Document:

Exhibit

    
UNIQUE FABRICATING, INC.

Notice of Stock Option Grant
Under 2013 Stock Incentive Plan

Notice is hereby given of the following option grant (the “Option”) to purchase shares of Common Stock of Unique Fabricating, Inc. (the “Company”):
Optionee:  Byrd Douglas Cain, III
Grant Date: September 30, 2019
Vesting Commencement Date:  September 30, 2019
Exercise Price:  $2.89 per share
Number of Option Shares:  72,500 shares of Common Stock
Termination Date:  September 30, 2029
Type of Option:            Incentive Stock Option
X  Non-Statutory Stock Option 
Vesting Schedule:  Options for 36,250 shares will vest once the closing price of the Company’s stock is in excess of $7.50 per share for 10 of 20 consecutive trading days. Options for 36,250 shares will vest once the closing price of the Company’s stock is in excess of $12.50 per share for 10 of 20 consecutive trading days.

The Optionee understands and agrees that the Option is granted subject to and in accordance with the terms of the Company’s 2013 Stock Incentive Plan (the “Plan”).  The Optionee further agrees to be bound by the terms of the Option as set forth in this Notice of Grant and in the Stock Option Agreement attached hereto as Exhibit A, as well as the terms of the Plan, which is attached hereto as Exhibit B.  
Simultaneously with the exercise by Optionee of the Option, in whole or in part, and as a condition thereto, at the request of the Company the Optionee shall execute a counterpart signature page to the Stockholders Agreement dated as of March 18, 2013 by and among the Company and its stockholders, as amended from time to time, or other similar or substitute stockholders agreement(s), and the Optionee shall thereby be bound and subject to, all the terms and provisions thereof. 
No Employment or Service Contract.  Nothing in this Notice or in the attached Stock Option Agreement or Plan shall confer upon the Optionee any right to continue in service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Parent or Subsidiary employing or retaining the Optionee) or of the Optionee, which rights are hereby expressly reserved by each, to terminate the Optionee’s service at any time for any reason, with or without cause.

DATED: October 7, 2019

UNIQUE FABRICATING, Inc.

By:_____________________________
    

OPTIONEE

_____________________________

                    
Address:    
_____________________________
_____________________________
_____________________________
                    
                                                

ATTACHMENTS
Exhibit A - Stock Option Agreement
Exhibit B - 2013 Stock Incentive Plan

EXHIBIT A

UNIQUE FABRICATING, INC.

Stock Option Agreement
Under 2013 Stock Incentive Plan
 
Section 1.Grant of Option.
(a)This Stock Option Agreement (the “Agreement”) evidences the grant by Unique Fabricating, Inc., a Delaware corporation (the “Company”), on the Grant Date, to the Optionee, of an option (the “Option”) to purchase, in whole or in part, on the terms provided herein and in the Company’s 2013 Stock Incentive Plan (the “Plan”), a total number of shares of the Company’s common stock equal to the Number of Option Shares set forth in the Notice of Grant to which this Agreement is attached as Exhibit A, at a price per share equal to the Exercise Price.  Unless earlier terminated in accordance with Section 3(c), (d) or (e) of this Agreement, the Option shall expire at 5:00 p.m., Eastern Standard Time, on the Termination Date.  Capitalized terms used in this Section 1(a) and not otherwise defined herein shall refer to the information set forth next to such terms on the Notice of Grant.  Capitalized terms used in this Agreement and not otherwise defined in this Agreement or in the Notice of Grant shall have the meanings assigned to such terms in the Plan, which is attached to the Notice of Grant as Exhibit B.

(b)If designated in the Notice of Grant as an Incentive Stock Option, the Option is intended to qualify as an “incentive stock option” under Section 422 of the Code.

(c)Except as otherwise indicated by the context, the term “Optionee” as used in this Agreement, shall be deemed to include any person who acquires the right to exercise the Option validly under its terms.

Section 2.Vesting Schedule.
(a)The Option will become exercisable as described under the heading “Vesting” in the Notice of Grant.

(b)The right of exercise shall be cumulative so that, to the extent the Option is not exercised in any period to the maximum extent permissible, it shall continue to be exercisable, in whole or in part, with respect to all vested Option Shares until the earliest to occur of (i) the Termination Date, (ii) the termination of the Option under Section 3 hereof, or (iii) any other termination of the Option under the Plan.

Section 3.Exercise of Option.

(a)Form of Exercise.  In order to exercise the Option with respect to all or any part of the Option Shares, the Optionee (or any other person or persons exercising the Option in accordance with Section 3(d)) must execute and deliver to the Company an election notice in the form of Schedule 1 to this Agreement, either in writing or electronically, accompanied by payment in full in a manner provided in Section 4.  The Optionee may purchase any number of vested Option Shares subject to the Option, in any exercise of the Option, provided that no partial exercise of the Option may be for any fractional share.

