** **

**Exhibit 10.21**

** **

**JAMES RIVER GROUP HOLDINGS,LTD.**

Clarendon House

2 Church Street

Hamilton HM 11 Bermuda

 

Dated as of November 18, 2014

 

Mr. Gregg Davis

 

Dear Gregg:

 

The purpose of this letter (this “Agreement”)is to confirm that we have agreed to amend and restate as of the Effective Date (as hereinafter defined) our prior agreement withrespect to the terms of your continued employment by James River Group Holdings, Ltd. (f/k/a Franklin Holdings (Bermuda), Ltd.),a Bermuda company (the “Parent Company”), and its subsidiary James River Group, Inc., a Delaware corporation(the “Company”) which prior agreement was effective October 1, 2012 (the “Prior Agreement”).

 

The Parent Company has filed a registration statement with the Securitiesand Exchange Commission to conduct an initial public offering (the “Offering”) of common shares of the ParentCompany, and the Parent Company and you desire to amend and restate the Prior Agreement on such date that the Offering is consummatedand immediately prior to the consummation of the Offering (the “Effective Date”).

 

In consideration of the mutual promises contained in this Agreement,the parties to this Agreement hereby agree as follows:

 

1.          EMPLOYMENTAND TERM.  Effective as of the Effective Date, the Parent Company and the Company, respectively, agree to continueto employ you (the “Executive”) as Chief Financial Officer of the Parent Company and Chief Financial Officerof the Company, and Executive hereby accepts such employment on the terms hereinafter set forth.  The term of this Agreementshall be one year commencing as of the Effective Date and ending on the date immediately preceding the first anniversary of theEffective Date, subject to the termination provisions of Section 6.  The term of this Agreement shall thereafter be automaticallyrenewed for additional one year periods unless written notice to the contrary shall be given by either party to the other not lessthan 60 days prior to the end of the initial or any renewal term that the term shall not thereafter be renewed (“Non-RenewalNotice”), subject to the termination provisions of Section 6.  The initial term plus any renewals thereof shallhereafter be referred to as the “Term.”  In furtherance of the foregoing, in the event that the Offeringis not consummated on or before June 30, 2015 for any reason whatsoever, this Agreement shall not be effective and the Prior Agreementshall continue in effect pursuant to the terms thereof.

 

 

2.          COMPENSATION.

 

(a)          Salary.  Commencingas of the Effective Date, Executive shall be paid a base salary at a rate of not less than $375,000 per year, payable by the Companyin periodic installments in accordance with the Company’s normal payroll practices.  

 

(b)          Bonusand Long-Term Incentive Plan.  For each fiscal year during the Term in which Executive is employed by the Companyas of the last day of such fiscal year, Executive shall be eligible to receive such discretionary bonuses as the Board of Directorsof the Parent Company (the “ParentBoard”) (other than Executive, if Executive is a member of the ParentBoard), in its discretion, may determine based on Executive’s performance during such fiscal year, which shall be paid onor before March 15 of the subsequent fiscal year.  In addition, Executive shall be eligible to participate in any long-termincentive plan of the Company Group in effect from time to time.

 

(c)          Vacation,Benefits.  Executive shall also be entitled, during the Term to participate in all employee benefit plans and other fringe benefitsor plans of the Company generally available to executive employees of the Company Group (as defined in Section 4(a)) or generallyavailable to the Company’s United States-based executive employees, at the Company’s expense, including:

 

(i)          atotal of six weeks of paid vacation per annum (not subject to carry over to subsequent years), which will be pro-rated for thefirst and last year of the Term;

 

(ii)         taxequalization payments pursuant to the Company’s tax equalization policies (“Tax Equalization Policies”),provided that such tax equalization payments shall be made no later than the end of the second calendar year after the yearin which the Executive’s income tax return is required to be filed (including any extensions) for the year to which the compensationsubject to the tax equalization payment relates, or, if later, the second calendar year beginning after the latest year in whichthe Executive’s foreign tax return or payment is required to be filed or made of the year to which the compensation subjectto the tax equalization payment relates, and further provided that if the right to such tax equalization proceeds arises as a resultof audit, litigation, or similar proceeding, such tax equalization payments are scheduled and made in accordance with the tax gross-uppayment provisions of Treas. Reg. §1.409A-3(j)(1)(v); and

