Document:

Exhibit_101

		

			Exhibit 10.1

		

		

			 

		

		
			RABBI DIRECTED TRUST AGREEMENT
		

		
			 
		

		
			TRUST NAME: RLI Corp Nonqualified Trust
		

		
			 
		

		
			THIS TRUST AGREEMENT (“Agreement”) is made by and between RLI Corp. (“Employer”) and Delaware Charter Guarantee & Trust Company, conducting business as Principal Trust Company (“Trustee”).
		

		
			 
		

		
			WHEREAS, the Employer has adopted the The RLI Corp. /Executive Deferred Compensation Agreement, RLI Corp. Executives Deferred Compensation Plan, RLI Corp. Nonemployee Directors Deferred Compensation Plan, Directors Deferred Compensation Plan, RLI Corp. Key Employees Excess Benefit Plan, Jonathan Michael RLI/ Corp. Key Employee Excess Benefit Plan (“Plan”) to provide benefits for certain employees of the Employer and employees of participating employers that have adopted the Plan;
		

		
			 
		

		
			WHEREAS, the Employer has incurred or expects to incur liability under the terms of the Plan with respect to individuals participating in the Plan;
		

		
			 
		

		
			WHEREAS, the Employer wishes to contribute to the Trust assets that shall be held therein, subject to the claims of the Employer’s creditors in the event of the Employer’s Insolvency, as herein defined, until paid to the Plan participants and their beneficiaries in such manner and at such times as specified in the Plan;
		

		
			 
		

		
			☒This is an amendment and restatement of the above-named Trust.
		

		
			 
		

		
			☐This is a newly-established trust.
		

		
			 
		

		
			WHEREAS, it is the intention of the parties that the Trust shall constitute an unfunded arrangement and shall not affect the status of the Plan as an unfunded plan maintained for the purpose of providing deferred compensation for a select group of management or highly compensated employees for purposes of Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”); and
		

		
			 
		

		
			WHEREAS, the Employer intends to make contributions to this Trust to provide itself with a source of funds to assist it in the meeting of its liabilities under the Plan;
		

		
			 
		

		
			NOW, THEREFORE, the parties do hereby establish the Trust and agree that the Trust shall be comprised, held and disposed of as follows:
		

		
			 
		

		
			SECTION 1. TRUST FUND
		

		
			 
		

		
			1.1Establishment of Trust. The Employer hereby establishes with the Trustee a trust in which may be deposited such sums of money as shall from time to time be paid or delivered to the Trustee in accordance with the  terms of the Plan and which shall become the principal of the Trust to be held, administered and disposed of   by the Trustee as provided in this Agreement and in accordance with any investment policy or guidelines established under the Plan and communicated in writing to the Trustee. All such deposits, all investments and reinvestments thereof and all earnings, appreciation and additions allocable thereto, less losses, depreciation and expenses allocable thereto and any payments made therefrom as authorized under the Plan or this Agreement shall constitute the “Trust”.
		

		
			 
		

		
			1.2Irrevocability of Trust. The Trust hereby established shall be irrevocable and shall terminate only upon the complete distribution of the assets of the Trust to the participants or their beneficiaries.
		

		
			 
		

		
			1.3Grantor Trust. The Trust is intended to be a grantor trust of which the Employer is the grantor within the meaning of subpart E, part I, subchapter J, chapter 1, subtitle A of the Internal Revenue Code of 1986, as amended (“Code”) and shall be construed accordingly.
		

		
			 
		

		
			1.4Non-Diversion of Funds. The principal of the Trust, and any earnings thereon shall be held separate and apart from other funds of the Employer and except for the payment of fees and other expenses, including administrative expenses of the Plan, properly charged to the Trust under this Agreement shall be used exclusively for the use and purposes of Plan participants and their beneficiaries and general creditors as herein set forth.
		

		
			

		 

		

		
			 
		

		
			Plan participants and their beneficiaries shall have no preferred claim on, or any beneficial ownership interest in, any assets of the Trust. Any rights created under the Plan and this Agreement shall be mere unsecured contractual rights of Plan participants and their beneficiaries against the Employer. Any assets held by the  Trust will be subject to the claims of the Employer’s general creditors under federal and state law in the event of Insolvency, as defined in Section 9.1 herein.
		

		
			 
		

		
			1.5Deposits. The Employer in its sole discretion, may at any time, or from time to time, make additional deposits of cash or other property in trust with the Trustee to augment the principal to be held, administered and disposed of by the Trustee as provided in this Agreement. Neither the Trustee nor any Plan participant or beneficiary shall have the right to compel such deposits.
		

		
			 
		

		
			SECTION 2. TRUSTEE AND COMMITTEE
		

		
			 
		

		
			2.1Committee. The Employer shall certify to the Trustee the names and specimen signatures of the members of  the Committee (“Committee”) appointed by the Employer to administer the Plan and give directions to the Trustee. Such certification shall include directions as to the number of signatures required for any communication or direction to the Trustee. The Employer shall promptly give notice to the Trustee of changes  in the membership of the Committee. The Committee may also certify to the Trustee the name of any agent, together with a specimen signature of any such agent who is not a member of the Committee, authorized to   act for the Committee in relation to the Trustee.  The Committee shall promptly give notice to the Trustee of  any change in any agent authorized to act on behalf of the Committee. For all purposes under this Agreement, until any such notice is received by the Trustee, the Trustee shall be fully protected in assuming that the membership of the Committee and the authority of any agent authorized to act on its behalf remain  unchanged.
		

		
			 
		

		
			2.2Trustee’s Reliance. The Trustee may rely and act upon any certificate, notice or direction of the Committee, or of an agent authorized to act on its behalf, or of the Employer which the Trustee believes to be genuine and to have been signed by the person or persons duly authorized to sign such certificate, notice, or direction.
		

		
			 
		

		
			SECTION 3. INVESTMENT AND ADMINISTRATION
		

		
			 
		

		
			3.1General. The Trust shall be held by the Trustee and shall be invested and reinvested as hereinafter provided in this Section 3, without distinction between principal and income and without regard to the restrictions of the laws of any jurisdiction relating to the investment of trusts.
		

		
			 
		

		
			3.2Collection of Contributions. The Trustee shall have no authority over and shall have no responsibility for the administration of the Plan. The Trustee shall be under no duty to enforce the payment of any contribution to the Trust and shall not be responsible for the adequacy of the Trust to satisfy any obligations for benefits, expenses, and liabilities under the Plan. In addition to making contributions, the Employer, through the Committee, shall furnish the Trustee with such information and data relative to the Plan as is necessary for the proper administration of the Trust.
		

		
			 
		

		
			3.3Appointment of Investment Manager.
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			The Committee may, in its discretion, appoint an investment manager (“Investment Manager”) to direct the investment and reinvestment of all or any portion of the Trust. Any such Investment Manager shall either (i) be registered as an investment adviser under the Investment Advisers Act of 1940, as amended (“Investment Advisers Act”); (ii) be a bank, as defined in the Investment Advisers Act; or (iii) be an insurance company qualified to perform investment services under the laws of more than one state.

		
			 
		

			
	
			
				 (b)
			

			
	
			
			The Committee shall give written notice to the Trustee of the appointment of an Investment Manager pursuant to Section 3.3(a). Such notice shall include: (i) a specification of the portion of the Trust to  which the appointment applies; (ii) a certification by the Committee that the Investment Manager satisfies the requirements of Section 3.3(a)(i), (ii) or (iii); (iii) a copy of the instruments appointing the Investment Manager and evidencing the Investment Manager’s acceptance of the appointment; 

		 

		

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	(iv) directions as to the manner in which the Investment Manager is authorized to give instructions to the Trustee, including the persons authorized to give instructions and the number of signatures required for any written instruction; (v) a specimen signature of the Investment Manager; (vi) an acknowledgment by the Investment Manager that it is a fiduciary of the Trust; and (vii) if applicable, a certificate evidencing the Investment Manager’s current registration under the Investment Advisers Act. For purposes of this Agreement, the appointment of an Investment Manager pursuant to this Section 3.3 shall become effective as of the effective date specified in such notice, or, if later, as of the date on which the Trustee receives proper notice of such appointment.

		
			 
		

			
	
			
				 (c)
			

			
	
			
			The Committee shall give written notice to the Trustee of the resignation or removal of an Investment Manager previously appointed pursuant to this Section 3.3.  From and after the date on which the  Trustee receives such notice, or, if later, the effective date of the resignation or removal specified in such notice, the Committee shall be responsible, in accordance with Section 3.4, for the investment and reinvestment of the portion of the Trust previously managed by such Investment Manager, until such time as a successor Investment Manager has been duly appointed pursuant to this Section 3.3.

		
			 
		

			
	
			
				 (d)
			

			
	
			
			The Trustee may rely and act upon any certificate, notice or direction of the Investment Manager which the Trustee believes to be genuine and to have been signed by the Investment Manager.

		
			 
		

		
			3.4Investment Decisions.
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			The Trustee shall invest and reinvest the Trust in accordance with the directions of the Committee, or, to the extent provided in Section 3.3, in accordance with the directions of an Investment Manager. The Trustee shall be under no duty or obligation to review any investment to be acquired, held or disposed of pursuant to such directions nor to make any recommendation with respect to the disposition or continued retention of any such investment. The Trustee shall have no liability or responsibility for its action or inaction pursuant to the direction of, or its failure to act in the absence of directions from, the Committee or an Investment Manager, except to the extent provided in Section 5.1.  The Employer hereby agrees to indemnify the Trustee and hold it harmless from and defend it against any claim or liability which may be asserted against the Trustee by reason of any action or inaction by it pursuant to a direction by the Committee or by an Investment Manager or failing to act in the absence of any such direction.