(b)Continuous Relationship with the Company Required.  Except as otherwise provided in this Section 3, the Option may not be exercised unless the Optionee, at the time he or she exercises the Option, is, and has been at all times since the Grant Date, a Service Provider.

(c)Termination of Relationship with the Company.  If the Optionee ceases to be a Service Provider for any reason while the Option is outstanding, then, except as provided in Sections 3(d) and (e), the right to exercise the Option shall terminate three months after such cessation (but in no event after the Termination Date), provided that the Option shall be exercisable only to the extent and with respect to the number of Option Shares that the Optionee was entitled to exercise on the date of such cessation.

(d)Exercise Period Upon Death or Disability.  If the Optionee dies or suffers a Disability while the Option is outstanding (including within the three-month period following termination of service of the Optionee), and the Company has not terminated the Optionee’s service for “Cause” as specified in Section 3(e), the Option shall be exercisable, within the period of one year following the date of termination of service of the Optionee, (i) in the case of a termination of service due to the Disability of the Optionee, by the Optionee, and (ii) in the case of a termination of service due to the death of the Optionee, by (A) a beneficiary designated in writing by the Optionee to the Company prior to the Optionee’s death, or (B) if no such beneficiary has been designated, by the personal representative of the Optionee’s estate or by the person(s) to whom the Option is transferred pursuant to the Optionee’s will or in accordance with the laws of descent and distribution; provided, that, in any case, the Option shall be exercisable only to the extent and with respect to the number of Shares that the Optionee was entitled to exercise on the date of his or her death or Disability; and further provided, that the Option shall not be exercisable after the Termination Date.

(e)Discharge for Cause.  If the Optionee’s service with the Company is terminated for Cause while the Option is outstanding, the right to exercise the Option shall terminate immediately upon the effective date of such discharge.  “Cause” shall mean willful misconduct by the Optionee or willful failure by the Optionee to perform his or her responsibilities to the Company (including, without limitation, breach by the Optionee of any provision of any employment, consulting, advisory, nondisclosure, non-competition or other similar agreement between the Optionee and the Company), as determined by the Company, which determination shall be conclusive; provided, however, that if any definition of “Cause” for termination (or a similar term) is contained in an effective offer letter, employment agreement or similar agreement between the Company and the Optionee at the time of termination, such definition shall supersede the definition in this Section 3(e) and shall be incorporated in this Section 3(e) as the definition of “Cause.”  If the Company determines, within 30 days following any resignation by the Optionee, that discharge of the Optionee was warranted at the time of such resignation, then the Optionee shall be considered to have been discharged for “Cause.”

(f)Limited Exercisability.  During any period of post-service exercisability, the Option may not be exercised in the aggregate for more than the number of Option Shares in which the Optionee is, at the time of the Optionee’s cessation of service, vested in accordance with the Vesting Schedule specified in the Notice of Grant.  Upon the expiration of such exercise period or (if earlier) upon the Termination Date, the Option shall terminate and cease to be outstanding for any vested Option Shares for which the Option has not been exercised.  To the extent that the Optionee is not vested in the Option Shares at the time of the Optionee’s cessation of service, the Option shall immediately terminate and cease to be outstanding with respect to the Option Shares.

Section 4.Method of Payment.

(a)Common Stock purchased upon exercise of the Option may be paid in any one or more of the following forms:
(i)cash or check made payable to the Company; 

(ii)subject to Section 4(b), by the tendering to the Company of other shares of Common Stock of the Company (“Tendered Shares”); or
(iii)any combination of the forms of consideration set forth in subsection (i) and (ii) above.

(b)Tendered Shares must be held by the Service Provider for at least six months prior to their tender to the Company.  For purposes of determining the amount of the Exercise Price satisfied by the Tendered Shares, such shares shall be valued at their Fair Market Value on the date of tender.  Except as provided in this Section 4(b), the date of exercise shall be deemed to be the date that the notice of exercise and payment of the Exercise Price are received by the Administrator.  

(c)Prior to the delivery of any Shares or cash pursuant to the Option (or exercise thereof), the Company shall have the power and the right to deduct or withhold, or require the Optionee to remit to the Company, an amount sufficient to satisfy federal, state, and local taxes (including the Optionee’s FICA obligation) required to be withheld with respect to the Option (or exercise thereof).  To the extent that the Company is required by Applicable Law to withhold funds for taxes in respect of any exercise of the Option, then the aggregate Exercise Price shall not be deemed paid and the Option shall not be deemed exercised and the Option Shares issuable upon exercise shall not be deemed issued, until the Optionee has paid to the Company, in a manner provided in this Section 4, the aggregate amount of such tax withholding.