 

(iii)        businessexpense reimbursement for all reasonable business expenses (including without limitation travel to Bermuda for business purposes)upon the presentation of reasonably itemized statements of such expenses in accordance with the Company’s policies and procedures.  Theamount of expenses eligible for reimbursement pursuant to this Agreement during any tax year of Executive shall not affect theexpenses eligible for reimbursement in any other tax year.  The right to reimbursement provided in this Agreement isnot subject to liquidation or exchange for another benefit.  In no event shall the reimbursement of an eligible expenseunder this Agreement occur later than the earlier of (i) six months from the date of incurrence and (ii) the end of the calendaryear following the calendar year in which such expense was incurred.

 

 

(d)          CharteredAircraft.  The Company hereby agrees that from time to time Executive may travel on chartered aircraft in connectionwith the performance of his duties hereunder.  The Company further agrees that Executive may continue to charter planesfor business travel as is reasonably necessary to efficiently carry out his duties for the Parent Company in Bermuda.

 

(e)          Claw-Back.  Executiveacknowledges that to the extent required by applicable law or written company policy adopted by the Board to implement the requirementsof such law (including without limitation Section 304 of the Sarbanes Oxley Act and Section 954 of the Dodd Frank Act), any bonusand other incentive compensation (if any) shall be subject to any clawback, forfeiture, recoupment or similar requirement as theParent Board may determine in its sole discretion is necessary or desirable to implement such law or policy.

 

3.          DUTIES.  Executiveshall perform all duties normally associated with the position of Chief Financial Officer of the Parent Company and such otherreasonable duties as may be assigned to him by the Parent Board, and all duties normally associated with the position of ChiefFinancial Officer of the Company and such other reasonable duties as may be assigned to him by the Board.  In his capacityas Chief Financial Officer of the Parent Company, Executive shall report directly to the Chief Executive Officer and to the ParentBoard.  In his capacity as Chief Financial Officer of the Company, Executive shall report directly to the Chairman ofthe Board and the Board, and/or at such time, if any, that the Board appoints a Chief Executive Officer of the Company, to suchChief Executive Officer.  Executive will devote his entire working time, attention, and energies to carrying out andfulfilling his duties and responsibilities under this Agreement.  Executive agrees to abide by all policies applicableto employees of the Company Group adopted by the Parent Board.  Executive's duties as Chief Financial Officer of theParent Company will be performed primarily at the Parent Company's offices in Hamilton, Bermuda, and the Executive's duties asChief Financial Officer of the Company will be performed primarily at the Company's offices in Raleigh, North Carolina; *provided,however,* that the foregoing duties may be performed in locations other than the aforementioned locations if the business ofthe Company and the Parent Company so require, but at all times the Executive shall comply with the operational guidelines of theCompany and the Parent Company with respect to the scope of duties and activities to be performed in the United States and Bermuda,as in effect from time to time.  Executive represents that he is able and willing to engage in frequent travel to Bermudaand other international travel as is necessary to the business interests of the Company Group.

 

4.          CONFIDENTIALINFORMATION AND PRIVILEGED INFORMATION.

 

(a)          Executivewill not at any time during the Term or thereafter:

 

(i)          reveal,divulge, or make known to any person, firm, or corporation or use for his personal benefit or the benefit of others (except theParent Company and any of its direct or indirect subsidiaries (hereinafter referred to as “Affiliates,” andthe Company, together with such Affiliates, the “Company Group”)), directly or indirectly, any confidentialor proprietary information received or developed by him during the course of his employment. For the purposes of this Section 4(a)(i)confidential and

 

 

proprietary information (“ConfidentialInformation”) shall be defined to mean (1) all historical and pro forma projections of loss ratios incurred by the CompanyGroup; (2) all historical and pro forma actuarial data relating to the Company Group; (3) historical and pro forma financial results,revenue statements, and projections for the Company Group; (4) all information relating to the Company Group’s systems andsoftware (other than the portion thereof provided by the vendor to all purchasers of such systems and software); (5) all informationrelating to the Company Group’s unique underwriting approach; (6) all information relating to plans for, or internal or externaldiscussions regarding, acquisitions of or mergers with any business or line of business; (7) non-public business plans; (8) allother information relating to the financial, business, or other affairs of the Company Group including their customers; and (9)any information about any shareholder of the Parent Company, or any of the officers or employees of any Company Group entities,that has been furnished or made available to Executive as a result of his positions with the Parent Company and the Company.  Section4(a)(i) shall not apply to Executive following the termination of his employment with the Parent Company and the Company with respectto any Confidential Information known or made generally available to the general public or within the industry by persons otherthan Executive or a person acting with or at the request of Executive; or

