Document:

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                                                                    EXHIBIT 10.6

                          SUNLINK HEALTH SYSTEMS, INC.
                             2001 OUTSIDE DIRECTORS'
                      STOCK OWNERSHIP AND STOCK OPTION PLAN

1.       Purpose. The SunLink Health Systems, Inc. (formerly KRUG International
Corp.) 2001 Outside Directors' Stock Ownership and Stock Option Plan (the
"Plan") is intended to provide an incentive to Outside Directors (as defined
below) of SunLink Health Systems, Inc., an Ohio corporation (the "Company"), to
remain in the service of the Company and to increase their efforts for the
success of the Company, and to encourage such Outside Directors to own shares of
the Company's stock, thereby aligning their interests more closely with the
interests of the Company's stockholders.

2.       Definitions.

         (a)      "Board" means the Board of Directors of the Company.

         (b)      "Committee" means a committee consisting of members of the
         Board authorized to administer the Plan.

         (c)      "Common Stock" means the common stock, no par value, of the
         Company.

         (d)      "ERISA" means the Employee Retirement Income Security Act of
         1974, as amended.

         (e)      "Exchange Act" means the Securities and Exchange Act of 1934,
         as amended.

         (f)      "Fair Market Value" means (i) the closing price of the Common
         Stock on the American Stock Exchange or the National Association of
         Securities Dealer Automated Quotation National Market ("NASDAQ/National
         Market"), as the case may be, on which such Common Stock is then listed
         or admitted to trading, (ii) if no sale takes place on such day on such
         exchange or the NASDAQ/National Market, as the case may be, the average
         of the last reported closing bid and asked prices on such day as
         officially quoted on such exchange or the NASDAQ/National Market, as
         the case may be, (iii) if the Common Stock is not then listed or
         admitted to trading on any stock exchange or the NASDAQ/National
         Market, as the case may be, the average of the last reported closing
         bid and asked prices on such day in the over-the-counter market, as
         furnished by the NASDAQ/National Market or the National Quotation
         Bureau, Inc., (iv) if neither such corporation at the time is exchanged
         in the business of reporting such prices, as furnished by any similar
         firm then engaged in such business, or (v) if there is no such firm, as
         furnished by any member of the National Association of Securities
         Dealers ("NASD") selected mutually by the Outside Director and the
         Company, or if they cannot agree upon such selection, as selected by
         two such members of the NASD, one of which shall be selected by the
         Outside Director and one of which shall be selected by the Company.

         (g)      "Internal Revenue Code" means the Internal Revenue Code of
         1986, as amended.
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         (h)      "Legal Representative" means an Outside Director's legal
         guardian, or a deceased Outside Director's executors, legal heirs,
         administrators, testamentary trustees and beneficiaries or
         distributees, whichever is applicable at any time.

         (i)      "Outside Directors" means members of the Board of the Company
         who are not members of the management of, nor are otherwise employed
         by, the Company or any subsidiary of the Company.

         (j)      "Options" means the options to purchase shares of Common Stock
         granted pursuant to this Plan.

         (k)      "Rule 16b-3" means Rule 16b-3 of the Exchange Act, as amended
         from time to time.

         (l)      "Securities Act" means the Securities Act of 1933, as amended.

3.       Administration of the Plan.

         (a)      COMMITTEE. This Plan shall be self-administering; provided,
         however, that to the extent the Plan is not self-administering, the
         Plan shall be administered, construed and interpreted by the Company's
         existing Compensation Committee, a sub-committee thereof or another
         committee authorized by the Board (the "Committee"); further provided
         that each Committee member shall recuse himself or herself from all
         matters relating to the administration, construction or interpretation
         of this Plan in connection with any awards to such person. The terms
         and conditions of each individual stock option award shall be evidenced
         by a stock option certificate, which shall be in accordance with the
         provisions of the Plan.

         (b)      AUTHORITY OF THE COMMITTEE. The Committee shall adopt such
         rules as it may deem appropriate in order to carry out the purpose of
         the Plan. All questions of interpretation, administration and
         application of the Plan shall be determined by a majority of the
         members of the Committee then in office, except that the Committee may
         authorize any one or more of its members or any officer of the Company
         to execute and deliver documents on behalf of the Committee. The
         determination of such majority shall be final and binding on all
         matters related to the Plan. No member of the Committee shall be liable
         for any act done or omitted to be done by such member or by any other
         member of the Committee in connection with the Plan, except for such
         member's own willful misconduct or as expressly provided by law.
         Business shall be transacted by a vote of the members of the Committee,
         and any decision or determination reduced to writing and signed by the
         members shall be as fully effective as if it had been made by a vote at
         a meeting duly called and held.

4.       Stock Reserved for the Plan. The aggregate number of shares of Common
Stock authorized for issuance under the Plan is ninety thousand (90,000),
subject to adjustment pursuant to Section 8 hereof. Shares of Common Stock
delivered hereunder may be either authorized but unissued shares or previously
issued shares reacquired and held by the Company.

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In the event that any outstanding option (or portion thereof) under the Plan for
any reason expires unexercised or terminates without vesting or exercise prior
to the end of the period during which options may be granted, the shares of
Common Stock allocable to the unexercised portion of such option again may be
subjected to an option under the Plan.

5.       Required Ownership of Common Stock. Subject to any trading restrictions
imposed by applicable securities laws, as of the later to occur of (i) the date
on which this Plan is approved by the stockholders of the Company or (ii) the
date on which an individual later elected as an Outside Director is nominated
for election, each Outside Director (or future Outside Director, as the case may
be) shall be required to own, and shall provide the Company with written
certification of such ownership substantially in the form provided in Exhibit
"A" hereto, at least one thousand (1,000) shares of Common Stock. Each Outside
Director (or future Outside Director, as the case may be) shall maintain
ownership of such number of shares of Common Stock until such Outside Director
ceases to serve as a member of the Board.

6.       Option Grants. Options granted pursuant to the Plan shall be evidenced
by option certificates in such form as the Committee from time to time shall
approve; such certificates and the options granted thereby, shall comply with
and be subject to the following terms and conditions:

         (a)      NUMBER OF SHARES. Each option certificate shall state the
         total number of shares of the Common Stock to which it pertains.

         (b)      OPTION PRICE. The option price per share shall be the Fair
         Market Value per share of the Common Stock on the date of grant.

         (c)      MEDIUM AND TIME OF PAYMENT. The option price shall be payable
         upon the exercise of the option in an amount equal to the number of
         shares then being purchased times the per share option price. Payment
         at the election of the optionee, shall be (i) in cash; (ii) by delivery
         to the Company of a certificate or certificates for shares of the
         Common Stock duly endorsed for transfer to the Company with signature
         guaranteed, if requested by the Company, by a member firm of the
         American Stock Exchange or by a national banking association; or (iii)
         by a combination of (i) and (ii). In the event of any payment by
         delivery of shares of the Common Stock, such shares shall be valued on
         the basis of their respective Fair Market Values on the date of
         exercise. If payment is made by delivery of shares of the Common Stock,
         the value of such stock shall not exceed the total option price
         payment.

         (d)      TERMS OF OPTIONS. Terms of options granted under the Plan
         shall commence on the date of grant and shall expire on the tenth
         anniversary of the date of grant, subject to Section 8 hereof. No
         option may be granted under the Plan after March 31, 2006.