Section 5.Disqualifying Disposition.  If the Optionee disposes of Option Shares acquired upon exercise of an Incentive Stock Option within two years from the Grant Date or one year after such Option Shares were acquired pursuant to exercise of the Option, the Optionee shall notify the Company in writing of such disposition.

Section 6.Nontransferability of Option.  The Option may not be sold, pledged (other than a pledge in favor of the Company and/or its Affiliates(s)), assigned, hypothecated, transferred, or disposed of in any manner by the Optionee, either voluntarily or by operation of law, other than by will or the laws of descent and distribution, and, during the lifetime of the Optionee, the Option shall be exercisable only by the Optionee.

Section 7.Adjustments.  In the event that there is any stock dividend that is paid on Common Stock in shares of Common Stock, or any stock split, reverse stock split, combination or reclassification of Common Stock, or any other increase in the number of outstanding shares of Common Stock without receipt of consideration by the Company, then  the total number and/or class of securities subject to the Option and the Exercise Price of the Option shall be appropriately adjusted, in such manner as the Administrator in its sole discretion deems equitable, in order to prevent dilution or enlargement of the rights of the Optionee under the Option.

Section 8.Stockholder Rights.  The holder of the Option shall not have any rights as a stockholder with respect to the Option Shares until such person shall have exercised the Option, paid the Exercise Price and become the record holder of the purchased Shares in accordance with the terms of this Agreement and the Plan.

Section 9.Repurchase Rights.  

(a)Terms.  

(i)In the event that the Optionee’s service with the Company is terminated for any reason (including by the Company with or without Cause), the Company shall have the right to purchase from the Optionee, and if the Company exercises its option pursuant to this Section 9(a), the Optionee shall sell to the Company upon the exercise of such right, any or all of the Optionee’s Option Shares at the Fair Market Value per Share, but if the termination is for Cause, then at the applicable Exercise Price per Share.

(ii)Notwithstanding the foregoing, in the event the Optionee's service is terminated by reason of the Optionee's death, for a period of twelve (12) months from the date of such termination the Company shall have the right to purchase from the beneficiaries of the estate of the Optionee, and if the Company exercises its option pursuant to this Section 9(a), the beneficiaries of the estate of the Optionee shall sell to the Company, upon the exercise of such right, any or all of such Optionee's Option Shares in accordance with Section 9(a)(i) above.

(iii)The number of Option Shares subject to purchase pursuant to Sections 9(a)(i) shall be adjusted to give effect to any stock dividend, or other distribution of stock made on or in respect of such Option Shares, or any subdivision, combination or reclassification of the outstanding capital stock of the Company or received in exchange for the Option Shares.

(iv)In order to exercise the option to purchase the Optionee’s Option Shares under this Section 9(a), the Company shall deliver a written notice to the Optionee (the “Share Repurchase Notice”), indicating its election to purchase any or all of the Option Shares and specifying the number of Option Shares which the Company elects to purchase and the purchase price therefor, within ninety (90) days after the Optionee’s termination; provided, however, that in the event that the Optionee's service is terminated by reason of the Optionee's death, the Company shall deliver such Share Repurchase Notice to (i) a beneficiary designated in writing by the Optionee to the Company prior to the Optionee’s death, or (ii) if no such beneficiary has been designated, by the personal representative of the Optionee’s estate or by the person(s) to whom the Option is transferred pursuant to the Optionee’s will or in accordance with the laws of descent and distribution, within twelve (12) months after the date of such termination.

(v)The repurchase of Option Shares hereunder shall be made on a date within sixty (60) days of the delivery of the Share Repurchase Notice, by delivery of payment to the Optionee or the administrator of his or her estate, as applicable, by check or wire transfer, against receipt of one or more certificates, properly endorsed, evidencing the Optionee’s Option Shares to be so purchased.  If the repurchase is not consummated by such date, the Company may deliver to the Optionee or the administrator of his or her estate, as applicable, by check or wire transfer the applicable repurchase price for the Option Shares to be repurchased and may cancel the certificates evidencing such Option Shares on the books and records of the Company.

(vi)Notwithstanding anything to the contrary contained in this Agreement, all repurchases of Option Shares by the Company shall be subject to applicable restrictions contained in federal law, the Delaware General Corporate Law and in the Company’s debt and equity financing agreements.  Notwithstanding anything to the contrary contained in this Agreement, if any such restrictions prohibit or otherwise delay the repurchase of any Option Shares thereunder which the Company is otherwise entitled to make, the Company may make 

such repurchases within sixty (60) days of the date that it is permitted to do so under such restrictions.