 

(ii)         reveal,divulge, or make known to any person, firm, or corporation, or use for his personal benefit or the benefit of others (except theCompany Group), directly or indirectly, the name or names of any Customers (as defined in Section 5 below) of the Company Group,nor will he reveal, divulge, or make known to any person, firm, or corporation or use for his personal benefit or the benefit ofothers (except the Company Group), directly or indirectly, any trade secrets or any knowledge or information concerning any businessmethods or operational procedures engaged in by the Company Group (collectively, “Privileged Information”);provided, however, the restrictions set forth in this Section 4(a)(ii) shall not apply to Executive following thetermination of his employment with the Parent Company and the Company with respect to any Privileged Information known or madegenerally available to the general public or within the industry by persons other than Executive or a person acting with or atthe request of Executive.

 

5.          NON-COMPETITION.

 

(a)          Executiveacknowledges and agrees that as the Parent Company’s and the Company’s Chief Financial Officer (i) he will be responsiblefor and directly involved in developing customer goodwill and relationships for the benefit of the Company Group, including personalcontact with customers and supervising others who contact customers and develop customer goodwill and relationships; (ii) he willbe provided and have access to the Company Group’s Confidential Information and Privileged Information, and will be compensatedfor the development, and supervising the development, of the same and (iii) he will have unique insight into and knowledge of theskills, talents and capabilities of the Company Group’s key employees.  Executive also acknowledges and agreesthat at the inception of his employment with the Company it was agreed that he would be bound by noncompetition restrictions thatare similar to the restrictions in this Agreement.

 

 

(b)          Executiveagrees that during his employment by the Parent Company and/or the Company he will not compete against the Company Group in anymanner, including without limitation by engaging in, or by assisting any other person or entity to engage in, or by having an ownershipinterest in, any Competitive Business (as defined below) in the Territory (as defined below), or by engaging in any conduct describedin clauses (c)(i), (ii) or (iii) below.  

 

(c)          Executivefurther agrees that after his employment by both the Parent Company and the Company ends for any reason, he will not during theRestricted Period (as defined below):

 

(i)          competeagainst the Company Group by engaging in, or by assisting any other person or entity to engage in, or by having an ownership interestin, any Competitive Business in the Territory (as defined below);

 

(ii)         competeagainst the Company Group by soliciting any Customer (as defined below) in order to provide any goods or services to such Customerin competition against the Company Group, or by soliciting any Agent (as defined below) in order to obtain referrals from suchAgent in competition against the Company Group;

 

(iii)        induceor persuade any Customer or Agent not to do business with, or to switch business from, or reduce business with, the Company Group;

 

(iv)        solicit,or assist others in soliciting, Key Employees (as defined below) to either leave the Company Group or to engage in a CompetitiveBusiness.

 

(d)          Forpurposes of this Agreement, the following capitalized terms shall have the meanings set forth below:

 

(i)          “Agent”shall mean any insurance agent, insurance broker, wholesale agent, general agent, or other person (A) that acted on behalf of anycustomer of the Company Group to obtain insurance from any Company Group entity or who referred any insurance business to any CompanyGroup entity during the Final Year (as defined below) and (B) with respect to which either Executive had either (I) ConfidentialInformation or Privileged Information or (II) account responsibility either directly or through managing employees with such accountresponsibility.

 

(ii)         “CompetitiveBusiness” shall mean the business of acquiring, holding, and/or operating excess and surplus line insurance companies,and any other material business that the Company Group is engaged in as of the date of this Agreement and as the business of theCompany Group evolves during Executive’s employment with the Company.  For informational purposes only and notfor the purpose of construing or restricting the scope of the term “Competitive Business,” the parties agree that thefollowing activities in which the Company Group is currently engaged are within the scope of Competitive Business:providing workers' compensation insurance in North Carolina, South Carolina and Virginia, providing excess and surplus linesinsurance in the United States and  writing working layer casualty reinsurance through a reinsurance company from Bermuda.