         (e)      VESTING. Unless otherwise provided by the Committee, each
         option shall vest one-third (1/3) on the date of grant, one-third (1/3)
         on the first year's anniversary of the date of grant and one-third
         (1/3) on the second year's anniversary of the date of grant; provided,
         however, that with respect to any options held by an optionee who does
         not

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         stand for re-election upon the end of his term of office as an Outside
         Director, any options held by such optionee that are otherwise vested
         or scheduled to vest on the first business day following the next
         January 1 shall vest immediately, and all remaining options held by
         such optionee shall terminate as provided in subsection (j) hereof.
         Options shall be exercisable immediately upon vesting; provided,
         however, that no option granted to a person who is subject to Section
         16 of the Exchange Act or the rules and regulations promulgated
         thereunder shall be subject to exercise prior to the expiration of six
         months from the date of grant, and further provided, however, that all
         outstanding options shall also vest and be exercisable on the date of
         the consummation of a "change in control." For purposes of this
         section, a change in control will be deemed to be deemed to have
         occurred if any "person" or "group" of persons (as determined pursuant
         to Sections 14(d) and 15(d) of the Exchange Act and the rules and
         regulations promulgated thereunder) (i) becomes the beneficial owner,
         directly or indirectly, of voting securities of the Company, or
         securities convertible into, or exchangeable for, voting securities,
         representing more than 40% of the combined voting power of the
         Company's then outstanding securities or (ii) acquires the right or
         power to nominate and/or control, directly or indirectly, a majority of
         the members of the Board, without having first received the prior
         written consent of at least two-thirds of the members of the entire
         Board in office prior to any such person or group of persons acquiring
         such right or power.

                  At the discretion of the Committee, vesting may be
         accelerated.

         (f)      METHOD OF EXERCISE. All options granted hereunder shall be
         exercised by written notice directed to the Chief Executive Officer of
         the Company at its principal place of business, accompanied by payment
         made in accordance with subsection (c) above. The Company shall make
         delivery of such shares within a reasonable period of time; provided,
         however, that if any law or regulation requires the Company to take any
         action (including but not limited to the filing of a registration
         statement under the Securities Act and causing such registration
         statement to become effective) with respect to the shares specified in
         such notice before the issuance thereof, then the date of delivery of
         such shares shall be extended for the period necessary to take such
         action.

         (g)      WHO MAY EXERCISE; NON-TRANSFERABILITY OF STOCK OPTIONS. No
         option shall be assignable or transferable by the optionee except by
         will or by the laws of descent and distribution or pursuant to a
         qualified domestic relations order as defined in Rule 16b-3; and,
         during the lifetime of an optionee, the option shall be exercisable
         only by the optionee.

         (h)      OPTIONEE'S AGREEMENT. If, in the opinion of counsel for the
         Company, such action is necessary or desirable, no option shall be
         granted to any optionee unless at such time such optionee represents
         and warrants that the stock will be acquired for investment only and
         not for purposes of resale or distribution and makes such further
         representations and warranties as are deemed necessary or desirable by
         counsel to the Company with regard to holding and resale of the stock.
         If at the time of the exercise of any option, in the opinion of counsel
         for the Company, it is necessary or desirable, in order to comply

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         with any applicable laws or regulations relating to the sale of
         securities, that the optionee shall represent and warrant that he or
         she is purchasing the shares that are subject to the option for
         investment and not with any present intention to resell or distribute
         the same or make other and further representations and warranties with
         regard to the holding and resale of the shares, the optionee, upon the
         request of the Committee, will execute and deliver to the Company an
         agreement or affidavit to such effect. All certificates issued pursuant
         to the exercise of any option shall be marked with a restrictive
         legend, if such marking, in the opinion of counsel to the Company, is
         necessary or desirable.

         (i)      RIGHTS AS A STOCKHOLDER. An optionee shall have no rights as a
         stockholder with respect to shares of Common Stock covered by his or
         her option until the date of the issuance of the shares to him or her
         and only after such shares are fully paid. Unless specified in Section
         6(i) hereof, no adjustment will be made for dividends or other rights
         for which the record date is prior to the date of such issuance.

         (j)      TERMINATION OF SERVICES. In the event an optionee ceases to be
         an Outside Director of the Company for any reason, any vested option or
         unexercised portion thereof granted to him or her shall terminate
         either (i) as determined by the Committee in its discretion or (ii) as
         described below in this subsection (j). Unless otherwise specified by
         the Committee, in the event an optionee during his or her life ceases
         to be an Outside Director for any reason, any vested option or
         unexercised portion thereof shall terminate on or shall not be
         exercisable after the earlier to occur of (i) the expiration date of
         the option, or (ii) ninety (90) days after termination of service as an
         Outside Director; provided, however, that with respect to any options
         held by an optionee who does not stand for re-election upon the end of
         his term of office as an Outside Director, any options held by such
         optionee that are otherwise vested or scheduled to vest on the first
         business day following the next January 1 shall vest immediately, and
         all remaining options held by such optionee shall terminate as
         otherwise provided herein. In the event of the death of the optionee
         while he or she is an Outside Director of the Company, any vested
         option or unexercised portion thereof granted to him or her may be
         exercised by his or her personal representatives, heirs or legatees at
         any time prior to the expiration of six (6) months from the date of the
         death of the optionee, but in no event later than the date of
         expiration of the option period.

         (k)      MISCELLANEOUS PROVISIONS. The stock option certificates
         authorized under the Plan shall contain such other provisions,
         including, without limitation, restriction upon the exercise of the
         option as the Committee shall deem advisable.

7.       Withholding. An Outside Director shall be responsible for all federal,
state or local taxes, including, without limitation, FICA and FUTA taxes, if
any, (collectively "Withholding Taxes") with respect to the exercise of options.
The Company shall have the right to deduct a sufficient number of shares and/or
cash or to require the Outside Director or his or her Legal Representative to
tender sufficient cash or shares of Common Stock to the Company to pay any
Withholding Taxes required upon the exercise of options or to take such other
action as may be necessary to satisfy any such Withholding Tax obligations.
Shares of Common Stock withheld shall be valued at their Fair Market Value on
the date the tax withholding is effective.

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8.       Adjustments Upon Changes in Capitalization. In the event that the
outstanding shares of Common Stock of the Company are hereafter increased or
decreased or changed into or exchanged for a different number or kind of shares
or other securities of the Company, in any such case by reason of a
recapitalization, reclassification, stock split, combination of shares or
dividends payable in shares of the Common Stock, an adjustment of like kind
shall automatically be made in the number and kind of shares available for grant
under the Plan, subject to the right of the Committee to make such further
adjustment as it shall deem necessary to effect the provisions of this Section.
No fractional shares shall be issued in making the foregoing adjustments. No
increase in or exchange of outstanding shares of Common Stock for fair value
approved by the Board, whether or not in connection with a recapitalization or
reclassification, will result in any adjustment to the number of shares issuable
hereunder. All adjustments, if any, made by the Committee under this paragraph
shall be conclusive and binding on the Outside Director.

         Subject to any required action by the stockholders, if the Company
shall be a party to any reorganization involving merger, consolidation,
acquisition of the stock or acquisition of the assets of the Company, the
Committee, in its discretion, may declare (a) that all shares granted hereunder
shall pertain to and apply with appropriate adjustment as determined by the
Committee to the securities of the resulting Corporation to which a holder of
the number of shares of Common Stock would be entitled.

9.       Fractional Shares. In no event shall the Company be required to issue
fractional shares. Whenever under the terms of this Section a fractional share
of Common Stock would otherwise be required to be issued, an amount in lieu
thereof shall be paid in cash based upon the Fair Market Value of such
fractional share as of the last business day of the year during which the
fractional share is payable.