(b)Definitions.  For purposes of Section 9(a), the term “Fair Market Value” shall mean, with respect to any Option Share, the value of such Option Share as determined under the Plan.  The term “Exercise Price” shall mean the value as stated in the Optionee’s Notice of Grant.

Section 10.Section 409A of the Code. Under Section 409A of the Code, an Option that is granted with a per Share exercise price that is determined by the Internal Revenue Service (the “IRS”) to be less than the Fair Market Value of a Share on the Grant Date (a “Discount Option”) may be considered “deferred compensation.” A Discount Option may result in (a) income recognition by the Optionee prior to the exercise of the Option, (b) an additional twenty percent (20%) federal income tax, and (c) potential penalty and interest charges. The Discount Option may also result in additional state income, penalty and interest charges to the Optionee.  The Optionee acknowledges that the Company cannot and has not guaranteed that the IRS will agree that the per Share exercise price of the Option equals or exceeds the Fair Market Value of a Share on the Grant Date in a later examination. The Optionee agrees that if the IRS determines that the Option was granted with a per Share exercise price that was less than the Fair Market Value of a Share on the Grant Date, the Optionee will be solely responsible for the Optionee's costs related to such a determination.

Section 11.Notices.  Any notices required or permitted by the terms of this Agreement or the Plan shall be given by recognized courier service, facsimile, or registered or certified mail, return receipt requested, addressed as follows:

If to the Company:    Unique Fabricating, Inc.
800 Standard Parkway
Auburn Hills, MI 48326
Attention: Corporate Secretary.
                
If to the Optionee:    At the address set forth in the Notice of Grant
or to such other address or addresses of which notice in the same manner has previously been given.  Any such notice shall be deemed to have been given upon the earlier of receipt, one business day following delivery to a recognized courier service or three business days following mailing by registered or certified mail.
Section 12.Governing Law.  This Agreement shall be construed and enforced in accordance with the law of the State of Delaware, without giving effect to the conflict of law principles thereof

Section 13.Successors and Assigns.  Subject to the provisions of the Plan and the other provisions hereof, this Agreement shall be for the benefit of and shall be binding upon the heirs, executors, administrators, successors and assigns of the parties hereto.

Section 14.Construction.  This Agreement and the Option evidenced hereby and by the Notice of Grant are made and granted pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan.  All decisions of the Administrator with respect to any question or issue arising under the Plan or this Agreement shall be conclusive and binding on all persons having an interest in the Option.

        
NOTICE OF EXERCISE
TO:    Unique Fabricating, Inc. (the “Company”)
Reference is made to the Notice of Grant, dated __________, 20___, evidencing an Option (the “Option”) to purchase an aggregate of _________ shares of Common Stock of the Company at an exercise price of $2.89 per share.  Capitalized terms used but not defined in this Notice of Exercise have the meanings given to them in the Notice of Grant and the accompanying Option Agreement and Plan.
I understand the nature of the investment I am making and the financial risks thereof.  I am aware that it is my responsibility to have consulted with competent tax and legal advisors about the relevant national, state and local income tax and securities laws affecting the exercise of the Option and the purchase and subsequent sale of the Option Shares.
I am paying the Exercise Price for the exercised Option Shares, in accordance with Section 4 of the Option Agreement, as follows:
____________________________________________________
____________________________________________________
Please issue the stock certificate for the Option Shares (check one):
□      to me; or
		
	□
	to me and ______________________________, as joint tenants with right of survivorship.

and mail the certificate to me at the following address:
______________________________
______________________________
______________________________
                                                    

My mailing address for stockholder communications, if different from the address listed above, is:
______________________________
______________________________
______________________________
                            
                            
                            
Very truly yours,

______________________________
Optionee

______________________________
                            
         Print Name

______________________________

        Date

______________________________
Social Security Number

EXHIBIT B

Unique Fabricating, INC.

2013 Stock Incentive Plan

See attached.Exhibit

Unique Fabricating, Inc.
2014 Omnibus Performance Award Plan
ISO AWARD AGREEMENT
Unique Fabricating, Inc., a Delaware corporation (the “Corporation”), pursuant to the terms of its 2014 Omnibus Performance Award Plan (the “Plan”) and the Incentive Stock Option Award attached to this ISO Award Agreement, hereby grants to the individual named below the option to purchase the number of shares of the Corporation’s Common Stock, also as is set forth below.  The terms of this ISO Award Agreement are subject to all of the provisions of the Plan and the attached Incentive Stock Option Award, with such provisions being incorporated herein by reference.
1.    Date of Grant:        September 30, 2019
2.    Name of Participant:    Byrd Douglas Cain, III
3.    Number of Shares:    72,500 of Common Stock
4.    Exercise Price:    $2.89 per Share of Common Stock.
5.     Vesting of Options: Options for 36,250 shares will vest once the closing price of the Company’s stock is in excess of $7.50 per share for 10 of 20 consecutive trading days. Options for 36,250 shares will vest once the closing price of the Company’s stock is in excess of $12.50 per share for 10 of 20 consecutive trading days.

