Document:

Divita Employment Agreement Extension

    Exhibit
      10.2

    

    EXTENSION
      OF EMPLOYMENT AGREEMENT

    

    

    

    Charles
      Divita, III (“Employee”) and FPIC Insurance Group, Inc. (“Employer”) are parties
      to an Amended and Restated Employment Agreement dated as of December 14, 2005
      (the “Employment Agreement”). The Employment Agreement provides for employment
      for a term beginning July 26, 2004 and ending December 31, 2006 by Employee
      and
      further provides that the term of Employee’s employment thereunder may be
      extended for additional one-year terms prior to the end of each calendar
      year.

    

    Pursuant
      to Section 1(a) of the Employment Agreement, Employer, acting through its
      President and Chief Executive Officer, hereby notifies Employee that the term
      of
      Employee’s employment under the Employment Agreement has been extended for one
      additional year, and, therefore, the term of Employee’s employment under the
      Employment Agreement shall continue through December 31, 2008. Furthermore,
      Employer hereby notifies Employee that Employee’s annual salary provided for in
      Section 2(a) of the Employment Agreement shall be $335,000 for
      2007.

    

    IN
      WITNESS WHEREOF, this Extension of Employment Agreement has been executed this
      14th
      day of December 2006.

    

    

    
       

      
        	 	 	 
	Accepted:	FPIC
                INSURANCE GROUP, INC.
	 
 	 
 	 
 
	/s/
                Charles Divita, III	By:  	/s/ John
                R. Byers
	
                

                Charles Divita, III	
                
                  

                  John R. Byers

                President and Chief Executive OfficerDivita Severance Agreement

    Exhibit
      10.3

    

    SEVERANCE
      AGREEMENT

    BETWEEN

    FPIC
      INSURANCE GROUP, INC.

    AND

    CHARLES
      DIVITA, III

    

    

    

    THIS
      AGREEMENT, effective as of the 8th
      of December, 2006, between FPIC Insurance Group, Inc., a Florida corporation
      (the “Company"), and Charles Divita, III, an individual (the
      "Executive").

     

    W
      I T N E S S E T H: 

    

    WHEREAS,
      the Executive is a valuable employee of the Company and an integral part of
      its
      management and a key participant in the decision making process relative to
      planning and policy for the Company; and

    

    WHEREAS,
      the Company wishes to encourage the Executive to continue his career and
      services with the Company for the period during and after an actual or
      threatened Change in Control (as hereinafter defined);

    

    NOW
      THEREFORE, it is hereby agreed by and between the parties hereto as
      follows:

    

    1.  Definitions.

    

    a.  "Board"
      shall mean the Board of Directors of the Company.

    

    b.  "Cause"
      shall mean the Executive's fraud or dishonesty that has resulted or is likely
      to
      result in material economic damage to the Company, or the Executive's willful
      nonfeasance if such nonfeasance is not cured within ten days of written notice
      from the Company, as determined in good faith by a vote of at least two-thirds
      of the non-employee directors of the Company at a meeting of the Board at which
      the Executive is provided an opportunity to be heard.

    

    c.  "Change
      in Control" shall mean the earlier of the following events:

     

       (i)    either
      (A) receipt by the Company of a report on Schedule 13D, or an amendment to
      such
      a report, filed with the Securities and Exchange Commission pursuant to Section
      13(d) of the Securities Exchange Act of 1934 (the "1934 Act"), disclosing that
      any person (as such term is used in Section 13(d) of the 1934 Act) ("Person"),
      is the beneficial owner, directly or indirectly, of twenty (20) percent or
      more
      of the outstanding stock of the Company, or (B) actual knowledge by the Company
      of facts on the basis of which any Person is required to file such a report
      on
      Schedule 13D, or to file an amendment to such a report, with the SEC (or would
      be required to file such a report or amendment upon the lapse of the applicable
      period of time specified in Section 13(d) of the 1934 Act) disclosing that
      such
      Person 

     

    
      
        
        

      

      
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    is
      the beneficial owner, directly or indirectly, of twenty (20) percent or more
      of
      the outstanding stock of the Company;