10.      Term of Plan. The Plan shall become effective upon adoption of the Plan
by the Board; provided, however, such effectiveness shall be subject to the
approval of the Plan by the holders of a majority of the shares of the Company's
Common Stock present and voting, assuming a quorum is present. The Plan shall
terminate at midnight, Eastern Standard Time, on March 31, 2006, but the Board
may terminate the Plan at any time prior to said time and date. Such termination
of the Plan by the Board shall not alter or impair any of the rights or
obligations under any options previously granted unless the affected Outside
Director shall so consent. Upon termination of the Plan by the Board, all
previously granted options shall be immediately vested, and such Outside
Directors shall become immediately entitled to exercise such options relating
thereto. However, after termination of the Plan, no Outside Director shall be
entitled to receive any further options pursuant to this Plan.

11.      Amendment, Termination. The Board may at any time and from time to time
alter, amend, suspend or terminate the Plan in whole or in part; provided,
however, that no amendment which requires stockholder approval in order for the
exemption available under Rule 16b-3 to be applicable to the Plan and the
Outside Directors shall be effective unless the same shall be approved by the
stockholders of the Company entitled to vote thereon; and provided further, that
the provisions of Section 6(a) hereof shall not be amended more than once every
six months,

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other than to comply with changes in the Internal Revenue Code of 1986 or ERISA,
or the rules thereunder.

12.      Nature of Shares Issuable Under the Plan. Shares of Common Stock issued
pursuant to the Plan may but need not be registered under the Securities Act
and, in the case of any unregistered shares, shall bear such restrictive legends
on the certificates representing such shares as the Company shall deem
appropriate. If any law or any regulation of any commission or agency of
competent jurisdiction shall require the Company or the Outside Director to take
any action with respect to the Common Stock acquired under the Plan, then the
date upon which the Company shall issue or cause to be issued the certificate or
certificates for the shares shall be postponed until full compliance has been
made with all such requirements of law or regulations; provided, however, that
the Company shall use its reasonable best efforts to take all necessary action
to comply with such requirements of law or regulation.

13.      Outside Director Representations. By participating in the Plan, an
Outside Director represents and, if requested by the Company, shall, at or
before the time of the issuance of the shares with respect to which a grant has
been made, deliver to the Company his or her written statement satisfactory in
form and content to the Company that he intends to hold the shares so acquired
by him for investment and not with a view to resale or other distribution
thereof to the public in violation of the Securities Act. Moreover, in the event
that the Company shall determine that, in compliance with the Securities Act or
other applicable statutes or regulations, it is necessary to register any of the
shares with respect to which a grant has been made, or to qualify any such
shares for exemption from any of the requirements of the Securities Act or any
other applicable statute or regulation, no shares shall be issued to the Outside
Director until the required action has been completed; provided, however, that
the Company shall use its reasonable best efforts to take all action necessary
to comply with such requirements of law or regulation.

14.      Restriction on Transfer. Notwithstanding anything contained herein to
the contrary (but subject to the provisions of Section 5 hereof), no shares
issued pursuant to this Plan may be resold or transferred for a period of one
(1) year after their issuance to Outside Directors.

15.      No Vested Rights.

         (a)      RETENTION AS AN OUTSIDE DIRECTOR. Nothing contained in the
         Plan or with respect to any grant shall interfere with or limit in any
         way the right of the stockholders of the Company to remove any Outside
         Director from the Board pursuant to the Articles of Incorporation and
         Regulations of the Company, nor confer upon any Outside Director any
         right to continue in the service of the Company as an Outside Director.

         (b)      NON-TRANSFERABILITY. No right or interest of any Outside
         Director in any grant shall be assignable or transferrable during the
         lifetime of the Outside Director, either voluntarily or involuntarily,
         or subjected to any lien directly or indirectly, by operation of law or
         otherwise, including execution, levy, garnishment, attachment, pledge
         or bankruptcy. In the event of an Outside Director's death, an Outside
         Director's rights and interests in a grant shall be transferrable by
         will or the laws of dissent and distribution to

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         an Outside Director's Legal Representative. The Committee may require
         any person claiming such status to present evidence satisfactory to the
         Committee of such status.

16.      Plan Interpretation. The Plan is intended to comply with Rule 16b-3 and
shall be construed to so comply. The validity, construction, interpretation and
effect of the Plan and all rights of any persons having or claiming to have any
interest in the Plan shall, to the extent such questions are governed by state
law, be governed by the internal laws of the State of Ohio without regard to its
conflict of law rules.

17.      Headings. The headings of sections and sub-sections herein are included
solely for convenience of reference and shall not affect the meaning or
interpretation of any of the provisions of the Plan.

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                                   Exhibit "A"

                         OUTSIDE DIRECTOR'S CERTIFICATE

         Pursuant to the requirements of Section 5 of the 2001 Outside
Director's Stock Ownership and Stock Option Plan (the "Plan") of SunLink Health
Systems, Inc. (the "Company"), the undersigned hereby certifies as follows:

         1.       As of the date hereof, the undersigned is a duly elected
         Outside Director (as defined in the Plan) of the Board of Directors of
         the Company.

         2.       As of the later to occur of (i) March __, 2001, (ii) the date
         on which the Plan shall be approved by the stockholders of the Company
         at the Annual Meeting of Stockholders of the Company or (iii) the date
         on which the undersigned was nominated for election as an Outside
         Director, the undersigned shall be the owner of at least one thousand
         (1,000) shares of the common stock of the Company, without par value.

         3.       Pursuant to the requirements of the Plan, the undersigned has
         agreed to maintain ownership of at least one thousand (1,000) shares of
         the Company's common stock from the date specified in paragraph (2)
         above until the undersigned's service as a member of the Board of
         Directors of the Company ceases.

         IN WITNESS WHEREOF, the undersigned has executed this Certificate this
_____ day of __________, 200__.

                                             Signature
                                                       -------------------------

                                   Name (Please Print)
                                                       -------------------------

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                                                                    EXHIBIT 10.1

                  RELEASE AND SEVERANCE COMPENSATION AGREEMENT

         THIS RELEASE AND SEVERANCE COMPENSATION AGREEMENT (the "Agreement") is
between ProAssurance Corporation, a Delaware corporation ("ProAssurance"),
MEEMIC Insurance Company, a Michigan insurance company ("MEEMIC Insurance"),
MEEMIC Holdings, Inc., a Michigan corporation ("MEEMIC Holdings") and Lynn M.
Kalinowski, an individual (the "Executive"). ProAssurance, MEEMIC Insurance, and
MEEMIC Holdings and their respective majority-owned subsidiaries are hereinafter
collectively referred to as the "Companies."

                                    RECITALS:

         The Executive is currently rendering valuable services to MEEMIC
Insurance, which is a wholly-owned subsidiary of MEEMIC Holdings. ProAssurance
has acquired, or will acquire, control of MEEMIC Holdings and MEEMIC Insurance
in a transaction (the "Consolidation") that will result in a "change of control"
(the "Change of Control") under the terms and conditions of the Change of
Control Agreement among MEEMIC Insurance, MEEMIC Holdings and the Executive
effective as of July 1, 2000 (the "Change of Control Agreement"). The Companies
have offered to employ the Executive in an at will employment relationship after
the Consolidation and to expand protection to the Executive in the form of
severance benefits payable on termination of employment under certain
circumstances after the Consolidation on the condition that the Executive
releases the Companies from any past or future liability under the Change of
Control Agreement. The Executive desires to continue employment with the

<PAGE>
Companies under such terms and conditions, and with the protection afforded to
the Executive by this Agreement.