6.    Expiration Date:    September 30, 2029
The Participant acknowledges receipt of, and understands and agrees to be bound by all of the terms of, this ISO Award Agreement, the attached Incentive Stock Option Award and the Plan, and that the terms thereof supersede any and all other written or oral agreements between the Participant and the Corporation regarding the subject matter contained herein.
	
		
	Unique Fabricating, Inc.:

By:
Title:Date:
	Participant:

By:
Title:Date:

INCENTIVE STOCK OPTION AWARD
THIS AGREEMENT made as of the grant date set forth in Section 1 of the ISO Award Agreement to which this Agreement is attached (the “Date of Grant”) between Unique Fabricating, Inc., a Delaware corporation (hereinafter referred to as the “Corporation”), and the individual identified in Section 2 of the ISO Award Agreement to which this Agreement is attached (hereinafter referred to as the “Participant”).

W I T N E S S E T H:
WHEREAS, the Corporation desires, in connection with the employment of the Participant and in accordance with its 2014 Omnibus Performance Award Plan (the “Plan”), to provide the Participant with an opportunity to acquire Common Stock of the Corporation on favorable terms and thereby increase his proprietary interest in the continued progress and success of the business of the Corporation;
NOW, THEREFORE, in consideration of the premises, the mutual covenants herein set forth and other good and valuable consideration, the Corporation and the Participant hereby agree as follows:
1.Confirmation of Grant of Option.  Pursuant to a determination by the Committee, the Corporation, subject to the terms of the Plan and this Agreement, hereby grants to the Participant as a matter of separate inducement and agreement, and in addition to and not in lieu of salary or other compensation for services, the right to purchase (hereinafter referred to as the “Option”) an aggregate number of shares of Common Stock as is set forth in Section 3 of the attached ISO Award Agreement, subject to adjustment as provided in the Plan (such shares, as adjusted, hereinafter being referred to as the “Shares”).  The Option is intended to qualify as an incentive stock option under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”). 

2.Purchase Price.  The purchase price of shares of Common Stock covered by the Option will be the per share amount set forth in Section 4 of the attached ISO Award Agreement, at all times being not less than 100% of the Fair Market Value of one share of Common Stock on the Date of Grant, subject to adjustment as provided in the Plan.

3.Exercise of Option.  The Option shall be exercisable on the terms and conditions hereinafter set forth:
(a)The Option shall become exercisable cumulatively as to the number of Shares originally subject thereto (after giving effect to any adjustment pursuant to the Plan), and on the vesting schedule, as set forth in Section 5 of the attached ISO Award Agreement.

(b)The Option may be exercised pursuant to the provisions of this Section 3, by notice and payment to the Corporation as provided in Sections 9 and 13 hereof.

4.Term of Option.  The term of the Option shall be the period of years from the Date of Grant as is set forth in Section 1 of the attached ISO Award Agreement and shall expire on the date set forth in Section 6 of the ISO Award Agreement, subject to earlier termination or cancellation as provided in this Agreement. 

5.Non transferability of Option.  The Option shall not be assigned, transferred or otherwise disposed of, or pledged or hypothecated in any way, and shall not be subject to execution, attachment or other process, except as may be provided in the Plan.  Any assignment, transfer, pledge, hypothecation or other disposition of the Option attempted contrary to the provisions of the Plan, or any levy of execution, attachment or other process attempted upon the Option, will be null and void and without effect.  Any attempt to make any such assignment, transfer, pledge, hypothecation or other disposition of the Option will cause the Option to terminate immediately upon the happening of any such event; provided, however, that any such termination of the Option under the foregoing provisions of this Section 5 will not prejudice any rights or remedies which the Corporation or any Affiliate may have under this Agreement or otherwise.

6.Exercise Upon Termination of Service.  (a)  If the Participant at any time incurs a Termination of Service (i) by reason of his discharge for Cause or (ii) due to his voluntary Termination of Service without the written consent of the Committee, the Option shall, at the time of such Termination of Service, terminate and the Participant shall forfeit all rights hereunder.  If, however, the Participant for any other reason (other than Disability or death) incurs a Termination of Service, the Option may, subject to the provisions of Section 5 hereof, be exercised by the Participant to the same extent the Participant would have been entitled under Section 3 hereof to exercise the Option immediately prior to such Termination of Service, at any time within 90 days after such Termination of Service, at the end of which period the Option, to the extent not then exercised, shall terminate and the Participant shall forfeit all rights hereunder, even if the Participant subsequently returns to the Service of the Corporation or any Affiliate.  In no event, however, may the Option be exercised after the expiration of the term provided in Section 4 hereof.

