Document:

Exhibit 10.34

 

THE FIRST MARBLEHEAD CORPORATION

 

Incentive Stock Option
Agreement

Granted Under 2003 Stock Incentive Plan

 

1.                                       Grant of Option.

 

This agreement evidences the grant by The First
Marblehead Corporation, a Delaware corporation (the “Company”), on
           , 200   (the “Grant Date”) to
                  ,
an employee of the Company (the “Participant”), of an option to purchase, in
whole or in part, on the terms provided herein and in the Company’s 2003 Stock
Incentive Plan (the “Plan”), a total of
                
  shares (the “Shares”) of common stock, $0.01 par
value per share, of the Company (“Common Stock”) at
$           per Share.  Unless
earlier terminated, this option shall expire at 5:00 p.m., Eastern time,
on                (the “Final Exercise Date”).

 

It is intended that the option evidenced by this
agreement shall be an incentive stock option as defined in Section 422 of
the Internal Revenue Code of 1986, as amended, and any regulations promulgated
thereunder (the “Code”).  Except as
otherwise indicated by the context, the term “Participant”, as used in this
option, shall be deemed to include any person who acquires the right to
exercise this option validly under its terms.

 

2.                                       Vesting Schedule; Forfeiture.

 

This option will become exercisable (“vest”) as to         %
of the original number of Shares on the              anniversary of the Grant Date and as to an additional         %
of the original number of Shares on each succeeding anniversary of the Grant
Date until the             
anniversary of the Grant Date.

 

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 Shares for which it is vested until the earlier of the Final
Exercise Date or the termination of this option under this Section 2, Section 3
hereof or the Plan.

 

The Participant agrees not to engage in a Competitive
Action (as defined below) from the date hereof through the first anniversary of
the date of termination of the Participant’s employment with the Company.  Notwithstanding any other provision of this
agreement, if on or prior to exercise of this option with respect to any of the
Shares, the Participant engages in a Competitive Action or enters into, or has
entered into, an agreement (written, oral or otherwise) to engage in a
Competitive Action, this option and all Shares issuable upon exercise of this
option shall be immediately forfeited, and the Participant shall have no
further rights with respect to such option or Shares.  Notwithstanding any other provision of this
agreement, in the event that the Participant engages in a Competitive Action or
enters into, or has entered into, an agreement (written, oral or otherwise) to
engage in a Competitive Action after exercise of this option with respect to
any of the Shares, but on or prior to the first anniversary of the Participant’s
termination of employment with the Company, this option, to the extent not
exercised, shall be immediately forfeited, and the Participant shall have no
further rights with respect to this option or any Shares subject to this option
and the Participant shall pay to the

 

 

Company, upon demand by
the Company, an amount equal to (i) the value, as of each date of exercise
of this option, of the number of Shares delivered to the Participant pursuant
to such exercise and (ii) the value of all dividends, if any, paid to the
Participant in respect of the Shares delivered to the Participant on such date
of exercise.  The Participant may satisfy
the payment obligation to the Company of the portion due under (i) above
by returning the Shares delivered to the Participant on all dates of exercise,
provided that any amounts due under (ii) above must be remitted to the
Company in addition to the return of the Shares.  The Participant acknowledges that the
restriction on engaging in a Competitive Action, in view of the nature of the
business in which the Company is engaged, is reasonable in scope (as to both
the temporal and geographical limits) and necessary in order to protect the
legitimate business interests of the Company, and that any violation thereof
would result in irreparable injuries to the Company.  The Participant acknowledges further that the
amounts required to be paid to the Company pursuant to this provision are
reasonable and are not liquidated damages nor shall they be characterized as
such and that the payment of such amounts shall not preclude the Company from
seeking any further remedies at law or in equity.

 

For purposes of this agreement, the Participant will
be deemed to engage in a “Competitive Action” if, either directly or
indirectly, and whether as an employee, consultant, independent contractor,
partner, joint venturer or otherwise, the Participant (i) engages in or
directs any business activities, in any geographical area where the Company or
any subsidiary or parent of the Company is engaged in business or outside of
any such geographical area, in either case, which are competitive with any
business activities conducted by the Company or any subsidiary or parent of the
Company in such geographical area, (ii) on behalf of any person or entity
engaged in business activities competitive with the business activities of the
Company or any subsidiary or parent of the Company, solicits or induces, or in
any manner attempts to solicit or induce, any person employed by, or as an
agent of, the Company or any subsidiary or parent of the Company to terminate
such person’s employment or agency relationship, as the case may be, with the
Company or any subsidiary or parent of the Company, (iii) diverts, or
attempts to divert, any person, concern or entity from doing business with the
Company or any subsidiary or parent of the Company or attempts to induce any
such person, concern or entity to cease being a customer of the Company or any
subsidiary or parent of the Company or (iv) makes use of, or attempts to
make use of, the property or proprietary information of the Company or any subsidiary
or parent of the Company, other than in the course of the performance of
services to the Company or any subsidiary or parent of the Company or at the
direction thereof.  The determination as
to whether the Participant has engaged in a Competitive Action (as defined
herein) shall be made by the Compensation Committee of the Board of Directors
of the Company (the “Committee”) in its sole and absolute discretion.  The Committee’s exercise or nonexercise of
such discretion with respect to any particular event or occurrence by or with
respect to the Participant or any other recipient of options, restricted stock
units or other derivative securities of the Company shall not in any way reduce
or eliminate the authority of the Committee to (i) determine that any
event or occurrence by or with respect to the Participant constitutes engaging
in a Competitive Action or (ii) determine the related Competitive Action
date.

