Document:

Exhibit
4.1

 

 

	
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  INCORPORATED UNDER THE LAWS OF BERMUDA

  	
   

  	
  SEE REVERSE SIDE

  FOR CERTAIN DEFINITIONS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  CUSIP 000000 00 0

  

 

THIS
CERTIFIES THAT

 

 

 

is the
owner of

 

 

FULLY PAID AND
NON-ASSESSABLE COMMON SHARES CLASS A, $0.01 PAR VALUE, OF

 

ONEBEACON INSURANCE GROUP, LTD.

 

transferable
on the books of the Corporation by the holder hereof in person or by Attorney
upon surrender of this certificate properly endorsed. This certificate is not
valid until countersigned and registered by the Transfer Agent and Registrar.

 

IN
WITNESS WHEREOF, the said Corporation has caused this certificate to be signed
by facsimile signatures of its duly authorized officers.

 

Dated:

 

	
   

  	
  COUNTERSIGNED
  AND REGISTERED:

  WELLS FARGO BANK, N.A.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  TRANSFER
  AGENT

  AND REGISTRAR

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BY

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  AUTHORIZED SIGNATURE

  
								

 

	
  /s/ Thomas L. Forsyth

  	
   

  	
  /s/ T. Michael Miller

  
	
  SECRETARY

  	
   

  	
  PRESIDENT AND CHIEF EXECUTIVE OFFICER

  

 

AMERICAN FINANCIAL PRINTING
INCORPORATED – MINNEAPOLIS

 

 

The following
abbreviations, when used in the inscription on the face of this certificate,
shall be construed as though they were written out in full according to
applicable laws or regulations:

 

 

	
   

  	
   

  	
   

  	
  UTMA –                        
  Custodian 

  
	
  TEN COM

  	
  –

  	
  as tenants in common

  	
   

  	
                       (Cust)                             (Minor)

  
	
   

  	
   

  	
   

  	
   

  	
  under Uniform Transfers to
  Minors

  
	
  TEN ENT

  	
  –

  	
  as tenants by entireties

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Act 

  
	
  JT YEN

  	
  –

  	
  as joint tenants with right
  of survivorship

  	
   

  	
  (State)

  
	
   

  	
   

  	
  and not as tenants in
  common

  	
   

  	
   

  
	
  Additional abbreviations
  may also be used though not in above list.

  

 

For value
received                       
hereby sell, assign, and transfer unto

 

	
  PLEASE INSERT SOCIAL
  SECURITY OR OTHER

            IDENTIFYING
  NUMBER OF ASSIGNEE

  
	
   

  
	
   

  
	
  (PLEASE PRINT OR TYPEWRITE
  NAME AND ADDRESS INCLUDING ZIP CODE OF ASSIGNEE)

  
	
   

  

 

                                                                                                                                                                                                   Shares
of the capital stock represented by the within Certificate, and do hereby
irrevocably constitute and appoint                                                                                                                                                                                                         Attorney
to
transfer the said stock on the books of the within-named Corporation with full
power of substitution in the premises.

 

 

	
  Dated

  	
   

  	
   

  	
  X

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  X

  
	
   

  	
   

  	
  NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST
  CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY
  PARTICULAR WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.

  

 

SIGNATURE GUARANTEED

 

ALL GUARANTEES MUST BE
MADE BY A FINANCIAL INSTITUTION (SUCH AS A BANK OR BROKER, WHICH IS A PARTICIPANT
IN THE SECURITIES TRANSFER AGENTS MEDALLION PROGRAM (“STAMP”). THE NEW YORK
STOCK EXCHANGE, INC. MEDALLION SIGNATURE PROGRAM (“MSP”), OR THE STOCK
EXCHANGES MEDALLION PROGRAM (“SEMP”) AND MUST NOT BE DATED. GUARANTEES BY A
NOTARY PUBLIC ARE NOT ACCEPTABLE.Exhibit 10.4.3

OneBeacon Long-Term Incentive Plan

 

1.             PURPOSE

The
purpose of the OneBeacon Long-Term Incentive Plan (the “Plan”) is to advance the
interests of OneBeacon Insurance Group, Ltd. (the “Company”) and its stockholders
by providing long-term incentives to certain executives, consultants and
directors of the Company and of its subsidiaries.

2.             ADMINISTRATION

Prior
to the initial public offering of the Company’s common shares (the “IPO”), the
Plan shall be administered by the compensation committee of the board of
directors of White Mountains Insurance Group, Ltd.  After the IPO, the Plan shall be administered
by the Compensation Committee (the “Committee”) of the Board of Directors (the “Board”)
of the Company;  provided that each
member of the Committee qualifies as (a) a “non-employee director” under Rule
16b-3 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
and (b) an “outside director” under Section 162(m) of the Internal Revenue Code
of 1986, as amended (the “Code”).  In the
event that any member of the Committee does not so qualify, the Plan shall be
administered by a sub-committee of Committee members who do so qualify. 
If it is later determined that one or more members of the Committee do not so
qualify, actions taken by the Committee prior to such determination shall be
valid despite such failure to qualify.

The
Committee shall have exclusive authority to select the employees, directors and
consultants to be granted awards under the Plan (“Awards”), to determine the type,
size and terms of the Awards and to prescribe the form of the instruments
embodying Awards.  With respect to Awards
made to directors and consultants, the Committee shall, and with respect to
employees may, specify the terms and conditions applicable to such Awards in an
Award agreement.  The Committee shall be
authorized to interpret the Plan and the Awards granted under the Plan, to
establish, amend and rescind any rules and regulations relating to the Plan and
to make any other determinations which it believes necessary or advisable for
the administration of the Plan.  In connection
with any Award, the Committee in its sole discretion may provide for vesting
provisions that are different from the default vesting provisions that are contained
in the Plan and such alternative provisions shall not be deemed to conflict
with the Plan.  The Committee may correct
any defect or supply any omission or reconcile any inconsistency in the Plan or
in any Award in the manner

 

A-1

and
to the extent the Committee deems desirable to carry it into effect.  Any decision of the Committee in the
administration of the Plan, as described herein, shall be final and conclusive.  The Committee may act only by a majority of
its members in office, except that the members thereof may authorize any one or
more of their number or any officer of the Company to execute and deliver
documents on behalf of the Committee.  No
member of the Company shall be liable for anything done or omitted to be done
by him or by any other member of the Committee in connection with the Plan,
except for his own willful misconduct or as expressly provided by statute.