		
			 
		

			
	
			
				 (b)
			

			
	
			
			The Committee or an Investment Manager appointed pursuant to Section 3.3 may, at any time and from time to time, issue orders for the purchase or sale of securities directly to a broker; and in order to facilitate such transaction, the Trustee upon request shall execute and deliver appropriate trading authorizations. Written notification of the issuance of each such order shall be given promptly to the Trustee by the Committee or the Investment Manager, and the execution of each such order shall be confirmed by written advice to the Trustee by the broker. Such notification shall be authority for the Trustee to pay for securities purchased against receipt thereof and to deliver securities sold against payment therefore, as the case may be.

		
			 
		

			
	
			
				 (c)
			

			
	
			
			To the extent that neither the Committee nor an Investment Manager furnishes directions as to the investment of the Trust, the Trustee shall invest and reinvest the Trust in any stable-value investment currently available to the Trust. If no stable-value investment is currently available to the Trust, the Trustee shall invest and reinvest the portion of the Trust subject to this section 3.4(c) in an investment generally recognized as having the lowest investment risk of all investments available to the Trust.

		
			 
		

		
			3.5Investment in Short-Term Obligation. Notwithstanding any provisions of this Section 3 to the contrary, the Trustee or its designee, upon the direction of the Committee, may retain uninvested cash or cash balances, without being required to pay interest thereon. Pending investment, and if directed to do so by the Committee, the Trustee may temporarily invest any funds held or received by it for investment in an investment fund established to invest funds held thereunder in commercial paper or in obligations of, or guaranteed by, the United States government or any of its agencies.
		

		
			 
		

		
			

		 

		

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			3.6Directed Powers of the Trustee
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			Subject to the direction of the Employer, Committee, or Investment Manager, the Trustee or its designee is authorized and empowered to perform only those duties and functions expressly set out in this Agreement. The Trustee will not be under any duty to take any action other than those actions specified  in this Agreement unless it expressly agrees in writing to do so. The Trustee or its designee is authorized and empowered:

		
			 
		

			
	
			
				 (i)
			

			
	
			
			to invest and reinvest part or all of the Trust in accordance with investment policies which may be established by the Committee from time to time in such assets as the Committee or Investment Manager may direct (including common and preferred stocks of the Employer), bonds, debentures, mutual fund shares, notes, commercial paper, treasury bills, options, partnership interests, venture capital investments, any common, commingled, or pooled investment funds (including such funds for which the Trustee serves as investment manager), contracts and policies issued by an insurance company (including affiliates of the Trustee), endorsement split dollar insurance, any interest bearing deposits held by any bank or similar financial institution (including affiliates of the    Trustee), and any other real or personal property;

		
			 
		

			
	
			
				 (ii)
			

			
	
			
			in accordance with directions from the Committee, to apply for, pay premiums on and maintain in force on the lives of Plan participants, individual ordinary or individual or group term or universal life insurance policies, variable universal life insurance policies, survivorship life insurance policies or annuity policies (“policies”) (including any policies issued by an affiliate of the Trustee) and to have with respect to such policies all of the rights, powers, options, privileges and benefits usually comprised in the term “incidents of ownership” and normally vested in an owner of such policies, except, however, the Trustee shall have no power to name a beneficiary of the policy other than the Trust, to assign the policy (as distinct from conversion of the policy to a different form) other than to a successor trustee, or to loan to any person the proceeds of any borrowing against such policy; provided, however, notwithstanding the provisions above, the Trustee may loan to the Employer the proceeds of any borrowing against an insurance policy held as an asset of the Trust;

		
			 
		

			
	
			
				 (iii)
			

			
	
			
			to sell, exchange, convey, transfer or dispose of and also to grant options with respect to any property, whether real or personal, at any time held by it, and any sale may be made by private contract or by public auction, and for cash or upon credit, or partly for cash and partly upon credit, and no person dealing with the Trustee shall be bound to see to the application of the purchase money or to inquire into the validity, expediency or propriety of any such sale or other disposition;

		
			 
		

			
	
			
				 (iv)
			

			
	
			
			to retain, manage, operate, repair and rehabilitate and to mortgage or lease for any period any real estate held by it and, in its discretion, cause to be formed any corporation or trust to hold title to any such real property;

		
			 
		

			
	
			
				 (v)
			

			
	
			
			to borrow or raise monies for the purposes of the Trust from any lender, except the Trustee, in its individual capacity, and for any sum so borrowed to issue its promissory note as Trustee and to secure the repayment thereof by pledging all or any part of the Trust, and no person lending money to the Trustee shall be bound to see to the application of the money loaned or to inquire into the validity, expediency or propriety of any such borrowing;

		
			 
		

			
	
			
				 (vi)
			

			
	
			
			to make distributions in cash upon the direction of the Employer through the Committee; 

		
			 
		

			
	
			
				 (vii)
			

			
	
			
			to vote in person or by proxy on any stocks, bonds, or other securities held by it, including any shares of mutual funds held by it, to exercise any options appurtenant to any stocks, bonds or other securities for the conversion thereof into other stocks, bonds or securities, or to exercise any rights to subscribe for additional stocks, bonds or other securities and to make any and all necessary payment therefor and to enter into any voting trust;

		
			

		 

		

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				 (viii)
			

			
	
			
			with respect to any investment, to join in, dissent from, or oppose any action or inaction of any corporation, or of the directors, officers or stockholders of any corporation, including, without limitation, any reorganization, recapitalization, consolidation, liquidation, sale or merger;

		
			 
		

			
	
			
				 (ix)
			

			
	
			
			to settle, adjust, compromise, or submit to arbitration any claims, debts or damages due or owing to or from the Trust;

		
			 
		

			
	
			
				 (x)
			

			
	
			
			to deposit any property with any protective, reorganization or similar committee, to delegate power thereto and to pay and agree to pay part of its expenses and compensation and any assessments levied with respect to any property so deposited; and

		
			 
		

			
	
			
				 (xi)
			

			
	
			
			to delegate administrative duties to a designee.

		
			 
		

			
	
			
				 (b)
			

			
	
			
			In addition to and not by way of limitation of any other powers conferred upon the Trustee by law or other provisions of this Agreement, but subject to Section 1.4 and this Section 3, the Trustee is authorized and empowered, in its discretion:

		
			 
		

			
	
			
				 (i)
			

			
	
			
			to commence or defend suits or legal proceedings, and to represent the Trust in all suits or legal proceedings in any court or before any other body or tribunal;

		
			 
		

			
	
			
				 (ii)
			

			
	
			
			to register securities in its name or in the name of any nominee or nominees with or without indication of the capacity in which the securities shall be held, or to hold securities in bearer form;

		
			 
		

			
	
			
				 (iii)
			

			
	
			
			to employ such agents, brokers, counsel, accountants, actuaries or other professionals, as the Trustee shall deem advisable and to be reimbursed by the Employer for their reasonable expenses and compensation;

		
			 
		

			
	
			
				 (iv)
			

			
	
			
			to make, execute, acknowledge, and deliver any and all deeds, leases, assignments and instruments; and

		
			 
		

			
	
			
				 (v)
			

			
	
			
			generally to do all acts which the Trustee may deem necessary or desirable for the administration and protection of the Trust.

		
			 
		

			
	
			
				 (c)
			

			
	
			
			Notwithstanding any powers granted to the Trustee pursuant to this Agreement or by applicable law, the Trustee shall not have any power that could give the Trust the objective of carrying on a business and dividing the gains therefrom, within the meaning of Section 301.7701-2 of the Procedure and Administrative Regulations promulgated pursuant to the Code.

		
			 
		

		
			3.7Substitution of Assets. The Employer shall have the right at any time, and from time to time, in its sole discretion, to substitute assets of equal fair market value for any asset held by the Trust. This right is exercisable by the Employer in a nonfiduciary capacity without the approval or consent of any person in a fiduciary capacity.
		

		
			 
		

		
			3.8Trust Income. During the term of this Trust, all income received by the Trust, net of expenses and taxes, shall be accumulated and reinvested.
		

		
			 
		

		
			SECTION 4. DISTRIBUTIONS FROM TRUST
		

		
			 
		

		
			4.1General. The Employer shall deliver to the Trustee a schedule ("Payment Schedule") that indicates the amounts payable in respect of each Plan participant (and his or her beneficiaries), that provides a formula or other instructions acceptable to the Trustee for determining the amounts so payable, the form in which such amount is to be paid (as provided for or available under the Plan), and the time of commencement for payment of such amounts. Except as otherwise provided herein, the Trustee shall make payments to the Plan participants and their beneficiaries in accordance with such Payment Schedule.
		

		
			 
		

		
			

		 

		

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			4.2Reporting and Withholding Requirements. The Employer or Trustee shall provide for the reporting and withholding of any federal, state or local taxes that may be required to be withheld with respect to the payment of benefits pursuant to the terms of the Plan and shall pay amounts withheld to the appropriate taxing authorities. Upon the occurrence of a distribution pursuant to the Plan, the Committee shall direct the Trustee to send the Employer an amount, as determined by the Employer, sufficient for the Employer to discharge its withholding obligations with respect to the distribution.
		