 

2

 

3.                                       Exercise of Option.

 

(a)                                  Form of
Exercise.  Each election to exercise
this option shall be in the form attached hereto as Exhibit A,
signed by the Participant, and received by the Company at its principal office,
accompanied by this agreement, and payment in full in the manner provided in the
Plan.  The Participant may purchase less
than the number of shares covered hereby, provided that no partial exercise of
this option may be for any fractional share.

 

(b)                                 Continuous
Relationship with the Company Required. 
Except as otherwise provided in this Section 3, this option may not
be exercised unless the Participant, at the time he or she exercises this
option, is, and has been at all times since the Grant Date, an employee or
officer of, or consultant or advisor to, the Company or any parent or subsidiary
of the Company as defined in Section 424(e) or (f) of the Code
(an “Eligible Participant”).

 

(c)                                  Termination
of Relationship with the Company.  If
the Participant ceases to be an Eligible Participant for any reason, then,
except as provided in paragraphs (d), (e), and (f) below, the right
to exercise this option shall terminate three months
after such cessation (but in no event after the Final Exercise Date), provided
that this option shall be exercisable only to the extent that the
Participant was entitled to exercise this option on the date of such cessation.

 

(d)                                 Exercise
Period Upon Death.  If the
Participant dies prior to the Final Exercise Date while he or she is an
Eligible Participant and the Company has not terminated such relationship for “cause”
as specified in paragraph (f) below, this option shall be exercisable,
within the period of one year following the date of death of the Participant,
by an authorized transferee, provided  that this option shall be
exercisable only to the extent that this option was exercisable by the
Participant on the date of his or her death, and further provided that this
option shall not be exercisable after the Final Exercise Date.

 

(e)                                  Exercise
Period Upon Disability.  If the
Participant becomes disabled (within the meaning of Section 22(e) of
the Code) prior to the Final Exercise Date while he or she is an Eligible
Participant and the Company has not terminated such relationship for “cause” as
specified in paragraph (f) below, this option shall be exercisable until
the Final Exercise Date, by the Participant, provided  that this
option shall be exercisable only to the extent that this option was exercisable
by the Participant on the date of his or her disability, and further provided
that this option shall not be exercisable after the Final Exercise Date.

 

(f)                                    Discharge
for Cause.  If the Participant, prior
to the Final Exercise Date, is discharged by the Company for “Cause” (as
defined below), the right to exercise this option shall terminate immediately
upon the effective date of such discharge. 
For purposes of this Section 3(f), “Cause” shall mean willful
misconduct by the Participant or willful failure by the Participant to perform
his or her responsibilities to the Company (including, without limitation, breach
by the Participant of any provision of any employment, consulting, advisory,
nondisclosure, non-competition or other similar agreement between the
Participant and the Company), as determined by the Company, which determination
shall be conclusive.  The Participant
shall be considered to have been discharged for “Cause” if the Company
determines, within 30 days after the Participant’s resignation, that discharge
for cause was warranted.

 

3

 

4.                                       Vesting upon Reorganization Event.

 

(a)                                  Option
Not Assumed.  If a Reorganization
Event (as defined in the Plan) occurs and the acquiring or succeeding
corporation (or an affiliate thereof) does not agree to assume, or substitute
for, this option, this option shall become exercisable in full beginning ten
business days before the date of consummation of the Reorganization Event and
shall terminate immediately prior to consummation of such Reorganization Event,
except to the extent exercised by the Participant before the consummation of
such Reorganization Event; provided further, in the event of a Reorganization
Event under the terms of which holders of Common Stock will receive upon
consummation thereof a cash payment for each share of Common Stock surrendered
pursuant to such Reorganization Event (the “Acquisition Price”) and the
acquiring or succeeding corporation (or an affiliate thereof) does not agree to
assume, or to substitute for, this option, then this option shall terminate
upon consummation of such Reorganization Event and the Participant shall
receive, in exchange therefor, a cash payment equal to the amount (if any) by
which (A) the Acquisition Price multiplied by the number of shares of
Common Stock subject to this option (whether or not then exercisable), exceeds (B) the
aggregate exercise price of this option.

 

(b)                                 Option
Assumed.  If a Reorganization Event
(as defined in the Plan) occurs and this option is assumed (as defined in the
Plan) by the acquiring or succeeding corporation (or an affiliate thereof),
this option (as so assumed) shall continue to become exercisable in accordance
with the original vesting schedule set forth in this option and this
option (as so assumed) shall become immediately exercisable in full if, on or
prior to the second anniversary of the date of the consummation of the
Reorganization Event, the Participant’s employment with the Company or the
acquiring or succeeding corporation is terminated for Good Reason (as defined
below) by the Participant or is terminated without Cause (as defined below) by
the Company or the acquiring or succeeding corporation.

 

(c)                                  Definitions.  For purposes of this Section 4, (i) ”Good
Reason” shall mean any significant diminution in the Participant’s title,
authority, or responsibilities from and after such Reorganization Event or any
reduction in the annual cash compensation payable to the Participant from and
after such Reorganization Event or the relocation of the place of business at
which the Participant is principally located to a location that is greater than
50 miles from its location immediately prior to such Reorganization Event and (ii) ”Cause”
shall mean any (i) willful failure by the Participant, which failure is
not cured within 30 days of written notice to the Participant from the Company,
to perform his or her material responsibilities to the Company or (ii) 
willful misconduct by the Participant which affects the business reputation of
the Company.

