balance of the Participant’s Account to the Participant as soon as reasonably practicable thereafter. No further payroll deductions will be made for such a Participant during such Offering Period.

8

Table of Contents

9.    Termination of Employment.    Upon termination of employment or loss of eligibility to participate in the International Plan for any reason whatsoever, including but not limited to death or retirement, the balance in a Participant’s Account shall be paid to the Participant or to the Participant’s beneficiary, as designated under Section 20, or if no beneficiary is so designated, to the Participant’s estate.

10.    Shares Reserved for International Plan.    The Shares purchasable by Participants under the International Plan shall be made available from Shares reserved under Section 10 of the Plan and any Shares issued under the International Plan will reduce, on a share-for-share basis, the number of Shares available for subsequent issuance under the Plan.

11.    Rights as Shareholder.    No Participant shall have any right as a shareholder with respect to any Shares until the Shares have been purchased and the Participant becomes the holder of record of Shares pursuant to Section 13 hereof. Except as otherwise provided under the International Plan, no adjustment will be made for dividends or distributions with respect to Options as to which there is a record date preceding the date the Participant becomes the beneficial owner of such Shares, except as the Board may determine in its sole discretion.

12.    Conditions Upon Issuance of Shares.

(a)    Shares shall not be issued with respect to an Option unless the exercise of such Option and the issuance and delivery of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the Shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance.

(b)    As a condition to the exercise of an Option, the Company may require the Participant exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned applicable provisions of law.

13.    Evidence of Share Ownership.    Subject to the terms and conditions of the Plan, promptly following the end of each Offering Period, each Participant shall become the beneficial owner of all Shares and any fractional interest in Shares purchased, if allowed by the Administrator, on his or her behalf.

14.    Transferability.

(a)    Neither payroll deductions credited to a Participant’s Account nor any rights with regard to the exercise of an Option or to receive Shares under the International Plan may be assigned, transferred, pledged or otherwise disposed of in any way by the Participant. Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds from an Offering Period in accordance with Section 7 hereof.

(b)    Unless otherwise determined by the Administrator, Shares delivered to a Participant hereunder may not be assigned, transferred, pledged or otherwise disposed of in any way by the Participant during the one year period following such delivery to the Participant (other than by will, the laws of descent and distribution) and the Shares shall bear a legend denoting such restrictions as may be determined by the Administrator to be appropriate.

15.    Administration.

(a)    The International Plan shall be administered in accordance with Section 15 of the Plan.

(b)    The International Plan shall be administered in accordance with the applicable laws in the jurisdiction in which an International Designated Subsidiary or the Participants are located. Additional or different provisions for individual International Designated Subsidiaries may be 

9

Table of Contents

incorporated in one or more Addenda to the International Plan. Such Addenda shall have full force and effect with respect to the International Designated Subsidiaries to which they apply. In the event of a conflict between the provisions of such an Addendum and one or more other provisions of the International Plan, the provisions of the Addendum shall be controlling.

16.    Reports.    Statements of each Participant’s Account shall be given to Participants at least annually, which statements shall set forth the amounts of payroll deductions, the Purchase Price, the number of Shares purchased and the remaining cash balance, if any.

17.    Changes in Capitalization/Corporate Transaction.    The provisions of Section 17 of the Plan will control in the event of changes in capitalization as described in Section 17(a) of the Plan and a corporate transaction as described in Section 17(b) of the Plan.

18.    Amendment or Termination.

(a)    The Administrator may at any time and for any reason terminate or amend the International Plan. Except as otherwise provided in the International Plan, no such termination shall adversely affect Options previously granted, provided that an Offering Period may be terminated by the Administrator on any Purchase Date if the Administrator determines that the termination of the Offering Period or the International Plan is in the best interests of the Company and its shareholders. Except as provided in Section 17 and this Section 18 hereof, no amendment may make any change in any Option theretofore granted which adversely affects the rights of any Participant. To the extent necessary to comply with Section 423 of the Code (or any successor rule or provision or any other applicable law, regulation or stock exchange rule), the Company shall obtain shareholder approval in such a manner and to such a degree as required under Section 423 of the Code of any other applicable law, regulation or stock exchange or national or international quotation system rule.

(b)    In the event the International Plan is terminated, the Board may elect to terminate all outstanding Options either immediately or upon completion of the purchase of Shares on the next Exercise Date, or may elect to permit Options to expire in accordance with their terms (and participation to continue through such expiration dates). If the Options are terminated prior to expiration, all funds contributed to the International Plan that have not been used to purchase Shares shall be returned to the Participants.

19.    Notices.    All notices or other communications by a Participant to the Company under or in connection with the International Plan shall be deemed to have been duly given when received in the form and manner specified by the Company at the location, or by the person, designated by the Company for the receipt thereof.

20.    Designation of Beneficiary.    A Participant may file with the Company a written designation of a beneficiary who is to receive Shares and cash, if any, under the International Plan in the event of such Participant’s death prior to delivery of such shares or cash to such Participant. In the event of the death of a Participant who has not filed a designation of beneficiary with the Company, the Company will deliver such Shares or cash to the Participant’s estate.

21.    No Employment Rights.    The International Plan does not, directly or indirectly, create any right for the benefit of any employee or class of employees to purchase any Shares under the International Plan, or create in any employee or class of employees any right with respect to continuation of employment by the Company or any of its Subsidiaries, and it shall not be deemed to interfere in any way with the Company or Subsidiary’s right to terminate, or otherwise modify, an employee’s employment at any time.

22.    Governing Law.    The International Plan shall be construed and administered in accordance with the laws of Bermuda without regard for conflict of law principles.

23.    Successors and Assigns.    The International Plan will be binding upon and inure to the benefit of the successors and permitted assigns of the Company.

24.    Term of International Plan.    The International Plan shall become effective on the date determined by the Board, subject to approval by the Company’s shareholders. It shall continue in effect until terminated under Section 18 or until the Plan is terminated.

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]