		
			 
		

		
			4.3Direction by Committee.
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			A direction by the Committee to make a distribution from the Trust shall:

		
			 
		

			
	
			
				 (i)
			

			
	
			
			be made in writing;

		
			 
		

			
	
			
				 (ii)
			

			
	
			
			specify the amount of the payment to be distributed (net of the amount sufficient for the Employer to discharge its withholding obligation), the date such payment is to be made, the person to whom payment is to be made, and the address to which the payment is to be sent;

		
			 
		

			
	
			
				 (iii)
			

			
	
			
			specify the amount determined by the Employer to be sufficient for the Employer to discharge its withholding obligation; and

		
			 
		

			
	
			
				 (iv)
			

			
	
			
			be deemed to certify to the Trustee that such direction and any payment pursuant thereto are authorized under the terms of the Plan.

		
			 
		

			
	
			
				 (b)
			

			
	
			
			The Trustee shall be entitled to rely conclusively on the Committee’s certification of its authority to direct a payment without independent investigation. The Trustee shall have no liability to any person with respect to payments made in accordance with the provisions of this Section 4.

		
			 
		

		
			4.4Benefits Entitlement. The entitlement of a Plan participant or his or her beneficiaries to benefits under the Plan shall be determined by the Employer or such party as it shall designate under the Plan, and any claim for such benefits shall be considered and reviewed under the procedures set out in the Plan.
		

		
			 
		

		
			4.5Payments by Employer. The Employer may make payment of benefits directly to Plan participants or their beneficiaries as they become due under the terms of the Plan. The Employer shall notify the Trustee of its decision to make payment of benefits directly prior to the time amounts are payable to participants or their beneficiaries. In addition, if the principal of the Trust, and any earnings thereon, are not sufficient to make payments of benefits in accordance with the terms of the Plan, the Employer shall make the balance of each such payment as it falls due. The Trustee shall notify the Employer where principal and earnings are not sufficient.
		

		
			 
		

		
			4.6Payments to Employer. Except as expressly provided in the Plan, the Employer shall have no right or power to direct the Trustee to return to the Employer any of the Trust Fund before all payments of benefits have been made pursuant to the Plan. However upon written request and certification from the Employer of the amount required to pay benefits provided under the terms of the Plan, if the Trustee determines that the value of the assets of the Trust Fund are in excess of 100% of the amount required to pay the benefits provided under the terms of the Plan, then such excess assets, including both principal and income, shall be returned to the Employer.
		

		
			 
		

		
			SECTION 5. TRUSTEE’S AND COMMITTEE’S RESPONSIBILITIES
		

		
			 
		

		
			5.1General Standard of Care. The Trustee, the members of the Committee and any Investment Manager shall at  all times discharge their duties with respect to the Trust solely in the interest of the Plan participants and their beneficiaries and with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims, provided, however, that the Trustee shall incur no liability to any person for any action taken pursuant to a direction, request or approval given by the Employer which is contemplated by, and in conformity with, the terms of the Plan or this Trust and is given in writing by the Employer. In the event of a dispute between the Employer and a party, the Trustee may apply to a court of competent jurisdiction to resolve the dispute.
		

		
			 
		

		
			

		 

		

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			5.2No Liability for Acts of Others. No fiduciary under this Agreement shall be liable for an act or omission of another person in carrying out any fiduciary responsibility where such fiduciary responsibility is allocated to such other person by this Agreement or pursuant to a procedure established in this Agreement.
		

		
			 
		

		
			5.3Legal Counsel. The Trustee may consult with legal counsel (who may be counsel to the Employer) concerning any questions which may arise under this Agreement, and the opinions of such counsel shall be full and complete protection with respect to any action taken, or omitted, by the Trustee hereunder in good faith in accordance with the opinion of such counsel.
		

		
			 
		

		
			5.4Liability Under Plan. The duties and obligations of the Trustee shall be limited to those expressly set forth in this Agreement, notwithstanding any reference herein to the Plan. Notwithstanding any other provision of this Trust Agreement, the Trustee and its officers, directors and agents hereunder shall be indemnified and held harmless by the Employer and the Trust to the fullest extent permitted by law against any and all costs, damages, expenses and liabilities including, but not limited to, attorneys’ fees and disbursements reasonably incurred by or imposed upon it in connection with any claim made against it or in which it may be involved by reason of it being, or having been, a Trustee hereunder, to the extent such amounts are not caused by the Trustee’s breach of this Agreement, negligence, willful misconduct, lack of good faith, or to the extent satisfied by fiduciary liability insurance that may or may not be maintained by the Employer. If the Employer does not pay such costs, expenses and liabilities in a reasonably timely manner, the Trustee may obtain payment from the Trust.
		

		
			 
		

		
			SECTION 6. TRUSTEE’S ACCOUNTS
		

		
			 
		

		
			6.1Accounts. The Trustee shall keep accurate and detailed accounts of all investments, reinvestments, receipts, disbursements, and all other transactions hereunder, and all such accounts and the books and records relating thereto shall be open to inspection at all reasonable times by the Employer or the Committee or persons designated by them.
		

		
			 
		

		
			6.2Valuation of Trust. The Trustee or its designee shall value or cause to be valued the Trust as of the last business day of each calendar quarter (“Valuation Date”), and shall report to the Committee the value of the Trust as of such date, within a reasonable time after the first day of the month next following each Valuation Date.
		

		
			 
		

		
			6.3Reports to Committee. Within sixty (60) days following the close of each calendar year, and within sixty (60) days following the effective date of the resignation or removal of the Trustee as provided in Section 8.1, the Trustee shall render to the Committee a written account of its administration of the Trust during such year or during the period from the close of the last preceding year to the date of such removal or resignation, setting forth all investments, receipts, disbursements and other transactions effected by it, including a description of all securities and investments purchased and sold with the cost or net proceeds of such purchases or sales (accrued interest paid or receivable being shown separately) and showing all cash, securities and other property held in the Trust as of the date of such removal or resignation, as the case may be.
		

		
			 
		

		
			6.4Right of Judicial Settlement. The Trustee, the Committee, and the Employer, or any of them, shall have the right to apply at any time to a court of competent jurisdiction for the judicial settlement of the Trustee’s account. In any such case, it shall be necessary to join as parties thereto only the Trustee, the Committee and the Employer; and any judgment or decree which may be entered therein shall be conclusive upon all persons having or claiming to have any interest in the Trust or under the Plan.
		

		
			 
		

		
			6.5Enforcement of Agreement. To protect the Trust from expenses which might otherwise be incurred, the Employer and the Committee shall have authority, either jointly or severally, to enforce this Agreement on behalf of all persons claiming any interest in the Trust or under the Plan, and no other person may institute or maintain any action or proceeding against the Trustee or the Trust in the absence of written authority from the Employer, the Committee or a judgment of a court of competent jurisdiction that in refusing authority the Committee acted fraudulently or in bad faith.
		

		
			 
		

		
			

		 

		

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			SECTION 7. TAXES; COMPENSATION OF TRUSTEE
		

		
			 
		

		
			7.1Taxes. Any taxes that may be imposed upon the Trust or the income therefrom shall be deducted from and charged against the Trust.
		

		
			 
		

		
			7.2Compensation of Trustee; Expenses. The Trustee shall receive for its services hereunder such compensation as may be agreed upon in writing from time to time by the Employer and the Trustee and shall be reimbursed for its reasonable expenses, including counsel fees, incurred in the performance of its duties hereunder. The Trustee shall deduct from and charge against the Trust such compensation and all such expenses unless previously paid by the Employer.
		

		
			 
		

		
			SECTION 8. RESIGNATION AND REMOVAL OF TRUSTEE
		

		
			 
		

		
			8.1Resignation or Removal of Trustee. The Trustee may resign as trustee hereunder at any time by giving sixty
		

		
			(60) days prior written notice to the Employer. The Employer may remove the Trustee as trustee hereunder at any time by giving the Trustee prior written notice of such removal, which shall include notice of the appointment of a successor trustee. Such removal shall take effect not earlier than sixty (60) days following receipt of such notice by the Trustee unless otherwise agreed upon by the Trustee and the Employer.
		

		
			 
		

		
			8.2Appointment of Successor. In the event of the resignation or removal of the Trustee, a successor trustee shall be appointed by the Employer. Except as is otherwise provided in Section 8.1, such appointment shall take effect upon delivery to the Trustee of an instrument so appointing the successor and an instrument of acceptance executed by such successor. If within sixty (60) days after notice of resignation has been given by the Trustee, a successor has not been appointed as provided in Section 8.1, the Trustee may apply to any court of competent jurisdiction for the appointment of such successor or for instructions.  All expenses of the   Trustee in connection with the preceding shall be allowed as administrative expenses of the Trust.
		

		
			 
		

		
			8.3Succession.
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			Upon the appointment of a successor hereunder, the Trustee shall timely transfer and deliver all assets   of the Trust to such successor; provided, however, that the Trustee may reserve such sum of money as it shall in its sole and absolute discretion deem advisable for payment of its fees and all expenses including counsel fees in connection with the settlement of its account, and any balance of such reserve remaining after the payment of such charges shall be paid over to the successor trustee. If such reserve shall be insufficient to pay such charges, the Trustee shall be entitled to recover the amount of any deficiency from the Employer, from the Trust, or from both.

		
			 
		

			
	
			
				 (b)
			

			
	
			
			Upon the completion of the succession and the rendering of its final accounts, the Trustee shall have no further responsibilities whatsoever under this Agreement.