 

5.                                       Tax Matters.

 

(a)                                  Withholding.  No Shares will be issued pursuant to the
exercise of this option unless and until the Participant pays to the Company,
or makes provision satisfactory to the Company for payment of, any federal,
state or local withholding taxes required by law to be withheld in respect of
this option.

 

4

 

(b)                                 Disqualifying
Disposition.  If the Participant
disposes of Shares acquired upon exercise of this option within two years from
the Grant Date or one year after such Shares were acquired pursuant to exercise
of this option, the Participant shall notify the Company in writing of such
disposition.

 

6.                                       Nontransferability of Option.

 

This option may not be sold, assigned, transferred,
pledged or otherwise encumbered by the Participant, either voluntarily or by
operation of law, except by will or the laws of descent and distribution, and,
during the lifetime of the Participant, this option shall be exercisable only
by the Participant.

 

7.                                       Provisions of the Plan.

 

This option is subject to the provisions of the Plan,
a copy of which is furnished to the Participant with this option.

 

8.                                       Miscellaneous.

 

(a)                                  No
Rights to Employment.  The
Participant acknowledges and agrees that the vesting of this option pursuant to
Section 2 hereof is earned only by continuing service as an employee at
the will of the Company (not through the act of being hired or purchasing
shares hereunder).  The Participant
further acknowledges and agrees that the transactions contemplated hereunder
and the vesting schedule set forth herein do not constitute an express or
implied promise of continued engagement as an employee or consultant for the
vesting period, for any period, or at all.

 

(b)                                 Severability.  The invalidity or unenforceability of any
provision of this agreement shall not affect the validity or enforceability of
any other provision of this agreement, and each other provision of this
agreement shall be severable and enforceable to the extent permitted by law.

 

(c)                                  Waiver.  Any provision for the benefit of the Company
contained in this agreement may be waived, either generally or in any
particular instance, by the Board of Directors of the Company.

 

(d)                                 Binding
Effect.  This agreement shall be
binding upon and inure to the benefit of the Company and the Participant and
their respective heirs, executors, administrators, legal representatives,
successors and assigns, subject to the restrictions on transfer set forth in Section 6
of this agreement.

 

(e)                                  Notice.   All notices required or permitted hereunder
shall be in writing and deemed effectively given upon personal delivery or five
days after deposit in the United States Post Office, by registered or certified
mail, postage prepaid, addressed to the other party hereto at the address shown
beneath his or its respective signature to this agreement, or at such other
address or addresses as either party shall designate to the other in accordance
with this Section 8(e).

 

5

 

(f)                                    Pronouns.  Whenever the context may require, any
pronouns used in this agreement shall include the corresponding masculine,
feminine or neuter forms, and the singular form of nouns and pronouns shall
include the plural, and vice versa.

 

(g)                                 Entire
Agreement.  This agreement and the
Plan constitute the entire agreement between the parties, and supersedes all
prior agreements and understandings, relating to the subject matter of this
agreement.

 

(h)                                 Governing
Law.  This agreement shall be
construed, interpreted and enforced in accordance with the internal laws of the
State of Delaware without regard to any applicable conflicts of laws.

 

(i)                                     Participant’s
Acknowledgments.  The Participant
acknowledges that he or she: (i) has read this agreement; (ii) has
been represented in the preparation, negotiation, and execution of this
agreement by legal counsel of the Participant’s own choice or has voluntarily
declined to seek such counsel; (iii) understands the terms and
consequences of this agreement; (iv) is fully aware of the legal and
binding effect of this agreement; and (v) understands that the law firm of
Wilmer Cutler Pickering Hale and Dorr LLP, is acting as counsel to the Company
in connection with the transactions contemplated by the agreement, and is not
acting as counsel for the Participant.

 

IN WITNESS WHEREOF, the Company has caused this option
to be executed under its corporate seal by its duly authorized officer.  This option shall take effect as a sealed
instrument.

 

	
   

  	
  THE FIRST MARBLEHEAD CORPORATION

  
	
   

  	
   

  
	
  Dated:

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

6

 

PARTICIPANT’S ACCEPTANCE

 

The undersigned hereby accepts the foregoing option
and agrees to the terms and conditions thereof. 
The undersigned hereby acknowledges receipt of a copy of the Company’s
2003 Stock Incentive Plan.

 

	
   

  	
  PARTICIPANT:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  

 

7

 

Exhibit A

 

NOTICE OF STOCK OPTION EXERCISE

 

Date:                         

 

The First Marblehead Corporation

The Prudential Tower

800 Boylston Street, 34th Floor

Boston, MA  02199-8157

 

Attention: 
Treasurer

 

Dear Sir or Madam:

 

I am the holder of a
stock option granted to me under The First Marblehead Corporation (the “Company”)
2003 Stock Incentive Plan on                     
for the purchase of                     
shares of Common Stock of the Company at a purchase price of $                    
per share.

 

I hereby exercise my
option to purchase                   
shares of Common Stock (the “Shares”), for which I have enclosed                     
in the amount of                 .  Please register my stock certificate as
follows:

 

	
  Name(s):

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Tax
  I.D. #:

  	
   

  

 

	
  Very truly
  yours,

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  
			

 

8

 

 

THE FIRST MARBLEHEAD CORPORATION

 

Nonstatutory Stock Option
Agreement

Granted Under 2003 Stock Incentive Plan

 

1.                                       Grant of Option.

 

This agreement evidences the grant by The First
Marblehead Corporation, a Delaware corporation (the “Company”), on
           , 200   (the “Grant Date”) to                   ,
an [employee], [consultant], [director] of the Company (the “Participant”), of
an option to purchase, in whole or in part, on the terms provided herein and in
the Company’s 2003 Stock Incentive Plan (the “Plan”), a total of
                
  shares (the “Shares”) of common stock, $.01 par
value per share, of the Company (“Common Stock”) at
$           per Share.  Unless earlier terminated, this option shall
expire at 5:00 p.m., Eastern time, on
               (the “Final Exercise Date”).