 

 

(iii)        “Customer”shall mean any customer of the Company Group that (A) purchased products or services from the Company during the twelve month periodimmediately preceding Executive’s last day of employment with the Parent Company and the Company (the “Final Year”),and (B) about which Executive either had Confidential Information or Privileged Information or personal or management responsibilityfor customer contact or service.

 

(iv)        “KeyEmployees” shall mean any executive, managerial, sales, finance, actuarial, marketing, or supervisory level employeesof the Company Group under Executive’s direct or indirect management authority during the Final Year.

 

(v)         “RestrictedPeriod” shall mean 18 months.

 

(vi)        “Territory”shall mean Bermuda and each and every state or other United States jurisdiction where the Company Group is licensed or admittedat the end of the Term and/or is then in the process of seeking to be licensed.

 

(e)          Therestrictions contained in this Section 5 shall not prevent the purchase of ownership by Executive of not more than 3% of the securitiesof any class of any corporation, whether or not such corporation is engaged in any Competitive Business, which are publicly tradedon any securities exchange or any “over the counter” market.

 

6.          TERMINATION.  Executive’semployment hereunder shall terminate under the following circumstances:

 

(a)          Terminationfor Cause.  The Parent Company and/or the Company may terminate the employment of Executive for Cause at any timeby providing written notice to Executive specifying the cause of the termination. For the purposes of this Agreement, “Cause”means that:  (i) Executive willfully violated Sections 4 or 5 of this Agreement; (ii) Executive grossly neglected hisduties hereunder; (iii) Executive was convicted of a felony, or a crime involving moral turpitude (meaning a crime that includesthe commission of an act of depravity, dishonesty, or bad morals); (iv) Executive has committed an act of dishonesty, fraud, orembezzlement against any Company Group entity; (v) Executive willfully and/or knowingly breached any provision of this Agreementother than Section 4 or Section 5 in any material respect, or willfully and/or knowingly violated the Parent Company’s orthe Company’s written policies; or (vi) Executive willfully failed or refused to follow the lawful instructions of the ChiefExecutive Officer of the Parent Company, the Parent Board, the Chairman of the Board, or the Board that are consistent with thisAgreement (“Insubordination”).  In the event that the Parent Company and/or the Company provides writtennotice of termination for Cause pursuant to Section 6(a)(ii) or (vi), Executive shall be entitled to cure any alleged neglect ofhis duties or Insubordination, to the extent curable, within thirty (30) days of receiving written notice from the Parent Companyor the Company specifying the factual basis for its belief that Executive grossly neglected his duties hereunder or engaged inInsubordination.  If Executive is terminated for Cause, Executive’s compensation shall terminate on the date ofsuch termination, and any Parent Company stock options,

 

 

whether vested or unvested at that time,shall be immediately forfeited and canceled effective as of the date of such termination.

 

(b)          CompanyTermination Without Cause; Companies Non-Renewal Termination.  The Parent Company and/or the Company may terminatethe employment of Executive at any time without Cause, with or without prior notice.  If (i) the Parent Company and theCompany deliver a timely Non-Renewal Notice and Executive has not timely delivered a timely Non-Renewal Notice, (ii) Executivecontinues in employment with the Parent Company or the Company through the last day of the Term, and (iii) the parties have notexecuted a written agreement applicable to Executive’s employment after the expiration of the Term, then Executive’semployment with both the Parent Company and the Company shall terminate on the last day of the Term (a “Companies Non-RenewalTermination”). If either the Parent Company or the Company terminates Executive’s employment without Cause or deliversa Non-Renewal Notice, but the other company does not terminate Executive’s employment or delivers a Non-Renewal Notice ,then this Agreement shall remain in full force and effect as applied to such other company and all obligations of the company thatterminated Executive’s employment shall become obligations of the other company.  