		
			 
		

		
			8.4Successor Bound by Agreement. All the provisions of this Agreement shall apply to any successor trustee with the same force and effect as if such successor had been originally named herein as the trustee hereunder.
		

		
			 
		

		
			SECTION 9. TRUSTEE RESPONSIBILITY REGARDING PAYMENTS TO TRUST BENEFICIARIES WHEN EMPLOYER IS INSOLVENT
		

		
			 
		

		
			9.1Insolvency. The Trustee shall cease payment of benefits to Plan participants and their beneficiaries if the Employer is Insolvent. The Employer shall be considered "Insolvent" for purposes of this Trust Agreement if (i) the Employer is unable to pay its debts as they become due, or (ii) the Employer is subject to a pending proceeding as a debtor under the United States Bankruptcy Code.
		

		
			 
		

		
			9.2General Creditors. At all times during the continuance of this Trust, the principal and income of the Trust shall be subject to claims of general creditors of the Employer.
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			The Board of Directors and the Chief Executive Officer of Employer shall have the duty to inform the Trustee in writing of Employer’s Insolvency. If a person claiming to be a creditor of the Employer 

		 

		

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	alleges in writing to the Trustee under penalty of perjury that Employer has become Insolvent, the Trustee shall take action it deems prudent to determine whether Employer is Insolvent, and, pending such determination, the Trustee shall discontinue payment of benefits to Plan participants or their beneficiaries.

		
			 
		

			
	
			
				 (b)
			

			
	
			
			Unless the Trustee has actual knowledge of Employer’s Insolvency,  or  has  received notice  from Employer or a person claiming to be a creditor alleging that Employer is Insolvent, the Trustee shall have no duty to inquire whether Employer is Insolvent. The Trustee may in all events rely on the   determination of the independent accountant regularly auditing the financial records of Employer as to whether Employer is Insolvent.

		
			 
		

			
	
			
				 (c)
			

			
	
			
			If at any time the Trustee has made or received a determination that Employer is Insolvent, the Trustee shall discontinue payments to Plan participants or their beneficiaries and shall hold the assets of the  Trust for the benefit of Employer’s general creditors. Nothing in this Trust Agreement shall in any way diminish any rights of Plan participants or their beneficiaries to pursue their rights as general creditors of the Employer with respect to benefits due under the Plan or otherwise.

		
			 
		

			
	
			
				 (d)
			

			
	
			
			The Trustee shall resume the payment of benefits to Plan participants or their beneficiaries in accordance with the terms of this Agreement only after the Trustee has received a determination from the independent accountant regularly auditing the financial records of the Employer that the Employer  is not Insolvent (or is no longer Insolvent).

		
			 
		

			
	
			
				 (e)
			

			
	
			
			During the continuance of the Trust, the fees and expenses of the Trustee shall be paid from the Trust Fund if not paid by the Employer.

		
			 
		

		
			9.3Amount of Payments After Resumption. Provided that there are sufficient assets, if the Trustee discontinues  the payment of benefits from the Trust pursuant to this Section 9 and subsequently resumes such payments, the first payment following such discontinuance shall include the aggregate amount of all payments due to   Plan participants or their beneficiaries under the terms of the Plan for the period of such discontinuance, less the aggregate amount of any payments made to Plan participants or their beneficiaries by the Employer in lieu of the payments provided for hereunder during any such period of discontinuance.
		

		
			 
		

		
			SECTION 10. AMENDMENT AND TERMINATION
		

		
			 
		

		
			10.1Amendment. This Trust Agreement may be amended by a written instrument executed by the Trustee and the Employer.   Notwithstanding the foregoing, no such amendment shall conflict with the terms of the Plan or   shall make the Trust revocable after it has become irrevocable in accordance with Section 1.2 hereof.
		

		
			 
		

		
			10.2Termination. The Trust shall not terminate until the date on which Plan participants and their beneficiaries are no longer entitled to benefits under the terms of the Plan.  Upon termination of the Trust, any remaining   assets less any outstanding Trust fees and expenses shall be returned to the Employer.
		

		
			 
		

		
			SECTION 11. MISCELLANEOUS
		

		
			 
		

		
			11.1Binding Effect; Assignability. This Agreement shall be binding upon, and the powers granted to the Employer and the Trustee, respectively, shall be exercisable by the respective successors and assigns of the Employer  and the Trustee. Any entity which shall, by merger, consolidation, purchase, or otherwise, succeed to substantially all the trust business of the Trustee shall, upon such succession and without any appointment or other action by the Employer, be and become successor trustee hereunder.
		

		
			 
		

		
			11.2Governing Law. This Agreement and the trust created and the Trust held hereunder shall be interpreted in accordance with the laws of the state of Delaware, except to the extent that such laws are preempted by the federal laws of the United States of America. All contributions to the Trust shall be deemed to take place in the state of Delaware.
		

		
			 
		

		
			

		 

		

			9

		

		

			 

		

		

		
			11.3Notices. Any communication to the Trustee, including any notice, direction, designation, certification, order, instruction, or objection shall be in writing and signed by the person authorized under the Plan to give the communication.  The Trustee shall be fully protected in acting in accordance with these written communications. Any notice required or permitted to be given to a party hereunder shall be deemed given if in writing and hand delivered or mailed, postage prepaid, certified mail, return receipt requested, to such party at the following address or at such other address as such party may by notice specify:
		

		
			 
		

		
			If to the Employer: 
		

		
			 
		

		
			RLI Corp.
		

		
			9025 N Lindbergh Drive 
		

		
			Peoria, Illinois 61615 
		

		
			Attention: Katie Kappes
		

		
			 
		

		
			If to the Trustee:
		

		
			 
		

		
			Principal Trust Company 
		

		
			1013 Centre Rd Ste 300
		

		
			Wilmington, DE 19899-1265 
		

		
			Attention: Trust Services
		

		
			 
		

		
			11.4Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity  of enforceability of the remaining provisions.
		

		
			 
		

		
			11.5Waiver. Failure of any party to insist at any time or times upon strict compliance with any provision of this Agreement shall not be a waiver of such provision at such time or any later time unless in a writing designated as a waiver and signed by or on behalf of the party against whom enforcement of the waiver is sought.
		

		
			 
		

		
			11.6Non-Alienation. No interest, right or claim in or to any part of the Trust or any payment therefrom shall be assignable, transferable or subject to sale, mortgage, pledge, hypothecation, commutation, anticipation, garnishment, attachment, execution, or levy of any kind, and the Trustee and the Committee shall not recognize any attempt to assign, transfer, sell, mortgage, pledge, hypothecate, commute, or anticipate the same, except to the extent required by law.
		

		
			 
		

		
			11.7Definitions. Unless the context of this Agreement clearly indicates otherwise, the terms defined in the Plan shall, when used herein, have the same meaning as in the Plan.
		

		
			 
		

		
			11.8Headings. The headings of sections are included solely for convenience of reference. If there is any conflict between such headings and the text of the Agreement, the text shall control.
		

		
			 
		

		
			11.9Construction of Language.  Whenever appropriate in this Agreement, words used in the singular may be read in the plural; words used in the plural may be read in the singular; and words importing the masculine gender shall be deemed equally to refer to the female gender or the neuter. Any reference to a section number shall refer to a section of this Agreement, unless otherwise indicated.
		

		
			 
		

		
			11.10Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

		 

		

			10

		

		

			 

		

IN WITNESS WHEREOF,  the undersigned have executed this Agreement to be effective as of January 1, 2020.
		

		
			 
		

		
			FOR THE EMPLOYER
		

		
			 
		

			
					
						 

				
	
					
						Employer:   RLI Corp.

				
	
					
						 

				
	
					
						 

				
	
					
						By:  Kathleen Kappes

				
	
					
						 

				
	
					
						Title:  Vice President, Human Resources

				
	
					
						 

				

		
			 
		

		
			 
		

		
			ACCEPTANCE OF THE TRUSTEE
		

		
			The undersigned hereby accepts appointment as Trustee hereunder and agrees to be bound by the terms of this Agreement.
		

		
			 
		

		
			DELAWARE CHARTER GUARANTEE & TRUST COMPANY, a Delaware corporation conducting business under the trade name of Principal Trust Company
		

		
			 
		

			
					
						 

				
	
					
						 

				
	
					
						By:  Debra Curran

				
	
					
						 

				
	
					
						Title:  Trust Services Specialist

				
	
					
						 

				

		
			 
		

		
			 
		

		 

		

			11Exhibit_102

		

			Exhibit 10.2

		

		

			 

		

		
			 
		

		
			RLI CORP.
		

		
			NONEMPLOYEE DIRECTORS 
		

		
			DEFERRED COMPENSATION PLAN
		

		
			(Restated as of January 1, 2020)
		

		
			

		 

		

		
			RLI CORP.
		

		
			 
		

		
			NONEMPLOYEE DIRECTORS
		

		
			DEFERRED COMPENSATION PLAN
		

		
			 
		

		
			ARTICLE 1
		

		
			 
		

		
			INTRODUCTION
		

		
			 
		

		
			1.1Establishment.  RLI Corp. established the RLI Corp. Nonemployee Directors Deferred Compensation Plan (“Plan”) effective January 1, 2005.  Prior to that date, RLI provided similar deferred compensation opportunities to its Directors under certain Prior Agreements.  All obligations under the Prior Agreements (including any predecessor arrangements) will be satisfied under the Prior Agreements, rather than under this Plan.  RLI restated the Plan, effective January 1, 2009, to comply with the requirements of the final regulations issued under Section 409A of the Code (“Section 409A”).  RLI thereafter amended the Plan, effective May 3, 2018, to clarify provisions with respect to the deferral of restricted stock units and to make clear how partial (or fractional) shares are paid in a single or final payment.  On [●], 2019, RLI further restated the Plan to expand the types of investment and distribution alternatives available to Participants.
		