 

It is intended that the option evidenced by this
agreement shall not be an incentive stock option as defined in Section 422
of the Internal Revenue Code of 1986, as amended, and any regulations
promulgated thereunder (the “Code”). 
Except as otherwise indicated by the context, the term “Participant”, as
used in this option, shall be deemed to include any person who acquires the
right to exercise this option validly under its terms.

 

2.                                       Vesting Schedule; Forfeiture.

 

This option will become exercisable (“vest”) as to
        % of the original number of
Shares on the           
anniversary of the Grant Date and as to an additional
          % of the original
number of Shares at the end of each successive               -month period following the
           anniversary of the
Grant Date until the
            
anniversary of the Grant Date.

 

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 Shares for which it is vested until the earlier of the Final
Exercise Date or the termination of this option under this Section 2, Section 3
hereof or the Plan.

 

The Participant agrees not to engage in a Competitive
Action (as defined below) from the date hereof through the first anniversary of
the date of termination of the Participant’s employment with the Company.  Notwithstanding any other provision of this
agreement, if on or prior to exercise of this option with respect to any of the
Shares, the Participant engages in a Competitive Action or enters into, or has
entered into, an agreement (written, oral or otherwise) to engage in a
Competitive Action, this option and all Shares issuable upon exercise of this
option shall be immediately forfeited, and the Participant shall have no
further rights with respect to such option or Shares.  Notwithstanding any other provision of this
agreement, in the event that the Participant engages in a Competitive Action or
enters into, or has entered into, an agreement (written, oral or otherwise) to
engage in a Competitive Action after exercise of this option with respect to
any of the Shares, but on or prior to the first anniversary of the Participant’s
termination of employment with the Company, this option, to the extent not
exercised, shall be immediately forfeited, and the Participant shall have no
further rights with respect to this option or any Shares subject to this option
and the Participant shall pay to the

 

 

Company, upon demand by
the Company, an amount equal to (i) the value, as of each date of exercise
of this option, of the number of Shares delivered to the Participant pursuant
to such exercise and (ii) the value of all dividends, if any, paid to the
Participant in respect of the Shares delivered to the Participant on such date
of exercise.  The Participant may satisfy
the payment obligation to the Company of the portion due under (i) above
by returning the Shares delivered to the Participant on all dates of exercise,
provided that any amounts due under (ii) above must be remitted to the
Company in addition to the return of the Shares.  The Participant acknowledges that the
restriction on engaging in a Competitive Action, in view of the nature of the
business in which the Company is engaged, is reasonable in scope (as to both
the temporal and geographical limits) and necessary in order to protect the
legitimate business interests of the Company, and that any violation thereof
would result in irreparable injuries to the Company.  The Participant acknowledges further that the
amounts required to be paid to the Company pursuant to this provision are
reasonable and are not liquidated damages nor shall they be characterized as
such and that the payment of such amounts shall not preclude the Company from
seeking any further remedies at law or in equity.

 

For purposes of this agreement, the Participant will
be deemed to engage in a “Competitive Action” if, either directly or
indirectly, and whether as an employee, consultant, independent contractor,
partner, joint venturer or otherwise, the Participant (i) engages in or
directs any business activities, in any geographical area where the Company or
any subsidiary or parent of the Company is engaged in business or outside of
any such geographical area, in either case, which are competitive with any
business activities conducted by the Company or any subsidiary or parent of the
Company in such geographical area, (ii) on behalf of any person or entity
engaged in business activities competitive with the business activities of the
Company or any subsidiary or parent of the Company, solicits or induces, or in
any manner attempts to solicit or induce, any person employed by, or as an
agent of, the Company or any subsidiary or parent of the Company to terminate
such person’s employment or agency relationship, as the case may be, with the
Company or any subsidiary or parent of the Company, (iii) diverts, or
attempts to divert, any person, concern or entity from doing business with the
Company or any subsidiary or parent of the Company or attempts to induce any
such person, concern or entity to cease being a customer of the Company or any
subsidiary or parent of the Company or (iv) makes use of, or attempts to
make use of, the property or proprietary information of the Company or any
subsidiary or parent of the Company, other than in the course of the
performance of services to the Company or any subsidiary or parent of the
Company or at the direction thereof.  The
determination as to whether the Participant has engaged in a Competitive Action
(as defined herein) shall be made by the Compensation Committee of the Board of
Directors of the Company (the “Committee”) in its sole and absolute
discretion.  The Committee’s exercise or
nonexercise of such discretion with respect to any particular event or
occurrence by or with respect to the Participant or any other recipient of
options, restricted stock units or other derivative securities of the Company
shall not in any way reduce or eliminate the authority of the Committee to (i) determine
that any event or occurrence by or with respect to the Participant constitutes
engaging in a Competitive Action or (ii) determine the related Competitive
Action date.

 

2

 

3.                                       Exercise of Option.

 

(a)                                  Form of
Exercise.  Each election to exercise
this option shall be in the form attached hereto as Exhibit A,
signed by the Participant, and received by the Company at its principal office,
accompanied by this agreement, and payment in full in the manner provided in
the Plan.  The Participant may purchase
less than the number of shares covered hereby, provided that no partial
exercise of this option may be for any fractional share.