                                    AGREEMENT

         NOW, THEREFORE, These Premises Considered, and in consideration of the
mutual covenants and promises in this Agreement, the sufficiency of which is
hereby acknowledged, the parties agree as follows:

         1. Term of Agreement. This Agreement is subject to, and conditioned
upon, the closing (the "Closing") of the transactions (the "Consolidation")
contemplated by the Agreement to Consolidate by and between Medical Assurance,
Inc. and Professionals Group, Inc. dated June 22, 2000, as amended November 1,
2000. This Agreement is effective on the date of Closing which is scheduled to
occur on June 27, 2001, and shall continue in effect for a period of two years
from the date of Closing (the "Initial Term"). Thereafter, this Agreement shall
automatically be extended for successive terms of one year (a "Renewal Term"),
except this Agreement may be terminated after the first Renewal Term upon
delivery of written notice of the termination of this Agreement by any of the
Companies at least six months prior to the expiration of any Renewal Term. If
the Executive's employment is terminated during the term of the Agreement, the
date on which the Executive's employment terminates shall be referred to as the
"Date of Termination."

         2. Severance Benefits. If during the term of this Agreement the
Executive leaves the employment of the Company for Good Reason, as explained in
Section 4 of this Agreement, and the Executive signs the release (the "Release")
that is attached to and incorporated in this Agreement, the Executive shall
receive the following benefits (the "Severance Benefits"):

<PAGE>
        (a) An amount equal to either of whichever the following is applicable:
(i) if the Date of Termination occurs during the Initial Term, two (2) times the
Executive's annual base salary; or (ii) if the Date of Termination occurs during
a Renewal Term, one (1) times the Executive's annual base salary. The "annual
base salary" of the Executive shall be defined as the Executive's base rate of
compensation in effect as of the Date of Termination, but in no event less than
the Executive's base rate of compensation in effect as of the end of the last
calendar quarter preceding the Date of Termination;

       (b) An amount equal to either of whichever of the following is
applicable: (i) if the Date of Termination occurs during the Initial Term, two
(2) times the average total annual incentive award(s) or bonus(es); or (ii) if
the Date of Termination occurs during a Renewal Term, one (1) times the average
total annual incentive award(s) or bonus(es). The "average total annual
incentive award(s) or bonus(es)" shall mean the average of the sum of (i) cash
awards or bonuses earned with the Companies by the Executive, plus (ii) the
value of stock awarded to the Executive by the Companies for each complete
fiscal year during the last three years (whether or not deferred) or, if
shorter, over the Executive's entire period of employment with the Companies.
The value of stock awarded to the Executive shall be calculated based on the
value of the stock as of the date the stock was awarded to the Executive as
annual incentive compensation. Notwithstanding the foregoing, the Executive's
actual total annual incentive awards or bonuses shall be calculated excluding
the value of options to purchase stock which may have been awarded to the
Executive;

       (c) Payment of the Executive's monthly COBRA premiums for continued
health and dental insurance coverage for the shorter of the following: (i) 18
months if the Date of Termination occurs in the Initial Term; (ii) 12 months if
the Date of Termination occurs in the

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Renewal Term; (iii) until the Executive no longer has coverage under COBRA; or
(iv) until the Executive becomes eligible for substantially similar coverage
under a subsequent employer's group health plan; and

       (d) Outplacement services that are customary to Executive's position.

    The cash severance benefits described in subparagraphs (a) and (b) above
shall be paid in equal monthly installments during the period that the covenants
set forth in Section 7 shall be in effect commencing upon the Date of
Termination; provided that the obligation of the Companies to pay such cash
severance benefits to the Executive shall be subject to termination under the
provisions of Section 7 hereof in the event the Executive should violate the
covenants set forth therein; and provided further that the payment of such cash
severance benefits shall be accelerated and payable in lump sum by the Companies
upon a breach of this Agreement as a result of the failure of a successor
(herein defined) to assume this Agreement as required in Section 10 of this
Agreement. The Companies shall withhold from any amounts payable under this
Agreement all federal, state, city or other income and employment taxes that
shall be required.

    The Companies shall fund the obligation to pay cash Severance Benefits by
depositing in escrow an amount equal to the sum of the amounts payable to the
Executive under subparagraphs (a) and (b) hereof (the "Escrow Funds") with
SouthTrust Bank (or another financial institution with total assets of more than
$1,000,000,000) as escrow agent (the "Escrow Agent"). The Escrow Funds shall be
held, invested and distributed by Escrow Agent in accordance with the following
provisions. At the time of delivery of the Escrow Funds, the Escrow Agent shall
acknowledge receipt of the Escrow Funds and agree to be bound by the provisions
of this Agreement in a separate written document. The Escrow Agent shall invest
the Escrow Funds in

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a money market account. Unless and until the Escrow Agent receives notice from
ProAssurance that the Executive has breached this Agreement, the Escrow Agent
shall distribute the Escrow Funds to the Executive in the same number of equal
monthly installments as the number of whole calendar months in the Restricted
Period (as defined in Section 7 hereof). The monthly installments shall be
distributed to the Executive on the first day of each calendar month in the
Restricted Period together with accrued and undistributed earnings on the Escrow
Funds. If the Company delivers written notice to the Escrow Agent and Executive
that the cash Severance Benefits payable to Executive are subject to termination
under Section 7 of this Agreement, the Escrow Agent shall distribute the balance
of the Escrow Funds and accrued and undistributed earnings thereon to
ProAssurance unless the Escrow Agent receives a written notice of objection from
the Executive within 15 days after delivery of ProAssurance's notice. If
Executive provides a timely notice of objection, the Escrow Agent shall hold the
Escrow Funds until it receives a written notice of distribution from the
arbitrator appointed pursuant to Section 13 hereof or a joint written notice of
distribution from the Executive and ProAssurance. The failure of the Executive
or the Company to deliver notice to the Escrow Agent as herein provided shall
not be a waiver of any of their respective rights under this Agreement.

    The Executive shall be entitled to the following in addition to and not in
limitation of the Severance Benefits: (i) accrued and unpaid base salary as of
the Date of Termination; (ii) accrued vacation and sick leave, if any, on Date
of Termination in accordance with the then current policy of the Companies with
respect to terminated employees generally; and (iii) vested benefits under the
Companies' employee benefit plans in which the Executive was a participant on
Date of Termination, which vested benefits shall be paid or provided for in
accordance with the terms of said employee benefit plans. If the Executive has
regular use of a vehicle provided

                                       5
<PAGE>
by the Companies for business and personal use on Date of Termination, the
Companies shall offer for sale to the Executive the vehicle at a purchase price
equal to either of the following: (x) if owned by any of the Companies, the then
current book value of the vehicle (cost less accumulated depreciation), or (y)
if leased by any of the Companies, the purchase price upon the exercise of the
purchase option, if any, under the lease.

    The Executive shall not be entitled to receive Severance Benefits if
employment with the Companies is terminated by reason of death of Executive,
retirement of Executive pursuant to the Company's retirement plan as then in
effect, the Executive having reached the age of mandatory retirement (if such
requirement then exists for bona fide executives) or Disability of Executive
(herein defined); or by reason of termination of employment by the Executive
without Good Reason (herein defined); or by reason of termination of employment
by the Companies with Cause (herein defined).

    The Executive shall be under no duty or obligation to seek or accept other
employment and shall not be required to mitigate the amount of the Severance
Benefits provided under the Agreement by seeking employment or otherwise;
provided, however, that the Executive shall be required to notify the Companies
if the Executive becomes covered by a health or dental care program providing
substantially similar coverage, at which time health or dental care continuation
coverage provided under this Agreement shall cease.