 

(c)          Terminationby Executive for Good Reason.  Executive may, at his option, terminate this Agreement for Good Reason in accordancewith the terms of this Section 6(c).  “Good Reason” shall mean the occurrence of any one or more ofthe following events without the prior consent of Executive:

 

(i)          Amaterial diminution in Executive’s authority, duties or responsibilities, or requiring Executive to report directly to aperson or persons other than as set forth in Section 3 of this Agreement, provided, however, a termination without Cause by eitherthe Company or the Parent Company, but not both, pursuant to Section 6(b) shall not constitute Good Reason;

 

(ii)         Amaterial diminution in Executive’s base salary;

 

(iii)        TheCompany’s requiring Executive to be based at any office or location more than 35 miles from Raleigh, North Carolina; or

 

(iv)        Anyaction or inaction by the Parent Company and/or the Company which constitutes a material breach of the terms of this Agreement;

 

and, in each case, the failure by theParent Company or the Company, as applicable, to cure such condition within the 30-day period after receipt of written notice fromExecutive specifying in detail the factual basis for his belief that he has Good Reason to resign (“Good Reason Notice”).  Executivemust deliver a Good Reason Notice within 30 calendar days after the initial existence of a Good Reason condition, and, if the ParentCompany or the Company, as applicable, fails to timely cure such Good Reason condition, Executive must terminate his employmentwith both the Parent Company and the Company within one year after the initial existence of such Good Reason condition,

 

 

and any failure by Executive to timelycomply with either of these requirements shall constitute a waiver of Executive’s right to resign for Good Reason for suchcondition.    

 

(d)          Terminationdue to Death or Disability.  Executive’s employment hereunder shall terminate upon his death.  TheParent Company and/or the Company may terminate Executive’s employment if he is prevented from performing his responsibilitiesunder this Agreement because of “Disability.”  A “Disability” means that Executive isunable to engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment that canbe expected to result in death or can be expected to last for a continuous period of not less than 12 months, or is, by reasonof any medically determinable physical or mental impairment that can be expected to result in death or can be expected to lastfor a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three monthsunder an accident or disability insurance benefit plan covering Company employees (“Disability Plan”).  IfExecutive is unable to perform his responsibilities, by reason of any accident, illness, or mental, or physical impairment, fora period that is reasonably anticipated by the Parent Company and/or the Company to be longer than the waiting period in the DisabilityPlan, then, at the Parent Company’s or the Company’s request, Executive shall promptly apply for such income replacementbenefits.

 

(e)          Expirationof Term.  If (i) Executive delivers a timely Non-Renewal Notice to the Parent Company and/or the Company pursuantto Section 1 (whether or not the Parent Company and/or the Company have timely delivered a timely Non-Renewal Notice), (ii) Executivecontinues in employment with the Parent Company or the Company through the last day of the Term, and (iii) the parties have notexecuted a written agreement applicable to Executive’s employment after the expiration of the Term, then Executive’semployment with both the Parent Company and the Company shall terminate on the last day of the Term.

 

7.          COMPENSATIONAND BENEFITS UPON TERMINATION.

 

(a)          If,during the Term, the Parent Company and the Company terminate Executive’s employment without Cause, there is a Companies’Non-Renewal Termination, or Executive terminates his employment for Good Reason, then:

 

(i)          assoon as practicable following such termination but no later than ten days after the Termination Date (as defined below), the Companyshall pay to Executive his accrued but yet unpaid base salary earned through the Termination Date and any accrued, but unused vacationpay through the Termination Date (the “Accrued Obligations”);

 

(ii)         within45 days following the Termination Date, the Company shall reimburse Executive for reasonable expenses incurred, but not paid priorto the Termination Date;

 

(iii)        anyaccrued but unpaid Tax Equalization Policy obligations of the Company shall be paid in accordance with such policy; and

 

 

(iv)        subjectto the execution and delivery of a general release (which release shall not alter or result in the waiver of Executive’sright to exercise the portion of any stock options that vested through the Termination Date, or any rights under this Section 7(a))in a form acceptable to the Parent Company and the Company within 30 days after the Termination Date (the “Release ExpirationDate”), which release has not been revoked, Executive is entitled to receive:

 

(1)         agross amount equal to (x) Executive’s base salary in effect on the Termination Date divided by (y) 12, per month, subjectto any applicable deductions and withholdings, for a period of 36 months after the Termination Date, which shall be paid in periodicinstallments by the Company  in accordance with the Company’s normal payroll practices in effect as of the TerminationDate commencing on the first payroll cycle which is at least 45 days after the Termination Date, unless such payments are requiredto be delayed pursuant to Section 8 below;