(a)The Option shall not be affected by any change of duties or position of the Participant so long as he continues to be in full-time Service of the Corporation or of any Affiliate thereof.  If the Participant is granted a temporary leave of absence of 90 days or less, such leave of absence shall be deemed a continuation of his Service by the Corporation or of any Affiliate thereof for the purposes of this Agreement, but only if and so long as the corporation consents thereto.

7.Exercise Upon Death or Disability.  (a)  If the Participant dies while he is in the Service of the Corporation or of any Affiliate, and on or after the first date upon which he would have been entitled to exercise the Option under the provisions of Section 3 hereof, the Option may, subject to the provisions of Section 5 hereof, be exercised to the same extent the Participant would have been entitled under Section 3 hereof to exercise the Option immediately prior to his death, by the estate of the Participant (or by the person or persons who acquire the right to exercise the Option by written designation of the Participant) at any time within one year after the death of the Participant, at the end of which period the Option, to the extent not then exercised, shall terminate and the estate or other beneficiaries shall forfeit all rights hereunder.  In no event, however, may the Option be exercised after the expiration of the term provided in Section 4 hereof.

(a)In the event that the Participant incurs a Termination of Service by reason of the Disability of the Participant on or after the first date upon which he would have been entitled to exercise the Option under the provisions of Section 3 hereof, the Option may, subject to the provisions of Section 5 hereof, be exercised to the same extent the Participant would have been entitled under Section 3 hereof to exercise the Option immediately prior to his employment termination due to Disability by the Participant within the period ending one year after the date of such Termination of Service, at the end of which period the Option, to the extent not then exercised, shall terminate and the Participant shall forfeit all rights hereunder even if the Participant subsequently returns to the Service of the Corporation or any Affiliate.  In no event, however, may the Option be exercised after the expiration of the term provided in Section 4 hereof.

8.Registration.  At the time of issuance, the shares of Common Stock subject hereto and issuable upon the exercise hereof may not be registered under the Securities Act of 1933, as amended, and, if required upon the request of counsel to the Corporation, the Participant will give a representation as to his investment intent with respect to such shares prior to their issuance. The Corporation may register or qualify the shares covered by the Option for sale pursuant to the Securities Act of 1933, as amended, at any time prior to or after the exercise in whole or in part of the Option.

9.Method of Exercise of Option.  (a)  Subject to the terms and conditions of this Agreement, the Option shall be exercisable by notice in the manner set forth in Exhibit “A” hereto (the “Notice”) and provision for payment to the Corporation in accordance with the procedure prescribed herein.  Each such Notice shall:

(i)state the election to exercise the Option and the number of Shares with respect to which it is being exercised;

(ii)contain a representation and agreement as to investment intent, if required by counsel to the Corporation with respect to such Shares, in a form satisfactory to counsel to the Corporation;

(iii)be signed by the Participant or the person or persons entitled to exercise the Option and, if the Option is being exercised by any person or persons other than the Participant, be accompanied by proof, satisfactory to counsel to the Corporation, of the right of such other person or persons to exercise the Option; 

(iv)include payment of the full purchase price for the shares of Common Stock to be purchased pursuant to such exercise of the Option; and

(v)be received by the Corporation on or before the date of the expiration of this Option.  In the event the date of expiration of this Option falls on a day which is not a regular business day at the Corporation’s executive office in Auburn Hills, Michigan then such written Notice must be received at such office on or before the last regular business day prior to such date of expiration.
(vi)Payment of the purchase price of any shares of Common Stock, in respect of which the Option shall be exercised, shall be made by the Participant or such person or persons at the place specified by the Corporation on the date the Notice is received by the Corporation (i) by delivering to the Corporation a certified or bank cashier’s check payable to the order of the Corporation, (ii) by delivering to the Corporation properly endorsed certificates of shares of Common Stock (or certificates accompanied by an appropriate stock power) with signature guaranties by a bank or trust company, or (iii) by any combination of the foregoing.  For purposes of the immediately preceding sentence, an exercise effected by the tender of Common Stock (or deemed to be effected by the tender of Common Stock) may only be consummated with Common Stock held by the Participant for a period of six (6) months or acquired by the Participant other than under the Plan (or a similar plan maintained by the Corporation).