    

    (ii)   purchase
      by any Person, other than the Company or a wholly owned subsidiary of the
      Company, of shares pursuant to a tender or exchange offer to acquire any stock
      of the Company (or securities convertible into stock) for cash, securities
      or
      any other consideration provided that, after consummation of the offer, such
      Person is the beneficial owner (as defined in Rule 13d-3 under the 1934 Act
      regardless of whether the Company or such Person would otherwise be subject
      to
      the 1934 Act), directly or indirectly, of twenty (20) percent or more of the
      outstanding stock of the Company (calculated as provided in paragraph (d) of
      Rule 13d-3 under the 1934 Act in the case of rights to acquire stock regardless
      of whether the Company or such Person would otherwise be subject to the 1934
      Act);

    

    (iii)   either
      (A) the filing by any Person acquiring, directly or indirectly, twenty percent
      (20%) or more of the outstanding stock of the Company of a statement with the
      Florida Department of Insurance pursuant to § 628.461 of the Florida Statutes or
      a successor statutory provision, or (B) actual knowledge by the Company of
      facts
      on the basis of which any Person acquiring, directly or indirectly, twenty
      percent (20%) or more of the outstanding stock of the Company or a controlling
      company is required to file such a statement pursuant to § 628.461 or a
      successor provision.

    

    (iv)  approval
      by the shareholders of the Company of (A) any consolidation or merger of the
      Company in which the Company is not the continuing or surviving corporation
      or
      pursuant to which shares of stock of the Company would be converted into cash,
      securities or other property, other than a consolidation or merger of the
      Company in which holders of its stock immediately prior to the consolidation
      or
      merger have substantially the same proportionate ownership of common stock
      of
      the surviving corporation immediately after the consolidation or merger as
      immediately before, or (B) any consolidation or merger in which the Company
      is
      the continuing or surviving corporation but in which the common shareholders
      of
      the Company immediately prior to the consolidation or merger do not hold at
      least a majority of the outstanding common stock of the continuing or surviving
      corporation (except where such holders of common stock hold at least a majority
      of the common stock of the corporation that owns all of the common stock of
      the
      Company), or (C) any sale, lease, exchange or other transfer (in one transaction
      or a series of related transactions) of all or substantially all the assets
      of
      the Company, or (D) any merger or consolidation of the Company where, after
      the
      merger or consolidation, one Person owns 100% of the shares of stock of the
      Company (except where the holders of the Company's common stock immediately
      prior to such merger or consolidation own at least 90% of the outstanding stock
      of such Person immediately after such merger or consolidation); or

    

    (v)  a
      change in the majority of the members of the Board within a 24-month period
      unless the election or nomination for election by the Company's shareholders
      of
      each new director was approved by the vote of at least two-thirds of

     

    
      
        
        

      

      
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          the
        directors then still in
        office who were in office at the beginning of the 24-month
        period.

    

    

    d.  "Code"
      shall mean the Internal Revenue Code of 1986, as amended.

    

    e.  "Constructive
      Discharge" shall mean any (i) material change by the Company of the Executive's
      position, functions, or duties to an inferior position, functions, or duties
      from that in effect on the date of this Agreement, (ii) assignment or
      reassignment by the Company of the Executive without the Executive's consent
      to
      another place of employment more than 50 miles from the Executive's current
      place of employment, (iii) liquidation, dissolution, consolidation or merger
      of
      the Company, or transfer of all or substantially all of its assets, other than
      a
      transaction or series of transactions in which the resulting or surviving
      transferee entity has, in the aggregate, a net worth at least equal to that
      of
      the Company immediately before such transaction and expressly assumes this
      Agreement and all obligations and undertakings of the Company hereunder, or
      (iv)
      reduction in the Executive's base salary or target bonus
      opportunity.