 

(b)                                 Continuous
Relationship with the Company Required. 
Except as otherwise provided in this Section 3, this option may not
be exercised unless the Participant, at the time he or she exercises this
option, is, and has been at all times since the Grant Date, an employee officer
or director of, or consultant or advisor to, the Company or any other entity
the employees, officers, directors, consultants, or advisors of which are
eligible to receive option grants under the Plan (an “Eligible Participant”).

 

(c)                                  Termination
of Relationship with the Company.  If
the Participant ceases to be an Eligible Participant for any reason, then,
except as provided in paragraphs (d) and (e) below, the right to
exercise this option shall terminate three months
after such cessation (but in no event after the Final Exercise Date), provided
that this option shall be exercisable only to the extent that the
Participant was entitled to exercise this option on the date of such cessation.

 

(d)                                 Exercise
Period Upon Death or Disability.  If
the Participant dies or becomes disabled (within the meaning of Section 22(e)(3) of
the Code) prior to the Final Exercise Date while he or she is an Eligible
Participant and the Company has not terminated such relationship for “cause” as
specified in paragraph (e) below, this option shall be exercisable, within
the period of one year following the date of death or disability of the
Participant, by the Participant (or in the case of death by an authorized
transferee), provided  that this option shall be exercisable only
to the extent that this option was exercisable by the Participant on the date
of his or her death or disability, and further provided that this option shall
not be exercisable after the Final Exercise Date.

 

(e)                                  Discharge
for Cause.  If the Participant, prior
to the Final Exercise Date, is discharged by the Company for “cause” (as
defined below), the right to exercise this option shall terminate immediately
upon the effective date of such discharge. 
“Cause” shall mean willful misconduct by the Participant or willful
failure by the Participant to perform his or her responsibilities to the
Company (including, without limitation, breach by the Participant of any
provision of any employment, consulting, advisory, nondisclosure,
non-competition or other similar agreement between the Participant and the
Company), as determined by the Company, which determination shall be
conclusive.  The Participant shall be
considered to have been discharged for “Cause” if the Company determines,
within 30 days after the Participant’s resignation, that discharge for cause
was warranted.

 

4.                                       Vesting upon Reorganization Event.

 

(a)                                  Option
Not Assumed.  If a Reorganization
Event (as defined in the Plan) occurs and the acquiring or succeeding
corporation (or an affiliate thereof) does not agree to assume, or

 

3

 

substitute for, this option, this option shall become exercisable in
full beginning ten business days before the date of consummation of the
Reorganization Event and shall terminate immediately prior to consummation of
such Reorganization Event, except to the extent exercised by the Participant
before the consummation of such Reorganization Event; provided further, in the
event of a Reorganization Event under the terms of which holders of Common
Stock will receive upon consummation thereof a cash payment for each share of
Common Stock surrendered pursuant to such Reorganization Event (the “Acquisition
Price”) and the acquiring or succeeding corporation (or an affiliate thereof)
does not agree to assume, or to substitute for, this option, then this option
shall terminate upon consummation of such Reorganization Event and the
Participant shall receive, in exchange therefor, a cash payment equal to the
amount (if any) by which (A) the Acquisition Price multiplied by the number
of shares of Common Stock subject to this option (whether or not then
exercisable), exceeds (B) the aggregate exercise price of this option.

 

(b)                                 Option
Assumed.  If a Reorganization Event
(as defined in the Plan) occurs and this option is assumed (as defined in the
Plan) by the acquiring or succeeding corporation (or an affiliate thereof),
this option (as so assumed) shall continue to become exercisable in accordance
with the original vesting schedule set forth in this option and this
option (as so assumed) shall become immediately exercisable in full if, on or
prior to the second anniversary of the date of the consummation of the
Reorganization Event, the Participant’s employment with the Company or the
acquiring or succeeding corporation is terminated for Good Reason (as defined
below) by the Participant or is terminated without Cause (as defined below) by
the Company or the acquiring or succeeding corporation.

 

(c)                                  Definitions.  For purposes of this Section 4, (i) “Good
Reason” shall mean any significant diminution in the Participant’s title,
authority, or responsibilities from and after such Reorganization Event or any
reduction in the annual cash compensation payable to the Participant from and
after such Reorganization Event or the relocation of the place of business at
which the Participant is principally located to a location that is greater than
50 miles from its location immediately prior to such Reorganization Event and (ii) “Cause”
shall mean any (i) willful failure by the Participant, which failure is
not cured within 30 days of written notice to the Participant from the Company,
to perform his or her material responsibilities to the Company or (ii) 
willful misconduct by the Participant which affects the business reputation of
the Company.

 

5.                                       Withholding.

 

No Shares will be issued pursuant to the exercise of
this option unless and until the Participant pays to the Company, or makes
provision satisfactory to the Company for payment of, any federal, state or
local withholding taxes required by law to be withheld in respect of this
option.

 

6.                                       Nontransferability of Option.

 

This option may not be sold, assigned, transferred,
pledged or otherwise encumbered by the Participant, either voluntarily or by
operation of law, except by will or the laws of descent

 

4

 

and distribution, and,
during the lifetime of the Participant, this option shall be exercisable only
by the Participant.

 

7.                                       Provisions of the Plan.

 

This option is subject to the provisions of the Plan,
a copy of which is furnished to the Participant with this option.