3.             PARTICIPATING
SUBSIDIARIES

If
a subsidiary of the Company wishes to participate in the Plan and its
participation shall have been approved by the Board, the Board of Directors of
the subsidiary shall adopt a resolution in form and substance satisfactory to
the Committee authorizing participation by the subsidiary in the Plan.  As used herein, “subsidiary” shall mean a “subsidiary
corporation” as defined in Section 424 (f) of the Code.

A
subsidiary may cease to participate in the Plan at any time by action of the
Board or by action of the Board of Directors of such subsidiary, which latter
action shall be effective not earlier than the date of delivery to the
Secretary of the Company of a certified copy of a resolution of the subsidiary’s
Board of Directors taking such action.  Termination
of participation in the Plan shall not relieve a subsidiary of any obligations
theretofore incurred by it under the Plan.

4.             AWARDS

(a)                                  Eligible Participants.  Any employee, director or consultant of the
Company or any of its subsidiaries is eligible to receive an Award
hereunder.  The Committee shall select which
eligible employees, directors or consultants shall be granted Awards
hereunder.  No employee, director or
consultant shall have a right to receive an Award hereunder and the grant of an
Award to an employee, director or consultant shall not obligate the Committee
to continue to grant Awards to such employee, director or consultant in
subsequent periods.

(b)                                 Type of
Awards.  Awards shall be limited to
the following five types: (i) ”Stock Options,” (ii) “Stock Appreciation
Rights,” (iii) “Restricted Stock,” (iv) “Performance Shares” and (v) “Performance
Units.”  Stock Options, which include “Incentive
Stock Options” and other stock options or combinations thereof, are rights to
purchase shares of Common Stock of the Company (“Shares”).  A Stock Appreciation Right is a right to
receive, without payment to the Company, cash and/or Shares in lieu of

 

A-2

the purchase of Shares under the Stock Option to which the Stock
Appreciation Right relates.

(c)                                  Maximum
Number of Shares That May Be Issued.  A maximum of 3,750,000(1)
Shares (subject to adjustment as provided in Section 15) may be granted at
target pursuant to Awards made under the Plan and, accordingly, up to 7,500,000 Shares
(subject to adjustment as provided in Section 15) may be issued by the Company in
satisfaction of its obligations with respect to such Award grants.  For purposes of the foregoing, the exercise of
a Stock Appreciation Right shall constitute the issuance of Shares equal to the
Shares covered by the related Stock Option. 
If any Shares issued as Restricted Stock shall be repurchased pursuant
to the Company’s option described in Section 6 below, or if any Shares issued
under the Plan shall be reacquired pursuant to restrictions imposed at the time
of issuance, such Shares may again be issued under the Plan.

(d)                                 Rights With
Respect to Shares.

(i)                                     A participant to whom
Restricted Stock has been issued shall have prior to the expiration of the
Restricted Period or the earlier repurchase of such Shares as herein provided,
ownership of such Shares, including the right to vote the same and to receive
dividends thereon, subject, however, to the options, restrictions and limitations
imposed thereon pursuant hereto.

(ii)                                  A participant to whom Stock
Options, Stock Appreciation Rights or Performance Shares are granted (and any
person succeeding to such participant’s rights pursuant to the Plan) shall have
no rights as a shareholder with respect to any Shares issuable pursuant thereto
until the date of the issuance of a stock certificate (whether or not
delivered) therefor.  Except as provided
in Section 15, no adjustment shall be made for dividends, distributions or
other rights (whether ordinary or extraordinary, and whether in cash,
securities or other property) the record date for which is prior to the date
such stock certificate is issued.

(iii)                               The Company, in its
discretion, may hold custody during the Restricted Period of any Shares of
Restricted Stock

5.             STOCK
OPTIONS AND STOCK APPRECIATION RIGHTS

The
Committee may grant to participants Stock Options (including, in its
discretion, Stock Appreciation Rights).  The
maximum of Shares with

(1)           Assuming 100,000,000 shares
outstanding, this would represent 2.5% of total shares outstanding at target.

A-3

respect
to which Stock Options and Stock Appreciation Rights (not including Stock
Appreciation Rights attached to Stock Options) may be issued to a participant
in one year is 2,500,000.  Each Stock
Option shall comply with the following terms and conditions:

(a)                                  The per share exercise price
shall not be less than the greater of (i) the fair market value per Share at
the time of grant, as determined in good faith by the Committee, or (ii) the
par value per Share.  However, the
exercise price of an Incentive Stock Option granted to a participant who owns
stock representing more than ten percent (10%) of the voting power of all
classes of stock of the Company or of a subsidiary (a “Ten Percent Participant”)
shall not be less than the greater of 110% of such fair market value, or the
par value per Share.

(b)                                 The Committee shall
initially determine the number of Shares to be subject to each Stock Option.  The number of Shares subject to a Stock
Option will subsequently be reduced on a Share-for-Share basis to the extent
that Shares under such Stock Option are used to calculate the cash and/or
Shares received pursuant to exercise of a Stock Appreciation Right attached to
such Stock Option.

(c)                                  The Stock Option shall not be
transferable by the optionee otherwise than by will or the laws of descent and
distribution, and shall be exercisable during his lifetime only by him.

(d)                                 The Stock Option shall not
be exercisable:

(i)                                     after the expiration of ten
years from the date it is granted (or such earlier date specified in the grant
of the Stock Option) and may be exercised during such period only at such time
or times as the Committee may establish;

(ii)                                  unless payment in full is
made for the Shares being acquired thereunder at the time of exercise
(including any federal, state or local income or other taxes which the
Committee determines are required to be withheld in respect of such shares); such
payment shall be made (A) in United States dollars by cash or check, (B) by
tendering to the Company Shares owned by the person exercising the Stock Option
and having a fair market value equal to the cash exercise price thereof, such
fair market value to be determined in such reasonable manner as may be provided
for from time to time by the Committee or as may be required in order to comply
with or to conform to the requirements of any applicable or relevant laws or regulations,
(C) if there shall be a public market for the Shares at such time, subject to
such rules as may be established by the Committee, through delivery of
irrevocable instructions to a broker to sell a number of Shares otherwise
deliverable upon the exercise

 