		
			 
		

		
			This restatement applies to amounts deferred under the Plan on or after January 1, 2020 (the “Restatement Date”), and, to the extent permitted under Section 409A, to the payment of all amounts deferred under the Plan (whether such amounts were deferred before, on, or after the Restatement Date) that have not yet been distributed as of the Restatement Date.
		

		
			 
		

		
			The obligation of RLI to make payments under the Plan constitutes an unsecured (but legally enforceable) promise of RLI to make such payments and no person, including any Participant or Beneficiary, shall have any lien, prior claim or other security interest in any property of RLI as a result of the Plan.
		

		
			 
		

		
			1.2Purpose.  The purpose of the Plan is to attract and retain qualified Directors and to provide them with an opportunity to save on a pre-tax basis and accumulate tax-deferred income to achieve their financial goals. 
		

		
			 
		

		
			1.3Definitions.  When the following terms are used herein with initial capital letters, they shall have the following meanings:
		

		
			 
		

		
			1.3.1Account - the separate recordkeeping account (unfunded and unsecured) maintained for each Participant in connection with the Participant’s participation in the Plan, which shall consist of separate subaccounts relating to the Direct Compensation deferred by such Participant in each Year.
		

		
			 
		

		
			1.3.2Affiliate - a business entity which is under a “common control” with RLI or which is a member of an “affiliated service group” that includes RLI, as those terms are defined in Code § 414(b), (c) and (m). 
		

		
			 
		

		
			1.3.3Beneficiary - the person or persons designated as such under Section 5.2. 
		

		
			 
		

		
			1.3.4Board - the Board of Directors of RLI. 
		

		
			 
		

		
			1.3.5Code - the Internal Revenue Code of 1986, as the same may be amended from time to time. 
		

		
			 
		

		
			1.3.6Direct Compensation - the total amounts, as determined by RLI, payable to a Director for services as a Director, whether payable in cash or in RLI Stock (including restricted stock unit awards), but excluding amounts determined by RLI to be expense reimbursements. 
		

		
			 
		

		
			1.3.7Director - an individual who is a member of the Board but who is not an Employee of RLI or an Affiliate. 
		

		
			 
		

		
			1.3.8Employee - a common-law employee of RLI or an Affiliate (while it is an Affiliate). 
		

		
			 
		

		
			

		 

		

			2

		

		

		
			1.3.9ERISA - the Employee Retirement Income Security Act of 1974, as the same may be amended from time to time.
		

		
			 
		

		
			1.3.10Measurement Fund - any mutual fund or other investment vehicle designated by RLI from time to time to be available to Participants for purposes of measuring the earnings to be credited to Accounts pursuant to Section 3.4 of the Plan.  
		

		
			 
		

		
			1.3.11Participant - a Director who enrolls as a Participant in the Plan under Section 2.2. 
		

		
			 
		

		
			1.3.12Plan - the unfunded deferred compensation plan that is set forth in this document, as the same may be amended from time to time.  The name of the Plan is the “RLI Corp. Nonemployee Directors Deferred Compensation Plan.” 
		

		
			 
		

		
			1.3.13Prior Agreement - an individual agreement entered into by a Director and RLI to provide deferred compensation opportunities to the Director.  In certain cases, such Prior Agreement was a successor to an earlier arrangement known as the Director Non-Qualified Deferred Compensation Plan. 
		

		
			 
		

		
			1.3.14RLI - RLI Corp. and any Successor Corporation. 
		

		
			 
		

		
			1.3.15RLI Stock - the common stock of RLI. 
		

		
			 
		

		
			1.3.16Successor Corporation - any entity that succeeds to the business of RLI through merger, consolidation, acquisition of all or substantially all of its assets, or any other means and which elects before or within a reasonable time after such succession, by appropriate action evidenced in writing, to continue the Plan. 
		

		
			 
		

		
			1.3.17Termination of Service - the Participant’s departure from the Board, unless the Director then becomes an Employee.  Notwithstanding the foregoing, a “Termination of Service” will be deemed not to have occurred if such departure would not be considered a “separation from service” under Code § 409A(a)(2)(A)(i) or any regulations or other guidance issued by the Treasury Department under Code § 409A.  In such case, a Termination of Service will be deemed to have occurred at the earliest time allowed under Code § 409A. 
		

		
			 
		

		
			1.3.18Vested - nonforfeitable. 
		

		
			 
		

		
			1.3.19Year - the calendar year.
		

		
			 
		

		
			1.4Nonqualified Deferred Compensation.  The Plan is a nonqualified deferred compensation plan subject to Code § 409A.  To the extent any provision of the Plan does not satisfy the requirements contained in Code § 409A or in any regulations or other guidance issued by the Treasury Department under Code § 409A, such provision will be applied in a manner consistent with such requirements, regulations or guidance, notwithstanding any contrary provision of the Plan or any inconsistent election made by a Participant.
		

		
			 
		

		
			ARTICLE 2
		

		
			 
		

		
			PARTICIPATION
		

		
			 
		

		
			2.1Eligibility.  All Directors will be eligible to participate in the Plan.  A Director may continue to participate in the Plan for so long as the Plan remains in effect and remains a Director. 
		

		
			 
		

		
			2.2Enrollment.  A Director will be allowed to enroll in the Plan during the thirty (30) day period coinciding with and following the date the individual becomes a Director.  Such an enrollment will be effective as of the date it is made.  Thereafter, a Director may elect to enroll for a Year during the enrollment period established by RLI for such Year, which enrollment period will be a period of not less than thirty (30) days that ends not later than the last day of the prior Year.  Enrollment must be made in such manner and in accordance with such rules as may be prescribed for 

		 

		

			3

		

this purpose by RLI (including by means of a voice response or other electronic system under circumstances authorized by RLI). 
		

		
			 
		

		
			2.3Direct Compensation Deferrals.
		

		
			 
		

		
			2.3.1Elections.  A Director may elect to reduce any annual retainers, committee fees, and, if applicable, committee chair fees earned in the applicable Year (“Direct Compensation”) by any whole percent, but not more than one-hundred percent (100%).  A separate reduction percentage may apply to the portion of Direct Compensation that is payable in cash and to the portion that is payable in RLI Stock.  A Director may separately elect to defer the receipt of RLI Stock otherwise issuable upon the vesting of any restricted stock unit awards that are granted to such Director in the applicable Year, and such election shall apply to all Years over which such restricted stock award vests.    An election must be made in such manner and in accordance with such rules as may be prescribed for this purpose by RLI (including by means of a voice response or other electronic system under circumstances authorized by RLI).  An election must be made as part of the enrollment described in Section 2.2.
		

		
			 
		

		
			2.3.2Elections Relate to Services Performed After the Election and Are Irrevocable.   An election will apply to all Direct Compensation attributable to services performed in a given Year, regardless of when such Direct Compensation would otherwise be provided to the Participant.  For example, an election to defer an annual retainer attributable to services performed in a given Year but payable in the next Year, must be made as part of the enrollment election made prior to the Year in which the services are performed.  However, an election will only be effective to defer Direct Compensation earned after the election is made, and not before.  For example, an election made in connection with a mid-year enrollment under Section 2.2 will only be effective for Direct Compensation attributable to services performed on and after the effective date of the enrollment as provided in Section 2.2.   An election to defer the shares of RLI Stock otherwise issuable upon the vesting of a restricted stock unit award will apply only to restricted stock unit awards granted in the applicable Year. An election will apply solely with respect to the given Year - that is, an election will not automatically be carried over and applied to the next Year.
		

		
			 
		

		
			In general, an election shall become irrevocable as of the last day of the enrollment period applicable to it.  However, if a Participant incurs an “unforeseeable emergency,” as defined in Section 4.8(h), or becomes entitled to receive a hardship distribution pursuant to Treas. Reg. § 1.401(k)-1(d)(3) after the election otherwise becomes irrevocable, the election shall be cancelled as of the date on which the Participant is determined to have incurred the unforeseeable emergency or becomes eligible to receive the hardship distribution and no further deferrals will be made under it.  
		

		
			 
		

		
			ARTICLE 3
		

		
			 
		

		
			ACCOUNTS
		

		
			 
		

		
			3.1Accounts.   RLI shall establish and maintain a separate Account for each Participant.  The Account shall be for recordkeeping purposes only and shall not represent a trust fund or other segregation of assets for the benefit of the Participant.  A separate subaccount shall be established within each Account to represent the amount deferred by a Participant for each Year in which the Participant defers Direct Compensation under the Plan.
		

		
			 
		

		
			3.2Credits to Accounts.  Each Participant’s Account shall be credited from time to time as provided in this Article 3.
		

		
			 
		

		
			3.3Direct Compensation Deferrals.  The amount of each Direct Compensation cash payment or RLI Stock grant (including restricted stock units) which the Participant has elected to defer under the Plan shall be credited to the Participant’s Account on, or as soon as administratively practicable after, the date it would otherwise be payable to the Participant.  
		