(vii)The Option shall be deemed to have been exercised with respect to any particular shares of Common Stock if, and only if, the preceding provisions of this Section 9 and the provisions of Section 10 hereof shall have been complied with, in which event the Option shall be deemed to have been exercised on the date the Notice was received by the Corporation. Anything in this Agreement to the contrary notwithstanding, any Notice given pursuant to the provisions of this Section 9 shall be void and of no effect if all of the preceding provisions of this Section 9 and the provisions of Section 10 shall not have been complied with.

(viii)The certificate or certificates for shares of Common Stock as to which the Option shall be exercised will be registered in the name of the Participant (or in the name of the Participant’s estate or other beneficiary if the Option is exercised after the Participant’s death), or if the Option is exercised by the Participant and if the Participant so requests in the notice exercising the Option, will be registered in the name of the Participant and another person jointly, with right of survivorship and will be delivered as soon as practical after the date the Notice is received by the Corporation (accompanied by full payment of the exercise price), but only upon compliance with all of the provisions of this Agreement.

(ix)If the Participant fails to accept delivery of and pay for all or any part of the number of Shares specified in such Notice, his right to exercise the Option with respect to such undelivered Shares may be terminated in the sole discretion of the Committee.  The Option may be exercised only with respect to full Shares.

(x)The Corporation shall not be required to issue or deliver any certificate or certificates for shares of its Common Stock purchased upon the exercise of any part of the Option prior to the payment to the Corporation, upon its demand, of any amount requested by the Corporation for the purpose of satisfying its minimum statutory liability, if any, to withhold federal, state or local income or earnings tax or any other applicable tax or assessment (plus interest or penalties thereon, if any, caused by a delay in making such payment) incurred by reason of the exercise of this Option or the transfer of shares thereupon.  Such payment shall be made by the Participant in cash or, with the written consent of the Corporation, by tendering to the Corporation shares of Common Stock equal in value to the amount of the required withholding.  In the alternative, the Corporation may, at its option, satisfy such withholding requirements by withholding from the shares of Common Stock to be delivered to the Participant pursuant to an exercise of the Option a number of shares of Common Stock equal in value to the amount of the required withholding.

10.Approval of Counsel.  The exercise of the Option and the issuance and delivery of shares of Common Stock pursuant thereto shall be subject to approval by the Corporation’s counsel of all legal matters in connection therewith, including, but not limited to, compliance with the requirements of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, and the requirements of any stock exchange or automated trading medium upon which the Common Stock may then be listed or traded.

11.Reservation of Shares.  The Corporation shall at all times during the term of the Option reserve and keep available such number of shares of Common Stock as will be sufficient to satisfy the requirements of this Agreement.

12.Limitation of Action.  The Participant and the Corporation each acknowledges that every right of action accruing to him or it, as the case may be, and arising out of or in connection with this Agreement against the Corporation or an Affiliate, on the one hand, or against the Participant, on the other hand, shall, irrespective of the place where an action may be brought, cease and be barred by the expiration of three years from the date of the act or omission in respect of which such right of action arises.

13.Notices.  Each notice relating to this Agreement shall be in writing and delivered in person, by recognized overnight courier or by certified mail to the proper address.  All notices to the Corporation or the Committee shall be addressed to them at 800 Standard Parkway, Auburn Hills, Michigan 48326, Attn:  Chief Financial Officer.  All notices to the Participant shall be addressed to the Participant or 

such other person or persons at the Participant’s address set forth in the Corporation’s records.  Anyone to whom a notice may be given under this Agreement may designate a new address by notice to that effect.
14.Benefits of Agreement.  This Agreement shall inure to the benefit of the Corporation, the Participant and their respective heirs, executors, administrators, personal representatives, successors and permitted assignees.
15.Severability.  In the event that any one or more provisions of this Agreement shall be deemed to be illegal or unenforceable, such illegality or unenforceability shall not affect the validity and enforceability of the remaining legal and enforceable provisions hereof, which shall be construed as if such illegal or unenforceable provision or provisions had not been inserted.

16.Governing Law.  This Agreement will be construed and governed in accordance with the laws of the State of Delaware without regard to its principles of conflicts of law. In the event that either party is compelled to bring a claim related to this Agreement, to interpret or enforce the provisions of the Agreement, to recover damages as a result of a breach of the Agreement, or from any other cause (a “Claim”), such Claim must be processed in the manner set forth below:

(i)THE SOLE AND EXCLUSIVE METHOD TO RESOLVE ANY CLAIM IS ARBITRATION, EACH PARTY WAIVES THE RIGHT TO A JURY TRIAL OR COURT TRIAL.  Neither party shall initiate or prosecute any lawsuit in any way related to any Claim covered by this Agreement.