A-4

 

of the Stock Option and to deliver promptly to the Company an amount
equal to the exercise price, or (D) by a combination of United States dollars
and Shares pursuant to (A), (B) and/or (C) above;

(iii)                               by participants who were
employees of the Company or one of its subsidiaries at the time of the grant of
the Stock Option unless such participant has been, at all times during the period
beginning with the date of grant of the Stock Option and ending on the date three
months prior to such exercise, an officer or employee of the Company or a subsidiary,
or of a corporation, or a parent or subsidiary of a corporation, issuing or assuming
the Stock Option in a transaction to which Section 424(a) of the Code is applicable,
except that:

(A)                              if such person
shall cease to be an officer or employee of the Company or one of its
subsidiary corporations solely by reason of a period of Related Employment as
defined in Section 10, he may, during such period of Related Employment (but in
no event after the Stock Option has expired under the provisions of Section
5(d)(i) hereof), exercise such Stock Option as if he continued to be such an
officer or employee; or

(B)                                if an optionee
shall become disabled as defined in Section 9 he may, at any time within three
years of the date he becomes disabled (but in no event after the Stock Option
has expired under the provisions of Section 5(d)(i) hereof), exercise the Stock
Option with respect to (i) any Shares as to which he could have exercised the
Stock Option on the date he became disabled and (ii) if the Stock Option is not
fully exercisable on the date he becomes disabled, the number of additional
Shares as to which the Stock Option would have become exercisable had he
remained an employee through the next date on which additional Shares were
scheduled to become exercisable under the Stock Option; or

(C)                                if an optionee
shall die while holding a Stock Option, his executors, administrators, heirs or
distributees, as the case may be, at any time within one year after the date of
such death (but in no event after the Stock Option has expired under the
provisions of Section 5(d)(i) hereof), may exercise the Stock Option with
respect to (i) any Shares as to which the decedent could have exercised the
Stock Option at the time of his death, and if the Stock Option is not fully
exercisable on the date of his death, the number of 

 

A-5

 

additional Shares as to
which the Stock Option would have become exercisable had he remained an
employee through the next date on which additional Shares were scheduled to become
exercisable under the Stock Option; provided, however, that if death occurs
during the three-year period following a disability as described in Section
5(d)(iii)(B) hereof or any period following a voluntary termination (including
retirement) in respect of which the Committee has exercised its discretion to
grant continuing exercise rights as provided in Section 5(d)(iii)(D) hereof,
the Stock Option shall not become exercisable as to any Shares in addition to
those as to which the decedent could have exercised the Stock Option at the
time of his death; or

(D)                               if such person
shall voluntarily terminate his employment with the Company (including
retirement), the Committee, in its sole discretion, may determine that the
optionee may exercise the Stock Option with respect to some or all of the
Shares subject to the Stock Option as to which it would not otherwise be
exercisable on the date of his voluntary termination provided, however, that in
no event may such exercise take place after the Stock Option has expired under
the provisions of Section 5(d)(i) hereof.

(e)                                  The aggregate market value
of Shares (determined at the time of grant of the Stock Option pursuant to Section
5(a) of the Plan) with respect to which Incentive Stock Options granted to any participant
under the Plan are exercisable for the first time by such participant during
any calendar year may not exceed the maximum amount permitted under Section
422(d) of the Code at the time of the Award grant.  In the event this limitation would be exceeded
in any year, the optionee may elect either (i) to defer to a succeeding year
the date on which some or all of such Incentive Stock Options would first
become exercisable or (ii) convert some or all of such Incentive Stock Options
into non-qualified Stock Options.

(f)                                    If the Committee, in its
discretion, so determines, there may be related to the Stock Option, either at
the time of grant or by amendment, a Stock Appreciation Right which shall be
subject to such terms and conditions, not inconsistent with the Plan, as the Committee
shall impose, including the following:

(i)                                     A Stock Appreciation Right
may be exercised only:

(A)                              to the extent
that the Stock Option to which it relates is at the time exercisable, and

 

A-6

(B)                                if

(1)                                  in the case of
a Stock Option other than an Incentive Stock Option only, such Stock Option
will expire by its terms within 30 days (90 days if the optionee is at the time
an officer of the Company who is required to file reports pursuant to Section
16(a) of the Exchange Act);

(2)                                  the optionee
has become disabled or ceased to be an officer or employee by reason of his
retirement with the approval of the Committee in its sole discretion; or

(3)                                  the optionee
has died.

However, if the Stock Option to which the Stock Appreciation Right relates
is exercisable and if the optionee is at the time an officer of the Company who
is required to file reports pursuant to Section 16(a) of the Exchange Act, the
Stock Appreciation Right may, subject to the approval of the Committee, be
exercised during such periods, as may be specified by the Committee;

(ii)                                  A Stock Appreciation Right
shall entitle the optionee (or any person entitled to act under the provisions
of Section 5(d)(iii)(C) hereof) to surrender unexercised the related Stock
Option (or any portion of such Option) to the Company and to receive from the
Company in exchange therefor that number of Shares having an aggregate market
value equal to the excess of the market value of one Share (provided that, if
such value exceeds 150% of the per share exercise price specified in such Stock
Option, such value shall be deemed to be 150% of such Stock Option price) over
the exercise price of such Stock Option price per share, times the number of
Shares subject to the Stock Option, or portion thereof, which is so surrendered.  The Committee shall be entitled to elect to
settle the obligation arising out of the exercise of a Stock Appreciation Right
by the payment of cash equal to the aggregate value of the Shares it would otherwise
be obligated to deliver or partly by the payment of cash and partly by the delivery
of Shares.  Any such election shall be
made within 15 business days after the receipt by the Committee of written
notice of the exercise of the Stock Appreciation Right.  The market value of a Share for this purpose
shall be the market value thereof on the last business day preceding the date
of the election to exercise the Stock Appreciation Right, provided that if
notice of such election is 

 

A-7

received by the Committee more than three business days after the date
of such election (as such date of election is stated in the notice of
election), the Committee may, but need not, determine the market value of a
Share as of the day preceding the date on which the notice of election is
received;

(iii)                               No fractional Shares shall
be delivered under this Section 5(f), but in lieu thereof a cash adjustment
shall be made; and

(iv)                              In the case of a Stock
Appreciation Right attached to an Incentive Stock Option, such Stock
Appreciation Right shall only be transferable when such Incentive Stock Option
is transferable pursuant to Section 5 (c) hereof.