		
			 
		

		
			3.4Hypothetical Investment Funds.  A Participant shall have the right to direct the manner in which earnings are credited to the portion of the Participant’s Account relating to amounts deferred on or after January 1, 2020 by electing to have the Account notionally invested, in percentages elected by the Participant, in hypothetical investment 

		 

		

			4

		

options, the value of which shall track either RLI Stock or any of the Measurement Funds.  A Participant shall make such elections in such manner and in accordance with such rules as may be prescribed for this purpose by RLI (including by means of a voice response or other electronic system under circumstances authorized by RLI).  The portion of each Participant’s Account relating to amounts deferred prior to January 1, 2020 shall be notionally invested in RLI Stock.
		

		
			 
		

		
			3.4.1To the extent a deferral is notionally invested in RLI Stock, the Participant’s Account shall be credited with a hypothetical number of shares of RLI Stock equal to the number of full and fractional shares that could be purchased with such amount on, or as soon as administratively feasible after, the date such amount is credited to the Participant’s Account. The Participant’s Account shall be credited with additional RLI Stock credits, equal to the number of full and fractional shares of RLI Stock that could be purchased with any cash dividends which would be payable on the RLI Stock credited to the Participant’s Account. For this purposes, the share price on, or as soon as administratively practicable after, the date the dividend is paid will be used. The Account also will be adjusted for any stock split, redemption or similar event, in a manner determined to be reasonable by RLI.
		

		
			 
		

		
			3.4.2To the extent a deferral is notionally invested in a Measurement Fund, the Participant’s Account shall be credited with a hypothetical number of shares of such Measurement Fund, equal to the number of full and fractional shares that could be purchased with such amount on, or as soon as administratively practicable after, the date such amount is credited to the Participant’s Account.
		

		
			 
		

		
			3.4.3Notwithstanding any other provision of this Plan that may be interpreted to the contrary, the RLI Stock and the Measurement Fund(s) are to be used for measurement purposes only, and the allocation of each Participant’s Account to RLI Stock or to a Measurement Fund, the calculation of additional amounts, and the crediting or debiting of such additional amounts to such Participant’s Account shall not be considered or construed in any manner as an actual investment of such Participant’s Account in RLI Stock or any Measurement Fund.
		

		
			 
		

		
			3.5Charges to Accounts.  As of the date any Plan benefit measured by the Account is paid to the Participant or the Participant’s Beneficiary, the Account shall be charged with the amount of such benefit payment.
		

		
			 
		

		
			ARTICLE 4
		

		
			 
		

		
			BENEFITS
		

		
			 
		

		
			4.1Vesting.   The Participant’s Account shall be fully (100%) Vested.
		

		
			 
		

		
			4.2Payment of Plan Benefits – Amounts Deferred Prior to January 1, 2020--General Rule.  If the Participant has an Account balance that relates to amounts deferred in Years prior to January 1, 2020, RLI shall pay that balance to the Participant, according to their enrollment election on file, in five (5), ten (10) or fifteen (15) annual installments, commencing after the Participant’s Termination of Service, as follows:
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			Time.  The first installment shall be paid on the January 1 following the Year in which the Participant’s Termination of Service occurs. The remaining installments shall be paid on each subsequent January 1.

		
			 
		

			
	
			
				 (b)
			

			
	
			
			Amount.  The amount of each installment shall be determined using a “fractional” method – by multiplying the Participant’s Account balance immediately before the installment payment date by a fraction, the numerator of which is one and the denominator of which is the number of installments remaining (including the installment in question).

		
			 
		

		
			4.3Payment of Plan Benefits – Amounts Deferred On or After January 1, 2020--General Rule.  If the Participant has an Account balance that relates to amounts deferred in Years beginning on or after January 1, 2020, RLI shall pay that balance to the Participant as follows:
		

		
			 
		

		
			

		 

		

			5

		

		

			
	
			
				 (a)
			

			
	
			
			Time.  At the time the Participant elects to defer Direct Compensation earned in a particular Year, the Participant shall elect to receive a distribution of the subaccount relating to such deferrals on or beginning on any of the following distribution dates (the applicable date, a “Distribution Date”): (i) January 1st of the Year following the Participant’s Termination of Service, (ii) January 1st of any Year designated by the Participant that is not less than two years and not more than 20 years after the beginning of the Year to which such deferral relates or (iii) the earlier of (A) January 1st of the Year following the Participant’s Termination of Service and (B) January 1st of any Year designated by the Participant that is not less than two years and not more than 20 years after the beginning of the Year to which such deferral relates.

		
			 
		

			
	
			
				 (b)
			

			
	
			
			Form of Payment.  At the time the Participant elects to defer Direct Compensation earned in a particular Year, the Participant shall elect to receive the distribution of the subaccount relating to such deferrals in one of the following forms of distribution: (i) a lump sum payment or (ii) annual installments over a period of not less than five years and not more than 15 years. 

		
			 
		

			
	
			
				 (c)
			

			
	
			
			Payment of Installments.  If the Participant elects to receive a distribution in the form of installments, the first installment shall be paid on the Distribution Date elected in accordance with Section 4.3(a), and the remaining installments shall be paid on January 1st of each subsequent Year until the applicable subaccount has been distributed in its entirety.  A distribution that is paid in the form of installments shall be considered a single payment for purposes of Section 409A of the Code.  The amount of each installment shall be determined using a “fractional” method – by multiplying the Participant’s Account balance immediately before the installment payment date by a fraction, the numerator of which is one and the denominator of which is the number of installments remaining (including the installment in question). If the distribution is made in shares of RLI Stock pursuant to Section 4.6.1, the result shall be rounded down to the next lower full share of RLI Stock, except for the final installment, which shall distribute the final shares and pay cash in lieu of any partial share

		
			 
		

		
			4.4Changing Payment Elections.
		

		
			 
		

		
			4.4.1General Rule.  A Participant may elect to change the Distribution Date or the form of distribution (i.e., from a lump sum to installments, from installments to a lump sum or the number of installments), subject to the rules below. Any such election must be made in such manner and in accordance with such rules as may be prescribed for this purpose by RLI (including by means of a voice response or other electronic system under circumstances authorized by RLI).
		

		
			 
		

		
			4.4.2Subsequent Election.  A Participant may change the Distribution Date or the form of distribution in accordance with the following rules:
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			The election must be received by RLI in writing and in proper form and must not take effect for at least 12 months from the date on which it is submitted to RLI; 

		
			 
		

			
	
			
				 (b)
			

			
	
			
			The election must be submitted to RLI at least 12 months prior to the previously elected Distribution Date; and  

		
			 
		

			
	
			
				 (c)
			

			
	
			
			The Distribution Date must be delayed at least five (5) years from the previously elected Distribution Date.

		
			 
		

		
			4.5Special Rules.
		

		
			 
		

		
			4.5.1Specified Employee Exception.  If a Participant becomes an Employee and subsequently has a “separation of service” (within the meaning of Code § 409A(a)(2)(A)(i)), the initial installment (or lump-sum payment, if applicable) shall be delayed to the extent necessary to comply with Code § 409A(a)(2)(B)(i) or any regulations or other guidance issued by the Treasury Department thereunder. 
		

		
			 
		

		
			

		 

		

			6

		

		

		
			4.5.2Acceleration of Small Amounts.  Any contrary provision or election notwithstanding, if the Participant’s Account balance is less than one hundred thousand dollars ($100,000) as of the date installments are to commence, the Account shall be paid to the Participant in a single lump-sum, as full settlement of all benefits due under the Plan; provided that, for purposes of applying the one hundred thousand dollar ($100,000) acceleration limit, all nonqualified deferred compensation amounts payable to the Participant by RLI and its Affiliates shall be aggregated if and to the extent required under Code § 409A or any regulations or other guidance issued by the Treasury Department thereunder.
		

		
			 
		

		
			4.6Medium of Payments.  
		

		
			 
		

		
			4.6.1RLI Stock.  To the extent a Participant’s Account is deemed to be invested in RLI Stock, the payment of the Account shall be made in whole shares of RLI Stock, except for a cash payment in lieu of a partial share as may be necessary. Unless the shares have been registered under the Securities Act of 1933 (the “Act”), are otherwise exempt from the registration requirements of the Act, are the subject of a favorable no action letter issued by the Securities and Exchange Commission, or are the subject of an opinion of counsel acceptable to RLI to the effect that such shares are exempt from the registration requirements of the Act, the transfer of such shares shall be subject to the provisions of Rule 144 of the Act, as the same may be amended from time to time. 
		

		
			 
		

		
			4.6.2Measurement Funds.  To the extent a Participant’s Account is deemed to be invested in a Measurement Fund, the payment of the Account shall be made in cash.    
		

		
			 
		

		
			4.7Delay in Distributions.  A payment under the Plan may be delayed by RLI under any of the following circumstances so long as all payments to similarly situated Participants are treated on a reasonably consistent basis:
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			RLI reasonably anticipates that the making of the payment will violate Federal securities laws or other applicable law, provided that the payment is made at the earliest date at which RLI reasonably anticipates that the making of the payment will not cause such violation.  

		
			 
		

			
	
			
				 (b)
			

			
	
			
			Upon such other events as determined by RLI and according to such terms as are consistent with Section 409A or are prescribed by the Commissioner of Internal Revenue.

		
			 
		

		
			4.8Acceleration of Distributions.  RLI may, in its discretion, distribute all or a portion of a participant’s Accounts at an earlier time and in a different form than specified as otherwise provided in this Article 4, under the circumstances described below:
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			As may be necessary to fulfill a Domestic Relations Order.  Distributions pursuant to a Domestic Relations Order shall be made according to administrative procedures established by RLI.