 

8.                                       Miscellaneous.

 

(a)                                  No
Rights to Employment.  The
Participant acknowledges and agrees that the vesting of this option pursuant to
Section 2 hereof is earned only by continuing service as an employee at
the will of the Company (not through the act of being hired or purchasing
shares hereunder).  The Participant
further acknowledges and agrees that the transactions contemplated hereunder and
the vesting schedule set forth herein do not constitute an express or
implied promise of continued engagement as an employee or consultant for the
vesting period, for any period, or at all.

 

(b)                                 Severability.  The invalidity or unenforceability of any
provision of this agreement shall not affect the validity or enforceability of
any other provision of this agreement, and each other provision of this
agreement shall be severable and enforceable to the extent permitted by law.

 

(c)                                  Waiver.  Any provision for the benefit of the Company
contained in this agreement may be waived, either generally or in any
particular instance, by the Board of Directors of the Company.

 

(d)                                 Binding
Effect.  This agreement shall be
binding upon and inure to the benefit of the Company and the Participant and
their respective heirs, executors, administrators, legal representatives,
successors and assigns, subject to the restrictions on transfer set forth in Section 6
of this agreement.

 

(e)                                  Notice.   All notices required or permitted hereunder
shall be in writing and deemed effectively given upon personal delivery or five
days after deposit in the United States Post Office, by registered or certified
mail, postage prepaid, addressed to the other party hereto at the address shown
beneath his or its respective signature to this agreement, or at such other
address or addresses as either party shall designate to the other in accordance
with this Section 8(e).

 

(f)                                    Pronouns.  Whenever the context may require, any
pronouns used in this agreement shall include the corresponding masculine,
feminine or neuter forms, and the singular form of nouns and pronouns shall
include the plural, and vice versa.

 

(g)                                 Entire
Agreement.  This agreement and the
Plan constitute the entire agreement between the parties, and supersedes all
prior agreements and understandings, relating to the subject matter of this
agreement.

 

5

 

(h)                                 Governing
Law.  This agreement shall be
construed, interpreted and enforced in accordance with the internal laws of the
State of Delaware without regard to any applicable conflicts of laws.

 

(i)                                     Participant’s
Acknowledgments.  The Participant
acknowledges that he or she: (i) has read this agreement; (ii) has
been represented in the preparation, negotiation, and execution of this
agreement by legal counsel of the Participant’s own choice or has voluntarily
declined to seek such counsel; (iii) understands the terms and
consequences of this agreement; (iv) is fully aware of the legal and
binding effect of this agreement; and (v) understands that the law firm of
Wilmer Cutler Pickering Hale and Dorr LLP, is acting as counsel to the Company
in connection with the transactions contemplated by the agreement, and is not
acting as counsel for the Participant.

 

IN WITNESS WHEREOF, the Company has caused this option
to be executed under its corporate seal by its duly authorized officer.  This option shall take effect as a sealed
instrument.

 

	
   

  	
  THE FIRST MARBLEHEAD CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

6

 

PARTICIPANT’S ACCEPTANCE

 

The undersigned hereby accepts the foregoing option
and agrees to the terms and conditions thereof. 
The undersigned hereby acknowledges receipt of a copy of the Company’s
2003 Stock Incentive Plan.

 

	
   

  	
  PARTICIPANT:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  

 

7

 

Exhibit A

 

NOTICE OF STOCK OPTION EXERCISE

 

Date:
                          

 

The First Marblehead Corporation

The Prudential Tower

800 Boylston Street, 34th Floor

Boston, MA 
02199-8157

Attention: 
Treasurer

 

Dear Sir or Madam:

 

I am the holder of a stock option granted to me under
The First Marblehead Corporation (the “Company”) 2003 Stock Incentive Plan on
                    
for the purchase of                     
shares of Common Stock of the Company at a purchase price of
$                    
per share.

 

I hereby exercise my option to purchase
                  
shares of Common Stock (the “Shares”), for which I have enclosed
                    
in the amount of
                .  Please register my stock certificate as
follows:

 

	
  Name(s):

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Tax
  I.D. #:

  	
   

  

 

	
  Very truly
  yours,

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  
			

 

8Exhibit 10.34.1

 

THE FIRST MARBLEHEAD CORPORATION

 

Restricted
Stock Unit Agreement

Granted Under 2003 Stock Incentive Plan

 

1.                                       Grant of Award.

 

This Agreement evidences the grant by The First
Marblehead Corporation, a Delaware corporation (the “Company”) on                       ,
200    (the “Grant Date”) to                           (the “Participant”) of                 
restricted stock units of the Company (individually, an “RSU” and collectively,
the “RSUs”).  Each RSU represents the
right to receive one share of the common stock, $0.01 par value per share, of
the Company (“Common Stock”) as provided in this Agreement.  The shares of Common Stock that are issuable
upon vesting of the RSUs are referred to in this Agreement as “Shares.”

 

2.                                       Vesting; Forfeiture.

 

(a)                                  This
award shall vest as to                   
of the original number of RSUs on the           
anniversary of the Grant Date and as to an additional                   
of the original number of RSUs on each succeeding anniversary of the Grant Date
until the             
anniversary of the Grant Date.

 

(b)                                 In
the event that the Participant’s employment with the Company is terminated by
reason of death or disability, this award shall be fully vested.  For this purpose, “disability” shall mean the
inability of the Participant, due to a medical reason, to carry out his duties
as an employee of the Company for a period of six consecutive months.  In addition, if the Participant’s employment
with the Company is terminated by the Company for a reason other than “Cause”
(as defined below), then the number of RSUs which shall be vested shall be
determined as though the Participant’s employment had terminated on the day
that follows the anniversary of the Grant Date that next follows the date of
actual termination.  For purposes of this
Section 2, “Cause” shall mean unsatisfactory job performance (as
determined by the Company), willful misconduct, fraud, gross negligence,
disobedience or dishonesty.