(g)                                 Notwithstanding anything
herein to the contrary:

(i)                                     in the event a Change in
Control as defined in Section 11(a) occurs and within 24 months thereafter: (A)
there is a Termination Without Cause, as defined in Section 12, of an optionee’s
employment; or (B) there is a Constructive Termination as defined in Section 13,
of an optionee’s employment; or (C) there occurs an Adverse Change in the Plan,
as defined in Section 14, in respect of an optionee affecting any Award held by
such optionee and if the optionee then holds a Stock Option,

(A)                              in the case of
a Termination Without Cause or a Constructive Termination, the optionee may
exercise the entire Stock Option, at any time within 30 days of such
Termination Without Cause or such Constructive Termination (but in no event
after the option has expired under the provisions of Sections (5)(d)(i)), and

(B)                                in the case of
an Adverse Change in the Plan, the optionee may exercise the entire Stock
Option at any time after such Adverse Change in the Plan in respect of him and
prior to the date 30 days following his termination of employment as a result
of a Termination Without Cause or a Constructive Termination (but in no event
after the option has expired under the provisions of Section 5(d) (i)).

6.             RESTRICTED
STOCK

Each
Award of Restricted Stock shall comply with the following terms and conditions:

(a)                                  The Committee shall
determine the number of Shares to be issued to a participant pursuant to the
Award.

 

A-8

 

(b)                                 Shares issued may not be
sold, assigned, transferred, pledged, hypothecated or otherwise disposed of,
except by will or the laws of descent and distribution, for such period from
the date on which the Award is granted (the “Restricted Period”) as the Committee
shall determine.  The Company shall have
the option to repurchase the Shares subject to the Award at such price as the
Committee shall have fixed, in its sole discretion, when the Award was made,
which option will be exercisable if the participant’s continuous employment
with the Company or a subsidiary shall terminate for any reason, except solely
by reason of an event described in Section 6(c), prior to the expiration of the
Restricted Period or the earlier lapse of the option.  Such option shall be exercisable on such
terms, in such manner and during such period as shall be determined by the
Committee when the Award is made.  Certificates
for Shares issued pursuant to Restricted Stock Awards shall bear an appropriate
legend referring to the foregoing option and other restrictions.  Any attempt to dispose of any such Shares in contravention
of the foregoing option and other restrictions shall be null and void and without
effect.  If Shares issued pursuant to a
Restricted Stock Award shall be repurchased pursuant to the option described
above, the participant to whom the Award was granted, or in the event of his
death after such option become exercisable, his executor or administrator,
shall forthwith deliver to the Secretary of the Company any certificates for
the Shares awarded to the participant, accompanied by such instruments of
transfer, if any, as may reasonably be required by the Secretary of the Company.  If the option described above is not
exercised by the Company, such option and the restriction imposed pursuant to
the first sentence of this Section 6(b) shall terminate and be of no further
force and effect.  Notwithstanding
anything to the contrary in this Section 6(b), neither any Restricted Period
nor any option shall lapse to the extent the Company or any subsidiary would be
unable to take a deduction with respect to such lapse by reason of Section
162(m) of the Code.

(c)                                  If a participant who has
been in the continuous employment of the Company or of a subsidiary shall:

(i)                                     die or become disabled (as
defined in Section 9) during the Restricted Period, the option of the Company
to repurchase (and any and all other restrictions on) a pro rata portion of the
Shares awarded to him under such Award shall lapse and cease to be effective as
of the date on which his death or disability occurs which shall be determined as
follows: (A) the number of Shares awarded under the Award multiplied  by
(B) a percentage, the numerator of which is equal to the number of months
elapsed in the Restricted Period as of the date of death or disability
(counting the month in which the death or disability occurred as a full month) and
the denominator of which is equal to the number of months in the Restricted
Period.

 

A-9

 

(ii)                                  voluntarily terminate his
employment with the Company (including retirement) during the Restricted
Period, the Committee may determine that all or any portion of the option to
repurchase and any and all other restrictions on some or all of the Shares
awarded to him under such Award, if such option and other restrictions are
still in effect, shall lapse and cease to be effective as the date on which
such voluntary termination or retirement occurs.

(d)                                 In the event within 24
months after a Change in Control as defined in Section 11(a) and during the
Restricted Period:

(i)                                     there is a Termination
Without Cause, as defined in Section 12, of the employment of a participant;

(ii)                                  there is a Constructive
Termination, as defined in Section 13, of the employment of a participant; or

(iii)                               there occurs an Adverse
Change in the Plan, as defined in Section 14, in respect of a participant, then

the
option to repurchase (and any and all other restrictions on) all Shares awarded
to him under his Award shall lapse and cease to be effective as of the date on
which such event occurs.

7.             PERFORMANCE
SHARES

The
grant of a Performance Share Award to a participant will entitle him to
receive, without payment to the Company, all or part of a specified amount (the
“Actual Value”) determined by the Committee, if the terms and conditions
specified herein and in the Award are satisfied.  Payment in respect of an Award shall be made
as provided in Section 7(h).  Each
Performance Share Award shall be subject to the following terms and conditions:

(a)                                  The Committee shall
determine the target number of Performance Shares to be granted to a participant.  The maximum number of Performance Shares that
may be earned by a participant for any single Award Period of one year or
longer shall not exceed 2,500,000.  Performance
Share Awards may be granted in different classes or series having different
terms and conditions.

(b)                                 The Actual Value of a Performance
Share Award shall be the product of (i) the target number of Performance Shares
subject to the Performance Share Award, (ii) the Performance Percentage (as
determined below) applicable to the Performance Share Award and (iii) the
market value of a Share on the date the Award is paid or becomes payable to the
participant.  The “Performance Percentage”
applicable to a Performance Share Award

 

A-10

 

shall be a percentage of no less than 0% and no more than 200%, which
percentage shall be determined by the Committee based upon the extent to which
the Performance Objectives (as determined below) established for such Award are
achieved during the Award Period.  The
method for determining the applicable Performance Percentage shall also be
established by the Committee.