		
			 
		

			
	
			
				 (b)
			

			
	
			
			To the extent reasonably necessary to avoid the violation of ethics laws or conflict of interest laws pursuant to Section 1.409A-3(j)(ii) of the Treasury regulations.

		
			 
		

			
	
			
				 (c)
			

			
	
			
			To pay FICA on amounts deferred under the Plan and the income tax resulting from such payment.

		
			 
		

			
	
			
				 (d)
			

			
	
			
			To pay the amount required to be included in income as a result of the Plan’s failure to comply with Section 409A.

		
			 
		

			
	
			
				 (e)
			

			
	
			
			If RLI determines, in its discretion, that it is advisable to liquidate the Plan in connection with a termination of the Plan subject to the requirements of Section 409A.

		
			 
		

			
	
			
				 (f)
			

			
	
			
			As satisfaction of a debt of the Participant to RLI or an Affiliate, where such debt is incurred in the ordinary course of the service relationship between RLI or the Affiliate and the Participant, the entire amount of the reduction in any Year does not exceed $5,000, and the reduction is 

		 

		

			7

		

	made at the same time and in the same amount as the debt otherwise would have been due and collected from the Participant.

		
			 
		

			
	
			
				 (g)
			

			
	
			
			To pay state, local or foreign tax obligations that may arise with respect to amounts deferred under the Plan and the income tax resulting from such payment.

		
			 
		

			
	
			
				 (h)
			

			
	
			
			If the Participant has an unforeseeable emergency.  For these purposes an “unforeseeable emergency” is a severe financial hardship to the Participant, resulting from an illness or accident of the Participant, the Participant’s spouse, the Beneficiary, or the Participant’s dependent (as defined in Section 152, without regard to Section 152(b)(1), (b)(2), and (d)(1)(B) of the Code); loss of the Participant’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance); or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.  For example, the imminent foreclosure of or eviction from the Participant’s primary residence may constitute an unforeseeable emergency.  In addition, the need to pay for medical expenses, including non-refundable deductibles, as well as for the cost of prescription drug medication, may constitute an unforeseeable emergency.  Finally, the need to pay for funeral expenses of a spouse, Beneficiary, or a dependent (as defined in Section 152, without regard to 152(b)(1), (b)(2),  and (d)(1)(B) of the Code) may also constitute an unforeseeable emergency.  Except as otherwise provided in this paragraph (h), the purchase of a home and the payment of college tuition are not unforeseeable emergencies.  Whether a Participant is faced with an unforeseeable emergency permitting a distribution under this paragraph (h) is to be determined based on the relevant facts and circumstances of each case, but, in any case a distribution on account of an unforeseeable emergency may not be made to the extent that such emergency is or may be relieved through reimbursement or compensation from insurance or otherwise, by liquidation of the Participant’s assets, to the extent the liquidation of such assets would not cause severe financial hardship, or by cessation of elective deferrals.

		
			 
		

		
			Distributions because of an unforeseeable emergency must be limited to the amount reasonably necessary to satisfy the emergency need (which may include amounts necessary to pay any Federal, state, local, or foreign income taxes or penalties reasonably anticipated to result from the distribution).  A determination of the amounts reasonably necessary to satisfy the emergency need must take into account any additional compensation that is available due to cancellation of the Participant’s election as a result of this paragraph (h).
		

		
			 
		

		
			Notwithstanding anything in this Section 4.8 to the contrary, except for a Participant’s election to request a distribution due to an unforeseeable emergency under paragraph (h), above (which the Participant, in the Participant’s discretion, may elect to make or not make), RLI shall not provide the Participant with discretion or a direct or indirect election regarding whether a payment is accelerated pursuant to this Section 4.8.
		

		
			 
		

		
			4.9When a Payment is Deemed to be Made.  Any payment that is due to be distributed as of a particular date pursuant to the provisions of the Plan, will be deemed to be distributed as of that date if it is distributed on such date or a later date within the same calendar year, or, if later, by the 15th day of the third calendar month following the date, and the Participant is not permitted, directly or indirectly, to designate the calendar year of payment.  Further, a payment will be treated as made on a date if it is made no earlier than 30 days before the date, and the Participant is not permitted, directly or indirectly, to designate the calendar year of payment.  For purposes of the foregoing, if the payment is required to be made during a period of time, the specified date is treated as the first day of the period of time.
		

		
			
		

		
			

		 

		

			8

		

		

		
			ARTICLE 5
		

		
			 
		

		
			DEATH BENEFITS
		

		
			 
		

		
			5.1Death Benefits.
		

		
			 
		

		
			5.1.1 Benefits When Participant Dies Before Commencement of Payments.  If the Participant dies before payment of the Participant’s Account has commenced, the Participant’s Account balance shall be paid to the Participant’s Beneficiary in a lump sum payment within 90 days after the date of death. 
		

		
			 
		

		
			5.1.2Benefits When Participant Dies After Commencement of Payments.  If the Participant dies after installments commence and the Participant has an Account balance at death, the remaining Account balance shall be paid to the Participant’s Beneficiary in a lump sum payment within 90 days after the date of death.   
		

		
			 
		

		
			5.1.3Medium of Payments.  To the extent a Participant’s Account is deemed to be invested in RLI Stock, the payment of the Account shall be made in whole shares of RLI Stock, except for a cash payment in lieu of a partial share as may be necessary. To the extent a Participant’s Account is deemed to be invested in a Measurement Fund, the payment of the Account shall be made in cash.
		

		
			 
		

		
			5.1.4Acceleration of Small Amounts.  Any contrary provision or election notwithstanding, if the amount payable to the Beneficiary is less than one hundred thousand dollars ($100,000) as of the date installments are to commence, the benefit shall be paid to the Beneficiary in a single lump-sum, as full settlement of all benefits due under the Plan, subject, however, to any limitation on such acceleration under Code § 409A or any regulations or other guidance issued by the Treasury Department thereunder.
		

		
			 
		

		
			5.2Designation of Beneficiary.
		

		
			 
		

		
			5.2.1Persons Eligible to Designate.  Any Participant may designate a Beneficiary to receive any amount payable under the Plan as a result of the Participant’s death, provided that the Beneficiary survives the Participant.  The Beneficiary may be one or more persons, natural or otherwise.  By way of illustration, but not by way of limitation, the Beneficiary may be an individual, trustee, executor, or administrator.  A Participant may also change or revoke a designation previously made, without the consent of any Beneficiary named therein. 
		

		
			 
		

		
			5.2.2Form and Method of Designation.  Any designation or a revocation of a prior designation of Beneficiary shall be in writing on a form acceptable to RLI and shall be filed with RLI.  RLI and all other parties involved in making payment to a Beneficiary may rely on the latest Beneficiary designation on file with RLI at the time of payment or may make payment pursuant to Section 5.2.3 if an effective designation is not on file, shall be fully protected in doing so, and shall have no liability whatsoever to any person making claim for such payment under a subsequently filed designation of Beneficiary or for any other reason.
		

		
			 
		

		
			5.2.3No Effective Designation.  If there is not on file with RLI an effective designation of Beneficiary by a deceased Participant, the Beneficiary shall be the person or persons surviving the Participant in the first of the following classes in which there is a survivor, share and share alike:
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			The Participant’s spouse.  (A “spouse” is a person to whom the Participant is legally married, including a common-law spouse if the marriage was entered into in a state that recognizes common-law marriages and RLI has received acceptable proof and/or certification of common-law married status.)

		
			 
		

			
	
			
				 (b)
			

			
	
			
			The Participant’s then living descendants, per stirpes.

		
			 
		

			
	
			
				 (c)
			

			
	
			
			The individuals entitled to inherit the Participant’s property under the law of the state in which the Participant resides immediately before the Participant’s death, in the proportions determined under such law.

		
			 
		

		
			

		 

		

			9

		

		

		
			Determination of the identity of the Beneficiary in each case shall be made by RLI.
		

		
			 
		

		
			5.2.4Successor Beneficiary.  If a Beneficiary who survives the Participant subsequently dies before receiving the complete payment to which the Beneficiary was entitled, the successor Beneficiary, determined in accordance with the provisions of this section, shall be entitled to the payments remaining.  The successor Beneficiary shall be the person or persons surviving the Beneficiary in the first of the following classes in which there is a survivor, share and share alike:
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			The Beneficiary’s spouse. (A “spouse” is a person to whom the Beneficiary is legally married, including a common-law spouse if the marriage was entered into in a state that recognizes common-law marriages and RLI has received acceptable proof and/or certification of common-law married status.)

		
			 
		

			
	
			
				 (b)
			

			
	
			
			The Beneficiary’s then living descendants, per stirpes.

		
			 
		

			
	
			
				 (c)
			

			
	
			
			The individuals entitled to inherit the Beneficiary’s property under the law of the state in which the Beneficiary resides immediately before the Beneficiary’s death, in the proportions determined under such law.

		
			 
		

		
			ARTICLE 6
		

		
			 
		

		
			PAYMENT PROCEDURES
		

		
			 
		

		
			6.1Application for Benefits.  Benefits shall be paid to Participants automatically (without a written request) at the time and in the manner specified in the Plan.  Benefits shall be paid to a Beneficiary upon RLI’s receipt of a written request for the benefits, including appropriate proof of the Participant’s death and the Beneficiary’s identity and right to payment. 
		