    3. Parachute Payments. Subject to Section 280G of the Internal Revenue Code
of 1986, as amended ("Code"), if the board of directors of ProAssurance
determines that an excise tax under Section 4999 ("Excise Tax") would be due,
the Executive's Severance Benefits under this Agreement shall be limited to the
amount necessary to avoid the Excise Tax only if applying

                                       6
<PAGE>
such a limit results in a greater net benefit to the Executive than would have
resulted had the benefits not been limited and an Excise Tax paid. For purposes
of making such computation:

       (a) Any other payments or benefits received or to be received by the
Executive in connection with the Change of Control or the Executive's
termination of employment (whether pursuant to the terms of this Agreement or
any other plan, arrangement, or agreement with the Companies, or with any person
whose actions result in the Change of Control) shall be treated as "parachute
payments" within the meaning of Section 280G(b)(2) of the Code, and all "excess
parachute payments" within the meaning of Section 280G(b)(1) of the Code shall
be treated as subject to the Excise Tax, unless, in the opinion of tax counsel
selected by ProAssurance's independent auditors, such other payments or benefits
(in whole or in part) do not constitute parachute payments, or such other
payments or benefits (in whole or in part) represent reasonable compensation for
services actually rendered within the meaning of Section 280G(b)(4) of the Code
in excess of the base amount within the meaning of Section 280G(b)(3) of the
Code, or such other payments or benefits (in whole or in part) are otherwise not
subject to the Excise Tax. In the event an Excise Tax is due, because of
payments made under this Agreement, the Executive shall be responsible for
paying said Excise Tax.

       (b) The amount of the Severance Benefits that will be treated as subject
to the Excise Tax shall be equal to the lesser of: (i) the total amount of the
Severance Benefits; or (ii) the amount of excess parachute payments within the
meaning of Section 280G(b)(1) (after applying subparagraph (a) above).

       (c) The value of any noncash benefits or any deferred payment or benefit
shall be determined by ProAssurance's independent auditors in accordance with
the principles of Sections 280G(d)(3) and (4) of the Code.

                                       7
<PAGE>
       (d) The Executive shall be deemed to pay federal income taxes at the
highest marginal rate of federal income taxation in a calendar year in which the
Severance Benefits are to be paid, and state and local income taxes at the
highest marginal rate of taxation in the state and locality of the Executive's
residence on the Date of Termination, net of the maximum reduction in federal
income taxes that could be obtained from deduction of such state and local
taxes.

    In the event the Internal Revenue Service adjusts the computation in
subparagraphs (a) through (d) above, so that the Executive did not receive the
greatest net benefit, the Companies shall reimburse the Executive for the amount
necessary to make the payment of Severance Benefits to the Executive to the
extent permitted hereunder, plus a market rate of interest as determined by the
Board of Directors of ProAssurance.

    4. Good Reason for Termination. In the event that the Executive's employment
relationship with the Companies is terminated for any of the reasons described
in this Section 4, the Executive shall be entitled to Severance Benefits,
subject to and described in Section 2 of this Agreement. "Good Reason" shall
constitute any of the following circumstances if they occur without the
Executive's express written consent during the term of this Agreement:

       (a) The Executive no longer holds an executive level position with
executive level responsibilities with the Companies consistent with the
Executive's training and experience;

       (b) The Companies require that the Executive's primary location of
employment be more than 50 miles from the location of the Executive's primary
location of employment on June 27, 2001;

                                       8
<PAGE>
       (c) The failure of the Companies to provide the Executive, at a level
commensurate with the Executive's position, the incentive compensation
opportunities and employee benefits that are provided to other executives of
comparable rank with the Companies;

       (d) A breach by the Companies of any provision of this Agreement.
including without limitation, the failure of a successor to assume this
Agreement as required in Section 10 hereof;

       (e) The termination of the Executive's employment by the Companies for a
reason other than: (i) death; (ii) retirement pursuant to the Companies'
retirement plan as then in effect; (iii) Disability as explained in Section 5 of
this Agreement; (iv) the Executive has reached the age of mandatory retirement
(if such requirement then exists for bona fide executives); (v) for Cause, as
explained in Section 6 of this Agreement;

       (f) A reduction by the Companies in the Executive's base salary in
effect as of the date of this Agreement; or

       (g) The termination or non-renewal of this Agreement by the Companies.

       The Executive must provide the Companies with written notice no later
than 45 calendar days after the Executive knows or should have known that Good
Reason has occurred. Following the Executive's Notice, the Companies shall have
45 calendar days to rectify the circumstances causing the Good Reason. If the
Company fails to rectify the event(s) causing the Good Reason within the 45 day
period after the Executive's Notice, or if any of the Companies delivers to the
Executive written notice stating that the circumstances cannot or shall not be
rectified, the Executive shall be entitled to assert Good Reason and terminate
employment on or before 90 days after the delivery of the Executive's Notice.
Should Executive fail to provide the

                                       9
<PAGE>
required Notice in a timely manner, Good Reason shall not be deemed to have
occurred as a result of that event. The Initial Term or a Renewal Term shall not
be deemed to have expired during the Notice period, however, as long as the
Executive has provided Notice within the Term.

    5. Disability. For purposes of this Agreement, Disability means a serious
injury or illness that requires the Executive to be under the regular care of a
licensed medical physician and renders the Executive incapable of performing the
essential functions of the Executive's position for 12 months as determined by
the Board of Directors of the Companies in good faith and upon receipt of and in
reliance on competent medical advice from one or more individuals selected by
the Board of Directors, who are qualified to give professional medical advice.

    6. Cause. If the Executive's employment is terminated for Cause, as
described below in this Section, the Executive shall not be eligible for
severance benefits and all rights of the Executive and obligations of the
Companies under this Agreement shall expire. Cause means:

       (a) The Executive has been convicted in a federal or state court of a
crime classified as a felony;

       (b) Action or inaction by the Executive (i) that constitutes
embezzlement, theft, misappropriation or conversion of assets of the Companies
which alone or together with related actions or inactions involve assets of more
than a de minimis amount, or that constitutes fraud, gross malfeasance of duty,
or conduct grossly inappropriate to Executive's office; and (ii) such action or
inaction has adversely affected or is likely to adversely affect the business of
the Companies or has resulted or is intended to result in direct or indirect
gain or personal enrichment of the Executive to the detriment of the Companies;

                                       10
<PAGE>
       (c) The Executive has been grossly inattentive to, or in a grossly
negligent manner failed to competently perform, Executive's job duties and the
failure was not cured within 45 days after written notice from the Companies.

    Any termination of the Executive's employment by the Companies for Cause
shall be communicated by a notice of termination (the "Notice of Termination")
to the Executive. The Notice of Termination shall be a written notice indicating
the specific termination provision of this Agreement relied upon and shall set
forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Executive's employment under this provision.

    7. Non-Competition.

       (a) In the event the Date of Termination occurs during the Initial Term,
the Executive (i) will be bound by and subject to any covenant not to compete or
noncompetition agreement with the Companies (or any of them) to which the
Executive was subject as of the Date of Termination (other than the
noncompetition agreement set forth in Section 7(b) hereof), or (ii) in the
alternative if the Executive is not subject to a covenant not to compete or
noncompetition agreement with the Companies (or any of them) as of the Date of
Termination (other than a covenant not to compete or noncompetition agreement
contained in an employee handbook or otherwise applicable to employees
generally), the Executive will be bound by and subject to the noncompetition
agreement set forth in subparagraph 7(b) of this Agreement. Upon the expiration
of the Initial Term, any and all covenants not to compete or noncompetition
agreements between the Executive and the Companies (or any of them) then in
effect shall be superseded by the noncompetition agreement set forth in Section
7(b) hereof and the Executive and the Companies shall not be bound by the
provisions of any covenant not to compete or noncompetition agreement other than
the provisions of Section 7(b) hereof unless specifically

                                       11
<PAGE>
agreed to in a written document executed by the Executive and the Companies (or
any of them) after the Closing.