    

    f.  "Coverage
      Period" shall mean the period beginning on the Starting Date and ending on
      the
      Ending Date. The "Starting Date" shall be the date on which a Change in Control
      occurs. The "Ending Date" shall be the earlier of (i) the date on which a public
      announcement is made by the Company of its intention to abandon a Change in
      Control transaction, or (ii) the date that is 36 full calendar months following
      the date on which a Change in Control occurs, or (iii) if such Change in Control
      is subject to shareholder approval of such transaction, the date that is 36
      months following the date on which the actual consolidation, merger or sale
      transaction occurs.

    

    g.  "ERISA"
      shall mean the Employee Retirement Income Security Act of 1974, as
      amended.

    

    h.  "Independent
      Tax Counsel" shall mean an attorney, a certified public accountant with a
      nationally recognized accounting firm, or a compensation consultant with a
      nationally recognized actuarial and benefits consulting firm, with expertise
      in
      the area of executive compensation tax law, who shall be selected by the Company
      and shall be reasonably acceptable to the Executive, and whose fees and
      disbursements shall be paid by the Company.

    

    2.   Term.

    

    This
      Agreement shall be effective as of the date of this Agreement and shall continue
      thereafter until (i) the date of the termination of the Executive's employment
      if such date is prior to the Coverage Period or (ii) if a Change in Control
      shall occur prior to the termination of the Executive’s employment, this
      Agreement shall remain in effect until all of the obligations of the parties
      hereunder are satisfied.

    

    
      
        
        

      

      
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    3.   Severance
      Benefit.

    

    a.  If
      at any time during the Coverage Period the Executive's employment hereunder
      is
      terminated by the Company for any reason other than Cause, death or disability,
      or by the Executive in the event of a Constructive Discharge, then the Company
      shall pay to the Executive (or if the Executive has died before receiving all
      payments to which he has become entitled hereunder, the estate of the Executive)
      severance pay in a lump sum cash amount equal to two times the sum of
      Executive's (i) annual salary and (ii) target bonus opportunity for the current
      calendar year (if greater than the target bonus opportunity, the average of
      the
      annual bonuses for the three prior calendar years). The Company shall also
      pay
      Executive any unpaid salary or benefits accrued to the date of termination.
      In
      such event, the Executive shall be 100% vested in all stock options, stock
      appreciation rights, contingent stock, restricted stock and other long-term
      incentive plans. The Executive's termination of employment with the Company
      to
      become an employee of a corporation that owns 100% of the Company shall not
      be
      considered a termination of employment for purposes of this Agreement. The
      subsequent termination of Executive's employment from such corporation shall
      be
      considered a termination of employment for purposes of this
      Agreement.

    

    b.  The
      Company and the Executive, upon mutual written agreement, may waive any of
      the
      provisions in paragraph 1(e) that would otherwise constitute a Constructive
      Discharge. Pursuant to paragraph 3(a) of this Agreement, Executive may terminate
      his employment in the event of a Constructive Discharge by providing written
      notice to the Company within three months after the occurrence of such event,
      specifying the event relied upon for a Constructive Discharge. Within ten days
      of receiving such written notice from Executive, the Company may cure the event
      that constitutes a Constructive Discharge.

    

    c.  If
      at any time during the Coverage Period the Executive's employment is terminated
      by the Company for any reason other than Cause, death or disability or by the
      Executive in the event of a Constructive Discharge, and the Executive is
      entitled to the benefits described under subparagraph 1(b) or subparagraph
      4(b)
      of his Employment Agreement dated as of December 14, 2005and as extended and
      amended thereafter, then the Executive shall be permitted to select either
      the
      benefits (i) that he would otherwise have been entitled to receive for the
      remaining term of his Employment Agreement or (ii) those payments provided
      for
      under this Agreement. The Executive shall be permitted to receive benefits
      under
      either the Employment Agreement or this Agreement, but not benefits from both
      the Employment Agreement and this Agreement.

    

    d.  For
      a period commencing with the month in which termination of employment as
      described in paragraph 3(a) above shall have occurred, and ending
      twenty-four months
      thereafter, the Executive shall be entitled to all benefits under the Company's
      welfare benefit plans (within the meaning of Section 3(1) of ERISA), as if
      the
      Executive were still employed during such period, at the same level of benefits
      and at the same dollar cost to the Executive as is available to all of the
      Company's senior executives generally and if and to the extent that equivalent
      benefits shall not be payable or provided under any such plan, the Company
      shall
      pay or provide tax equivalent benefits on an individual basis. The benefits
      provided in accordance with this paragraph 3(d) shall be secondary to any
      comparable benefits provided by another employer.