 

(2)         thecontinuation of coverage under all employee benefit insurance plans in which Executive was a participant as of the TerminationDate, to the extent such post-employment coverage is authorized by such plans, at the Company’s expense for a period of 12months after the Termination Date, provided, however if post-employment coverage is not authorized under the Company’s healthinsurance plan, then the Company will pay Executive the premium cost for health insurance coverage that the Company would havepaid if Executive had continued being a participant in the Company’s health insurance plan during such twelve month period,and such amount shall be paid at the time such premiums would have been paid if Executive had continued being a participant inthe Company’s health insurance plan during such twelve month period; and

 

(3)         anyunpaid discretionary bonus awarded to Executive for the year prior to the year in which the Termination Date occurs, which shallbe paid in a lump sum on the normal bonus payment date.

 

(v)         Inthe event that Employee fails to execute the Release on or prior to the Release Expiration Date, Employee shall not be entitledto any payments or benefits pursuant to Section 7(a)(iv).  Notwithstanding the foregoing, if the Release could becomeeffective during the calendar year following the calendar year of the Termination Date, then no such payments that constitute “deferredcompensation” under Internal Revenue Code Section 409A shall be made earlier than the first day of the calendar year followingthe calendar year of the Termination Date.

 

(b)          IfExecutive’s employment is terminated as a result of death or by the Company for Cause or because of Disability, or if a terminationof employment occurs as a result of Executive’s delivering a timely Non-Renewal Notice:

 

(i)          withinten days following the Termination Date, the Company shall pay to Executive the Accrued Obligations;

 

 

(ii)         within45 days following the Termination Date, the Company shall reimburse Executive for reasonable expenses incurred, but not paid priorto the Termination Date; and

 

(iii)        anyaccrued but unpaid Tax Equalization Policy obligations of the Company shall be paid in accordance with such policy.

 

(c)          Exceptfor payments provided under Sections 7(a)(i), 7(a)(ii), 7(a)(iii) and 7(b), all compensation and benefits paid pursuant to thisSection 7 shall cease and Executive shall promptly return any amount paid under Section 7(a)(iv) to the Company if Executive violatesany of the terms of Sections 4 or 5 above during the Restricted Period. In addition to these remedies, the Parent Company and theCompany shall have all other remedies provided by this Agreement and by law for the breach of Sections 4 or 5 above.

 

(d)          Forpurposes of this Agreement, “Termination Date” means the date of Executive’s “separation from service”within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulationspromulgated thereunder (“Section 409A”).”

 

(e)          Executive’srights with respect to the vesting and exercise of any options after the Termination Date for any termination of employment otherthan a termination for Cause shall be governed by option agreements between Executive and the Parent Company and the IncentivePlan.

 

8.          409ACOMPLIANCE.  This Agreement shall be interpreted and administered in a manner so that any amount or benefit payablehereunder shall be paid or provided in a manner that is either exempt from or compliant with the requirements Section 409A andapplicable Internal Revenue Service guidance and Treasury Regulations issued thereunder (and any applicable transition relief underSection 409A).  Notwithstanding anything else contained in this Agreement to the contrary, if Executive is a “specifiedemployee” under the Parent Company’s specified employee policy as in effect on the Termination Date, or if no suchpolicy is then in effect, within the meaning of Section 409A, any payment required to be made to Executive hereunder upon or followingthe Termination Date shall be delayed until after the six-month anniversary of Executive’s “separation from service”(as such term is defined in Section 409A) to the extent necessary to comply with, and avoid imposition on Executive of any additionaltax, interest, or penalty imposed under, Section 409A.  Should payments be delayed in accordance with the preceding sentence,the accumulated payment that would have been made but for the period of the delay shall be paid in a single lump sum during theten-day period following the six-month anniversary of the Termination Date.  Each payroll period payment described inSection 7(a)(iv)(1) shall be treated as a separate payment for purposes of Section 409A.