(c)                                  At the time each Performance
Share Award is granted, the Committee shall establish performance objectives (“Performance
Objectives”) to be attained within the Award Period as the means of determining
the Performance Percentage applicable to such Award.  The Performance Objectives shall be approved
by the Committee (i) while the outcome for that Award Period is substantially
uncertain and (ii) no more than 90 days after the commencement of the Award Period
to which the Performance Objective relates or, if less than 90 days, the number
of days which is equal to 25 percent of the relevant Award Period.  The Performance Objectives established with
respect to a Performance Share Award shall be specific performance targets
established by the Committee with respect to one or more of the following
criteria selected by the Committee: (i) consolidated earnings before or after
taxes (including earnings before interest, taxes, depreciation and
amortization); (ii) net income; (iii) operating income; (iv) earnings per
Share; (v) book value per Share; (vi) return on stockholders’ equity; (vii)
expense management; (viii) return on investment; (ix) improvements in capital
structure; (x) share price; (xi) combined ratio; (xii) operating ratio; (xiii) profitability
of an identifiable business unit or product; (xiv) maintenance or improvement
of profit margins; (xv) market share; (xvi) revenues or sales; (xvii) costs;
(xviii) cash flow; (xix) working capital; (xx) return on assets; (xxi) customer
satisfaction; (xxii) employee satisfaction; (xxiii) economic value per Share,
(xxiv) underwriting return on capital and (xxv) underwriting return on equity.  The foregoing criteria may relate to the
Company, one or more of its subsidiaries or one or more of its divisions,
units, partnerships, joint ventures or minority investments, product lines or
products or any combination of the foregoing, and may be applied on an absolute
basis and/or be relative to one or more peer group companies or indices, or any
combination thereof, all as the Committee shall determine.  In addition, to the degree consistent with
Section 162(m) of the Code (or any successor section thereto), the Performance Objectives
may be calculated without regard to extraordinary items.

(d)                                 The award period (the “Award
Period”) in respect of any grant of a Performance Share Award shall be such
period as the Committee shall determine commencing as of the beginning of the
fiscal year of the Company in which such grant is made.  An Award Period may contain a number of
performance periods; each performance period shall commence on or after the
first day of the Award Period and shall end no later than the last day of the Award
Period.  If the Committee does not
specify in a

 

A-11

 

Performance Share Award agreement or elsewhere the performance periods
contained in an Award Period, each 12-month period beginning with the first day
of such Award Period shall be deemed to be a performance period.

(e)                                  Except as otherwise
determined by the Committee, Performance Shares shall be canceled if the
participant’s continuous employment with the Company or any of its subsidiaries
shall terminate for any reason prior to the end of the Award Period, except by
reason of a period of Related Employment as defined in Section 10, and except
as otherwise specified in this Section 7(e) or in Section 7(f).  Notwithstanding the foregoing and without regard
to Section 7(g), if an employee participant shall:

(i)                                     while in such employment,
die or become disabled as described in Section 9 prior to the end of an Award
Period, the Performance Share Award for such Award Period shall be immediately canceled
and he, or his legal representative, as the case may be, shall receive as soon
as administratively feasible a payment in respect of such canceled Performance Share
Award equal to the product of (A)(i) the target number of Performance Shares
for such Award multiplied by (ii) a fraction, the numerator of which is equal
to the number of full or partial months within the Award Period during which
employee was continuously employed by the Company or its subsidiaries
(including, for this purpose, the month in which the death or disability
occurs), and the denominator of which is equal to the total number of months
within such Award Period, multiplied by (B) the market value of a Share
on the last day of the performance period in which the death or disability
occurred, multiplied by (C) the Performance Percentage determined by the
Board to have been achieved through the end of the performance period in which
the death or disability occurred (but which in no event shall be less than 50%);
provided, however, that no such continuation shall be deemed to have occurred
for purposes of applying Section 7(f) in the event of an Adverse Change in the
Plan in respect of the participant following a Change in Control; or

(ii)                                  retire with the approval of
the Committee in its sole discretion prior to the end of the Award Period, the
Performance Share Award for such Award Period shall be immediately canceled;
provided that the Committee in its sole discretion may determine to make a
payment to the participant in respect of such canceled Performance Share Award,
and

(f)                                    If within 24 months after a Change
in Control as defined in Section 11(a):

(i)                                     there is a Termination
Without Cause, as defined in Section 12, of the employment of a participant;

 

A-12

 

(ii)                                  there is a Constructive
Termination, as defined in Section 13, of the employment of a participant; or

(iii)                               there occurs an Adverse
Change in the Plan, as defined in Section 14, in respect of a participant (any
such occurrence under the above clauses (i), (ii) or (iii), a “Trigger Event”),
then

with respect to Performance
Share Awards that were outstanding on the date of the Trigger Event (each, an “Applicable
Award”), each such Applicable Award shall be immediately canceled and, in respect
thereof, such participant shall be entitled to receive a cash payment equal to
the product of (A) (i) the target number of Performance Shares for such
Applicable Award multiplied  by (ii) a fraction, the numerator of
which is equal to the number of full months within the Award Period during
which the participant was continuously employed by the Company or its
subsidiaries, and the denominator of which is equal to the total number of
months within such Award Period, multiplied  by (B) the greater of
(i) the market value of a Share immediately prior to the Change in Control and
(ii) the market value of a Share on the date the applicable Trigger Event
occurs, multiplied  by (C) a Performance Percentage equal to
100%.  If following a Change in Control,
a Participant’s employment remains continuous through the end of an Award
Period, then the Participant shall be paid with respect to such Awards for
which he would have been paid had there not been a Change in Control and the
Actual Value shall be determined in accordance with Section 7(g) below.

(g)                                 Except as otherwise provided
in Section 7(f), as soon as practicable after the end of the Award Period or
such earlier date as the Committee in its sole discretion may designate, the Committee
shall (i) determine, based on the extent to which the applicable Performance
Objectives have been achieved, the Performance Percentage applicable to an
Award of Performance Shares, (ii) calculate the Actual Value of the Performance
Share Award and (iii) shall certify the foregoing to the Board of Directors.  The Committee shall cause an amount equal to
the Actual Value of the Performance Shares earned by the participant to be paid
to him or his beneficiary.

(h)                                 Unless payment is deferred
in accordance with an election made by the participant in accordance with
procedures adopted by the Company, payment of any amount in respect of the
Performance Shares shall be made by the Company no later than 2 1/2 months
after the end of the Company’s fiscal year in which such Performance Shares are
earned, and may be made in cash, in Shares or partly in cash and partly in
Shares as determined by the Committee.