       (b) In the event that either (i) the Date of Termination occurs during
the Initial Term and the provisions of Section 7(a)(ii) hereof are binding on
the Executive, or (ii) the Date of Termination occurs during a Renewal Term, the
Executive will not during the Restricted Period (herein defined):

              (i) become employed by a competitor company that is underwriting,
       selling or marketing insurance products that target educators in MEEMIC's
       primary market area; or

              (ii) assist a competitor company to develop insurance products
       that target educators and that will be marketed or sold in MEEMIC's
       primary area; or

              (iii) solicit or induce any other employees of the Companies to
       leave such employment or accept employment with any other person or
       entity, or solicit or induce any insurance agent of the Companies to
       offer, sell or market insurance products that target educators in
       MEEMIC's primary market area, other than on behalf of MEEMIC.

                     "Competitor company" means an insurance company, insurance
              agency, business, for profit or not for profit organization (other
              than the Companies) which is engaged directly or indirectly in
              underwriting, selling or marketing any insurance product that
              targets educators.

                     "Educators" means teachers, administrators and other
              employees of public and private school systems (including colleges
              and universities).

                                       12
<PAGE>
                     "Primary market area" means the state of Michigan and any
              other state in which MEEMIC Insurance derived more than $5 million
              in direct written premiums from the sale of personal auto and
              homeowners insurance in the most recent complete fiscal year prior
              to the Date of Termination.

                     "Restricted Period" means as applicable either (i) if the
              Date of Termination occurs within the Initial Term, a period of 24
              months from such Date of Termination; or (ii) if the Date of
              Termination occurs within a Renewal Term, a period of 12 months
              from such Date of Termination.

                     "Employed" includes activities as an owner, proprietor,
              employee, agent, solicitor, partner, member, manager, principal,
              shareholder (owning more than 1% of the outstanding stock),
              consultant, officer, director or independent contractor.

                     "Companies" means any company that is a subsidiary of
              ProAssurance, now or in the future, and any other company that has
              succeeded to the business of any of the Companies.

       If the Executive is deemed to have materially breached the
non-competition covenants set forth in Section 7 of this Agreement, the
Companies may, in addition to seeking an injunction or any other remedy they may
have, withhold or cancel any remaining payments or benefits due to the Executive
pursuant to Section 2 of this Agreement. The Companies shall give prior or
contemporaneous written notice of such withholding or cancellation of payments
in accordance with Section 2 hereof. If the Executive violates any of these
restrictions, the Companies shall be further entitled to an immediate
preliminary and permanent injunctive relief, without bond, in addition to any
other remedy which may be available to the Companies.

                                       13
<PAGE>
       Both parties agree that the restrictions in this Agreement are fair and
reasonable in all respects, including the geographic and temporal restrictions,
and that the benefits described in this Agreement, to the extent any separate or
special consideration is necessary, are fully sufficient consideration for the
Executive's obligations under this Agreement.

       8. Confidentiality. Executive will remain obligated under any
confidentiality or nondisclosure agreement with the Companies (or any of them)
that is currently in effect or to which the Executive may in the future be
bound. In the event that the Executive is at any time not the subject of a
separate confidentiality or nondisclosure agreement with the Companies (or any
of them), Executive expressly agrees that Executive shall not use for the
Executive's personal benefit, or disclose, communicate or divulge to, or use for
the direct or indirect benefit of any person, firm, association or company any
confidential or competitive material or information of the Companies or their
subsidiaries, including without limitation, any information regarding insureds
or other customers, actual or prospective, and the contents of their files;
marketing, underwriting or financial plans or analyses which is not a matter of
public record; claims practices or analyses which are not matters of public
record; pending or past litigation in which the Companies have been involved and
which is not a matter of public record; and all other strategic plans, analyses
of operations, computer programs, personnel information and other proprietary
information with respect to the Companies which are not matters of public
record. Executive shall return to the Companies promptly, and in no event later
than the Date of Termination, all items, documents, lists and other materials
belonging to the Companies or their subsidiaries, including but not limited to,
credit, debit or service cards, all documents, computer tapes, or other business
records or information, keys and all other items in the Executive's possession
or control.

                                       14
<PAGE>
       9. Release of Prior Agreements. In consideration of the continued
employment of the Executive by the Companies after the Change of Control and the
obligation of the Companies to pay the Executive Severance Benefits as herein
provided, the Executive hereby waives, releases and forever discharges the
Companies and each of their direct or indirect parents, subsidiaries, affiliates
and related entities, and all present or former employees, officers, agents,
directors or representatives of any of them, from any and all claims, charges,
suits, causes of action, demands, expenses and compensation whatsoever, known or
unknown, direct or indirect, on account of or growing out of the Executive's
Change of Control Agreement and the Severance/Benefits Agreement between
Executive and Michigan Education Employees Mutual Insurance Company (now MEEMIC
Insurance Company), dated August 10, 1993, including, without limitation, the
payment of severance benefits as provided thereunder. Executive hereby further
agrees that he will not institute any suit or action at law, in equity or
otherwise against the Companies or any of their direct or indirect parents,
subsidiaries, affiliates and related entities, or the present or former
employees, officers, agents, directors, or representatives of any of them and
their respective successors and assigns, nor will the Executive ever institute,
prosecute, or in any way aid in the institutional prosecution of any claim,
demand, action or cause of action for damages, costs, expenses, penalties,
fines, compensation or equitable relief, for or on account of any damage, loss
or injury to either person or property or both, whether developed or
undeveloped, resulting or to result, known or unknown, which Executive ever had,
now has, or which Executive or his successors and assigns may in the future have
against any of said persons in connection with the Change of Control Agreement
of the Executive.

         The Executive acknowledges and agrees that Executive has been advised
in writing by this Agreement, and otherwise, to CONSULT WITH AN ATTORNEY before
Executive enters

                                       15
<PAGE>
into this Agreement. The Executive agrees that the Executive received and read a
copy of this Agreement prior to executing the same.

       10. Successors of ProAssurance. ProAssurance will require any successor
(herein defined) to assume expressly and agree to perform this Agreement in the
same manner and to the same extent that the Companies would be required to
perform this Agreement if no such succession had taken place. Failure of
ProAssurance to obtain such agreement prior to the effectiveness of any such
succession shall be a breach of this Agreement and shall entitle the Executive
to terminate employment for Good Reason and receive Severance Benefits as
provided in Section 2 hereof. Reference to the Companies in this Agreement shall
include any successor which assumes and agrees to perform this Agreement by
operation of law or otherwise.

       The term "successor" means any Person, as defined by Section 3(a)(9) of
the Securities Exchange Act of 1934, as amended (the "Exchange Act") other than
a Person in control of the Companies immediately after completion of the Change
of Control transaction, that either (i) becomes the Beneficial Owner, as defined
by Rule 13d-3 of the General Rules and Regulations under the Exchange Act,
directly or indirectly, of the securities of ProAssurance representing more than
50.1% of the combined voting power of the then outstanding securities of
ProAssurance; (ii) purchases or otherwise acquires substantially all of the
assets of the Companies such that the Companies cease to function on a going
forward basis as an insurance holding company system that provides medical
professional liability insurance; or (iii) survives a merger, consolidation or
reorganization that results in less than 50.1% of the combined voting power of
ProAssurance or such surviving entity being owned by stockholders of
ProAssurance immediately preceding such merger, consolidation or reorganization.

                                       16
<PAGE>
       11. Notice. For purposes of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered by hand or commercial courier or
mailed by certified or registered mail, return receipt requested, postage
prepaid, addressed to the respective addresses as set forth below or to such
other address as one party may have furnished to the other in writing in
accordance herewith.