		
			 
		

		
			6.2Deferral of Payment.   If there is a dispute regarding a Plan benefit, RLI, in its sole discretion, may defer payment of the benefit until the dispute has been resolved. 
		

		
			 
		

		
			ARTICLE 7
		

		
			 
		

		
			ADMINISTRATION
		

		
			 
		

		
			7.1Administrator.  RLI shall be the administrator of the Plan.  RLI shall control and manage the administration and operation of the Plan and shall make all decisions and determinations incident thereto.  Except with respect to the ordinary day-to-day administration of the Plan, action on behalf of RLI must be taken by one of the following:
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			The Board; or 

		
			 
		

			
	
			
				 (b)
			

			
	
			
			The Nominating/Corporate Governance Committee of the Board.

		
			 
		

		
			7.1.1Delegation.  The ordinary day-to-day administration of the Plan may be delegated by the chief executive officer of RLI to an individual or a committee.  Such individual or committee shall have the authority to delegate or redelegate to one or more persons, jointly or severally, such functions assigned to such individual or committee as such individual or committee may from time to time deem advisable. 
		

		
			 
		

		
			7.1.2Automatic Removal.  If any individual or committee member to whom responsibility under the Plan is allocated is a director, officer or employee of RLI or an Affiliate when responsibility is so allocated, then such individual shall be automatically removed as a member of a committee at the earliest time such individual ceases to be a director, officer or employee of RLI or an Affiliate.  This removal shall occur automatically and without any requirement for action by RLI or any notice to the individual so removed. 
		

		
			 
		

		
			7.1.3Conflict of Interest.  If any individual or committee member to whom responsibility under the Plan is allocated is also a Participant or Beneficiary, such individual shall have no authority as such member with 

		 

		

			10

		

respect to any matter specifically affecting such Participant or Beneficiary’s individual interest hereunder (as distinguished from the interests of all Participants and Beneficiaries or a broad class of Participants and Beneficiaries), all such authority being reserved exclusively to the other members to the exclusion of such Participant or Beneficiary, and such Participant or Beneficiary shall act only in an individual capacity in connection with any such matter. 
		

		
			 
		

		
			7.1.4Binding Effect.  The determination of the Board or the Nominating/Corporate Governance Committee of the Board in any matter within its authority shall be binding and conclusive upon RLI and all persons having any right or benefit under the Plan. 
		

		
			 
		

		
			7.1.5Third-Party Service Providers.  RLI may from time to time appoint or contract with an administrator, recordkeeper or other third-party service provider for the Plan.  Any such administrator, recordkeeper or other third-party service provider will serve in a nondiscretionary capacity and will act in accordance with directions given and procedures established by RLI.
		

		
			 
		

		
			7.2Benefits Not Transferable.  No Participant or Beneficiary shall have the power to transmit, alienate, dispose of, pledge or encumber any benefit payable under the Plan before its actual payment to the Participant or Beneficiary.  Any such effort by a Participant or Beneficiary to convey any interest in the Plan shall not be given effect under the Plan.  No benefit payable under the Plan shall be subject to attachment, garnishment, execution following judgment or other legal process before its actual payment to the Participant or Beneficiary. 
		

		
			 
		

		
			7.3Benefits Not Secured.  The rights of each Participant and Beneficiary shall be solely those of an unsecured, general creditor of RLI.  No Participant or Beneficiary shall have any lien, prior claim or other security interest in any property of RLI. 
		

		
			 
		

		
			7.4RLI’s Obligations.  RLI shall provide the benefits under the Plan.  RLI’s obligation may be satisfied by distributions from a trust fund created and maintained by RLI, in its sole discretion, for such purpose.  However, the assets of any such trust fund shall be subject to claims by the general creditors of RLI in the event RLI is (i) unable to pay its debts as they become due, or (ii) is subject to a pending proceeding as a debtor under the United States Bankruptcy Code. 
		

		
			 
		

		
			7.5Withholding Taxes.  RLI shall have the right to withhold (and transmit to the proper taxing authority) such federal, state or local taxes as it may be required to withhold by applicable laws.  Such taxes may be withheld from any benefits due under the Plan or from any other compensation to which the Participant is entitled from RLI and its Affiliates. 
		

		
			 
		

		
			7.6Service of Process.  The chief executive officer of RLI is designated as the appropriate and exclusive agent for the receipt of service of process directed to the Plan in any legal proceeding, including arbitration, involving the Plan. 
		

		
			 
		

		
			7.7Limitation on Liability.  Neither RLI’s officers nor any member of its Board nor any individual or committee to whom RLI delegates responsibility under the Plan in any way secures or guarantees the payment of any benefit or amount which may become due and payable hereunder to or with respect to any Participant.  Each Participant and other person entitled at any time to payments hereunder shall look solely to the assets of RLI for such payments as an unsecured, general creditor.  After benefits have been paid to or with respect to a Participant and such payment purports to cover in full the benefit hereunder, such former Participant or other person(s), as the case may be, shall have no further right or interest in the other assets of RLI in connection with the Plan.  Neither RLI nor any of its officers nor any member of its Board nor any individual or committee to whom RLI delegates responsibility under the Plan shall be under any liability or responsibility for failure to effect any of the objectives or purposes of the Plan by reason of the insolvency of RLI.
		

		
			
		

		
			

		 

		

			11

		

		

		
			ARTICLE 8
		

		
			 
		

		
			AMENDMENT AND TERMINATION
		

		
			 
		

		
			8.1Amendment.  RLI reserves the power to amend the Plan either prospectively or retroactively or both, in any respect, by action of its Board; provided that, no amendment shall be effective to reduce or divest benefits payable with respect to the Account of any Participant or Beneficiary without consent.  No amendment of the Plan shall be effective unless it is in writing and signed on behalf of RLI by a person authorized to execute such writing.  No oral representation concerning the interpretation or effect of the Plan shall be effective to amend the Plan. 
		

		
			 
		

		
			8.2Termination.  RLI reserves the right to terminate the Plan at any time by action of its Board; provided that, the termination of the Plan shall not reduce or divest benefits payable with respect to the Account of any Participant or Beneficiary or negate the Participant’s or Beneficiary’s rights with respect to such benefits.  Any such termination will be done in accordance with the requirements of Section 409A.
		

		
			 
		

		
			ARTICLE 9
		

		
			 
		

		
			MISCELLANEOUS
		

		
			 
		

		
			9.1Effect on Other Plans.  This Plan shall not alter, enlarge or diminish any person’s rights or obligations under any other benefit plan maintained by RLI or any Affiliate. 
		

		
			 
		

		
			9.2Effect on Service.  Neither the terms of this Plan nor the benefits hereunder nor the continuance thereof shall be a term of the service of any Director.  RLI shall not be obliged to continue the Plan.  The terms of this Plan shall not give any Director the right to continue serving as a member of the Board, nor shall it create any obligation on the part of the Board to nominate any Director for reelection by RLI’s stockholders. 
		

		
			 
		

		
			9.3Disqualification.  Notwithstanding any other provision of the Plan or any designation made under the Plan, any individual who feloniously and intentionally kills a Participant shall be deemed for all purposes of the Plan and all elections and designations made under the Plan to have died before such Participant.  A final judgment of conviction of felonious and intentional killing is conclusive for this purpose.  In the absence of a conviction of felonious and intentional killing, RLI shall determine whether the killing was felonious and intentional for this purpose.
		

		
			 
		

		
			9.4Rules of Document Construction.  Whenever appropriate, words used herein in the singular may be read in the plural, or words used herein in the plural may be read in the singular; and the words “hereof,” “herein” or “hereunder” or other similar compounds of the word “here” shall mean and refer to the entire Plan and not to any particular article, section or paragraph of the Plan unless the context clearly indicates to the contrary.  The titles given to the various articles and sections of the Plan are inserted for convenience of reference only and are not part of the Plan, and they shall not be considered in determining the purpose, meaning or intent of any provision hereof.  Written notification under the Plan shall include such other methods (for example, facsimile or e-mail) as RLI, in its sole discretion, may authorize from time to time. 
		

		
			 
		

		
			9.5References to Laws.  Any reference in the Plan to a statute shall be considered also to mean and refer to the applicable regulations for that statute. Any reference in the Plan to a statute or regulation shall be considered also to mean and refer to any subsequent amendment or replacement of that statute or regulation. 
		

		
			 
		

		
			9.6Choice of Law.  The Plan has been executed in the State of Illinois and has been drawn in conformity to the laws of that state and shall, except to the extent that federal law is controlling, be construed and enforced in accordance with the laws of the State of Illinois (without regard to its conflict of law principles). 
		

		
			 
		

		
			9.7Binding Effect.   The Plan shall be binding upon and inure to the benefit of the successors and assigns of RLI, and the Beneficiaries, personal representatives and heirs of the Participant.
		

		
			 
		

		
			
		

		
			

		 

		

			12

		

		

		
			****Signature Page to RLI Corp. Nonemployee Directors Deferred Compensation Plan 
		

		
			Restated 1/1/2020 ****
		

		
			 
		

		
			IN WITNESS WHEREOF, RLI Corp. has caused the Plan to be executed by its duly authorized officers as of the 13th day of November, 2019.
		

		
			 
		

		
			 
		

			
					
						 

				
	
					
						RLI Corp.

				
	
					
						 

				
	
					
						 

				
	
					
						By:  Jonathan E. Michael

				
	
					
						 

				
	
					
						Title:  Chairman & CEO

				
	
					
						 

				

		
			 
		

		 

		

			13

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