(ii)The arbitration shall be binding and conducted before a single arbitrator in accordance with the then-current JAMS Arbitration Rules and Procedures for Employment Disputes or the appropriate governing body, as modified by the terms and conditions of this paragraph.  Venue for any arbitration pursuant to this Agreement will lie in Auburn Hills, Michigan.  The arbitrator will be selected by mutual agreement of the parties or, if the parties cannot agree, then by striking from a list of arbitrators supplied by JAMS or the appropriate governing body.  The Corporation shall pay the arbitrator’s fees and arbitration costs (recognizing that each side bears the cost of its own deposition(s), witness, expert and attorneys’ fees and other expenses as and to the same extent as if the matter were being heard in a court of law).  Upon the conclusion of the arbitration hearing, the arbitrator shall issue a written opinion revealing, however briefly, the essential findings and conclusions upon which the arbitrator’s award is based.  The award of the arbitrator shall be final and binding. Judgment upon any award may be entered in any court having jurisdiction thereof.

17.Disposition of Shares.  By accepting this Agreement, the Participant agrees that in the event he shall dispose (whether by sale, exchange, gift or any like transfer) of any shares of Common Stock of the Corporation (to the extent such shares are deemed to have been purchased pursuant to this incentive stock option) acquired by him pursuant hereto within two years of the Date of Grant of this Option or within one year after the acquisition of such shares pursuant hereto, he will notify the Chief Financial Officer of the Corporation no later than 15 days from the date of such disposition of such date or dates and the number of shares disposed of by him and the consideration received, if any, and, upon notification from the Corporation, promptly forward to the Chief Financial Officer of the Corporation any amount requested by the Corporation for the purpose of satisfying its liability, if any, to withhold federal, state or local income or earnings tax or any other applicable tax or assessment (plus interest or penalties thereon, if any, caused by any delay in making such payment) incurred by reason of such disposition.

18.Acknowledgment of Participant.  The Participant represents and warrants that as of the Date of Grant of the Option, he does not own (within the meaning of Section 422(b)(6) of the 

Code) shares possessing more than 10% of the total combined voting power of all classes of shares of the corporation or of any Affiliate.

19.Service.  Nothing contained in this Agreement shall be construed as (a) a contract of employment between the Participant and the Corporation or any Affiliate, (b) a right of the Participant to be continued in the Service of the Corporation or of any Affiliate, or (c) a limitation of the right of the Corporation or of any Affiliate to discharge the Participant at any time, with or without cause (subject to any applicable employment agreement).

20.Definitions.  Unless otherwise defined herein, all capitalized terms used in this Agreement shall have the same definitions as set forth in the Plan.

21.Incorporation of Terms of Plan.  This Agreement shall be interpreted under, and subject to, all of the terms and provisions of the Plan, which are incorporated herein by reference.

22.No Strict Construction.  The language used in this Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction shall apply against any party.

BY WAY OF THEIR EXECUTION OF THE ISO AWARD AGREEMENT TO WHICH THIS AGREEMENT IS ATTACHED, the Corporation and the Participant (and each and every one of their heirs, successors and assigns) agree to be bound by each and every one of the terms set forth in this Agreement.

EXHIBIT A
INCENTIVE OPTION EXERCISE FORM
[DATE]
Unique Fabricating, Inc.
800 Standard Parkway
Auburn Hills, MI 48326|
Attention:  Byrd Douglas Cain, III

Dear Sirs:
Pursuant to the provisions of the Incentive Stock Option Award and related ISO Award Agreement dated September 30, 2019 (collectively, the “Agreement”), whereby you have granted to me an Incentive Stock Option (the “Option”) to purchase up to 72,500 shares of the Common Stock of Unique Fabricating, Inc. (the “Corporation”) subject to the terms of the Agreement, I hereby notify you that I elect to exercise  my option to purchase [   ] of the shares of Common Stock covered by such Option at the $2.89 per share price specified therein. In full payment of the price for the shares being purchased hereby, I am delivering to you herewith (i) certified or bank cashier’s check payable to the order of the Corporation in the amount of $____________, or (ii) a certificate or certificates for [   ] shares of Common Stock of the Corporation, and which have a fair market value as of the date hereof of $___________, [and a certified or bank cashier’s check, payable to the order of the Corporation, in the amount of $________________].  Any such stock certificate or certificates are endorsed, or accompanied by an appropriate stock power, to the order of the Corporation, with my signature guaranteed by a bank or trust company or by a member firm of the New York Stock Exchange.  [I hereby acknowledge that I am purchasing these shares for investment purposes only and not for resale in violation of any federal or state securities laws.]
Very truly yours,

______________________________
[Address]
(For notices, reports, dividend checks and other communications to stockholders.)

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