                  Notice to the Executive:
                  ------------------------

                           Lynn M. Kalinowski
                                             -----------------------------------
                           MEEMIC Insurance Company
                                                   -----------------------------
                           691 Squirrel Road
                           Suite 200
                           Auburn Hills, MI 48326
                                                 -------------------------------

                  Notice to the Companies:
                  -----------------------

                           ProAssurance Corporation
                           Mailing Address:
                           P. O. Box 590009
                           Birmingham, Alabama 35259-0009
                           Street Address:
                           100 Brookwood Place
                           Birmingham, Alabama 35209
                           Attention: Chairman of the Board

       12. Claims Procedure.

           (a) The administrator for purposes of this Agreement shall be
ProAssurance ("Administrator"), whose address is 100 Brookwood Place,
Birmingham, Alabama 35209; Telephone: (205) 877-4400. The "Named Fiduciary" as
defined in Section 402(a)(2) or ERISA, also shall be ProAssurance. ProAssurance
shall have the right to designate one or more employees of the Companies as the
Administrator and the Named Fiduciary at any time, and to change the address and
telephone number of the same. ProAssurance shall give the Executive

                                       17
<PAGE>
written notice of any change in the Administrator and Named Fiduciary, or in the
address or telephone number of the same.

       (b) The Administrator shall make all determinations as to the right of
any person to receive benefits under the Agreement. Any denial by the
Administrator of a claim for benefits by the Executive ("the claimant") shall be
stated in writing by the Administrator and delivered or mailed to the claimant
within ten (10) days after receipt of the claim, unless special circumstances
require an extension of time for processing the claim. If such an extension is
required, written notice of the extension shall be furnished to the claimant
prior to the termination of the initial 10-day period. In no event shall such
extension exceed a period of ten (10) days from the end of the initial period.
Any notice of denial shall set forth the specific reasons for the denial,
specific reference to pertinent provisions of this Agreement upon which the
denial is based, a description of any additional material or information
necessary for the claimant to perfect the claim, with an explanation of why such
material or information is necessary, and any explanation of claim review
procedures, written to the best of the Administrator's ability in a manner that
may be understood without legal or actuarial counsel.

       (c) A claimant whose claim for benefits has been wholly or partially
denied by the Administrator may request, within ten (10) days following the
receipt of such denial, in a writing addressed to the Administrator, a review of
such denial. The claimant shall be entitled to submit such issues or comments in
writing or otherwise, as the claimant shall consider relevant to a determination
of the claim, and the claimant may include a request for a hearing in person
before the Administrator. Prior to submitting the request, the claimant shall be
entitled to review such documents as the Administrator shall agree are pertinent
to the claim. The claimant may, at all stages of review, be represented by
counsel, legal or otherwise, of the claimant's choice. All

                                       18
<PAGE>
requests for review shall be promptly resolved. The Administrator's decision
with respect to any such review shall be set forth in writing and shall be
mailed to the claimant not later than ten (10) days following receipt by the
Administrator of the claimant's request unless special circumstances, such as
the need to hold a hearing, require an extension of time for processing, in
which case the Administrator's decision shall be so mailed not later than twenty
(20) days after receipt of such request.

       13. Arbitration. The parties to this Agreement agree that final and
binding arbitration shall be the sole recourse to settle any claim or
controversy arising out of or relating to a breach or the interpretation of this
Agreement, except as either party may be seeking injunctive relief. Either party
may file for arbitration. A claimant seeking relief on a claim for benefits,
however, must first follow the procedure in Section 12 hereof and may file for
arbitration within sixty (60) days following claimant's receipt of the
Administrator's written decision on review under Section 12(c) hereof, or if the
Administrator fails to provide any written decision under Section 12 hereof,
within 60 days of the date on which such written decision was required to be
delivered to the claimant as therein provided. The arbitration shall be held at
a mutually agreeable location, and shall be subject to and in accordance with
the arbitration rules then in effect of the American Arbitration Association;
provided that if the location cannot be agreed upon the arbitration shall be
held in either Atlanta, Georgia, or Chicago, Illinois, whichever location is
closer to the principal office where the Executive was employed on Date of
Termination. The arbitrator may award any and all remedies allowable by the
cause of action subject to the arbitration, but the arbitrator's sole authority
shall be to interpret and apply the provisions of this Agreement. In reaching
its decision the arbitrator shall have no authority to change or modify any
provision of this Agreement or other written agreement between the parties. The
arbitrator

                                       19
<PAGE>
shall have the power to compel the attendance of witnesses at the
hearing. Any court having jurisdiction may enter a judgment based upon such
arbitration. All decisions of the arbitrator shall be final and binding on the
parties without appeal to any court. Upon execution of this Agreement, the
Executive shall be deemed to have waived any right to commence litigation
proceedings regarding this Agreement outside of arbitration or injunctive relief
without the express consent of ProAssurance. The Companies shall pay all
arbitration fees and the arbitrator's compensation. If the Executive prevails in
the arbitration proceeding, the Companies shall reimburse to the Executive the
reasonable fees and expenses of Executive's personal counsel for his or her
professional services rendered to the Executive in connection with the
enforcement of this Agreement.

    14. Miscellaneous.

       (a) Except insofar as this provision may be contrary to applicable law,
no sale, transfer, alienation, assignment, pledge, collateralization or
attachment of any benefits under this Agreement shall be valid or recognized by
the Companies.

       (b) This Agreement is an unfunded deferred compensation arrangement for a
member of a select group of the Companies' management and any exemptions under
ERISA, as applicable to such arrangement, shall be applicable to this Agreement.
Nothing in this Agreement shall require or be deemed to require the Companies or
any of them to segregate, earmark or otherwise set aside any funds or other
assets to provide for any payments made or required to be made hereunder.

       (c) Nothing in this Agreement shall be deemed to create an employment
agreement between the Executive and the Companies or any of them providing for
Executive's

                                       20
<PAGE>
employment for any fixed duration, nor shall it be deemed to modify
or undercut the Executive's at will employment status with the Companies.

       (d) Neither the provisions of this Agreement nor the severance benefits
provided hereunder shall reduce any amounts otherwise payable, or in any way
diminish the Executive's rights as an employee of the Companies, whether
existing now or hereafter, under any benefit, incentive, retirement, stock
option, stock bonus or stock purchase plan, or any employment agreement or other
plan or arrangement.

       (e) This Agreement sets forth the entire agreement between the parties
with respect to the matters set forth herein. This Agreement may not be modified
or amended except by written agreement intended as such and signed by all
parties.

       (f) This Agreement shall benefit and be binding upon the parties and
their respective directors, officers, employees, representatives, agents, heirs,
successors, assigns, devisees, and legal or personal representatives.

       (g) The Companies, from time to time, shall provide government agencies
with such reports concerning this Agreement as may be required by law, and shall
provide Executive with such disclosure concerning this Agreement as may be
required by law or as the Companies may deem appropriate.

       (h) Executive and the Companies respectively acknowledge that each of
them has read and understand this Agreement, that they have each had adequate
time to consider this Agreement and discuss it with each of their attorneys and
advisors, that each of them understands the consequences of entering into this
Agreement, that each of them is knowingly and voluntarily entering into this
Agreement, and that they are each competent to enter into this Agreement.

                                       21
<PAGE>
       (i) If any provision of this Agreement is determined to be unenforceable,
at the discretion of ProAssurance the remainder of this Agreement shall not be
affected but each remaining provision shall continue to be valid and effective
and shall be modified so that it is enforceable to the fullest extent permitted
by law. Moreover, in the event this Agreement is determined to be unenforceable
against any of the Companies, it shall continue to be valid and enforceable
against the other Companies.