 

9.          UNIQUENESSOF SERVICES; ACKNOWLEDGEMENTS.  Executive acknowledges that the services to be rendered under the provisions of thisAgreement are of a special, unique, and extraordinary character; involve access to and development of Confidential Informationand Privileged Information; involve developing and protecting customer relationships and goodwill; and that it would be difficultor impossible to replace such services

 

 

and that, by reason thereof, Executive agreesand consents that if he violates any of the provisions of Sections 4 and 5 of this Agreement, the Parent Company and the Company,in addition to any other rights and remedies available under this Agreement or otherwise, shall be entitled to an injunction tobe issued by a court of competent jurisdiction restricting Executive from committing or continuing any violation of Sections 4and 5 of this Agreement.

 

10.         FURTHERACKNOWLEDGEMENTS.  Executive further acknowledges and agrees that the restrictions contained in Sections 4 and 5above are reasonable and necessary to protect the legitimate interest of the Company Group, in view of, among other things, theshort duration of the restrictions; the narrow scope of the restrictions; the Company Group’s interests in protecting itstrade secrets, Confidential Information, and Privileged Information (which Executive agrees would be useful to competitors formore than eighteen (18) months) and its customer relationships and goodwill; Executive’s background and capabilities whichwill allow him to seek and accept employment without violation of the restrictions; and Executive’s entitlements under thisAgreement.  If any provision contained in Sections 4 or 5 above is adjudged unreasonable by a court of competent jurisdictionor arbitrator in any proceeding, then such provision shall be deemed modified as provided in Sections 4 or 5 above or by reducingthe scope of such provision, the period of time during which such provision is applicable and/or the geographic area to which suchprovision applies, to the extent necessary for such provision to be adjudged reasonable and enforceable.

 

11.         NOTICES.  Anynotices provided for or permitted by this Agreement shall be in writing and shall be deemed to have been duly given when deliveredin person or three (3) days after it is mailed if delivered by registered or certified mail, return receipt requested, postageprepaid, addressed to the party for whom intended at such party’s address set forth above or to such other address as suchparty may designate by notice in writing given in the manner provided herein.

 

12.         SECTIONHEADINGS.  The section headings in this Agreement are for convenience of reference only, and they form no part ofthis Agreement and shall not affect its interpretation.

 

13.         ENTIREAGREEMENT; AMENDMENTS; COUNTERPARTS.  This Agreement constitutes the entire agreement and understanding between Executive,the Parent Company and the Company with respect to the subject matter hereof and shall supersede any and all other prior agreementsand understandings, whether oral or written, relating thereto or the employment of Executive by the Parent Company and the Company,including without limitation the Prior Agreement.  This Agreement may not be rescinded, modified, or amended, unlessan amendment is agreed to in a writing signed by Executive, by the Chief Executive Officer of the Parent Company, and by the Chairmanor an officer of the Company specifically authorized by the Board (other than Executive), and any waiver shall be set forth inwriting and signed by the party to be charged.  This Agreement may be executed in any number of counterparts, includingby facsimile, each of which shall be an original, but all of which together shall constitute one and the same instrument.

 

 

14.         PARTIALINVALIDITY.  The invalidity or unenforceability, by statute, court decision, or otherwise, of any term or conditionof this Agreement shall not affect the validity or enforceability of any other term or condition hereof.

 

15.         GOVERNINGLAW.  This Agreement shall be construed and administered in accordance with the laws of North Carolina, without regardto the principles of conflicts of law which might otherwise apply, except that Section 17 shall be governed by the Federal ArbitrationAct, to the extent applicable, and North Carolina law to the extent that the Federal Arbitration Act does not apply.

 

16.         ASSIGNABILITY.  ThisAgreement may not be assigned by Executive, and any purported assignment by Executive shall be null and void.  All ofthe terms and conditions of this Agreement shall be binding upon and inure to the benefit of the Parent Company and the Company,and their successors (including without limitation any successor to the Company’s business as the result of a merger or consolidationof the Company, whether or not the Parent Company’s or the Company survives such merger or consolidation) and assigns.  Successorsto the Company shall include, without limitation, any corporation or corporations acquiring, directly or indirectly, all or substantiallyall of the assets of the Company whether by merger, consolidation, purchase, or otherwise and such successor shall thereafter bedeemed the “Company” for purposes hereof.  Successors to the Parent Company shall include, without limitation,any corporation or corporations acquiring, directly or indirectly, all or substantially all of the assets of the Parent Companywhether by merger, consolidation, purchase, or otherwise and such successor shall thereafter be deemed the “Parent Company”for purposes hereof.