    

    
      
        
        

      

      
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    e.  If
      Independent Tax Counsel shall determine that the aggregate payments made to
      the
      Executive pursuant to this Agreement and any other payments to the Executive
      from the Company that constitute "parachute payments" as defined in Section
      280G
      of the Code (or any successor provision thereto) ("Parachute Payments") would
      be
      subject to the excise tax imposed by Section 4999 of the Code (the "Excise
      Tax"), then payments under this Agreement shall be reduced to the maximum amount
      that would not trigger such excise tax. The Executive shall be permitted to
      select the benefits to be reduced.

    

    f.  In
      the event of any termination of the Executive's employment described in
      paragraph 3(a), the Executive shall be under no obligation to seek other
      employment, and, except as provided in paragraph 3(a), there shall be no offset
      against amounts due the Executive under this Agreement on account of any
      remuneration attributable to any subsequent employment.

    

    4.   Source
      of Payments.

    

    All
      payments provided for in paragraph 3 above shall be paid in cash from the
      general funds of the Company; provided, however, that such payments shall be
      reduced by the amount of any payments made to the Executive or his dependents,
      beneficiaries or estate from any trust or special or separate fund established
      by the Company to assure such payments. The Company shall not be required to
      establish a special or separate fund or other segregation of assets to assure
      such payments, and, if the Company shall make any investments to aid it in
      meeting its obligations hereunder, the Executive shall have no right, title
      or
      interest whatever in or to any such investments except as may otherwise be
      expressly provided in a separate written instrument relating to such
      investments. Nothing contained in this Agreement, and no action taken pursuant
      to its provisions, shall create or be construed to create a trust of any kind,
      or a fiduciary relationship between the Company and the Executive or any other
      person. To the extent that any person acquires a right to receive payments
      from
      the Company pursuant to this Agreement, such right shall be no greater than
      the
      right of an unsecured creditor of the Company.

    

    5.   Mediation
      and Arbitration. 

    

    Any
      dispute or controversy arising out of or in relation to this Agreement shall
      first be submitted to mediation in the City of Jacksonville, Florida in
      accordance with the Commercial Mediation Rules of the American Arbitration
      Association. If mediation fails to resolve such dispute or controversy, then
      such dispute or controversy shall be determined and settled by arbitration
      in
      the City of Jacksonville, Florida, in accordance with the Commercial Arbitration
      Rules of the American Arbitration Association then in effect, and judgment
      upon
      the award rendered by the arbitrator may be entered in any court of competent
      jurisdiction. The parties hereto agree to use good faith efforts to select
      a
      mediator and, if mediation fails to resolve such dispute or controversy, an
      arbitrator. If the parties cannot agree upon a mediator or arbitrator, such
      mediator or arbitrator shall be selected in accordance with the relevant
      Commercial Rules of the American Arbitration Association then in effect. The
      Company's mediation and arbitration expenses, as well as any litigation costs,
      including legal counsel and reasonable experts, shall be paid by the Company.
      The Executive's mediation and arbitration costs, as well as any litigation
      costs, including legal counsel and reasonable experts, shall be paid by the
      Company, unless the trier of fact determines the Executive's claims thereunder
      are without merit. Whenever any action is required to be taken under this
      Agreement within a specified period of time and the taking of such action is
      materially affected by a matter submitted to mediation

     

    
      
        
        

      

      
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or
        arbitration, such period shall automatically be extended by the number of
        days
        plus ten that are taken for the determination of that matter by the parties
        through mediation or otherwise by the arbitrator.

    

    

    6.   Income
      Tax Withholding.

    

    The
      Company may withhold from any payments made under this Agreement all federal,
      state or other taxes as shall be required pursuant to any law or governmental
      regulation or ruling.