       (j) This Agreement will be interpreted as a whole according to its fair
terms. It will not be construed strictly for or against either party.

       (k) Except to the extent that federal law controls, this Agreement is to
be construed according to Michigan law.

                  IN WITNESS WHEREOF, the parties have duly executed this
Agreement as of this 15th day of June, 2001.

                              EXECUTIVE:

                              /s/ Lynn M. Kalinowski
                              ----------------------
                              Name: Lynn M. Kalinowski
                                    ------------------

                              PROASSURANCE CORPORATION

                              By: /s/  A.D. Crowe
                                 -------------------
                                       Its: Chairman

                              MEEMIC INSURANCE COMPANY

                              By:  /s/ R.Kevin Clinton
                                   -------------------
                                       Its: President
                              By:  /s/ Victor T. Adamo
                                  --------------------
                                       Its: Chairman

                              MEEMIC HOLDINGS, INC.

                              By:  /s/ R.Kevin Clinton
                                  --------------------
                                       Its: President
                              By:  /s/ Victor T. Adamo
                                  --------------------
                                       Its: Chairman

                                       22
<PAGE>
               RELEASE IN CONJUNCTION WITH SEVERANCE COMPENSATION

         This Release of Claims ("Release") is between ProAssurance Corporation
("ProAssurance"), MEEMIC Insurance Company, MEEMIC Holdings, Inc., and any
successor company that has assumed the Agreement to which this Release was an
attachment (all such organizations being referred to in this Release as the
"Companies") and _______ ________ ("Executive").

         The Companies and Executive have agreed to terminate their employment
relationship. To effect an orderly termination, the Executive, and the Companies
are entering into this Release.

       1. For the purposes of this Release, "Date of Termination" is the
effective date of Executive's termination of employment from Companies.
Executive hereby waives any and all rights Executive may otherwise have to
continued employment with or re-employment by the Companies or any parent,
subsidiary or affiliate of Companies.

       2. Effective with the Date of Termination, Executive is relieved of all
duties and obligations to the Companies, except as provided in this Release or
any applicable provisions of the Release and Severance Compensation Agreement
between Companies and Executive, effective as of June 27, 2001 (the "Severance
Agreement"), which survive termination of the employment relationship.

       3. Executive agrees that this Release and its terms are confidential and
shall not be disclosed or published directly or indirectly to third persons,
except as necessary to enforce its terms, by Executive or to Executive's
immediate family upon their agreement not to disclose the fact or terms of this
Release, or to Executive's attorney, financial consultant or accountant, except
that Executive may disclose, as necessary, the fact that Executive has
terminated Executive's employment with the Companies.

       4. Any fringe benefits that Executive has received or currently is
receiving from the Companies or its affiliates shall cease effective with the
Date of Termination, except as otherwise provided for in this Release, in the
Severance Agreement or by law.

       5. The parties agree that the terms contained and payments provided for
in the Severance Agreement are compensation for and in full consideration of
Employee's release of claims under this Release, and Executive's
confidentiality, non-compete, non-solicitation and non-disclosure agreements
contained in the Severance Agreement.

       6. The Executive shall be under no duty or obligation to seek or accept
other employment and shall not be required to mitigate the amount of the
Severance Benefits (as defined and provided under the Severance Agreement) by
seeking employment or otherwise, provided, however, that the Executive shall be
required to notify the Companies if the Executive becomes covered by a health or
dental care program providing substantially similar coverage, at which time
health or dental care continuation coverage provided under the Agreement shall
cease.

                                       23
<PAGE>
       7. Except for claims arising under the Severance Agreement, Executive
waives, releases, and forever discharges the Companies and each of their direct
or indirect parents, subsidiaries, affiliates, and any partnerships, joint
ventures or other entities involving or related to any of the Companies, their
parents, subsidiaries or affiliates, and all present or former employees,
officers, agents, directors, successors, assigns and attorneys of any of these
corporations, persons or entities (all collectively referred to in this Release
as the "Released") from any and all claims, charges, suits, causes of action,
demands, expenses and compensation whatsoever, known or unknown, direct or
indirect, on account of or growing out of Executive's employment with and
termination from the Companies, or relationship or termination of such
relationship with any of the Released, or arising out of related events
occurring through the date on which this Release is executed. This includes, but
is not limited to, claims for breach of any employment contract; handbook or
manual; any express or implied contract; any tort; continued employment; loss of
wages or benefits; attorney fees; employment discrimination arising under any
federal, state, or local civil rights or anti-discrimination statute, including
specifically any claims Executive may have under the federal Age Discrimination
in Employment Act, as amended, 29 USC ss.ss. 621, et seq.; emotional distress;
harassment; defamation; slander; and all other types of claims or causes of
action whatsoever arising under any other state or federal statute or common law
of the United States.

       8. The Executive does not waive or release any rights or claims that may
arise under the federal Age Discrimination in Employment Act, as amended, after
the date on which this Release is executed by the Executive.

       9. The Executive acknowledges and agrees that Executive has been advised
in writing by this Release, and otherwise, to CONSULT WITH AN ATTORNEY before
Executive executes this Release.

       10. The Executive agrees that Executive received a copy of this Release
prior to executing the Agreement, that this Release incorporates the Companies'
FINAL OFFER; that Executive has been given a period of at least twenty-two (22)
calendar days within which to consider this Release and its terms and to consult
with an attorney should Executive so elect.

       11. The Executive shall have seven (7) calendar days following
Executive's execution of this Release to revoke this Release. Any revocation of
this Release shall be made in writing by the Executive and shall be received on
or before the time of close of business on the seventh calendar day following
the date of the Employee's execution of this Release at ProAssurance's address
at 100 Brookwood Place, P. O. Box 590009, Birmingham, Alabama 35259-0009,
Attention: Chairman, or such other place as the Companies may notify Executive
in writing. This Release shall not become effective or enforceable until the
eighth (8th) calendar day following the Executive's execution of this Release.

       12. Executive and the Companies acknowledge that they have read and
understand this Release, that they have had adequate time to consider this
Release and discuss it with their attorneys and advisors, that they understand
the consequences of entering into this Release, that

                                       24
<PAGE>
they are knowingly and voluntarily entering into this Release, and that they are
competent to enter into this Release.

       13. This Release shall benefit and be binding upon the parties and their
respective directors, officers, employees, agents, heirs, successors, assigns,
devisees and legal or personal representatives.

       14. This Release, along with the attached Severance Agreement, sets forth
the entire agreement between the parties at the time and date these documents
are executed, and fully supersedes any and all prior agreements or
understandings between them pertaining to the subject matter in this Release.
This Release may not be modified or amended except by a written agreement
intended as such, and signed by all parties.

       15. Except to the extent that federal law controls, this Release is to be
construed according to the law of the state of Michigan.

       16. If any provision of this Release is determined to be unenforceable,
at the discretion of ProAssurance the remainder of this Release shall not be
affected but each remaining provision or portion shall continue to be valid and
effective and shall be modified so that it is enforceable to the fullest extent
permitted by law.

       17. To signify their agreement to the terms of this Release, the parties
have executed it on the date set forth opposite their signatures, or those of
their authorized agents, which follow.

                                    EXECUTIVE

Dated:___________________           _____________________________________

                                    PROASSURANCE CORPORATION

Dated:___________________           By:___________________________________
                                    Its:__________________________________

                                    MEEMIC HOLDINGS, INC.

Dated:___________________           By:___________________________________
                                    Its:__________________________________

                                    MEEMIC INSURANCE COMPANY

Dated:___________________           By:___________________________________
                                    Its:__________________________________

                                       25

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