 

17.         DISPUTERESOLUTION.

 

(a)          Arbitration.In the event of disputes between the parties with respect to the terms and conditions of this Agreement, such disputes shall beresolved by and through an arbitration proceeding to be conducted under the auspices of the American Arbitration Association (orany like organization successor thereto) in the city of Raleigh, North Carolina; provided, however, that either partymay seek temporary or preliminary relief with respect to appropriate matters (including, without limitation, enforcement of Sections4 and 5 above) from a court in aid of arbitration.  Such arbitration proceeding shall be conducted pursuant to the commercialarbitration rules (formal or informal) of the American Arbitration Association in as expedited a manner as is then permitted bysuch rules (the “Arbitration”).  Both the foregoing agreement of the parties to arbitrate any andall such claims, and the results, determination, finding, judgment, and/or award rendered through such Arbitration, shall be finaland binding on the parties to this Agreement and may be specifically enforced by legal proceedings.  This Section 17(a)is without prejudice to the Executive’s statutory right to complain to an employment inspector and/or employment tribunalunder Bermuda’s Employment Act 2.

 

(b)          Procedure.  SuchArbitration may be initiated by written notice from either party to the other which shall be a compulsory and binding proceedingon each party.  The Arbitration shall be conducted by an arbitrator selected in accordance with the procedures of theAmerican Arbitration Association.  Time is of the essence of this

 

 

arbitration procedure, and the arbitratorshall be instructed and required to render his or her decision within 30 days following completion of the Arbitration.

 

(c)          Venueand Jurisdiction.  Any action to compel arbitration hereunder or otherwise relating to this Agreement shall be broughtexclusively in a state court or federal court located in Raleigh, North Carolina, providedthat, if a federal courthas jurisdiction over the subject matter thereof, then such action shall be brought in federal court, and the Company and Executivehereby irrevocably submit with regard to any such action or proceeding for itself and in respect to its property, generally andunconditionally, to the jurisdiction of the aforesaid courts.

 

(d)          Waiverof Jury Trial.  IN THE EVENT OF ANY LITIGATION WITH RESPECT TO ANY MATTER CONNECTED WITH THIS AGREEMENT OR THE AGREEMENTSOR TRANSACTIONS CONTEMPLATED HEREUNDER ALL OF THE PARTIES HERETO WAIVE ALL RIGHTS TO A TRIAL BY JURY.

 

18.         COOPERATION.  Executiveagrees that, upon reasonable notice and without the necessity of the Parent Company obtaining a subpoena or court order, Executiveshall provide reasonable cooperation in connection with any suit, action or proceeding (or any appeal from any suit, action orproceeding), or the decision to commence on behalf of the Parent Company any suit, action or proceeding, and any investigationand/or defense of any claims asserted against any of the Parent Company’s or its Affiliates’ current or former directors,officers, employees, shareholders, partners, members, agents or representatives of any of the foregoing, which relates to eventsoccurring during Executive’s employment hereunder by the Parent Company or the Company as to which Executive may have relevantinformation (including but not limited to furnishing relevant information and materials to the Parent Company or the Company orits designee and/or providing testimony at depositions and at trial), provided that with respect to such cooperation occurringfollowing termination of Executive’s employment, the Parent Company shall reimburse Executive for expenses reasonably incurredin connection therewith and shall schedule such cooperation to the extent reasonably practicable so as not to unreasonably interferewith Executive’s business or personal affairs. Notwithstanding anything to the contrary, in the event the Parent Companyrequests cooperation from Executive after his employment with the Parent Company and the Company has terminated and at a time whenExecutive is not receiving any severance pay from the Parent Company or the Company, Executive shall not be required to devotemore than 40 hours of his time per year with respect to this Section 18, except that such 40 hour cap shall not include or applyto any time spent testifying at a deposition or at trial, or spent testifying before or being interviewed by any administrativeor regulatory agency.

 

[Remainderof Page Intentionally Left Blank]

 

 

Kindly indicate your acceptance of this Agreement by signing andreturning a copy of this letter to me.  

 

 

 

 

[Signature Page to Amended and Restated EmploymentAgreement]