 

A-13

 

8.             PERFORMANCE
UNITS

The
grant of a Performance Unit Award to a participant will entitle him to receive,
without payment to the Company, all or part of a specified amount (the “Earned Value”)
determined by the Committee, if the terms and conditions specified herein and
in the Award are satisfied.  Payment in
respect of a Performance Unit Award shall be made as provided in Section
8(h).  Each Performance Unit Award shall
be subject to the following terms and conditions:

(a)                                  The Committee shall
determine the target number of Performance Units to be granted to a
participant.  The maximum Earned Value
that may be earned by a participant for Performance Units for any single Award
Period of one year or longer shall not exceed $25,000,000.  Performance Unit Awards may be granted in
different classes or series having different terms and conditions.

(b)                                 The Earned Value of an Award
of Performance Units shall be the product of (i) the target number of Performance
Units subject to the Performance Unit Award, (ii) the Performance Percentage (as
determined below) applicable to the Performance Unit Award and (iii) the Value (as
determined below) of a Unit on the date the Award is paid or becomes payable to
the employee.  The “Performance
Percentage” applicable to a Performance Unit Award shall be a percentage of no
less than 0% and no more than 200%, which percentage shall be determined by the
Committee based upon the extent to which the Performance Objectives (as
determined below) established for such Award are achieved during the Award
Period.  The method for determining the
applicable Performance Percentage shall also be established by the Committee.  The “Value” of a Unit shall be determined by
multiplying $100 by the sum of (i) 100% and (ii) the aggregate standard pre-tax
insurance return-on-equity of the Company, any of its subsidiaries or any
combination thereof as set forth in the Award Agreement over the Award Period
(or such earlier date as required by the Plan), as determined in good faith by
the Committee.

(c)                                  At the time each Performance
Unit Award is granted the Committee shall establish performance objectives (“Performance
Objectives”) to be attained within the Award Period as the means of determining
the Performance Percentage applicable to such Award.  The Performance Objectives shall be approved
by the Committee (i) while the outcome for that Award Period is substantially
uncertain and (ii) no more than 90 days after the commencement of the
performance period to which the performance objective relates or, if less than
90 days, the number of days which is equal to 25 percent of the relevant
performance period.  The Performance
Objectives established with respect to a Performance Unit Awards shall be
specific performance targets established by the Committee with respect to one
or more of the following criteria selected

 

A-14

 

by the Committee: (i) consolidated earnings before or after taxes
(including earnings before interest, taxes, depreciation and amortization);
(ii) net income; (iii) operating income; (iv) earnings per Share; (v) book
value per Share; (vi) return on stockholders’ equity; (vii) expense management;
(viii) return on investment; (ix) improvements in capital structure; (x) share
price; (xi) combined ratio; (xii) operating ratio; (xiii) profitability of an
identifiable business unit or product; (xiv) maintenance or improvement of
profit margins; (xv) market share; (xvi) revenues or sales; (xvii) costs;
(xviii) cash flow; (xix) working capital; (xx) return on assets; (xxi) customer
satisfaction; (xxii) employee satisfaction; (xxiii) economic value per Share,
(xxiv) underwriting return on capital and (xxv) underwriting return on equity.   The
foregoing criteria may relate to the Company, one or more of its subsidiaries
or one or more of its divisions, units, partnerships, joint ventures or
minority investments, product lines or products or any combination of the
foregoing, and may be applied on an absolute basis and/or be relative to one or
more peer group companies or indices, or any combination thereof, all as the
Committee shall determine.  In addition,
to the degree consistent with Section 162(m) of the Code (or any successor
section thereto), the Performance Objectives may be calculated without regard
to extraordinary items.

(d)                                 The award period (the “Award
Period”) in respect of any grant of a Performance Unit Award shall be such
period as the Committee shall determine commencing as of the beginning of the
fiscal year of the Company in which such grant is made.  An Award Period may contain a number of performance
periods; each performance period shall commence on or after the first day of
the Award Period and shall end no later than the last day of the Award
Period.  If the Committee does not
specify in a Performance Unit Award agreement or elsewhere the performance
periods contained in an Award Period, each 12-month period beginning with the
first day of such Award Period shall be deemed to be a performance period.

(e)                                  Except as otherwise
determined by the Committee, Performance Units shall be cancelled if the
participant’s continuous employment with the Company or any of its subsidiaries
shall terminate for any reason prior to the end of the Award Period, except
solely by reason of a period of Related Employment as defined in Section 10,
and except as otherwise specified in this Section 8(e) or in Section 8(f).  Notwithstanding the foregoing and without
regard to Section 8(f), if an employee participant shall:

(i)                                     while in such employment,
die or become disabled as described in Section 9 prior to the end of an Award
Period, the Performance Unit Award for such Award Period shall be immediately
canceled and he, or his legal representative, as the case may be, shall receive
as soon as administratively feasible a payment in respect of such

 

A-15

 

canceled Performance Unit Award equal to the product of (A)(i) the
target number of Performance Units for such Award multiplied by (ii) a
fraction, the numerator of which is equal to the number of full or partial
months within the Award Period during which employee was continuously employed
by the Company or its subsidiaries (including, for this purpose, the month in
which the death or disability occurs), and the denominator of which is equal to
the total number of months within such Award Period, multiplied by (B)
the value of a Performance Unit on the last day of the performance period in
which the death or disability occurred, multiplied by (C) the
Performance Percentage determined by the Board to have been achieved through
the end of the performance period in which the death or disability occurred;
provided, however, that no such continuation shall be deemed to have occurred
for purposes of applying Section 8(f) in the event of an Adverse Change in the
Plan in respect of the participant following a Change in Control; or

(ii)                                  retire with the approval of
the Committee in its sole discretion prior to the end of the Award Period, the
Performance Unit Award for such Award Period shall be immediately canceled;
provided that the Committee in its sole discretion may determine to make a
payment to the participant in respect of such canceled Performance Unit Award.