    

    7.   Entire
      Understanding.

    

    This
      Agreement contains the entire understanding between the Company and the
      Executive with respect to the subject matter hereof and supersedes any prior
      severance agreement between the Company and the Executive, except that this
      Agreement shall not affect or operate to reduce any benefit or compensation
      inuring to the Executive of any kind elsewhere provided and not expressly
      provided for in this Agreement, including without limitation, any benefit or
      compensation provided under an executive incentive compensation program of
      the
      Company.

    

    8.   Severability.

    

    If,
      for any reason, any one or more of the provisions or part of a provision
      contained in this Agreement shall be held by a court of competent jurisdiction
      to be invalid, illegal or unenforceable in any respect, such invalidity,
      illegality or unenforceability shall not affect any other provision or part
      of a
      provision of this Agreement not held so invalid, illegal or unenforceable,
      and
      each other provision or part of a provision shall to the full extent consistent
      with law continue in full force and effect.

    

    9.   Consolidation,
      Merger, or Sale of Assets.

     

         
If
      the
      Company consolidates or merges into or with, or transfers all or substantially
      all of its assets to, another corporation, the term "Company" as used herein
      shall mean such other corporation and this Agreement shall continue in full
      force and effect.

    

    10.  
Notices.

    

    All
      notices, requests, demands and other communications required or permitted
      hereunder shall be given in writing and shall be deemed to have been duly given
      if hand delivered or mailed, postage prepaid, certified or registered, first
      class as follows:

    

    a.    to
      the Company:

    

    FPIC
      Insurance Group, Inc.

    Attention:
      Chief Executive Officer

    225
      Water Street, Suite 1400

    Jacksonville,
      Florida 32202

    

    
      
        
        

      

      
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    b.    to
      the Executive:

    

    Charles
      Divita, III

    549
      S. Bridge Creek Drive

    Jacksonville,
      FL 32259

    

    or
      to such other address as either party shall have previously specified in writing
      to the other.

    

    11.   No
      Attachment.

    

    Except
      as required by law, no right to receive payments under this Agreement shall
      be
      subject to anticipation, commutation, alienation, sale, assignment, encumbrance,
      charge, pledge or hypothecation or to execution, attachment, levy or similar
      process or assignment by operation of law, and any attempt, voluntary or
      involuntary, to effect any such action shall be null, void and of no
      effect.

    

    12.   Binding
      Agreement.

    

    This
      Agreement shall be binding upon, and shall inure to the benefit of, the
      Executive and the Company and their respective permitted successors and
      assigns.

    

    13.   Modification
      and Waiver.

    

    This
      Agreement may not be modified or amended except by an instrument in writing
      signed by the parties hereto. No term or condition of this Agreement shall
      be
      deemed to have been waived, nor shall there be any estoppel against the
      enforcement of any provision of this Agreement except by written instrument
      signed by the party charged with such waiver or estoppel. No such written waiver
      shall be deemed a continuing waiver unless specifically stated therein, and
      each
      such waiver shall operate only as to the specific term or condition waived
      and
      shall not constitute a waiver of such term or condition for the future or as
      to
      any act other than that specifically waived.

    

    14.   Headings
      of No Effect.

    

    The
      paragraph headings contained in this Agreement are included solely for
      convenience of reference and shall not in any way affect the meaning or
      interpretation of any of the provisions of this Agreement.

    

    15.   Governing
      Law.

    

    This
      Agreement and its validity, interpretation, performance, and enforcement shall
      be governed by the laws of the State of Florida without giving effect to the
      choice of law provisions in effect in such State.

    

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
      as
      of the date first above written.

     

    
      	 	 	 
	 	FPIC
              INSURANCE GROUP, INC.
	 
 	 
 	 
 
	 	By:  	/s/ John
              R. Byers
	 	
              
                

                John R. Byers

              President and Chief Executive Officer

            

    

     

    
      	 	  
	 	 
 
	 	/s/  Charles
              Divita, III
	 	
              

              Charles Divita, III

    

     

     

    
      
        
        

      

      
        8

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