 

(c)                                  For
purposes of this Agreement, employment with the Company shall include
employment with a parent or subsidiary of the Company.

 

(d)                                 The
Participant agrees not to engage in a Competitive Action (as defined below)
from the date hereof through the first anniversary of the date of termination
of the

 

 

Participant’s employment
with the Company.  If on or prior to a
Settlement Date (as defined below), the Participant engages in a Competitive
Action or enters into, or has entered into, an agreement (written, oral or
otherwise) to engage in a Competitive Action, all of the RSUs and all Shares
issuable upon vesting of all RSU’s subject to this Agreement shall be
immediately forfeited, and the Participant shall have no further rights with
respect to such RSUs or Shares.  In the
event that the Participant engages in a Competitive Action or enters into, or
has entered into, an agreement (written, oral or otherwise) to engage in a
Competitive Action after the last Settlement Date but on or prior to the first
anniversary of the Participant’s termination of employment with the Company,
the Participant shall pay to the Company, upon demand by the Company, an amount
equal to (i) the value, as of each Settlement Date, of the number of
Shares delivered to the Participant represented by RSUs on such Settlement Date
and (ii) the value of all dividends, if any, paid to the Participant in
respect of the Shares delivered to the Participant on such Settlement
Date.  The Participant may satisfy the
payment obligation to the Company of the portion due under (i) above by
returning the Shares delivered to the Participant on all Settlement Dates,
provided that any amounts due under (ii) above must be remitted to the
Company in addition to the return of the Shares.  The Participant acknowledges that the
restriction on engaging in a Competitive Action, in view of the nature of the
business in which the Company is engaged, is reasonable in scope (as to both
the temporal and geographical limits) and necessary in order to protect the
legitimate business interests of the Company, and that any violation thereof
would result in irreparable injuries to the Company.  The Participant acknowledges further that the
amounts required to be paid to the Company pursuant to this provision are
reasonable and are not liquidated damages nor shall they be characterized as
such and that the payment of such amounts shall not preclude the Company from
seeking any further remedies at law or in equity.

 

(e)                                  For
purposes of this Agreement, the Participant will be deemed to engage in a “Competitive
Action” if, either directly or indirectly, and whether as an employee,
consultant, independent contractor, partner, joint venturer or otherwise, the
Participant (i) engages in or directs any business activities, in any
geographical area where the Company or any subsidiary or parent of the Company
is engaged in business or outside of any such geographical area, in either
case, which are competitive with any business activities conducted by the
Company or any subsidiary or parent of the Company in such geographical area, (ii) on
behalf of any person or entity engaged in business activities competitive with
the business activities of the Company or any subsidiary or parent of the
Company, solicits or induces, or in any manner attempts to solicit or induce,
any person employed by, or as an agent of, the Company or any subsidiary or
parent of the Company to terminate such person’s employment or agency
relationship, as the case may be, with the Company or any subsidiary or parent
of the Company, (iii) diverts, or attempts to divert, any person, concern
or entity from doing business with the Company or any subsidiary or parent of
the Company or attempts to induce any such person, concern or entity to cease
being a customer of the Company or any subsidiary or parent of the Company or (iv) makes
use of, or attempts to make use of, the property or proprietary information of
the Company or any subsidiary or parent of the Company, other than in the
course of the performance of services to the Company or any subsidiary or
parent of the Company or at the direction thereof.  The determination as to whether the
Participant has engaged in a Competitive Action (as defined herein) shall be
made by the Compensation Committee of the Board of Directors of the Company
(the “Committee”) in its sole and absolute discretion.  The Committee’s exercise or nonexercise of
such discretion with respect to any particular event or occurrence by or with
respect to the Participant or any other recipient of

 

2

 

stock options, RSUs or other derivative securities of
the Company shall not in any way reduce or eliminate the authority of the
Committee to (i) determine that any event or occurrence by or with respect
to the Participant constitutes engaging in a Competitive Action or (ii) determine
the related Competitive Action date.

 

3.                                       Distribution of Shares.

 

(a)                                  The
Company will distribute to the Participant (or to the Participant’s estate in
the event that his or her death occurs after a vesting date but before
distribution of the corresponding Shares), as soon as administratively
practicable after each vesting date (each such date of distribution is
hereinafter referred to as a “Settlement Date”), the Shares of Common Stock
represented by RSUs that vested on such vesting date.

 

(b)                                 The
Company shall not be obligated to issue to the Participant the Shares upon the
vesting of any RSU (or otherwise) unless the issuance and delivery of such
Shares shall comply with all relevant provisions of law and other legal
requirements including, without limitation, any applicable federal or state
securities laws and the requirements of any stock exchange upon which shares of
Common Stock may then be listed.

 

4.                                       Restrictions on Transfer.

 

The Participant shall not sell, assign, transfer, pledge,
hypothecate or otherwise dispose of, by operation of law or otherwise
(collectively “transfer”) any RSUs, or any interest therein, except by will or
the laws of descent and distribution.

 

5.                                       Dividend and Other Shareholder Rights.

 

Except as set forth in the Plan, neither the
Participant nor any person claiming under or through the Participant shall be,
or have any rights or privileges of, a stockholder of the Company in respect of
the Shares issuable pursuant to the RSUs granted hereunder until the Shares
have been delivered to the Participant.