(f)                                    If within 24 months after a Change
in Control as defined in Section 11(a), a Trigger Event occurs, then with
respect to Performance Unit Awards that were outstanding on the date of the Trigger
Event (each, an “Applicable Award”), each such Applicable Award shall be
immediately canceled and, in respect thereof, such participant shall be
entitled to receive a cash payment equal to the product of (A) (i) the target
number of Performance Units for such Applicable Award multiplied  by
(ii) a fraction, the numerator of which is equal to the number of full months
within the Award Period during which the participant was continuously employed
by the Company or its subsidiaries, and the denominator of which is equal to
the total number of months within such Award Period, multiplied  by
(B) the greater of (i) the value of a Performance Unit immediately prior to the
Change in Control and (ii) the value of Performance Unit on the date the
applicable Trigger Event occurs, multiplied  by (C) a Performance
Percentage equal to 100%.  If following a
Change in Control, a Participant’s employment remains continuous through the
end of an Award Period, then the Participant shall be paid with respect to such
Awards for which he would have been paid had there not been a Change in Control
and the Actual Value shall be determined in accordance with Section 8(g) below.

 

A-16

 

(g)                                 Except as otherwise provided
in Section 8(f), as soon as practicable after the end of the Award Period or
such earlier date as the Committee in its sole discretion may designate, the
Committee shall (i) determine, based on the extent to which the applicable
Performance Objectives have been achieved, the Performance Percentage
applicable to an Award of Performance Units, (ii) calculate the Earned Value of
the Performance Unit Award and (iii) shall certify all of the foregoing to the
Board of Directors.  The Committee shall
cause an amount equal to the Earned Value of the Performance Units earned by
the participant to be paid to him or his beneficiary.

(h)                                 Unless payment is deferred
in accordance with an election made by the participant in accordance with
procedures adopted by the Company, payment of any amount in respect of the
Performance Units shall be made by the Company no later than 2 1/2 months after
the end of the Company’s fiscal year in which such Performance Units are earned,
and may be made in cash, in Shares or partly in cash and partly in Shares as
determined by the Committee.

9.             DISABILITY

For
the purposes of this Plan, a participant shall be deemed to be disabled if the
Committee shall determine that the physical or mental condition of the
participant is such as would entitle him to payment of long-term disability
benefits under any disability plan of the Company or a subsidiary in which he
is a participant.

10.          RELATED
EMPLOYMENT

For
the purposes of this Plan, Related Employment shall mean the employment of a
participant by an employer which is neither the Company nor a subsidiary
provided: (i) such employment is undertaken by the participant and continued at
the request of the Company or a subsidiary; (ii) immediately prior to
undertaking such employment, the participant was an officer or employee of the
Company or a subsidiary, or was engaged in Related Employment as herein
defined; and (iii) such employment is recognized by the Committee, in its sole
discretion, as Related Employment for the purposes of this Section 10.  The death or disability of a participant
during a period of Related Employment as herein defined shall be treated, for
purposes of this Plan, as if the death or onset of disability had occurred while
the participant was an officer or employee of the Company.

11.          CHANGE IN
CONTROL

(a)                                  For purposes of this Plan, a
“Change in Control” within the meaning of this Section 11(a) shall occur if:

 

A-17

 

(i)                                     Any person or group (within
the meaning of Section 13(d) and 14(d)(2) of the Exchange Act), other than White
Mountains Insurance Group, Ltd. or one of its wholly owned subsidiaries, or an
underwriter temporarily holding Shares in connection with a public issuance thereof
or an employee benefit plan of the Company or its affiliates, becomes the
beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act) of
thirty-five percent (35%) or more of the Company’s then outstanding Shares and
such percentage exceeds the beneficial ownership percentage of the Company’s
then outstanding Shares attributed to White Mountains Insurance Group, Ltd.,
together with its wholly owned subsidiaries;

(ii)                                  the Continuing Directors, as
defined in Section 11(b), cease for any reason to constitute a majority of the
Board of the Company; or

(iii)                               the business of the Company
for which the participant’s services are principally performed is disposed of
by the Company pursuant to a sale or other disposition of all or substantially
all of the business or business-related assets of the Company (including stock
of a subsidiary of the Company).

(b)                                 For the purposes of this
Plan, “Continuing Director” shall mean a member of the Board (A) who is not an
employee of the Company or its subsidiaries or of a holder of, or an employee
or an affiliate of an entity or group that holds, thirty-five percent (35%) or
more of the Company’s Shares and (B) who either was a member of the Board on October
18th, 2006, or who subsequently became a director of the Company and
whose election, or nomination for election, by the Company’s shareholders was
approved by a vote of a majority of the Continuing Directors then on the Board
(which term, for purposes of this definition, shall mean the whole Board and
not any committee thereof).

(c)                                  In the event of a Change in
Control, the Committee as constituted immediately prior to the Change in
Control shall determine the manner in which “market value” of Shares will be
determined following the Change in Control.

12.          TERMINATION
WITHOUT CAUSE

For
purposes of this Plan, “Termination Without Cause” shall mean a termination of
the participant’s employment with the Company or subsidiary or business unit of
the Company by the Company (or subsidiary or business unit, as applicable) or,
by a purchaser of the participant’s subsidiary or business unit after a Change
in Control as described in Subsection 11(a)(iii), other than (i) for death or
disability as described in Section 9 or (ii) for Cause.  “Cause” shall mean (a) an act or omission by

 

A-18

 

the
participant that constitutes a felony or any crime involving moral turpitude;
or (b) willful gross negligence or willful gross misconduct by the participant
in connection with his employment which causes, or is likely to cause, material
loss or damage to the Company, subsidiary or business unit. Notwithstanding anything
herein to the contrary, if the participant’s employment with the Company, subsidiary
or business unit  shall terminate due to
a Change in Control as described in Subsection 11(a)(iii), where the purchaser
(the “Purchaser”), as described in such subsection, formally assumes the
Company’s obligations under this Plan or places the participant in a similar or
like plan with no diminution of the value of the awards, such termination shall
not be deemed to be a “Termination Without Cause.”

13.          CONSTRUCTIVE
TERMINATION

“Constructive
Termination” shall mean a termination of employment with the Company or a subsidiary
at the initiative of the participant that the participant declares by prior
written notice delivered to the Secretary of the Company to be a Constructive
Termination by the Company or a subsidiary and which follows (a) a material
decrease in his total compensation opportunity or (b) a material diminution in
the authority, duties or responsibilities of his position with the result that
the participant makes a determination in good faith that he cannot continue to
carry out his job in substantially the same manner as it was intended to be
carried out immediately before such diminution. 
Notwithstanding anything herein to the contrary, Constructive Termination
shall not occur within the meaning of this Section 13 until and unless 30 days have
elapsed from the date the Company receives such written notice from the
participant without the Company curing or causing to be cured the circumstance
or circumstances described in this Section 13 on the basis of which the
declaration of Constructive Termination is given.

14.          ADVERSE CHANGE
IN THE PLAN

An
“Adverse Change in the Plan” shall mean

(a)                                  termination of the Plan
pursuant to Section 19(a);

(b)                                 amendment of the Plan
pursuant to Section 18 that materially diminishes the value of Awards that may
be granted under the Plan, either to individual participants or in the aggregate,
unless there is substituted concurrently authority to grant long-term incentive
awards of comparable value to individual participants in the Plan or in the
aggregate, as the case may be; or ,

(c)                                  in respect of any holder of
an Award a material diminution in his rights held under such Award (except as
may occur under the terms of the

 

A-19

 

Award as originally granted) unless there is substituted concurrently a
long-term incentive award with a value at least comparable to the loss in value
attributable to such diminution in rights.

In
no event shall any amendment of the Plan or an Award contemplated by Section 15
hereof be deemed an Adverse Change in the Plan.

15.          DILUTION
AND OTHER ADJUSTMENTS

In
the event of any change in the Outstanding Shares of the Company by reason of
any stock split, stock or extraordinary cash dividend, recapitalization,
merger, consolidation, reorganization, combination or exchange of Shares or
other similar event, or in the event of an extraordinary cash dividend or other
similar event, and if the Committee shall determine, in its sole discretion,
that such change equitably requires an adjustment in the number or kind of
Shares that may be issued under the Plan pursuant to Section 4, in the number
or kind of Shares subject to, or the Stock Option price per share under, any outstanding
Stock Option, in the number or kind of Shares which have been awarded as Restricted
Stock or in the repurchase option price per share relating thereto, in the target
number of Performance Shares which have been awarded to any participant, or in
any measure of performance, then such adjustment shall be made by the Committee
and shall be conclusive and binding for all purposes of the Plan.

16.          DESIGNATION
OF BENEFICIARY BY PARTICIPANT

A
participant may name a beneficiary to receive any payment to which he may be
entitled in respect of Performance Shares, Performance Units or Stock
Appreciation Rights under the Plan in the event of his death, on a form to be provided
by the Committee.  A participant may
change his beneficiary from time to time in the same manner.  If no designated beneficiary is living on the
date on which any amount becomes payable to a participant’s executors or
administrators, the term “beneficiary” as used in the Plan shall include such
person or persons.

17.          MISCELLANEOUS
PROVISIONS

(a)                                  No employee or other person
shall have any claim or right to be granted an Award under the Plan.  Neither the Plan nor any action taken
hereunder shall be construed as giving an employee any right to be retained in
the employ of the Company or any subsidiary.

(b)                                 A participant’s rights and
interest under the Plan may not be assigned or transferred in whole or in part either
directly or by operation of law or otherwise (except in the event of a
participant’s death), including but not limited to, execution, levy,
garnishment, attachment, pledge, bankruptcy

 

A-20

 

or in any other manner and no such right or interest of any participant
in the Plan shall be subject to any obligation or liability or such participant.

(c)                                  No Shares shall be issued
hereunder unless counsel for the Company shall be satisfied that such issuance
will be in compliance with applicable Federal and state securities laws and
Bermuda law.

(d)                                 The Company and its
subsidiaries shall have the right to deduct from any payment made under the
Plan any federal, state or local income or other taxes required by law to be withheld
with respect to such payment.  It shall
be a condition to the obligation of the Company to issue Shares upon exercise
of a Stock Option, upon settlement of a Stock Appreciation Right, or upon
payment of a Performance Share or a Performance Unit that the participant (or
any beneficiary or person entitled to payment under Section 5(d)(iii)(C)
hereof) pay to the Company, upon its demand, such amount as may be required by
the Company for the purpose of satisfying any liability to withhold Federal,
state or local income or other taxes.  If
the amount requested is not paid, the Company may refuse to issue Shares.

(e)                                  The expenses of the Plan
shall be borne by the Company.  However,
if an Award is made to an employee of a subsidiary:

(i)                                     if such Award results in
payment of cash to the participant, such subsidiary shall pay to the Company an
amount equal to such cash payment; and

(ii)                                  if the Award results in the
issuance to the participant of Shares, such subsidiary shall pay to the Company
an amount equal to fair market value thereof, as determined by the Committee,
on the date such Shares are issued (or, in the case of issuance of Restricted
Stock or of Shares subject to transfer and forfeiture conditions, equal to the
fair market value thereof on the date on which such Shares are no longer
subject to applicable restriction), minus the amount, if any received by the
Company in exchange for such Shares.

(f)                                    The Plan shall be unfunded.  The Company shall not be required to
establish any special or separate fund or to make any other segregation of
assets to assure the payment of any Award under the Plan.

(g)                                 By accepting any Award or
other benefit under the Plan, each participant and each person claiming under
or through him shall be conclusively deemed to have indicated his acceptance
and ratification of, and consent to, any action taken under the Plan by the Company,
the Board or the Committee.

(h)                                 If a Purchaser of a
subsidiary or business unit agrees to fully assume the obligations of the
Company under a Participant’s outstanding Awards

 

A-21

 

under the Plan or to replace them with similar or like awards with no
diminution of value of the Awards as described in Section 12, then the Company
shall be released from its obligations to such Participant with respect to such
Awards without the requirement of any action by or approval of the Participant.  If a Purchaser declines to assume or replace
such obligations, the Company shall remain obligated under the Awards as
provided in the Plan.

18.          AMENDMENT

The
Plan may be amended at any time and from time to time by the Board, but no amendment
which increases the aggregate number of Shares which may be issued pursuant to
the Plan or the class of employees eligible to participate shall be effective
unless and until the same is approved by the shareholders of the Company.  No amendment of the Plan shall adversely
affect any right of any participant with respect to any Award previously granted
without such participant’s written consent.

19.          TERMINATION

This
Plan shall terminate upon the earlier of the following dates or events to
occur:

(a)                                  the adoption of a resolution
of the Board terminating the Plan; or

(b)                                 ten years from the date the
Plan is initially or subsequently approved and adopted by the shareholders of
the Company in accordance with Section 19 hereof.

No
termination of the Plan shall alter or impair any of the rights or obligations
of any person, without his consent, under any Award previously granted under
the Plan.

 

A-22

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