 

6.                                       Provisions of the Plan; Reorganization Event.

 

(a)                                  This
Agreement is subject to the provisions of the Plan, a copy of which is
furnished to the Participant with this Agreement.

 

(b)                                 Upon
the occurrence of a Reorganization Event (as defined in the Plan), each RSU
(whether vested or unvested) shall become the right to receive the cash,
securities or other property that a Share was converted into or exchanged for
pursuant to such Reorganization Event. 
If, in connection with a Reorganization Event, a portion of the cash,
securities and/or other property received upon the conversion or exchange of
the Shares is to be placed into escrow to secure indemnification or similar
obligations, the mix between the vested and unvested portion of such cash,
securities and/or other property that is placed into escrow shall be the same
as the mix between the vested and unvested portion of such cash, securities
and/or other property that is not subject to escrow.  Notwithstanding the foregoing provisions,
this award shall be fully vested if, on or prior to the second anniversary of
the date of the consummation of the Reorganization Event, the Participant’s
employment with the Company or the Company’s

 

3

 

successor is terminated for Good Reason (as defined
below) by the Participant or is terminated without Cause (as defined below) by
the Company or the Company’s successor.

 

(c)                                  For
purposes of this Section 6, (i) “Good Reason” shall mean any
significant diminution in the Participant’s title, authority, or
responsibilities from and after such Reorganization Event or any reduction in
the annual cash compensation payable to the Participant from and after such
Reorganization Event or the relocation of the place of business at which the
Participant is principally located to a location that is greater than 50 miles
from its location immediately prior to such Reorganization Event and (ii) “Cause”
shall mean any (i) willful failure by the Participant, which failure is
not cured within 30 days of written notice to the Participant from the Company,
to perform his or her material responsibilities to the Company or (ii) 
willful misconduct by the Participant which affects the business reputation of
the Company.

 

7.                                       Withholding Taxes; Section 83(b) Election.

 

(a)                                  No
Shares will be delivered pursuant to the vesting of an RSU unless and until the
Participant pays to the Company, or makes provision satisfactory to the Company
for payment of, any federal, state or local withholding taxes required by law
to be withheld in respect of this option.

 

(b)                                 The
Participant acknowledges that no election under Section 83(b) of the
Internal Revenue Code of 1986 may be filed with respect to this award.

 

8.                                       Miscellaneous.

 

(a)                                  No
Rights to Employment.  The
Participant acknowledges and agrees that the vesting of the RSUs pursuant to Section 2
hereof is earned only by continuing service as an employee at the will of the
Company (not through the act of being hired or purchasing shares
hereunder).  The Participant further
acknowledges and agrees that the transactions contemplated hereunder and the
vesting schedule set forth herein do not constitute an express or implied
promise of continued engagement as an employee or consultant for the vesting
period, for any period, or at all.

 

(b)                                 Severability.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, and each other provision of this
Agreement shall be severable and enforceable to the extent permitted by law.

 

4

 

(c)                                  Waiver.  Any provision for the benefit of the Company
contained in this Agreement may be waived, either generally or in any
particular instance, by the Board of Directors of the Company.

 

(d)                                 Binding
Effect.  This Agreement shall be
binding upon and inure to the benefit of the Company and the Participant and
their respective heirs, executors, administrators, legal representatives,
successors and assigns, subject to the restrictions on transfer set forth in Section 4
of this Agreement.

 

(e)                                  Notice.   All notices required or permitted hereunder
shall be in writing and deemed effectively given upon personal delivery or five
days after deposit in the United States Post Office, by registered or certified
mail, postage prepaid, addressed to the other party hereto at the address shown
beneath his or its respective signature to this Agreement, or at such other
address or addresses as either party shall designate to the other in accordance
with this Section 8(e).

 

(f)                                    Pronouns.  Whenever the context may require, any
pronouns used in this Agreement shall include the corresponding masculine,
feminine or neuter forms, and the singular form of nouns and pronouns shall
include the plural, and vice versa.

 

(g)                                 Entire
Agreement.  This Agreement and the
Plan constitute the entire agreement between the parties, and supersedes
all prior agreements and understandings, relating to the subject matter of this
Agreement.

 

(h)                                 Amendment.  This Agreement may be amended or modified
only by a written instrument executed by both the Company and the Participant.

 

(i)                                     Governing
Law.  This Agreement shall be
construed, interpreted and enforced in accordance with the internal laws of the
State of Delaware without regard to any applicable conflicts of laws.

 

(j)                                     Participant’s
Acknowledgments.  The Participant
acknowledges that he or she: (i) has read this Agreement; (ii) has
been represented in the preparation, negotiation, and execution of this
Agreement by legal counsel of the Participant’s own choice or has voluntarily
declined to seek such counsel; (iii) understands the terms and
consequences of this Agreement; (iv) is fully aware of the legal and binding
effect of this Agreement; and (v) understands that the law firm of Wilmer
Cutler Pickering Hale and Dorr LLP, is acting as counsel to the Company in
connection with the transactions contemplated by the Agreement, and is not
acting as counsel for the Participant.

 

(k)                                  Unfunded
Rights.  The right of the Participant
to receive Common Stock pursuant to this Agreement is an unfunded and unsecured
obligation of the Company.  The
Participant shall have no rights under this Agreement other than those of an
unsecured general creditor of the Company.

 

5

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the day and year first above written.

 

	
   

  	
  THE FIRST MARBLEHEAD CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Name
  of Participant]

  
	
   

  	
   

  
	
   

  	
  Address:

  

 

6

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